CONDENSED CONSOLIDATED RESULTS OF OPERATIONS (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2011	Mar. 31, 2010
Net sales	$ 1,719	$ 1,546
Manufacturing, shipping, and delivery expense	(1,386)	(1,247)
Gross profit	333	299
Selling and administrative expense	(142)	(120)
Research, development, and engineering expense	(16)	(14)
Interest expense	(76)	(56)
Interest income	3	4
Equity earnings	14	13
Royalties and net technical assistance	5	4
Other income	2	1
Other expense	(18)	(8)
Earnings from continuing operations before income taxes	105	123
Provision for income taxes	(28)	(32)
Earnings from continuing operations	77	91
Earnings (loss) from discontinued operations	(1)	3
Net earnings	76	94
Net earnings attributable to noncontrolling interests	(4)	(9)
Net earnings attributable to the Company	72	85
Amounts attributable to the Company:
Earnings from continuing operations	73	82
Earnings (loss) from discontinued operations	(1)	3
Net earnings	72	85
Comprehensive income, net of tax:
Net earnings	76	94
Foreign currency translation adjustments	74	(36)
Pension and other postretirement benefit adjustments	20	32
Change in fair value of derivative instruments	1	(6)
Total comprehensive income	171	84
Comprehensive income attributable to noncontrolling interests	(8)	(9)
Comprehensive income attributable to the Company	$ 163	$ 75

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) In Millions, unless otherwise specified	Mar. 31, 2011	Dec. 31, 2010	Mar. 31, 2010
Current assets:
Cash and cash equivalents	$ 430	$ 640	$ 496
Short-term investments, at cost which approximates market			1
Receivables, less allowances for losses and discounts ($43 at March 31, 2011, $40 at December 31, 2010, and $35 at March 31, 2010)	1,223	1,075	1,029
Inventories	1,054	946	888
Prepaid expenses	78	77	63
Assets of discontinued operations			60
Total current assets	2,785	2,738	2,537
Investments and other assets:
Equity investments	301	299	116
Repair parts inventories	154	147	128
Prepaid pension	59	54	42
Other assets	634	588	502
Goodwill	2,900	2,821	2,347
Assets of discontinued operations			34
Total other assets	4,048	3,909	3,169
Property, plant, and equipment, at cost	7,213	7,016	6,445
Less accumulated depreciation	4,070	3,909	3,779
Net property, plant, and equipment	3,143	3,107	2,666
Total assets	9,976	9,754	8,372
Current liabilities:
Short-term loans and long-term debt due within one year	372	354	281
Accounts payable	889	878	810
Other liabilities	646	677	615
Liabilities of discontinued operations			18
Total current liabilities	1,907	1,909	1,724
Long-term debt	3,991	3,924	3,185
Deferred taxes	215	203	175
Pension benefits	576	576	553
Nonpension postretirement benefits	260	259	268
Other liabilities	403	381	318
Liabilities of discontinued operations			11
Share owner's equity of the Company:
Common stock, par value $.01 per share, 1000 shares authorized, 100 shares issued
Other contributed capital	476	507	613
Retained earnings	2,712	2,640	2,616
Accumulated other comprehensive loss	(765)	(856)	(1,301)
Total share owner's equity of the Company	2,423	2,291	1,928
Noncontrolling interests	201	211	210
Total share owners' equity	2,624	2,502	2,138
Total liabilities and share owners' equity	$ 9,976	$ 9,754	$ 8,372

CONDENSED CONSOLIDATED CASH FLOWS (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2011	Mar. 31, 2010
Cash flows from operating activities:
Net earnings	$ 76	$ 94
(Earnings) loss from discontinued operations	1	(3)
Non-cash charges (credits):
Depreciation	101	89
Amortization of intangibles and other deferred items	5	6
Amortization of finance fees and debt discount	8	3
Deferred tax benefit	(4)	(1)
Restructuring	8
Other	38	49
Cash paid for restructuring activities	(4)	(19)
Change in non-current operating assets	(25)	(11)
Change in non-current liabilities	(17)	(13)
Change in components of working capital	(239)	(144)
Cash provided by (utilized in) continuing operating activities	(52)	50
Cash provided by discontinued operating activities		8
Total cash provided by (utilized in) operating activities	(52)	58
Cash flows from investing activities:
Additions to property, plant, and equipment - continuing	(73)	(96)
Acquisitions, net of cash acquired	6	(26)
Cash utilized in investing activities	(67)	(122)
Cash flows from financing activities:
Additions to long-term debt	5
Repayments of long-term debt	(10)	(4)
Decrease in short-term loans	(32)	(50)
Net receipts (payments) for hedging activity	(12)	12
Dividends paid to noncontrolling interests	(18)	(5)
Distributions to parent	(31)	(177)
Cash utilized in financing activities	(98)	(224)
Effect of exchange rate fluctuations on cash	7	(3)
Decrease in cash	(210)	(291)
Cash at beginning of period	640	812
Cash at end of period	430	521
Cash - discontinued operations		25
Cash - continuing operations	$ 430	$ 496

Debt

3 Months Ended

Mar. 31, 2011

Debt

Debt

2. Debt

The following table summarizes the long-term debt of the Company:

	March 31,		December 31,		March 31,
	2011		2010		2010
Secured Credit Agreement:
Revolving Credit Facility:
Revolving Loans	$	—	$	—	$	—
Term Loans:
Term Loan A (90 million AUD at March 31, 2011)	93		92		146
Term Loan B	190		190		190
Term Loan C (111 million CAD at March 31, 2011)	114		111		109
Term Loan D (€190 million at March 31, 2011)	268		253		254
Senior Notes:
8.25%, due 2013					460
6.75%, due 2014	400		400		400
6.75%, due 2014 (€225 million)	318		300		301
3.00%, Exchangeable, due 2015	611		607
7.375%, due 2016	586		585		583
6.875%, due 2017 (€300 million)	425		401		402
6.75%, due 2020 (€500 million)	708		668
Payable to OI Inc.	250		250		278
Other	163		164		110
Total long-term debt	4,126		4,021		3,233
Less amounts due within one year	135		97		48
Long-term debt	$	3,991	$	3,924	$	3,185

