Document and Entity Information (USD $)

12 Months Ended

Dec. 31, 2017

Feb. 23, 2018

Jun. 30, 2017

Entity Information [Line Items]

Entity Registrant Name

LIBBEY INC

Entity Central Index Key

0000902274

Current Fiscal Year End Date

--12-31

Entity Filer Category

Accelerated Filer

Document Type

10-K

Document Period End Date

Dec. 31, 2017

Document Fiscal Year Focus

2017

Document Fiscal Period Focus

FY

Amendment Flag

false

Entity Common Stock, Shares Outstanding

22,018,876

Entity Well-known Seasoned Issuer

No

Entity Voluntary Filers

No

Entity Current Reporting Status

Yes

Entity Public Float

$ 175,107,046

Consolidated Balance Sheets (USD $)

In Thousands, unless otherwise specified

Dec. 31, 2017

Dec. 31, 2016

ASSETS

Cash and cash equivalents

$ 24,696

$ 61,011

Accounts receivable — net

89,997

85,113

Inventories — net

187,886

170,009

Prepaid and other current assets

12,550

16,777

Total current assets

315,129

332,910

Pension asset

2,939

0

Purchased intangible assets — net

14,565

15,225

Goodwill

84,412

164,112

Deferred income taxes

24,892

40,016

Other assets

9,627

9,514

Property, plant and equipment — net

265,675

256,392

Total assets

717,239

818,169

LIABILITIES AND SHAREHOLDERS' EQUITY

Accounts payable

78,346

71,582

Salaries and wages

27,409

27,018

Accrued liabilities

43,223

41,807

Accrued income taxes

1,862

1,384

Pension liability (current portion)

2,185

2,461

Non-pension post-retirement benefits (current portion)

4,185

4,892

Derivative liability

697

1,928

Long-term debt due within one year

7,485

5,009

Total current liabilities

165,392

156,081

Long-term debt

376,905

402,831

Pension liability

43,555

43,934

Non-pension post-retirement benefits

49,758

55,373

Deferred income taxes

1,850

1,859

Other long-term liabilities

12,885

12,972

Total liabilities

650,345

673,050

Contingencies (note 17)

Shareholders’ equity:

Common stock, par value $.01 per share, 50,000,000 shares authorized, 22,018,010 shares issued in 2017 (21,864,541 shares issued in 2016)

220

219

Capital in excess of par value

333,011

329,722

Retained deficit

(161,165)

(59,625)

Accumulated other comprehensive loss

(105,172)

(125,197)

Total shareholders’ equity

66,894

145,119

Total liabilities and shareholders’ equity

$ 717,239

$ 818,169

Consolidated Balance Sheets Parentheticals (USD $)

Dec. 31, 2017

Dec. 31, 2016

Common stock, par value

$ 0.01

Common stock, shares authorized

50,000,000

Common stock, shares issued

22,018,010

21,864,541

Consolidated Statements of Operations (USD $)

In Thousands, except Share data, unless otherwise specified

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Net sales

$ 781,828

$ 793,420

$ 822,345

Freight billed to customers

3,328

2,790

2,885

Total revenues

785,156

796,210

825,230

Cost of sales

634,185

629,916

648,902

Gross profit

150,971

166,294

176,328

Selling, general and administrative expenses

124,926

120,984

132,607

Goodwill impairment

79,700

0

Income (loss) from operations

(53,655)

45,310

43,721

Other income (expense)

(3,515)

3,362

2,880

Earnings (loss) before interest and income taxes

(57,170)

48,672

46,601

Interest expense

20,400

20,888

18,484

Income (loss) before income taxes

(77,570)

27,784

28,117

Provision (benefit) for income taxes

15,798

17,711

(38,216)

Net income (loss)

$ (93,368)

$ 10,073

$ 66,333

Net income (loss) per share:

Basic

$ (4.24)

$ 0.46

$ 3.04

Diluted

$ (4.24)

$ 0.46

$ 2.99

Weighted average shares:

Basic

22,031,000

21,880,000

21,816,935

Diluted

22,030,672

22,049,000

22,159,000

Dividends declared per share

$ 0.47

$ 0.46

$ 0.44

Consolidated Statements of Comprehensive Income (Loss) (USD $)

In Thousands, unless otherwise specified

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Net income (loss)

$ (93,368)

$ 10,073

$ 66,333

Other comprehensive income (loss):

Pension and other post-retirement benefit adjustments, net of tax

7,514

(1,395)

33,201

Change in fair value of derivative instruments, net of tax

866

1,345

(1,235)

Foreign currency translation adjustments, net of tax

11,645

(4,915)

(13,751)

Other comprehensive income (loss), net of tax

20,025

(4,965)

18,215

Comprehensive income (loss)

$ (73,343)

$ 5,108

$ 84,548

Consolidated Statements of Shareholders' Equity (USD $)

In Thousands, except Share data, unless otherwise specified

Total

Common Stock

Treasury Stock

Capital in Excess of Par Value

Retained Deficit

Accumulated Other Comprehensive Loss

Balance, value at Dec. 31, 2014

$ 77,454

$ 218

$ (1,060)

$ 331,391

$ (114,648)

$ (138,447)

Balance, shares at Dec. 31, 2014

21,843,851

34,985

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Net income (loss)

66,333

Other comprehensive income (loss)

18,215

Income tax effect from share-based compensation arrangements

2,797

Stock compensation expense

5,873

Stock issued, value

(3,378)

(11,887)

(8,509)

Stock issued, shares

336,741

Stock withheld for employee taxes

(796)

Dividends

(9,597)

Purchase of treasury shares, value

(15,275)

Purchase of treasury shares, shares

412,473

Balance value at Dec. 31, 2015

148,382

218

(4,448)

330,756

(57,912)

(120,232)

Balance, shares at Dec. 31, 2015

21,843,851

110,717

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Net income (loss)

10,073

Other comprehensive income (loss)

(4,965)

Income tax effect from share-based compensation arrangements

(534)

Stock compensation expense

3,724

Stock issued, value

(1,404)

(1)

(6,448)

(3,329)

(1,716)

Stock issued, shares

20,690

222,009

Stock withheld for employee taxes

(895)

Dividends

(10,070)

Purchase of treasury shares, value

(2,000)

Purchase of treasury shares, shares

111,292

Balance value at Dec. 31, 2016

145,119

219

0

329,722

(59,625)

(125,197)

Balance, shares at Dec. 31, 2016

21,864,541

0

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Cumulative-effect adjustment for the adoption of ASU 2016-09

2,310

127

2,183

Net income (loss)

(93,368)

Other comprehensive income (loss)

20,025

Stock compensation expense

3,372

Stock issued, value

(418)

(1)

(417)

Stock issued, shares

153,469

Stock withheld for employee taxes

(627)

Dividends

(10,355)

Purchase of treasury shares, shares

0

Balance value at Dec. 31, 2017

$ 66,894

$ 220

$ 0

$ 333,011

$ (161,165)

$ (105,172)

Balance, shares at Dec. 31, 2017

22,018,010

0

Consolidated Statements of Cash Flows (USD $)

In Thousands, unless otherwise specified

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Operating activities:

Net income (loss)

$ (93,368)

$ 10,073

$ 66,333

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization

45,544

48,486

42,712

Goodwill impairment

79,700

0

Loss on asset sales and disposals

251

287

567

Change in accounts receivable

(2,698)

8,660

(6,312)

Change in inventories

(13,443)

5,979

(12,006)

Change in accounts payable

5,574

(481)

(3,466)

Accrued interest and amortization of discounts and finance fees

1,318

(1,086)

1,291

Pension & non-pension post-retirement benefits, net

1,680

(2,513)

18,865

Accrued liabilities & prepaid expenses

2,737

4,032

4,140

Income taxes

13,121

6,296

(45,003)

Share-based compensation expense

3,460

4,766

5,917

Other operating activities

1,432

(595)

(3,346)

Net cash provided by operating activities

45,308

83,904

69,692

Investing activities:

Additions to property, plant and equipment

(47,628)

(34,604)

(48,136)

Proceeds from asset sales and other

0

7

Net cash used in investing activities

(47,628)

(34,604)

(48,129)

Financing activities:

Borrowings on ABL credit facility

34,086

6,000

62,900

Repayments on ABL credit facility

(34,086)

(6,000)

(62,900)

Other repayments

(632)

(350)

(3,267)

Other borrowings

0

339

0

Repayments on Term Loan B

(24,400)

(4,400)

Stock options exercised

466

1,400

3,338

Taxes paid on distribution of equity awards

(627)

(895)

(796)

Dividends

(10,355)

(10,070)

(9,597)

Treasury shares purchased

0

(2,000)

(15,275)

Other financing activities

334

0

Net cash used in financing activities

(35,214)

(35,976)

(29,997)

Effect of exchange rate fluctuations on cash

1,219

(1,357)

(2,566)

Increase (decrease) in cash

(36,315)

11,967

(11,000)

Cash & cash equivalents at beginning of year

61,011

49,044

60,044

Cash & cash equivalents at end of year

24,696

61,011

49,044

Supplemental disclosure of cash flow information:

Cash paid during the year for interest, net of capitalized interest

18,638

21,553

16,545

Cash paid during the year for income taxes

$ 3,371

$ 7,559

$ 5,516

Description of the Business

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

Significant Accounting Policies

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

Revenue Recognition Revenue is recognized 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. We estimate returns, discounts and incentives at the time of sale based on the terms of the agreements, historical experience and forecasted sales. We continually evaluate the adequacy of these methods used to estimate returns, discounts and incentives. Taxes collected from customers are excluded from revenues and credited directly to obligations to the appropriate governmental agencies.

Cost of Sales Cost of sales includes cost to manufacture and/or purchase products, warehouse, shipping and delivery costs and other costs.

Cash and Cash Equivalents We consider all highly liquid investments purchased with an original or remaining maturity of less than three months at the date of purchase to be cash equivalents. Cash and cash equivalents are maintained with various financial institutions.

Accounts Receivable and Allowance for Doubtful Accounts We record trade receivables when revenue is recorded in accordance with our revenue recognition policy and relieve accounts receivable when payments are received from customers. The allowance for doubtful accounts is established through charges to the provision for bad debts. We regularly evaluate the adequacy of the allowance for doubtful accounts based on historical trends in collections and write-offs, our judgment as to the probability of collecting accounts and our evaluation of business risk. This evaluation is inherently subjective, as it requires estimates that are susceptible to revision as more information becomes available. Accounts are determined to be uncollectible when the debt is deemed to be worthless or only recoverable in part and are written off at that time through a charge against the allowance. Generally, we do not require collateral on our accounts receivable.

Inventory Valuation Inventories are valued at the lower of cost or market. The last-in, first-out (LIFO) method is used for our U.S. glass inventories, which represented 32.2 percent and 29.1 percent of our total inventories in 2017 and 2016, respectively. The remaining inventories are valued using either the first-in, first-out (FIFO) or average cost method. For those inventories valued on the LIFO method, the excess of FIFO cost over LIFO, was $13.4 million and $12.9 million in 2017 and 2016, respectively. Cost includes the cost of materials, direct labor, in-bound freight and the applicable share of manufacturing overhead.

Purchased Intangible Assets and Goodwill Financial Accounting Standards Board Accounting Standards Codification™ ("FASB ASC") Topic 350 - "Intangibles-Goodwill and other" ("FASB ASC 350") requires goodwill and purchased indefinite life intangible assets to be reviewed for impairment annually, or more frequently if impairment indicators arise. Intangible assets with lives restricted by contractual, legal or other means will continue to be amortized over their useful lives. As of October 1^st of each year, we update our separate impairment evaluations for both goodwill and indefinite life intangible assets. For further disclosure on goodwill and intangibles, see note 4.

Software We account for software in accordance with FASB ASC 350. Software represents the costs of internally developed and/or purchased software for internal use. Capitalized costs include software packages, installation and internal labor costs of employees devoted to the software development project. Costs incurred to modify existing software, providing significant enhancements and creating additional functionality are also capitalized. Once a project is complete, we estimate the useful life of the internal-use software, generally amortizing these costs over a five-year period.

Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally 3 to 14 years for equipment and furnishings and 10 to 40 years for buildings and improvements. Maintenance and repairs are expensed as incurred.

Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Measurement of an impairment loss for long-lived assets that we expect to hold and use is based on the fair value of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell. See note 5 for further disclosure.

Self-Insurance Reserves Self-insurance reserves reflect the estimated liability for group health and workers' compensation claims not covered by third-party insurance. We accrue estimated losses based on actuarial models and assumptions as well as our historical loss experience. Workers' compensation accruals are recorded at the estimated ultimate payout amounts based on individual case estimates. In addition, we record estimates of incurred-but-not-reported losses based on actuarial models.

Pension and Non-pension Post-retirement Benefits We account for pension and non-pension post-retirement benefits in accordance with FASB ASC Topic 715 - "Compensation-Retirement Benefits" ("FASB ASC 715"). FASB ASC 715 requires recognition of the over-funded or under-funded status of pension and other post-retirement benefit plans on the balance sheet. Under FASB ASC 715, gains and losses, prior service costs and credits and any remaining prior transaction amounts that have not yet been recognized through net periodic benefit cost are recognized in accumulated other comprehensive loss, net of tax effect where appropriate.

The U.S. pension plans cover most hourly U.S.-based employees (excluding new hires at Shreveport after December 15, 2008 and at Toledo after September 30, 2010) and those salaried U.S.-based employees hired before January 1, 2006. 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 Mexico and the Netherlands (until December 2015). In December 2015, we unwound direct ownership of our defined benefit pension plan in the Netherlands. For further discussion see note 8.

We also provide certain post-retirement healthcare and life insurance benefits covering substantially all U.S. and Canadian salaried employees hired before January 1, 2004 and a majority of our union hourly employees (excluding employees hired at Shreveport after December 15, 2008 and at Toledo after September 30, 2010). Employees are generally eligible for benefits upon reaching a certain age and completion of a specified number of years of creditable service. Benefits for most hourly retirees are determined by collective bargaining. Under a cross-indemnity agreement, Owens-Illinois, Inc. assumed liability for the non-pension post-retirement benefit of our retirees who had retired as of June 24, 1993. Therefore, the benefits related to these retirees are not included in our liability. For further discussion see note 9.

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. FASB ASC Topic 740, “Income Taxes,” requires that a valuation allowance be recorded when it is more likely than not that some portion or all of the deferred income tax assets will not be realized. Deferred income tax assets and liabilities are determined separately for each tax paying component in which we conduct our operations or otherwise incur taxable income or losses. For further discussion see note 7.

Derivatives We account for derivatives in accordance with FASB ASC Topic 815 "Derivatives and Hedging" ("FASB ASC 815"). We hold derivative financial instruments to hedge certain of our interest rate risks associated with long-term debt, commodity price risks associated with forecasted future natural gas requirements and foreign exchange rate risks associated with occasional transactions denominated in a currency other than the U.S. dollar. These derivatives (except for the foreign currency contracts and natural gas hedges in Mexico) 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 earnings. Cash flows from hedges of debt, short-term forward exchange contracts, currency swaps, interest rate swaps and natural gas contracts are classified as operating activities. See additional discussion at note 12.

Environmental In accordance with U.S. GAAP accounting standards, we recognize environmental clean-up liabilities on an undiscounted basis when loss is probable and can be reasonably estimated. The cost of the clean-up is estimated by financial and legal specialists based on current law. Such estimates are based primarily upon the estimated cost of investigation and remediation required, and the likelihood that, where applicable, other potentially responsible parties will not be able to fulfill their commitments at the sites where the Company may be jointly and severally liable.

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). For further detail see note 16.

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

Treasury Stock Treasury Stock purchases are recorded at cost. During 2017 we did not purchase treasury stock. During 2016 and 2015, we purchased 111,292 and 412,473 shares of treasury stock at an average price of $17.97 and $37.03, respectively. At December 31, 2017, we had 941,250 shares of common stock available for repurchase, as authorized by our Board of Directors.

Research and Development Research and development costs are charged to selling, general and administrative expense in the Consolidated Statements of Operations when incurred. Expenses for 2017, 2016 and 2015, respectively, were $3.0 million, $4.3 million and $6.1 million.

Advertising Costs We expense all advertising costs as incurred. The expenses for 2017, 2016 and 2015, respectively, were $5.3 million, $5.7 million and $10.7 million.

Computation of Income (Loss) Per Share of Common Stock Basic net income (loss) per share of common stock is computed using the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per share of common stock is computed using the weighted average number of shares of common stock outstanding and dilutive potential common share equivalents during the period.

Reclassifications Certain amounts in prior years' financial statements have been reclassified to conform to the presentation used in the year ended December 31, 2017, including the following:


•	On the Consolidated Statements of Cash Flows, certain activity was reclassified between operating and financing activities pursuant to adoption of Accounting Standards Update No. 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting," effective January 1, 2017.


•	In note 18 Segments, net sales and related costs for certain countries were reclassified between segments to align with changes in business unit responsibilities effective January 1, 2017.


•	In note 18 Segments, the derivative amount included in the Reconciliation of Segment EBIT to Net Income in the prior year financial statements has been included in Segment EBIT to conform to the current year presentation.

New Accounting Standards - Adopted

In March 2016, the FASB issued ASU 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting." Areas for simplification in this update involve several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for interim and annual reporting periods beginning after December 15, 2016. We adopted the new guidance on January 1, 2017, requiring us to recognize all excess tax benefits and tax deficiencies related to stock compensation as income tax expense or benefit in the income statement. Excess tax benefits will be recognized regardless of whether the benefit reduces taxes payable in the current period, subject to normal valuation allowance considerations. Previous guidance resulted in credits to equity for such tax benefits and delayed recognition until the tax benefits reduced income taxes payable. This provision in the standard was applied using a modified retrospective transition method by means of a cumulative-effect adjustment to equity as of the beginning of the year of adoption. As of January 1, 2017, we recorded a $2.3 million reduction to our retained deficit and an increase in deferred income tax assets. In addition, on the modified retrospective basis, we have elected to discontinue estimating forfeitures expected to occur when determining the amount of compensation expense to be recognized in each period, resulting in an immaterial impact to our retained deficit and capital in excess of par. We do not anticipate this change will have a material impact on our future results of operations. The presentation requirements for cash flows under the new standard were adopted on a retrospective basis, resulting in a reclassification on the Consolidated Statements of Cash Flows that increased cash provided by operating activities and increased cash used in financing activities for the years ended December 31, 2016 and 2015.

In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment." ASU 2017-04 simplifies the goodwill impairment testing by eliminating Step 2 from the goodwill impairment testing that is required should an impairment be discovered during its annual or interim assessment. ASU 2017-04 is effective for annual or interim impairment tests beginning after December 15, 2019, with early adoption permitted. We adopted this standard early in conjunction with our assessment performed at September 30, 2017; this is considered a change in accounting principle. This standard decreases the cost and complexity in applying current GAAP without significantly changing the usefulness of the information provided to users of our Consolidated Financial Statements.

New Accounting Standards - Not Yet Adopted

Each change to U.S. GAAP is established by the Financial Accounting Standards Board (FASB) in the form of an accounting standards update (ASU) to the FASB’s Accounting Standards Codification (ASC). We consider the applicability and impact of all ASUs. ASUs not listed below were assessed and either were determined to be not applicable or are expected to have minimal impact on the Company’s Consolidated Financial Statements.

In May 2014, the FASB issued ASU 2014-09, "Revenue From Contracts With Customers", as amended by ASU's 2015-14, 2016-08, 2016-10, 2016-11, 2016-12, 2016-20 and 2017-05, which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. ASU 2014-09 is based on the principle that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also requires disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to fulfill a contract. This update is effective for interim and annual reporting periods beginning after December 15, 2017. We plan to adopt this standard in the first quarter of 2018 using the modified retrospective method, whereby the cumulative effect of applying the standard is recognized at the date of initial application. We have completed our evaluation of significant contracts and the review of our current accounting policies and practices to identify potential differences that would result from applying the requirements of ASU 2014-09 to our revenue contracts. In addition, we have identified and implemented, appropriate changes to business processes, systems and controls to support recognition and disclosure under the new standard. While we are still assessing the enhanced disclosure requirements of the new guidance, we have determined that we will further disaggregate our revenue, presenting revenue by business channel. Based on the foregoing, we do not expect the adoption of ASU 2014-09 to have a material impact on the amount and timing of revenue recognized in our Consolidated Financial Statements.

In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)," which requires a lessee to recognize on the balance sheet, assets and liabilities for leases with lease terms of more than 12 months. Leases will be classified as either finance or operating leases, with classification affecting the pattern of expense recognition in the income statement. The new guidance also clarifies the definition of a lease and disclosure requirements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, with early application permitted. Lessees and lessors must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach does not require any transition accounting for leases that expired before the earliest comparative period presented. We are currently evaluating the impact of this guidance on our financial statements and related disclosures, including the increase in the assets and liabilities on our balance sheet. To facilitate this, we are utilizing a comprehensive approach to review our lease portfolio, have selected a system for managing our leases, and will perform the system implementation and update our controls accordingly in 2018. See note 15, Operating Leases, for our minimum lease commitments under non-cancellable operating leases.

In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." This standard introduces a new approach to estimating credit losses on certain types of financial instruments, including trade receivables, and modifies the impairment model for available-for-sale debt securities. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early application permitted. We are currently assessing the impact that this standard will have on our Consolidated Financial Statements.

In March 2017, the FASB issued ASU 2017-07, "Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost." ASU 2017-07 requires that only the service cost component of pension and post-retirement benefit costs be reported within income from operations. The other components of net benefit cost are required to be presented in the income statement outside of income from operations, if presented. In addition, this ASU allows only the service cost component to be eligible for capitalization when applicable. ASU 2017-07 is effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted. Presentation on the Consolidated Statements of Operations will be retrospective and any impact to capitalized costs will be prospectively adopted. We will adopt this standard in the first quarter of 2018 and expect the impact to be reclassifications of applicable costs and credits from income from operations to other income (expense).

In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities." ASU 2017-12 amends the hedge accounting rules to simplify the application of hedge accounting guidance and better portray the economic results of risk management activities in the financial statements. The guidance expands the ability to hedge nonfinancial and financial risk components, reduces complexity in fair value hedges of interest rate risk, eliminates the requirement to separately measure and report hedge ineffectiveness, and eases certain hedge effectiveness assessment requirements. ASU 2017-12 is effective for annual and interim reporting periods beginning after December 15, 2018, with early adoption permitted. We are currently evaluating the impact of this guidance, including transition elections and required disclosures, on our financial statements and the timing of adoption.

Balance Sheet Details

The following table provides detail of selected balance sheet items:



December 31, (dollars in thousands)	2017		2016
Accounts receivable:
Trade receivables	$	88,786	$	82,851
Other receivables	1,211		2,262
Total accounts receivable, less allowances of $9,051 and $7,832	$	89,997	$	85,113

Inventories:
Finished goods	$	170,774	$	152,261
Work in process	1,485		1,625
Raw materials	3,906		4,432
Repair parts	10,240		10,558
Operating supplies	1,481		1,133
Total inventories, less loss provisions of $10,308 and $9,484	$	187,886	$	170,009

Accrued liabilities:
Accrued incentives	$	19,728	$	19,771
Other accrued liabilities	23,495		22,036
Total accrued liabilities	$	43,223	$	41,807

The increase in finished goods inventory is due to higher inventory levels to fulfill customer orders, including maintaining an appropriate safety stock of items we source primarily from the Asia Pacific region and that, as a result, require longer lead times, and currency impacts (primarily the peso and euro).

Purchased Intangible Assets and Goodwill

Purchased Intangibles

Changes in purchased intangibles balances are as follows:



(dollars in thousands)	2017			2016
Beginning balance	$	15,225		$	16,364
Amortization	(1,073		)	(1,039		)
Foreign currency impact	413			(100		)
Ending balance	$	14,565		$	15,225

Purchased intangible assets are composed of the following:



December 31, (dollars in thousands)	2017		2016
Indefinite life intangible assets	$	12,120	$	11,888
Definite life intangible assets, net of accumulated amortization of $19,093 and $17,706	2,445		3,337
Total	$	14,565	$	15,225

Amortization expense for definite life intangible assets was $1.1 million, $1.0 million and $1.0 million for years 2017, 2016 and 2015, respectively.

Indefinite life intangible assets are composed of trade names and trademarks that have an indefinite life and are therefore individually tested for impairment on an annual basis, or more frequently in certain circumstances where impairment indicators arise, in accordance with FASB ASC 350. Our measurement date for impairment testing is October 1^st of each year. When performing our test for impairment of individual indefinite life intangible assets, we use a relief from royalty method to determine the fair market value that is compared to the carrying value of the indefinite life intangible asset. The inputs used for this analysis are considered Level 3 inputs in the fair value hierarchy. See note 14 for further discussion of the fair value hierarchy. Our October 1^st review for 2017 and 2016 did not indicate impairment of our indefinite life intangible assets.

The remaining definite life intangible assets at December 31, 2017 consist of customer relationships that are amortized over a period ranging from 13 to 20 years. The weighted average remaining life on the definite life intangible assets is 2.4 years at December 31, 2017.

Future estimated amortization expense of definite life intangible assets is as follows (dollars in thousands):



2018	2019	2020	2021	2022
$1,051	$571	$165	$165	$165

Goodwill

Changes in goodwill balances are as follows:



	2017									2016
(dollars in thousands)	U.S. & Canada			Latin America			Total			U.S. & Canada			Latin America		Total
Beginning balance:
Goodwill	$	43,872		$	125,681		$	169,553		$	43,872		$	125,681	$	169,553
Accumulated impairment losses	(5,441		)	—			(5,441		)	(5,441		)	—		(5,441		)
Net beginning balance	38,431			125,681			164,112			38,431			125,681		164,112
Impairment	—			(79,700		)	(79,700		)	—			—		—
Ending balance:
Goodwill	43,872			125,681			169,553			43,872			125,681		169,553
Accumulated impairment losses	(5,441		)	(79,700		)	(85,141		)	(5,441		)	—		(5,441		)
Net ending balance	$	38,431		$	45,981		$	84,412		$	38,431		$	125,681	$	164,112

Goodwill impairment tests are completed for each reporting unit on an annual basis, or more frequently in certain circumstances where impairment indicators arise. The inputs used for this analysis are considered Level 2 and Level 3 inputs in the fair value hierarchy. See note 14 for further discussion of the fair value hierarchy.

As part of our on-going assessment of goodwill at September 30, 2017, we noted that third quarter 2017 sales, profitability and cash flow of our Mexico reporting unit (within the Latin America segment) significantly underperformed in comparison to the forecast, and expectations for the fourth quarter of 2017 were lowered as well. These factors, as well as continuing competitive pressures, long term weakness of the Mexican peso relative to the U.S. dollar, and an increase in the discount rate of 70 basis points from December 31, 2016 to September 30, 2017, all contributed to increased pressure on the outlook of the reporting unit. As a result, we determined a triggering event had occurred for our Mexico reporting unit. Accordingly, an interim impairment test was performed as of September 30, 2017, indicating that the carrying value of the Mexico reporting unit exceeded its fair value, and in accordance with the early adoption of ASU 2017-04, we recorded a non-cash impairment charge of $79.7 million during the third quarter of 2017.

When performing our test for impairment, we measure each reporting unit's fair value using a combination of "income" and "market" approaches on a shipping point basis. The income approach calculates the fair value of the reporting unit based on a discounted cash flow analysis, incorporating the weighted average cost of capital of a hypothetical third-party buyer. Significant estimates in the income approach include the following: discount rate; expected financial outlook and profitability of the reporting unit's business; and foreign currency impacts (Level 3 inputs). Discount rates use the weighted average cost of capital for companies within our peer group, adjusted for specific company risk premium factors. The market approach uses the "Guideline Company" method, which calculates the fair value of the reporting unit based on a comparison of the reporting unit to comparable publicly traded companies. Significant estimates in the market approach model include identifying similar companies with comparable business factors such as size, growth, profitability, risk and return on investment, assessing comparable multiples, as well as consideration of control premiums (Level 2 inputs). The blended approach assigns a 70 percent weighting to the income approach and 30 percent to the market approach (Level 3 input). The higher weighting is given to the income approach due to some limitations of publicly available peer information used in the market approach. The blended fair value of both approaches is then compared to the carrying value, and to the extent that fair value exceeds the carrying value, no impairment exists. However, to the extent the carrying value exceeds the fair value, an impairment is recorded.

Our annual review was performed as of October 1^stfor each year presented. As the impairment assessment performed at September 30, 2017 resulted in the fair value of the Mexico reporting unit equaling its carrying value, there was no further impairment as of October 1, 2017. In addition, there were no indicators of impairment at December 31, 2017. Our review for 2016 did not indicate an impairment of goodwill.

Property, Plant and Equipment

Property, plant and equipment consists of the following:



December 31, (dollars in thousands)	2017		2016
Land	$	20,859	$	19,524
Buildings	107,659		102,666
Machinery and equipment	505,978		473,004
Furniture and fixtures	15,391		14,208
Software	24,464		22,733
Construction in progress	12,933		16,113
Gross property, plant and equipment	687,284		648,248
Less accumulated depreciation	421,609		391,856
Net property, plant and equipment	$	265,675	$	256,392

Depreciation expense was $44.4 million, $47.3 million and $41.4 million for the years 2017, 2016 and 2015, respectively.

Borrowings

Borrowings consist of the following:



December 31, (dollars in thousands)	Interest Rate		Maturity Date	2017		2016
Borrowings under ABL Facility	floating		December 7, 2022 ⁽¹⁾	$	—	$	—
Term Loan B	floating	⁽²⁾	April 9, 2021	384,600		409,000
AICEP Loan	0.00%		July 30, 2018	3,085		3,320
Total borrowings				387,685		412,320
Less — unamortized discount and finance fees				3,295		4,480
Total borrowings — net				384,390		407,840
Less — long term debt due within one year				7,485		5,009
Total long-term portion of borrowings — net				$	376,905	$	402,831

___________________________

⁽¹⁾ Maturity date will be January 9, 2021 if Term Loan B is not refinanced by this date.

⁽²⁾ See interest rate swap under "Term Loan B" below and note 12.

