Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Jun. 12, 2020 | |
Document Information [Line Items] | ||
Entity Registrant Name | LIBBEY INC | |
Entity Central Index Key | 0000902274 | |
Trading Symbol | lby | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding (in shares) | 22,667,869 | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock, $.01 par value |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues | $ 151,164 | $ 175,649 |
Cost of sales | 128,241 | 141,691 |
Gross profit | 22,923 | 33,958 |
Selling, general and administrative expenses | 26,514 | 32,580 |
Asset impairments | 38,535 | |
Income (loss) from operations | (42,126) | 1,378 |
Other income (expense) | (10,652) | (1,584) |
Loss before interest and income taxes | (52,778) | (206) |
Interest expense | 5,591 | 5,632 |
Loss before income taxes | (58,369) | (5,838) |
Provision (benefit) for income taxes | 20,379 | (1,296) |
Net loss | $ (78,748) | $ (4,542) |
Net loss per share: | ||
Basic (in dollars per share) | $ (3.45) | $ (0.20) |
Diluted (in dollars per share) | (3.45) | (0.20) |
Dividends declared per share (in dollars per share) | ||
Product [Member] | ||
Revenues | $ 150,521 | $ 174,966 |
Shipping and Handling [Member] | ||
Revenues | $ 643 | $ 683 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net loss | $ (78,748) | $ (4,542) |
Other comprehensive income (loss): | ||
Pension and other post-retirement benefit adjustments, net of tax | 4,850 | 777 |
Derivative instruments adjustments, net of tax | 10,997 | (3,054) |
Foreign currency translation adjustments, net of tax | (1,637) | (26) |
Other comprehensive income (loss), net of tax | 14,210 | (2,303) |
Comprehensive income (loss) | $ (64,538) | $ (6,845) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 66,062 | $ 48,918 |
Accounts receivable — net | 61,919 | 81,307 |
Inventories — net | 189,490 | 174,797 |
Prepaid and other current assets | 18,008 | 17,683 |
Total current assets | 335,479 | 322,705 |
Pension Asset | 6,312 | 5,712 |
Purchased intangible assets — net | 11,702 | 11,875 |
Goodwill | 0 | 38,431 |
Deferred income taxes | 24,747 | |
Other assets | 14,487 | 14,608 |
Operating lease right-of-use assets | 69,761 | 54,686 |
Property, plant and equipment — net | 229,645 | 233,923 |
Total assets | 667,386 | 706,687 |
LIABILITIES AND SHAREHOLDERS' DEFICIT | ||
Accounts payable | 74,723 | 79,262 |
Salaries and wages | 18,444 | 30,188 |
Accrued liabilities | 38,545 | 50,657 |
Accrued income taxes | 338 | 382 |
Pension liability (current portion) | 2,072 | 2,543 |
Non-pension post-retirement benefits (current portion) | 3,808 | 3,817 |
Operating lease liabilities (current portion) | 11,585 | 12,769 |
Long-term debt due within one year | 18,124 | 16,124 |
Total current liabilities | 167,639 | 195,742 |
Long-term debt | 425,544 | 375,716 |
Pension liability | 38,308 | 46,619 |
Non-pension post-retirement benefits | 45,270 | 45,507 |
Noncurrent operating lease liabilities | 64,520 | 48,323 |
Deferred income taxes | 2,104 | 2,104 |
Other long-term liabilities | 13,930 | 18,463 |
Total liabilities | 757,315 | 732,474 |
Contingencies (Note 16) | ||
Shareholders’ deficit: | ||
Common stock, par value $.01 per share, 50,000,000 shares authorized, 22,604,579 shares issued in 2020 (22,360,125 shares issued in 2019) | 226 | 224 |
Capital in excess of par value | 338,789 | 338,395 |
Retained deficit | (319,208) | (240,460) |
Accumulated other comprehensive loss | (109,736) | (123,946) |
Total shareholders' deficit | (89,929) | (25,787) |
Total liabilities and shareholders' deficit | $ 667,386 | $ 706,687 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 22,604,579 | 22,360,125 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity (Deficit) (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance (in shares) at Dec. 31, 2018 | 22,157,220 | ||||
Balance at Dec. 31, 2018 | $ 222 | $ 335,517 | $ (171,441) | $ (114,405) | $ 49,893 |
Net 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 (in shares) | 116,348 | ||||
Stock issued | $ 1 | (8) | (7) | ||
Balance (in shares) at Mar. 31, 2019 | 22,273,568 | ||||
Balance at Mar. 31, 2019 | $ 223 | 336,129 | (175,983) | (116,708) | 43,661 |
Balance (in shares) at Dec. 31, 2019 | 22,360,125 | ||||
Balance at Dec. 31, 2019 | $ 224 | 338,395 | (240,460) | (123,946) | (25,787) |
Net loss | (78,748) | (78,748) | |||
Other comprehensive income (loss) | 14,210 | 14,210 | |||
Stock compensation expense | 569 | 569 | |||
Stock withheld for employee taxes | (173) | (173) | |||
Stock issued (in shares) | 244,454 | ||||
Stock issued | $ 2 | (2) | |||
Balance (in shares) at Mar. 31, 2020 | 22,604,579 | ||||
Balance at Mar. 31, 2020 | $ 226 | $ 338,789 | $ (319,208) | $ (109,736) | $ (89,929) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating activities: | ||
Net loss | $ (78,748) | $ (4,542) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 8,845 | 9,931 |
Asset impairments | 38,535 | |
Loss on derivatives de-designated as hedging instruments | 12,923 | |
Change in accounts receivable | 15,815 | 1,784 |
Change in inventories | (16,740) | (18,075) |
Change in accounts payable | 359 | 2,644 |
Accrued interest and amortization of discounts and finance fees | 432 | 285 |
Pension & non-pension post-retirement benefits, net | 367 | (977) |
Accrued liabilities & prepaid expenses | (24,308) | (12,054) |
Income taxes | 19,382 | (3,516) |
Cloud computing costs, net | (147) | (246) |
Share-based compensation expense | 534 | 942 |
Other operating activities | (3,145) | (81) |
Net cash used in operating activities | (25,896) | (23,905) |
Investing activities: | ||
Cash paid for property, plant and equipment | (6,408) | (10,361) |
Net cash used in investing activities | (6,408) | (10,361) |
Financing activities: | ||
Borrowings on Prepetition ABL Credit Facility | 53,000 | 42,300 |
Repayments on Prepetition ABL Credit Facility | (2,000) | (16,800) |
Other borrowings | 2,000 | |
Repayments on Prepetition Term Loan B | (1,100) | (1,100) |
Taxes paid on distribution of equity awards | (173) | (317) |
Debt refinancing costs | (1,350) | |
Net cash provided by financing activities | 50,377 | 24,083 |
Effect of exchange rate fluctuations on cash | (929) | 82 |
Increase (decrease) in cash | 17,144 | (10,101) |
Cash & cash equivalents at beginning of period | 48,918 | 25,066 |
Cash & cash equivalents at end of period | 66,062 | 14,965 |
Supplemental disclosure of cash flow information: | ||
Cash paid during the period for interest, net of capitalized interest | 5,073 | 5,147 |
Cash paid during the period for income taxes, net of refunds | $ 922 | $ 1,151 |
Note 1 - Description of the Bus
Note 1 - Description of the Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. Libbey is a leading global manufacturer and marketer of glass tableware products. We produce glass tableware in five 100 ® ® ® ® ® ® ® ® two Our website can be found at www.libbey.com 13 15 10 10 8 www.sec.gov 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 10 X. not three March 31, 2020 not may December 31, 2020 The balance sheet at December 31, 2019 not 8 10 December 31, 2019 Ability to Continue as a Going Concern The Company’s financial statements have been prepared under the assumption that it will continue as a going concern, which contemplates continuity of operations, realization of assets, and satisfaction of liabilities and commitments in the normal course of business. On June 1, 2020 ( 11 2 not 11 11 19 11 not not |
Note 2 - Subsequent Event - Cha
Note 2 - Subsequent Event - Chapter 11 Bankruptcy Filing | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Reorganization under Chapter 11 of US Bankruptcy Code Disclosure [Text Block] | 2. 11 Chapter 11 On June 1, 2020, 11 11 11 In re Libbey Glass Inc., et al. No. 20 11439 11 The Debtors' filing of the Chapter 11 ● Amended and Restated Credit Agreement, dated as of February 8, 2010 ( ● Credit Agreement, dated as of April 9, 2014 ( Due to the Chapter 11 11 Operation and Implications of the Chapter 11 The Debtors are authorized to continue to operate their businesses as “debtors-in-possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court. As debtors-in-possession under the Bankruptcy Code, the Debtors may not June 2, 2020, The Company’s financial statements contemplate the realization of assets and the satisfaction of liabilities in the normal course of business. Our ability to continue as a going concern is contingent upon our ability to comply with the financial and other covenants contained in the debtor-in-possession financing (the “DIP Financing”) described in note 5 11 11 The Company cannot predict the ultimate outcome of the Chapter 11 11 11, may may Financing during the Chapter 11 For details on financing during the Chapter 11 5 $160 Significant Bankruptcy Court Actions On June 2, 2020 first 11 5 first July 2, 2020 second 11 second NYSE American Listing Status The Company’s common stock (the “Common Stock”) was previously traded on the NYSE American LLC (the “NYSE American”) exchange under the symbol “LBY.” On June 1, 2020, 25 June 10, 2020, 10 June 2, 2020. no not not may no 11 11 |
Note 3 - Significant Accounting
