Pension (Tables)

12 Months Ended

Dec. 31, 2013

Defined Benefit Plan Disclosure [Line Items]

Sensitivity Analysis of Impact of Changes in Significant Assumptions

Considering 2013 results, the disclosure below provides a sensitivity analysis of the impact that changes in the significant assumptions would have on 2013 and 2014 pension expense:

Assumption (dollars in thousands)		Estimated Effect on Annual Expense
	Percentage Point Change	2013		2014
Discount rate	1.0%	$	4,100	$	4,600
Long-term rate of return on assets	1.0%	$	3,400	$	3,800

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
	2013			2012			2103			2012			2013			2012
Change in projected benefit obligation:
Projected benefit obligation, beginning of year	$	338,133		$	315,689		$	95,459		$	68,990		$	433,592		$	384,679
Service cost	4,739			5,957			2,862			1,749			7,601			7,706
Interest cost	14,093			15,398			4,981			4,954			19,074			20,352
Exchange rate fluctuations	—			—			2,150			3,727			2,150			3,727
Actuarial (gain) loss	(25,324		)	34,151			2,237			20,223			(23,087		)	54,374
Plan participants' contributions	—			—			1,108			1,087			1,108			1,087
Curtailment effect	—			(5,711		)	—			—			—			(5,711		)
Settlements paid	(6,307		)	(12,552		)	—			(692		)	(6,307		)	(13,244		)
Benefits paid	(15,225		)	(14,799		)	(6,078		)	(4,579		)	(21,303		)	(19,378		)
Projected benefit obligation, end of year	$	310,109		$	338,133		$	102,719		$	95,459		$	412,828		$	433,592
Change in fair value of plan assets:
Fair value of plan assets, beginning of year	$	316,826		$	221,025		$	65,440		$	53,004		$	382,266		$	274,029
Actual return on plan assets	37,458			30,348			(136		)	5,922			37,322			36,270
Exchange rate fluctuations	—			—			2,667			1,323			2,667			1,323
Employer contributions	75			92,804			7,421			9,375			7,496			102,179
Plan participants' contributions	—			—			1,108			1,087			1,108			1,087
Settlements paid	(6,307		)	(12,552		)	—			(692		)	(6,307		)	(13,244		)
Benefits paid	(15,225		)	(14,799		)	(6,078		)	(4,579		)	(21,303		)	(19,378		)
Fair value of plan assets, end of year	$	332,827		$	316,826		$	70,422		$	65,440		$	403,249		$	382,266
Funded ratio	107.3		%	93.7		%	68.6		%	68.6		%	97.7		%	88.2		%
Funded status and net accrued pension benefit asset (cost)	$	22,718		$	(21,307	)	$	(32,297	)	$	(30,019	)	$	(9,579	)	$	(51,326	)

Estimated Contributions to Defined Benefit Plan

Estimated contributions for 2014, as well as, contributions made in 2013 and 2012 to the pension plans are as follows:

(dollars in thousands)	U.S. Plans		Non-U.S. Plans		Total
Estimated contributions in 2014	$	2,623	$	3,698	$	6,321
Contributions made in 2013	$	75	$	7,421	$	7,496
Contributions made in 2012	$	92,804	$	9,375	$	102,179

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, 2013 and 2012 were as follows:

December 31, (dollars in thousands)	U.S. Plans				Non-U.S. Plans				Total
	2013		2012		2013		2012		2013		2012
Projected benefit obligation	$	11,238	$	338,133	$	42,670	$	43,190	$	53,908	$	381,323
Accumulated benefit obligation	$	11,238	$	338,133	$	34,572	$	38,387	$	45,810	$	376,520
Fair value of plan assets	$	7,744	$	316,826	$	2,971	$	2,974	$	10,715	$	319,800

Plan Asset Allocation

The asset allocation for our U.S. pension plans at the end of 2013 and 2012 and the target allocation for 2014, by asset category, are as follows:

	Target Allocation		Percent of Plan Assets at Year End
U.S. Plans Asset Category	2014		2013		2012
Equity securities	45	%	49	%	44	%
Debt and fixed income securities	35	%	32	%	37	%
Real estate	5	%	4	%	5	%
Other	15	%	15	%	14	%
Total	100	%	100	%	100	%

The asset allocation for our Libbey Holland pension plan at the end of 2013 and 2012 and the target allocation for 2014, by asset category, are as follows:

	Target Allocation		Percent of Plan Assets at Year End
Non-U.S. Plan Asset Category	2014		2013		2012
Equity securities	26	%	24	%	17	%
Debt securities	61	%	61	%	68	%
Real estate	8	%	7	%	10	%
Other	5	%	8	%	5	%
Total	100	%	100	%	100	%

The following table sets forth by level, within the fair value hierarchy established by FASB ASC Topic 820, our pension plan assets at fair value (see note 15 for further discussion of the fair value hierarchy) as of December 31, 2013 and 2012:

December 31, 2013 (dollars in thousands)
	Level One		Level Two		Level Three		Total
Cash & cash equivalents	$	—	$	11,136	$	—	$	11,136
Real estate	—		14,543		5,105		19,648
Equity securities	—		177,413		—		177,413
Debt securities	—		139,926		—		139,926
Hedge funds	—		—		55,126		55,126
Total	$	—	$	343,018	$	60,231	$	403,249