On June 14, 2006, the Company’s subsidiary borrowers entered into the Secured Credit Agreement (the “Agreement”). At March 31, 2011, the Agreement included a $900 million revolving credit facility, a 90 million Australian dollar term loan, and a 111 million Canadian dollar term loan, each of which has a final maturity date of June 15, 2012. It also included a $190 million term loan and a €190 million term loan, each of which has a final maturity date of June 14, 2013. At March 31, 2011, the Company’s subsidiary borrowers had unused credit of $728 million available under the Agreement.

The weighted average interest rate on borrowings outstanding under the Agreement at March 31, 2011 was 2.68%.

During October 2006, the Company entered into a €250 million European accounts receivable securitization program. The program extends through October 2011, subject to annual renewal of backup credit lines.

Information related to the Company’s accounts receivable securitization programs is as follows:

	March 31,			December 31,			March 31,
	2011			2010			2010

Balance (included in short-term loans)	$	222		$	247		$	229

Weighted average interest rate	2.85		%	2.40		%	2.57		%

The carrying amounts reported for the accounts receivable securitization programs, and certain long-term debt obligations subject to frequently redetermined interest rates, approximate fair value. Fair values for the Company’s significant fixed rate debt obligations are generally based on published market quotations.

Fair values at March 31, 2011 of the Company’s significant fixed rate debt obligations are as follows:

	Principal Amount		Indicated	Fair Value
	(millions of		Market	(millions of
	dollars)		Price	dollars)
Senior Notes:
6.75%, due 2014	$	400	102.30	$	409
6.75%, due 2014 (€225 million)	318		102.25	325
3.00%, Exchangeable, due 2015	690		101.42	700
7.375%, due 2016	600		110.00	660
6.875%, due 2017 (€300 million)	425		102.63	436
6.75%, due 2020 (€500 million)	708		101.51	719

Share Owners' Equity

3 Months Ended

Mar. 31, 2011

Share Owners' Equity

Share Owners' Equity

4. Share Owners’ Equity

The activity in share owners’ equity for the three months ended March 31, 2011 and 2010 is as follows:

	Share Owner’s Equity of the Company
	Other Contributed Capital			Retained Earnings		Accumulated Other Comprehensive Loss			Non- controlling Interests			Total Share Owners’ Equity

Balance on January 1, 2011	$	507		$	2,640	$	(856	)	$	211		$	2,502
Net distribution to parent	(31		)									(31		)
Comprehensive income:
Net earnings				72					4			76
Foreign currency translation adjustments						70			4			74
Pension and other postretirement benefit adjustments, net of tax						20						20
Change in fair value of derivative instruments, net of tax						1						1
Dividends paid to noncontrolling interests on subsidiary common stock									(18		)	(18		)
Balance on March 31, 2011	$	476		$	2,712	$	(765	)	$	201		$	2,624

	Share Owner’s Equity of the Company
	Other Contributed Capital			Retained Earnings		Accumulated Other Comprehensive Loss			Non- controlling Interests			Total Share Owners’ Equity

Balance on January 1, 2010	$	783		$	2,531	$	(1,291	)	$	198		$	2,221
Net distribution to parent	(170		)									(170		)
Comprehensive income:
Net earnings				85					9			94
Foreign currency translation adjustments						(36		)				(36		)
Pension and other postretirement benefit adjustments, net of tax						32						32
Change in fair value of derivative instruments, net of tax						(6		)				(6		)
Nonconrolling interests’ share of acquisition									8			8
Dividends paid to noncontrolling interests on subsidiary common stock									(5		)	(5		)
Balance on March 31, 2010	$	613		$	2,616	$	(1,301	)	$	210		$	2,138

- Definition

Disclosures related to accounts comprising shareholders' equity, including other comprehensive income. Includes: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables; effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References+ Details

Contingencies

3 Months Ended

Mar. 31, 2011

Contingencies

Contingencies

6. Contingencies

OI Inc. is a defendant in numerous lawsuits alleging bodily injury and death as a result of exposure to asbestos dust. From 1948 to 1958, one of OI Inc.’s former business units commercially produced and sold approximately $40 million of a high-temperature, calcium-silicate based pipe and block insulation material containing asbestos. OI Inc. exited the pipe and block insulation business in April 1958. The typical asbestos personal injury lawsuit alleges 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”).

As of March 31, 2011, OI Inc. has determined that it is a named defendant in asbestos lawsuits and claims involving approximately 5,900 plaintiffs and claimants. Based on an analysis of the lawsuits pending as of December 31, 2010, approximately 76% 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 22% of plaintiffs specifically plead damages of $15 million or less, and 2% 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. OI Inc.’s experience resolving hundreds of thousands of asbestos claims and lawsuits over an extended period demonstrates that the monetary relief that may be alleged in a complaint bears little relevance to a claim’s merits or disposition value. Rather, the amount potentially recoverable is determined by such factors as the severity of the plaintiff’s asbestos disease, the product identification evidence against OI Inc. and other defendants, the defenses available to OI Inc. and other defendants, the specific jurisdiction in which the claim is made, and the plaintiff’s medical history and exposure to other disease-causing agents.

In addition to the pending claims set forth above, OI Inc. 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 to a product manufactured by OI Inc.’s former business unit during its manufacturing period ending in 1958. Some plaintiffs’ counsel have historically withheld claims under these agreements for later presentation while focusing their attention on active litigation in the tort system. OI Inc. believes that as of March 31, 2011 there are approximately 550 claims against other defendants which are likely to be asserted some time in the future against OI Inc. These claims are not included in the pending “lawsuits and claims” totals set forth above.