Note 3 - Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 3. Cloud Computing Arrangements At March 31, 2020 December 31, 2019 0.3 7.1 $6.5 three March 31, 2020 2019 Stock-Based Compensation Expense Stock-based compensation expense charged to the Condensed Consolidated Statements of Operations is as follows: Three months ended March 31, (dollars in thousands) 2020 2019 Stock-based compensation expense $ 534 $ 942 New Accounting Standards Each change to U.S. GAAP is established by the Financial Accounting Standards Board (“FASB”) in the form of an Accounting Standards Update (“ASU”) to the FASB’s Accounting Standards Codification (“ASC”). We consider the applicability and impact of all ASUs. ASUs not not New Accounting Standards - Not In June 2016, 2016 13, Financial Instruments - Credit Losses 326 Measurement of Credit Losses on Financial Instruments 2016 13 December 15, 2019, tion permitted. In October 2019, December 15, 2022, not In December 2019, 2019 12, Income Taxes 740 Simplifying the Accounting for Income Taxes 740 2019 12 December 15, 2020, |
Note 4 - Balance Sheet Details
Note 4 - Balance Sheet Details | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Supplemental Balance Sheet Disclosures [Text Block] | 4. The following table provides detail of selected balance sheet items: (dollars in thousands) March 31, 2020 December 31, 2019 Accounts receivable: Trade receivables $ 60,892 $ 79,829 Other receivables 1,027 1,478 Total accounts receivable, less allowances of $7,961 and $10,803 $ 61,919 $ 81,307 Inventories: Finished goods $ 172,097 $ 157,348 Work in process 1,465 1,183 Raw materials 4,081 4,008 Repair parts 9,996 10,254 Operating supplies 1,851 2,004 Total inventories, less loss provisions of $7,693 and $7,750 $ 189,490 $ 174,797 Accrued liabilities: Accrued incentives $ 12,052 $ 24,337 Other accrued liabilities 26,493 26,320 Total accrued liabilities $ 38,545 $ 50,657 |
Note 5 - Borrowings
Note 5 - Borrowings | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 5. Prepetition Debt Prepetition borrowings consist of the following: March 31, December 31, (dollars in thousands) Interest Rate Maturity Date (1) 2020 2019 Prepetition ABL Credit Facility floating (2) December 7, 2022 $ 68,052 $ 17,386 Prepetition Term Loan B floating (3) April 9, 2021 374,700 375,800 Mexico working capital line of credit LIBOR + 3.2% (4) December 14, 2020 2,000 — Total borrowings 444,752 393,186 Less — unamortized discount and finance fees 1,084 1,346 Total borrowings — net 443,668 391,840 Less — long term debt due within one year 18,124 16,124 Total long-term portion of borrowings — net $ 425,544 $ 375,716 ________________________ ( 1 The filing of our Bankruptcy Petitions constituted an event of default with respect to our Prepetition Term Loan B and Prepetition ABL Credit Facility. The Mexico working capital line of credit was fully repaid and terminated on June 2, 2020. ( 2 The interest rate for the Prepetition ABL Credit Facility is comprised of several different borrowings at various rates. The weighted average rate of all Prepetition ABL Credit Facility borrowings was 2.37 March 31, 2020 ( 3 We have entered into interest rate swaps that effectively fix a series of our future interest payments on a portion of the Prepetition Term Loan B debt. See interest rate swaps in note 9 4.01 March 31, 2020 ( 4 The interest rate at March 31, 2020 4.27 The Prepetition ABL Credit Facility also provides for the issuance of up to $15.0 $100.0 March 31, 2020 $15.0 $5.4 March 31, 2020 $68.2 December 31, 2019 Subsequent Event - Debtor-in-Possession Financing Debtor-in-Possession Credit Facilities The Company has obtained new debtor-in-possession financing consisting of a senior secured asset based revolving credit facility (the “DIP ABL Credit Facility”), and a senior secured super-priority multi-draw term loan facility (the “DIP Term Loan”), and together, collectively, the (“DIP Facilities”). The DIP Facilities are subject to final approval by the Bankruptcy Court and are subject to customary conditions precedent. The DIP ABL Credit Facility On June 3, 2020, The DIP ABL Credit Facility provides for a secured debtor-in-possession revolving credit facility in an aggregate principal amount of up to $100.0 As a result of the filing of the Chapter 11 not Loans under the DIP ABL Credit Facility bear interest, at the option of the ABL Borrowers, of either ( 1 1.00 3.50 2 2.50 1.00 4.50 2 3.50 one hundred eighty 180 not thirty-five 35 may zero Certain advances under the DIP ABL Credit Facility include the repayment (or deemed repayment) of certain Prepetition ABL Credit Facility obligations with a corresponding dollar-for-dollar increase in the DIP ABL Credit Facility and the assumption or deemed re-issuance of Letters of Credit, Banking Services Obligations and Swap Obligations (as each term is defined in the Prepetition ABL Credit Agreement). Letters of Credit and other reserves are applied against the $100.0 11 The DIP ABL Credit Facility has: ● a senior lien on Prepetition ABL Priority Collateral (as defined in the Interim Order), ● a priority lien on 100 ● a priority lien on certain foreign collateral, and ● a junior lien on Prepetition Term Loan Priority Collateral (as defined in the Interim Order). DIP Term Loan On June 3, 2020, The DIP Term Loan is a multi-draw senior secured debtor-in-possession facility comprised of $60.0 $60.0 $30.0 June 3, 2020, The DIP Term Loan bears interest at a percentage per annum equal to: (i) for Eurocurrency Rate Loans, the Eurocurrency Rate (as defined in the DIP Term Loan Credit Agreement), subject to a 1.00 11.00 2.00 10.00 1.00 1.00 2.00 2.00 0.00 2.00 The DIP Term Loan matures on the earliest of (i) thirty-five 35 not 11 11 363 one hundred eighty 180 The DIP Term Loan has: ● a senior lien on the Prepetition Term Loan B Priority Collateral (as defined in the Interim Order), ● a junior lien on 100 ● a junior lien on certain foreign collateral, and ● a junior lien on the Prepetition ABL Priority Collateral (as defined in the Interim Order). The DIP Facilities The DIP Facilities contain customary representations, warranties and covenants that are typical and customary for debtor-in-possession facilities of this type, including, but not 11 On June 3, 2020, These DIP Facilities, coupled with our normal operating cash flows, are providing liquidity to support operations and our continued service of customers and end users globally during the court-supervised process. The foregoing summaries of the DIP Facilities do not 8 June 9, 2020, 4.1 4.2, |
Note 6 - Income Taxes
Note 6 - Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 6. 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 ( 34.9 three March 31, 2020 22.2 three March 31, 2019 three March 31, 2020 not not one The Company and its subsidiaries are subject to examination by various countries' tax authorities. These examinations may |
Note 7 - Pension and Non-pensio
Note 7 - Pension and Non-pension Post-retirement Benefits | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Retirement Benefits [Text Block] | 7. The components of our net pension expense, including the SERP (supplemental employee retirement plan), are as follows: Three months ended March 31, U.S. Plans Non-U.S. Plans Total (dollars in thousands) 2020 2019 2020 2019 2020 2019 Service cost $ 858 $ 783 $ 372 $ 259 $ 1,230 $ 1,042 Interest cost 2,952 3,382 841 769 3,793 4,151 Expected return on plan assets (5,164 ) (5,193 ) — — (5,164 ) (5,193 ) Amortization of unrecognized: Prior service cost (credit) — — (49 ) (50 ) (49 ) (50 ) Actuarial loss 1,857 1,087 228 103 2,085 1,190 Pension expense $ 503 $ 59 $ 1,392 $ 1,081 $ 1,895 $ 1,140 We have contributed $ 1.0 three March 31, 2020. 2020 1.6 The provision for our non-pension, post-retirement, benefit expense consists of the following: Three months ended March 31, U.S. Plans Non-U.S. Plans Total (dollars in thousands) 2020 2019 2020 2019 2020 2019 Service cost $ 110 $ 110 $ — $ — $ 110 $ 110 Interest cost 396 469 7 9 403 478 Amortization of unrecognized: Prior service (credit) (71 ) (70 ) — — (71 ) (70 ) Actuarial (gain) (62 ) (82 ) (19 ) (18 ) (81 ) (100 ) Non-pension post-retirement benefit expense $ 373 $ 427 $ (12 ) $ (9 ) $ 361 $ 418 Our 2020 3.9 0.8 three March 31, 2020 |
Note 8 - Net Loss Per Share of
Note 8 - Net Loss Per Share of Common Stock | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 8. The following table sets forth the computation of basic and diluted loss per share: Three months ended March 31, (dollars in thousands, except earnings per share) 2020 2019 Numerator for earnings per share: Net loss that is available to common shareholders $ (78,748 ) $ (4,542 ) Denominator for basic earnings per share: Weighted average shares outstanding 22,820,119 22,262,565 Denominator for diluted earnings per share: Effect of stock options and restricted stock units — — Adjusted weighted average shares and assumed conversions 22,820,119 22,262,565 Basic loss per share $ (3.45 ) $ (0.20 ) Diluted loss per share $ (3.45 ) $ (0.20 ) Anti-dilutive shares excluded from computation of diluted loss per share 1,771,269 1,483,470 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. |
Note 9 - Derivatives
