O-I Glass (OI) 10-K 10 Feb 10 2009 FY Annual report Financial data

CONSOLIDATED RESULTS OF OPERATI

CONSOLIDATED RESULTS OF OPERATIONS (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
CONSOLIDATED RESULTS OF OPERATIONS
Net sales	7066.5	7884.7	7566.7
Manufacturing, shipping, and delivery	-5582.6	-6208.1	-5971.4
Gross profit	1483.9	1676.6	1595.3
Selling and administrative expense	-506.4	-511.9	-520.6
Research, development, and engineering expense	-58.8	-66.6	-65.8
Interest expense	-221.7	(253)	-348.6
Interest income	28.6	38.6	42.3
Equity earnings	52.6	50.8	34.1
Royalties and net technical assistance	12.9	18.6	19.7
Other income	11.2	9.5	16.4
Other expense	(477)	-404.2	-266.2
Earnings from continuing operations before income taxes	325.3	558.4	506.6
Provision for income taxes	-127.5	-236.7	-147.8
Earnings from continuing operations	197.8	321.7	358.8
Net earnings of discontinued operations			3
Gain on sale of discontinued operations		6.8	1038.5
Net earnings	197.8	328.5	1400.3
Net earnings attributable to noncontrolling interests	(36)	-70.2	-59.7
Net earnings attributable to the Company	161.8	258.3	1340.6
Convertible preferred stock dividends		-5.4	-21.5
Earnings available to common share owners	161.8	252.9	1319.1
Amounts attributable to the Company:
Earnings from continuing operations	161.8	251.5	299.3
Net earnings of discontinued operations			2.8
Gain on sale of discontinued operations		6.8	1038.5
Net earnings attributable to the Company	161.8	258.3	1340.6
Basic earnings per share:
Earnings from continuing operations (in dollars per share)	0.96	1.49	1.78
Net earnings of discontinued operations (in dollars per share)			0.02
Gain on sale of discontinued operations (in dollars per share)		0.04	6.66
Net earnings (in dollars per share)	0.96	1.53	8.46
Diluted earnings per share:
Earnings from continuing operations (in dollars per share)	0.95	1.48	1.78
Net earnings of discontinued operations (in dollars per share)			0.02
Gain on sale of discontinued operations (in dollars per share)		0.04	6.19
Net earnings (in dollars per share)	0.95	1.52	7.99

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
Current assets:
Cash, including time deposits of $561.4 ($307.5 in 2008)	811.7	379.5
Short-term investments	0.9	25
Receivables, less allowances of $36.5 ($39.7 in 2008) for losses and discounts	1004.2	988.8
Inventories	900.3	999.5
Prepaid expenses	79.6	51.9
Total current assets	2796.7	2444.7
Other assets:
Equity investments	114.3	101.7
Repair parts inventories	125.1	132.5
Prepaid pension	46.3
Deposits, receivables, and other assets	521.7	444.5
Goodwill	2,381	2207.5
Total other assets	3188.4	2886.2
Property, plant, and equipment:
Land, at cost	248.5	248.1
Buildings and equipment, at cost:
Buildings and building equipment	1175.8	1078.4
Factory machinery and equipment	4771.6	4345.3
Transportation, office, and miscellaneous equipment	131.1	114.6
Construction in progress	291.9	196.7
Total property, plant, and equipment, at cost	6618.9	5983.1
Less accumulated depreciation	3876.6	3337.5
Net property, plant, and equipment	2742.3	2645.6
Total assets	8727.4	7976.5
Current liabilities:
Short-term loans	302.3	375.6
Accounts payable	863.2	838.2
Salaries and wages	170.8	141.6
U.S. and foreign income taxes	39.8	78.7
Current portion of asbestos-related liabilities	175	175
Other accrued liabilities	433.5	376
Long-term debt due within one year	49.7	18.2
Total current liabilities	2034.3	2003.3
Long-term debt	3257.5	2940.3
Deferred taxes	186.3	77.6
Pension benefits	577.6	741.8
Nonpension postretirement benefits	266.7	239.7
Other liabilities	358.5	360.1
Asbestos-related liabilities	310.1	320.3
The Company's share owners' equity:
Common stock, par value $.01 per share, 250,000,000 shares authorized, 179,923,309 and 178,705,817 shares issued and outstanding, respectively	1.8	1.8
Capital in excess of par value	2941.9	2913.3
Treasury stock, at cost 11,322,544 and 11,556,341 shares, respectively	-217.1	-221.5
Retained earnings (deficit)	129.4	-32.4
Accumulated other comprehensive loss	-1317.8	-1620.6
Total share owners' equity of the Company	1538.2	1040.6
Noncontrolling interests	198.2	252.8
Total share owners' equity	1736.4	1293.4
Total liabilities and share owners' equity	8727.4	7976.5

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
In Millions, except Share data	Dec. 31, 2009	Dec. 31, 2008
CONSOLIDATED BALANCE SHEETS
Time deposits (in dollars)	561.4	307.5
Allowances for losses and discounts (in dollars)	36.5	39.7
Common stock, par value (in dollars per share)	0.01	0.01
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	179,923,309	178,705,817
Common stock, shares outstanding	179,923,309	178,705,817
Treasury stock, shares	11,322,544	11,556,341

CONSOLIDATED STOCKHOLDERS' EQUI

CONSOLIDATED STOCKHOLDERS' EQUITY (USD $)
In Millions	Convertible Preferred Stock, Common Stock, Capital in Excess of Par Value, and Treasury Stock	Retained Earnings (Deficit)	Accumulated Other Comprehensive Loss	Non-controlling Interests	Total
Balance at Dec. 31, 2006	2555.3	-1604.4	-594.2	206.6	563.3
Issuance of common stock	90.5				90.5
Reissuance of common stock	3.8				3.8
Comprehensive income:
Net earnings		1340.6		59.7	1400.3
Foreign currency translation adjustments			325.3	14	339.3
Pension and other postretirement benefit adjustments, net of tax			63.8		63.8
Change in fair value of derivative instruments, net of tax			28.2		28.2
Total comprehensive income (loss)					1831.6
Dividends paid to noncontrolling interests on subsidiary common stock				-28.6	-28.6
Dividends paid on convertible preferred stock		-21.5			-21.5
Balance at Dec. 31, 2007	2649.6	-285.3	-176.9	251.7	2439.1
Issuance of common stock	40.9				40.9
Reissuance of common stock	3.1				3.1
Comprehensive income:
Net earnings		258.3		70.2	328.5
Foreign currency translation adjustments			-431.9	-19.5	-451.4
Pension and other postretirement benefit adjustments, net of tax			-978.9		-978.9
Change in fair value of derivative instruments, net of tax			-32.9		-32.9
Total comprehensive income (loss)					-1134.7
Dividends paid to noncontrolling interests on subsidiary common stock				-49.6	-49.6
Dividends paid on convertible preferred stock		-5.4			-5.4
Balance at Dec. 31, 2008	2693.6	-32.4	-1620.6	252.8	1293.4
Issuance of common stock	27.2				27.2
Reissuance of common stock	5.8				5.8
Comprehensive income:
Net earnings		161.8		36	197.8
Foreign currency translation adjustments			228.9	-28.4	200.5
Pension and other postretirement benefit adjustments, net of tax			50.4		50.4
Change in fair value of derivative instruments, net of tax			23.5		23.5
Total comprehensive income (loss)					472.2
Dividends paid to noncontrolling interests on subsidiary common stock				-62.2	-62.2
Balance at Dec. 31, 2009	2726.6	129.4	-1317.8	198.2	1736.4

