Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 31, 2016 | |
Entity Information [Line Items] | ||
Entity Registrant Name | LIBBEY INC | |
Entity Central Index Key | 902,274 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 21,843,762 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net sales | $ 196,873 | $ 201,784 | $ 587,582 | $ 603,200 |
Freight billed to customers | 703 | 734 | 1,983 | 2,075 |
Total revenues | 197,576 | 202,518 | 589,565 | 605,275 |
Cost of sales | 155,694 | 154,827 | 457,298 | 458,199 |
Gross profit | 41,882 | 47,691 | 132,267 | 147,076 |
Selling, general and administrative expenses | 28,540 | 28,101 | 93,348 | 98,890 |
Income from operations | 13,342 | 19,590 | 38,919 | 48,186 |
Other income (expense) | 248 | (396) | 1,035 | 1,277 |
Earnings before interest and income taxes | 13,590 | 19,194 | 39,954 | 49,463 |
Interest expense | 5,231 | 4,701 | 15,629 | 13,762 |
Income before income taxes | 8,359 | 14,493 | 24,325 | 35,701 |
Provision (benefit) for income taxes | 5,450 | (2,226) | 12,003 | 1,476 |
Net income | $ 2,909 | $ 16,719 | $ 12,322 | $ 34,225 |
Net income per share: | ||||
Basic | $ 0.13 | $ 0.77 | $ 0.56 | $ 1.57 |
Diluted | 0.13 | 0.75 | 0.56 | 1.54 |
Dividends declared per share | $ 0.115 | $ 0.11 | $ 0.345 | $ 0.33 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net income | $ 2,909 | $ 16,719 | $ 12,322 | $ 34,225 |
Other comprehensive income (loss): | ||||
Pension and other postretirement benefit adjustments, net of tax | 1,063 | 2,739 | 5,090 | 15,160 |
Change in fair value of derivative instruments, net of tax | 501 | (3,212) | (1,200) | (2,882) |
Foreign currency translation adjustments, net of tax | 485 | (1,265) | 811 | (9,574) |
Other comprehensive income (loss), net of tax | 2,049 | (1,738) | 4,701 | 2,704 |
Comprehensive income | $ 4,958 | $ 14,981 | $ 17,023 | $ 36,929 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Assets: | ||
Cash and cash equivalents | $ 42,670 | $ 49,044 |
Accounts receivable - net | 98,547 | 94,379 |
Inventories - net | 191,479 | 178,027 |
Prepaid and other current assets | 18,653 | 19,326 |
Total current assets | 351,349 | 340,776 |
Pension asset | 977 | 977 |
Purchased intangible assets - net | 15,670 | 16,364 |
Goodwill | 164,112 | 164,112 |
Deferred income taxes | 35,397 | 48,662 |
Other assets | 8,968 | 9,019 |
Total other assets | 225,124 | 239,134 |
Property, plant and equipment - net | 257,779 | 272,534 |
Total assets | 834,252 | 852,444 |
Liabilities and Shareholders' Equity: | ||
Accounts payable | 63,191 | 71,560 |
Salaries and wages | 26,176 | 27,266 |
Accrued liabilities | 53,964 | 45,179 |
Accrued income taxes | 0 | 4,009 |
Pension liability (current portion) | 2,330 | 2,297 |
Non-pension postretirement benefits (current portion) | 4,903 | 4,903 |
Derivative liability | 2,293 | 4,265 |
Long-term debt due within one year | 5,049 | 4,747 |
Total current liabilities | 157,906 | 164,226 |
Long-term debt | 408,784 | 426,272 |
Pension liability | 34,652 | 44,274 |
Non-pension postretirement benefits | 55,282 | 55,282 |
Deferred income taxes | 2,410 | 2,822 |
Other long-term liabilities | 16,072 | 11,186 |
Total liabilities | 675,106 | 704,062 |
Shareholders' equity: | ||
Common stock, par value $.01 per share, 50,000,000 shares authorized, 21,843,851 shares issued in 2016 (21,843,851 shares issued in 2015) | 218 | 218 |
Capital in excess of par value | 329,324 | 330,756 |
Treasury stock | (8) | (4,448) |
Retained deficit | (54,857) | (57,912) |
Accumulated other comprehensive loss | (115,531) | (120,232) |
Total shareholders' equity | 159,146 | 148,382 |
Total liabilities and shareholders' equity | $ 834,252 | $ 852,444 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets Parenthetical - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 21,843,851 | 21,843,851 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Shareholders' Equity Statement - 9 months ended Sep. 30, 2016 - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Capital in Excess of Par Value | Retained Deficit | Accumulated Other Comprehensive Loss (note 9) |
Balance, value at Dec. 31, 2015 | $ 148,382 | $ 218 | $ (4,448) | $ 330,756 | $ (57,912) | $ (120,232) |
Balance, shares at Dec. 31, 2015 | 21,843,851 | 110,717 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 12,322 | 12,322 | ||||
Other comprehensive income | 4,701 | 4,701 | ||||
Stock compensation expense | 3,367 | 3,367 | ||||
Income tax effect from share-based compensation arrangements | (396) | (396) | ||||
Dividends | (7,551) | (7,551) | ||||
Stock withheld for employee taxes | (862) | (862) | ||||
Stock issued, value | 1,183 | $ 6,440 | (3,541) | |||
Stock issued, value lower than repurchase price | (1,716) | |||||
Stock issued, shares | (221,536) | |||||
Purchase of treasury shares, value | (2,000) | $ (2,000) | ||||
Purchase of treasury shares, shares | 111,292 | |||||
Balance, value at Sep. 30, 2016 | $ 159,146 | $ 218 | $ (8) | $ 329,324 | $ (54,857) | $ (115,531) |
Balance, shares at Sep. 30, 2016 | 21,843,851 | 473 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Operating activities: | ||
Net income | $ 12,322 | $ 34,225 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 36,669 | 31,286 |
Loss on asset sales and disposals | 165 | 390 |
Change in accounts receivable | (3,714) | (7,702) |
Change in inventories | (12,949) | (31,904) |
Change in accounts payable | (6,669) | (8,656) |
Accrued interest and amortization of discounts and finance fees | (1,510) | 946 |
Pension & non-pension postretirement benefits, net | (1,653) | 1,453 |
Accrued liabilities & prepaid expenses | 15,174 | 12,800 |
Income taxes | 2,344 | (4,925) |
Share-based compensation expense | 4,334 | 5,549 |
Excess tax benefit from share-based compensation arrangements | (366) | 0 |
Other operating activities | (554) | (1,414) |
Net cash provided by operating activities | 43,593 | 32,048 |
Investing activities: | ||
Additions to property, plant and equipment | (23,523) | (41,480) |
Proceeds from asset sales and other | 0 | 2 |
Net cash used in investing activities | (23,523) | (41,478) |
Financing activities: | ||
Borrowings on ABL credit facility | 6,000 | 44,500 |
Repayments on ABL credit facility | (6,000) | (37,500) |
Other repayments | (350) | (3,267) |
Other borrowings | 339 | 0 |
Repayments on Term Loan B | (18,300) | (3,300) |
Stock options exercised | 1,153 | 3,334 |
Excess tax benefit from share-based compensation arrangements | 366 | 0 |
Dividends | (7,551) | (7,197) |
Treasury shares purchased | (2,000) | (15,275) |
Net cash used in financing activities | (26,343) | (18,705) |
Effect of exchange rate fluctuations on cash | (101) | (1,808) |
Decrease in cash | (6,374) | (29,943) |
Cash & cash equivalents at beginning of period | 49,044 | 60,044 |
Cash & cash equivalents at end of period | 42,670 | 30,101 |
Supplemental disclosure of cash flow information: | ||
Cash paid during the period for interest, net of capitalized interest | 16,927 | 12,237 |
Cash paid during the period for income taxes | $ 5,576 | $ 3,858 |
Description of the Business
Description of the Business | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business | Description of the Business Libbey is a leading global manufacturer and marketer of glass tableware products. We produce glass tableware in five countries and sell to customers in over 100 countries. We design and market, under our Libbey ® , Crisa ® , Royal Leerdam ® , World ® Tableware, Syracuse ® China and Crisal Glass ® brand names (among others), an extensive line of high-quality tableware items for sale primarily in the foodservice, retail and business-to-business markets. Our sales force presents our products to the global marketplace in a coordinated fashion. We own and operate two glass tableware manufacturing plants in the United States as well as glass tableware manufacturing plants in the Netherlands (Libbey Holland), Portugal (Libbey Portugal), China (Libbey China) and Mexico (Libbey Mexico). In addition, we import products from overseas in order to complement our line of manufactured items. The combination of manufacturing and procurement allows us to compete in the global tableware market by offering an extensive product line at competitive prices. Our website can be found at www.libbey.com . We make available, free of charge, at this website all of our reports filed or furnished pursuant to Section 13(a) or 15(d) of Securities Exchange Act of 1934, including our annual report on Form 10-K, our quarterly reports on Form 10-Q, our current reports on Form 8-K, as well as amendments to those reports. These reports are made available on our website as soon as reasonably practicable after their filing with, or furnishing to, the Securities and Exchange Commission and can also be found at www.sec.gov . Our shares are traded on the NYSE MKT exchange under the ticker symbol LBY. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies See our Form 10-K for the year ended December 31, 2015 for a description of significant accounting policies not listed below. Basis of Presentation The Condensed Consolidated Financial Statements include Libbey Inc. and its majority-owned subsidiaries (collectively, Libbey or the Company). Our fiscal year end is December 31 st . All material intercompany accounts and transactions have been eliminated. The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Condensed Consolidated Financial Statements and accompanying notes. Actual results could differ materially from management’s estimates. Condensed Consolidated Statements of Operations Net sales in our Condensed Consolidated Statements of Operations include revenue earned when products are shipped and title and risk of loss have passed to the customer. Revenue is recorded net of returns, discounts and incentives offered to customers. Cost of sales includes cost to manufacture and/or purchase products, warehouse, shipping and delivery costs and other costs. Foreign Currency Translation Assets and liabilities of non-U.S. subsidiaries that operate in a local currency environment, where that local currency is the functional currency, are translated to U.S. dollars at exchange rates in effect at the balance sheet date, with the resulting translation adjustments directly recorded to a separate component of accumulated other comprehensive loss. Income and expense accounts are translated at average exchange rates during the year. The effect of exchange rate changes on transactions denominated in currencies other than the functional currency is recorded in other income (expense). Income Taxes Income taxes are accounted for under the asset and liability method. Deferred income tax assets and liabilities are recognized for estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax attribute carry-forwards. Deferred income tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. Financial Accounting Standards Board Accounting Standards Codification™ (FASB ASC) Topic 740, “Income Taxes,” requires that a valuation allowance be recorded when it is more likely than not that some portion or all of the deferred income tax assets will not be realized. Deferred income tax assets and liabilities are determined separately for each tax paying component in which we conduct our operations or otherwise incur taxable income or losses. See note 5 for further discussion. Stock-Based Compensation Expense We account for stock-based compensation expense in accordance with FASB ASC Topic 718, “Compensation — Stock Compensation,” and FASB ASC Topic 505-50, “Equity — Equity-Based Payments to Non-Employees”. Stock-based compensation cost is measured based on the fair value of the equity instruments issued. FASB ASC Topics 718 and 505-50 apply to all of our outstanding unvested stock-based payment awards. Stock-based compensation expense charged to the Condensed Consolidated Statements of Operations is as follows: Three months ended September 30, Nine months ended September 30, (dollars in thousands) 2016 2015 2016 2015 Stock-based compensation expense $ 1,011 $ 905 $ 4,334 $ 5,549 Reclassifications Certain amounts in prior years' financial statements have been reclassified to conform to the presentation used in the three and nine month periods ended September 30, 2016 , including the segment data in note 10. New Accounting Standards In May 2014, the FASB issued Accounting Standards Update No. 2014-09, "Revenue From Contracts With Customers" (ASU 2014-09), which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. ASU 2014-09 is based on the principle that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to fulfill a contract. Entities have the option of using either a full retrospective or a modified retrospective approach for the adoption of the new standard. This update is effective for interim and annual reporting periods beginning after December 15, 2016; early adoption is not permitted. In August 2015, the FASB issued ASU 2015-14 which defers the effective date one year from January 1, 2017 to January 1, 2018, but early adoption as of January 1, 2017 is permitted. In March of 2016 the FASB issued ASU 2016-08, "Revenue From Contracts With Customers: Principal vs. Agent Considerations" (ASU 2016-08). ASU 2016-08 provides more detailed guidance to make the principal or agent determination and to determine when revenue should be recorded when a performance obligation is completed. In the second quarter of 2016, three additional revenue recognition amendments, ASU 2016-10, 2016-11 and 2016-12, were issued that become effective upon adoption of the new standard. We do not plan to early adopt and are still assessing the impact that these standards will have on our Condensed Consolidated Financial Statements. In August 2014, the FASB issued Accounting Standards Update No. 2014-15, "Presentation of Financial Statements-Going Concern" (ASU 2014-15), which establishes management’s responsibility, in connection with preparing financial statements for each annual and interim reporting period, to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern. ASU 2014-15 also provides guidance to determine whether to disclose information about relevant conditions and events when there is substantial doubt about an entity’s ability to continue as a going concern. This update is effective for the annual reporting period ending after December 15, 2016, and for interim and annual periods thereafter. Early application is permitted. We are currently evaluating the impact this guidance will have on our financial disclosures; however, as the guidance only impacts disclosure, the adoption of this guidance is not expected to have any impact on our balance sheet, results of operations or cash flows at December 31, 2016. In May 2015, the FASB issued Accounting Standards Update 2015-07, "Disclosures for Investments in Certain Entities that Calculate Net Asset Value Per Share (or its Equivalent)" (ASU 2015-07), which removes the requirement to categorize within the fair value hierarchy investments for which fair values are estimated using the net asset value practical expedient provided by FASB ASC Topic 820, Fair Value Measurement. Disclosures about investments in certain entities that calculate net asset value per share are limited under ASU 2015-07 to those investments for which the entity has elected to estimate the fair value using the net asset value practical expedient. ASU 2015-07 is effective for entities for fiscal years beginning after December 15, 2015 and interim periods within, with retrospective application to all periods presented. Early application is permitted. There is no impact on our 2016 interim financial statements. We are currently assessing the impact that this standard will have on our disclosures in our Consolidated Financial Statements at December 31, 2016. In July 2015, the FASB issued Accounting Standards Update No. 