Note 9 - Derivatives | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 9. 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. Prior to March 31, 2020, no March 31, 2020. 11 The counterparties for the derivative agreements are rated BBB+ or better as of March 31, 2020 Fair Values The following table provides the fair values of our derivative financial instruments for the periods presented: Fair Value of Derivative Assets (dollars in thousands) Balance Sheet Location March 31, 2020 December 31, 2019 Derivatives not designated as hedging instruments: Natural gas contracts Other assets $ 47 — Total undesignated derivative assets $ 47 $ — Fair Value of Derivative Liabilities Derivatives designated as hedging instruments: Interest rate swaps Accrued liabilities $ — $ 2,931 Interest rate swaps Other long-term liabilities — 11,632 Natural gas contracts Accrued liabilities — 836 Natural gas contracts Other long-term liabilities — 3 Total designated derivative liabilities $ — $ 15,402 Derivatives not designated as hedging instruments: Interest rate contract Accrued liabilities 4,446 — Interest rate contract Other long-term liabilities 8,056 — Natural gas contracts Accrued liabilities 468 — Total undesignated derivative liabilities 12,970 — Total derivative liabilities $ 12,970 $ 15,402 The following table presents cash settlements (paid) received related to the below derivatives: Three months ended March 31, (dollars in thousands) 2020 2019 Natural gas contracts $ (617 ) $ 128 Interest rate swaps (529 ) 344 Total $ (1,146 ) $ 472 The following table provides a summary of the impacts of derivative gain (loss) on the Condensed Consolidated Statements of Operations and other comprehensive income (OCI): Three months ended March 31, (dollars in thousands) Location 2020 2019 Derivative gain (loss) recognized into OCI: Natural gas contracts OCI $ (199 ) $ (37 ) Interest rate swaps OCI 1,273 (3,478 ) Total $ 1,074 $ (3,515 ) Derivative gain (loss) reclassified from accumulated OCI to current earnings: Natural gas contracts Cost of Sales $ (617 ) $ 128 Interest rate swaps Interest expense (788 ) 355 Total $ (1,405 ) $ 483 Derivatives de-designated as hedging instruments: Derivative gain (loss) recognized in current earnings: Interest rate swaps Other income (expense) $ (12,502 ) $ — Natural gas contracts Other income (expense) (421 ) — Total $ (12,923 ) $ — 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 70 18 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 March 31, 2020 December 31, 2019 Natural gas contracts Millions of British Thermal Units (MMBTUs) 3,060,000 2,460,000 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 March 31, 2020, no $0.4 15 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 Prepetition Term Loan B. Prior to March 31, 2020, 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 Includes a LIBOR portion that is fixed at 3.19 Our interest rate swaps are valued using the market standard methodology of netting discounted expected future variable cash receipts, the discounted future fixed cash payments, and credit risk of both the counterparties and the Company. The variable cash receipts are based on an expectation of future interest rates derived from observed market interest rate forward curves. At March 31, 2020, no 815, no no no March 31, 2020. $12.5 15 |
Note 10 - Accumulated Other Com
Note 10 - Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | 10. Accumulated other comprehensive income (loss) (AOCI), net of tax, is as follows: Three months ended March 31, 2020 (dollars in thousands) Foreign Currency Translation Derivative Instruments Pension and Other Post-retirement Benefits Accumulated Other Comprehensive Loss Balance on December 31, 2019 $ (25,147 ) $ (11,432 ) $ (87,367 ) $ (123,946 ) Amounts recognized into AOCI (1,637 ) 1,074 — (563 ) Currency impact — — 2,253 2,253 Amounts reclassified from AOCI — 1,405 (1) 1,884 (2) 3,289 Amounts reclassified from AOCI for derivatives de-designated — 12,923 (3) — 12,923 Tax effect — (4,405 ) 713 (3,692 ) Other comprehensive income (loss), net of tax (1,637 ) 10,997 4,850 14,210 Balance on March 31, 2020 $ (26,784 ) $ (435 ) $ (82,517 ) $ (109,736 ) Three months ended March 31, 2019 (dollars in thousands) Foreign Currency Translation Derivative Instruments Pension and Other Post-retirement Benefits Accumulated Other Comprehensive Loss Balance on December 31, 2018 $ (23,240 ) $ (2,866 ) $ (88,299 ) $ (114,405 ) Amounts recognized into AOCI 244 (3,515 ) — (3,271 ) Currency impact — — 34 34 Amounts reclassified from AOCI — (483 ) (1) 970 (2) 487 Tax effect (270 ) 944 (227 ) 447 Other comprehensive income (loss), net of tax (26 ) (3,054 ) 777 (2,303 ) Balance on March 31, 2019 $ (23,266 ) $ (5,920 ) $ (87,522 ) $ (116,708 ) _________________________ ( 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 9 ( 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 7 ( 3 Libbey de-designated the interest rate swaps and natural gas swaps as of March 31, 2020, no 9 |
Note 11 - Segments
Note 11 - Segments | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 11. Our segments are 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 not U.S. & Canada—includes sales of manufactured glassware products 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 not Certain activities not not The accounting policies of the reportable segments are the same as those for the Company. We do not 10 Three months ended March 31, (dollars in thousands) 2020 2019 Net Sales: U.S. & Canada $ 95,876 $ 109,906 Latin America 26,643 30,401 EMEA 25,280 28,042 Other 2,722 6,617 Consolidated $ 150,521 $ 174,966 Segment EBIT: U.S. & Canada $ 6,898 $ 9,797 Latin America 4,521 649 EMEA (1,610 ) (50 ) Other (1,372 ) (1,152 ) Total Segment EBIT $ 8,437 $ 9,244 Reconciliation of Segment EBIT to Net Loss: Segment EBIT $ 8,437 $ 9,244 Retained corporate costs (7,198 ) (9,450 ) Asset impairments (note 17) (38,535 ) — Fees associated with strategic initiative (406 ) — Debt refinancing & prepetition reorganization charges (note 15) (3,356 ) — Workforce reduction (517 ) — Loss on derivatives de-designated as hedging instruments (12,923 ) — Employee benefit liability adjustment (1) 1,720 — Interest expense (5,591 ) (5,632 ) (Provision) benefit for income taxes (20,379 ) 1,296 Net loss $ (78,748 ) $ (4,542 ) Depreciation & Amortization: U.S. & Canada $ 2,963 $ 3,133 Latin America 3,368 3,780 EMEA 1,314 1,699 Other 823 882 Corporate 377 437 Consolidated $ 8,845 $ 9,931 Capital Expenditures: U.S. & Canada $ 4,287 $ 3,384 Latin America 904 4,191 EMEA 1,190 2,346 Other 24 259 Corporate 3 181 Consolidated $ 6,408 $ 10,361 ______________________ ( 1 not |
Note 12 - Revenue
Note 12 - Revenue | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 12. 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 three March 31, 2020 2019 no March 31, 2020 December 31, 2019 Disaggregation of Revenue: The following table presents our net sales disaggregated by business channel: Three months ended March 31, (dollars in thousands) 2020 2019 Foodservice $ 55,326 $ 70,817 Retail 50,651 55,573 Business-to-business 44,544 48,576 Consolidated $ 150,521 $ 174,966 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 |
Note 13 - Fair Value
Note 13 - Fair Value | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 13. 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 • Level 1 • Level 2 • Level 3 The fair value of our derivative financial instruments by level is as follows: Fair Value at Fair Value at Asset / (Liability) March 31, 2020 December 31, 2019 (dollars in thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Commodity futures natural gas contracts $ — $ — $ (421 ) $ (421 ) $ — $ (839 ) $ — $ (839 ) Interest rate swaps — — (12,502 ) (12,502 ) — (14,563 ) — (14,563 ) Net derivative asset (liability) $ — $ — $ (12,923 ) $ (12,923 ) $ — $ (15,402 ) $ — $ (15,402 ) The fair values of our commodity futures natural gas contracts are determined using observable market inputs and credit risk of both the counterparties and the Company. The fair value of our interest rate swaps is based on the market standard methodology of netting discounted expected future variable cash receipts, the discounted future fixed cash payments, and credit risk of both the counterparties and the Company. The variable cash receipts are based on an expectation of future interest rates derived from observed market interest rate forward curves. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 3 March 31, 2020, $9.7 3 March 31, 2020. On January 1, 2020, no 3 three March 31, 2020, 2 3 no 3 March 31, 2020, 3 $12.9 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 Financial instruments carried at cost on the Condensed Consolidated Balance Sheets, as well as the related fair values, are as follows: Fair Value March 31, 2020 December 31, 2019 (dollars in thousands) Hierarchy Level Carrying Amount Fair Value Carrying Amount Fair Value Prepetition Term Loan B Level 2 $ 374,700 $ 168,615 $ 375,800 $ 304,398 The fair value of our Prepetition Term Loan B has been calculated based on quoted market prices for the same or similar issues, and the fair value of our Prepetition ABL Credit Facility and Mexico working capital line of credit approximate 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. |
Note 14 - Leases