CONSOLIDATED CASH FLOWS

CONSOLIDATED CASH FLOWS (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Operating activities:
Net earnings	197.8	328.5	1400.3
Net earnings attributable to noncontrolling interests	(36)	-70.2	-59.7
Net earnings of discontinued operations			-2.8
Gain on sale of discontinued operations		-6.8	-1038.5
Non-cash charges (credits):
Depreciation	374.8	431	423.4
Amortization of intangibles and other deferred items	21.1	28.9	28.9
Amortization of finance fees and debt discount	10.4	7.9	8.6
Deferred tax provision	51.9	21	3.2
Non-cash tax benefit	-47.9
Restructuring and asset impairment	213.6	133.3	100.3
Future asbestos-related costs	180	250	115
Other	107.2	140	78.7
Asbestos-related payments	-190.3	-210.2	-347.1
Cash paid for restructuring activities	-68.3	-48.9	-17.8
Change in non-current operating assets	21.3	1.4	-7.4
Reduction of non-current liabilities	-178.9	-90.1	-67.6
Change in components of working capital	143.3	-158.6	36.2
Cash provided by continuing operating activities	800	757.2	653.7
Cash provided by discontinued operating activities			11.3
Total cash provided by operating activities	800	757.2	665
Investing activities:
Additions to property, plant, and equipment - continuing	-427.6	-361.7	-292.5
Additions to property, plant, and equipment - discontinued			-23.3
Acquisitions, net of cash acquired	-5.4		-9.8
Advances to equity affiliate - net	1.6	-1.6
Net cash proceeds from divestitures and other	13.4	-13.9	1,770
Cash provided by (utilized in) investing activities	(418)	-377.2	1444.4
Financing activities:
Additions to long-term debt	1080.1	686.4	406.4
Repayments of long-term debt	-831.6	-945.4	-2393.2
Increase (decrease) in short-term loans	-79.4	-20.6	-21.5
Net receipts (payments) for hedging activity	14.3	-45.2	5.7
Payment of finance fees	(14)		-6.3
Dividends paid to noncontrolling interests	-62.2	-49.6	-28.6
Convertible preferred stock dividends		-5.4	-21.5
Issuance of common stock	7	14.5	62.8
Cash utilized in financing activities	114.2	-365.3	-1996.2
Effect of exchange rate fluctuations on cash	(64)	-22.9	51.8
Increase (decrease) in cash	432.2	-8.2	165
Cash at beginning of year	379.5	387.7	222.7
Cash at end of year	811.7	379.5	387.7

Significant Accounting Policies

Significant Accounting Policies
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Significant Accounting Policies	1. Significant Accounting Policies Basis of Consolidated Statements The consolidated financial statements of Owens-Illinois,Inc. (Company) include the accounts of its subsidiaries. Newly acquired subsidiaries have been included in the consolidated financial statements from dates of acquisition. The Company uses the equity method of accounting for investments in which it has a significant ownership interest, generally 20% to 50%. Other investments are accounted for at cost. The Company monitors other than temporary declines in fair value and records reductions in carrying values when appropriate. Results of operations for the plastics packaging business sold during 2007 have been presented as a discontinued operation. The format of the Companys 2007 consolidated income statements has been reclassified to conform to the presentation used in the current period. The individual captions within the financial statements did not change. The format of the Companys consolidated cash flows for the years ended December31, 2008 and 2007 has been reclassified to conform to the 2009 presentation. Amounts related to cash paid for restructuring activities have been reclassified from changes in working capital and non-current liabilities and are now shown separately. The Company has evaluated subsequent events through February10, 2010, the date the financial statements were issued. Newly Adopted Financial Statement Pronouncements Effective January1, 2009, the Company adopted the provisions of a new accounting standard which changed the presentation of noncontrolling interests in subsidiaries. The format of the Companys consolidated results of operations, consolidated share owners equity, and consolidated cash flows for the years ended December31, 2008 and 2007, and consolidated balance sheet at December31, 2008 have been reclassified to conform to the new presentation which is required to be applied retrospectively. Effective January1, 2009, the Company adopted the provisions of a new accounting standard which required the Company to allocate earnings to unvested restricted shares outstanding during the period. Earnings per share for the years ended December31, 2008 and 2007 were restated in accordance with the new provisions which are required to be applied retrospectively. Nature of Operations The Company is a leading manufacturer of glass container products. The Companys principal product lines are glass containers for the food and beverage industries. The Company has glass container operations located in 21 countries. The principal markets and operations for the Companys products are in Europe, North America, South America, and Australia. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management of the Company to make estimates and assumptions that affect certain amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates, at which time the Company would revise its estimates accordingly. For further information on certain of the Companys significant estimates relative to c

Earnings Per Share

Earnings Per Share
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Earnings Per Share	2. Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share: Years ended December31, 2009 2008 2007 Numerator: Net earnings attributable to the Company $ 161.8 $ 258.3 $ 1,340.6 Convertible preferred stock dividends (5.4 ) (21.5 ) Net earnings attributable to participating securities (0.6 ) (2.6 ) (13.9 ) Numerator for basic earnings per share - income available to common share owners $ 161.2 $ 250.3 $ 1,305.2 Denominator: Denominator for basic earnings per share - weighted average shares outstanding 167,687,408 163,177,874 154,215,269 Effect of dilutive securities: Convertible preferred stock 2,147,339 8,589,355 Stock options and other 2,852,282 4,352,076 4,962,683 Denominator for diluted earnings per share - adjusted weighted average shares and assumed exchanges of preferred stock for common stock 170,539,690 169,677,289 167,767,307 Basic earnings per share: Earnings from continuing operations $ 0.96 $ 1.49 $ 1.78 Net earnings of discontinued operations 0.02 Gain on sale of discontinued operations 0.04 6.66 Net earnings $ 0.96 $ 1.53 $ 8.46 Diluted earnings per share: Earnings from continuing operations $ 0.95 $ 1.48 $ 1.78 Net earnings of discontinued operations 0.02 Gain on sale of discontinued operations 0.04 6.19 Net earnings $ 0.95 $ 1.52 $ 7.99 The convertible preferred stock was included in the computation of diluted earnings per share for 2008, to the extent outstanding during 2008, and 2007 on an if converted basis since the result was dilutive. For purposes of this computation, the preferred stock dividends were not subtracted from the numerator. Options to purchase 994,834, 241,711, and 862,906 weighted average shares of common stock which were outstanding during 2009, 2008, and 2007, respectively, were not included in the computation of diluted earnings per share because the options exercise prices were greater than the average market price of the common shares. Effective January1, 2009, the Company adopted the provisions of a new accounting standard, which addresses whether instruments granted in share-based payment awards are participating securities prior to vesting and, therefore, must be included in the earnings allocation in calculating earnings per share under the two-class method. The new provisions require that unvested share-based payment awards that contain non-forfeitable rights to dividends be treated as participating securities in calculating earnings per share. The Company was required to allocate earnings to unvested restricted shares outstanding during the period. Basic earnings per share for the years ended December31, 2008 and 2007 were reduced by $0.02 and $0.09 per share, respectively, in accordance with the new provisions which require retrospective application. There was no impact on basic earnings per share for the year ended December31, 2

