Document and Entity Information
Document and Entity Information - shares shares in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jul. 24, 2018 | |
Entity Registrant Name | ALBANY INTERNATIONAL CORP /DE/ | |
Entity Central Index Key | 819,793 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,018 | |
Common Class A [Member] | ||
Entity Common Stock, Shares Outstanding | 29 | |
Common Class B [Member] | ||
Entity Common Stock, Shares Outstanding | 3.2 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||||
Net sales | $ 256,225 | $ 215,571 | $ 486,206 | $ 414,848 |
Cost of goods sold | 164,047 | 152,393 | 312,377 | 275,642 |
Gross profit | 92,178 | 63,178 | 173,829 | 139,206 |
Selling, general, and administrative expenses | 36,707 | 41,314 | 78,637 | 81,721 |
Technical and research expenses | 10,198 | 9,973 | 20,515 | 20,235 |
Restructuring expenses, net | 2,589 | 2,036 | 11,162 | 4,717 |
Operating income | 42,684 | 9,855 | 63,515 | 32,533 |
Interest expense, net | 4,621 | 4,285 | 8,909 | 8,613 |
Other expense, net | 726 | 2,558 | 2,178 | 3,384 |
Income before income taxes | 37,337 | 3,012 | 52,428 | 20,536 |
Income tax expense | 7,031 | 1,779 | 11,640 | 8,329 |
Net income | 30,306 | 1,233 | 40,788 | 12,207 |
Net income/(loss) attributable to the noncontrolling interest | (59) | 116 | 178 | 251 |
Net income attributable to the Company | $ 30,365 | $ 1,117 | $ 40,610 | $ 11,956 |
Earnings per share attributable to Company shareholders - Basic | $ 0.94 | $ 0.03 | $ 1.26 | $ 0.37 |
Earnings per share attributable to Company shareholders - Diluted | $ 0.94 | $ 0.03 | $ 1.26 | $ 0.37 |
Shares of the Company used in computing earnings per share: | ||||
Basic | 32,257 | 32,166 | 32,239 | 32,147 |
Diluted | 32,273 | 32,200 | 32,255 | 32,182 |
Dividends declared per share, Class A and Class B | $ 0.17 | $ 0.17 | $ 0.34 | $ 0.34 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income | $ 30,306 | $ 1,233 | $ 40,788 | $ 12,207 | |
Other comprehensive income/(loss), before tax: | |||||
Foreign currency translation adjustments | (30,851) | 17,436 | (13,346) | 27,374 | |
Pension/postretirement curtailment | (518) | (518) | |||
Amortization of pension liability adjustments: | |||||
Prior service credit | [1] | (1,113) | (1,113) | (2,227) | (2,226) |
Net actuarial loss | [1] | 1,291 | 1,353 | 2,588 | 2,700 |
Payments and amortization related to interest rate swaps included in earnings | 54 | 343 | 234 | 943 | |
Derivative valuation adjustment | 2,211 | (1,414) | 7,926 | (998) | |
Income taxes related to items of other comprehensive income/(loss): | |||||
Pension/postretirement curtailment | 155 | 155 | |||
Amortization of pension liability adjustment | (53) | (72) | (108) | (142) | |
Payments related to interest rate swaps included in earnings | (13) | (130) | (56) | (358) | |
Derivative valuation adjustment | (530) | 537 | (1,902) | 379 | |
Comprehensive income | 939 | 18,173 | 33,534 | 39,879 | |
Comprehensive income attributable to the noncontrolling interest | (48) | 124 | 182 | 264 | |
Comprehensive income attributable to the Company | $ 987 | $ 18,049 | $ 33,352 | $ 39,615 | |
[1] | These accumulated other comprehensive income components are included in Other expense, net (see Note 4). The curtailment adjustment was included in restructuring expenses, net. |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Assets | ||||||
Cash and cash equivalents | $ 154,744 | $ 151,426 | $ 183,727 | $ 138,792 | $ 143,333 | $ 181,742 |
Accounts receivable, net | 249,482 | 202,675 | ||||
Contract assets | 59,244 | |||||
Inventories | 97,659 | 136,519 | ||||
Income taxes prepaid and receivable | 6,087 | 6,266 | ||||
Prepaid expenses and other current assets | 19,559 | 14,520 | ||||
Total current assets | 586,775 | 543,707 | ||||
Property, plant and equipment, net | 450,694 | 454,302 | ||||
Intangibles, net | 52,322 | 55,441 | ||||
Goodwill | 165,474 | 166,796 | ||||
Deferred income taxes | 81,237 | 68,648 | ||||
Noncurrent receivables | 36,981 | 32,811 | ||||
Other assets | 48,978 | 39,493 | ||||
Total assets | 1,422,461 | 1,361,198 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Notes and loans payable | 26 | 262 | ||||
Accounts payable | 54,752 | 44,899 | ||||
Accrued liabilities | 125,255 | 105,914 | ||||
Current maturities of long-term debt | 1,844 | 1,799 | ||||
Income taxes payable | 14,620 | 8,643 | ||||
Total current liabilities | 196,497 | 161,517 | ||||
Long-term debt | 523,186 | 514,120 | ||||
Other noncurrent liabilities | 97,563 | 101,555 | ||||
Deferred taxes and other liabilities | 13,556 | 10,991 | ||||
Total liabilities | 830,802 | 788,183 | ||||
SHAREHOLDERS' EQUITY | ||||||
Preferred stock, par value $5.00 per share; authorized 2,000,000 shares; none issued | ||||||
Additional paid in capital | 429,635 | 428,423 | ||||
Retained earnings | 558,639 | 534,082 | ||||
Accumulated items of other comprehensive income: | ||||||
Translation adjustments | (102,888) | (87,318) | ||||
Pension and postretirement liability adjustments | (48,422) | (50,536) | ||||
Derivative valuation adjustment | 8,155 | 1,953 | ||||
Treasury stock (Class A), at cost 8,418,620 shares in 2018 and 8,431,335 shares in 2017 | (256,602) | (256,876) | ||||
Total Company shareholders' equity | 588,557 | 569,768 | ||||
Noncontrolling interest | 3,102 | 3,247 | ||||
Total equity | 591,659 | 573,015 | ||||
Total liabilities and shareholders' equity | 1,422,461 | 1,361,198 | ||||
Common Class A [Member] | ||||||
SHAREHOLDERS' EQUITY | ||||||
Common Stock | 37 | 37 | ||||
Common Class B [Member] | ||||||
SHAREHOLDERS' EQUITY | ||||||
Common Stock | $ 3 | $ 3 |
CONSOLIDATED BALANCE SHEETS (U5
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 |
Preferred Stock, par value per share | $ 5 | $ 5 |
Preferred Stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred Stock, shares issued | 0 | 0 |
Common Class A [Member] | ||
Common Stock, par value per share | $ 0.001 | $ 0.001 |
Common Stock, shares authorized | 100,000,000 | 100,000,000 |
Common Stock, shares issued | 37,447,819 | 37,395,753 |
Treasury stock, shares | 8,418,620 | 8,431,335 |
Common Class B [Member] | ||
Common Stock, par value per share | $ 0.001 | $ 0.001 |
Common Stock, shares authorized | 25,000,000 | 25,000,000 |
Common Stock, shares issued | 3,233,998 | 3,233,998 |
Common Stock, shares outstanding | 3,233,998 | 3,233,998 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
OPERATING ACTIVITIES | ||||
Net income | $ 30,306 | $ 1,233 | $ 40,788 | $ 12,207 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation | 17,114 | 15,201 | 35,416 | 29,845 |
Amortization | 2,559 | 2,632 | 5,205 | 5,281 |
Change in other noncurrent liabilities | (854) | (758) | (1,231) | (2,354) |
Change in deferred taxes and other liabilities | (6,118) | (6,745) | (6,902) | (7,357) |
Provision for write-off of property, plant and equipment | 853 | 534 | 1,124 | 830 |
Non-cash interest expense | 154 | 212 | 154 | 423 |
Compensation and benefits paid or payable in Class A Common Stock | 1,047 | 681 | 1,336 | 1,670 |
Fair value adjustment on foreign currency option | 34 | 75 | 71 | 129 |
Changes in operating assets and liabilities that (used)/provided cash: | ||||
Accounts receivable | (12,903) | (14,395) | (44,370) | (15,136) |
Contract assets | (13,877) | (11,761) | ||
Inventories | (1,371) | 1,655 | (10,615) | (13,266) |
Prepaid expenses and other current assets | (1,157) | (780) | (5,220) | (2,697) |
Income taxes prepaid and receivable | (5) | (2,817) | 97 | (2,817) |
Accounts payable | 11,420 | (1,459) | 8,882 | 2,065 |
Accrued liabilities | 5,853 | 10,071 | 4,668 | (900) |
Income taxes payable | 10,020 | 1,978 | 6,589 | (508) |
Noncurrent receivables | (1,643) | (3,621) | (4,170) | (7,536) |
Other, net | (5,745) | 4,692 | (3,321) | 3,938 |
Net cash provided by operating activities | 35,687 | 8,389 | 16,740 | 3,817 |
INVESTING ACTIVITIES | ||||
Purchases of property, plant and equipment | (23,352) | (21,360) | (39,123) | (46,405) |
Purchased software | (23) | (353) | (52) | (391) |
Net cash used in investing activities | (23,375) | (21,713) | (39,175) | (46,796) |
FINANCING ACTIVITIES | ||||
Proceeds from borrowings | 10,020 | 16,114 | 23,031 | 32,259 |
Principal payments on debt | (5,653) | (540) | (14,143) | (21,142) |
Taxes paid in lieu of share issuance | (1,652) | (1,364) | ||
Proceeds from options exercised | 3 | 100 | 150 | 175 |
Dividends paid | (5,482) | (5,467) | (10,956) | (10,926) |
Net cash (used in)/provided by financing activities | (1,112) | 10,207 | (3,570) | (998) |
Effect of exchange rate changes on cash and cash equivalents | (7,882) | (1,424) | (2,978) | 1,027 |
(Decrease)/increase in cash and cash equivalents | 3,318 | (4,541) | (28,983) | (42,950) |
Cash and cash equivalents at beginning of period | 151,426 | 143,333 | 183,727 | 181,742 |
Cash and cash equivalents at end of period | $ 154,744 | $ 138,792 | $ 154,744 | $ 138,792 |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 1. Significant Accounting Policies Basis of Presentation In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary for a fair presentation of results for such periods. Albany International Corp. (Albany, the Registrant, the Company, we, us, or our) consolidates the financial results of its subsidiaries for all periods presented. The results for any interim period are not necessarily indicative of results for the full year. The preparation of financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in Albany International Corp.’s Consolidated Financial Statements and accompanying Notes. Actual results could differ materially from those estimates. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with “Risk Factors,” “Legal Proceedings,” “Management’s Discussion and Analysis of Financial Condition and Results of Operation,” “Quantitative and Qualitative Disclosures about Market Risk” and the Consolidated Financial Statements and Notes thereto included in Items 1A, 3, 7, 7A and 8, respectively, of the Albany International Corp. Annual Report on Form 10-K for the year ended December 31, 2017. Effective January 1, 2018, we adopted the provisions of ASC 606, Revenue from contracts with customers |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2018 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | 2. Revenue Recognition Effective January 1, 2018, the Company adopted the provisions of ASC 606, Revenue from contracts with customers In our Machine Clothing (MC) business segment, prior to 2018, we recorded revenue from the sale of a product when persuasive evidence of an arrangement existed, delivery had occurred, title was transferred, the selling price was fixed, and collectability was reasonably assured. Under the new standard, we recognize MC revenue when we satisfy our performance obligations related to the manufacture and delivery of a product, which, in certain cases, results in earlier recognition of revenue associated with these contracts. For the MC segment, the cumulative effect of adopting ASC 606 included an increase to Accounts receivable, a decrease to Inventories, and an increase to Retained earnings. In our Albany Engineered Composites (AEC) business segment, revenue from a number of long-term contracts was, prior to 2018, recorded on the basis of the units-of-delivery method, which is considered an output method. Under the new standard, revenue from most of these contracts is recognized over time using an input method as the measure of progress, which generally results in earlier recognition of revenue. Prior to adoption of the new standard, the classification of revenue in excess of progress billings on long-term contracts was included in Accounts receivable. Under the new standard, such assets are considered Contract assets, which are rights to consideration that are conditional on something other than the passage of time, such as completion of remaining performance obligations. As a result of adoption of the new standard, such assets were reclassified at transition from Accounts receivable to Contract assets. In addition, under the new standard, we are required to limit our estimate of contract values to the period of the legally enforceable contract, which in many cases is considerably shorter than the contract period used under the former standard. While certain contracts are expected to be profitable over the course of the program life when including expected renewals, under the new standard, our estimate of contract revenues and costs is limited to the estimated value of enforceable rights and obligations, excluding anticipated renewals. In some cases, this shorter contract period may result in a loss contract provision, and our transition adjustment included such loss accruals. Expected losses on projects includes losses on contract options that are probable of exercise, excluding profitable options that often follow. For AEC, the cumulative effect of adopting ASC 606 included increases to Contract assets and Accrued liabilities, and decreases to Accounts receivable, Inventories and Retained earnings. The table below presents the cumulative effect of changes made to our December 31, 2017 Consolidated Balance Sheet as the result of adoption of ASC 606: ALBANY INTERNATIONAL CORP. CONSOLIDATED BALANCE SHEET (in thousands, except share data) (unaudited) As previously reported at December 31, 2017 Adjustments Opening balance, as ASSETS Cash and cash equivalents $183,727 $- $183,727 Accounts receivable, net 202,675 7,667 210,342 Contract assets - 47,415 47,415 Inventories 136,519 (47,054 ) 89,465 Income taxes prepaid and receivable 6,266 - 6,266 Prepaid expenses and other current assets 14,520 - 14,520 Total current assets 543,707 8,028 551,735 Property, plant and equipment, net 454,302 - 454,302 Intangibles, net 55,441 - 55,441 Goodwill 166,796 - 166,796 Deferred income taxes 68,648 1,756 70,404 Noncurrent receivables 32,811 - 32,811 Other assets 39,493 1,119 40,612 Total assets $1,361,198 $10,903 $1,372,101 LIABILITIES AND SHAREHOLDERS' EQUITY Notes and loans payable $262 $- $262 Accounts payable 44,899 - 44,899 Accrued liabilities 105,914 16,808 122,722 Current maturities of long-term debt 1,799 - 1,799 Income taxes payable 8,643 - 8,643 Total current liabilities 161,517 16,808 178,325 Long-term debt 514,120 - 514,120 Other noncurrent liabilities 101,555 - 101,555 Deferred taxes and other liabilities 10,991 52 11,043 Total liabilities 788,183 16,860 805,043 SHAREHOLDERS' EQUITY Preferred stock, par value $5.00 per share; authorized 2,000,000 shares; none issued - - - Class A Common Stock, par value $.001 per share; authorized 100,000,000 shares; issued 37,395,753 in 2017 and 37,319,266 in 2016 37 - 37 Class B Common Stock, par value $.001 per share; authorized 25,000,000 shares; issued and outstanding 3,233,998 in 2017 and 2016 3 - 3 Additional paid in capital 428,423 - 428,423 Retained earnings 534,082 (5,630 ) 528,452 Accumulated items of other comprehensive income: Translation adjustments (87,318 ) - (87,318 ) Pension and postretirement liability adjustments (50,536 ) - (50,536 ) Derivative valuation adjustment 1,953 - 1,953 Treasury stock (Class A), at cost 8,431,335 shares in 2017 and 8,443,444 shares in 2016 (256,876 ) - (256,876 ) Total Company shareholders' equity 569,768 (5,630 ) 564,138 Noncontrolling interest 3,247 (327 ) 2,920 Total equity 573,015 (5,957 ) 567,058 Total liabilities and shareholders' equity $1,361,198 $10,903 $1,372,101 Significant changes to our accounting policies as a result of adopting the new standard are discussed below. For periods ending after December 31, 2017, we account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Revenue is measured based on the consideration specified in the contract with the customer, and excludes any amounts collected on behalf of third parties. We recognize revenue when we satisfy a performance obligation by transferring control over a product or service, or a series of distinct goods or services, to the customer which occurs either at a point in time, or over time, depending on the performance obligation in the contract. A performance obligation is a promise in the contract to transfer a distinct good or service to the customer, and is the unit of account under the new revenue standard. “Control” refers to the ability to direct the use of, and obtain substantially all of the remaining benefits from the product. A contract’s transaction price is allocated to each material distinct performance obligation and is recognized as revenue when, or as, the performance obligation is satisfied. In our Machine Clothing segment, our primary performance obligation in most contracts is to provide solution-based, custom-designed fabrics and belts to the customer. We satisfy this performance obligation upon transferring control of the product to the customer at a specific point in time. Generally, the customer obtains control when the product has been received at the location specified by the customer, at which time the only remaining obligations under the contract are fulfillment costs, which are accrued when control of the product is transferred. In the Machine Clothing segment, some contracts with certain customers may also obligate us to provide various product-related services at no additional cost to the customer. When this obligation is material in the context of the contract with the customer, we recognize a separate performance obligation and allocate revenue to those services based on their estimated standalone selling price. The standalone selling price for these services is determined based upon an analysis of the services offered and an assessment of the price we might charge for such services as a separate offering. As we typically provide such services on a stand-ready basis, we recognize this revenue over time. Revenue allocated to such service performance obligations is the only Machine Clothing revenue that is recognized over time. In our Albany Engineered Composites (AEC) business segment, we primarily enter into contracts to manufacture and deliver highly engineered advanced composite products to our customers. The majority of AEC revenue is from short duration, firm-fixed-price orders that are placed under a master agreement containing general terms and conditions applicable to all orders placed under the master agreement. To determine the proper revenue recognition method, we evaluate whether two or more orders or contracts should be combined and accounted for as one single contract, and whether the combined or single contract contains single or multiple performance obligations. This evaluation requires significant judgment, and the decision to combine a group of contracts, or to allocate revenue from the combined or single contract among multiple performance obligations could have a significant impact on the amount of revenue and profit recorded in a given period. For most AEC contracts, the nature of our promise (or our performance obligation) to the customer is to manage the contract and provide a significant service of integrating a complex set of tasks and components into a single project or capability, which will often result in the delivery of multiple highly interdependent and interrelated units. At the inception of a contract we estimate the transaction price based on our current rights, and do not contemplate future modifications (including unexercised options) or follow-on contracts until they become legally enforceable. Many AEC contracts are subsequently modified to include changes in specifications, requirements or price, which may create new or change existing enforceable rights and obligations. Depending on the nature of the modification, we consider whether to account for the modification as an adjustment to the existing contract or as a separate contract. Generally, we are able to conclude that such modifications are not distinct from the existing contract, due to the significant integration of the obligations, and the interrelated nature of tasks, provided for in the modification and the existing contract. Therefore, such modifications are accounted for as if they were part of the existing contract, and we accumulate the values of such modifications in our estimates of contract value. Revenue is recognized over time for a large portion of our contracts in AEC as most of our contracts have provisions that, under the guidance in ASC 606, are deemed to transfer control to the customer over time. Revenue is recognized based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress toward completion requires judgment and is based on the nature of the products or services to be provided. We generally use the cost-to-cost measure of progress for our contracts because it best depicts the transfer of assets to the customer which occurs as we incur costs to produce the contract deliverables. Under the cost-to-cost measure of progress, the extent of progress toward completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenue, including profit, is recorded proportionally as costs are incurred. Accounting for long-term contracts requires significant judgment and estimation, which could be considerably different if the underlying circumstances were to change. When any adjustments of estimated contract revenue or costs is required, any changes from prior estimates are included in revenues or earnings in the period in which the change occurs. In other AEC contracts, revenue is recognized at a point in time because the products are offered to multiple customers, or do not have an enforceable right to payment until the product is shipped or delivered to the location specified by the customer in the contract. AEC’s largest source of revenue is derived from the LEAP contract (see Note 3) under a cost- plus-fee agreement. Beginning in 2018, the fee is variable based on our success in achieving certain cost targets. Revenue is recognized over time as costs are incurred. Under this contract, there is significant judgment involved in determining applicable contract costs and expected margin, and therefore in determining the amount of revenue to be recognized. Payment terms granted to MC and AEC customers reflect general competitive practices. Terms vary with product, competitive conditions, and the country of operation. The following table provides a summary of the composition of each business segment: Segment Reporting Unit Principal Product or Service Principal Locations Machine Clothing (MC) Machine Clothing Paper machine clothing: Permeable and impermeable belts used in the manufacture of paper, paperboard, tissue and towel, and pulp Engineered fabrics: Belts used in the manufacture of nonwovens, fiber cement and several other industrial applications World-wide Albany Engineered Composites (AEC) Albany Safran Composites (ASC) 3D-woven, injected composite components for aircraft engines Rochester, NH Commercy, France Queretaro, Mexico Airframe and engine Components (Other AEC) Composite airframe and engine components for military and commercial aircraft Salt Lake City, UT Boerne, TX Queretaro, Mexico We disaggregate revenue earned from contracts with customers for each of our business segments and reporting units based on the timing of revenue recognition, and groupings used for internal review purposes. The following table disaggregates revenue for each reporting unit by timing of revenue recognition: For the Six Months Ended June 30, 2018 (in thousands) Point in Time Revenue Recognition Over Time Revenue Recognition Total Machine Clothing $309,186 $1,600 $310,786 Albany Engineered Composites ASC - 87,806 87,806 Other AEC 11,744 75,870 87,614 Total Albany Engineered Composites 11,744 163,676 175,420 Total Revenue $320,930 $165,276 $486,206 The following table disaggregates MC segment revenue by significant product groupings (paper machine clothing (PMC) and engineered fabrics), and, for PMC, the geographical region to which the paper machine clothing was sold: For the Six Months Ended (in thousands) June 30, 2018 Americas PMC $152,686 Eurasia PMC 116,500 Engineered Fabrics 41,600 Total Machine Clothing Net sales $310,786 In accordance with ASC 606-10-50-14, we do not disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less. Contracts in the Machine Clothing segment are generally for periods of less than a year. Most contracts in the AEC segment are short duration firm-fixed price orders representing performance obligations with an original maturity of less than one year. Performance obligations as of June 30, 2018 that had an original duration of greater than one year totaled $105 million and relate primarily to firm contracts in the AEC segment. Of that amount, we expect to recognize as revenue approximately $35 million during 2018, with the remainder to be recognized between 2019 and 2021. For some AEC contracts, we perform pre-production or nonrecurring engineering services. These costs are normally considered a fulfillment activity, rather than a performance obligation. Fulfillment activities that create resources that will be used in satisfying performance obligations in the future, and are expected to be recovered, are capitalized to Other Assets, which is classified as a noncurrent asset in the Consolidated Balance Sheets. The capitalized costs are amortized into Cost of goods sold over the period over which the asset is expected to contribute to future cash flows. As a result of applying the cumulative effect method for transition to ASC 606, we are required to disclose the effect of the new standard on each line of the consolidated financial statements. The following tables show the balances as reported for the period ended June 30, 2018, and how the consolidated financial statements would have appeared if we had not adopted ASC 606. ALBANY INTERNATIONAL CORP. CONSOLIDATED STATEMENT OF INCOME (in thousands, except per share amounts) (unaudited) As reported for the Three Months Ended June 30, 2018 Adjustments to reverse effects of ASC 606 As adjusted for the Three Months Ended June 30, 2018 to exclude adoption of ASC 606 As reported for the Six Months Ended June 30, 2018 Adjustments to reverse effects of ASC 606 As adjusted for the Six Months Ended June 30, 2018 to exclude adoption of ASC 606 $256,225 $400 $256,625 Net sales $486,206 ($8,034) $478,172 164,047 2,304 166,351 Cost of goods sold 312,377 (4,222) 308,155 92,178 (1,904) 90,274 Gross profit 173,829 (3,812) 170,017 36,707 5 36,712 Selling, general, and administrative expenses 78,637 (55) 78,582 10,198 - 10,198 Technical and research expenses 20,515 - 20,515 2,589 - 2,589 Restructuring expenses, net 11,162 - 11,162 42,684 (1,909) 40,775 Operating income 63,515 (3,757) 59,758 4,621 - 4,621 Interest expense, net 8,909 - 8,909 726 - 726 Other expense, net 2,178 - 2,178 37,337 (1,909) 35,428 Income before income taxes 52,428 (3,757) 48,671 7,031 (507) 6,524 Income tax expense 11,640 (1,108) 10,532 30,306 (1,402) 28,904 Net income 40,788 (2,649) 38,139 (59) (27) (86) Net income/(loss) attributable to the noncontrolling interest 178 (84) 94 $30,365 ($1,375) $28,990 Net income attributable to the Company $40,610 ($2,565) $38,045 $0.94 ($0.04) $0.90 Earnings per share attributable to Company shareholders - Basic $1.26 ($0.08) $1.18 $0.94 ($0.04) $0.90 Earnings per share attributable to Company shareholders - Diluted $1.26 ($0.08) $1.18 ALBANY INTERNATIONAL CORP. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME/(LOSS) (in thousands) (unaudited) As reported for the Three Months Ended June 30, 2018 Adjustments to reverse effects of ASC 606 As adjusted for the Three Months Ended June 30, 2018 to exclude adoption of ASC 606 As reported for the Six Months Ended June 30, 2018 Adjustments to reverse effects of ASC 606 As adjusted for the Six Months Ended June 30, 2018 to exclude adoption of ASC 606 $30,306 ($1,402) $28,904 Net income $40,788 ($2,649) $38,139 Other comprehensive income/(loss), before tax: (30,851) 839 (30,012) Foreign currency translation adjustments (13,346) 531 (12,815) (518) - (518) Pension/postretirement curtailment (518) - (518) Amortization of pension liability adjustments: (1,113) - (1,113) Prior service credit (2,227) - (2,227) 1,291 - 1,291 Net actuarial loss 2,588 - 2,588 54 - 54 Payments and amortization related to interest rate swaps included in earnings 234 - 234 2,211 - 2,211 Derivative valuation adjustment 7,926 - 7,926 Income taxes related to items of other comprehensive income/(loss): 155 - 155 Pension/postretirement curtailment 155 - 155 (53) - (53) Amortization of pension liability adjustment (108) - (108) (13) - (13) Payments related to interest rate swaps included in earnings (56) - (56) (530) - (530) Derivative valuation adjustment (1,902) - (1,902) 939 (563) 376 Comprehensive income 33,534 (2,118) 31,416 (48) (27) (75) Comprehensive income attributable to the noncontrolling interest 182 (84) 98 $987 ($536) $451 Comprehensive income attributable to the Company $33,352 ($2,034) $31,318 ALBANY INTERNATIONAL CORP. CONSOLIDATED BALANCE SHEET (in thousands, except share data) (unaudited) As reported June 30, 2018 Adjustments to reverse effects of ASC 606 As adjusted for June 30, 2018 to exclude adoption of ASC 606 ASSETS Cash and cash equivalents $154,744 $- $154,744 Accounts receivable, net 249,482 (4,286 ) 245,196 Contract assets 59,244 (59,244 ) - Inventories 97,659 51,736 149,395 Income taxes prepaid and receivable 6,087 - 6,087 Prepaid expenses and other current assets 19,559 - 19,559 Total current assets 586,775 (11,794 ) 574,981 Property, plant and equipment, net 450,694 - 450,694 Intangibles, net 52,322 - 52,322 Goodwill 165,474 - 165,474 Deferred income taxes 81,237 (648 ) 80,589 Noncurrent receivables 36,981 - 36,981 Other assets 48,978 (1,256 ) 47,722 Total assets $1,422,461 ($13,698 ) $1,408,763 LIABILITIES AND SHAREHOLDERS' EQUITY Notes and loans payable $26 $- $26 Accounts payable 54,752 - 54,752 Accrued liabilities 125,255 (17,485 ) 107,770 Current maturities of long-term debt 1,844 - 1,844 Income taxes payable 14,620 - 14,620 Total current liabilities 196,497 (17,485 ) 179,012 Long-term debt 523,186 - 523,186 Other noncurrent liabilities 97,563 - 97,563 Deferred taxes and other liabilities 13,556 (52 ) 13,504 Total liabilities 830,802 (17,537 ) 813,265 SHAREHOLDERS' EQUITY Preferred stock, par value $5.00 per share; authorized 2,000,000 shares; none issued - - - Class A Common Stock, par value $.001 per share; authorized 100,000,000 shares; issued 37,447,819 in 2018 and 37,395,753 in 2017 37 - 37 Class B Common Stock, par value $.001 per share; authorized 25,000,000 shares; issued and outstanding 3,233,998 in 2018 and 2017 3 - 3 Additional paid in capital 429,635 - 429,635 Retained earnings 558,639 $3,065 561,704 Accumulated items of other comprehensive income: Translation adjustments (102,888 ) 531 (102,357 ) Pension and postretirement liability adjustments (48,422 ) - (48,422 ) Derivative valuation adjustment 8,155 - 8,155 Treasury stock (Class A), at cost 8,418,620 shares in 2018 and 8,431,335 shares in 2017 (256,602 ) - (256,602 ) Total Company shareholders' equity 588,557 3,596 592,153 Noncontrolling interest 3,102 243 3,345 Total equity 591,659 3,839 595,498 Total liabilities and shareholders' equity $1,422,461 ($13,698 ) $1,408,763 ALBANY INTERNATIONAL CORP. CONSOLIDATED STATEMENT OF CASH FLOW (in thousands) (unaudited) As reported for the Three Months Ended June 30, 2018 Adjustments to reverse effects of ASC 606 As adjusted for the Three Months Ended June 30, 2018 to exclude adoption of ASC 606 As reported for the Six Months Ended June 30, 2018 Adjustments to reverse effects of ASC 606 As adjusted for the Six Months Ended June 30, 2018 to exclude adoption of ASC 606 OPERATING ACTIVITIES $30,306 ($1,402) $28,904 Net income $40,788 ($2,649) $38,139 Adjustments to reconcile net income to net cash provided by operating activities: 17,114 - 17,114 Depreciation 35,416 - 35,416 2,559 - 2,559 Amortization 5,205 - 5,205 (854) - (854) Change in other noncurrent liabilities (1,231) - (1,231) (6,118) (507) (6,625) Change in deferred taxes and other liabilities (6,902) (1,108) (8,010) 853 - 853 Provision for write-off of property, plant and equipment 1,124 - 1,124 154 - 154 Non-cash interest expense 154 - 154 1,047 - 1,047 Compensation and benefits paid or payable in Class A Common Stock 1,336 - 1,336 34 - 34 Fair valule adjustment on foreign currency option 71 - 71 Changes in operating assets and liabilities that (used)/provided cash: (12,903) (14,277) (27,180) Accounts receivable (44,370) (3,727) (48,097) (13,877) 13,877 - Contract assets (11,761) 11,761 - (1,371) 2,304 933 Inventories (10,615) (4,222) (14,837) (1,157) - (1,157) Prepaid expenses and other current assets (5,220) - (5,220) (5) - (5) Income taxes prepaid and receivable 97 - 97 11,420 - 11,420 Accounts payable 8,882 - 8,882 5,853 5 5,858 Accrued liabilities 4,668 (55) 4,613 10,020 - 10,020 Income taxes payable 6,589 - 6,589 (1,643) - (1,643) Noncurrent receivables (4,170) - (4,170) (5,745) - (5,745) Other, net (3,321) - (3,321) 35,687 - 35,687 Net cash provided by operating activities 16,740 - 16,740 (23,375) - (23,375) Net cash used in investing activities (39,175) - (39,175) (1,112) - (1,112) Net cash used in financing activities (3,570) - (3,570) (7,882) - (7,882) Effect of exchange rate changes on cash and cash equivalents (2,978) - (2,978) 3,318 - 3,318 (Decrease)/increase in cash and cash equivalents (28,983) - (28,983) 151,426 - 151,426 Cash and cash equivalents at beginning of period 183,727 - 183,727 $154,744 $ - $154,744 Cash and cash equivalents at end of period $154,744 $ - $154,744 |
Reportable Segments
Reportable Segments | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Reportable Segments | 3. Reportable Segments As described in Note 2, the Company adopted the provisions of ASC 606, “Revenue from contracts with customers”, effective January 1, 2018, using the cumulative effect method for transition. Periods prior to 2018 have not been restated. The following tables show data by reportable segment, reconciled to consolidated totals, and the impact that ASC 606 had on the three- and six-month periods ended June 30, 2018: Three months ended June 30, Three months ended (in thousands) 2018 2017 Increase/(decrease) Net sales Machine Clothing $162,635 $146,572 $857 Albany Engineered Composites 93,590 68,999 (1,257) Consolidated total $256,225 $215,571 ($400) Operating income/(loss) Machine Clothing $50,843 $38,425 $1,786 Albany Engineered Composites 4,092 (17,828) 123 Corporate expenses (12,251) (10,742) Operating income $42,684 $9,855 $1,909 Reconciling items: Interest income (438) (340) - Interest expense 5,059 4,625 - Other expense, net 726 2,558 - Income before income taxes $37,337 $3,012 $1,909 Six months ended June 30, Six months ended (in thousands) 2018 2017 Increase/(decrease) Net sales Machine Clothing $310,786 $289,399 $5,068 Albany Engineered Composites 175,420 125,449 2,966 Consolidated total $486,206 $414,848 $8,034 Operating income/(loss) Machine Clothing $81,613 $76,688 $2,765 Albany Engineered Composites 6,366 (22,942) 992 Corporate expenses (24,464) (21,213) - Operating income $63,515 $32,533 $3,757 Reconciling items: Interest income (820) (447) - Interest expense 9,729 9,060 - Other expense, net 2,178 3,384 - Income before income taxes $52,428 $20,536 $3,757 At the January 1, 2018 date of adoption of ASC 606, Machine Clothing assets increased by $22 million, and AEC assets decreased by $13 million. Except for the effect of adopting ASC 606, there were no material changes in the total assets of the reportable segments for the six months ended June 30, 2018. As described in Note 4, effective January 1, 2018, the Company adopted an accounting update that affects the classification of components of pension and postretirement benefit costs. As a result of adopting that update, some costs that were previously included in operating expenses shall now be included in Other expense, net. Periods prior to 2018 have been restated to conform to the current year presentation (see Note 4). The Albany Engineered Composites (AEC) segment, including Albany Safran Composites, LLC (ASC), in which our customer SAFRAN Group (Safran) owns a 10 percent noncontrolling interest, provides highly engineered, advanced composite structures to customers in the aerospace and defense industries. AEC’s largest program relates to CFM International’s LEAP engine. Under this program, AEC through ASC, is the exclusive supplier of advanced composite fan blades and cases under a long-term supply contract. The manufacturing spaces used for the production of parts under the long-term supply agreement are owned by Safran, and leased to the Company at either market rent or a minimal cost. All lease expense is reimbursable by Safran to the Company due to the cost-plus nature of the supply agreement. AEC net sales to Safran were $88.4 million in the first six months of 2018 and $56.8 million in the first six months of 2017. The total of Accounts receivables, Contract assets and Noncurrent receivables due from Safran amounted to $96.8 million and $58.6 million as of June 30, 2018 and December 31, 2017, respectively. In the second quarter of 2017, the Company recorded a charge to Cost of goods sold of approximately $15.8 million associated with revisions in the estimated profitability of two AEC contracts. The charge was principally due to second-quarter 2017 downward revisions of estimated customer demand for the components manufactured by AEC related to the BR 725 and A380 programs. The charge included a $4.0 million write-off of program inventory costs, and a reserve for future losses of $11.8 million, which is included in Accrued liabilities in the Consolidated Balance Sheets. The table below presents restructuring costs by reportable segment (also see Note 5): Three months ended June 30, Six months ended (in thousands) 2018 2017 2018 2017 Machine Clothing $1,800 $805 $10,152 $916 Albany Engineered Composites 558 1,231 779 3,801 Corporate expenses 231 - 231 - Total $2,589 $2,036 $11,162 $4,717 |
Pensions and Other Postretireme
Pensions and Other Postretirement Benefit Plans | 6 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
Pensions and Other Postretirement Benefit Plans | 4. Pensions and Other Postretirement Benefit Plans Pension Plans The Company has defined benefit pension plans covering certain U.S. and non-U.S. employees. The U.S. qualified defined benefit pension plan has been closed to new participants since October 1998 and, as of February 2009, benefits accrued under this plan were frozen. As a result of the freeze, employees covered by the pension plan will receive, at retirement, benefits already accrued through February 2009 but no new benefits accrue after that date. Benefit accruals under the U.S. Supplemental Executive Retirement Plan ("SERP") were similarly frozen. The eligibility, benefit formulas, and contribution requirements for plans outside of the U.S. vary by location. Other Postretirement Benefits The Company also provides certain postretirement benefits to retired employees in the U.S. and Canada. The Company accrues the cost of providing postretirement benefits during the active service period of the employees. The Company currently funds the plans as claims are paid. The composition of the net periodic benefit plan cost for the six months ended June 30, 2018 and 2017, was as follows: Pension plans Other postretirement benefits (in thousands) 2018 2017 2018 2017 Components of net periodic benefit cost: Service cost $1,391 $1,307 $116 $122 Interest cost 3,621 3,671 1,013 1,107 Expected return on assets (4,470) (4,003) - Curtailment gain (518) - - - Amortization of prior service cost/(credit) 17 18 (2,244) (2,244) Amortization of net actuarial loss 1,110 1,295 1,478 1,405 Net periodic benefit cost $1,151 $2,288 $363 $390 In 2018, the Company adopted the provisions of ASU 2017-07, “ Compensation – Retirement Benefits: improving the presentation of net periodic pension cost and net periodic postretirement benefit cost We restated 2017 expenses using the application of a practical expedient, which permits the usage of amounts disclosed in the prior year Pension and Other Postretirement benefit plans footnote as the estimation basis for applying the retrospective presentation requirements. The tables below show the 2017 amounts reclassified by segment and financial statement line item that resulted from adopting this update: Effect by segment operating expenses: (in thousands) Increase/(decrease) in expense for the six months ended June 30, 2017 Machine Clothing ($9) Albany Engineered Composites - Corporate expenses (1,240) Total operating expenses ($1,249) Other expense, net $1,249 Effect by Statement of Income line item: (in thousands) Increase/(decrease) in expense for the six months ended June 30, 2017 Cost of goods sold ($247) Selling, general and administrative expenses (1,002) Total operating expenses ($1,249) Other expense, net $1,249 |
Restructuring
Restructuring | 6 Months Ended |
Jun. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | 5. Restructuring On October 5, 2017, the Company filed a form 8-K to announce the initiation of discussions regarding a proposal to discontinue operations at its Machine Clothing production facility in Sélestat, France. During 2017, we incurred $1.1 million of restructuring expense associated with this proposal but were unable to reasonably estimate the total costs for severance and other charges associated with the proposal as there was no assurance, at that time, that approval for the proposal would be obtained. In the first quarter of 2018 the plan was approved by the French Labor Ministry. The restructuring program was driven by the Company’s need to balance manufacturing capacity with demand. In the first six months of 2018, we recorded restructuring expense of $8.6 million, which includes our estimate of the severance and outplacement costs for the approximately 50 positions that will be terminated under this plan. To date, we have recorded $9.7 million of restructuring charges related to this action. The Company continues to assess property, plant and equipment in that location to determine if equipment will be transferred to other facilities, or if the value of the assets can be recovered through a sale. Depending on the outcome of that assessment, additional restructuring charges could be recorded in future periods. AEC restructuring charges for the first six months of 2018 and 2017 principally relate to work force reductions in Salt Lake City, Utah and Rochester, New Hampshire. To date, we have recorded $5.8 million of restructuring charges related to these actions. The following table summarizes charges reported in the Consolidated Statements of Income under “Restructuring expenses, net”: Three months ended June 30, Six months ended (in thousands) 2018 2017 2018 2017 Machine Clothing $1,800 $805 $10,152 $916 Albany Engineered Composites 558 1,231 779 3,801 Corporate expenses 231 - 231 - Total $2,589 $2,036 $11,162 $4,717 Six months ended June 30, 2018 Total restructuring costs incurred Termination and other costs Impairment of assets (in thousands) Machine Clothing $10,152 $10,152 $- Albany Engineered Composites 779 779 - Corporate expenses 231 231 - Total $11,162 $11,162 $- Six months ended June 30, 2017 Total restructuring costs incurred Termination Impairment (in thousands) Machine Clothing $916 $916 $- Albany Engineered Composites 3,801 3,356 445 Corporate expenses - - - Total $4,717 $4,272 $445 We expect that approximately $8.4 million of Accrued liabilities for restructuring at June 30, 2018 will be paid within one year and approximately $0.4 million will be paid in the following year. The table below presents the year-to-date changes in restructuring liabilities for 2018 and 2017, all of which related to termination costs: December 31, Restructuring Currency June 30, (in thousands) 2017 charges accrued Payments translation 2018 Total termination and other costs $3,326 $11,162 ($5,323) ($378) $8,787 December 31, Restructuring Currency June 30, (in thousands) 2016 charges accrued Payments translation 2017 Total termination and other costs $5,559 $4,272 ($4,513) $65 $5,383 |
Other expense, net
Other expense, net | 6 Months Ended |
Jun. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Other expense, net | 6. Other expense, net The components of Other expense, net are: Three months ended Six months ended (in thousands) 2018 2017 2018 2017 Currency transaction (gains)/losses ($9) $1,948 $681 $2,049 Bank fees 96 111 204 259 Components of net periodic pension and postretirement cost other than service 259 627 525 1,249 Other 380 (128) 768 (173) Total $726 $2,558 $2,178 $3,384 In 2018, the Company adopted the provisions of ASU 2017-07. This accounting update affected the classification of components of net periodic benefit cost, other than service cost, to be reported separately from the service cost component and outside of operating income. The Company elected to report other components of net periodic pension and postretirement cost in Other expense, net. The comparative consolidated statement of income was restated as required by this update. Further detail of this accounting update is disclosed in Note 4. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes The following table presents components of income tax expense for the three and six months ended June 30, 2018 and 2017: Three months ended Six months ended (in thousands) 2018 2017 2018 2017 Income tax based on income from continuing operations, at estimated tax rates of 30.1% and 32.8%, respectively $11,239 $989 $15,779 $6,744 Provision for change in estimated tax rate (359) 36 - - Income tax before discrete items 10,880 1,025 15,779 6,744 Discrete tax expense: Exercise of US Stock Options (3) - (126) (55) Impact of mandatory repatriation (1,099) - (1,099) - Adjustments to prior period tax liabilities (206) 189 (252) 189 Provision for/resolution of tax audits and contingencies, net 2,443 599 2,448 1,451 Changes in valuation allowance (4,986) - (4,986) - Other 2 (34) (124) - Total income tax expense $7,031 $1,779 $11,640 $8,329 The second quarter estimated effective tax rate on continuing operations was 30.1 percent in 2018, compared to 32.8 percent for the same period in 2017. Income tax expense for the quarter was computed in accordance with ASC 740-270 “Income Taxes – Interim Reporting”. Under this method, loss jurisdictions which cannot recognize a tax benefit with regard to their generated losses are excluded from the annual effective tax rate (AETR) calculation and their taxes are recorded discretely in each quarter. The Company’s tax rate is affected by recurring items such as the income tax rate in the U.S. and in non-U.S. jurisdictions and the mix of income earned in those jurisdictions, including changes in losses and income from excluded loss jurisdictions, and the impact of discrete items in the respective quarter. Additionally, tax adjustments resulting from the 2017 Tax Cut and Jobs Act (TCJA) have affected the Company’s 2018 AETR, including the global intangible low-taxed income (GILTI) inclusion, the foreign-derived intangible income (FDII) deduction and the corporate U.S. tax rate reduction from 35% to 21%. The TCJA significantly revised the U.S. corporate income tax regime by, among other things, lowering the U.S. corporate tax rate from 35% to 21% effective January 1, 2018, while also repealing the deduction for domestic production activities, implementing a territorial tax system and imposing a transition tax on deemed repatriated earnings of foreign subsidiaries. U.S. GAAP requires that the impact of tax legislation be recognized in the period in which the law was enacted. In December 2017, the Securities and Exchange Commission staff issued Staff Accounting Bulletin No. 118 (SAB 118), which addresses how a company recognizes provisional amounts when a company does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete its accounting for the effect of the changes in the TCJA. The measurement period ends when a company has obtained, prepared and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year. The Company elected to apply the measurement period guidance provided in SAB 118. Deferred tax assets and liabilities: At December 31, 2017, the Company re-measured certain deferred tax assets and liabilities based on the federal rate of 21%. However, the Company is still analyzing certain aspects of the TCJA, such as IRC section 162(m), and refining its calculations which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts. As such, no adjustment has been recorded to the provisional amount previously recorded in 2017. Foreign tax effects: At December 31, 2017, the Company recorded a provisional federal tax charge due to the transition tax on deemed repatriation of foreign earnings. As of June 30, 2018, the Company is still analyzing its U.S. tax attributes such as foreign earnings and profits, foreign tax paid, and other tax components involved in foreign tax credit calculations, however, the Company has recorded a net $1.1 million reduction to the provisional transition tax in Q2 2018. The $1.1 million adjustment is comprised of a $1.9 million federal tax benefit attributable to adjustments discovered while analyzing the Post 1986 E&P and tax pools through 2016 and a $0.8 million state tax charge based on interpretive guidance issued by various states during the quarter on how the deemed mandatory repatriation would be taxed in those jurisdictions. These amounts are still considered provisional as the Company continues to analyze guidance and legislation published by the taxing jurisdictions. The Company has elected to account for the global intangible low-taxed income (GILTI) as a current-period expense when incurred (the “period cost method”). The estimated net GILTI inclusion calculated by the Company (including the gross up on the GILTI Inclusion and the apportioned foreign tax credits applied to GILTI) was $18 million and increased the AETR by 2.3%. The Company also calculated an estimated foreign-derived intangible income (FDII) deduction of $9 million which decreased the AETR by 2.1%. Because of the complexity of the GILTI and FDII tax rules and the lack of legislative guidance, the Company continues to evaluate these provisions of the TCJA and the application of ASC 740, Income Taxes. The final impact on the Company from the TCJA’s GILTI and FDII tax legislation may differ from the estimate calculated by the Company. Such differences could be material, due to, among other things, changes in interpretations of the TCJA, future legislative action to address questions that arise because of the TCJA, changes in accounting standards for income taxes or related interpretations in response to the TCJA, or any updates or changes to estimates the Company has utilized to calculate the GILTI inclusion and FDII deduction. The Company continues to believe that the Base Erosion Anti-Abuse Tax (BEAT) does not apply under the Company’s current policies. Therefore no adjustments for BEAT have been recorded. The Company records the residual U.S. and foreign taxes on certain amounts of foreign earnings that have been targeted for repatriation to the U.S. These amounts are not considered to be indefinitely reinvested, and the Company accrued for the tax cost on these earnings to the extent they cannot be repatriated in a tax-free manner. The Company has targeted for repatriation $92.9 million of current year and prior year earnings of the Company’s foreign operations. If these earnings were distributed, the Company would be subject to foreign withholding taxes of $2.2 million which have already been recorded. The Company conducts business globally and, as a result, files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. In the normal course of business the Company is subject to examination by taxing authorities throughout the world, including major jurisdictions such as the United States, Brazil, Canada, France, Germany, Italy, Mexico, and Switzerland. The open tax years in these jurisdictions range from 2007 to 2018. The Company is currently under audit in non-U.S. tax jurisdictions, including but not limited to Canada and Italy. During the second quarter of 2018, the Company recorded a charge for additional uncertain tax positions of $2.4 million as a result of developments in ongoing tax audits. It is reasonably possible that over the next twelve months the amount of unrecognized tax benefits may change within a range of a net increase of nil to a net decrease of $0.7 million, from the reevaluation of uncertain tax positions arising in examinations, in appeals, or in the courts, or from the closure of tax statutes of limitations. As of each reporting date, management considers new evidence, both positive and negative, that could affect its view of the future realization of deferred tax assets. As of June 2018, management determined that there was sufficient positive evidence to conclude that it is more likely than not that deferred tax assets in Germany are realizable. Therefore, the Company reversed the previously recorded valuation allowance in the second quarter of 2018 which resulted in a discrete tax benefit of $5.0 million. In October 2016, an accounting update, ASU 2016-16 was issued which modifies the recognition of income tax effects on intercompany transfers of assets, other than inventory. The Company adopted this update effective January 1, 2018, which resulted in a decrease of $0.5 million to deferred taxes liabilities, with an offsetting increase to retained earnings. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 8. Earnings Per Share The amounts used in computing earnings per share and the weighted average number of shares of potentially dilutive securities are as follows: Three months ended Six months ended (in thousands, except market price and earnings per share) 2018 2017 2018 2017 Net income attributable to the Company $30,365 $1,117 $40,610 $11,956 Weighted average number of shares: Weighted average number of shares used in calculating basic net income per share 32,257 32,166 32,239 32,147 Effect of dilutive stock-based compensation plans: Stock options 16 34 16 35 Weighted average number of shares used in calculating diluted net income per share 32,273 32,200 32,255 32,182 Average market price of common stock used for calculation of dilutive shares $61.86 $48.44 $62.83 $47.47 Net income per share: Basic $0.94 $0.03 $1.26 $0.37 Diluted $0.94 $0.03 $1.26 $0.37 |
Noncontrolling Interest
Noncontrolling Interest | 6 Months Ended |
Jun. 30, 2018 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest | 9. Noncontrolling Interest The table below presents a reconciliation of income attributable to the noncontrolling interest and noncontrolling equity in the Company’s subsidiary Albany Safran Composites, LLC, and the impact that the ASC 606 revenue standard had on Company results for the first six months of 2018, included in the consolidated financial statements: Six months ended (in thousands) 2018 2017 Net income of Albany Safran Composites (ASC) $2,419 $3,029 Less: Return attributable to the Company's preferred holding 635 515 Net income of ASC available for common ownership $1,784 $2,514 Ownership percentage of noncontrolling shareholder 10% 10% Net income attributable to noncontrolling interest $178 $251 Noncontrolling interest, beginning of year $3,247 $3,767 Decrease attributable to application of ASC 606 (327) - Net income attributable to noncontrolling interest 178 251 Changes in other comprehensive income attributable to noncontrolling interest 4 13 Noncontrolling interest $3,102 $4,031 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (AOCI) | 6 Months Ended |
Jun. 30, 2018 | |
Accumulated items of other comprehensive income: | |
Accumulated Other Comprehensive Income (AOCI) | 10. Accumulated Other Comprehensive Income (AOCI) The table below presents changes in the components of AOCI for the period December 31, 2017 to June 30, 2018: (in thousands) Translation adjustments Pension and postretirement liability adjustments Derivative valuation adjustment Total Other Comprehensive Income December 31, 2017 ($87,318) ($50,536) $1,953 ($135,901) Other comprehensive income/(loss) before reclassifications (15,570) 2,224 6,024 (7,322) Pension/postretirement curtailment gain, net of tax (363) (363) Interest expense related to swaps reclassified to the Consolidated Statements of Income, net of tax 178 178 Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income, net of tax 253 253 Net current period other comprehensive income (15,570) 2,114 6,202 (7,254) June 30, 2018 ($102,888) ($48,422) $8,155 ($143,155) The table below presents changes in the components of AOCI for the period December 31, 2016 to June 30, 2017: (in thousands) Translation adjustments Pension and postretirement liability adjustments Derivative valuation adjustment Total Other Comprehensive Income December 31, 2016 ($133,298) ($51,719) $828 ($184,189) Other comprehensive income/(loss) before reclassifications 28,453 (1,079) (619) 26,755 Interest expense related to swaps reclassified to the Consolidated Statements of Income, net of tax 585 585 Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income, net of tax 332 332 Net current period other comprehensive income 28,453 (747) (34) 27,672 June 30, 2017 ($104,845) ($52,466) $794 ($156,517) The table below presents the expense/(income) amounts reclassified, and the line items of the Consolidated Statements of Income that were affected for the periods ended June 30, 2018 and 2017. Three months ended June 30, Six months ended (in thousands) 2018 2017 2018 2017 Pretax Derivative valuation reclassified from Accumulated Other Comprehensive Income: Expense related to interest rate swaps included in Income $54 $343 $234 $943 Income tax effect (13) (130) (56) (358) Effect on net income due to items reclassified from Accumulated Other Comprehensive Income $41 $213 $178 $585 Pretax pension and postretirement liabilities reclassified from Accumulated Other Comprehensive Income: Pension/postretirement curtailment ($518) $- ($518) $- Amortization of prior service credit (b) (1,113) (1,113) (2,227) (2,226) Amortization of net actuarial loss (b) 1,291 1,353 2,588 2,700 Total pretax amount reclassified (340) 240 (157) 474 Income tax effect 102 (72) 47 (142) Effect on net income due to items reclassified from Accumulated Other Comprehensive Income ($238) $168 ($110) $332 (a) Included in Interest expense are payments related to the interest rate swap agreements and amortization of swap buyouts (see Note 16). (b) These accumulated other comprehensive income components are included in Other expense, net (see Note 4). The curtailment adjustment was included in restructuring expenses, net. |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Accounts Receivable | 11. Accounts Receivable Accounts receivable includes trade receivables and bank promissory notes. As a result of adopting ASC 606, Revenue in excess of progress billings on long-term contracts in the Albany Engineered Composites segment was reclassified to Contract assets in 2018. Including that reclassification, the cumulative effect from the adoption of ASC 606 was an increase to Accounts receivable of $7.7 million as Accounts receivable recorded in the cumulative adjustment exceeded that reclassification. The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. The Company determines the allowance based on historical write-off experience, customer-specific facts and economic conditions. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. As of June 30, 2018 and December 31, 2017, Accounts receivable consisted of the following: (in thousands) June 30, December 31, Trade and other accounts receivable $238,763 $152,375 Bank promissory notes 18,070 20,255 Revenue in excess of progress billings - 37,964 Allowance for doubtful accounts (7,351) (7,919) Total accounts receivable $249,482 $202,675 In connection with certain sales in Asia, the Company accepts a bank promissory note as customer payment. The notes may be presented for payment at maturity, which is less than one year. The Company also has Noncurrent receivables in the AEC segment that represent revenue earned which has extended payment terms. The Noncurrent receivables will be invoiced to the customer, with 2% interest, over a 10-year period starting in 2020. As of June 30, 2018 and December 31, 2017, Noncurrent receivables consisted of the following: (in thousands) June 30, December 31, Noncurrent receivables $36,981 $32,811 |
Contract Assets and Liabilities
Contract Assets and Liabilities | 6 Months Ended |
Jun. 30, 2018 | |
Contract Assets And Liabilities | |
Contract Assets and Liabilities | 12. Contract Assets and Liabilities Beginning in 2018, Contract assets includes unbilled amounts typically resulting from sales under contracts when the cost-to-cost method of revenue recognition is utilized, and revenue recognized exceeds the amount billed to the customer. For periods prior to 2018, that asset was included in Accounts receivable. At the date of adoption of ASC 606, we recorded Contract assets of $47.4 million, which included the amount that was in Accounts receivable as of December 31, 2017, and additional transition adjustments that resulted from the retrospective application of ASC 606 to contracts in process at the time of adoption. Contract assets are transferred to Accounts receivable, net when the entitlement to pay becomes unconditional. Contract liabilities include advance payments and billings in excess of revenue recognized. Contract liabilities are included in Accrued liabilities in the Consolidated Balance Sheet. Contract assets and Contract liabilities are reported on the Consolidated Balance Sheets in a net position on a contract-by-contract basis at the end of each reporting period. Contract assets and contract liabilities were as follows: (in thousands) June 30, December 31, Contract assets $59,244 $ - Contract liabilities 4,220 - Contract assets increased $11.8 million during the six month period ended June 30, 2018 as compared to the January 1, 2018 opening balance sheet, as adjusted for the adoption of ASC 606 (see Note 2). The increase was primarily due to an increase in unbilled revenue related to the satisfaction of performance obligations, in excess of the amounts billed to customers. There were no impairment losses related to our Contract assets during the six month period ended June 30, 2018. Contract liabilities increased $3.5 million during the six month period ended June 30, 2018, as compared to the January 1, 2018 opening balance sheet, as adjusted for the adoption of ASC 606, primarily due to increased billings in excess of revenue recognized. Revenue recognized for the six month period ended June 30, 2018, that was included in the Contract liability balance at the beginning of the year was less than $1 million, and represented revenue primarily in the ASC reporting unit. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | 13. Inventories Costs included in inventories are raw materials, labor, supplies and allocable depreciation and overhead. Raw material inventories are valued on an average cost basis. Other inventory cost elements are valued at cost, using the first-in, first-out method. The Company writes down the inventories for estimated obsolescence, and to lower of cost or net realizable value based upon assumptions about future demand and market conditions. If actual demand or market conditions are less favorable than those projected by the Company, additional inventory write-downs may be required. Once established, the original cost of the inventory less the related write-down represents the new cost basis of such inventories. The decrease in Inventories in 2018, compared to the balances as of December 31, 2017, was principally due to the cumulative effect of adopting ASC 606 (see Note 2) which decreased Inventories by $47.1 million. As of June 30, 2018 and December 31, 2017, inventories consisted of the following: (in thousands) June 30, 2018 December 31, 2017 Raw materials $39,822 $42,215 Work in process 44,526 65,448 Finished goods 13,311 28,856 Total inventories $97,659 $136,519 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 14. Goodwill and Other Intangible Assets Goodwill and intangible assets with indefinite useful lives are not amortized, but are tested for impairment at least annually. Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in each business combination. Determining the fair value of a reporting unit requires the use of significant estimates and assumptions, including revenue growth rates, operating margins, discount rates, and future market conditions, among others. Goodwill and other long-lived assets are reviewed for impairment whenever events, such as significant changes in the business climate, plant closures, changes in product offerings, or other circumstances indicate that the carrying amount may not be recoverable. To determine fair value, we utilize two market-based approaches and an income approach. Under the market-based approaches, we utilize information regarding the Company as well as publicly available industry information to determine earnings multiples and sales multiples. Under the income approach, we determine fair value based on estimated future cash flows of each reporting unit, discounted by an estimated weighted-average cost of capital, which reflects the overall level of inherent risk of a reporting unit and the rate of return an outside investor would expect to earn. In the second quarter of 2018, the Company applied the qualitative assessment approach in performing its annual evaluation of goodwill and concluded that no impairment provision was required. There were no amounts at risk due to the large spread between the fair, and carrying value, of each reporting unit. We are continuing to amortize certain patents, trade names, customer relationships, customer contracts and technology assets that have finite lives. The gross carrying value, accumulated amortization and net values of intangible assets and goodwill as of June 30, 2018 and December 31, 2017, were as follows: As of June 30, 2018 Weighted average amortization life in years Gross carrying amount Accumulated amortization Net carrying amount Amortized intangible assets: AEC trade names 15 $140 ($127) $13 AEC technology 15 370 (302) 68 Customer relationships 15 48,421 (7,269) 41,152 Customer contracts 6 17,471 (6,559) 10,912 Other intangibles 5 322 (145) 177 Net amortized intangible assets $66,724 ($14,402) $52,322 Unamortized intangible assets: MC Goodwill $69,744 $- $69,744 AEC Goodwill 95,730 - 95,730 Total unamortized intangible assets: $165,474 $- $165,474 As of December 31, 2017 Weighted average amortization life in years Gross carrying amount Accumulated amortization Net carrying amount Amortized intangible assets: AEC trade names 15 $140 ($125) $15 AEC technology 15 370 (290) 80 Customer relationships 15 48,421 (5,654) 42,767 Customer contracts 6 17,471 (5,102) 12,369 Other intangibles 5 322 (112) 210 Net amortized intangible assets $66,724 ($11,283) $55,441 Unamortized intangible assets: MC Goodwill $71,066 $- $71,066 AEC Goodwill 95,730 - 95,730 Total unamortized intangible assets: $166,796 $- $166,796 The changes in intangible assets, net and goodwill from December 31, 2017 to June 30, 2018, were as follows: (in thousands) December Amortization Currency Translation June 30, 2018 Amortized intangible assets: AEC trade names $15 $(2) $- $13 AEC technology 80 (12) - 68 Customer relationships 42,767 (1,615) - 41,152 Customer contracts 12,369 (1,457) - 10,912 Other intangibles 210 (33) - 177 Net amortized intangible assets $55,441 ($3,119) $- $52,322 Unamortized intangible assets: MC Goodwill $71,066 $- $(1,322) $69,744 AEC Goodwill 95,730 - - 95,730 Total unamortized intangible assets: $166,796 $- $(1,322) $165,474 Estimated amortization expense of intangibles for the years ending December 31, 2018 through 2022, is as follows: Annual amortization Year (in thousands) 2018 $6,234 2019 6,234 2020 6,234 2021 6,163 2022 3,949 |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2018 | |
Long-term Debt and Capital Lease Obligations [Abstract] | |
Financial Instruments | 15. Financial Instruments Long-term debt, principally to banks and bondholders, consists of: (in thousands, except interest rates) June 30, 2018 December 31, 2017 Revolving credit agreement with borrowings outstanding at an end of period interest rate of 3.58% in 2018 and 3.40% in 2017 (including the effect of interest rate hedging transactions, as described below), due in 2022 $511,000 $501,000 Obligation under capital lease, matures 2022 14,030 14,919 Long-term debt 525,030 515,919 Less: current portion (1,844) (1,799) Long-term debt, net of current portion $523,186 $514,120 On November 7, 2017, we entered into a $685 million unsecured Five-Year Revolving Credit Facility Agreement (the “Credit Agreement”) which amended and restated the prior $550 million Agreement, entered into on April 8, 2016 (the “Prior Agreement”). Under the Credit Agreement, $511 million of borrowings were outstanding as of June 30, 2018. The applicable interest rate for borrowings was LIBOR plus a spread, based on our leverage ratio at the time of borrowing. At the time of the last borrowing on June 18, 2018, the spread was 1.500%. The spread was based on a pricing grid, which ranged from 1.250% to 1.750%, based on our leverage ratio. Based on our maximum leverage ratio and our Consolidated EBITDA, and without modification to any other credit agreements, as of June 30, 2018, we would have been able to borrow an additional $174 million under the Agreement. The Credit Agreement contains customary terms, as well as affirmative covenants, negative covenants and events of default comparable to those in the Prior Agreement. The Borrowings are guaranteed by certain of the Company's subsidiaries. Our ability to borrow additional amounts under the Credit Agreement is conditional upon the absence of any defaults, as well as the absence of any material adverse change (as defined in the Credit Agreement). The Company has a long-term capital lease obligation for real property in Salt Lake City, Utah. The lease has an implied interest rate of 5.0% and matures in 2022. The following schedule presents future minimum annual lease payments under the capital lease obligation and the present value of the minimum lease payments, as of June 30, 2018. Years ending December 31, (in thousands) 2018 $1,236 2019 2,473 2020 2,520 2021 2,520 2022 7,373 Total minimum lease payments 16,122 Less: Amount representing interest (2,092) Present value of minimum lease payments $14,030 On November 27, 2017, we terminated our interest rate swap agreements, originally entered into on May 9, 2016, that had effectively fixed the interest rate on $300 million of revolving credit borrowings, in order to enter into a new interest rate swap with a greater notional amount, and the same maturity as the Credit Agreement. We received cash of $6.3 million when the swap agreements were terminated and that payment will be amortized into interest expense through March 2021. On May 6, 2016, we terminated other interest rate swap agreements that had effectively fixed the interest rate on $120 million of revolving credit borrowings, in order to enter into a new interest rate swap with a greater notional amount, and the same maturity as the Credit Agreement. We paid $5.2 million to terminate the swap agreements and that cost will be amortized into interest expense through June 2020. On November 28, 2017, we entered into interest rate swap agreements for the period December 18, 2017 through October 17, 2022. These transactions have the effect of fixing the LIBOR portion of the effective interest rate (before addition of the spread) on $350 million of indebtedness drawn under the Credit Agreement at the rate of 2.11% during the period. Under the terms of these transactions, we pay the fixed rate of 2.11% and the counterparties pay a floating rate based on the one-month LIBOR rate at each monthly calculation date, which on June 18, 2018 was 2.09%, during the swap period. On June 18, 2018, the all-in-rate on the $350 million of debt was 3.61%. These interest rate swaps are accounted for as a hedge of future cash flows, as further described in Note 16 of the Notes to Consolidated Financial Statements. No cash collateral was received or pledged in relation to the swap agreements. Under the Credit Agreement, we are currently required to maintain a leverage ratio (as defined in the agreement) of not greater than 3.75 to 1.00 for each fiscal quarter ending prior to (but not including) September 30, 2019, and 3.50 to 1.00 for each fiscal quarter ending on or after September 30, 2019, and minimum interest coverage (as defined) of 3.00 to 1.00. As of June 30, 2018, our leverage ratio was 2.23 to 1.00 and our interest coverage ratio was 10.73 to 1.00. We may purchase our Common Stock or pay dividends to the extent our leverage ratio remains at or below 3.50 to 1.00, and may make acquisitions with cash provided our leverage ratio does not exceed the limits noted above. Indebtedness under the Credit Agreement is ranked equally in right of payment to all unsecured senior debt. We were in compliance with all debt covenants as of June 30, 2018. |