Note 14 - Leases | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | 14. Globally, we lease certain warehouses, office space, showrooms, manufacturing and office equipment, automobiles and outlet stores. Many of the real estate leases contain one one 20 not first 2020, ten The following table reconciles the undiscounted cash flows to the operating lease liabilities recorded on the balance sheet: (dollars in thousands) March 31, 2020 December 31, 2019 2020 (remainder of year as of March 31, 2020) $ 11,027 $ 14,970 2021 13,401 11,255 2022 12,380 9,987 2023 11,731 9,283 2024 10,332 8,005 2025 and thereafter 29,797 15,768 Total minimum lease payments 88,668 69,268 Less: interest (12,563 ) (8,176 ) Present value of future minimum lease payments 76,105 61,092 Less: lease liabilities (current portion) (11,585 ) (12,769 ) Noncurrent lease liabilities $ 64,520 $ 48,323 |
Note 15 - Other Income (Expense
Note 15 - Other Income (Expense) | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Other Income and Other Expense Disclosure [Text Block] | 15. Items included in other income (expense) in the Condensed Consolidated Statements of Operations are as follows: Three months ended March 31, (dollars in thousands) 2020 2019 Gain (loss) on currency transactions $ 4,779 $ (1,163 ) Pension and non-pension benefits, excluding service cost (916 ) (406 ) Loss on derivatives de-designated as hedging instruments (note 9) (12,923 ) — Debt refinancing fees (2,088 ) — Prepetition reorganization charges (1,268 ) — Employee benefit liability adjustment 1,720 — Other non-operating income (expense) 44 (15 ) Other income (expense) $ (10,652 ) $ (1,584 ) |
Note 16 - Contingencies
Note 16 - Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Contingencies Disclosure [Text Block] | 16. 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 Although we cannot predict the ultimate outcome of these proceedings, we believe that these environmental proceedings will not no December 31, 2019 8. 17, 2019 10 On June 1, 2020, 11 362 2 Income Taxes The Company and its subsidiaries are subject to examination by various countries' tax authorities. These examinations may |
Note 17 - Purchased Intangible
Note 17 - Purchased Intangible Assets and Goodwill | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 17. Purchased Intangibles Changes in purchased intangibles balances are as follows: (dollars in thousands) Three months ended March 31, 2020 Beginning balance December 31, 2019 $ 11,875 Amortization (38 ) Impairment (see below) (104 ) Foreign currency impact (31 ) Ending balance March 31, 2020 $ 11,702 Purchased intangible assets are composed of the following: (dollars in thousands) March 31, 2020 December 31, 2019 Indefinite life intangible assets $ 10,983 $ 11,104 Definite life intangible assets, net of accumulated amortization of $20,486 and $20,507 719 771 Total $ 11,702 $ 11,875 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. March 31, 2020, ® ® 19 $0.1 first 2020 3 13 ® March 31, 2020, $0.8 not The remaining definite life intangible asset at March 31, 2020 20 4.8 10 December 31, 2019 Goodwill Changes in goodwill balances are as follows: (dollars in thousands) U.S. & Canada Latin America Total Beginning balance December 31, 2019: Goodwill $ 43,872 $ 125,681 $ 169,553 Accumulated impairment losses (5,441 ) (125,681 ) (131,122 ) Net beginning balance 38,431 — 38,431 Impairment (see below) (38,431 ) — (38,431 ) Ending balance March 31, 2020: Goodwill 43,872 125,681 169,553 Accumulated impairment losses (43,872 ) (125,681 ) (169,553 ) Net ending balance $ — $ — $ — Goodwill impairment tests are completed for each reporting unit on an annual basis, or more frequently in certain circumstances where impairment indicators arise. The inputs used for this analysis are considered Level 2 3 13 As part of our on-going assessment of goodwill at March 31, 2020, March 31, 2020. $38.4 first 2020. no 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 3 2 70 30 3 no As a result of the factors noted above, we also evaluated the fair value of the long-lived assets for each of our asset groups noting there were no March 31, 2020. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Cloud Computing Arrangements, Policy [Policy Text Block] | Cloud Computing Arrangements At March 31, 2020 December 31, 2019 0.3 7.1 $6.5 three March 31, 2020 2019 |
Share-based Payment Arrangement [Policy Text Block] | Stock-Based Compensation Expense Stock-based compensation expense charged to the Condensed Consolidated Statements of Operations is as follows: Three months ended March 31, (dollars in thousands) 2020 2019 Stock-based compensation expense $ 534 $ 942 |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Standards Each change to U.S. GAAP is established by the Financial Accounting Standards Board (“FASB”) in the form of an Accounting Standards Update (“ASU”) to the FASB’s Accounting Standards Codification (“ASC”). We consider the applicability and impact of all ASUs. ASUs not not New Accounting Standards - Not In June 2016, 2016 13, Financial Instruments - Credit Losses 326 Measurement of Credit Losses on Financial Instruments 2016 13 December 15, 2019, tion permitted. In October 2019, December 15, 2022, not In December 2019, 2019 12, Income Taxes 740 Simplifying the Accounting for Income Taxes 740 2019 12 December 15, 2020, |
Income Tax, Policy [Policy Text Block] | 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. |
Segment Reporting, Policy [Policy Text Block] | 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 not Certain activities not not |
Fair Value of Financial Instruments, Policy [Policy Text Block] | The fair values of our commodity futures natural gas contracts are determined using observable market inputs and credit risk of both the counterparties and the Company. The fair value of our interest rate swaps is based on the market standard methodology of netting discounted expected future variable cash receipts, the discounted future fixed cash payments, and credit risk of both the counterparties and the Company. The variable cash receipts are based on an expectation of future interest rates derived from observed market interest rate forward curves. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 3 |
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block] | 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. March 31, 2020, ® |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | 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 3 2 70 30 3 no |
Note 3 - Significant Accounti_2
Note 3 - Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block] | Three months ended March 31, (dollars in thousands) 2020 2019 Stock-based compensation expense $ 534 $ 942 |
Note 4 - Balance Sheet Details
Note 4 - Balance Sheet Details (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Condensed Balance Sheet [Table Text Block] | (dollars in thousands) March 31, 2020 December 31, 2019 Accounts receivable: Trade receivables $ 60,892 $ 79,829 Other receivables 1,027 1,478 Total accounts receivable, less allowances of $7,961 and $10,803 $ 61,919 $ 81,307 Inventories: Finished goods $ 172,097 $ 157,348 Work in process 1,465 1,183 Raw materials 4,081 4,008 Repair parts 9,996 10,254 Operating supplies 1,851 2,004 Total inventories, less loss provisions of $7,693 and $7,750 $ 189,490 $ 174,797 Accrued liabilities: Accrued incentives $ 12,052 $ 24,337 Other accrued liabilities 26,493 26,320 Total accrued liabilities $ 38,545 $ 50,657 |
Note 5 - Borrowings (Tables)
Note 5 - Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | March 31, December 31, (dollars in thousands) Interest Rate Maturity Date (1) 2020 2019 Prepetition ABL Credit Facility floating (2) December 7, 2022 $ 68,052 $ 17,386 Prepetition Term Loan B floating (3) April 9, 2021 374,700 375,800 Mexico working capital line of credit LIBOR + 3.2% (4) December 14, 2020 2,000 — Total borrowings 444,752 393,186 Less — unamortized discount and finance fees 1,084 1,346 Total borrowings — net 443,668 391,840 Less — long term debt due within one year 18,124 16,124 Total long-term portion of borrowings — net $ 425,544 $ 375,716 |
Note 7 - Pension and Non-pens_2
Note 7 - Pension and Non-pension Post-retirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Schedule of Net Benefit Costs [Table Text Block] | Three months ended March 31, U.S. Plans Non-U.S. Plans Total (dollars in thousands) 2020 2019 2020 2019 2020 2019 Service cost $ 858 $ 783 $ 372 $ 259 $ 1,230 $ 1,042 Interest cost 2,952 3,382 841 769 3,793 4,151 Expected return on plan assets (5,164 ) (5,193 ) — — (5,164 ) (5,193 ) Amortization of unrecognized: Prior service cost (credit) — — (49 ) (50 ) (49 ) (50 ) Actuarial loss 1,857 1,087 228 103 2,085 1,190 Pension expense $ 503 $ 59 $ 1,392 $ 1,081 $ 1,895 $ 1,140 Three months ended March 31, U.S. Plans Non-U.S. Plans Total (dollars in thousands) 2020 2019 2020 2019 2020 2019 Service cost $ 110 $ 110 $ — $ — $ 110 $ 110 Interest cost 396 469 7 9 403 478 Amortization of unrecognized: Prior service (credit) (71 ) (70 ) — — (71 ) (70 ) Actuarial (gain) (62 ) (82 ) (19 ) (18 ) (81 ) (100 ) Non-pension post-retirement benefit expense $ 373 $ 427 $ (12 ) $ (9 ) $ 361 $ 418 |
Note 8 - Net Loss Per Share o_2