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory" (ASU 2015-11), which requires that inventory be measured at the lower of its cost or the estimated sale price, minus the costs of completing the sale, which the FASB calls the net realizable value. This update is effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption permitted. We do not expect this standard to have a material impact on our Condensed Consolidated Financial Statements. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, "Leases (Topic 842)" (ASU 2016-02), which requires a lessee to recognize assets and liabilities for leases with lease terms of more than 12 months on the balance sheet. Leases will be classified as either finance or operating leases, with classification affecting the pattern of expense recognition in the income statement. The new guidance also clarifies the definition of a lease and disclosure requirements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, with early application permitted. We are currently assessing the impact that this standard will have on our Condensed Consolidated Financial Statements. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" (ASU 2016-09). Areas for simplification in this update involve several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for interim and annual reporting periods beginning after December 15, 2016, with early application permitted. We are currently assessing the impact that this standard will have on our Condensed Consolidated Financial Statements. In June 2016, the FASB issued Accounting Standards Update No. 2016-13. "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" (ASU 2016-13). This standard introduces a new approach to estimating credit losses on certain types of financial instruments, including trade receivables, and modifies the impairment model for available-for-sale debt securities. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim period within those fiscal years, with early application permitted. We are currently assessing the impact that this standard will have on our Condensed Consolidated Financial Statements. In August 2016, the FASB issued Accounting Standards Update No. 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments" (ASU 2016-15). ASU 2016-15 addresses how certain cash receipts and cash payments are presented and classified in the Statement of Cash Flows. ASU 2016-15 is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted. We are currently assessing the impact that this standard will have on our Condensed Consolidated Financial Statements. |
Balance Sheet Details
Balance Sheet Details | 9 Months Ended |
Sep. 30, 2016 | |
Balance Sheet Details [Abstract] | |
Balance Sheet Details | Balance Sheet Details The following table provides detail of selected balance sheet items: (dollars in thousands) September 30, 2016 December 31, 2015 Accounts receivable: Trade receivables $ 97,057 $ 91,324 Other receivables 1,490 3,055 Total accounts receivable, less allowances of $6,407 and $7,066 $ 98,547 $ 94,379 Inventories: Finished goods $ 173,357 $ 159,998 Work in process 1,581 1,183 Raw materials 4,585 4,944 Repair parts 10,790 10,763 Operating supplies 1,166 1,139 Total inventories, less loss provisions of $12,860 and $5,313 $ 191,479 $ 178,027 Accrued liabilities: Accrued incentives $ 31,470 $ 21,450 Other accrued liabilities 22,494 23,729 Total accrued liabilities $ 53,964 $ 45,179 The increase in inventory loss provisions at September 30, 2016 is due to our second quarter initiative to optimize our product portfolio to reduce inventory and simplify and improve our operations. |
Borrowings
Borrowings | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings Borrowings consist of the following: (dollars in thousands) Interest Rate Maturity Date September 30, December 31, Borrowings under ABL Facility floating April 9, 2019 $ — $ — Term Loan B floating (1) April 9, 2021 415,100 433,400 AICEP Loan 0.00% January, 2017 to July 30, 2018 3,536 3,451 Total borrowings 418,636 436,851 Less — unamortized discount and finance fees 4,803 5,832 Total borrowings — net 413,833 431,019 Less — long term debt due within one year 5,049 4,747 Total long-term portion of borrowings — net $ 408,784 $ 426,272 ________________________ (1) - We have entered into an interest rate swap which effectively fixes a series of our future interest payments on a portion of the Term Loan B debt. See interest rate swap in note 8 for additional details. The Term Loan B floating interest rate was 3.75 percent at September 30, 2016 . At September 30, 2016 , the available borrowing base under the ABL Facility was offset by a $0.4 million rent reserve. The ABL Facility also provides for the issuance of up to $30.0 million of letters of credit which, when outstanding, are applied against the $100.0 million limit. At September 30, 2016 , $7.0 million in letters of credit were outstanding. Remaining unused availability under the ABL Facility was $92.4 million at September 30, 2016 , compared to $91.0 million at December 31, 2015 . |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For interim tax reporting, we estimate our annual effective tax rate and apply it to our year-to-date ordinary income. Tax jurisdictions with a projected or year-to-date loss for which a tax benefit cannot be realized are excluded from the annualized effective tax rate. The tax effects of unusual or infrequently occurring items, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, are reported in the interim period in which they occur. Our effective tax rate was 49.3 percent for the nine months ended September 30, 2016 , compared to 4.1 percent for the nine months ended September 30, 2015 . Our effective tax rate for the nine months ended September 30, 2016 exceeded the United States statutory rate primarily due to the following key drivers: unrecognized tax benefits of 9.7 percent , other permanent adjustments including such items as nondeductible expenses and U.S. Subpart F income of 9.0 percent , a valuation allowance on deferred tax assets in the Netherlands of 7.7 percent , and foreign withholding taxes of 4.4 percent , all partially offset by the impact of foreign exchange of (15.4) percent . Our effective tax rate for the nine months ended September 30, 2015 was substantially below the United States statutory rate primarily due to the following key drivers: impact of foreign exchange of (21.0) percent , valuation allowances on deferred tax assets in the United States and Netherlands of (12.5) percent , and non-U.S. income tax rate differential of (7.7) percent , all partially offset by other permanent adjustments including such items as nondeductible expenses and U.S. Subpart F income of 7.8 percent and foreign withholding taxes of 7.7 percent . The Company and its subsidiaries are subject to examination by various countries' tax authorities. These examinations may lead to proposed or assessed adjustments to our taxes. In August 2016, one of our Mexican subsidiaries received a tax assessment from the Mexican tax authority (SAT) related to the audit of its 2010 tax year. The amount assessed was approximately 3 billion Mexican Pesos, which was equivalent to approximately $157 million US dollars as of the date of the assessment. The Company has filed an administrative appeal with SAT requesting that the assessment be fully nullified. We are awaiting the outcome of the appeal. Management, in consultation with external legal counsel, believes that if contested in the Mexican court system, it is more likely than not that the Company would prevail on all significant components of the assessment. Management intends to continue to vigorously contest all significant components of the assessment in the Mexican courts if they are not nullified at the administrative appeal level. We believe that our tax reserves related to uncertain tax positions are adequate at this time. |
Pension and Non-pension Postret
Pension and Non-pension Postretirement Benefits | 9 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Non-pension Postretirement Benefits | Pension and Non-pension Postretirement Benefits We have pension plans covering the majority of our employees. Benefits generally are based on compensation and service for salaried employees and job grade and length of service for hourly employees. In addition, we have an unfunded supplemental employee retirement plan (SERP) that covers certain salaried U.S.-based employees of Libbey hired before January 1, 2006. The U.S. pension plans cover the salaried U.S.-based employees of Libbey hired before January 1, 2006 and most hourly U.S.-based employees (excluding employees hired at Shreveport after 2008 and at Toledo after September 30, 2010). Effective January 1, 2013, we ceased annual company contribution credits to the cash balance accounts in our Libbey U.S. Salaried Pension Plan and SERP. The non-U.S. pension plans cover the employees of our wholly owned subsidiary in Mexico. The plan in Mexico is unfunded. In the fourth quarter of 2015, we executed an agreement with Pensioenfonds voor de Grafische Bedrijven (“PGB”), an industry wide pension fund, and unwound direct ownership of our defined benefit pension plan in the Netherlands. In accordance with this agreement, we transferred all assets of the plan to PGB, which now assumes the related liabilities and administrative responsibilities of the plan. In 2016, Libbey Holland continues to make cash contributions to PGB as participating employees earn pension benefits. These related costs are expensed as incurred and are excluded from 2016 pension expense below. The components of our net pension expense, including the SERP, are as follows: Three months ended September 30, U.S. Plans Non-U.S. Plans Total (dollars in thousands) 2016 2015 2016 2015 2016 2015 Service cost $ 929 $ 1,091 $ 313 $ 741 $ 1,242 $ 1,832 Interest cost 3,740 3,678 663 1,085 4,403 4,763 Expected return on plan assets (5,757 ) (5,666 ) — (608 ) (5,757 ) (6,274 ) Amortization of unrecognized: Prior service cost 65 104 (53 ) (62 ) 12 42 Actuarial loss 1,068 1,823 412 400 1,480 2,223 Pension expense $ 45 $ 1,030 $ 1,335 $ 1,556 $ 1,380 $ 2,586 Nine months ended September 30, U.S. Plans Non-U.S. Plans Total (dollars in thousands) 2016 2015 2016 2015 2016 2015 Service cost $ 2,788 $ 3,274 $ 948 $ 2,251 $ 3,736 $ 5,525 Interest cost 11,222 11,036 2,005 3,295 13,227 14,331 Expected return on plan assets (17,272 ) (16,996 ) — (1,844 ) (17,272 ) (18,840 ) Amortization of unrecognized: Prior service cost 197 313 (160 ) (187 ) 37 126 Actuarial loss 3,204 5,468 817 1,215 4,021 6,683 Settlement charge 42 — 170 — 212 — Pension expense $ 181 $ 3,095 $ 3,780 $ 4,730 $ 3,961 $ 7,825 We have contributed $0.7 million and $3.1 million of cash into our pension plans for the three months and nine months ended September 30, 2016 . Pension contributions for the remainder of 2016 are estimated to be $1.2 million . We provide certain retiree health care and life insurance benefits covering our U.S. and Canadian salaried employees hired before January 1, 2004 and a majority of our union hourly employees (excluding employees hired at Shreveport after 2008 and at Toledo after September 30, 2010). Employees are generally eligible for benefits upon retirement and completion of a specified number of years of creditable service. Benefits for most hourly retirees are determined by collective bargaining. The U.S. non-pension postretirement plans cover the hourly and salaried U.S.-based employees of Libbey (excluding those mentioned above). The non-U.S. non-pension postretirement plans cover the retirees and active employees of Libbey who are located in Canada. The postretirement benefit plans are unfunded. The provision for our non-pension postretirement benefit expense consists of the following: Three months ended September 30, U.S. Plans Non-U.S. Plans Total (dollars in thousands) 2016 2015 2016 2015 2016 2015 Service cost $ 200 $ 214 $ — $ — $ 200 $ 214 Interest cost 652 634 11 10 663 644 Amortization of unrecognized: Prior service cost 35 35 — — 35 35 Actuarial loss / (gain) 21 148 (10 ) (19 ) 11 129 Non-pension postretirement benefit expense $ 908 $ 1,031 $ 1 $ (9 ) $ 909 $ 1,022 Nine months ended September 30, U.S. Plans Non-U.S. Plans Total (dollars in thousands) 2016 2015 2016 2015 2016 2015 Service cost $ 598 $ 641 $ 1 $ 1 $ 599 $ 642 Interest cost 1,956 1,903 35 39 1,991 1,942 Amortization of unrecognized: Prior service cost 105 105 — — 105 105 Actuarial loss / (gain) 61 444 (32 ) (43 ) 29 401 Non-pension postretirement benefit expense $ 2,720 $ 3,093 $ 4 $ (3 ) $ 2,724 $ 3,090 Our 2016 estimate of non-pension cash payments is $4.0 million , and we have paid $0.9 million and $2.7 million for the three months and nine months ended September 30, 2016 . |
Net Income per Share of Common