Fair-Value Measurements
Fair-Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair-Value Measurements | 16. Fair-Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Accounting principles establish a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Level 3 inputs are unobservable data points for the asset or liability, and include situations in which there is little, if any, market activity for the asset or liability. We had no Level 3 financial assets or liabilities at December 31, 2017 or June 30, 2018. The following table presents the fair-value hierarchy for our Level 1 and Level 2 financial and non-financial assets and liabilities, which are measured at fair value on a recurring basis: June 30, 2018 December 31, 2017 Quoted prices in active markets Significant other observable inputs Quoted prices in active markets Significant other observable inputs (in thousands) (Level 1) (Level 2) (Level 1) (Level 2) Fair Value Assets: Cash equivalents $18,728 $- $13,601 $- Prepaid expenses and other current assets: Foreign currency options 41 - - - Other Assets: Common stock of unaffiliated foreign public company (a) 962 999 - Interest rate swaps - 8,985 (b) - 313 (c) (a) Original cost basis $0.5 million (b) Net of $39.8 million receivable floating leg and $30.8 million liability fixed leg (c) Net of $34.9 million receivable floating leg and $34.6 million liability fixed leg Cash equivalents include short-term securities that are considered to be highly liquid and easily tradable. These securities are valued using inputs observable in active markets for identical securities. The common stock of the unaffiliated foreign public company is traded in an active market exchange. The shares are measured at fair value using closing stock prices and are recorded in the Consolidated Balance Sheets as Other assets. The securities are classified as available for sale, and as a result any unrealized gain or loss is recorded in the Shareholders’ Equity section of the Consolidated Balance Sheets rather than in the Consolidated Statements of Income. When the security is sold or impaired, gains and losses are reported on the Consolidated Statements of Income. Investments are considered to be impaired when a decline in fair value is judged to be other than temporary. We operate our business in many regions of the world, and currency rate movements can have a significant effect on operating results. Foreign currency instruments are entered into periodically, and consist of foreign currency option contracts and forward contracts that are valued using quoted prices in active markets obtained from independent pricing sources. These instruments are measured using market foreign exchange prices and are recorded in the Consolidated Balance Sheets as Other current assets and Accounts payable, as applicable. Changes in fair value of these instruments are recorded as gains or losses within Other expense, net. When exercised, the foreign currency instruments are net settled with the same financial institution that bought or sold them. For all positions, whether options or forward contracts, there is risk from the possible inability of the financial institution to meet the terms of the contracts and the risk of unfavorable changes in interest and currency rates, which may reduce the value of the instruments. We seek to mitigate risk by evaluating the creditworthiness of counterparties and by monitoring the currency exchange and interest rate markets while reviewing the hedging risks and contracts to ensure compliance with our internal guidelines and policies. Changes in exchange rates can result in revaluation gains and losses that are recorded in Selling, General and Administrative expenses or Other expense, net. Revaluation gains and losses occur when our business units have cash, intercompany (recorded in Other expense, net) or third-party trade (recorded in Selling, General and Administrative expenses) receivable or payable balances in a currency other than their local reporting (or functional) currency. Operating results can also be affected by the translation of sales and costs, for each non-U.S. subsidiary, from the local functional currency to the U.S. dollar. The translation effect on the Consolidated Statements of Income is dependent on our net income or expense position in each non-U.S. currency in which we do business. A net income position exists when sales realized in a particular currency exceed expenses paid in that currency; a net expense position exists if the opposite is true. The interest rate swaps are accounted for as hedges of future cash flows. The fair value of our interest rate swaps are derived from a discounted cash flow analysis based on the terms of the contract and the interest rate curve, and is included in Other assets and/or Other noncurrent liabilities in the Consolidated Balance Sheets. Unrealized gains and losses on the swaps flow through the caption Derivative valuation adjustment in the Shareholders’ equity section of the Consolidated Balance Sheets, to the extent that the hedges are highly effective. As of June 30, 2018, these interest rate swaps were determined to be highly effective hedges of interest rate cash flow risk. Any gains and losses related to the ineffective portion of the hedges will be recognized in the current period in earnings. Amounts accumulated in Other comprehensive income are reclassified as Interest expense, net when the related interest payments (that is, the hedged forecasted transactions), and amortization related to the swap buyouts, affect earnings. Interest expense related to payments under the active swap agreements totaled $0.7 million for the six month period ended June 30, 2018 and $0.5 million for the six month period ended June 30, 2017. Additionally, non-cash interest expense/(income) related to the amortization of swap buyouts totaled ($0.4) million for the six month period ended June 30, 2018 and $0.4 million of the six month period ended June 30, 2017. Gains/(losses) related to changes in fair value of derivative instruments that were recognized in Other expense, net in the Consolidated Statements of Income were as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2018 2017 2018 2017 Derivatives not designated as hedging instruments Foreign currency options losses ($34) ($75) ($71) ($129) |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | 17. Contingencies Asbestos Litigation Albany International Corp. is a defendant in suits brought in various courts in the United States by plaintiffs who allege that they have suffered personal injury as a result of exposure to asbestos-containing paper machine clothing synthetic dryer fabrics marketed during the period from 1967 to 1976 and used in certain paper mills. We were defending 3,677 claims as of June 30, 2018. The following table sets forth the number of claims filed, the number of claims settled, dismissed or otherwise resolved, and the aggregate settlement amount during the periods presented: Year ended December 31, Opening Number of Claims Claims Dismissed,Settled, or Resolved New Claims Closing Number of Claims Amounts Paid (thousands) to Settle or Resolve 2013 4,463 230 66 4,299 $78 2014 4,299 625 147 3,821 437 2015 3,821 116 86 3,791 164 2016 3,791 148 102 3,745 758 2017 3,745 105 90 3,730 55 2018 (as of June 30) 3,730 105 52 3,677 $93 We anticipate that additional claims will be filed against the Company and related companies in the future, but are unable to predict the number and timing of such future claims. Due to the fact that information sufficient to meaningfully estimate a range of possible loss of a particular claim is typically not available until late in the discovery process, we do not believe a meaningful estimate can be made regarding the range of possible loss with respect to pending or future claims and therefore are unable to estimate a range of reasonably possible loss in excess of amounts already accrued for pending or future claims. While we believe we have meritorious defenses to these claims, we have settled certain claims for amounts we consider reasonable given the facts and circumstances of each case. Our insurance carrier has defended each case and funded settlements under a standard reservation of rights. As of June 30, 2018 we had resolved, by means of settlement or dismissal, 37,699 claims. The total cost of resolving all claims was $10.3 million. Of this amount, almost 100% was paid by our insurance carrier, who has confirmed that we have approximately $140 million of remaining coverage under primary and excess policies that should be available with respect to current and future asbestos claims. The Company’s subsidiary, Brandon Drying Fabrics, Inc. (“Brandon”), is also a separate defendant in many of the asbestos cases in which Albany is named as a defendant, despite never having manufactured any fabrics containing asbestos. While Brandon was defending against 7,708 claims as of June 30, 2018, only ten claims have been filed against Brandon since January 1, 2012, and no settlement costs have been incurred since 2001. Brandon was acquired by the Company in 1999, and has its own insurance policies covering periods prior to 1999. Since 2004, Brandon’s insurance carriers have covered 100% of indemnification and defense costs, subject to policy limits and a standard reservation of rights. In some of these asbestos cases, the Company is named both as a direct defendant and as the “successor in interest” to Mount Vernon Mills (“Mount Vernon”). We acquired certain assets from Mount Vernon in 1993. Certain plaintiffs allege injury caused by asbestos-containing products alleged to have been sold by Mount Vernon many years prior to this acquisition. Mount Vernon is contractually obligated to indemnify the Company against any liability arising out of such products. We deny any liability for products sold by Mount Vernon prior to the acquisition of the Mount Vernon assets. Pursuant to its contractual indemnification obligations, Mount Vernon has assumed the defense of these claims. On this basis, we have successfully moved for dismissal in a number of actions. We currently do not anticipate, based on currently available information, that the ultimate resolution of the aforementioned proceedings will have a material adverse effect on the financial position, results of operations, or cash flows of the Company. Although we cannot predict the number and timing of future claims, based on the foregoing factors, the trends in claims filed against us, and available insurance, we also do not currently anticipate that potential future claims will have a material adverse effect on our financial position, results of operations, or cash flows. |
Changes in Shareholders' Equity
Changes in Shareholders' Equity | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Changes in Shareholders' Equity | 18. Changes in Shareholders’ Equity The following table summarizes changes in Shareholders’ Equity: (in thousands) Common Stock Class Additional paid in capital Retained earnings Accumulated items of other comprehensive income/(loss) Treasury stock Noncontrolling Interest Total Equity December 31, 2017 $40 $428,423 $534,082 ($135,901 ) ($256,876 ) $3,247 $573,015 Adoption of accounting standards (a),(b) - - (5,085 ) - - (327 ) (5,412 ) Net income - - 40,610 - - 178 40,788 Compensation and benefits paid or payable in shares - 1,062 - - 274 - 1,336 Options exercised - 150 - - - 150 Dividends declared - - (10,968 ) - - - (10,968 ) Cumulative translation adjustments - - - (15,570 ) - 4 (15,566 ) Pension and postretirement liability adjustments - - - 2,114 - - 2,114 Derivative valuation adjustment - - - 6,202 - - 6,202 June 30, 2018 $40 $429,635 $558,639 ($143,155 ) ($256,602 ) $3,102 $591,659 (a) As described in Note 2, the Company adopted ASC 606 effective January 1, 2018, which resulted in a decrease to Retained earnings of $5.6 million and a $0.3 million decrease to Noncontrolling interest. (b) As described in Note 7, the Company adopted ASU 2016-16 effective January 1, 2018, which resulted in a $0.5 increase to Retained earnings. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | 19. Recent Accounting Pronouncements In February 2016, an accounting update was issued which will require lessees to record most operating leases on their balance sheets, but recognize the expenses in the income statement in a manner similar to current practice. Under the new standard, lessees will be required to recognize a lease liability for the obligation to make lease payments, and an asset for the right to use the underlying asset for the lease term. Expenses related to operating leases will be recognized on a straight-line basis, while those determined to be financing leases will be recognized following a front-loaded expense profile, in which interest and amortization are presented separately in the income statement. The principal effect on the Company’s financial statements will be an increase in assets and liabilities. The Company is evaluating practical expedients that may be used, and a new method of transitioning to this standard which was recently approved by the FASB, both of which could affect the impact that the standard has on the Company’s financial statements. Additionally, we are evaluating changes to our processes and internal controls to ensure we meet the standard’s reporting and disclosure requirements. In August 2017, an accounting update was issued which simplifies the application of hedge accounting to better align the financial reporting of hedging relationships with a company’s risk management activities. We do not expect a significant impact to our consolidated assets and liabilities, net earnings, or cash flows as a result of adopting this new standard. We plan to adopt the new standard effective January 1, 2019. In February 2018, an accounting update was issued which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. This update is effective for annual and interim periods in fiscal years beginning after December 15, 2018. We are currently evaluating the impact of this update. |
Significant Accounting Polici26
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary for a fair presentation of results for such periods. Albany International Corp. (Albany, the Registrant, the Company, we, us, or our) consolidates the financial results of its subsidiaries for all periods presented. The results for any interim period are not necessarily indicative of results for the full year. The preparation of financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in Albany International Corp.’s Consolidated Financial Statements and accompanying Notes. Actual results could differ materially from those estimates. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with “Risk Factors,” “Legal Proceedings,” “Management’s Discussion and Analysis of Financial Condition and Results of Operation,” “Quantitative and Qualitative Disclosures about Market Risk” and the Consolidated Financial Statements and Notes thereto included in Items 1A, 3, 7, 7A and 8, respectively, of the Albany International Corp. Annual Report on Form 10-K for the year ended December 31, 2017. Effective January 1, 2018, we adopted the provisions of ASC 606, Revenue from contracts with customers |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue Recognition [Abstract] | |
Schedule of Consolidated Balance Sheet | The table below presents the cumulative effect of changes made to our December 31, 2017 Consolidated Balance Sheet as the result of adoption of ASC 606: ALBANY INTERNATIONAL CORP. CONSOLIDATED BALANCE SHEET (in thousands, except share data) (unaudited) As previously reported at December 31, 2017 Adjustments Opening balance, as ASSETS Cash and cash equivalents $183,727 $- $183,727 Accounts receivable, net 202,675 7,667 210,342 Contract assets - 47,415 47,415 Inventories 136,519 (47,054 ) 89,465 Income taxes prepaid and receivable 6,266 - 6,266 Prepaid expenses and other current assets 14,520 - 14,520 Total current assets 543,707 8,028 551,735 Property, plant and equipment, net 454,302 - 454,302 Intangibles, net 55,441 - 55,441 Goodwill 166,796 - 166,796 Deferred income taxes 68,648 1,756 70,404 Noncurrent receivables 32,811 - 32,811 Other assets 39,493 1,119 40,612 Total assets $1,361,198 $10,903 $1,372,101 LIABILITIES AND SHAREHOLDERS' EQUITY Notes and loans payable $262 $- $262 Accounts payable 44,899 - 44,899 Accrued liabilities 105,914 16,808 122,722 Current maturities of long-term debt 1,799 - 1,799 Income taxes payable 8,643 - 8,643 Total current liabilities 161,517 16,808 178,325 Long-term debt 514,120 - 514,120 Other noncurrent liabilities 101,555 - 101,555 Deferred taxes and other liabilities 10,991 52 11,043 Total liabilities 788,183 16,860 805,043 SHAREHOLDERS' EQUITY Preferred stock, par value $5.00 per share; authorized 2,000,000 shares; none issued - - - Class A Common Stock, par value $.001 per share; authorized 100,000,000 shares; issued 37,395,753 in 2017 and 37,319,266 in 2016 37 - 37 Class B Common Stock, par value $.001 per share; authorized 25,000,000 shares; issued and outstanding 3,233,998 in 2017 and 2016 3 - 3 Additional paid in capital 428,423 - 428,423 Retained earnings 534,082 (5,630 ) 528,452 Accumulated items of other comprehensive income: Translation adjustments (87,318 ) - (87,318 ) Pension and postretirement liability adjustments (50,536 ) - (50,536 ) Derivative valuation adjustment 1,953 - 1,953 Treasury stock (Class A), at cost 8,431,335 shares in 2017 and 8,443,444 shares in 2016 (256,876 ) - (256,876 ) Total Company shareholders' equity 569,768 (5,630 ) 564,138 Noncontrolling interest 3,247 (327 ) 2,920 Total equity 573,015 (5,957 ) 567,058 Total liabilities and shareholders' equity $1,361,198 $10,903 $1,372,101 |
Schedule of Summary of Composition of Each Business Segment | The following table provides a summary of the composition of each business segment: Segment Reporting Unit Principal Product or Service Principal Locations Machine Clothing (MC) Machine Clothing Paper machine clothing: Permeable and impermeable belts used in the manufacture of paper, paperboard, tissue and towel, and pulp Engineered fabrics: Belts used in the manufacture of nonwovens, fiber cement and several other industrial applications World-wide Albany Engineered Composites (AEC) Albany Safran Composites (ASC) 3D-woven, injected composite components for aircraft engines Rochester, NH Commercy, France Queretaro, Mexico Airframe and engine Components (Other AEC) Composite airframe and engine components for military and commercial aircraft Salt Lake City, UT Boerne, TX Queretaro, Mexico |
Schedule of Disaggregate Revenue for Each Business Segment | The following table disaggregates revenue for each reporting unit by timing of revenue recognition: For the Six Months Ended June 30, 2018 (in thousands) Point in Time Revenue Recognition Over Time Revenue Recognition Total Machine Clothing $309,186 $1,600 $310,786 Albany Engineered Composites ASC - 87,806 87,806 Other AEC 11,744 75,870 87,614 Total Albany Engineered Composites 11,744 163,676 175,420 Total Revenue $320,930 $165,276 $486,206 |
Schedule of Disaggregate MC Segment Revenue by Significant Product or Service | The following table disaggregates MC segment revenue by significant product groupings (paper machine clothing (PMC) and engineered fabrics), and, for PMC, the geographical region to which the paper machine clothing was sold: For the Six Months Ended (in thousands) June 30, 2018 Americas PMC $152,686 Eurasia PMC 116,500 Engineered Fabrics 41,600 Total Machine Clothing Net sales $310,786 |
Schedule of Consolidated Statement of Income | The following tables show the balances as reported for the period ended June 30, 2018, and how the consolidated financial statements would have appeared if we had not adopted ASC 606. ALBANY INTERNATIONAL CORP. CONSOLIDATED STATEMENT OF INCOME (in thousands, except per share amounts) (unaudited) As reported for the Three Months Ended June 30, 2018 Adjustments to reverse effects of ASC 606 As adjusted for the Three Months Ended June 30, 2018 to exclude adoption of ASC 606 As reported for the Six Months Ended June 30, 2018 Adjustments to reverse effects of ASC 606 As adjusted for the Six Months Ended June 30, 2018 to exclude adoption of ASC 606 $256,225 $400 $256,625 Net sales $486,206 ($8,034) $478,172 164,047 2,304 166,351 Cost of goods sold 312,377 (4,222) 308,155 92,178 (1,904) 90,274 Gross profit 173,829 (3,812) 170,017 36,707 5 36,712 Selling, general, and administrative expenses 78,637 (55) 78,582 10,198 - 10,198 Technical and research expenses 20,515 - 20,515 2,589 - 2,589 Restructuring expenses, net 11,162 - 11,162 42,684 (1,909) 40,775 Operating income 63,515 (3,757) 59,758 4,621 - 4,621 Interest expense, net 8,909 - 8,909 726 - 726 Other expense, net 2,178 - 2,178 37,337 (1,909) 35,428 Income before income taxes 52,428 (3,757) 48,671 7,031 (507) 6,524 Income tax expense 11,640 (1,108) 10,532 30,306 (1,402) 28,904 Net income 40,788 (2,649) 38,139 (59) (27) (86) Net income/(loss) attributable to the noncontrolling interest 178 (84) 94 $30,365 ($1,375) $28,990 Net income attributable to the Company $40,610 ($2,565) $38,045 $0.94 ($0.04) $0.90 Earnings per share attributable to Company shareholders - Basic $1.26 ($0.08) $1.18 $0.94 ($0.04) $0.90 Earnings per share attributable to Company shareholders - Diluted $1.26 ($0.08) $1.18 |
Schedule of Consolidated Statement of Comprehensive Income (Loss) | ALBANY INTERNATIONAL CORP. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME/(LOSS) (in thousands) (unaudited) As reported for the Three Months Ended June 30, 2018 Adjustments to reverse effects of ASC 606 As adjusted for the Three Months Ended June 30, 2018 to exclude adoption of ASC 606 As reported for the Six Months Ended June 30, 2018 Adjustments to reverse effects of ASC 606 As adjusted for the Six Months Ended June 30, 2018 to exclude adoption of ASC 606 $30,306 ($1,402) $28,904 Net income $40,788 ($2,649) $38,139 Other comprehensive income/(loss), before tax: (30,851) 839 (30,012) Foreign currency translation adjustments (13,346) 531 (12,815) (518) - (518) Pension/postretirement curtailment (518) - (518) Amortization of pension liability adjustments: (1,113) - (1,113) Prior service credit (2,227) - (2,227) 1,291 - 1,291 Net actuarial loss 2,588 - 2,588 54 - 54 Payments and amortization related to interest rate swaps included in earnings 234 - 234 2,211 - 2,211 Derivative valuation adjustment 7,926 - 7,926 Income taxes related to items of other comprehensive income/(loss): 155 - 155 Pension/postretirement curtailment 155 - 155 (53) - (53) Amortization of pension liability adjustment (108) - (108) (13) - (13) Payments related to interest rate swaps included in earnings (56) - (56) (530) - (530) Derivative valuation adjustment (1,902) - (1,902) 939 (563) 376 Comprehensive income 33,534 (2,118) 31,416 (48) (27) (75) Comprehensive income attributable to the noncontrolling interest 182 (84) 98 $987 ($536) $451 Comprehensive income attributable to the Company $33,352 ($2,034) $31,318 |