Supplemental Cash Flow Informat

Supplemental Cash Flow Information
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Supplemental Cash Flow Information	3. Supplemental Cash Flow Information Changes in the components of working capital related to operations (net of the effects related to acquisitions and divestitures) were as follows: 2009 2008 2007 Decrease (increase) in current assets: Receivables $ (3.3 ) $ 57.8 $ (16.5 ) Inventories 151.9 (74.1 ) 63.0 Prepaid expenses and other (18.4 ) 35.2 (21.4 ) Increase (decrease) in current liabilities: Accounts payable 32.6 (56.7 ) (2.9 ) Accrued liabilities (17.7 ) (52.9 ) (63.2 ) Salaries and wages 20.4 (37.2 ) 38.3 U.S. and foreign income taxes (22.2 ) (30.7 ) 24.5 $ 143.3 $ (158.6 ) $ 21.8 Continuing operations $ 143.3 $ (158.6 ) $ 36.2 Discontinued operations (14.4 ) $ 143.3 $ (158.6 ) $ 21.8 Interest paid in cash, including note repurchase premiums in 2009 and 2007, aggregated $195.1 million for 2009, $251.9 million for 2008, and $452.4 million for 2007. Income taxes paid (received) in cash were as follows: 2009 2008 2007 Domestic $ (1.7 ) $ (1.2 ) $ 31.8 Foreign 196.0 162.5 151.1 $ 194.3 $ 161.3 $ 182.9

Inventories

Inventories
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Inventories	4. Inventories Major classes of inventory are as follows: 2009 2008 Finished goods $ 741.5 $ 831.7 Work in process 0.8 0.8 Raw materials 106.6 109.8 Operating supplies 51.4 57.2 $ 900.3 $ 999.5 If the inventories which are valued on the LIFO method had been valued at standard costs, which approximate current costs, consolidated inventories would be higher than reported by $42.6 million and $32.5 million at December31, 2009 and 2008, respectively. Inventories which are valued at the lower of standard costs (which approximate average costs) or market at December31, 2009 and 2008 were approximately $772.6 million and $861.7 million, respectively.

Equity Investments

Equity Investments
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Equity Investments	5. Equity Investments Summarized information pertaining to the Companys equity associates follows: 2009 2008 At end of year: Equity in undistributed earnings: Foreign $ 44.5 $ 32.0 Domestic 25.8 19.6 Total $ 70.3 $ 51.6 2009 2008 2007 For the year: Equity in earnings: Foreign $ 12.5 $ 14.1 $ 5.3 Domestic 40.1 36.7 28.8 Total $ 52.6 $ 50.8 $ 34.1 Dividends received $ 33.8 $ 24.5 $ 21.7 Summarized combined financial information for equity associates is as follows: 2009 2008 At end of year: Current assets $ 218.0 $ 208.3 Non-current assets 314.1 325.9 Total assets 532.1 534.2 Current liabilities 138.5 167.5 Other liabilities and deferred items 145.9 137.9 Total liabilities and deferred items 284.4 305.4 Net assets $ 247.7 $ 228.8 2009 2008 2007 (a) For the year: Net sales $ 548.6 $ 635.8 $ 535.9 Gross profit $ 199.6 $ 227.5 $ 176.5 Net earnings $ 158.0 $ 153.9 $ 112.4 (a)Amounts for 2007 exclude the Companys Caribbean investment due to the impairment recorded during 2007. The Companys significant equity method investments include: (1)50% of the common shares of Vetri Speciali SpA, a specialty glass manufacturer; (2)a 25% partnership interest in General Chemical Soda Ash (Partners), a soda ash supplier; and (3)a 50% partnership interest in Rocky Mountain Bottle Company, a glass container manufacturer.

Debt

Debt
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Debt	6. Debt The following table summarizes the long-term debt of the Company at December31, 2009 and 2008: 2009 2008 Secured Credit Agreement: Revolving Credit Facility: Revolving Loans $ $ 18.7 Term Loans: Term Loan A (160.0 million AUD at Dec.31, 2009) 143.9 155.7 Term Loan B 189.5 191.5 Term Loan C (110.8 million CAD at Dec.31, 2009) 105.4 90.9 Term Loan D (189.5 million at Dec.31, 2009) 273.5 269.6 Senior Notes: 8.25%, due 2013 460.4 470.0 6.75%, due 2014 400.0 400.0 6.75%, due 2014 (225 million) 324.7 316.8 7.375%, due 2016 582.1 6.875%, due 2017 (300 million) 432.9 422.4 Senior Debentures: 7.50%, due 2010 28.3 259.5 7.80%, due 2018 250.0 250.0 Other 116.5 113.4 Total long-term debt 3,307.2 2,958.5 Less amounts due within one year 49.7 18.2 Long-term debt $ 3,257.5 $ 2,940.3 On June14, 2006, the Companys subsidiary borrowers entered into the Secured Credit Agreement (the Agreement). At December31, 2009, the Agreement included a $900.0 million revolving credit facility, a 160.0 million Australian dollar term loan, and a 110.8 million Canadian dollar term loan, each of which has a final maturity date of June15, 2012. It also included a $189.5 million term loan and a 189.5 million term loan, each of which has a final maturity date of June14, 2013. During 2009, the Companys subsidiary borrowers repaid 65.0 million Australian dollars, $2.0 million and 2.0 million of term loans under the Agreement. As a result of the 2008 bankruptcy of Lehman Brothers Holdings Inc. and several of its subsidiaries, the Company believes that the maximum amount available under the revolving credit facility was reduced by $32.3 million. After further deducting amounts attributable to letters of credit and overdraft facilities that are supported by the revolving credit facility, at December31, 2009 the Companys subsidiary borrowers had unused credit of $760.0 million available under the Agreement. The Agreement contains various covenants that restrict, among other things and subject to certain exceptions, the ability of the Company to incur certain liens, make certain investments and acquisitions, become liable under contingent obligations in certain defined instances only, make restricted junior payments, make certain asset sales within guidelines and limits, make capital expenditures beyond a certain threshold, engage in material transactions with shareholders and affiliates, participate in sale and leaseback financing arrangements, alter its fundamental business, amend certain outstanding debt obligations, and prepay certain outstanding debt obligations. The Agreement also contains one financial maintenance covenant, a Leverage Ratio, that requires the Company not to exceed a ratio calculated by dividing consolidated total debt, less cash and cash equivalents, by Consolidated Adjusted EBITDA, as defined in the Agreement. The Leverage Ratio could restrict the ability of the Company to undertake additional financing to the extent that such financing

Operating Leases

Operating Leases
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Operating Leases	7. Operating Leases Rent expense attributable to all warehouse, office buildings and equipment operating leases was $110.2 million in 2009, $98.9 million in 2008, and $92.8 million in 2007. Minimum future rentals under operating leases are as follows: 2010, $60.8 million; 2011, $45.2 million; 2012, $32.6 million; 2013, $22.3 million; 2014, $14.5 million; and 2015 and thereafter, $23.6 million.

Foreign Currency Transactions

Foreign Currency Transactions
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Foreign Currency Transactions	8. Foreign Currency Transactions Aggregate foreign currency exchange gains (losses) included in other expense were $(29.2) million in 2009, $0.6 million in 2008, and $(8.1) million in 2007. During 2009, the Company entered into a series of parallel market transactions to exchange Venezuelan bolivars into U.S. dollars. In the parallel market, bolivars were valued significantly lower than the official government rate, giving rise to exchange losses from such transactions. As a result, the Company recognized foreign currency exchange losses of $28.0 million for the year.

