Document and Entity Information
Document and Entity Information - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2019 | Apr. 17, 2019 | |
Entity Registrant Name | ALBANY INTERNATIONAL CORP /DE/ | |
Entity Central Index Key | 0000819793 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2019 | |
Common Class A [Member] | ||
Entity Common Stock, Shares Outstanding | 29 | |
Common Class B [Member] | ||
Entity Common Stock, Shares Outstanding | 3.3 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Net sales | $ 251,373 | $ 223,603 |
Cost of goods sold | 159,602 | 145,821 |
Gross profit | 91,771 | 77,782 |
Selling, general, and administrative expenses | 40,945 | 41,888 |
Technical and research expenses | 10,249 | 10,317 |
Restructuring expenses, net | 484 | 8,573 |
Operating income | 40,093 | 17,004 |
Interest expense, net | 4,417 | 4,288 |
Other (income)/expense, net | (1,208) | 1,452 |
Income before income taxes | 36,884 | 11,264 |
Income tax expense | 7,476 | 3,365 |
Net income | 29,408 | 7,899 |
Net income attributable to the noncontrolling interest | 218 | 237 |
Net income attributable to the Company | $ 29,190 | $ 7,662 |
Earnings per share attributable to Company shareholders - Basic | $ 0.90 | $ 0.24 |
Earnings per share attributable to Company shareholders - Diluted | $ 0.90 | $ 0.24 |
Shares of the Company used in computing earnings per share: | ||
Basic | 32,272 | 32,220 |
Diluted | 32,285 | 32,236 |
Dividends declared per share, Class A and Class B | $ 0.18 | $ 0.17 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 29,408 | $ 7,899 |
Other comprehensive income/(loss), before tax: | ||
Foreign currency translation and other adjustments | (2,152) | 17,505 |
Amortization of pension liability adjustments: | ||
Prior service credit | (1,105) | (1,114) |
Net actuarial loss | 1,121 | 1,297 |
Payments and amortization related to interest rate swaps included in earnings | (452) | 180 |
Derivative valuation adjustment | (3,377) | 5,715 |
Income taxes related to items of other comprehensive income/(loss): | ||
Amortization of pension liability adjustment | (5) | (55) |
Payments related to interest rate swaps included in earnings | 115 | (43) |
Derivative valuation adjustment | 863 | (1,372) |
Comprehensive income | 24,416 | 30,012 |
Comprehensive income/(loss) attributable to the noncontrolling interest | 210 | 230 |
Comprehensive income attributable to the Company | $ 24,206 | $ 29,782 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Assets | ||||
Cash and cash equivalents | $ 187,385 | $ 197,755 | $ 151,426 | $ 183,727 |
Accounts receivable, net | 234,127 | 223,176 | ||
Contract assets | 57,869 | 57,447 | ||
Inventories | 102,379 | 85,904 | ||
Income taxes prepaid and receivable | 6,818 | 7,473 | ||
Prepaid expenses and other current assets | 23,696 | 21,294 | ||
Total current assets | 612,274 | 593,049 | ||
Property, plant and equipment, net | 460,520 | 462,055 | ||
Intangibles, net | 47,646 | 49,206 | ||
Goodwill | 163,438 | 164,382 | ||
Deferred income taxes | 63,736 | 62,622 | ||
Noncurrent receivables | 45,354 | 45,061 | ||
Other assets | 50,313 | 41,617 | ||
Total assets | 1,443,281 | 1,417,992 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Accounts payable | 74,050 | 52,246 | ||
Accrued liabilities | 122,342 | 129,030 | ||
Current maturities of long-term debt | 19 | 1,224 | ||
Income taxes payable | 8,387 | 6,806 | ||
Total current liabilities | 204,798 | 189,306 | ||
Long-term debt | 491,022 | 523,707 | ||
Other noncurrent liabilities | 112,726 | 88,277 | ||
Deferred taxes and other liabilities | 8,328 | 8,422 | ||
Total liabilities | 816,874 | 809,712 | ||
SHAREHOLDERS' EQUITY | ||||
Preferred stock, par value $5.00 per share; authorized 2,000,000 shares; none issued | ||||
Additional paid in capital | 430,052 | 430,555 | ||
Retained earnings | 613,057 | 589,645 | ||
Accumulated items of other comprehensive income: | ||||
Translation adjustments | (116,630) | (115,976) | ||
Pension and postretirement liability adjustments | (48,596) | (47,109) | ||
Derivative valuation adjustment | 1,846 | 4,697 | ||
Treasury stock (Class A), at cost; 8,418,620 shares in 2019 and in 2018 | (256,603) | (256,603) | ||
Total Company shareholders' equity | 623,166 | 605,249 | ||
Noncontrolling interest | 3,241 | 3,031 | ||
Total equity | 626,407 | 608,280 | $ 592,578 | $ 57,301 |
Total liabilities and shareholders' equity | 1,443,281 | 1,417,992 | ||
Common Class A [Member] | ||||
SHAREHOLDERS' EQUITY | ||||
Common Stock | 37 | 37 | ||
Common Class B [Member] | ||||
SHAREHOLDERS' EQUITY | ||||
Common Stock | $ 3 | $ 3 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
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 | 37,478,402 | 37,450,329 |
Treasury stock, shares | 8,418,620 | 8,418,620 |