Annual maturities for all of our total borrowings for the next five years and beyond are as follows:



2018	2019	2020	2021	2022	Thereafter
$7,485	$4,400	$4,400	$371,400	$—	$—

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, May 18, 2012, April 9, 2014 and December 7, 2017 (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 (ABL 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 (Term 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 $10.0 million, with swingline borrowings for Libbey Europe being limited to the U.S. equivalent of $5.0 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, subject to a LIBOR floor of 0.0 percent. 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 December 31, 2017. 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 0.25 percent at December 31, 2017. No compensating balances are required by the ABL Facility. The ABL Facility 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 December 31, 2017 or at December 31, 2016. 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 ABL 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.

At December 31, 2017, the available total borrowing base is offset by a $0.5 million rent reserve and $0.5 million natural gas derivative liability. The ABL Facility also provides for the issuance of up to $15.0 million of letters of credit which, when outstanding, are applied against the $100.0 million limit. At December 31, 2017, $7.2 million in letters of credit were outstanding. Remaining unused availability under the ABL Facility was $91.9 million at December 31, 2017, compared to $88.4 million under the ABL Facility at December 31, 2016.

Term Loan B

On April 9, 2014, Libbey Glass consummated its $440.0 million Senior Secured Term Loan B of Libbey Glass due 2021 (Term Loan B). The net proceeds of the Term Loan B were $438.9 million, after the 0.25 percent original issue discount of $1.1 million. The Term Loan B had related fees of approximately $6.7 million that will be amortized to interest expense over the life of the loan.

The Term Loan B is evidenced by a Senior Secured Credit Agreement, dated April 9, 2014 (Credit Agreement), 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 lenders. Under the terms of the Credit Agreement, aggregate principal of $1.1 million is due on the last business day of each quarter. The Term Loan B bears interest at the rate of LIBOR plus 3.0 percent, subject to a LIBOR floor of 0.75 percent. The interest rate was 4.43 percent per year at December 31, 2017 and 3.75 percent at December 31, 2016, and will mature on April 9, 2021. Although the Credit Agreement does not contain financial covenants, the Credit Agreement 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.

We may voluntarily prepay, in whole or in part, the Term Loan B without premium or penalty but with accrued interest. Beginning with the year-ended December 31, 2015, the Credit Agreement requires us to make an annual mandatory prepayment offer to lenders of 0.0 to 50.0 percent of our excess cash flow, depending on our excess cash flow and leverage ratios as defined in the Credit Agreement. The calculation is made at the end of each year and the mandatory prepayment offer to lenders is made no later than ten business days after the filing of our annual compliance certificate to the lenders. The amount of any required mandatory prepayment offer is reduced by the amounts of any optional prepayments we made during the applicable year or prior to the prepayment offer in the year the offer is required to be made.

The Credit Agreement provides for customary events of default. In the case of an event of default as defined in the Credit Agreement, all of the outstanding Term Loan B will become due and payable immediately without further action or notice. The Term Loan B and the related guarantees under the Credit Agreement are secured by (i) first priority liens on the Term Priority Collateral and (ii) second priority liens on the ABL Collateral.

On April 1, 2015, we executed an interest rate swap on our Term Loan B as part of our risk management strategy to mitigate the risks involved with fluctuating interest rates. The interest rate swap effectively converts $220.0 million of our Term Loan B debt from a variable interest rate to a 4.85 percent fixed interest rate, thus reducing the impact of interest rate changes on future income. The fixed rate swap is effective January 2016 through January 2020. The interest rate swap is designated as a cash flow hedge and is accounted for under FASB ASC 815 "Derivatives and Hedging". See note 12 for further discussion on the interest rate swap.

AICEP Loan

From time to time since July 2012, Libbey Portugal has entered into loan agreements with Agencia para Investmento Comercio Externo de Portugal, EPE (AICEP), the Portuguese Agency for investment and external trade. The amount of the loans outstanding is €2.6 million (approximately $3.1 million) at December 31, 2017, and the interest rate is 0.0 percent. Semi-annual installments of principal are due through the maturity date in July 2018.

RMB Working Capital Loan

On July 24, 2014, Libbey China entered into a RMB 20.0 million (approximately $3.3 million) working capital loan with China Construction Bank to cover seasonal working capital needs. The working capital loan was set to mature on July 23, 2015, and had a fixed interest rate of 6.78 percent, which was paid monthly. On March 4, 2015, Libbey China prepaid the working capital loan along with accrued and unpaid interest. This obligation was secured by a mortgage lien on the Libbey China facility.

Notes Payable

We have an overdraft line of credit for a maximum of €0.8 million. At December 31, 2017 and 2016, there were no borrowings under the facility, which had an interest rate of 5.80 percent. Interest with respect to the note is paid monthly.

Income Taxes

The provisions for income taxes were calculated based on the following components of income (loss) before income taxes:



Year ended December 31, (dollars in thousands)	2017			2016			2015
United States	$	(65,224	)	$	29,742		$	27,146
Non-U.S.	(12,346		)	(1,958		)	971
Total income before income taxes	$	(77,570	)	$	27,784		$	28,117

The current and deferred provisions (benefit) for income taxes were:



Year ended December 31, (dollars in thousands)	2017			2016			2015
Current:
U.S. federal	$	(183	)	$	470		$	300
Non-U.S.	4,517			7,625			9,142
U.S. state and local	834			201			162
Total current income tax provision (benefit)	5,168			8,296			9,604

Deferred:
U.S. federal	9,950			9,981			(44,068		)
Non-U.S.	1,190			334			(3,078		)
U.S. state and local	(510		)	(900		)	(674		)
Total deferred income tax provision (benefit)	10,630			9,415			(47,820		)

Total:
U.S. federal	9,767			10,451			(43,768		)
Non-U.S.	5,707			7,959			6,064
U.S. state and local	324			(699		)	(512		)
Total income tax provision (benefit)	$	15,798		$	17,711		$	(38,216	)

United States Tax Reform: The Tax Cuts and Jobs Act (the Act), signed into law on December 22, 2017, changed many aspects of the U.S. tax code, by reducing the corporate income tax rate from 35 percent to 21 percent, shifting to a territorial tax system with a related one-time transition tax on accumulated, unremitted earnings of foreign subsidiaries, limiting interest deductions, allowing the current expensing of certain capital expenditures, and numerous other changes that will apply prospectively beginning in 2018. We recorded a charge of $6.7 million in the fourth quarter of 2017, principally related to re-measurement of the net U.S. deferred income tax assets at the 21 percent tax rate. The Company estimates that it will incur no material transition tax related to unremitted foreign earnings and does not anticipate material interest deduction limitations in the foreseeable future. We continue to analyze other changes to the tax code, including the Global Intangible Low Taxed Income (GILTI) provision, which could result in some level of future U.S. taxation of non-U.S. earnings that we cannot reasonably estimate at this time. Until we determine the extent to which GILTI may apply, we have not made an accounting policy decision regarding whether we will treat GILTI as a period cost or establish deferred taxes related thereto. We will continue to assess our income tax provision as we finalize our 2017 U.S. income tax return and as future guidance becomes available, but we do not currently expect that material revisions will be required. If revisions are required, they will be treated in accordance with the measurement period guidance outlined in Staff Accounting Bulletin No. 118.

Deferred income tax assets and liabilities result from temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes and from income tax carryovers and credits. The significant components of our deferred income tax assets and liabilities are as follows:



December 31, (dollars in thousands)	2017			2016
Deferred income tax assets:
Pension	$	8,108		$	11,799
Non-pension post-retirement benefits	13,385			22,810
Other accrued liabilities	13,213			19,244
Receivables	2,118			2,756
Net operating loss and charitable contribution carry forwards	16,599			16,861
Tax credits	13,288			11,502
Total deferred income tax assets	66,711			84,972
Valuation allowance	(19,076		)	(13,773		)
Net deferred income tax assets	47,635			71,199

Deferred income tax liabilities:
Property, plant and equipment	18,246			23,921
Inventories	1,639			3,866
Intangibles and other	4,708			5,255
Total deferred income tax liabilities	24,593			33,042
Net deferred income tax asset	$	23,042		$	38,157

The net deferred income tax assets and liabilities were included in the Consolidated Balance Sheets as follows:



December 31, (dollars in thousands)	2017			2016
Non-current deferred income tax asset	$	24,892		$	40,016
Non-current deferred income tax liability	(1,850		)	(1,859		)
Net deferred income tax asset	$	23,042		$	38,157

A summary of the deferred tax assets for net operating loss carry forwards is as follows:



December 31, (dollars in thousands)	2017		2016
Deferred income tax asset	$	16,599	$	16,861
Comprised of cumulative net losses from:
Netherlands	$	40,487	$	24,811
Mexico	$	1,700	$	—
China	$	1,155	$	825
Portugal	$	—	$	629
U.S. federal	$	15,578	$	23,019
U.S. state and local	$	41,812	$	58,551

Our foreign net operating loss carryforwards of $43.3 million will expire between 2018 and 2028. Our U.S. federal net operating loss carryforward of $15.6 million will expire between 2031 and 2034. The U.S. state and local net operating loss carryforward of $41.8 million will expire between 2018 and 2035.

A summary of the deferred income tax assets related to tax credits is as follows:



December 31, (dollars in thousands)	2017		2016
Netherlands foreign tax credits	$	9,082	$	7,695
U.S. general business credits	2,885		2,628
U.S. alternative minimum tax credits	1,321		1,179
Total	$	13,288	$	11,502

The non-U.S. credits can be carried forward indefinitely. The U.S. federal tax credits for general business research and development will expire between 2024 and 2037, and the alternative minimum tax credits do not expire.

In assessing the need for a valuation allowance, management considers whether it is more likely than not that some portion or all of the deferred income tax assets will be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income (including reversals of deferred income tax liabilities) during the periods in which those deductible temporary differences reverse. As a result, we consider the historical and projected financial results of the tax paying component recording the net deferred income tax asset as well as all other 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 and whether there were unusual, infrequent, or extraordinary items to be considered. We currently have a valuation allowance in place on our deferred income tax assets in the Netherlands. We intend to maintain this allowance until a period of sustainable income is achieved and management concludes it is more likely than not that those deferred income tax assets will be realized.

As of December 31, 2015, management considered the evidence, both positive and negative, in assessing the realizability of our deferred tax assets in the U.S. The positive evidence, including achievement of cumulative income in recent years and expectations for sustainable future income, was strong enough to conclude that it is more likely than not that nearly all of our deferred tax assets are realizable and the valuation allowance was reduced accordingly. In order to fully realize our deferred tax assets as of December 31, 2017 in the U.S., the Company needs to generate approximately $154.6 million of future taxable income.

Our European operations in the Netherlands incurred an operating loss in 2017, continue to be in cumulative loss positions in recent years, and have a history of tax loss carryforwards expiring unused. In addition, European economic conditions continue to be unfavorable. Accordingly, management believes it is not more likely than not that the net deferred tax assets related to these operations will be realized and a valuation allowance continues to be recorded as of December 31, 2017. The Netherlands operation added a new furnace in 2017 that achieves a much higher level of energy efficiency than the furnaces it replaced. Management is optimistic that this new furnace technology will significantly improve the profitability of the Netherlands operation. Thus, it is reasonably possible that the valuation allowance against the net operating loss deferred tax asset could be reduced within the next year.

Reconciliation from the statutory U.S. federal income tax rate to the consolidated effective income tax rate was as follows:



Year ended December 31,	2017			2016			2015
Statutory U.S. federal income tax rate	35.0		%	35.0		%	35.0		%
Increase (decrease) in rate due to:
Non-U.S. income tax differential	1.2			(2.1	)		(0.9	)
U.S. state and local income taxes, net of related U.S. federal income taxes	0.1			(1.3	)		(2.0	)
U.S. federal credits	0.3			(2.2	)		—
Permanent adjustments	0.6			3.8			7.5
Foreign withholding taxes	(2.0	)		5.7			4.7
Valuation allowance	(4.4	)		11.1			(174.8	)
Unrecognized tax benefits	(3.9	)		10.0			(0.3	)
Impact of foreign exchange	(1.6	)		3.4			(19.8	)
Tax effect of intercompany capitalization	—			—			11.7
Impact of legislative changes	(8.7	)		—			—
Goodwill impairment	(36.0	)		—			—
Other	(1.0	)		0.3			3.0
Consolidated effective income tax rate	(20.4	)	%	63.7		%	(135.9	)	%

U.S. income and foreign withholding taxes have not been recognized on the excess of the amount for financial reporting over the tax basis of investments in foreign subsidiaries that is indefinitely reinvested outside of the United States. This amount could become taxable upon a repatriation of assets from the subsidiary or a sale or liquidation of the subsidiary. The amount of such temporary differences totaled $11.4 million as of December 31, 2017 and $27.7 million as of December 31, 2016. Determination of the amount of any unrecognized deferred income tax liability on this temporary difference is not practicable because of the complexities of the hypothetical calculation.

We are subject to income taxes in the U.S. and various foreign jurisdictions. Management judgment is required in evaluating our tax positions and determining our provision for income taxes. Throughout the course of business, there are numerous transactions and calculations for which the ultimate tax determination is uncertain. When management believes uncertain tax positions may be challenged despite our belief that the tax return positions are supportable, we record unrecognized tax benefits as liabilities in accordance with the requirements of ASC 740. When our judgment with respect to these uncertain tax positions changes as a result of a change in facts and circumstances, such as the outcome of a tax audit, we adjust these liabilities through increases or decreases to the income tax provision.

The Company and its subsidiaries are subject to examination by various countries' tax authorities. These examinations may lead to proposed or assessed adjustments to our taxes. In August 2016, one of our Mexican subsidiaries received a tax assessment from the Mexican tax authority (SAT) related to the audit of its 2010 tax year. The amount assessed was approximately 3 billion Mexican pesos, which was equivalent to approximately $157 million U.S. dollars as of the date of the assessment. The Company has filed an administrative appeal with SAT requesting that the assessment be fully nullified. We are awaiting the outcome of the appeal. Management, in consultation with external legal counsel, believes that if contested in the Mexican court system, it is more likely than not that the Company would prevail on all significant components of the assessment. Management intends to continue to vigorously contest all significant components of the assessment in the Mexican courts if they are not nullified at the administrative appeal level. We believe that our tax reserves related to uncertain tax positions are adequate at this time.

A reconciliation of the beginning and ending gross unrecognized tax benefits, excluding interest and penalties, is as follows:



(dollars in thousands)	2017			2016			2015
Beginning balance	$	3,521		$	431		$	378
Additions based on tax positions related to the current year	435			382			293
Additions for tax positions of prior years	1,735			3,001			—
Reductions for tax positions of prior years	(468		)	(293		)	—
Changes due to lapse of statute of limitations	279			—			(240		)
Reductions due to settlements with tax authorities	(495		)	—			—
Ending balance	$	5,007		$	3,521		$	431

We recognize interest and penalties related to unrecognized tax benefits in the provision for income taxes. Other disclosures relating to unrecognized tax benefits are as follows:



December 31, (dollars in thousands)	2017			2016		2015
Amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate	$	4,107		$	3,414	$	378
Interest, net of tax benefit, accrued in the Consolidated Balance Sheets	$	572		$	92	$	28
Penalties, accrued in the Consolidated Balance Sheets	$	38		$	181	$	—
Interest expense (benefit) recognized in the Consolidated Statements of Operations	$	506		$	64	$	(146	)
Penalties expense (benefit) recognized in the Consolidated Statements of Operations	$	(67	)	$	181	$	—

Based upon the outcome of tax examinations, judicial proceedings, other settlements with taxing jurisdictions, or expiration of statutes of limitations, it is reasonably possible that the ultimate resolution of these unrecognized tax benefits may result in a payment that is materially different from the current estimate of the tax liabilities. It is also reasonably possible that gross unrecognized tax benefits may decrease within the next twelve months by approximately $3.6 million due to settlements with tax authorities.

We file income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. As of December 31, 2017, the tax years that remained subject to examination by major tax jurisdictions were as follows:



Jurisdiction	Open Years
Canada	2014	–	2017
China	2007	–	2017
Mexico (excluding 2011 which is closed)	2010	–	2017
Netherlands	2016	–	2017
Portugal	2014	–	2017
United States (excluding 2013 which is closed)	2011	–	2017

Pension

We have pension plans covering the majority of our employees. Benefits generally are based on compensation and service for salaried employees and job grade and length of service for hourly employees. In addition, we have an unfunded supplemental employee retirement plan (SERP) that covers 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 December 15, 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 Mexico and the Netherlands (through 2015). The plans in Mexico are unfunded.

In the fourth quarter of 2015, we executed an agreement with Pensioenfonds voor de Grafische Bedrijven (“PGB”), an industry wide pension fund, and unwound direct ownership of our defined benefit pension plan in the Netherlands. In accordance with this agreement, we transferred all assets of the plan and made a cash contribution of $5.2 million to PGB. In return, PGB assumed the related liabilities and administrative responsibilities of the plan. As a result, there is no longer a pension liability on the Consolidated Balance Sheet related to this pension plan. This event also resulted in a settlement charge of $21.6 million being recorded in the Consolidated Statement of Operations in the fourth quarter of 2015. Beginning in 2016, Libbey Holland makes cash contributions to PGB as participating employees earn pension benefits. These related costs are expensed as incurred, similar to the accounting associated with a defined contribution retirement plan and amounted to $1.9 million in both 2017 and 2016.

Effect on Operations

The components of our net pension expense, including the SERP, are as follows:



Year ended December 31, (dollars in thousands)	U.S. Plans									Non-U.S. Plans									Total
Year ended December 31, (dollars in thousands)	2017			2016			2015			2017			2016			2015			2017			2016			2015
Service cost (benefits earned during the period)	$	3,916		$	3,717		$	4,365		$	1,085		$	1,226		$	2,965		$	5,001		$	4,943		$	7,330
Interest cost on projected benefit obligation	13,787			14,963			14,715			2,749			2,594			4,332			16,536			17,557			19,047
Expected return on plan assets	(22,479		)	(23,027		)	(22,661		)	—			—			(2,447		)	(22,479		)	(23,027		)	(25,108		)
Amortization of unrecognized:
Prior service cost (credit)	236			263			417			(204		)	(207		)	(244		)	32			56			173
Actuarial loss	5,232			4,272			7,291			594			782			1,599			5,826			5,054			8,890
Settlement charge	245			42			13			—			126			21,574			245			168			21,587
Curtailment credit	—			—			—			—			—			(14		)	—			—			(14		)
Pension expense	$	937		$	230		$	4,140		$	4,224		$	4,521		$	27,765		$	5,161		$	4,751		$	31,905

In 2017, 2016 and 2015, we incurred pension settlement charges of $0.2 million, $0.2 million and $21.6 million, respectively. The pension settlement charges in 2015 were triggered primarily by the liquidation of the Dutch pension fund. The pension settlement charges in 2017 and 2016 were triggered by excess lump sum distributions taken by employees, which required us to record unrecognized gains and losses in our pension plan accounts.

Actuarial Assumptions

The assumptions used to determine the benefit obligations were as follows:



	U.S. Plans						Non-U.S. Plans
	2017			2016			2017	2016
Discount rate	3.64%	to	3.69%	4.18%	to	4.23%	9.40%	9.30%
Rate of compensation increase	Not applicable			Not applicable			4.30%	4.30%

The assumptions used to determine net periodic pension costs were as follows:



	U.S. Plans															Non-U.S. Plans
	2017					2016					2015					2017	2016	2015
Discount rate	4.18	%	to	4.23	%	4.66	%	to	4.73	%	4.17	%	to	4.29	%	9.30%	8.10%	2.30	%	to	7.60	%
Expected long-term rate of return on plan assets	7.00%					7.25%					7.25%					Not applicable	Not applicable	4.00%
Rate of compensation increase	Not applicable					Not applicable					Not applicable					4.30%	4.30%	2.00	%	to	4.30	%

The discount rate enables us to estimate the present value of expected future cash flows on the measurement date. The rate used reflects a rate of return on high-quality fixed income investments that match the duration of expected benefit payments at our December 31 measurement date. The discount rate at December 31 is used to measure the year-end benefit obligations and the earnings effects for the subsequent year. A higher discount rate decreases the present value of benefit obligations and decreases pension expense.

To determine the expected long-term rate of return on plan assets for our funded plans, we consider the current and expected asset allocations, as well as historical and expected returns on various categories of plan assets. The expected long-term rate of return on plan assets at December 31^st is used to measure the earnings effects for the subsequent year.

Future benefits are assumed to increase in a manner consistent with past experience of the plans except for the Libbey U.S. Salaried Pension Plan and SERP as discussed above, which, to the extent benefits are based on compensation, includes assumed compensation increases as presented above. Amortization included in net pension expense is based on the average remaining service of employees.

We account for our defined benefit pension plans on an expense basis that reflects actuarial funding methods. The actuarial valuations require significant estimates and assumptions to be made by management, primarily with respect to the discount rate and expected long-term return on plan assets. These assumptions are all susceptible to changes in market conditions. The discount rate is based on a selected settlement portfolio from a universe of high quality bonds. In determining the expected long-term rate of return on plan assets, we consider historical market and portfolio rates of return, asset allocations and expectations of future rates of return. We evaluate these critical assumptions on our annual measurement date of December 31^st. Other assumptions involving demographic factors such as retirement age, mortality and turnover are evaluated periodically and are updated to reflect our experience. Actual results in any given year often will differ from actuarial assumptions because of demographic, economic and other factors.

For our U.S. pension plans, we use the RP 2014 Sex Distinct Mortality Tables, as released by the Society of Actuaries, to determine our projected benefit obligations. In 2015, 2016 and 2017, the Society of Actuaries published new generational projection scales reflecting additional years of mortality experience. We adopted these updates in each respective year.

Projected Benefit Obligation (PBO) and Fair Value of Assets

The changes in the projected benefit obligations and fair value of plan assets are as follows:



Year ended December 31, (dollars in thousands)	U.S. Plans						Non-U.S. Plans						Total
Year ended December 31, (dollars in thousands)	2017			2016			2017			2016			2017			2016
Change in projected benefit obligation:
Projected benefit obligation, beginning of year	$	336,648		$	325,863		$	28,161		$	35,915		$	364,809		$	361,778
Service cost	3,916			3,717			1,085			1,226			5,001			4,943
Interest cost	13,787			14,963			2,749			2,594			16,536			17,557
Exchange rate fluctuations	—			—			1,214			(5,821		)	1,214			(5,821		)
Actuarial (gain) loss	22,991			11,108			1,409			(2,477		)	24,400			8,631
Settlements paid	(281		)	(259		)	—			—			(281		)	(259		)
Benefits paid	(23,008		)	(18,744		)	(2,651		)	(3,276		)	(25,659		)	(22,020		)
Projected benefit obligation, end of year	$	354,053		$	336,648		$	31,967		$	28,161		$	386,020		$	364,809

Change in fair value of plan assets:
Fair value of plan assets, beginning of year	$	318,414		$	316,184		$	—		$	—		$	318,414		$	316,184
Actual return on plan assets	47,595			20,974			—			—			47,595			20,974
Employer contributions	499			259			2,651			3,276			3,150			3,535
Settlements paid	(281		)	(259		)	—			—			(281		)	(259		)
Benefits paid	(23,008		)	(18,744		)	(2,651		)	(3,276		)	(25,659		)	(22,020		)
Fair value of plan assets, end of year	$	343,219		$	318,414		$	—		$	—		$	343,219		$	318,414

Funded ratio	96.9		%	94.6		%	—		%	—		%	88.9		%	87.3		%
Funded status and net accrued pension benefit cost	$	(10,834	)	$	(18,234	)	$	(31,967	)	$	(28,161	)	$	(42,801	)	$	(46,395	)

The current portion of the pension liability reflects the amount of expected benefit payments that are greater than the plan assets on a plan-by-plan basis. The net accrued pension benefit liability at December 31 of the respective year-ends were included in the Consolidated Balance Sheets as follows:



December 31, (dollars in thousands)	2017			2016
Pension asset	$	2,939		$	—
Pension liability (current portion)	(2,185		)	(2,461		)
Pension liability	(43,555		)	(43,934		)
Net accrued pension liability	$	(42,801	)	$	(46,395	)

The pretax amounts recognized in accumulated other comprehensive loss as of December 31, 2017 and 2016, are as follows:



Year ended December 31, (dollars in thousands)	U.S. Plans				Non-U.S. Plans						Total
Year ended December 31, (dollars in thousands)	2017		2016		2017			2016			2017			2016
Net actuarial loss	$	98,228	$	105,830	$	12,378		$	11,077		$	110,606		$	116,907
Prior service cost (credit)	1		237		(2,636		)	(2,704		)	(2,635		)	(2,467		)
Total cost	$	98,229	$	106,067	$	9,742		$	8,373		$	107,971		$	114,440

The pretax amounts in accumulated other comprehensive loss as of December 31, 2017, that are expected to be recognized as components of net periodic benefit cost during 2018 are as follows:



(dollars in thousands)	U.S. Plans		Non-U.S. Plans			Total
Net actuarial loss	$	6,546	$	605		$	7,151
Prior service cost (credit)	1		(195		)	(194		)
Total cost	$	6,547	$	410		$	6,957

Estimated contributions for 2018, as well as, contributions made in 2017 and 2016 to the pension plans are as follows:



(dollars in thousands)	U.S. Plans		Non-U.S. Plans		Total
Estimated contributions in 2018	$	131	$	2,148	$	2,279
Contributions made in 2017	$	499	$	2,651	$	3,150
Contributions made in 2016	$	259	$	3,276	$	3,535

It is difficult to estimate future cash contributions to the pension plans, as such amounts are a function of actual investment returns, withdrawals from the plans, changes in interest rates and other factors uncertain at this time. It is possible that greater cash contributions may be required in 2018 than the amounts in the above table. Although a decline in market conditions, changes in current pension law and uncertainties regarding significant assumptions used in the actuarial valuations may have a material impact in future required contributions to our pension plans, we currently do not expect funding requirements to have a material adverse impact on current or future liquidity.

Pension benefit payment amounts are anticipated to be paid from the plans (including the SERP) as follows:



Year (dollars in thousands)	U.S. Plans		Non-U.S. Plans		Total
2018	$	19,838	$	2,148	$	21,986
2019	$	19,765	$	2,007	$	21,772
2020	$	19,842	$	2,193	$	22,035
2021	$	20,304	$	2,558	$	22,862
2022	$	20,525	$	2,687	$	23,212
2023-2027	$	104,932	$	15,143	$	120,075

Accumulated Benefit Obligation in Excess of Plan Assets

The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for pension plans with an accumulated benefit obligation in excess of plan assets at December 31, 2017 and 2016 were as follows:



December 31, (dollars in thousands)	U.S. Plans				Non-U.S. Plans				Total
December 31, (dollars in thousands)	2017		2016		2017		2016		2017		2016
Projected benefit obligation	$	268,887	$	336,648	$	31,967	$	28,161	$	300,854	$	364,809
Accumulated benefit obligation	$	268,887	$	336,648	$	27,055	$	23,194	$	295,942	$	359,842
Fair value of plan assets	$	255,115	$	318,414	$	—	$	—	$	255,115	$	318,414

Plan Assets

Our investment strategy is to control and manage investment risk through diversification across asset classes and investment styles, within established target asset allocation ranges. The investment risk of the assets is limited by appropriate diversification both within and between asset classes. Assets are diversified among a mix of traditional investments in equity and fixed income instruments, as well as alternative investments including real estate and hedge funds. It would be anticipated that a modest allocation to short-term investments would exist within the plans, since each investment manager is likely to hold some short-term investments in the portfolio with the goal of ensuring that sufficient liquidity will be available to meet expected cash flow requirements.

Our investment valuation policy is to state the investments at fair value. All investments are valued at their respective net asset value (NAV) as a practical expedient and calculated by the Trustee, except for certain hedge fund investments valued at NAV. The real estate, equity securities and fixed income investments are held in a Group Trust which is valued at the unit prices established by the Trustee and are valued using NAV as a practical expedient. Underlying equity securities (including large and small cap domestic and international equities), for which market quotations are readily available, are valued at the last reported readily available sales price on their principal exchange on the valuation date or official close for certain markets. Fixed income investments are valued on a basis of valuations furnished by a trustee-approved pricing service, which determines valuations for normal institutional-size trading units of such securities which are generally recognized at fair value as determined in good faith by the Trustee. The fair value of investments in real estate funds is based on valuation of the fund as determined by periodic appraisals of the underlying investments owned by the respective fund. Investments in registered investment companies are valued at quoted market prices. Collective pooled funds, if any, are recorded using NAV practical expedients. Short-term investments are valued at their respective NAV and have no redemption restrictions. The hedge fund investments using NAV as a practical expedient are valued by using estimated month-end NAV and performance numbers provided by the fund administrator. The Plan is required to provide a month’s advance written notice to liquidate its entire share in the Group Trust. Certain investments in the hedge funds can only be liquidated on either a quarterly or semi-annual basis, require advance notification and are subject to audit holdback provisions.

All investments measured at NAV as a practical expedient for fair value have been excluded from the fair value hierarchy, in accordance with U.S. GAAP. The table below presents our U.S. pension plan assets at fair value.



December 31, (dollars in thousands)	Measured at NAV as a practical expedient					Target Allocation
December 31, (dollars in thousands)	2017			2016		2018
Short-term investments	$	8,061		$	8,766	3	%
Real estate	16,390			15,812		5	%
Equity securities	156,434			148,302		45	%
Debt securities	125,671			96,658		37	%
Hedge funds	36,663		⁽¹⁾	48,876		10	%
Total	$	343,219		$	318,414	100	%

_________________________

⁽¹⁾ Includes $9.1 million of hedge funds valued daily at NAV which is considered to be a Level 2 investment in the fair value hierarchy. See note 14 for discussion of the fair value hierarchy.