Note 8 - Net Loss Per Share of Common Stock (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three months ended March 31, (dollars in thousands, except earnings per share) 2020 2019 Numerator for earnings per share: Net loss that is available to common shareholders $ (78,748 ) $ (4,542 ) Denominator for basic earnings per share: Weighted average shares outstanding 22,820,119 22,262,565 Denominator for diluted earnings per share: Effect of stock options and restricted stock units — — Adjusted weighted average shares and assumed conversions 22,820,119 22,262,565 Basic loss per share $ (3.45 ) $ (0.20 ) Diluted loss per share $ (3.45 ) $ (0.20 ) Anti-dilutive shares excluded from computation of diluted loss per share 1,771,269 1,483,470 |
Note 9 - Derivatives (Tables)
Note 9 - Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Schedule of Derivative Assets and Liabilities at Fair Value [Table Text Block] | Fair Value of Derivative Assets (dollars in thousands) Balance Sheet Location March 31, 2020 December 31, 2019 Derivatives not designated as hedging instruments: Natural gas contracts Other assets $ 47 — Total undesignated derivative assets $ 47 $ — Fair Value of Derivative Liabilities Derivatives designated as hedging instruments: Interest rate swaps Accrued liabilities $ — $ 2,931 Interest rate swaps Other long-term liabilities — 11,632 Natural gas contracts Accrued liabilities — 836 Natural gas contracts Other long-term liabilities — 3 Total designated derivative liabilities $ — $ 15,402 Derivatives not designated as hedging instruments: Interest rate contract Accrued liabilities 4,446 — Interest rate contract Other long-term liabilities 8,056 — Natural gas contracts Accrued liabilities 468 — Total undesignated derivative liabilities 12,970 — Total derivative liabilities $ 12,970 $ 15,402 |
Schedule of Derivative Instruments [Table Text Block] | Three months ended March 31, (dollars in thousands) 2020 2019 Natural gas contracts $ (617 ) $ 128 Interest rate swaps (529 ) 344 Total $ (1,146 ) $ 472 |
Derivative Instruments, Gain (Loss) [Table Text Block] | Three months ended March 31, (dollars in thousands) Location 2020 2019 Derivative gain (loss) recognized into OCI: Natural gas contracts OCI $ (199 ) $ (37 ) Interest rate swaps OCI 1,273 (3,478 ) Total $ 1,074 $ (3,515 ) Derivative gain (loss) reclassified from accumulated OCI to current earnings: Natural gas contracts Cost of Sales $ (617 ) $ 128 Interest rate swaps Interest expense (788 ) 355 Total $ (1,405 ) $ 483 Derivatives de-designated as hedging instruments: Derivative gain (loss) recognized in current earnings: Interest rate swaps Other income (expense) $ (12,502 ) $ — Natural gas contracts Other income (expense) (421 ) — Total $ (12,923 ) $ — Natural Gas Contracts |
Interest Rate Swap [Member] | |
Notes Tables | |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | 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) |
Natural Gas Contracts [Member] | |
Notes Tables | |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | Notional Amounts Derivative Types Unit of Measure March 31, 2020 December 31, 2019 Natural gas contracts Millions of British Thermal Units (MMBTUs) 3,060,000 2,460,000 |
Note 10 - Accumulated Other C_2
Note 10 - Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Three months ended March 31, 2020 (dollars in thousands) Foreign Currency Translation Derivative Instruments Pension and Other Post-retirement Benefits Accumulated Other Comprehensive Loss Balance on December 31, 2019 $ (25,147 ) $ (11,432 ) $ (87,367 ) $ (123,946 ) Amounts recognized into AOCI (1,637 ) 1,074 — (563 ) Currency impact — — 2,253 2,253 Amounts reclassified from AOCI — 1,405 (1) 1,884 (2) 3,289 Amounts reclassified from AOCI for derivatives de-designated — 12,923 (3) — 12,923 Tax effect — (4,405 ) 713 (3,692 ) Other comprehensive income (loss), net of tax (1,637 ) 10,997 4,850 14,210 Balance on March 31, 2020 $ (26,784 ) $ (435 ) $ (82,517 ) $ (109,736 ) Three months ended March 31, 2019 (dollars in thousands) Foreign Currency Translation Derivative Instruments Pension and Other Post-retirement Benefits Accumulated Other Comprehensive Loss Balance on December 31, 2018 $ (23,240 ) $ (2,866 ) $ (88,299 ) $ (114,405 ) Amounts recognized into AOCI 244 (3,515 ) — (3,271 ) Currency impact — — 34 34 Amounts reclassified from AOCI — (483 ) (1) 970 (2) 487 Tax effect (270 ) 944 (227 ) 447 Other comprehensive income (loss), net of tax (26 ) (3,054 ) 777 (2,303 ) Balance on March 31, 2019 $ (23,266 ) $ (5,920 ) $ (87,522 ) $ (116,708 ) |
Note 11 - Segments (Tables)
Note 11 - Segments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three months ended March 31, (dollars in thousands) 2020 2019 Net Sales: U.S. & Canada $ 95,876 $ 109,906 Latin America 26,643 30,401 EMEA 25,280 28,042 Other 2,722 6,617 Consolidated $ 150,521 $ 174,966 Segment EBIT: U.S. & Canada $ 6,898 $ 9,797 Latin America 4,521 649 EMEA (1,610 ) (50 ) Other (1,372 ) (1,152 ) Total Segment EBIT $ 8,437 $ 9,244 Reconciliation of Segment EBIT to Net Loss: Segment EBIT $ 8,437 $ 9,244 Retained corporate costs (7,198 ) (9,450 ) Asset impairments (note 17) (38,535 ) — Fees associated with strategic initiative (406 ) — Debt refinancing & prepetition reorganization charges (note 15) (3,356 ) — Workforce reduction (517 ) — Loss on derivatives de-designated as hedging instruments (12,923 ) — Employee benefit liability adjustment (1) 1,720 — Interest expense (5,591 ) (5,632 ) (Provision) benefit for income taxes (20,379 ) 1,296 Net loss $ (78,748 ) $ (4,542 ) Depreciation & Amortization: U.S. & Canada $ 2,963 $ 3,133 Latin America 3,368 3,780 EMEA 1,314 1,699 Other 823 882 Corporate 377 437 Consolidated $ 8,845 $ 9,931 Capital Expenditures: U.S. & Canada $ 4,287 $ 3,384 Latin America 904 4,191 EMEA 1,190 2,346 Other 24 259 Corporate 3 181 Consolidated $ 6,408 $ 10,361 |
Note 12 - Revenue (Tables)
Note 12 - Revenue (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three months ended March 31, (dollars in thousands) 2020 2019 Foodservice $ 55,326 $ 70,817 Retail 50,651 55,573 Business-to-business 44,544 48,576 Consolidated $ 150,521 $ 174,966 |
Note 13 - Fair Value (Tables)
Note 13 - Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | Fair Value at Fair Value at Asset / (Liability) March 31, 2020 December 31, 2019 (dollars in thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Commodity futures natural gas contracts $ — $ — $ (421 ) $ (421 ) $ — $ (839 ) $ — $ (839 ) Interest rate swaps — — (12,502 ) (12,502 ) — (14,563 ) — (14,563 ) Net derivative asset (liability) $ — $ — $ (12,923 ) $ (12,923 ) $ — $ (15,402 ) $ — $ (15,402 ) |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block] | Fair Value March 31, 2020 December 31, 2019 (dollars in thousands) Hierarchy Level Carrying Amount Fair Value Carrying Amount Fair Value Prepetition Term Loan B Level 2 $ 374,700 $ 168,615 $ 375,800 $ 304,398 |
Note 14 - Leases (Tables)
Note 14 - Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | (dollars in thousands) March 31, 2020 December 31, 2019 2020 (remainder of year as of March 31, 2020) $ 11,027 $ 14,970 2021 13,401 11,255 2022 12,380 9,987 2023 11,731 9,283 2024 10,332 8,005 2025 and thereafter 29,797 15,768 Total minimum lease payments 88,668 69,268 Less: interest (12,563 ) (8,176 ) Present value of future minimum lease payments 76,105 61,092 Less: lease liabilities (current portion) (11,585 ) (12,769 ) Noncurrent lease liabilities $ 64,520 $ 48,323 |
Note 15 - Other Income (Expen_2
Note 15 - Other Income (Expense) (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Schedule of Other Nonoperating Income (Expense) [Table Text Block] | Three months ended March 31, (dollars in thousands) 2020 2019 Gain (loss) on currency transactions $ 4,779 $ (1,163 ) Pension and non-pension benefits, excluding service cost (916 ) (406 ) Loss on derivatives de-designated as hedging instruments (note 9) (12,923 ) — Debt refinancing fees (2,088 ) — Prepetition reorganization charges (1,268 ) — Employee benefit liability adjustment 1,720 — Other non-operating income (expense) 44 (15 ) Other income (expense) $ (10,652 ) $ (1,584 ) |
Note 17 - Purchased Intangibl_2
Note 17 - Purchased Intangible Assets and Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Schedule of Changes in Acquired Intangible Assets [Table Text Block] | (dollars in thousands) Three months ended March 31, 2020 Beginning balance December 31, 2019 $ 11,875 Amortization (38 ) Impairment (see below) (104 ) Foreign currency impact (31 ) Ending balance March 31, 2020 $ 11,702 |
Schedule of Acquired Intangible Assets [Table Text Block] | (dollars in thousands) March 31, 2020 December 31, 2019 Indefinite life intangible assets $ 10,983 $ 11,104 Definite life intangible assets, net of accumulated amortization of $20,486 and $20,507 719 771 Total $ 11,702 $ 11,875 |
Schedule of Goodwill [Table Text Block] | (dollars in thousands) U.S. & Canada Latin America Total Beginning balance December 31, 2019: Goodwill $ 43,872 $ 125,681 $ 169,553 Accumulated impairment losses (5,441 ) (125,681 ) (131,122 ) Net beginning balance 38,431 — 38,431 Impairment (see below) (38,431 ) — (38,431 ) Ending balance March 31, 2020: Goodwill 43,872 125,681 169,553 Accumulated impairment losses (43,872 ) (125,681 ) (169,553 ) Net ending balance $ — $ — $ — |
Note 1 - Description of the B_2
Note 1 - Description of the Business and Basis of Presentation (Details Textual) | Mar. 31, 2020 |
Number of Countries in which Entity Operates | 5 |
UNITED STATES | |
Number of Glass Tableware Manufacturing Facilities | 2 |
Minimum [Member] | |
Number of Countries in which Entity Sales Products | 100 |