Net Income per Share of Common Stock | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Net Income per Share of Common Stock | Net Income per Share of Common Stock The following table sets forth the computation of basic and diluted earnings per share: Three months ended September 30, Nine months ended September 30, (dollars in thousands, except earnings per share) 2016 2015 2016 2015 Numerator for earnings per share: Net income that is available to common shareholders $ 2,909 $ 16,719 $ 12,322 $ 34,225 Denominator for basic earnings per share: Weighted average shares outstanding 21,894,017 21,796,172 21,869,922 21,816,323 Denominator for diluted earnings per share: Effect of stock options and restricted stock units 177,176 402,536 156,304 452,161 Adjusted weighted average shares and assumed conversions 22,071,193 22,198,708 22,026,226 22,268,484 Basic earnings per share $ 0.13 $ 0.77 $ 0.56 $ 1.57 Diluted earnings per share $ 0.13 $ 0.75 $ 0.56 $ 1.54 Shares excluded from diluted earnings per share due to: Inclusion would have been anti-dilutive (excluded from calculation) 605,032 127,258 619,058 97,951 When applicable, diluted shares outstanding includes the dilutive impact of restricted stock units. Diluted shares also include the impact of eligible employee stock options, which are calculated based on the average share price for each fiscal period using the treasury stock method. Under the treasury stock method, the tax-effected proceeds that hypothetically would be received from the exercise of all in-the-money options are assumed to be used to repurchase shares. |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives We utilize derivative financial instruments to hedge certain interest rate risks associated with our long-term debt, commodity price risks associated with forecasted future natural gas requirements and foreign exchange rate risks associated with transactions denominated in a currency other than the U.S. dollar. These derivatives, except for the foreign currency contracts and the natural gas contracts used in our Mexican manufacturing facilities, qualify for hedge accounting since the hedges are highly effective, and we have designated and documented contemporaneously the hedging relationships involving these derivative instruments. While we intend to continue to meet the conditions for hedge accounting, if hedges do not qualify as highly effective (as is the case for natural gas contracts used in our Mexico manufacturing facility) or if we do not believe that forecasted transactions would occur, the changes in the fair value of the derivatives used as hedges would be reflected in our earnings. All of these contracts are accounted for under FASB ASC 815 “Derivatives and Hedging.” Fair Values The following table provides the fair values of our derivative financial instruments for the periods presented: Asset Derivatives: (dollars in thousands) September 30, 2016 December 31, 2015 Derivatives designated as hedging instruments under FASB ASC 815: Balance Sheet Location Fair Value Balance Sheet Location Fair Value Natural gas contracts Prepaid and other current assets $ 60 Prepaid and other current assets $ — Total designated 60 — Derivatives not designated as hedging instruments under FASB ASC 815: Natural gas contracts Prepaid and other current assets 75 Prepaid and other current assets — Currency contracts Prepaid and other current assets — Prepaid and other current assets 245 Total undesignated 75 245 Total $ 135 $ 245 Liability Derivatives: (dollars in thousands) September 30, 2016 December 31, 2015 Derivatives designated as hedging instruments under FASB ASC 815: Balance Sheet Location Fair Value Balance Sheet Location Fair Value Natural gas contracts Derivative liability - current $ — Derivative liability - current $ 1,069 Natural gas contracts Other long-term liabilities 8 Other long-term liabilities 34 Interest rate contract Derivative liability - current 2,257 Derivative liability - current 2,132 Interest rate contract Other long-term liabilities 3,159 Other long-term liabilities 246 Total designated 5,424 3,481 Derivatives not designated as hedging instruments under FASB ASC 815: Currency contracts Derivative liability - current 36 Derivative liability - current — Natural gas contracts Derivative liability - current — Derivative liability - current 1,064 Natural gas contracts Other long-term liabilities 24 Other long-term liabilities 35 Total undesignated 60 1,099 Total $ 5,484 $ 4,580 Natural Gas Contracts We use natural gas swap contracts related to forecasted future North American natural gas requirements. The objective of these commodity contracts is to limit the fluctuations in prices paid due to price movements in the underlying commodity. We consider our forecasted natural gas requirements in determining the quantity of natural gas to hedge. We combine the forecasts with historical observations to establish the percentage of forecast eligible to be hedged, typically ranging from 40 percent to 70 percent of our anticipated requirements, up to eighteen months in the future. The fair values of these instruments are determined from market quotes. As of September 30, 2016 , we had commodity contracts for 2,510,000 million British Thermal Units (BTUs) of natural gas. At December 31, 2015 , we had commodity contracts for 3,000,000 million BTUs of natural gas. All of our derivatives for natural gas in the U.S. qualify and are designated as cash flow hedges at September 30, 2016 . Hedge accounting is applied only when the derivative is deemed to be highly effective at offsetting changes in fair values or anticipated cash flows of the hedged item or transaction. For hedged forecasted transactions, hedge accounting is discontinued if the forecasted transaction is no longer probable to occur, and any previously deferred gains or losses would be recorded to earnings immediately. Changes in the effective portion of the fair value of these hedges are recorded in other comprehensive income (loss). The ineffective portion of the change in the fair value of a derivative designated as a cash flow hedge is recognized in other income (expense). As the natural gas contracts mature, the accumulated gains (losses) for the respective contracts are reclassified from accumulated other comprehensive loss to current expense in cost of sales in our Condensed Consolidated Statement of Operations. Since October 1, 2014, our derivatives for natural gas in Mexico have not been designated as cash flow hedges. All mark-to-market changes on these derivatives are being reflected in other income (expense). We recognized an immaterial gain and a loss of $(0.2) million in other income (expense) in the three months ended September 30, 2016 and 2015 , respectively, and a gain (loss) of $1.2 million and $(0.5) million in other income (expense) in the nine months ended September 30, 2016 and 2015 , respectively, related to the natural gas contracts where hedge accounting was not elected. Mexico natural gas contracts de-designated in the fourth quarter of 2014 were primarily all utilized by December 31, 2015. We paid additional cash related to natural gas derivative settlements of $0.1 million and $1.0 million in the three months ended September 30, 2016 and 2015 , respectively, and $2.3 million and $3.2 million in the nine months ended September 30, 2016 and 2015 , respectively, due to the difference between the fixed unit rate of our natural gas contracts and the variable unit rate of our natural gas cost from suppliers. Based on our current valuation, we estimate that accumulated gains for natural gas currently carried in accumulated other comprehensive loss that will be reclassified into earnings over the next twelve months will result in a $0.1 million gain in our Condensed Consolidated Statements of Operations. The following table provides a summary of the effective portion of derivative gain (loss) recognized in other comprehensive income (loss) from our natural gas contracts: Three months ended September 30, Nine months ended September 30, (dollars in thousands) 2016 2015 2016 2015 Derivatives in Cash Flow Hedging relationships: Natural gas contracts $ (35 ) $ (489 ) $ 59 $ (1,265 ) Total $ (35 ) $ (489 ) $ 59 $ (1,265 ) The following table provides a summary of the effective portion of derivative gain (loss) reclassified from accumulated other comprehensive loss to the Condensed Consolidated Statements of Operations from our natural gas contracts: Three months ended September 30, Nine months ended September 30, (dollars in thousands) 2016 2015 2016 2015 Derivative: Location: Natural gas contracts Cost of sales $ (41 ) $ (448 ) $ (1,096 ) $ (1,468 ) Total impact on net income (loss) $ (41 ) $ (448 ) $ (1,096 ) $ (1,468 ) The ineffective portion of derivative gain (loss) related to the de-designated Mexico contracts reclassified from accumulated other comprehensive loss to cost of sales in the Condensed Consolidated Statements of Operations was immaterial for the three and nine months ended September 30, 2015 . The following table provides a summary of the gain (loss) recognized in other income (expense) in the Condensed Consolidated Statements of Operations from our natural gas contracts: Three months ended September 30, Nine months ended September 30, (dollars in thousands) 2016 2015 2016 2015 De-designated contracts $ — $ 180 $ — $ 584 Contracts where hedge accounting was not elected 11 (222 ) 1,150 (459 ) Total $ 11 $ (42 ) $ 1,150 $ 125 Interest Rate Swap On April 1, 2015, we executed an interest rate swap on our Term Loan B as part of our risk management strategy to mitigate the risks involved with fluctuating interest rates. The interest rate swap effectively converts $220.0 million of our Term Loan B debt from a variable interest rate to a 4.85 percent fixed interest rate, thus reducing the impact of interest rate changes on future income. The fixed rate swap became effective in January 2016 and expires in January 2020. This interest rate swap is valued using the market standard methodology of netting the discounted expected future variable cash receipts and the discounted future fixed cash payments. The variable cash receipts are based on an expectation of future interest rates derived from observed market interest rate forward curves. Our interest rate swap qualifies and is designated as a cash flow hedge at September 30, 2016 and accounted for under FASB ASC 815 "Derivatives and Hedging". Hedge accounting is applied only when the derivative is deemed to be highly effective at offsetting changes in fair values or anticipated cash flows of the hedged item or transaction. For hedged forecasted transactions, hedge accounting would be discontinued if the forecasted transaction is no longer probable to occur, and any previously deferred gains or losses would be recorded to earnings immediately. Changes in the effective portion of the fair value of these hedges are recorded in other comprehensive income (loss). The ineffective portion, if any, of the change in the fair value of a derivative designated as a cash flow hedge is recognized in other income (expense). Based on our current valuation, we estimate that accumulated losses currently carried in accumulated other comprehensive loss that will be reclassified into earnings over the next twelve months will result in $2.3 million of additional interest expense in our Condensed Consolidated Statements of Operations. The following table provides a summary of the effective portion of derivative gain (loss) recognized in other comprehensive income (loss) from our interest rate swap: Three months ended September 30, Nine months ended September 30, (dollars in thousands) 2016 2015 2016 2015 Derivatives in Cash Flow Hedging relationships: Interest rate swap $ 6 $ (3,211 ) $ (4,816 ) $ (3,222 ) Total $ 6 $ (3,211 ) $ (4,816 ) $ (3,222 ) The following table provides a summary of the effective portion of derivative gain (loss) reclassified from accumulated other comprehensive income to the Condensed Consolidated Statements of Operations from our interest rate swap: Three months ended September 30, Nine months ended September 30, (dollars in thousands) 2016 2015 2016 2015 Derivative: Location: Interest rate swap Interest expense $ (767 ) $ — $ (1,778 ) $ — Total impact on net income (loss) $ (767 ) $ — $ (1,778 ) $ — Currency Contracts Our foreign currency exposure arises from transactions denominated in a currency other than the U.S. dollar and is primarily associated with our Canadian dollar denominated accounts receivable. From time to time, we enter into a series of foreign currency contracts to sell Canadian dollars. At September 30, 2016 and December 31, 2015 , we had C$3.9 million and C$6.2 million in foreign currency contracts, respectively. The fair values of these instruments are determined from market quotes. The values of these derivatives will change over time as cash receipts and payments are made and as market conditions change. Gains (losses) on currency derivatives that were not designated as hedging instruments are recorded in other income (expense) as follows: Three months ended September 30, Nine months ended September 30, (dollars in thousands) 2016 2015 2016 2015 Derivative: Location: Currency contracts Other income (expense) $ 106 $ 135 $ (281 ) $ (152 ) Total $ 106 $ 135 $ (281 ) $ (152 ) We do not believe we are exposed to more than a nominal amount of credit risk in our natural gas hedges, interest rate swap and currency contracts as the counterparties are established financial institutions. The counterparties for the derivative agreements are rated BBB+ or better as of September 30, 2016 , by Standard and Poor’s. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2016 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive loss, net of tax, is as follows: Three months ended September 30, 2016 (dollars in thousands) Foreign Currency Translation Derivative Instruments Pension and Other Postretirement Benefits Accumulated Other Balance June 30, 2016 $ (22,587 ) $ (3,561 ) $ (91,432 ) $ (117,580 ) Other comprehensive income (loss) 407 (29 ) — 378 Currency impact — — (31 ) (31 ) Amounts reclassified from accumulated other comprehensive income (loss): Amortization of actuarial loss (1) — — 1,491 1,491 Amortization of prior service cost (1) — — 47 47 Cost of sales — 41 — 41 Interest expense — 767 — 767 Current-period other comprehensive income (loss) 407 779 1,507 2,693 Tax effect 78 (278 ) (444 ) (644 ) Balance on September 30, 2016 $ (22,102 ) $ (3,060 ) $ (90,369 ) $ (115,531 ) Nine months ended September 30, 2016 (dollars in thousands) Foreign Currency Translation Derivative Instruments Pension and Other Postretirement Benefits Accumulated Other Balance on December 31, 2015 $ (22,913 ) $ (1,860 ) $ (95,459 ) $ (120,232 ) Other comprehensive income (loss) 459 (4,757 ) 2,755 (1,543 ) Currency impact — — 481 481 Amounts reclassified from accumulated other comprehensive income (loss): Amortization of actuarial loss (1) — — 4,050 4,050 Amortization of prior service cost (1) — — 142 142 Cost of sales — 1,096 — 1,096 Interest expense — 1,778 — 1,778 Current-period other comprehensive income (loss) 459 (1,883 ) 7,428 6,004 Tax effect 352 683 (2,338 ) (1,303 ) Balance on September 30, 2016 $ (22,102 ) $ (3,060 ) $ (90,369 ) $ (115,531 ) Three months ended September 30, 2015 (dollars in thousands) Foreign Currency Translation Derivative Instruments Pension and Other Postretirement Benefits Accumulated Other Balance on June 30, 2015 $ (17,471 ) $ (295 ) $ (116,239 ) $ (134,005 ) Other comprehensive income (loss) (1,265 ) (3,700 ) — (4,965 ) Currency impact — — 709 709 Amounts reclassified from accumulated other comprehensive income (loss): Amortization of actuarial loss (1) — — 2,352 2,352 Amortization of prior service cost (1) — — 77 77 Cost of sales — 507 — 507 Current-period other comprehensive income (loss) (1,265 ) (3,193 ) 3,138 (1,320 ) Tax effect — (19 ) (399 ) (418 ) Balance on September 30, 2015 $ (18,736 ) $ (3,507 ) $ (113,500 ) $ (135,743 ) Nine months ended September 30, 2015 (dollars in thousands) Foreign Currency Translation Derivative Instruments Pension and Other Postretirement Benefits Accumulated Other Balance on December 31, 2014 $ (9,162 ) $ (625 ) $ (128,660 ) $ (138,447 ) Other comprehensive income (loss) (9,574 ) (4,487 ) 5,394 (8,667 ) Currency impact — — 3,122 3,122 Amounts reclassified from accumulated other comprehensive income (loss): Amortization of actuarial loss (1) — — 7,084 7,084 Amortization of prior service cost (1) — — 231 231 Cost of sales — 1,666 — 1,666 Current-period other comprehensive income (loss) (9,574 ) (2,821 ) 15,831 3,436 Tax effect — (61 ) (671 ) (732 ) Balance on September 30, 2015 $ (18,736 ) $ (3,507 ) $ (113,500 ) $ (135,743 ) ___________________________ (1) These accumulated other comprehensive income components are included in the computation of net periodic benefit cost within the cost of sales and selling, general and administrative expenses on the Condensed Consolidated Statements of Operations. |