Derivative Instruments

Derivative Instruments
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Derivative Instruments	9. Derivative Instruments The Company has certain derivative assets and liabilities which consist of interest rate swaps, natural gas forwards, and foreign exchange option and forward contracts. The Company records derivative assets and liabilities at fair value and classifies them as Level 2 in the fair value hierarchy. Interest Rate Swaps Designated as Fair Value Hedges In the fourth quarter of 2003 and the first quarter of 2004, the Company entered into a series of interest rate swap agreements with a total notional amount of $700million that were to mature in 2010 and2013. The swaps were executed in order to: (i)convert a portion of the senior notes and senior debentures fixed-rate debt into floating-rate debt; (ii)maintain a capital structure containing appropriate amounts of fixed and floating-rate debt; and (iii)reduce net interest payments and expense in the near-term. The Companys fixed-to-floating interest rate swaps were accounted for as fair value hedges. Because the relevant terms of the swap agreements matched the corresponding terms of the notes, there was no hedge ineffectiveness. Accordingly, the Company recorded the net of the fair market values of the swaps as a long-term asset (liability) along with a corresponding net increase (decrease) in the carrying value of the hedged debt. For derivative instruments that are designated and qualify as fair value hedges, the change in the fair value of the derivative instrument related to the future cash flows (gain or loss on the derivative) as well as the offsetting change in the fair value of the hedged item attributable to the hedged risk are recognized in current earnings. The Company includes the gain or loss on the hedged items (i.e. long-term debt) in the same line item (interest expense) as the offsetting loss or gain on the related interest rate swaps. During the second quarter of 2009, the Company completed a tender offer for its $250 million senior debentures due 2010. As a result of the tender offer, the Company extinguished $221.9 million of the senior debentures and terminated the related interest rate swap agreements for proceeds of $5.0 million. The Company recognized $4.4 million of the proceeds as a reduction of interest expense upon the termination of the interest rate swap agreements, while the remaining $0.6 million is recorded as an adjustment to the debt and will be recognized as a reduction of interest expense over the remaining life of the outstanding senior debentures due 2010. See Note 6 for additional information. During the second quarter of 2009, the Companys interest rate swaps related to the $450 million senior notes due 2013 were terminated. The Company received proceeds of $12.4 million which were recorded as an adjustment to debt and will be recognized as a reduction of interest expense over the remaining life of the senior notes due 2013. As of December31, 2009, the balance of unamortized proceeds from terminated interest rate swaps included in long-term debt was $10.6 million. The effect of the interest rate swaps on the results of operations for the year ended December31, 2009 and 2008 is as follows: Amount of Gain (Lo

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Accumulated Other Comprehensive Income (Loss)	10. Accumulated Other Comprehensive Income (Loss) The components of comprehensive income are: (a)net earnings; (b)change in fair value of certain derivative instruments; (c)pension and other postretirement benefit adjustments; and (d)foreign currency translation adjustments. The net effect of exchange rate fluctuations generally reflects changes in the relative strength of the U.S. dollar against major foreign currencies between the beginning and end of the year. The following table lists the beginning balance, yearly activity and ending balance of each component of accumulated other comprehensive income (loss): Net Effect of Exchange Rate Fluctuations Deferred Tax Effect for Translation Unfunded Pension Liability Change in Certain Derivative Instruments Employee Benefit Plans Total Accumulated Comprehensive Income (Loss) Balance on January1, 2007 $ 168.0 $ 12.7 $ (122.9 ) $ (34.9 ) $ (617.1 ) $ (594.2 ) 2007 Change 325.3 28.2 79.1 432.6 Translation effect (6.7 ) (6.7 ) Reclass 122.9 2.2 (125.1 ) Tax effect (8.6 ) (8.6 ) Balance on Dec.31, 2007 493.3 12.7 (4.5 ) (678.4 ) (176.9 ) 2008 Change (431.9 ) (32.9 ) (1,080.1 ) (1,544.9 ) Translation effect 46.1 46.1 Tax effect 55.1 55.1 Balance on Dec.31, 2008 61.4 12.7 (37.4 ) (1,657.3 ) (1,620.6 ) 2009 Change 228.9 36.1 133.5 398.5 Translation effect (33.7 ) (33.7 ) Tax effect (14.1 ) (14.1 ) Intraperiod tax allocation (12.6 ) (35.3 ) (47.9 ) Balance on Dec.31, 2009 $ 290.3 $ 12.7 $ $ (13.9 ) $ (1,606.9 ) $ (1,317.8 ) Exchange rate fluctuations in 2009 include a loss of $132.5 million related to the Companys decision to translate the balance sheets of its Venezuelan subsidiaries using the parallel market rate at December31, 2009 instead of the historic official rate. See Note 22 to the Consolidated Financial Statements for further information. The intraperiod tax allocation in 2009 related to a non-cash tax benefit transferred to continuing operations. See Note 11 to the Consolidated Financial Statements for further information.

Income Taxes

Income Taxes
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Income Taxes	11. Income Taxes Deferred income taxes reflect: (1)the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes; and (2)carryovers and credits for income tax purposes. Significant components of the Companys deferred tax assets and liabilities at December31, 2009 and 2008 are as follows: 2009 2008 Deferred tax assets: Accrued postretirement benefits $ 87.8 $ 84.0 Asbestos-related liabilities 169.8 173.4 Foreign tax credit 312.0 295.5 Tax loss and credit carryovers 392.8 342.9 Capital loss carryovers 24.7 23.7 Alternative minimum tax credits 25.2 20.5 Accrued liabilities 169.5 159.3 Pension liability 127.2 181.0 Other 69.9 26.5 Total deferred tax assets 1,378.9 1,306.8 Deferred tax liabilities: Property, plant, and equipment 148.7 151.1 Inventory 12.0 13.4 Other 67.3 49.3 Total deferred tax liabilities 228.0 213.8 Valuation allowance (1,095.8 ) (1,047.5 ) Net deferred taxes $ 55.1 $ 45.5 Deferred taxes are included in the Consolidated Balance Sheets at December31, 2009 and 2008 as follows: 2009 2008 Prepaid expenses $ 7.9 $ 24.1 Deposits, receivables, and other assets 233.5 99.0 Deferred taxes (186.3 ) (77.6 ) Net deferred taxes $ 55.1 $ 45.5 The Company reviews the likelihood that it will realize the benefit of its deferred tax assets and therefore the need for valuation allowances on a quarterly basis, or whenever events indicate that a review is required. In determining the requirement for a valuation allowance, the historical and projected financial results of the legal entity or consolidated group recording the net deferred tax asset is considered, along with other positive and negative evidence. The following details the valuation allowance activity: Year Beginning Year Balance Foreign Currency Translation Other Changes Goodwill Comprehensive Income Ending Year Balance 2007 $ (1,262.3 ) $ (17.4 ) $ 514.1 $ 24.9 $ 12.7 $ (728.0 ) 2008 (728.0 ) 21.6 (12.9 ) 0.6 (328.8 ) (1,047.5 ) 2009 (1,047.5 ) (12.6 ) (82.2 ) 46.5 (1,095.8 ) In 2007, the Company reduced the valuation allowance recorded against its deferred tax assets in the United States by $466.0 million through the utilization of net operating and capital loss carryforwards. The provision (benefit) for income taxes consists of the following: 2009 2008 2007 Current: U.S. Federal $ 0.7 $ (2.7 ) $ State (0.5 ) 0.6 31.1 Foreign 123.3 213.0 145.2 123.5 210.9 176.3 Deferred: U.S. Federal (47.6 ) 14.6 8.0 State (2.5 ) (2.0 ) 1.0 Foreign 54.1 8.4 (1.7 ) 4.0 21.0

Convertible Preferred Stock

Convertible Preferred Stock
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Convertible Preferred Stock	12. Convertible Preferred Stock On February29, 2008, the Company announced that all outstanding shares of convertible preferred stock would be redeemed on March31, 2008, if not converted by holders prior to that date. All conversions and redemptions were completed by March31, 2008 through the issuance of 8,584,479 shares of common stock. The conversions and redemptions resulted in an increase in common stock and capital in excess of par value.

