LIBBEY INC, 10-Q filed on 5/10/2013
Quarterly Report
Document and Entity Information
3 Months Ended
Mar. 31, 2013
Apr. 30, 2013
Entity Information [Line Items]
 
 
Entity Registrant Name
LIBBEY INC 
 
Entity Central Index Key
0000902274 
 
Current Fiscal Year End Date
--03-31 
 
Entity Filer Category
Accelerated Filer 
 
Document Type
10-Q 
 
Document Period End Date
Mar. 31, 2013 
 
Document Fiscal Year Focus
2013 
 
Document Fiscal Period Focus
Q1 
 
Amendment Flag
false 
 
Entity Common Stock, Shares Outstanding
 
20,997,945 
Condensed Consolidated Statements of Operations (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Net sales
$ 183,476 
$ 187,829 
Freight billed to customers
752 
708 
Total revenues
184,228 
188,537 
Cost of sales
141,996 
145,481 
Gross profit
42,232 
43,056 
Selling, general and administrative expenses
26,397 
28,126 
Special charges
4,314 
Income from operations
11,521 
14,930 
Other income (expense)
(435)
(591)
Earnings before interest and income taxes
11,086 
14,339 
Interest expense
8,435 
10,408 
Income before income taxes
2,651 
3,931 
Provision for income taxes
662 
3,290 
Net income
$ 1,989 
$ 641 
Net income per share:
 
 
Basic
$ 0.09 
$ 0.03 
Diluted
$ 0.09 
$ 0.03 
Dividends per share
$ 0 
$ 0 
Condensed Consolidated Statements of Comprehensive Income (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Net income
$ 1,989 
$ 641 
Other comprehensive income (loss):
 
 
Pension and other postretirement benefit adjustments, net of tax
2,671 
2,207 
Change in fair value of derivative instruments, net of tax
1,045 
(532)
Foreign currency translation adjustments
(2,925)
3,437 
Other comprehensive income, net of tax
791 
5,112 
Comprehensive income
$ 2,780 
$ 5,753 
Condensed Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2013
Dec. 31, 2012
Assets:
 
 
Cash and cash equivalents
$ 45,949 
$ 67,208 
Accounts receivable - net
86,264 
80,850 
Inventories - net
167,374 
157,549 
Prepaid and other current assets
16,834 
12,997 
Total current assets
316,421 
318,604 
Pension asset
10,176 
10,196 
Purchased intangible assets - net
19,828 
20,222 
Goodwill
167,496 
166,572 
Deferred income taxes
9,816 
9,830 
Derivative asset
298 
Other assets
16,429 
18,300 
Total other assets
223,745 
225,418 
Property, plant and equipment - net
253,009 
258,154 
Total assets
793,175 
802,176 
Liabilities and Shareholders' Equity:
 
 
Accounts payable
57,259 
65,712 
Salaries and wages
27,976 
41,405 
Accrued liabilities
53,865 
42,863 
Accrued income taxes
219 
2,282 
Pension liability (current portion)
660 
613 
Non-pension postretirement benefits (current portion)
4,739 
4,739 
Derivative liability
420 
Deferred income taxes
3,217 
3,213 
Long-term debt due within one year
14,031 
4,583 
Total current liabilities
161,966 
165,830 
Long-term debt
452,122 
461,884 
Pension liability
62,389 
60,909 
Non-pension postretirement benefits
71,587 
71,468 
Deferred income taxes
7,477 
7,537 
Other long-term liabilities
9,423 
10,072 
Total liabilities
764,964 
777,700 
Shareholders' equity:
 
 
Common stock, par value $.01 per share, 50,000,000 shares authorized, 20,919,330 shares issued at March 31, 2013 (20,835,489 shares issued in 2012)
210 
209 
Capital in excess of par value
314,331 
313,377 
Retained deficit
(146,081)
(148,070)
Accumulated other comprehensive loss
(140,249)
(141,040)
Total shareholders' equity
28,211 
24,476 
Total liabilities and shareholders' equity
$ 793,175 
$ 802,176 
Condensed Consolidated Balance Sheets Parenthetical (USD $)
Mar. 31, 2013
Dec. 31, 2012
Common stock, par value
$ 0.01 
$ 0.01 
Common stock, shares authorized
50,000,000 
50,000,000 
Common stock, shares issued
20,919,330 
20,835,489 
Condensed Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Operating activities:
 
 
Net income
$ 1,989 
$ 641 
Adjustments to reconcile net income to net cash used by operating activities:
 
 
Depreciation and amortization
10,774 
10,536 
(Gain) loss on asset sales and disposals
(1)
Change in accounts receivable
(6,043)
1,604 
Change in inventories
(10,635)
(12,166)
Change in accounts payable
(7,745)
(5,218)
Accrued interest and amortization of discounts and finance fees
8,131 
(7,375)
Pension & non-pension postretirement benefits
3,700 
(560)
Restructuring charges
4,314 
Accrued liabilities & prepaid expenses
(15,792)
(9,336)
Income taxes
(1,626)
1,977 
Share-based compensation expense
824 
727 
Other operating activities
(573)
73 
Net cash provided by (used in) operating activities
(12,680)
(19,098)
Investing activities:
 
 
Additions to property, plant and equipment
(8,882)
(6,446)
Proceeds from asset sales and other
180 
Net cash provided by (used in) investing activities
(8,878)
(6,266)
Financing activities:
 
 
Other repayments
(59)
(394)
Stock options exercised
537 
28 
Net cash provided by (used in) financing activities
478 
(366)
Effect of exchange rate fluctuations on cash
(179)
257 
Increase (decrease) in cash
(21,259)
(25,473)
Cash at beginning of period
67,208 
58,291 
Cash at end of period
45,949 
32,818 
Supplemental disclosure of cash flows information:
 
 
Cash paid during the period for interest
288 
17,731 
Cash paid during the period for income taxes
$ 1,884 
$ 885 
Description of the Business
Description of the Business
Description of the Business

Libbey is a leading global manufacturer and marketer of glass tableware products. We believe we have the largest manufacturing, distribution and service network among glass tableware manufacturers in the Western Hemisphere, in addition to supplying to key markets throughout the world. We produce glass tableware in five countries and sell to customers in over 100 countries. We design and market, under our Libbey®, Crisa®, Royal Leerdam®, World® Tableware, Syracuse® China and Crisal Glass® brand names (among others), an extensive line of high-quality glass tableware, ceramic dinnerware, metal flatware, hollowware and serveware items for sale primarily in the foodservice, retail and business-to-business markets. Our sales force presents our products to the global marketplace in a coordinated fashion. We own and operate two glass tableware manufacturing plants in the United States as well as glass tableware manufacturing plants in the Netherlands (Libbey Holland), Portugal (Libbey Portugal), China (Libbey China) and Mexico (Libbey Mexico). In addition, we import products from overseas in order to complement our line of manufactured items. The combination of manufacturing and procurement allows us to compete in the global tableware market by offering an extensive product line at competitive prices.

Our website can be found at www.libbey.com. We make available, free of charge, at this website all of our reports filed or furnished pursuant to Section 13(a) or 15(d) of Securities Exchange Act of 1934, including our annual report on Form 10-K, our quarterly reports on Form 10-Q, our current reports on Form 8-K, as well as amendments to those reports. These reports are made available on our website as soon as reasonably practicable after their filing with, or furnishing to, the Securities and Exchange Commission and can also be found at www.sec.gov.

Our shares are traded on the NYSE MKT exchange under the ticker symbol LBY.
Significant Accounting Policies
Significant Accounting Policies
Significant Accounting Policies

See our Form 10-K for the year ended December 31, 2012 for a description of significant accounting policies not listed below.

Basis of Presentation

The Condensed Consolidated Financial Statements include Libbey Inc. and its majority-owned subsidiaries (collectively, Libbey or the Company). Our fiscal year end is December 31st. All material intercompany accounts and transactions have been eliminated. The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Condensed Consolidated Financial Statements and accompanying notes. Actual results could differ materially from management’s estimates.

Condensed Consolidated Statements of Operations

Net sales in our Condensed Consolidated Statements of Operations include revenue earned when products are shipped and title and risk of loss have passed to the customer. Revenue is recorded net of returns, discounts and incentives offered to customers. Cost of sales includes cost to manufacture and/or purchase products, warehouse, shipping and delivery costs and other costs.

Foreign Currency Translation

Assets and liabilities of non-U.S. subsidiaries that operate in a local currency environment, where that local currency is the functional currency, are translated to U.S. dollars at exchange rates in effect at the balance sheet date, with the resulting translation adjustments directly recorded to a separate component of accumulated other comprehensive loss. Income and expense accounts are translated at average exchange rates during the year. The effect of exchange rate changes on transactions denominated in currencies other than the functional currency is recorded in other income (expense).

Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred income tax assets and liabilities are recognized for estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax attribute carry-forwards. Deferred income tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. Financial Accounting Standards Board Accounting Standards Codification™ (FASB ASC) Topic 740, “Income Taxes,” requires that a valuation allowance be recorded when it is more likely than not that some portion or all of the deferred income tax assets will not be realized. Deferred income tax assets and liabilities are determined separately for each tax jurisdiction in which we conduct our operations or otherwise incur taxable income or losses. In the United States, Portugal and the Netherlands, we have recorded valuation allowances against our deferred income tax assets. See note 6 for further discussion.

Stock-Based Compensation Expense

We account for stock-based compensation expense in accordance with FASB ASC Topic 718, “Compensation — Stock Compensation,” and FASB ASC Topic 505-50, “Equity — Equity-Based Payments to Non-Employees”. Stock-based compensation cost is measured based on the fair value of the equity instruments issued. FASB ASC Topics 718 and 505-50 apply to all of our outstanding unvested stock-based payment awards. Stock-based compensation expense charged to the Condensed Consolidated Statements of Operations is as follows:
 
 
Three months ended March 31,
(dollars in thousands)
 
2013
 
2012
Stock-based compensation expense
 
$
824

 
$
727


New Accounting Standards

In February 2013, the FASB issued Accounting Standards Update 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” (ASU 2013-02). ASU 2013-02 requires companies to present, either in a note or parenthetically on the face of the financial statements, the effect of amounts reclassified from each component of accumulated other comprehensive income based on its source and the income statement line items affected by the reclassification. This update is effective for interim and annual reporting periods beginning after December 15, 2012. Required interim disclosures have been made in our Condensed Consolidated Financial Statements at March 31, 2013.
Balance Sheet Details
Balance Sheet Details
Balance Sheet Details

The following table provides detail of selected balance sheet items:
(dollars in thousands)
March 31, 2013
 
December 31, 2012
Accounts receivable:
 
 
 
Trade receivables
$
84,859

 
$
79,624

Other receivables
1,405

 
1,226

Total accounts receivable, less allowances of $5,828 and $5,703
$
86,264

 
$
80,850

 
 
 
 
Inventories:
 
 
 
Finished goods
$
149,650

 
$
139,888

Work in process
1,271

 
1,188

Raw materials
4,525

 
4,828

Repair parts
10,537

 
10,283

Operating supplies
1,391

 
1,362

Total inventories, less allowances of $4,604 and $4,091
$
167,374

 
$
157,549

 
 
 
 
Prepaid and other current assets:
 
 
 
Value added tax
$
6,280

 
$
3,850

Prepaid expenses
5,401

 
5,036

Deferred income taxes
4,068

 
4,070

Derivative asset
1,085

 
41

Total prepaid and other current assets
$
16,834

 
$
12,997

 
 
 
 
Other assets:
 
 
 
Deposits
$
1,298

 
$
936

Finance fees — net of amortization
13,043

 
13,539

Other assets
2,088

 
3,825

Total other assets
$
16,429

 
$
18,300

 
 
 
 
Accrued liabilities:
 
 
 
Accrued incentives
$
16,705

 
$
17,783

Workers compensation
6,943

 
7,128

Medical liabilities
4,351

 
3,537

Interest
11,372

 
3,732

Commissions payable
1,545

 
1,478

Contingency liability
2,719

 
2,719

Restructuring liability
2,195

 

Other accrued liabilities
8,035

 
6,486

Total accrued liabilities
$
53,865

 
$
42,863

 
 
 
 
Other long-term liabilities:
 
 
 
Deferred liability
$
5,629

 
$
5,591

Derivative liability
58

 

Other long-term liabilities
3,736

 
4,481

Total other long-term liabilities
$
9,423

 
$
10,072



Borrowings
Borrowings
Borrowings

Borrowings consist of the following:
(dollars in thousands)
Interest Rate
 
Maturity Date
March 31,
2013
 
December 31,
2012
Borrowings under ABL Facility
floating
 
May 18, 2017
$

 
$

Senior Secured Notes
6.875%
(1)
May 15, 2020
450,000

 
450,000

Promissory Note
6.00%
 
April, 2013 to September, 2016
848

 
903

RMB Loan Contract
floating
 
January, 2014
9,576

 
9,522

BES Euro Line
floating
 
December, 2013
4,231

 
4,362

AICEP Loan
0.00%
 
January, 2016 to July 30, 2018
1,224

 
1,272

Total borrowings
 
 
 
465,879

 
466,059

Plus — carrying value adjustment on debt related to the Interest Rate Agreement (1)
274

 
408

Total borrowings — net
 
 
 
466,153

 
466,467

Less — long term debt due within one year
 
 
14,031

 
4,583

Total long-term portion of borrowings — net
 
$
452,122

 
$
461,884

_____________________________
(1)
See Interest Rate Agreements under “Senior Secured Notes” below and in note 9.

Amended and Restated ABL Credit Agreement

Libbey Glass and Libbey Europe entered into an Amended and Restated Credit Agreement, dated as of February 8, 2010 and amended as of April 29, 2011 and May 18, 2012 (as amended, the ABL Facility), with a group of four financial institutions. The ABL Facility provides for borrowings of up to $100.0 million, subject to certain borrowing base limitations, reserves and outstanding letters of credit.

All borrowings under the ABL Facility are secured by:
a first-priority security interest in substantially all of the existing and future personal property of Libbey Glass and its domestic subsidiaries (Credit Agreement Priority Collateral);
a first-priority security interest in:
100 percent of the stock of Libbey Glass and 100 percent of the stock of substantially all of Libbey Glass’s present and future direct and indirect domestic subsidiaries;
100 percent of the non-voting stock of substantially all of Libbey Glass’s first-tier present and future foreign subsidiaries; and
65 percent of the voting stock of substantially all of Libbey Glass’s first-tier present and future foreign subsidiaries
a first priority security interest in substantially all proceeds and products of the property and assets described above; and
a second-priority security interest in substantially all of the owned real property, equipment and fixtures in the United States of Libbey Glass and its domestic subsidiaries, subject to certain exceptions and permitted liens (Notes Priority Collateral).

Additionally, borrowings by Libbey Europe under the ABL Facility are secured by:
a first-priority lien on substantially all of the existing and future real and personal property of Libbey Europe and its Dutch subsidiaries; and
a first-priority security interest in:
100 percent of the stock of Libbey Europe and 100 percent of the stock of substantially all of the Dutch subsidiaries; and
100 percent (or a lesser percentage in certain circumstances) of the outstanding stock issued by the first-tier foreign subsidiaries of Libbey Europe and its Dutch subsidiaries.

Swingline borrowings are limited to $15.0 million, with swingline borrowings for Libbey Europe being limited to the US equivalent of $7.5 million. Loans comprising each CBFR (CB Floating Rate) Borrowing, including each Swingline Loan, bear interest at the CB Floating Rate plus the Applicable Rate, and euro-denominated swingline borrowings (Eurocurrency Loans) bear interest calculated at the Netherlands swingline rate, as defined in the ABL Facility. The Applicable Rates for CBFR Loans and Eurocurrency Loans vary depending on our aggregate remaining availability. The Applicable Rates for CBFR Loans and Eurocurrency Loans were 0.50 percent and 1.50 percent, respectively, at March 31, 2013. Libbey pays a quarterly Commitment Fee, as defined by the ABL Facility, on the total credit provided under the ABL Facility. The Commitment Fee was 0.375 percent at March 31, 2013. No compensating balances are required by the Agreement. The Agreement does not require compliance with a fixed charge coverage ratio covenant, unless aggregate unused availability falls below $10.0 million. If our aggregate unused ABL availability were to fall below $10.0 million, the fixed charge coverage ratio requirement would be 1:00 to 1:00. Libbey Glass and Libbey Europe have the option to increase the ABL Facility by $25.0 million. There were no Libbey Glass or Libbey Europe borrowings under the facility at March 31, 2013, or at December 31, 2012. Interest is payable on the last day of the interest period, which can range from one month to six months depending on the maturity of each individual borrowing on the facility.

The borrowing base under the ABL Facility is determined by a monthly analysis of the eligible accounts receivable and inventory. The borrowing base is the sum of (a) 85 percent of eligible accounts receivable and (b) the lesser of (i) 85 percent of the net orderly liquidation value (NOLV) of eligible inventory, (ii) 65 percent of eligible inventory, or (iii) $75.0 million.

The available total borrowing base is offset by rent reserves totaling $0.7 million as of March 31, 2013. The ABL Facility also provides for the issuance of $30.0 million of letters of credit, which are applied against the $100.0 million limit. At March 31, 2013, we had $8.5 million in letters of credit outstanding under the ABL Facility. Remaining unused availability under the ABL Facility was $73.3 million at March 31, 2013, compared to $68.6 million under the ABL Facility at December 31, 2012.

Senior Secured Notes

On May 18, 2012, Libbey Glass closed its offering of the $450.0 million Senior Secured Notes. The notes offering was issued at par and had related fees of approximately $13.6 million. These fees will be amortized to interest expense over the life of the notes.

The Senior Secured Notes were issued pursuant to an Indenture, dated May 18, 2012 (Notes Indenture), between Libbey Glass, the Company, the domestic subsidiaries of Libbey Glass listed as guarantors therein (Subsidiary Guarantors and together with the Company, Guarantors), and The Bank of New York Mellon Trust Company, N.A., as trustee (Notes Trustee) and collateral agent. Under the terms of the Notes Indenture, the Senior Secured Notes bear interest at a rate of 6.875 percent per year and will mature on May 15, 2020. Although the Notes Indenture does not contain financial covenants, the Notes Indenture contains other covenants that restrict the ability of Libbey Glass and the Guarantors to, among other things:

incur, assume or guarantee additional indebtedness;
pay dividends, make certain investments or other restricted payments;
create liens;
enter into affiliate transactions;
merge or consolidate, or otherwise dispose of all or substantially all the assets of Libbey Glass and the Guarantors; and
transfer or sell assets.

The Notes Indenture provides for customary events of default. In the case of an event of default arising from bankruptcy or insolvency as defined in the Notes Indenture, all outstanding Senior Secured Notes will become due and payable immediately without further action or notice. If any other event of default under the Notes Indenture occurs or is continuing, the Notes Trustee or holders of at least 25 percent in aggregate principal amount of the then outstanding Senior Secured Notes may declare all the Senior Secured Notes to be due and payable immediately.

The Senior Secured Notes and the related guarantees under the Notes Indenture are secured by (i) first priority liens on the Notes Priority Collateral and (ii) second priority liens on the Credit Agreement Priority Collateral.

Prior to May 15, 2015, we may redeem in the aggregate up to 35 percent of the Senior Secured Notes with the net cash proceeds of one or more equity offerings at a redemption price of 106.875 percent of the principal amount, provided that at least 65 percent of the original principal amount of the Senior Secured Notes must remain outstanding after each redemption and that each redemption occurs within 90 days of the closing of the equity offering. In addition, prior to May 15, 2015, but not more than once in any twelve-month period, we may redeem up to 10 percent of the Senior Secured Notes at a redemption price of 103 percent plus accrued and unpaid interest. The Senior Secured Notes are redeemable at our option, in whole or in part, at any time on or after May 15, 2015 at set redemption prices together with accrued and unpaid interest.

We had an Interest Rate Agreement (Old Rate Agreement) in place through April 18, 2012 with respect to $80.0 million of our former Senior Secured Notes as a means to manage our fixed to variable interest rate ratio. The Old Rate Agreement effectively converted this portion of our long-term borrowings from fixed rate debt to variable rate debt. The variable interest rate for our borrowings related to the Old Rate Agreement at April 18, 2012, excluding applicable fees, was 7.79 percent. Total remaining Senior Secured Notes not covered by the Old Rate Agreement had a fixed interest rate of 10.0 percent  per year. On April 18, 2012, the swap was called at fair value. We received proceeds of $3.6 million. During the second quarter of 2012, $0.1 million of the carrying value adjustment on debt related to the Old Rate Agreement was amortized into interest expense. Upon the refinancing of the former Senior Secured Notes, the remaining unamortized balance of $3.5 million of the carrying value adjustment on debt related to the Old Rate Agreement was recognized as a gain in the loss on redemption of debt on the Condensed Consolidated Statements of Operations.