Non-pension Post-retirement Benefits

We provide certain retiree healthcare and life insurance benefits covering our U.S. and Canadian salaried employees hired before January 1, 2004 and a majority of our union hourly employees (excluding employees hired at Shreveport after December 15, 2008 and at Toledo after September 30, 2010). Employees are generally eligible for benefits upon retirement and completion of a specified number of years of creditable service. Benefits for most hourly retirees are determined by collective bargaining. The U.S. non-pension, post-retirement plans cover the hourly and salaried U.S.-based employees of Libbey (excluding those mentioned above). The non-U.S., non-pension, post-retirement plans cover the retirees and active employees of Libbey who are located in Canada. The post-retirement benefit plans are unfunded.

Effect on Operations

The provision for our non-pension post-retirement benefit expense consists of the following:



Year ended December 31, (dollars in thousands)	U.S. Plans							Non-U.S. Plans									Total
Year ended December 31, (dollars in thousands)	2017			2016		2015		2017			2016			2015			2017			2016		2015
Service cost (benefits earned during the period)	$	631		$	797	$	855	$	1		$	1		$	1		$	632		$	798	$	856
Interest cost on projected benefit obligation	2,104			2,608		2,537		44			51			52			2,148			2,659		2,589
Amortization of unrecognized:
Prior service cost (credit)	(201		)	140		140		—			—			—			(201		)	140		140
Actuarial loss (gain)	(257		)	81		592		(59		)	(47		)	(56		)	(316		)	34		536
Non-pension post-retirement benefit expense	$	2,277		$	3,626	$	4,124	$	(14	)	$	5		$	(3	)	$	2,263		$	3,631	$	4,121

Actuarial Assumptions

The discount rates used to determine the accumulated post-retirement benefit obligation and net post-retirement benefit cost were as follows:



	U.S. Plans						Non-U.S. Plans
	2017		2016		2015		2017		2016		2015
Accumulated post-retirement benefit obligation	3.60	%	4.05	%	4.56	%	3.26	%	3.48	%	3.69	%
Net post-retirement benefit cost	4.05	%	4.56	%	4.10	%	3.48	%	3.69	%	3.61	%

The weighted average assumed healthcare cost trend rates at December 31 were as follows:



	U.S. Plans				Non-U.S. Plans
	2017		2016		2017		2016
Healthcare cost trend rate assumed for next year	6.50	%	6.75	%	6.50	%	6.75	%
Ultimate healthcare trend rate	5.00	%	5.00	%	5.00	%	5.00	%
Year the ultimate trend rate is reached	2024		2024		2024		2024

We use various actuarial assumptions, including the discount rate and the expected trend in healthcare costs, to estimate the costs and benefit obligations for our retiree health plan. The discount rate is determined based on high-quality fixed income investments that match the duration of expected retiree medical benefits at our December 31 measurement date to establish the discount rate. The discount rate at December 31 is used to measure the year-end benefit obligations and the earnings effects for the subsequent year.

The healthcare cost trend rate represents our expected annual rates of change in the cost of healthcare benefits. The trend rate noted above represents a forward projection of healthcare costs as of the measurement date. A 1.0 percent change in the healthcare trend rate would not have a material impact upon the non-pension post-retirement expense.

Accumulated Post-retirement Benefit Obligation

The components of our non-pension post-retirement benefit obligation are as follows:



Year ended December 31, (dollars in thousands)	U.S. Plans						Non-U.S. Plans						Total
Year ended December 31, (dollars in thousands)	2017			2016			2017			2016			2017			2016
Change in accumulated non-pension post-retirement benefit obligation:
Benefit obligation, beginning of year	$	58,921		$	58,795		$	1,344		$	1,390		$	60,265		$	60,185
Service cost	631			797			1			1			632			798
Interest cost	2,104			2,608			44			51			2,148			2,659
Plan participants' contributions	525			528			—			—			525			528
Actuarial (gain) loss	(5,483		)	146			(108		)	(102		)	(5,591		)	44
Exchange rate fluctuations	—			—			90			46			90			46
Benefits paid	(4,050		)	(3,953		)	(76		)	(42		)	(4,126		)	(3,995		)
Benefit obligation, end of year	$	52,648		$	58,921		$	1,295		$	1,344		$	53,943		$	60,265

Funded status and accrued benefit cost	$	(52,648	)	$	(58,921	)	$	(1,295	)	$	(1,344	)	$	(53,943	)	$	(60,265	)

The total accrued non-pension post-retirement benefits liability at December 31 of the respective year-ends were included in the Consolidated Balance Sheets as follows:



December 31, (dollars in thousands)	2017		2016
Non-pension post-retirement benefits (current portion)	$	4,185	$	4,892
Non-pension post-retirement benefits	49,758		55,373
Total non-pension post-retirement benefits liability	$	53,943	$	60,265

The pretax amounts recognized in accumulated other comprehensive loss as of December 31, 2017 and 2016, are as follows:



Year ended December 31, (dollars in thousands)	U.S. Plans						Non-U.S. Plans						Total
Year ended December 31, (dollars in thousands)	2017			2016			2017			2016			2017			2016
Net actuarial loss (gain)	$	(80	)	$	5,146		$	(832	)	$	(730	)	$	(912	)	$	4,416
Prior service cost (credit)	(1,262		)	(1,463		)	—			—			(1,262		)	(1,463		)
Total cost (credit)	$	(1,342	)	$	3,683		$	(832	)	$	(730	)	$	(2,174	)	$	2,953

The pretax amounts in accumulated other comprehensive loss at December 31, 2017, that are expected to be recognized as components of net periodic benefit cost during 2018 are as follows:



(dollars in thousands)	U.S. Plans			Non-U.S. Plans			Total
Net actuarial loss (gain)	$	(210	)	$	(66	)	$	(276	)
Prior service cost (credit)	(282		)	—			(282		)
Total cost (credit)	$	(492	)	$	(66	)	$	(558	)

Non-pension post-retirement benefit payments net of estimated future Medicare Part D subsidy payments and future retiree contributions, are anticipated to be paid as follows:



Fiscal Year (dollars in thousands)	U.S. Plans		Non-U.S. Plans		Total
2018	$	4,098	$	161	$	4,259
2019	$	4,024	$	159	$	4,183
2020	$	3,965	$	153	$	4,118
2021	$	3,850	$	142	$	3,992
2022	$	3,853	$	130	$	3,983
2023-2027	$	16,848	$	373	$	17,221

Net Income per Share of Common Stock

Net Income (Loss) per Share of Common Stock

The following table sets forth the computation of basic and diluted earnings (loss) per share:



Year ended December 31, (dollars in thousands, except earnings per share)	2017			2016		2015
Numerator for earnings per share:
Net income (loss) that is available to common shareholders	$	(93,368	)	$	10,073	$	66,333

Denominator for basic earnings per share:
Weighted average shares outstanding	22,030,672			21,879,613		21,816,935

Denominator for diluted earnings per share:
Effect of stock options and restricted stock units	—			169,330		342,214
Adjusted weighted average shares and assumed conversions	22,030,672			22,048,943		22,159,149

Basic earnings (loss) per share	$	(4.24	)	$	0.46	$	3.04

Diluted earnings (loss) per share	$	(4.24	)	$	0.46	$	2.99

Shares excluded from diluted earnings per share due to:
Net loss position (excluded from denominator)	85,588			—		—
Inclusion would have been anti-dilutive (excluded from calculation)	846,747			602,402		105,201

When applicable, diluted shares outstanding include the dilutive impact of restricted stock units. Diluted shares also include the impact of eligible employee stock options, which are calculated based on the average share price for each fiscal period using the treasury stock method. As part of the adoption of ASU 2016-09 as of January 1, 2017, anticipated tax windfalls and shortfalls are no longer included in the calculation of assumed proceeds when applying the treasury stock method.

Employee Stock Benefit Plans

We have a stock-based employee compensation plan. We account for stock-based compensation in accordance with FASB ASC Topic 718, “Compensation - Stock Compensation” and FASB ASC Topic 505-50, “Equity - Equity Based Payment to Non-Employees”, which requires the measurement and recognition of compensation expense for all share-based awards to our employees and directors. Share-based compensation cost is measured based on the fair value of the equity or liability instruments issued. FASB ASC 718 and FASB ASC 505-50 apply to all of our outstanding unvested share-based payment awards.

Equity Participation Plan Program Description

We have two equity participation plans, the Amended and Restated Libbey Inc. 2006 Omnibus Incentive Plan and the Libbey Inc. 2016 Omnibus Incentive Plan, which we refer to as the Omnibus Plans. Up to a total of 2,960,000 and 1,200,000 shares of Libbey Inc. common stock are authorized for issuance as equity-based compensation under the 2006 and 2016 Omnibus Plans, respectively. Under the Omnibus Plans, grants of equity-based compensation may take the form of stock options, stock appreciation rights, performance shares or units, restricted stock or restricted stock units or other stock-based awards. Employees and directors are eligible for awards under these plans. All option grants have an exercise price equal to the fair market value of the underlying stock on the grant date. The vesting period of options, stock appreciation rights, restricted stock units and cash settled restricted stock units outstanding as of December 31, 2017, is generally four years. Awards are subject to alternate vesting plans for death, disability, retirement eligibility and involuntary termination. Dividends are not payable on shares underlying options, stock appreciation rights or unvested restricted stock units. All grants of equity-based compensation are amortized over the vesting period in accordance with FASB ASC 718 expense attribution methodology with the related compensation expense recorded in selling, general and administrative expenses in the Consolidated Statements of Operations.

Non-Qualified Stock Option Information

The Black-Scholes option-pricing model was used to estimate the grant-date fair value for stock options. The exercise price of each stock option equals the closing market price of our common stock on the date of grant. The maximum term is ten years. The following table summarizes non-qualified stock option disclosures for 2017, 2016 and 2015:



Year ended December 31, (dollars in thousands, except options and assumptions)	2017		2016		2015
Stock options granted	249,392		351,590		108,297
Stock option compensation expense included in the Consolidated Statements of Operations	$	690	$	705	$	1,674
Weighted-average grant-date fair value of options granted using the Black-Scholes model	$	3.00	$	4.20	$	14.72
Weighted-average assumptions for stock option grants:
Risk-free interest	2.07%		1.30%		1.68%
Expected term	5.8 years		6.3 years		6.4 years
Expected volatility	38.54%		33.14%		39.92%
Dividend yield	4.32%		2.69%		1.16%


•	The risk-free interest rate is based on the U.S. Treasury yield curve at the time of grant and has a term equal to the expected life.


•	The expected term represents the period of time the options are expected to be outstanding. We use the actual historical exercise activity for determining the expected term.

•

Expected volatility is calculated based on Libbey's daily stock closing prices for a period equal to the expected life of the award. For grants prior to March 31, 2016, a peer group volatility was used, with the period still equal to the expected life of the award. The peer group was used due to the Company having a period of history when we were more highly leveraged which is not relevant in evaluating expected volatility. The peer group was established using the criteria of similar industry, size, leverage and length of history.


•	The dividend yield is calculated as the ratio based on our most recent historical dividend payments per share of common stock at the grant date to the stock price on the date of grant.

Information with respect to our stock option activity for 2017, 2016 and 2015 is as follows:



Stock Options	Shares		Weighted-Average Exercise Price per Share		Weighted-Average Remaining Contractual Life (In Years)	Aggregate Intrinsic Value (in thousands)
Outstanding balance at January 1, 2015	834,010		$	17.28	6.7	$	11,808
Granted	108,297		$	36.90
Exercised	(241,122	)	$	13.85		$	5,722
Canceled	(44,514	)	$	25.43
Outstanding balance at December 31, 2015	656,671		$	21.22	6.8	$	2,103
Granted	351,590		$	17.23
Exercised	(100,813	)	$	13.90		$	379
Canceled	(262,225	)	$	23.73
Outstanding balance at December 31, 2016	645,223		$	19.17	6.6	$	1,407
Granted	249,392		$	11.74
Exercised	(33,389	)	$	13.96		$	17
Canceled	(98,676	)	$	19.42
Outstanding balance at December 31, 2017	762,550		$	16.91	7.0	$	64
Exercisable at December 31, 2017	333,761		$	19.26	4.8	$	35

Intrinsic value for share-based instruments is defined as the difference between the current market value and the exercise price.

As of December 31, 2017, $0.6 million of unrecognized compensation expense related to nonvested stock options is expected to be recognized within the next 2.4 years on a weighted-average basis. The total fair value of shares vested during 2017, 2016 and 2015 is $0.7 million, $1.6 million and $1.7 million, respectively. Shares issued for exercised options are issued from treasury stock, when available.

The following table summarizes our nonvested stock option activity for 2017, 2016 and 2015:



Nonvested Stock Options	Shares		Weighted-Average Value (per Share)
Nonvested at January 1, 2015	438,515		$	9.91
Granted	108,297		$	14.72
Vested	(161,923	)	$	10.55
Forfeited	(42,887	)	$	11.32
Nonvested at December 31, 2015	342,002		$	10.95
Granted	351,590		$	4.20
Vested	(169,703	)	$	9.42
Forfeited	(178,954	)	$	8.41
Nonvested at December 31, 2016	344,935		$	6.14
Granted	249,392		$	3.00
Vested	(108,449	)	$	6.69
Forfeited	(57,089	)	$	6.23
Nonvested at December 31, 2017	428,789		$	4.16

Stock Appreciation Rights Information

The exercise price of each stock appreciation right equals the closing market price of our common stock on the date of grant. The maximum term is ten years. Stock appreciation rights are settled in cash for the difference between the market price on the date of exercise and the exercise price. Awards that are settled in cash are subject to liability accounting. Accordingly, the fair value of such awards is remeasured at the end of each reporting period until settled or expired. The Company entered into a CEO Retention Award Agreement pursuant to which the Company issued 240,829 stock appreciation rights to our former CEO on December 16, 2013. On January 11, 2016, vesting of all unvested retention stock appreciation rights otherwise scheduled to vest on December 31, 2018 was accelerated as a result of the departure of our former CEO.

The Black-Scholes option-pricing model was used to estimate the grant-date fair value. The following table summarizes stock appreciation rights disclosures for 2017, 2016 and 2015:



Year ended December 31, (dollars in thousands, except stock appreciation rights and assumptions)	2017		2016			2015
Stock appreciation rights granted	26,839		—			—
Stock appreciation rights compensation expense (benefit) included in the Consolidated Statements of Operations	$	39	$	(462	)	$	(273	)
Weighted-average grant-date fair value of stock appreciation rights granted using the Black-Scholes model	$	0.19
Weighted-average assumptions for stock appreciation rights granted:
Risk-free interest	2.17%
Expected term	4.5 years
Expected volatility	38.93%
Dividend yield	6.10%

The risk-free interest rate, expected term, expected volatility and dividend yield assumptions are calculated consistent with our non-qualified stock option awards. During 2017, some equity awards to foreign employees were modified to cash settled stock appreciation rights. The weighted-average grant-date fair value above represents the incremental value at the date of modification.

Information with respect to our stock appreciation right activity for 2017, 2016 and 2015 is as follows:



Stock Appreciation Rights	Shares		Weighted Average Exercise Price		Weighted-Average Remaining Contractual Life (In Years)	Aggregate Intrinsic Value (in thousands)
Outstanding Balance at January 1, 2015	244,229		$	21.27	9.0	$	2,483
Outstanding balance at December 31, 2015	244,229		$	21.27	8.0	$	14
Outstanding balance at December 31, 2016	244,229		$	21.27	0.1	$	4
Granted	26,839		$	17.19
Exercised	(7,060	)	$	7.16		$	56
Canceled	(240,829	)	$	21.29
Outstanding balance at December 31, 2017	23,179		$	20.66	5.2	$	—
Exercisable at December 31, 2017	19,999		$	20.29	5.0	$	—

As of December 31, 2017, the amount of unrecognized compensation expense related to nonvested stock appreciation rights is immaterial. The total fair value of shares vested during 2017, 2016 and 2015 was immaterial.

The following table summarizes our non-vested stock appreciation rights for 2017, 2016 and 2015:



Nonvested Stock Appreciation Rights	Shares		Weighted-Average Value (per Share)
Nonvested at January 1, 2015	244,229		$	10.37
Vested	(1,250	)	$	10.33
Nonvested at December 31, 2015	242,979		$	10.37
Vested	(241,829	)	$	10.38
Nonvested at December 31, 2016	1,150		$	9.88
Granted	26,839		$	0.19
Vested	(24,809	)	$	0.29
Nonvested at December 31, 2017	3,180		$	1.32

Stock and Restricted Stock Unit Information

Under the Omnibus Plans, we grant non-employee members of our Board of Directors shares of stock. The shares granted to Directors are immediately vested and all compensation expense is recognized in our Consolidated Statements of Operations in the year the grants are made. In addition, we grant restricted stock units to select executives and key employees. Compensation expense for restricted stock is measured based on the closing market price of the stock at date of grant less the present value of expected dividends over the vesting period, as dividends are not payable on unvested restricted stock units.

A summary of the activity for stock and restricted stock units under the Omnibus Plans for 2017, 2016 and 2015 is presented below:



Year ended December 31, (dollars in thousands, except share amounts)	2017			2016			2015
Beginning nonvested balance	283,188			315,434			232,824
Granted	278,351			298,909			219,010
Vested	(154,995		)	(165,372		)	(113,319		)
Forfeited	(52,340		)	(165,783		)	(23,081		)
Ending nonvested balance	354,204			283,188			315,434

Weighted-average grant-date fair value per restricted stock unit	$	10.38		$	16.22		$	35.93

Compensation expense	$	2,682		$	3,019		$	4,199

The total fair value for shares vested during the years ended December 31, 2017, 2016 and 2015 was $1.9 million, $3.0 million and $4.2 million, respectively. As of December 31, 2017, there was $1.9 million of unrecognized compensation cost related to nonvested restricted stock units granted. That cost is expected to be recognized over a weighted average period of 1.9 years. Shares issued for unrestricted stock and restricted stock unit awards are issued from treasury stock, when available.

Cash Settled Restricted Stock Unit Information

Under the terms of the CEO Retention Award Agreement dated December 16, 2013, 115,687 cash settled restricted stock units were granted during the first quarter of 2014. Accordingly, awards that will be settled in cash are subject to liability accounting and the fair value of these awards will be remeasured at the end of each reporting period until settled. On January 11, 2016, vesting of all unvested retention cash settled restricted stock units otherwise scheduled to vest on December 31, 2018 was accelerated as a result of the departure of our former CEO.

A summary of the activity for cash settled restricted stock units is presented below:



Year ended December 31, (dollars in thousands, except share amounts)	2017			2016			2015
Beginning nonvested balance	17,067			116,712			115,687
Granted	—			16,299			1,025
Vested	(5,080		)	(115,944		)	—
Forfeited	(1,092		)	—			—
Ending nonvested balance	10,895			17,067			116,712

Weighted-average grant-date fair value per restricted stock unit	$	—		$	3.57		$	36.96

Compensation expense	$	49		$	1,504		$	317

During 2016, some equity awards for foreign employees were modified to cash settled restricted stock units. The weighted-average grant-date fair value noted above represents the incremental value at the date of modification. As of December 31, 2017, the amount of unrecognized compensation cost related to nonvested cash settled restricted stock units granted was immaterial. We paid $2.3 million to settle vested cash settled restricted stock units in 2016.

Employee 401(k) Plan Retirement Fund and Non-Qualified Deferred Executive Compensation Plans

We sponsor the Libbey Inc. Salary and Hourly 401(k) plans (the Plans) to provide retirement benefits for our U.S. employees. As allowed under Section 401(k) of the Internal Revenue Code, the Plans provide for tax-deferred wage contributions for eligible employees.

For the Salary Plan, employees can contribute from 1 percent to 50 percent of their annual salary, up to the annual IRS limits. We match 100 percent on the first 6 percent on a per pay basis of pretax contributions. For the Hourly Plan, employees can contribute from 1 percent to 25 percent of their eligible annual pay up to the annual IRS limits. We match 50 percent of the first 6 percent of eligible earnings on a per pay basis that are contributed by employees on a pretax basis. Therefore, the maximum matching contribution that we may allocate to each participant's account did not exceed $16,200 for the Salary Plan or $8,100 for the Hourly Plan for the 2017 calendar year due to the $270,000 annual limit on eligible earnings imposed by the Internal Revenue Code. All matching contributions are invested according to the employees' deferral elections and vest immediately.

Effective January 1, 2009, we have a non-qualified Executive Deferred Compensation Plan (EDCP). Under the EDCP, executives and other members of senior management may elect to defer base salary, annual incentive compensation and equity-based compensation. We provide matching contributions on excess contributions (above the qualified 401(k) plan compensation limits) in the same manner as we provide matching contributions under our 401(k) plan.

Our matching contributions to all Plans totaled $3.6 million, $3.4 million and $3.4 million in 2017, 2016 and 2015, respectively.

Derivatives

We utilize derivative financial instruments to hedge certain interest rate risks associated with our long-term debt, commodity price risks associated with forecasted future natural gas requirements and foreign exchange rate risks associated with transactions denominated in a currency other than the U.S. dollar. These derivatives, except for the historical foreign currency contracts and the natural gas contracts used in our Mexican manufacturing facilities, qualify for hedge accounting since the hedges are highly effective, and we have designated and documented contemporaneously the hedging relationships involving these derivative instruments. While we intend to continue to meet the conditions for hedge accounting, if hedges do not qualify as highly effective 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.

We do not believe we are exposed to more than a nominal amount of credit risk in our natural gas hedges, interest rate swap and currency contracts as the counterparties are established financial institutions. The counterparties for the derivative agreements are rated BBB+ or better as of December 31, 2017, by Standard and Poor’s.

Fair Values

The following table provides the fair values of our derivative financial instruments for the periods presented:



December 31, (dollars in thousands)		Fair Value of Derivative Assets
December 31, (dollars in thousands)	Balance Sheet Location	2017		2016
Cash flow hedges:
Interest rate swap	Other assets	$	646	$	—
Natural gas contracts	Prepaid and other current assets	—		702
Natural gas contracts	Other assets	—		45
Total designated		646		747
Derivatives not designated as hedging instruments:
Natural gas contracts	Prepaid and other current assets	—		732
Natural gas contracts	Other assets	—		29
Total undesignated		—		761
Total derivative assets		$	646	$	1,508



December 31, (dollars in thousands)		Fair Value of Derivative Liabilities
December 31, (dollars in thousands)	Balance Sheet Location	2017		2016
Cash flow hedges:
Interest rate swap	Derivative liability	$	213	$	1,928
Interest rate swap	Other long-term liabilities	—		107
Natural gas contracts	Derivative liability	220		—
Natural gas contracts	Other long-term liabilities	7		—
Total designated		440		2,035
Derivatives not designated as hedging instruments:
Natural gas contracts	Derivative liability	264		—
Natural gas contracts	Other long-term liabilities	12		—
Total undesignated		276		—
Total derivative liabilities		$	716	$	2,035

The following table presents the notional amount of derivatives on the Consolidated Balance Sheets:



		Notional Amounts
Derivative Types	Unit of Measure	December 31, 2017		December 31, 2016
Natural gas contracts	Millions of British Thermal Units (MMBTUs)	2,480,000		2,590,000
Interest rate swap	Thousands of U.S. dollars	$	220,000	$	220,000
Currency contracts	Thousands of Canadian dollars	C$	—	C$	—

The following table presents cash settlements (paid) received related to the below derivatives:



Year ended December 31, (dollars in thousands)	2017			2016			2015
Natural gas contracts	$	(47	)	$	(2,345	)	$	(4,567	)
Interest rate swap	(1,836		)	(2,244		)	—
Total	$	(1,883	)	$	(4,589	)	$	(4,567	)

The following table provides a summary of the impacts of derivative gain (loss) on the Consolidated Statements of Operations and other comprehensive income (OCI):



Year ended December 31, (dollars in thousands)	Location	2017			2016			2015
Cash flow hedges:
Effective portion of derivative gain (loss) recognized in OCI:
Natural gas contracts	OCI	$	(1,019	)	$	721		$	(1,909	)
Interest rate swap	OCI	733			(2,056		)	(2,378		)
Total		$	(286	)	$	(1,335	)	$	(4,287	)

Effective portion of derivative gain (loss) reclassified from accumulated OCI to current earnings:
Natural gas contracts	Cost of Sales	$	(45	)	$	(1,129	)	$	(2,131	)
Interest rate swap	Interest expense	(1,735		)	(2,399		)	—
Total		$	(1,780	)	$	(3,528	)	$	(2,131	)

Derivatives not designated as hedging instruments:
Gain (loss) recognized in current earnings:
Currency contracts	Other income (expense)	$	—		$	(245	)	$	(158	)
Natural gas contracts	Other income (expense)	(1,036		)	1,860			218
Total		$	(1,036	)	$	1,615		$	60

Natural Gas Contracts

We use natural gas swap contracts related to forecasted future North American natural gas requirements. The objective of these commodity contracts is to limit the fluctuations in prices paid due to price movements in the underlying commodity. We consider our forecasted natural gas requirements in determining the quantity of natural gas to hedge. We combine the forecasts with historical observations to establish the percentage of forecast eligible to be hedged, typically ranging from 40 percent to 70 percent of our anticipated requirements, up to eighteen months in the future. The fair values of these instruments are determined from market quotes.

Hedge accounting is applied only when the derivative is deemed to be highly effective at offsetting changes in fair values or anticipated cash flows of the hedged item or transaction. For hedged forecasted transactions, hedge accounting is discontinued if the forecasted transaction is no longer probable to occur, and any previously deferred gains or losses would be recorded to earnings immediately. Changes in the effective portion of the fair value of these hedges are recorded in other comprehensive income (loss). The ineffective portion of the change in the fair value of a derivative designated as a cash flow hedge is recognized in other income (expense). As the natural gas contracts mature, the accumulated gains (losses) for the respective contracts are reclassified from accumulated other comprehensive loss to current expense in cost of sales in our Consolidated Statements of Operations.

Since October 1, 2014, our derivatives for natural gas in Mexico have not been designated as cash flow hedges. All mark-to-market changes on these derivatives are reflected in other income (expense).

Based on our current valuation, we estimate that accumulated losses for natural gas currently carried in accumulated other comprehensive loss that will be reclassified into earnings over the next twelve months will result in $0.2 million of loss in our Consolidated Statements of Operations.

Interest Rate Swap as Cash Flow Hedge

On April 1, 2015, we executed an interest rate swap on our Term Loan B as part of our risk management strategy to mitigate the risks involved with fluctuating interest rates. The interest rate swap effectively converts $220.0 million of our Term Loan B debt from a variable interest rate to a 4.85 percent fixed interest rate, thus reducing the impact of interest rate changes on future income. The fixed rate swap became effective in January 2016 and expires in January 2020. This interest rate swap is valued using the market standard methodology of netting the discounted expected future variable cash receipts and the discounted future fixed cash payments. The variable cash receipts are based on an expectation of future interest rates derived from observed market interest rate forward curves.

Our interest rate swap qualifies and is designated as a cash flow hedge at December 31, 2017 and accounted for under FASB ASC 815 "Derivatives and Hedging". Hedge accounting is applied only when the derivative is deemed to be highly effective at offsetting changes in fair values or anticipated cash flows of the hedged item or transaction. For hedged forecasted transactions, hedge accounting 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, if any, of the change in the fair value of a derivative designated as a cash flow hedge is recognized in other income (expense). Based on our current valuation, we estimate that accumulated losses currently carried in accumulated other comprehensive loss that will be reclassified into earnings over the next twelve months will result in $0.2 million of additional interest expense in our Consolidated Statements of Operations.

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. From time to time, we enter into a series of foreign currency contracts to mitigate this exposure. 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.

Accumulated Other Comprehensive Income (Loss)

Accumulated Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income (loss) (AOCI), net of tax, is as follows:



(dollars in thousands)	Foreign Currency Translation			Derivative Instruments					Pension and Other Post-retirement Benefits				Total Accumulated Comprehensive Loss
Balance on December 31, 2014	$	(9,162	)	$	(625	)			$	(128,660	)		$	(138,447	)

Amounts recognized into AOCI	(13,751		)	(4,287		)			4,204				(13,834		)
Currency impact	—			—					4,233				4,233
Amounts reclassified from AOCI	—			2,357			⁽¹	⁾	31,312			⁽²⁾	33,669
Tax effect	—			695					(6,548		)		(5,853		)
Other comprehensive income (loss), net of tax	(13,751		)	(1,235		)			33,201				18,215
Balance on December 31, 2015	(22,913		)	(1,860		)			(95,459		)		(120,232		)

Amounts recognized into AOCI	(6,244		)	(1,335		)			(10,728		)		(18,307		)
Currency impact	—			—					1,271				1,271
Amounts reclassified from AOCI	—			3,528			⁽¹	⁾	5,452			⁽²⁾	8,980
Tax effect	1,329			(848		)			2,610				3,091
Other comprehensive income (loss), net of tax	(4,915		)	1,345					(1,395		)		(4,965		)
Balance on December 31, 2016	(27,828		)	(515		)			(96,854		)		(125,197		)

Amounts recognized into AOCI	12,835			(286		)			6,307				18,856
Currency impact	—			—					(152		)		(152		)
Amounts reclassified from AOCI	—			1,780			⁽¹	⁾	5,586			⁽²⁾	7,366
Tax effect	(1,190		)	(628		)			(4,227		)		(6,045		)
Other comprehensive income (loss), net of tax	11,645			866					7,514				20,025
Balance on December 31, 2017	$	(16,183	)	$	351				$	(89,340	)		$	(105,172	)

_________________________


⁽¹⁾	We reclassified natural gas contracts through cost of sales and the interest rate swap through interest expense on the Consolidated Statements of Operations. See note 12 for additional information.


⁽²⁾	We reclassified the net pension and non-pension post-retirement benefits amortization and settlement charges through cost of sales and selling, general and administrative expenses on the Consolidated Statements of Operations. See notes 8 and 9 for additional information.

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. The fair value hierarchy prioritizes the inputs used in measuring fair value into three broad levels as follows:


•	Level 1 — Quoted prices in active markets for identical assets or liabilities.


•	Level 2 — Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly.


•	Level 3 — Unobservable inputs based on our own assumptions.

