Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 26, 2019 | |
Entity Information [Line Items] | ||
Entity Registrant Name | LIBBEY INC | |
Entity Central Index Key | 0000902274 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 22,347,496 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Total revenues | $ 206,969 | $ 214,472 | $ 382,618 | $ 397,142 |
Cost of sales | 160,244 | 167,979 | 301,935 | 316,979 |
Gross profit | 46,725 | 46,493 | 80,683 | 80,163 |
Selling, general and administrative expenses | 30,813 | 33,537 | 63,393 | 65,060 |
Impairment of goodwill and other intangible assets | 46,881 | 0 | 46,881 | 0 |
Income (loss) from operations | (30,969) | 12,956 | (29,591) | 15,103 |
Other income (expense) | (620) | 2,580 | (2,204) | 473 |
Earnings (loss) before interest and income taxes | (31,589) | 15,536 | (31,795) | 15,576 |
Interest expense | 5,879 | 5,456 | 11,511 | 10,540 |
Earnings (loss) before income taxes | (37,468) | 10,080 | (43,306) | 5,036 |
Provision for income taxes | 6,299 | 6,092 | 5,003 | 4,009 |
Net income (loss) | $ (43,767) | $ 3,988 | $ (48,309) | $ 1,027 |
Net income (loss) per share: | ||||
Basic | $ (1.95) | $ 0.18 | $ (2.16) | $ 0.05 |
Diluted | (1.95) | 0.18 | (2.16) | 0.05 |
Dividends declared per share | $ 0 | $ 0 | $ 0 | $ 0.1175 |
Net sales | ||||
Total revenues | $ 206,158 | $ 213,534 | $ 381,124 | $ 395,447 |
Freight billed to customers | ||||
Total revenues | $ 811 | $ 938 | $ 1,494 | $ 1,695 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net income (loss) | $ (43,767) | $ 3,988 | $ (48,309) | $ 1,027 |
Other comprehensive income (loss): | ||||
Pension and other post-retirement benefit adjustments, net of tax | 1,510 | 2,879 | 2,287 | 3,634 |
Change in fair value of derivative instruments, net of tax | (4,830) | 472 | (7,884) | 1,942 |
Foreign currency translation adjustments, net of tax | (271) | (7,392) | (297) | (3,059) |
Other comprehensive income (loss), net of tax | (3,591) | (4,041) | (5,894) | 2,517 |
Comprehensive income (loss) | $ (47,358) | $ (53) | $ (54,203) | $ 3,544 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Assets: | ||
Cash and cash equivalents | $ 32,298 | $ 25,066 |
Accounts receivable — net | 92,950 | 83,977 |
Inventories — net | 202,564 | 192,103 |
Prepaid and other current assets | 18,496 | 16,522 |
Total current assets | 346,308 | 317,668 |
Purchased intangible assets — net | 11,977 | 13,385 |
Goodwill | 38,431 | 84,412 |
Deferred income taxes | 27,797 | 26,090 |
Other assets | 11,623 | 7,660 |
Operating lease right-of-use assets | 65,571 | 0 |
Property, plant and equipment — net | 256,900 | 264,960 |
Total assets | 758,607 | 714,175 |
Liabilities and Shareholders' Equity (Deficit) | ||
Accounts payable | 79,635 | 74,836 |
Salaries and wages | 23,120 | 27,924 |
Accrued liabilities | 48,017 | 43,728 |
Accrued income taxes | 3,726 | 3,639 |
Pension liability (current portion) | 3,497 | 3,282 |
Non-pension post-retirement benefits (current portion) | 3,957 | 3,951 |
Operating lease liabilities (current portion) | 12,800 | 0 |
Long-term debt due within one year | 4,400 | 4,400 |
Total current liabilities | 179,152 | 161,760 |
Long-term debt | 419,413 | 393,300 |
Pension liability | 44,079 | 45,206 |
Non-pension post-retirement benefits | 39,833 | 43,015 |
Noncurrent operating lease liabilities | 53,750 | 0 |
Deferred income taxes | 2,522 | 2,755 |
Other long-term liabilities | 22,529 | 18,246 |
Total liabilities | 761,278 | 664,282 |
Contingencies (Note 15) | ||
Shareholders’ equity (deficit): | ||
Common stock, par value $.01 per share, 50,000,000 shares authorized, 22,347,086 shares issued in 2019 (22,157,220 shares issued in 2018) | 223 | 222 |
Capital in excess of par value | 337,155 | 335,517 |
Retained deficit | (219,750) | (171,441) |
Accumulated other comprehensive loss | (120,299) | (114,405) |
Total shareholders’ equity (deficit) | (2,671) | 49,893 |
Total liabilities and shareholders’ equity (deficit) | $ 758,607 | $ 714,175 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets Parenthetical - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 22,347,086 | 22,157,220 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Shareholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Common Stock | Capital in Excess of Par Value | Retained Deficit | Accumulated Other Comprehensive Loss |
Increase (Decrease) in Stockholders' Equity (Deficit) [Roll Forward] | |||||
Cumulative-effect adjustment for the adoption of ASU 2017-12 | $ 0 | $ 275 | $ (275) | ||
Balance, shares at Dec. 31, 2017 | 22,018,010 | ||||
Balance, value at Dec. 31, 2017 | 66,894 | $ 220 | $ 333,011 | (161,165) | (105,172) |
Increase (Decrease) in Stockholders' Equity (Deficit) [Roll Forward] | |||||
Net income (loss) | (2,961) | (2,961) | |||
Other comprehensive income (loss) | 6,558 | 6,558 | |||
Stock compensation expense | 270 | 270 | |||
Dividends | (2,595) | (2,595) | |||
Stock withheld for employee taxes | (203) | (203) | |||
Stock issued, shares | 63,582 | ||||
Stock issued, value | 92 | $ 1 | 91 | ||
Balance, shares at Mar. 31, 2018 | 22,081,592 | ||||
Balance, value at Mar. 31, 2018 | 68,055 | $ 221 | 333,169 | (166,446) | (98,889) |
Balance, shares at Dec. 31, 2017 | 22,018,010 | ||||
Balance, value at Dec. 31, 2017 | 66,894 | $ 220 | 333,011 | (161,165) | (105,172) |
Increase (Decrease) in Stockholders' Equity (Deficit) [Roll Forward] | |||||
Net income (loss) | 1,027 | ||||
Other comprehensive income (loss) | 2,517 | ||||
Balance, shares at Jun. 30, 2018 | 22,132,408 | ||||
Balance, value at Jun. 30, 2018 | 69,122 | $ 221 | 334,289 | (162,458) | (102,930) |
Balance, shares at Mar. 31, 2018 | 22,081,592 | ||||
Balance, value at Mar. 31, 2018 | 68,055 | $ 221 | 333,169 | (166,446) | (98,889) |
Increase (Decrease) in Stockholders' Equity (Deficit) [Roll Forward] | |||||
Net income (loss) | 3,988 | 3,988 | |||
Other comprehensive income (loss) | (4,041) | (4,041) | |||
Stock compensation expense | 1,131 | 1,131 | |||
Stock withheld for employee taxes | (11) | (11) | |||
Stock issued, shares | 50,816 | ||||
Stock issued, value | 0 | $ 0 | 0 | ||
Balance, shares at Jun. 30, 2018 | 22,132,408 | ||||
Balance, value at Jun. 30, 2018 | 69,122 | $ 221 | 334,289 | (162,458) | (102,930) |
Balance, shares at Dec. 31, 2018 | 22,157,220 | ||||
Balance, value at Dec. 31, 2018 | 49,893 | $ 222 | 335,517 | (171,441) | (114,405) |
Increase (Decrease) in Stockholders' Equity (Deficit) [Roll Forward] | |||||
Net income (loss) | (4,542) | (4,542) | |||
Other comprehensive income (loss) | (2,303) | (2,303) | |||
Stock compensation expense | 937 | 937 | |||
Stock withheld for employee taxes | (317) | (317) | |||
Stock issued, shares | 116,348 | ||||
Stock issued, value | (7) | $ 1 | (8) | ||
Balance, shares at Mar. 31, 2019 | 22,273,568 | ||||
Balance, value at Mar. 31, 2019 | 43,661 | $ 223 | 336,129 | (175,983) | (116,708) |
Balance, shares at Dec. 31, 2018 | 22,157,220 | ||||
Balance, value at Dec. 31, 2018 | 49,893 | $ 222 | 335,517 | (171,441) | (114,405) |
Increase (Decrease) in Stockholders' Equity (Deficit) [Roll Forward] | |||||
Net income (loss) | (48,309) | ||||
Other comprehensive income (loss) | (5,894) | ||||
Balance, shares at Jun. 30, 2019 | 22,347,086 | ||||
Balance, value at Jun. 30, 2019 | (2,671) | $ 223 | 337,155 | (219,750) | (120,299) |
Balance, shares at Mar. 31, 2019 | 22,273,568 | ||||
Balance, value at Mar. 31, 2019 | 43,661 | $ 223 | 336,129 | (175,983) | (116,708) |
Increase (Decrease) in Stockholders' Equity (Deficit) [Roll Forward] | |||||
Net income (loss) | (43,767) | (43,767) | |||
Other comprehensive income (loss) | (3,591) | (3,591) | |||
Stock compensation expense | 1,117 | 1,117 | |||
Stock withheld for employee taxes | (92) | (92) | |||
Stock issued, shares | 73,518 | ||||
Stock issued, value | 1 | $ 0 | 1 | ||
Balance, shares at Jun. 30, 2019 | 22,347,086 | ||||
Balance, value at Jun. 30, 2019 | $ (2,671) | $ 223 | $ 337,155 | $ (219,750) | $ (120,299) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Operating activities: | ||
Net income (loss) | $ (48,309) | $ 1,027 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 19,922 | 23,119 |
Impairment of goodwill and other intangible assets | 46,881 | 0 |
Change in accounts receivable | (9,060) | (11,477) |
Change in inventories | (10,593) | (13,956) |
Change in accounts payable | 6,743 | 919 |
Accrued interest and amortization of discounts and finance fees | 557 | 449 |
Pension & non-pension post-retirement benefits, net | (1,165) | 176 |
Accrued liabilities & prepaid expenses | (2,768) | 1,215 |
Income taxes | (2,483) | (1,698) |
Share-based compensation expense | 1,935 | 1,456 |
Other operating activities | (908) | (430) |
Net cash provided by operating activities | 752 | 800 |
Investing activities: | ||
Additions to property, plant and equipment | (18,300) | (21,349) |
Net cash used in investing activities | (18,300) | (21,349) |
Financing activities: | ||
Borrowings on ABL credit facility | 73,871 | 51,131 |
Repayments on ABL credit facility | (46,300) | (28,631) |
Other repayments | 0 | (1,383) |
Repayments on Term Loan B | (2,200) | (2,200) |
Taxes paid on distribution of equity awards | (409) | (214) |
Dividends | 0 | (2,595) |
Net cash provided by financing activities | 24,962 | 16,108 |
Effect of exchange rate fluctuations on cash | (182) | (437) |
Increase (decrease) in cash | 7,232 | (4,878) |
Cash & cash equivalents at beginning of period | 25,066 | 24,696 |
Cash & cash equivalents at end of period | 32,298 | 19,818 |
Supplemental disclosure of cash flow information: | ||
Cash paid during the period for interest | 10,602 | 9,766 |
Cash paid during the period for income taxes | $ 5,206 | $ 3,584 |
Description of the Business
Description of the Business | 6 Months Ended |
Jun. 30, 2019 | |
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 ® , Libbey Signature ® , Master's Reserve ® , Crisa ® , Royal Leerdam ® , World ® Tableware, Syracuse ® China and Crisal Glass ® brand names (among others), an extensive line of high-quality glass tableware, ceramic dinnerware, metal flatware, hollowware and serveware items for sale primarily in the foodservice, retail and business-to-business channels of distribution. Our sales force presents our tabletop 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 Mexico (Libbey Mexico), the Netherlands (Libbey Holland), Portugal (Libbey Portugal) and China (Libbey China). In addition, we import tabletop 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 tabletop 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 American exchange under the ticker symbol LBY. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements of Libbey Inc. and its majority-owned subsidiaries (collectively, Libbey or the Company) have been prepared in accordance with U.S. Generally Accepted Accounting Principles (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q and Item 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (including normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three month and six month periods ended June 30, 2019 , are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 . The balance sheet at December 31, 2018 , has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The financial information included herein should be read in conjunction with our Consolidated Financial Statements in Item 8 of our Form 10-K for the year ended December 31, 2018 . Software We account for software in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 350. Software represents the costs of internally developed and/or purchased software for internal use. Capitalized costs include software packages, installation and internal labor costs of employees devoted to the software development project. Costs incurred to modify existing software, providing significant enhancements and creating additional functionality are also capitalized. Once a project is complete, we estimate the useful life of the internal-use software, generally amortizing these costs over a 3 to 10 year period. Software is classified on the balance sheet in property, plant and equipment, and the related cash flows are shown as cash outflows from investing activities. Cloud Computing Arrangements We account for implementation costs for software that we gain access to in hosted cloud computing arrangements in accordance with FASB ASC 350. Capitalized costs of hosted cloud computing arrangements include configuration, installation, other upfront costs and internal labor costs of employees devoted to the cloud computing software implementation project. Once a project is complete, amortization is computed using the straight-line method over the term of the associated hosting arrangement, generally 3 to 10 years. In connection with our adoption of Accounting Standards Update (ASU) 2018-15 on January 1, 2019, these implementation costs are now classified on the balance sheet in prepaid and other current assets and other assets, and the related cash flows are presented as cash outflows from operations. Prior to January 1, 2019, implementation costs were included in property, plant and equipment, and the related cash flows were shown as cash outflows from investing activities. See New Accounting Standards - Adopted below. Our cloud computing arrangements primarily relate to our new global enterprise resource planning (ERP) system. At June 30, 2019, the net book value of these implementation costs included $0.3 million in prepaid and other current assets and $4.1 million in other assets on the Condensed Consolidated Balance Sheet. Amortization expense for the three and six-month periods were both immaterial. Leases We determine if an arrangement is a lease at inception. As of January 1, 2019, operating leases are included in operating lease right-of-use (ROU) assets, current operating lease liabilities and noncurrent operating lease liabilities in our balance sheet; related payments are included in operating activities on the statement of cash flows. We currently do not have any finance leases; but, if we do in the future, we will include them in property, plant and equipment, long-term debt due within one year and long-term debt within our balance sheet. ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. When our leases do not provide an implicit rate, we use our incremental borrowing rate, which is derived from information available at the lease commencement date, in determining the present value of lease payments. We give consideration to our secured borrowing rates as well as publicly available data for instruments with similar characteristics when calculating our incremental borrowing rates. The operating lease ROU asset also includes any lease prepayments made before commencement or in advance of the payment due date. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Leases with a term of 12 months or less (short-term leases) are not recorded on the balance sheet. Our lease agreements do not contain any residual value guarantees or material restrictive covenants. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Variable lease costs represent the incremental change in lease payments associated with an indexed rate (i.e. Consumers Price Index), and these costs are not included in the lease liability on the balance sheet because they are unknown at commencement date. We have lease agreements with lease and non-lease components. Non-lease components for real estate leases relate primarily to common area maintenance, insurance, taxes and utilities associated with the properties. For real estate leases and a limited class of equipment leases, we account for the lease and non-lease components separately. Non-lease components are not recorded on the balance sheet as a ROU asset and lease liability and are not included in lease costs. For all other equipment leases, we account for the lease and non-lease components as a single lease component. See New Accounting Standards - Adopted below for the adoption impact of this lease accounting standard. Stock-Based Compensation Expense Stock-based compensation expense charged to the Condensed Consolidated Statements of Operations is as follows: Three months ended June 30, Six months ended June 30, (dollars in thousands) 2019 2018 2019 2018 Stock-based compensation expense $ 993 $ 1,166 $ 1,935 $ 1,456 New Accounting Standards - Adopted Each change to U.S. GAAP is established by the FASB in the form of an ASU to the FASB’s ASC. We consider the applicability and impact of all ASUs. ASUs not listed below were assessed and either were determined to be not applicable or are expected to have minimal impact on the Company’s Condensed Consolidated Financial Statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires a lessee to recognize on the balance sheet ROU assets and corresponding liabilities for both finance and operating leases with lease terms greater than 12 months. On January 1, 2019, we adopted this standard using the optional transition method of applying the modified retrospective approach at our adoption date. Under this method, previously reported comparative periods prior to 2019 have not been restated. We have elected the package of practical expedients permitted under the transition guidance, which allowed us to carry forward our prior conclusions on existing contracts for lease identification, lease classification and initial direct costs. In addition, for most of our classes of equipment leases, we elected the practical expedient to not separate lease and non-lease components. We also made an accounting policy election to keep leases with a term of 12 months or less off of the balance sheet for all classes of underlying assets. At adoption, we had operating leases which resulted in us recognizing operating ROU assets and lease liabilities on the balance sheet of approximately $69 million . The adoption of this ASU did not have a material impact on our condensed consolidated results of operations or cash flows, and there was no cumulative effect adjustment to retained earnings. The new standard also required additional disclosures which are included in note 13 . On January 1, 2019, we early adopted ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . This standard aligns the requirements for capitalizing implementation costs in a cloud computing arrangement service contract with the requirements for capitalizing implementation costs incurred for internal-use software. The new guidance also prescribes the balance sheet, income statement and cash flow classification of the capitalized implementation costs and related amortization expense, and requires additional quantitative and qualitative disclosures. Prior to January 1, 2019, implementation costs for cloud computing arrangements were capitalized into property, plant and equipment and amortized on a straight-line basis. Upon adoption of this new standard, we reclassed $2.8 million from construction in progress within property, plant, and equipment to other assets. When implementation projects are completed and amortization of capitalized costs begins, a portion is recorded in prepaids and other current assets. Results and disclosures for reporting periods beginning on or after January 1, 2019, are presented under the new guidance within ASU 2018-15, while prior period amounts and disclosures are not adjusted and continue to be reported in accordance with our previous accounting. New Accounting Standards - Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . 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 periods within those fiscal years, with early application permitted. Although we are still evaluating the impact of this standard, we believe it will not have a material impact on our Condensed Consolidated Financial Statements. |
Balance Sheet Details
Balance Sheet Details | 6 Months Ended |
Jun. 30, 2019 | |
Balance Sheet Details [Abstract] | |
Balance Sheet Details | Balance Sheet Details The following table provides detail of selected balance sheet items: (dollars in thousands) June 30, 2019 December 31, 2018 Accounts receivable: Trade receivables $ 90,850 $ 82,521 Other receivables 2,100 1,456 Total accounts receivable, less allowances of $8,956 and $8,538 $ 92,950 $ 83,977 Inventories: Finished goods $ 185,185 $ 175,074 Work in process 1,746 1,363 Raw materials 3,608 4,026 Repair parts 10,279 10,116 Operating supplies 1,746 1,524 Total inventories, less loss provisions of $8,051 and $9,453 $ 202,564 $ 192,103 Accrued liabilities: Accrued incentives $ 22,740 $ 19,359 Other accrued liabilities 25,277 24,369 Total accrued liabilities $ 48,017 $ 43,728 |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings Borrowings consist of the following: (dollars in thousands) Interest Rate Maturity Date June 30, December 31, Borrowings under ABL Facility floating (2) December 7, 2022 (1) $ 47,680 $ 19,868 Term Loan B floating (3) April 9, 2021 378,000 380,200 Total borrowings 425,680 400,068 Less — unamortized discount and finance fees 1,867 2,368 Total borrowings — net 423,813 397,700 Less — long term debt due within one year 4,400 4,400 Total long-term portion of borrowings — net $ 419,413 $ 393,300 ________________________ (1) Maturity date will be January 9, 2021, if Term Loan B is not refinanced by this date. (2) The interest rate for the ABL Facility is comprised of several different borrowings at various rates. The weighted average rate of all ABL Facility borrowings was 2.93 percent at June 30, 2019 . (3) We have entered into interest rate swaps that effectively fix a series of our future interest payments on a portion of the Term Loan B debt. See interest rate swaps in note 8 for additional details. The Term Loan B floating interest rate was 5.41 percent at June 30, 2019 . The ABL Facility also provides for the issuance of up to $15.0 million of letters of credit that, when outstanding, are applied against the $100.0 million limit. At June 30, 2019 , $8.6 million in letters of credit and other reserves were outstanding. Remaining unused availability under the ABL Facility was $43.7 million at June 30, 2019 , compared to $71.6 million at December 31, 2018 . On June 17, 2019, Crisa Libbey Mexico S. de R.L. de C.V. entered into a $3.0 million working capital line of credit with Banco Santander Mexico to cover seasonal working capital needs, guaranteed by its parent company, Libbey Mexico, S. de R.L. de C.V. The line of credit matures on December 14, 2020, and has a floating interest rate of LIBOR plus 3.2 percent . At June 30, 2019, there were no borrowings under this line of credit. Interest with respect to borrowings on the line of credit is due monthly. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
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 (11.6) percent for the six months ended June 30, 2019 , compared to 79.6 percent for the six months ended June 30, 2018 . Our effective tax rate for the six months ended June 30, 2019, which was below the United States statutory rate of 21 percent, was reduced 24.8% percent by the nondeductible goodwill impairment charge and further reduced by other nondeductible costs, including interest, foreign exchange, certain employee costs and unbenefited losses in the Netherlands. 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, the Mexican tax authority (SAT) assessed one of our Mexican subsidiaries 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 U.S. 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. There were no significant developments affecting this matter for the six months ended June 30, 2019. |
Pension and Non-pension Post-re
Pension and Non-pension Post-retirement Benefits | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Pension and Non-pension Postretirement Benefits | Pension and Non-pension Post-retirement Benefits The components of our net pension expense, including the SERP (supplemental employee retirement plan), are as follows: Three months ended June 30, U.S. Plans Non-U.S. Plans Total (dollars in thousands) 2019 2018 2019 2018 2019 2018 Service cost $ 783 $ 1,025 $ 260 $ 284 $ 1,043 $ 1,309 Interest cost 3,382 3,142 772 741 4,154 3,883 Expected return on plan assets (5,193 ) (5,669 ) — — (5,193 ) (5,669 ) Amortization of unrecognized: Prior service cost (credit) — 1 (51 ) (50 ) (51 ) (49 ) Actuarial loss 1,088 1,599 105 154 1,193 1,753 Pension expense $ 60 $ 98 $ 1,086 $ 1,129 $ 1,146 $ 1,227 Six months ended June 30, U.S. Plans Non-U.S. Plans Total (dollars in thousands) 2019 2018 2019 2018 2019 2018 Service cost $ 1,566 $ 2,004 $ 519 $ 576 $ 2,085 $ 2,580 Interest cost 6,764 6,307 1,541 1,504 8,305 7,811 Expected return on plan assets (10,386 ) (11,329 ) — — (10,386 ) (11,329 ) Amortization of unrecognized: Prior service cost (credit) — 1 (101 ) (101 ) (101 ) (100 ) Actuarial loss 2,175 3,236 208 313 2,383 3,549 Pension expense $ 119 $ 219 $ 2,167 $ 2,292 $ 2,286 $ 2,511 We have contributed $0.4 million and $1.7 million of cash to our pension plans for the three months and six months ended June 30, 2019 , respectively. Pension contributions for the remainder of 2019 are estimated to be $1.7 million . The provision for our non-pension, post-retirement, benefit expense consists of the following: Three months ended June 30, U.S. Plans Non-U.S. Plans Total (dollars in thousands) 2019 2018 2019 2018 2019 2018 Service cost $ 112 $ 151 $ — $ — $ 112 $ 151 Interest cost 449 455 9 10 458 465 Amortization of unrecognized: Prior service (credit) (71 ) (70 ) — — (71 ) (70 ) Actuarial (gain) (106 ) (53 ) (19 ) (17 ) (125 ) (70 ) Non-pension post-retirement benefit expense $ 384 $ 483 $ (10 ) $ (7 ) $ 374 $ 476 Six months ended June 30, U.S. Plans Non-U.S. Plans Total (dollars in thousands) 2019 2018 2019 2018 2019 2018 Service cost $ 222 $ 302 $ — $ — $ 222 $ 302 Interest cost 918 911 18 20 936 931 Amortization of unrecognized: Prior service (credit) (141 ) (141 ) — — (141 ) (141 ) Actuarial (gain) (188 ) (105 ) (37 ) (33 ) (225 ) (138 ) Non-pension post-retirement benefit expense $ 811 $ 967 $ (19 ) $ (13 ) $ 792 $ 954 Our 2019 estimate of non-pension cash payments is $5.5 million , of which we have paid $1.7 million and $3.5 million for the three months and six months ended June 30, 2019 , respectively. |
Net Income (Loss) per Share of
Net Income (Loss) per Share of Common Stock | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) per Share of Common Stock | Net Income (Loss) per Share of Common Stock The following table sets forth the computation of basic and diluted income (loss) per share: Three months ended June 30, Six months ended June 30, (dollars in thousands, except earnings per share) 2019 2018 2019 2018 Numerator for earnings per share: Net income (loss) that is available to common shareholders $ (43,767 ) $ 3,988 $ (48,309 ) $ 1,027 Denominator for basic earnings per share: Weighted average shares outstanding 22,400,246 22,170,338 22,331,786 22,130,503 Denominator for diluted earnings per share: Effect of stock options and restricted stock units — 185,550 — 36,584 Adjusted weighted average shares and assumed conversions 22,400,246 22,355,888 22,331,786 22,167,087 Basic income (loss) per share $ (1.95 ) $ 0.18 $ (2.16 ) $ 0.05 Diluted income (loss) per share $ (1.95 ) $ 0.18 $ (2.16 ) $ 0.05 Anti-dilutive shares excluded from computation of diluted income (loss) per share 1,939,290 752,375 1,700,192 982,386 When applicable, diluted shares outstanding is calculated using the weighted-average number of common shares outstanding plus the dilutive effects of equity-based compensation outstanding during the period using the treasury stock method. |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2019 | |