On June 18, 2012, we entered into an Interest Rate Agreement (New Rate Agreement) with respect to $45.0 million of our Senior Secured Notes as a means to manage our fixed to variable interest rate ratio. The New Rate Agreement effectively converts this portion of our long-term borrowings from fixed rate debt to variable rate debt. Prior to May 15, 2015, but not more than once in any twelve-month period, the counterparty may call up to 10 percent of the New Rate Agreement at a call price of 103 percent. The New Rate Agreement is callable at the counterparty’s option, in whole or in part, at any time on or after May 15, 2015 at set call premiums. The variable interest rate for our borrowings related to the New Rate Agreement at March 31, 2013, excluding applicable fees, is 5.6 percent. The New Rate Agreement expires on May 15, 2020. Total remaining Senior Secured Notes not covered by the New Rate Agreement have a fixed interest rate of 6.875 percent per year through May 15, 2020. If the counterparty to this New Rate Agreement were to fail to perform, this New Rate Agreement would no longer afford us a variable rate. However, we do not anticipate non-performance by the counterparty. The interest rate swap counterparty was rated A+, as of March 31, 2013, by Standard and Poor’s.

The fair market value and related carrying value adjustment are as follows:
(dollars in thousands)
March 31, 2013
 
December 31, 2012
Fair market value of Rate Agreements - asset (liability)
$
(58
)
 
$
298

Adjustment to increase (decrease) carrying value of the related long-term debt
$
274

 
$
408

The net impact recorded on the Condensed Consolidated Statements of Operations is as follows:
 
 
Three months ended March 31,
(dollars in thousands)
 
2013
 
2012
Income (expense) on hedging activities in other income (expense)
 
$
(222
)
 
$
419



The fair value of the Old and New Rate Agreements are based on the market standard methodology of netting the discounted expected future fixed cash receipts and the discounted future variable cash payments. The variable cash payments are based on an expectation of future interest rates derived from observed market interest rate forward curves. See note 9 for further discussion.

Promissory Note

In September 2001, we issued a $2.7 million promissory note at an interest rate of 6.0 percent in connection with the purchase of our Laredo, Texas warehouse facility. At March 31, 2013, we had $0.8 million outstanding on the promissory note. Principal and interest with respect to the promissory note are paid monthly.

Notes Payable

We have an overdraft line of credit for a maximum of €1.0 million. At March 31, 2013, there were no borrowings under the facility, which has an interest rate of 5.80 percent. Interest with respect to the note is paid monthly.

RMB Loan Contract

On January 23, 2006, Libbey Glassware (China) Co., Ltd. (Libbey China), an indirect wholly owned subsidiary of Libbey Inc., entered into an RMB Loan Contract (RMB Loan Contract) with China Construction Bank Corporation Langfang Economic Development Area Sub-Branch (CCB). Pursuant to the RMB Loan Contract, CCB agreed to lend to Libbey China RMB 250.0 million, or the equivalent of approximately $39.9 million, for the construction of our production facility in China and the purchase of related equipment, materials and services. The loan has a term of eight years and bears interest at a variable rate as announced by the People’s Bank of China. As of the date of the initial advance under the Loan Contract, the annual interest rate was 5.51 percent, and as of March 31, 2013, the annual interest rate was 5.90 percent. As of March 31, 2013, the outstanding balance was RMB 60.0 million (approximately $9.6 million) which is due on January 20, 2014. Interest is payable quarterly. The obligations of Libbey China are secured by a guarantee executed by Libbey Inc. for the benefit of CCB and a mortgage lien on the Libbey China facility.

BES Euro Line

In January 2007, Crisal (Libbey Portugal) entered into a seven-year €11.0 million line of credit (approximately $14.1 million) with Banco Espírito Santo, S.A. (BES). The $4.2 million outstanding at March 31, 2013, was the U.S. dollar equivalent of the €3.3 million outstanding under the line at an interest rate of 5.32 percent. Payment of principal in the amount of €3.3 million (approximately $4.2 million) is due in December 2013. Interest with respect to the line is paid semi-annually.

AICEP Loan

In July 2012, Libbey Portugal entered into a loan agreement with Agencia para Investmento Comercio Externo de Portugal, EPE (AICEP), the Portuguese Agency for investment and external trade. The amount of the loan is €1.0 million (approximately $1.2 million) and has an interest rate of 0.0 percent. Semi-annual installments of principal are due beginning in January 2016 through the maturity date of July 2018.

Fair Value of Borrowings

The fair value of our debt has been calculated based on quoted market prices (Level 1 in the fair value hierarchy) for the same or similar issues. Our $450.0 million Senior Secured Notes had an estimated fair value of $483.8 million and $488.3 million at March 31, 2013 and December 31, 2012, respectively. The fair value of the remainder of our debt approximates carrying value at March 31, 2013 and December 31, 2012 due to variable rates.

Capital Resources and Liquidity

Historically, cash flows generated from operations, cash on hand and our borrowing capacity under our ABL Facility have enabled us to meet our cash requirements, including capital expenditures and working capital requirements. At March 31, 2013 we had no borrowings under our ABL Facility, although we had $8.5 million of letters of credit issued under that facility. As a result, we had $73.3 million of unused availability remaining under the ABL Facility at March 31, 2013. In addition, we had $45.9 million of cash on hand at March 31, 2013.

Based on our operating plans and current forecast expectations, we anticipate that our level of cash on hand, cash flows from operations and our borrowing capacity under our ABL Facility will provide sufficient cash availability to meet our ongoing liquidity needs.

As previously announced on March 22, 2013, Libbey Glass Inc. redeemed, on May 7, 2013, an aggregate principal amount of $45.0 million of our outstanding Senior Secured Notes due 2020. We funded this redemption using cash on hand and borrowings under our ABL Facility.

Restructuring Charges
Restructuring Charges
Restructuring Charges

Capacity Realignment

In February 2013, we announced our plans to discontinue production of certain glassware in North America and reduce manufacturing capacity at our Shreveport, Louisiana manufacturing facility. As a result, on May 30, 2013, we will cease production of certain glassware in North America, discontinue the use of a furnace at our Shreveport, Louisiana manufacturing plant and relocate a portion of the production from the idled furnace to our Toledo, Ohio and Monterrey, Mexico locations. These activities are all within the Americas segment and are expected to be completed by the end of the first quarter of 2014. In connection with this plan, we expect to incur a pretax charge in the range of approximately $8.0 million to $10.0 million. This estimate consists of: (i) up to $4.5 million in fixed asset impairment charges, (ii) up to $2.5 million in severance and other employee related costs and (iii) up to $3.0 million in production transfer expenses. We expect approximately $5.0 million of the pretax charge to result in cash expenditures, most of which is expected to be paid throughout the remainder of 2013. For the three months ended March 31, 2013, we recorded a pretax charge of $4.9 million, which included employee termination costs, fixed asset impairment charges and depreciation expense. Employee termination costs include severance, medical benefits and outplacement services for the employees that will be terminated. The write-down of fixed assets is to adjust certain machinery and equipment to the estimated fair market value.

The following table summarizes the pretax charge incurred through March 31, 2013:
(dollars in thousands)
Three months ended March 31, 2013
Accelerated depreciation
$
566

Included in cost of sales
566

Employee termination cost & other
2,322

Fixed asset write-down
1,992

Included in special charges
4,314

Total pretax charge
$
4,880


The following is the capacity realignment reserve activity for the three months ended March 31, 2013:
(dollars in thousands)
Reserve
Balance at
January 1, 2013
 
Total
Charge to Earnings
 
Cash
(payments) receipts
 
Non-cash Utilization
 
Reserve
Balance at
March 31, 2013
Accelerated depreciation
$

 
$
566

 
$

 
$
(566
)
 
$

Employee termination cost & other

 
2,322

 
(127
)
 

 
2,195

Fixed asset write-down

 
1,992

 

 
(1,992
)
 

Total
$

 
$
4,880

 
$
(127
)
 
$
(2,558
)
 
$
2,195

Income Taxes
Income Taxes
Income Taxes

Our effective tax rate was 25.0 percent for the quarter ended March 31, 2013, compared to 83.7 percent for the quarter ended March 31, 2012. Our effective tax rate differs from the United States statutory tax rate primarily due to valuation allowances, changes in the mix of earnings in countries with differing statutory tax rates, changes in accruals related to uncertain tax positions and tax planning structures. At March 31, 2013 and December 31, 2012, we had $1.0 million and $1.5 million, respectively, of gross unrecognized tax benefits, exclusive of interest and penalties. During the quarter ended March 31, 2013, we recorded an income tax benefit, exclusive of interest and penalties, of $0.5 million due to the reversal of an accrual for an uncertain tax position that expired under the statute of limitations.

Our current and future provision for income taxes for 2013 is significantly impacted by valuation allowances. In the United States, the Netherlands and Portugal, we have recorded valuation allowances against our deferred income tax assets. We did not change our conclusion related to entities with a recorded valuation allowance for the three months ended March 31, 2013, or the three months ended March 31, 2012. In assessing the need for recording or releasing a valuation allowance, we weigh all available positive and negative evidence. Examples of the evidence we consider are cumulative losses in recent years, losses expected in early future years, a history of potential tax benefits expiring unused, prudent and feasible tax planning strategies that could be implemented, and whether there was an unusual, infrequent or extraordinary item to be considered. Based on our analysis of all available evidence, we intend to maintain these allowances until it is more likely than not that the deferred income tax assets will be realized. We will continue to monitor and assess the need for these allowances quarterly in each jurisdiction.

Income tax payments consisted of the following:
 
Three months ended March 31,
(dollars in thousands)
2013
 
2012
Total income tax payments, net of refunds
$
2,269

 
$
1,493

Less: credits or offsets
385

 
608

Cash paid, net
$
1,884

 
$
885

Pension and Non-pension Postretirement Benefits
Pension and Non-pension Postretirement Benefits
Pension and Non-pension Postretirement Benefits

We have pension plans covering the majority of our employees. Benefits generally are based on compensation for salaried employees and job grade and length of service for hourly employees. Our policy is to fund pension plans such that sufficient assets will be available to meet future benefit requirements. In addition, we have an unfunded supplemental employee retirement plan (SERP) that covers certain salaried U.S.-based employees of Libbey hired before January 1, 2006. The U.S. pension plans cover the salaried U.S.-based employees of Libbey hired before January 1, 2006 and most hourly U.S.-based employees (excluding employees hired at Shreveport after 2008 and at Toledo after September 30, 2010). Effective January 1, 2013, we ceased annual company contribution credits to the cash balance accounts in our Libbey U.S. Salaried Pension Plan and SERP. The non-U.S. pension plans cover the employees of our wholly owned subsidiaries in the Netherlands and Mexico. The plan in Mexico is not funded.

The components of our net pension expense, including the SERP, are as follows:
Three months ended March 31,
U.S. Plans
 
Non-U.S. Plans
 
Total
(dollars in thousands)
2013
 
2012
 
2013
 
2012
 
2013
 
2012
Service cost
$
1,278

 
$
1,555

 
$
722

 
$
442

 
$
2,000

 
$
1,997

Interest cost
3,481

 
4,019

 
1,256

 
1,256

 
4,737

 
5,275

Expected return on plan assets
(5,599
)
 
(4,485
)
 
(481
)
 
(607
)
 
(6,080
)
 
(5,092
)
Amortization of unrecognized:
 
 
 
 
 
 
 
 
 
 
 
Prior service cost
293

 
521

 
62

 
66

 
355

 
587

Loss
2,087

 
1,801

 
238

 
135

 
2,325

 
1,936

Settlement charge

 
420

 

 

 

 
420

Pension expense
$
1,540

 
$
3,831

 
$
1,797

 
$
1,292

 
$
3,337

 
$
5,123



During the first three months of 2012, we incurred pension settlement charges totaling $0.4 million. The pension settlement charges were triggered by excess lump sum distributions, which required us to record unrecognized gains and losses in our pension plan accounts. We have contributed $0.7 million of cash into our pension plans for the three months ended March 31, 2013. Pension contributions for the remainder of 2013 are estimated to be $5.7 million.

We provide certain retiree health care and life insurance benefits covering our U.S and Canadian salaried and non-union hourly employees hired before January 1, 2004 and a majority of our union hourly employees (excluding employees hired at Shreveport after 2008 and at Toledo after September 30, 2010). Employees are generally eligible for benefits upon retirement and completion of a specified number of years of creditable service. Effective January 1, 2013, we ended our existing healthcare benefit for salaried retirees age 65 and older and are now providing a Retiree Health Reimbursement Arrangement (RHRA) that supports retirees in purchasing a Medicare plan that meets their needs. Also effective January 1, 2013, we reduced the maximum life insurance benefit for salaried retirees to $10,000. Benefits for most hourly retirees are determined by collective bargaining. The U.S. non-pension postretirement plans cover the hourly and salaried U.S.-based employees of Libbey (excluding those mentioned above). The non-U.S. non-pension postretirement plans cover the retirees and active employees of Libbey who are located in Canada. The postretirement benefit plans are not funded.

The provision for our non-pension postretirement benefit expense consists of the following:
Three months ended March 31,
U.S. Plans
 
Non-U.S. Plans
 
Total
(dollars in thousands)
2013
 
2012
 
2013
 
2012
 
2013
 
2012
Service cost
$
392

 
$
368

 
$

 
$

 
$
392

 
$
368

Interest cost
701

 
857

 
23

 
26

 
724

 
883

Amortization of unrecognized:
 
 
 
 
 
 
 
 
 
 
 
Prior service cost
34

 
105

 

 

 
34

 
105

Loss / (gain)
291

 
229

 
(1
)
 

 
290

 
229

Non-pension postretirement benefit expense
$
1,418

 
$
1,559

 
$
22

 
$
26

 
$
1,440

 
$
1,585



Our 2013 estimate of non-pension cash payments is $4.7 million, and we have paid $1.0 million for the three months ended March 31, 2013.

Net Income per Share of Common Stock
Net Income per Share of Common Stock
Net Income per Share of Common Stock

The following table sets forth the computation of basic and diluted earnings per share:
 
Three months ended March 31,
(dollars in thousands, except earnings per share)
2013
 
2012
Numerators for earnings per share:
 
 
 
Net income that is available to common shareholders
$
1,989

 
$
641

 
 
 
 
Denominator for basic earnings per share:
 
 
 
Weighted average shares outstanding
21,114,963

 
20,769,415

 
 
 
 
Denominator for diluted earnings per share:
 
 
 
Effect of stock options and restricted stock units
478,785

 
414,942

Adjusted weighted average shares and assumed conversions
21,593,748

 
21,184,357

 
 
 
 
Basic earnings per share
$
0.09

 
$
0.03

 
 
 
 
Diluted earnings per share
$
0.09

 
$
0.03


When applicable, diluted shares outstanding include the dilutive impact of restricted stock units. Diluted shares also include the impact of in-the-money employee stock options, which are calculated based on the average share price for each fiscal period using the treasury stock method. Under the treasury stock method, the tax-effected proceeds that hypothetically would be received from the exercise of all in-the-money options are assumed to be used to repurchase shares.

Derivatives
Derivatives
Derivatives

We utilize derivative financial instruments to hedge certain interest rate risks associated with our long-term debt, commodity price risks associated with forecasted future natural gas requirements and foreign exchange rate risks associated with transactions denominated in a currency other than the U.S. dollar. Most of these derivatives, except for the foreign currency contracts, 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. All of these contracts were accounted for under FASB ASC 815 “Derivatives and Hedging.”

Fair Values

The following table provides the fair values of our derivative financial instruments for the periods presented:
 
 
Asset Derivatives:
(dollars in thousands)
 
March 31, 2013
 
December 31, 2012
Derivatives designated as hedging
instruments under FASB ASC 815:
 
Balance Sheet Location
 
Fair Value
 
Balance Sheet Location
 
Fair Value
Interest rate contract
 
Derivative asset
 
$

 
Derivative asset
 
$
298

Natural gas contracts
 
Prepaid and other current assets
 
793

 
 
 

Total designated
 
 
 
793

 
 
 
298

Derivatives not designated as hedging
instruments under FASB ASC 815:
 
 
 
 
 
 
 
 
Currency contracts
 
Prepaid and other current assets
 
292

 
Prepaid and other current assets
 
41

Total undesignated
 
 
 
292

 
 
 
41

Total
 
 
 
$
1,085

 
 
 
$
339

 
 
 
 
 
 
 
 
 
 
 
Liability Derivatives:
(dollars in thousands)
 
March 31, 2013
 
December 31, 2012
Derivatives designated as hedging
instruments under FASB ASC 815:
 
Balance Sheet Location
 
Fair Value
 
Balance Sheet Location
 
Fair Value
Natural gas contracts
 
 
 
$

 
Derivative liability
 
$
420

Interest rate contract
 
Other long-term liabilities
 
58

 
 
 

Total designated
 
 
 
58

 
 
 
420

Total
 
 
 
$
58

 
 
 
$
420



Interest Rate Swaps as Fair Value Hedges

On June 18, 2012, we entered into an interest rate swap agreement (New Rate Agreement) with a notional amount of $45.0 million that is to mature in 2020. The New Rate Agreement was executed in order to convert a portion of the Senior Secured Notes fixed rate debt into floating rate debt and maintain a capital structure containing fixed and floating rate debt.

Our fixed-to-floating interest rate swaps are designated and qualify as a fair value hedges. The change in the fair value of the derivative instrument related to the future cash flows (gain or loss on the derivative), as well as the offsetting change in the fair value of the hedged long-term debt attributable to the hedged risk, are recognized in current earnings. We include the gain or loss on the hedged long-term debt in other income (expense), along with the offsetting loss or gain on the related interest rate swap on the Condensed Consolidated Statements of Operations.

The following table provides a summary of the gain (loss) recognized on the Condensed Consolidated Statements of Operations:
 
 
Three months ended March 31,
(dollars in thousands)
 
2013
 
2012
Interest rate swap
 
$
(356
)
 
$
13

Related long-term debt
 
134

 
406

Net impact
 
$
(222
)
 
$
419

 
 
 
 
 

Commodity Futures Contracts Designated as Cash Flow Hedges

We use commodity futures contracts related to forecasted future North American natural gas requirements. The objective of these futures contracts and other derivatives is to limit the fluctuations in prices paid due to price movements in the underlying commodity. We consider our forecasted natural gas requirements in determining the quantity of natural gas to hedge. We combine the forecasts with historical observations to establish the percentage of forecast eligible to be hedged, typically ranging from 40 percent to 70 percent of our anticipated requirements, up to eighteen months in the future. The fair values of these instruments are determined from market quotes. As of March 31, 2013, we had commodity contracts for 1,720,000 million British Thermal Units (BTUs) of natural gas. At December 31, 2012, we had commodity contracts for 2,400,000 million BTUs of natural gas.

All of our natural gas derivatives qualify and are designated as cash flow hedges at March 31, 2013. Hedge accounting is applied only when the derivative is deemed to be highly effective at offsetting changes in fair values or anticipated cash flows of the hedged item or transaction. For hedged forecasted transactions, hedge accounting is discontinued if the forecasted transaction is no longer probable to occur, and any previously deferred gains or losses would be recorded to earnings immediately. Changes in the effective portion of the fair value of these hedges are recorded in other comprehensive income (loss). The ineffective portion of the change in the fair value of a derivative designated as a cash flow hedge is recognized in current earnings. 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 Statements of Operations. We paid additional cash of $0.2 million and $1.5 million in the three months ended March 31, 2013 and 2012, respectively, due to the difference between the fixed unit rate of our natural gas contracts and the variable unit rate of our natural gas cost from suppliers. Based on our current valuation, we estimate that accumulated losses currently carried in accumulated other comprehensive gain that will be reclassified into earnings over the next twelve months will result in $0.8 million of income in our Condensed Consolidated Statements of Operations.

The following table provides a summary of the effective portion of derivative gain (loss) recognized in other comprehensive income (loss):
 
 
Three months ended March 31,
(dollars in thousands)
 
2013
 
2012
Derivatives in Cash Flow Hedging relationships:
 
 
 
 
Natural gas contracts
 
$
967

 
$
(2,104
)
Total
 
$
967

 
$
(2,104
)


The following table provides a summary of the effective portion of derivative gain (loss) reclassified from accumulated other comprehensive loss to the Condensed Consolidated Statements of Operations:
 
 
 
Three months ended March 31,
(dollars in thousands)
 
 
2013
 
2012
Derivative:
Location:
 
 
 
 
Natural gas contracts
Cost of sales
 
$
(246
)
 
$
(1,460
)
Total impact on net income (loss)
 
 
$
(246
)
 
$
(1,460
)


Currency Contracts

Our foreign currency exposure arises from transactions denominated in a currency other than the U.S. dollar primarily associated with our Canadian dollar denominated accounts receivable. We enter into a series of foreign currency contracts to sell Canadian dollars. As of March 31, 2013 and December 31, 2012, we had contracts for C$11.7 million and C$14.8 million, respectively. The fair values of these instruments are determined from market quotes. The values of these derivatives will change over time as cash receipts and payments are made and as market conditions change.