The fair value of our derivative financial instruments by level is as follows:



	Fair Value at										Fair Value at
Asset / (Liability (dollars in thousands)	December 31, 2017										December 31, 2016
Asset / (Liability (dollars in thousands)	Level 1		Level 2			Level 3		Total			Level 1		Level 2			Level 3		Total
Commodity futures natural gas contracts	$	—	$	(503	)	$	—	$	(503	)	$	—	$	1,508		$	—	$	1,508
Interest rate swap	—		433			—		433			—		(2,035		)	—		(2,035		)
Net derivative asset (liability)	$	—	$	(70	)	$	—	$	(70	)	$	—	$	(527	)	$	—	$	(527	)

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

Financial instruments carried at cost on the Consolidated Balance Sheets, as well as the related fair values, are as follows:



		December 31, 2017				December 31, 2016
(dollars in thousands)	Fair Value Hierarchy Level	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Term Loan B	Level 2	$	384,600	$	370,178	$	409,000	$	412,068

The fair value of our Term Loan B has been calculated based on quoted market prices for the same or similar issues. The fair value of our other immaterial debt approximates carrying value at December 31, 2017 and 2016. The fair value of our cash and cash equivalents, accounts receivable and accounts payable approximate their carrying value due to their short term nature.

Operating Leases

Rental expense for all non-cancelable operating leases, primarily for warehouses, was $17.0 million, $17.6 million and $17.5 million for the years ended December 31, 2017, 2016 and 2015, respectively.

Future minimum rentals under operating leases are as follows (dollars in thousands):



2018	2019	2020	2021	2022	2023 and thereafter
$15,542	$13,593	$11,496	$8,028	$7,178	$24,675

Other Income (Expense)

Items included in other income (expense) in the Consolidated Statements of Operations are as follows:



Year ended December 31, (dollars in thousands)	2017			2016		2015
Gain (loss) on currency transactions	$	(2,788	)	$	775	$	2,641
Gain (loss) on mark-to-market natural gas contracts	(1,036		)	1,860		(714		)
Hedge ineffectiveness	—			—		932
Other non-operating income	309			727		21
Other income (expense)	$	(3,515	)	$	3,362	$	2,880

Contingencies

Legal Proceedings

From time to time, we are identified as a "potentially responsible party" (PRP) under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA) and/or similar state laws that impose liability without regard to fault for costs and damages relating to the investigation and clean-up of contamination resulting from releases or threatened releases of hazardous substances. We are also subject to similar laws in some of the countries where our facilities are located. Our environmental, health, and safety department monitors compliance with applicable laws on a global basis.

On October 30, 2009, the United States Environmental Protection Agency ("U.S. EPA") designated Syracuse China Company ("Syracuse China"), our wholly-owned subsidiary, as one of eight PRPs with respect to the Lower Ley Creek sub-site of the Onondaga Lake Superfund site located near the ceramic dinnerware manufacturing facility that Syracuse China operated from 1995 to 2009 in Syracuse, New York. As a PRP, we may be required to pay a share of the costs of investigation and remediation of the Lower Ley Creek sub-site.

U.S. EPA has completed its Remedial Investigation (RI), Feasibility Study (FS), Risk Assessment (RA) and Proposed Remedial Action Plan (PRAP). U.S. EPA issued its Record of Decision (RoD) on September 30, 2014. The RoD indicates that U.S. EPA's estimate of the undiscounted cost of remediation ranges between approximately $17.0 million (assuming local disposal of contaminated sediments is feasible) and approximately $24.8 million (assuming local disposal is not feasible). However, the RoD acknowledges that the final cost of the cleanup will depend upon the actual volume of contaminated material, the degree to which it is contaminated, and where the excavated soil and sediment is properly disposed. In connection with the General Motors Corporation bankruptcy, U.S. EPA recovered $22.0 million from Motors Liquidation Company (MLC), the successor to General Motors Corporation. If the cleanup costs do not exceed the amount recovered by U.S. EPA from MLC, Syracuse China may suffer no loss. If and to the extent the cleanup costs exceed the amount recovered by U.S. EPA from MLC, it is not yet known whether other PRPs will be added to the current group of PRPs or how any excess costs may be allocated among the PRPs.

On March 3, 2015, the EPA issued to the PRPs notices and requests to negotiate performance of the remedial design (RD), work. The notices contemplate that any agreement to perform the RD work would be memorialized in an Administrative Order on Consent (AOC). On July 14, 2016, the PRPs entered into an AOC to perform the RD work. The EPA and PRPs anticipate that the RD work will produce additional information from which the feasibility of a local disposal option and the cleanup costs can be better determined. The EPA has declined to advance the GM Settlement Funds for the RD work, instead conditioning use of those funds to reimburse for the RD work upon the successful completion of the RD work and the finalization of an AOC to perform the remedial action work.

To the extent that Syracuse China has a liability with respect to the Lower Ley Creek sub-site, including without limitation costs to fund the RD work, and to the extent the liability arose prior to our 1995 acquisition of the Syracuse China assets, the liability would be subject to the indemnification provisions contained in the Asset Purchase Agreement between the Company and The Pfaltzgraff Co. (now known as TPC-York, Inc. ("TPC York")) and certain of its subsidiaries. Accordingly, Syracuse China has notified TPC York of its claim for indemnification under the Asset Purchase Agreement.

In connection with the above proceedings, an estimated environmental liability of $0.8 million and a recoverable amount of $0.4 million in other assets have been recorded in the Consolidated Balance Sheet at December 31, 2017. An estimated liability of $0.9 million and a recoverable amount of $0.5 million in other assets have been recorded in the Consolidated Balance Sheet at December 31, 2016. Immaterial amounts have been recorded in cost of sales in the Consolidated Statements of Operations for the years ended December 31, 2017 and 2016, and $0.2 million was recorded for the year ended December 31, 2015. Although we cannot predict the ultimate outcome of this proceeding, we believe that it will not have a material adverse impact on our financial condition, results of operations or liquidity.

Income Taxes

The Company and its subsidiaries are subject to examination by various countries' tax authorities. These examinations may lead to proposed or assessed adjustments to our taxes. Please refer to note 7, Income Taxes, for a detailed discussion on tax contingencies.

Segments and Geographic Information

Our reporting segments align with our regionally focused organizational structure, which we believe enables us to better serve customers across the globe. Under this structure, we report financial results for U.S. and Canada; Latin America; Europe, the Middle East and Africa (EMEA); and Other. Segment results are based primarily on the geographical destination of the sale. In the first quarter of 2017, net sales and related costs for certain countries were reclassified between segments to align with changes in business unit responsibilities. Accordingly, 2016 and 2015 segment results have been reclassified to conform with the revised structure. The revised segment results do not affect any previously reported consolidated financial results. Our three reportable segments are defined below. Our operating segment that does not meet the criteria to be a reportable segment is disclosed as Other.

U.S. & Canada—includes sales of manufactured and sourced tableware having an end-market destination in the U.S and Canada, excluding glass products for Original Equipment Manufacturers (OEM), which remain in the Latin America segment.

Latin America—includes primarily sales of manufactured and sourced glass tableware having an end-market destination in Latin America, as well as glass products for OEMs regardless of end-market destination.

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

Other—includes primarily sales of manufactured and sourced glass tableware having an end-market destination in Asia Pacific.

Our measure of profit for our reportable segments is Segment Earnings before Interest and Taxes (Segment EBIT) and excludes amounts related to certain items we consider not representative of ongoing operations as well as certain retained corporate costs and other allocations that are not considered by management when evaluating performance. Segment EBIT also includes an allocation of manufacturing costs for inventory produced at a Libbey facility that is located in a region other than the end market in which the inventory is sold. This allocation can fluctuate from year to year based on the relative demands for products produced in regions other than the end markets in which they are sold. As the gain (loss) on mark-to-market natural gas contracts is considered representative of our ongoing operations, it is included in Segment EBIT in 2017; the derivative amounts originally excluded from Segment EBIT in prior years have been reclassified and included in Segment EBIT to conform to the current year presentation. 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. It is impracticable to provide revenue by product categories.



Year ended December 31, (dollars in thousands)	2017			2016			2015
Net Sales:
U.S. & Canada	$	481,797		$	482,296		$	492,051
Latin America	144,322			151,389			167,069
EMEA	126,924			126,591			129,549
Other	28,785			33,144			33,676
Consolidated	$	781,828		$	793,420		$	822,345

Segment EBIT:
U.S. & Canada	$	48,044		$	75,449		$	78,144
Latin America	6,590			12,583			22,235
EMEA	1,321			1,387			3,289
Other	(3,838		)	1,001			4,614
Total Segment EBIT	$	52,117		$	90,420		$	108,282

Reconciliation of Segment EBIT to Net Income (Loss):
Segment EBIT	$	52,117		$	90,420		$	108,282
Retained corporate costs	(27,099		)	(27,265		)	(34,645		)
Goodwill impairment (note 4)	(79,700		)	—			—
Pension settlement charges (note 8)	—			(168		)	(21,693		)
Environmental obligation (note 17)	—			—			(157		)
Reorganization charges	(2,488		)	—			(4,316		)
Product portfolio optimization⁽¹⁾	—			(5,693		)	—
Work stoppage ⁽²⁾	—			(4,162		)	—
Executive terminations	—			(4,460		)	(870		)
Interest expense	(20,400		)	(20,888		)	(18,484		)
(Provision) benefit for income taxes	(15,798		)	(17,711		)	38,216
Net income (loss)	$	(93,368	)	$	10,073		$	66,333

Depreciation & Amortization:
U.S. & Canada	$	12,665		$	12,748		$	12,214
Latin America	18,576			19,068			14,738
EMEA	7,377			9,377			8,510
Other	5,088			5,588			5,855
Corporate	1,838			1,705			1,395
Consolidated	$	45,544		$	48,486		$	42,712

Capital Expenditures:
U.S. & Canada	$	10,056		$	10,671		$	25,106
Latin America	18,520			11,032			11,944
EMEA	17,158			7,571			6,773
Other	1,226			2,905			1,855
Corporate	668			2,425			2,458
Consolidated	$	47,628		$	34,604		$	48,136

______________________________

⁽¹⁾Product portfolio optimization relates to inventory reductions to simplify and improve our operations.

⁽²⁾ Work stoppage relates to the lower production volume impact, shipping costs and other direct incremental expenses associated with the two-week Toledo, Ohio work stoppage in the fourth quarter of 2016.



December 31, (dollars in thousands)	2017		2016		2015
Segment Assets⁽¹⁾:
U.S. & Canada	$	147,809	$	130,390	$	140,840
Latin America	63,093		63,838		68,599
EMEA	48,270		44,588		48,924
Other	18,711		16,306		14,043
Consolidated	$	277,883	$	255,122	$	272,406

______________________________

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

Geographic data for the U.S., Mexico and Other countries for 2017, 2016 and 2015 is presented below. Net sales are based on the geographical destination of the sale. The long-lived assets include net property, plant and equipment.



(dollars in thousands)	United States		Mexico		All Other		Consolidated
2017
Net sales	$	479,018	$	93,370	$	209,440	$	781,828
Long-lived assets	$	89,838	$	87,836	$	88,001	$	265,675

2016
Net sales	$	478,342	$	100,829	$	214,249	$	793,420
Long-lived assets	$	91,834	$	89,963	$	74,595	$	256,392

2015
Net sales	$	488,582	$	107,386	$	226,377	$	822,345
Long-lived assets	$	94,206	$	93,573	$	84,755	$	272,534

Schedule II -- Valuation and Qualifying Accounts (Consolidated)

Schedule II -- Valuation and Qualifying Accounts

Years ended December 31, 2017, 2016 and 2015



(dollars in thousands)	Allowance for Doubtful Accounts & Discounts				Valuation Allowance for Deferred Tax Asset

Balance at December 31, 2014	$	5,586			$	66,486
Charged to expense or other accounts	2,719				6,093
Deductions	(1,239		)	⁽¹⁾	(61,395		)	⁽²⁾
Balance at December 31, 2015	7,066				11,184
Charged to expense or other accounts	1,118				2,589
Deductions	(352		)	⁽¹⁾	—			⁽²⁾
Balance at December 31, 2016	7,832				13,773
Charged to expense or other accounts	1,291				5,303
Deductions	(72		)	⁽¹⁾	—			⁽²⁾
Balance at December 31, 2017	$	9,051			$	19,076

_________________

⁽¹⁾ Uncollectible accounts written off, net of recoveries.

⁽²⁾ The net decrease in valuation allowance is primarily a result of net changes in cumulative book/tax timing differences and, with respect to activity for the year ended December 31, 2015, changes in judgment regarding the realizability of U.S. deferred tax assets.

Significant Accounting Policies (Policies)

Basis of Presentation

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

Revenue Recognition

Revenue Recognition Revenue is recognized 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. We estimate returns, discounts and incentives at the time of sale based on the terms of the agreements, historical experience and forecasted sales. We continually evaluate the adequacy of these methods used to estimate returns, discounts and incentives. Taxes collected from customers are excluded from revenues and credited directly to obligations to the appropriate governmental agencies.

Cost of Sales

Cost of Sales Cost of sales includes cost to manufacture and/or purchase products, warehouse, shipping and delivery costs and other costs.

Cash and Cash Equivalents

Cash and Cash Equivalents We consider all highly liquid investments purchased with an original or remaining maturity of less than three months at the date of purchase to be cash equivalents. Cash and cash equivalents are maintained with various financial institutions.

Accounts Receivable and Allowance for Doubtful Accounts

Accounts Receivable and Allowance for Doubtful Accounts We record trade receivables when revenue is recorded in accordance with our revenue recognition policy and relieve accounts receivable when payments are received from customers. The allowance for doubtful accounts is established through charges to the provision for bad debts. We regularly evaluate the adequacy of the allowance for doubtful accounts based on historical trends in collections and write-offs, our judgment as to the probability of collecting accounts and our evaluation of business risk. This evaluation is inherently subjective, as it requires estimates that are susceptible to revision as more information becomes available. Accounts are determined to be uncollectible when the debt is deemed to be worthless or only recoverable in part and are written off at that time through a charge against the allowance. Generally, we do not require collateral on our accounts receivable.

Inventory Valuation

Inventory Valuation Inventories are valued at the lower of cost or market. The last-in, first-out (LIFO) method is used for our U.S. glass inventories, which represented 32.2 percent and 29.1 percent of our total inventories in 2017 and 2016, respectively. The remaining inventories are valued using either the first-in, first-out (FIFO) or average cost method. For those inventories valued on the LIFO method, the excess of FIFO cost over LIFO, was $13.4 million and $12.9 million in 2017 and 2016, respectively. Cost includes the cost of materials, direct labor, in-bound freight and the applicable share of manufacturing overhead.

Goodwill and Intangible Assets

Purchased Intangible Assets and Goodwill Financial Accounting Standards Board Accounting Standards Codification™ ("FASB ASC") Topic 350 - "Intangibles-Goodwill and other" ("FASB ASC 350") requires goodwill and purchased indefinite life intangible assets to be reviewed for impairment annually, or more frequently if impairment indicators arise. Intangible assets with lives restricted by contractual, legal or other means will continue to be amortized over their useful lives. As of October 1^st of each year, we update our separate impairment evaluations for both goodwill and indefinite life intangible assets.

Software

Software We account for software in accordance with FASB ASC 350. Software represents the costs of internally developed and/or purchased software for internal use. Capitalized costs include software packages, installation and internal labor costs of employees devoted to the software development project. Costs incurred to modify existing software, providing significant enhancements and creating additional functionality are also capitalized. Once a project is complete, we estimate the useful life of the internal-use software, generally amortizing these costs over a five-year period.

Property, Plant and Equipment

Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally 3 to 14 years for equipment and furnishings and 10 to 40 years for buildings and improvements. Maintenance and repairs are expensed as incurred.

Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Measurement of an impairment loss for long-lived assets that we expect to hold and use is based on the fair value of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell.

Self-Insurance Reserves

Self-Insurance Reserves Self-insurance reserves reflect the estimated liability for group health and workers' compensation claims not covered by third-party insurance. We accrue estimated losses based on actuarial models and assumptions as well as our historical loss experience. Workers' compensation accruals are recorded at the estimated ultimate payout amounts based on individual case estimates. In addition, we record estimates of incurred-but-not-reported losses based on actuarial models.

Pension and Non-pension Post-retirement Benefits

Pension and Non-pension Post-retirement Benefits We account for pension and non-pension post-retirement benefits in accordance with FASB ASC Topic 715 - "Compensation-Retirement Benefits" ("FASB ASC 715"). FASB ASC 715 requires recognition of the over-funded or under-funded status of pension and other post-retirement benefit plans on the balance sheet. Under FASB ASC 715, gains and losses, prior service costs and credits and any remaining prior transaction amounts that have not yet been recognized through net periodic benefit cost are recognized in accumulated other comprehensive loss, net of tax effect where appropriate.

The U.S. pension plans cover most hourly U.S.-based employees (excluding new hires at Shreveport after December 15, 2008 and at Toledo after September 30, 2010) and those salaried U.S.-based employees hired before January 1, 2006. 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 Mexico and the Netherlands (until December 2015). In December 2015, we unwound direct ownership of our defined benefit pension plan in the Netherlands. For further discussion see note 8.

We also provide certain post-retirement healthcare and life insurance benefits covering substantially all U.S. and Canadian salaried employees hired before January 1, 2004 and a majority of our union hourly employees (excluding employees hired at Shreveport after December 15, 2008 and at Toledo after September 30, 2010). Employees are generally eligible for benefits upon reaching a certain age and completion of a specified number of years of creditable service. Benefits for most hourly retirees are determined by collective bargaining. Under a cross-indemnity agreement, Owens-Illinois, Inc. assumed liability for the non-pension post-retirement benefit of our retirees who had retired as of June 24, 1993. Therefore, the benefits related to these retirees are not included in our liability.

Income Taxes

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. FASB ASC Topic 740, “Income Taxes,” requires that a valuation allowance be recorded when it is more likely than not that some portion or all of the deferred income tax assets will not be realized. Deferred income tax assets and liabilities are determined separately for each tax paying component in which we conduct our operations or otherwise incur taxable income or losses.

In assessing the need for a valuation allowance, management considers whether it is more likely than not that some portion or all of the deferred income tax assets will be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income (including reversals of deferred income tax liabilities) during the periods in which those deductible temporary differences reverse. As a result, we consider the historical and projected financial results of the tax paying component recording the net deferred income tax asset as well as all other 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 and whether there were unusual, infrequent, or extraordinary items to be considered. We currently have a valuation allowance in place on our deferred income tax assets in the Netherlands. We intend to maintain this allowance until a period of sustainable income is achieved and management concludes it is more likely than not that those deferred income tax assets will be realized.

As of December 31, 2015, management considered the evidence, both positive and negative, in assessing the realizability of our deferred tax assets in the U.S. The positive evidence, including achievement of cumulative income in recent years and expectations for sustainable future income, was strong enough to conclude that it is more likely than not that nearly all of our deferred tax assets are realizable and the valuation allowance was reduced accordingly. In order to fully realize our deferred tax assets as of December 31, 2017 in the U.S., the Company needs to generate approximately $154.6 million of future taxable income.

Our European operations in the Netherlands incurred an operating loss in 2017, continue to be in cumulative loss positions in recent years, and have a history of tax loss carryforwards expiring unused. In addition, European economic conditions continue to be unfavorable. Accordingly, management believes it is not more likely than not that the net deferred tax assets related to these operations will be realized and a valuation allowance continues to be recorded as of December 31, 2017. The Netherlands operation added a new furnace in 2017 that achieves a much higher level of energy efficiency than the furnaces it replaced. Management is optimistic that this new furnace technology will significantly improve the profitability of the Netherlands operation. Thus, it is reasonably possible that the valuation allowance against the net operating loss deferred tax asset could be reduced within the next year.

We are subject to income taxes in the U.S. and various foreign jurisdictions. Management judgment is required in evaluating our tax positions and determining our provision for income taxes. Throughout the course of business, there are numerous transactions and calculations for which the ultimate tax determination is uncertain. When management believes uncertain tax positions may be challenged despite our belief that the tax return positions are supportable, we record unrecognized tax benefits as liabilities in accordance with the requirements of ASC 740. When our judgment with respect to these uncertain tax positions changes as a result of a change in facts and circumstances, such as the outcome of a tax audit, we adjust these liabilities through increases or decreases to the income tax provision.

Derivatives

Derivatives We account for derivatives in accordance with FASB ASC Topic 815 "Derivatives and Hedging" ("FASB ASC 815"). We hold derivative financial instruments to hedge certain of our interest rate risks associated with long-term debt, commodity price risks associated with forecasted future natural gas requirements and foreign exchange rate risks associated with occasional transactions denominated in a currency other than the U.S. dollar. These derivatives (except for the foreign currency contracts and natural gas hedges in Mexico) 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 earnings. Cash flows from hedges of debt, short-term forward exchange contracts, currency swaps, interest rate swaps and natural gas contracts are classified as operating activities.

Environmental

Environmental In accordance with U.S. GAAP accounting standards, we recognize environmental clean-up liabilities on an undiscounted basis when loss is probable and can be reasonably estimated. The cost of the clean-up is estimated by financial and legal specialists based on current law. Such estimates are based primarily upon the estimated cost of investigation and remediation required, and the likelihood that, where applicable, other potentially responsible parties will not be able to fulfill their commitments at the sites where the Company may be jointly and severally liable.

Foreign Currency Translation

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).

Stock-Based Compensation Expense

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

Treasury Stock

Treasury Stock Treasury Stock purchases are recorded at cost.

Research and Development

Research and Development Research and development costs are charged to selling, general and administrative expense in the Consolidated Statements of Operations when incurred.

Advertising Costs

Advertising Costs We expense all advertising costs as incurred.

Computation of Income Per Share of Common Stock

Computation of Income (Loss) Per Share of Common Stock Basic net income (loss) per share of common stock is computed using the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per share of common stock is computed using the weighted average number of shares of common stock outstanding and dilutive potential common share equivalents during the period.

When applicable, diluted shares outstanding include the dilutive impact of restricted stock units. Diluted shares also include the impact of eligible employee stock options, which are calculated based on the average share price for each fiscal period using the treasury stock method. As part of the adoption of ASU 2016-09 as of January 1, 2017, anticipated tax windfalls and shortfalls are no longer included in the calculation of assumed proceeds when applying the treasury stock method.

Reclassifications

Reclassifications Certain amounts in prior years' financial statements have been reclassified to conform to the presentation used in the year ended December 31, 2017

Indefinite Life Intangible Assets

Indefinite life intangible assets are composed of trade names and trademarks that have an indefinite life and are therefore individually tested for impairment on an annual basis, or more frequently in certain circumstances where impairment indicators arise, in accordance with FASB ASC 350. Our measurement date for impairment testing is October 1^st of each year. When performing our test for impairment of individual indefinite life intangible assets, we use a relief from royalty method to determine the fair market value that is compared to the carrying value of the indefinite life intangible asset. The inputs used for this analysis are considered Level 3 inputs in the fair value hierarchy.

Goodwill

When performing our test for impairment, we measure each reporting unit's fair value using a combination of "income" and "market" approaches on a shipping point basis. The income approach calculates the fair value of the reporting unit based on a discounted cash flow analysis, incorporating the weighted average cost of capital of a hypothetical third-party buyer. Significant estimates in the income approach include the following: discount rate; expected financial outlook and profitability of the reporting unit's business; and foreign currency impacts (Level 3 inputs). Discount rates use the weighted average cost of capital for companies within our peer group, adjusted for specific company risk premium factors. The market approach uses the "Guideline Company" method, which calculates the fair value of the reporting unit based on a comparison of the reporting unit to comparable publicly traded companies. Significant estimates in the market approach model include identifying similar companies with comparable business factors such as size, growth, profitability, risk and return on investment, assessing comparable multiples, as well as consideration of control premiums (Level 2 inputs). The blended approach assigns a 70 percent weighting to the income approach and 30 percent to the market approach (Level 3 input). The higher weighting is given to the income approach due to some limitations of publicly available peer information used in the market approach. The blended fair value of both approaches is then compared to the carrying value, and to the extent that fair value exceeds the carrying value, no impairment exists. However, to the extent the carrying value exceeds the fair value, an impairment is recorded.

Goodwill impairment tests are completed for each reporting unit on an annual basis, or more frequently in certain circumstances where impairment indicators arise. The inputs used for this analysis are considered Level 2 and Level 3 inputs in the fair value hierarchy.

Pensions

Our investment strategy is to control and manage investment risk through diversification across asset classes and investment styles, within established target asset allocation ranges. The investment risk of the assets is limited by appropriate diversification both within and between asset classes. Assets are diversified among a mix of traditional investments in equity and fixed income instruments, as well as alternative investments including real estate and hedge funds. It would be anticipated that a modest allocation to short-term investments would exist within the plans, since each investment manager is likely to hold some short-term investments in the portfolio with the goal of ensuring that sufficient liquidity will be available to meet expected cash flow requirements.

Our investment valuation policy is to state the investments at fair value. All investments are valued at their respective net asset value (NAV) as a practical expedient and calculated by the Trustee, except for certain hedge fund investments valued at NAV. The real estate, equity securities and fixed income investments are held in a Group Trust which is valued at the unit prices established by the Trustee and are valued using NAV as a practical expedient. Underlying equity securities (including large and small cap domestic and international equities), for which market quotations are readily available, are valued at the last reported readily available sales price on their principal exchange on the valuation date or official close for certain markets. Fixed income investments are valued on a basis of valuations furnished by a trustee-approved pricing service, which determines valuations for normal institutional-size trading units of such securities which are generally recognized at fair value as determined in good faith by the Trustee. The fair value of investments in real estate funds is based on valuation of the fund as determined by periodic appraisals of the underlying investments owned by the respective fund. Investments in registered investment companies are valued at quoted market prices. Collective pooled funds, if any, are recorded using NAV practical expedients. Short-term investments are valued at their respective NAV and have no redemption restrictions. The hedge fund investments using NAV as a practical expedient are valued by using estimated month-end NAV and performance numbers provided by the fund administrator. The Plan is required to provide a month’s advance written notice to liquidate its entire share in the Group Trust. Certain investments in the hedge funds can only be liquidated on either a quarterly or semi-annual basis, require advance notification and are subject to audit holdback provisions.

We have pension plans covering the majority of our employees. Benefits generally are based on compensation and service for salaried employees and job grade and length of service for hourly employees. In addition, we have an unfunded supplemental employee retirement plan (SERP) that covers 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 December 15, 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 Mexico and the Netherlands (through 2015). The plans in Mexico are unfunded.

The discount rate enables us to estimate the present value of expected future cash flows on the measurement date. The rate used reflects a rate of return on high-quality fixed income investments that match the duration of expected benefit payments at our December 31 measurement date. The discount rate at December 31 is used to measure the year-end benefit obligations and the earnings effects for the subsequent year. A higher discount rate decreases the present value of benefit obligations and decreases pension expense.

To determine the expected long-term rate of return on plan assets for our funded plans, we consider the current and expected asset allocations, as well as historical and expected returns on various categories of plan assets. The expected long-term rate of return on plan assets at December 31^st is used to measure the earnings effects for the subsequent year.

Future benefits are assumed to increase in a manner consistent with past experience of the plans except for the Libbey U.S. Salaried Pension Plan and SERP as discussed above, which, to the extent benefits are based on compensation, includes assumed compensation increases as presented above. Amortization included in net pension expense is based on the average remaining service of employees.

We account for our defined benefit pension plans on an expense basis that reflects actuarial funding methods. The actuarial valuations require significant estimates and assumptions to be made by management, primarily with respect to the discount rate and expected long-term return on plan assets. These assumptions are all susceptible to changes in market conditions. The discount rate is based on a selected settlement portfolio from a universe of high quality bonds. In determining the expected long-term rate of return on plan assets, we consider historical market and portfolio rates of return, asset allocations and expectations of future rates of return. We evaluate these critical assumptions on our annual measurement date of December 31^st. Other assumptions involving demographic factors such as retirement age, mortality and turnover are evaluated periodically and are updated to reflect our experience. Actual results in any given year often will differ from actuarial assumptions because of demographic, economic and other factors.

Non-pension Post-retirement Benefits

We provide certain retiree healthcare and life insurance benefits covering our U.S. and Canadian salaried employees hired before January 1, 2004 and a majority of our union hourly employees (excluding employees hired at Shreveport after December 15, 2008 and at Toledo after September 30, 2010). Employees are generally eligible for benefits upon retirement and completion of a specified number of years of creditable service. Benefits for most hourly retirees are determined by collective bargaining. The U.S. non-pension, post-retirement plans cover the hourly and salaried U.S.-based employees of Libbey (excluding those mentioned above). The non-U.S., non-pension, post-retirement plans cover the retirees and active employees of Libbey who are located in Canada. The post-retirement benefit plans are unfunded.

Fair Value

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

Segment Reporting

Our measure of profit for our reportable segments is Segment Earnings before Interest and Taxes (Segment EBIT) and excludes amounts related to certain items we consider not representative of ongoing operations as well as certain retained corporate costs and other allocations that are not considered by management when evaluating performance. Segment EBIT also includes an allocation of manufacturing costs for inventory produced at a Libbey facility that is located in a region other than the end market in which the inventory is sold. This allocation can fluctuate from year to year based on the relative demands for products produced in regions other than the end markets in which they are sold. As the gain (loss) on mark-to-market natural gas contracts is considered representative of our ongoing operations, it is included in Segment EBIT in 2017; the derivative amounts originally excluded from Segment EBIT in prior years have been reclassified and included in Segment EBIT to conform to the current year presentation. 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.

New Accounting Standards

New Accounting Standards - Adopted

In March 2016, the FASB issued ASU 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting." Areas for simplification in this update involve several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for interim and annual reporting periods beginning after December 15, 2016. We adopted the new guidance on January 1, 2017, requiring us to recognize all excess tax benefits and tax deficiencies related to stock compensation as income tax expense or benefit in the income statement. Excess tax benefits will be recognized regardless of whether the benefit reduces taxes payable in the current period, subject to normal valuation allowance considerations. Previous guidance resulted in credits to equity for such tax benefits and delayed recognition until the tax benefits reduced income taxes payable. This provision in the standard was applied using a modified retrospective transition method by means of a cumulative-effect adjustment to equity as of the beginning of the year of adoption. As of January 1, 2017, we recorded a $2.3 million reduction to our retained deficit and an increase in deferred income tax assets. In addition, on the modified retrospective basis, we have elected to discontinue estimating forfeitures expected to occur when determining the amount of compensation expense to be recognized in each period, resulting in an immaterial impact to our retained deficit and capital in excess of par. We do not anticipate this change will have a material impact on our future results of operations. The presentation requirements for cash flows under the new standard were adopted on a retrospective basis, resulting in a reclassification on the Consolidated Statements of Cash Flows that increased cash provided by operating activities and increased cash used in financing activities for the years ended December 31, 2016 and 2015.