Schedule of Consolidated Balance Sheets | ALBANY INTERNATIONAL CORP. CONSOLIDATED BALANCE SHEET (in thousands, except share data) (unaudited) As reported June 30, 2018 Adjustments to reverse effects of ASC 606 As adjusted for June 30, 2018 to exclude adoption of ASC 606 ASSETS Cash and cash equivalents $154,744 $- $154,744 Accounts receivable, net 249,482 (4,286 ) 245,196 Contract assets 59,244 (59,244 ) - Inventories 97,659 51,736 149,395 Income taxes prepaid and receivable 6,087 - 6,087 Prepaid expenses and other current assets 19,559 - 19,559 Total current assets 586,775 (11,794 ) 574,981 Property, plant and equipment, net 450,694 - 450,694 Intangibles, net 52,322 - 52,322 Goodwill 165,474 - 165,474 Deferred income taxes 81,237 (648 ) 80,589 Noncurrent receivables 36,981 - 36,981 Other assets 48,978 (1,256 ) 47,722 Total assets $1,422,461 ($13,698 ) $1,408,763 LIABILITIES AND SHAREHOLDERS' EQUITY Notes and loans payable $26 $- $26 Accounts payable 54,752 - 54,752 Accrued liabilities 125,255 (17,485 ) 107,770 Current maturities of long-term debt 1,844 - 1,844 Income taxes payable 14,620 - 14,620 Total current liabilities 196,497 (17,485 ) 179,012 Long-term debt 523,186 - 523,186 Other noncurrent liabilities 97,563 - 97,563 Deferred taxes and other liabilities 13,556 (52 ) 13,504 Total liabilities 830,802 (17,537 ) 813,265 SHAREHOLDERS' EQUITY Preferred stock, par value $5.00 per share; authorized 2,000,000 shares; none issued - - - Class A Common Stock, par value $.001 per share; authorized 100,000,000 shares; issued 37,447,819 in 2018 and 37,395,753 in 2017 37 - 37 Class B Common Stock, par value $.001 per share; authorized 25,000,000 shares; issued and outstanding 3,233,998 in 2018 and 2017 3 - 3 Additional paid in capital 429,635 - 429,635 Retained earnings 558,639 $3,065 561,704 Accumulated items of other comprehensive income: Translation adjustments (102,888 ) 531 (102,357 ) Pension and postretirement liability adjustments (48,422 ) - (48,422 ) Derivative valuation adjustment 8,155 - 8,155 Treasury stock (Class A), at cost 8,418,620 shares in 2018 and 8,431,335 shares in 2017 (256,602 ) - (256,602 ) Total Company shareholders' equity 588,557 3,596 592,153 Noncontrolling interest 3,102 243 3,345 Total equity 591,659 3,839 595,498 Total liabilities and shareholders' equity $1,422,461 ($13,698 ) $1,408,763 |
Schedule of Consolidated Statement of Cash Flows | ALBANY INTERNATIONAL CORP. CONSOLIDATED STATEMENT OF CASH FLOW (in thousands) (unaudited) As reported for the Three Months Ended June 30, 2018 Adjustments to reverse effects of ASC 606 As adjusted for the Three Months Ended June 30, 2018 to exclude adoption of ASC 606 As reported for the Six Months Ended June 30, 2018 Adjustments to reverse effects of ASC 606 As adjusted for the Six Months Ended June 30, 2018 to exclude adoption of ASC 606 OPERATING ACTIVITIES $30,306 ($1,402) $28,904 Net income $40,788 ($2,649) $38,139 Adjustments to reconcile net income to net cash provided by operating activities: 17,114 - 17,114 Depreciation 35,416 - 35,416 2,559 - 2,559 Amortization 5,205 - 5,205 (854) - (854) Change in other noncurrent liabilities (1,231) - (1,231) (6,118) (507) (6,625) Change in deferred taxes and other liabilities (6,902) (1,108) (8,010) 853 - 853 Provision for write-off of property, plant and equipment 1,124 - 1,124 154 - 154 Non-cash interest expense 154 - 154 1,047 - 1,047 Compensation and benefits paid or payable in Class A Common Stock 1,336 - 1,336 34 - 34 Fair valule adjustment on foreign currency option 71 - 71 Changes in operating assets and liabilities that (used)/provided cash: (12,903) (14,277) (27,180) Accounts receivable (44,370) (3,727) (48,097) (13,877) 13,877 - Contract assets (11,761) 11,761 - (1,371) 2,304 933 Inventories (10,615) (4,222) (14,837) (1,157) - (1,157) Prepaid expenses and other current assets (5,220) - (5,220) (5) - (5) Income taxes prepaid and receivable 97 - 97 11,420 - 11,420 Accounts payable 8,882 - 8,882 5,853 5 5,858 Accrued liabilities 4,668 (55) 4,613 10,020 - 10,020 Income taxes payable 6,589 - 6,589 (1,643) - (1,643) Noncurrent receivables (4,170) - (4,170) (5,745) - (5,745) Other, net (3,321) - (3,321) 35,687 - 35,687 Net cash provided by operating activities 16,740 - 16,740 (23,375) - (23,375) Net cash used in investing activities (39,175) - (39,175) (1,112) - (1,112) Net cash used in financing activities (3,570) - (3,570) (7,882) - (7,882) Effect of exchange rate changes on cash and cash equivalents (2,978) - (2,978) 3,318 - 3,318 (Decrease)/increase in cash and cash equivalents (28,983) - (28,983) 151,426 - 151,426 Cash and cash equivalents at beginning of period 183,727 - 183,727 $154,744 $ - $154,744 Cash and cash equivalents at end of period $154,744 $ - $154,744 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Financial Data by Reporting Segment | The following tables show data by reportable segment, reconciled to consolidated totals, and the impact that ASC 606 had on the three and six month periods ended June 30, 2018: Three months ended June 30, Three months ended (in thousands) 2018 2017 Increase/(decrease) Net sales Machine Clothing $162,635 $146,572 $857 Albany Engineered Composites 93,590 68,999 (1,257) Consolidated total $256,225 $215,571 ($400) Operating income/(loss) Machine Clothing $50,843 $38,425 $1,786 Albany Engineered Composites 4,092 (17,828) 123 Corporate expenses (12,251) (10,742) Operating income $42,684 $9,855 $1,909 Reconciling items: Interest income (438) (340) - Interest expense 5,059 4,625 - Other expense, net 726 2,558 - Income before income taxes $37,337 $3,012 $1,909 Six months ended June 30, Six months ended (in thousands) 2018 2017 Increase/(decrease) Net sales Machine Clothing $310,786 $289,399 $5,068 Albany Engineered Composites 175,420 125,449 2,966 Consolidated total $486,206 $414,848 $8,034 Operating income/(loss) Machine Clothing $81,613 $76,688 $2,765 Albany Engineered Composites 6,366 (22,942) 992 Corporate expenses (24,464) (21,213) - Operating income $63,515 $32,533 $3,757 Reconciling items: Interest income (820) (447) - Interest expense 9,729 9,060 - Other expense, net 2,178 3,384 - Income before income taxes $52,428 $20,536 $3,757 |
Schedule of Restructuring Costs by Reporting Segment | The table below presents restructuring costs by reportable segment (also see Note 5): Three months ended June 30, Six months ended (in thousands) 2018 2017 2018 2017 Machine Clothing $1,800 $805 $10,152 $916 Albany Engineered Composites 558 1,231 779 3,801 Corporate expenses 231 - 231 - Total $2,589 $2,036 $11,162 $4,717 |
Pensions and Other Postretire29
Pensions and Other Postretirement Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Benefit Plan Cost | The composition of the net periodic benefit plan cost for the six months ended June 30, 2018 and 2017, was as follows: Pension plans Other postretirement benefits (in thousands) 2018 2017 2018 2017 Components of net periodic benefit cost: Service cost $1,391 $1,307 $116 $122 Interest cost 3,621 3,671 1,013 1,107 Expected return on assets (4,470) (4,003) - Curtailment gain (518) - - - Amortization of prior service cost/(credit) 17 18 (2,244) (2,244) Amortization of net actuarial loss 1,110 1,295 1,478 1,405 Net periodic benefit cost $1,151 $2,288 $363 $390 |
Schedule of Amounts Reclassified by Segment and Financial Statement | Effect by segment operating expenses: (in thousands) Increase/(decrease) in expense for the six months ended June 30, 2017 Machine Clothing ($9) Albany Engineered Composites - Corporate expenses (1,240) Total operating expenses ($1,249) Other expense, net $1,249 Effect by Statement of Income line item: (in thousands) Increase/(decrease) in expense for the six months ended June 30, 2017 Cost of goods sold ($247) Selling, general and administrative expenses (1,002) Total operating expenses ($1,249) Other expense, net $1,249 |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Charges | The following table summarizes charges reported in the Consolidated Statements of Income under “Restructuring expenses, net”: Three months ended June 30, Six months ended (in thousands) 2018 2017 2018 2017 Machine Clothing $1,800 $805 $10,152 $916 Albany Engineered Composites 558 1,231 779 3,801 Corporate expenses 231 - 231 - Total $2,589 $2,036 $11,162 $4,717 Six months ended June 30, 2018 Total restructuring costs incurred Termination and other costs Impairment of assets (in thousands) Machine Clothing $10,152 $10,152 $- Albany Engineered Composites 779 779 - Corporate expenses 231 231 - Total $11,162 $11,162 $- Six months ended June 30, 2017 Total restructuring costs incurred Termination Impairment (in thousands) Machine Clothing $916 $916 $- Albany Engineered Composites 3,801 3,356 445 Corporate expenses - - - Total $4,717 $4,272 $445 |
Schedule of Restructuring Liability | The table below presents the year-to-date changes in restructuring liabilities for 2018 and 2017, all of which related to termination costs: December 31, Restructuring Currency June 30, (in thousands) 2017 charges accrued Payments translation 2018 Total termination and other costs $3,326 $11,162 ($5,323) ($378) $8,787 December 31, Restructuring Currency June 30, (in thousands) 2016 charges accrued Payments translation 2017 Total termination and other costs $5,559 $4,272 ($4,513) $65 $5,383 |
Other expense, net (Tables)
Other expense, net (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Schedule Other Expense/(Income), net | The components of Other expense, net are: Three months ended Six months ended (in thousands) 2018 2017 2018 2017 Currency transaction (gains)/losses ($9) $1,948 $681 $2,049 Bank fees 96 111 204 259 Components of net periodic pension and postretirement cost other than service 259 627 525 1,249 Other 380 (128) 768 (173) Total $726 $2,558 $2,178 $3,384 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense | The following table presents components of income tax expense for the three and six months ended June 30, 2018 and 2017: Three months ended Six months ended (in thousands) 2018 2017 2018 2017 Income tax based on income from continuing operations, at estimated tax rates of 30.1% and 32.8%, respectively $11,239 $989 $15,779 $6,744 Provision for change in estimated tax rate (359) 36 - - Income tax before discrete items 10,880 1,025 15,779 6,744 Discrete tax expense: Exercise of US Stock Options (3) - (126) (55) Impact of mandatory repatriation (1,099) - (1,099) - Adjustments to prior period tax liabilities (206) 189 (252) 189 Provision for/resolution of tax audits and contingencies, net 2,443 599 2,448 1,451 Changes in valuation allowance (4,986) - (4,986) - Other 2 (34) (124) - Total income tax expense $7,031 $1,779 $11,640 $8,329 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule Computing Earnings Per Share | The amounts used in computing earnings per share and the weighted average number of shares of potentially dilutive securities are as follows: Three months ended Six months ended (in thousands, except market price and earnings per share) 2018 2017 2018 2017 Net income attributable to the Company $30,365 $1,117 $40,610 $11,956 Weighted average number of shares: Weighted average number of shares used in calculating basic net income per share 32,257 32,166 32,239 32,147 Effect of dilutive stock-based compensation plans: Stock options 16 34 16 35 Weighted average number of shares used in calculating diluted net income per share 32,273 32,200 32,255 32,182 Average market price of common stock used for calculation of dilutive shares $61.86 $48.44 $62.83 $47.47 Net income per share: Basic $0.94 $0.03 $1.26 $0.37 Diluted $0.94 $0.03 $1.26 $0.37 |
Noncontrolling Interest (Tables
Noncontrolling Interest (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Noncontrolling Interest [Abstract] | |
Schedule of Income Attributable to Noncontrolling Interest and Noncontrolling Equity | The table below presents a reconciliation of income attributable to the noncontrolling interest and noncontrolling equity in the Company’s subsidiary Albany Safran Composites, LLC, and the impact that the ASC 606 revenue standard had on Company results for the first six months of 2018, included in the consolidated financial statements: Six months ended (in thousands) 2018 2017 Net income of Albany Safran Composites (ASC) $2,419 $3,029 Less: Return attributable to the Company's preferred holding 635 515 Net income of ASC available for common ownership $1,784 $2,514 Ownership percentage of noncontrolling shareholder 10% 10% Net income attributable to noncontrolling interest $178 $251 Noncontrolling interest, beginning of year $3,247 $3,767 Decrease attributable to application of ASC 606 (327) - Net income attributable to noncontrolling interest 178 251 Changes in other comprehensive income attributable to noncontrolling interest 4 13 Noncontrolling interest $3,102 $4,031 |
Accumulated Other Comprehensi35
Accumulated Other Comprehensive Income (AOCI) (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accumulated items of other comprehensive income: | |
Schedule of Accumulated Other Comprehensive Income | The table below presents changes in the components of AOCI for the period December 31, 2017 to June 30, 2018: (in thousands) Translation adjustments Pension and postretirement liability adjustments Derivative valuation adjustment Total Other Comprehensive Income December 31, 2017 ($87,318) ($50,536) $1,953 ($135,901) Other comprehensive income/(loss) before reclassifications (15,570) 2,224 6,024 (7,322) Pension/postretirement curtailment gain, net of tax (363) (363) Interest expense related to swaps reclassified to the Consolidated Statements of Income, net of tax 178 178 Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income, net of tax 253 253 Net current period other comprehensive income (15,570) 2,114 6,202 (7,254) June 30, 2018 ($102,888) ($48,422) $8,155 ($143,155) The table below presents changes in the components of AOCI for the period December 31, 2016 to June 30, 2017: (in thousands) Translation adjustments Pension and postretirement liability adjustments Derivative valuation adjustment Total Other Comprehensive Income December 31, 2016 ($133,298) ($51,719) $828 ($184,189) Other comprehensive income/(loss) before reclassifications 28,453 (1,079) (619) 26,755 Interest expense related to swaps reclassified to the Consolidated Statements of Income, net of tax 585 585 Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income, net of tax 332 332 Net current period other comprehensive income 28,453 (747) (34) 27,672 June 30, 2017 ($104,845) ($52,466) $794 ($156,517) |
Schedule of Accumulated Other Comprehensive Income Components Reclassified to Statement of Income | The table below presents the expense/(income) amounts reclassified, and the line items of the Consolidated Statements of Income that were affected for the periods ended June 30, 2018 and 2017. Three months ended June 30, Six months ended (in thousands) 2018 2017 2018 2017 Pretax Derivative valuation reclassified from Accumulated Other Comprehensive Income: Expense related to interest rate swaps included in Income $54 $343 $234 $943 Income tax effect (13) (130) (56) (358) Effect on net income due to items reclassified from Accumulated Other Comprehensive Income $41 $213 $178 $585 Pretax pension and postretirement liabilities reclassified from Accumulated Other Comprehensive Income: Pension/postretirement curtailment ($518) $- ($518) $- Amortization of prior service credit (b) (1,113) (1,113) (2,227) (2,226) Amortization of net actuarial loss (b) 1,291 1,353 2,588 2,700 Total pretax amount reclassified (340) 240 (157) 474 Income tax effect 102 (72) 47 (142) Effect on net income due to items reclassified from Accumulated Other Comprehensive Income ($238) $168 ($110) $332 (a) Included in Interest expense are payments related to the interest rate swap agreements and amortization of swap buyouts (see Note 16). (b) These accumulated other comprehensive income components are included in Other expense, net (see Note 4). The curtailment adjustment was included in restructuring expenses, net. |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | As of June 30, 2018 and December 31, 2017, Accounts receivable consisted of the following: (in thousands) June 30, December 31, Trade and other accounts receivable $238,763 $152,375 Bank promissory notes 18,070 20,255 Revenue in excess of progress billings - 37,964 Allowance for doubtful accounts (7,351) (7,919) Total accounts receivable $249,482 $202,675 |
Schedule of Contract Receivables | As of June 30, 2018 and December 31, 2017, Noncurrent receivables consisted of the following: (in thousands) June 30, December 31, Noncurrent receivables $36,981 $32,811 |
Contract Assets and Liabiliti37
Contract Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Contract Assets And Liabilities | |
Schedule of Contract Assets and Contract Liabilities | Contract assets and contract liabilities were as follows: (in thousands) June 30, December 31, Contract assets $59,244 $ - Contract liabilities 4,220 - |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | As of June 30, 2018 and December 31, 2017, inventories consisted of the following: (in thousands) June 30, 2018 December 31, 2017 Raw materials $39,822 $42,215 Work in process 44,526 65,448 Finished goods 13,311 28,856 Total inventories $97,659 $136,519 |
Goodwill and Other Intangible39
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Intangible Assets and Goodwill | The gross carrying value, accumulated amortization and net values of intangible assets and goodwill as of June 30, 2018 and December 31, 2017, were as follows: As of June 30, 2018 Weighted average amortization life in years Gross carrying amount Accumulated amortization Net carrying amount Amortized intangible assets: AEC trade names 15 $140 ($127) $13 AEC technology 15 370 (302) 68 Customer relationships 15 48,421 (7,269) 41,152 Customer contracts 6 17,471 (6,559) 10,912 Other intangibles 5 322 (145) 177 Net amortized intangible assets $66,724 ($14,402) $52,322 Unamortized intangible assets: MC Goodwill $69,744 $- $69,744 AEC Goodwill 95,730 - 95,730 Total unamortized intangible assets: $165,474 $- $165,474 As of December 31, 2017 Weighted average amortization life in years Gross carrying amount Accumulated amortization Net carrying amount Amortized intangible assets: AEC trade names 15 $140 ($125) $15 AEC technology 15 370 (290) 80 Customer relationships 15 48,421 (5,654) 42,767 Customer contracts 6 17,471 (5,102) 12,369 Other intangibles 5 322 (112) 210 Net amortized intangible assets $66,724 ($11,283) $55,441 Unamortized intangible assets: MC Goodwill $71,066 $- $71,066 AEC Goodwill 95,730 - 95,730 Total unamortized intangible assets: $166,796 $- $166,796 The changes in intangible assets, net and goodwill from December 31, 2017 to June 30, 2018, were as follows: (in thousands) December Amortization Currency Translation June 30, 2018 Amortized intangible assets: AEC trade names $15 $(2) $- $13 AEC technology 80 (12) - 68 Customer relationships 42,767 (1,615) - 41,152 Customer contracts 12,369 (1,457) - 10,912 Other intangibles 210 (33) - 177 Net amortized intangible assets $55,441 ($3,119) $- $52,322 Unamortized intangible assets: MC Goodwill $71,066 $- $(1,322) $69,744 AEC Goodwill 95,730 - - 95,730 Total unamortized intangible assets: $166,796 $- $(1,322) $165,474 |
Schedule of Estimated Amortization Expense | Estimated amortization expense of intangibles for the years ending December 31, 2018 through 2022, is as follows: Annual amortization Year (in thousands) 2018 $6,234 2019 6,234 2020 6,234 2021 6,163 2022 3,949 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Long-term Debt and Capital Lease Obligations [Abstract] | |
Schedule of Long-Term Debt | Long-term debt, principally to banks and bondholders, consists of: (in thousands, except interest rates) June 30, 2018 December 31, 2017 Revolving credit agreement with borrowings outstanding at an end of period interest rate of 3.58% in 2018 and 3.40% in 2017 (including the effect of interest rate hedging transactions, as described below), due in 2022 $511,000 $501,000 Obligation under capital lease, matures 2022 14,030 14,919 Long-term debt 525,030 515,919 Less: current portion (1,844) (1,799) Long-term debt, net of current portion $523,186 $514,120 |
Schedule of Future Minimum Annual Capital Lease Obilgations | The following schedule presents future minimum annual lease payments under the capital lease obligation and the present value of the minimum lease payments, as of June 30, 2018. Years ending December 31, (in thousands) 2018 $1,236 2019 2,473 2020 2,520 2021 2,520 2022 7,373 Total minimum lease payments 16,122 Less: Amount representing interest (2,092) Present value of minimum lease payments $14,030 |
Fair-Value Measurements (Tables
Fair-Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Financial Assets and Liabilities | The following table presents the fair-value hierarchy for our Level 1 and Level 2 financial and non-financial assets and liabilities, which are measured at fair value on a recurring basis: June 30, 2018 December 31, 2017 Quoted prices in active markets Significant other observable inputs Quoted prices in active markets Significant other observable inputs (in thousands) (Level 1) (Level 2) (Level 1) (Level 2) Fair Value Assets: Cash equivalents $18,728 $- $13,601 $- Prepaid expenses and other current assets: Foreign currency options 41 - - - Other Assets: Common stock of unaffiliated foreign public company (a) 962 999 - Interest rate swaps - 8,985 (b) - 313 (c) (a) Original cost basis $0.5 million (b) Net of $39.8 million receivable floating leg and $30.8 million liability fixed leg (c) Net of $34.9 million receivable floating leg and $34.6 million liability fixed leg |
Schedule of (Losses)/Gains on Changes in Fair Value of Derivative Instruments | Gains/(losses) related to changes in fair value of derivative instruments that were recognized in Other expense, net in the Consolidated Statements of Income were as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2018 2017 2018 2017 Derivatives not designated as hedging instruments Foreign currency options losses ($34) ($75) ($71) ($129) |
Contingencies (Tables)
Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Changes in Claims | The following table sets forth the number of claims filed, the number of claims settled, dismissed or otherwise resolved, and the aggregate settlement amount during the periods presented: Year ended December 31, Opening Number of Claims Claims Dismissed,Settled, or Resolved New Claims Closing Number of Claims Amounts Paid (thousands) to Settle or Resolve 2013 4,463 230 66 4,299 $78 2014 4,299 625 147 3,821 437 2015 3,821 116 86 3,791 164 2016 3,791 148 102 3,745 758 2017 3,745 105 90 3,730 55 2018 (as of June 30) 3,730 105 52 3,677 $93 |
Changes in Shareholders' Equi43
Changes in Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Activity in Shareholders' Equity | The following table summarizes changes in Shareholders’ Equity: (in thousands) Common Stock Class Additional paid in capital Retained earnings Accumulated items of other comprehensive income/(loss) Treasury stock Noncontrolling Interest Total Equity December 31, 2017 $40 $428,423 $534,082 ($135,901 ) ($256,876 ) $3,247 $573,015 Adoption of accounting standards (a),(b) - - (5,085 ) - - (327 ) (5,412 ) Net income - - 40,610 - - 178 40,788 Compensation and benefits paid or payable in shares - 1,062 - - 274 - 1,336 Options exercised - 150 - - - 150 Dividends declared - - (10,968 ) - - - (10,968 ) Cumulative translation adjustments - - - (15,570 ) - 4 (15,566 ) Pension and postretirement liability adjustments - - - 2,114 - - 2,114 Derivative valuation adjustment - - - 6,202 - - 6,202 June 30, 2018 $40 $429,635 $558,639 ($143,155 ) ($256,602 ) $3,102 $591,659 (a) As described in Note 2, the Company adopted ASC 606 effective January 1, 2018, which resulted in a decrease to Retained earnings of $5.6 million and a $0.3 million decrease to Noncontrolling interest. (b) As described in Note 7, the Company adopted ASU 2016-16 effective January 1, 2018, which resulted in a $0.5 increase to Retained earnings. |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Revenue Recognition [Abstract] | |
Performance obligations | $ 105,000 |
Revenue recognized | $ 35,000 |
Revenue Recognition (Schedule o
Revenue Recognition (Schedule of Consolidated Balance Sheet) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||||||
Cash and cash equivalents | $ 154,744 | $ 151,426 | $ 183,727 | $ 138,792 | $ 143,333 | $ 181,742 |
Accounts receivable, net | 249,482 | 202,675 | ||||
Contract assets | 59,244 | |||||
Inventories | 97,659 | 136,519 | ||||
Income taxes prepaid and receivable | 6,087 | 6,266 | ||||
Prepaid expenses and other current assets | 19,559 | 14,520 | ||||
Total current assets | 586,775 | 543,707 | ||||
Property, plant and equipment, net | 450,694 | 454,302 | ||||
Intangibles, net | 52,322 | 55,441 | ||||
Goodwill | 165,474 | 166,796 | ||||
Deferred income taxes | 81,237 | 68,648 | ||||
Noncurrent receivables | 36,981 | 32,811 | ||||
Other assets | 48,978 | 39,493 | ||||
Total assets | 1,422,461 | 1,361,198 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Notes and loans payable | 26 | 262 | ||||