Gains (losses) for derivatives that were not designated as hedging instruments are recorded in current earnings as follows:
 
 
 
Three months ended March 31,
(dollars in thousands)
 
 
2013
 
2012
Derivative:
Location:
 
 

 
 

Currency contracts
Other income (expense)
 
$
251

 
$
(162
)
Total
 
 
$
251

 
$
(162
)


We do not believe we are exposed to more than a nominal amount of credit risk in our interest rate swap, natural gas hedges and currency contracts as the counterparties are established financial institutions. The counterparty for the New Rate Agreement is rated A+ and the counterparties for the other derivative agreements are rated BBB+ or better as of March 31, 2013, by Standard and Poor’s.
Comprehensive Income (Loss)
Comprehensive Income
Comprehensive Income (Loss)

Accumulated other comprehensive loss, net of tax, is as follows:
(dollars in thousands)
 
Foreign Currency Translation
 
Derivative Instruments
 
Pension and Other Postretirement Benefits
 
Total
Accumulated
Comprehensive Loss
Balance on December 31, 2012
 
$
(1,641
)
 
$
489

 
$
(139,888
)
 
$
(141,040
)
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
 
(2,925
)
 
967

 

 
(1,958
)
Currency impact
 

 

 
(352
)
 
(352
)
Amounts reclassified from accumulated other comprehensive income (loss):
 
 
 
 
 
 
 
 
    Amortization of actuarial loss (1)
 

 

 
2,600

 
2,600

    Amortization of prior service cost (1)
 

 

 
369

 
369

    Amortization of transition obligation (1)
 

 

 
21

 
21

    Cost of sales
 

 
246

 

 
246

Current-period other comprehensive income (loss)
 
(2,925
)
 
1,213

 
2,638

 
926

Tax effect
 

 
(168
)
 
33

 
(135
)
Balance on March 31, 2013
 
$
(4,566
)
 
$
1,534

 
$
(137,217
)
 
$
(140,249
)
_____________________________
(1) These accumulated other comprehensive income components are included in the computation of net periodic benefit cost within the cost of sales and selling, general and administrative expenses on the Condensed Consolidated Statements of Operations.
Condensed Consolidated Guarantor Financial Statements
Condensed Consolidated Guarantor Financial Statements
Condensed Consolidated Guarantor Financial Statements

Libbey Glass is a direct, 100 percent owned subsidiary of Libbey Inc. and is the issuer of the Senior Secured Notes. The obligations of Libbey Glass under the Senior Secured Notes are fully and unconditionally and jointly and severally guaranteed by Libbey Inc. and by certain indirect, 100 percent owned domestic subsidiaries of Libbey Inc., as described below. All are related parties that are included in the Condensed Consolidated Financial Statements for the three months ended March 31, 2013 and March 31, 2012.

At March 31, 2013, December 31, 2012 and March 31, 2012, Libbey Inc.’s indirect, 100 percent owned domestic subsidiaries were Syracuse China Company, World Tableware Inc., LGA4 Corp., LGA3 Corp., The Drummond Glass Company, LGC Corp., Libbey.com LLC, LGFS Inc., and LGAC LLC (collectively, Subsidiary Guarantors). The following tables contain Condensed Consolidating Financial Statements of (a) the parent, Libbey Inc., (b) the issuer, Libbey Glass, (c) the Subsidiary Guarantors, (d) the indirect subsidiaries of Libbey Inc. that are not Subsidiary Guarantors (collectively, Non-Guarantor Subsidiaries), (e) the consolidating elimination entries, and (f) the consolidated totals.
Libbey Inc.
Condensed Consolidating Statements of Comprehensive Income
(unaudited)
 
Three months ended March 31, 2013
(dollars in thousands)
Libbey
Inc.
(Parent)
 
Libbey
Glass
(Issuer)
 
Subsidiary
Guarantors
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net sales
$

 
$
86,930

 
$
18,360

 
$
89,379

 
$
(11,193
)
 
$
183,476

Freight billed to customers

 
99

 
234

 
419

 

 
752

Total revenues

 
87,029

 
18,594

 
89,798

 
(11,193
)
 
184,228

Cost of sales

 
62,600

 
14,360

 
76,229

 
(11,193
)
 
141,996

Gross profit

 
24,429

 
4,234

 
13,569

 

 
42,232

Selling, general and administrative expenses

 
15,057

 
2,669

 
8,671

 

 
26,397

Special charges

 
4,314

 

 

 

 
4,314

Income (loss) from operations

 
5,058

 
1,565

 
4,898

 

 
11,521

Other income (expense)

 
(1
)
 
(9
)
 
(425
)
 

 
(435
)
Earnings (loss) before interest and income taxes

 
5,057

 
1,556

 
4,473

 

 
11,086

Interest expense

 
6,420

 

 
2,015

 

 
8,435

Income (loss) before income taxes

 
(1,363
)
 
1,556

 
2,458

 

 
2,651

Provision (benefit) for income taxes

 
(819
)
 
2

 
1,479

 

 
662

Net income (loss)

 
(544
)
 
1,554

 
979

 

 
1,989

Equity in net income (loss) of subsidiaries
1,989

 
2,533

 

 

 
(4,522
)
 

Net income (loss)
$
1,989

 
$
1,989

 
$
1,554

 
$
979

 
$
(4,522
)
 
$
1,989

 
 
 
 
 
 
 
 
 
 
 
 
Comprehensive income (loss)
$
2,780

 
$
2,780

 
$
1,696

 
$
(1,552
)
 
$
(2,924
)
 
$
2,780

 
Three months ended March 31, 2012
(dollars in thousands)
Libbey
Inc.
(Parent)
 
Libbey
Glass
(Issuer)
 
Subsidiary
Guarantors
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net sales
$

 
$
93,480

 
$
17,445

 
$
93,159

 
$
(16,255
)
 
$
187,829

Freight billed to customers

 
166

 
183

 
359

 

 
708

Total revenues

 
93,646

 
17,628

 
93,518

 
(16,255
)
 
188,537

Cost of sales

 
74,311

 
13,013

 
74,412

 
(16,255
)
 
145,481

Gross profit

 
19,335

 
4,615

 
19,106

 

 
43,056

Selling, general and administrative expenses

 
17,942

 
1,516

 
8,668

 

 
28,126

Special charges

 

 

 

 

 

Income (loss) from operations

 
1,393

 
3,099

 
10,438

 

 
14,930

Other income (expense)

 
297

 
12

 
(900
)
 

 
(591
)
Earnings (loss) before interest and income taxes

 
1,690

 
3,111

 
9,538

 

 
14,339

Interest expense

 
8,193

 

 
2,215

 

 
10,408

Income (loss) before income taxes

 
(6,503
)
 
3,111

 
7,323

 

 
3,931

Provision (benefit) for income taxes

 
225

 

 
3,065

 

 
3,290

Net income (loss)

 
(6,728
)
 
3,111

 
4,258

 

 
641

Equity in net income (loss) of subsidiaries
641

 
7,369

 

 

 
(8,010
)
 

Net income (loss)
$
641

 
$
641

 
$
3,111

 
$
4,258

 
$
(8,010
)
 
$
641

 
 
 
 
 
 
 
 
 
 
 
 
Comprehensive income (loss)
$
5,753

 
$
5,753

 
$
3,235

 
$
7,044

 
$
(16,032
)
 
$
5,753


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Libbey Inc.
Condensed Consolidating Balance Sheet

 
 
 
March 31, 2013 (unaudited)
(dollars in thousands)
Libbey
Inc.
(Parent)
 
Libbey
Glass
(Issuer)
 
Subsidiary
Guarantors
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Cash and equivalents
$

 
$
29,134

 
$
93

 
$
16,722

 
$

 
$
45,949

Accounts receivable — net

 
32,082

 
5,823

 
48,359

 

 
86,264

Inventories — net

 
61,300

 
19,473

 
86,601

 

 
167,374

Other current assets

 
19,107

 
736

 
14,321

 
(17,330
)
 
16,834

Total current assets

 
141,623

 
26,125

 
166,003

 
(17,330
)
 
316,421

Other non-current assets

 
19,889

 
349

 
20,373

 
(4,190
)
 
36,421

Investments in and advances to subsidiaries
28,211

 
394,758

 
191,367

 
(40,824
)
 
(573,512
)
 

Goodwill and purchased intangible assets — net

 
27,757

 
12,347

 
147,220

 

 
187,324

Total other assets
28,211

 
442,404

 
204,063

 
126,769

 
(577,702
)
 
223,745

Property, plant and equipment — net

 
68,698

 
282

 
184,029

 

 
253,009

Total assets
$
28,211

 
$
652,725

 
$
230,470

 
$
476,801

 
$
(595,032
)
 
$
793,175

 
 
 
 
 
 
 
 
 
 
 
 
Accounts payable
$

 
$
11,990

 
$
1,578

 
$
43,691

 
$

 
$
57,259

Accrued and other current liabilities

 
60,435

 
20,485

 
27,085

 
(17,329
)
 
90,676

Notes payable and long-term debt due within one year

 
224

 

 
13,807

 

 
14,031

Total current liabilities

 
72,649

 
22,063

 
84,583

 
(17,329
)
 
161,966

Long-term debt

 
450,898

 

 
1,224

 

 
452,122

Other long-term liabilities

 
93,302

 
9,517

 
52,247

 
(4,190
)
 
150,876

Total liabilities

 
616,849

 
31,580

 
138,054

 
(21,519
)
 
764,964

Total shareholders’ equity (deficit)
28,211

 
35,876

 
198,890

 
338,747

 
(573,513
)
 
28,211

Total liabilities and shareholders’ equity (deficit)
$
28,211

 
$
652,725

 
$
230,470

 
$
476,801

 
$
(595,032
)
 
$
793,175

Libbey Inc.
Condensed Consolidating Balance Sheet


 
December 31, 2012
(dollars in thousands)
Libbey
Inc.
(Parent)
 
Libbey
Glass
(Issuer)
 
Subsidiary
Guarantors
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Cash and equivalents
$

 
$
43,558

 
$
70

 
$
23,580

 
$

 
$
67,208

Accounts receivable — net

 
33,987

 
3,560

 
43,303

 

 
80,850

Inventories — net

 
52,627

 
18,477

 
86,445

 

 
157,549

Other current assets

 
17,931

 
810

 
10,446

 
(16,190
)
 
12,997

Total current assets

 
148,103

 
22,917

 
163,774

 
(16,190
)
 
318,604

Other non-current assets

 
22,373

 
54

 
20,387

 
(4,190
)
 
38,624

Investments in and advances to subsidiaries
24,476

 
384,414

 
194,316

 
(35,962
)
 
(567,244
)
 

Goodwill and purchased intangible assets — net

 
26,833

 
12,347

 
147,614

 

 
186,794

Total other assets
24,476

 
433,620

 
206,717

 
132,039

 
(571,434
)
 
225,418

Property, plant and equipment — net

 
72,780

 
298

 
185,076

 

 
258,154

Total assets
$
24,476

 
$
654,503

 
$
229,932

 
$
480,889

 
$
(587,624
)
 
$
802,176

 
 
 
 
 
 
 
 
 
 
 
 
Accounts payable
$

 
$
15,339

 
$
2,854

 
$
47,519

 
$

 
$
65,712

Accrued and other current liabilities

 
63,674

 
20,194

 
27,857

 
(16,190
)
 
95,535

Notes payable and long-term debt due within one year

 
221

 

 
4,362

 

 
4,583

Total current liabilities

 
79,234

 
23,048

 
79,738

 
(16,190
)
 
165,830

Long-term debt

 
451,090

 

 
10,794

 

 
461,884

Other long-term liabilities

 
94,434

 
9,691

 
50,051

 
(4,190
)
 
149,986

Total liabilities

 
624,758

 
32,739

 
140,583

 
(20,380
)
 
777,700

Total shareholders’ equity (deficit)
24,476

 
29,745

 
197,193

 
340,306

 
(567,244
)
 
24,476

Total liabilities and shareholders’ equity (deficit)
$
24,476

 
$
654,503

 
$
229,932

 
$
480,889

 
$
(587,624
)
 
$
802,176



Libbey Inc.
Condensed Consolidating Statements of Cash Flows
(unaudited)


 
Three months ended March 31, 2013
(dollars in thousands)
Libbey
Inc.
(Parent)
 
Libbey
Glass
(Issuer)
 
Subsidiary
Guarantors
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net income (loss)
$
1,989

 
$
1,989

 
$
1,554

 
$
979

 
$
(4,522
)
 
$
1,989

Depreciation and amortization

 
4,114

 
17

 
6,643

 

 
10,774

Other operating activities
(1,989
)
 
(19,007
)
 
(1,548
)
 
(7,421
)
 
4,522

 
(25,443
)
Net cash provided by (used in) operating activities

 
(12,904
)
 
23

 
201

 

 
(12,680
)
Additions to property, plant & equipment

 
(2,004
)
 

 
(6,878
)
 

 
(8,882
)
Other investing activities

 
1

 

 
3

 

 
4

Net cash (used in) investing activities

 
(2,003
)
 

 
(6,875
)
 

 
(8,878
)
Net borrowings (repayments)

 
(54
)
 

 
(5
)
 

 
(59
)
Other financing activities

 
537

 

 

 

 
537

Net cash provided by (used in) financing activities

 
483

 

 
(5
)
 

 
478

Exchange effect on cash

 

 

 
(179
)
 

 
(179
)
Increase (decrease) in cash

 
(14,424
)
 
23

 
(6,858
)
 

 
(21,259
)
Cash at beginning of period

 
43,558

 
70

 
23,580

 

 
67,208

Cash at end of period
$

 
$
29,134

 
$
93

 
$
16,722

 
$

 
$
45,949




 
Three months ended March 31, 2012
(dollars in thousands)
Libbey
Inc.
(Parent)
 
Libbey
Glass
(Issuer)
 
Subsidiary
Guarantors
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net income (loss)
$
641

 
$
641

 
$
3,111

 
$
4,258

 
$
(8,010
)
 
$
641

Depreciation and amortization

 
3,538

 
19

 
6,979

 

 
10,536

Other operating activities
(641
)
 
(30,332
)
 
(3,128
)
 
(4,184
)
 
8,010

 
(30,275
)
Net cash provided by (used in) operating activities

 
(26,153
)
 
2

 
7,053

 

 
(19,098
)
Additions to property, plant & equipment

 
(3,181
)
 

 
(3,265
)
 

 
(6,446
)
Other investing activities

 

 

 
180

 

 
180

Net cash (used in) investing activities

 
(3,181
)
 

 
(3,085
)
 

 
(6,266
)
Net borrowings (repayments)

 
(51
)
 

 
(343
)
 

 
(394
)
Other financing activities

 
28

 

 

 

 
28

Net cash provided by (used in) financing activities

 
(23
)
 

 
(343
)
 

 
(366
)
Exchange effect on cash

 

 

 
257

 

 
257

Increase (decrease) in cash

 
(29,357
)
 
2

 
3,882

 

 
(25,473
)
Cash at beginning of period

 
39,249

 
155

 
18,887

 

 
58,291

Cash at end of period
$

 
$
9,892

 
$
157

 
$
22,769

 
$

 
$
32,818


 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
Segments
Segments
Segments

Effective January 1, 2013, we revised our reporting segments to align with our previously announced regionally focused organizational structure which will enable us to better serve customers across the globe. Under this structure, we now report financial results for the Americas; Europe, the Middle East and Africa (EMEA); and Other. In addition, sales and segment EBIT reflect end market reporting pursuant to which sales and related costs are included in segment EBIT based on the geographical destination of the sale. The revised segment results do not affect any previously reported consolidated financial results. Our two reportable segments are defined below. Our operating segments that do not meet the criteria for reportable segments are disclosed as Other.

Americas—includes worldwide sales of manufactured and sourced glass tableware having an end market destination in North
and South America.

EMEA—includes worldwide sales of manufactured and sourced glass tableware having an end market destination in Europe,
the Middle East and Africa.

Other —includes worldwide sales of manufactured and sourced glass tableware having an end market destination in
Asia Pacific and worldwide sales of sourced ceramic dinnerware, metal tableware, hollowware, and serveware.

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. 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 March 31,
(dollars in thousands)
2013
 
2012
Net Sales:
 
 
 
Americas
$
123,535

 
$
129,675

EMEA
34,242

 
30,792

Other
25,699

 
27,362

Consolidated
$
183,476

 
$
187,829

 
 
 
 
Segment EBIT:
 
 
 
Americas
$
18,152

 
$
15,674

EMEA
(1,483
)
 
(580
)
Other
3,797

 
5,125

Total Segment EBIT
$
20,466

 
$
20,219

 
 
 
 
Reconciliation of Segment EBIT to Net Income:
 
 
 
Segment EBIT
$
20,466

 
$
20,219

Retained corporate costs
(4,500
)
 
(5,880
)
Restructuring charges (note 5)
(4,880
)
 

Interest expense
(8,435
)
 
(10,408
)
Income taxes
(662
)
 
(3,290
)
Net income
$
1,989

 
$
641

 
 
 
 
Depreciation & Amortization:
 
 
 
Americas
$
6,528

 
$
6,182

EMEA
2,486

 
2,548

Other
1,383

 
1,417

Corporate
377

 
389

Consolidated
$
10,774

 
$
10,536

 
 
 
 
Capital Expenditures:
 
 
 
Americas
$
6,875

 
$
5,164

EMEA
1,296

 
717

Other
335

 
513

Corporate
376

 
52

Consolidated
$
8,882

 
$
6,446


(dollars in thousands)
March 31, 2013
 
December 31, 2012
Segment Assets(1):
 
 
 
Americas
$
160,827

 
$
150,923

EMEA
48,292

 
49,981

Other
44,519

 
37,495

Consolidated
$
253,638

 
$
238,399


______________________________
(1) Segment assets are defined as net accounts receivable plus net inventory.



The following table contains 2012 segment information by quarter presented to conform with our new segment structure and end market reporting effective January 1, 2013.
 
2012 Quarter Ending
 
 
(dollars in thousands)
March 31
 
June 30
 
September 30
 
December 31
 
Total 2012
Net Sales:
 
 
 
 
 
 
 
 
 
Americas
$
129,675

 
$
148,584

 
$
146,169

 
$
156,306

 
$
580,734

EMEA
30,792

 
33,723

 
34,454

 
35,809

 
134,778

Other
27,362

 
26,940

 
28,527

 
26,946

 
109,775

Consolidated
$
187,829

 
$
209,247

 
$
209,150

 
$
219,061

 
$
825,287

 
 
 
 
 
 
 
 
 
 
Segment EBIT:
 
 
 
 
 
 
 
 
 
Americas
$
15,674

 
$
31,014

 
$
27,020

 
$
22,125

 
$
95,833

EMEA
(580
)
 
302

 
1,804

 
(2,240
)
 
(714
)
Other
5,125

 
5,508

 
5,378

 
4,216

 
20,227

Total Segment EBIT
$
20,219

 
$
36,824

 
$
34,202

 
$
24,101

 
$
115,346

 
 
 
 
 
 
 
 
 
 
Reconciliation of Segment EBIT to Net Income (Loss):
 
 
 
 
 
 
 
 
Segment EBIT
$
20,219

 
$
36,824

 
$
34,202

 
$
24,101

 
$
115,346

Retained corporate costs
(5,880
)
 
(7,428
)
 
(6,289
)
 
(4,816
)
 
(24,413
)
Severance

 

 
(3,911
)
 
(1,239
)
 
(5,150
)
Loss on redemption of debt

 
(31,075
)
 

 

 
(31,075
)
Pension curtailment and settlement

 

 
125

 
(4,431
)
 
(4,306
)
Interest expense
(10,408
)
 
(9,957
)
 
(8,720
)
 
(8,642
)
 
(37,727
)
Income taxes
(3,290
)
 
1,493

 
(546
)
 
(3,366
)
 
(5,709
)
Net income (loss)
$
641

 
$
(10,143
)
 
$
14,861

 
$
1,607

 
$
6,966

 
 
 
 
 
 
 
 
 
 
Depreciation & Amortization:
 
 
 
 
 
 
 
 
 
Americas
$
6,182

 
$
6,021

 
$
6,045

 
$
6,413

 
$
24,661

EMEA
2,548

 
2,466

 
2,375

 
2,357

 
9,746

Other
1,417

 
1,414

 
1,325

 
1,661

 
5,817

Corporate
389

 
387

 
328

 
143

 
1,247

Consolidated
$
10,536

 
$
10,288

 
$
10,073

 
$
10,574

 
$
41,471

 
 
 
 
 
 
 
 
 
 
Capital Expenditures:
 
 
 
 
 
 
 
 
 
Americas
$
5,164

 
$
3,259

 
$
3,839

 
$
11,759

 
$
24,021

EMEA
717

 
1,301

 
942

 
2,499

 
5,459

Other
513

 
510

 
152

 
1,021

 
2,196

Corporate
52

 
316

 
479

 
197

 
1,044

Consolidated
$
6,446

 
$
5,386

 
$
5,412

 
$
15,476

 
$
32,720

Fair Value
Fair Value
Fair Value

FASB ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. FASB ASC 820 establishes a fair value hierarchy that prioritizes the inputs used in measuring fair value into three broad levels as follows:

Level 1 — Quoted prices in active markets for identical assets or liabilities.
Level 2 — Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly.
Level 3 — Unobservable inputs based on our own assumptions.