Segments
Segments | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segments | Segments In the fourth quarter of 2015, we revised our reporting segments. Under the new structure, our U.S. and Canada glass tableware business is combined with our U.S. and Canada sourcing business in order to be consistent with the way we manage and report our other segments. Our reporting segments continue to align with our regionally focused organizational structure, which we believe enables us to better serve customers across the globe. We now report financial results for U.S. and Canada; Latin America; Europe, the Middle East and Africa (EMEA); and Other. Sales and segment EBIT continue to reflect end market reporting pursuant to which sales and related costs are included in segment EBIT based on the geographical destination of the sale. The revised 2015 segment results do not affect any previously reported consolidated financial results. Our three reportable segments are defined below. Our operating segment that does not meet the criteria to be a reportable segment is disclosed as Other. U.S. & Canada—includes sales of manufactured and sourced tableware having an end market destination in the U.S and Canada excluding glass products for Original Equipment Manufacturers (OEM), which remain in the Latin America segment. Latin America—includes primarily sales of manufactured and sourced glass tableware having an end market destination in Latin America including glass products for OEMs that have an end market destination outside of Latin America. EMEA—includes primarily sales of manufactured and sourced glass tableware having an end market destination in Europe, the Middle East and Africa. Other—includes primarily sales of manufactured and sourced glass tableware having an end market destination in Asia Pacific. Our measure of profit for our reportable segments is Segment Earnings before Interest and Taxes (Segment EBIT) and excludes amounts related to certain items we consider not representative of ongoing operations as well as certain retained corporate costs and other allocations that are not considered by management when evaluating performance. We use Segment EBIT, along with net sales and selected cash flow information, to evaluate performance and to allocate resources. Segment EBIT for reportable segments includes an allocation of some corporate expenses based on the costs of services performed. Certain activities not related to any particular reportable segment are reported within retained corporate costs. These costs include certain headquarter, administrative and facility costs, and other costs that are global in nature and are not allocable to the reporting segments. The accounting policies of the reportable segments are the same as those described in note 2. We do not have any customers who represent 10 percent or more of total sales. Inter-segment sales are consummated at arm’s length and are reflected at end market reporting below. Three months ended September 30, Nine months ended September 30, (dollars in thousands) 2016 2015 2016 2015 Net Sales: U.S. & Canada $ 119,345 $ 120,600 $ 358,613 $ 357,954 Latin America 40,149 42,372 114,988 126,838 EMEA 30,147 30,572 88,043 91,207 Other 7,232 8,240 25,938 27,201 Consolidated $ 196,873 $ 201,784 $ 587,582 $ 603,200 Segment EBIT: U.S. & Canada $ 19,501 $ 20,842 $ 57,740 $ 57,017 Latin America 1,944 6,280 14,084 18,371 EMEA (660 ) 254 (1,702 ) 1,274 Other (379 ) 905 898 3,851 Total Segment EBIT $ 20,406 $ 28,281 $ 71,020 $ 80,513 Reconciliation of Segment EBIT to Net Income: Segment EBIT $ 20,406 $ 28,281 $ 71,020 $ 80,513 Retained corporate costs (6,925 ) (7,969 ) (20,699 ) (26,626 ) Pension settlement — — (212 ) — Environmental obligation (note 13) — 100 — (123 ) Reorganization charges (1) — (1,176 ) — (4,191 ) Derivatives (2) 11 (42 ) 1,150 125 Product portfolio optimization (3) — — (6,784 ) — Executive terminations 98 — (4,521 ) (235 ) Interest expense (5,231 ) (4,701 ) (15,629 ) (13,762 ) (Provision) benefit for income taxes (5,450 ) 2,226 (12,003 ) (1,476 ) Net income $ 2,909 $ 16,719 $ 12,322 $ 34,225 Depreciation & Amortization: U.S. & Canada $ 2,883 $ 3,010 $ 9,718 $ 8,789 Latin America 4,667 3,662 13,725 10,377 EMEA 1,885 2,131 7,660 6,445 Other 1,325 1,462 4,162 4,434 Corporate 474 368 1,404 1,241 Consolidated $ 11,234 $ 10,633 $ 36,669 $ 31,286 Capital Expenditures: U.S. & Canada $ 3,037 $ 2,666 $ 9,030 $ 23,434 Latin America 2,041 3,160 5,717 11,170 EMEA 1,549 1,726 4,656 4,501 Other 939 451 2,529 991 Corporate 446 241 1,591 1,384 Consolidated $ 8,012 $ 8,244 $ 23,523 $ 41,480 ________________________ (1) Management reorganization to support our growth strategy. (2) Derivatives relate to hedge ineffectiveness on our natural gas contracts, as well as, mark-to-market adjustments on our natural gas contracts that have been de-designated and those for which we did not elect hedge accounting. (3) Product portfolio optimization relates to inventory reductions to simplify and improve our operations. |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value FASB ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. FASB ASC 820 establishes a fair value hierarchy that prioritizes the inputs used in measuring fair value into three broad levels as follows: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly. • Level 3 — Unobservable inputs based on our own assumptions. Fair Value at Fair Value at Asset / (Liability) (dollars in thousands) September 30, 2016 December 31, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Commodity futures natural gas contracts $ — $ 103 $ — $ 103 $ — $ (2,202 ) $ — $ (2,202 ) Currency contracts — (36 ) — (36 ) — 245 — 245 Interest rate swap — (5,416 ) — (5,416 ) — (2,378 ) — (2,378 ) Net derivative asset (liability) $ — $ (5,349 ) $ — $ (5,349 ) $ — $ (4,335 ) $ — $ (4,335 ) The fair values of our commodity futures natural gas contracts and currency contracts are determined using observable market inputs. The fair value of our interest rate swap is based on the market standard methodology of netting the discounted expected future variable cash receipts and the discounted future fixed cash payments. The variable cash receipts are based on an expectation of future interest rates derived from observed market interest rate forward curves. Since these inputs are observable in active markets over the terms that the instruments are held, the derivatives are classified as Level 2 in the hierarchy. We also evaluate Company and counterparty risk in determining fair values. The commodity futures natural gas contracts, interest rate swap and currency contracts are hedges of either recorded assets or liabilities or anticipated transactions. Changes in values of the underlying hedged assets and liabilities or anticipated transactions are not reflected in the above table. The total derivative position is recorded on the Condensed Consolidated Balance Sheets as follows: Asset / (Liability) (dollars in thousands) September 30, 2016 December 31, 2015 Prepaid and other current assets $ 135 $ 245 Derivative liability (2,293 ) (4,265 ) Other long-term liabilities (3,191 ) (315 ) Net derivative asset (liability) $ (5,349 ) $ (4,335 ) Financial instruments carried at cost on the Condensed Consolidated Balance Sheets, as well as the related fair values, are as follows: September 30, 2016 December 31, 2015 (dollars in thousands) Fair Value Hierarchy Level Carrying Amount Fair Value Carrying Amount Fair Value Term Loan B Level 2 $ 415,100 $ 416,138 $ 433,400 $ 425,815 The fair value of our Term Loan B has been calculated based on quoted market prices for the same or similar issues. The fair value of our other immaterial debt approximates carrying value at September 30, 2016 and December 31, 2015. The fair value of our cash and cash equivalents, accounts receivable and accounts payable approximate their carrying value due to their short term nature. |
Other Income
Other Income | 9 Months Ended |
Sep. 30, 2016 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense) | Other Income (Expense) Items included in other income (expense) in the Condensed Consolidated Statements of Operations are as follows: Three months ended September 30, Nine months ended September 30, (dollars in thousands) 2016 2015 2016 2015 Gain (loss) on currency transactions $ 348 $ (55 ) $ (376 ) $ 1,407 Hedge ineffectiveness 11 (42 ) 1,150 125 Other non-operating income (expense) (111 ) (299 ) 261 (255 ) Other income (expense) $ 248 $ (396 ) $ 1,035 $ 1,277 |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Legal Proceedings From time to time, we are identified as a "potentially responsible party" (PRP) under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA) and/or similar state laws that impose liability without regard to fault for costs and damages relating to the investigation and clean-up of contamination resulting from releases or threatened releases of hazardous substances. We are also subject to similar laws in some of the countries where our facilities are located. Our environmental, health and safety department monitors compliance with applicable laws on a global basis. On October 30, 2009, the United States Environmental Protection Agency ("U.S. EPA") designated Syracuse China Company ("Syracuse China"), our wholly-owned subsidiary, as one of eight PRPs with respect to the Lower Ley Creek sub-site of the Onondaga Lake Superfund site located near the ceramic dinnerware manufacturing facility that Syracuse China operated from 1995 to 2009 in Syracuse, New York. As a PRP, we may be required to pay a share of the costs of investigation and remediation of the Lower Ley Creek sub-site. U.S. EPA has completed its Remedial Investigation (RI), Feasibility Study (FS), Risk Assessment (RA) and Proposed Remedial Action Plan (PRAP). U.S. EPA issued its Record of Decision (RoD) on September 30, 2014. The RoD indicates that U.S. EPA's estimate of the undiscounted cost of remediation ranges between approximately $17.0 million (assuming local disposal of contaminated sediments is feasible) and approximately $24.8 million (assuming local disposal is not feasible). However, the RoD acknowledges that the final cost of the cleanup will depend upon the actual volume of contaminated material, the degree to which it is contaminated, and where the excavated soil and sediment is properly disposed. In connection with the General Motors Corporation bankruptcy, U.S. EPA recovered $22.0 million from Motors Liquidation Company (MLC), the successor to General Motors Corporation. If the cleanup costs do not exceed the amount recovered by U.S. EPA from MLC, Syracuse China may suffer no loss. If, and to the extent the cleanup costs exceed the amount recovered by U.S. EPA from MLC, it is not yet known whether other PRPs will be added to the current group of PRPs or how any excess costs may be allocated among the PRPs. On March 3, 2015, the EPA issued to the PRPs notices and requests to negotiate performance of the remedial design (RD) work. The notices contemplate that any agreement to perform the RD work would be memorialized in an Administrative Order on Consent (AOC). On July 14, 2016, the PRPs entered into an AOC to perform the RD work. The EPA and PRPs anticipate that the RD work will produce additional information from which the feasibility of a local disposal option and the cleanup costs can be better determined. The EPA has declined to advance the GM Settlement Funds for the RD work, instead conditioning use of those funds to reimburse for the RD work upon the successful completion of the RD work and the finalization of an AOC to perform the remedial action work. To the extent that Syracuse China has a liability with respect to the Lower Ley Creek sub-site, including without limitation costs to fund the RD work, and to the extent the liability arose prior to our 1995 acquisition of the Syracuse China assets, the liability would be subject to the indemnification provisions contained in the Asset Purchase Agreement between the Company and The Pfaltzgraff Co. (now known as TPC-York, Inc. ("TPC York")) and certain of its subsidiaries. Accordingly, Syracuse China has notified TPC York of its claim for indemnification under the Asset Purchase Agreement. In connection with the above proceedings, an estimated environmental liability of $0.9 million and $1.1 million has been recorded in other long term liabilities and a recoverable amount of $0.5 million and $0.6 million has been recorded in other long term assets in the Condensed Consolidated Balance Sheets at September 30, 2016 and December 31, 2015, respectively. Income of $0.1 million and expense of $0.1 million has been recorded in cost of sales in the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2015, respectively. Although we cannot predict the ultimate outcome of this proceeding, we believe that it will not have a material adverse impact on our financial condition, results of operations or liquidity. Income Taxes The Company and its subsidiaries are subject to examination by various countries' tax authorities. These examinations may lead to proposed or assessed adjustments to our taxes. Please refer to note 5, Income Taxes, for a detailed discussion on tax contingencies. |
Significant Accounting Polici21
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation [Policy Text Block] | Basis of Presentation The Condensed Consolidated Financial Statements include Libbey Inc. and its majority-owned subsidiaries (collectively, Libbey or the Company). Our fiscal year end is December 31 st . All material intercompany accounts and transactions have been eliminated. The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Condensed Consolidated Financial Statements and accompanying notes. Actual results could differ materially from management’s estimates. |
Revenue Recognition and Cost of Sales [Policy Text Block] | Condensed Consolidated Statements of Operations Net sales in our Condensed Consolidated Statements of Operations include revenue earned when products are shipped and title and risk of loss have passed to the customer. Revenue is recorded net of returns, discounts and incentives offered to customers. Cost of sales includes cost to manufacture and/or purchase products, warehouse, shipping and delivery costs and other costs. |
Foreign Currency Translation [Policy Text Block] | Foreign Currency Translation Assets and liabilities of non-U.S. subsidiaries that operate in a local currency environment, where that local currency is the functional currency, are translated to U.S. dollars at exchange rates in effect at the balance sheet date, with the resulting translation adjustments directly recorded to a separate component of accumulated other comprehensive loss. Income and expense accounts are translated at average exchange rates during the year. The effect of exchange rate changes on transactions denominated in currencies other than the functional currency is recorded in other income (expense). |
