Condensed Consolidated Guarantor Financial Statements

3 Months Ended

Mar. 31, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidated Guarantor Financial Statements

Libbey Glass is a direct, 100 percent owned subsidiary of Libbey Inc. and is the issuer of the Senior Secured Notes. The obligations of Libbey Glass under the Senior Secured Notes are fully and unconditionally and jointly and severally guaranteed by Libbey Inc. and by certain indirect, 100 percent owned domestic subsidiaries of Libbey Inc., as described below. All are related parties that are included in the Condensed Consolidated Financial Statements for the three months ended March 31, 2013 and March 31, 2012.

At March 31, 2013, December 31, 2012 and March 31, 2012, Libbey Inc.’s indirect, 100 percent owned domestic subsidiaries were Syracuse China Company, World Tableware Inc., LGA4 Corp., LGA3 Corp., The Drummond Glass Company, LGC Corp., Libbey.com LLC, LGFS Inc., and LGAC LLC (collectively, Subsidiary Guarantors). The following tables contain Condensed Consolidating Financial Statements of (a) the parent, Libbey Inc., (b) the issuer, Libbey Glass, (c) the Subsidiary Guarantors, (d) the indirect subsidiaries of Libbey Inc. that are not Subsidiary Guarantors (collectively, Non-Guarantor Subsidiaries), (e) the consolidating elimination entries, and (f) the consolidated totals.

Libbey Inc.

Condensed Consolidating Statements of Comprehensive Income

(unaudited)



	Three months ended March 31, 2013
(dollars in thousands)	Libbey Inc. (Parent)		Libbey Glass (Issuer)			Subsidiary Guarantors			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—	$	86,930		$	18,360		$	89,379		$	(11,193	)	$	183,476
Freight billed to customers	—		99			234			419			—			752
Total revenues	—		87,029			18,594			89,798			(11,193		)	184,228
Cost of sales	—		62,600			14,360			76,229			(11,193		)	141,996
Gross profit	—		24,429			4,234			13,569			—			42,232
Selling, general and administrative expenses	—		15,057			2,669			8,671			—			26,397
Special charges	—		4,314			—			—			—			4,314
Income (loss) from operations	—		5,058			1,565			4,898			—			11,521
Other income (expense)	—		(1		)	(9		)	(425		)	—			(435		)
Earnings (loss) before interest and income taxes	—		5,057			1,556			4,473			—			11,086
Interest expense	—		6,420			—			2,015			—			8,435
Income (loss) before income taxes	—		(1,363		)	1,556			2,458			—			2,651
Provision (benefit) for income taxes	—		(819		)	2			1,479			—			662
Net income (loss)	—		(544		)	1,554			979			—			1,989
Equity in net income (loss) of subsidiaries	1,989		2,533			—			—			(4,522		)	—
Net income (loss)	$	1,989	$	1,989		$	1,554		$	979		$	(4,522	)	$	1,989

Comprehensive income (loss)	$	2,780	$	2,780		$	1,696		$	(1,552	)	$	(2,924	)	$	2,780



	Three months ended March 31, 2012
(dollars in thousands)	Libbey Inc. (Parent)		Libbey Glass (Issuer)			Subsidiary Guarantors		Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—	$	93,480		$	17,445	$	93,159		$	(16,255	)	$	187,829
Freight billed to customers	—		166			183		359			—			708
Total revenues	—		93,646			17,628		93,518			(16,255		)	188,537
Cost of sales	—		74,311			13,013		74,412			(16,255		)	145,481
Gross profit	—		19,335			4,615		19,106			—			43,056
Selling, general and administrative expenses	—		17,942			1,516		8,668			—			28,126
Special charges	—		—			—		—			—			—
Income (loss) from operations	—		1,393			3,099		10,438			—			14,930
Other income (expense)	—		297			12		(900		)	—			(591		)
Earnings (loss) before interest and income taxes	—		1,690			3,111		9,538			—			14,339
Interest expense	—		8,193			—		2,215			—			10,408
Income (loss) before income taxes	—		(6,503		)	3,111		7,323			—			3,931
Provision (benefit) for income taxes	—		225			—		3,065			—			3,290
Net income (loss)	—		(6,728		)	3,111		4,258			—			641
Equity in net income (loss) of subsidiaries	641		7,369			—		—			(8,010		)	—
Net income (loss)	$	641	$	641		$	3,111	$	4,258		$	(8,010	)	$	641

Comprehensive income (loss)	$	5,753	$	5,753		$	3,235	$	7,044		$	(16,032	)	$	5,753

Libbey Inc.

Condensed Consolidating Balance Sheet




	March 31, 2013 (unaudited)
(dollars in thousands)	Libbey Inc. (Parent)		Libbey Glass (Issuer)		Subsidiary Guarantors		Non- Guarantor Subsidiaries			Eliminations			Consolidated
Cash and equivalents	$	—	$	29,134	$	93	$	16,722		$	—		$	45,949
Accounts receivable — net	—		32,082		5,823		48,359			—			86,264
Inventories — net	—		61,300		19,473		86,601			—			167,374
Other current assets	—		19,107		736		14,321			(17,330		)	16,834
Total current assets	—		141,623		26,125		166,003			(17,330		)	316,421
Other non-current assets	—		19,889		349		20,373			(4,190		)	36,421
Investments in and advances to subsidiaries	28,211		394,758		191,367		(40,824		)	(573,512		)	—
Goodwill and purchased intangible assets — net	—		27,757		12,347		147,220			—			187,324
Total other assets	28,211		442,404		204,063		126,769			(577,702		)	223,745
Property, plant and equipment — net	—		68,698		282		184,029			—			253,009
Total assets	$	28,211	$	652,725	$	230,470	$	476,801		$	(595,032	)	$	793,175

