Note 5 - Property, Plant and Equipment

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment Disclosure [Text Block]

5.	Property, Plant and Equipment

Property, plant and equipment consists of the following:

December 31,
(dollars in thousands)	2019		2018
Land	$	16,515	$	20,374
Buildings		100,730		109,470
Machinery and equipment		486,517		531,838
Furniture and fixtures		15,594		15,668
Software		22,440		25,218
Construction in progress		18,628		24,945
Gross property, plant and equipment		660,424		727,513
Less accumulated depreciation		426,501		462,553
Net property, plant and equipment	$	233,923	$	264,960

Depreciation expense was

$38.4

million and

$43.2

million for the years

2019

and

2018,

respectively.

In accordance with FASB ASC

360,

management concluded an impairment assessment for the Libbey Holland asset group (within our EMEA segment) was necessary, and it was performed as of

December 31, 2019.

The recoverability test failed and, therefore, the Libbey Holland asset group was written down to estimated fair value, utilizing both an income approach using a present value technique and a market approach whereby multiple cash flow scenarios reflecting a range of possible outcomes with varying probability weightings are relied upon. The inputs used for this analysis are considered Level

inputs in the fair value hierarchy. See note 14 for further discussion of the fair value hierarchy. As a result, Libbey Holland property, plant and equipment and operating lease right-of-use assets were written down

$13.0

million and

$5.3

million, respectively, at

December 31, 2019.

See note 4 for a reconciliation of

2019

non-cash asset impairments to the asset impairments line on the Consolidated Statements of Operations.