Income Taxes [Policy Text Block] | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred income tax assets and liabilities are recognized for estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax attribute carry-forwards. Deferred income tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. Financial Accounting Standards Board Accounting Standards Codification™ (FASB ASC) Topic 740, “Income Taxes,” requires that a valuation allowance be recorded when it is more likely than not that some portion or all of the deferred income tax assets will not be realized. Deferred income tax assets and liabilities are determined separately for each tax paying component in which we conduct our operations or otherwise incur taxable income or losses. See note 5 for further discussion. For interim tax reporting, we estimate our annual effective tax rate and apply it to our year-to-date ordinary income. Tax jurisdictions with a projected or year-to-date loss for which a tax benefit cannot be realized are excluded from the annualized effective tax rate. The tax effects of unusual or infrequently occurring items, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, are reported in the interim period in which they occur. |
Stock-Based Compensation [Policy Text Block] | Stock-Based Compensation Expense We account for stock-based compensation expense in accordance with FASB ASC Topic 718, “Compensation — Stock Compensation,” and FASB ASC Topic 505-50, “Equity — Equity-Based Payments to Non-Employees”. Stock-based compensation cost is measured based on the fair value of the equity instruments issued. FASB ASC Topics 718 and 505-50 apply to all of our outstanding unvested stock-based payment awards. |
New Accounting Standards [Policy Text Block] | New Accounting Standards In May 2014, the FASB issued Accounting Standards Update No. 2014-09, "Revenue From Contracts With Customers" (ASU 2014-09), which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. ASU 2014-09 is based on the principle that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to fulfill a contract. Entities have the option of using either a full retrospective or a modified retrospective approach for the adoption of the new standard. This update is effective for interim and annual reporting periods beginning after December 15, 2016; early adoption is not permitted. In August 2015, the FASB issued ASU 2015-14 which defers the effective date one year from January 1, 2017 to January 1, 2018, but early adoption as of January 1, 2017 is permitted. In March of 2016 the FASB issued ASU 2016-08, "Revenue From Contracts With Customers: Principal vs. Agent Considerations" (ASU 2016-08). ASU 2016-08 provides more detailed guidance to make the principal or agent determination and to determine when revenue should be recorded when a performance obligation is completed. In the second quarter of 2016, three additional revenue recognition amendments, ASU 2016-10, 2016-11 and 2016-12, were issued that become effective upon adoption of the new standard. We do not plan to early adopt and are still assessing the impact that these standards will have on our Condensed Consolidated Financial Statements. In August 2014, the FASB issued Accounting Standards Update No. 2014-15, "Presentation of Financial Statements-Going Concern" (ASU 2014-15), which establishes management’s responsibility, in connection with preparing financial statements for each annual and interim reporting period, to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern. ASU 2014-15 also provides guidance to determine whether to disclose information about relevant conditions and events when there is substantial doubt about an entity’s ability to continue as a going concern. This update is effective for the annual reporting period ending after December 15, 2016, and for interim and annual periods thereafter. Early application is permitted. We are currently evaluating the impact this guidance will have on our financial disclosures; however, as the guidance only impacts disclosure, the adoption of this guidance is not expected to have any impact on our balance sheet, results of operations or cash flows at December 31, 2016. In May 2015, the FASB issued Accounting Standards Update 2015-07, "Disclosures for Investments in Certain Entities that Calculate Net Asset Value Per Share (or its Equivalent)" (ASU 2015-07), which removes the requirement to categorize within the fair value hierarchy investments for which fair values are estimated using the net asset value practical expedient provided by FASB ASC Topic 820, Fair Value Measurement. Disclosures about investments in certain entities that calculate net asset value per share are limited under ASU 2015-07 to those investments for which the entity has elected to estimate the fair value using the net asset value practical expedient. ASU 2015-07 is effective for entities for fiscal years beginning after December 15, 2015 and interim periods within, with retrospective application to all periods presented. Early application is permitted. There is no impact on our 2016 interim financial statements. We are currently assessing the impact that this standard will have on our disclosures in our Consolidated Financial Statements at December 31, 2016. In July 2015, the FASB issued Accounting Standards Update No. 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory" (ASU 2015-11), which requires that inventory be measured at the lower of its cost or the estimated sale price, minus the costs of completing the sale, which the FASB calls the net realizable value. This update is effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption permitted. We do not expect this standard to have a material impact on our Condensed Consolidated Financial Statements. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, "Leases (Topic 842)" (ASU 2016-02), which requires a lessee to recognize assets and liabilities for leases with lease terms of more than 12 months on the balance sheet. Leases will be classified as either finance or operating leases, with classification affecting the pattern of expense recognition in the income statement. The new guidance also clarifies the definition of a lease and disclosure requirements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, with early application permitted. We are currently assessing the impact that this standard will have on our Condensed Consolidated Financial Statements. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" (ASU 2016-09). Areas for simplification in this update involve several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for interim and annual reporting periods beginning after December 15, 2016, with early application permitted. We are currently assessing the impact that this standard will have on our Condensed Consolidated Financial Statements. In June 2016, the FASB issued Accounting Standards Update No. 2016-13. "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" (ASU 2016-13). This standard introduces a new approach to estimating credit losses on certain types of financial instruments, including trade receivables, and modifies the impairment model for available-for-sale debt securities. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim period within those fiscal years, with early application permitted. We are currently assessing the impact that this standard will have on our Condensed Consolidated Financial Statements. In August 2016, the FASB issued Accounting Standards Update No. 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments" (ASU 2016-15). ASU 2016-15 addresses how certain cash receipts and cash payments are presented and classified in the Statement of Cash Flows. ASU 2016-15 is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted. We are currently assessing the impact that this standard will have on our Condensed Consolidated Financial Statements. |
Pension and Other Postretirement Plans, Pensions, Policy [Policy Text Block] | We have pension plans covering the majority of our employees. Benefits generally are based on compensation and service for salaried employees and job grade and length of service for hourly employees. In addition, we have an unfunded supplemental employee retirement plan (SERP) that covers certain salaried U.S.-based employees of Libbey hired before January 1, 2006. The U.S. pension plans cover the salaried U.S.-based employees of Libbey hired before January 1, 2006 and most hourly U.S.-based employees (excluding employees hired at Shreveport after 2008 and at Toledo after September 30, 2010). Effective January 1, 2013, we ceased annual company contribution credits to the cash balance accounts in our Libbey U.S. Salaried Pension Plan and SERP. The non-U.S. pension plans cover the employees of our wholly owned subsidiary in Mexico. The plan in Mexico is unfunded. |
Pension and Other Postretirement Plans, Nonpension Benefits, Policy [Policy Text Block] | We provide certain retiree health care and life insurance benefits covering our U.S. and Canadian salaried employees hired before January 1, 2004 and a majority of our union hourly employees (excluding employees hired at Shreveport after 2008 and at Toledo after September 30, 2010). Employees are generally eligible for benefits upon retirement and completion of a specified number of years of creditable service. Benefits for most hourly retirees are determined by collective bargaining. The U.S. non-pension postretirement plans cover the hourly and salaried U.S.-based employees of Libbey (excluding those mentioned above). The non-U.S. non-pension postretirement plans cover the retirees and active employees of Libbey who are located in Canada. The postretirement benefit plans are unfunded. |
Earnings Per Share [Policy Text Block] | When applicable, diluted shares outstanding includes the dilutive impact of restricted stock units. Diluted shares also include the impact of eligible employee stock options, which are calculated based on the average share price for each fiscal period using the treasury stock method. Under the treasury stock method, the tax-effected proceeds that hypothetically would be received from the exercise of all in-the-money options are assumed to be used to repurchase shares. |
Derivatives [Policy Text Block] | Derivatives We utilize derivative financial instruments to hedge certain interest rate risks associated with our long-term debt, commodity price risks associated with forecasted future natural gas requirements and foreign exchange rate risks associated with transactions denominated in a currency other than the U.S. dollar. These derivatives, except for the foreign currency contracts and the natural gas contracts used in our Mexican manufacturing facilities, qualify for hedge accounting since the hedges are highly effective, and we have designated and documented contemporaneously the hedging relationships involving these derivative instruments. While we intend to continue to meet the conditions for hedge accounting, if hedges do not qualify as highly effective (as is the case for natural gas contracts used in our Mexico manufacturing facility) or if we do not believe that forecasted transactions would occur, the changes in the fair value of the derivatives used as hedges would be reflected in our earnings. All of these contracts are accounted for under FASB ASC 815 “Derivatives and Hedging.” |
Segment Reporting [Policy Text Block] | Segments In the fourth quarter of 2015, we revised our reporting segments. Under the new structure, our U.S. and Canada glass tableware business is combined with our U.S. and Canada sourcing business in order to be consistent with the way we manage and report our other segments. Our reporting segments continue to align with our regionally focused organizational structure, which we believe enables us to better serve customers across the globe. We now report financial results for U.S. and Canada; Latin America; Europe, the Middle East and Africa (EMEA); and Other. Sales and segment EBIT continue to reflect end market reporting pursuant to which sales and related costs are included in segment EBIT based on the geographical destination of the sale. The revised 2015 segment results do not affect any previously reported consolidated financial results. Our three reportable segments are defined below. Our operating segment that does not meet the criteria to be a reportable segment is disclosed as Other. U.S. & Canada—includes sales of manufactured and sourced tableware having an end market destination in the U.S and Canada excluding glass products for Original Equipment Manufacturers (OEM), which remain in the Latin America segment. Latin America—includes primarily sales of manufactured and sourced glass tableware having an end market destination in Latin America including glass products for OEMs that have an end market destination outside of Latin America. EMEA—includes primarily sales of manufactured and sourced glass tableware having an end market destination in Europe, the Middle East and Africa. Other—includes primarily sales of manufactured and sourced glass tableware having an end market destination in Asia Pacific. Our measure of profit for our reportable segments is Segment Earnings before Interest and Taxes (Segment EBIT) and excludes amounts related to certain items we consider not representative of ongoing operations as well as certain retained corporate costs and other allocations that are not considered by management when evaluating performance. We use Segment EBIT, along with net sales and selected cash flow information, to evaluate performance and to allocate resources. Segment EBIT for reportable segments includes an allocation of some corporate expenses based on the costs of services performed. Certain activities not related to any particular reportable segment are reported within retained corporate costs. These costs include certain headquarter, administrative and facility costs, and other costs that are global in nature and are not allocable to the reporting segments. The accounting policies of the reportable segments are the same as those described in note 2. We do not have any customers who represent 10 percent or more of total sales. Inter-segment sales are consummated at arm’s length and are reflected at end market reporting below. |
Fair Value [Policy Text Block] | The fair values of our commodity futures natural gas contracts and currency contracts are determined using observable market inputs. The fair value of our interest rate swap is based on the market standard methodology of netting the discounted expected future variable cash receipts and the discounted future fixed cash payments. The variable cash receipts are based on an expectation of future interest rates derived from observed market interest rate forward curves. Since these inputs are observable in active markets over the terms that the instruments are held, the derivatives are classified as Level 2 in the hierarchy. We also evaluate Company and counterparty risk in determining fair values. The commodity futures natural gas contracts, interest rate swap and currency contracts are hedges of either recorded assets or liabilities or anticipated transactions. |
Significant Accounting Polici22
Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Stock-based compensation expense charged to the Condensed Consolidated Statements of Operations is as follows: Three months ended September 30, Nine months ended September 30, (dollars in thousands) 2016 2015 2016 2015 Stock-based compensation expense $ 1,011 $ 905 $ 4,334 $ 5,549 |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Balance Sheet Details [Abstract] | |
Schedule of Other Assets and Other Liabilities [Table Text Block] | The following table provides detail of selected balance sheet items: (dollars in thousands) September 30, 2016 December 31, 2015 Accounts receivable: Trade receivables $ 97,057 $ 91,324 Other receivables 1,490 3,055 Total accounts receivable, less allowances of $6,407 and $7,066 $ 98,547 $ 94,379 Inventories: Finished goods $ 173,357 $ 159,998 Work in process 1,581 1,183 Raw materials 4,585 4,944 Repair parts 10,790 10,763 Operating supplies 1,166 1,139 Total inventories, less loss provisions of $12,860 and $5,313 $ 191,479 $ 178,027 Accrued liabilities: Accrued incentives $ 31,470 $ 21,450 Other accrued liabilities 22,494 23,729 Total accrued liabilities $ 53,964 $ 45,179 |
Borrowings (Tables)
Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Borrowings consist of the following: (dollars in thousands) Interest Rate Maturity Date September 30, December 31, Borrowings under ABL Facility floating April 9, 2019 $ — $ — Term Loan B floating (1) April 9, 2021 415,100 433,400 AICEP Loan 0.00% January, 2017 to July 30, 2018 3,536 3,451 Total borrowings 418,636 436,851 Less — unamortized discount and finance fees 4,803 5,832 Total borrowings — net 413,833 431,019 Less — long term debt due within one year 5,049 4,747 Total long-term portion of borrowings — net $ 408,784 $ 426,272 ________________________ (1) - We have entered into an interest rate swap which effectively fixes a series of our future interest payments on a portion of the Term Loan B debt. See interest rate swap in note 8 for additional details. The Term Loan B floating interest rate was 3.75 percent at September 30, 2016 . |
Pension and Non-pension Postr25
Pension and Non-pension Postretirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Defined Benefit Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Net Benefit Costs [Table Text Block] | The components of our net pension expense, including the SERP, are as follows: Three months ended September 30, U.S. Plans Non-U.S. Plans Total (dollars in thousands) 2016 2015 2016 2015 2016 2015 Service cost $ 929 $ 1,091 $ 313 $ 741 $ 1,242 $ 1,832 Interest cost 3,740 3,678 663 1,085 4,403 4,763 Expected return on plan assets (5,757 ) (5,666 ) — (608 ) (5,757 ) (6,274 ) Amortization of unrecognized: Prior service cost 65 104 (53 ) (62 ) 12 42 Actuarial loss 1,068 1,823 412 400 1,480 2,223 Pension expense $ 45 $ 1,030 $ 1,335 $ 1,556 $ 1,380 $ 2,586 Nine months ended September 30, U.S. Plans Non-U.S. Plans Total (dollars in thousands) 2016 2015 2016 2015 2016 2015 Service cost $ 2,788 $ 3,274 $ 948 $ 2,251 $ 3,736 $ 5,525 Interest cost 11,222 11,036 2,005 3,295 13,227 14,331 Expected return on plan assets (17,272 ) (16,996 ) — (1,844 ) (17,272 ) (18,840 ) Amortization of unrecognized: Prior service cost 197 313 (160 ) (187 ) 37 126 Actuarial loss 3,204 5,468 817 1,215 4,021 6,683 Settlement charge 42 — 170 — 212 — Pension expense $ 181 $ 3,095 $ 3,780 $ 4,730 $ 3,961 $ 7,825 |
Non-Pension Postretirement Benefit Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Net Benefit Costs [Table Text Block] | The provision for our non-pension postretirement benefit expense consists of the following: Three months ended September 30, U.S. Plans Non-U.S. Plans Total (dollars in thousands) 2016 2015 2016 2015 2016 2015 Service cost $ 200 $ 214 $ — $ — $ 200 $ 214 Interest cost 652 634 11 10 663 644 Amortization of unrecognized: Prior service cost 35 35 — — 35 35 Actuarial loss / (gain) 21 148 (10 ) (19 ) 11 129 Non-pension postretirement benefit expense $ 908 $ 1,031 $ 1 $ (9 ) $ 909 $ 1,022 Nine months ended September 30, U.S. Plans Non-U.S. Plans Total (dollars in thousands) 2016 2015 2016 2015 2016 2015 Service cost $ 598 $ 641 $ 1 $ 1 $ 599 $ 642 Interest cost 1,956 1,903 35 39 1,991 1,942 Amortization of unrecognized: Prior service cost 105 105 — — 105 105 Actuarial loss / (gain) 61 444 (32 ) (43 ) 29 401 Non-pension postretirement benefit expense $ 2,720 $ 3,093 $ 4 $ (3 ) $ 2,724 $ 3,090 |
Net Income per Share of Commo26
Net Income per Share of Common Stock (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table sets forth the computation of basic and diluted earnings per share: Three months ended September 30, Nine months ended September 30, (dollars in thousands, except earnings per share) 2016 2015 2016 2015 Numerator for earnings per share: Net income that is available to common shareholders $ 2,909 $ 16,719 $ 12,322 $ 34,225 Denominator for basic earnings per share: Weighted average shares outstanding 21,894,017 21,796,172 21,869,922 21,816,323 Denominator for diluted earnings per share: Effect of stock options and restricted stock units 177,176 402,536 156,304 452,161 Adjusted weighted average shares and assumed conversions 22,071,193 22,198,708 22,026,226 22,268,484 Basic earnings per share $ 0.13 $ 0.77 $ 0.56 $ 1.57 Diluted earnings per share $ 0.13 $ 0.75 $ 0.56 $ 1.54 Shares excluded from diluted earnings per share due to: Inclusion would have been anti-dilutive (excluded from calculation) 605,032 127,258 619,058 97,951 |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Schedule of Derivative Assets and Liabilities at Fair Value | The following table provides the fair values of our derivative financial instruments for the periods presented: Asset Derivatives: (dollars in thousands) September 30, 2016 December 31, 2015 Derivatives designated as hedging instruments under FASB ASC 815: Balance Sheet Location Fair Value Balance Sheet Location Fair Value Natural gas contracts Prepaid and other current assets $ 60 Prepaid and other current assets $ — Total designated 60 — Derivatives not designated as hedging instruments under FASB ASC 815: Natural gas contracts Prepaid and other current assets 75 Prepaid and other current assets — Currency contracts Prepaid and other current assets — Prepaid and other current assets 245 Total undesignated 75 245 Total $ 135 $ 245 Liability Derivatives: (dollars in thousands) September 30, 2016 December 31, 2015 Derivatives designated as hedging instruments under FASB ASC 815: Balance Sheet Location Fair Value Balance Sheet Location Fair Value Natural gas contracts Derivative liability - current $ — Derivative liability - current $ 1,069 Natural gas contracts Other long-term liabilities 8 Other long-term liabilities 34 Interest rate contract Derivative liability - current 2,257 Derivative liability - current 2,132 Interest rate contract Other long-term liabilities 3,159 Other long-term liabilities 246 Total designated 5,424 3,481 Derivatives not designated as hedging instruments under FASB ASC 815: Currency contracts Derivative liability - current 36 Derivative liability - current — Natural gas contracts Derivative liability - current — Derivative liability - current 1,064 Natural gas contracts Other long-term liabilities 24 Other long-term liabilities 35 Total undesignated 60 1,099 Total $ 5,484 $ 4,580 |
Summary of the Effective Portion of Derivative Gain (Loss) Recognized in Other Comprehensive Income (Loss) | The following table provides a summary of the effective portion of derivative gain (loss) recognized in other comprehensive income (loss) from our interest rate swap: Three months ended September 30, Nine months ended September 30, (dollars in thousands) 2016 2015 2016 2015 Derivatives in Cash Flow Hedging relationships: Interest rate swap $ 6 $ (3,211 ) $ (4,816 ) $ (3,222 ) Total $ 6 $ (3,211 ) $ (4,816 ) $ (3,222 ) The following table provides a summary of the effective portion of derivative gain (loss) recognized in other comprehensive income (loss) from our natural gas contracts: Three months ended September 30, Nine months ended September 30, (dollars in thousands) 2016 2015 2016 2015 Derivatives in Cash Flow Hedging relationships: Natural gas contracts $ (35 ) $ (489 ) $ 59 $ (1,265 ) Total $ (35 ) $ (489 ) $ 59 $ (1,265 ) |
Reclassification out of Accumulated Other Comprehensive Income | The following table provides a summary of the effective portion of derivative gain (loss) reclassified from accumulated other comprehensive loss to the Condensed Consolidated Statements of Operations from our natural gas contracts: Three months ended September 30, Nine months ended September 30, (dollars in thousands) 2016 2015 2016 2015 Derivative: Location: Natural gas contracts Cost of sales $ (41 ) $ (448 ) $ (1,096 ) $ (1,468 ) Total impact on net income (loss) $ (41 ) $ (448 ) $ (1,096 ) $ (1,468 ) The following table provides a summary of the effective portion of derivative gain (loss) reclassified from accumulated other comprehensive income to the Condensed Consolidated Statements of Operations from our interest rate swap: Three months ended September 30, Nine months ended September 30, (dollars in thousands) 2016 2015 2016 2015 Derivative: Location: Interest rate swap Interest expense $ (767 ) $ — $ (1,778 ) $ — Total impact on net income (loss) $ (767 ) $ — $ (1,778 ) $ — |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | Gains (losses) on currency derivatives that were not designated as hedging instruments are recorded in other income (expense) as follows: Three months ended September 30, Nine months ended September 30, (dollars in thousands) 2016 2015 2016 2015 Derivative: Location: Currency contracts Other income (expense) $ 106 $ 135 $ (281 ) $ (152 ) Total $ 106 $ 135 $ (281 ) $ (152 ) |
Natural Gas Contracts | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following table provides a summary of the gain (loss) recognized in other income (expense) in the Condensed Consolidated Statements of Operations from our natural gas contracts: Three months ended September 30, Nine months ended September 30, (dollars in thousands) 2016 2015 2016 2015 De-designated contracts $ — $ 180 $ — $ 584 Contracts where hedge accounting was not elected 11 (222 ) 1,150 (459 ) Total $ 11 $ (42 ) $ 1,150 $ 125 |
Accumulated Other Comprehensi28
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Accumulated other comprehensive loss, net of tax, is as follows: Three months ended September 30, 2016 (dollars in thousands) Foreign Currency Translation Derivative Instruments Pension and Other Postretirement Benefits Accumulated Other Balance June 30, 2016 $ (22,587 ) $ (3,561 ) $ (91,432 ) $ (117,580 ) Other comprehensive income (loss) 407 (29 ) — 378 Currency impact — — (31 ) (31 ) Amounts reclassified from accumulated other comprehensive income (loss): Amortization of actuarial loss (1) — — 1,491 1,491 Amortization of prior service cost (1) — — 47 47 Cost of sales — 41 — 41 Interest expense — 767 — 767 Current-period other comprehensive income (loss) 407 779 1,507 2,693 Tax effect 78 (278 ) (444 ) (644 ) Balance on September 30, 2016 $ (22,102 ) $ (3,060 ) $ (90,369 ) $ (115,531 ) Nine months ended September 30, 2016 (dollars in thousands) Foreign Currency Translation Derivative Instruments Pension and Other Postretirement Benefits Accumulated Other Balance on December 31, 2015 $ (22,913 ) $ (1,860 ) $ (95,459 ) $ (120,232 ) Other comprehensive income (loss) 459 (4,757 ) 2,755 (1,543 ) Currency impact — — 481 481 Amounts reclassified from accumulated other comprehensive income (loss): Amortization of actuarial loss (1) — — 4,050 4,050 Amortization of prior service cost (1) — — 142 142 Cost of sales — 1,096 — 1,096 Interest expense — 1,778 — 1,778 Current-period other comprehensive income (loss) 459 (1,883 ) 7,428 6,004 Tax effect 352 683 (2,338 ) (1,303 ) Balance on September 30, 2016 $ (22,102 ) $ (3,060 ) $ (90,369 ) $ (115,531 ) Three months ended September 30, 2015 (dollars in thousands) Foreign Currency Translation Derivative Instruments Pension and Other Postretirement Benefits Accumulated Other Balance on June 30, 2015 $ (17,471 ) $ (295 ) $ (116,239 ) $ (134,005 ) Other comprehensive income (loss) (1,265 ) (3,700 ) — (4,965 ) Currency impact — — 709 709 Amounts reclassified from accumulated other comprehensive income (loss): Amortization of actuarial loss (1) — — 2,352 2,352 Amortization of prior service cost (1) — — 77 77 Cost of sales — 507 — 507 Current-period other comprehensive income (loss) (1,265 ) (3,193 ) 3,138 (1,320 ) Tax effect — (19 ) (399 ) (418 ) Balance on September 30, 2015 $ (18,736 ) $ (3,507 ) $ (113,500 ) $ (135,743 ) Nine months ended September 30, 2015 (dollars in thousands) Foreign Currency Translation Derivative Instruments Pension and Other Postretirement Benefits Accumulated Other Balance on December 31, 2014 $ (9,162 ) $ (625 ) $ (128,660 ) $ (138,447 ) Other comprehensive income (loss) (9,574 ) (4,487 ) 5,394 (8,667 ) Currency impact — — 3,122 3,122 Amounts reclassified from accumulated other comprehensive income (loss): Amortization of actuarial loss (1) — — 7,084 7,084 Amortization of prior service cost (1) — — 231 231 Cost of sales — 1,666 — 1,666 Current-period other comprehensive income (loss) (9,574 ) (2,821 ) 15,831 3,436 Tax effect — (61 ) (671 ) (732 ) Balance on September 30, 2015 $ (18,736 ) $ (3,507 ) $ (113,500 ) $ (135,743 ) ___________________________ (1) These accumulated other comprehensive income components are included in the computation of net periodic benefit cost within the cost of sales and selling, general and administrative expenses on the Condensed Consolidated Statements of Operations. |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Reconciliation from Segment Totals to Consolidated [Table Text Block] | Three months ended September 30, Nine months ended September 30, (dollars in thousands) 2016 2015 2016 2015 Net Sales: U.S. & Canada $ 119,345 $ 120,600 $ 358,613 $ 357,954 Latin America 40,149 42,372 114,988 126,838 EMEA 30,147 30,572 88,043 91,207 Other 7,232 8,240 25,938 27,201 Consolidated $ 196,873 $ 201,784 $ 587,582 $ 603,200 Segment EBIT: U.S. & Canada $ 19,501 $ 20,842 $ 57,740 $ 57,017 Latin America 1,944 6,280 14,084 18,371 EMEA (660 ) 254 (1,702 ) 1,274 Other (379 ) 905 898 3,851 Total Segment EBIT $ 20,406 $ 28,281 $ 71,020 $ 80,513 Reconciliation of Segment EBIT to Net Income: Segment EBIT $ 20,406 $ 28,281 $ 71,020 $ 80,513 Retained corporate costs (6,925 ) (7,969 ) (20,699 ) (26,626 ) Pension settlement — — (212 ) — Environmental obligation (note 13) — 100 — (123 ) Reorganization charges (1) — (1,176 ) — (4,191 ) Derivatives (2) 11 (42 ) 1,150 125 Product portfolio optimization (3) — — (6,784 ) — Executive terminations 98 — (4,521 ) (235 ) Interest expense (5,231 ) (4,701 ) (15,629 ) (13,762 ) (Provision) benefit for income taxes (5,450 ) 2,226 (12,003 ) (1,476 ) Net income $ 2,909 $ 16,719 $ 12,322 $ 34,225 Depreciation & Amortization: U.S. & Canada $ 2,883 $ 3,010 $ 9,718 $ 8,789 Latin America 4,667 3,662 13,725 10,377 EMEA 1,885 2,131 7,660 6,445 Other 1,325 1,462 4,162 4,434 Corporate 474 368 1,404 1,241 Consolidated $ 11,234 $ 10,633 $ 36,669 $ 31,286 Capital Expenditures: U.S. & Canada $ 3,037 $ 2,666 $ 9,030 $ 23,434 Latin America 2,041 3,160 5,717 11,170 EMEA 1,549 1,726 4,656 4,501 Other 939 451 2,529 991 Corporate 446 241 1,591 1,384 Consolidated $ 8,012 $ 8,244 $ 23,523 $ 41,480 ________________________ (1) Management reorganization to support our growth strategy. (2) Derivatives relate to hedge ineffectiveness on our natural gas contracts, as well as, mark-to-market adjustments on our natural gas contracts that have been de-designated and those for which we did not elect hedge accounting. (3) Product portfolio optimization relates to inventory reductions to simplify and improve our operations. |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | Fair Value at Fair Value at Asset / (Liability) (dollars in thousands) September 30, 2016 December 31, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Commodity futures natural gas contracts $ — $ 103 $ — $ 103 $ — $ (2,202 ) $ — $ (2,202 ) Currency contracts — (36 ) — (36 ) — 245 — 245 Interest rate swap — (5,416 ) — (5,416 ) — (2,378 ) — (2,378 ) Net derivative asset (liability) $ — $ (5,349 ) $ — $ (5,349 ) $ — $ (4,335 ) $ — $ (4,335 ) |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The total derivative position is recorded on the Condensed Consolidated Balance Sheets as follows: Asset / (Liability) (dollars in thousands) September 30, 2016 December 31, 2015 Prepaid and other current assets $ 135 $ 245 Derivative liability (2,293 ) (4,265 ) Other long-term liabilities (3,191 ) (315 ) Net derivative asset (liability) $ (5,349 ) $ (4,335 ) |
