Condensed Consolidated Guarantor Financial Statements

3 Months Ended

Mar. 31, 2014

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, 2014 and March 31, 2013.

At March 31, 2014, December 31, 2013 and March 31, 2013, 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 (Loss)

(unaudited)



	Three months ended March 31, 2014
(dollars in thousands)	Libbey Inc. (Parent)			Libbey Glass (Issuer)			Subsidiary Guarantors			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	83,792		$	18,697		$	98,794		$	(19,702	)	$	181,581
Freight billed to customers	—			168			191			455			—			814
Total revenues	—			83,960			18,888			99,249			(19,702		)	182,395
Cost of sales	—			69,020			14,998			85,740			(19,702		)	150,056
Gross profit	—			14,940			3,890			13,509			—			32,339
Selling, general and administrative expenses	—			14,635			2,833			11,410			—			28,878
Special charges	—			—			—			—			—			—
Income (loss) from operations	—			305			1,057			2,099			—			3,461
Other income (expense)	—			(332		)	(10		)	20			—			(322		)
Earnings (loss) before interest and income taxes	—			(27		)	1,047			2,119			—			3,139
Interest expense	—			5,773			—			1,928			—			7,701
Income (loss) before income taxes	—			(5,800		)	1,047			191			—			(4,562		)
Provision (benefit) for income taxes	—			(1,035		)	24			(167		)	—			(1,178		)
Net income (loss)	—			(4,765		)	1,023			358			—			(3,384		)
Equity in net income (loss) of subsidiaries	(3,384		)	1,381			—			—			2,003			—
Net income (loss)	$	(3,384	)	$	(3,384	)	$	1,023		$	358		$	2,003		$	(3,384	)

Comprehensive income (loss)	$	(2,485	)	$	(2,485	)	$	1,160		$	164		$	1,161		$	(2,485	)



	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

Libbey Inc.

Condensed Consolidating Balance Sheet




	March 31, 2014 (unaudited)
(dollars in thousands)	Libbey Inc. (Parent)		Libbey Glass (Issuer)		Subsidiary Guarantors		Non- Guarantor Subsidiaries			Eliminations			Consolidated
Cash and equivalents	$	—	$	8,300	$	40	$	16,133		$	—		$	24,473
Accounts receivable — net	—		32,658		5,944		48,444			—			87,046
Inventories — net	—		58,314		22,636		93,229			—			174,179
Other current assets	—		25,444		4,278		23,272			(21,095		)	31,899
Total current assets	—		124,716		32,898		181,078			(21,095		)	317,597
Other non-current assets	—		37,192		1,379		15,051			(607		)	53,015
Investments in and advances to subsidiaries	129,666		314,506		199,079		(48,583		)	(594,668		)	—
Goodwill and purchased intangible assets — net	—		27,423		12,347		146,660			—			186,430
Total other assets	129,666		379,121		212,805		113,128			(595,275		)	239,445
Property, plant and equipment — net	—		67,758		266		196,594			—			264,618
Total assets	$	129,666	$	571,595	$	245,969	$	490,800		$	(616,370	)	$	821,660

Accounts payable	$	—	$	14,458	$	2,444	$	57,197		$	—		$	74,099
Accrued and other current liabilities	—		49,633		27,076		27,644			(21,095		)	83,258
Notes payable and long-term debt due within one year	—		239		—		5,112			—			5,351
Total current liabilities	—		64,330		29,520		89,953			(21,095		)	162,708
Long-term debt	—		404,420		—		2,388			—			406,808
Other long-term liabilities	—		64,542		8,036		50,507			(607		)	122,478
Total liabilities	—		533,292		37,556		142,848			(21,702		)	691,994
Total shareholders’ equity	129,666		38,303		208,413		347,952			(594,668		)	129,666
Total liabilities and shareholders’ equity	$	129,666	$	571,595	$	245,969	$	490,800		$	(616,370	)	$	821,660

Libbey Inc.

Condensed Consolidating Balance Sheet



	December 31, 2013
(dollars in thousands)	Libbey Inc. (Parent)		Libbey Glass (Issuer)		Subsidiary Guarantors		Non- Guarantor Subsidiaries			Eliminations			Consolidated
Cash and equivalents	$	—	$	22,070	$	62	$	20,076		$	—		$	42,208
Accounts receivable — net	—		41,193		4,562		48,794			—			94,549
Inventories — net	—		51,571		22,907		88,643			—			163,121
Other current assets	—		23,183		3,999		18,751			(21,095		)	24,838
Total current assets	—		138,017		31,530		176,264			(21,095		)	324,716
Other non-current assets	—		38,661		1,379		13,475			(607		)	52,908
Investments in and advances to subsidiaries	130,809		304,266		199,573		(41,361		)	(593,287		)	—
Goodwill and purchased intangible assets — net	—		27,423		12,347		146,934			—			186,704
Total other assets	130,809		370,350		213,299		119,048			(593,894		)	239,612
Property, plant and equipment — net	—		67,836		278		197,548			—			265,662
Total assets	$	130,809	$	576,203	$	245,107	$	492,860		$	(614,989	)	$	829,990

Accounts payable	$	—	$	16,086	$	3,404	$	60,130		$	—		$	79,620
Accrued and other current liabilities	—		50,292		26,243		27,674			(21,095		)	83,114
Notes payable and long-term debt due within one year	—		235		—		5,156			—			5,391
Total current liabilities	—		66,613		29,647		92,960			(21,095		)	168,125
Long-term debt	—		404,122		—		2,390			—			406,512
Other long-term liabilities	—		67,225		8,205		49,721			(607		)	124,544
Total liabilities	—		537,960		37,852		145,071			(21,702		)	699,181
Total shareholders’ equity	130,809		38,243		207,255		347,789			(593,287		)	130,809
Total liabilities and shareholders’ equity	$	130,809	$	576,203	$	245,107	$	492,860		$	(614,989	)	$	829,990

Libbey Inc.

Condensed Consolidating Statements of Cash Flows

(unaudited)



	Three months ended March 31, 2014
(dollars in thousands)	Libbey Inc. (Parent)			Libbey Glass (Issuer)			Subsidiary Guarantors			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	(3,384	)	$	(3,384	)	$	1,023		$	358		$	2,003		$	(3,384	)
Depreciation and amortization	—			3,199			11			7,466			—			10,676
Other operating activities	3,384			(15,119		)	(1,056		)	(4,867		)	(2,003		)	(19,661		)
Net cash provided by (used in) operating activities	—			(15,304		)	(22		)	2,957			—			(12,369		)
Additions to property, plant & equipment	—			(3,098		)	—			(6,803		)	—			(9,901		)
Other investing activities	—			4,346			—			4			—			4,350
Net cash (used in) investing activities	—			1,248			—			(6,799		)	—			(5,551		)
Net borrowings (repayments)	—			(50		)	—			—			—			(50		)
Other financing activities	—			336			—			—			—			336
Net cash provided by (used in) financing activities	—			286			—			—			—			286
Exchange effect on cash	—			—			—			(101		)	—			(101		)
Increase (decrease) in cash	—			(13,770		)	(22		)	(3,943		)	—			(17,735		)
Cash at beginning of period	—			22,070			62			20,076			—			42,208
Cash at end of period	$	—		$	8,300		$	40		$	16,133		$	—		$	24,473



	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