In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment." ASU 2017-04 simplifies the goodwill impairment testing by eliminating Step 2 from the goodwill impairment testing that is required should an impairment be discovered during its annual or interim assessment. ASU 2017-04 is effective for annual or interim impairment tests beginning after December 15, 2019, with early adoption permitted. We adopted this standard early in conjunction with our assessment performed at September 30, 2017; this is considered a change in accounting principle. This standard decreases the cost and complexity in applying current GAAP without significantly changing the usefulness of the information provided to users of our Consolidated Financial Statements.

New Accounting Standards - Not Yet Adopted

Each change to U.S. GAAP is established by the Financial Accounting Standards Board (FASB) in the form of an accounting standards update (ASU) to the FASB’s Accounting Standards Codification (ASC). We consider the applicability and impact of all ASUs. ASUs not listed below were assessed and either were determined to be not applicable or are expected to have minimal impact on the Company’s Consolidated Financial Statements.

In May 2014, the FASB issued ASU 2014-09, "Revenue From Contracts With Customers", as amended by ASU's 2015-14, 2016-08, 2016-10, 2016-11, 2016-12, 2016-20 and 2017-05, which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. ASU 2014-09 is based on the principle that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also requires disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to fulfill a contract. This update is effective for interim and annual reporting periods beginning after December 15, 2017. We plan to adopt this standard in the first quarter of 2018 using the modified retrospective method, whereby the cumulative effect of applying the standard is recognized at the date of initial application. We have completed our evaluation of significant contracts and the review of our current accounting policies and practices to identify potential differences that would result from applying the requirements of ASU 2014-09 to our revenue contracts. In addition, we have identified and implemented, appropriate changes to business processes, systems and controls to support recognition and disclosure under the new standard. While we are still assessing the enhanced disclosure requirements of the new guidance, we have determined that we will further disaggregate our revenue, presenting revenue by business channel. Based on the foregoing, we do not expect the adoption of ASU 2014-09 to have a material impact on the amount and timing of revenue recognized in our Consolidated Financial Statements.

In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)," which requires a lessee to recognize on the balance sheet, assets and liabilities for leases with lease terms of more than 12 months. Leases will be classified as either finance or operating leases, with classification affecting the pattern of expense recognition in the income statement. The new guidance also clarifies the definition of a lease and disclosure requirements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, with early application permitted. Lessees and lessors must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach does not require any transition accounting for leases that expired before the earliest comparative period presented. We are currently evaluating the impact of this guidance on our financial statements and related disclosures, including the increase in the assets and liabilities on our balance sheet. To facilitate this, we are utilizing a comprehensive approach to review our lease portfolio, have selected a system for managing our leases, and will perform the system implementation and update our controls accordingly in 2018. See note 15, Operating Leases, for our minimum lease commitments under non-cancellable operating leases.

In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." This standard introduces a new approach to estimating credit losses on certain types of financial instruments, including trade receivables, and modifies the impairment model for available-for-sale debt securities. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early application permitted. We are currently assessing the impact that this standard will have on our Consolidated Financial Statements.

In March 2017, the FASB issued ASU 2017-07, "Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost." ASU 2017-07 requires that only the service cost component of pension and post-retirement benefit costs be reported within income from operations. The other components of net benefit cost are required to be presented in the income statement outside of income from operations, if presented. In addition, this ASU allows only the service cost component to be eligible for capitalization when applicable. ASU 2017-07 is effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted. Presentation on the Consolidated Statements of Operations will be retrospective and any impact to capitalized costs will be prospectively adopted. We will adopt this standard in the first quarter of 2018 and expect the impact to be reclassifications of applicable costs and credits from income from operations to other income (expense).

In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities." ASU 2017-12 amends the hedge accounting rules to simplify the application of hedge accounting guidance and better portray the economic results of risk management activities in the financial statements. The guidance expands the ability to hedge nonfinancial and financial risk components, reduces complexity in fair value hedges of interest rate risk, eliminates the requirement to separately measure and report hedge ineffectiveness, and eases certain hedge effectiveness assessment requirements. ASU 2017-12 is effective for annual and interim reporting periods beginning after December 15, 2018, with early adoption permitted. We are currently evaluating the impact of this guidance, including transition elections and required disclosures, on our financial statements and the timing of adoption.

Balance Sheet Details (Tables)

Schedule of Other Assets and Other Liabilities [Table Text Block]

The following table provides detail of selected balance sheet items:



December 31, (dollars in thousands)	2017		2016
Accounts receivable:
Trade receivables	$	88,786	$	82,851
Other receivables	1,211		2,262
Total accounts receivable, less allowances of $9,051 and $7,832	$	89,997	$	85,113

Inventories:
Finished goods	$	170,774	$	152,261
Work in process	1,485		1,625
Raw materials	3,906		4,432
Repair parts	10,240		10,558
Operating supplies	1,481		1,133
Total inventories, less loss provisions of $10,308 and $9,484	$	187,886	$	170,009

Accrued liabilities:
Accrued incentives	$	19,728	$	19,771
Other accrued liabilities	23,495		22,036
Total accrued liabilities	$	43,223	$	41,807

Purchased Intangible Assets and Goodwill (Tables)

Changes in Purchased Intangibles

Changes in purchased intangibles balances are as follows:



(dollars in thousands)	2017			2016
Beginning balance	$	15,225		$	16,364
Amortization	(1,073		)	(1,039		)
Foreign currency impact	413			(100		)
Ending balance	$	14,565		$	15,225

Composition of Purchased Intangible Assets

Purchased intangible assets are composed of the following:



December 31, (dollars in thousands)	2017		2016
Indefinite life intangible assets	$	12,120	$	11,888
Definite life intangible assets, net of accumulated amortization of $19,093 and $17,706	2,445		3,337
Total	$	14,565	$	15,225

Future Estimated Amortization Expense of Definite Life Intangible Assets

Future estimated amortization expense of definite life intangible assets is as follows (dollars in thousands):



2018	2019	2020	2021	2022
$1,051	$571	$165	$165	$165

Changes in Goodwill

Changes in goodwill balances are as follows:



	2017									2016
(dollars in thousands)	U.S. & Canada			Latin America			Total			U.S. & Canada			Latin America		Total
Beginning balance:
Goodwill	$	43,872		$	125,681		$	169,553		$	43,872		$	125,681	$	169,553
Accumulated impairment losses	(5,441		)	—			(5,441		)	(5,441		)	—		(5,441		)
Net beginning balance	38,431			125,681			164,112			38,431			125,681		164,112
Impairment	—			(79,700		)	(79,700		)	—			—		—
Ending balance:
Goodwill	43,872			125,681			169,553			43,872			125,681		169,553
Accumulated impairment losses	(5,441		)	(79,700		)	(85,141		)	(5,441		)	—		(5,441		)
Net ending balance	$	38,431		$	45,981		$	84,412		$	38,431		$	125,681	$	164,112

Property, Plant and Equipment (Tables)

Property, Plant and Equipment

Property, plant and equipment consists of the following:



December 31, (dollars in thousands)	2017		2016
Land	$	20,859	$	19,524
Buildings	107,659		102,666
Machinery and equipment	505,978		473,004
Furniture and fixtures	15,391		14,208
Software	24,464		22,733
Construction in progress	12,933		16,113
Gross property, plant and equipment	687,284		648,248
Less accumulated depreciation	421,609		391,856
Net property, plant and equipment	$	265,675	$	256,392

Borrowings (Tables)

Schedule of Borrowings

Borrowings consist of the following:



December 31, (dollars in thousands)	Interest Rate		Maturity Date	2017		2016
Borrowings under ABL Facility	floating		December 7, 2022 ⁽¹⁾	$	—	$	—
Term Loan B	floating	⁽²⁾	April 9, 2021	384,600		409,000
AICEP Loan	0.00%		July 30, 2018	3,085		3,320
Total borrowings				387,685		412,320
Less — unamortized discount and finance fees				3,295		4,480
Total borrowings — net				384,390		407,840
Less — long term debt due within one year				7,485		5,009
Total long-term portion of borrowings — net				$	376,905	$	402,831

___________________________

⁽¹⁾ Maturity date will be January 9, 2021 if Term Loan B is not refinanced by this date.

⁽²⁾ See interest rate swap under "Term Loan B" below and note 12.

Schedule of Annual Maturities of Borrowings

Annual maturities for all of our total borrowings for the next five years and beyond are as follows:



2018	2019	2020	2021	2022	Thereafter
$7,485	$4,400	$4,400	$371,400	$—	$—

Income Taxes (Tables)

Components of Income (Loss) before Income Taxes, Domestic and Foreign

The provisions for income taxes were calculated based on the following components of income (loss) before income taxes:



Year ended December 31, (dollars in thousands)	2017			2016			2015
United States	$	(65,224	)	$	29,742		$	27,146
Non-U.S.	(12,346		)	(1,958		)	971
Total income before income taxes	$	(77,570	)	$	27,784		$	28,117

Current and Deferred Provisions (Benefit) for Income Taxes

The current and deferred provisions (benefit) for income taxes were:



Year ended December 31, (dollars in thousands)	2017			2016			2015
Current:
U.S. federal	$	(183	)	$	470		$	300
Non-U.S.	4,517			7,625			9,142
U.S. state and local	834			201			162
Total current income tax provision (benefit)	5,168			8,296			9,604

Deferred:
U.S. federal	9,950			9,981			(44,068		)
Non-U.S.	1,190			334			(3,078		)
U.S. state and local	(510		)	(900		)	(674		)
Total deferred income tax provision (benefit)	10,630			9,415			(47,820		)

Total:
U.S. federal	9,767			10,451			(43,768		)
Non-U.S.	5,707			7,959			6,064
U.S. state and local	324			(699		)	(512		)
Total income tax provision (benefit)	$	15,798		$	17,711		$	(38,216	)

Components of Deferred Income Tax Assets and Liabilities

The significant components of our deferred income tax assets and liabilities are as follows:



December 31, (dollars in thousands)	2017			2016
Deferred income tax assets:
Pension	$	8,108		$	11,799
Non-pension post-retirement benefits	13,385			22,810
Other accrued liabilities	13,213			19,244
Receivables	2,118			2,756
Net operating loss and charitable contribution carry forwards	16,599			16,861
Tax credits	13,288			11,502
Total deferred income tax assets	66,711			84,972
Valuation allowance	(19,076		)	(13,773		)
Net deferred income tax assets	47,635			71,199

Deferred income tax liabilities:
Property, plant and equipment	18,246			23,921
Inventories	1,639			3,866
Intangibles and other	4,708			5,255
Total deferred income tax liabilities	24,593			33,042
Net deferred income tax asset	$	23,042		$	38,157

Balance Sheet Locations of Deferred Tax Assets and Liabilities

The net deferred income tax assets and liabilities were included in the Consolidated Balance Sheets as follows:



December 31, (dollars in thousands)	2017			2016
Non-current deferred income tax asset	$	24,892		$	40,016
Non-current deferred income tax liability	(1,850		)	(1,859		)
Net deferred income tax asset	$	23,042		$	38,157

Summary of Operating Loss Carryforwards

A summary of the deferred tax assets for net operating loss carry forwards is as follows:



December 31, (dollars in thousands)	2017		2016
Deferred income tax asset	$	16,599	$	16,861
Comprised of cumulative net losses from:
Netherlands	$	40,487	$	24,811
Mexico	$	1,700	$	—
China	$	1,155	$	825
Portugal	$	—	$	629
U.S. federal	$	15,578	$	23,019
U.S. state and local	$	41,812	$	58,551

Summary of Tax Credit Carryforwards

A summary of the deferred income tax assets related to tax credits is as follows:



December 31, (dollars in thousands)	2017		2016
Netherlands foreign tax credits	$	9,082	$	7,695
U.S. general business credits	2,885		2,628
U.S. alternative minimum tax credits	1,321		1,179
Total	$	13,288	$	11,502

Reconciliation of Statutory to Effective Income Tax Rate

Reconciliation from the statutory U.S. federal income tax rate to the consolidated effective income tax rate was as follows:



Year ended December 31,	2017			2016			2015
Statutory U.S. federal income tax rate	35.0		%	35.0		%	35.0		%
Increase (decrease) in rate due to:
Non-U.S. income tax differential	1.2			(2.1	)		(0.9	)
U.S. state and local income taxes, net of related U.S. federal income taxes	0.1			(1.3	)		(2.0	)
U.S. federal credits	0.3			(2.2	)		—
Permanent adjustments	0.6			3.8			7.5
Foreign withholding taxes	(2.0	)		5.7			4.7
Valuation allowance	(4.4	)		11.1			(174.8	)
Unrecognized tax benefits	(3.9	)		10.0			(0.3	)
Impact of foreign exchange	(1.6	)		3.4			(19.8	)
Tax effect of intercompany capitalization	—			—			11.7
Impact of legislative changes	(8.7	)		—			—
Goodwill impairment	(36.0	)		—			—
Other	(1.0	)		0.3			3.0
Consolidated effective income tax rate	(20.4	)	%	63.7		%	(135.9	)	%

Change in Unrecognized Tax Benefits

A reconciliation of the beginning and ending gross unrecognized tax benefits, excluding interest and penalties, is as follows:



(dollars in thousands)	2017			2016			2015
Beginning balance	$	3,521		$	431		$	378
Additions based on tax positions related to the current year	435			382			293
Additions for tax positions of prior years	1,735			3,001			—
Reductions for tax positions of prior years	(468		)	(293		)	—
Changes due to lapse of statute of limitations	279			—			(240		)
Reductions due to settlements with tax authorities	(495		)	—			—
Ending balance	$	5,007		$	3,521		$	431

Other Unrecognized Tax Benefits Disclosures

We recognize interest and penalties related to unrecognized tax benefits in the provision for income taxes. Other disclosures relating to unrecognized tax benefits are as follows:



December 31, (dollars in thousands)	2017			2016		2015
Amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate	$	4,107		$	3,414	$	378
Interest, net of tax benefit, accrued in the Consolidated Balance Sheets	$	572		$	92	$	28
Penalties, accrued in the Consolidated Balance Sheets	$	38		$	181	$	—
Interest expense (benefit) recognized in the Consolidated Statements of Operations	$	506		$	64	$	(146	)
Penalties expense (benefit) recognized in the Consolidated Statements of Operations	$	(67	)	$	181	$	—

Tax Years Subject to Income Tax Examination

As of December 31, 2017, the tax years that remained subject to examination by major tax jurisdictions were as follows:



Jurisdiction	Open Years
Canada	2014	–	2017
China	2007	–	2017
Mexico (excluding 2011 which is closed)	2010	–	2017
Netherlands	2016	–	2017
Portugal	2014	–	2017
United States (excluding 2013 which is closed)	2011	–	2017

Pension (Tables) (Pension Plan)

Components of Net Benefit Costs

The components of our net pension expense, including the SERP, are as follows:



Year ended December 31, (dollars in thousands)	U.S. Plans									Non-U.S. Plans									Total
Year ended December 31, (dollars in thousands)	2017			2016			2015			2017			2016			2015			2017			2016			2015
Service cost (benefits earned during the period)	$	3,916		$	3,717		$	4,365		$	1,085		$	1,226		$	2,965		$	5,001		$	4,943		$	7,330
Interest cost on projected benefit obligation	13,787			14,963			14,715			2,749			2,594			4,332			16,536			17,557			19,047
Expected return on plan assets	(22,479		)	(23,027		)	(22,661		)	—			—			(2,447		)	(22,479		)	(23,027		)	(25,108		)
Amortization of unrecognized:
Prior service cost (credit)	236			263			417			(204		)	(207		)	(244		)	32			56			173
Actuarial loss	5,232			4,272			7,291			594			782			1,599			5,826			5,054			8,890
Settlement charge	245			42			13			—			126			21,574			245			168			21,587
Curtailment credit	—			—			—			—			—			(14		)	—			—			(14		)
Pension expense	$	937		$	230		$	4,140		$	4,224		$	4,521		$	27,765		$	5,161		$	4,751		$	31,905

Schedule of Assumptions Used

The assumptions used to determine the benefit obligations were as follows:



	U.S. Plans						Non-U.S. Plans
	2017			2016			2017	2016
Discount rate	3.64%	to	3.69%	4.18%	to	4.23%	9.40%	9.30%
Rate of compensation increase	Not applicable			Not applicable			4.30%	4.30%

The assumptions used to determine net periodic pension costs were as follows:



	U.S. Plans															Non-U.S. Plans
	2017					2016					2015					2017	2016	2015
Discount rate	4.18	%	to	4.23	%	4.66	%	to	4.73	%	4.17	%	to	4.29	%	9.30%	8.10%	2.30	%	to	7.60	%
Expected long-term rate of return on plan assets	7.00%					7.25%					7.25%					Not applicable	Not applicable	4.00%
Rate of compensation increase	Not applicable					Not applicable					Not applicable					4.30%	4.30%	2.00	%	to	4.30	%

Schedule of Changes in Projected Benefit Obligation and Fair Value of Plan Assets

The changes in the projected benefit obligations and fair value of plan assets are as follows:



Year ended December 31, (dollars in thousands)	U.S. Plans						Non-U.S. Plans						Total
Year ended December 31, (dollars in thousands)	2017			2016			2017			2016			2017			2016
Change in projected benefit obligation:
Projected benefit obligation, beginning of year	$	336,648		$	325,863		$	28,161		$	35,915		$	364,809		$	361,778
Service cost	3,916			3,717			1,085			1,226			5,001			4,943
Interest cost	13,787			14,963			2,749			2,594			16,536			17,557
Exchange rate fluctuations	—			—			1,214			(5,821		)	1,214			(5,821		)
Actuarial (gain) loss	22,991			11,108			1,409			(2,477		)	24,400			8,631
Settlements paid	(281		)	(259		)	—			—			(281		)	(259		)
Benefits paid	(23,008		)	(18,744		)	(2,651		)	(3,276		)	(25,659		)	(22,020		)
Projected benefit obligation, end of year	$	354,053		$	336,648		$	31,967		$	28,161		$	386,020		$	364,809

Change in fair value of plan assets:
Fair value of plan assets, beginning of year	$	318,414		$	316,184		$	—		$	—		$	318,414		$	316,184
Actual return on plan assets	47,595			20,974			—			—			47,595			20,974
Employer contributions	499			259			2,651			3,276			3,150			3,535
Settlements paid	(281		)	(259		)	—			—			(281		)	(259		)
Benefits paid	(23,008		)	(18,744		)	(2,651		)	(3,276		)	(25,659		)	(22,020		)
Fair value of plan assets, end of year	$	343,219		$	318,414		$	—		$	—		$	343,219		$	318,414

Funded ratio	96.9		%	94.6		%	—		%	—		%	88.9		%	87.3		%
Funded status and net accrued pension benefit cost	$	(10,834	)	$	(18,234	)	$	(31,967	)	$	(28,161	)	$	(42,801	)	$	(46,395	)

Net Accrued Benefit Liability

The current portion of the pension liability reflects the amount of expected benefit payments that are greater than the plan assets on a plan-by-plan basis. The net accrued pension benefit liability at December 31 of the respective year-ends were included in the Consolidated Balance Sheets as follows:



December 31, (dollars in thousands)	2017			2016
Pension asset	$	2,939		$	—
Pension liability (current portion)	(2,185		)	(2,461		)
Pension liability	(43,555		)	(43,934		)
Net accrued pension liability	$	(42,801	)	$	(46,395	)

Amounts Recognized in Accumulated Other Comprehensive Loss

The pretax amounts recognized in accumulated other comprehensive loss as of December 31, 2017 and 2016, are as follows:



Year ended December 31, (dollars in thousands)	U.S. Plans				Non-U.S. Plans						Total
Year ended December 31, (dollars in thousands)	2017		2016		2017			2016			2017			2016
Net actuarial loss	$	98,228	$	105,830	$	12,378		$	11,077		$	110,606		$	116,907
Prior service cost (credit)	1		237		(2,636		)	(2,704		)	(2,635		)	(2,467		)
Total cost	$	98,229	$	106,067	$	9,742		$	8,373		$	107,971		$	114,440

Amounts in Accumulated Other Comprehensive Loss to be Recognized During 2018

The pretax amounts in accumulated other comprehensive loss as of December 31, 2017, that are expected to be recognized as components of net periodic benefit cost during 2018 are as follows:



(dollars in thousands)	U.S. Plans		Non-U.S. Plans			Total
Net actuarial loss	$	6,546	$	605		$	7,151
Prior service cost (credit)	1		(195		)	(194		)
Total cost	$	6,547	$	410		$	6,957

Estimated Contributions to Defined Benefit Plan

Estimated contributions for 2018, as well as, contributions made in 2017 and 2016 to the pension plans are as follows:



(dollars in thousands)	U.S. Plans		Non-U.S. Plans		Total
Estimated contributions in 2018	$	131	$	2,148	$	2,279
Contributions made in 2017	$	499	$	2,651	$	3,150
Contributions made in 2016	$	259	$	3,276	$	3,535

Anticipated Benefit Payments

Pension benefit payment amounts are anticipated to be paid from the plans (including the SERP) as follows:



Year (dollars in thousands)	U.S. Plans		Non-U.S. Plans		Total
2018	$	19,838	$	2,148	$	21,986
2019	$	19,765	$	2,007	$	21,772
2020	$	19,842	$	2,193	$	22,035
2021	$	20,304	$	2,558	$	22,862
2022	$	20,525	$	2,687	$	23,212
2023-2027	$	104,932	$	15,143	$	120,075

Accumulated Benefit Obligation in Excess of Fair Value of Plan Assets

The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for pension plans with an accumulated benefit obligation in excess of plan assets at December 31, 2017 and 2016 were as follows:



December 31, (dollars in thousands)	U.S. Plans				Non-U.S. Plans				Total
December 31, (dollars in thousands)	2017		2016		2017		2016		2017		2016
Projected benefit obligation	$	268,887	$	336,648	$	31,967	$	28,161	$	300,854	$	364,809
Accumulated benefit obligation	$	268,887	$	336,648	$	27,055	$	23,194	$	295,942	$	359,842
Fair value of plan assets	$	255,115	$	318,414	$	—	$	—	$	255,115	$	318,414

Plan Asset Fair Value Measurement

All investments measured at NAV as a practical expedient for fair value have been excluded from the fair value hierarchy, in accordance with U.S. GAAP. The table below presents our U.S. pension plan assets at fair value.



December 31, (dollars in thousands)	Measured at NAV as a practical expedient					Target Allocation
December 31, (dollars in thousands)	2017			2016		2018
Short-term investments	$	8,061		$	8,766	3	%
Real estate	16,390			15,812		5	%
Equity securities	156,434			148,302		45	%
Debt securities	125,671			96,658		37	%
Hedge funds	36,663		⁽¹⁾	48,876		10	%
Total	$	343,219		$	318,414	100	%

_________________________

⁽¹⁾ Includes $9.1 million of hedge funds valued daily at NAV which is considered to be a Level 2 investment in the fair value hierarchy. See note 14 for discussion of the fair value hierarchy.

Non-pension Post-retirement Benefits (Tables)

Weighted Average Assumed Health Care Cost Trend Rates

The weighted average assumed healthcare cost trend rates at December 31 were as follows:



	U.S. Plans				Non-U.S. Plans
	2017		2016		2017		2016
Healthcare cost trend rate assumed for next year	6.50	%	6.75	%	6.50	%	6.75	%
Ultimate healthcare trend rate	5.00	%	5.00	%	5.00	%	5.00	%
Year the ultimate trend rate is reached	2024		2024		2024		2024

Components of Nonpension Postretirement Benefit Obligation

The components of our non-pension post-retirement benefit obligation are as follows:



Year ended December 31, (dollars in thousands)	U.S. Plans						Non-U.S. Plans						Total
Year ended December 31, (dollars in thousands)	2017			2016			2017			2016			2017			2016
Change in accumulated non-pension post-retirement benefit obligation:
Benefit obligation, beginning of year	$	58,921		$	58,795		$	1,344		$	1,390		$	60,265		$	60,185
Service cost	631			797			1			1			632			798
Interest cost	2,104			2,608			44			51			2,148			2,659
Plan participants' contributions	525			528			—			—			525			528
Actuarial (gain) loss	(5,483		)	146			(108		)	(102		)	(5,591		)	44
Exchange rate fluctuations	—			—			90			46			90			46
Benefits paid	(4,050		)	(3,953		)	(76		)	(42		)	(4,126		)	(3,995		)
Benefit obligation, end of year	$	52,648		$	58,921		$	1,295		$	1,344		$	53,943		$	60,265

Funded status and accrued benefit cost	$	(52,648	)	$	(58,921	)	$	(1,295	)	$	(1,344	)	$	(53,943	)	$	(60,265	)

Components of Net Benefit Costs

The provision for our non-pension post-retirement benefit expense consists of the following:



Year ended December 31, (dollars in thousands)	U.S. Plans							Non-U.S. Plans									Total
Year ended December 31, (dollars in thousands)	2017			2016		2015		2017			2016			2015			2017			2016		2015
Service cost (benefits earned during the period)	$	631		$	797	$	855	$	1		$	1		$	1		$	632		$	798	$	856
Interest cost on projected benefit obligation	2,104			2,608		2,537		44			51			52			2,148			2,659		2,589
Amortization of unrecognized:
Prior service cost (credit)	(201		)	140		140		—			—			—			(201		)	140		140
Actuarial loss (gain)	(257		)	81		592		(59		)	(47		)	(56		)	(316		)	34		536
Non-pension post-retirement benefit expense	$	2,277		$	3,626	$	4,124	$	(14	)	$	5		$	(3	)	$	2,263		$	3,631	$	4,121

Schedule of Assumptions Used

The discount rates used to determine the accumulated post-retirement benefit obligation and net post-retirement benefit cost were as follows:



	U.S. Plans						Non-U.S. Plans
	2017		2016		2015		2017		2016		2015
Accumulated post-retirement benefit obligation	3.60	%	4.05	%	4.56	%	3.26	%	3.48	%	3.69	%
Net post-retirement benefit cost	4.05	%	4.56	%	4.10	%	3.48	%	3.69	%	3.61	%

Net Accrued Benefit Liability

The total accrued non-pension post-retirement benefits liability at December 31 of the respective year-ends were included in the Consolidated Balance Sheets as follows:



December 31, (dollars in thousands)	2017		2016
Non-pension post-retirement benefits (current portion)	$	4,185	$	4,892
Non-pension post-retirement benefits	49,758		55,373
Total non-pension post-retirement benefits liability	$	53,943	$	60,265

Amounts Recognized in Accumulated Other Comprehensive Loss

The pretax amounts recognized in accumulated other comprehensive loss as of December 31, 2017 and 2016, are as follows:



Year ended December 31, (dollars in thousands)	U.S. Plans						Non-U.S. Plans						Total
Year ended December 31, (dollars in thousands)	2017			2016			2017			2016			2017			2016
Net actuarial loss (gain)	$	(80	)	$	5,146		$	(832	)	$	(730	)	$	(912	)	$	4,416
Prior service cost (credit)	(1,262		)	(1,463		)	—			—			(1,262		)	(1,463		)
Total cost (credit)	$	(1,342	)	$	3,683		$	(832	)	$	(730	)	$	(2,174	)	$	2,953

Amounts in Accumulated Other Comprehensive Loss to be Recognized During 2018

The pretax amounts in accumulated other comprehensive loss at December 31, 2017, that are expected to be recognized as components of net periodic benefit cost during 2018 are as follows:



(dollars in thousands)	U.S. Plans			Non-U.S. Plans			Total
Net actuarial loss (gain)	$	(210	)	$	(66	)	$	(276	)
Prior service cost (credit)	(282		)	—			(282		)
Total cost (credit)	$	(492	)	$	(66	)	$	(558	)

Anticipated Benefit Payments

Non-pension post-retirement benefit payments net of estimated future Medicare Part D subsidy payments and future retiree contributions, are anticipated to be paid as follows:



Fiscal Year (dollars in thousands)	U.S. Plans		Non-U.S. Plans		Total
2018	$	4,098	$	161	$	4,259
2019	$	4,024	$	159	$	4,183
2020	$	3,965	$	153	$	4,118
2021	$	3,850	$	142	$	3,992
2022	$	3,853	$	130	$	3,983
2023-2027	$	16,848	$	373	$	17,221

Net Income per Share of Common Stock (Tables)

Computation of Basic and Diluted Earnings Per Share

The following table sets forth the computation of basic and diluted earnings (loss) per share:



Year ended December 31, (dollars in thousands, except earnings per share)	2017			2016		2015
Numerator for earnings per share:
Net income (loss) that is available to common shareholders	$	(93,368	)	$	10,073	$	66,333

Denominator for basic earnings per share:
Weighted average shares outstanding	22,030,672			21,879,613		21,816,935

Denominator for diluted earnings per share:
Effect of stock options and restricted stock units	—			169,330		342,214
Adjusted weighted average shares and assumed conversions	22,030,672			22,048,943		22,159,149

Basic earnings (loss) per share	$	(4.24	)	$	0.46	$	3.04

Diluted earnings (loss) per share	$	(4.24	)	$	0.46	$	2.99

Shares excluded from diluted earnings per share due to:
Net loss position (excluded from denominator)	85,588			—		—
Inclusion would have been anti-dilutive (excluded from calculation)	846,747			602,402		105,201

Employee Stock Benefit Plans (Tables)

Stock Options Activity

Information with respect to our stock option activity for 2017, 2016 and 2015 is as follows:



Stock Options	Shares		Weighted-Average Exercise Price per Share		Weighted-Average Remaining Contractual Life (In Years)	Aggregate Intrinsic Value (in thousands)
Outstanding balance at January 1, 2015	834,010		$	17.28	6.7	$	11,808
Granted	108,297		$	36.90
Exercised	(241,122	)	$	13.85		$	5,722
Canceled	(44,514	)	$	25.43
Outstanding balance at December 31, 2015	656,671		$	21.22	6.8	$	2,103
Granted	351,590		$	17.23
Exercised	(100,813	)	$	13.90		$	379
Canceled	(262,225	)	$	23.73
Outstanding balance at December 31, 2016	645,223		$	19.17	6.6	$	1,407
Granted	249,392		$	11.74
Exercised	(33,389	)	$	13.96		$	17
Canceled	(98,676	)	$	19.42
Outstanding balance at December 31, 2017	762,550		$	16.91	7.0	$	64
Exercisable at December 31, 2017	333,761		$	19.26	4.8	$	35

The following table summarizes non-qualified stock option disclosures for 2017, 2016 and 2015:



Year ended December 31, (dollars in thousands, except options and assumptions)	2017		2016		2015
Stock options granted	249,392		351,590		108,297
Stock option compensation expense included in the Consolidated Statements of Operations	$	690	$	705	$	1,674
Weighted-average grant-date fair value of options granted using the Black-Scholes model	$	3.00	$	4.20	$	14.72
Weighted-average assumptions for stock option grants:
Risk-free interest	2.07%		1.30%		1.68%
Expected term	5.8 years		6.3 years		6.4 years
Expected volatility	38.54%		33.14%		39.92%
Dividend yield	4.32%		2.69%		1.16%

Schedule of Nonvested Stock Option Activity

The following table summarizes our nonvested stock option activity for 2017, 2016 and 2015:



Nonvested Stock Options	Shares		Weighted-Average Value (per Share)
Nonvested at January 1, 2015	438,515		$	9.91
Granted	108,297		$	14.72
Vested	(161,923	)	$	10.55
Forfeited	(42,887	)	$	11.32
Nonvested at December 31, 2015	342,002		$	10.95
Granted	351,590		$	4.20
Vested	(169,703	)	$	9.42
Forfeited	(178,954	)	$	8.41
Nonvested at December 31, 2016	344,935		$	6.14
Granted	249,392		$	3.00
Vested	(108,449	)	$	6.69
Forfeited	(57,089	)	$	6.23
Nonvested at December 31, 2017	428,789		$	4.16

Stock Appreciation Rights Activity

The following table summarizes stock appreciation rights disclosures for 2017, 2016 and 2015:



Year ended December 31, (dollars in thousands, except stock appreciation rights and assumptions)	2017		2016			2015
Stock appreciation rights granted	26,839		—			—
Stock appreciation rights compensation expense (benefit) included in the Consolidated Statements of Operations	$	39	$	(462	)	$	(273	)
Weighted-average grant-date fair value of stock appreciation rights granted using the Black-Scholes model	$	0.19
Weighted-average assumptions for stock appreciation rights granted:
Risk-free interest	2.17%
Expected term	4.5 years
Expected volatility	38.93%
Dividend yield	6.10%

Information with respect to our stock appreciation right activity for 2017, 2016 and 2015 is as follows:



Stock Appreciation Rights	Shares		Weighted Average Exercise Price		Weighted-Average Remaining Contractual Life (In Years)	Aggregate Intrinsic Value (in thousands)
Outstanding Balance at January 1, 2015	244,229		$	21.27	9.0	$	2,483
Outstanding balance at December 31, 2015	244,229		$	21.27	8.0	$	14
Outstanding balance at December 31, 2016	244,229		$	21.27	0.1	$	4
Granted	26,839		$	17.19
Exercised	(7,060	)	$	7.16		$	56
Canceled	(240,829	)	$	21.29
Outstanding balance at December 31, 2017	23,179		$	20.66	5.2	$	—
Exercisable at December 31, 2017	19,999		$	20.29	5.0	$	—

Schedule of Non-vested Stock Appreciation Rights Activity

The following table summarizes our non-vested stock appreciation rights for 2017, 2016 and 2015:



Nonvested Stock Appreciation Rights	Shares		Weighted-Average Value (per Share)
Nonvested at January 1, 2015	244,229		$	10.37
Vested	(1,250	)	$	10.33
Nonvested at December 31, 2015	242,979		$	10.37
Vested	(241,829	)	$	10.38
Nonvested at December 31, 2016	1,150		$	9.88
Granted	26,839		$	0.19
Vested	(24,809	)	$	0.29
Nonvested at December 31, 2017	3,180		$	1.32

Restricted Stock Units Award Activity

A summary of the activity for stock and restricted stock units under the Omnibus Plans for 2017, 2016 and 2015 is presented below:



Year ended December 31, (dollars in thousands, except share amounts)	2017			2016			2015
Beginning nonvested balance	283,188			315,434			232,824
Granted	278,351			298,909			219,010
Vested	(154,995		)	(165,372		)	(113,319		)
Forfeited	(52,340		)	(165,783		)	(23,081		)
Ending nonvested balance	354,204			283,188			315,434

Weighted-average grant-date fair value per restricted stock unit	$	10.38		$	16.22		$	35.93

Compensation expense	$	2,682		$	3,019		$	4,199

Cash Settled Restricted Stock Units Award Activity

A summary of the activity for cash settled restricted stock units is presented below:



Year ended December 31, (dollars in thousands, except share amounts)	2017			2016			2015
Beginning nonvested balance	17,067			116,712			115,687
Granted	—			16,299			1,025
Vested	(5,080		)	(115,944		)	—
Forfeited	(1,092		)	—			—
Ending nonvested balance	10,895			17,067			116,712

Weighted-average grant-date fair value per restricted stock unit	$	—		$	3.57		$	36.96

Compensation expense	$	49		$	1,504		$	317

Derivatives (Tables)

Fair Values of Derivative Instruments

The following table provides the fair values of our derivative financial instruments for the periods presented:



December 31, (dollars in thousands)		Fair Value of Derivative Assets
December 31, (dollars in thousands)	Balance Sheet Location	2017		2016
Cash flow hedges:
Interest rate swap	Other assets	$	646	$	—
Natural gas contracts	Prepaid and other current assets	—		702
Natural gas contracts	Other assets	—		45
Total designated		646		747
Derivatives not designated as hedging instruments:
Natural gas contracts	Prepaid and other current assets	—		732
Natural gas contracts	Other assets	—		29
Total undesignated		—		761
Total derivative assets		$	646	$	1,508



December 31, (dollars in thousands)		Fair Value of Derivative Liabilities
December 31, (dollars in thousands)	Balance Sheet Location	2017		2016
Cash flow hedges:
Interest rate swap	Derivative liability	$	213	$	1,928
Interest rate swap	Other long-term liabilities	—		107
Natural gas contracts	Derivative liability	220		—
Natural gas contracts	Other long-term liabilities	7		—
Total designated		440		2,035
Derivatives not designated as hedging instruments:
Natural gas contracts	Derivative liability	264		—
Natural gas contracts	Other long-term liabilities	12		—
Total undesignated		276		—
Total derivative liabilities		$	716	$	2,035

Schedule of Notional Amounts of Outstanding Derivative Positions

The following table presents the notional amount of derivatives on the Consolidated Balance Sheets:



		Notional Amounts
Derivative Types	Unit of Measure	December 31, 2017		December 31, 2016
Natural gas contracts	Millions of British Thermal Units (MMBTUs)	2,480,000		2,590,000
Interest rate swap	Thousands of U.S. dollars	$	220,000	$	220,000
Currency contracts	Thousands of Canadian dollars	C$	—	C$	—

Cash Settlements

The following table presents cash settlements (paid) received related to the below derivatives:



Year ended December 31, (dollars in thousands)	2017			2016			2015
Natural gas contracts	$	(47	)	$	(2,345	)	$	(4,567	)
Interest rate swap	(1,836		)	(2,244		)	—
Total	$	(1,883	)	$	(4,589	)	$	(4,567	)

Summary of the gain (loss) recognized in the Statement of Operations and AOCI

The following table provides a summary of the impacts of derivative gain (loss) on the Consolidated Statements of Operations and other comprehensive income (OCI):



Year ended December 31, (dollars in thousands)	Location	2017			2016			2015
Cash flow hedges:
Effective portion of derivative gain (loss) recognized in OCI:
Natural gas contracts	OCI	$	(1,019	)	$	721		$	(1,909	)
Interest rate swap	OCI	733			(2,056		)	(2,378		)
Total		$	(286	)	$	(1,335	)	$	(4,287	)

Effective portion of derivative gain (loss) reclassified from accumulated OCI to current earnings:
Natural gas contracts	Cost of Sales	$	(45	)	$	(1,129	)	$	(2,131	)
Interest rate swap	Interest expense	(1,735		)	(2,399		)	—
Total		$	(1,780	)	$	(3,528	)	$	(2,131	)

Derivatives not designated as hedging instruments:
Gain (loss) recognized in current earnings:
Currency contracts	Other income (expense)	$	—		$	(245	)	$	(158	)
Natural gas contracts	Other income (expense)	(1,036		)	1,860			218
Total		$	(1,036	)	$	1,615		$	60

Accumulated Other Comprehensive Income (Loss) (Tables)

Accumulated Other Comprehensive Loss

Accumulated other comprehensive income (loss) (AOCI), net of tax, is as follows:



(dollars in thousands)	Foreign Currency Translation			Derivative Instruments					Pension and Other Post-retirement Benefits				Total Accumulated Comprehensive Loss
Balance on December 31, 2014	$	(9,162	)	$	(625	)			$	(128,660	)		$	(138,447	)

Amounts recognized into AOCI	(13,751		)	(4,287		)			4,204				(13,834		)
Currency impact	—			—					4,233				4,233
Amounts reclassified from AOCI	—			2,357			⁽¹	⁾	31,312			⁽²⁾	33,669
Tax effect	—			695					(6,548		)		(5,853		)
Other comprehensive income (loss), net of tax	(13,751		)	(1,235		)			33,201				18,215
Balance on December 31, 2015	(22,913		)	(1,860		)			(95,459		)		(120,232		)

Amounts recognized into AOCI	(6,244		)	(1,335		)			(10,728		)		(18,307		)
Currency impact	—			—					1,271				1,271
Amounts reclassified from AOCI	—			3,528			⁽¹	⁾	5,452			⁽²⁾	8,980
Tax effect	1,329			(848		)			2,610				3,091
Other comprehensive income (loss), net of tax	(4,915		)	1,345					(1,395		)		(4,965		)
Balance on December 31, 2016	(27,828		)	(515		)			(96,854		)		(125,197		)

Amounts recognized into AOCI	12,835			(286		)			6,307				18,856
Currency impact	—			—					(152		)		(152		)
Amounts reclassified from AOCI	—			1,780			⁽¹	⁾	5,586			⁽²⁾	7,366
Tax effect	(1,190		)	(628		)			(4,227		)		(6,045		)
Other comprehensive income (loss), net of tax	11,645			866					7,514				20,025
Balance on December 31, 2017	$	(16,183	)	$	351				$	(89,340	)		$	(105,172	)

_________________________


⁽¹⁾	We reclassified natural gas contracts through cost of sales and the interest rate swap through interest expense on the Consolidated Statements of Operations. See note 12 for additional information.


⁽²⁾	We reclassified the net pension and non-pension post-retirement benefits amortization and settlement charges through cost of sales and selling, general and administrative expenses on the Consolidated Statements of Operations. See notes 8 and 9 for additional information.

Fair Value (Tables)

Fair Value of Derivatives

The fair value of our derivative financial instruments by level is as follows:



	Fair Value at										Fair Value at
Asset / (Liability (dollars in thousands)	December 31, 2017										December 31, 2016
Asset / (Liability (dollars in thousands)	Level 1		Level 2			Level 3		Total			Level 1		Level 2			Level 3		Total
Commodity futures natural gas contracts	$	—	$	(503	)	$	—	$	(503	)	$	—	$	1,508		$	—	$	1,508
Interest rate swap	—		433			—		433			—		(2,035		)	—		(2,035		)
Net derivative asset (liability)	$	—	$	(70	)	$	—	$	(70	)	$	—	$	(527	)	$	—	$	(527	)

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block]

Financial instruments carried at cost on the Consolidated Balance Sheets, as well as the related fair values, are as follows:



		December 31, 2017				December 31, 2016
(dollars in thousands)	Fair Value Hierarchy Level	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Term Loan B	Level 2	$	384,600	$	370,178	$	409,000	$	412,068

Operating Leases (Tables)

Future Minimum Rental Payments Under Operating Leases

Future minimum rentals under operating leases are as follows (dollars in thousands):



2018	2019	2020	2021	2022	2023 and thereafter
$15,542	$13,593	$11,496	$8,028	$7,178	$24,675

Other Income and Expense (Tables)

Components of Other Income (Expense)

Items included in other income (expense) in the Consolidated Statements of Operations are as follows:



Year ended December 31, (dollars in thousands)	2017			2016		2015
Gain (loss) on currency transactions	$	(2,788	)	$	775	$	2,641
Gain (loss) on mark-to-market natural gas contracts	(1,036		)	1,860		(714		)
Hedge ineffectiveness	—			—		932
Other non-operating income	309			727		21
Other income (expense)	$	(3,515	)	$	3,362	$	2,880

Segments and Geographic Information (Tables)

Reconciliation from Segment Totals to Consolidated



Year ended December 31, (dollars in thousands)	2017			2016			2015
Net Sales:
U.S. & Canada	$	481,797		$	482,296		$	492,051
Latin America	144,322			151,389			167,069
EMEA	126,924			126,591			129,549
Other	28,785			33,144			33,676
Consolidated	$	781,828		$	793,420		$	822,345

Segment EBIT:
U.S. & Canada	$	48,044		$	75,449		$	78,144
Latin America	6,590			12,583			22,235
EMEA	1,321			1,387			3,289
Other	(3,838		)	1,001			4,614
Total Segment EBIT	$	52,117		$	90,420		$	108,282

Reconciliation of Segment EBIT to Net Income (Loss):
Segment EBIT	$	52,117		$	90,420		$	108,282
Retained corporate costs	(27,099		)	(27,265		)	(34,645		)
Goodwill impairment (note 4)	(79,700		)	—			—
Pension settlement charges (note 8)	—			(168		)	(21,693		)
Environmental obligation (note 17)	—			—			(157		)
Reorganization charges	(2,488		)	—			(4,316		)
Product portfolio optimization⁽¹⁾	—			(5,693		)	—
Work stoppage ⁽²⁾	—			(4,162		)	—
Executive terminations	—			(4,460		)	(870		)
Interest expense	(20,400		)	(20,888		)	(18,484		)
(Provision) benefit for income taxes	(15,798		)	(17,711		)	38,216
Net income (loss)	$	(93,368	)	$	10,073		$	66,333

Depreciation & Amortization:
U.S. & Canada	$	12,665		$	12,748		$	12,214
Latin America	18,576			19,068			14,738
EMEA	7,377			9,377			8,510
Other	5,088			5,588			5,855
Corporate	1,838			1,705			1,395
Consolidated	$	45,544		$	48,486		$	42,712

Capital Expenditures:
U.S. & Canada	$	10,056		$	10,671		$	25,106
Latin America	18,520			11,032			11,944
EMEA	17,158			7,571			6,773
Other	1,226			2,905			1,855
Corporate	668			2,425			2,458
Consolidated	$	47,628		$	34,604		$	48,136

______________________________

⁽¹⁾Product portfolio optimization relates to inventory reductions to simplify and improve our operations.

⁽²⁾ Work stoppage relates to the lower production volume impact, shipping costs and other direct incremental expenses associated with the two-week Toledo, Ohio work stoppage in the fourth quarter of 2016.



December 31, (dollars in thousands)	2017		2016		2015
Segment Assets⁽¹⁾:
U.S. & Canada	$	147,809	$	130,390	$	140,840
Latin America	63,093		63,838		68,599
EMEA	48,270		44,588		48,924
Other	18,711		16,306		14,043
Consolidated	$	277,883	$	255,122	$	272,406

______________________________

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

Schedule of Net Sales to Customers and Long-Lived Assets, by Geographical Areas

Geographic data for the U.S., Mexico and Other countries for 2017, 2016 and 2015 is presented below. Net sales are based on the geographical destination of the sale. The long-lived assets include net property, plant and equipment.



(dollars in thousands)	United States		Mexico		All Other		Consolidated
2017
Net sales	$	479,018	$	93,370	$	209,440	$	781,828
Long-lived assets	$	89,838	$	87,836	$	88,001	$	265,675

2016
Net sales	$	478,342	$	100,829	$	214,249	$	793,420
Long-lived assets	$	91,834	$	89,963	$	74,595	$	256,392

2015
Net sales	$	488,582	$	107,386	$	226,377	$	822,345
Long-lived assets	$	94,206	$	93,573	$	84,755	$	272,534

Description of the Business (Details)

Dec. 31, 2017

country

Production Operations [Member]

Description of Business [Line Items]

Number of countries in which entity operates

5

Sales Operations [Member] |
Minimum

Description of Business [Line Items]

Number of countries in which entity operates

100

United States

Description of Business [Line Items]

Number of glass tableware manufacturing plants

2

Significant Accounting Policies (Narrative) (Details) (USD $)

In Millions, unless otherwise specified

Dec. 31, 2017

Dec. 31, 2016

Accounting Policies [Abstract]

LIFO inventory as a percent of total inventory

32.20%

29.10%

Excess of FIFO cost over LIFO

$ 13.4

$ 12.9

Significant Accounting Policies (Property, Plant and Equipment) (Details)

12 Months Ended

Dec. 31, 2017

Software

Property, Plant and Equipment [Line Items]

Property, plant and equipment, useful life

5 years

Equipment and Furnishings |
Minimum

Property, Plant and Equipment [Line Items]

Property, plant and equipment, useful life

3 years

Equipment and Furnishings |
Maximum

Property, Plant and Equipment [Line Items]

Property, plant and equipment, useful life

14 years

Buildings and Improvements |
Minimum

Property, Plant and Equipment [Line Items]

Property, plant and equipment, useful life

10 years

Buildings and Improvements |
Maximum

Property, Plant and Equipment [Line Items]

Property, plant and equipment, useful life

40 years

Significant Accounting Policies (Treasury Stock) (Details) (USD $)

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Treasury Stock

Equity, Class of Treasury Stock [Line Items]

Purchase of treasury shares, shares

0

111,292

412,473

Treasury Stock Acquired, Average Cost Per Share

$ 17.97

$ 37.03

Common Stock

Equity, Class of Treasury Stock [Line Items]

Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased

941,250

Significant Accounting Policies (Research and Development) (Details) (Selling, General and Administrative Expenses, USD $)

In Millions, unless otherwise specified

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Selling, General and Administrative Expenses

Schedule of Research and Development [Line Items]

Research and development expense

$ 3.0

$ 4.3

$ 6.1

Significant Accounting Policies (Advertising Costs) (Details) (USD $)

In Millions, unless otherwise specified

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Marketing and Advertising Expense [Abstract]

Advertising Expense

$ 5.3

$ 5.7

$ 10.7

Significant Accounting Policies (ASU 2016-09 Adoption) (Details) (Accounting Standards Update 2016-09, USD $)

In Millions, unless otherwise specified

Jan. 1, 2017

Retained Deficit

New Accounting Pronouncements or Change in Accounting Principle

Effects on Equity and Net Assets

$ 2.3

Deferred income taxes

New Accounting Pronouncements or Change in Accounting Principle

Effects on Equity and Net Assets

$ (2.3)

Balance Sheet Details (Details) (USD $)

In Thousands, unless otherwise specified

Dec. 31, 2017

Dec. 31, 2016

Accounts receivable:

Accounts receivable

$ 89,997

$ 85,113

Allowance for doubtful accounts

9,051

7,832

Inventories:

Finished goods

170,774

152,261

Work in process

1,485

1,625

Raw materials

3,906

4,432

Repair parts

10,240

10,558

Operating supplies

1,481

1,133

Total inventories, less loss provisions of $10,308 and $9,484

187,886

170,009

Inventory loss provision

10,308

9,484

Accrued liabilities:

Accrued incentives

19,728

19,771

Other accrued liabilities

23,495

22,036

Total accrued liabilities

43,223

41,807

Trade receivables

Accounts receivable:

Accounts receivable

88,786

82,851

Other receivables

Accounts receivable:

Accounts receivable

$ 1,211

$ 2,262

Purchased Intangible Assets and Goodwill (Changes in Purchased Intangibles Balances) (Details) (USD $)

In Thousands, unless otherwise specified

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Intangible Assets [Roll Forward]

Beginning balance

$ 15,225

$ 16,364

Amortization

(1,073)

(1,039)

(1,000)

Foreign currency impact

413

(100)

Ending balance

$ 14,565

$ 15,225

$ 16,364

Purchased Intangible Assets and Goodwill (Composition of Purchased Intangibles) (Details) (USD $)

In Thousands, unless otherwise specified

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Indefinite life intangible assets

$ 12,120

$ 11,888

Definite life intangible assets, net of accumulated amortization of $19,093 and $17,706

2,445

3,337

Total

14,565

15,225

16,364

Definite life intangible assets, accumulated amortization

$ 19,093

$ 17,706

Purchased Intangible Assets and Goodwill (Narrative) (Details) (USD $)

In Thousands, unless otherwise specified

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Acquired Finite-Lived Intangible Assets [Line Items]

Amortization

$ 1,073

$ 1,039

$ 1,000

Definite life intangible assets, weighted average remaining life

2 years 4 months 15 days

Minimum

Acquired Finite-Lived Intangible Assets [Line Items]

Definite life intangible assets, amortization period

13 years

Maximum

Acquired Finite-Lived Intangible Assets [Line Items]

Definite life intangible assets, amortization period

20 years

Purchased Intangible Assets and Goodwill (Future Estimated Amortization Expense of Definite Life Intangible Assets) (Details) (USD $)

In Thousands, unless otherwise specified

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

2018

$ 1,051

2019

571

2020

165

2021

165

2022

$ 165

Purchased Intangible Assets and Goodwill (Changes in Goodwill) (Details) (USD $)

In Thousands, unless otherwise specified

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Goodwill [Line Items]

Fair Value Input, Basis Spread on Discount Rate

70

Goodwill [Roll Forward]

Goodwill

$ 169,553

Accumulated impairment losses

(5,441)

Goodwill, net beginning balance

164,112

Impairment

(79,700)

0

Goodwill, ending balance

169,553

Accumulated impairment losses

(85,141)

(5,441)

Goodwill, net ending balance

84,412

164,112

United States & Canada

Goodwill [Roll Forward]

Goodwill

43,872

Accumulated impairment losses

(5,441)

Goodwill, net beginning balance

38,431

Impairment

0

Goodwill, ending balance

43,872

Accumulated impairment losses

(5,441)

Goodwill, net ending balance

38,431

Latin America

Goodwill [Roll Forward]

Goodwill

125,681

Accumulated impairment losses

0

Goodwill, net beginning balance

125,681

Impairment

(79,700)

0

Goodwill, ending balance

125,681

Accumulated impairment losses

(79,700)

0

Goodwill, net ending balance

$ 45,981

$ 125,681

Income Approach Valuation Technique [Member]

Goodwill [Line Items]

Fair Value, Goodwill, Valuation Approach Allocation

70.00%

Market Approach Valuation Technique [Member]

Goodwill [Line Items]

Fair Value, Goodwill, Valuation Approach Allocation

30.00%

Property, Plant and Equipment (Schedule of Property, Plant and Equipment) (Details) (USD $)

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Property, Plant and Equipment [Line Items]

Gross property, plant and equipment

$ 687,284,000

$ 648,248,000

Less accumulated depreciation

421,609,000

391,856,000

Net property, plant and equipment

265,675,000

256,392,000

Depreciation

44,400,000

47,300,000

41,400,000

Land

Property, Plant and Equipment [Line Items]

Gross property, plant and equipment

20,859,000

19,524,000

Buildings

Property, Plant and Equipment [Line Items]

Gross property, plant and equipment

107,659,000

102,666,000

Machinery and equipment

Property, Plant and Equipment [Line Items]

Gross property, plant and equipment

505,978,000

473,004,000

Furniture and fixtures

Property, Plant and Equipment [Line Items]

Gross property, plant and equipment

15,391,000

14,208,000

Software

Property, Plant and Equipment [Line Items]

Gross property, plant and equipment

24,464,000

22,733,000

Construction in progress

Property, Plant and Equipment [Line Items]

Gross property, plant and equipment

$ 12,933,000

$ 16,113,000

Borrowings (Debt Schedule) (Details)

In Thousands, unless otherwise specified

Dec. 31, 2017

USD ($)

Dec. 31, 2016

USD ($)

Dec. 31, 2017

Libbey Glass and Libbey Europe

ABL Facility

Line of Credit

USD ($)

Dec. 31, 2016

Libbey Glass and Libbey Europe

ABL Facility

Line of Credit

USD ($)

Dec. 31, 2017

Libbey Glass

Senior Loans

USD ($)

Dec. 31, 2016

Libbey Glass

Senior Loans

USD ($)

Dec. 31, 2017

Libbey Portugal

AICEP Loan

Loans Payable

USD ($)

Dec. 31, 2017

Libbey Portugal

AICEP Loan

Loans Payable

EUR (€)

Dec. 31, 2016

Libbey Portugal

AICEP Loan

Loans Payable

USD ($)

Debt Instrument [Line Items]

Interest rate

4.43%

3.75%

0.00%

Total borrowings

$ 387,685

$ 412,320

$ 0 ¹

$ 384,600 ²

$ 409,000 ²

$ 3,085

€ 2,600

$ 3,320

Less — unamortized discount and finance fees

3,295

4,480

Total borrowings — net

384,390

407,840

Less — long term debt due within one year

7,485

5,009

Total long-term portion of borrowings — net

$ 376,905

$ 402,831

[1] Maturity date will be January 9, 2021 if Term Loan B is not refinanced by this date.

[2] See interest rate swap under "Term Loan B" below and note 12.

Borrowings (Annual Maturities of Borrowings) (Details) (USD $)

In Thousands, unless otherwise specified

Dec. 31, 2017

Debt Disclosure [Abstract]

All borrowings, repayments of principal, 2018

$ 7,485

All borrowings, repayments of principal, 2019

4,400

All borrowings, repayments of principal, 2020

4,400

All borrowings, repayments of principal, 2021

371,400

All borrowings, repayments of principal, 2022

0

All borrowings, repayments of principal, thereafter

$ 0

Borrowings (ABL Credit Agreement Narrative) (Details) (USD $)

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2017

ABL Facility

Line of Credit

Dec. 31, 2017

Libbey Glass and Libbey Europe

ABL Facility

Line of Credit

Dec. 7, 2017

Libbey Glass and Libbey Europe

ABL Facility

Line of Credit

entity

Dec. 31, 2016

Libbey Glass and Libbey Europe

ABL Facility

Line of Credit

Dec. 31, 2017

Libbey Glass and Libbey Europe

ABL Facility

Letter of Credit

Dec. 31, 2017

Libbey Glass

ABL Facility

Line of Credit

Dec. 31, 2017

Libbey Glass

Line of Credit, Swingline

Line of Credit

Dec. 31, 2017

Subsidiaries, Present and Future Direct and Indirect Domestic Subsidiaries of Libbey Glass

ABL Facility

Line of Credit

Dec. 31, 2017

Subsidiaries, First-tier Present and Future Foreign Subsidiaries of Libbey Glass

ABL Facility

Line of Credit

Dec. 31, 2017

Subsidiary, Libbey Europe [Member]

ABL Facility

Line of Credit

Dec. 31, 2017

Subsidiary, Libbey Europe [Member]

Line of Credit, Swingline

Line of Credit

Dec. 31, 2017

Subsidiaries, Dutch Subsidiaries of Libbey Europe

ABL Facility

Line of Credit

Dec. 31, 2017

Line of Credit

Libbey Glass and Libbey Europe

ABL Facility

Dec. 31, 2016

Line of Credit

Libbey Glass and Libbey Europe

ABL Facility

Dec. 31, 2017

Minimum

Line of Credit

Libbey Glass and Libbey Europe

ABL Facility

Dec. 31, 2017

Maximum

Subsidiaries, First-Tier Subsidiaries of Libbey Europe and its Dutch Subsidiaries

ABL Facility

Line of Credit

Dec. 31, 2017

Maximum

Line of Credit

Libbey Glass and Libbey Europe

ABL Facility

Dec. 31, 2017

London Interbank Offered Rate (LIBOR)

Minimum

Line of Credit, Swingline

Line of Credit

Dec. 31, 2017

CB Floating Rate

Line of Credit, Swingline

Line of Credit

Dec. 31, 2017

Netherlands Swing Line Rate

Line of Credit, Swingline

Line of Credit

Debt Instrument [Line Items]

Number of financial institutions participating

4

Line of credit facility, maximum borrowing capacity

$ 100,000,000

$ 15,000,000

$ 10,000,000

$ 5,000,000

Security, percent of entity stock

100.00%

Security, percent of entity stock, non-voting

100.00%

Security, percent of entity stock, voting

65.00%

Applicable rates

0.00%

0.50%

1.50%

Commitment fee percentage

0.25%

Covenant, fixed charge coverage ratio, unused borrowing capacity below which covenant is applicable

10,000,000

Covenant terms, conditional minimum fixed charge coverage ratio

1

Additional available borrowing capacity

25,000,000

Total borrowings

387,685,000

412,320,000

0 ¹

Interest period

one month

six months

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

500,000

Borrowing base, amount of natural gas derivative offset

500,000

Line of credit facility, amount outstanding

7,200,000

Line of credit facility, remaining borrowing capacity

$ 91,900,000

$ 88,400,000

[1] Maturity date will be January 9, 2021 if Term Loan B is not refinanced by this date.