OI Inc. is also a defendant in other asbestos-related lawsuits or claims involving maritime workers, medical monitoring claimants, co-defendants and property damage claimants. Based upon its past experience, the OI Inc. believes that these categories of lawsuits and claims will not involve any material liability and they are not included in the above description of pending matters or in the following description of disposed matters.

Since receiving its first asbestos claim, OI Inc. as of March 31, 2011, has disposed of the asbestos claims of approximately 383,000 plaintiffs and claimants at an average indemnity payment per claim of approximately $7,900. Certain of these dispositions have included deferred amounts payable over a number of years. Deferred amounts payable totaled approximately $26 million at March 31, 2011 ($26 million at December 31, 2010) and are included in the foregoing average indemnity payment per claim. OI Inc.’s asbestos indemnity payments have varied on a per claim basis, and are expected to continue to vary considerably over time. As discussed above, a part of OI Inc.’s objective is to achieve, where possible, resolution of asbestos claims pursuant to claims-handling agreements. Failure of claimants to meet certain medical and product exposure criteria in OI Inc.’s administrative claims handling agreements has generally reduced the number of marginal or suspect claims that would otherwise have been received. In addition, certain courts and legislatures have reduced or eliminated the number of marginal or suspect claims that OI Inc. otherwise would have received. These developments generally have had the effect of increasing the OI Inc.’s per-claim average indemnity payment.

OI Inc. believes that its ultimate asbestos-related liability (i.e., its indemnity payments or other claim disposition costs plus related legal fees) cannot reasonably be estimated. Beginning with the initial liability of $975 million established in 1993, OI Inc. has accrued a total of approximately $3.82 billion through 2010, before insurance recoveries, for its asbestos-related liability. OI Inc.’s ability to reasonably estimate its liability has been significantly affected by, among other factors, the volatility of asbestos-related litigation in the United States, the significant number of co-defendants that have filed for bankruptcy, the magnitude and timing of co-defendant bankruptcy trust payments, the inherent uncertainty of future disease incidence and claiming patterns, the expanding list of non-traditional defendants that have been sued in this litigation, and the use of mass litigation screenings to generate large numbers of claims by parties who allege exposure to asbestos dust but have no present physical asbestos impairment.

OI Inc. has continued to monitor trends that may affect its ultimate liability and has continued to analyze the developments and variables affecting or likely to affect the resolution of pending and future asbestos claims against OI Inc. The material components of OI Inc.’s accrued liability are based on amounts determined by OI Inc. in connection with its annual comprehensive review and consist of the following estimates, to the extent it is probable that such liabilities have been incurred and can be reasonably estimated: (i) the liability for asbestos claims already asserted against OI Inc.; (ii) the liability for preexisting but unasserted asbestos claims for prior periods arising under its administrative claims-handling agreements with various plaintiffs’ counsel; (iii) the liability for asbestos claims not yet asserted against OI Inc., but which OI Inc. believes will be asserted in the next several years; and (iv) the legal defense costs likely to be incurred in connection with the foregoing types of claims.

The significant assumptions underlying the material components of OI Inc.’s accrual are:

a)		the extent to which settlements are limited to claimants who were exposed to OI Inc.’s asbestos-containing insulation prior to its exit from that business in 1958;

b)		the extent to which claims are resolved under OI Inc.’s administrative claims agreements or on terms comparable to those set forth in those agreements;

c)		the extent of decrease or increase in the incidence of serious disease cases and claiming patterns for such cases;

d)		the extent to which OI Inc. is able to defend itself successfully at trial;

e)		the extent to which courts and legislatures eliminate, reduce or permit the diversion of financial resources for unimpaired claimants;

f)		the number and timing of additional co-defendant bankruptcies;

g)		the extent to which bankruptcy trusts direct resources to resolve claims that are also presented to OI Inc. and the timing of the payments made by the bankruptcy trusts; and

h)		the extent to which co-defendants with substantial resources and assets continue to participate significantly in the resolution of future asbestos lawsuits and claims.

As noted above, OI Inc. conducts a comprehensive review of its asbestos-related liabilities and costs annually in connection with finalizing and reporting its annual results of operations, unless significant changes in trends or new developments warrant an earlier review. If the results of an annual comprehensive review indicate that the existing amount of the accrued liability is insufficient to cover its estimated future asbestos-related costs, then OI Inc. will record an appropriate charge to increase the accrued liability. OI Inc. believes that a reasonable estimation of the probable amount of the liability for claims not yet asserted against OI Inc. is not possible beyond a period of several years. Therefore, while the results of future annual comprehensive reviews cannot be determined, OI Inc. expects the addition of one year to the estimation period will result in an annual charge.

On March 11, 2011, OI Inc. received a verdict in an asbestos case in which conspiracy claims had been asserted against OI Inc. Of the total nearly $90 million awarded by the jury against the four defendants in the case, almost $10 million in compensatory damages were assessed against all four defendants, and $40 million in punitive damages were assessed against OI Inc.

OI Inc. continues to deny the conspiracy allegations in this case and will vigorously challenge this verdict, if necessary, in the appellate courts, and, therefore, has made no change to its asbestos-related liability as of March 31, 2011. While OI Inc. cannot predict the ultimate outcome of this lawsuit, OI Inc. and other conspiracy defendants have successfully challenged jury verdicts in similar cases.

Other litigation is pending against the Company, in many cases involving ordinary and routine claims incidental to the business of the Company and in others presenting allegations that are non-routine and involve compensatory, punitive or treble damage claims as well as other types of relief. The Company records a liability for such matters when it is both probable that the liability has been incurred and the amount of the liability can be reasonably estimated.