Note 2 - Subsequent Event - C_2
Note 2 - Subsequent Event - Chapter 11 Bankruptcy Filing (Details Textual) $ in Millions | Jun. 03, 2020USD ($) |
Debtor-in-Possession Credit Facilities [Member] | Subsequent Event [Member] | Senior Secured, Super-Priority Financing [Member] | |
Line of Credit Facility and Term Loan, Maximum Borrowing Capacity | $ 160 |
Note 3 - Significant Accounti_3
Note 3 - Significant Accounting Policies (Details Textual) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Prepaid Expenses and Other Current Assets [Member] | ||
Capitalized Computer Software Implementation Costs | $ 0.3 | $ 0.3 |
Other Assets [Member] | ||
Capitalized Computer Software Implementation Costs | $ 7.1 | $ 6.5 |
Note 3 - Significant Accounti_4
Note 3 - Significant Accounting Policies - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Stock-based compensation expense | $ 534 | $ 942 |
Note 4 - Balance Sheet Detail_2
Note 4 - Balance Sheet Details - Selected Balance Sheet Items (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts receivable: | ||
Trade receivables | $ 60,892 | $ 79,829 |
Other receivables | 1,027 | 1,478 |
Total accounts receivable, less allowances of $7,961 and $10,803 | 61,919 | 81,307 |
Inventories: | ||
Finished goods | 172,097 | 157,348 |
Work in process | 1,465 | 1,183 |
Raw materials | 4,081 | 4,008 |
Repair parts | 9,996 | 10,254 |
Operating supplies | 1,851 | 2,004 |
Total inventories, less loss provisions of $7,693 and $7,750 | 189,490 | 174,797 |
Accrued liabilities: | ||
Accrued incentives | 12,052 | 24,337 |
Other accrued liabilities | 26,493 | 26,320 |
Total accrued liabilities | $ 38,545 | $ 50,657 |
Note 4 - Balance Sheet Detail_3
Note 4 - Balance Sheet Details - Selected Balance Sheet Items (Details) (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Allowance for accounts receivable | $ 7,961 | $ 10,803 |
Inventory loss provisions | $ 7,693 | $ 7,750 |
Note 5 - Borrowings (Details Te
Note 5 - Borrowings (Details Textual) - USD ($) $ in Millions | Jun. 03, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Mexico Working Capital Line of Credit [Member] | |||
Line of Credit Facility, Interest Rate at Period End | 4.27% | ||
Debtor-in-Possession Asset Backed Loan Credit Facility[Member] | Secured Debtor-in-Possession Revolving Credit Facility [Member] | Subsequent Event [Member] | |||
Debt Instrument, LIBOR Floor | 1.00% | ||
Debtor-in-Possession Asset Backed Loan Credit Facility[Member] | Secured Debtor-in-Possession Revolving Credit Facility [Member] | Subsequent Event [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 3.50% | ||
Debtor-in-Possession Asset Backed Loan Credit Facility[Member] | Secured Debtor-in-Possession Revolving Credit Facility [Member] | Subsequent Event [Member] | CB Floating Rate [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | ||
Terminated Swap Obligations [Member] | Subsequent Event [Member] | |||
Debt Instrument, LIBOR Floor | 1.00% | ||
Terminated Swap Obligations [Member] | Subsequent Event [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 4.50% | ||
Terminated Swap Obligations [Member] | Subsequent Event [Member] | CB Floating Rate [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 3.50% | ||
Debtor-in-Possession Term Loan [Member] | Subsequent Event [Member] | |||
Percent of Equity of Foreign Subsidiaries with Priority Lien | 100.00% | ||
Debt Instrument, Face Amount | $ 60 | ||
Amount Available Upon Entry of Interim Order by Bankruptcy Court | $ 30 | ||
Debtor-in-Possession Term Loan [Member] | Subsequent Event [Member] | Eurodollar Loans [Member] | |||
Debt Instrument, LIBOR Floor | 1.00% | ||
Debt Instrument, Basis Spread on Variable Rate | 11.00% | ||
Debtor-in-Possession Term Loan [Member] | Subsequent Event [Member] | Base Rate Loans [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 10.00% | ||
Debt Instrument, Base Rate Floor | 2.00% | ||
Roll-up of Outstanding Prepetition Term Loan Obligations [Member] | Subsequent Event [Member] | |||
Debt Instrument, Face Amount | $ 60 | ||
Roll-up of Outstanding Prepetition Term Loan Obligations [Member] | Subsequent Event [Member] | Eurodollar Loans [Member] | |||
Debt Instrument, LIBOR Floor | 1.00% | ||
Debt Instrument, Percent Payable in Cash | 1.00% | ||
Debt Instrument, Paid-in-Kind Interest, Percent | 2.00% | ||
Roll-up of Outstanding Prepetition Term Loan Obligations [Member] | Subsequent Event [Member] | Base Rate Loans [Member] | |||
Debt Instrument, Base Rate Floor | 2.00% | ||
Debt Instrument, Percent Payable in Cash | 0.00% | ||
Debt Instrument, Paid-in-Kind Interest, Percent | 2.00% | ||
Libbey Glass and Europe [Member] | Prepetition ABL Facility [Member] | |||
Line of Credit Facility, Interest Rate at Period End | 2.37% | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 100 | ||
Line of Credit Facility, Remaining Borrowing Capacity | 5.4 | $ 68.2 | |
Libbey Glass and Europe [Member] | Prepetition ABL Facility [Member] | Letter of Credit [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 15 | ||
Long-term Line of Credit, Total | $ 15 | ||
Libbey Glass and Europe [Member] | Debtor-in-Possession Asset Backed Loan Credit Facility[Member] | Secured Debtor-in-Possession Revolving Credit Facility [Member] | Subsequent Event [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 100 | ||
Percent of Equity of Foreign Subsidiaries with Priority Lien | 100.00% | ||
Libbey Glass [Member] | Prepetition Term Loan B [Member] | |||
Prepetition Term Loan B, Percentage Bearing Variable Interest, Percentage Rate | 4.01% |
Note 5 - Borrowings - Borrowing
Note 5 - Borrowings - Borrowings (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2019 | ||
Prepetition ABL Credit Facility | $ 444,752 | $ 393,186 | |
Less — unamortized discount and finance fees | 1,084 | 1,346 | |
Total borrowings — net | 443,668 | 391,840 | |
Less — long term debt due within one year | 18,124 | 16,124 | |
Total long-term portion of borrowings — net | $ 425,544 | 375,716 | |
Prepetition ABL Facility [Member] | |||
Prepetition ABL Credit Facility | [1] | floating | |
Prepetition ABL Credit Facility | [2] | Dec. 7, 2022 | |
Prepetition ABL Credit Facility | $ 68,052 | 17,386 | |
Term Loan B [Member] | |||
Prepetition ABL Credit Facility | [3] | floating | |
Prepetition ABL Credit Facility | Apr. 9, 2021 | ||
Prepetition ABL Credit Facility | $ 374,700 | 375,800 | |
Mexico Working Capital Line of Credit [Member] | |||
Prepetition ABL Credit Facility | [4] | LIBOR + 3.2% | |
Prepetition ABL Credit Facility | Dec. 14, 2020 | ||
Prepetition ABL Credit Facility | $ 2,000 | ||
[1] | 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 2.37 percent at March 31, 2020. | ||
[2] | Maturity date will be January 9, 2021, if Term Loan B is not refinanced by this date. | ||
[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 9 for additional details. The Term Loan B floating interest rate was 4.01 percent at March 31, 2020. | ||
[4] | The interest rate at March 31, 2020 was 4.27 percent. |
Note 6 - Income Taxes (Details
Note 6 - Income Taxes (Details Textual) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Effective Income Tax Rate Reconciliation, Percent, Total | (34.90%) | 22.20% |
Note 7 - Pension and Non-pens_3
Note 7 - Pension and Non-pension Post-retirement Benefits (Details Textual) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Defined Benefit Pension Plan [Member] | |
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 1 |
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | 1.6 |
Non-Pension Post-retirement Benefit Plans [Member] | |
Defined Benefit Plan, Plan Assets, Contributions by Employer | 0.8 |
Defined Benefit Plan, Expected Future Employer Contributions, Current Fiscal Year | $ 3.9 |
Note 7 - Pension and Non-pens_4
Note 7 - Pension and Non-pension Post-retirement Benefits - Components of Pension Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Defined Benefit Pension Plan [Member] | ||
Service cost | $ 1,230 | $ 1,042 |
Interest cost | 3,793 | 4,151 |
Expected return on plan assets | (5,164) | (5,193) |
Prior service cost (credit) | (49) | (50) |
Actuarial (gain) loss | 2,085 | 1,190 |
Pension expense | 1,895 | 1,140 |
Defined Benefit Pension Plan [Member] | UNITED STATES | ||
Service cost | 858 | 783 |
Interest cost | 2,952 | 3,382 |
Expected return on plan assets | (5,164) | (5,193) |
Prior service cost (credit) | ||
Actuarial (gain) loss | 1,857 | 1,087 |
Pension expense | 503 | 59 |
Defined Benefit Pension Plan [Member] | Foreign Plan [Member] | ||
Service cost | 372 | 259 |
Interest cost | 841 | 769 |
Expected return on plan assets | ||
Prior service cost (credit) | (49) | (50) |
Actuarial (gain) loss | 228 | 103 |
Pension expense | 1,392 | 1,081 |
Non-Pension Post-retirement Benefit Plans [Member] | ||
Service cost | 110 | 110 |
Interest cost | 403 | 478 |
Prior service cost (credit) | (71) | (70) |
Actuarial (gain) loss | (81) | (100) |
Pension expense | 361 | 418 |
Non-Pension Post-retirement Benefit Plans [Member] | UNITED STATES | ||
Service cost | 110 | 110 |
Interest cost | 396 | 469 |
Prior service cost (credit) | (71) | (70) |
Actuarial (gain) loss | (62) | (82) |
Pension expense | 373 | 427 |
Non-Pension Post-retirement Benefit Plans [Member] | Foreign Plan [Member] | ||
Service cost | ||
Interest cost | 7 | 9 |
Prior service cost (credit) | ||