Borrowings (Term Loan B) (Details) (Libbey Glass, Senior Loans, USD $)

In Millions, unless otherwise specified

0 Months Ended

Apr. 9, 2014

Dec. 31, 2017

Dec. 31, 2016

Debt Instrument [Line Items]

Debt instrument, face amount

$ 440.0

Proceeds from Term Loan B

438.9

Debt Instrument, Discount, Percentage

0.25%

Original issue discount

1.1

Deferred finance costs, gross

6.7

Aggregate Principal Payments, Quarterly

$ 1.1

Interest rate

4.43%

3.75%

Maximum business days for mandatory prepayment offer

10

Minimum

Debt Instrument [Line Items]

Percentage Used For Mandatory Prepayments

0.00%

Maximum

Debt Instrument [Line Items]

Percentage Used For Mandatory Prepayments

50.00%

London Interbank Offered Rate (LIBOR)

Debt Instrument [Line Items]

Applicable rates

3.00%

London Interbank Offered Rate (LIBOR) |
Minimum

Debt Instrument [Line Items]

Applicable rates

0.75%

Borrowings (Other Borrowings Narrative) (Details)

Dec. 31, 2017

USD ($)

Dec. 31, 2016

USD ($)

Dec. 31, 2017

Libbey Portugal

AICEP Loan

Loans Payable

USD ($)

Dec. 31, 2017

Libbey Portugal

AICEP Loan

Loans Payable

EUR (€)

Dec. 31, 2016

Libbey Portugal

AICEP Loan

Loans Payable

USD ($)

Jul. 24, 2014

Loans Payable

Libbey China

RMB Working Capital Loan

USD ($)

Jul. 24, 2014

Loans Payable

Libbey China

RMB Working Capital Loan

CNY

Dec. 31, 2017

Notes Payable

USD ($)

Dec. 31, 2017

Notes Payable

EUR (€)

Dec. 31, 2016

Notes Payable

USD ($)

Debt Instrument [Line Items]

Total borrowings

$ 387,685,000

$ 412,320,000

$ 3,085,000

€ 2,600,000

$ 3,320,000

$ 0

Interest rate

0.00%

6.78%

Debt instrument, face amount

3,300,000

20,000,000

Line of credit facility, maximum borrowing capacity

€ 800,000

Line of credit facility, interest rate at period end

5.80%

Income Taxes (Components of Income Before Income Taxes) (Details) (USD $)

In Thousands, unless otherwise specified

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Income Tax Disclosure [Abstract]

United States

$ (65,224)

$ 29,742

$ 27,146

Non-U.S.

(12,346)

(1,958)

971

Income (loss) before income taxes

$ (77,570)

$ 27,784

$ 28,117

Income Taxes (Current and Deferred Income Tax Expense) (Details) (USD $)

In Thousands, unless otherwise specified

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Current:

U.S. federal

$ (183)

$ 470

$ 300

Non-U.S.

4,517

7,625

9,142

U.S. state and local

834

201

162

Total current income tax provision (benefit)

5,168

8,296

9,604

Deferred:

U.S. federal

9,950

9,981

(44,068)

Non-U.S.

1,190

334

(3,078)

U.S. state and local

(510)

(900)

(674)

Total deferred income tax provision (benefit)

10,630

9,415

(47,820)

Total:

U.S. federal

9,767

10,451

(43,768)

Non-U.S.

5,707

7,959

6,064

U.S. state and local

324

(699)

(512)

Total income tax provision (benefit)

$ 15,798

$ 17,711

$ (38,216)

Income Taxes Income Taxes - Tax Cuts and Jobs Act (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2018

Forecast

Income Tax Contingency [Line Items]

Statutory U.S. federal income tax rate

35.00%

21.00%

Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount

$ 6.7

Income Taxes (Components of Deferred Income Tax Assets and Liabilities) (Details) (USD $)

In Thousands, unless otherwise specified

Dec. 31, 2017

Dec. 31, 2016

Deferred income tax assets:

Pension

$ 8,108

$ 11,799

Non-pension post-retirement benefits

13,385

22,810

Other accrued liabilities

13,213

19,244

Receivables

2,118

2,756

Net operating loss and charitable contribution carry forward

16,599

16,861

Tax credits

13,288

11,502

Total deferred income tax assets

66,711

84,972

Valuation allowance

(19,076)

(13,773)

Net deferred income tax assets

47,635

71,199

Deferred income tax liabilities:

Property, plant and equipment

18,246

23,921

Inventories

1,639

3,866

Intangibles and other

4,708

5,255

Total deferred income tax liabilities

24,593

33,042

Net deferred income tax asset

$ 23,042

$ 38,157

Income Taxes (Balance Sheet Locations of Deferred Tax Assets and Liabilities) (Details) (USD $)

In Thousands, unless otherwise specified

Dec. 31, 2017

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Non-current deferred income tax asset

$ 24,892

$ 40,016

Non-current deferred income tax liability

(1,850)

(1,859)

Net deferred income tax asset

$ 23,042

$ 38,157

Income Taxes (Net Operating Loss Carry Forwards) (Details) (USD $)

In Thousands, unless otherwise specified

Dec. 31, 2017

Dec. 31, 2016

Operating Loss Carryforwards [Line Items]

Deferred income tax asset

$ 16,599

$ 16,861

Foreign

Operating Loss Carryforwards [Line Items]

Operating Loss Carryforwards

43,300

Netherlands

Operating Loss Carryforwards [Line Items]

Operating Loss Carryforwards

40,487

24,811

Mexico

Operating Loss Carryforwards [Line Items]

Operating Loss Carryforwards

1,700

0

China

Operating Loss Carryforwards [Line Items]

Operating Loss Carryforwards

1,155

825

Portugal

Operating Loss Carryforwards [Line Items]

Operating Loss Carryforwards

0

629

U.S. Federal

Operating Loss Carryforwards [Line Items]

Operating Loss Carryforwards

15,600

23,019

U.S. State and Local Jurisdictions

Operating Loss Carryforwards [Line Items]

Operating Loss Carryforwards

$ 41,800

$ 58,551

Income Taxes (Tax Credits) (Details) (USD $)

Dec. 31, 2017

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Netherlands foreign tax credits

$ 9,082,000

$ 7,695,000

U.S. general business credits

2,885,000

2,628,000

U.S. alternative minimum tax credits

1,321,000

1,179,000

Deferred tax credits

13,288,000

11,502,000

Future U.S. taxable income needed to realize deferred tax assets

$ 154,600,000

Income Taxes (Reconciliation of Statutory to Effective Income Tax Rate) (Details)

In Millions, unless otherwise specified

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Aug. 31, 2016

Mexico

Tax Year 2010 [Member]

USD ($)

Aug. 31, 2016

Mexico

Tax Year 2010 [Member]

MXN ($)

Income Tax Contingency [Line Items]

Administrative Assessment Amount from Tax Administration Service

$ 157

$ 3,000

Statutory U.S. federal income tax rate

35.00%

Increase (decrease) in rate due to:

Non-U.S. income tax differential

1.20%

(2.10%)

(0.90%)

U.S. state and local income taxes, net of related U.S. federal income taxes

0.10%

(1.30%)

(2.00%)

U.S. federal credits

0.30%

(2.20%)

0.00%

Permanent adjustments

0.60%

3.80%

7.50%

Foreign withholding taxes

(2.00%)

5.70%

4.70%

Valuation allowance

(4.40%)

11.10%

(174.80%)

Unrecognized tax benefits

(3.90%)

10.00%

(0.30%)

Impact of foreign exchange

(1.60%)

3.40%

(19.80%)

Tax effect of intercompany capitalization

0.00%

11.70%

Impact of legislative change

(8.70%)

0.00%

Goodwill impairment

(36.00%)

0.00%

Other

(1.00%)

0.30%

3.00%

Consolidated effective income tax rate

(20.40%)

63.70%

(135.90%)

Temporary Difference, Undistributed Earnings of Foreign Subsidiaries

11.4

27.7

Income Taxes (Change in Unrecognized Tax Benefits) (Details) (USD $)

In Thousands, unless otherwise specified

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]

Beginning balance

$ 3,521

$ 431

$ 378

Additions based on tax positions related to the current year

435

382

293

Additions for tax positions of prior years

1,735

3,001

0

Reductions for tax positions of prior years

(468)

(293)

0

Changes due to lapse of statute of limitations

279

0

(240)

Reductions due to settlements with tax authorities

(495)

0

Ending balance

$ 5,007

$ 3,521

$ 431

Income Taxes (Other Unrecognized Tax Benefits Disclosures) (Details) (USD $)

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate

$ 4,107,000

$ 3,414,000

$ 378,000

Interest, net of tax benefit, accrued in the Consolidated Balance Sheets

572,000

92,000

28,000

Penalties, accrued in the Consolidated Balance Sheets

38,000

181,000

0

Interest expense (benefit) recognized in the Consolidated Statements of Operations

506,000

64,000

(146,000)

Interest expense (benefit) recognized in the Consolidated Statements of Operations

(67,000)

181,000

0

Reasonably possible decrease in gross unrecognized tax benefits, within 12 months

$ 3,600,000

Pension Pension (Narrative) (Details) (USD $)

12 Months Ended

3 Months Ended

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

NETHERLANDS

Non-U.S. Plans

Dec. 31, 2017

NETHERLANDS

Non-U.S. Plans

Dec. 31, 2016

NETHERLANDS

Non-U.S. Plans

Defined Benefit Plan Disclosure [Line Items]

Employer contributions due to the unwinding of Dutch defined benefit pension plan

$ 5,200,000

Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position

0

Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement

(21,600,000)

Defined Contribution Plan, Cost

$ 3,600,000

$ 3,400,000

$ 1,900,000

Pension (Net Pension Expense) (Details) (Pension Plan, USD $)

In Thousands, unless otherwise specified

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Defined Benefit Plan Disclosure [Line Items]

Service cost (benefits earned during the period)

$ 5,001

$ 4,943

$ 7,330

Interest cost on projected benefit obligation

16,536

17,557

19,047

Expected return on plan assets

(22,479)

(23,027)

(25,108)

Amortization of unrecognized:

Prior service cost (credit)

32

56

173

Actuarial loss

5,826

5,054

8,890

Settlement charge

245

168

21,587

Curtailment credit

0

(14)

Pension expense

5,161

4,751

31,905

U.S. Plans

Defined Benefit Plan Disclosure [Line Items]

Service cost (benefits earned during the period)

3,916

3,717

4,365

Interest cost on projected benefit obligation

13,787

14,963

14,715

Expected return on plan assets

(22,479)

(23,027)

(22,661)

Amortization of unrecognized:

Prior service cost (credit)

236

263

417

Actuarial loss

5,232

4,272

7,291

Settlement charge

245

42

13

Curtailment credit

0

Pension expense

937

230

4,140

Non-U.S. Plans

Defined Benefit Plan Disclosure [Line Items]

Service cost (benefits earned during the period)

1,085

1,226

2,965

Interest cost on projected benefit obligation

2,749

2,594

4,332

Expected return on plan assets

0

(2,447)

Amortization of unrecognized:

Prior service cost (credit)

(204)

(207)

(244)

Actuarial loss

594

782

1,599

Settlement charge

0

126

21,574

Curtailment credit

0

(14)

Pension expense

$ 4,224

$ 4,521

$ 27,765

Pension (Assumptions Used) (Details) (Pension Plan)

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

U.S. Plans

Assumptions Used Determine Net Periodic Pension Costs:

Expected long-term rate of return on plan assets

7.00%

7.25%

U.S. Plans |
Minimum

Assumptions Used Determine Benefit Obligation:

Discount rate

3.64%

4.18%

Assumptions Used Determine Net Periodic Pension Costs:

Discount rate

4.18%

4.66%

4.17%

U.S. Plans |
Maximum

Assumptions Used Determine Benefit Obligation:

Discount rate

3.69%

4.23%

Assumptions Used Determine Net Periodic Pension Costs:

Discount rate

4.23%

4.73%

4.29%

Non-U.S. Plans

Assumptions Used Determine Benefit Obligation:

Discount rate

9.40%

9.30%

Rate of compensation increase

4.30%

Assumptions Used Determine Net Periodic Pension Costs:

Discount rate

9.30%

8.10%

Expected long-term rate of return on plan assets

4.00%

Rate of compensation increase

4.30%

Non-U.S. Plans |
Minimum

Assumptions Used Determine Net Periodic Pension Costs:

Discount rate

2.30%

Rate of compensation increase

2.00%

Non-U.S. Plans |
Maximum

Assumptions Used Determine Net Periodic Pension Costs:

Discount rate

7.60%

Rate of compensation increase

4.30%

Pension (Projected Benefit Obligation and Fair Value of Assets) (Details) (Pension Plan, USD $)

In Thousands, unless otherwise specified

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Change in projected benefit obligation:

Benefit obligation, beginning of year

$ 364,809

$ 361,778

Service cost

5,001

4,943

7,330

Interest cost

16,536

17,557

19,047

Exchange rate fluctuations

1,214

(5,821)

Actuarial (gain) loss

24,400

8,631

Settlements paid

(281)

(259)

Benefits paid

(25,659)

(22,020)

Benefit obligation, end of year

386,020

364,809

361,778

Change in fair value of plan assets:

Fair value of plan assets, beginning of year

318,414

316,184

Actual return on plan assets

47,595

20,974

Employer contributions

3,150

3,535

Settlements paid

(281)

(259)

Benefits paid

(25,659)

(22,020)

Fair value of plan assets, end of year

343,219

318,414

316,184

Funded status of plan:

Funded ratio

88.90%

87.30%

Funded status and net accrued pension benefit cost

(42,801)

(46,395)

U.S. Plans

Change in projected benefit obligation:

Benefit obligation, beginning of year

336,648

325,863

Service cost

3,916

3,717

4,365

Interest cost

13,787

14,963

14,715

Exchange rate fluctuations

0

Actuarial (gain) loss

22,991

11,108

Settlements paid

(281)

(259)

Benefits paid

(23,008)

(18,744)

Benefit obligation, end of year

354,053

336,648

325,863

Change in fair value of plan assets:

Fair value of plan assets, beginning of year

318,414

316,184

Actual return on plan assets

47,595

20,974

Employer contributions

499

259

Settlements paid

(281)

(259)

Benefits paid

(23,008)

(18,744)

Fair value of plan assets, end of year

343,219

318,414

316,184

Funded status of plan:

Funded ratio

96.90%

94.60%

Funded status and net accrued pension benefit cost

(10,834)

(18,234)

Non-U.S. Plans

Change in projected benefit obligation:

Benefit obligation, beginning of year

28,161

35,915

Service cost

1,085

1,226

2,965

Interest cost

2,749

2,594

4,332

Exchange rate fluctuations

1,214

(5,821)

Actuarial (gain) loss

1,409

(2,477)

Settlements paid

0

Benefits paid

(2,651)

(3,276)

Benefit obligation, end of year

31,967

28,161

35,915

Change in fair value of plan assets:

Fair value of plan assets, beginning of year

0

Actual return on plan assets

0

Employer contributions

2,651

3,276

Settlements paid

0

Benefits paid

(2,651)

(3,276)

Fair value of plan assets, end of year

0

Funded status of plan:

Funded ratio

0.00%

Funded status and net accrued pension benefit cost

$ (31,967)

$ (28,161)

Pension (Amounts Recognized in Balance Sheet) (Details) (USD $)

In Thousands, unless otherwise specified

Dec. 31, 2017

Dec. 31, 2016

Defined Benefit Plan Disclosure [Line Items]

Pension asset

$ 2,939

$ 0

Pension liability (current portion)

2,185

2,461

Pension liability

43,555

43,934

Pension Plan

Defined Benefit Plan Disclosure [Line Items]

Pension asset

2,939

0

Pension liability (current portion)

2,185

2,461

Pension liability

43,555

43,934

Net accrued pension liability

$ (42,801)

$ (46,395)

Pension (Pre-tax Amounts Recognized in Accumulated Other Comprehensive Loss) (Details) (Pension Plan, USD $)

In Thousands, unless otherwise specified

Dec. 31, 2017

Dec. 31, 2016

Defined Benefit Plan Disclosure [Line Items]

Net actuarial loss

$ 110,606

$ 116,907

Prior service cost (credit)

(2,635)

(2,467)

Total cost (credit)

107,971

114,440

U.S. Plans

Defined Benefit Plan Disclosure [Line Items]

Net actuarial loss

98,228

105,830

Prior service cost (credit)

1

237

Total cost (credit)

98,229

106,067

Non-U.S. Plans

Defined Benefit Plan Disclosure [Line Items]

Net actuarial loss

12,378

11,077

Prior service cost (credit)

(2,636)

(2,704)

Total cost (credit)

$ 9,742

$ 8,373

Pension (Amounts in Accumulated Other Comprehensive Loss to be Recognized During 2018) (Details) (Pension Plan, USD $)

In Thousands, unless otherwise specified

Dec. 31, 2017

Defined Benefit Plan Disclosure [Line Items]

Net actuarial loss

$ 7,151

Prior service cost (credit)

(194)

Total cost (credit)

6,957

U.S. Plans

Defined Benefit Plan Disclosure [Line Items]

Net actuarial loss

6,546

Prior service cost (credit)

1

Total cost (credit)

6,547

Non-U.S. Plans

Defined Benefit Plan Disclosure [Line Items]

Net actuarial loss

605

Prior service cost (credit)

(195)

Total cost (credit)

$ 410

Pension (Contributions to Pension Plans) (Details) (Pension Plan, USD $)

In Thousands, unless otherwise specified

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Defined Benefit Plan Disclosure [Line Items]

Estimated contributions in 2018

$ 2,279

Employer contributions

3,150

3,535

U.S. Plans

Defined Benefit Plan Disclosure [Line Items]

Estimated contributions in 2018

131

Employer contributions

499

259

Non-U.S. Plans

Defined Benefit Plan Disclosure [Line Items]

Estimated contributions in 2018

2,148

Employer contributions

$ 2,651

$ 3,276

Pension (Anticipated Benefit Payments) (Details) (Pension Plan, USD $)

In Thousands, unless otherwise specified

Dec. 31, 2017

Defined Benefit Plan Disclosure [Line Items]

2018

$ 21,986

2019

21,772

2020

22,035

2021

22,862

2022

23,212

2023-2027

120,075

U.S. Plans

Defined Benefit Plan Disclosure [Line Items]

2018

19,838

2019

19,765

2020

19,842

2021

20,304

2022

20,525

2023-2027

104,932

Non-U.S. Plans

Defined Benefit Plan Disclosure [Line Items]

2018

2,148

2019

2,007

2020

2,193

2021

2,558

2022

2,687

2023-2027

$ 15,143

Pension (Accumulated Benefit Obligation in Excess of Plan Assets) (Details) (Pension Plan, USD $)

In Thousands, unless otherwise specified

Dec. 31, 2017

Dec. 31, 2016

Defined Benefit Plan Disclosure [Line Items]

Projected benefit obligation

$ 300,854

$ 364,809

Accumulated benefit obligation

295,942

359,842

Fair value of plan assets

255,115

318,414

U.S. Plans

Defined Benefit Plan Disclosure [Line Items]

Projected benefit obligation

268,887

336,648

Accumulated benefit obligation

268,887

336,648

Fair value of plan assets

255,115

318,414

Non-U.S. Plans

Defined Benefit Plan Disclosure [Line Items]

Projected benefit obligation

31,967

28,161

Accumulated benefit obligation

27,055

23,194

Fair value of plan assets

$ 0

Pension (Plan Asset Allocation, Fair Value) (Details) (Pension Plan, USD $)

In Thousands, unless otherwise specified

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Defined Benefit Plan Disclosure [Line Items]

Fair value of plan assets

$ 343,219

$ 318,414

$ 316,184

U.S. Plans

Defined Benefit Plan Disclosure [Line Items]

Fair value of plan assets

343,219

318,414

316,184

Target allocation

100.00%

U.S. Plans |
Short-term investments

Defined Benefit Plan Disclosure [Line Items]

Target allocation

3.00%

U.S. Plans |
Real estate

Defined Benefit Plan Disclosure [Line Items]

Target allocation

5.00%

U.S. Plans |
Equity securities

Defined Benefit Plan Disclosure [Line Items]

Target allocation

45.00%

U.S. Plans |
Debt securities

Defined Benefit Plan Disclosure [Line Items]

Target allocation

37.00%

U.S. Plans |
Hedge funds

Defined Benefit Plan Disclosure [Line Items]

Target allocation

10.00%

U.S. Plans |
Level Two |
Hedge funds

Defined Benefit Plan Disclosure [Line Items]

Fair value of plan assets

9,100 ¹

Measured at NAV as a practical expedient |
U.S. Plans

Defined Benefit Plan Disclosure [Line Items]

Fair value of plan assets

343,219

318,414

Measured at NAV as a practical expedient |
U.S. Plans |
Short-term investments

Defined Benefit Plan Disclosure [Line Items]

Fair value of plan assets

8,061

8,766

Measured at NAV as a practical expedient |
U.S. Plans |
Real estate

Defined Benefit Plan Disclosure [Line Items]

Fair value of plan assets

16,390

15,812

Measured at NAV as a practical expedient |
U.S. Plans |
Equity securities

Defined Benefit Plan Disclosure [Line Items]

Fair value of plan assets

156,434

148,302

Measured at NAV as a practical expedient |
U.S. Plans |
Debt securities

Defined Benefit Plan Disclosure [Line Items]

Fair value of plan assets

125,671

96,658

Measured at NAV as a practical expedient |
U.S. Plans |
Hedge funds

Defined Benefit Plan Disclosure [Line Items]

Fair value of plan assets

$ 36,663 ¹

$ 48,876

[1] Includes $9.1 million of hedge funds valued daily at NAV which is considered to be a Level 2 investment in the fair value hierarchy. See note 14 for discussion of the fair value hierarchy.

Non-pension Post-retirement Benefits (Net Benefit Costs) (Details) (Non-pension Post-retirement Benefit Plans, USD $)

In Thousands, unless otherwise specified

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Defined Benefit Plan Disclosure [Line Items]

Service cost (benefits earned during the period)

$ 632

$ 798

$ 856

Interest cost on projected benefit obligation

2,148

2,659

2,589

Amortization of unrecognized:

Prior service cost (credit)

(201)

140

Actuarial loss (gain)

(316)

34

536

Non-pension post-retirement benefit expense

2,263

3,631

4,121

U.S. Plans

Defined Benefit Plan Disclosure [Line Items]

Service cost (benefits earned during the period)

631

797

855

Interest cost on projected benefit obligation

2,104

2,608

2,537

Amortization of unrecognized:

Prior service cost (credit)

(201)

140

Actuarial loss (gain)

(257)

81

592

Non-pension post-retirement benefit expense

2,277

3,626

4,124

Non-U.S. Plans

Defined Benefit Plan Disclosure [Line Items]

Service cost (benefits earned during the period)

1

Interest cost on projected benefit obligation

44

51

52

Amortization of unrecognized:

Prior service cost (credit)

0

Actuarial loss (gain)

(59)

(47)

(56)

Non-pension post-retirement benefit expense

$ (14)

$ 5

$ (3)

Non-pension Post-retirement Benefits (Assumptions Used) (Details) (Other Post-retirement Benefits Plan)

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

U.S. Plans

Defined Benefit Plan Disclosure [Line Items]

Discount rate used to determine accumulated postretirement benefit obligation

3.60%

4.05%

4.56%

Discount rate used to determine net postretirement benefit cost

4.05%

4.56%

4.10%

Non-U.S. Plans

Defined Benefit Plan Disclosure [Line Items]

Discount rate used to determine accumulated postretirement benefit obligation

3.26%

3.48%

3.69%

Discount rate used to determine net postretirement benefit cost

3.48%

3.69%

3.61%

Non-pension Post-retirement Benefits (Health Care Cost Trends) (Details) (Other Post-retirement Benefits Plan)

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

U.S. Plans

Defined Benefit Plan Disclosure [Line Items]

Healthcare cost trend rate assumed for next year

6.50%

6.75%

Ultimate healthcare trend rate

5.00%

Year that ultimate trend rate is reached

2024

Non-U.S. Plans

Defined Benefit Plan Disclosure [Line Items]

Healthcare cost trend rate assumed for next year

6.50%

6.75%

Ultimate healthcare trend rate

5.00%

Year that ultimate trend rate is reached

2024

Non-pension Post-retirement Benefits (Change in Accumulated Benefit Obligation) (Details) (Non-pension Post-retirement Benefit Plans, USD $)

In Thousands, unless otherwise specified

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Change in projected benefit obligation:

Benefit obligation, beginning of year

$ 60,265

$ 60,185

Service cost

632

798

856

Interest cost

2,148

2,659

2,589

Plan participants' contributions

525

528

Actuarial (gain) loss

(5,591)

44

Exchange rate fluctuations

90

46

Benefits paid

(4,126)

(3,995)

Benefit obligation, end of year

53,943

60,265

60,185

Funded status and accrued benefit cost

(53,943)

(60,265)

U.S. Plans

Change in projected benefit obligation:

Benefit obligation, beginning of year

58,921

58,795

Service cost

631

797

855

Interest cost

2,104

2,608

2,537

Plan participants' contributions

525

528

Actuarial (gain) loss

(5,483)

146

Exchange rate fluctuations

0

Benefits paid

(4,050)

(3,953)

Benefit obligation, end of year

52,648

58,921

58,795

Funded status and accrued benefit cost

(52,648)

(58,921)

Non-U.S. Plans

Change in projected benefit obligation:

Benefit obligation, beginning of year

1,344

1,390

Service cost

1

Interest cost

44

51

52

Plan participants' contributions

0

Actuarial (gain) loss

(108)

(102)

Exchange rate fluctuations

90

46

Benefits paid

(76)

(42)

Benefit obligation, end of year

1,295

1,344

1,390

Funded status and accrued benefit cost

$ (1,295)

$ (1,344)

Non-pension Post-retirement Benefits (Amounts Recognized in Balance Sheet) (Details) (USD $)

In Thousands, unless otherwise specified

Dec. 31, 2017

Dec. 31, 2016

Defined Benefit Plan Disclosure [Line Items]

Non-pension post-retirement benefits (current portion)

$ 4,185

$ 4,892

Non-pension post-retirement benefits

49,758

55,373

Non-pension Post-retirement Benefit Plans

Defined Benefit Plan Disclosure [Line Items]

Non-pension post-retirement benefits (current portion)

4,185

4,892

Non-pension post-retirement benefits

49,758

55,373

Total non-pension post-retirement benefits liability

$ 53,943

$ 60,265

Non-pension Post-retirement Benefits (Pre-tax Amounts Recognized in Accumulated Other Comprehensive Loss) (Details) (Non-pension Post-retirement Benefit Plans, USD $)

In Thousands, unless otherwise specified

Dec. 31, 2017

Dec. 31, 2016

Defined Benefit Plan Disclosure [Line Items]

Net actuarial loss (gain)

$ (912)

$ 4,416

Prior service cost (credit)

(1,262)

(1,463)

Total cost (credit)

(2,174)

2,953

U.S. Plans

Defined Benefit Plan Disclosure [Line Items]

Net actuarial loss (gain)

(80)

5,146

Prior service cost (credit)

(1,262)

(1,463)

Total cost (credit)

(1,342)

3,683

Non-U.S. Plans

Defined Benefit Plan Disclosure [Line Items]

Net actuarial loss (gain)

(832)

(730)

Prior service cost (credit)

0

Total cost (credit)

$ (832)

$ (730)

Non-pension Post-retirement Benefits (Amounts in Accumulated Other Comprehensive Loss to be Recognized During 2018) (Details) (Non-pension Post-retirement Benefit Plans, USD $)

In Thousands, unless otherwise specified

Dec. 31, 2017

Defined Benefit Plan Disclosure [Line Items]

Net actuarial loss (gain)

$ (276)

Prior service cost (credit)

(282)

Total cost (credit)

(558)

U.S. Plans

Defined Benefit Plan Disclosure [Line Items]

Net actuarial loss (gain)

(210)

Prior service cost (credit)

(282)

Total cost (credit)

(492)

Non-U.S. Plans

Defined Benefit Plan Disclosure [Line Items]

Net actuarial loss (gain)

(66)

Prior service cost (credit)

0

Total cost (credit)

$ (66)

Non-pension Post-retirement Benefits (Anticipated Benefit Payments) (Details) (Non-pension Post-retirement Benefit Plans, USD $)

In Thousands, unless otherwise specified

Dec. 31, 2017

Defined Benefit Plan Disclosure [Line Items]

2018

$ 4,259

2019

4,183

2020

4,118

2021

3,992

2022

3,983

2023-2027

17,221

U.S. Plans

Defined Benefit Plan Disclosure [Line Items]

2018

4,098

2019

4,024

2020

3,965

2021

3,850

2022

3,853

2023-2027

16,848

Non-U.S. Plans

Defined Benefit Plan Disclosure [Line Items]

2018

161

2019

159

2020

153

2021

142

2022

130

2023-2027

$ 373

Net Income per Share of Common Stock (Narrative) (Details) (USD $)

In Thousands, except Share data, unless otherwise specified

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Numerator for earnings per share:

Net income (loss) that is available to common shareholders

$ (93,368)

$ 10,073

$ 66,333

Denominator for basic earnings per share:

Weighted average shares outstanding

22,031,000

21,880,000

21,816,935

Denominator for diluted earnings per share:

Effect of stock options and restricted stock units

0

169,330

342,214

Adjusted weighted average shares and assumed conversions

22,030,672

22,049,000

22,159,000

Basic earnings (loss) per share

$ (4.24)

$ 0.46

$ 3.04

Diluted earnings (loss) per share

$ (4.24)

$ 0.46

$ 2.99

Antidilutive Securities Due to Effect of Period Loss [Member]

Shares excluded from diluted earnings per share due to:

85,588

0

Antidilutive Securities, Excluded From Calculation [Member]

Shares excluded from diluted earnings per share due to:

846,747

602,402

105,201

Employee Stock Benefit Plans (Narrative) (Details) (USD $)

In Millions, except Share data, unless otherwise specified

12 Months Ended

Dec. 31, 2017

unit

Dec. 31, 2017

Stock Options

Dec. 31, 2016

Stock Options

Dec. 31, 2015

Stock Options

Dec. 31, 2017

Stock Appreciation Rights (SARs)