Recorded amounts are reviewed and adjusted to reflect changes in the factors upon which the estimates are based including additional information, negotiations, settlements, and other events.

The ultimate legal and financial liability of OI Inc. with respect to the lawsuits and proceedings referred to above, in addition to other pending litigation, cannot reasonably be estimated. OI Inc.’s reported results of operations for 2010 were materially affected by the $170 million (pretax and after tax) fourth quarter charge for asbestos-related costs and asbestos-related payments continue to be substantial. Any future additional charge would likewise materially affect OI Inc.’s results of operations for the period in which it is recorded. Also, the continued use of significant amounts of cash for asbestos-related costs has affected and may continue to affect the Company’s and OI Inc.’s cost of borrowing and its ability to pursue global or domestic acquisitions. However, the Company believes that its operating cash flows and other sources of liquidity will be sufficient to pay its obligations for asbestos-related costs and to fund its working capital and capital expenditure requirements on a short-term and long-term basis.

Segment Information

3 Months Ended

Mar. 31, 2011

Segment Information

Segment Information

7. 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 Company’s 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 Company’s 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 Company’s management uses Segment Operating Profit, in combination with net sales and 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.

Financial information for the three-month periods ended March 31, 2011 and 2010 regarding the Company’s reportable segments is as follows:

	2011		2010
Net sales:
Europe	$	698	$	668
North America	463		444
South America	269		175
Asia Pacific	262		250

Reportable segment totals	1,692		1,537
Other	27		9
Net sales	$	1,719	$	1,546

	2011			2010
Segment Operating Profit:
Europe	$	71		$	56
North America	59			63
South America	45			37
Asia Pacific	24			37
Reportable segment totals	199			193

Items excluded from Segment Operating Profit:
Retained corporate costs and other	(13		)	(18		)
Restructuring	(8		)
Interest income	3			4
Interest expense	(76		)	(56		)
Earnings from continuing operations before income taxes	$	105		$	123

Financial information regarding the Company’s total assets is as follows:

	March 31,		December 31,		March 31,
	2011		2010		2010
Total assets:
Europe	$	3,842	$	3,618	$	3,618
North America	1,991		1,961		1,959
South America	1,678		1,680		780
Asia Pacific	2,037		2,047		1,684

Reportable segment totals	9,548		9,306		8,041
Other	428		448		331
Consolidated totals	$	9,976	$	9,754	$	8,372

Restructuring Accruals

3 Months Ended

Mar. 31, 2011

Restructuring Accruals

Restructuring Accruals

9. Restructuring Accruals

Beginning in 2007, the Company commenced a strategic review of its global profitability and manufacturing footprint. The Company concluded its global review as of December 31, 2009, with the final actions implemented in the first half of 2010. The combined 2007, 2008, 2009 and 2010 charges, amounting to $407 million ($340 million after tax amount attributable to the Company), reflect the decisions reached by the Company in its strategic review of its global manufacturing footprint. The related curtailment of plant capacity and realignment of selected operations have resulted in an overall reduction in the Company’s 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.

Selected information related to the restructuring accrual for the strategic footprint review for the three months ended March 31, 2011 and 2010 is as follows:

	Employee Costs			Other			Total

Balance at January 1, 2011	$	27		$	25		$	52
Net cash paid, principally severance and related benefits	(2		)	(2		)	(4		)
Other, principally foreign exchange translation	2						2
Balance at March 31, 2011	$	27		$	23		$	50

Balance at January 1, 2010	$	93		$	26		$	119
Net cash paid, principally severance and related benefits	(18		)	(1		)	(19		)
Other, principally foreign exchange translation	(1		)				(1		)
Balance at March 31, 2010	$	74		$	25		$	99

The Company continually reviews its manufacturing footprint and may close various operations due to plant efficiencies, integration of acquisitions, and other market factors. The restructuring accruals related to these types of actions taken by the Company not related to the strategic review of manufacturing operations discussed above are $35 million as of March 31, 2011, $27 million at December 31, 2010, and $27 million at March 31, 2010. The Company recorded restructuring charges of $8 million in the first quarter of 2011 for employee costs related to a plant closing and the related relocation of business to other facilities in its Asia Pacific segment. There were no other material charges or cash payments in 2011 or 2010 related to these actions.

The Company’s 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 or 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.

Derivative Instruments

3 Months Ended

Mar. 31, 2011

Derivative Instruments

Derivative Instruments

10. 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 uses an income approach to valuing these contracts. Interest rate yield curves, natural gas forward rates, and foreign exchange rates are the significant inputs into the valuation models. These inputs are observable in active markets over the terms of the instruments the Company holds, and accordingly, the Company classifies its derivative assets and liabilities as Level 2 in the hierarchy. The Company also evaluates counterparty risk in determining fair values.

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 $700 million that were to mature in 2010 and 2013. 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 Company’s 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 extinguished $222 million of its intercompany debt with OI Inc. and terminated the related interest rate swap agreements for proceeds of $5 million. The Company recognized $4 million of the proceeds as a reduction to interest expense upon the termination of the interest rate swap agreements, while the remaining proceeds were recognized as a reduction to interest expense over the remaining life of the outstanding intercompany debt, which matured in May 2010.

During the second quarter of 2009, the Company’s interest rate swaps related to the $450 million senior notes due 2013 were terminated. The Company received proceeds of $12 million which were recorded as an adjustment to debt and were to be recognized as a reduction to interest expense over the remaining life of the senior notes due 2013. During the second quarter of 2010, a subsidiary of the Company redeemed the senior notes due 2013. Accordingly, the remaining unamortized proceeds from the terminated interest rate swaps were recognized in the second quarter as a reduction to interest expense.

The amortization of the proceeds from the terminated interest rate swaps reduced interest expense $1 million for the three months ended March 31, 2010.