Actuarial (gain) loss | (19) | (18) |
Pension expense | $ (12) | $ (9) |
Note 8 - Net Loss Per Share o_3
Note 8 - Net Loss Per Share of Common Stock - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net loss that is available to common shareholders | $ (78,748) | $ (4,542) |
Weighted average shares outstanding (in shares) | 22,820,119 | 22,262,565 |
Effect of stock options and restricted stock units (in shares) | ||
Adjusted weighted average shares and assumed conversions (in shares) | 22,820,119 | 22,262,565 |
Basic loss per share (in dollars per share) | $ (3.45) | $ (0.20) |
Diluted loss per share (in dollars per share) | $ (3.45) | $ (0.20) |
Anti-dilutive shares excluded from computation of diluted loss per share (in shares) | 1,771,269 | 1,483,470 |
Note 9 - Derivatives (Details T
Note 9 - Derivatives (Details Textual) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Derivative, Fixed Interest Rate Excluding Credit Spread | 3.19% |
Cash Flow Hedging [Member] | Natural Gas Contracts [Member] | |
Maximum Length of Time Hedged in Cash Flow Hedge (Month) | 1 year 180 days |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 0.4 |
Cash Flow Hedging [Member] | Interest Rate Swaps [Member] | Interest Expense [Member] | |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 12.5 |
Minimum [Member] | Cash Flow Hedging [Member] | Natural Gas Contracts [Member] | |
Derivative, Nonmonetary Notional Amount, Percent of Required Need, Coverage | 40.00% |
Maximum [Member] | Cash Flow Hedging [Member] | Natural Gas Contracts [Member] | |
Derivative, Nonmonetary Notional Amount, Percent of Required Need, Coverage | 70.00% |
Note 9 - Derivatives - Fair Val
Note 9 - Derivatives - Fair Value of Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair value, derivative liabilities | $ 12,970 | $ 15,402 |
Designated as Hedging Instrument [Member] | ||
Fair value, derivative liabilities | 15,402 | |
Not Designated as Hedging Instrument [Member] | ||
Fair value, derivative liabilities | 12,970 | |
Not Designated as Hedging Instrument [Member] | Other Assets [Member] | ||
Fair value, derivative asset | 47 | |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Accrued Liabilities [Member] | ||
Fair value, derivative liabilities | 2,931 | |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Liabilities [Member] | ||
Fair value, derivative liabilities | 11,632 | |
Natural Gas Contracts [Member] | Designated as Hedging Instrument [Member] | Accrued Liabilities [Member] | ||
Fair value, derivative liabilities | 836 | |
Natural Gas Contracts [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Liabilities [Member] | ||
Fair value, derivative liabilities | 3 | |
Natural Gas Contracts [Member] | Not Designated as Hedging Instrument [Member] | Accrued Liabilities [Member] | ||
Fair value, derivative liabilities | 468 | |
Natural Gas Contracts [Member] | Not Designated as Hedging Instrument [Member] | Other Assets [Member] | ||
Fair value, derivative asset | 47 | |
Interest Rate Swaps [Member] | Not Designated as Hedging Instrument [Member] | Accrued Liabilities [Member] | ||
Fair value, derivative liabilities | 4,446 | |
Interest Rate Swaps [Member] | Not Designated as Hedging Instrument [Member] | Other Noncurrent Liabilities [Member] | ||
Fair value, derivative liabilities | $ 8,056 |
Note 9 - Derivatives - Cash Set
Note 9 - Derivatives - Cash Settlements (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative, Additional Cash Settlements Received (Paid) on Hedge | $ (1,146) | $ 472 |
Cash Flow Hedging [Member] | Natural Gas Contracts [Member] | ||
Derivative, Additional Cash Settlements Received (Paid) on Hedge | (617) | 128 |
Cash Flow Hedging [Member] | Interest Rate Swap [Member] | ||
Derivative, Additional Cash Settlements Received (Paid) on Hedge | $ (529) | $ 344 |
Note 9 - Derivatives - Summary
Note 9 - Derivatives - Summary of Gains (Losses) Recognized in Statement of Operations and AOCI (Details) - Cash Flow Hedging [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Designated as Hedging Instrument [Member] | ||
Derivative gain (loss) reclassified from accumulated OCI to current earnings | $ (1,405) | $ 483 |
Not Designated as Hedging Instrument [Member] | ||
Derivative gain (loss) recognized in current earnings | (12,923) | |
Other Comprehensive Income (Loss) [Member] | Designated as Hedging Instrument [Member] | ||
Derivative gain (loss) recognized into OCI | 1,074 | (3,515) |
Other Comprehensive Income (Loss) [Member] | Designated as Hedging Instrument [Member] | Natural Gas Contracts [Member] | ||
Derivative gain (loss) recognized into OCI | (199) | (37) |
Other Comprehensive Income (Loss) [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||
Derivative gain (loss) recognized into OCI | 1,273 | (3,478) |
Cost of Sales [Member] | Designated as Hedging Instrument [Member] | Natural Gas Contracts [Member] | ||
Derivative gain (loss) reclassified from accumulated OCI to current earnings | (617) | 128 |
Interest Expense [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||
Derivative gain (loss) reclassified from accumulated OCI to current earnings | (788) | 355 |
Other Operating Income (Expense) [Member] | Not Designated as Hedging Instrument [Member] | Natural Gas Contracts [Member] | ||
Derivative gain (loss) recognized in current earnings | (421) | |
Other Operating Income (Expense) [Member] | Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||
Derivative gain (loss) recognized in current earnings | $ (12,502) |
Note 9 - Derivatives - Natural
Note 9 - Derivatives - Natural Gas Contracts (Details) - MMBTU | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Cash Flow Hedging [Member] | Natural Gas Contracts [Member] | ||
Derivative, nonmonetary notional amount (Millions of British Thermal Unit) | 3,060,000 | 2,460,000 |
Note 9 - Derivatives - Interest
Note 9 - Derivatives - Interest Rate Swaps (Details) - Interest Rate Swap [Member] - USD ($) $ in Millions | Sep. 24, 2018 | Apr. 01, 2015 | |
Derivative, notional amount | $ 200 | $ 220 | |
Derivative, fixed interest rate | 6.19% | [1] | 4.85% |
[1] | Includes a LIBOR portion that is fixed at 3.19 percent plus the credit spread. |
Note 10 - Accumulated Other C_3
Note 10 - Accumulated Other Comprehensive Income (Loss) - Schedule of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Balance | $ (25,787) | $ 49,893 | |
Other comprehensive income (loss), net of tax | 14,210 | (2,303) | |
Balance | (89,929) | 43,661 | |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
Balance | (25,147) | (23,240) | |
Amounts recognized into AOCI | (1,637) | 244 | |
Currency impact | |||
Amounts reclassified from AOCI | |||
Amounts reclassified from AOCI for derivatives de-designated | |||
Tax effect | (270) | ||
Other comprehensive income (loss), net of tax | (1,637) | (26) | |
Balance | (26,784) | (23,266) | |
Derivative Instruments [Member] | |||
Balance | (11,432) | (2,866) | |
Amounts recognized into AOCI | 1,074 | (3,515) | |
Currency impact | |||
Amounts reclassified from AOCI | [1] | 1,405 | (483) |
Amounts reclassified from AOCI for derivatives de-designated | [2] | 12,923 | |
Tax effect | (4,405) | 944 | |
Other comprehensive income (loss), net of tax | 10,997 | (3,054) | |
Balance | (435) | (5,920) | |
Pension and Other Post-retirement Benefits [Member] | |||
Balance | (87,367) | (88,299) | |
Amounts recognized into AOCI | |||
Currency impact | 2,253 | 34 | |
Amounts reclassified from AOCI | [3] | 1,884 | 970 |
Amounts reclassified from AOCI for derivatives de-designated | |||
Tax effect | 713 | (227) | |
Other comprehensive income (loss), net of tax | 4,850 | 777 | |
Balance | (82,517) | (87,522) | |
AOCI Attributable to Parent [Member] | |||
Balance | (123,946) | (114,405) | |
Amounts recognized into AOCI | (563) | (3,271) | |
Currency impact | 2,253 | 34 | |
Amounts reclassified from AOCI | 3,289 | 487 | |
Amounts reclassified from AOCI for derivatives de-designated | 12,923 | ||
Tax effect | (3,692) | 447 | |
Other comprehensive income (loss), net of tax | 14,210 | (2,303) | |
Balance | $ (109,736) | $ (116,708) | |
[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 9 for additional information. | ||
[2] | Libbey de-designated the interest rate swap and natural gas swaps as of March 31, 2020 as the transactions were no longer probable of occurring. Amounts were reclassified to other income (expense). See note 9 for additional information. | ||
[3] | 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 7 for additional information. |
Note 11 - Segments (Details Tex
Note 11 - Segments (Details Textual) | 3 Months Ended |
Mar. 31, 2020 | |
Number of Reportable Segments | 3 |
Note 11 - Segments - Segments a
Note 11 - Segments - Segments and Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Net sales | $ 151,164 | $ 175,649 | |
Segment EBIT | 8,437 | 9,244 | |
Retained corporate costs | (7,198) | (9,450) | |
Asset impairments (note 17) | (38,535) | ||
Fees associated with strategic initiative | (406) | ||
Debt refinancing & prepetition reorganization charges (note 15) | (3,356) | ||
Workforce reduction | (517) | ||
Loss on derivatives de-designated as hedging instruments (note 9) | (12,923) | ||
Employee benefit liability adjustment (1) (note 15) | [1] | 1,720 | |
Interest expense | (5,591) | (5,632) | |