Stock Options and Other Stock B

Stock Options and Other Stock Based Compensation
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Stock Options and Other Stock Based Compensation	13. Stock Options and Other Stock Based Compensation The Company has five nonqualified plans under which it has granted stock options, restricted shares and performance vested restricted share units: (1)the Stock Option Plan for Key Employees of Owens-Illinois,Inc.; (2)the Stock Option Plan for Directors of Owens-Illinois,Inc.; (3)the 1997 Equity Participation Plan of Owens-Illinois,Inc.; (4)the 2004 Equity Incentive Plan for Directors of Owens-Illinois,Inc.; and (5)the 2005 Equity Incentive Plan of Owens-Illinois,Inc. At December31, 2009, there were 7,254,749 shares authorized and available for grants under these plans. Total compensation cost for all grants of shares and units under all of these plans was $20.2 million ($18.2 million after tax) for the year ended December31, 2009. Total compensation cost for grants of shares and units was $21.4 million ($19.1 million after tax) in 2008 and $23.6 million ($21.9 million after tax) in 2007. Stock Options For options granted prior to March22, 2005, no options may be exercised in whole or in part during the first year after the date granted. In general, subject to accelerated exercisability provisions related to the performance of the Companys common stock or change of control, 50% of the options become exercisable on the fifth anniversary of the date of the option grant, with the remaining 50% becoming exercisable on the sixth anniversary date of the option grant. In general, options expire following termination of employment or the day after the tenth anniversary date of the option grant. For options granted after March21, 2005, no options may be exercised in whole or in part during the first year after the date granted. In general, subject to change in control, these options become exercisable 25% per year beginning on the first anniversary. In general, options expire following termination of employment or the seventh anniversary of the option grant. The fair value of options granted before March22, 2005, is amortized ratably over five years or a shorter period if the grant becomes subject to accelerated exercisability provisions related to the performance of the Companys common stock. The fair value of options granted after March21, 2005, is amortized over the vesting periods which range from one to four years. Stock option information at December31, 2009 and for the year then ended is as follows: Weighted Weighted Average Average Remaining Number of Exercise Contractual Aggregate Shares Price Term Intrinsic (thousands) (per share) (years) Value Options outstanding at January1, 2009 3,213 $ 23.56 Granted 1,644 10.30 Exercised (417 ) 16.80 Forfeited or expired (379 ) 23.03 Options outstanding at Dec.31, 2009 4,061 18.93 4.8 $ 56.6 Options vested or expected to vest at Dec.31, 2009 4,009 $ 18.93 4.8 $ 55.9 Options exercisable at Dec.31, 2009 1,800 $ 20.55 3.7 $ 24.2 Certain additional information related to stock options is as follows for the periods indicated: 2009 2008 2

Pension Benefit Plans and Other

Pension Benefit Plans and Other Postretirement Benefits
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Pension Benefit Plans and Other Postretirement Benefits	14. Pension Benefit Plans and Other Postretirement Benefits Pension Benefit Plans Net expense (income) to results of operations for all of the Companys pension plans and certain deferred compensation arrangements amounted to $42.2 million in 2009, $(3.5) million in 2008, and $24.9 million in 2007. The Company has defined benefit pension plans covering a substantial number of employees located in the United States, the United Kingdom, The Netherlands, Canada and Australia, as well as many employees in Germany and France. Benefits generally are based on compensation for salaried employees and on length of service for hourly employees. The Companys policy is to fund pension plans such that sufficient assets will be available to meet future benefit requirements. The Companys defined benefit pension plans use a December31 measurement date. The following tables relate to the Companys principal defined benefit pension plans. The changes in the pension benefit obligations for the year were as follows: 2009 2008 Obligations at beginning of year $ 3,435.4 $ 3,817.7 Change in benefit obligations: Service cost 41.8 46.3 Interest cost 213.2 215.2 Actuarial (gain) loss, including effect of changing discount rates 247.6 (108.5 ) Curtailments (2.8 ) (9.5 ) Special termination benefits 8.6 4.4 Settlements (30.3 ) Participant contributions 7.4 8.8 Benefit payments (252.8 ) (257.8 ) Plan amendments 3.0 Foreign currency translation 133.5 (284.2 ) Net change in benefit obligations 366.2 (382.3 ) Obligations at end of year $ 3,801.6 $ 3,435.4 The changes in the fair value of the pension plans assets for the year were as follows: 2009 2008 Fair value at beginning of year $ 2,706.9 $ 4,084.9 Change in fair value: Actual gain (loss) on plan assets 625.1 (973.2 ) Benefit payments (252.8 ) (257.8 ) Employer contributions 123.1 61.2 Participant contributions 7.4 8.8 Foreign currency translation 108.2 (213.7 ) Settlements (30.3 ) Other (3.7 ) (3.3 ) Net change in fair value of assets 577.0 (1,378.0 ) Fair value at end of year $ 3,283.9 $ 2,706.9 The funded status of the pension plans at year end was as follows: 2009 2008 Plan assets at fair value $ 3,283.9 $ 2,706.9 Projected benefit obligations 3,801.6 3,435.4 Plan assets less than projected benefit obligations (517.7 ) (728.5 ) Items not yet recognized in pension expense: Actuarial loss 1,640.6 1,748.1 Prior service credit (14.8 ) (15.6 ) 1,625.8 1,732.5 Net amount recognized $ 1,108.1 $ 1,004.0 The net amount recognized is included in the Consolidated Balance Sheets at December31, 2009 and 2008 as follows: 2009 2008 Prepaid pension $ 46.3 $ Current pension liability, included with Other accrued liabilities (9.2 ) (8.0 )

Other Expense

Other Expense
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Other Expense	15. Other Expense Other expense for the year ended December31, 2009 included the following: The Company recognized foreign currency exchange losses of $28.0 million related to the exchange of Venezuelan bolivars into U.S. dollars. See Note 8 for additional information. During the fourth quarter of 2009, the Company recorded charges of $17.3 million ($17.6 million after tax amount attributable to the Company) for the remeasurement of certain bolivar-denominated assets and liabilities held outside of Venezuela. See Note 22 for additional information. The Company recorded charges totaling $213.6 million ($182.8 million after tax amount attributable to the Company) for restructuring and asset impairment. The charges reflect the additional decisions reached in the Companys strategic review of its global manufacturing footprint. See Note 16 for additional information. During the fourth quarter of 2009, the Company recorded a charge of $180.0 million (pretax and after tax) to increase the accrual for estimated future asbestos-related costs as a result of the findings from the annual review of asbestos-related liabilities. See Note 18 for additional information. Other expense for the year ended December31, 2008 included the following: The Company recorded charges totaling $132.4 million ($110.1 million after tax amount attributable to the Company) for restructuring and asset impairment. The charges reflect the additional decisions reached in the Companys strategic review of its global manufacturing footprint. See Note 16 for additional information. During 2008, the Company also recorded an additional $0.9 million (pretax and after tax amount attributable to the Company) related to the impairment of the Companys equity investment in the South American Segments 50%-owned Caribbean affiliate. During the fourth quarter of 2008, the Company recorded a charge of $250.0 million ($248.8 million after tax) to increase the accrual for estimated future asbestos-related costs as a result of the findings from the annual review of asbestos-related liabilities. See Note 18 for additional information. Other costs and expenses for the year ended December31, 2007 included the following: In the South American Segments 50%-owned Caribbean affiliate, declining productivity and cash flows resulted in impairment of the Companys equity investment, establishment of valuation allowances against advances to the affiliate, and accrual of certain contingent obligations for total charges of $45.0 million ($43.9 million after tax amount attributable to the Company) recorded in 2007 with an additional $0.9 million (before and after tax amount attributable to the Company) recorded in the first quarter of 2008. The Company recorded charges totaling $55.3 million ($40.2 million after tax amount attributable to the Company) for restructuring and asset impairment. The charges reflect the additional decisions reached in the Companys strategic review of its global manufacturing footprint. See Note 16 for additional information. During the fourth quarter of 2007, the Company recorded a charge of $115.0 million (pretax and after tax) to incr