Commodity Futures Contracts Designated as Cash Flow Hedges

In North America, the Company enters into commodity futures contracts related to forecasted natural gas requirements, the objectives of which are to limit the effects of fluctuations in the future market price paid for natural gas and the related volatility in cash flows. The Company continually evaluates the natural gas market and related price risk and periodically enters into commodity futures contracts in order to hedge a portion of its usage requirements. The majority of the sales volume in North America is tied to customer contracts that contain provisions that pass the price of natural gas to the customer. In certain of these contracts, the customer has the option of fixing the natural gas price component for a specified period of time. At March 31, 2011 and 2010, the Company had entered into commodity futures contracts covering approximately 8,000,000 MM BTUs and 5,200,000 MM BTUs, respectively, primarily related to customer requests to lock the price of natural gas.

The Company accounts for the above futures contracts as cash flow hedges at March 31, 2011 and recognizes them on the balance sheet at fair value. The effective portion of changes in the fair value of a derivative that is designated as, and meets the required criteria for, a cash flow hedge is recorded in the Accumulated Other Comprehensive Income component of share owners’ equity (“OCI”) and reclassified into earnings in the same period or periods during which the underlying hedged item affects earnings. At March 31, 2011 and 2010, an unrecognized loss of $2 million and $7 million, respectively, related to the commodity futures contracts was included in Accumulated OCI, and will be reclassified into earnings over the next twelve to twenty-four months. Any material portion of the change in the fair value of a derivative designated as a cash flow hedge that is deemed to be ineffective is recognized in current earnings. The ineffectiveness related to these natural gas hedges for the three months ended March 31, 2011 and 2010 was not material.

The effect of the commodity futures contracts on the results of operations for the three months ended March 31, 2011 and 2010 is as follows:

						Amount of Loss
						Reclassified from
Amount of Loss						Accumulated OCI into
Recognized in OCI on						Income (reported in
Commodity Futures Contracts						manufacturing, shipping, and
(Effective Portion)						delivery) (Effective Portion)
2011			2010			2011			2010

$	(1	)	$	(7	)	$	(2	)	$	(1)

Senior Notes Designated as Net Investment Hedge

During December 2004, a U.S. subsidiary of the Company issued senior notes totaling €225 million. These notes were designated by the Company’s subsidiary as a hedge of a portion of its net investment in a non-U.S. subsidiary with a Euro functional currency. Because the amount of the senior notes matches the hedged portion of the net investment, there is no hedge ineffectiveness. Accordingly, the Company recorded the impact of changes in the foreign currency exchange rate on the Euro-denominated notes in OCI. The amount recorded in OCI will be reclassified into earnings when the Company sells or liquidates its net investment in the non-U.S. subsidiary.

The effect of the net investment hedge on the results of operations for the three months ended March 31, 2011 and 2010 is as follows:

						Amount of Gain (Loss)
Amount of Gain (Loss)					Location of Gain (Loss)	Reclassified from Accumulated
Recognized in OCI					Reclassified from Accumulated	OCI into Income
2011			2010		OCI into Income	2011		2010

$	(18	)	$	24	N/A	$	—	$	—

Forward Exchange Contracts not Designated as Hedging Instruments

The Company’s subsidiaries may enter into short-term forward exchange or option agreements to purchase foreign currencies at set rates in the future. These agreements may be used to offset the foreign currency risk for receivables and payables, including intercompany receivables and payables, not denominated in, or indexed to, their functional currencies. Subsidiaries may also use forward exchange agreements to limit exposure to fluctuations in foreign currency exchange rates for significant planned purchases of fixed assets or commodities that are denominated in currencies other than the subsidiaries’ functional currency. The Company records these short-term forward exchange agreements on the balance sheet at fair value and changes in the fair value are recognized in current earnings.

At March 31, 2011 and 2010, various subsidiaries of the Company had outstanding forward exchange and option agreements denominated in various currencies covering the equivalent of approximately $881 million and $590 million, respectively, related primarily to intercompany transactions and loans.

The effect of the forward exchange contracts on the results of operations for the three months ended March 31, 2011 and 2010 is as follows:

	Amount of Gain (Loss)
Location of Gain (Loss)	Recognized in Income on
Recognized in Income on	Forward Exchange Contracts
Forward Exchange Contracts	2011			2010

Other expense	$	(7	)	$	23

Balance Sheet Classification

The Company records the fair values of derivative financial instruments on the balance sheet as follows: (a) receivables if the instrument has a positive fair value and maturity within one year, (b) deposits, receivables, and other assets if the instrument has a positive fair value and maturity after one year, (c) other accrued liabilities or other liabilities (current) if the instrument has a negative fair value and maturity within one year, and (d) other liabilities if the instrument has a negative fair value and maturity after one year. The following table shows the amount and classification (as noted above) of the Company’s derivatives:

	Balance	Fair Value
	Sheet Location	March 31, 2011		December 31, 2010		March 31, 2010

Asset Derivatives:
Derivatives not designated as hedging instruments:
Foreign exchange contracts	a	$	6	$	5	$	16
Foreign exchange contracts	b	4		2
Foreign exchange contracts	c	1		1
Total derivatives not designated as hedging instruments:		11		8		16
Total asset derivatives		$	11	$	8	$	16

Liability Derivatives:
Derivatives designated as hedging instruments:
Commodity futures contracts	c	$	2	$	3	$	7

Derivatives not designated as hedging instruments:
Foreign exchange contracts	c	15		21		2
Total liability derivatives		$	17	$	24	$	9

Pensions Benefit Plans and Other Postretirement Benefits

3 Months Ended

Mar. 31, 2011

Pensions Benefit Plans and Other Postretirement Benefits

Pensions Benefit Plans and Other Postretirement Benefits

11. Pensions Benefit Plans and Other Postretirement Benefits

The components of the net periodic pension cost for the three months ended March 31, 2011 and 2010 are as follows:

	U.S.						Non-U.S.
	2011			2010			2011			2010
Service cost	$	7		$	6		$	5		$	5
Interest cost	31			33			21			20
Expected asset return	(47		)	(48		)	(21		)	(20		)

Amortization:
Actuarial loss	21			18			6			5

Net amortization	21			18			6			5

Net periodic pension cost	$	12		$	9		$	11		$	10

The components of the net postretirement benefit cost for the three months ended March 31, 2011 and 2010 are as follows:

	U.S.						Non-U.S.
	2011			2010			2011		2010
Service cost	$	—		$	—		$	—	$	1
Interest cost	3			3			1		1

Amortization:
Prior service credit	(1		)	(1		)
Actuarial loss	1			1

Net amortization	—			—			—		—

Net postretirement benefit cost	$	3		$	3		$	1	$	2

- Definition

Description containing the entire pension and other postretirement benefits disclosure as a single block of text.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 158

-Paragraph 7, 21, 22

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5, 6, 7, 8

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 8

-Subparagraph m

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 106

-Paragraph 518

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 87

-Paragraph 264

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph b

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph a

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph h

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph q

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name FASB Staff Position (FSP)

-Number FAS106-2

-Paragraph 20, 21, 22

Reference 11: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Emerging Issues Task Force (EITF)

-Number 03-2

-Paragraph 8

Reference 12: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Principles Board Opinion (APB)

-Number 30

-Paragraph 26

Reference 13: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Implementation Guide (Q and A)

-Number FAS88

-Paragraph 63

+ Details

Discontinued Operations

3 Months Ended

Mar. 31, 2011

Discontinued Operations

Discontinued Operations

12. Discontinued Operations

On October 26, 2010, the Venezuelan government, through Presidential Decree No. 7.751, expropriated the assets of Owens-Illinois de Venezuela and Fabrica de Vidrios Los Andes, C.A., two of the Company’s subsidiaries in that country, which in effect constituted a taking of the going concerns of those companies. Shortly after the issuance of the decree, the Venezuelan government installed temporary administrative boards to control the expropriated assets.

Since the issuance of the decree, the Company has cooperated with the Venezuelan government, as it is compelled to do under Venezuelan law, to provide for an orderly transition while ensuring the safety and well-being of the employees and the integrity of the production facilities. The Company is also engaged in negotiations with the Venezuelan government in relation to certain aspects of the expropriation, including the compensation payable by the government as a result of its expropriation. The Company reserves and will continue to reserve the right to seek and obtain just compensation, representing the market value of its investment in Venezuela, in exchange for the expropriated assets pursuant to, as appropriate, applicable domestic and/or international law. The Company is unable at this stage to predict the amount, or timing of receipt, of compensation it will ultimately receive.

The Company considered the disposal of these assets to be complete as of December 31, 2010. As a result, and in accordance with generally accepted accounting principles, the Company has presented the results of operations for its Venezuelan subsidiaries in the Consolidated Results of Operations for the three months ended March 31, 2010 as discontinued operations. At March 31, 2010, the assets and liabilities of the Venezuelan operations are presented in the Consolidated Balance Sheets as the assets and liabilities of discontinued operations.

The following summarizes the revenues and expenses of the Venezuelan operations reported as discontinued operations in the Consolidated Results of Operations for the three months ended March 31, 2010:

Net sales	$	36
Manufacturing, shipping, and delivery	(25		)
Gross profit	11

Selling and administrative expense	(1		)
Other expense	(5		)

Earnings from discontinued operations before income taxes	5
Provision for income taxes	(2		)
Net earnings from discontinued operations	$	3

The loss from discontinued operations of $1 million for the three months ended March 31, 2011 consisted primarily of legal fees related to the ongoing negotiations with the Venezuelan government.

The net assets of the Company’s Venezuelan operations were written-off as of December 31, 2010 as a result of the deconsolidation of the subsidiaries due to the loss of control. The type or amount of compensation the Company may receive from the Venezuelan government is uncertain and thus, will be recorded as a gain from discontinued operations when received. The cumulative currency translation losses relate to the devaluation of the Venezuelan bolivar in prior years and were written-off because the expropriation was a substantially complete liquidation of the Company’s operations in Venezuela.

The condensed consolidated balance sheet at March 31, 2010 included the following assets and liabilities related to the discontinued operations of the Company’s Venezuelan subsidiaries:

Assets:
Cash	$	25
Accounts receivable	19
Inventories	14
Prepaid expenses	2

Total current assets	60

Other long-term assets	4
Net property, plant, and equipment	30

Total assets	$	94

Liabilities:
Accounts payable and other current liabilities	$	18
Other long-term liabilities	11

Total liabilities	$	29

Financial Information for Subsidiary Guarantors and Non-Guarantors

3 Months Ended

Mar. 31, 2011

Financial Information for Subsidiary Guarantors and Non-Guarantors

Financial Information for Subsidiary Guarantors and Non-Guarantors

13. Financial Information for Subsidiary Guarantors and Non-Guarantors

The following presents condensed consolidating financial information for the Company, segregating: (1) Owens-Illinois Group, Inc. (the “Parent”); (2) Owens-Brockway Glass Container Inc. (the “Issuer”); (3) those domestic subsidiaries that guarantee the 6.75% senior notes, 6.75% Euro senior notes, 3.00% exchangeable notes and 7.375% senior notes of the Issuer (the “Guarantor Subsidiaries”); and (4) all other subsidiaries (the “Non-Guarantor Subsidiaries”). The Guarantor Subsidiaries are 100% owned direct and indirect subsidiaries of the Parent and their guarantees are full, unconditional and joint and several. The Parent is also a guarantor, and its guarantee is full, unconditional and joint and several.