Accounts payable	$	—	$	11,990	$	1,578	$	43,691		$	—		$	57,259
Accrued and other current liabilities	—		60,435		20,485		27,085			(17,329		)	90,676
Notes payable and long-term debt due within one year	—		224		—		13,807			—			14,031
Total current liabilities	—		72,649		22,063		84,583			(17,329		)	161,966
Long-term debt	—		450,898		—		1,224			—			452,122
Other long-term liabilities	—		93,302		9,517		52,247			(4,190		)	150,876
Total liabilities	—		616,849		31,580		138,054			(21,519		)	764,964
Total shareholders’ equity (deficit)	28,211		35,876		198,890		338,747			(573,513		)	28,211
Total liabilities and shareholders’ equity (deficit)	$	28,211	$	652,725	$	230,470	$	476,801		$	(595,032	)	$	793,175

Libbey Inc.

Condensed Consolidating Balance Sheet



	December 31, 2012
(dollars in thousands)	Libbey Inc. (Parent)		Libbey Glass (Issuer)		Subsidiary Guarantors		Non- Guarantor Subsidiaries			Eliminations			Consolidated
Cash and equivalents	$	—	$	43,558	$	70	$	23,580		$	—		$	67,208
Accounts receivable — net	—		33,987		3,560		43,303			—			80,850
Inventories — net	—		52,627		18,477		86,445			—			157,549
Other current assets	—		17,931		810		10,446			(16,190		)	12,997
Total current assets	—		148,103		22,917		163,774			(16,190		)	318,604
Other non-current assets	—		22,373		54		20,387			(4,190		)	38,624
Investments in and advances to subsidiaries	24,476		384,414		194,316		(35,962		)	(567,244		)	—
Goodwill and purchased intangible assets — net	—		26,833		12,347		147,614			—			186,794
Total other assets	24,476		433,620		206,717		132,039			(571,434		)	225,418
Property, plant and equipment — net	—		72,780		298		185,076			—			258,154
Total assets	$	24,476	$	654,503	$	229,932	$	480,889		$	(587,624	)	$	802,176

Accounts payable	$	—	$	15,339	$	2,854	$	47,519		$	—		$	65,712
Accrued and other current liabilities	—		63,674		20,194		27,857			(16,190		)	95,535
Notes payable and long-term debt due within one year	—		221		—		4,362			—			4,583
Total current liabilities	—		79,234		23,048		79,738			(16,190		)	165,830
Long-term debt	—		451,090		—		10,794			—			461,884
Other long-term liabilities	—		94,434		9,691		50,051			(4,190		)	149,986
Total liabilities	—		624,758		32,739		140,583			(20,380		)	777,700
Total shareholders’ equity (deficit)	24,476		29,745		197,193		340,306			(567,244		)	24,476
Total liabilities and shareholders’ equity (deficit)	$	24,476	$	654,503	$	229,932	$	480,889		$	(587,624	)	$	802,176

Libbey Inc.

Condensed Consolidating Statements of Cash Flows

(unaudited)



	Three months ended March 31, 2013
(dollars in thousands)	Libbey Inc. (Parent)			Libbey Glass (Issuer)			Subsidiary Guarantors			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	1,989		$	1,989		$	1,554		$	979		$	(4,522	)	$	1,989
Depreciation and amortization	—			4,114			17			6,643			—			10,774
Other operating activities	(1,989		)	(19,007		)	(1,548		)	(7,421		)	4,522			(25,443		)
Net cash provided by (used in) operating activities	—			(12,904		)	23			201			—			(12,680		)
Additions to property, plant & equipment	—			(2,004		)	—			(6,878		)	—			(8,882		)
Other investing activities	—			1			—			3			—			4
Net cash (used in) investing activities	—			(2,003		)	—			(6,875		)	—			(8,878		)
Net borrowings (repayments)	—			(54		)	—			(5		)	—			(59		)
Other financing activities	—			537			—			—			—			537
Net cash provided by (used in) financing activities	—			483			—			(5		)	—			478
Exchange effect on cash	—			—			—			(179		)	—			(179		)
Increase (decrease) in cash	—			(14,424		)	23			(6,858		)	—			(21,259		)
Cash at beginning of period	—			43,558			70			23,580			—			67,208
Cash at end of period	$	—		$	29,134		$	93		$	16,722		$	—		$	45,949



	Three months ended March 31, 2012
(dollars in thousands)	Libbey Inc. (Parent)			Libbey Glass (Issuer)			Subsidiary Guarantors			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	641		$	641		$	3,111		$	4,258		$	(8,010	)	$	641
Depreciation and amortization	—			3,538			19			6,979			—			10,536
Other operating activities	(641		)	(30,332		)	(3,128		)	(4,184		)	8,010			(30,275		)
Net cash provided by (used in) operating activities	—			(26,153		)	2			7,053			—			(19,098		)
Additions to property, plant & equipment	—			(3,181		)	—			(3,265		)	—			(6,446		)
Other investing activities	—			—			—			180			—			180
Net cash (used in) investing activities	—			(3,181		)	—			(3,085		)	—			(6,266		)
Net borrowings (repayments)	—			(51		)	—			(343		)	—			(394		)
Other financing activities	—			28			—			—			—			28
Net cash provided by (used in) financing activities	—			(23		)	—			(343		)	—			(366		)
Exchange effect on cash	—			—			—			257			—			257
Increase (decrease) in cash	—			(29,357		)	2			3,882			—			(25,473		)
Cash at beginning of period	—			39,249			155			18,887			—			58,291
Cash at end of period	$	—		$	9,892		$	157		$	22,769		$	—		$	32,818