Restructuring Accruals

Restructuring Accruals
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Restructuring Accruals	16. Restructuring Accruals Beginning in 2007, the Company commenced a strategic review of its global profitability and manufacturing footprint. The combined 2007, 2008 and 2009 charges, amounting to $401.3 million ($333.1 million after tax amount attributable to the Company), reflect the decisions reached through December31, 2009 in the Companys strategic review of its global manufacturing footprint. The related curtailment of plant capacity and realignment of selected operations will result in an overall reduction in the Companys workforce of approximately 3,250 jobs. Amounts recorded by the Company do not include any gains that may be realized upon the ultimate sale or disposition of closed facilities. The Companys decisions to curtail selected production capacity have resulted in write downs of certain long-lived assets to the extent their carrying amounts exceeded fair value less cost to sell. The Company classified the significant assumptions used to determine the fair value of the impaired assets, which was not material, as Level 3 in the fair value hierarchy as set forth in the general accounting principles for fair value measurements. The Company also recorded liabilities for certain employee separation costs to be paid under contractual arrangements and other exit costs. 2007 During the third and fourth quarters of 2007, the Company recorded charges totaling $55.3 million ($40.2 million after tax amount attributable to the Company) for restructuring and asset impairment in Europe and North America. The curtailment of plant capacity resulted in elimination of approximately 560 jobs and a corresponding reduction in the Companys workforce. 2008 During 2008, the Company recorded charges totaling $132.4 million ($110.1 million after tax amount attributable to the Company) for restructuring and asset impairment across all segments as well as in Retained Corporate Costs and Other. The curtailment of plant capacity and realignment of selected operations resulted in elimination of approximately 1,240 jobs and a corresponding reduction in the Companys workforce. 2009 During 2009, the Company recorded charges totaling $213.6 million ($182.8 million after tax amount attributable to the Company) for restructuring and asset impairment across all segments. The curtailment of plant capacity will result in elimination of approximately 1,450 jobs and a corresponding reduction in the Companys workforce. As of December31, 2009, the Company has concluded its global manufacturing footprint review, with the final actions to be implemented during the first half of 2010. The Company expects that the majority of the remaining estimated cash expenditures related to the above charges will be paid out by the end of 2010. Selected information related to the restructuring accrual is as follows: Employee Costs Asset Impairment Other Total 2007 Charges $ 26.1 $ 22.3 $ 6.9 $ 55.3 Write-down of assets to net realizable value (22.3 ) (2.4 ) (24.7 ) Total restructuring accrual at December31, 2007 26.1 4.5 30.6 2008 charges 70.1 32.5 29.8

Additional Interest Charges fro

Additional Interest Charges from Early Extinguishment of Debt
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Additional Interest Charges from Early Extinguishment of Debt	17. Additional Interest Charges from Early Extinguishment of Debt During 2009, the Company recorded additional interest charges of $5.2 million (pretax and after tax) for note repurchase premiums and the write-off of unamortized finance fees, net of a gain from the termination of interest rate swap agreements, related to debt that was repaid prior to its maturity. During 2007, the Company recorded additional interest charges of $9.5 million ($8.8 million after tax) for note repurchase premiums and the write-off of unamortized finance fees related to debt that was repaid prior to its maturity.

Contingencies

Contingencies
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Contingencies	18. Contingencies The Company is one of a number of defendants in a substantial number of lawsuits filed in numerous state and federal courts by persons alleging bodily injury (including death) as a result of exposure to dust containing asbestos fibers. From 1948 to 1958, one of the Companys former business units commercially produced and sold approximately $40 million of a high-temperature, calcium-silicate based pipe and block insulation material containing asbestos. The Company exited the pipe and block insulation business in April1958. The traditional asbestos personal injury lawsuits and claims relating to such production and sale of asbestos material typically allege various theories of liability, including negligence, gross negligence and strict liability and seek compensatory and in some cases, punitive damages in various amounts (herein referred to as asbestos claims). The following table shows the approximate number of plaintiffs and claimants who had asbestos claims pending against the Company at the beginning of each listed year, the number of claims disposed of during that year, the years filings and the claims pending at the end of each listed year (eliminating duplicate filings): 2009 2008 2007 Pending at beginning of year 11,000 14,000 18,000 Disposed 10,000 8,000 13,000 Filed 6,000 5,000 9,000 Pending at end of year 7,000 11,000 14,000 Based on an analysis of the lawsuits pending as of December31, 2009, approximately 79% of plaintiffs either do not specify the monetary damages sought, or in the case of court filings, claim an amount sufficient to invoke the jurisdictional minimum of the trial court. Approximately 20% of plaintiffs specifically plead damages of $15 million or less, and 1% of plaintiffs specifically plead damages greater than $15 million but less than $100 million. Fewer than 1% of plaintiffs specifically plead damages $100 million or greater but less than $122 million. As indicated by the foregoing summary, current pleading practice permits considerable variation in the assertion of monetary damages. The Companys experience resolving hundreds of thousands of asbestos claims and lawsuits over an extended period, demonstrates that the monetary relief which may be alleged in a complaint bears little relevance to a claims merits or disposition value. Rather, the amount potentially recoverable is determined by such factors as the plaintiffs severity of disease, the product identification evidence against specific defendants, the defenses available to those defendants, the specific jurisdiction in which the claim is made, and the plaintiffs history of smoking or exposure to other possible disease-causative factors. In addition to the pending claims set forth above, the Company has claims-handling agreements in place with many plaintiffs counsel throughout the country. These agreements require evaluation and negotiation regarding whether particular claimants qualify under the criteria established by such agreements. The criteria for such claims include verification of a compensable illness and a reasonable probability of exposure