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 and commodity price risks associated with forecasted future natural gas requirements. These derivatives 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 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. Our contracts with counterparties generally contain right of offset provisions. These provisions effectively reduce our exposure to credit risk in situations where the Company has gain and loss positions outstanding with a single counterparty. It is our policy to offset on the Condensed Consolidated Balance Sheets the amounts recognized for derivative instruments executed with the same counterparty under a master netting agreement. We do not believe we are exposed to more than a nominal amount of credit risk in our natural gas hedges and interest rate swaps as the counterparties are established financial institutions. The counterparties for the derivative agreements are rated BBB+ or better as of June 30, 2019 , by Standard and Poor’s. Fair Values The following table provides the fair values of our derivative financial instruments for the periods presented, all of which are cash flow hedges: (dollars in thousands) Fair Value of Derivative Assets Balance Sheet Location June 30, 2019 December 31, 2018 Interest rate swaps Prepaid and other current assets $ — $ 1,425 Natural gas contracts Prepaid and other current assets — 226 Natural gas contracts Other assets — 39 Total derivative assets $ — $ 1,690 Fair Value of Derivative Liabilities Interest rate swaps Accrued liabilities $ 1,080 $ — Interest rate swaps Other long-term liabilities 12,363 5,713 Natural gas contracts Accrued liabilities 854 — Natural gas contracts Other long-term liabilities 87 — Total derivative liabilities $ 14,384 $ 5,713 The following table presents cash settlements (paid) received related to the below derivatives: Three months ended June 30, Six months ended June 30, (dollars in thousands) 2019 2018 2019 2018 Natural gas contracts $ (65 ) $ (36 ) $ 63 $ (234 ) Interest rate swaps 347 (3 ) 691 (181 ) Total $ 282 $ (39 ) $ 754 $ (415 ) The following table provides a summary of the impacts of derivative gain (loss) of our cash flow hedges on the Condensed Consolidated Statements of Operations and other comprehensive income (OCI): Three months ended June 30, Six months ended June 30, (dollars in thousands) Location 2019 2018 2019 2018 Derivative gain (loss) recognized into OCI: Natural gas contracts OCI $ (1,106 ) $ 123 $ (1,143 ) $ 334 Interest rate swaps OCI (4,987 ) 480 (8,465 ) 1,733 Total $ (6,093 ) $ 603 $ (9,608 ) $ 2,067 Derivative gain (loss) reclassified from accumulated OCI to current earnings: Natural gas contracts Cost of Sales $ (65 ) $ (36 ) $ 63 $ (234 ) Interest rate swaps Interest expense 335 40 690 (103 ) Total $ 270 $ 4 $ 753 $ (337 ) 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, 18 months in the future, or more, depending on market conditions. The fair values of these instruments are determined from market quotes. The following table presents the notional amount of our natural gas derivatives on the Condensed Consolidated Balance Sheets: Notional Amounts Derivative Types Unit of Measure June 30, 2019 December 31, 2018 Natural gas contracts Millions of British Thermal Units (MMBTUs) 3,710,000 3,150,000 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 fair value of these hedges are recorded in other comprehensive income (loss). 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. Based on our current valuation, we estimate that accumulated losses for natural gas contracts currently carried in accumulated other comprehensive loss that will be reclassified into earnings over the next twelve months will result in a loss of $0.9 million in our Condensed Consolidated Statements of Operations. Interest Rate Swaps The table below lists the interest rate swaps we executed as part of our risk management strategy to mitigate the risks associated with the fluctuating interest rates under our Term Loan B. The interest rate swaps effectively convert a portion of our Term Loan B debt from a variable interest rate to a fixed interest rate, thus reducing the impact of interest rate changes on future income. Swap execution date Effective date Expiration date Notional amount Fixed swap rate April 1, 2015 January 11, 2016 January 9, 2020 $220.0 million 4.85 % September 24, 2018 January 9, 2020 January 9, 2025 $200.0 million 6.19 % (1) ________________________ (1) Upon refinancing our Term Loan B, the fixed interest rate will be 3.19 percent plus the new refinanced credit spread. Our interest rate swaps are 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 swaps qualify and are designated as cash flow hedges at June 30, 2019 , and are 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 is discontinued if the forecasted transaction is no longer probable to occur, and any previously deferred gains or losses are recorded to earnings immediately. Changes in the fair value of these hedges are recorded in other comprehensive income (loss). 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 an increase to interest expense of $1.1 million in our Condensed Consolidated Statements of Operations. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2019 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss) (AOCI), net of tax, is as follows: Three months ended June 30, 2019 Foreign Currency Translation Derivative Instruments Pension and Other Post-retirement Benefits Accumulated Other Balance on March 31, 2019 $ (23,266 ) $ (5,920 ) $ (87,522 ) $ (116,708 ) Amounts recognized into AOCI (533 ) (6,093 ) 1,148 (5,478 ) Currency impact — — (84 ) (84 ) Amounts reclassified from AOCI — (270 ) (1) 945 (2) 675 Tax effect 262 1,533 (499 ) 1,296 Other comprehensive income (loss), net of tax (271 ) (4,830 ) 1,510 (3,591 ) Balance on June 30, 2019 $ (23,537 ) $ (10,750 ) $ (86,012 ) $ (120,299 ) Six months ended June 30, 2019 Foreign Currency Translation Derivative Instruments Pension and Other Post-retirement Benefits Accumulated Other Balance on December 31, 2018 $ (23,240 ) $ (2,866 ) $ (88,299 ) $ (114,405 ) Amounts recognized into AOCI (289 ) (9,608 ) 1,148 (8,749 ) Currency impact — — (50 ) (50 ) Amounts reclassified from AOCI — (753 ) (1) 1,915 (2) 1,162 Tax effect (8 ) 2,477 (726 ) 1,743 Other comprehensive income (loss), net of tax (297 ) (7,884 ) 2,287 (5,894 ) Balance on June 30, 2019 $ (23,537 ) $ (10,750 ) $ (86,012 ) $ (120,299 ) Three months ended June 30, 2018 Foreign Currency Translation Derivative Instruments Pension and Other Post-retirement Benefits Accumulated Other Balance on March 31, 2018 $ (11,850 ) $ 1,546 $ (88,585 ) $ (98,889 ) Amounts recognized into AOCI (7,392 ) 603 1,527 (5,262 ) Currency impact — — 524 524 Amounts reclassified from AOCI — (4 ) (1) 1,564 (2) 1,560 Tax effect — (127 ) (736 ) (863 ) Other comprehensive income (loss), net of tax (7,392 ) 472 2,879 (4,041 ) Balance on June 30, 2018 $ (19,242 ) $ 2,018 $ (85,706 ) $ (102,930 ) Six months ended June 30, 2018 Foreign Currency Translation Derivative Instruments Pension and Other Post-retirement Benefits Accumulated Other Balance on December 31, 2017 $ (16,183 ) $ 351 $ (89,340 ) $ (105,172 ) Cumulative-effect adjustment for the adoption of ASU 2017-12 — (275 ) — (275 ) Amounts recognized into AOCI (3,059 ) 2,067 1,527 535 Currency impact — — 40 40 Amounts reclassified from AOCI — 337 (1) 3,170 (2) 3,507 Tax effect — (462 ) (1,103 ) (1,565 ) Other comprehensive income (loss), net of tax (3,059 ) 1,942 3,634 2,517 Balance on June 30, 2018 $ (19,242 ) $ 2,018 $ (85,706 ) $ (102,930 ) ___________________________ (1) We reclassified natural gas contracts through cost of sales and the interest rate swaps through interest expense on the Condensed Consolidated Statements of Operations. See note 8 for additional information. (2) We reclassified the net pension and non-pension post-retirement benefits amortization and settlement charges through other income (expense) on the Condensed Consolidated Statements of Operations. See note 6 for additional information. |
Segments
Segments | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segments | Segments Our reporting segments align with our regionally focused organizational structure, which we believe enables us to better serve customers across the globe. Under this structure, we report financial results for U.S. and Canada; Latin America; Europe, the Middle East and Africa (EMEA); and Other. Segment results are based primarily on the geographical destination of the sale. 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, as well as glass products for OEMs regardless of end–market destination. 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. Segment EBIT also includes an allocation of manufacturing costs for inventory produced at a Libbey facility that is located in a region other than the end market in which the inventory is sold. This allocation can fluctuate from year to year based on the relative demands for products produced in regions other than the end markets in which they are sold. 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 June 30, Six months ended June 30, (dollars in thousands) 2019 2018 2019 2018 Net Sales: U.S. & Canada $ 128,897 $ 128,474 $ 238,803 $ 236,415 Latin America 38,208 40,290 68,609 74,623 EMEA 32,678 38,175 60,720 70,423 Other 6,375 6,595 12,992 13,986 Consolidated $ 206,158 $ 213,534 $ 381,124 $ 395,447 Segment EBIT: U.S. & Canada $ 17,267 $ 13,358 $ 27,064 $ 18,082 Latin America 3,187 7,433 3,836 9,583 EMEA 2,763 2,621 2,713 3,626 Other (1,169 ) 660 (2,321 ) (469 ) Total Segment EBIT $ 22,048 $ 24,072 $ 31,292 $ 30,822 Reconciliation of Segment EBIT to Net Income (Loss): Segment EBIT $ 22,048 $ 24,072 $ 31,292 $ 30,822 Retained corporate costs (6,756 ) (8,536 ) (16,206 ) (15,246 ) Impairment of goodwill and other intangible assets (note 16) (46,881 ) — (46,881 ) — Interest expense (5,879 ) (5,456 ) (11,511 ) (10,540 ) Provision for income taxes (6,299 ) (6,092 ) (5,003 ) (4,009 ) Net income (loss) $ (43,767 ) $ 3,988 $ (48,309 ) $ 1,027 Depreciation & Amortization: U.S. & Canada $ 3,214 $ 3,052 $ 6,347 $ 6,439 Latin America 3,837 4,494 7,617 9,204 EMEA 1,706 1,940 3,405 3,949 Other 893 1,309 1,775 2,623 Corporate 341 445 778 904 Consolidated $ 9,991 $ 11,240 $ 19,922 $ 23,119 Capital Expenditures: U.S. & Canada $ 2,540 $ 5,592 $ 5,924 $ 12,729 Latin America 3,531 2,778 7,722 5,167 EMEA 1,392 1,449 3,738 2,743 Other 41 142 300 262 Corporate 435 117 616 448 Consolidated $ 7,939 $ 10,078 $ 18,300 $ 21,349 |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Our primary source of revenue is the sale of glass tableware products manufactured within a Libbey facility as well as globally sourced tabletop products, including glassware, ceramicware, metalware and others. Adjustments related to revenue recognized in prior periods was not material for the three months and six months ended June 30, 2019 and 2018 . There were no material contract assets, contract liabilities or deferred contract costs recorded on the Condensed Consolidated Balance Sheets as of June 30, 2019 and December 31, 2018 . Disaggregation of Revenue: The following table presents our net sales disaggregated by business channel: Three months ended June 30, Six months ended June 30, (dollars in thousands) 2019 2018 2019 2018 Foodservice $ 86,999 $ 93,194 $ 157,816 $ 169,367 Retail 60,222 61,670 115,795 117,431 Business-to-business 58,937 58,670 107,513 108,649 Consolidated $ 206,158 $ 213,534 $ 381,124 $ 395,447 Each operating segment has revenues across all our business channels. Each channel has a different marketing strategy, customer base and product composition. For all periods presented, over 75 percent of each segment's revenue is derived from the following business channels: U.S. and Canada from foodservice and retail; Latin America from retail and business-to-business; and EMEA from business-to-business and retail. |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Fair value is 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. The fair value hierarchy 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; and • Level 3 — Unobservable inputs based on our own assumptions. The fair value of our derivative financial instruments by level is as follows: Fair Value at Fair Value at Asset / (Liability) (dollars in thousands) June 30, 2019 December 31, 2018 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Commodity futures natural gas contracts $ — $ (941 ) $ — $ (941 ) $ — $ 265 $ — $ 265 Interest rate swaps — (13,443 ) — (13,443 ) — (4,288 ) — (4,288 ) Net derivative asset (liability) $ — $ (14,384 ) $ — $ (14,384 ) $ — $ (4,023 ) $ — $ (4,023 ) The fair values of our commodity futures natural gas contracts are determined using observable market inputs. The fair value of our interest rate swaps are 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 and interest rate swaps 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. Financial instruments carried at cost on the Condensed Consolidated Balance Sheets, as well as the related fair values, are as follows: June 30, 2019 December 31, 2018 (dollars in thousands) Fair Value Hierarchy Level Carrying Amount Fair Value Carrying Amount Fair Value Term Loan B Level 2 $ 378,000 $ 291,060 $ 380,200 $ 362,141 The fair value of our Term Loan B has been calculated based on quoted market prices for the same or similar issues, and the fair value of our ABL Facility approximates carrying value due to variable rates. The fair value of our cash and cash equivalents, accounts receivable and accounts payable approximate their carrying value due to their short-term nature. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases Globally, we lease certain warehouses, office space, showrooms, manufacturing and office equipment, automobiles and outlet stores. Many of the real estate leases contain one or more options to renew, with renewal options that can extend the lease term from one to 20 years or more. The exercise of lease renewal options is at our discretion and is not reasonably certain at lease commencement. Most of our equipment leases have a lease term of two to eight years with limited renewal options. However, one class of equipment has a lease term of 15 years with annual renewal options thereafter. Generally, the longer term lease agreements contain escalating lease payments or are adjusted periodically for inflation. At June 30, 2019 , the weighted-average remaining lease term was 6.7 years , and the weighted-average discount rate was 4.06 percent. Upon adoption of the new lease standard, discount rates used for existing leases were established at January 1, 2019. The following table presents the lease costs and supplemental cash flow information related to our operating leases: (dollars in thousands) Three months ended June 30, 2019 Six months ended June 30, 2019 Operating lease costs $ 3,972 $ 7,933 Short-term lease costs (1) 938 1,818 Total lease costs $ 4,910 $ 9,751 (1) Includes variable lease costs which are immaterial. Cash paid for operating leases included in the measurement of lease liabilities $ 7,847 ROU assets obtained in exchange for lease liabilities $ 73,041 The following table reconciles the undiscounted cash flows to the operating lease liabilities recorded on the balance sheet: (dollars in thousands) June 30, 2019 2019 (remainder of year) $ 7,850 2020 14,432 2021 10,966 2022 9,742 2023 9,096 2024 and thereafter 23,884 Total minimum lease payments 75,970 Less: interest (9,420 ) Present value of future minimum lease payments 66,550 Less: lease liabilities (current portion) (12,800 ) Noncurrent lease liabilities $ 53,750 As presented in our 2018 Form 10-K, the future minimum rental commitments under ASC 840 for non-cancelable operating leases as of December 31, 2018, was as follows (dollars in thousands): 2019 2020 2021 2022 2023 2024 and thereafter $15,407 $13,787 $10,339 $9,143 $8,551 $20,755 |