 
Fair Value at
 
Fair Value at
Asset / (Liability)
(dollars in thousands)
March 31, 2013
 
December 31, 2012
Level 1
 
Level 2
 
Level 3
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
Commodity futures natural gas contracts
$

 
$
793

 
$

 
$
793

 
$

 
$
(420
)
 
$

 
$
(420
)
Currency contracts

 
292

 

 
292

 

 
41

 

 
41

Interest rate agreements

 
(58
)
 

 
(58
)
 

 
298

 

 
298

Net derivative asset (liability)
$

 
$
1,027

 
$

 
$
1,027

 
$

 
$
(81
)
 
$

 
$
(81
)


The fair values of our commodity futures natural gas contracts and currency contracts are determined using observable market inputs. The fair value of our interest rate agreement is based on the market standard methodology of netting the discounted expected future fixed cash receipts and the discounted future variable cash payments. The variable cash payments are based on an expectation of future interest rates derived from observed market interest rate forward curves. Since these inputs are observable in active markets over the terms that the instruments are held, the derivatives are classified as Level 2 in the hierarchy. We also evaluate Company and counterparty risk in determining fair values. The commodity futures natural gas contracts, interest rate protection agreements and currency contracts are hedges of either recorded assets or liabilities or anticipated transactions. Changes in values of the underlying hedged assets and liabilities or anticipated transactions are not reflected in the above table.

The total derivative position is recorded on the Condensed Consolidated Balance Sheets as follows:
Asset / (Liability)
(dollars in thousands)
 
March 31, 2013
 
December 31, 2012
Prepaid and other current assets
 
$
1,085

 
$
41

Derivative asset
 

 
298

Derivative liability
 

 
(420
)
Other long-term liabilities
 
(58
)
 

Net derivative asset (liability)
 
$
1,027

 
$
(81
)


Other Income (Expense)
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 March 31,
(dollars in thousands)
2013
 
2012
Gain (loss) on currency translation
$
(283
)
 
$
(969
)
Hedge ineffectiveness
(222
)
 
419

Other non-operating income (expense)
70

 
(41
)
Other income (expense)
$
(435
)
 
$
(591
)


Contingencies
Contingencies
Contingencies

We are currently undergoing an unclaimed property audit that is being conducted by various state authorities. The property subject to review in this audit process generally includes unclaimed wages, vendor payments and customer refunds. State escheat laws generally require entities to report and remit abandoned and unclaimed property. Failure to timely report and remit the property can result in assessments that include interest and penalties, in addition to the payment of the escheat liability itself. We may have obligations associated with unclaimed property in an estimated amount of approximately $2.7 million at March 31, 2013 and December 31, 2012. While we have recorded this estimate as an expense in the third quarter of 2011, it is too early to determine the ultimate outcome of these audits and, as a result, our actual obligations may be less than or greater than the amount we have recorded. At this time, we believe that the impact of these adjustments is not material to our results of operations.

Significant Accounting Policies (Policies)
Basis of Presentation

The Condensed Consolidated Financial Statements include Libbey Inc. and its majority-owned subsidiaries (collectively, Libbey or the Company). Our fiscal year end is December 31st. All material intercompany accounts and transactions have been eliminated. The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Condensed Consolidated Financial Statements and accompanying notes. Actual results could differ materially from management’s estimates.
Condensed Consolidated Statements of Operations

Net sales in our Condensed Consolidated Statements of Operations include revenue earned when products are shipped and title and risk of loss have passed to the customer. Revenue is recorded net of returns, discounts and incentives offered to customers. Cost of sales includes cost to manufacture and/or purchase products, warehouse, shipping and delivery costs and other costs.
Foreign Currency Translation

Assets and liabilities of non-U.S. subsidiaries that operate in a local currency environment, where that local currency is the functional currency, are translated to U.S. dollars at exchange rates in effect at the balance sheet date, with the resulting translation adjustments directly recorded to a separate component of accumulated other comprehensive loss. Income and expense accounts are translated at average exchange rates during the year. The effect of exchange rate changes on transactions denominated in currencies other than the functional currency is recorded in other income (expense).
Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred income tax assets and liabilities are recognized for estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax attribute carry-forwards. Deferred income tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. Financial Accounting Standards Board Accounting Standards Codification™ (FASB ASC) Topic 740, “Income Taxes,” requires that a valuation allowance be recorded when it is more likely than not that some portion or all of the deferred income tax assets will not be realized. Deferred income tax assets and liabilities are determined separately for each tax jurisdiction in which we conduct our operations or otherwise incur taxable income or losses. In the United States, Portugal and the Netherlands, we have recorded valuation allowances against our deferred income tax assets. See note 6 for further discussion.
In assessing the need for recording or releasing a valuation allowance, we weigh all available positive and negative evidence. Examples of the evidence we consider are cumulative losses in recent years, losses expected in early future years, a history of potential tax benefits expiring unused, prudent and feasible tax planning strategies that could be implemented, and whether there was an unusual, infrequent or extraordinary item to be considered.
Stock-Based Compensation Expense

We account for stock-based compensation expense in accordance with FASB ASC Topic 718, “Compensation — Stock Compensation,” and FASB ASC Topic 505-50, “Equity — Equity-Based Payments to Non-Employees”. Stock-based compensation cost is measured based on the fair value of the equity instruments issued. FASB ASC Topics 718 and 505-50 apply to all of our outstanding unvested stock-based payment awards.
New Accounting Standards

In February 2013, the FASB issued Accounting Standards Update 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” (ASU 2013-02). ASU 2013-02 requires companies to present, either in a note or parenthetically on the face of the financial statements, the effect of amounts reclassified from each component of accumulated other comprehensive income based on its source and the income statement line items affected by the reclassification. This update is effective for interim and annual reporting periods beginning after December 15, 2012. Required interim disclosures have been made in our Condensed Consolidated Financial Statements at March 31, 2013.
We have pension plans covering the majority of our employees. Benefits generally are based on compensation for salaried employees and job grade and length of service for hourly employees. Our policy is to fund pension plans such that sufficient assets will be available to meet future benefit requirements. In addition, we have an unfunded supplemental employee retirement plan (SERP) that covers certain salaried U.S.-based employees of Libbey hired before January 1, 2006. The U.S. pension plans cover the salaried U.S.-based employees of Libbey hired before January 1, 2006 and most hourly U.S.-based employees (excluding employees hired at Shreveport after 2008 and at Toledo after September 30, 2010). Effective January 1, 2013, we ceased annual company contribution credits to the cash balance accounts in our Libbey U.S. Salaried Pension Plan and SERP. The non-U.S. pension plans cover the employees of our wholly owned subsidiaries in the Netherlands and Mexico. The plan in Mexico is not funded.
We provide certain retiree health care and life insurance benefits covering our U.S and Canadian salaried and non-union hourly employees hired before January 1, 2004 and a majority of our union hourly employees (excluding employees hired at Shreveport after 2008 and at Toledo after September 30, 2010). Employees are generally eligible for benefits upon retirement and completion of a specified number of years of creditable service. Effective January 1, 2013, we ended our existing healthcare benefit for salaried retirees age 65 and older and are now providing a Retiree Health Reimbursement Arrangement (RHRA) that supports retirees in purchasing a Medicare plan that meets their needs. Also effective January 1, 2013, we reduced the maximum life insurance benefit for salaried retirees to $10,000. Benefits for most hourly retirees are determined by collective bargaining. The U.S. non-pension postretirement plans cover the hourly and salaried U.S.-based employees of Libbey (excluding those mentioned above). The non-U.S. non-pension postretirement plans cover the retirees and active employees of Libbey who are located in Canada. The postretirement benefit plans are not funded.
When applicable, diluted shares outstanding include the dilutive impact of restricted stock units. Diluted shares also include the impact of in-the-money employee stock options, which are calculated based on the average share price for each fiscal period using the treasury stock method.
Derivatives

We utilize derivative financial instruments to hedge certain interest rate risks associated with our long-term debt, commodity price risks associated with forecasted future natural gas requirements and foreign exchange rate risks associated with transactions denominated in a currency other than the U.S. dollar. Most of these derivatives, except for the foreign currency contracts, 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. All of these contracts were accounted for under FASB ASC 815 “Derivatives and Hedging.”
Effective January 1, 2013, we revised our reporting segments to align with our previously announced regionally focused organizational structure which will enable us to better serve customers across the globe. Under this structure, we now report financial results for the Americas; Europe, the Middle East and Africa (EMEA); and Other. In addition, sales and segment EBIT reflect end market reporting pursuant to which sales and related costs are included in segment EBIT based on the geographical destination of the sale. The revised segment results do not affect any previously reported consolidated financial results. Our two reportable segments are defined below. Our operating segments that do not meet the criteria for reportable segments are disclosed as Other.

Americas—includes worldwide sales of manufactured and sourced glass tableware having an end market destination in North
and South America.

EMEA—includes worldwide sales of manufactured and sourced glass tableware having an end market destination in Europe,
the Middle East and Africa.

Other —includes worldwide sales of manufactured and sourced glass tableware having an end market destination in
Asia Pacific and worldwide sales of sourced ceramic dinnerware, metal tableware, hollowware, and serveware.

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. 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.
The fair values of our commodity futures natural gas contracts and currency contracts are determined using observable market inputs. The fair value of our interest rate agreement is based on the market standard methodology of netting the discounted expected future fixed cash receipts and the discounted future variable cash payments. The variable cash payments are based on an expectation of future interest rates derived from observed market interest rate forward curves. Since these inputs are observable in active markets over the terms that the instruments are held, the derivatives are classified as Level 2 in the hierarchy. We also evaluate Company and counterparty risk in determining fair values. The commodity futures natural gas contracts, interest rate protection agreements and currency contracts are hedges of either recorded assets or liabilities or anticipated transactions.
Significant Accounting Policies (Tables)
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]
Stock-based compensation expense charged to the Condensed Consolidated Statements of Operations is as follows:
 
 
Three months ended March 31,
(dollars in thousands)
 
2013
 
2012
Stock-based compensation expense
 
$
824

 
$
727


Balance Sheet Details (Tables)
Schedule of Other Assets and Other Liabilities [Table Text Block]
The following table provides detail of selected balance sheet items:
(dollars in thousands)
March 31, 2013
 
December 31, 2012
Accounts receivable:
 
 
 
Trade receivables
$
84,859

 
$
79,624

Other receivables
1,405

 
1,226

Total accounts receivable, less allowances of $5,828 and $5,703
$
86,264

 
$
80,850

 
 
 
 
Inventories:
 
 
 
Finished goods
$
149,650

 
$
139,888

Work in process
1,271

 
1,188

Raw materials
4,525

 
4,828

Repair parts
10,537

 
10,283

Operating supplies
1,391

 
1,362

Total inventories, less allowances of $4,604 and $4,091
$
167,374

 
$
157,549

 
 
 
 
Prepaid and other current assets:
 
 
 
Value added tax
$
6,280

 
$
3,850

Prepaid expenses
5,401

 
5,036

Deferred income taxes
4,068

 
4,070

Derivative asset
1,085

 
41

Total prepaid and other current assets
$
16,834

 
$
12,997

 
 
 
 
Other assets:
 
 
 
Deposits
$
1,298

 
$
936

Finance fees — net of amortization
13,043

 
13,539

Other assets
2,088

 
3,825

Total other assets
$
16,429

 
$
18,300

 
 
 
 
Accrued liabilities:
 
 
 
Accrued incentives
$
16,705

 
$
17,783

Workers compensation
6,943

 
7,128

Medical liabilities
4,351

 
3,537

Interest
11,372

 
3,732

Commissions payable
1,545

 
1,478

Contingency liability
2,719

 
2,719

Restructuring liability
2,195

 

Other accrued liabilities
8,035

 
6,486

Total accrued liabilities
$
53,865

 
$
42,863

 
 
 
 
Other long-term liabilities:
 
 
 
Deferred liability
$
5,629

 
$
5,591

Derivative liability
58

 

Other long-term liabilities
3,736

 
4,481

Total other long-term liabilities
$
9,423

 
$
10,072

Borrowings (Tables)
Borrowings consist of the following:
(dollars in thousands)
Interest Rate
 
Maturity Date
March 31,
2013
 
December 31,
2012
Borrowings under ABL Facility
floating
 
May 18, 2017
$

 
$

Senior Secured Notes
6.875%
(1)
May 15, 2020
450,000

 
450,000

Promissory Note
6.00%
 
April, 2013 to September, 2016
848

 
903

RMB Loan Contract
floating
 
January, 2014
9,576

 
9,522

BES Euro Line
floating
 
December, 2013
4,231

 
4,362

AICEP Loan
0.00%
 
January, 2016 to July 30, 2018
1,224

 
1,272

Total borrowings
 
 
 
465,879

 
466,059

Plus — carrying value adjustment on debt related to the Interest Rate Agreement (1)
274

 
408

Total borrowings — net
 
 
 
466,153

 
466,467

Less — long term debt due within one year
 
 
14,031

 
4,583

Total long-term portion of borrowings — net
 
$
452,122

 
$
461,884

_____________________________
(1)
See Interest Rate Agreements under “Senior Secured Notes” below and in note 9.
The fair market value and related carrying value adjustment are as follows:
(dollars in thousands)
March 31, 2013
 
December 31, 2012
Fair market value of Rate Agreements - asset (liability)
$
(58
)
 
$
298

Adjustment to increase (decrease) carrying value of the related long-term debt
$
274

 
$
408

The net impact recorded on the Condensed Consolidated Statements of Operations is as follows:
 
 
Three months ended March 31,
(dollars in thousands)
 
2013
 
2012
Income (expense) on hedging activities in other income (expense)
 
$
(222
)
 
$
419

Restructuring Charges (Tables)
The following table summarizes the pretax charge incurred through March 31, 2013:
(dollars in thousands)
Three months ended March 31, 2013
Accelerated depreciation
$
566

Included in cost of sales
566

Employee termination cost & other
2,322

Fixed asset write-down
1,992

Included in special charges
4,314

Total pretax charge
$
4,880


The following is the capacity realignment reserve activity for the three months ended March 31, 2013:
(dollars in thousands)
Reserve
Balance at
January 1, 2013
 
Total
Charge to Earnings
 
Cash
(payments) receipts
 
Non-cash Utilization
 
Reserve
Balance at
March 31, 2013
Accelerated depreciation
$

 
$
566

 
$

 
$
(566
)
 
$

Employee termination cost & other

 
2,322

 
(127
)
 

 
2,195

Fixed asset write-down

 
1,992

 

 
(1,992
)
 

Total
$

 
$
4,880

 
$
(127
)
 
$
(2,558
)
 
$
2,195

Income Taxes (Tables)
Schedule of Income Tax Payments [Table Text Block]
Income tax payments consisted of the following:
 
Three months ended March 31,
(dollars in thousands)
2013
 
2012
Total income tax payments, net of refunds
$
2,269

 
$
1,493

Less: credits or offsets
385

 
608

Cash paid, net
$
1,884

 
$
885

Pension and Non-pension Postretirement Benefits (Tables)
The components of our net pension expense, including the SERP, are as follows:
Three months ended March 31,
U.S. Plans
 
Non-U.S. Plans
 
Total
(dollars in thousands)
2013
 
2012
 
2013
 
2012
 
2013
 
2012
Service cost
$
1,278

 
$
1,555

 
$
722

 
$
442

 
$
2,000

 
$
1,997

Interest cost
3,481

 
4,019

 
1,256

 
1,256

 
4,737

 
5,275

Expected return on plan assets
(5,599
)
 
(4,485
)
 
(481
)
 
(607
)
 
(6,080
)
 
(5,092
)
Amortization of unrecognized:
 
 
 
 
 
 
 
 
 
 
 
Prior service cost
293

 
521

 
62

 
66

 
355

 
587

Loss
2,087

 
1,801

 
238

 
135

 
2,325

 
1,936

Settlement charge

 
420

 

 

 

 
420

Pension expense
$
1,540

 
$
3,831

 
$
1,797

 
$
1,292

 
$
3,337

 
$
5,123

The provision for our non-pension postretirement benefit expense consists of the following:
Three months ended March 31,
U.S. Plans
 
Non-U.S. Plans
 
Total
(dollars in thousands)
2013
 
2012
 
2013
 
2012
 
2013
 
2012
Service cost
$
392

 
$
368

 
$

 
$

 
$
392

 
$
368

Interest cost
701

 
857

 
23

 
26

 
724

 
883

Amortization of unrecognized:
 
 
 
 
 
 
 
 
 
 
 
Prior service cost
34

 
105

 

 

 
34

 
105

Loss / (gain)
291

 
229

 
(1
)
 

 
290

 
229

Non-pension postretirement benefit expense
$
1,418

 
$
1,559

 
$
22

 
$
26

 
$
1,440

 
$
1,585

Net Income per Share of Common Stock (Tables)
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]
The following table sets forth the computation of basic and diluted earnings per share:
 
Three months ended March 31,
(dollars in thousands, except earnings per share)
2013
 
2012
Numerators for earnings per share:
 
 
 
Net income that is available to common shareholders
$
1,989

 
$
641

 
 
 
 
Denominator for basic earnings per share:
 
 
 
Weighted average shares outstanding
21,114,963

 
20,769,415

 
 
 
 
Denominator for diluted earnings per share:
 
 
 
Effect of stock options and restricted stock units
478,785

 
414,942

Adjusted weighted average shares and assumed conversions
21,593,748

 
21,184,357

 
 
 
 
Basic earnings per share
$
0.09

 
$
0.03

 
 
 
 
Diluted earnings per share
$
0.09

 
$
0.03


Derivatives (Tables)
The following table provides the fair values of our derivative financial instruments for the periods presented:
 
 
Asset Derivatives:
(dollars in thousands)
 
March 31, 2013
 
December 31, 2012
Derivatives designated as hedging
instruments under FASB ASC 815:
 
Balance Sheet Location
 
Fair Value
 
Balance Sheet Location
 
Fair Value
Interest rate contract
 
Derivative asset
 
$

 
Derivative asset
 
$
298

Natural gas contracts
 
Prepaid and other current assets
 
793

 
 
 

Total designated
 
 
 
793

 
 
 
298

Derivatives not designated as hedging
instruments under FASB ASC 815:
 
 
 
 
 
 
 
 
Currency contracts
 
Prepaid and other current assets
 
292

 
Prepaid and other current assets
 
41

Total undesignated
 
 
 
292

 
 
 
41

Total
 
 
 
$
1,085

 
 
 
$
339

 
 
 
 
 
 
 
 
 
 
 
Liability Derivatives:
(dollars in thousands)
 
March 31, 2013
 
December 31, 2012
Derivatives designated as hedging
instruments under FASB ASC 815:
 
Balance Sheet Location
 
Fair Value
 
Balance Sheet Location
 
Fair Value
Natural gas contracts
 
 
 
$

 
Derivative liability
 
$
420

Interest rate contract
 
Other long-term liabilities
 
58

 
 
 

Total designated
 
 
 
58

 
 
 
420

Total
 
 
 
$
58

 
 
 
$
420

The following table provides a summary of the effective portion of derivative gain (loss) reclassified from accumulated other comprehensive loss to the Condensed Consolidated Statements of Operations:
 
 
 
Three months ended March 31,
(dollars in thousands)
 
 
2013
 
2012
Derivative:
Location:
 
 
 
 
Natural gas contracts
Cost of sales
 
$
(246
)
 
$
(1,460
)
Total impact on net income (loss)
 
 
$
(246
)
 
$
(1,460
)
The following table provides a summary of the gain (loss) recognized on the Condensed Consolidated Statements of Operations:
 
 
Three months ended March 31,
(dollars in thousands)
 
2013
 
2012
Interest rate swap
 
$
(356
)
 
$
13

Related long-term debt
 
134

 
406

Net impact
 
$
(222
)
 
$
419

 
 
 
 
 
The following table provides a summary of the effective portion of derivative gain (loss) recognized in other comprehensive income (loss):
 
 
Three months ended March 31,
(dollars in thousands)
 
2013
 
2012
Derivatives in Cash Flow Hedging relationships:
 
 
 
 
Natural gas contracts
 
$
967

 
$
(2,104
)
Total
 
$
967

 
$
(2,104
)
Gains (losses) for derivatives that were not designated as hedging instruments are recorded in current earnings as follows:
 
 
 
Three months ended March 31,
(dollars in thousands)
 
 
2013
 
2012
Derivative:
Location:
 
 

 
 

Currency contracts
Other income (expense)
 
$
251

 
$
(162
)
Total
 
 
$
251

 
$
(162
)
Comprehensive Income (Loss) (Tables)
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]
Accumulated other comprehensive loss, net of tax, is as follows:
(dollars in thousands)
 
Foreign Currency Translation
 
Derivative Instruments
 
Pension and Other Postretirement Benefits
 
Total
Accumulated
Comprehensive Loss
Balance on December 31, 2012
 
$
(1,641
)
 
$
489

 
$
(139,888
)
 
$
(141,040
)
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
 
(2,925
)
 
967

 

 
(1,958
)
Currency impact
 

 

 
(352
)
 
(352
)
Amounts reclassified from accumulated other comprehensive income (loss):
 
 
 
 
 
 
 
 
    Amortization of actuarial loss (1)
 

 

 
2,600

 
2,600

    Amortization of prior service cost (1)
 

 

 
369

 
369

    Amortization of transition obligation (1)
 

 

 
21

 
21

    Cost of sales
 

 
246

 

 
246

Current-period other comprehensive income (loss)
 
(2,925
)
 
1,213

 
2,638

 
926

Tax effect
 

 
(168
)
 
33

 
(135
)
Balance on March 31, 2013
 
$
(4,566
)
 
$
1,534

 
$
(137,217
)
 
$
(140,249
)
_____________________________
(1) These accumulated other comprehensive income components are included in the computation of net periodic benefit cost within the cost of sales and selling, general and administrative expenses on the Condensed Consolidated Statements of Operations.

