Segments

6 Months Ended

Jun. 30, 2011

Segments [Abstract]

Segments

12. Segments

We have revised our segment structure to reflect our reorganization from geographical regions to one global company. Under this new structure, we have two reportable segments: Glass Operations and Other Operations. The classifications are defined as follows:

Glass Operations — includes worldwide sales of glass tableware and other glass products from domestic and international subsidiaries.

Other Operations — includes worldwide sales of ceramic dinnerware, metal tableware, hollowware and serveware and plastic items. Plastic items were sold through April 28, 2011.

Our measure of profit for our reportable segments is Segment Earnings before Interest and Taxes (EBIT) and excludes amounts related to certain items we consider not representative of ongoing operations as well as certain retained corporate costs. We use Segment EBIT, along with net sales and selected cash flow information, to evaluate performance and to allocate resources. Segment EBIT for reportable segments includes an allocation of some corporate expenses based on both a percentage of sales and direct billings based on the costs of services performed.

Certain activities not related to any particular reportable segment are reported within retained corporate costs. These costs include certain headquarter, administrative and facility costs, and other costs that are global in nature and are not allocable to the reporting segments. Corporate assets primarily include finance fees, capitalized software, and income tax assets.

The accounting policies of the reportable segments are the same as those described in note 2. We do not have any customers who represent 10 percent or more of total sales. Inter-segment sales are consummated at arm’s length and are reflected in eliminations below.

	Three months ended June 30,						Six months ended June 30,
(dollars in thousands)	2011			2010			2011			2010
Net Sales:
Glass Operations	$	194,487		$	180,815		$	356,540		$	335,959
Other Operations		19,690			22,376			38,851			41,250
Eliminations		(164	)		(155	)		(363	)		(269	)
Consolidated	$	214,013		$	203,036		$	395,028		$	376,940
Segment EBIT:
Glass Operations	$	29,973			31,188			47,364			46,614
Other Operations		3,762			4,754			6,641			8,239
Total Segment EBIT	$	33,735		$	35,942		$	54,005		$	54,853
Reconciliation of Segment EBIT to Net Income:
Segment EBIT	$	33,735		$	35,942		$	54,005		$	54,853
Retained corporate costs		(9,938	)		(9,232	)		(19,903	)		(17,723	)
(Loss) gain on redemption of debt (note 4)		—			—			(2,803	)		56,792
Gain on sale of Traex		3,321			—			3,321			—
Gain on sale of land (1)		—			—			3,445			—
Restructuring and other charges (note 5)		1,078			(2,843	)		1,027			(3,205	)
Other special income (charges) (2)		(420	)		945			(420	)		945
Interest expense		(10,787	)		(11,768	)		(22,370	)		(21,388	)
Income taxes		(1,583	)		(3,477	)		(1,897	)		(5,297	)
Net income	$	15,406		$	9,567		$	14,405		$	64,977
Depreciation & Amortization:
Glass Operations	$	10,531		$	10,025		$	20,780		$	19,869
Other Operations		54			184			246			371
Corporate		442			359			882			714
Consolidated	$	11,027		$	10,568		$	21,908		$	20,954
Capital Expenditures:
Glass Operations	$	9,347		$	6,962		$	17,769		$	10,801
Other Operations		—			14			3			14
Corporate		545			255			626			564
Consolidated	$	9,892		$	7,231		$	18,398		$	11,379

	June 30,		December 31,
(dollars in thousands)	2011		2010
Segment Assets:
Glass Operations	$	755,753	$	752,058
Other Operations		36,930		45,944
Corporate		22,568		20,969
Consolidated	$	815,251	$	818,971

(1)	Net gain on the sale of land at our Royal Leerdam facility.
(2)	For 2011 this represents CEO transition expenses and for 2010 this is an insurance claim recovery.