Fair Value Disclosures, Carrying Value and Estimated Fair Value of Debt Instruments [Table Text Block] | Financial instruments carried at cost on the Condensed Consolidated Balance Sheets, as well as the related fair values, are as follows: September 30, 2016 December 31, 2015 (dollars in thousands) Fair Value Hierarchy Level Carrying Amount Fair Value Carrying Amount Fair Value Term Loan B Level 2 $ 415,100 $ 416,138 $ 433,400 $ 425,815 |
Other Income (Tables)
Other Income (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income (Expense) [Table Text Block] | Items included in other income (expense) in the Condensed Consolidated Statements of Operations are as follows: Three months ended September 30, Nine months ended September 30, (dollars in thousands) 2016 2015 2016 2015 Gain (loss) on currency transactions $ 348 $ (55 ) $ (376 ) $ 1,407 Hedge ineffectiveness 11 (42 ) 1,150 125 Other non-operating income (expense) (111 ) (299 ) 261 (255 ) Other income (expense) $ 248 $ (396 ) $ 1,035 $ 1,277 |
Description of the Business (De
Description of the Business (Details) | Sep. 30, 2016plantcountry |
Production Operations [Member] | |
Description of Business [Line Items] | |
Number of countries in which entity operates | 5 |
Sales Operations [Member] | Minimum [Member] | |
Description of Business [Line Items] | |
Number of countries in which entity operates | 100 |
United States | |
Description of Business [Line Items] | |
Number of glass tableware manufacturing plants | plant | 2 |
Significant Accounting Polici33
Significant Accounting Policies (Stock-based Compensation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accounting Policies [Abstract] | ||||
Stock-based compensation expense | $ 1,011 | $ 905 | $ 4,334 | $ 5,549 |
Balance Sheet Details (Details)
Balance Sheet Details (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Accounts receivable: | ||
Accounts receivable | $ 98,547 | $ 94,379 |
Allowance for doubtful accounts | 6,407 | 7,066 |
Inventories: | ||
Finished goods | 173,357 | 159,998 |
Work in process | 1,581 | 1,183 |
Raw materials | 4,585 | 4,944 |
Repair parts | 10,790 | 10,763 |
Operating supplies | 1,166 | 1,139 |
Total inventories, less loss provisions of $12,860 and $5,313 | 191,479 | 178,027 |
Inventory loss provisions | 12,860 | 5,313 |
Accrued liabilities: | ||
Accrued incentives | 31,470 | 21,450 |
Other accrued liabilities | 22,494 | 23,729 |
Total accrued liabilities | 53,964 | 45,179 |
Trade receivables | ||
Accounts receivable: | ||
Accounts receivable | 97,057 | 91,324 |
Other receivables | ||
Accounts receivable: | ||
Accounts receivable | $ 1,490 | $ 3,055 |
Borrowings (Debt Schedule) (Det
Borrowings (Debt Schedule) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Total borrowings | $ 418,636 | $ 436,851 | |
Less - unamortized discount and finance fees | 4,803 | 5,832 | |
Total borrowings -- net | 413,833 | 431,019 | |
Less -- long term debt due within one year | 5,049 | 4,747 | |
Total long-term portion of borrowings -- net | 408,784 | 426,272 | |
Subsidiaries, Libbey Glass and Libbey Europe [Member] | ABL Facility [Member] | Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Total borrowings | 0 | 0 | |
Subsidiary, Libbey Glass [Member] | Senior Loans [Member] | |||
Debt Instrument [Line Items] | |||
Total borrowings | [1] | $ 415,100 | 433,400 |
Interest rate | 3.75% | ||
Subsidiary, Libbey Portugal [Member] | AICEP Loan [Member] | Loans Payable [Member] | |||
Debt Instrument [Line Items] | |||
Total borrowings | $ 3,536 | $ 3,451 | |
Interest rate | 0.00% | ||
[1] | We have entered into an interest rate swap which effectively fixes a series of our future interest payments on a portion of the Term Loan B debt. See interest rate swap in note 8 for additional details. The Term Loan B floating interest rate was 3.75 percent at September 30, 2016. |
Borrowings (ABL Credit Agreemen
Borrowings (ABL Credit Agreement Narrative) (Details) - Subsidiaries, Libbey Glass and Libbey Europe [Member] - ABL Facility [Member] - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Borrowing base, amount of rent reserves offset | $ 0.4 | |
Line of credit facility, maximum borrowing capacity | 100 | |
Line of credit facility, remaining borrowing capacity | 92.4 | $ 91 |
Letter of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | 30 | |
Line of credit facility, amount outstanding | $ 7 |
Income Taxes Income Taxes (Deta
Income Taxes Income Taxes (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Aug. 31, 2016 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Effective income tax rate, continuing operations | 49.30% | 4.10% | |
Unrecognized tax benefits | 9.70% | ||
Permanent adjustments | 9.00% | 7.80% | |
Valuation allowance | 7.70% | (12.50%) | |
Foreign withholding taxes | 4.40% | 7.70% | |
Impact of foreign exchange | (15.40%) | (21.00%) | |
Foreign income tax rate differential | (7.70%) | ||
Mexican Tax Authority [Member] | Tax Year 2010 [Member] | |||
Income Tax Contingency [Line Items] | |||
Tax assessment | $ 157 | ||
Mexico, Pesos | Mexican Tax Authority [Member] | Tax Year 2010 [Member] | |||
Income Tax Contingency [Line Items] | |||
Tax assessment | $ 3,000 |
Pension and Non-pension Postr38
Pension and Non-pension Postretirement Benefits (Net Benefit Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Defined Benefit Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 1,242 | $ 1,832 | $ 3,736 | $ 5,525 |
Interest cost | 4,403 | 4,763 | 13,227 | 14,331 |
Expected return on plan assets | (5,757) | (6,274) | (17,272) | (18,840) |
Amortization of unrecognized: | ||||
Prior service cost | 12 | 42 | 37 | 126 |
Actuarial loss / (gain) | 1,480 | 2,223 | 4,021 | 6,683 |
Settlement Charge | 212 | 0 | ||
Pension expense or non-pension postretirement benefit expense | 1,380 | 2,586 | 3,961 | 7,825 |
Defined Benefit Plan, Contributions [Abstract] | ||||
Employer contributions made to defined benefit plans | 700 | 3,100 | ||
Estimated employer contributions to defined benefit plans in remainder of 2016 | 1,200 | |||
U.S. Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 929 | 1,091 | 2,788 | 3,274 |
Interest cost | 3,740 | 3,678 | 11,222 | 11,036 |
Expected return on plan assets | (5,757) | (5,666) | (17,272) | (16,996) |
Amortization of unrecognized: | ||||
Prior service cost | 65 | 104 | 197 | 313 |
Actuarial loss / (gain) | 1,068 | 1,823 | 3,204 | 5,468 |
Settlement Charge | 42 | 0 | ||
Pension expense or non-pension postretirement benefit expense | 45 | 1,030 | 181 | 3,095 |
Non-U.S. Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 313 | 741 | 948 | 2,251 |
Interest cost | 663 | 1,085 | 2,005 | 3,295 |
Expected return on plan assets | 0 | (608) | 0 | (1,844) |
Amortization of unrecognized: | ||||
Prior service cost | (53) | (62) | (160) | (187) |
Actuarial loss / (gain) | 412 | 400 | 817 | 1,215 |
Settlement Charge | 170 | 0 | ||
Pension expense or non-pension postretirement benefit expense | 1,335 | 1,556 | 3,780 | 4,730 |
Non-Pension Postretirement Benefit Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 200 | 214 | 599 | 642 |
Interest cost | 663 | 644 | 1,991 | 1,942 |
Amortization of unrecognized: | ||||
Prior service cost | 35 | 35 | 105 | 105 |
Actuarial loss / (gain) | 11 | 129 | 29 | 401 |
Pension expense or non-pension postretirement benefit expense | 909 | 1,022 | 2,724 | 3,090 |
Defined Benefit Plan, Contributions [Abstract] | ||||
Employer contributions made to defined benefit plans | 900 | 2,700 | ||
Estimated employer contributions to defined benefit plans in year 2016 | 4,000 | |||
U.S. Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 200 | 214 | 598 | 641 |
Interest cost | 652 | 634 | 1,956 | 1,903 |
Amortization of unrecognized: | ||||
Prior service cost | 35 | 35 | 105 | 105 |
Actuarial loss / (gain) | 21 | 148 | 61 | 444 |
Pension expense or non-pension postretirement benefit expense | 908 | 1,031 | 2,720 | 3,093 |
Non-U.S. Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 0 | 1 | 1 |
Interest cost | 11 | 10 | 35 | 39 |
Amortization of unrecognized: | ||||
Prior service cost | 0 | 0 | 0 | 0 |
Actuarial loss / (gain) | (10) | (19) | (32) | (43) |
Pension expense or non-pension postretirement benefit expense | $ 1 | $ (9) | $ 4 | $ (3) |
Net Income per Share of Commo39
Net Income per Share of Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Numerator for earnings per share: | ||||
Net income that is available to common shareholders | $ 2,909 | $ 16,719 | $ 12,322 | $ 34,225 |
Denominator for basic earnings per share: | ||||
Weighted average shares outstanding | 21,894,017 | 21,796,172 | 21,869,922 | 21,816,323 |
Denominator for diluted earnings per share: | ||||
Effect of stock options and restricted stock units | 177,176 | 402,536 | 156,304 | 452,161 |
Adjusted weighted average shares and assumed conversions | 22,071,193 | 22,198,708 | 22,026,226 | 22,268,484 |
Basic earnings per share | $ 0.13 | $ 0.77 | $ 0.56 | $ 1.57 |
Diluted earnings per share | $ 0.13 | $ 0.75 | $ 0.56 | $ 1.54 |
Inclusion would have been anti-dilutive (excluded from calculation) | ||||
Shares excluded from diluted earnings per share due to: | ||||
Antidilutive securities excluded from diluted earnings per share | 605,032 | 127,258 | 619,058 | 97,951 |
Derivatives (Fair Value of Deri
Derivatives (Fair Value of Derivative Assets and Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | $ 135 | $ 245 |
Fair value, derivative liability | 5,484 | 4,580 |
Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 60 | 0 |
Fair value, derivative liability | 5,424 | 3,481 |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 75 | 245 |
Fair value, derivative liability | 60 | 1,099 |
Currency contracts [Member] | Not Designated as Hedging Instrument [Member] | Prepaid and other current assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 0 | 245 |
Currency contracts [Member] | Not Designated as Hedging Instrument [Member] | Derivative Liability, Current [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | 36 | 0 |
Natural Gas Contracts | Designated as Hedging Instrument [Member] | Prepaid and other current assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 60 | 0 |
Natural Gas Contracts | Designated as Hedging Instrument [Member] | Derivative Liability, Current [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | 0 | 1,069 |
Natural Gas Contracts | Designated as Hedging Instrument [Member] | Other Long-Term Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | 8 | 34 |
Natural Gas Contracts | Not Designated as Hedging Instrument [Member] | Prepaid and other current assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 75 | 0 |
Natural Gas Contracts | Not Designated as Hedging Instrument [Member] | Derivative Liability, Current [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | 0 | 1,064 |
Natural Gas Contracts | Not Designated as Hedging Instrument [Member] | Other Long-Term Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | 24 | 35 |
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Derivative Liability, Current [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | 2,257 | 2,132 |
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Other Long-Term Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | $ 3,159 | $ 246 |
Derivatives (Narrative - Commod
Derivatives (Narrative - Commodity Future Contracts) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016USD ($)MMBTU | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)MMBTU | Sep. 30, 2015USD ($) | Dec. 31, 2015MMBTU | |
Derivative [Line Items] | |||||
Gain (loss) on contracts where hedge accounting was not elected | $ 106 | $ 135 | $ (281) | $ (152) | |
Cash Flow Hedging [Member] | Natural Gas Contracts | |||||
Derivative [Line Items] | |||||
Forecast of commodity requirements, maximum length of time used | 18 months | ||||
Natural gas contracts, notional amounts (in millions of BTUs) | MMBTU | 2,510,000 | 2,510,000 | 3,000,000 | ||
Derivative, Additional Cash Paid on Settlement of Hedge | $ 100 | 1,000 | $ 2,300 | 3,200 | |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 100 | ||||
Minimum [Member] | Cash Flow Hedging [Member] | Natural Gas Contracts | |||||
Derivative [Line Items] | |||||
Forecast of anticipated requirements, percentage of forecast eligible for hedging | 40.00% | 40.00% | |||
Maximum [Member] | Cash Flow Hedging [Member] | Natural Gas Contracts | |||||
Derivative [Line Items] | |||||
Forecast of anticipated requirements, percentage of forecast eligible for hedging | 70.00% | 70.00% | |||
Other Income (Expense) [Member] | Cash Flow Hedging [Member] | Natural Gas Contracts | |||||
Derivative [Line Items] | |||||
Gain (loss) on contracts where hedge accounting was not elected | $ 11 | $ (222) | $ 1,150 | $ (459) |
Derivatives (Effective Portion
Derivatives (Effective Portion of Derivative Gain Loss) (Details) - Designated as Hedging Instrument [Member] - Cash Flow Hedging [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Effective portion of derivative gain (loss) recognized in other comprehensive income (loss) | $ (35) | $ (489) | $ 59 | $ (1,265) |
Effective portion of derivative gain (loss) reclassified from accumulated other comprehensive loss into income | (41) | (448) | (1,096) | (1,468) |
Natural Gas Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Effective portion of derivative gain (loss) recognized in other comprehensive income (loss) | (35) | (489) | 59 | (1,265) |
Natural Gas Contracts | Cost of Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Effective portion of derivative gain (loss) reclassified from accumulated other comprehensive loss into income | $ (41) | $ (448) | $ (1,096) | $ (1,468) |