100% owned subsidiaries of the Parent and of the Issuer 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 intercompany balances and transactions.

	March 31, 2011
								Non-
					Guarantor			Guarantor
	Parent		Issuer		Subsidiaries			Subsidiaries		Eliminations			Consolidated
Balance Sheet

Current assets:
Accounts receivable	$	—	$	129	$	(7	)	$	1,101				$	1,223
Inventories			120					935		(1		)	1,054
Other current assets			21		166			321					508

Total current assets	—		270		159			2,357		(1		)	2,785

Investments in and advances to subsidiaries	2,673		3,904		(224		)			(6,353		)	—

Goodwill			561		10			2,329					2,900

Other non-current assets			150		124			875		(1		)	1,148

Total other assets	2,673		4,615		(90		)	3,204		(6,354		)	4,048

Property, plant and equipment, net			653		42			2,448					3,143

Total assets	$	2,673	$	5,538	$	111		$	8,009	$	(6,355	)	$	9,976

Current liabilities :
Accounts payable and accrued liabilities	$	—	$	303	$	41		$	1,195	$	(4	)	$	1,535
Short-term loans and long-term debt due within one year					1			371					372

Total current liabilities	—		303		42			1,566		(4		)	1,907

Long-term debt	250		2,105		15			1,621					3,991
Other non-current liabilities			98		413			945		(2		)	1,454
Investments by and advances from parent			3,032		(359		)	3,676		(6,349		)	—
Total share owner’s equity of the Company	2,423												2,423
Noncontrolling interests								201					201

Total liabilities and share owners’ equity	$	2,673	$	5,538	$	111		$	8,009	$	(6,355	)	$	9,976

	December 31, 2010
								Non-
					Guarantor			Guarantor
	Parent		Issuer		Subsidiaries			Subsidiaries		Eliminations			Consolidated

Balance Sheet

Current assets:
Accounts receivable	$	—	$	81	$	(8	)	$	1,002	$	—		$	1,075
Inventories			124					822					946
Other current assets			38		223			457		(1		)	717

Total current assets	—		243		215			2,281		(1		)	2,738

Investments in and advances to subsidiaries	2,541		3,739		(246		)			(6,034		)	—

Goodwill			561		10			2,251		(1		)	2,821

Other non-current assets			151		114			823					1,088

Total other assets	2,541		4,451		(123		)	3,074		(6,035		)	3,909

Property, plant and equipment, net			664		42			2,399		2			3,107

Total assets	$	2,541	$	5,358	$	135		$	7,754	$	(6,034	)	$	9,754

Current liabilities :
Accounts payable and accrued liabilities	$	—	$	314	$	46		$	1,195	$	—		$	1,555
Short-term loans and long-term debt due within one year					1			353					354

Total current liabilities	—		314		47			1,548		—			1,909

Long-term debt	250		2,082		16			1,577		(1		)	3,924
Other non-current liabilities			75		419			926		(1		)	1,419
Investments by and advances from parent			2,887		(347		)	3,492		(6,032		)	—
Total share owner’s equity of the Company	2,291												2,291
Noncontrolling interests								211					211

Total liabilities and share owners’ equity	$	2,541	$	5,358	$	135		$	7,754	$	(6,034	)	$	9,754

	March 31, 2010
								Non-
					Guarantor			Guarantor
	Parent		Issuer		Subsidiaries			Subsidiaries		Eliminations			Consolidated
Balance Sheet

Current assets:
Accounts receivable	$	—	$	104	$	72		$	853	$	—		$	1,029
Inventories			154		1			734		(1		)	888
Other current assets			59		45			456					560
Assets of discontinued operations								60					60

Total current assets	—		317		118			2,103		(1		)	2,537

Investments in and advances to subsidiaries	2,206		3,510		(316		)			(5,400		)	—
Goodwill			561		9			1,777					2,347
Other non-current assets			140		96			549		3			788
Assets of discontinued operations								34					34

Total other assets	2,206		4,211		(211		)	2,360		(5,397		)	3,169

Property, plant and equipment, net			606		41			2,019					2,666
Total assets	$	2,206	$	5,134	$	(52	)	$	6,482	$	(5,398	)	$	8,372

Current liabilities :
Accounts payable and accrued liabilities	$	—	$	384	$	28		$	1,012	$	1		$	1,425
Short-term loans and long-term debt due within one year	28							253					281
Liabilities of discontinued operations								18					18

Total current liabilities	28		384		28			1,283		1			1,724

Long-term debt	250		1,933		18			984					3,185
Other non-current liabilities			66		447			801					1,314
Liabilities of discontinued operations								11					11
Investments by and advances from parent			2,751		(545		)	3,193		(5,399		)	—
Total share owner’s equity of the Company	1,928												1,928
Noncontrolling interests								210					210

Total liabilities and share owners’ equity	$	2,206	$	5,134	$	(52	)	$	6,482	$	(5,398	)	$	8,372

	Three months ended March 31, 2011
										Non-
							Guarantor			Guarantor
	Parent			Issuer			Subsidiaries			Subsidiaries			Eliminations			Consolidated

Results of Operations

Net sales	$	—		$	449		$	—		$	1,296		$	(26	)	$	1,719
Manufacturing, shipping, and delivery				(374		)				(1,110		)	98			(1,386		)

Gross profit	—			75			—			186			72			333

Research, engineering, selling, administrative, and other				(40		)	(17		)	(120		)	1			(176		)
Net intercompany interest	5			—			(4		)	(1		)				—
Other interest expense	(5		)	(36		)	(1		)	(34		)				(76		)
Interest income										3						3
Equity earnings from subsidiaries	72			22			(7		)				(87		)	—
Other equity earnings				2			7			4			1			14
Other revenue				76						2			(71		)	7
Earnings (loss) before income taxes	72			99			(22		)	40			(84		)	105
Provision for income taxes				(4		)	(4		)	(20		)				(28		)
Earnings (loss) from continuing operations	72			95			(26		)	20			(84		)	77
Loss from discontinued operations							(1		)							(1		)
Net earnings (loss)	72			95			(27		)	20			(84		)	76
Net earnings attributable to noncontrolling interest										(4		)				(4		)