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 FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
OPERATING ACTIVITIES | ||
Net income | $ 29,408 | $ 7,899 |
Adjustments to reconcile net income to net cash provided by/(used in) operating activities: | ||
Depreciation | 15,642 | 18,302 |
Amortization | 2,314 | 2,646 |
Change in deferred taxes and other liabilities | (1,065) | (2,028) |
Provision for write-off of property, plant and equipment | 386 | 271 |
Non-cash interest expense | 151 | |
Compensation and benefits paid or payable in Class A Common Stock | (547) | 289 |
Fair value adjustment on foreign currency option | 37 | |
Changes in operating assets and liabilities that (used)/provided cash: | ||
Accounts receivable | (11,624) | (25,089) |
Contract assets | (481) | 2,116 |
Inventories | (16,662) | (11,753) |
Prepaid expenses and other current assets | (2,804) | (4,063) |
Income taxes prepaid and receivable | 674 | 102 |
Accounts payable | 21,750 | (2,538) |
Accrued liabilities | (11,095) | (1,227) |
Income taxes payable | 1,506 | (3,431) |
Noncurrent receivables | (294) | (2,527) |
Other noncurrent liabilities | (1,679) | (377) |
Other, net | (1,014) | 2,424 |
Net cash provided by/(used in) operating activities | 24,566 | (18,947) |
INVESTING ACTIVITIES | ||
Purchases of property, plant and equipment | (20,798) | (15,771) |
Purchased software | (22) | (29) |
Net cash used in investing activities | (20,820) | (15,800) |
FINANCING ACTIVITIES | ||
Proceeds from borrowings | 20,000 | 13,011 |
Principal payments on debt | (28,004) | (8,490) |
Principal payments on finance lease liabilities | (400) | |
Taxes paid in lieu of share issuance | (971) | (1,652) |
Proceeds from options exercised | 44 | 147 |
Dividends paid | (5,808) | (5,474) |
Net cash used in financing activities | (15,139) | (2,458) |
Effect of exchange rate changes on cash and cash equivalents | 1,023 | 4,904 |
Decrease in cash and cash equivalents | (10,370) | (32,301) |
Cash and cash equivalents at beginning of period | 197,755 | 183,727 |
Cash and cash equivalents at end of period | $ 187,385 | $ 151,426 |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
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, 2018. Certain quarterly results for 2018 contained within this report have been revised to correct immaterial errors, as described in Note 24 of Item 8 in that same Annual Report on Form 10-K. Effective January 1, 2019, we adopted the provisions of ASC 842, Leases effective date approach for transition as discussed in Note 3, Leases |
Reportable Segments
Reportable Segments | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Reportable Segments | 2. Reportable Segments In accordance with applicable disclosure guidance for enterprise segments and related information, the internal organization that is used by management for making operating decisions and assessing performance is used as the basis for our reportable segments. The Machine Clothing (MC) segment designs and manufactures fabrics and process felts used in the manufacture of all grades of paper products and other industrial products. We sell our MC products directly to customer end-users in countries across the globe. Our products, manufacturing processes, and distribution channels for MC are substantially the same in each region of the world in which we operate. We design, manufacture, and market paper machine clothing (used in the manufacturing of paper, paperboard, tissue and towel) for each section of the paper machine and for every grade of paper. Paper machine clothing products are customized, consumable products of technologically sophisticated design that utilize polymeric materials in a complex structure. 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, is a designer and manufacturer of advanced materials-based engineered components for jet engine and airframe applications, supporting both commercial and military platforms provides highly engineered, advanced composite structures to customers in the commercial and defense aerospace 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 a 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 $56.0 million and $40.8 million in the first quarter of 2019 and 2018, respectively. The total of invoiced receivables, Contract assets and Noncurrent receivables due from Safran amounted to $107.8 million and $96.2 million as of March 31, 2019 and December 31, 2018, respectively. The following tables show data by reportable segment, reconciled to consolidated totals included in the financial statements: Three months ended March 31, (in thousands) 2019 2018 Net sales Machine Clothing $144,334 $141,773 Albany Engineered Composites 107,039 81,830 Consolidated total $251,373 $223,603 Operating income/(loss) Machine Clothing $44,243 $26,942 Albany Engineered Composites 9,522 2,275 Corporate expenses (13,672) (12,213) Operating income $40,093 $17,004 Reconciling items: Interest income (599) (382) Interest expense 5,016 4,670 Other (income)/expense, net (1,208) 1,452 Income before income taxes $36,884 $11,264 The table below presents restructuring costs by reportable segment (also see Note 5): Three months ended (in thousands) 2019 2018 Machine Clothing $401 $8,352 Albany Engineered Composites 83 221 Total $484 $8,573 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 three months ended March 31, 2019 (in thousands) Point in Time Revenue Over Time Revenue Total Machine Clothing $143,534 $800 $144,334 Albany Engineered Composites ASC - 55,442 55,442 Other AEC 6,245 45,352 51,597 Total Albany Engineered Composites 6,245 100,794 107,039 Total revenue $149,779 $101,594 $251,373 For the three months ended March 31, 2018 (in thousands) Point in Time Revenue Recognition Over Time Revenue Recognition Total Machine Clothing $140,973 $800 $141,773 Albany Engineered Composites ASC - 40,781 40,781 Other AEC 6,040 35,009 41,049 Total Albany Engineered Composites 6,040 75,790 81,830 Total revenue $147,013 $76,590 $223,603 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 three months ended March 31, (in thousands) 2019 2018 Americas PMC $75,341 $67,629 Eurasia PMC 51,438 53,811 Engineered Fabrics 17,555 20,333 Total Machine Clothing Net sales $144,334 $141,773 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 MC 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. Remaining performance obligations on contracts that had an original duration of greater than one year totaled $90 million and $115 million as of March 31, 2019 and 2018, respectively, and related primarily to firm contracts in the AEC segment. Of the remaining performance obligations as of March 31, 2019 we expect to recognize as revenue approximately $53 million during 2019, with the remainder to be recognized in between 2020 and 2021. At the January 1, 2019 date of adoption of ASC 842, Leases |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Lessee Disclosure [Abstract] | |
Leases | 3. Leases Effective January 1, 2019, we adopted the provisions of ASC 842, Leases The new standard is intended to increase transparency and comparability among organizations by requiring the recognition of right of use (“ROU”) assets and lease liabilities on the balance sheet. Most prominent among the changes in the standard is the recognition of ROU assets and lease liabilities by lessees for those leases classified as operating leases. Under the standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. We applied the new accounting standard to leases existing at the date of initial application on January 1, 2019. We elected the available package of practical expedients, which permitted us not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. We implemented processes and internal controls to enable the preparation of financial information on adoption. The most significant impact resulting from the adoption of the new standard was the recognition of ROU assets and lease liabilities for operating leases on our balance sheet for our real estate and automobile operating leases, in addition to the derecognition and reassessment of assets and liabilities related to our primary manufacturing facility in Salt Lake City, Utah (SLC lease), which had been accounted for as a build-to-suit lease with a failed sale leaseback. For that lease, t ransitional guidance required the derecognition of existing assets and liabilities and a reassessment of lease classification. We determined that the lease met the criteria for recording as a finance lease and we determined the January 1, 2019 values of the ROU asset and lease liability on the basis of that reassessment. The change in the SLC lease-related assets and liabilities resulted in a $0.3 million pre-tax reduction to retained earnings at the date of adoption. The table below presents the cumulative effect of changes made to our December 31, 2018 Balance Sheet as a result of the adoption of ASC 842, Leases ALBANY INTERNATIONAL CORP. CONSOLIDATED BALANCE SHEET (in thousands, except share data) (unaudited) As previously Adjustments Opening ASSETS Cash and cash equivalents $197,755 $ - $197,755 Accounts receivable, net 223,176 - 223,176 Contract assets 57,447 - 57,447 Inventories 85,904 - 85,904 Income taxes prepaid and receivable 7,473 - 7,473 Prepaid expenses and other current assets 21,294 (370) 20,924 Total current assets 593,049 (370) 592,679 Property, plant and equipment, net 462,055 (6,144) 455,911 Intangibles, net 49,206 - 49,206 Goodwill 164,382 - 164,382 Deferred income taxes 62,622 (20) 62,602 Noncurrent receivables 45,061 - 45,061 Other assets 41,617 13,615 55,232 Total assets $1,417,992 $7,081 $1,425,073 LIABILITIES AND SHAREHOLDERS' EQUITY Notes and loans payable $- $- $- Accounts payable 52,246 - 52,246 Accrued liabilities 129,030 4,964 133,994 Current maturities of long-term debt 1,224 (1,206) 18 Income taxes payable 6,806 - 6,806 Total current liabilities 189,306 3,758 193,064 Long-term debt 523,707 (24,680) 499,027 Other noncurrent liabilities 88,277 27,968 116,245 Deferred taxes and other liabilities 8,422 - 8,422 Total liabilities 809,712 7,046 816,758 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 37,450,329 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 430,555 - 430,555 Retained earnings 589,645 35 589,680 Accumulated items of other comprehensive income: Translation adjustments (115,976) - (115,976 ) Pension and postretirement liability adjustments (47,109) - (47,109 ) Derivative valuation adjustment 4,697 - 4,697 Treasury stock (Class A), at cost 8,418,620 shares in 2018 and 8,431,335 shares in 2017 (256,603) - (256,603 ) Total Company shareholders' equity 605,249 35 605,284 Noncontrolling interest 3,031 - 3,031 Total equity 608,280 35 608,315 Total liabilities and shareholders' equity $1,417,992 $7,081 $1,425,073 Adoption of the standard had no impact to cash from or used in operating, investing, or financing activities in our Consolidated Statements of Cash Flows. Significant changes to our accounting policies as a result of adopting the new standard are discussed below. We determine if an arrangement is a lease at inception. A contract is, or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, we would assess whether: · The contract involves the use of an identified asset. This may be specified explicitly or implicitly, and should be physically distinct or represent substantially all of the capacity of a physically distinct asset, · We have the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use, and · We have the right to direct the use of the asset. We have this right when we have the decision-making rights that are most relevant to changing how and for what purpose the asset is used. Judgement is required in the application of ASC 842, Leases We are generally the lessee in our lease transactions. For periods ending after December 31, 2018, lessees will be required to recognize a lease liability and an ROU asset for leases with terms greater than 12 months . ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent an obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized on the commencement date based on the present value of lease payments over the lease term, using the rate implicit in the lease. If that rate is not readily determinable, the rate is based on the Company’s incremental borrowing rate. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease. Our ROU assets include the values associated with the additional periods when it is reasonably certain that we will exercise the option. We review the carrying value of ROU assets for impairment whenever events and circumstances indicate that the carrying value of an asset group may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. We have lease agreements with lease and non-lease components. For most leases, we account for the lease and non-lease components as a single lease component, in accordance with the practical expedient that is available for ongoing accounting. Additionally, for certain leases, such as for vehicles, we apply a portfolio approach. New leases will be classified as financing or operating, with classification affecting the pattern and classification of expense recognition in the income statement. 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. Operating lease ROU assets are included in Other assets in the Consolidated Balance Sheets and Operating lease liabilities are included in Accrued liabilities and Other noncurrent liabilities in the Consolidated Balance Sheets. Finance lease ROU assets are included in Property, plant, and equipment, net in the Consolidated Balance Sheets and Finance lease liabilities are included in Accrued liabilities and Other noncurrent liabilities in the Consolidated Balance Sheets. We have operating and finance leases for offices, manufacturing facilities, warehouses, vehicles, and certain equipment. Our leases have remaining lease terms of 1 year to 11 years, some of which include options to extend the leases for up to 10 years, and some of which include options to terminate the leases within 1 year. The components of lease expense were as follows: (in thousands) For the three Finance lease Amortization of right-of-use asset $ 253 Interest on lease liabilities 399 Operating lease Fixed lease cost 1,217 Variable lease cost 57 Short-term lease cost 332 Total lease expense $ 2,258 Lease expense for the same period of 2018 was $2.1 million. Supplemental cash flow information related to leases was as follows: (in thousands) For the three Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,191 Operating cash flows from finance leases 399 Financing cash flows from finance leases 400 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 412 Finance leases - Supplemental balance sheet information related to leases was as follows: (in thousands) March 31, 2019 Operating leases Right of use assets included in Other assets $ 12,969 Lease liabilities included in Accrued liabilities $ 4,182 Other noncurrent liabilities 8,935 Total operating lease liabilities $ 13,117 Finance leases Right of use assets included in Property, plant and equipment, net $ 10,890 Lease liabilities included in Accrued liabilities $ 1,216 Other noncurrent liabilities 18,564 Total finance lease liabilities $ 19,780 Additional information for leases existing at March 31, 2019 was as follows: Weighted average remaining lease term Operating leases 5 years Finance leases 11 years Weighted average discount rate Operating leases 6.1% Finance leases 8.0% Maturities of lease liabilities as of March 31, 2019 were as follows: (in thousands) Operating leases Finance lease Year ending December 31, 2019 $ 3,487 $ 2,057 2020 4,068 2,790 2021 2,033 2,790 2022 1,419 2,838 2023 1,346 3,004 Thereafter 3,047 15,512 Total lease payments 15,400 28,991 Less imputed interest (2,283) (9,211) Total $ 13,117 $ 19,780 The finance lease liability includes the SLC lease described above, but excludes additional manufacturing space that was included in the September 2018 modification of that lease. We will take control of the additional space during the fourth quarter of 2019, which will be the commencement of this lease component, at which time the lease liability and ROU asset will be recorded. We will have control of the additional space through 2029 and the additional space will increase gross cash outflows during that period by $6.1 million. As of December 31, 2018, future rental payments required under operating leases with initial or remaining non-cancelable lease terms in excess of one year, were: 2019, $4.6 million; 2020, $3.2 million; 2021, $2.1 million; 2022, $1.5 million; and 2023 and thereafter, $6.5 million. As of December 31, 2018, the following schedule presents future minimum annual payments under the SLC lease finance obligation, and the present value of the minimum payments: (in thousands) Year ending December 31, 2019 $ 2,451 2020 2,974 2021 2,990 2022 3,054 2023 3,277 Thereafter 18,930 Total minimum payments 33,676 Less imputed interest (7,790) Total $ 25,886 As of December 31, 2018, the capitalized value associated with the SLC lease was included in Property, plant, and equipment, net at a value of $17.3 million, which included a gross cost of $20.8 million, and Accumulated depreciation of $3.5 million. |
Pensions and Other Postretireme
Pensions and Other Postretirement Benefit Plans | 3 Months Ended |
Mar. 31, 2019 | |
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 benefits accrued under this plan have been frozen since February 2009. 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 cost for the three months ended March 31, 2019 and 2018, was as follows: Pension plans Other postretirement benefits (in thousands) 2019 2018 2019 2018 Components of net periodic benefit cost: Service cost $632 $699 $47 $58 Interest cost 1,794 1,820 528 507 Expected return on assets (2,057) (2,247) - - Amortization of prior service cost/(credit) 17 8 (1,122) (1,122) Amortization of net actuarial loss 564 558 557 739 Net periodic benefit cost $950 $838 $10 $182 Service cost for defined benefit pension and postretirement plans are reported in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. Other components of net periodic benefit cost are presented in the income statement separately from the service cost component and outside a subtotal of income from operations, in the line item Other (income)/expense, net in the Consolidated Statements of Income. |
Restructuring
Restructuring | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | 5. Restructuring MC restructuring charges include expenses for the first three months of 2019 and 2018 related to discontinued operations at its MC production facility in Sélestat, France. In 2018, the plan was approved by the French Labor Ministry which led to restructuring expense of $8.1 million in the first three months of 2018 for severance and outplacement costs for the approximately 50 positions that were terminated under this plan. In the first quarter of 2019, restructuring charges were $0.4 million. Since 2017, we have recorded $12.1 million of restructuring charges related to this action. AEC restructuring charges include expenses for the first three months of 2019 and 2018 related to work force reductions in AEC locations in Salt Lake City, Utah and Rochester, New Hampshire. The restructuring charges for the first