Pension (Tables) (Defined Benefit Pension Plans and SERP)

12 Months Ended

Dec. 31, 2014

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
	2014			2013			2012			2014			2013			2012			2014			2013			2012
Service cost (benefits earned during the period)	$	3,664		$	4,739		$	5,957		$	2,264		$	2,862		$	1,749		$	5,928		$	7,601		$	7,706
Interest cost on projected benefit obligation	15,378			14,093			15,398			5,566			4,981			4,954			20,944			19,074			20,352
Expected return on plan assets	(22,387		)	(22,374		)	(18,514		)	(2,447		)	(1,995		)	(2,382		)	(24,834		)	(24,369		)	(20,896		)
Amortization of unrecognized:
Prior service cost	1,059			1,172			2,050			164			164			159			1,223			1,336			2,209
Actuarial loss	4,057			8,604			6,429			1,012			919			533			5,069			9,523			6,962
Transition obligations	—			—			—			60			84			102			60			84			102
Settlement charge	483			1,805			3,931			291			447			200			774			2,252			4,131
Curtailment charge	—			—			375			—			—			—			—			—			375
Pension expense	$	2,254		$	8,039		$	15,626		$	6,910		$	7,462		$	5,315		$	9,164		$	15,501		$	20,941

Schedule of Assumptions Used

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

	U.S. Plans						Non-U.S. Plans
	2014			2013			2014			2013
Discount rate	4.17%	to	4.29%	4.83%	to	5.12%	2.30%	to	7.60%	3.70%	to	8.50%
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
	2014					2013					2012					2014					2013					2012
Discount rate	4.83	%	to	5.12	%	3.98	%	to	4.97	%	3.87	%	to	5.22	%	3.70	%	to	8.50	%	3.70	%	to	7.00	%	5.80	%	to	8.25	%
Expected long-term rate of return on plan assets	7.25%					7.50%					7.75%					4.10%					3.60%					5.10%
Rate of compensation increase	—	%	to	—	%	—	%	to	—	%	2.25	%	to	4.50	%	2.00	%	to	4.30	%	2.00	%	to	4.30	%	2.00	%	to	4.30	%

Sensitivity Analysis of Impact of Changes in Significant Assumptions

Considering 2014 results, the disclosure below provides a sensitivity analysis of the impact that changes in the significant assumptions would have on 2014 and 2015 pension expense:

Assumption (dollars in thousands)		Estimated Effect on Annual Expense
	Percentage Point Change	2014		2015
Discount rate	1.0%	$	4,600	$	5,100
Long-term rate of return on assets	1.0%	$	3,800	$	3,900

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
	2014			2013			2014			2013			2014			2013
Change in projected benefit obligation:
Projected benefit obligation, beginning of year	$	310,109		$	338,133		$	102,719		$	95,459		$	412,828		$	433,592
Service cost	3,664			4,739			2,264			2,862			5,928			7,601
Interest cost	15,378			14,093			5,566			4,981			20,944			19,074
Exchange rate fluctuations	—			—			(14,668		)	2,150			(14,668		)	2,150
Actuarial (gain) loss	51,066			(25,324		)	28,051			2,237			79,117			(23,087		)
Plan participants' contributions	—			—			1,249			1,108			1,249			1,108
Plan amendments	—			—			(780		)	—			(780		)	—
Settlements paid	(12,825		)	(6,307		)	—			—			(12,825		)	(6,307		)
Benefits paid	(15,915		)	(15,225		)	(4,415		)	(6,078		)	(20,330		)	(21,303		)
Projected benefit obligation, end of year	$	351,477		$	310,109		$	119,986		$	102,719		$	471,463		$	412,828
Change in fair value of plan assets:
Fair value of plan assets, beginning of year	$	332,827		$	316,826		$	70,422		$	65,440		$	403,249		$	382,266
Actual return on plan assets	33,342			37,458			12,643			(136		)	45,985			37,322
Exchange rate fluctuations	—			—			(9,328		)	2,667			(9,328		)	2,667
Employer contributions	2,653			75			3,708			7,421			6,361			7,496
Plan participants' contributions	—			—			1,249			1,108			1,249			1,108
Settlements paid	(12,825		)	(6,307		)	—			—			(12,825		)	(6,307		)
Benefits paid	(15,915		)	(15,225		)	(4,415		)	(6,078		)	(20,330		)	(21,303		)
Fair value of plan assets, end of year	$	340,082		$	332,827		$	74,279		$	70,422		$	414,361		$	403,249
Funded ratio	96.8		%	107.3		%	61.9		%	68.6		%	87.9		%	97.7		%
Funded status and net accrued pension benefit asset (cost)	$	(11,395	)	$	22,718		$	(45,707	)	$	(32,297	)	$	(57,102	)	$	(9,579	)