Derivatives (Natural Gas Gain L
Derivatives (Natural Gas Gain Loss Included in Other Income and Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Derivative [Line Items] | ||||
Gain (loss) on contracts where hedge accounting was not elected | $ 106 | $ 135 | $ (281) | $ (152) |
Other Income (Expense) [Member] | ||||
Derivative [Line Items] | ||||
Gain (loss) on derivative, net | 11 | (42) | 1,150 | 125 |
Natural Gas Contracts | Other Income (Expense) [Member] | Cash Flow Hedging [Member] | ||||
Derivative [Line Items] | ||||
Gain (loss) on contracts where hedge accounting was not elected | 11 | (222) | 1,150 | (459) |
Natural Gas Contracts | De-designated contracts [Member] | Other Income (Expense) [Member] | Cash Flow Hedging [Member] | ||||
Derivative [Line Items] | ||||
Gain (loss) on derivative, net | $ 0 | $ 180 | $ 0 | $ 584 |
Derivatives (Interest Rate Swap
Derivatives (Interest Rate Swap) (Details) - Interest Rate Swap - Fixed [Member] - Cash Flow Hedging [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Apr. 01, 2015 | |
Derivative [Line Items] | |||||
Effective portion of derivative gain (loss) recognized in other comprehensive income (loss) | $ 6 | $ (3,211) | $ (4,816) | $ (3,222) | |
Interest Expense [Member] | |||||
Derivative [Line Items] | |||||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | (2,300) | ||||
Effective portion of derivative gain (loss) reclassified from accumulated other comprehensive loss into income | $ (767) | $ 0 | $ (1,778) | $ 0 | |
Senior Loans [Member] | |||||
Derivative [Line Items] | |||||
Derivative, Notional Amount | $ 220,000 | ||||
Derivative, Fixed Interest Rate | 4.85% |
Derivatives (Currency Contracts
Derivatives (Currency Contracts) (Details) $ in Thousands, CAD in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016CAD | Dec. 31, 2015CAD | |
Derivative [Line Items] | ||||||
Gain (loss) on derivatives not designated as hedging instruments | $ 106 | $ 135 | $ (281) | $ (152) | ||
Other Income (Expense) [Member] | Currency contracts [Member] | ||||||
Derivative [Line Items] | ||||||
Gain (loss) on derivatives not designated as hedging instruments | $ 106 | $ 135 | $ (281) | $ (152) | ||
Not Designated as Hedging Instrument [Member] | Currency contracts [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative, Notional Amount | CAD | CAD 3.9 | CAD 6.2 |
Accumulated Other Comprehensi46
Accumulated Other Comprehensive Income (Loss) (Schedule of AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Change in Accumulated Other Comprehensive Loss [Roll Forward] | |||||
Beginning balance | $ (117,580) | $ (134,005) | $ (120,232) | $ (138,447) | |
Other comprehensive income (loss) | 378 | (4,965) | (1,543) | (8,667) | |
Currency impact | (31) | 709 | 481 | 3,122 | |
Amounts reclassified from accumulated other comprehensive income (loss): | |||||
Amortization of actuarial loss (1) | [1] | 1,491 | 2,352 | 4,050 | 7,084 |
Amortization of prior service cost (1) | [1] | 47 | 77 | 142 | 231 |
Cost of sales | 41 | 507 | 1,096 | 1,666 | |
Interest expense | 767 | 1,778 | |||
Current-period other comprehensive income (loss) | 2,693 | (1,320) | 6,004 | 3,436 | |
Tax effect | (644) | (418) | (1,303) | (732) | |
Ending balance | (115,531) | (135,743) | (115,531) | (135,743) | |
Foreign Currency Translation [Member] | |||||
Change in Accumulated Other Comprehensive Loss [Roll Forward] | |||||
Beginning balance | (22,587) | (17,471) | (22,913) | (9,162) | |
Other comprehensive income (loss) | 407 | (1,265) | 459 | (9,574) | |
Amounts reclassified from accumulated other comprehensive income (loss): | |||||
Current-period other comprehensive income (loss) | 407 | (1,265) | 459 | (9,574) | |
Tax effect | 78 | 0 | 352 | 0 | |
Ending balance | (22,102) | (18,736) | (22,102) | (18,736) | |
Derivative Instruments [Member] | |||||
Change in Accumulated Other Comprehensive Loss [Roll Forward] | |||||
Beginning balance | (3,561) | (295) | (1,860) | (625) | |
Other comprehensive income (loss) | (29) | (3,700) | (4,757) | (4,487) | |
Amounts reclassified from accumulated other comprehensive income (loss): | |||||
Cost of sales | 41 | 507 | 1,096 | 1,666 | |
Interest expense | 767 | 1,778 | |||
Current-period other comprehensive income (loss) | 779 | (3,193) | (1,883) | (2,821) | |
Tax effect | (278) | (19) | 683 | (61) | |
Ending balance | (3,060) | (3,507) | (3,060) | (3,507) | |
Pension and Other Postretirement Benefits [Member] | |||||
Change in Accumulated Other Comprehensive Loss [Roll Forward] | |||||
Beginning balance | (91,432) | (116,239) | (95,459) | (128,660) | |
Other comprehensive income (loss) | 0 | 0 | 2,755 | 5,394 | |
Currency impact | (31) | 709 | 481 | 3,122 | |
Amounts reclassified from accumulated other comprehensive income (loss): | |||||
Amortization of actuarial loss (1) | [1] | 1,491 | 2,352 | 4,050 | 7,084 |
Amortization of prior service cost (1) | [1] | 47 | 77 | 142 | 231 |
Current-period other comprehensive income (loss) | 1,507 | 3,138 | 7,428 | 15,831 | |
Tax effect | (444) | (399) | (2,338) | (671) | |
Ending balance | $ (90,369) | $ (113,500) | $ (90,369) | $ (113,500) | |
[1] | These accumulated other comprehensive income components are included in the computation of net periodic benefit cost within the cost of sales and selling, general and administrative expenses on the Condensed Consolidated Statements of Operations. |
Segments (Details)
Segments (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)segment | Sep. 30, 2015USD ($) | ||
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | segment | 3 | ||||
Net Sales: | |||||
Net sales | $ 196,873 | $ 201,784 | $ 587,582 | $ 603,200 | |
Segment EBIT: | |||||
Segment EBIT | 20,406 | 28,281 | 71,020 | 80,513 | |
Reconciliation of Segment EBIT to Net Income: | |||||
Retained corporate costs | (6,925) | (7,969) | (20,699) | (26,626) | |
Pension settlement | 0 | 0 | (212) | 0 | |
Environmental obligation (note 13) | 0 | 100 | 0 | (123) | |
Reorganization charges (1) | [1] | 0 | (1,176) | 0 | (4,191) |
Derivatives (2) | [2] | 11 | (42) | 1,150 | 125 |
Product portfolio optimization (3) | [3] | 0 | 0 | (6,784) | 0 |
Executive terminations | 98 | 0 | (4,521) | (235) | |
Interest expense | (5,231) | (4,701) | (15,629) | (13,762) | |
(Provision) benefit for income taxes | (5,450) | 2,226 | (12,003) | (1,476) | |
Net income | 2,909 | 16,719 | 12,322 | 34,225 | |
Depreciation & Amortization: | |||||
Depreciation and amortization | 11,234 | 10,633 | 36,669 | 31,286 | |
Capital Expenditures: | |||||
Capital Expenditures | 8,012 | 8,244 | 23,523 | 41,480 | |
United States & Canada | |||||
Net Sales: | |||||
Net sales | 119,345 | 120,600 | 358,613 | 357,954 | |
Segment EBIT: | |||||
Segment EBIT | 19,501 | 20,842 | 57,740 | 57,017 | |
Depreciation & Amortization: | |||||
Depreciation and amortization | 2,883 | 3,010 | 9,718 | 8,789 | |
Capital Expenditures: | |||||
Capital Expenditures | 3,037 | 2,666 | 9,030 | 23,434 | |
Latin America | |||||
Net Sales: | |||||
Net sales | 40,149 | 42,372 | 114,988 | 126,838 | |
Segment EBIT: | |||||
Segment EBIT | 1,944 | 6,280 | 14,084 | 18,371 | |
Depreciation & Amortization: | |||||
Depreciation and amortization | 4,667 | 3,662 | 13,725 | 10,377 | |
Capital Expenditures: | |||||
Capital Expenditures | 2,041 | 3,160 | 5,717 | 11,170 | |
EMEA | |||||
Net Sales: | |||||
Net sales | 30,147 | 30,572 | 88,043 | 91,207 | |
Segment EBIT: | |||||
Segment EBIT | (660) | 254 | (1,702) | 1,274 | |
Depreciation & Amortization: | |||||
Depreciation and amortization | 1,885 | 2,131 | 7,660 | 6,445 | |
Capital Expenditures: | |||||
Capital Expenditures | 1,549 | 1,726 | 4,656 | 4,501 | |
Other Segments | |||||
Net Sales: | |||||
Net sales | 7,232 | 8,240 | 25,938 | 27,201 | |
Segment EBIT: | |||||
Segment EBIT | (379) | 905 | 898 | 3,851 | |
Depreciation & Amortization: | |||||
Depreciation and amortization | 1,325 | 1,462 | 4,162 | 4,434 | |
Capital Expenditures: | |||||
Capital Expenditures | 939 | 451 | 2,529 | 991 | |
Corporate | |||||
Depreciation & Amortization: | |||||
Depreciation and amortization | 474 | 368 | 1,404 | 1,241 | |
Capital Expenditures: | |||||
Capital Expenditures | $ 446 | $ 241 | $ 1,591 | $ 1,384 | |
[1] | Management reorganization to support our growth strategy. | ||||
[2] | Derivatives relate to hedge ineffectiveness on our natural gas contracts, as well as, mark-to-market adjustments on our natural gas contracts that have been de-designated and those for which we did not elect hedge accounting. | ||||
[3] | Product portfolio optimization relates to inventory reductions to simplify and improve our operations. |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value of Financial Instruments | ||
Net derivative asset (liability) | $ (5,349) | $ (4,335) |
Fair Value, Measurements, Recurring [Member] | Level 1 | ||
Fair Value of Financial Instruments | ||
Net derivative asset (liability) | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 2 | ||
Fair Value of Financial Instruments | ||
Net derivative asset (liability) | (5,349) | (4,335) |
Fair Value, Measurements, Recurring [Member] | Level 3 | ||
Fair Value of Financial Instruments | ||
Net derivative asset (liability) | 0 | 0 |
Commodity futures natural gas contracts | Fair Value, Measurements, Recurring [Member] | Level 1 | ||
Fair Value of Financial Instruments | ||
Net derivative asset (liability) | 0 | 0 |
Commodity futures natural gas contracts | Fair Value, Measurements, Recurring [Member] | Level 2 | ||
Fair Value of Financial Instruments | ||
Net derivative asset (liability) | 103 | (2,202) |
Commodity futures natural gas contracts | Fair Value, Measurements, Recurring [Member] | Level 3 | ||
Fair Value of Financial Instruments | ||
Net derivative asset (liability) | 0 | 0 |
Currency contracts | Fair Value, Measurements, Recurring [Member] | Level 1 | ||
Fair Value of Financial Instruments | ||
Net derivative asset (liability) | 0 | 0 |
Currency contracts | Fair Value, Measurements, Recurring [Member] | Level 2 | ||
Fair Value of Financial Instruments | ||
Net derivative asset (liability) | (36) | 245 |
Currency contracts | Fair Value, Measurements, Recurring [Member] | Level 3 | ||
Fair Value of Financial Instruments | ||
Net derivative asset (liability) | 0 | 0 |
Interest Rate Swap | Fair Value, Measurements, Recurring [Member] | Level 1 | ||
Fair Value of Financial Instruments | ||
Net derivative asset (liability) | 0 | 0 |
Interest Rate Swap | Fair Value, Measurements, Recurring [Member] | Level 2 | ||
Fair Value of Financial Instruments | ||
Net derivative asset (liability) | (5,416) | (2,378) |
Interest Rate Swap | Fair Value, Measurements, Recurring [Member] | Level 3 | ||
Fair Value of Financial Instruments | ||
Net derivative asset (liability) | 0 | 0 |
Total | Fair Value, Measurements, Recurring [Member] | ||
Fair Value of Financial Instruments | ||
Net derivative asset (liability) | (5,349) | (4,335) |
Total | Commodity futures natural gas contracts | Fair Value, Measurements, Recurring [Member] | ||
Fair Value of Financial Instruments | ||
Net derivative asset (liability) | 103 | (2,202) |
Total | Currency contracts | Fair Value, Measurements, Recurring [Member] | ||
Fair Value of Financial Instruments | ||
Net derivative asset (liability) | (36) | 245 |
Total | Interest Rate Swap | Fair Value, Measurements, Recurring [Member] | ||
Fair Value of Financial Instruments | ||
Net derivative asset (liability) | $ (5,416) | $ (2,378) |
Fair Value (Balance Sheet Locat
Fair Value (Balance Sheet Location) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Net derivative asset (liability) | $ (5,349) | $ (4,335) |
Prepaid and other current assets [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 135 | 245 |
Derivative Liability, Current [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liabilities, fair value | (2,293) | (4,265) |
Other Long-Term Liabilities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liabilities, fair value | $ (3,191) | $ (315) |
Fair Value (Debt Disclosure) (D
Fair Value (Debt Disclosure) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Value of Financial Instruments | |||
Term Loan B, Carrying Value | $ 418,636 | $ 436,851 | |
Senior Loans [Member] | Subsidiary, Libbey Glass [Member] | |||
Value of Financial Instruments | |||
Term Loan B, Carrying Value | [1] | 415,100 | 433,400 |
Level 2 | Senior Loans [Member] | Subsidiary, Libbey Glass [Member] | |||
Value of Financial Instruments | |||
Term Loan B, Fair Value | $ 416,138 | $ 425,815 | |
[1] | We have entered into an interest rate swap which effectively fixes a series of our future interest payments on a portion of the Term Loan B debt. See interest rate swap in note 8 for additional details. The Term Loan B floating interest rate was 3.75 percent at September 30, 2016. |
Other Income (Details)
Other Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Component of Other Income (Expense), Nonoperating [Line Items] | ||||
Other income (expense) | $ 248 | $ (396) | $ 1,035 | $ 1,277 |
Gain (loss) on currency transactions [Member] | ||||
Component of Other Income (Expense), Nonoperating [Line Items] | ||||
Other income (expense) | 348 | (55) | (376) | 1,407 |
Hedge ineffectiveness | ||||
Component of Other Income (Expense), Nonoperating [Line Items] | ||||
Other income (expense) | 11 | (42) | 1,150 | 125 |
Other Non-Operating Income (Expense) [Member] | ||||
Component of Other Income (Expense), Nonoperating [Line Items] | ||||
Other income (expense) | $ (111) | $ (299) | $ 261 | $ (255) |
Environmental Liability (Detail
Environmental Liability (Details) | Oct. 30, 2009 | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) |
Site Contingency [Line Items] | ||||||
Site Contingency, Number of Potentially Responsible Parties | 8 | |||||
Environmental Remediation Expense | $ 0 | $ (100,000) | $ 0 | $ 123,000 | ||
Syracuse China [Member] | ||||||
Site Contingency [Line Items] | ||||||
Site Contingency, Number of Potentially Responsible Related Parties | 1 | |||||
Unfavorable Regulatory Action [Member] | ||||||
Site Contingency [Line Items] | ||||||
Environmental Remediation Expense | $ (100,000) | $ 123,000 | ||||
Unfavorable Regulatory Action [Member] | Motors Liquidation [Member] | ||||||
Site Contingency [Line Items] | ||||||
Loss Contingency, Damages Paid, Value | 22,000,000 | |||||
Other Long-Term Liabilities [Member] | Unfavorable Regulatory Action [Member] | ||||||
Site Contingency [Line Items] | ||||||
Accrued Environmental Loss Contingencies, Noncurrent | 900,000 | 900,000 | $ 1,100,000 | |||
Other Noncurrent Assets [Member] | Unfavorable Regulatory Action [Member] | ||||||
Site Contingency [Line Items] | ||||||
Recorded Third-Party Environmental Recoveries, Noncurrent | 500,000 | 500,000 | $ 600,000 | |||
Minimum [Member] | Unfavorable Regulatory Action [Member] | ||||||
Site Contingency [Line Items] | ||||||
Site Contingency, Loss Exposure Not Accrued, Best Estimate | 17,000,000 | |||||
Loss Contingency, Range of Possible Loss, Minimum | $ 0 | 0 | ||||
Maximum [Member] | Unfavorable Regulatory Action [Member] | ||||||
Site Contingency [Line Items] | ||||||
Site Contingency, Loss Exposure Not Accrued, Best Estimate | $ 24,800,000 |