(Provision) benefit for income taxes | (20,379) | 1,296 | |
Net loss | (78,748) | (4,542) | |
Depreciation and amortization | 8,845 | 9,931 | |
Capital Expenditures | 6,408 | 10,361 | |
Product [Member] | |||
Net sales | 150,521 | 174,966 | |
U.S. and Canada Segment [Member] | |||
Segment EBIT | 6,898 | 9,797 | |
Depreciation and amortization | 2,963 | 3,133 | |
Capital Expenditures | 4,287 | 3,384 | |
U.S. and Canada Segment [Member] | Product [Member] | |||
Net sales | 95,876 | 109,906 | |
Latin America Segment [Member] | |||
Segment EBIT | 4,521 | 649 | |
Depreciation and amortization | 3,368 | 3,780 | |
Capital Expenditures | 904 | 4,191 | |
Latin America Segment [Member] | Product [Member] | |||
Net sales | 26,643 | 30,401 | |
EMEA Segment [Member] | |||
Segment EBIT | (1,610) | (50) | |
Depreciation and amortization | 1,314 | 1,699 | |
Capital Expenditures | 1,190 | 2,346 | |
EMEA Segment [Member] | Product [Member] | |||
Net sales | 25,280 | 28,042 | |
Other Segments [Member] | |||
Segment EBIT | (1,372) | (1,152) | |
Depreciation and amortization | 823 | 882 | |
Capital Expenditures | 24 | 259 | |
Other Segments [Member] | Product [Member] | |||
Net sales | 2,722 | 6,617 | |
Corporate Segment [Member] | |||
Depreciation and amortization | 377 | 437 | |
Capital Expenditures | $ 3 | $ 181 | |
[1] | Relates to a post-employment benefit liability adjustment within the U.S. and Canada Segment that was not related to current period operations and, therefore, excluded from Segment EBIT. |
Note 12 - Revenue (Details Text
Note 12 - Revenue (Details Textual) - Revenue Benchmark [Member] - Business Channels Concentration Risk [Member] - Minimum [Member] | 3 Months Ended |
Mar. 31, 2020 | |
EMEA Segment [Member] | Retail and Business-to-business [Member] | |
Concentration Risk, Percentage | 75.00% |
U.S. and Canada Segment [Member] | Foodservice and Retail [Member] | |
Concentration Risk, Percentage | 75.00% |
Latin America Segment [Member] | Retail and Business-to-business [Member] | |
Concentration Risk, Percentage | 75.00% |
Note 12 - Revenue - Net Sales D
Note 12 - Revenue - Net Sales Disaggregated by Business Channel (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net sales | $ 151,164 | $ 175,649 |
Product [Member] | ||
Net sales | 150,521 | 174,966 |
Product [Member] | Foodservice [Member] | ||
Net sales | 55,326 | 70,817 |
Product [Member] | Retail [Member] | ||
Net sales | 50,651 | 55,573 |
Product [Member] | Business-to-business [Member] | ||
Net sales | $ 44,544 | $ 48,576 |
Note 13 - Fair Value (Details T
Note 13 - Fair Value (Details Textual) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Derivative, Gain (Loss) on Derivative, Net, Total | $ (9.7) |
Fair Value, Inputs, Level 3 [Member] | |
Derivative Assets (Liabilities), at Fair Value, Net, Total | $ (12.9) |
Note 13 - Fair Value - Derivati
Note 13 - Fair Value - Derivative Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Net derivative asset (liability) | $ (12,923) | $ (15,402) |
Fair Value, Inputs, Level 1 [Member] | ||
Net derivative asset (liability) | ||
Fair Value, Inputs, Level 2 [Member] | ||
Net derivative asset (liability) | (15,402) | |
Fair Value, Inputs, Level 3 [Member] | ||
Net derivative asset (liability) | (12,923) | |
Commodity Contract [Member] | Fair Value, Recurring [Member] | ||
Net derivative asset (liability) | (421) | (839) |
Commodity Contract [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Net derivative asset (liability) | ||
Commodity Contract [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Net derivative asset (liability) | (839) | |
Commodity Contract [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Net derivative asset (liability) | (421) | |
Interest Rate Swap [Member] | Fair Value, Recurring [Member] | ||
Net derivative asset (liability) | (12,502) | (14,563) |
Interest Rate Swap [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Net derivative asset (liability) | ||
Interest Rate Swap [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Net derivative asset (liability) | (14,563) | |
Interest Rate Swap [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Net derivative asset (liability) | $ (12,502) |
Note 13 - Fair Value - Financia
Note 13 - Fair Value - Financial Instruments Carried at Cost, as Well as the Related Fair Values (Details) - Fair Value, Inputs, Level 2 [Member] - Term Loan B [Member] - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Reported Value Measurement [Member] | ||
Prepetition Term Loan B | $ 374,700 | $ 375,800 |
Estimate of Fair Value Measurement [Member] | ||
Prepetition Term Loan B | $ 168,615 | $ 304,398 |
Note 14 - Leases (Details Textu
Note 14 - Leases (Details Textual) - Land, Buildings and Improvements [Member] | Mar. 31, 2020 |
Lessee, Operating Lease, Term of Contract (Year) | 10 years |
Minimum [Member] | |
Lessee, Operating Lease, Renewal Term (Year) | 1 year |
Maximum [Member] | |
Lessee, Operating Lease, Renewal Term (Year) | 20 years |
Note 14 - Leases - Reconciliati
Note 14 - Leases - Reconciliation of Undiscounted Cash Flows to the Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
2020 (remainder of year as of March 31, 2020) | $ 11,027 | $ 14,970 |
2021 | 13,401 | 11,255 |
2022 | 12,380 | 9,987 |
2023 | 11,731 | 9,283 |
2024 | 10,332 | 8,005 |
2025 and thereafter | 29,797 | 15,768 |
Total minimum lease payments | 88,668 | 69,268 |
Less: interest | (12,563) | (8,176) |
Present value of future minimum lease payments | 76,105 | 61,092 |
Less: lease liabilities (current portion) | (11,585) | (12,769) |
Noncurrent lease liabilities | $ 64,520 | $ 48,323 |
Note 15 - Other Income (Expen_3
Note 15 - Other Income (Expense) - Other Income (Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Gain (loss) on currency transactions | $ 4,779 | $ (1,163) | |
Pension and non-pension benefits, excluding service cost | (916) | (406) | |
Loss on derivatives de-designated as hedging instruments (note 9) | (12,923) | ||
Debt refinancing fees | (2,088) | ||
Prepetition reorganization charges | (1,268) | ||
Employee benefit liability adjustment | [1] | 1,720 | |
Other non-operating income (expense) | 44 | (15) | |
Other income (expense) | $ (10,652) | $ (1,584) | |
[1] | Relates to a post-employment benefit liability adjustment within the U.S. and Canada Segment that was not related to current period operations and, therefore, excluded from Segment EBIT. |
Note 17 - Purchased Intangibl_3
Note 17 - Purchased Intangible Assets and Goodwill (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 104 | |
Indefinite-lived Intangible Assets (Excluding Goodwill), Ending Balance | $ 10,983 | $ 11,104 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life (Year) | 4 years 292 days | |
Goodwill, Impairment Loss | $ 38,431 | |
Goodwill, Ending Balance | $ 0 | $ 38,431 |
Valuation, Income Approach [Member] | ||
Fair Value Goodwill Valuation Approach Allocation | 70.00% | |
Valuation, Market Approach [Member] | ||
Fair Value Goodwill Valuation Approach Allocation | 30.00% | |
U.S. & Canada Reporting Unit [Member] | ||
Goodwill, Impairment Loss | $ 38,400 | |
Maximum [Member] | ||
Finite-Lived Intangible Asset, Useful Life (Year) | 20 years | |
Royal Leerdam Trade Name [Member] | ||
Indefinite-lived Intangible Assets (Excluding Goodwill), Ending Balance | $ 800 | |
EMEA Segment [Member] | ||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 100 |
Note 17 - Purchased Intangibl_4
Note 17 - Purchased Intangible Assets and Goodwill - Changes in Purchased Intangibles (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Beginning balance | $ 11,875 |
Amortization | (38) |
Impairment (see below) | (104) |
Foreign currency impact | (31) |
Ending balance | $ 11,702 |
Note 17 - Purchased Intangibl_5
Note 17 - Purchased Intangible Assets and Goodwill - Purchased Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Indefinite life intangible assets | $ 10,983 | $ 11,104 |
Definite life intangible assets, net of accumulated amortization of $20,486 and $20,507 | 719 | 771 |
Total | $ 11,702 | $ 11,875 |
Note 17 - Purchased Intangibl_6
Note 17 - Purchased Intangible Assets and Goodwill - Purchased Intangible Assets (Details) (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Definite life intangible assets, accumulated amortization | $ 20,486 | $ 20,507 |
Note 17 - Purchased Intangibl_7
Note 17 - Purchased Intangible Assets and Goodwill - Changes in Goodwill (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Goodwill | $ 169,553 |
Accumulated impairment losses, beiginning balance | (131,122) |
Net beginning balance, beiginning balance | 38,431 |
Impairment (see below) | (38,431) |
Goodwill | 169,553 |
Accumulated impairment losses, ending balance | (169,553) |
Goodwill, net | 0 |
U.S. and Canada Segment [Member] | |
Goodwill | 43,872 |
Accumulated impairment losses, beiginning balance | (5,441) |
Net beginning balance, beiginning balance | 38,431 |
Impairment (see below) | (38,431) |
Goodwill | 43,872 |
Accumulated impairment losses, ending balance | (43,872) |
Goodwill, net | |
Latin America Segment [Member] | |
Goodwill | 125,681 |
Accumulated impairment losses, beiginning balance | (125,681) |
Net beginning balance, beiginning balance | |
Impairment (see below) | |
Goodwill | 125,681 |
Accumulated impairment losses, ending balance | (125,681) |
Goodwill, net |