Accounts payable | 54,752 | 44,899 | ||||
Accrued liabilities | 125,255 | 105,914 | ||||
Current maturities of long-term debt | 1,844 | 1,799 | ||||
Income taxes payable | 14,620 | 8,643 | ||||
Total current liabilities | 196,497 | 161,517 | ||||
Long-term debt | 523,186 | 514,120 | ||||
Other noncurrent liabilities | 97,563 | 101,555 | ||||
Deferred taxes and other liabilities | 13,556 | 10,991 | ||||
Total liabilities | 830,802 | 788,183 | ||||
SHAREHOLDERS' EQUITY | ||||||
Preferred stock, par value $5.00 per share; authorized 2,000,000 shares; none issued | ||||||
Additional paid in capital | 429,635 | 428,423 | ||||
Retained earnings | 558,639 | 534,082 | ||||
Accumulated items of other comprehensive income: | ||||||
Translation adjustments | (102,888) | (87,318) | ||||
Pension and postretirement liability adjustments | (48,422) | (50,536) | ||||
Derivative valuation adjustment | 8,155 | 1,953 | ||||
Treasury stock (Class A), at cost 8,431,335 shares in 2017 and 8,443,444 shares in 2016 | (256,602) | (256,876) | ||||
Total Company shareholders' equity | 588,557 | 569,768 | ||||
Noncontrolling interest | 3,102 | 3,247 | ||||
Total equity | 591,659 | 573,015 | ||||
Total liabilities and shareholders' equity | 1,422,461 | 1,361,198 | ||||
Common Class A [Member] | ||||||
SHAREHOLDERS' EQUITY | ||||||
Common Stock | 37 | 37 | ||||
Common Class B [Member] | ||||||
SHAREHOLDERS' EQUITY | ||||||
Common Stock | $ 3 | 3 | ||||
As previously reported [Member] | ||||||
ASSETS | ||||||
Cash and cash equivalents | 183,727 | |||||
Accounts receivable, net | 202,675 | |||||
Contract assets | ||||||
Inventories | 136,519 | |||||
Income taxes prepaid and receivable | 6,266 | |||||
Prepaid expenses and other current assets | 14,520 | |||||
Total current assets | 543,707 | |||||
Property, plant and equipment, net | 454,302 | |||||
Intangibles, net | 55,441 | |||||
Goodwill | 166,796 | |||||
Deferred income taxes | 68,648 | |||||
Noncurrent receivables | 32,811 | |||||
Other assets | 39,493 | |||||
Total assets | 1,361,198 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Notes and loans payable | 262 | |||||
Accounts payable | 44,899 | |||||
Accrued liabilities | 105,914 | |||||
Current maturities of long-term debt | 1,799 | |||||
Income taxes payable | 8,643 | |||||
Total current liabilities | 161,517 | |||||
Long-term debt | 514,120 | |||||
Other noncurrent liabilities | 101,555 | |||||
Deferred taxes and other liabilities | 10,991 | |||||
Total liabilities | 788,183 | |||||
SHAREHOLDERS' EQUITY | ||||||
Preferred stock, par value $5.00 per share; authorized 2,000,000 shares; none issued | ||||||
Additional paid in capital | 428,423 | |||||
Retained earnings | 534,082 | |||||
Accumulated items of other comprehensive income: | ||||||
Translation adjustments | (87,318) | |||||
Pension and postretirement liability adjustments | (50,536) | |||||
Derivative valuation adjustment | 1,953 | |||||
Treasury stock (Class A), at cost 8,431,335 shares in 2017 and 8,443,444 shares in 2016 | (256,876) | |||||
Total Company shareholders' equity | 569,768 | |||||
Noncontrolling interest | 3,247 | |||||
Total equity | 573,015 | |||||
Total liabilities and shareholders' equity | 1,361,198 | |||||
As previously reported [Member] | Common Class A [Member] | ||||||
SHAREHOLDERS' EQUITY | ||||||
Common Stock | 37 | |||||
As previously reported [Member] | Common Class B [Member] | ||||||
SHAREHOLDERS' EQUITY | ||||||
Common Stock | 3 | |||||
Adjustments Increase/(decrease) [Member] | ||||||
ASSETS | ||||||
Cash and cash equivalents | ||||||
Accounts receivable, net | 7,667 | |||||
Contract assets | 47,415 | |||||
Inventories | (47,054) | |||||
Income taxes prepaid and receivable | ||||||
Prepaid expenses and other current assets | ||||||
Total current assets | 8,028 | |||||
Property, plant and equipment, net | ||||||
Intangibles, net | ||||||
Goodwill | ||||||
Deferred income taxes | 1,756 | |||||
Noncurrent receivables | ||||||
Other assets | 1,119 | |||||
Total assets | 10,903 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Notes and loans payable | ||||||
Accounts payable | ||||||
Accrued liabilities | 16,808 | |||||
Current maturities of long-term debt | ||||||
Income taxes payable | ||||||
Total current liabilities | 16,808 | |||||
Long-term debt | ||||||
Other noncurrent liabilities | ||||||
Deferred taxes and other liabilities | 52 | |||||
Total liabilities | 16,860 | |||||
SHAREHOLDERS' EQUITY | ||||||
Preferred stock, par value $5.00 per share; authorized 2,000,000 shares; none issued | ||||||
Additional paid in capital | ||||||
Retained earnings | (5,630) | |||||
Accumulated items of other comprehensive income: | ||||||
Translation adjustments | ||||||
Pension and postretirement liability adjustments | ||||||
Derivative valuation adjustment | ||||||
Treasury stock (Class A), at cost 8,431,335 shares in 2017 and 8,443,444 shares in 2016 | ||||||
Total Company shareholders' equity | (5,630) | |||||
Noncontrolling interest | (327) | |||||
Total equity | (5,957) | |||||
Total liabilities and shareholders' equity | 10,903 | |||||
Adjustments Increase/(decrease) [Member] | Common Class A [Member] | ||||||
SHAREHOLDERS' EQUITY | ||||||
Common Stock | ||||||
Adjustments Increase/(decrease) [Member] | Common Class B [Member] | ||||||
SHAREHOLDERS' EQUITY | ||||||
Common Stock | ||||||
Opening balance, as adjusted, January 1, 2018 [Member] | ||||||
ASSETS | ||||||
Cash and cash equivalents | 183,727 | |||||
Accounts receivable, net | 210,342 | |||||
Contract assets | 47,415 | |||||
Inventories | 89,465 | |||||
Income taxes prepaid and receivable | 6,266 | |||||
Prepaid expenses and other current assets | 14,520 | |||||
Total current assets | 551,735 | |||||
Property, plant and equipment, net | 454,302 | |||||
Intangibles, net | 55,441 | |||||
Goodwill | 166,796 | |||||
Deferred income taxes | 70,404 | |||||
Noncurrent receivables | 32,811 | |||||
Other assets | 40,612 | |||||
Total assets | 1,372,101 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Notes and loans payable | 262 | |||||
Accounts payable | 44,899 | |||||
Accrued liabilities | 122,722 | |||||
Current maturities of long-term debt | 1,799 | |||||
Income taxes payable | 8,643 | |||||
Total current liabilities | 178,325 | |||||
Long-term debt | 514,120 | |||||
Other noncurrent liabilities | 101,555 | |||||
Deferred taxes and other liabilities | 11,043 | |||||
Total liabilities | 805,043 | |||||
SHAREHOLDERS' EQUITY | ||||||
Preferred stock, par value $5.00 per share; authorized 2,000,000 shares; none issued | ||||||
Additional paid in capital | 428,423 | |||||
Retained earnings | 528,452 | |||||
Accumulated items of other comprehensive income: | ||||||
Translation adjustments | (87,318) | |||||
Pension and postretirement liability adjustments | (50,536) | |||||
Derivative valuation adjustment | 1,953 | |||||
Treasury stock (Class A), at cost 8,431,335 shares in 2017 and 8,443,444 shares in 2016 | (256,876) | |||||
Total Company shareholders' equity | 564,138 | |||||
Noncontrolling interest | 2,920 | |||||
Total equity | 567,058 | |||||
Total liabilities and shareholders' equity | 1,372,101 | |||||
Opening balance, as adjusted, January 1, 2018 [Member] | Common Class A [Member] | ||||||
SHAREHOLDERS' EQUITY | ||||||
Common Stock | 37 | |||||
Opening balance, as adjusted, January 1, 2018 [Member] | Common Class B [Member] | ||||||
SHAREHOLDERS' EQUITY | ||||||
Common Stock | $ 3 |
Revenue Recognition (Schedule46
Revenue Recognition (Schedule of Consolidated Balance Sheet) (Details) (Parenthetical) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Preferred Stock, par value per share | $ 5 | $ 5 | |
Preferred Stock, shares authorized | 2,000,000 | 2,000,000 | |
Preferred Stock, shares issued | 0 | 0 | |
Common Class A [Member] | |||
Common Stock, par value per share | $ 0.001 | $ 0.001 | |
Common Stock, shares authorized | 100,000,000 | 100,000,000 | |
Common Stock, shares issued | 37,447,819 | 37,395,753 | |
Treasury stock, shares | 8,418,620 | 8,431,335 | |
Common Class B [Member] | |||
Common Stock, par value per share | $ 0.001 | $ 0.001 | |
Common Stock, shares authorized | 25,000,000 | 25,000,000 | |
Common Stock, shares issued | 3,233,998 | 3,233,998 | |
Common Stock, shares outstanding | 3,233,998 | 3,233,998 | |
As previously reported [Member] | |||
Preferred Stock, par value per share | $ 5 | ||
Preferred Stock, shares authorized | 2,000,000 | ||
Preferred Stock, shares issued | 0 | ||
As previously reported [Member] | Common Class A [Member] | |||
Common Stock, par value per share | $ 0.001 | ||
Common Stock, shares authorized | 100,000,000 | ||
Common Stock, shares issued | 37,395,753 | 37,319,266 | |
Treasury stock, shares | 8,431,335 | 8,443,444 | |
As previously reported [Member] | Common Class B [Member] | |||
Common Stock, par value per share | $ 0.001 | ||
Common Stock, shares authorized | 25,000,000 | ||
Common Stock, shares issued | 3,233,998 | 3,233,998 | |
Common Stock, shares outstanding | 3,233,998 | 3,233,998 | |
Adjustments Increase/(decrease) [Member] | |||
Preferred Stock, par value per share | $ 5 | ||
Preferred Stock, shares authorized | 2,000,000 | ||
Preferred Stock, shares issued | 0 | ||
Adjustments Increase/(decrease) [Member] | Common Class A [Member] | |||
Common Stock, par value per share | $ 0.001 | ||
Common Stock, shares authorized | 100,000,000 | ||
Common Stock, shares issued | 37,395,753 | 37,319,266 | |
Adjustments Increase/(decrease) [Member] | Common Class B [Member] | |||
Common Stock, par value per share | $ 0.001 | ||
Common Stock, shares authorized | 25,000,000 | ||
Common Stock, shares issued | 3,233,998 | 3,233,998 | |
Common Stock, shares outstanding | 3,233,998 | 3,233,998 | |
Opening balance, as adjusted, January 1, 2018 [Member] | |||
Preferred Stock, par value per share | $ 5 | ||
Preferred Stock, shares authorized | 2,000,000 | ||
Preferred Stock, shares issued | 0 | ||
Opening balance, as adjusted, January 1, 2018 [Member] | Common Class A [Member] | |||
Common Stock, par value per share | $ 0.001 | ||
Common Stock, shares authorized | 100,000,000 | ||
Common Stock, shares issued | 37,395,753 | 37,319,266 | |
Opening balance, as adjusted, January 1, 2018 [Member] | Common Class B [Member] | |||
Common Stock, par value per share | $ 0.001 | ||
Common Stock, shares authorized | 25,000,000 | ||
Common Stock, shares issued | 3,233,998 | 3,233,998 | |
Common Stock, shares outstanding | 3,233,998 | 3,233,998 |
Revenue Recognition (Schedule47
Revenue Recognition (Schedule of Summary of Composition of Each Business Segment) (Details) | 6 Months Ended |
Jun. 30, 2018 | |
Machine Clothing [Member] | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |
Segment | Machine Clothing (MC) |
Reporting Unit | Machine Clothing |
Principal Product or Service | Paper machine clothing: Permeable and impermeable belts used in the manufacture of paper, paperboard, tissue and towel, and pulp Engineered fabrics: Belts used in the manufacture of nonwovens, fiber cement and several other industrial applications |
Principal Locations | World-wide |
Albany Engineered Composites [Member] | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |
Segment | Albany Engineered Composites (AEC) |
Reporting Unit | Albany Safran Composites (ASC) Airframe and engine Components (Other AEC) |
Principal Product or Service | 3D-woven, injected composite components for aircraft engines Composite airframe and engine components for military and commercial aircraft |
Principal Locations | Rochester, NH Commercy, France Queretaro, Mexico Salt Lake City, UT Boerne, TX Queretaro, Mexico |
Revenue Recognition (Schedule48
Revenue Recognition (Schedule of Disaggregate Revenue for Each Business Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 256,225 | $ 215,571 | $ 486,206 | $ 414,848 |
Machine Clothing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 162,635 | 146,572 | 310,786 | 289,399 |
Albany Engineered Composites ASC [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 87,806 | |||
Albany Engineered Composites Other AEC [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 87,614 | |||
Albany Engineered Composites [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 93,590 | $ 68,999 | 175,420 | $ 125,449 |
Point in Time Revenue Recognition [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 320,930 | |||
Point in Time Revenue Recognition [Member] | Machine Clothing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 309,186 | |||
Point in Time Revenue Recognition [Member] | Albany Engineered Composites ASC [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | ||||
Point in Time Revenue Recognition [Member] | Albany Engineered Composites Other AEC [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 11,744 | |||
Point in Time Revenue Recognition [Member] | Albany Engineered Composites [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 11,744 | |||
Over Time Revenue Recognition [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 165,276 | |||
Over Time Revenue Recognition [Member] | Machine Clothing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 1,600 | |||
Over Time Revenue Recognition [Member] | Albany Engineered Composites ASC [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 87,806 | |||
Over Time Revenue Recognition [Member] | Albany Engineered Composites Other AEC [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 75,870 | |||
Over Time Revenue Recognition [Member] | Albany Engineered Composites [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 163,676 |
Revenue Recognition (Schedule49
Revenue Recognition (Schedule of Disaggregate MC Segment Revenue by Significant Product or Service) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 256,225 | $ 215,571 | $ 486,206 | $ 414,848 |
Machine Clothing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 162,635 | $ 146,572 | 310,786 | $ 289,399 |
Americas PMC [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 152,686 | |||
Eurasia PMC [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 116,500 | |||
Engineered Fabrics [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 41,600 |
Revenue Recognition (Schedule50
Revenue Recognition (Schedule of Consolidated Statement of Income) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net sales | $ 256,225 | $ 215,571 | $ 486,206 | $ 414,848 |
Cost of goods sold | 164,047 | 152,393 | 312,377 | 275,642 |
Gross profit | 92,178 | 63,178 | 173,829 | 139,206 |
Selling, general, and administrative expenses | 36,707 | 41,314 | 78,637 | 81,721 |
Technical and research expenses | 10,198 | 9,973 | 20,515 | 20,235 |
Restructuring expenses, net | 2,589 | 2,036 | 11,162 | 4,717 |
Operating income | 42,684 | 9,855 | 63,515 | 32,533 |
Interest expense, net | 4,621 | 4,285 | 8,909 | 8,613 |
Other expense, net | 726 | 2,558 | 2,178 | 3,384 |
Income before income taxes | 37,337 | 3,012 | 52,428 | 20,536 |
Income tax expense | 7,031 | 1,779 | 11,640 | 8,329 |
Net income | 30,306 | 1,233 | 40,788 | 12,207 |
Net income/(loss) attributable to the noncontrolling interest | (59) | 116 | 178 | 251 |
Net income attributable to the Company | $ 30,365 | $ 1,117 | $ 40,610 | $ 11,956 |
Earnings per share attributable to Company shareholders - Basic | $ 0.94 | $ 0.03 | $ 1.26 | $ 0.37 |
Earnings per share attributable to Company shareholders - Diluted | $ 0.94 | $ 0.03 | $ 1.26 | $ 0.37 |
As reported [Member] | ||||
Net sales | $ 256,225 | $ 486,206 | ||
Cost of goods sold | 164,047 | 312,377 | ||
Gross profit | 92,178 | 173,829 | ||
Selling, general, and administrative expenses | 36,707 | 78,637 | ||
Technical and research expenses | 10,198 | 20,515 | ||
Restructuring expenses, net | 2,589 | 11,162 | ||
Operating income | 42,684 | 63,515 | ||
Interest expense, net | 4,621 | 8,909 | ||
Other expense, net | 726 | 2,178 | ||
Income before income taxes | 37,337 | 52,428 | ||
Income tax expense | 7,031 | 11,640 | ||
Net income | 30,306 | 40,788 | ||
Net income/(loss) attributable to the noncontrolling interest | (59) | 178 | ||
Net income attributable to the Company | $ 30,365 | $ 40,610 | ||
Earnings per share attributable to Company shareholders - Basic | $ 0.94 | $ 1.26 | ||
Earnings per share attributable to Company shareholders - Diluted | $ 0.94 | $ 1.26 | ||
Adjustments to reverse effects of ASC 606 [Member] | ||||
Net sales | $ 400 | $ (8,034) | ||
Cost of goods sold | 2,304 | (4,222) | ||
Gross profit | (1,904) | (3,812) | ||
Selling, general, and administrative expenses | 5 | (55) | ||
Technical and research expenses | ||||
Restructuring expenses, net | ||||
Operating income | (1,909) | (3,757) | ||
Interest expense, net | ||||
Other expense, net | ||||
Income before income taxes | (1,909) | (3,757) | ||
Income tax expense | (507) | (1,108) | ||
Net income | (1,402) | (2,649) | ||
Net income/(loss) attributable to the noncontrolling interest | (27) | (84) | ||
Net income attributable to the Company | $ (1,375) | $ (2,565) | ||
Earnings per share attributable to Company shareholders - Basic | $ (0.04) | $ (0.08) | ||
Earnings per share attributable to Company shareholders - Diluted | $ (0.04) | $ (0.08) | ||
As adjusted to exclude adoption of ASC 606 [Member] | ||||
Net sales | $ 256,625 | $ 478,172 | ||
Cost of goods sold | 166,351 | 308,155 | ||
Gross profit | 90,274 | 170,017 | ||
Selling, general, and administrative expenses | 36,712 | 78,582 | ||
Technical and research expenses | 10,198 | 20,515 | ||
Restructuring expenses, net | 2,589 | 11,162 | ||
Operating income | 40,775 | 59,758 | ||
Interest expense, net | 4,621 | 8,909 | ||
Other expense, net | 726 | 2,178 | ||
Income before income taxes | 35,428 | 48,671 | ||
Income tax expense | 6,524 | 10,532 | ||
Net income | 28,904 | 38,139 | ||
Net income/(loss) attributable to the noncontrolling interest | (86) | 94 | ||
Net income attributable to the Company | $ 28,990 | $ 38,045 | ||
Earnings per share attributable to Company shareholders - Basic | $ 0.90 | $ 1.18 | ||
Earnings per share attributable to Company shareholders - Diluted | $ 0.90 | $ 1.18 |
Revenue Recognition (Schedule51
Revenue Recognition (Schedule of Consolidated Statement of Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Net income | $ 30,306 | $ 1,233 | $ 40,788 | $ 12,207 | |
Other comprehensive income/(loss), before tax: | |||||
Foreign currency translation adjustments | (30,851) | 17,436 | (13,346) | 27,374 | |
Pension/postretirement curtailment | (518) | (518) | |||
Amortization of pension liability adjustments: | |||||
Prior service credit | [1] | (1,113) | (1,113) | (2,227) | (2,226) |
Net actuarial loss | [1] | (1,291) | (1,353) | (2,588) | (2,700) |
Payments and amortization related to interest rate swaps included in earnings | 54 | 343 | 234 | 943 | |
Derivative valuation adjustment | 2,211 | (1,414) | 7,926 | (998) | |
Income taxes related to items of other comprehensive income/(loss): | |||||
Pension/postretirement curtailment | 155 | 155 | |||
Amortization of pension liability adjustment | (53) | (72) | (108) | (142) | |
Payments related to interest rate swaps included in earnings | (13) | (130) | (56) | (358) | |
Derivative valuation adjustment | (530) | 537 | (1,902) | 379 | |
Comprehensive income | 939 | 18,173 | 33,534 | 39,879 | |
Comprehensive income attributable to the noncontrolling interest | (48) | 124 | 182 | 264 | |
Comprehensive income attributable to the Company | 987 | $ 18,049 | 33,352 | $ 39,615 | |
As reported [Member] | |||||
Net income | 30,306 | 40,788 | |||
Other comprehensive income/(loss), before tax: | |||||
Foreign currency translation adjustments | (30,851) | (13,346) | |||
Pension/postretirement curtailment | (518) | (518) | |||
Amortization of pension liability adjustments: | |||||
Prior service credit | (1,113) | (2,227) | |||
Net actuarial loss | 1,291 | 2,588 | |||
Payments and amortization related to interest rate swaps included in earnings | 54 | 234 | |||
Derivative valuation adjustment | 2,211 | 7,926 | |||
Income taxes related to items of other comprehensive income/(loss): | |||||
Pension/postretirement curtailment | 155 | 155 | |||
Amortization of pension liability adjustment | (53) | (108) | |||
Payments related to interest rate swaps included in earnings | (13) | (56) | |||
Derivative valuation adjustment | (530) | (1,902) | |||
Comprehensive income | 939 | 33,534 | |||
Comprehensive income attributable to the noncontrolling interest | (48) | 182 | |||
Comprehensive income attributable to the Company | 987 | 33,352 | |||
Adjustments to reverse effects of ASC 606 [Member] | |||||
Net income | (1,402) | (2,649) | |||
Other comprehensive income/(loss), before tax: | |||||
Foreign currency translation adjustments | 839 | 531 | |||
Pension/postretirement curtailment | |||||
Amortization of pension liability adjustments: | |||||
Prior service credit | |||||
Net actuarial loss | |||||
Payments and amortization related to interest rate swaps included in earnings | |||||
Derivative valuation adjustment | |||||
Income taxes related to items of other comprehensive income/(loss): | |||||
Pension/postretirement curtailment | |||||
Amortization of pension liability adjustment | |||||
Payments related to interest rate swaps included in earnings | |||||
Derivative valuation adjustment | |||||
Comprehensive income | (563) | (2,118) | |||
Comprehensive income attributable to the noncontrolling interest | (27) | (84) | |||
Comprehensive income attributable to the Company | (536) | (2,034) | |||
As adjusted to exclude adoption of ASC 606 [Member] | |||||
Net income | 28,904 | 38,139 | |||
Other comprehensive income/(loss), before tax: | |||||
Foreign currency translation adjustments | (30,012) | (12,815) | |||
Pension/postretirement curtailment | (518) | (518) | |||
Amortization of pension liability adjustments: | |||||
Prior service credit | (1,113) | (2,227) | |||
Net actuarial loss | 1,291 | 2,588 | |||
Payments and amortization related to interest rate swaps included in earnings | 54 | 234 | |||
Derivative valuation adjustment | 2,211 | 7,926 | |||
Income taxes related to items of other comprehensive income/(loss): | |||||
Pension/postretirement curtailment | 155 | 155 | |||
Amortization of pension liability adjustment | (53) | (108) | |||
Payments related to interest rate swaps included in earnings | (13) | (56) | |||
Derivative valuation adjustment | (530) | (1,902) | |||
Comprehensive income | 376 | 31,416 | |||
Comprehensive income attributable to the noncontrolling interest | (75) | 98 | |||
Comprehensive income attributable to the Company | $ 451 | $ 31,318 | |||
[1] | These accumulated other comprehensive income components are included in Other expense, net (see Note 4). The curtailment adjustment was included in restructuring expenses, net. |
Revenue Recognition (Schedule52
Revenue Recognition (Schedule of Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||||||
Cash and cash equivalents | $ 154,744 | $ 151,426 | $ 183,727 | $ 138,792 | $ 143,333 | $ 181,742 |
Accounts receivable, net | 249,482 | 202,675 | ||||
Contract assets | 59,244 | |||||
Inventories | 97,659 | 136,519 | ||||
Income taxes prepaid and receivable | 6,087 | 6,266 | ||||
Prepaid expenses and other current assets | 19,559 | 14,520 | ||||
Total current assets | 586,775 | 543,707 | ||||
Property, plant and equipment, net | 450,694 | 454,302 | ||||
Intangibles, net | 52,322 | 55,441 | ||||
Goodwill | 165,474 | 166,796 | ||||
Income taxes receivable and deferred | 81,237 | 68,648 | ||||
Noncurrent receivables | 36,981 | 32,811 | ||||
Other assets | 48,978 | 39,493 | ||||
Total assets | 1,422,461 | 1,361,198 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Notes and loans payable | 26 | 262 | ||||
Accounts payable | 54,752 | 44,899 | ||||
Accrued liabilities | 125,255 | 105,914 | ||||
Current maturities of long-term debt | 1,844 | 1,799 | ||||
Income taxes payable | 14,620 | 8,643 | ||||
Total current liabilities | 196,497 | 161,517 | ||||
Long-term debt | 523,186 | 514,120 | ||||
Other noncurrent liabilities | 97,563 | 101,555 | ||||
Deferred taxes and other liabilities | 13,556 | 10,991 | ||||
Total liabilities | 830,802 | 788,183 | ||||
SHAREHOLDERS' EQUITY | ||||||
Preferred stock, par value $5.00 per share; authorized 2,000,000 shares; none issued | ||||||
Additional paid in capital | 429,635 | 428,423 | ||||