Net earnings (loss) attributable to the Company	$	72		$	95		$	(27	)	$	16		$	(84	)	$	72

	Three months ended March 31, 2010
										Non-
							Guarantor			Guarantor
	Parent			Issuer			Subsidiaries			Subsidiaries			Eliminations			Consolidated

Results of Operations

Net sales	$	—		$	420		$	—		$	1,151		$	(25	)	$	1,546
Manufacturing, shipping, and delivery				(348		)	(1		)	(935		)	37			(1,247		)

Gross profit	—			72			(1		)	216			12			299

Research, engineering, selling, administrative, and other				(38		)	(16		)	(88		)				(142		)
Net intercompany interest	6			(13		)	8			(1		)				—
Other interest expense	(6		)	(34		)				(16		)				(56		)
Interest income										4						4
Equity earnings from subsidiaries	85			114			(30		)				(169		)	—
Other equity earnings				4			6			3						13
Other revenue				15						1			(11		)	5
Earnings (loss) before income taxes	85			120			(33		)	119			(168		)	123
Provision for income taxes				(3		)				(29		)				(32		)
Earnings (loss) from continuing operations	85			117			(33		)	90			(168		)	91
Earnings from discontinued operations										3						3
Net earnings (loss)	85			117			(33		)	93			(168		)	94
Net earnings attributable to noncontrolling interests										(9		)				(9		)

Net earnings (loss) attributable to the Company	$	85		$	117		$	(33	)	$	84		$	(168	)	$	85

	Three months ended March 31, 2011
										Non-
							Guarantor			Guarantor
	Parent			Issuer			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Cash Flows

Cash provided by (utilized in) operating activities	$	—		$	91		$	55		$	(156	)	$	(42	)	$	(52	)
Investing Activities:
Additions to property, plant, and equipment -				(17		)	(1		)	(55		)				(73		)
Acquisitions, net of cash acquired										6						6

Cash utilized in investing activities	—			(17		)	(1		)	(49		)	—			(67		)
Financing Activities:
Net distribution to OI Inc.	(31		)													(31		)
Change in intercompany transactions	31			(74		)	(106		)	107			42			—
Additions to short term debt										(32		)				(32		)
Borrowings of long term debt										5						5
Payments of long term debt										(10		)				(10		)
Net receipts for hedging activity										(12		)				(12		)
Dividends paid to noncontrolling interests										(18		)				(18		)

Cash provided by (utilized in) financing activities	—			(74		)	(106		)	40			42			(98		)
Effect of exchange rate change on cash										7						7

Decrease in cash	—			—			(52		)	(158		)	—			(210		)
Cash at beginning of period							230			410						640

Cash at end of period	$	—		$	—		$	178		$	252		$	—		$	430

	Three months ended March 31, 2010
										Non-
							Guarantor			Guarantor
	Parent			Issuer			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Cash Flows

Cash provided by (utilized in) continuing operating activities	$	—		$	(16	)	$	(106	)	$	192		$	(20	)	$	50
Cash provided by discontinued operating activities										8						8
Investing Activities:
Additions to property, plant, and equipment				(20		)	(1		)	(75		)				(96		)
Acquisitions, net of cash acquired										(26		)				(26		)

Cash utilized in investing activities	—			(20		)	(1		)	(101		)	—			(122		)
Financing Activities:
Net distribution to OI Inc.	(177		)													(177		)
Change in intercompany transactions	177			36			(106		)	(126		)	20			—
Change in short term debt										(50		)				(50		)
Payments of long term debt										(4		)				(4		)
Dividends paid to noncontrolling interests										(5		)				(5		)
Net receipts for hedging activity										12						12

Cash provided by (utilized in)
financing activities	—			36			(106		)	(173		)	20			(224		)
Effect of exchange rate change on cash										(3		)				(3		)

Decrease in cash	—			—			(213		)	(77		)	—			(291		)
Cash at beginning of period							284			528						812

Cash at end of period	—			—			71			451			—			521

Cash - discontinued operations										25						25

Cash - continuing operations	$	—		$	—		$	71		$	426		$	—		$	496

- Definition

Text block that encapsulates the detailed table comprising the condensed financial statements (balance sheet, income statement and statement of cash flows), normally using the registrant (parent) as the sole domain member. If condensed consolidating financial statements are being presented, other domain members (in addition to parent) such as guarantor subsidiaries, non-guarantor subsidiaries, and the consolidation eliminations, will be included in order that the respective monetary amounts for each of the domains will aggregate to the respective amounts on the consolidated financial statements. The line items are the various captions used to compile the condensed financial statements. Using extensions, most, if not all, of the elements representing condensed financial statement captions will be the same as those used for the consolidated financial statements captions.

+ References+ Details

Document and Entity Information	3 Months Ended
Document and Entity Information	Mar. 31, 2011
Document and Entity Information
Entity Registrant Name	OWENS-ILLINOIS GROUP INC
Entity Central Index Key	0000812233
Document Type	10-Q
Document Period End Date	Mar. 31, 2011
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding	100
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) In Millions, except Share data, unless otherwise specified	Mar. 31, 2011	Dec. 31, 2010	Mar. 31, 2010
CONDENSED CONSOLIDATED BALANCE SHEETS
Receivables, allowances for losses and discounts (in dollars)	$ 43	$ 40	$ 35
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01	$ 0.01
Common stock, shares authorized	1,000	1,000	1,000
Common stock, shares issued	100	100	100