Condensed Consolidated Guarantor Financial Statements (Tables)
The following tables contain Condensed Consolidating Financial Statements of (a) the parent, Libbey Inc., (b) the issuer, Libbey Glass, (c) the Subsidiary Guarantors, (d) the indirect subsidiaries of Libbey Inc. that are not Subsidiary Guarantors (collectively, Non-Guarantor Subsidiaries), (e) the consolidating elimination entries, and (f) the consolidated totals.
Libbey Inc.
Condensed Consolidating Statements of Comprehensive Income
(unaudited)
 
Three months ended March 31, 2013
(dollars in thousands)
Libbey
Inc.
(Parent)
 
Libbey
Glass
(Issuer)
 
Subsidiary
Guarantors
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net sales
$

 
$
86,930

 
$
18,360

 
$
89,379

 
$
(11,193
)
 
$
183,476

Freight billed to customers

 
99

 
234

 
419

 

 
752

Total revenues

 
87,029

 
18,594

 
89,798

 
(11,193
)
 
184,228

Cost of sales

 
62,600

 
14,360

 
76,229

 
(11,193
)
 
141,996

Gross profit

 
24,429

 
4,234

 
13,569

 

 
42,232

Selling, general and administrative expenses

 
15,057

 
2,669

 
8,671

 

 
26,397

Special charges

 
4,314

 

 

 

 
4,314

Income (loss) from operations

 
5,058

 
1,565

 
4,898

 

 
11,521

Other income (expense)

 
(1
)
 
(9
)
 
(425
)
 

 
(435
)
Earnings (loss) before interest and income taxes

 
5,057

 
1,556

 
4,473

 

 
11,086

Interest expense

 
6,420

 

 
2,015

 

 
8,435

Income (loss) before income taxes

 
(1,363
)
 
1,556

 
2,458

 

 
2,651

Provision (benefit) for income taxes

 
(819
)
 
2

 
1,479

 

 
662

Net income (loss)

 
(544
)
 
1,554

 
979

 

 
1,989

Equity in net income (loss) of subsidiaries
1,989

 
2,533

 

 

 
(4,522
)
 

Net income (loss)
$
1,989

 
$
1,989

 
$
1,554

 
$
979

 
$
(4,522
)
 
$
1,989

 
 
 
 
 
 
 
 
 
 
 
 
Comprehensive income (loss)
$
2,780

 
$
2,780

 
$
1,696

 
$
(1,552
)
 
$
(2,924
)
 
$
2,780

 
Three months ended March 31, 2012
(dollars in thousands)
Libbey
Inc.
(Parent)
 
Libbey
Glass
(Issuer)
 
Subsidiary
Guarantors
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net sales
$

 
$
93,480

 
$
17,445

 
$
93,159

 
$
(16,255
)
 
$
187,829

Freight billed to customers

 
166

 
183

 
359

 

 
708

Total revenues

 
93,646

 
17,628

 
93,518

 
(16,255
)
 
188,537

Cost of sales

 
74,311

 
13,013

 
74,412

 
(16,255
)
 
145,481

Gross profit

 
19,335

 
4,615

 
19,106

 

 
43,056

Selling, general and administrative expenses

 
17,942

 
1,516

 
8,668

 

 
28,126

Special charges

 

 

 

 

 

Income (loss) from operations

 
1,393

 
3,099

 
10,438

 

 
14,930

Other income (expense)

 
297

 
12

 
(900
)
 

 
(591
)
Earnings (loss) before interest and income taxes

 
1,690

 
3,111

 
9,538

 

 
14,339

Interest expense

 
8,193

 

 
2,215

 

 
10,408

Income (loss) before income taxes

 
(6,503
)
 
3,111

 
7,323

 

 
3,931

Provision (benefit) for income taxes

 
225

 

 
3,065

 

 
3,290

Net income (loss)

 
(6,728
)
 
3,111

 
4,258

 

 
641

Equity in net income (loss) of subsidiaries
641

 
7,369

 

 

 
(8,010
)
 

Net income (loss)
$
641

 
$
641

 
$
3,111

 
$
4,258

 
$
(8,010
)
 
$
641

 
 
 
 
 
 
 
 
 
 
 
 
Comprehensive income (loss)
$
5,753

 
$
5,753

 
$
3,235

 
$
7,044

 
$
(16,032
)
 
$
5,753


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31, 2013 (unaudited)
(dollars in thousands)
Libbey
Inc.
(Parent)
 
Libbey
Glass
(Issuer)
 
Subsidiary
Guarantors
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Cash and equivalents
$

 
$
29,134

 
$
93

 
$
16,722

 
$

 
$
45,949

Accounts receivable — net

 
32,082

 
5,823

 
48,359

 

 
86,264

Inventories — net

 
61,300

 
19,473

 
86,601

 

 
167,374

Other current assets

 
19,107

 
736

 
14,321

 
(17,330
)
 
16,834

Total current assets

 
141,623

 
26,125

 
166,003

 
(17,330
)
 
316,421

Other non-current assets

 
19,889

 
349

 
20,373

 
(4,190
)
 
36,421

Investments in and advances to subsidiaries
28,211

 
394,758

 
191,367

 
(40,824
)
 
(573,512
)
 

Goodwill and purchased intangible assets — net

 
27,757

 
12,347

 
147,220

 

 
187,324

Total other assets
28,211

 
442,404

 
204,063

 
126,769

 
(577,702
)
 
223,745

Property, plant and equipment — net

 
68,698

 
282

 
184,029

 

 
253,009

Total assets
$
28,211

 
$
652,725

 
$
230,470

 
$
476,801

 
$
(595,032
)
 
$
793,175

 
 
 
 
 
 
 
 
 
 
 
 
Accounts payable
$

 
$
11,990

 
$
1,578

 
$
43,691

 
$

 
$
57,259

Accrued and other current liabilities

 
60,435

 
20,485

 
27,085

 
(17,329
)
 
90,676

Notes payable and long-term debt due within one year

 
224

 

 
13,807

 

 
14,031

Total current liabilities

 
72,649

 
22,063

 
84,583

 
(17,329
)
 
161,966

Long-term debt

 
450,898

 

 
1,224

 

 
452,122

Other long-term liabilities

 
93,302

 
9,517

 
52,247

 
(4,190
)
 
150,876

Total liabilities

 
616,849

 
31,580

 
138,054

 
(21,519
)
 
764,964

Total shareholders’ equity (deficit)
28,211

 
35,876

 
198,890

 
338,747

 
(573,513
)
 
28,211

Total liabilities and shareholders’ equity (deficit)
$
28,211

 
$
652,725

 
$
230,470

 
$
476,801

 
$
(595,032
)
 
$
793,175

Libbey Inc.
Condensed Consolidating Balance Sheet


 
December 31, 2012
(dollars in thousands)
Libbey
Inc.
(Parent)
 
Libbey
Glass
(Issuer)
 
Subsidiary
Guarantors
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Cash and equivalents
$

 
$
43,558

 
$
70

 
$
23,580

 
$

 
$
67,208

Accounts receivable — net

 
33,987

 
3,560

 
43,303

 

 
80,850

Inventories — net

 
52,627

 
18,477

 
86,445

 

 
157,549

Other current assets

 
17,931

 
810

 
10,446

 
(16,190
)
 
12,997

Total current assets

 
148,103

 
22,917

 
163,774

 
(16,190
)
 
318,604

Other non-current assets

 
22,373

 
54

 
20,387

 
(4,190
)
 
38,624

Investments in and advances to subsidiaries
24,476

 
384,414

 
194,316

 
(35,962
)
 
(567,244
)
 

Goodwill and purchased intangible assets — net

 
26,833

 
12,347

 
147,614

 

 
186,794

Total other assets
24,476

 
433,620

 
206,717

 
132,039

 
(571,434
)
 
225,418

Property, plant and equipment — net

 
72,780

 
298

 
185,076

 

 
258,154

Total assets
$
24,476

 
$
654,503

 
$
229,932

 
$
480,889

 
$
(587,624
)
 
$
802,176

 
 
 
 
 
 
 
 
 
 
 
 
Accounts payable
$

 
$
15,339

 
$
2,854

 
$
47,519

 
$

 
$
65,712

Accrued and other current liabilities

 
63,674

 
20,194

 
27,857

 
(16,190
)
 
95,535

Notes payable and long-term debt due within one year

 
221

 

 
4,362

 

 
4,583

Total current liabilities

 
79,234

 
23,048

 
79,738

 
(16,190
)
 
165,830

Long-term debt

 
451,090

 

 
10,794

 

 
461,884

Other long-term liabilities

 
94,434

 
9,691

 
50,051

 
(4,190
)
 
149,986

Total liabilities

 
624,758

 
32,739

 
140,583

 
(20,380
)
 
777,700

Total shareholders’ equity (deficit)
24,476

 
29,745

 
197,193

 
340,306

 
(567,244
)
 
24,476

Total liabilities and shareholders’ equity (deficit)
$
24,476

 
$
654,503

 
$
229,932

 
$
480,889

 
$
(587,624
)
 
$
802,176

 
Three months ended March 31, 2013
(dollars in thousands)
Libbey
Inc.
(Parent)
 
Libbey
Glass
(Issuer)
 
Subsidiary
Guarantors
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net income (loss)
$
1,989

 
$
1,989

 
$
1,554

 
$
979

 
$
(4,522
)
 
$
1,989

Depreciation and amortization

 
4,114

 
17

 
6,643

 

 
10,774

Other operating activities
(1,989
)
 
(19,007
)
 
(1,548
)
 
(7,421
)
 
4,522

 
(25,443
)
Net cash provided by (used in) operating activities

 
(12,904
)
 
23

 
201

 

 
(12,680
)
Additions to property, plant & equipment

 
(2,004
)
 

 
(6,878
)
 

 
(8,882
)
Other investing activities

 
1

 

 
3

 

 
4

Net cash (used in) investing activities

 
(2,003
)
 

 
(6,875
)
 

 
(8,878
)
Net borrowings (repayments)

 
(54
)
 

 
(5
)
 

 
(59
)
Other financing activities

 
537

 

 

 

 
537

Net cash provided by (used in) financing activities

 
483

 

 
(5
)
 

 
478

Exchange effect on cash

 

 

 
(179
)
 

 
(179
)
Increase (decrease) in cash

 
(14,424
)
 
23

 
(6,858
)
 

 
(21,259
)
Cash at beginning of period

 
43,558

 
70

 
23,580

 

 
67,208

Cash at end of period
$

 
$
29,134

 
$
93

 
$
16,722

 
$

 
$
45,949




 
Three months ended March 31, 2012
(dollars in thousands)
Libbey
Inc.
(Parent)
 
Libbey
Glass
(Issuer)
 
Subsidiary
Guarantors
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net income (loss)
$
641

 
$
641

 
$
3,111

 
$
4,258

 
$
(8,010
)
 
$
641

Depreciation and amortization

 
3,538

 
19

 
6,979

 

 
10,536

Other operating activities
(641
)
 
(30,332
)
 
(3,128
)
 
(4,184
)
 
8,010

 
(30,275
)
Net cash provided by (used in) operating activities

 
(26,153
)
 
2

 
7,053

 

 
(19,098
)
Additions to property, plant & equipment

 
(3,181
)
 

 
(3,265
)
 

 
(6,446
)
Other investing activities

 

 

 
180

 

 
180

Net cash (used in) investing activities

 
(3,181
)
 

 
(3,085
)
 

 
(6,266
)
Net borrowings (repayments)

 
(51
)
 

 
(343
)
 

 
(394
)
Other financing activities

 
28

 

 

 

 
28

Net cash provided by (used in) financing activities

 
(23
)
 

 
(343
)
 

 
(366
)
Exchange effect on cash

 

 

 
257

 

 
257

Increase (decrease) in cash

 
(29,357
)
 
2

 
3,882

 

 
(25,473
)
Cash at beginning of period

 
39,249

 
155

 
18,887

 

 
58,291

Cash at end of period
$

 
$
9,892

 
$
157

 
$
22,769

 
$

 
$
32,818


 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
Segments (Tables)
Reconciliation from Segment Totals to Consolidated [Table Text Block]
 
Three months ended March 31,
(dollars in thousands)
2013
 
2012
Net Sales:
 
 
 
Americas
$
123,535

 
$
129,675

EMEA
34,242

 
30,792

Other
25,699

 
27,362

Consolidated
$
183,476

 
$
187,829

 
 
 
 
Segment EBIT:
 
 
 
Americas
$
18,152

 
$
15,674

EMEA
(1,483
)
 
(580
)
Other
3,797

 
5,125

Total Segment EBIT
$
20,466

 
$
20,219

 
 
 
 
Reconciliation of Segment EBIT to Net Income:
 
 
 
Segment EBIT
$
20,466

 
$
20,219

Retained corporate costs
(4,500
)
 
(5,880
)
Restructuring charges (note 5)
(4,880
)
 

Interest expense
(8,435
)
 
(10,408
)
Income taxes
(662
)
 
(3,290
)
Net income
$
1,989

 
$
641

 
 
 
 
Depreciation & Amortization:
 
 
 
Americas
$
6,528

 
$
6,182

EMEA
2,486

 
2,548

Other
1,383

 
1,417

Corporate
377

 
389

Consolidated
$
10,774

 
$
10,536

 
 
 
 
Capital Expenditures:
 
 
 
Americas
$
6,875

 
$
5,164

EMEA
1,296

 
717

Other
335

 
513

Corporate
376

 
52

Consolidated
$
8,882

 
$
6,446


(dollars in thousands)
March 31, 2013
 
December 31, 2012
Segment Assets(1):
 
 
 
Americas
$
160,827

 
$
150,923

EMEA
48,292

 
49,981

Other
44,519

 
37,495

Consolidated
$
253,638

 
$
238,399


______________________________
(1) Segment assets are defined as net accounts receivable plus net inventory.



The following table contains 2012 segment information by quarter presented to conform with our new segment structure and end market reporting effective January 1, 2013.
 
2012 Quarter Ending
 
 
(dollars in thousands)
March 31
 
June 30
 
September 30
 
December 31
 
Total 2012
Net Sales:
 
 
 
 
 
 
 
 
 
Americas
$
129,675

 
$
148,584

 
$
146,169

 
$
156,306

 
$
580,734

EMEA
30,792

 
33,723

 
34,454

 
35,809

 
134,778

Other
27,362

 
26,940

 
28,527

 
26,946

 
109,775

Consolidated
$
187,829

 
$
209,247

 
$
209,150

 
$
219,061

 
$
825,287

 
 
 
 
 
 
 
 
 
 
Segment EBIT:
 
 
 
 
 
 
 
 
 
Americas
$
15,674

 
$
31,014

 
$
27,020

 
$
22,125

 
$
95,833

EMEA
(580
)
 
302

 
1,804

 
(2,240
)
 
(714
)
Other
5,125

 
5,508

 
5,378

 
4,216

 
20,227

Total Segment EBIT
$
20,219

 
$
36,824

 
$
34,202

 
$
24,101

 
$
115,346

 
 
 
 
 
 
 
 
 
 
Reconciliation of Segment EBIT to Net Income (Loss):
 
 
 
 
 
 
 
 
Segment EBIT
$
20,219

 
$
36,824

 
$
34,202

 
$
24,101

 
$
115,346

Retained corporate costs
(5,880
)
 
(7,428
)
 
(6,289
)
 
(4,816
)
 
(24,413
)
Severance

 

 
(3,911
)
 
(1,239
)
 
(5,150
)
Loss on redemption of debt

 
(31,075
)
 

 

 
(31,075
)
Pension curtailment and settlement

 

 
125

 
(4,431
)
 
(4,306
)
Interest expense
(10,408
)
 
(9,957
)
 
(8,720
)
 
(8,642
)
 
(37,727
)
Income taxes
(3,290
)
 
1,493

 
(546
)
 
(3,366
)
 
(5,709
)
Net income (loss)
$
641

 
$
(10,143
)
 
$
14,861

 
$
1,607

 
$
6,966

 
 
 
 
 
 
 
 
 
 
Depreciation & Amortization:
 
 
 
 
 
 
 
 
 
Americas
$
6,182

 
$
6,021

 
$
6,045

 
$
6,413

 
$
24,661

EMEA
2,548

 
2,466

 
2,375

 
2,357

 
9,746

Other
1,417

 
1,414

 
1,325

 
1,661

 
5,817

Corporate
389

 
387

 
328

 
143

 
1,247

Consolidated
$
10,536

 
$
10,288

 
$
10,073

 
$
10,574

 
$
41,471

 
 
 
 
 
 
 
 
 
 
Capital Expenditures:
 
 
 
 
 
 
 
 
 
Americas
$
5,164

 
$
3,259

 
$
3,839

 
$
11,759

 
$
24,021

EMEA
717

 
1,301

 
942

 
2,499

 
5,459

Other
513

 
510

 
152

 
1,021

 
2,196

Corporate
52

 
316

 
479

 
197

 
1,044

Consolidated
$
6,446

 
$
5,386

 
$
5,412

 
$
15,476

 
$
32,720

Fair Value (Tables)
 
Fair Value at
 
Fair Value at
Asset / (Liability)
(dollars in thousands)
March 31, 2013
 
December 31, 2012
Level 1
 
Level 2
 
Level 3
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
Commodity futures natural gas contracts
$

 
$
793

 
$

 
$
793

 
$

 
$
(420
)
 
$

 
$
(420
)
Currency contracts

 
292

 

 
292

 

 
41

 

 
41

Interest rate agreements

 
(58
)
 

 
(58
)
 

 
298

 

 
298

Net derivative asset (liability)
$

 
$
1,027

 
$

 
$
1,027

 
$

 
$
(81
)
 
$

 
$
(81
)
The total derivative position is recorded on the Condensed Consolidated Balance Sheets as follows:
Asset / (Liability)
(dollars in thousands)
 
March 31, 2013
 
December 31, 2012
Prepaid and other current assets
 
$
1,085

 
$
41

Derivative asset
 

 
298

Derivative liability
 

 
(420
)
Other long-term liabilities
 
(58
)
 

Net derivative asset (liability)
 
$
1,027

 
$
(81
)
Other Income (Expense) (Tables)
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 March 31,
(dollars in thousands)
2013
 