three months of 2019 and 2018 include expenses of $0.1 million and $0.2 million, respectively. The following table summarizes charges reported in the Consolidated Statements of Income under “Restructuring expenses, net”: Three months ended March 31, (in thousands) 2019 2018 Machine Clothing $401 $8,352 Albany Engineered Composites 83 221 Corporate expenses - - Total $484 $8,573 Three months ended March 31, 2019 Total Termination (in thousands) Machine Clothing $401 $401 Albany Engineered Composites 83 83 Corporate expenses - - Total $484 $484 Three months ended March 31, 2018 Total Termination (in thousands) Machine Clothing $8,352 $8,352 Albany Engineered Composites 221 221 Corporate expenses - - Total $8,573 $8,573 We expect substantially all of Accrued liabilities for restructuring at March 31, 2019 will be paid within one year. The table below presents the year-to-date changes in restructuring liabilities for 2019 and 2018, all of which related to termination costs: December 31, Restructuring Currency March 31, (in thousands) 2018 charges accrued Payments translation /other 2019 Total termination and other costs $5,570 $484 ($876) $23 $5,201 December 31, Restructuring Currency March 31, (in thousands) 2017 charges accrued Payments translation /other 2018 Total termination and other costs $3,326 $8,573 ($2,051) $25 $9,873 |
Other (Income)_Expense, net
Other (Income)/Expense, net | 3 Months Ended |
Mar. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Other (Income)/Expense, net | 6. Other (Income)/Expense, net The components of Other (Income)/Expense, net are: Three months ended March 31, (in thousands) 2019 2018 Currency transaction (gains)/losses ($2,038) $690 Bank fees and amortization of debt issuance costs 109 108 Components of net periodic pension and postretirement cost other than service 281 263 Other 440 391 Total ($1,208) $1,452 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes The following table presents components of income tax expense for the three months ended March 31, 2019 and 2018: Three months ended March 31, (in thousands, except percentages) 2019 2018 Income tax based on income from continuing operations, at estimated tax rates of 29.4% and 32.5%, respectively $10,847 $3,656 Income tax before discrete items 10,847 3,656 Discrete tax expense: Exercise of U.S. stock options (50) (123) Adjustments to prior period tax liabilities 194 (46) Provision for resolution of tax audits and contingencies, net (2,232) 5 Adjustment related to prior period change in opening valuation allowance (1,346) - Other 63 (127) Total income tax expense $7,476 $3,365 The first-quarter estimated annual effective tax rate on continuing operations was 29.4 percent in 2019, compared to 32.5 percent for the same period in 2018. 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 will be 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. 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 $159.2 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 $4.1 million and state income taxes of $3.3 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 2019. The Company is currently under audit in non-U.S. tax jurisdictions, including but not limited to Italy. In the first quarter of 2019, the Company recorded a net benefit of $2.2 million for tax audit settlements with Canada. The Canadian Revenue Agency agreed to accept the Company’s appeal of all protested issues. The Company has begun to receive refunds from the Canadian Revenue Agency and Ontario for taxes that were pre-paid at the time of protests. As such, the Company determined that it is more likely than not that the liability for unrecognized tax benefits of $2.2 million that was recorded as of December 31, 2018 was no longer warranted and thus it was reduced in the first quarter of 2019, resulting in a $2.2 million discrete tax benefit. 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. There was no evidence obtained during the first quarter 2019 that would require the Company to make any changes to its view of the future realization of deferred tax assets. In the first quarter of 2019, the Company recorded a $1.3 million out-of-period immaterial adjustment related to a German tax valuation allowance. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
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 (in thousands, except market price and earnings per share) 2019 2018 Net income attributable to the Company $29,190 $7,662 Weighted average number of shares: Weighted average number of shares used in calculating basic net income per share 32,272 32,220 Effect of dilutive stock-based compensation plans: Stock options 13 16 Weighted average number of shares used in calculating diluted net income per share 32,285 32,236 Average market price of common stock used for calculation of dilutive shares $71.24 $63.86 Net income attributable to the Company per share: Basic $0.90 $0.24 Diluted $0.90 $0.24 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (AOCI) | 3 Months Ended |