Segment Information

Segment Information
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Segment Information	19. Segment Information The Company has four reportable segments based on its four geographic locations: (1)Europe; (2)North America; (3)South America; (4)Asia Pacific. These four segments are aligned with the Companys internal approach to managing, reporting, and evaluating performance of its global glass operations. Certain assets and activities not directly related to one of the regions or to glass manufacturing are reported with Retained Corporate Costs and Other. These include licensing, equipment manufacturing, global engineering, and non-glass equity investments. Retained Corporate Costs and Other also includes certain headquarters administrative and facilities costs and certain incentive compensation and other benefit plan costs that are global in nature and are not allocable to the reportable segments. The Companys measure of profit for its reportable segments is Segment Operating Profit, which consists of consolidated earnings from continuing operations before interest income, interest expense, and provision for income taxes and excludes amounts related to certain items that management considers not representative of ongoing operations as well as certain retained corporate costs. The Companys management uses Segment Operating Profit, in combination with selected cash flow information, to evaluate performance and to allocate resources. Segment Operating Profit 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 specific services provided. Beginning in 2008, the Company revised its method of allocating corporate expenses. The Company decreased slightly the percentage allocation based on sales and significantly expanded the number of functions included in the allocation based on cost of services. It is not practicable to quantify the net effect of these changes on periods prior to 2008. However, the effect for 2008 was to reduce the amount of retained corporate costs by approximately $38.0 million. The information below is presented on a continuing operations basis, and therefore, the 2007 amounts exclude amounts related to the discontinued operations of the Companys former Plastics Packaging segment. See Note 21 for more information. Financial information regarding the Companys reportable segments is as follows: Net Sales: 2009 2008 2007 Europe $ 2,917.6 $ 3,497.8 $ 3,298.7 North America 2,074.3 2,209.7 2,271.3 South America 1,104.1 1,135.9 970.7 Asia Pacific 925.0 964.1 934.3 Reportable segment totals 7,021.0 7,807.5 7,475.0 Other 45.5 77.2 91.7 Net sales $ 7,066.5 $ 7,884.7 $ 7,566.7 Segment Operating Profit: 2009 2008 2007 Europe $ 332.6 $ 477.8 $ 433.0 North America 281.5 185.2 265.1 South America 250.6 331.0 254.9 Asia Pacific 131.3 162.8 154.0 Reportable segment totals 996.0 1,156.8 1,107.0 Items excluded from Segment Operating Profit: Retained corporate costs and other

Goodwill

Goodwill
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Goodwill	20. Goodwill The changes in the carrying amount of goodwill for the years ended December31, 2007, 2008 and 2009 are as follows: North Asia South America Europe Pacific America Other Total Balance as of January1, 2007 $ 721.6 $ 1,017.0 $ 502.1 $ $ 14.5 $ 2,255.2 Translation effects 25.1 115.3 54.6 195.0 Other changes (1.1 ) (13.0 ) (8.0 ) (22.1 ) Balance as of December31, 2007 745.6 1,119.3 556.7 6.5 2,428.1 Translation effects (28.8 ) (58.2 ) (123.1 ) 0.3 (209.8 ) Other changes (10.1 ) (0.7 ) (10.8 ) Balance as of December31, 2008 716.8 1,051.0 433.6 6.1 2,207.5 Translation effects 18.9 29.6 124.8 173.3 Other changes 0.2 0.2 Balance as of December31, 2009 $ 735.7 $ 1,080.6 $ 558.4 $ $ 6.3 $ 2,381.0 Goodwill for the Asia Pacific segment is net of accumulated impairment losses of $494.0 million. During the fourth quarters of 2009, 2008 and 2007, the Company completed its annual impairment testing and determined that no impairment existed.

Discontinued Operations

Discontinued Operations
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Discontinued Operations	21. Discontinued Operations On July31, 2007, the Company completed the sale of its plastics packaging business to Rexam PLC for approximately $1.825 billion in cash. In accordance with general accounting principles, the Company has presented the results of operations for the plastics packaging business in the Consolidated Results of Operations for the year ended December31, 2007 as discontinued operations. Interest expense was allocated to the discontinued operations based on debt that was required by an amendment to the Secured Credit Agreement to be repaid from the net proceeds. Amounts for 2007 have been reclassified to conform to this presentation. The following summarizes the revenues and expenses of the discontinued operations as reported in the consolidated results of operations for the period indicated: Year ended December31, 2007 Net sales $ 455.0 Manufacturing, shipping and delivery (343.5 ) Gross profit 111.5 Selling and administrative (20.7 ) Research, development and engineering (8.3 ) Interest expense (80.6 ) Other income (0.1 ) Other expense (1.2 ) Earnings before items below 0.6 Credit for income taxes 2.4 Earnings from discontinued operations 3.0 Gain on sale of discontinued operations 1,038.5 Net earnings from discontinued operations 1,041.5 Net earnings from discontinued operations attributable to noncontrolling interests (0.2 ) Net earnings from discontinued operations attributable to the Company $ 1,041.3 The 2007 gain on the sale of discontinued operations of $1,038.5 million includes charges totaling $62.1 million for debt retirement costs, consisting principally of redemption premiums and write off of unamortized fees, and a gain of $8.7 million for curtailment and settlement of pension and other postretirement benefits. The gain also includes a net provision for income taxes of $38.2 million, consisting of taxes on the gain of $445.0 million that are substantially offset by a credit of $406.8 million for the reversal of valuation allowances against existing tax loss carryforwards. The sale agreement provides for an adjustment of the selling price based on working capital levels and certain other factors. The gain on sale of discontinued operations of $6.8 million reported in 2008 relates to an adjustment of the 2007 gain on the sale of the plastics packaging business mainly related to finalizing certain tax allocations and an adjustment to the selling price in accordance with procedures set forth in the final contract.

Venezuelan Operations

Venezuelan Operations
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Venezuelan Operations	22. Venezuelan Operations Venezuelan government restrictions on transfers of cash out of the country have limited the Companys ability to immediately access cash at the governments official exchange rate, which, as of December31, 2009, had remained fixed at 2.15 bolivars to the U.S. dollar since early 2005. The Company has been able to obtain U.S. dollars at the official rate to pay for some of its key raw materials and other imports. However, in 2009, the Venezuelan government significantly slowed the process of exchanging bolivars to U.S. dollars at the official rate. As a result, the Companys cash balance in Venezuela increased as earnings accumulated. The Company has the ability to access the cash in Venezuela more quickly through a market-driven parallel exchange process which, at December31, 2009, valued the bolivar about 60% lower than the official exchange rate. During the last half of 2009, the Company entered into a series of parallel market transactions in order to exchange Venezuelan bolivars into U.S. dollars, and recognized foreign currency exchange losses of $28.0 million. The Company will continue to pursue currency exchange at official rates to pay for its approved imports and to remit earnings. However, it will also monitor conditions in Venezuela and presently intends to continue transferring cash generated in the country through parallel market transactions. Due to the government restrictions on currency exchange in Venezuela discussed above, the Company used the parallel market rate to translate the balance sheets of its Venezuelan subsidiaries as of December31, 2009. The impact of this change from the official exchange rate was an approximate 60% reduction in the reported U.S. dollar amounts for all assets and liabilities of the Companys Venezuelan subsidiaries, and a resulting $132.5 million charge recorded in the cumulative translation adjustment component of other comprehensive income and $45.9 million charge recorded against noncontrolling interests. In addition, the Company remeasured certain bolivar-denominated assets and liabilities held outside of Venezuela to the parallel market rate and recorded a charge of $17.3 million in December2009. The adoption of the parallel market rate will have an adverse impact on the Companys South American segment operating profit in future periods as most of the revenues and costs of the Companys Venezuelan operations will be translated into fewer U.S. dollars. The Companys Venezuelan operations represented approximately 40% of the South American segment operating profit for 2009, including the $28.0 million foreign exchange losses recognized by the Company from the parallel market transactions noted above. In addition, inflation in Venezuela has continued at an accelerated rate, and, beginning January1, 2010, Venezuelas economy will be considered highly inflationary. For accounting purposes, an economy is deemed to be highly inflationary when the three-year cumulative rate of inflation exceeds 100%. Under the highly-inflationary basis of accounting, the Company must adopt the U.S. dollar as the functional currency for its Venezuelan operations as of January1, 2010. Any