Other Income (Expense)
Other Income (Expense) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, Six months ended June 30, (dollars in thousands) 2019 2018 2019 2018 Gain (loss) on currency transactions $ (186 ) $ 2,662 $ (1,349 ) $ 1,012 Pension and non-pension benefits, excluding service cost (365 ) (243 ) (771 ) (583 ) Other non-operating income (expense) (69 ) 161 (84 ) 44 Other income (expense) $ (620 ) $ 2,580 $ (2,204 ) $ 473 |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
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 cleanup 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. Although we cannot predict the ultimate outcome of these proceedings, we believe that these environmental proceedings will not have a material adverse impact on our financial condition, results of operations or liquidity. There were no significant changes to our environmental legal proceedings since December 31, 2018 . Please refer to Part II, Item 8. "Financial Statements and Supplementary Data," note 17, Contingencies, included in our 2018 Annual Report on Form 10-K for a more complete discussion. 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. |
Purchased Intangible Assets and
Purchased Intangible Assets and Goodwill | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Purchased Intangible Assets and Goodwill | Purchased Intangible Assets and Goodwill Purchased Intangibles Changes in purchased intangibles balances are as follows: (dollars in thousands) Six months ended June 30, 2019 Beginning balance December 31, 2018 $ 13,385 Amortization (484 ) Impairment (see below) (900 ) Foreign currency impact (24 ) Ending balance June 30, 2019 $ 11,977 Purchased intangible assets are composed of the following: (dollars in thousands) June 30, 2019 December 31, 2018 Indefinite life intangible assets $ 11,117 $ 12,035 Definite life intangible assets, net of accumulated amortization of $20,472 and $20,006 860 1,350 Total $ 11,977 $ 13,385 Indefinite life intangible assets are composed of trade names and trademarks that have an indefinite life and are therefore individually tested for impairment on an annual basis, or more frequently in certain circumstances where impairment indicators arise, in accordance with FASB ASC 350. Our on-going assessment of goodwill as of June 30, 2019 resulted in the need to test Libbey Holland's indefinite life intangible asset (Royal Leerdam ® trade name) for impairment. We used a relief from royalty method to determine the fair market value that was compared to the carrying value of the indefinite life intangible asset. The sales forecast for Royal Leerdam ® branded product was lowered due to declining performance of mid-tier retailers as consumers in EMEA move to discount and on-line retailers. As a result, the estimated fair value was determined to be lower than the carrying value, and we recorded a non-cash impairment charge of $0.9 million during the second quarter of 2019 in our EMEA reporting segment. The inputs used for this analysis are considered Level 3 inputs in the fair value hierarchy (see note 12 ). The remaining definite life intangible assets at June 30, 2019 consist of customer relationships that are amortized over a period of 20 years and have a weighted average remaining life of 5.5 years . Amortization expense for definite life intangible assets was $0.5 million for the six months ended June 30, 2019 . The future annual amortization expense remains unchanged from the Form 10-K for the year ended December 31, 2018. Goodwill Changes in goodwill balances are as follows: (dollars in thousands) U.S. & Canada Latin America Total Beginning balance December 31, 2018: Goodwill $ 43,872 $ 125,681 $ 169,553 Accumulated impairment losses (5,441 ) (79,700 ) (85,141 ) Net beginning balance 38,431 45,981 84,412 Impairment (see below) — (45,981 ) (45,981 ) Ending balance June 30, 2019: Goodwill 43,872 125,681 169,553 Accumulated impairment losses (5,441 ) (125,681 ) (131,122 ) Net ending balance $ 38,431 $ — $ 38,431 As part of our on-going assessment of goodwill at June 30, 2019, we determined that a triggering event occurred due to the Company's market capitalization being less than the carrying value, resulting from the significant decline in the Company's share price during the quarter. Thus, an interim impairment test was performed. Additionally, during the second quarter, management updated its long-range plan; the updated plan contemplates lower sales and profitability within the Mexico reporting unit (within the Latin America reporting segment) as compared to the projections used in the most recent goodwill impairment testing performed as of October 1, 2018. As the impairment testing indicated that the carrying value of the Mexico reporting unit exceeded its fair value, we recorded a non-cash impairment charge of $46.0 million during the second quarter of 2019. After recording the impairment charge, there is no longer any goodwill on the balance sheet related to the Mexico acquisition. When performing our test for impairment, we measured each reporting unit's fair value using a combination of "income" and "market" approaches on a shipping point basis. The income approach calculates the fair value of the reporting unit based on a discounted cash flow analysis, incorporating the weighted average cost of capital of a hypothetical third-party buyer. Significant estimates in the income approach include the following: discount rate; expected financial outlook and profitability of the reporting unit's business; and foreign currency impacts (all Level 3 inputs in the fair value hierarchy). Discount rates use the weighted average cost of capital for companies within our peer group, adjusted for specific company risk premium factors. The market approach uses the "Guideline Company" method, which calculates the fair value of the reporting unit based on a comparison of the reporting unit to comparable publicly traded companies. Significant estimates in the market approach model include identifying similar companies with comparable business factors such as size, growth, profitability, risk and return on investment, assessing comparable multiples, as well as consideration of control premiums (Level 2 inputs). The blended approach assigns a 70 percent weighting to the income approach and 30 percent to the market approach (Level 3 input). The higher weighting is given to the income approach due to some limitations of publicly available peer information used in the market approach. The blended fair value of both approaches is then compared to the carrying value, and to the extent that fair value exceeds the carrying value, no impairment exists. However, to the extent the carrying value exceeds the fair value, an impairment is recorded. The estimated fair value of our other reporting unit that has goodwill continued to exceed its carrying value, by approximately 40 percent , and is in the U.S. and Canada reporting segment. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements of Libbey Inc. and its majority-owned subsidiaries (collectively, Libbey or the Company) have been prepared in accordance with U.S. Generally Accepted Accounting Principles (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q and Item 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (including normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three month and six month periods ended June 30, 2019 , are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 . The balance sheet at December 31, 2018 , has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The financial information included herein should be read in conjunction with our Consolidated Financial Statements in Item 8 of our Form 10-K for the year ended December 31, 2018 . |
Software | Software We account for software in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 350. Software represents the costs of internally developed and/or purchased software for internal use. Capitalized costs include software packages, installation and internal labor costs of employees devoted to the software development project. Costs incurred to modify existing software, providing significant enhancements and creating additional functionality are also capitalized. Once a project is complete, we estimate the useful life of the internal-use software, generally amortizing these costs over a 3 to 10 year period. Software is classified on the balance sheet in property, plant and equipment, and the related cash flows are shown as cash outflows from investing activities. |
Cloud Computing Arrangements | Cloud Computing Arrangements We account for implementation costs for software that we gain access to in hosted cloud computing arrangements in accordance with FASB ASC 350. Capitalized costs of hosted cloud computing arrangements include configuration, installation, other upfront costs and internal labor costs of employees devoted to the cloud computing software implementation project. Once a project is complete, amortization is computed using the straight-line method over the term of the associated hosting arrangement, generally 3 to 10 years. In connection with our adoption of Accounting Standards Update (ASU) 2018-15 on January 1, 2019, these implementation costs are now classified on the balance sheet in prepaid and other current assets and other assets, and the related cash flows are presented as cash outflows from operations. Prior to January 1, 2019, implementation costs were included in property, plant and equipment, and the related cash flows were shown as cash outflows from investing activities. |
Leases | Leases We determine if an arrangement is a lease at inception. As of January 1, 2019, operating leases are included in operating lease right-of-use (ROU) assets, current operating lease liabilities and noncurrent operating lease liabilities in our balance sheet; related payments are included in operating activities on the statement of cash flows. We currently do not have any finance leases; but, if we do in the future, we will include them in property, plant and equipment, long-term debt due within one year and long-term debt within our balance sheet. ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. When our leases do not provide an implicit rate, we use our incremental borrowing rate, which is derived from information available at the lease commencement date, in determining the present value of lease payments. We give consideration to our secured borrowing rates as well as publicly available data for instruments with similar characteristics when calculating our incremental borrowing rates. The operating lease ROU asset also includes any lease prepayments made before commencement or in advance of the payment due date. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Leases with a term of 12 months or less (short-term leases) are not recorded on the balance sheet. Our lease agreements do not contain any residual value guarantees or material restrictive covenants. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Variable lease costs represent the incremental change in lease payments associated with an indexed rate (i.e. Consumers Price Index), and these costs are not included in the lease liability on the balance sheet because they are unknown at commencement date. We have lease agreements with lease and non-lease components. Non-lease components for real estate leases relate primarily to common area maintenance, insurance, taxes and utilities associated with the properties. For real estate leases and a limited class of equipment leases, we account for the lease and non-lease components separately. Non-lease components are not recorded on the balance sheet as a ROU asset and lease liability and are not included in lease costs. For all other equipment leases, we account for the lease and non-lease components as a single lease component. |
