Note 15 - Leases

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

15. Leases

Globally, we lease certain warehouses, office space, showrooms, manufacturing and office equipment, automobiles and outlet stores. Many of the real estate leases contain

one

or more options to renew, with renewal options that can extend the lease term from

one

to

20

years or more. The exercise of lease renewal options is at our discretion and is

not

reasonably certain at lease commencement. Most of our equipment leases have a lease term of

two

to

eight

years with limited renewal options. However,

one

class of equipment has a lease term of

15

years with annual renewal options thereafter. Generally, the longer term lease agreements contain escalating lease payments or are adjusted periodically for inflation.

At

December 31, 2019,

the weighted-average remaining lease term was

6.4

 years, and the weighted-average discount rate was

4.05

 percent. Upon adoption of the new lease standard, discount rates used for existing leases were established at

January 1, 2019.

The following table presents the lease costs and supplemental cash flow information related to our operating leases for the year ended

December 31:

(dollars in thousands)		2019
Operating lease costs	$	15,669
Short-term lease costs (1)		4,446
Total lease costs	$	20,115

______________________________

(

1

)  

Includes variable lease costs which are immaterial.

Cash paid for operating leases included in the measurement of lease liabilities	$	15,584
ROU assets obtained in exchange for lease liabilities	$	74,084

The following table reconciles the undiscounted cash flows to the operating lease liabilities recorded on the balance sheet:

(dollars in thousands)	December 31, 2019
2020	$	14,970
2021		11,255
2022		9,987
2023		9,283
2024		8,005
2025 and thereafter		15,768
Total minimum lease payments		69,268
Less: interest		(8,176	)
Present value of future minimum lease payments		61,092
Less: lease liabilities (current portion)		(12,769	)
Noncurrent lease liabilities	$	48,323

On

December 31, 2019,

we recorded a non-cash impairment charge 

of

$5.3

 million against operating lease right-of-use assets in our Libbey Holland asset group (within the EMEA segment) which was recorded in the asset impairments line on the Consolidated Statement of Operations. This will reduce future lease costs on the impaired right-of-use assets. See note 5 for further discussion.

Prior to the adoption of the new lease standard, rental expense for all non-cancelable operating leases was

$18.9

million in

2018.

The future minimum rental commitments under ASC

840

for non-cancelable operating leases as of

December 31, 2018,

was as follows (dollars in thousands):

2019		2020		2021		2022		2023		2024 and thereafter
$	15,407	$	13,787	$	10,339	$	9,143	$	8,551	$	20,755