December 31, 2012 (dollars in thousands)
	Level One		Level Two		Level Three		Total
Cash & cash equivalents	$	—	$	781	$	—	$	781
Real estate	—		15,613		6,305		21,918
Equity securities	—		149,902		—		149,902
Debt securities	—		162,114		—		162,114
Hedge funds	—		—		47,551		47,551
Total	$	—	$	328,410	$	53,856	$	382,266

Reconciliation of Level 3 Inputs on Changes in Pension Plan Assets

The change in fair value of Level 3 pension plan assets due to actual return on those assets was immaterial in 2013 and 2012. The following is a reconciliation for which Level three inputs were used in determining fair value:

Year ended December 31, (dollars in thousands)	2013			2012
Assets classified as Level 3 at the beginning of the year	$	53,856		$	38,961
Change in unrealized appreciation (depreciation)	6,716			2,743
Net purchases (sales)	(341		)	12,152
Assets classified as Level 3 at the end of the year	$	60,231		$	53,856

Defined Benefit Pension Plans and SERP

Defined Benefit Plan Disclosure [Line Items]

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
	2013			2012			2011			2013			2012			2011			2013			2012			2011
Service cost (benefits earned during the period)	$	4,739		$	5,957		$	5,491		$	2,862		$	1,749		$	1,553		$	7,601		$	7,706		$	7,044
Interest cost on projected benefit obligation	14,093			15,398			16,057			4,981			4,954			4,981			19,074			20,352			21,038
Expected return on plan assets	(22,374		)	(18,514		)	(17,173		)	(1,995		)	(2,382		)	(2,299		)	(24,369		)	(20,896		)	(19,472		)
Amortization of unrecognized:
Prior service cost	1,172			2,050			2,163			164			159			172			1,336			2,209			2,335
Actuarial loss	8,604			6,429			4,661			919			533			493			9,523			6,962			5,154
Transition obligations	—			—			—			84			102			125			84			102			125
Settlement charge	1,805			3,931			—			447			200			58			2,252			4,131			58
Curtailment charge	—			375			—			—			—			—			—			375			—
Pension expense	$	8,039		$	15,626		$	11,199		$	7,462		$	5,315		$	5,083		$	15,501		$	20,941		$	16,282

Schedule of Assumptions Used

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

	U.S. Plans						Non-U.S. Plans
	2013			2012			2013			2012
Discount rate	4.83%	to	5.12%	3.98%	to	4.22%	3.70%	to	8.50%	3.70%	to	7.00%
Rate of compensation increase	—%	to	—%	—%	to	—%	2.00%	to	4.30%	2.00%	to	4.30%

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

	U.S. Plans															Non-U.S. Plans
	2013					2012					2011					2013					2012					2011
Discount rate	3.98	%	to	4.97	%	3.87	%	to	5.22	%	5.50	%	to	5.76	%	3.70	%	to	7.00	%	5.80	%	to	8.25	%	5.40	%	to	8.25	%
Expected long-term rate of return on plan assets	7.50%					7.75%					8.00%					3.60%					5.10%					4.80%
Rate of compensation increase	—	%	to	—	%	2.25	%	to	4.50	%	2.25	%	to	4.50	%	2.00	%	to	4.30	%	2.00	%	to	4.30	%	2.00	%	to	4.30	%

Net Accrued Benefit Liability

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)	2013			2012
Non-current asset	$	33,615		$	10,196
Current liability	(3,161		)	(613		)
Long-term liability	(40,033		)	(60,909		)
Net accrued pension liability	$	(9,579	)	$	(51,326	)

Amounts Recognized in Accumulated Other Comprehensive Loss

The pre-tax amounts recognized in accumulated other comprehensive loss as of December 31, 2013 and 2012, are as follows:

Year ended December 31, (dollars in thousands)	U.S. Plans				Non-U.S. Plans				Total
	2013		2012		2013		2012		2013		2012
Net actuarial loss	$	66,756	$	117,573	$	26,832	$	23,576	$	93,588	$	141,149
Prior service cost	1,976		3,148		1,071		1,194		3,047		4,342
Transition obligation	—		—		61		143		61		143
Total cost	$	68,732	$	120,721	$	27,964	$	24,913	$	96,696	$	145,634

Amounts in Accumulated Other Comprehensive Loss to be Recognized During 2013

The pre-tax amounts in accumulated other comprehensive loss as of December 31, 2013, that are expected to be recognized as components of net periodic benefit cost during 2014 are as follows:

(dollars in thousands)	U.S. Plans		Non-U.S. Plans		Total
Net actuarial loss	$	4,968	$	1,032	$	6,000
Prior service cost	1,059		169		1,228
Transition obligation	—		61		61
Total cost	$	6,027	$	1,262	$	7,289

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
2014	$	19,765	$	3,938	$	23,703
2015	$	17,798	$	2,900	$	20,698
2016	$	18,382	$	3,360	$	21,742
2017	$	19,073	$	3,679	$	22,752
2018	$	20,352	$	4,416	$	24,768
2019-2023	$	107,862	$	24,374	$	132,236