New Accounting Standards | New Accounting Standards - Adopted Each change to U.S. GAAP is established by the FASB in the form of an ASU to the FASB’s ASC. We consider the applicability and impact of all ASUs. ASUs not listed below were assessed and either were determined to be not applicable or are expected to have minimal impact on the Company’s Condensed Consolidated Financial Statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires a lessee to recognize on the balance sheet ROU assets and corresponding liabilities for both finance and operating leases with lease terms greater than 12 months. On January 1, 2019, we adopted this standard using the optional transition method of applying the modified retrospective approach at our adoption date. Under this method, previously reported comparative periods prior to 2019 have not been restated. We have elected the package of practical expedients permitted under the transition guidance, which allowed us to carry forward our prior conclusions on existing contracts for lease identification, lease classification and initial direct costs. In addition, for most of our classes of equipment leases, we elected the practical expedient to not separate lease and non-lease components. We also made an accounting policy election to keep leases with a term of 12 months or less off of the balance sheet for all classes of underlying assets. At adoption, we had operating leases which resulted in us recognizing operating ROU assets and lease liabilities on the balance sheet of approximately $69 million . The adoption of this ASU did not have a material impact on our condensed consolidated results of operations or cash flows, and there was no cumulative effect adjustment to retained earnings. The new standard also required additional disclosures which are included in note 13 . On January 1, 2019, we early adopted ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . This standard aligns the requirements for capitalizing implementation costs in a cloud computing arrangement service contract with the requirements for capitalizing implementation costs incurred for internal-use software. The new guidance also prescribes the balance sheet, income statement and cash flow classification of the capitalized implementation costs and related amortization expense, and requires additional quantitative and qualitative disclosures. Prior to January 1, 2019, implementation costs for cloud computing arrangements were capitalized into property, plant and equipment and amortized on a straight-line basis. Upon adoption of this new standard, we reclassed $2.8 million from construction in progress within property, plant, and equipment to other assets. When implementation projects are completed and amortization of capitalized costs begins, a portion is recorded in prepaids and other current assets. Results and disclosures for reporting periods beginning on or after January 1, 2019, are presented under the new guidance within ASU 2018-15, while prior period amounts and disclosures are not adjusted and continue to be reported in accordance with our previous accounting. New Accounting Standards - Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . 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 periods within those fiscal years, with early application permitted. Although we are still evaluating the impact of this standard, we believe it will not have a material impact on our Condensed Consolidated Financial Statements. |
Income Tax, Policy | 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. |
Earnings Per Share, Policy | When applicable, diluted shares outstanding is calculated using the weighted-average number of common shares outstanding plus the dilutive effects of equity-based compensation outstanding during the period using the treasury stock method. |
Derivatives, Policy | Derivatives We utilize derivative financial instruments to hedge certain interest rate risks associated with our long-term debt and commodity price risks associated with forecasted future natural gas requirements. These derivatives 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 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. Our contracts with counterparties generally contain right of offset provisions. These provisions effectively reduce our exposure to credit risk in situations where the Company has gain and loss positions outstanding with a single counterparty. It is our policy to offset on the Condensed Consolidated Balance Sheets the amounts recognized for derivative instruments executed with the same counterparty under a master netting agreement. |
Segment Reporting, Policy | Segments Our reporting segments align with our regionally focused organizational structure, which we believe enables us to better serve customers across the globe. Under this structure, we report financial results for U.S. and Canada; Latin America; Europe, the Middle East and Africa (EMEA); and Other. Segment results are based primarily on the geographical destination of the sale. 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, as well as glass products for OEMs regardless of end–market destination. 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. Segment EBIT also includes an allocation of manufacturing costs for inventory produced at a Libbey facility that is located in a region other than the end market in which the inventory is sold. This allocation can fluctuate from year to year based on the relative demands for products produced in regions other than the end markets in which they are sold. 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 of Financial Instruments, Policy | The fair values of our commodity futures natural gas contracts are determined using observable market inputs. The fair value of our interest rate swaps are 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 and interest rate swaps are hedges of either recorded assets or liabilities or anticipated transactions. |
Goodwill and Intangible Assets, Intangible Assets, Policy | The inputs used for this analysis are considered Level 3 inputs in the fair value hierarchy (see note 12 ). Indefinite life intangible assets are composed of trade names and trademarks that have an indefinite life and are therefore individually tested for impairment on an annual basis, or more frequently in certain circumstances where impairment indicators arise, in accordance with FASB ASC 350. Our on-going assessment of goodwill as of June 30, 2019 resulted in the need to test Libbey Holland's indefinite life intangible asset (Royal Leerdam ® trade name) for impairment. We used a relief from royalty method to determine the fair market value that was compared to the carrying value of the indefinite life intangible asset. |
Goodwill and Intangible Assets, Goodwill, Policy | When performing our test for impairment, we measured each reporting unit's fair value using a combination of "income" and "market" approaches on a shipping point basis. The income approach calculates the fair value of the reporting unit based on a discounted cash flow analysis, incorporating the weighted average cost of capital of a hypothetical third-party buyer. Significant estimates in the income approach include the following: discount rate; expected financial outlook and profitability of the reporting unit's business; and foreign currency impacts (all Level 3 inputs in the fair value hierarchy). Discount rates use the weighted average cost of capital for companies within our peer group, adjusted for specific company risk premium factors. The market approach uses the "Guideline Company" method, which calculates the fair value of the reporting unit based on a comparison of the reporting unit to comparable publicly traded companies. Significant estimates in the market approach model include identifying similar companies with comparable business factors such as size, growth, profitability, risk and return on investment, assessing comparable multiples, as well as consideration of control premiums (Level 2 inputs). The blended approach assigns a 70 percent weighting to the income approach and 30 percent to the market approach (Level 3 input). The higher weighting is given to the income approach due to some limitations of publicly available peer information used in the market approach. The blended fair value of both approaches is then compared to the carrying value, and to the extent that fair value exceeds the carrying value, no impairment exists. However, to the extent the carrying value exceeds the fair value, an impairment is recorded. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | Stock-based compensation expense charged to the Condensed Consolidated Statements of Operations is as follows: Three months ended June 30, Six months ended June 30, (dollars in thousands) 2019 2018 2019 2018 Stock-based compensation expense $ 993 $ 1,166 $ 1,935 $ 1,456 |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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) June 30, 2019 December 31, 2018 Accounts receivable: Trade receivables $ 90,850 $ 82,521 Other receivables 2,100 1,456 Total accounts receivable, less allowances of $8,956 and $8,538 $ 92,950 $ 83,977 Inventories: Finished goods $ 185,185 $ 175,074 Work in process 1,746 1,363 Raw materials 3,608 4,026 Repair parts 10,279 10,116 Operating supplies 1,746 1,524 Total inventories, less loss provisions of $8,051 and $9,453 $ 202,564 $ 192,103 Accrued liabilities: Accrued incentives $ 22,740 $ 19,359 Other accrued liabilities 25,277 24,369 Total accrued liabilities $ 48,017 $ 43,728 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Borrowings consist of the following: (dollars in thousands) Interest Rate Maturity Date June 30, December 31, Borrowings under ABL Facility floating (2) December 7, 2022 (1) $ 47,680 $ 19,868 Term Loan B floating (3) April 9, 2021 378,000 380,200 Total borrowings 425,680 400,068 Less — unamortized discount and finance fees 1,867 2,368 Total borrowings — net 423,813 397,700 Less — long term debt due within one year 4,400 4,400 Total long-term portion of borrowings — net $ 419,413 $ 393,300 ________________________ (1) Maturity date will be January 9, 2021, if Term Loan B is not refinanced by this date. (2) The interest rate for the ABL Facility is comprised of several different borrowings at various rates. The weighted average rate of all ABL Facility borrowings was 2.93 percent at June 30, 2019 . (3) We have entered into interest rate swaps that effectively fix a series of our future interest payments on a portion of the Term Loan B debt. See interest rate swaps in note 8 for additional details. The Term Loan B floating interest rate was 5.41 percent at June 30, 2019 . |
Pension and Non-pension Post-_2
Pension and Non-pension Post-retirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Defined Benefit Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Net Benefit Costs [Table Text Block] | The components of our net pension expense, including the SERP (supplemental employee retirement plan), are as follows: Three months ended June 30, U.S. Plans Non-U.S. Plans Total (dollars in thousands) 2019 2018 2019 2018 2019 2018 Service cost $ 783 $ 1,025 $ 260 $ 284 $ 1,043 $ 1,309 Interest cost 3,382 3,142 772 741 4,154 3,883 Expected return on plan assets (5,193 ) (5,669 ) — — (5,193 ) (5,669 ) Amortization of unrecognized: Prior service cost (credit) — 1 (51 ) (50 ) (51 ) (49 ) Actuarial loss 1,088 1,599 105 154 1,193 1,753 Pension expense $ 60 $ 98 $ 1,086 $ 1,129 $ 1,146 $ 1,227 Six months ended June 30, U.S. Plans Non-U.S. Plans Total (dollars in thousands) 2019 2018 2019 2018 2019 2018 Service cost $ 1,566 $ 2,004 $ 519 $ 576 $ 2,085 $ 2,580 Interest cost 6,764 6,307 1,541 1,504 8,305 7,811 Expected return on plan assets (10,386 ) (11,329 ) — — (10,386 ) (11,329 ) Amortization of unrecognized: Prior service cost (credit) — 1 (101 ) (101 ) (101 ) (100 ) Actuarial loss 2,175 3,236 208 313 2,383 3,549 Pension expense $ 119 $ 219 $ 2,167 $ 2,292 $ 2,286 $ 2,511 |
Non-Pension Post-retirement Benefit Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Net Benefit Costs [Table Text Block] | The provision for our non-pension, post-retirement, benefit expense consists of the following: Three months ended June 30, U.S. Plans Non-U.S. Plans Total (dollars in thousands) 2019 2018 2019 2018 2019 2018 Service cost $ 112 $ 151 $ — $ — $ 112 $ 151 Interest cost 449 455 9 10 458 465 Amortization of unrecognized: Prior service (credit) (71 ) (70 ) — — (71 ) (70 ) Actuarial (gain) (106 ) (53 ) (19 ) (17 ) (125 ) (70 ) Non-pension post-retirement benefit expense $ 384 $ 483 $ (10 ) $ (7 ) $ 374 $ 476 Six months ended June 30, U.S. Plans Non-U.S. Plans Total (dollars in thousands) 2019 2018 2019 2018 2019 2018 Service cost $ 222 $ 302 $ — $ — $ 222 $ 302 Interest cost 918 911 18 20 936 931 Amortization of unrecognized: Prior service (credit) (141 ) (141 ) — — (141 ) (141 ) Actuarial (gain) (188 ) (105 ) (37 ) (33 ) (225 ) (138 ) Non-pension post-retirement benefit expense $ 811 $ 967 $ (19 ) $ (13 ) $ 792 $ 954 |
Net Income (Loss) per Share o_2
Net Income (Loss) per Share of Common Stock (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 income (loss) per share: Three months ended June 30, Six months ended June 30, (dollars in thousands, except earnings per share) 2019 2018 2019 2018 Numerator for earnings per share: Net income (loss) that is available to common shareholders $ (43,767 ) $ 3,988 $ (48,309 ) $ 1,027 Denominator for basic earnings per share: Weighted average shares outstanding 22,400,246 22,170,338 22,331,786 22,130,503 Denominator for diluted earnings per share: Effect of stock options and restricted stock units — 185,550 — 36,584 Adjusted weighted average shares and assumed conversions 22,400,246 22,355,888 22,331,786 22,167,087 Basic income (loss) per share $ (1.95 ) $ 0.18 $ (2.16 ) $ 0.05 Diluted income (loss) per share $ (1.95 ) $ 0.18 $ (2.16 ) $ 0.05 Anti-dilutive shares excluded from computation of diluted income (loss) per share 1,939,290 752,375 1,700,192 982,386 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative [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, all of which are cash flow hedges: (dollars in thousands) Fair Value of Derivative Assets Balance Sheet Location June 30, 2019 December 31, 2018 Interest rate swaps Prepaid and other current assets $ — $ 1,425 Natural gas contracts Prepaid and other current assets — 226 Natural gas contracts Other assets — 39 Total derivative assets $ — $ 1,690 Fair Value of Derivative Liabilities Interest rate swaps Accrued liabilities $ 1,080 $ — Interest rate swaps Other long-term liabilities 12,363 5,713 Natural gas contracts Accrued liabilities 854 — Natural gas contracts Other long-term liabilities 87 — Total derivative liabilities $ 14,384 $ 5,713 |