Financial Information for Subsi

Financial Information for Subsidiary Guarantors and Non-Guarantors
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Financial Information for Subsidiary Guarantors and Non-Guarantors	23. Financial Information for Subsidiary Guarantors and Non-Guarantors The following presents condensed consolidated financial information for the Company, segregating: (1)Owens-Illinois,Inc., the issuer of two series of senior notes and debentures (the Parent (2)the two subsidiaries which have guaranteed the senior notes and debentures on a subordinated basis (the Guarantor Subsidiaries and (3)all other subsidiaries (the Non-Guarantor Subsidiaries). The Guarantor Subsidiaries are 100% owned direct and indirect subsidiaries of the Company and their guarantees are full, unconditional and joint and several. They have no operations and function only as intermediate holding companies. Wholly-owned subsidiaries are presented on the equity basis of accounting. Certain reclassifications have been made to conform all of the financial information to the financial presentation on a consolidated basis. The principal eliminations relate to investments in subsidiaries and inter-company balances and transactions. December31, 2009 Non- Guarantor Guarantor Balance Sheet Parent Subsidiaries Subsidiaries Eliminations Consolidated Current assets: Accounts receivable $ $ $ 1,004.2 $ $ 1,004.2 Inventories 900.3 900.3 Other current assets 892.2 892.2 Total current assets 2,796.7 2,796.7 Investments in and advances to subsidiaries 2,301.4 2,023.3 (4,324.7 ) Goodwill 2,381.0 2,381.0 Other non-current assets 807.4 807.4 Total other assets 2,301.4 2,023.3 3,188.4 (4,324.7 ) 3,188.4 Property, plant and equipment, net 2,742.3 2,742.3 Total assets $ 2,301.4 $ 2,023.3 $ 8,727.4 $ (4,324.7 ) $ 8,727.4 Current liabilities : Accounts payable and accrued liabilities $ $ $ 1,507.3 $ $ 1,507.3 Current portion of asbestos liability 175.0 175.0 Short-term loans and long-term debt due within one year 28.1 352.0 (28.1 ) 352.0 Total current liabilities 203.1 1,859.3 (28.1 ) 2,034.3 Long-term debt 250.0 3,257.5 (250.0 ) 3,257.5 Asbestos-related liabilities 310.1 310.1 Other non-current liabilities 1,389.1 1,389.1 Total share owners equity of the Company 1,538.2 2,023.3 2,023.3 (4,046.6 ) 1,538.2 Noncontrolling interests 198.2 198.2 Total liabilities and share owners equity $ 2,301.4 $ 2,023.3 $ 8,727.4 $ (4,324.7 ) $ 8,727.4 December31, 2008 Non- Guarantor Guarantor Balance Sheet Parent Subsidiaries Subsidiaries Eliminations Consolidated Current assets: Accounts receivable $ $ $ 988.8 $ $ 988.8 Inventories 999.5 999.5 Other current assets 456.4 456.4 Total current assets 2,444.7 2,444.7 Investments in and advances to subsidiaries 2,035.9 1,535.9 (3,571.8 ) Goodwill 2,207.5 2,207.5 Other non-curren

Selected Quarterly Financial Da

Selected Quarterly Financial Data (unaudited)
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Selected Quarterly Financial Data (unaudited)	Selected Quarterly Financial Data (unaudited) The following tables present selected financial data by quarter for the years ended December31, 2009 and 2008: 2009 First Quarter Second Quarter Third Quarter Fourth Quarter Year to Date Net sales $ 1,519.0 $ 1,807.0 $ 1,874.6 $ 1,865.9 $ 7,066.5 Gross profit $ 296.8 $ 407.4 $ 448.7 $ 331.0 $ 1,483.9 Net earnings (loss) attributable to the Company (a) $ 45.1 $ 149.3 $ 126.7 $ (159.3 ) $ 161.8 Earnings per share of common stock (b): Basic: Net earnings $ 0.27 $ 0.89 $ 0.75 $ (0.95 ) $ 0.96 Diluted: Net earnings $ 0.27 $ 0.88 $ 0.74 $ (0.95 ) $ 0.95 (a) Amount for the first quarter includes charges of $50.4 million ($47.7 million after tax amount attributable to the Company) for restructuring and asset impairment. The effect of these charges is a reduction in earnings per share of $0.28. Amount for the second quarter includes charges totaling $10.4 million (pretax and after tax amount attributable to the Company) for the following: (1)$5.2 million for note repurchase premiums and the write-off of finance fees related to debt that was repaid prior to its maturity; and (2)$5.2 million for restructuring and asset impairment. The effect of these charges is a reduction in earnings per share of $0.06. Amount for the third quarter includes charges of $57.5 million ($36.0 million after tax amount attributable to the Company) for restructuring and asset impairment. The effect of these charges is a reduction in earnings per share of $0.21. Amount for the fourth quarter includes charges totaling $297.8 million ($291.4 million after tax amount attributable to the Company) for the following: (1)$180.0 million (pretax and after tax) to increase the accrual for estimated future asbestos-related costs; (2)$100.5 million ($93.8 million after tax amount attributable to the Company) for restructuring and asset impairment; and (3)$17.3 million ($17.6 million after tax amount attributable to the Company) for the remeasurement of certain bolivar-denominated assets and liabilities held outside of Venezuela. The effect of these charges is a reduction in earnings per share of $1.71. Amount for the fourth quarter includes a non-cash tax benefit transferred from other comprehensive income (equity) of $47.9 million. The effect of this tax benefit is an increase in earnings per share of $0.28. (b) Earnings per share are computed independently for each period presented. As such, the sums of the amounts calculated separately for each quarter do not equal the year-to-date amount. 2008 First Quarter Second Quarter Third Quarter Fourth Quarter Year to Date Net sales $ 1,960.5 $ 2,210.6 $ 2,008.6 $ 1,705.0 $ 7,884.7 Gross profit $ 456.8 $ 525.2 $ 407.3 $ 287.3 $ 1,676.6 Amounts attributable to the Company: Earnings (loss) from continuing operations (c) 174.0 227.5 7

Schedule II

Schedule II
	12 Months Ended Dec. 31, 2009 USD / shares
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (CONSOLIDATED)
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (CONSOLIDATED)	OWENS-ILLINOIS, INC. SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (CONSOLIDATED) Years ended December31, 2009, 2008, and 2007 (Millions of Dollars) Reserves deducted from assets in the balance sheets: Allowances for losses and discounts on receivables Additions Balance at Charged to Balance beginning costs and Deductions at end of of period expenses Other (Note 1) period 2009 $ 39.7 $ 1.7 $ (4.3 ) $ (0.6 ) $ 36.5 2008 $ 36.0 $ 8.1 $ (0.7 ) $ 3.7 $ 39.7 2007 $ 28.7 $ 4.1 $ 8.1 $ 4.9 $ 36.0 (1) Deductions from allowances for losses and discounts on receivables represent uncollectible notes and accounts written off.

Document and Entity Information

Document and Entity Information (USD $)
	12 Months Ended Dec. 31, 2009	Jun. 30, 2009
Document and Entity Information
Entity Registrant Name	OWENS ILLINOIS INC /DE/
Entity Central Index Key	0000812074
Document Type	10-K
Document Period End Date	2009-12-31
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float		$3,569,806,000
Entity Common Stock, Shares Outstanding	168,600,765