Dec. 31, 2016

Stock Appreciation Rights (SARs)

Dec. 31, 2015

Stock Appreciation Rights (SARs)

Dec. 31, 2017

Restricted Stock Units (RSUs)

Dec. 31, 2016

Restricted Stock Units (RSUs)

Dec. 31, 2015

Restricted Stock Units (RSUs)

Dec. 31, 2017

Cash Settled Restricted Stock Units (CRSUs)

Dec. 31, 2016

Cash Settled Restricted Stock Units (CRSUs)

Dec. 31, 2015

Cash Settled Restricted Stock Units (CRSUs)

Dec. 31, 2013

Chief Executive Officer [Member]

Stock Appreciation Rights (SARs)

Dec. 31, 2015

Chief Executive Officer [Member]

Cash Settled Restricted Stock Units (CRSUs)

Dec. 31, 2017

2006 A&R Omnibus Incentive Plan [Member]

Dec. 31, 2017

2016 Omnibus Incentive Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Share-based compensation arrangement by share-based payment award, Number of plans

2

Shares of common stock authorized for issuance as equity-based compensation

2,960,000

1,200,000

Award vesting period

4 years

Award expiration period

10 years

Unrecognized compensation expense related to nonvested stock options

$ 0.6

Weighted average period for unrecognized compensation costs to be recognized

2 years 4 months 17 days

1 year 10 months 24 days

Total fair value of shares (options) vested during period

0.7

1.6

1.7

Granted

26,839

0

278,351

298,909

219,010

0

16,299

1,025

240,829

115,687

Total fair value of shares (non-options) vested during period

1.9

3.0

4.2

Unrecognized compensation expense related to nonvested non-option awards

$ 1.9

Employee Stock Benefit Plans (Non-Qualified Stock Option Information) (Details) (USD $)

In Thousands, except Share data, unless otherwise specified

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Granted

249,392

351,590

108,297

Weighted-average grant-date fair value of options granted using the Black-Scholes model

$ 3.00

$ 4.20

$ 14.72

Stock Options

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Granted

249,392

351,590

108,297

Stock option compensation expense included in the Consolidated Statements of Operations

$ 690

$ 705

$ 1,674

Weighted-average grant-date fair value of options granted using the Black-Scholes model

$ 3.00

$ 4.20

$ 14.72

Weighted-average assumptions for stock option grants:

Risk-free interest

2.07%

1.30%

1.68%

Expected term

5 years 9 months 18 days

6 years 3 months 18 days

6 years 4 months 24 days

Expected volatility

38.54%

33.14%

39.92%

Dividend yield

4.32%

2.69%

1.16%

Employee Stock Benefit Plans (Stock Option Activity) (Details) (USD $)

In Thousands, except Share data, unless otherwise specified

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]

Outstanding balance at beginning of period

645,223

656,671

834,010

Granted

249,392

351,590

108,297

Exercised

(33,389)

(100,813)

(241,122)

Canceled

(98,676)

(262,225)

(44,514)

Outstanding balance at end of period

762,550

645,223

656,671

834,010

Exercisable balance at end of period

333,761

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]

Outstanding, weighted-average exercise price, balance at beginning of period (in USD per share)

$ 19.17

$ 21.22

$ 17.28

Granted, weighted-average exercise price (in USD per share)

$ 11.74

$ 17.23

$ 36.90

Exercised, weighted-average exercise price (in USD per share)

$ 13.96

$ 13.90

$ 13.85

Canceled, weighted-average exercise price (in USD per share)

$ 19.42

$ 23.73

$ 25.43

Outstanding, weighted-average exercise price, balance at end of period (in USD per share)

$ 16.91

$ 19.17

$ 21.22

$ 17.28

Outstanding, weighted-average remaining contractual life

6 years 11 months 23 days

6 years 7 months 24 days

6 years 10 months 2 days

6 years 7 months 28 days

Outstanding, aggregate intrinsic value

$ 64

$ 1,407

$ 2,103

$ 11,808

Exercised, aggregate intrinsic value

17

379

5,722

Exercisable balance at end of period, weighted-average exercise price (in USD per share)

$ 19.26

Exercisable, weighted average remaining contractual life

4 years 9 months 7 days

Exercisable, aggregate intrinsic value

$ 35

Employee Stock Benefit Plans (Nonvested Stock Option Activity) (Details) (USD $)

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward]

Nonvested at beginning of period

344,935

342,002

438,515

Granted

249,392

351,590

108,297

Vested

(108,449)

(169,703)

(161,923)

Forfeited

(57,089)

(178,954)

(42,887)

Nonvested at end of period

428,789

344,935

342,002

Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]

Nonvested at beginning of period, weighted-average value (in USD per share)

$ 6.14

$ 10.95

$ 9.91

Granted, weighted-average value (in USD per share)

$ 3.00

$ 4.20

$ 14.72

Vested, weighted-average value (in USD per share)

$ 6.69

$ 9.42

$ 10.55

Forfeited, weighted-average value (in USD per share)

$ 6.23

$ 8.41

$ 11.32

Nonvested at end of period, weighted-average value (in USD per share)

$ 4.16

$ 6.14

$ 10.95

Employee Stock Benefit Plans (Stock Appreciation Rights Information) (Details) (Stock Appreciation Rights (SARs), USD $)

In Thousands, except Share data, unless otherwise specified

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Stock Appreciation Rights (SARs)

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Granted

26,839

0

Stock appreciation rights compensation expense (benefit) included in the Consolidated Statements of Operations

$ 39

$ (462)

$ (273)

Weighted-average grant-date fair value of stock appreciation rights granted using the Black-Scholes model

$ 0.19

Weighted average assumptions for stock appreciation right grants:

Risk-free interest

2.17%

Expected term

4 years 5 months 19 days

Expected volatility

38.93%

Dividend yield

6.10%

Employee Stock Benefit Plans (Stock Appreciation Right Activity) (Details) (Stock Appreciation Rights (SARs), USD $)

In Thousands, except Share data, unless otherwise specified

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Stock Appreciation Rights (SARs)

Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]

Outstanding balance at beginning of period

244,229

Granted

26,839

0

Exercised

(7,060)

Canceled

(240,829)

Outstanding balance at end of period

23,179

244,229

Exercisable balance at end of period

19,999

Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Weighted Average Exercise Price [Roll Forward]

Outstanding, weighted-average exercise price, balance at beginning of period (in USD per share)

$ 21.27

Granted, weighted-average exercise price (in USD per share)

$ 17.19

Exercised, weighted-average exercise price (in USD per share)

$ 7.16

Canceled, weighted-average exercise price (in USD per share)

$ 21.29

Outstanding, weighted-average exercise price, balance at end of period (in USD per share)

$ 20.66

$ 21.27

Outstanding, weighted-average remaining contractual life

5 years 2 months 12 days

1 month 6 days

8 years

9 years

Outstanding, aggregate intrinsic value

$ 0

$ 4

$ 14

$ 2,483

Share-based Compensation Arrangement by Share-based Payment Award, Other than Options, Exercises in Period, Intrinsic Value

56

Share-based Compensation Arrangement By Share-based Payment Award, Non-option Equity Instruments, Exercisable, Weighted Average Exercise Price

$ 20.29

Share-based compensation arrangement by share-based payment award, non-option equity instruments, exercisable, weighted average remaining contractual life

5 years

Share-based Compensation Arrangement By Share-based Payment Award, Non-option Equity Instruments, Exercisable, Intrinsic Value

$ 0

Employee Stock Benefit Plans (Nonvested Stock Appreciation Right Activity) (Details) (Stock Appreciation Rights (SARs), USD $)

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Stock Appreciation Rights (SARs)

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]

Nonvested at beginning of period

1,150

242,979

244,229

Granted

26,839

0

Vested

(24,809)

(241,829)

(1,250)

Nonvested at end of period

3,180

1,150

242,979

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]

Nonvested at beginning of period, weighted-average value (in USD per Share)

$ 9.88

$ 10.37

Weighted-average grant-date fair value of stock appreciation rights granted using the Black-Scholes model

$ 0.19

Vested, weighted-average value (in USD per share)

$ 0.29

$ 10.38

$ 10.33

Nonvested at end of period, weighted-average value (in USD per Share)

$ 1.32

$ 9.88

$ 10.37

Employee Stock Benefit Plans (Restricted Stock Unit Activity) (Details) (Restricted Stock Units (RSUs), USD $)

In Thousands, except Share data, unless otherwise specified

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Restricted Stock Units (RSUs)

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]

Nonvested at beginning of period

283,188

315,434

232,824

Granted

278,351

298,909

219,010

Vested

(154,995)

(165,372)

(113,319)

Forfeited

(52,340)

(165,783)

(23,081)

Nonvested at end of period

354,204

283,188

315,434

Weighted-average grant-date fair value of stock appreciation rights granted using the Black-Scholes model

$ 10.38

$ 16.22

$ 35.93

Compensation expense

$ 2,682

$ 3,019

$ 4,199

Employee Stock Benefit Plans (Cash Settled Restricted Stock Unit Activity) (Details) (Cash Settled Restricted Stock Units (CRSUs), USD $)

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Cash Settled Restricted Stock Units (CRSUs)

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]

Nonvested at beginning of period

17,067

116,712

115,687

Granted

0

16,299

1,025

Vested

(5,080)

(115,944)

0

Forfeited

(1,092)

0

Nonvested at end of period

10,895

17,067

116,712

Weighted-average grant-date fair value of stock appreciation rights granted using the Black-Scholes model

$ 0.00

$ 3.57

$ 36.96

Compensation expense

$ 49,000

$ 1,504,000

$ 317,000

Cash paid to settle cash settled restricted stock units

$ 2,300,000

Employee Stock Benefit Plans (401(k) Plan Narrative) (Details) (USD $)

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Schedule of Defined Contribution Plans Disclosures [Line Items]

Annual limit on eligible earnings imposed by Internal Revenue Code

$ 270,000

Total matching contribution to all Plans

3,600,000

3,400,000

Salary Plan

Schedule of Defined Contribution Plans Disclosures [Line Items]

Minimum annual contribution per participating employee, percent

1.00%

Maximum annual contribution per employee, percent

50.00%

Employer matching contribution, percent of match

100.00%

Employer matching contribution, percent

6.00%

Maximum annual employer matching contributions per employee

16,200

Hourly Plan

Schedule of Defined Contribution Plans Disclosures [Line Items]

Minimum annual contribution per participating employee, percent

1.00%

Maximum annual contribution per employee, percent

25.00%

Employer matching contribution, percent of match

50.00%

Employer matching contribution, percent

6.00%

Maximum annual employer matching contributions per employee

$ 8,100

Derivatives (Fair Value of Derivative Assets and Liabilities) (Details) (USD $)

In Thousands, unless otherwise specified

Dec. 31, 2017

Dec. 31, 2016

Derivatives, Fair Value [Line Items]

Fair value, derivative asset

$ 646

$ 1,508

Fair value, derivative liability

716

2,035

Designated as Hedging Instrument

Derivatives, Fair Value [Line Items]

Fair value, derivative asset

646

747

Fair value, derivative liability

440

2,035

Not Designated as Hedging Instrument

Derivatives, Fair Value [Line Items]

Fair value, derivative asset

0

761

Fair value, derivative liability

276

0

Interest Rate Swap |
Designated as Hedging Instrument |
Other Assets

Derivatives, Fair Value [Line Items]

Fair value, derivative asset

646

0

Interest Rate Swap |
Designated as Hedging Instrument |
Derivative Liability

Derivatives, Fair Value [Line Items]

Fair value, derivative liability

213

1,928

Interest Rate Swap |
Designated as Hedging Instrument |
Other Long-Term Liabilities

Derivatives, Fair Value [Line Items]

Fair value, derivative liability

0

107

Natural Gas Contracts |
Designated as Hedging Instrument |
Prepaid and other current assets

Derivatives, Fair Value [Line Items]

Fair value, derivative asset

0

702

Natural Gas Contracts |
Designated as Hedging Instrument |
Other Assets

Derivatives, Fair Value [Line Items]

Fair value, derivative asset

0

45

Natural Gas Contracts |
Designated as Hedging Instrument |
Derivative Liability

Derivatives, Fair Value [Line Items]

Fair value, derivative liability

220

0

Natural Gas Contracts |
Designated as Hedging Instrument |
Other Long-Term Liabilities

Derivatives, Fair Value [Line Items]

Fair value, derivative liability

7

0

Natural Gas Contracts |
Not Designated as Hedging Instrument |
Prepaid and other current assets

Derivatives, Fair Value [Line Items]

Fair value, derivative asset

0

732

Natural Gas Contracts |
Not Designated as Hedging Instrument |
Other Assets

Derivatives, Fair Value [Line Items]

Fair value, derivative asset

0

29

Natural Gas Contracts |
Not Designated as Hedging Instrument |
Derivative Liability

Derivatives, Fair Value [Line Items]

Fair value, derivative liability

264

0

Natural Gas Contracts |
Not Designated as Hedging Instrument |
Other Long-Term Liabilities

Derivatives, Fair Value [Line Items]

Fair value, derivative liability

$ 12

$ 0

Derivatives Notional Amounts of Derivatives (Details)

In Thousands, unless otherwise specified

Dec. 31, 2017

Cash Flow Hedging

Natural Gas Contracts

MMBTU

Dec. 31, 2016

Cash Flow Hedging

Natural Gas Contracts

MMBTU

Dec. 31, 2017

Not Designated as Hedging Instrument

Currency Contracts

CAD ($)

Dec. 31, 2016

Not Designated as Hedging Instrument

Currency Contracts

CAD ($)

Dec. 31, 2017

Senior Loans

Cash Flow Hedging

Interest Rate Swap

USD ($)

Dec. 31, 2016

Senior Loans

Cash Flow Hedging

Interest Rate Swap

USD ($)

Derivative [Line Items]

Derivative, nonmonetary notional amount

2,480,000

2,590,000

Derivative, notional amount

$ 0

$ 220,000

Derivatives Derivatives - Cash Settlements (Details) (Cash Flow Hedging, USD $)

In Thousands, unless otherwise specified

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Derivative Instruments and Hedging Activities Disclosures [Line Items]

Derivative, Additional Cash Paid on Settlement of Hedge

$ (1,883)

$ (4,589)

$ (4,567)

Natural Gas Contracts

Derivative Instruments and Hedging Activities Disclosures [Line Items]

Derivative, Additional Cash Paid on Settlement of Hedge

(47)

(2,345)

(4,567)

Interest Rate Swap

Derivative Instruments and Hedging Activities Disclosures [Line Items]

Derivative, Additional Cash Paid on Settlement of Hedge

$ (1,836)

$ (2,244)

$ 0

Derivatives Summary of gains (losses) recognized in Statement of Operations and AOCI (Details) (Cash Flow Hedging, USD $)

In Thousands, unless otherwise specified

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Designated as Hedging Instrument

Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]

Effective portion of derivative gain (loss) reclassified from accumulated OCI to current earnings

$ (1,780)

$ (3,528)

$ (2,131)

Not Designated as Hedging Instrument

Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]

Gain (loss) recognized in current earnings

(1,036)

1,615

60

Other Comprehensive Income (Loss) |
Designated as Hedging Instrument

Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]

Effective portion of derivative gain (loss) recognized in OCI

(286)

(1,335)

(4,287)

Natural Gas Contracts |
Other Comprehensive Income (Loss) |
Designated as Hedging Instrument

Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]

Effective portion of derivative gain (loss) recognized in OCI

(1,019)

721

(1,909)

Natural Gas Contracts |
Cost of Sales |
Designated as Hedging Instrument

Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]

Effective portion of derivative gain (loss) reclassified from accumulated OCI to current earnings

(45)

(1,129)

(2,131)

Natural Gas Contracts |
Other Income (Expense) |
Not Designated as Hedging Instrument

Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]

Gain (loss) recognized in current earnings

(1,036)

1,860

218

Interest Rate Swap |
Other Comprehensive Income (Loss) |
Designated as Hedging Instrument

Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]

Effective portion of derivative gain (loss) recognized in OCI

733

(2,056)

(2,378)

Interest Rate Swap |
Interest Expense |
Designated as Hedging Instrument

Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]

Effective portion of derivative gain (loss) reclassified from accumulated OCI to current earnings

(1,735)

(2,399)

0

Currency Contracts |
Other Income (Expense) |
Not Designated as Hedging Instrument

Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]

Gain (loss) recognized in current earnings

$ 0

$ (245)

$ (158)

Derivatives (Narrative - Natural Gas Contracts) (Details) (Cash Flow Hedging, Natural Gas Contracts, USD $)

In Millions, unless otherwise specified

12 Months Ended

Dec. 31, 2017

Derivative [Line Items]

Maximum Length of Time Hedged in Cash Flow Hedge

18 months

Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months

$ (0.2)

Minimum

Derivative [Line Items]

Derivative, nonmonetary notional amount, percent of anticipated requirements

40.00%

Maximum

Derivative [Line Items]

Derivative, nonmonetary notional amount, percent of anticipated requirements

70.00%

Derivatives (Interest Rate Swap) (Details) (Cash Flow Hedging, Interest Rate Swap, USD $)

12 Months Ended

Dec. 31, 2017

Senior Loans

Dec. 31, 2016

Senior Loans

Derivative Instruments, Gain (Loss) [Line Items]

Derivative, notional amount

$ 220,000,000

Derivative, Fixed Interest Rate

4.85%

Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months

$ (200,000)

Accumulated Comprehensive Income (Loss) (Schedule of AOCI) (Details) (USD $)

In Thousands, unless otherwise specified

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Accumulated Other Comprehensive Income (Loss) [Line Items]

Beginning balance

$ (125,197)

$ (120,232)

$ (138,447)

Change in Accumulated Other Comprehensive Income (Loss) [Roll Forward]

Amounts recognized into AOCI

18,856

(18,307)

(13,834)

Currency impact

(152)

1,271

4,233

Amounts reclassified from AOCI

7,366

8,980

33,669

Tax effect

(6,045)

3,091

(5,853)

Other Comprehensive Income (Loss), Net of Tax

20,025

(4,965)

18,215

Ending balance

(105,172)

(125,197)

(120,232)

Foreign Currency Translation

Accumulated Other Comprehensive Income (Loss) [Line Items]

Beginning balance

(27,828)

(22,913)

(9,162)

Change in Accumulated Other Comprehensive Income (Loss) [Roll Forward]

Amounts recognized into AOCI

12,835

(6,244)

(13,751)

Currency impact

0

Amounts reclassified from AOCI, Currency

0

Tax effect

(1,190)

1,329

0

Other Comprehensive Income (Loss), Net of Tax

11,645

(4,915)

(13,751)

Ending balance

(16,183)

(27,828)

(22,913)

Derivative Instruments

Accumulated Other Comprehensive Income (Loss) [Line Items]

Beginning balance

(515)

(1,860)

(625)

Change in Accumulated Other Comprehensive Income (Loss) [Roll Forward]

Amounts recognized into AOCI

(286)

(1,335)

(4,287)

Currency impact

0

Amounts reclassified from AOCI, Derivatives

1,780 ¹

3,528 ¹

2,357 ¹

Tax effect

(628)

(848)

695

Other Comprehensive Income (Loss), Net of Tax

866

1,345

(1,235)

Ending balance

351

(515)

(1,860)

Pension and Other Postretirement Benefits

Accumulated Other Comprehensive Income (Loss) [Line Items]

Beginning balance

(96,854)

(95,459)

(128,660)

Change in Accumulated Other Comprehensive Income (Loss) [Roll Forward]

Amounts recognized into AOCI

6,307

(10,728)

4,204

Currency impact

(152)

1,271

4,233

Amounts reclassified from AOCI, Pension/PRW

5,586 ²

5,452 ²

31,312 ²

Tax effect

(4,227)

2,610

(6,548)

Other Comprehensive Income (Loss), Net of Tax

7,514

(1,395)

33,201

Ending balance

$ (89,340)

$ (96,854)

$ (95,459)

[1] We reclassified natural gas contracts through cost of sales and the interest rate swap through interest expense on the Consolidated Statements of Operations. See note 12 for additional information.

[2] We reclassified the net pension and non-pension post-retirement benefits amortization and settlement charges through cost of sales and selling, general and administrative expenses on the Consolidated Statements of Operations. See notes 8 and 9 for additional information.

Fair Value (Derivative Assets and Liabilities by Hierarchy) (Details) (Fair Value, Measurements, Recurring, USD $)

In Thousands, unless otherwise specified

Dec. 31, 2017

Dec. 31, 2016

Level One

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Net derivative asset (liability)

$ 0

Level Two

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Net derivative asset (liability)

(70)

(527)

Level Three

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Net derivative asset (liability)

0

Commodity Futures Natural Gas Contracts |
Level One

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Net derivative asset (liability)

0

Commodity Futures Natural Gas Contracts |
Level Two

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Net derivative asset (liability)

(503)

1,508

Commodity Futures Natural Gas Contracts |
Level Three

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Net derivative asset (liability)

0

Interest Rate Swap |
Level One

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Net derivative asset (liability)

0

Interest Rate Swap |
Level Two

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Net derivative asset (liability)

433

(2,035)

Interest Rate Swap |
Level Three

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Net derivative asset (liability)

0

Total

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Net derivative asset (liability)

(70)

(527)

Total |
Commodity Futures Natural Gas Contracts

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Net derivative asset (liability)

(503)

1,508

Total |
Interest Rate Swap

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Net derivative asset (liability)

$ 433

$ (2,035)

Fair Value Fair Value (Debt Disclosure) (Details) (USD $)

In Thousands, unless otherwise specified

Dec. 31, 2017

Dec. 31, 2016

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Term Loan B, Carrying Value

$ 387,685

$ 412,320

Libbey Glass |
Senior Loans

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Term Loan B, Carrying Value

384,600 ¹

409,000 ¹

Libbey Glass |
Senior Loans |
Level Two

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Term Loan B, Fair Value

$ 370,178

$ 412,068

[1] See interest rate swap under "Term Loan B" below and note 12.

Operating Leases (Details) (USD $)

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Leases [Abstract]

Rental expense for all non-cancelable operating leases

$ 17,000,000

$ 17,600,000

$ 17,500,000

Future minimum rentals under operating leases:

Future minimum operating lease payments due, 2018

15,542,000

Future minimum operating lease payments due, 2019

13,593,000

Future minimum operating lease payments due, 2020

11,496,000

Future minimum operating lease payments due, 2021

8,028,000

Future minimum operating lease payments due, 2022

7,178,000

Future minimum operating lease payments due, 2023 and thereafter

$ 24,675,000

Other Income (Expense) (Details) (USD $)

In Thousands, unless otherwise specified

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Component of Other Income (Expense), Nonoperating [Line Items]

Other income (expense)

$ (3,515)

$ 3,362

$ 2,880

Gain (loss) on currency transactions

Component of Other Income (Expense), Nonoperating [Line Items]

Other income (expense)

(2,788)

775

2,641

Gain (loss) on mark-to-market natural gas contracts

Component of Other Income (Expense), Nonoperating [Line Items]

Other income (expense)

(1,036)

1,860

(714)

Hedge ineffectiveness

Component of Other Income (Expense), Nonoperating [Line Items]

Other income (expense)

0

932

Other non-operating income

Component of Other Income (Expense), Nonoperating [Line Items]

Other income (expense)

$ 309

$ 727

$ 21

Contingencies Environmental Liability (Details) (USD $)

0 Months Ended

12 Months Ended

Oct. 30, 2009

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Site Contingency [Line Items]

Site Contingency, Number of Potentially Responsible Parties

8

Environmental Remediation Expense

$ 0

$ 157,000

Unfavorable Regulatory Action |
Cost of Sales

Site Contingency [Line Items]

Environmental Remediation Expense

200,000

Unfavorable Regulatory Action |
Other Long-Term Liabilities

Site Contingency [Line Items]

Accrued Environmental Loss Contingencies, Noncurrent

800,000

900,000

Unfavorable Regulatory Action |
Other Noncurrent Assets

Site Contingency [Line Items]

Recorded Third-Party Environmental Recoveries, Noncurrent

400,000

500,000

Syracuse China

Site Contingency [Line Items]

Site Contingency, Number of Potentially Responsible Related Parties

1

Motors Liquidation Company |
Unfavorable Regulatory Action

Site Contingency [Line Items]

Loss Contingency, Damages Paid, Value

22,000,000

Minimum |
Unfavorable Regulatory Action

Site Contingency [Line Items]

Site Contingency, Loss Exposure Not Accrued, Low Estimate

17,000,000

Loss Contingency, Range of Possible Loss, Minimum

0

Maximum |
Unfavorable Regulatory Action

Site Contingency [Line Items]

Site Contingency, Loss Exposure Not Accrued, Low Estimate

$ 24,800,000

Segments and Geographic Information (Reconciliation of Segment EBIT to Net Income) (Details) (USD $)

In Thousands, unless otherwise specified

12 Months Ended

Dec. 31, 2017

segment

Dec. 31, 2016

Dec. 31, 2015

Segment Reporting Information [Line Items]

Number of reportable segments

3

Net Sales:

Net sales

$ 781,828

$ 793,420

$ 822,345

Segment EBIT:

Segment EBIT

52,117

90,420

108,282

Reconciliation of Segment EBIT to Net Income (Loss):

Retained corporate costs

(27,099)

(27,265)

(34,645)

Goodwill impairment (note 4)

(79,700)

0

Pension settlement charges (note 8)

0

(168)

(21,693)

Environmental obligation (note 17)

0

(157)

Reorganization charges

(2,488)

0

(4,316)

Product portfolio optimization (1)

0 ¹

(5,693)¹

0 ¹

Work stoppage (2)

0 ²

(4,162)²

0 ²

Executive terminations

0

(4,460)

(870)

Interest expense

(20,400)

(20,888)

(18,484)

(Provision) benefit for income taxes

(15,798)

(17,711)

38,216

Net income (loss)

(93,368)

10,073

66,333

Depreciation & Amortization:

Depreciation and amortization

45,544

48,486

42,712

Capital Expenditures:

Capital Expenditures

47,628

34,604

48,136

Segment Assets:

Accounts Receivable, Net and Inventory, Net

277,883

255,122

272,406

U.S. & Canada

Net Sales:

Net sales

481,797

482,296

492,051

Segment EBIT:

Segment EBIT

48,044

75,449

78,144

Depreciation & Amortization:

Depreciation and amortization

12,665

12,748

12,214

Capital Expenditures:

Capital Expenditures

10,056

10,671

25,106

Segment Assets:

Accounts Receivable, Net and Inventory, Net

147,809

130,390

140,840

Latin America

Net Sales:

Net sales

144,322

151,389

167,069

Segment EBIT:

Segment EBIT

6,590

12,583

22,235

Reconciliation of Segment EBIT to Net Income (Loss):

Goodwill impairment (note 4)

(79,700)

0

Depreciation & Amortization:

Depreciation and amortization

18,576

19,068

14,738

Capital Expenditures:

Capital Expenditures

18,520

11,032

11,944

Segment Assets:

Accounts Receivable, Net and Inventory, Net

63,093

63,838

68,599

EMEA

Net Sales:

Net sales

126,924

126,591

129,549

Segment EBIT:

Segment EBIT

1,321

1,387

3,289

Depreciation & Amortization:

Depreciation and amortization

7,377

9,377

8,510

Capital Expenditures:

Capital Expenditures

17,158

7,571

6,773

Segment Assets:

Accounts Receivable, Net and Inventory, Net

48,270

44,588

48,924

Other Segments

Net Sales:

Net sales

28,785

33,144

33,676

Segment EBIT:

Segment EBIT

(3,838)

1,001

4,614

Depreciation & Amortization:

Depreciation and amortization

5,088

5,588

5,855

Capital Expenditures:

Capital Expenditures

1,226

2,905

1,855

Segment Assets:

Accounts Receivable, Net and Inventory, Net

18,711

16,306

14,043

Corporate

Depreciation & Amortization:

Depreciation and amortization

1,838

1,705

1,395

Capital Expenditures:

Capital Expenditures

$ 668

$ 2,425

$ 2,458

[1] Product portfolio optimization relates to inventory reductions to simplify and improve our operations.

[2] Work stoppage relates to the lower production volume impact, shipping costs and other direct incremental expenses associated with the two-week Toledo, Ohio work stoppage in the fourth quarter of 2016.

Segments and Geographic Information (Sales and Long-Lived Assets by Geographic Area) (Details) (USD $)

In Thousands, unless otherwise specified

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Revenues from External Customers and Long-Lived Assets [Line Items]

Net sales

$ 781,828

$ 793,420

$ 822,345

Long-lived assets

265,675

256,392

272,534

United States

Revenues from External Customers and Long-Lived Assets [Line Items]

Net sales

479,018

478,342

488,582

Long-lived assets

89,838

91,834

94,206

Mexico

Revenues from External Customers and Long-Lived Assets [Line Items]

Net sales

93,370

100,829

107,386

Long-lived assets

87,836

89,963

93,573

All Other

Revenues from External Customers and Long-Lived Assets [Line Items]

Net sales

209,440

214,249

226,377

Long-lived assets

$ 88,001

$ 74,595

$ 84,755

Schedule II -- Valuation and Qualifying Accounts (Consolidated) (Details) (USD $)

In Thousands, unless otherwise specified

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Allowance for Doubtful Accounts & Discounts

Movement in Valuation Allowances and Reserves [Roll Forward]

Balance at beginning of period

$ 7,832

$ 7,066

$ 5,586

Charged to expense or other accounts

1,291

1,118

2,719

Deductions

(72)¹

(352)¹

(1,239)¹

Balance at end of period

9,051

7,832

7,066

Valuation Allowance for Deferred Tax Asset

Movement in Valuation Allowances and Reserves [Roll Forward]

Balance at beginning of period

13,773

11,184

66,486

Charged to expense or other accounts

5,303

2,589

6,093

Deductions

0 ²

(61,395)²

Balance at end of period

$ 19,076

$ 13,773

$ 11,184

[1] Uncollectible accounts written off, net of recoveries.

[2] The net decrease in valuation allowance is primarily a result of net changes in cumulative book/tax timing differences and, with respect to activity for the year ended December 31, 2015, changes in judgment regarding the realizability of U.S. deferred tax assets.