Schedule of Derivative Instruments | The following table presents cash settlements (paid) received related to the below derivatives: Three months ended June 30, Six months ended June 30, (dollars in thousands) 2019 2018 2019 2018 Natural gas contracts $ (65 ) $ (36 ) $ 63 $ (234 ) Interest rate swaps 347 (3 ) 691 (181 ) Total $ 282 $ (39 ) $ 754 $ (415 ) |
Summary of the Gain (Loss) Recognized in the Statement of Operations | The following table provides a summary of the impacts of derivative gain (loss) of our cash flow hedges on the Condensed Consolidated Statements of Operations and other comprehensive income (OCI): Three months ended June 30, Six months ended June 30, (dollars in thousands) Location 2019 2018 2019 2018 Derivative gain (loss) recognized into OCI: Natural gas contracts OCI $ (1,106 ) $ 123 $ (1,143 ) $ 334 Interest rate swaps OCI (4,987 ) 480 (8,465 ) 1,733 Total $ (6,093 ) $ 603 $ (9,608 ) $ 2,067 Derivative gain (loss) reclassified from accumulated OCI to current earnings: Natural gas contracts Cost of Sales $ (65 ) $ (36 ) $ 63 $ (234 ) Interest rate swaps Interest expense 335 40 690 (103 ) Total $ 270 $ 4 $ 753 $ (337 ) |
Natural Gas Contracts | |
Derivative [Line Items] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | The following table presents the notional amount of our natural gas derivatives on the Condensed Consolidated Balance Sheets: Notional Amounts Derivative Types Unit of Measure June 30, 2019 December 31, 2018 Natural gas contracts Millions of British Thermal Units (MMBTUs) 3,710,000 3,150,000 |
Interest Rate Swaps | |
Derivative [Line Items] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | The table below lists the interest rate swaps we executed as part of our risk management strategy to mitigate the risks associated with the fluctuating interest rates under our Term Loan B. The interest rate swaps effectively convert a portion of our Term Loan B debt from a variable interest rate to a fixed interest rate, thus reducing the impact of interest rate changes on future income. Swap execution date Effective date Expiration date Notional amount Fixed swap rate April 1, 2015 January 11, 2016 January 9, 2020 $220.0 million 4.85 % September 24, 2018 January 9, 2020 January 9, 2025 $200.0 million 6.19 % (1) ________________________ (1) Upon refinancing our Term Loan B, the fixed interest rate will be 3.19 percent plus the new refinanced credit spread. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive income (loss) (AOCI), net of tax, is as follows: Three months ended June 30, 2019 Foreign Currency Translation Derivative Instruments Pension and Other Post-retirement Benefits Accumulated Other Balance on March 31, 2019 $ (23,266 ) $ (5,920 ) $ (87,522 ) $ (116,708 ) Amounts recognized into AOCI (533 ) (6,093 ) 1,148 (5,478 ) Currency impact — — (84 ) (84 ) Amounts reclassified from AOCI — (270 ) (1) 945 (2) 675 Tax effect 262 1,533 (499 ) 1,296 Other comprehensive income (loss), net of tax (271 ) (4,830 ) 1,510 (3,591 ) Balance on June 30, 2019 $ (23,537 ) $ (10,750 ) $ (86,012 ) $ (120,299 ) Six months ended June 30, 2019 Foreign Currency Translation Derivative Instruments Pension and Other Post-retirement Benefits Accumulated Other Balance on December 31, 2018 $ (23,240 ) $ (2,866 ) $ (88,299 ) $ (114,405 ) Amounts recognized into AOCI (289 ) (9,608 ) 1,148 (8,749 ) Currency impact — — (50 ) (50 ) Amounts reclassified from AOCI — (753 ) (1) 1,915 (2) 1,162 Tax effect (8 ) 2,477 (726 ) 1,743 Other comprehensive income (loss), net of tax (297 ) (7,884 ) 2,287 (5,894 ) Balance on June 30, 2019 $ (23,537 ) $ (10,750 ) $ (86,012 ) $ (120,299 ) Three months ended June 30, 2018 Foreign Currency Translation Derivative Instruments Pension and Other Post-retirement Benefits Accumulated Other Balance on March 31, 2018 $ (11,850 ) $ 1,546 $ (88,585 ) $ (98,889 ) Amounts recognized into AOCI (7,392 ) 603 1,527 (5,262 ) Currency impact — — 524 524 Amounts reclassified from AOCI — (4 ) (1) 1,564 (2) 1,560 Tax effect — (127 ) (736 ) (863 ) Other comprehensive income (loss), net of tax (7,392 ) 472 2,879 (4,041 ) Balance on June 30, 2018 $ (19,242 ) $ 2,018 $ (85,706 ) $ (102,930 ) Six months ended June 30, 2018 Foreign Currency Translation Derivative Instruments Pension and Other Post-retirement Benefits Accumulated Other Balance on December 31, 2017 $ (16,183 ) $ 351 $ (89,340 ) $ (105,172 ) Cumulative-effect adjustment for the adoption of ASU 2017-12 — (275 ) — (275 ) Amounts recognized into AOCI (3,059 ) 2,067 1,527 535 Currency impact — — 40 40 Amounts reclassified from AOCI — 337 (1) 3,170 (2) 3,507 Tax effect — (462 ) (1,103 ) (1,565 ) Other comprehensive income (loss), net of tax (3,059 ) 1,942 3,634 2,517 Balance on June 30, 2018 $ (19,242 ) $ 2,018 $ (85,706 ) $ (102,930 ) ___________________________ (1) We reclassified natural gas contracts through cost of sales and the interest rate swaps through interest expense on the Condensed Consolidated Statements of Operations. See note 8 for additional information. (2) We reclassified the net pension and non-pension post-retirement benefits amortization and settlement charges through other income (expense) on the Condensed Consolidated Statements of Operations. See note 6 for additional information. |
Segments (Tables)
Segments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Reconciliation from Segment Totals to Consolidated [Table Text Block] | Three months ended June 30, Six months ended June 30, (dollars in thousands) 2019 2018 2019 2018 Net Sales: U.S. & Canada $ 128,897 $ 128,474 $ 238,803 $ 236,415 Latin America 38,208 40,290 68,609 74,623 EMEA 32,678 38,175 60,720 70,423 Other 6,375 6,595 12,992 13,986 Consolidated $ 206,158 $ 213,534 $ 381,124 $ 395,447 Segment EBIT: U.S. & Canada $ 17,267 $ 13,358 $ 27,064 $ 18,082 Latin America 3,187 7,433 3,836 9,583 EMEA 2,763 2,621 2,713 3,626 Other (1,169 ) 660 (2,321 ) (469 ) Total Segment EBIT $ 22,048 $ 24,072 $ 31,292 $ 30,822 Reconciliation of Segment EBIT to Net Income (Loss): Segment EBIT $ 22,048 $ 24,072 $ 31,292 $ 30,822 Retained corporate costs (6,756 ) (8,536 ) (16,206 ) (15,246 ) Impairment of goodwill and other intangible assets (note 16) (46,881 ) — (46,881 ) — Interest expense (5,879 ) (5,456 ) (11,511 ) (10,540 ) Provision for income taxes (6,299 ) (6,092 ) (5,003 ) (4,009 ) Net income (loss) $ (43,767 ) $ 3,988 $ (48,309 ) $ 1,027 Depreciation & Amortization: U.S. & Canada $ 3,214 $ 3,052 $ 6,347 $ 6,439 Latin America 3,837 4,494 7,617 9,204 EMEA 1,706 1,940 3,405 3,949 Other 893 1,309 1,775 2,623 Corporate 341 445 778 904 Consolidated $ 9,991 $ 11,240 $ 19,922 $ 23,119 Capital Expenditures: U.S. & Canada $ 2,540 $ 5,592 $ 5,924 $ 12,729 Latin America 3,531 2,778 7,722 5,167 EMEA 1,392 1,449 3,738 2,743 Other 41 142 300 262 Corporate 435 117 616 448 Consolidated $ 7,939 $ 10,078 $ 18,300 $ 21,349 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents our net sales disaggregated by business channel: Three months ended June 30, Six months ended June 30, (dollars in thousands) 2019 2018 2019 2018 Foodservice $ 86,999 $ 93,194 $ 157,816 $ 169,367 Retail 60,222 61,670 115,795 117,431 Business-to-business 58,937 58,670 107,513 108,649 Consolidated $ 206,158 $ 213,534 $ 381,124 $ 395,447 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | The fair value of our derivative financial instruments by level is as follows: Fair Value at Fair Value at Asset / (Liability) (dollars in thousands) June 30, 2019 December 31, 2018 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Commodity futures natural gas contracts $ — $ (941 ) $ — $ (941 ) $ — $ 265 $ — $ 265 Interest rate swaps — (13,443 ) — (13,443 ) — (4,288 ) — (4,288 ) Net derivative asset (liability) $ — $ (14,384 ) $ — $ (14,384 ) $ — $ (4,023 ) $ — $ (4,023 ) |
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: June 30, 2019 December 31, 2018 (dollars in thousands) Fair Value Hierarchy Level Carrying Amount Fair Value Carrying Amount Fair Value Term Loan B Level 2 $ 378,000 $ 291,060 $ 380,200 $ 362,141 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lease Costs and Supplemental Cash Flow Information Related to Leases | The following table presents the lease costs and supplemental cash flow information related to our operating leases: (dollars in thousands) Three months ended June 30, 2019 Six months ended June 30, 2019 Operating lease costs $ 3,972 $ 7,933 Short-term lease costs (1) 938 1,818 Total lease costs $ 4,910 $ 9,751 (1) Includes variable lease costs which are immaterial. Cash paid for operating leases included in the measurement of lease liabilities $ 7,847 ROU assets obtained in exchange for lease liabilities $ 73,041 |
Reconciliation of Undiscounted Cash Flows to the Operating Lease Liability | The following table reconciles the undiscounted cash flows to the operating lease liabilities recorded on the balance sheet: (dollars in thousands) June 30, 2019 2019 (remainder of year) $ 7,850 2020 14,432 2021 10,966 2022 9,742 2023 9,096 2024 and thereafter 23,884 Total minimum lease payments 75,970 Less: interest (9,420 ) Present value of future minimum lease payments 66,550 Less: lease liabilities (current portion) (12,800 ) Noncurrent lease liabilities $ 53,750 |
Future Minimum Rental Payments Under Operating Leases | As presented in our 2018 Form 10-K, the future minimum rental commitments under ASC 840 for non-cancelable operating leases as of December 31, 2018, was as follows (dollars in thousands): 2019 2020 2021 2022 2023 2024 and thereafter $15,407 $13,787 $10,339 $9,143 $8,551 $20,755 |
Other Income (Expense) (Tables)
Other Income (Expense) (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, Six months ended June 30, (dollars in thousands) 2019 2018 2019 2018 Gain (loss) on currency transactions $ (186 ) $ 2,662 $ (1,349 ) $ 1,012 Pension and non-pension benefits, excluding service cost (365 ) (243 ) (771 ) (583 ) Other non-operating income (expense) (69 ) 161 (84 ) 44 Other income (expense) $ (620 ) $ 2,580 $ (2,204 ) $ 473 |
Purchased Intangible Assets a_2
Purchased Intangible Assets and Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Purchased Intangibles | Changes in purchased intangibles balances are as follows: (dollars in thousands) Six months ended June 30, 2019 Beginning balance December 31, 2018 $ 13,385 Amortization (484 ) Impairment (see below) (900 ) Foreign currency impact (24 ) Ending balance June 30, 2019 $ 11,977 |
Composition of Purchased Intangible Assets | Purchased intangible assets are composed of the following: (dollars in thousands) June 30, 2019 December 31, 2018 Indefinite life intangible assets $ 11,117 $ 12,035 Definite life intangible assets, net of accumulated amortization of $20,472 and $20,006 860 1,350 Total $ 11,977 $ 13,385 |
Changes in Goodwill | Changes in goodwill balances are as follows: (dollars in thousands) U.S. & Canada Latin America Total Beginning balance December 31, 2018: Goodwill $ 43,872 $ 125,681 $ 169,553 Accumulated impairment losses (5,441 ) (79,700 ) (85,141 ) Net beginning balance 38,431 45,981 84,412 Impairment (see below) — (45,981 ) (45,981 ) Ending balance June 30, 2019: Goodwill 43,872 125,681 169,553 Accumulated impairment losses (5,441 ) (125,681 ) (131,122 ) Net ending balance $ 38,431 $ — $ 38,431 |
Description of the Business (De
Description of the Business (Details) | Jun. 30, 2019plantcountry |
Production Operations | |
Description of Business [Line Items] | |
Number of countries in which entity operates | 5 |
Sales Operations | Minimum | |
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 Polici_4
Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||||||
Stock-based compensation expense | $ 993,000 | $ 1,166,000 | $ 1,935,000 | $ 1,456,000 | |||
Operating lease right-of-use assets | 65,571,000 | 65,571,000 | $ 0 | ||||
Operating lease liability | 66,550,000 | 66,550,000 | |||||
Cumulative-effect adjustment for the adoption of ASU 2016-02 | $ 0 | ||||||
Reclassification out of property, plant and equipment | 256,900,000 | 256,900,000 | 264,960,000 | ||||
Reclassification into other assets | 11,623,000 | $ 11,623,000 | 7,660,000 | ||||
Software | Minimum | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Useful life | 3 years | ||||||
Software | Maximum | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Useful life | 10 years | ||||||
Cloud Computing Arrangements | Minimum | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Useful life | 3 years | ||||||
Cloud Computing Arrangements | Maximum | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Useful life | 10 years | ||||||
Prepaid and other current assets | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Implementation costs | 300,000 | $ 300,000 | |||||
Other assets | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Implementation costs | $ 4,100,000 | $ 4,100,000 | |||||
Accounting Standards Update 2016-02 | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Operating lease right-of-use assets | $ 69,000,000 | ||||||
Operating lease liability | 69,000,000 | ||||||
Cumulative-effect adjustment for the adoption of ASU 2016-02 | $ 0 | ||||||
Accounting Standards Update 2018-15 | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Reclassification out of property, plant and equipment | (2,800,000) | ||||||
Reclassification into other assets | $ 2,800,000 |
Balance Sheet Details (Details)
Balance Sheet Details (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts receivable: | ||
Accounts receivable | $ 92,950 | $ 83,977 |
Allowances for accounts receivable | 8,956 | 8,538 |