Retained earnings | 558,639 | 534,082 | ||||
Accumulated items of other comprehensive income: | ||||||
Translation adjustments | (102,888) | (87,318) | ||||
Pension and postretirement liability adjustments | (48,422) | (50,536) | ||||
Derivative valuation adjustment | 8,155 | 1,953 | ||||
Treasury stock (Class A), at cost 8,418,620 shares in 2018 and 8,431,335 shares in 2017 | (256,602) | (256,876) | ||||
Total Company shareholders' equity | 588,557 | 569,768 | ||||
Noncontrolling interest | 3,102 | 3,247 | ||||
Total equity | 591,659 | 573,015 | ||||
Total liabilities and shareholders' equity | 1,422,461 | 1,361,198 | ||||
Common Class A [Member] | ||||||
SHAREHOLDERS' EQUITY | ||||||
Common Stock | 37 | 37 | ||||
Common Class B [Member] | ||||||
SHAREHOLDERS' EQUITY | ||||||
Common Stock | 3 | $ 3 | ||||
As reported [Member] | ||||||
ASSETS | ||||||
Cash and cash equivalents | 154,744 | |||||
Accounts receivable, net | 249,482 | |||||
Contract assets | 59,244 | |||||
Inventories | 97,659 | |||||
Income taxes prepaid and receivable | 6,087 | |||||
Prepaid expenses and other current assets | 19,559 | |||||
Total current assets | 586,775 | |||||
Property, plant and equipment, net | 450,694 | |||||
Intangibles, net | 52,322 | |||||
Goodwill | 165,474 | |||||
Income taxes receivable and deferred | 81,237 | |||||
Noncurrent receivables | 36,981 | |||||
Other assets | 48,978 | |||||
Total assets | 1,422,461 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Notes and loans payable | 26 | |||||
Accounts payable | 54,752 | |||||
Accrued liabilities | 125,255 | |||||
Current maturities of long-term debt | 1,844 | |||||
Income taxes payable | 14,620 | |||||
Total current liabilities | 196,497 | |||||
Long-term debt | 523,186 | |||||
Other noncurrent liabilities | 97,563 | |||||
Deferred taxes and other liabilities | 13,556 | |||||
Total liabilities | 830,802 | |||||
SHAREHOLDERS' EQUITY | ||||||
Preferred stock, par value $5.00 per share; authorized 2,000,000 shares; none issued | ||||||
Additional paid in capital | 429,635 | |||||
Retained earnings | 558,639 | |||||
Accumulated items of other comprehensive income: | ||||||
Translation adjustments | (102,888) | |||||
Pension and postretirement liability adjustments | (48,422) | |||||
Derivative valuation adjustment | 8,155 | |||||
Treasury stock (Class A), at cost 8,418,620 shares in 2018 and 8,431,335 shares in 2017 | (256,602) | |||||
Total Company shareholders' equity | 588,557 | |||||
Noncontrolling interest | 3,102 | |||||
Total equity | 591,659 | |||||
Total liabilities and shareholders' equity | 1,422,461 | |||||
As reported [Member] | Common Class A [Member] | ||||||
SHAREHOLDERS' EQUITY | ||||||
Common Stock | 37 | |||||
As reported [Member] | Common Class B [Member] | ||||||
SHAREHOLDERS' EQUITY | ||||||
Common Stock | 3 | |||||
Adjustments to reverse effects of ASC 606 [Member] | ||||||
ASSETS | ||||||
Cash and cash equivalents | ||||||
Accounts receivable, net | (4,286) | |||||
Contract assets | (59,244) | |||||
Inventories | 51,736 | |||||
Income taxes prepaid and receivable | ||||||
Prepaid expenses and other current assets | ||||||
Total current assets | (11,794) | |||||
Property, plant and equipment, net | ||||||
Intangibles, net | ||||||
Goodwill | ||||||
Income taxes receivable and deferred | (648) | |||||
Noncurrent receivables | ||||||
Other assets | (1,256) | |||||
Total assets | (13,698) | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Notes and loans payable | ||||||
Accounts payable | ||||||
Accrued liabilities | (17,485) | |||||
Current maturities of long-term debt | ||||||
Income taxes payable | ||||||
Total current liabilities | (17,485) | |||||
Long-term debt | ||||||
Other noncurrent liabilities | ||||||
Deferred taxes and other liabilities | (52) | |||||
Total liabilities | (17,537) | |||||
SHAREHOLDERS' EQUITY | ||||||
Preferred stock, par value $5.00 per share; authorized 2,000,000 shares; none issued | ||||||
Additional paid in capital | ||||||
Retained earnings | 3,065 | |||||
Accumulated items of other comprehensive income: | ||||||
Translation adjustments | 531 | |||||
Pension and postretirement liability adjustments | ||||||
Derivative valuation adjustment | ||||||
Treasury stock (Class A), at cost 8,418,620 shares in 2018 and 8,431,335 shares in 2017 | ||||||
Total Company shareholders' equity | 3,596 | |||||
Noncontrolling interest | 243 | |||||
Total equity | 3,839 | |||||
Total liabilities and shareholders' equity | (13,698) | |||||
Adjustments to reverse effects of ASC 606 [Member] | Common Class A [Member] | ||||||
SHAREHOLDERS' EQUITY | ||||||
Common Stock | ||||||
Adjustments to reverse effects of ASC 606 [Member] | Common Class B [Member] | ||||||
SHAREHOLDERS' EQUITY | ||||||
Common Stock | ||||||
As adjusted to exclude adoption of ASC 606 [Member] | ||||||
ASSETS | ||||||
Cash and cash equivalents | 154,744 | |||||
Accounts receivable, net | 245,196 | |||||
Contract assets | ||||||
Inventories | 149,395 | |||||
Income taxes prepaid and receivable | 6,087 | |||||
Prepaid expenses and other current assets | 19,559 | |||||
Total current assets | 574,981 | |||||
Property, plant and equipment, net | 450,694 | |||||
Intangibles, net | 52,322 | |||||
Goodwill | 165,474 | |||||
Income taxes receivable and deferred | 80,589 | |||||
Noncurrent receivables | 36,981 | |||||
Other assets | 47,722 | |||||
Total assets | 1,408,763 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Notes and loans payable | 26 | |||||
Accounts payable | 54,752 | |||||
Accrued liabilities | 107,770 | |||||
Current maturities of long-term debt | 1,844 | |||||
Income taxes payable | 14,620 | |||||
Total current liabilities | 179,012 | |||||
Long-term debt | 523,186 | |||||
Other noncurrent liabilities | 97,563 | |||||
Deferred taxes and other liabilities | 13,504 | |||||
Total liabilities | 813,265 | |||||
SHAREHOLDERS' EQUITY | ||||||
Preferred stock, par value $5.00 per share; authorized 2,000,000 shares; none issued | ||||||
Additional paid in capital | 429,635 | |||||
Retained earnings | 561,704 | |||||
Accumulated items of other comprehensive income: | ||||||
Translation adjustments | (102,357) | |||||
Pension and postretirement liability adjustments | (48,422) | |||||
Derivative valuation adjustment | 8,155 | |||||
Treasury stock (Class A), at cost 8,418,620 shares in 2018 and 8,431,335 shares in 2017 | (256,602) | |||||
Total Company shareholders' equity | 592,153 | |||||
Noncontrolling interest | 3,345 | |||||
Total equity | 595,498 | |||||
Total liabilities and shareholders' equity | 1,408,763 | |||||
As adjusted to exclude adoption of ASC 606 [Member] | Common Class A [Member] | ||||||
SHAREHOLDERS' EQUITY | ||||||
Common Stock | 37 | |||||
As adjusted to exclude adoption of ASC 606 [Member] | Common Class B [Member] | ||||||
SHAREHOLDERS' EQUITY | ||||||
Common Stock | $ 3 |
Revenue Recognition (Schedule53
Revenue Recognition (Schedule of Consolidated Balance Sheets) (Details) (Parenthetical) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Preferred Stock, par value per share | $ 5 | $ 5 | |
Preferred Stock, shares authorized | 2,000,000 | 2,000,000 | |
Preferred Stock, shares issued | 0 | 0 | |
Common Class A [Member] | |||
Common Stock, par value per share | $ 0.001 | $ 0.001 | |
Common Stock, shares authorized | 100,000,000 | 100,000,000 | |
Common Stock, shares issued | 37,447,819 | 37,395,753 | |
Treasury stock, shares | 8,418,620 | 8,431,335 | |
Common Class B [Member] | |||
Common Stock, par value per share | $ 0.001 | $ 0.001 | |
Common Stock, shares authorized | 25,000,000 | 25,000,000 | |
Common Stock, shares issued | 3,233,998 | 3,233,998 | |
Common Stock, shares outstanding | 3,233,998 | 3,233,998 | |
As reported [Member] | |||
Preferred Stock, par value per share | $ 5 | ||
Preferred Stock, shares authorized | 2,000,000 | ||
Preferred Stock, shares issued | 0 | ||
As reported [Member] | Common Class A [Member] | |||
Common Stock, par value per share | $ .001 | ||
Common Stock, shares authorized | 100,000,000 | ||
Common Stock, shares issued | 37,447,819 | 37,395,753 | |
Treasury stock, shares | 8,418,620 | 8,431,335 | |
As reported [Member] | Common Class B [Member] | |||
Common Stock, par value per share | $ 0.001 | ||
Common Stock, shares authorized | 25,000,000 | ||
Common Stock, shares issued | 3,233,998 | 3,233,998 | |
Common Stock, shares outstanding | 3,233,998 | 3,233,998 | |
Adjustments to reverse effects of ASC 606 [Member] | |||
Preferred Stock, par value per share | $ 5 | ||
Preferred Stock, shares authorized | 2,000,000 | ||
Preferred Stock, shares issued | 0 | ||
Adjustments to reverse effects of ASC 606 [Member] | Common Class A [Member] | |||
Common Stock, par value per share | $ .001 | ||
Common Stock, shares authorized | 100,000,000 | ||
Common Stock, shares issued | 37,447,819 | 37,395,753 | |
Adjustments to reverse effects of ASC 606 [Member] | Common Class B [Member] | |||
Common Stock, par value per share | $ 0.001 | ||
Common Stock, shares authorized | 25,000,000 | ||
Common Stock, shares issued | 3,233,998 | 3,233,998 | |
Common Stock, shares outstanding | 3,233,998 | 3,233,998 | |
As adjusted to exclude adoption of ASC 606 [Member] | |||
Preferred Stock, par value per share | $ 5 | ||
Preferred Stock, shares authorized | 2,000,000 | ||
Preferred Stock, shares issued | 0 | ||
As adjusted to exclude adoption of ASC 606 [Member] | Common Class A [Member] | |||
Common Stock, par value per share | $ .001 | ||
Common Stock, shares authorized | 100,000,000 | ||
Common Stock, shares issued | 37,447,819 | 37,395,753 | |
As adjusted to exclude adoption of ASC 606 [Member] | Common Class B [Member] | |||
Common Stock, par value per share | $ 0.001 | ||
Common Stock, shares authorized | 25,000,000 | ||
Common Stock, shares issued | 3,233,998 | 3,233,998 | |
Common Stock, shares outstanding | 3,233,998 | 3,233,998 |
Revenue Recognition (Schedule54
Revenue Recognition (Schedule of Consolidated Statement of Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
OPERATING ACTIVITIES | ||||
Net income | $ 30,306 | $ 1,233 | $ 40,788 | $ 12,207 |
Adjustments to reconcile net income to net cash used in operating activities: | ||||
Depreciation | 17,114 | 15,201 | 35,416 | 29,845 |
Amortization | 2,559 | 2,632 | 5,205 | 5,281 |
Change in other noncurrent liabilities | (854) | (758) | (1,231) | (2,354) |
Change in deferred taxes and other liabilities | (6,118) | (6,745) | (6,902) | (7,357) |
Provision for write-off of property, plant and equipment | 853 | 534 | 1,124 | 830 |
Non-cash interest expense | 154 | 212 | 154 | 423 |
Compensation and benefits paid or payable in Class A Common Stock | 1,047 | 681 | 1,336 | 1,670 |
Fair value adjustment on foreign currency option | 34 | 75 | 71 | 129 |
Changes in operating assets and liabilities that (used)/provided cash: | ||||
Accounts receivable | (12,903) | (14,395) | (44,370) | (15,136) |
Contract assets | (13,877) | (11,761) | ||
Inventories | (1,371) | 1,655 | (10,615) | (13,266) |
Prepaid expenses and other current assets | (1,157) | (780) | (5,220) | (2,697) |
Income taxes prepaid and receivable | (5) | (2,817) | 97 | (2,817) |
Accounts payable | 11,420 | (1,459) | 8,882 | 2,065 |
Accrued liabilities | 5,853 | 10,071 | 4,668 | (900) |
Income taxes payable | 10,020 | 1,978 | 6,589 | (508) |
Noncurrent receivables | (1,643) | (3,621) | (4,170) | (7,536) |
Other, net | (5,745) | 4,692 | (3,321) | 3,938 |
Net cash provided by operating activities | 35,687 | 8,389 | 16,740 | 3,817 |
Net cash used in investing activities | (23,375) | (21,713) | (39,175) | (46,796) |
Net cash (used in)/provided by financing activities | (1,112) | 10,207 | (3,570) | (998) |
Effect of exchange rate changes on cash and cash equivalents | (7,882) | (1,424) | (2,978) | 1,027 |
(Decrease)/increase in cash and cash equivalents | 3,318 | (4,541) | (28,983) | (42,950) |
Cash and cash equivalents at beginning of period | 151,426 | 143,333 | 183,727 | 181,742 |
Cash and cash equivalents at end of period | 154,744 | $ 138,792 | 154,744 | $ 138,792 |
As reported [Member] | ||||
OPERATING ACTIVITIES | ||||
Net income | 30,306 | 40,788 | ||
Adjustments to reconcile net income to net cash used in operating activities: | ||||
Depreciation | 17,114 | 35,416 | ||
Amortization | 2,559 | 5,205 | ||
Change in other noncurrent liabilities | (854) | (1,231) | ||
Change in deferred taxes and other liabilities | (6,118) | (6,902) | ||
Provision for write-off of property, plant and equipment | 853 | 1,124 | ||
Non-cash interest expense | 154 | 154 | ||
Compensation and benefits paid or payable in Class A Common Stock | 1,047 | 1,336 | ||
Fair value adjustment on foreign currency option | 34 | 71 | ||
Changes in operating assets and liabilities that (used)/provided cash: | ||||
Accounts receivable | (12,903) | (44,370) | ||
Contract assets | (13,877) | (11,761) | ||
Inventories | (1,371) | (10,615) | ||
Prepaid expenses and other current assets | (1,157) | (5,220) | ||
Income taxes prepaid and receivable | (5) | 97 | ||
Accounts payable | 11,420 | 8,882 | ||
Accrued liabilities | 5,853 | 4,668 | ||
Income taxes payable | 10,020 | 6,589 | ||
Noncurrent receivables | (1,643) | (4,170) | ||
Other, net | (5,745) | (3,321) | ||
Net cash provided by operating activities | 35,687 | 16,740 | ||
Net cash used in investing activities | (23,375) | (39,175) | ||
Net cash (used in)/provided by financing activities | (1,112) | (3,570) | ||
Effect of exchange rate changes on cash and cash equivalents | (7,882) | (2,978) | ||
(Decrease)/increase in cash and cash equivalents | 3,318 | (28,983) | ||
Cash and cash equivalents at beginning of period | 151,426 | 183,727 | ||
Cash and cash equivalents at end of period | 154,744 | 154,744 | ||
Adjustments to reverse effects of ASC 606 [Member] | ||||
OPERATING ACTIVITIES | ||||
Net income | (1,402) | (2,649) | ||
Adjustments to reconcile net income to net cash used in operating activities: | ||||
Depreciation | ||||
Amortization | ||||
Change in other noncurrent liabilities | ||||
Change in deferred taxes and other liabilities | (507) | (1,108) | ||
Provision for write-off of property, plant and equipment | ||||
Non-cash interest expense | ||||
Compensation and benefits paid or payable in Class A Common Stock | ||||
Fair value adjustment on foreign currency option | ||||
Changes in operating assets and liabilities that (used)/provided cash: | ||||
Accounts receivable | (14,277) | (3,727) | ||
Contract assets | 13,877 | 11,761 | ||
Inventories | 2,304 | (4,222) | ||
Prepaid expenses and other current assets | ||||
Income taxes prepaid and receivable | ||||
Accounts payable | ||||
Accrued liabilities | 5 | (55) | ||
Income taxes payable | ||||
Noncurrent receivables | ||||
Other, net | ||||
Net cash provided by operating activities | ||||
Net cash used in investing activities | ||||
Net cash (used in)/provided by financing activities | ||||
Effect of exchange rate changes on cash and cash equivalents | ||||
(Decrease)/increase in cash and cash equivalents | ||||
Cash and cash equivalents at beginning of period | ||||
Cash and cash equivalents at end of period | ||||
As adjusted to exclude adoption of ASC 606 [Member] | ||||
OPERATING ACTIVITIES | ||||
Net income | 28,904 | 38,139 | ||
Adjustments to reconcile net income to net cash used in operating activities: | ||||
Depreciation | 17,114 | 35,416 | ||
Amortization | 2,559 | 5,205 | ||
Change in other noncurrent liabilities | (854) | (1,231) | ||
Change in deferred taxes and other liabilities | (6,625) | (8,010) | ||
Provision for write-off of property, plant and equipment | 853 | 1,124 | ||
Non-cash interest expense | 154 | 154 | ||
Compensation and benefits paid or payable in Class A Common Stock | 1,047 | 1,336 | ||
Fair value adjustment on foreign currency option | 34 | 71 | ||
Changes in operating assets and liabilities that (used)/provided cash: | ||||
Accounts receivable | (27,180) | (48,097) | ||
Contract assets | ||||
Inventories | 933 | (14,837) | ||
Prepaid expenses and other current assets | (1,157) | (5,220) | ||
Income taxes prepaid and receivable | (5) | 97 | ||
Accounts payable | 11,420 | 8,882 | ||
Accrued liabilities | 5,858 | 4,613 | ||
Income taxes payable | 10,020 | 6,589 | ||
Noncurrent receivables | (1,643) | (4,170) | ||
Other, net | (5,745) | (3,321) | ||
Net cash provided by operating activities | 35,687 | 16,740 | ||
Net cash used in investing activities | (23,375) | (39,175) | ||
Net cash (used in)/provided by financing activities | (1,112) | (3,570) | ||
Effect of exchange rate changes on cash and cash equivalents | (7,882) | (2,978) | ||
(Decrease)/increase in cash and cash equivalents | 3,318 | (28,983) | ||
Cash and cash equivalents at beginning of period | 151,426 | 183,727 | ||
Cash and cash equivalents at end of period | $ 154,744 | $ 154,744 |
Reportable Segments (Narrative)
Reportable Segments (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||
Net sales | $ 256,225 | $ 215,571 | $ 486,206 | $ 414,848 | |
Cost of goods sold | 164,047 | 152,393 | 312,377 | 275,642 | |
Write-off inventory costs | 4,000 | ||||
Reserve for future losses | 11,800 | ||||
AEC contracts [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Cost of goods sold | 15,800 | ||||
Albany Safran Composites, LLC [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 88,400 | 56,800 | |||
Invoiced receivables, unbilled receivables and contract receivables | 96,800 | 96,800 | $ 58,600 | ||
Machine Clothing [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | $ 162,635 | $ 146,572 | $ 310,786 | $ 289,399 | |
Increase decrease in assets | 22,000 | ||||
AEC assets [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Increase decrease in assets | $ (13,000) |
Reportable Segments (Schedule o
Reportable Segments (Schedule of Financial Data by Reporting Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 256,225 | $ 215,571 | $ 486,206 | $ 414,848 |
Operating income/(loss) | 42,684 | 9,855 | 63,515 | 32,533 |
Interest income | (438) | (340) | (820) | (447) |
Interest expense | 5,059 | 4,625 | 9,729 | 9,060 |
Other expense/(income), net | 726 | 2,558 | 2,178 | 3,384 |
Income before income taxes | 37,337 | 3,012 | 52,428 | 20,536 |
Increase/(decrease) attributable to application of ASC 606 [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | (400) | 8,034 | ||
Operating income/(loss) | 1,909 | 3,757 | ||
Interest income | ||||
Interest expense | ||||
Other expense/(income), net | ||||
Income before income taxes | 1,909 | 3,757 | ||
Machine Clothing [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 162,635 | 146,572 | 310,786 | 289,399 |
Operating income/(loss) | 50,843 | 38,418 | 81,613 | 76,688 |
Machine Clothing [Member] | Increase/(decrease) attributable to application of ASC 606 [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 857 | 5,068 | ||
Operating income/(loss) | 1,786 | 2,765 | ||
Albany Engineered Composites [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 93,590 | 68,999 | 175,420 | 125,449 |
Operating income/(loss) | 4,092 | (17,828) | 6,366 | (22,942) |
Albany Engineered Composites [Member] | Increase/(decrease) attributable to application of ASC 606 [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | (1,257) | 2,966 | ||
Operating income/(loss) | 123 | 992 | ||
Corporate Expenses [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating income/(loss) | $ (12,251) | $ (10,742) | (24,464) | $ (21,213) |
Corporate Expenses [Member] | Increase/(decrease) attributable to application of ASC 606 [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating income/(loss) |
Reportable Segments (Schedule57
Reportable Segments (Schedule of Restructuring Costs by Reporting Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Restructuring expense | ||||
Restructuring expenses, net | $ 2,589 | $ 2,036 | $ 11,162 | $ 4,717 |
Machine Clothing [Member] | ||||
Restructuring expense | ||||
Restructuring expenses, net | 1,800 | 805 | 10,152 | 916 |
Albany Engineered Composites [Member] | ||||
Restructuring expense | ||||
Restructuring expenses, net | 558 | 1,231 | 779 | 3,801 |
Corporate Expenses [Member] | ||||
Restructuring expense | ||||
Restructuring expenses, net | $ 231 | $ 231 |
Pensions and Other Postretire58
Pensions and Other Postretirement Benefit Plans (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 1,391 | $ 1,307 |
Interest cost | 3,621 | 3,671 |
Expected return on assets | (4,470) | (4,003) |
Curtailment gain | (518) | |
Amortization of prior service cost/(credit) | 17 | 18 |
Amortization of net actuarial loss | 1,110 | 1,295 |
Net periodic benefit cost | 1,151 | 2,288 |
Other Postretirement Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 116 | 122 |
Interest cost | 1,013 | 1,107 |
Expected return on assets | ||
Curtailment gain | ||
Amortization of prior service cost/(credit) | (2,244) | (2,244) |
Amortization of net actuarial loss | 1,478 | 1,405 |
Net periodic benefit cost | $ 363 | $ 390 |
Pensions and Other Postretire59
Pensions and Other Postretirement Benefit Plans (Schedule of Amounts Reclassified by Segment and Financial Statement) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Increase/(decrease) in expense Effect by segment operating expenses [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Total operating expenses | $ (1,249) |
Other expense, net | 1,249 |
Increase/(decrease) in expense Effect by segment operating expenses [Member] | Machine Clothing [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Total operating expenses | (9) |
Increase/(decrease) in expense Effect by segment operating expenses [Member] | Albany Engineered Composites [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Total operating expenses | |
Increase/(decrease) in expense Effect by segment operating expenses [Member] | Corporate Expenses [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Total operating expenses | (1,240) |
Increase/(decrease) in expense Effect by Statement of Income [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Total operating expenses | (1,249) |
Other expense, net | 1,249 |
Increase/(decrease) in expense Effect by Statement of Income [Member] | Cost of goods sold [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Total operating expenses | (247) |
Increase/(decrease) in expense Effect by Statement of Income [Member] | Selling, general and administrative expenses [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Total operating expenses | $ (1,002) |
Restructuring (Narrative) (Deta
Restructuring (Narrative) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | $ 8,600 | ||
Accrued restructuring costs expected to be paid within one year | 8,400 | ||
Accrued restructuring costs expected to be paid in year two | 400 | ||
Severance and outplacement costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | 9,700 | ||
AEC assets [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | $ 5,800 | $ 5,800 | |
Machine Clothing [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | $ 1,100 |
Restructuring (Schedule of Rest
Restructuring (Schedule of Restructuring Charges) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Restructuring and other, net | ||||
Restructuring expenses, net | $ 2,589 | $ 2,036 | $ 11,162 | $ 4,717 |
Machine Clothing [Member] | ||||
Restructuring and other, net | ||||
Restructuring expenses, net | 1,800 | 805 | 10,152 | 916 |
Albany Engineered Composites [Member] | ||||
Restructuring and other, net | ||||
Restructuring expenses, net | 558 | 1,231 | 779 | 3,801 |
Corporate Expenses [Member] | ||||
Restructuring and other, net | ||||
Restructuring expenses, net | $ 231 | 231 | ||
Termination and other costs [Member] | ||||
Restructuring and other, net | ||||
Restructuring expenses, net | 11,162 | 4,272 | ||
Termination and other costs [Member] | Machine Clothing [Member] | ||||
Restructuring and other, net | ||||
Restructuring expenses, net | 10,152 | 916 | ||
Termination and other costs [Member] | Albany Engineered Composites [Member] | ||||
Restructuring and other, net | ||||
Restructuring expenses, net | 779 | 3,356 | ||
Termination and other costs [Member] | Corporate Expenses [Member] | ||||
Restructuring and other, net | ||||
Restructuring expenses, net | 231 | |||
Impairment of plant and equipment [Member] | ||||
Restructuring and other, net | ||||
Restructuring expenses, net | 445 | |||
Impairment of plant and equipment [Member] | Machine Clothing [Member] | ||||