2012
Gain (loss) on currency translation
$
(283
)
 
$
(969
)
Hedge ineffectiveness
(222
)
 
419

Other non-operating income (expense)
70

 
(41
)
Other income (expense)
$
(435
)
 
$
(591
)
Description of the Business (Details)
Mar. 31, 2013
country
Production Operations [Member]
 
Description of Business [Line Items]
 
Number of countries in which entity operates
Sales Operations [Member] |
Minimum [Member]
 
Description of Business [Line Items]
 
Number of countries in which entity operates
100 
United States
 
Description of Business [Line Items]
 
Number of glass tableware manufacturing plants
Significant Accounting Policies (Stock-based Compensation) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Accounting Policies [Abstract]
 
 
Stock-based compensation expense
$ 824 
$ 727 
Balance Sheet Details (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2013
Dec. 31, 2012
Accounts receivable:
 
 
Accounts receivable
$ 86,264 
$ 80,850 
Allowance for doubtful accounts
5,828 
5,703 
Inventories:
 
 
Finished goods
149,650 
139,888 
Work in process
1,271 
1,188 
Raw materials
4,525 
4,828 
Repair parts
10,537 
10,283 
Operating supplies
1,391 
1,362 
Total inventories, less allowances of $4,604 and $4,091
167,374 
157,549 
Inventory allowances
4,604 
4,091 
Prepaid and other current assets:
 
 
Value added tax
6,280 
3,850 
Prepaid expenses
5,401 
5,036 
Deferred income taxes
4,068 
4,070 
Derivative asset
1,085 
41 
Total prepaid and other current assets
16,834 
12,997 
Other assets:
 
 
Deposits
1,298 
936 
Finance fees - net of amortization
13,043 
13,539 
Other assets
2,088 
3,825 
Total other assets
16,429 
18,300 
Accrued liabilities:
 
 
Accrued incentives
16,705 
17,783 
Workers compensation
6,943 
7,128 
Medical liabilities
4,351 
3,537 
Interest
11,372 
3,732 
Commissions payable
1,545 
1,478 
Contingency liability
2,719 
2,719 
Restructuring liability
2,195 
Other accrued liabilities
8,035 
6,486 
Total accrued liabilities
53,865 
42,863 
Other long-term liabilities:
 
 
Deferred liability
5,629 
5,591 
Derivative liability
58 
Other long-term liabilities
3,736 
4,481 
Total other long-term liabilities
9,423 
10,072 
Trade receivables [Member]
 
 
Accounts receivable:
 
 
Accounts receivable
84,859 
79,624 
Other receivables [Member]
 
 
Accounts receivable:
 
 
Accounts receivable
$ 1,405 
$ 1,226 
Borrowings (Debt Schedule) (Details)
In Thousands, unless otherwise specified
Mar. 31, 2013
USD ($)
Dec. 31, 2012
USD ($)
Mar. 31, 2013
Warehouse Promissory Note [Member]
Promissory Note [Member]
USD ($)
Dec. 31, 2012
Warehouse Promissory Note [Member]
Promissory Note [Member]
USD ($)
Mar. 31, 2013
Subsidiaries, Libbey Glass and Libbey Europe [Member]
ABL Facility [Member]
Line of Credit [Member]
USD ($)
Dec. 31, 2012
Subsidiaries, Libbey Glass and Libbey Europe [Member]
ABL Facility [Member]
Line of Credit [Member]
USD ($)
Mar. 31, 2013
Subsidiary, Libbey Glass [Member]
Senior Secured Notes [Member]
USD ($)
Dec. 31, 2012
Subsidiary, Libbey Glass [Member]
Senior Secured Notes [Member]
USD ($)
Jun. 29, 2012
Subsidiary, Libbey Glass [Member]
Senior Secured Notes [Member]
Mar. 31, 2013
Subsidiary, Libbey China [Member]
RMB Loan Contract [Member]
Construction Loans [Member]
USD ($)
Mar. 31, 2013
Subsidiary, Libbey China [Member]
RMB Loan Contract [Member]
Construction Loans [Member]
CNY
Dec. 31, 2012
Subsidiary, Libbey China [Member]
RMB Loan Contract [Member]
Construction Loans [Member]
USD ($)
Mar. 31, 2013
Subsidiary, Libbey Portugal [Member]
BES Euro Line [Member]
Line of Credit [Member]
USD ($)
Mar. 31, 2013
Subsidiary, Libbey Portugal [Member]
BES Euro Line [Member]
Line of Credit [Member]
EUR (€)
Dec. 31, 2012
Subsidiary, Libbey Portugal [Member]
BES Euro Line [Member]
Line of Credit [Member]
USD ($)
Mar. 31, 2013
Subsidiary, Libbey Portugal [Member]
AICEP Loan [Member]
Loans Payable [Member]
USD ($)
Dec. 31, 2012
Subsidiary, Libbey Portugal [Member]
AICEP Loan [Member]
Loans Payable [Member]
USD ($)
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate
 
 
6.00% 
 
 
 
6.875% 
 
10.00% 
 
 
 
 
 
 
0.00% 
 
Total borrowings
$ 465,879 
$ 466,059 
$ 848 
$ 903 
$ 0 
$ 0 
$ 450,000 
$ 450,000 
 
$ 9,576 
 60,000 
$ 9,522 
$ 4,231 
€ 3,300 
$ 4,362 
$ 1,224 
$ 1,272 
Plus -- carrying value adjustment on debt related to the Interest Rate Agreement (1)
274 1
408 1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total borrowings -- net
466,153 
466,467 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Less -- long-term debt due within one year
14,031 
4,583 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total long-term portion of borrowings -- net
$ 452,122 
$ 461,884 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Borrowings (ABL Credit Agreement Narrative) (Details) (USD $)
3 Months Ended
Mar. 31, 2013
Dec. 31, 2012
Mar. 31, 2013
ABL Facility [Member]
Line of Credit [Member]
Mar. 31, 2013
Subsidiaries, Libbey Glass and Libbey Europe [Member]
ABL Facility [Member]
Line of Credit [Member]
entity
Dec. 31, 2012
Subsidiaries, Libbey Glass and Libbey Europe [Member]
ABL Facility [Member]
Line of Credit [Member]
Mar. 31, 2013
Subsidiaries, Libbey Glass and Libbey Europe [Member]
ABL Facility [Member]
Letter of Credit [Member]
Mar. 31, 2013
Subsidiary, Libbey Glass [Member]
ABL Facility [Member]
Line of Credit [Member]
Mar. 31, 2013
Subsidiary, Libbey Glass [Member]
Line of Credit, Swingline [Member]
Line of Credit [Member]
Mar. 31, 2013
Subsidiaries, Present and Future Direct and Indirect Domestic Subsidiaries of Libbey Glass [Member]
ABL Facility [Member]
Line of Credit [Member]
Mar. 31, 2013
Subsidiaries, First-tier Present and Future Foreign Subsidiaries of Libbey Glass [Member]
ABL Facility [Member]
Line of Credit [Member]
Mar. 31, 2013
Subsidiary, Libbey Europe [Member]
ABL Facility [Member]
Line of Credit [Member]
Mar. 31, 2013
Subsidiary, Libbey Europe [Member]
Line of Credit, Swingline [Member]
Line of Credit [Member]
Mar. 31, 2013
Subsidiaries, Dutch Subsidiaries of Libbey Europe [Member]
ABL Facility [Member]
Line of Credit [Member]
Mar. 31, 2013
CB Floating Rate [Member]
Line of Credit, Swingline [Member]
Line of Credit [Member]
Mar. 31, 2013
Netherlands Swing Line Rate [Member]
Line of Credit, Swingline [Member]
Line of Credit [Member]
Mar. 31, 2013
Line of Credit [Member]
Subsidiaries, Libbey Glass and Libbey Europe [Member]
ABL Facility [Member]
Dec. 31, 2012
Line of Credit [Member]
Subsidiaries, Libbey Glass and Libbey Europe [Member]
ABL Facility [Member]
Mar. 31, 2013
Maximum [Member]
Subsidiaries, First-Tier Subsidiaries of Libbey Europe and its Dutch Subsidiaries [Member]
ABL Facility [Member]
Line of Credit [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of financial institutions participating
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of credit facility, maximum borrowing capacity
 
 
 
$ 100,000,000 
 
$ 30,000,000 
 
$ 15,000,000 
 
 
 
$ 7,500,000 
 
 
 
 
 
 
Security, percent of entity stock
 
 
 
 
 
 
100.00% 
 
100.00% 
 
100.00% 
 
100.00% 
 
 
 
 
100.00% 
Security, percent of entity stock, non-voting
 
 
 
 
 
 
 
 
 
100.00% 
 
 
 
 
 
 
 
 
Security, percent of entity stock, voting
 
 
 
 
 
 
 
 
 
65.00% 
 
 
 
 
 
 
 
 
Applicable rates
 
 
 
 
 
 
 
 
 
 
 
 
 
0.50% 
1.50% 
 
 
 
Commitment fee percentage
 
 
0.375% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Covenant terms, conditional minimum fixed charge coverage ratio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Covenant, fixed charge coverage ratio, unused borrowing capacity below which covenant is applicable
 
 
 
10,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Additional available borrowing capacity
 
 
 
25,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total borrowings
465,879,000 
466,059,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest period, minimum
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 month 
 
 
Interest period, maximum
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6 months 
 
 
Line of credit facility, amount outstanding
 
 
 
 
 
8,500,000 
 
 
 
 
 
 
 
 
 
 
 
 
Borrowing base, component of sum, % of eligible accounts receivable
 
 
 
85.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Borrowing base, alternative component of sum, % of NOLV of eligible inventory
 
 
 
85.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Borrowing base, alternative component of sum, % of eligible inventory
 
 
 
65.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Borrowing base, alternative component of sum, amount
 
 
 
75,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Borrowing base, amount of rent reserves offset
 
 
 
700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of credit facility, remaining borrowing capacity
 
 
 
$ 73,300,000 
$ 68,600,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Borrowings (Senior Secured Notes Narrative) (Details) (Subsidiary, Libbey Glass [Member], Senior Secured Notes [Member], USD $)
In Millions, unless otherwise specified
Mar. 31, 2013
Dec. 31, 2012
Jun. 29, 2012
May 18, 2012
Mar. 31, 2013
Prior to May 15, 2015 [Member]
Mar. 31, 2013
Redeemable With Proceeds of Equity Offerings [Member]
Prior to May 15, 2015 [Member]
Mar. 31, 2013
Minimum [Member]
May 7, 2013
Subsequent Event [Member]
Mar. 31, 2013
Interest rate agreements [Member]
Fair Value Hedging [Member]
Prior to May 15, 2015 [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
Debt instrument, face amount
 
 
 
$ 450.0 
 
 
 
 
 
Deferred finance costs, gross
 
13.6 
 
 
 
 
 
 
 
Interest rate
6.875% 
 
10.00% 
 
 
 
 
 
 
Debtholders eligible to declare notes due and payable immediately, qualifying % of contemporaneous notes outstanding
 
 
 
 
 
 
25.00% 
 
 
Redeemable portion of notes, %
 
 
 
 
10.00% 
35.00% 
 
 
 
Redemption price, % of principal
 
 
 
 
103.00% 
106.875% 
 
 
 
Portion of original principal amount that must remain outstanding after each redemption
 
 
 
 
 
65.00% 
 
 
 
Deadline for redemption after equity offering
 
 
 
 
 
90 days 
 
 
 
Minimum time period between redemptions
 
 
 
 
 
 
 
 
12 months 
Redeemed notes, face amount
 
 
 
 
 
 
 
$ 45.0 
 
Borrowings (Interest Rate Swap Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 3 Months Ended
Mar. 31, 2013
Subsidiary, Libbey Glass [Member]
Senior Secured Notes [Member]
Jun. 29, 2012
Subsidiary, Libbey Glass [Member]
Senior Secured Notes [Member]
Mar. 31, 2013
Fair Value Hedging [Member]
Interest rate agreements [Member]
Prior to May 15, 2015 [Member]
Subsidiary, Libbey Glass [Member]
Senior Secured Notes [Member]
Jun. 30, 2012
Fair Value Hedging [Member]
Old Rate Agreement [Member]
Interest rate agreements [Member]
Apr. 18, 2012
Fair Value Hedging [Member]
Old Rate Agreement [Member]
Interest rate agreements [Member]
Senior Secured Notes [Member]
Apr. 17, 2012
Fair Value Hedging [Member]
Old Rate Agreement [Member]
Interest rate agreements [Member]
Senior Secured Notes [Member]
Mar. 31, 2013
Fair Value Hedging [Member]
New Rate Agreement [Member]
Interest rate agreements [Member]
Senior Secured Notes [Member]
Mar. 31, 2013
Fair Value Hedging [Member]
New Rate Agreement [Member]
Interest rate agreements [Member]
Prior to May 15, 2015 [Member]
Senior Secured Notes [Member]
Jun. 30, 2012
Fair Value Hedging [Member]
Interest Expense [Member]
Old Rate Agreement [Member]
Interest rate agreements [Member]
Jun. 30, 2012
Designated as Hedging Instrument [Member]
Fair Value Hedging [Member]
Loss on Redemption of Debt [Member]
Old Rate Agreement [Member]
Interest rate agreements [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
Derivative, notional amount
 
 
 
 
 
$ 80.0 
$ 45.0 
 
 
 
Derivative, variable interest rate
 
 
 
 
7.79% 
 
5.60% 
 
 
 
Interest rate
6.875% 
10.00% 
 
 
 
 
 
 
 
 
Proceeds from termination of hedge
 
 
 
3.6 
 
 
 
 
 
 
Gain (loss) on carrying value adjustment on debt related to interest rate swap
 
 
 
 
 
 
 
 
$ 0.1 
$ 3.5 
Minimum time period between redemptions
 
 
12 months 
 
 
 
 
 
 
 
Portion of derivative callable by counterparty, %
 
 
 
 
 
 
 
10.00% 
 
 
Call price of derivative, % of principal
 
 
 
 
 
 
 
103.00% 
 
 
Borrowings (Interest Rate Swap on Senior Secured Notes) (Details) (USD $)
3 Months Ended
Mar. 31, 2013
Dec. 31, 2012
Mar. 31, 2013
Derivative asset [Member]
Interest rate agreements [Member]
Designated as Hedging Instrument [Member]
Dec. 31, 2012
Derivative asset [Member]
Interest rate agreements [Member]
Designated as Hedging Instrument [Member]
Mar. 31, 2013
Fair Value Hedging [Member]
Designated as Hedging Instrument [Member]
Mar. 31, 2012
Fair Value Hedging [Member]
Designated as Hedging Instrument [Member]
Mar. 31, 2013
Other Income (Expense) [Member]
Fair Value Hedging [Member]
Interest rate agreements [Member]
Designated as Hedging Instrument [Member]
Mar. 31, 2012
Other Income (Expense) [Member]
Fair Value Hedging [Member]
Interest rate agreements [Member]
Designated as Hedging Instrument [Member]
Jun. 30, 2012
Old Rate Agreement [Member]
Interest Expense [Member]
Fair Value Hedging [Member]
Interest rate agreements [Member]
Jun. 30, 2012
Old Rate Agreement [Member]
Loss on Redemption of Debt [Member]
Fair Value Hedging [Member]
Interest rate agreements [Member]
Designated as Hedging Instrument [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
Fair market value of Rate Agreements - asset (liability)
$ 1,027,000 
$ (81,000)
$ (58,000)
$ 298,000 
 
 
 
 
 
 
Adjustment to (decrease) increase the carrying value of the related long-term debt
274,000 1
408,000 1
 
 
 
 
 
 
 
 
Net impact on Condensed Consolidated Statements of Operations
 
 
 
 
(222,000)
419,000 
(222,000)
419,000 
 
 
Gain (loss) on carrying value adjustment on debt related to interest rate swap
 
 
 
 
 
 
 
 
$ 100,000 
$ 3,500,000 
Borrowings (Other Borrowings Narrative) (Details)
Mar. 31, 2013
USD ($)
Dec. 31, 2012
USD ($)
Mar. 31, 2012
USD ($)
Dec. 31, 2011
USD ($)
Mar. 31, 2013
Warehouse Promissory Note [Member]
Promissory Note [Member]
USD ($)
Dec. 31, 2012
Warehouse Promissory Note [Member]
Promissory Note [Member]
USD ($)
Sep. 30, 2001
Warehouse Promissory Note [Member]
Promissory Note [Member]
USD ($)
Mar. 31, 2013
Subsidiary, Libbey China [Member]
RMB Loan Contract [Member]
Construction Loans [Member]
USD ($)
Mar. 31, 2013
Subsidiary, Libbey China [Member]
RMB Loan Contract [Member]
Construction Loans [Member]
CNY
Dec. 31, 2012
Subsidiary, Libbey China [Member]
RMB Loan Contract [Member]
Construction Loans [Member]
USD ($)
Jan. 23, 2006
Subsidiary, Libbey China [Member]
RMB Loan Contract [Member]
Construction Loans [Member]
USD ($)
Jan. 23, 2006
Subsidiary, Libbey China [Member]
RMB Loan Contract [Member]
Construction Loans [Member]
CNY
Mar. 31, 2013
Subsidiary, Libbey Portugal [Member]
BES Euro Line [Member]
Line of Credit [Member]
USD ($)
Mar. 31, 2013
Subsidiary, Libbey Portugal [Member]
BES Euro Line [Member]
Line of Credit [Member]
EUR (€)
Dec. 31, 2012
Subsidiary, Libbey Portugal [Member]
BES Euro Line [Member]
Line of Credit [Member]
USD ($)
Jan. 31, 2007
Subsidiary, Libbey Portugal [Member]
BES Euro Line [Member]
Line of Credit [Member]
USD ($)
Jan. 31, 2007
Subsidiary, Libbey Portugal [Member]
BES Euro Line [Member]
Line of Credit [Member]
EUR (€)
Mar. 31, 2013
Subsidiary, Libbey Portugal [Member]
AICEP Loan [Member]
Loans Payable [Member]
USD ($)
Mar. 31, 2013
Subsidiary, Libbey Portugal [Member]
AICEP Loan [Member]
Loans Payable [Member]
EUR (€)
Dec. 31, 2012
Subsidiary, Libbey Portugal [Member]
AICEP Loan [Member]
Loans Payable [Member]
USD ($)
Mar. 31, 2013
Notes Payable [Member]
USD ($)
Mar. 31, 2013
Notes Payable [Member]
EUR (€)
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total borrowings
$ 465,879,000 
$ 466,059,000 
 
 
$ 848,000 
$ 903,000 
 
$ 9,576,000 
 60,000,000 
$ 9,522,000 
 
 
$ 4,231,000 
€ 3,300,000 
$ 4,362,000 
 
 
$ 1,224,000 
 
$ 1,272,000 
$ 0 
 
Debt instrument, face amount
 
 
 
 
 
 
2,700,000 
 
 
 
39,900,000 
250,000,000 
 
 
 
 
 
1,200,000 
1,000,000 
 
 
 
Interest rate
 
 
 
 
6.00% 
 
 
 
 
 
 
 
 
 
 
 
 
0.00% 
0.00% 
 
 
 
Line of credit facility, maximum borrowing capacity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
14,100,000 
11,000,000 
 
 
 
 
1,000,000 
Line of credit facility, interest rate at period end
 
 
 
 
 
 
 
 
 
 
 
 
5.32% 
5.32% 
 
 
 
 
 
 
5.80% 
5.80% 
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months
 
 
 
 
 
 
 
 
 
 
 
 
4,200,000 
3,300,000 
 
 
 
 
 
 
 
 
Debt instrument, term
 
 
 
 
 
 
 
 
 
 
8 years 
8 years 
 
 
 
7 years 
7 years 
 
 
 
 
 
Debt instrument, interest rate at period end
 
 
 
 
 
 
 
5.90% 
5.90% 
 
5.51% 
5.51% 
 
 
 
 
 
 
 
 
 
 
Cash on hand
$ 45,949,000 
$ 67,208,000 
$ 32,818,000 
$ 58,291,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Borrowings (Fair Value of Borrowings) (Details) (USD $)
Mar. 31, 2013
Dec. 31, 2012
Debt Instrument [Line Items]
 
 
Total borrowings
$ 465,879,000 
$ 466,059,000 
Fair Value, Inputs, Level 2 [Member] |
Senior Secured Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Debt instrument, fair value
483,800,000 
488,300,000 
Subsidiary, Libbey Glass [Member] |
Senior Secured Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Total borrowings
$ 450,000,000 
$ 450,000,000 
Restructuring Charges (Narrative) (Details) (USD $)
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring charges
$ 4,314,000 
$ 0 
Americas [Member] |
Discontinuation of Certain Glassware Production in North America and Reduction of Capacity of Shreveport Facility [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring charges
4,880,000 
 