Inventories: | ||
Finished goods | 185,185 | 175,074 |
Work in process | 1,746 | 1,363 |
Raw materials | 3,608 | 4,026 |
Repair parts | 10,279 | 10,116 |
Operating supplies | 1,746 | 1,524 |
Total inventories, less loss provisions of $8,051 and $9,453 | 202,564 | 192,103 |
Inventory loss provisions | 8,051 | 9,453 |
Accrued liabilities: | ||
Accrued incentives | 22,740 | 19,359 |
Other accrued liabilities | 25,277 | 24,369 |
Total accrued liabilities | 48,017 | 43,728 |
Trade receivables | ||
Accounts receivable: | ||
Accounts receivable | 90,850 | 82,521 |
Other receivables | ||
Accounts receivable: | ||
Accounts receivable | $ 2,100 | $ 1,456 |
Borrowings (Debt Schedule) (Det
Borrowings (Debt Schedule) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Total borrowings | $ 425,680 | $ 400,068 | |
Less - unamortized discount and finance fees | 1,867 | 2,368 | |
Total borrowings -- net | 423,813 | 397,700 | |
Less -- long term debt due within one year | 4,400 | 4,400 | |
Total long-term portion of borrowings -- net | 419,413 | 393,300 | |
Libbey Glass | Senior Loans | |||
Debt Instrument [Line Items] | |||
Total borrowings | [1] | $ 378,000 | 380,200 |
Floating interest rate | 5.41% | ||
Libbey Glass and Europe | Asset-backed Loan Facility | Line of Credit | |||
Debt Instrument [Line Items] | |||
Total borrowings | [2],[3] | $ 47,680 | $ 19,868 |
Weighted average interest rate | 2.93% | ||
[1] | We have entered into interest rate swaps that effectively fix a series of our future interest payments on a portion of the Term Loan B debt. See interest rate swaps in note 8 for additional details. The Term Loan B floating interest rate was 5.41 percent at June 30, 2019. | ||
[2] | Maturity date will be January 9, 2021, if Term Loan B is not refinanced by this date. | ||
[3] | The interest rate for the ABL Facility is comprised of several different borrowings at various rates. The weighted average rate of all ABL Facility borrowings was 2.93 percent at June 30, 2019. |
Borrowings (ABL Credit Agreemen
Borrowings (ABL Credit Agreement Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Libbey Glass and Europe | Asset-backed Loan Facility | Letter of Credit | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 15 | |
Line of credit facility, amount outstanding | 8.6 | |
Libbey Glass and Europe | Asset-backed Loan Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | 100 | |
Line of credit facility, remaining borrowing capacity | 43.7 | $ 71.6 |
Subsidiary, Crisa Libbey Mexico S. de R.L. de C.V. | Line of Credit | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 3 |
Borrowings (LOC Agreement Narra
Borrowings (LOC Agreement Narrative) (Details) - USD ($) $ in Thousands | Jun. 17, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | |||
Total borrowings | $ 425,680 | $ 400,068 | |
Subsidiary, Crisa Libbey Mexico S. de R.L. de C.V. | Line of Credit | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | 3,000 | ||
Total borrowings | $ 0 | ||
Line of Credit | Subsidiary, Crisa Libbey Mexico S. de R.L. de C.V. | |||
Debt Instrument [Line Items] | |||
Interest rate spread, added to LIBOR | 3.20% |
Income Taxes (Details)
Income Taxes (Details) $ in Millions, $ in Billions | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Aug. 31, 2016USD ($) | Aug. 31, 2016MXN ($) | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||
Effective income tax rate, continuing operations | (11.60%) | 79.60% | ||
Nondeductible goodwill impairment charge | (24.80%) | |||
Mexican Tax Authority | Tax Year 2010 | ||||
Income Tax Contingency [Line Items] | ||||
Number of subsidiaries in a tax assessment | 1 | 1 | ||
Tax assessment | $ 157 | $ 3 |
Pension and Non-pension Post-_3
Pension and Non-pension Post-retirement Benefits (Net Benefit Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Defined Benefit Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 1,043 | $ 1,309 | $ 2,085 | $ 2,580 |
Interest cost | 4,154 | 3,883 | 8,305 | 7,811 |
Expected return on plan assets | (5,193) | (5,669) | (10,386) | (11,329) |
Amortization of unrecognized: | ||||
Prior service cost (credit) | (51) | (49) | (101) | (100) |
Actuarial loss / (gain) | 1,193 | 1,753 | 2,383 | 3,549 |
Pension expense or non-pension post-retirement benefit expense | 1,146 | 1,227 | 2,286 | 2,511 |
Defined Benefit Plan, Contributions [Abstract] | ||||
Employer contributions made to defined benefit plans | 400 | 1,700 | ||
Estimated employer contributions to defined benefit plans in remainder of 2019 | 1,700 | 1,700 | ||
Defined Benefit Pension Plan | Domestic Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 783 | 1,025 | 1,566 | 2,004 |
Interest cost | 3,382 | 3,142 | 6,764 | 6,307 |
Expected return on plan assets | (5,193) | (5,669) | (10,386) | (11,329) |
Amortization of unrecognized: | ||||
Prior service cost (credit) | 0 | 1 | 0 | 1 |
Actuarial loss / (gain) | 1,088 | 1,599 | 2,175 | 3,236 |
Pension expense or non-pension post-retirement benefit expense | 60 | 98 | 119 | 219 |
Defined Benefit Pension Plan | Foreign Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 260 | 284 | 519 | 576 |
Interest cost | 772 | 741 | 1,541 | 1,504 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of unrecognized: | ||||
Prior service cost (credit) | (51) | (50) | (101) | (101) |
Actuarial loss / (gain) | 105 | 154 | 208 | 313 |
Pension expense or non-pension post-retirement benefit expense | 1,086 | 1,129 | 2,167 | 2,292 |
Non-Pension Post-retirement Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 112 | 151 | 222 | 302 |
Interest cost | 458 | 465 | 936 | 931 |
Amortization of unrecognized: | ||||
Prior service cost (credit) | (71) | (70) | (141) | (141) |
Actuarial loss / (gain) | (125) | (70) | (225) | (138) |
Pension expense or non-pension post-retirement benefit expense | 374 | 476 | 792 | 954 |
Defined Benefit Plan, Contributions [Abstract] | ||||
Employer contributions made to defined benefit plans | 1,700 | 3,500 | ||
Estimated employer contributions to defined benefit plans in year 2019 | 5,500 | 5,500 | ||
Non-Pension Post-retirement Benefit Plans | Domestic Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 112 | 151 | 222 | 302 |
Interest cost | 449 | 455 | 918 | 911 |
Amortization of unrecognized: | ||||
Prior service cost (credit) | (71) | (70) | (141) | (141) |
Actuarial loss / (gain) | (106) | (53) | (188) | (105) |
Pension expense or non-pension post-retirement benefit expense | 384 | 483 | 811 | 967 |
Non-Pension Post-retirement Benefit Plans | Foreign Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 9 | 10 | 18 | 20 |
Amortization of unrecognized: | ||||
Prior service cost (credit) | 0 | 0 | 0 | 0 |
Actuarial loss / (gain) | (19) | (17) | (37) | (33) |
Pension expense or non-pension post-retirement benefit expense | $ (10) | $ (7) | $ (19) | $ (13) |
Net Income (Loss) per Share o_3
Net Income (Loss) per Share of Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Numerator for earnings per share: | ||||
Net income (loss) that is available to common shareholders | $ (43,767) | $ 3,988 | $ (48,309) | $ 1,027 |
Denominator for basic earnings per share: | ||||
Weighted average shares outstanding | 22,400,246 | 22,170,338 | 22,331,786 | 22,130,503 |
Denominator for diluted earnings per share: | ||||
Effect of stock options and restricted stock units | 0 | 185,550 | 0 | 36,584 |
Adjusted weighted average shares and assumed conversions | 22,400,246 | 22,355,888 | 22,331,786 | 22,167,087 |
Basic income (loss) per share | $ (1.95) | $ 0.18 | $ (2.16) | $ 0.05 |
Diluted income (loss) per share | $ (1.95) | $ 0.18 | $ (2.16) | $ 0.05 |
Anti-dilutive shares excluded from computation of diluted income (loss) per share | 1,939,290 | 752,375 | 1,700,192 | 982,386 |
Derivatives (Fair Value of Deri
Derivatives (Fair Value of Derivative Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | $ 0 | $ 1,690 |
Fair value, derivative liability | 14,384 | 5,713 |
Interest Rate Swaps | Designated as Hedging Instrument | Prepaid and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 0 | 1,425 |
Interest Rate Swaps | Designated as Hedging Instrument | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | 12,363 | 5,713 |
Interest Rate Swaps | Designated as Hedging Instrument | Accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | 1,080 | 0 |
Natural Gas Contracts | Designated as Hedging Instrument | Prepaid and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 0 | 226 |
Natural Gas Contracts | Designated as Hedging Instrument | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 0 | 39 |
Natural Gas Contracts | Designated as Hedging Instrument | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | 87 | 0 |
Natural Gas Contracts | Designated as Hedging Instrument | Accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | $ 854 | $ 0 |
Derivatives (Cash Settlements)
Derivatives (Cash Settlements) (Details) - Cash Flow Hedging - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative [Line Items] | ||||
Derivative, Additional Cash Settlements Received (Paid) on Hedge | $ 282 | $ (39) | $ 754 | $ (415) |
Natural Gas Contracts | ||||
Derivative [Line Items] | ||||
Derivative, Additional Cash Settlements Received (Paid) on Hedge | (65) | (36) | 63 | (234) |
Interest Rate Swaps | ||||
Derivative [Line Items] | ||||
Derivative, Additional Cash Settlements Received (Paid) on Hedge | $ 347 | $ (3) | $ 691 | $ (181) |
Derivatives (Summary of gains (
Derivatives (Summary of gains (losses) recognized in Statement of Operations and AOCI) (Details) - Cash Flow Hedging - Designated as Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative [Line Items] | ||||
Derivative gain (loss) reclassified from accumulated OCI to current earnings: | $ 270 | $ 4 | $ 753 | $ (337) |
Other Comprehensive Income (Loss) | ||||
Derivative [Line Items] | ||||
Derivative gain (loss) recognized into OCI: | (6,093) | 603 | (9,608) | 2,067 |
Other Comprehensive Income (Loss) | Natural Gas Contracts | ||||
Derivative [Line Items] | ||||
Derivative gain (loss) recognized into OCI: | (1,106) | 123 | (1,143) | 334 |
Other Comprehensive Income (Loss) | Interest Rate Swaps | ||||
Derivative [Line Items] | ||||
Derivative gain (loss) recognized into OCI: | (4,987) | 480 | (8,465) | 1,733 |
Cost of Sales | Natural Gas Contracts | ||||
Derivative [Line Items] | ||||
Derivative gain (loss) reclassified from accumulated OCI to current earnings: | (65) | (36) | 63 | (234) |
Interest Expense | Interest Rate Swaps | ||||
Derivative [Line Items] | ||||
Derivative gain (loss) reclassified from accumulated OCI to current earnings: | $ 335 | $ 40 | $ 690 | $ (103) |
Derivatives (Natural Gas Contra
Derivatives (Natural Gas Contracts) (Details) - Natural Gas Contracts $ in Millions | 6 Months Ended | |
Jun. 30, 2019USD ($)MMBTU | Dec. 31, 2018MMBTU | |
Derivative [Line Items] | ||
Gain (loss) to be reclassified from accumulated other comprehensive income (loss) into income | $ | $ (0.9) | |
Cash Flow Hedging | ||
Derivative [Line Items] | ||
Forecast of commodity requirements, maximum length of time used | 18 months | |
Derivative, nonmonetary notional amount | MMBTU | 3,710,000 | 3,150,000 |
Minimum | Cash Flow Hedging | ||
Derivative [Line Items] | ||
Forecast of anticipated requirements, percentage of forecast eligible for hedging | 40.00% | |
Maximum | Cash Flow Hedging | ||
Derivative [Line Items] | ||
Forecast of anticipated requirements, percentage of forecast eligible for hedging | 70.00% |
Derivatives (Interest Rate Swap
Derivatives (Interest Rate Swaps) (Details) - Interest Rate Swaps - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2019 | Sep. 24, 2018 | Apr. 01, 2015 | ||
Derivative [Line Items] | ||||
Derivative, fixed interest rate | 6.19% | [1] | 4.85% | |
Derivative, fixed interest rate excluding credit spread | 3.19% | |||
Senior Loans | Cash Flow Hedging | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | $ 200 | $ 220 | ||
Interest Expense | Cash Flow Hedging | ||||
Derivative [Line Items] | ||||
Gain (loss) to be reclassified from accumulated other comprehensive income (loss) into income | $ (1.1) | |||
[1] | Upon refinancing our Term Loan B, the fixed interest rate will be 3.19 percent plus the new refinanced credit spread. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Schedule of AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2017 | ||
Change in Accumulated Other Comprehensive Loss [Roll Forward] | ||||||
Beginning balance | $ (114,405) | |||||
Cumulative-effect adjustment for the adoption of ASU 2017-12 | $ 0 | |||||
Ending balance | $ (120,299) | (120,299) | ||||
Foreign Currency Translation | ||||||
Change in Accumulated Other Comprehensive Loss [Roll Forward] | ||||||
Beginning balance | (23,266) | $ (11,850) | (23,240) | $ (16,183) | ||
Cumulative-effect adjustment for the adoption of ASU 2017-12 | 0 | |||||
Amounts recognized into AOCI | (533) | (7,392) | (289) | (3,059) | ||
Currency impact | 0 | 0 | 0 | 0 | ||
Amounts reclassified from AOCI, Currency | 0 | 0 | 0 | 0 | ||
Tax effect | 262 | 0 | (8) | 0 | ||
Other comprehensive income (loss), net of tax | (271) | (7,392) | (297) | (3,059) | ||
Ending balance | (23,537) | (19,242) | (23,537) | (19,242) | ||
Derivative Instruments | ||||||
Change in Accumulated Other Comprehensive Loss [Roll Forward] | ||||||
Beginning balance | (5,920) | 1,546 | (2,866) | 351 | ||
Cumulative-effect adjustment for the adoption of ASU 2017-12 | (275) | |||||
Amounts recognized into AOCI | (6,093) | 603 | (9,608) | 2,067 | ||
Currency impact | 0 | 0 | 0 | 0 | ||
Amounts reclassified from AOCI, Derivatives | [1] | (270) | (4) | (753) | 337 | |
Tax effect | 1,533 | (127) | 2,477 | (462) | ||
Other comprehensive income (loss), net of tax | (4,830) | 472 | (7,884) | 1,942 | ||
Ending balance | (10,750) | 2,018 | (10,750) | 2,018 | ||
Pension and Other Post-retirement Benefits | ||||||
Change in Accumulated Other Comprehensive Loss [Roll Forward] | ||||||
Beginning balance | (87,522) | (88,585) | (88,299) | (89,340) | ||