Mar. 31, 2019 | |
Accumulated items of other comprehensive income: | |
Accumulated Other Comprehensive Income (AOCI) | 9. Accumulated Other Comprehensive Income (AOCI) The table below presents changes in the components of AOCI for the period December 31, 2018 to March 31, 2019: (in thousands) Translation Pension and Derivative Total Other December 31, 2018 ($115,976) ($47,109) $4,697 ($158,388) Other comprehensive income/(loss) before reclassifications (654) (152) (2,514) (3,320) Interest expense related to swaps reclassified to the Consolidated Statements of Income, net of tax - - (337) (337) Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income, net of tax - 11 - 11 Adjustment related to prior period change in opening valuation allowance - (1,346) - (1,346) Net current period other comprehensive income (654) (1,487) (2,851) (4,992) March 31, 2019 ($116,630) ($48,596) $1,846 ($163,380) The table below presents changes in the components of AOCI for the period December 31, 2017 to March 31, 2018: (in thousands) Translation Pension and Derivative Total Other December 31, 2017 ($87,318) ($50,536) $1,953 ($135,901) Other comprehensive income/(loss) before reclassifications 17,646 (141) 4,343 21,848 Interest expense related to swaps reclassified to the Consolidated Statements of Income, net of tax - - 137 137 Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income, net of tax - 128 - 128 Net current period other comprehensive income 17,646 (13) 4,480 22,113 March 31, 2018 ($69,672) ($50,549) $6,433 ($113,788) The components of our Accumulated Other Comprehensive Income that are reclassified to the Statement of Income relate to our pension and postretirement plans and interest rate swaps. The table below presents the expense/(income) amounts reclassified, and the line items of the Consolidated Statements of Income that were affected for the three months ended March 31, 2019 and 2018. Three months ended (in thousands) 2019 2018 Pretax Derivative valuation reclassified from Accumulated Other Comprehensive Income: Expense related to interest rate swaps included in Income before taxes (a) ($452) $180 Income tax effect 115 (43) Effect on net income due to items reclassified from Accumulated Other Comprehensive Income ($337) $137 Pretax pension and postretirement liabilities reclassified from Accumulated Other Comprehensive Income: Amortization of prior service credit (1,105) (1,114) Amortization of net actuarial loss 1,121 1,297 Total pretax amount reclassified (b) 16 183 Income tax effect (5) (55) Effect on net income due to items reclassified from Accumulated Other Comprehensive Income $11 $128 (a) Included in Interest expense, net, are payments related to the interest rate swap agreements and amortization of swap buyouts (see Notes 15 and 16). (b) These accumulated other comprehensive income components are included in the computation of net periodic cost (see Note 4). |
Noncontrolling Interest
Noncontrolling Interest | 3 Months Ended |
Mar. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest | 10. Noncontrolling Interest Effective October 31, 2013, Safran S.A. (Safran) acquired a 10 percent equity interest in a new Albany subsidiary, Albany Safran Composites, LLC (ASC). Under the terms of the transaction agreements, ASC is the exclusive supplier to Safran of advanced 3D-woven composite parts for use in aircraft and rocket engines, thrust reversers and nacelles, and aircraft landing and braking systems (the “Safran Applications”). AEC may develop and supply parts other than advanced 3D-woven composite parts for all aerospace applications, as well as advanced 3D-woven composite parts for any aerospace applications that are not Safran Applications (such as airframe applications) and any non-aerospace applications. The agreement provides Safran an option to purchase Albany’s remaining 90 percent interest upon the occurrence of certain bankruptcy or performance default events, or if Albany’s Engineered Composites business is sold to a direct competitor of Safran. The purchase price is based initially on the same valuation of ASC used to determine Safran’s 10 percent equity interest, and increases over time as LEAP production increases. In accordance with the operating agreement, Albany received a $28 million preferred holding in ASC which includes a preferred return based on the Company’s revolving credit agreement. The common shares of ASC are owned 90 percent by Albany and 10 percent by Safran. 