Americas [Member] |
Employee Termination Cost and Other [Member] |
Discontinuation of Certain Glassware Production in North America and Reduction of Capacity of Shreveport Facility [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring charges
2,322,000 
 
Scenario, Forecast [Member] |
Minimum [Member] |
Americas [Member] |
Discontinuation of Certain Glassware Production in North America and Reduction of Capacity of Shreveport Facility [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring charges
8,000,000 
 
Scenario, Forecast [Member] |
Maximum [Member] |
Americas [Member] |
Discontinuation of Certain Glassware Production in North America and Reduction of Capacity of Shreveport Facility [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring charges
10,000,000 
 
Expected pre-tax charge to result in cash expenditures
5,000,000 
 
Scenario, Forecast [Member] |
Maximum [Member] |
Americas [Member] |
Asset Impairment Charges [Member] |
Discontinuation of Certain Glassware Production in North America and Reduction of Capacity of Shreveport Facility [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Fixed asset impairment charges
4,500,000 
 
Scenario, Forecast [Member] |
Maximum [Member] |
Americas [Member] |
Employee Termination Cost and Other [Member] |
Discontinuation of Certain Glassware Production in North America and Reduction of Capacity of Shreveport Facility [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Severance and other
2,500,000 
 
Scenario, Forecast [Member] |
Maximum [Member] |
Americas [Member] |
Production Transfer Expenses [Member] |
Discontinuation of Certain Glassware Production in North America and Reduction of Capacity of Shreveport Facility [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Production transfer expenses
$ 3,000,000 
 
Restructuring Charges (Summary of Pretax Charge) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring charges
$ 4,314 
$ 0 
Americas [Member] |
Discontinuation of Certain Glassware Production in North America and Reduction of Capacity of Shreveport Facility [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring charges
4,880 
 
Americas [Member] |
Discontinuation of Certain Glassware Production in North America and Reduction of Capacity of Shreveport Facility [Member] |
Cost of Sales [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring charges
566 
 
Americas [Member] |
Discontinuation of Certain Glassware Production in North America and Reduction of Capacity of Shreveport Facility [Member] |
Special Charges (Income) [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring charges
4,314 
 
Americas [Member] |
Accelerated Depreciation [Member] |
Discontinuation of Certain Glassware Production in North America and Reduction of Capacity of Shreveport Facility [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring charges
566 
 
Americas [Member] |
Employee Termination Cost and Other [Member] |
Discontinuation of Certain Glassware Production in North America and Reduction of Capacity of Shreveport Facility [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring charges
2,322 
 
Americas [Member] |
Fixed Asset Write-down [Member] |
Discontinuation of Certain Glassware Production in North America and Reduction of Capacity of Shreveport Facility [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring charges
$ 1,992 
 
Restructuring Charges (Capacity Realignment Reserve Activity) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Restructuring Reserve [Roll Forward]
 
 
Reserve balance at January 1, 2013
$ 0 
 
Total charge to earnings
4,314 
Reserve balance at March 31, 2013
2,195 
 
Americas [Member] |
Discontinuation of Certain Glassware Production in North America and Reduction of Capacity of Shreveport Facility [Member]
 
 
Restructuring Reserve [Roll Forward]
 
 
Reserve balance at January 1, 2013
 
Total charge to earnings
4,880 
 
Cash (payments) receipts
(127)
 
Non-cash Utilization
(2,558)
 
Reserve balance at March 31, 2013
2,195 
 
Americas [Member] |
Accelerated Depreciation [Member] |
Discontinuation of Certain Glassware Production in North America and Reduction of Capacity of Shreveport Facility [Member]
 
 
Restructuring Reserve [Roll Forward]
 
 
Reserve balance at January 1, 2013
 
Total charge to earnings
566 
 
Cash (payments) receipts
 
Non-cash Utilization
(566)
 
Reserve balance at March 31, 2013
 
Americas [Member] |
Employee Termination Cost and Other [Member] |
Discontinuation of Certain Glassware Production in North America and Reduction of Capacity of Shreveport Facility [Member]
 
 
Restructuring Reserve [Roll Forward]
 
 
Reserve balance at January 1, 2013
 
Total charge to earnings
2,322 
 
Cash (payments) receipts
(127)
 
Non-cash Utilization
 
Reserve balance at March 31, 2013
2,195 
 
Americas [Member] |
Fixed Asset Write-down [Member] |
Discontinuation of Certain Glassware Production in North America and Reduction of Capacity of Shreveport Facility [Member]
 
 
Restructuring Reserve [Roll Forward]
 
 
Reserve balance at January 1, 2013
 
Total charge to earnings
1,992 
 
Cash (payments) receipts
 
Non-cash Utilization
(1,992)
 
Reserve balance at March 31, 2013
$ 0 
 
Income Taxes (Details) (USD $)
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Dec. 31, 2012
Income Tax Disclosure [Abstract]
 
 
 
Effective income tax rate, continuing operations
25.00% 
83.70% 
 
Gross unrecognized tax benefits, net of interest and penalties
$ 1,000,000 
 
$ 1,500,000 
Tax benefit recognized due to expiration of statute of limitations
500,000 
 
 
Total income tax payments, net of refunds
2,269,000 
1,493,000 
 
Less: credits or offsets
385,000 
608,000 
 
Cash paid, net
$ 1,884,000 
$ 885,000 
 
Pension and Non-pension Postretirement Benefits (Net Benefit Costs) (Details) (USD $)
3 Months Ended 12 Months Ended 3 Months Ended 3 Months Ended
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2012
Mar. 31, 2013
Defined Benefit Pension Plans and SERP [Member]
Mar. 31, 2012
Defined Benefit Pension Plans and SERP [Member]
Mar. 31, 2013
U.S. Plans [Member]
Mar. 31, 2012
U.S. Plans [Member]
Mar. 31, 2013
Non-U.S. Plans [Member]
Mar. 31, 2012
Non-U.S. Plans [Member]
Mar. 31, 2013
Non-Pension Postretirement Benefit Plans [Member]
Mar. 31, 2012
Non-Pension Postretirement Benefit Plans [Member]
Jan. 2, 2013
Non-Pension Postretirement Benefit Plans [Member]
Mar. 31, 2013
U.S. Plans [Member]
Mar. 31, 2012
U.S. Plans [Member]
Mar. 31, 2013
Non-U.S. Plans [Member]
Mar. 31, 2012
Non-U.S. Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service cost
 
 
 
 
 
$ 2,000,000 
$ 1,997,000 
$ 1,278,000 
$ 1,555,000 
$ 722,000 
$ 442,000 
$ 392,000 
$ 368,000 
 
$ 392,000 
$ 368,000 
$ 0 
$ 0 
Interest cost
 
 
 
 
 
4,737,000 
5,275,000 
3,481,000 
4,019,000 
1,256,000 
1,256,000 
724,000 
883,000 
 
701,000 
857,000 
23,000 
26,000 
Expected return on plan assets
 
 
 
 
 
(6,080,000)
(5,092,000)
(5,599,000)
(4,485,000)
(481,000)
(607,000)
 
 
 
 
 
 
 
Amortization of unrecognized:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Prior service cost
 
 
 
 
 
355,000 
587,000 
293,000 
521,000 
62,000 
66,000 
34,000 
105,000 
 
34,000 
105,000 
Loss / (gain)
 
 
 
 
 
2,325,000 
1,936,000 
2,087,000 
1,801,000 
238,000 
135,000 
290,000 
229,000 
 
291,000 
229,000 
(1,000)
Settlement charge
 
 
 
 
 
420,000 
420,000 
 
 
 
 
 
 
 
Pension expense or non-pension postretirement benefit expense
 
 
 
 
 
3,337,000 
5,123,000 
1,540,000 
3,831,000 
1,797,000 
1,292,000 
1,440,000 
1,585,000 
 
1,418,000 
1,559,000 
22,000 
26,000 
Settlement charge
4,431,000 
(125,000)
4,306,000 
 
400,000 
 
 
 
 
 
 
 
 
 
 
 
Defined Benefit Plan, Contributions [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Employer contributions made to defined benefit plans
 
 
 
 
 
700,000 
 
 
 
 
 
1,000,000 
 
 
 
 
 
 
Estimated employer contributions to defined benefit plans in remainder of 2013
 
 
 
 
 
5,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
Estimated employer contributions to defined benefit plans in year 2013
 
 
 
 
 
 
 
 
 
 
 
4,700,000 
 
 
 
 
 
 
Retirees subject to health reimbursement arrangement, minimum age
 
 
 
 
 
 
 
 
 
 
 
 
 
65 years 
 
 
 
 
Life insurance benefit, maximum
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 10,000 
 
 
 
 
Net Income per Share of Common Stock (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Numerators for earnings per share:
 
 
Net income that is available to common shareholders
$ 1,989 
$ 641 
Denominator for basic earnings per share:
 
 
Weighted average shares outstanding
21,114,963 
20,769,415 
Denominator for diluted earnings per share:
 
 
Effect of stock options and restricted stock units
478,785 
414,942 
Adjusted weighted average shares and assumed conversions
21,593,748 
21,184,357 
Basic earnings per share
$ 0.09 
$ 0.03 
Diluted earnings per share
$ 0.09 
$ 0.03 
Derivatives (Narrative - Commodity Future Contracts) (Details) (Cash Flow Hedging [Member], Natural gas contracts [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Mar. 31, 2013
MMBTU
Mar. 31, 2012
Dec. 31, 2012
MMBTU
Derivative [Line Items]
 
 
 
Natural gas contracts, notional amounts (in millions of BTUs)
1,720,000 
 
2,400,000 
Derivative, additional cash paid on settlement of hedge
$ 0.2 
$ 1.5 
 
Cash flow hedge loss to be reclassified within 12 months
 
 
$ 0.8 
Minimum [Member]
 
 
 
Derivative [Line Items]
 
 
 
Forecast of anticipated requirements, percentage of forecast eligible for hedging
40.00% 
 
 
Maximum [Member]
 
 
 
Derivative [Line Items]
 
 
 
Forecast of anticipated requirements, percentage of forecast eligible for hedging
70.00% 
 
 
Forecast of commodity requirements, maximum length of time used
18 months 
 
 
Derivatives (Fair Value of Derivative Assets and Liabilities) (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2013
Dec. 31, 2012
Derivatives, Fair Value [Line Items]
 
 
Fair value, derivative asset
$ 1,085 
$ 339 
Fair value, derivative liability
58 
420 
Designated as Hedging Instrument [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value, derivative asset
793 
298 
Fair value, derivative liability
58 
420 
Not Designated as Hedging Instrument [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value, derivative asset
292 
41 
Interest rate agreements [Member] |
Designated as Hedging Instrument [Member] |
Derivative Asset [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value, derivative asset
298 
Interest rate agreements [Member] |
Designated as Hedging Instrument [Member] |
Other Long-Term Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value, derivative liability
58 
Natural gas contracts [Member] |
Designated as Hedging Instrument [Member] |
Derivative Asset [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value, derivative asset
793 
Natural gas contracts [Member] |
Designated as Hedging Instrument [Member] |
Derivative Liability, Current [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value, derivative liability
420 
Currency contracts [Member] |
Not Designated as Hedging Instrument [Member] |
Prepaid and Other Current Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value, derivative asset
$ 292 
$ 41 
Derivatives (Gain Loss on Interest Rate Swaps Included in Earnings) (Details) (Fair Value Hedging [Member], USD $)
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Designated as Hedging Instrument [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Related long-term debt
$ 134,000 
$ 406,000 
Net impact on Condensed Consolidated Statements of Operations
(222,000)
419,000 
Designated as Hedging Instrument [Member] |
Interest rate agreements [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Interest rate swap
(356,000)
13,000 
New Rate Agreement [Member] |
Senior Secured Notes [Member] |
Interest rate agreements [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Derivative, notional amount
$ 45,000,000 
 
Derivatives (Effective Portion of Derivative Gain Loss) (Details) (Designated as Hedging Instrument [Member], Cash Flow Hedging [Member], USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Effective portion of derivative gain (loss) recognized in other comprehensive income (loss)
$ 967 
$ (2,104)
Effective portion of derivative gain (loss) reclassified from accumulated other comprehensive loss into income
(246)
(1,460)
Natural gas contracts [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Effective portion of derivative gain (loss) recognized in other comprehensive income (loss)
967 
(2,104)
Natural gas contracts [Member] |
Cost of Sales [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Effective portion of derivative gain (loss) reclassified from accumulated other comprehensive loss into income
$ (246)
$ (1,460)
Derivatives (Gains and Losses for Derivatives that were Not Designated as Hedging Instruments) (Details)
3 Months Ended
Mar. 31, 2013
USD ($)
Mar. 31, 2012
USD ($)
Mar. 31, 2013
Other Income (Expense) [Member]
Currency contracts [Member]
USD ($)
Mar. 31, 2012
Other Income (Expense) [Member]
Currency contracts [Member]
USD ($)
Mar. 31, 2013
Not Designated as Hedging Instrument [Member]
Currency contracts [Member]
CAD ($)
Dec. 31, 2012
Not Designated as Hedging Instrument [Member]
Currency contracts [Member]
CAD ($)
Derivative [Line Items]
 
 
 
 
 
 
Derivative, notional amount
 
 
 
 
$ 11,700,000 
$ 14,800,000 
Gain and losses for derivatives not designated as hedging instruments
$ 251,000 
$ (162,000)
$ 251,000 
$ (162,000)
 
 
Comprehensive Income (Loss) (Schedule of AOCI) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Change in Accumulated Other Comprehensive Loss [Roll Forward]
 
Balance on December 31, 2012
$ (141,040)
Other comprehensive income (loss)
(1,958)
Currency impact
(352)
Amounts reclassified from accumulated other comprehensive income (loss):
 
Amortization of actuarial loss (1)
2,600 1
Amortization of prior service cost (1)
369 1
Amortization of transition obligation (1)
21 1
Cost of sales
246 
Current-period other comprehensive income (loss)
926 
Tax effect
(135)
Balance on March 31, 2013
(140,249)
Foreign Currency Translation [Member]
 
Change in Accumulated Other Comprehensive Loss [Roll Forward]
 
Balance on December 31, 2012
(1,641)
Other comprehensive income (loss)
(2,925)
Amounts reclassified from accumulated other comprehensive income (loss):
 
Current-period other comprehensive income (loss)
(2,925)
Tax effect
Balance on March 31, 2013
(4,566)
Derivative Instruments [Member]
 
Change in Accumulated Other Comprehensive Loss [Roll Forward]
 
Balance on December 31, 2012
489 
Other comprehensive income (loss)
967 
Amounts reclassified from accumulated other comprehensive income (loss):
 
Cost of sales
246 
Current-period other comprehensive income (loss)
1,213 
Tax effect
(168)
Balance on March 31, 2013
1,534 
Pension and Other Postretirement Benefits [Member]
 
Change in Accumulated Other Comprehensive Loss [Roll Forward]
 
Balance on December 31, 2012
(139,888)
Other comprehensive income (loss)
Currency impact
(352)
Amounts reclassified from accumulated other comprehensive income (loss):
 
Amortization of actuarial loss (1)
2,600 1
Amortization of prior service cost (1)
369 1
Amortization of transition obligation (1)
21 1
Current-period other comprehensive income (loss)
2,638 
Tax effect
33 
Balance on March 31, 2013
$ (137,217)
Condensed Consolidated Guarantor Financial Statements (Narrative) (Details)
Mar. 31, 2013
Libbey Glass (Issuer) [Member]
 
Consolidating Guarantor Non-Guarantor Financials [Line Items]
 
Subsidiary, ownership percentage
100.00% 
Subsidiary Guarantors [Member]
 
Consolidating Guarantor Non-Guarantor Financials [Line Items]
 
Subsidiary, ownership percentage
100.00% 
Condensed Consolidated Guarantor Financial Statements (Statements of Comprehensive Income) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2012
Consolidating Guarantor Non-Guarantor Financials [Line Items]
 
 
 
 
 
 
Net sales
$ 183,476 
$ 219,061 
$ 209,150 
$ 209,247 
$ 187,829 
$ 825,287 
Freight billed to customers
752 
 
 
 
708 
 
Total revenues
184,228 
 
 
 
188,537 
 
Cost of sales
141,996 
 
 
 
145,481 
 
Gross profit
42,232 
 
 
 
43,056 
 
Selling, general and administrative expenses
26,397 
 
 
 
28,126 
 
Special charges
4,314 
 
 
 
 
Income from operations
11,521 
 
 
 
14,930 
 
Other income (expense)
(435)
 
 
 
(591)
 
Earnings before interest and income taxes
11,086 
 
 
 
14,339 
 
Interest expense
8,435 
8,642 
8,720 
9,957 
10,408 
37,727 
Income before income taxes
2,651 
 
 
 
3,931 
 
Provision for income taxes
662 
3,366 
546 
(1,493)
3,290 
5,709 
Net income (loss)
1,989 
 
 
 
641 
 
Equity in net income (loss) of subsidiaries
 
 
 
 
Net income
1,989 
1,607 
14,861 
(10,143)
641 
6,966 
Comprehensive income (loss)
2,780 
 
 
 
5,753 
 
Libbey Inc. (Parent) [Member]
 
 
 
 
 
 
Consolidating Guarantor Non-Guarantor Financials [Line Items]
 
 
 
 
 
 
Net sales
 
 
 
 
Freight billed to customers
 
 
 
 
Total revenues
 
 
 
 
Cost of sales
 
 
 
 
Gross profit
 
 
 
 
Selling, general and administrative expenses
 
 
 
 
Special charges
 
 
 
 
Income from operations
 
 
 
 
Other income (expense)
 
 
 
 
Earnings before interest and income taxes
 
 
 
 
Interest expense
 
 
 
 
Income before income taxes
 
 
 
 
Provision for income taxes
 
 
 
 
Net income (loss)
 
 
 
 
Equity in net income (loss) of subsidiaries
1,989 
 
 
 
641 
 
Net income
1,989 
 
 
 
641 
 
Comprehensive income (loss)
2,780 
 
 
 
5,753 
 
Libbey Glass (Issuer) [Member]
 
 
 
 
 
 
Consolidating Guarantor Non-Guarantor Financials [Line Items]
 
 
 
 
 
 
Net sales
86,930 
 
 
 
93,480 
 
Freight billed to customers
99 
 
 
 
166 
 
Total revenues
87,029 
 
 
 
93,646 
 
Cost of sales
62,600 
 
 
 
74,311 
 
Gross profit
24,429 
 
 
 
19,335 
 
Selling, general and administrative expenses
15,057 
 
 
 
17,942 
 
Special charges
4,314 
 
 
 
 
Income from operations
5,058 
 
 
 
1,393 
 
Other income (expense)
(1)
 
 
 
297 
 
Earnings before interest and income taxes
5,057 
 
 
 
1,690 
 
Interest expense
6,420 
 
 
 
8,193 
 
Income before income taxes
(1,363)
 
 
 
(6,503)
 
Provision for income taxes
(819)
 
 
 
225 
 
Net income (loss)
(544)
 
 
 
(6,728)
 
Equity in net income (loss) of subsidiaries
2,533 
 
 
 
7,369 
 
Net income
1,989 
 
 
 
641 
 
Comprehensive income (loss)
2,780 
 
 
 
5,753 
 
Subsidiary Guarantors [Member]
 
 
 
 
 
 
Consolidating Guarantor Non-Guarantor Financials [Line Items]
 
 
 
 
 
 
Net sales
18,360 
 
 
 
17,445 
 
Freight billed to customers
234 
 
 
 
183 
 
Total revenues
18,594 
 
 
 
17,628 
 
Cost of sales
14,360 
 
 
 
13,013 
 
Gross profit
4,234 
 
 
 
4,615 
 
Selling, general and administrative expenses
2,669 
 
 
 
1,516 
 
Special charges
 
 
 
 
Income from operations
1,565 
 
 
 
3,099 
 
Other income (expense)
(9)
 
 
 
12 
 
Earnings before interest and income taxes
1,556 
 
 
 
3,111 
 
Interest expense
 
 
 
 
Income before income taxes
1,556 
 
 
 
3,111 
 
Provision for income taxes
 
 
 
 
Net income (loss)
1,554 
 
 
 
3,111 
 
Equity in net income (loss) of subsidiaries
 
 
 
 
Net income
1,554 
 
 
 
3,111 
 
Comprehensive income (loss)
1,696 
 
 
 
3,235 
 
Non-Guarantor Subsidiaries [Member]
 
 
 
 
 
 
Consolidating Guarantor Non-Guarantor Financials [Line Items]
 
 
 
 
 