Restructuring and other, net | ||||
Restructuring expenses, net | ||||
Impairment of plant and equipment [Member] | Albany Engineered Composites [Member] | ||||
Restructuring and other, net | ||||
Restructuring expenses, net | 445 | |||
Impairment of plant and equipment [Member] | Corporate Expenses [Member] | ||||
Restructuring and other, net | ||||
Restructuring expenses, net |
Restructuring (Schedule of Re62
Restructuring (Schedule of Restructuring Liability) (Details) - Termination and other costs [Member] - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 3,326 | $ 5,559 |
Restructuring charges accrued | 11,162 | 4,272 |
Payments | (5,323) | (4,513) |
Currency translation/other | (378) | 65 |
Ending balance | $ 8,787 | $ 5,383 |
Other expense, net (Details)
Other expense, net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Other Income and Expenses [Abstract] | ||||
Currency transaction (gains)/losses | $ (9) | $ 1,948 | $ 681 | $ 2,049 |
Bank fees | 96 | 111 | 204 | 259 |
Components of net periodic pension and postretirement cost other than service | 259 | 627 | 525 | 1,249 |
Other | 380 | (128) | 768 | (173) |
Total | $ 726 | $ 2,558 | $ 2,178 | $ 3,384 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Tax Disclosure [Line Items] | |||
Tax rates | 35.00% | ||
Federal tax rate of deferred tax assets and liabilities | 21.00% | ||
Current year and prior year earnings of Company's foreign operations | $ 92,900 | ||
Foreign withholding taxes | $ 2,200 | ||
Reduction in provisional transition tax | $ 1,100 | ||
Federal tax benefit attributable to adjustments discovered | 1,900 | ||
State tax charge | 800 | ||
Estimated effective tax rate on continuing operations | 30.10% | 32.80% | |
Increase decrease in unrecognized tax benefits | $ 700 | ||
Foreign tax credits | 18,000 | ||
Increase decrease in deferred tax liabilities | $ 500 | ||
Percentage of AETR increased | 2.30% | ||
Estimated foreign-derived intangible income deduction | $ 9,000 | ||
Percentage of AETR decreased | 2.10% | ||
Uncertain tax positions | 2,400 | ||
Valuation allowance | $ 5,000 | ||
Earliest Tax Year [Member] | |||
Income Tax Disclosure [Line Items] | |||
Open tax years | 2,007 | ||
Latest Tax Year [Member] | |||
Income Tax Disclosure [Line Items] | |||
Open tax years | 2,018 |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Income Tax Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Income tax based on income from continuing operations, at estimated tax rates of 30.1% and 32.8%, respectively | $ 11,239 | $ 989 | $ 15,779 | $ 6,744 |
Provision for change in estimated tax rates | (359) | 36 | ||
Income tax before discrete items | 10,880 | 1,025 | 15,779 | 6,744 |
Discrete tax expense: | ||||
Exercise of US Stock Options | (3) | (126) | (55) | |
Impact of mandatory repatriation | (1,099) | (1,099) | ||
Adjustments to prior period tax liabilities | (206) | 189 | (252) | 189 |
Provision for/resolution of tax audits and contingencies, net | 2,443 | 599 | 2,448 | 1,451 |
Changes in valuation allowance | (4,986) | (4,986) | ||
Other | 2 | (34) | (124) | |
Total income tax expense | $ 7,031 | $ 1,779 | $ 11,640 | $ 8,329 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to the Company | $ 30,365 | $ 1,117 | $ 40,610 | $ 11,956 |
Weighted average number of shares: | ||||
Weighted average number of shares used in calculating basic net income per share | 32,257 | 32,166 | 32,239 | 32,147 |
Effect of dilutive stock-based compensation plans: | ||||
Stock options | 16 | 34 | 16 | 35 |
Weighted average number of shares used in calculating diluted net income per share | 32,273 | 32,200 | 32,255 | 32,182 |
Average market price of common stock used for calculation of dilutive shares | $ 61.86 | $ 48.44 | $ 62.83 | $ 47.47 |
Net income per share: | ||||
Basic | 0.94 | 0.03 | 1.26 | 0.37 |
Diluted | $ 0.94 | $ 0.03 | $ 1.26 | $ 0.37 |
Noncontrolling Interest (Detail
Noncontrolling Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Noncontrolling Interest [Line Items] | |||||
Net income of Albany Safran Composites (ASC) | $ 30,306 | $ 1,233 | $ 40,788 | $ 12,207 | |
Net income of ASC available for common ownership | 30,365 | 1,117 | 40,610 | 11,956 | |
Net income attributable to noncontrolling interest | (59) | 116 | 178 | 251 | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||||
Noncontrolling interest, beginning of year | 3,247 | ||||
Net income attributable to noncontrolling interest | (59) | $ 116 | 178 | 251 | |
Noncontrolling interest | $ 3,102 | 3,102 | $ 3,247 | ||
Albany Safran Composites, LLC [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Net income of Albany Safran Composites (ASC) | 2,419 | 3,029 | |||
Less: Return attributable to the Company's preferred holding | 635 | 515 | |||
Net income of ASC available for common ownership | $ 1,784 | $ 2,514 | |||
Ownership percentage of noncontrolling shareholder | 10.00% | 10.00% | 10.00% | 10.00% | |
Net income attributable to noncontrolling interest | $ 178 | $ 251 | |||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||||
Noncontrolling interest, beginning of year | 3,247 | 3,767 | 3,767 | ||
Decrease attributable to application of ASC 606 | (327) | ||||
Net income attributable to noncontrolling interest | 178 | 251 | |||
Changes in other comprehensive income attributable to noncontrolling interest | 4 | 13 | |||
Noncontrolling interest | $ 3,102 | $ 4,031 | $ 3,102 | $ 4,031 | $ 3,247 |
Accumulated Other Comprehensi68
Accumulated Other Comprehensive Income (AOCI) (Schedule of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | $ 569,768 | |
Ending balance | 588,557 | |
Translation adjustments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (87,318) | $ (133,298) |
Other comprehensive income/(loss) before reclassifications | (15,570) | 28,453 |
Net current period other comprehensive income | (15,570) | 28,453 |
Ending balance | (102,888) | (104,845) |
Pension and postretirement liability adjustments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (50,536) | (51,719) |
Other comprehensive income/(loss) before reclassifications | 2,224 | (1,079) |
Pension/postretirement curtailment gain, net of tax | (363) | |
Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income, net of tax | 253 | 332 |
Net current period other comprehensive income | 2,114 | (747) |
Ending balance | (48,422) | (52,466) |
Derivative valuation adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | 1,953 | 828 |
Other comprehensive income/(loss) before reclassifications | 6,024 | (619) |
Interest expense related to swaps reclassified to the Consolidated Statements of Income, net of tax | 178 | 585 |
Net current period other comprehensive income | 6,202 | (34) |
Ending balance | 8,155 | 794 |
Total Other Comprehensive Income [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (135,901) | (184,189) |
Other comprehensive income/(loss) before reclassifications | (7,322) | 26,755 |
Pension/postretirement curtailment gain, net of tax | (363) | |
Interest expense related to swaps reclassified to the Consolidated Statements of Income, net of tax | 178 | 585 |
Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income, net of tax | 253 | 332 |
Net current period other comprehensive income | (7,254) | 27,672 |
Ending balance | $ (143,155) | $ (156,517) |
Accumulated Other Comprehensi69
Accumulated Other Comprehensive Income (AOCI) (Schedule of Items Reclassified to Statement of Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Expense related to interest rate swaps included in Income | $ 5,059 | $ 4,625 | $ 9,729 | $ 9,060 | ||||
Total pretax amount reclassified | 37,337 | 3,012 | 52,428 | 20,536 | ||||
Income tax effect | 7,031 | 1,779 | 11,640 | 8,329 | ||||
Effect on net income due to items reclassified from Accumulated Other Comprehensive Income | (30,365) | (1,117) | (40,610) | (11,956) | ||||
Pension/postretirement curtailment | (518) | (518) | ||||||
Prior service credit | [1] | (1,113) | (1,113) | (2,227) | (2,226) | |||
Net actuarial loss | [1] | 1,291 | 1,353 | 2,588 | 2,700 | |||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivative valuation adjustment [Member] | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Expense related to interest rate swaps included in Income | [2] | 54 | 343 | 234 | 943 | |||
Income tax effect | (13) | (130) | (56) | (358) | ||||
Effect on net income due to items reclassified from Accumulated Other Comprehensive Income | 41 | 213 | 178 | 585 | ||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Pension and postretirement liability adjustments [Member] | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Total pretax amount reclassified | (340) | 240 | [3] | (157) | [4] | 474 | [4] | |
Income tax effect | 102 | (72) | 47 | (142) | ||||
Effect on net income due to items reclassified from Accumulated Other Comprehensive Income | $ (238) | $ 168 | $ (110) | $ 332 | ||||
[1] | These accumulated other comprehensive income components are included in Other expense, net (see Note 4). The curtailment adjustment was included in restructuring expenses, net. | |||||||
[2] | Included in Interest expense are payments related to the interest rate swap agreements and amortization of swap buyouts (see Note 16). | |||||||
[3] | Included in Interest expense are payments related to the interest rate swap agreements and amortization of swap buyouts (see Note 15). | |||||||
[4] | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 4). |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | ||
Trade and other accounts receivable | $ 238,763 | $ 152,375 |
Bank promissory notes | 18,070 | 20,255 |
Revenue in excess of progress billings | 37,964 | |
Allowance for doubtful accounts | (7,351) | (7,919) |
Total accounts receivable | 249,482 | 202,675 |
Noncurrent receivables | $ 36,981 | $ 32,811 |
Interest rate | 2.00% | |
Increase in accounts receivables | $ 7,700 |
Contract Assets and Liabiliti71
Contract Assets and Liabilities (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Contract assets | $ 59,244 | $ 59,244 | |||
Increase decrease in contract assets | (13,877) | (11,761) | |||
Increase decrease in contract liabilities | 3,500 | ||||
Revenue recognized | 1,000 | ||||
Accounts Receivable [Member] | |||||
Contract assets | $ 47,400 | $ 47,400 |
Contract Assets and Liabiliti72
Contract Assets and Liabilities (Schedule of Contract Assets and Contract Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Contract Assets And Liabilities | ||
Contract assets | $ 59,244 | |
Contract liabilities | $ 4,220 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 39,822 | $ 42,215 |
Work in process | 44,526 | 65,448 |
Finished goods | 13,311 | 28,856 |
Total inventories | 97,659 | $ 136,519 |
Decrease in inventories of adoption of ASC 606 | $ 47,100 |
Goodwill and Other Intangible74
Goodwill and Other Intangible Assets (Schedule of intangible assets and goodwill) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Amortized intangible assets: | ||
Gross carrying value | $ 66,724 | $ 66,724 |
Accumulated amortization | (14,402) | (11,283) |
Net carrying amount | 52,322 | 55,441 |
Goodwill | ||
Gross carrying value | 165,474 | 166,796 |
Accumulated amortization | ||
Net carrying amount | 165,474 | 166,796 |
AEC Trade Names [Member] | ||
Amortized intangible assets: | ||
Gross carrying value | 140 | 140 |
Accumulated amortization | (127) | (125) |
Net carrying amount | $ 13 | $ 15 |
Goodwill | ||
Amortization life in years | 15 years | 15 years |
AEC Technology [Member] | ||
Amortized intangible assets: | ||
Gross carrying value | $ 370 | $ 370 |
Accumulated amortization | (302) | (290) |
Net carrying amount | $ 68 | $ 80 |
Goodwill | ||
Amortization life in years | 15 years | 15 years |
Customer Relationships [Member] | ||
Amortized intangible assets: | ||
Gross carrying value | $ 48,421 | $ 48,421 |
Accumulated amortization | (7,269) | (5,654) |
Net carrying amount | $ 41,152 | $ 42,767 |
Goodwill | ||
Amortization life in years | 15 years | 15 years |
Customer Contracts [Member] | ||
Amortized intangible assets: | ||
Gross carrying value | $ 17,471 | $ 17,471 |
Accumulated amortization | (6,559) | (5,102) |
Net carrying amount | $ 10,912 | $ 12,369 |
Goodwill | ||
Amortization life in years | 6 years | 6 years |
Other Intangible [Member] | ||
Amortized intangible assets: | ||
Gross carrying value | $ 322 | $ 322 |
Accumulated amortization | (145) | (112) |
Net carrying amount | $ 177 | $ 210 |
Goodwill | ||
Amortization life in years | 5 years | 5 years |
MC Goodwill [Member] | ||
Goodwill | ||
Gross carrying value | $ 69,744 | $ 71,066 |
Accumulated amortization | ||
Net carrying amount | 69,744 | 71,066 |
AEC Goodwill [Member] | ||
Goodwill | ||
Gross carrying value | 95,730 | 95,730 |
Accumulated amortization | ||
Net carrying amount | $ 95,730 | $ 95,730 |
Goodwill and Other Intangible75
Goodwill and Other Intangible Assets (Schedule of changes in intangible assets and goodwill) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Amortized intangible assets: | |
Beginning Balance | $ 55,441 |
Amortization | (3,119) |
Currency Translation | |
Ending Balance | 52,322 |
Goodwill | |
Beginning Balance | 166,796 |
Amortization | |
Currency Translation | (1,322) |
Ending Balance | 165,474 |
AEC Trade Names [Member] | |
Amortized intangible assets: | |
Beginning Balance | 15 |
Amortization | (2) |
Currency Translation | |
Ending Balance | 13 |
AEC Technology [Member] | |
Amortized intangible assets: | |
Beginning Balance | 80 |
Amortization | (12) |
Currency Translation | |
Ending Balance | 68 |
Customer Relationships [Member] | |
Amortized intangible assets: | |
Beginning Balance | 42,767 |
Amortization | (1,615) |
Currency Translation | |
Ending Balance | 41,152 |
Customer Contracts [Member] | |
Amortized intangible assets: | |
Beginning Balance | 12,369 |
Amortization | (1,457) |
Currency Translation | |
Ending Balance | 10,912 |
Other Intangible [Member] | |
Amortized intangible assets: | |
Beginning Balance | 210 |
Amortization | (33) |
Currency Translation | |
Ending Balance | 177 |
MC Goodwill [Member] | |
Goodwill | |
Beginning Balance | 71,066 |
Amortization | |
Currency Translation | (1,322) |
Ending Balance | 69,744 |
AEC Goodwill [Member] | |
Goodwill | |
Beginning Balance | 95,730 |
Amortization | |
Currency Translation | |
Ending Balance | $ 95,730 |
Goodwill and Other Intangible76
Goodwill and Other Intangible Assets (Schedule of Estimated Amortization Expense) (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,018 | $ 6,234 |
2,019 | 6,234 |
2,020 | 6,234 |
2,021 | 6,163 |
2,022 | $ 3,949 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - USD ($) $ in Thousands | 6 Months Ended | |||||||
Jun. 30, 2018 | Dec. 31, 2017 | Nov. 28, 2017 | Nov. 27, 2017 | Nov. 07, 2017 | Jun. 18, 2017 | May 06, 2016 | Apr. 08, 2016 | |
Debt Instrument [Line Items] | ||||||||
Maximum leverage ratio allowed | 3.75 | |||||||
Minimum interest coverage ratio required | 3 | |||||||
Leverage ratio | 2.23 | |||||||
Interest coverage ratio | 10.73 | |||||||
Credit Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 3.58% | 3.40% | ||||||
Amount of credit facility | $ 685,000 | $ 550,000 | ||||||
Amount of credit facility outstanding | $ 511,000 | |||||||
Additional amount that can be borrowed on facility | $ 174,000 | |||||||
LIBOR spread | 1.50% | |||||||
Credit Agreement [Member] | Interest Rate Current Swap [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowings, revolving credit facility | $ 300,000 | $ 120,000 | ||||||
Notional amount | $ 350,000 | $ 350,000 | ||||||
Fixed interest rate in swap | 2.11% | 3.61% | ||||||
LIBOR rate | 2.09% | |||||||
Amount paid to terminate agreement | $ 5,200 | |||||||
Amount received from terminate agreement | $ 6,300 | |||||||
Credit Agreement [Member] | Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
LIBOR spread | 1.25% | |||||||
Credit Agreement [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
LIBOR spread | 1.75% | |||||||
Capital Lease Obligations [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 5.00% | |||||||
Maturity date | Dec. 31, 2022 |
Financial Instruments (Schedule
Financial Instruments (Schedule of Long-Term Debt) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Long-term debt | $ 525,030 | $ 515,919 |
Less: current portion | (1,844) | (1,799) |
Long-term debt, net of current portion | 523,186 | 514,120 |
Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 511,000 | $ 501,000 |
Interest rate | 3.58% | 3.40% |
Maturity date range, end | Dec. 31, 2022 | |
Capital Lease Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 14,030 | $ 14,919 |
Interest rate | 5.00% | |
Maturity date range, end | Dec. 31, 2022 |
Financial Instruments (Schedu79
Financial Instruments (Schedule of future minimum annual lease payments) (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Long-term Debt and Capital Lease Obligations [Abstract] | |
2,018 | $ 1,236 |
2,019 | 2,473 |
2,020 | 2,520 |
2,021 | 2,520 |
2,022 | 7,373 |
Total minimum lease payments | 16,122 |
Less: Amount representing interest | (2,092) |
Present value of minimum lease payments | $ 14,030 |
Fair-Value Measurements (Narrat
Fair-Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative [Line Items] | ||||
Interest expense (income) | $ (4,621) | $ (4,285) | $ (8,909) | $ (8,613) |
Interest Rate Current Swap [Member] | ||||
Derivative [Line Items] | ||||
Interest expense (income) | 700 | 500 | ||
Interest Rate Swap Buyouts [Member] | ||||
Derivative [Line Items] | ||||
Interest expense (income) | $ (400) | $ 400 |
Fair-Value Measurements (Schedu
Fair-Value Measurements (Schedule of Fair Value of Financial Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | |||
Derivative asset: | |||||
Common stock of foreign public company, original cost | $ 500 | $ 500 | |||
Interest Rate Current Swap [Member] | |||||
Derivative asset: | |||||
Liability for fixed rate leg | 39,800 | 34,900 | |||
Receivable for floating rate leg | 30,800 | 34,600 | |||
Quoted Prices in Active Markets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Assets: | |||||
Cash equivalents | 18,728 | 13,601 | |||
Foreign currency options | 41 | ||||
Common stock of unaffiliated foreign public company | [1] | 962 | 999 | ||
Liabilities: | |||||
Interest rate swaps | |||||
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Assets: | |||||
Cash equivalents | |||||
Foreign currency options | |||||
Common stock of unaffiliated foreign public company | [1] | ||||
Liabilities: | |||||
Interest rate swaps | $ 8,985 | [2] | $ 313 | [3] | |
[1] | Original cost basis $0.5 million | ||||
[2] | Net of $39.8 million receivable floating leg and $30.8 million liability fixed leg | ||||
[3] | Net of $34.9 million receivable floating leg and $34.6 million liability fixed leg |
Fair-Value Measurements (Sche82
Fair-Value Measurements (Schedule of (Losses)/Gains on Changes in Fair Value of Derivative Instruments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | ||||
Derivatives not designated as hedging instruments Foreign currency options losses | $ (34) | $ (75) | $ (71) | $ (129) |
Contingencies (Narrative) (Deta
Contingencies (Narrative) (Details) - Asbestos Litigation [Member] $ in Thousands | Jun. 30, 2018USD ($)claims |
Loss Contingencies [Line Items] | |
Total resolved claims, by means of settlement or dismissal | claims | 37,699 |
Total cost of resolution | $ | $ 10,300 |
Resolution costs paid by insurance carrier | 100.00% |
Confirmed insurance coverage | $ | $ 140,000 |
Brandon Drying Fabrics, Inc. [Member] | |
Loss Contingencies [Line Items] | |
Total resolved claims, by means of settlement or dismissal | claims | 7,708 |
Resolution costs paid by insurance carrier | 100.00% |
Contingencies (Schedule of Chan
Contingencies (Schedule of Changes in Claims) (Details) - Asbestos Litigation [Member] $ in Thousands | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2018USD ($)claims | Dec. 31, 2017USD ($)claims | Dec. 31, 2016USD ($)claims | Dec. 31, 2015USD ($)claims | Dec. 31, 2014USD ($)claims | Dec. 31, 2013USD ($)claims | |
Loss Contingencies [Line Items] | ||||||
Opening Number of Claims | 3,730 | 3,745 | 3,791 | 3,821 | 4,299 | 4,463 |
Claims Dismissed, Settled, or Resolved | 105 | 105 | 148 | 116 | 625 | 230 |
New Claims | 52 | 90 | 102 | 86 | 147 | 66 |
Closing Number of Claims | 3,677 | 3,730 | 3,745 | 3,791 | 3,821 | 4,299 |
Amounts Paid (thousands) to Settle or Resolve | $ | $ 93 | $ 55 | $ 758 | $ 164 | $ 437 | $ 78 |
Changes in Shareholders' Equi85
Changes in Shareholders' Equity (Narrative) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
ASC 606 [Member] | |
Increase decrease in retained earnings | $ 5,600 |
Increase decrease in non controlling interest | 300 |
ASU 2016-16 [Member] | |
Increase decrease in retained earnings | $ 500 |
Changes in Shareholders' Equi86
Changes in Shareholders' Equity (Schedule of Activity in Shareholders' Equity) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Balance | $ 573,015 | ||||
Adoption of accounting standards | [1],[2] | (5,412) | |||
Net income | $ 30,306 | $ 1,233 | 40,788 | $ 12,207 | |
Compensation and benefits paid or payable in shares | 1,336 | ||||
Options exercised | 150 | ||||
Dividends declared | (10,968) | ||||
Cumulative translation adjustments | (15,566) | ||||
Pension and postretirement liability adjustments | 2,114 | ||||
Derivative valuation adjustment | 6,202 | ||||
Balance | 591,659 | 591,659 | |||
Common Stock [Member] | |||||
Balance | 40 | ||||
Adoption of accounting standards | [1],[2] | ||||
Net income | |||||
Compensation and benefits paid or payable in shares | |||||
Options exercised | |||||
Dividends declared | |||||
Cumulative translation adjustments | |||||
Pension and postretirement liability adjustments | |||||
Derivative valuation adjustment | |||||
Balance | 40 | 40 | |||
Additional Paid-in Capital [Member] | |||||
Balance | 428,423 | ||||
Adoption of accounting standards | [1],[2] | ||||
Net income | |||||
Compensation and benefits paid or payable in shares | 1,062 | ||||
Options exercised | 150 | ||||
Dividends declared | |||||
Cumulative translation adjustments | |||||
Pension and postretirement liability adjustments | |||||
Derivative valuation adjustment | |||||
Balance | 429,635 | 429,635 | |||
Retained Earnings [Member] | |||||
Balance | 534,082 | ||||
Adoption of accounting standards | [1],[2] | (5,085) | |||
Net income | 40,610 | ||||
Compensation and benefits paid or payable in shares | |||||
Dividends declared | (10,968) | ||||
Cumulative translation adjustments | |||||
Pension and postretirement liability adjustments | |||||
Derivative valuation adjustment | |||||
Balance | 558,639 | 558,639 | |||
Total Other Comprehensive Income [Member] | |||||
Balance | (135,901) | ||||
Adoption of accounting standards | [1],[2] | ||||
Net income | |||||
Compensation and benefits paid or payable in shares | |||||
Options exercised | |||||
Dividends declared | |||||
Cumulative translation adjustments | (15,570) | ||||
Pension and postretirement liability adjustments | 2,114 | ||||
Derivative valuation adjustment | 6,202 | ||||
Balance | (143,155) | (143,155) | |||
Treasury Stock [Member] | |||||
Balance | (256,876) | ||||
Adoption of accounting standards | [1],[2] | ||||
Net income | |||||
Compensation and benefits paid or payable in shares | 274 | ||||
Options exercised | |||||
Dividends declared | |||||
Cumulative translation adjustments | |||||
Pension and postretirement liability adjustments | |||||
Derivative valuation adjustment | |||||
Balance | (256,602) | (256,602) | |||
Noncontrolling Interest [Member] | |||||
Balance | 3,247 | ||||
Adoption of accounting standards | [1],[2] | (327) | |||
Net income | 178 | ||||
Compensation and benefits paid or payable in shares | |||||
Options exercised | |||||
Dividends declared | |||||
Cumulative translation adjustments | 4 | ||||
Pension and postretirement liability adjustments | |||||
Derivative valuation adjustment | |||||
Balance | $ 3,102 | $ 3,102 | |||
[1] | As described in Note 2, the Company adopted ASC 606 effective January 1, 2018, which resulted in a decrease to Retained earnings of $5.6 million and a $0.3 million decrease to Noncontrolling interest. | ||||
[2] | As described in Note 7, the Company adopted ASU 2016-16 effective January 1, 2018, which resulted in a $0.5 increase to Retained earnings. |