Cumulative-effect adjustment for the adoption of ASU 2017-12 | 0 | |||||
Amounts recognized into AOCI | 1,148 | 1,527 | 1,148 | 1,527 | ||
Currency impact | (84) | 524 | (50) | 40 | ||
Amounts reclassified from AOCI, Pension/PRW | [2] | 945 | 1,564 | 1,915 | 3,170 | |
Tax effect | (499) | (736) | (726) | (1,103) | ||
Other comprehensive income (loss), net of tax | 1,510 | 2,879 | 2,287 | 3,634 | ||
Ending balance | (86,012) | (85,706) | (86,012) | (85,706) | ||
Accumulated Other Comprehensive Loss | ||||||
Change in Accumulated Other Comprehensive Loss [Roll Forward] | ||||||
Beginning balance | (116,708) | (98,889) | (114,405) | (105,172) | ||
Cumulative-effect adjustment for the adoption of ASU 2017-12 | $ (275) | |||||
Amounts recognized into AOCI | (5,478) | (5,262) | (8,749) | 535 | ||
Currency impact | (84) | 524 | (50) | 40 | ||
Amounts reclassified from AOCI | 675 | 1,560 | 1,162 | 3,507 | ||
Tax effect | 1,296 | (863) | 1,743 | (1,565) | ||
Other comprehensive income (loss), net of tax | (3,591) | (4,041) | (5,894) | 2,517 | ||
Ending balance | $ (120,299) | $ (102,930) | $ (120,299) | $ (102,930) | ||
[1] | We reclassified natural gas contracts through cost of sales and the interest rate swaps through interest expense on the Condensed Consolidated Statements of Operations. See note 8 for additional information. | |||||
[2] | We reclassified the net pension and non-pension post-retirement benefits amortization and settlement charges through other income (expense) on the Condensed Consolidated Statements of Operations. See note 6 for additional information. |
Segments (Details)
Segments (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Jun. 30, 2019USD ($)segment | Jun. 30, 2018USD ($) | |
Segment Reporting Information [Line Items] | ||||||
Number of reportable segments | segment | 3 | |||||
Net Sales: | ||||||
Revenues | $ 206,969 | $ 214,472 | $ 382,618 | $ 397,142 | ||
Segment EBIT: | ||||||
Segment EBIT | 22,048 | 24,072 | 31,292 | 30,822 | ||
Reconciliation of Segment EBIT to Net Income (Loss): | ||||||
Retained corporate costs | (6,756) | (8,536) | (16,206) | (15,246) | ||
Impairment of goodwill and other intangible assets (note 16) | (46,881) | 0 | (46,881) | 0 | ||
Interest expense | (5,879) | (5,456) | (11,511) | (10,540) | ||
Provision for income taxes | (6,299) | (6,092) | (5,003) | (4,009) | ||
Net income (loss) | (43,767) | $ (4,542) | 3,988 | $ (2,961) | (48,309) | 1,027 |
Depreciation & Amortization: | ||||||
Depreciation and amortization | 9,991 | 11,240 | 19,922 | 23,119 | ||
Capital Expenditures: | ||||||
Capital Expenditures | 7,939 | 10,078 | 18,300 | 21,349 | ||
United States & Canada | ||||||
Segment EBIT: | ||||||
Segment EBIT | 17,267 | 13,358 | 27,064 | 18,082 | ||
Depreciation & Amortization: | ||||||
Depreciation and amortization | 3,214 | 3,052 | 6,347 | 6,439 | ||
Capital Expenditures: | ||||||
Capital Expenditures | 2,540 | 5,592 | 5,924 | 12,729 | ||
Latin America | ||||||
Segment EBIT: | ||||||
Segment EBIT | 3,187 | 7,433 | 3,836 | 9,583 | ||
Depreciation & Amortization: | ||||||
Depreciation and amortization | 3,837 | 4,494 | 7,617 | 9,204 | ||
Capital Expenditures: | ||||||
Capital Expenditures | 3,531 | 2,778 | 7,722 | 5,167 | ||
EMEA | ||||||
Segment EBIT: | ||||||
Segment EBIT | 2,763 | 2,621 | 2,713 | 3,626 | ||
Depreciation & Amortization: | ||||||
Depreciation and amortization | 1,706 | 1,940 | 3,405 | 3,949 | ||
Capital Expenditures: | ||||||
Capital Expenditures | 1,392 | 1,449 | 3,738 | 2,743 | ||
Other Segments | ||||||
Segment EBIT: | ||||||
Segment EBIT | (1,169) | 660 | (2,321) | (469) | ||
Depreciation & Amortization: | ||||||
Depreciation and amortization | 893 | 1,309 | 1,775 | 2,623 | ||
Capital Expenditures: | ||||||
Capital Expenditures | 41 | 142 | 300 | 262 | ||
Corporate | ||||||
Depreciation & Amortization: | ||||||
Depreciation and amortization | 341 | 445 | 778 | 904 | ||
Capital Expenditures: | ||||||
Capital Expenditures | 435 | 117 | 616 | 448 | ||
Product | ||||||
Net Sales: | ||||||
Revenues | 206,158 | 213,534 | 381,124 | 395,447 | ||
Product | United States & Canada | ||||||
Net Sales: | ||||||
Revenues | 128,897 | 128,474 | 238,803 | 236,415 | ||
Product | Latin America | ||||||
Net Sales: | ||||||
Revenues | 38,208 | 40,290 | 68,609 | 74,623 | ||
Product | EMEA | ||||||
Net Sales: | ||||||
Revenues | 32,678 | 38,175 | 60,720 | 70,423 | ||
Product | Other Segments | ||||||
Net Sales: | ||||||
Revenues | $ 6,375 | $ 6,595 | $ 12,992 | $ 13,986 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 206,969 | $ 214,472 | $ 382,618 | $ 397,142 |
Product | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 206,158 | 213,534 | 381,124 | 395,447 |
Product | Foodservice | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 86,999 | 93,194 | 157,816 | 169,367 |
Product | Retail | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 60,222 | 61,670 | 115,795 | 117,431 |
Product | Business-to-business | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 58,937 | 58,670 | 107,513 | 108,649 |
Product | United States & Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 128,897 | 128,474 | 238,803 | 236,415 |
Product | Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 38,208 | 40,290 | 68,609 | 74,623 |
Product | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 32,678 | $ 38,175 | $ 60,720 | $ 70,423 |
Minimum | United States & Canada | Sales Revenue, Segment | Foodservice and Retail | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of revenue | 75.00% | 75.00% | 75.00% | 75.00% |
Minimum | Latin America | Sales Revenue, Segment | Retail and Business-to-business | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of revenue | 75.00% | 75.00% | 75.00% | 75.00% |
Minimum | EMEA | Sales Revenue, Segment | Retail and Business-to-business | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of revenue | 75.00% | 75.00% | 75.00% | 75.00% |
Fair Value (Details)
Fair Value (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Level 1 | ||
Fair Value of Financial Instruments | ||
Fair Value, Net Asset (Liability) | $ 0 | $ 0 |
Level 2 | ||
Fair Value of Financial Instruments | ||
Fair Value, Net Asset (Liability) | (14,384) | (4,023) |
Level 3 | ||
Fair Value of Financial Instruments | ||
Fair Value, Net Asset (Liability) | 0 | 0 |
Commodity futures natural gas contracts | Level 1 | ||
Fair Value of Financial Instruments | ||
Fair Value, Net Asset (Liability) | 0 | 0 |
Commodity futures natural gas contracts | Level 2 | ||
Fair Value of Financial Instruments | ||
Fair Value, Net Asset (Liability) | (941) | 265 |
Commodity futures natural gas contracts | Level 3 | ||
Fair Value of Financial Instruments | ||
Fair Value, Net Asset (Liability) | 0 | 0 |
Interest Rate Swaps | Level 1 | ||
Fair Value of Financial Instruments | ||
Fair Value, Net Asset (Liability) | 0 | 0 |
Interest Rate Swaps | Level 2 | ||
Fair Value of Financial Instruments | ||
Fair Value, Net Asset (Liability) | (13,443) | (4,288) |
Interest Rate Swaps | Level 3 | ||
Fair Value of Financial Instruments | ||
Fair Value, Net Asset (Liability) | 0 | 0 |
Total | ||
Fair Value of Financial Instruments | ||
Fair Value, Net Asset (Liability) | (14,384) | (4,023) |
Total | Commodity futures natural gas contracts | ||
Fair Value of Financial Instruments | ||
Fair Value, Net Asset (Liability) | (941) | 265 |
Total | Interest Rate Swaps | ||
Fair Value of Financial Instruments | ||
Fair Value, Net Asset (Liability) | $ (13,443) | $ (4,288) |
Fair Value Additional (Details)
Fair Value Additional (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | |
Value of Financial Instruments | |||
Term Loan B, Carrying Value | $ 425,680 | $ 400,068 | |
Senior Loans | Libbey Glass | |||
Value of Financial Instruments | |||
Term Loan B, Carrying Value | [1] | 378,000 | 380,200 |
Level 2 | Senior Loans | Libbey Glass | |||
Value of Financial Instruments | |||
Term Loan B, Fair Value | $ 291,060 | $ 362,141 | |
[1] | We have entered into interest rate swaps that effectively fix a series of our future interest payments on a portion of the Term Loan B debt. See interest rate swaps in note 8 for additional details. The Term Loan B floating interest rate was 5.41 percent at June 30, 2019. |
Leases (Narrative) (Details)
Leases (Narrative) (Details) | Jun. 30, 2019 |
Lessee, Lease, Description [Line Items] | |
Weighted average remaining lease term | 6 years 8 months 8 days |
Weighted average discount rate | 4.06% |
Real Estate | Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease renewal term | 1 year |
Real Estate | Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease renewal term | 20 years |
Equipment | Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease term | 2 years |
Equipment | Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease term | 8 years |
One Class of Equipment | |
Lessee, Lease, Description [Line Items] | |
Lease term | 15 years |
Leases (Lease Costs and Supplem
Leases (Lease Costs and Supplemental Cash Flow Information Related to Leases) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | ||
Leases [Abstract] | |||
Operating lease costs | $ 3,972 | $ 7,933 | |
Short-term lease costs (1) | [1] | 938 | 1,818 |
Total lease costs | $ 4,910 | 9,751 | |
Cash paid for operating leases included in the measurement of lease liabilities | 7,847 | ||
ROU assets obtained in exchange for lease liabilities | $ 73,041 | ||
[1] | Includes variable lease costs which are immaterial. |
Leases (Reconciliation of Undis
Leases (Reconciliation of Undiscounted Cash Flows to the Operating Lease Liability) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
2019 (remainder of year) | $ 7,850 | |
2020 | 14,432 | |
2021 | 10,966 | |
2022 | 9,742 | |
2023 | 9,096 | |
2024 and thereafter | 23,884 | |
Total minimum lease payments | 75,970 | |
Less: interest | (9,420) | |
Present value of future minimum lease payments | 66,550 | |
Less: lease liabilities (current portion) | (12,800) | $ 0 |
Noncurrent lease liabilities | $ 53,750 | $ 0 |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Future minimum rentals under operating leases: | |
Future minimum operating lease payments due, 2019 | $ 15,407 |
Future minimum operating lease payments due, 2020 | 13,787 |
Future minimum operating lease payments due, 2021 | 10,339 |
Future minimum operating lease payments due, 2022 | 9,143 |
Future minimum operating lease payments due, 2023 | 8,551 |
Future minimum operating lease payments due, 2024 and thereafter | $ 20,755 |
Other Income (Expense) (Details
Other Income (Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Component of Other Income (Expense), Nonoperating [Line Items] | ||||
Other income (expense) | $ (620) | $ 2,580 | $ (2,204) | $ 473 |
Gain (loss) on currency transactions | ||||
Component of Other Income (Expense), Nonoperating [Line Items] | ||||
Other income (expense) | (186) | 2,662 | (1,349) | 1,012 |
Pension and non-pension benefits, excluding service cost | ||||
Component of Other Income (Expense), Nonoperating [Line Items] | ||||
Other income (expense) | (365) | (243) | (771) | (583) |
Other Non-Operating Income (Expense) | ||||
Component of Other Income (Expense), Nonoperating [Line Items] | ||||
Other income (expense) | $ (69) | $ 161 | $ (84) | $ 44 |
Purchased Intangible Assets a_3
Purchased Intangible Assets and Goodwill (Changes in Purchased Intangibles Balances) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Intangible Assets [Roll Forward] | |
Beginning balance December 31, 2018 | $ 13,385 |
Amortization | (484) |
Impairment | (900) |
Foreign currency impact | (24) |
Ending balance June 30, 2019 | $ 11,977 |
Purchased Intangible Assets a_4
Purchased Intangible Assets and Goodwill (Composition of Purchased Intangibles) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Indefinite life intangible assets | $ 11,117 | $ 12,035 |
Definite life intangible assets, net of accumulated amortization of $20,472 and $20,006 | 860 | 1,350 |
Total | 11,977 | 13,385 |
Definite life intangible assets, accumulated amortization | $ 20,472 | $ 20,006 |
Purchased Intangible Assets a_5
Purchased Intangible Assets and Goodwill (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Impairment | $ 900 | |
Definite life intangible assets, amortization period | 20 years | |
Definite life intangible assets, weighted average remaining life | 5 years 6 months | |
Amortization | $ 484 | |
EMEA | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Impairment | $ 900 |
Purchased Intangible Assets a_6
Purchased Intangible Assets and Goodwill (Changes in Goodwill) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | |
Goodwill [Roll Forward] | ||
Goodwill | $ 169,553 | |
Accumulated impairment losses | (85,141) | |
Goodwill, net beginning balance | 84,412 | |
Impairment | (45,981) | |
Goodwill, ending balance | $ 169,553 | 169,553 |
Accumulated impairment losses | (131,122) | (131,122) |
Goodwill, net ending balance | 38,431 | $ 38,431 |
Valuation, Income Approach | ||
Goodwill [Line Items] | ||
Valuation approach allocation | 70.00% | |
Valuation, Market Approach | ||
Goodwill [Line Items] | ||
Valuation approach allocation | 30.00% | |
Mexico | ||
Goodwill [Roll Forward] | ||
Impairment | $ (46,000) | |
United States & Canada | ||
Goodwill [Line Items] | ||
Percentage of fair value in excess of carrying amount | 40.00% | 40.00% |
Goodwill [Roll Forward] | ||
Goodwill | $ 43,872 | |
Accumulated impairment losses | (5,441) | |
Goodwill, net beginning balance | 38,431 | |
Impairment | 0 | |
Goodwill, ending balance | $ 43,872 | 43,872 |
Accumulated impairment losses | (5,441) | (5,441) |
Goodwill, net ending balance | 38,431 | 38,431 |
Latin America | ||
Goodwill [Roll Forward] | ||
Goodwill | 125,681 | |
Accumulated impairment losses | (79,700) | |
Goodwill, net beginning balance | 45,981 | |
Impairment | (45,981) | |
Goodwill, ending balance | 125,681 | 125,681 |
Accumulated impairment losses | (125,681) | (125,681) |
Goodwill, net ending balance | $ 0 | $ 0 |