 
Net sales
89,379 
 
 
 
93,159 
 
Freight billed to customers
419 
 
 
 
359 
 
Total revenues
89,798 
 
 
 
93,518 
 
Cost of sales
76,229 
 
 
 
74,412 
 
Gross profit
13,569 
 
 
 
19,106 
 
Selling, general and administrative expenses
8,671 
 
 
 
8,668 
 
Special charges
 
 
 
 
Income from operations
4,898 
 
 
 
10,438 
 
Other income (expense)
(425)
 
 
 
(900)
 
Earnings before interest and income taxes
4,473 
 
 
 
9,538 
 
Interest expense
2,015 
 
 
 
2,215 
 
Income before income taxes
2,458 
 
 
 
7,323 
 
Provision for income taxes
1,479 
 
 
 
3,065 
 
Net income (loss)
979 
 
 
 
4,258 
 
Equity in net income (loss) of subsidiaries
 
 
 
 
Net income
979 
 
 
 
4,258 
 
Comprehensive income (loss)
(1,552)
 
 
 
7,044 
 
Eliminations [Member]
 
 
 
 
 
 
Consolidating Guarantor Non-Guarantor Financials [Line Items]
 
 
 
 
 
 
Net sales
(11,193)
 
 
 
(16,255)
 
Freight billed to customers
 
 
 
 
Total revenues
(11,193)
 
 
 
(16,255)
 
Cost of sales
(11,193)
 
 
 
(16,255)
 
Gross profit
 
 
 
 
Selling, general and administrative expenses
 
 
 
 
Special charges
 
 
 
 
Income from operations
 
 
 
 
Other income (expense)
 
 
 
 
Earnings before interest and income taxes
 
 
 
 
Interest expense
 
 
 
 
Income before income taxes
 
 
 
 
Provision for income taxes
 
 
 
 
Net income (loss)
 
 
 
 
Equity in net income (loss) of subsidiaries
(4,522)
 
 
 
(8,010)
 
Net income
(4,522)
 
 
 
(8,010)
 
Comprehensive income (loss)
$ (2,924)
 
 
 
$ (16,032)
 
Condensed Consolidated Guarantor Financial Statements (Balance Sheets) (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2013
Dec. 31, 2012
Mar. 31, 2012
Dec. 31, 2011
Consolidating Guarantor Non-Guarantor Financials [Line Items]
 
 
 
 
Cash and cash equivalents
$ 45,949 
$ 67,208 
$ 32,818 
$ 58,291 
Accounts receivable - net
86,264 
80,850 
 
 
Inventories - net
167,374 
157,549 
 
 
Other current assets
16,834 
12,997 
 
 
Total current assets
316,421 
318,604 
 
 
Other non-current assets
36,421 
38,624 
 
 
Investments in and advances to subsidiaries
 
 
Goodwill and purchased intangible assets - net
187,324 
186,794 
 
 
Total other assets
223,745 
225,418 
 
 
Property, plant and equipment - net
253,009 
258,154 
 
 
Total assets
793,175 
802,176 
 
 
Accounts payable
57,259 
65,712 
 
 
Accrued and other current liabilities
90,676 
95,535 
 
 
Notes payable and long-term debt due within one year
14,031 
4,583 
 
 
Total current liabilities
161,966 
165,830 
 
 
Long-term debt
452,122 
461,884 
 
 
Other long-term liabilities
150,876 
149,986 
 
 
Total liabilities
764,964 
777,700 
 
 
Total shareholders' equity (deficit)
28,211 
24,476 
 
 
Total liabilities and shareholders' equity
793,175 
802,176 
 
 
Libbey Inc. (Parent) [Member]
 
 
 
 
Consolidating Guarantor Non-Guarantor Financials [Line Items]
 
 
 
 
Cash and cash equivalents
Accounts receivable - net
 
 
Inventories - net
 
 
Other current assets
 
 
Total current assets
 
 
Other non-current assets
 
 
Investments in and advances to subsidiaries
28,211 
24,476 
 
 
Goodwill and purchased intangible assets - net
 
 
Total other assets
28,211 
24,476 
 
 
Property, plant and equipment - net
 
 
Total assets
28,211 
24,476 
 
 
Accounts payable
 
 
Accrued and other current liabilities
 
 
Notes payable and long-term debt due within one year
 
 
Total current liabilities
 
 
Long-term debt
 
 
Other long-term liabilities
 
 
Total liabilities
 
 
Total shareholders' equity (deficit)
28,211 
24,476 
 
 
Total liabilities and shareholders' equity
28,211 
24,476 
 
 
Libbey Glass (Issuer) [Member]
 
 
 
 
Consolidating Guarantor Non-Guarantor Financials [Line Items]
 
 
 
 
Cash and cash equivalents
29,134 
43,558 
9,892 
39,249 
Accounts receivable - net
32,082 
33,987 
 
 
Inventories - net
61,300 
52,627 
 
 
Other current assets
19,107 
17,931 
 
 
Total current assets
141,623 
148,103 
 
 
Other non-current assets
19,889 
22,373 
 
 
Investments in and advances to subsidiaries
394,758 
384,414 
 
 
Goodwill and purchased intangible assets - net
27,757 
26,833 
 
 
Total other assets
442,404 
433,620 
 
 
Property, plant and equipment - net
68,698 
72,780 
 
 
Total assets
652,725 
654,503 
 
 
Accounts payable
11,990 
15,339 
 
 
Accrued and other current liabilities
60,435 
63,674 
 
 
Notes payable and long-term debt due within one year
224 
221 
 
 
Total current liabilities
72,649 
79,234 
 
 
Long-term debt
450,898 
451,090 
 
 
Other long-term liabilities
93,302 
94,434 
 
 
Total liabilities
616,849 
624,758 
 
 
Total shareholders' equity (deficit)
35,876 
29,745 
 
 
Total liabilities and shareholders' equity
652,725 
654,503 
 
 
Subsidiary Guarantors [Member]
 
 
 
 
Consolidating Guarantor Non-Guarantor Financials [Line Items]
 
 
 
 
Cash and cash equivalents
93 
70 
157 
155 
Accounts receivable - net
5,823 
3,560 
 
 
Inventories - net
19,473 
18,477 
 
 
Other current assets
736 
810 
 
 
Total current assets
26,125 
22,917 
 
 
Other non-current assets
349 
54 
 
 
Investments in and advances to subsidiaries
191,367 
194,316 
 
 
Goodwill and purchased intangible assets - net
12,347 
12,347 
 
 
Total other assets
204,063 
206,717 
 
 
Property, plant and equipment - net
282 
298 
 
 
Total assets
230,470 
229,932 
 
 
Accounts payable
1,578 
2,854 
 
 
Accrued and other current liabilities
20,485 
20,194 
 
 
Notes payable and long-term debt due within one year
 
 
Total current liabilities
22,063 
23,048 
 
 
Long-term debt
 
 
Other long-term liabilities
9,517 
9,691 
 
 
Total liabilities
31,580 
32,739 
 
 
Total shareholders' equity (deficit)
198,890 
197,193 
 
 
Total liabilities and shareholders' equity
230,470 
229,932 
 
 
Non-Guarantor Subsidiaries [Member]
 
 
 
 
Consolidating Guarantor Non-Guarantor Financials [Line Items]
 
 
 
 
Cash and cash equivalents
16,722 
23,580 
22,769 
18,887 
Accounts receivable - net
48,359 
43,303 
 
 
Inventories - net
86,601 
86,445 
 
 
Other current assets
14,321 
10,446 
 
 
Total current assets
166,003 
163,774 
 
 
Other non-current assets
20,373 
20,387 
 
 
Investments in and advances to subsidiaries
(40,824)
(35,962)
 
 
Goodwill and purchased intangible assets - net
147,220 
147,614 
 
 
Total other assets
126,769 
132,039 
 
 
Property, plant and equipment - net
184,029 
185,076 
 
 
Total assets
476,801 
480,889 
 
 
Accounts payable
43,691 
47,519 
 
 
Accrued and other current liabilities
27,085 
27,857 
 
 
Notes payable and long-term debt due within one year
13,807 
4,362 
 
 
Total current liabilities
84,583 
79,738 
 
 
Long-term debt
1,224 
10,794 
 
 
Other long-term liabilities
52,247 
50,051 
 
 
Total liabilities
138,054 
140,583 
 
 
Total shareholders' equity (deficit)
338,747 
340,306 
 
 
Total liabilities and shareholders' equity
476,801 
480,889 
 
 
Eliminations [Member]
 
 
 
 
Consolidating Guarantor Non-Guarantor Financials [Line Items]
 
 
 
 
Cash and cash equivalents
Accounts receivable - net
 
 
Inventories - net
 
 
Other current assets
(17,330)
(16,190)
 
 
Total current assets
(17,330)
(16,190)
 
 
Other non-current assets
(4,190)
(4,190)
 
 
Investments in and advances to subsidiaries
(573,512)
(567,244)
 
 
Goodwill and purchased intangible assets - net
 
 
Total other assets
(577,702)
(571,434)
 
 
Property, plant and equipment - net
 
 
Total assets
(595,032)
(587,624)
 
 
Accounts payable
 
 
Accrued and other current liabilities
(17,329)
(16,190)
 
 
Notes payable and long-term debt due within one year
 
 
Total current liabilities
(17,329)
(16,190)
 
 
Long-term debt
 
 
Other long-term liabilities
(4,190)
(4,190)
 
 
Total liabilities
(21,519)
(20,380)
 
 
Total shareholders' equity (deficit)
(573,513)
(567,244)
 
 
Total liabilities and shareholders' equity
$ (595,032)
$ (587,624)
 
 
Condensed Consolidated Guarantor Financial Statements (Cash Flow Statements) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Dec. 31, 2012
Consolidating Guarantor Non-Guarantor Financials [Line Items]
 
 
 
Net income (loss)
$ 1,989 
$ 641 
$ 6,966 
Depreciation and amortization
10,774 
10,536 
41,471 
Other operating activities
(25,443)
(30,275)
 
Net cash provided by (used in) operating activities
(12,680)
(19,098)
 
Additions to property, plant and equipment
(8,882)
(6,446)
 
Other investing activities
180 
 
Net cash provided by (used in) investing activities
(8,878)
(6,266)
 
Net borrowings (repayments)
(59)
(394)
 
Other financing activities
537 
28 
 
Net cash provided by (used in) financing activities
478 
(366)
 
Exchange effect on cash
(179)
257 
 
Increase (decrease) in cash
(21,259)
(25,473)
 
Cash at beginning of period
67,208 
58,291 
58,291 
Cash at end of period
45,949 
32,818 
67,208 
Libbey Inc. (Parent) [Member]
 
 
 
Consolidating Guarantor Non-Guarantor Financials [Line Items]
 
 
 
Net income (loss)
1,989 
641 
 
Depreciation and amortization
 
Other operating activities
(1,989)
(641)
 
Net cash provided by (used in) operating activities
 
Additions to property, plant and equipment
 
Other investing activities
 
Net cash provided by (used in) investing activities
 
Net borrowings (repayments)
 
Other financing activities
 
Net cash provided by (used in) financing activities
 
Exchange effect on cash
 
Increase (decrease) in cash
 
Cash at beginning of period
Cash at end of period
 
Libbey Glass (Issuer) [Member]
 
 
 
Consolidating Guarantor Non-Guarantor Financials [Line Items]
 
 
 
Net income (loss)
1,989 
641 
 
Depreciation and amortization
4,114 
3,538 
 
Other operating activities
(19,007)
(30,332)
 
Net cash provided by (used in) operating activities
(12,904)
(26,153)
 
Additions to property, plant and equipment
(2,004)
(3,181)
 
Other investing activities
 
Net cash provided by (used in) investing activities
(2,003)
(3,181)
 
Net borrowings (repayments)
(54)
(51)
 
Other financing activities
537 
28 
 
Net cash provided by (used in) financing activities
483 
(23)
 
Exchange effect on cash
 
Increase (decrease) in cash
(14,424)
(29,357)
 
Cash at beginning of period
43,558 
39,249 
39,249 
Cash at end of period
29,134 
9,892 
 
Subsidiary Guarantors [Member]
 
 
 
Consolidating Guarantor Non-Guarantor Financials [Line Items]
 
 
 
Net income (loss)
1,554 
3,111 
 
Depreciation and amortization
17 
19 
 
Other operating activities
(1,548)
(3,128)
 
Net cash provided by (used in) operating activities
23 
 
Additions to property, plant and equipment
 
Other investing activities
 
Net cash provided by (used in) investing activities
 
Net borrowings (repayments)
 
Other financing activities
 
Net cash provided by (used in) financing activities
 
Exchange effect on cash
 
Increase (decrease) in cash
23 
 
Cash at beginning of period
70 
155 
155 
Cash at end of period
93 
157 
 
Non-Guarantor Subsidiaries [Member]
 
 
 
Consolidating Guarantor Non-Guarantor Financials [Line Items]
 
 
 
Net income (loss)
979 
4,258 
 
Depreciation and amortization
6,643 
6,979 
 
Other operating activities
(7,421)
(4,184)
 
Net cash provided by (used in) operating activities
201 
7,053 
 
Additions to property, plant and equipment
(6,878)
(3,265)
 
Other investing activities
180 
 
Net cash provided by (used in) investing activities
(6,875)
(3,085)
 
Net borrowings (repayments)
(5)
(343)
 
Other financing activities
 
Net cash provided by (used in) financing activities
(5)
(343)
 
Exchange effect on cash
(179)
257 
 
Increase (decrease) in cash
(6,858)
3,882 
 
Cash at beginning of period
23,580 
18,887 
18,887 
Cash at end of period
16,722 
22,769 
 
Eliminations [Member]
 
 
 
Consolidating Guarantor Non-Guarantor Financials [Line Items]
 
 
 
Net income (loss)
(4,522)
(8,010)
 
Depreciation and amortization
 
Other operating activities
4,522 
8,010 
 
Net cash provided by (used in) operating activities
 
Additions to property, plant and equipment
 
Other investing activities
 
Net cash provided by (used in) investing activities
 
Net borrowings (repayments)
 
Other financing activities
 
Net cash provided by (used in) financing activities
 
Exchange effect on cash
 
Increase (decrease) in cash
 
Cash at beginning of period
Cash at end of period
$ 0 
$ 0 
 
Segments (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Mar. 31, 2013
segment
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2012
Segment Reporting Information [Line Items]
 
 
 
 
 
 
Number of reportable segments
 
 
 
 
 
Net Sales:
 
 
 
 
 
 
Net sales
$ 183,476 
$ 219,061 
$ 209,150 
$ 209,247 
$ 187,829 
$ 825,287 
Segment EBIT:
 
 
 
 
 
 
Segment EBIT
20,466 
24,101 
34,202 
36,824 
20,219 
115,346 
Reconciliation of Segment EBIT to Net Income:
 
 
 
 
 
 
Retained corporate costs
(4,500)
(4,816)
(6,289)
(7,428)
(5,880)
(24,413)
Restructuring charges (note 5)
(4,880)
 
 
 
 
Severance Costs
 
(1,239)
(3,911)
(5,150)
Gain (loss) on redemption of debt
 
(31,075)
(31,075)
Pension curtailment and settlement
 
(4,431)
125 
(4,306)
Interest expense
(8,435)
(8,642)
(8,720)
(9,957)
(10,408)
(37,727)
Income taxes
(662)
(3,366)
(546)
1,493 
(3,290)
(5,709)
Net income
1,989 
1,607 
14,861 
(10,143)
641 
6,966 
Depreciation & Amortization:
 
 
 
 
 
 
Depreciation and amortization
10,774 
10,574 
10,073 
10,288 
10,536 
41,471 
Capital Expenditures:
 
 
 
 
 
 
Capital expenditures
8,882 
15,476 
5,412 
5,386 
6,446 
32,720 
Segment Assets(1):
 
 
 
 
 
 
Segment assets
253,638 1
238,399 1
 
 
 
238,399 1
Americas [Member]
 
 
 
 
 
 
Net Sales:
 
 
 
 
 
 
Net sales
123,535 
156,306 
146,169 
148,584 
129,675 
580,734 
Segment EBIT:
 
 
 
 
 
 
Segment EBIT
18,152 
22,125 
27,020 
31,014 
15,674 
95,833 
Depreciation & Amortization:
 
 
 
 
 
 
Depreciation and amortization
6,528 
6,413 
6,045 
6,021 
6,182 
24,661 
Capital Expenditures:
 
 
 
 
 
 
Capital expenditures
6,875 
11,759 
3,839 
3,259 
5,164 
24,021 
Segment Assets(1):
 
 
 
 
 
 
Segment assets
160,827 1
150,923 1
 
 
 
150,923 1
EMEA [Member]
 
 
 
 
 
 
Net Sales:
 
 
 
 
 
 
Net sales
34,242 
35,809 
34,454 
33,723 
30,792 
134,778 
Segment EBIT:
 
 
 
 
 
 
Segment EBIT
(1,483)
(2,240)
1,804 
302 
(580)
(714)
Depreciation & Amortization:
 
 
 
 
 
 
Depreciation and amortization
2,486 
2,357 
2,375 
2,466 
2,548 
9,746 
Capital Expenditures:
 
 
 
 
 
 
Capital expenditures
1,296 
2,499 
942 
1,301 
717 
5,459 
Segment Assets(1):
 
 
 
 
 
 
Segment assets
48,292 1
49,981 1
 
 
 
49,981 1
Other [Member]
 
 
 
 
 
 
Net Sales:
 
 
 
 
 
 
Net sales
25,699 
26,946 
28,527 
26,940 
27,362 
109,775 
Segment EBIT:
 
 
 
 
 
 
Segment EBIT
3,797 
4,216 
5,378 
5,508 
5,125 
20,227 
Depreciation & Amortization:
 
 
 
 
 
 
Depreciation and amortization
1,383 
1,661 
1,325 
1,414 
1,417 
5,817 
Capital Expenditures:
 
 
 
 
 
 
Capital expenditures
335 
1,021 
152 
510 
513 
2,196 
Segment Assets(1):
 
 
 
 
 
 
Segment assets
44,519 1
37,495 1
 
 
 
37,495 1
Corporate [Member]
 
 
 
 
 
 
Depreciation & Amortization:
 
 
 
 
 
 
Depreciation and amortization
377 
143 
328 
387 
389 
1,247 
Capital Expenditures:
 
 
 
 
 
 
Capital expenditures
$ 376 
$ 197 
$ 479 
$ 316 
$ 52 
$ 1,044 
Fair Value (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2013
Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Net derivative asset (liability)
$ 1,027 
$ (81)
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Net derivative asset (liability)
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Net derivative asset (liability)
1,027 
(81)
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Net derivative asset (liability)
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Net derivative asset (liability)
1,027 
(81)
Commodity futures natural gas contracts [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Net derivative asset (liability)
Commodity futures natural gas contracts [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Net derivative asset (liability)
793 
(420)
Commodity futures natural gas contracts [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Net derivative asset (liability)
Commodity futures natural gas contracts [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Net derivative asset (liability)
793 
(420)
Currency contracts [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Net derivative asset (liability)
Currency contracts [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Net derivative asset (liability)
292 
41 
Currency contracts [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Net derivative asset (liability)
Currency contracts [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Net derivative asset (liability)
292 
41 
Interest rate agreements [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Net derivative asset (liability)
Interest rate agreements [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Net derivative asset (liability)
(58)
298 
Interest rate agreements [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Net derivative asset (liability)
Interest rate agreements [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Net derivative asset (liability)
$ (58)
$ 298 
Fair Value (Balance Sheet Location) (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2013
Dec. 31, 2012
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Net derivative asset (liability)
$ 1,027 
$ (81)
Prepaid and Other Current Assets [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Assets, fair value
1,085 
41 
Derivative asset [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Assets, fair value
298 
Derivative liability [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Liabilities, fair value
(420)
Other long-term liabilities [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Liabilities, fair value
$ (58)
$ 0 
Other Income (Expense) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Component of Other Income (Expense), Nonoperating [Line Items]
 
 
Other income (expense)
$ (435)
$ (591)
Gain (loss) on currency translation [Member]
 
 
Component of Other Income (Expense), Nonoperating [Line Items]
 
 
Other income (expense)
(283)
(969)
Hedge ineffectiveness [Member]
 
 
Component of Other Income (Expense), Nonoperating [Line Items]
 
 
Other income (expense)
(222)
419 
Other non-operating income (expense) [Member]
 
 
Component of Other Income (Expense), Nonoperating [Line Items]
 
 
Other income (expense)
$ 70 
$ (41)
Contingencies (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2013
Dec. 31, 2012
Commitments and Contingencies Disclosure [Abstract]
 
 
Contingency liability
$ 2,719 
$ 2,719