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)	2014			2013
Non-current asset	$	848		$	33,615
Current liability	(1,488		)	(3,161		)
Long-term liability	(56,462		)	(40,033		)
Net accrued pension liability	$	(57,102	)	$	(9,579	)

Amounts Recognized in Accumulated Other Comprehensive Loss

The pre-tax amounts recognized in accumulated other comprehensive loss as of December 31, 2014 and 2013, are as follows:

Year ended December 31, (dollars in thousands)	U.S. Plans				Non-U.S. Plans				Total
	2014		2013		2014		2013		2014		2013
Net actuarial loss	$	102,328	$	66,756	$	38,843	$	26,832	$	141,171	$	93,588
Prior service cost	918		1,976		16		1,071		934		3,047
Transition obligation	—		—		—		61		—		61
Total cost	$	103,246	$	68,732	$	38,859	$	27,964	$	142,105	$	96,696

Amounts in Accumulated Other Comprehensive Loss to be Recognized During 2015

The pre-tax amounts in accumulated other comprehensive loss as of December 31, 2014, that are expected to be recognized as components of net periodic benefit cost during 2015 are as follows:

(dollars in thousands)	U.S. Plans		Non-U.S. Plans			Total
Net actuarial loss	$	7,544	$	1,733		$	9,277
Prior service cost	417		(263		)	154
Total cost	$	7,961	$	1,470		$	9,431

Estimated Contributions to Defined Benefit Plan

Estimated contributions for 2015, as well as, contributions made in 2014 and 2013 to the pension plans are as follows:

(dollars in thousands)	U.S. Plans		Non-U.S. Plans		Total
Estimated contributions in 2015	$	95	$	4,593	$	4,688
Contributions made in 2014	$	2,653	$	3,708	$	6,361
Contributions made in 2013	$	75	$	7,421	$	7,496

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
2015	$	18,287	$	2,499	$	20,786
2016	$	18,702	$	2,669	$	21,371
2017	$	19,423	$	2,840	$	22,263
2018	$	20,493	$	3,208	$	23,701
2019	$	20,742	$	4,245	$	24,987
2020-2024	$	109,886	$	21,099	$	130,985

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, 2014 and 2013 were as follows:

December 31, (dollars in thousands)	U.S. Plans				Non-U.S. Plans				Total
	2014		2013		2014		2013		2014		2013
Projected benefit obligation	$	289,157	$	11,238	$	44,271	$	42,670	$	333,428	$	53,908
Accumulated benefit obligation	$	289,157	$	11,238	$	33,645	$	34,572	$	322,802	$	45,810
Fair value of plan assets	$	276,914	$	7,744	$	475	$	2,971	$	277,389	$	10,715

Plan Asset Allocation

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, 2014 and 2013:

December 31, 2014 (dollars in thousands)
	Level One		Level Two		Level Three		Total
Cash & cash equivalents	$	—	$	10,327	$	—	$	10,327
Real estate	—		17,332		4,224		21,556
Equity securities	—		170,324		—		170,324
Debt securities	—		157,846		—		157,846
Hedge funds	—		—		54,308		54,308
Total	$	—	$	355,829	$	58,532	$	414,361

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

The asset allocation for our U.S. pension plans at the end of 2014 and 2013 and the target allocation for 2015, by asset category, are as follows:

	Target Allocation		Percent of Plan Assets at Year End
U.S. Plans Asset Category	2015		2014		2013
Equity securities	42	%	44	%	49	%
Debt and fixed income securities	39	%	33	%	32	%
Real estate	5	%	5	%	4	%
Other	14	%	18	%	15	%
Total	100	%	100	%	100	%

The asset allocation for our Libbey Holland pension plan at the end of 2014 and 2013 and the target allocation for 2015, by asset category, are as follows:

	Target Allocation		Percent of Plan Assets at Year End
Non-U.S. Plan Asset Category	2015		2014		2013
Equity securities	28	%	28	%	24	%
Debt securities	60	%	61	%	61	%
Real estate	7	%	6	%	7	%
Other	5	%	5	%	8	%
Total	100	%	100	%	100	%

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 2014 and 2013. The following is a reconciliation for which Level three inputs were used in determining fair value:

Year ended December 31, (dollars in thousands)	2014			2013
Assets classified as Level 3 at the beginning of the year	$	60,231		$	53,856
Change in unrealized appreciation (depreciation)	801			6,716
Net purchases (sales)	(2,500		)	(341		)
Assets classified as Level 3 at the end of the year	$	58,532		$	60,231