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: Three months ended (in thousands) 2019 2018 Net income of Albany Safran Composites (ASC) $2,510 $2,681 Less: Return attributable to the Company's preferred holding 328 312 Net income of ASC available for common ownership $2,182 $2,369 Ownership percentage of noncontrolling shareholder 10% 10% Net income attributable to noncontrolling interest $218 $237 Noncontrolling interest, beginning of year $3,031 $3,247 Decrease attributable to 2018 adoption of ASC 606 - (327) Net income attributable to noncontrolling interest 218 237 Changes in other comprehensive income attributable to noncontrolling interest (8) (7) Noncontrolling interest $3,241 $3,150 |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Accounts Receivable | 11. Accounts Receivable Accounts receivable includes trade receivables. 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 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 March 31, 2019 and December 31, 2018, Accounts receivable consisted of the following: (in thousands) March 31, 2019 December 31, 2018 Trade and other accounts receivable $223,717 $211,244 Bank promissory notes 18,332 19,269 Allowance for doubtful accounts (7,922) (7,337) Accounts receivable, net $234,127 $223,176 The Company 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 March 31, 2019 and December 31, 2018, Noncurrent receivables consisted of the following: (in thousands) March 31, 2019 December 31, 2018 Noncurrent receivables $45,354 $45,061 |
Contract Assets and Liabilities
Contract Assets and Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Contract with Customer, Asset and Liability [Abstract] | |
Contract Assets and Liabilities | 12. Contract Assets and Liabilities 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. 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 Sheets. 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. As of March 31, 2019 and December 31, 2018 Contract assets and contract liabilities consisted of the following: (in thousands) March 31, 2019 December 31, 2018 Contract assets $57,869 $57,447 Contract liabilities 9,865 9,025 Contract assets increased $0.4 million during the three month period ended March 31, 2019. 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 three month period ended March 31, 2019. Contract liabilities increased $0.8 million during the three month period ended March 31, 2019, primarily due to increased billings in excess of revenue recognized. Revenue recognized for the three month period ended March 31, 2019, that was included in the Contract liability balance as of December 31, 2018 was $3.7 million, and included revenue in the MC and AEC segments. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2019 | |
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. As of March 31, 2019 and December 31, 2018, Inventories consisted of the following: (in thousands) March 31, December 31, Raw materials $47,820 $40,489 Work in process 37,582 33,181 Finished goods 16,977 12,234 Total inventories $102,379 $85,904 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
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. Our reportable segments are consistent with our operating segments. 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 values, 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 March 31, 2019 and December 31, 2018, were as follows: As of March 31, 2019 Weighted average Gross Accumulated Net carrying Amortized intangible assets: AEC trade names 15 $140 ($131) $9 AEC technology 15 370 (321) 49 Customer relationships 15 48,421 (9,690) 38,731 Customer contracts 6 17,471 (8,743) 8,728 Other intangibles 5 322 (193) 129 Net amortized intangible assets $66,724 ($19,078) $47,646 Unamortized intangible assets: MC Goodwill $67,708 $- $67,708 AEC Goodwill 95,730 - 95,730 Total unamortized intangible assets: $163,438 $- $163,438 As of December 31, 2018 Weighted average Gross Accumulated Net carrying Amortized intangible assets: AEC trade names 15 $140 ($129) $11 AEC technology 15 370 (314) 56 Customer relationships 15 48,421 (8,883) 39,538 Customer contracts 6 17,471 (8,015) 9,456 Other intangibles 5 322 (177) 145 Net amortized intangible assets $66,724 ($17,518) $49,206 Unamortized intangible assets: MC Goodwill $68,652 $- $68,652 AEC Goodwill 95,730 - 95,730 Total unamortized intangible assets: $164,382 $- $164,382 The changes in intangible assets, net and goodwill from December 31, 2018 to March 31, 2019, were as follows: (in thousands) December 31, Amortization Currency March 31,2019 Amortized intangible assets: AEC trade names $11 ($2) $- $9 AEC technology 56 (7) - 49 Customer relationships 39,538 (807) - 38,731 Customer contracts 9,456 (728) - 8,728 Other intangibles 145 (16) - 129 Net amortized intangible assets $49,206 ($1,560) $- $47,646 Unamortized intangible assets: MC Goodwill $68,652 $- ($944) $67,708 AEC Goodwill 95,730 - - 95,730 Total unamortized intangible assets: $164,382 $- ($944) $163,438 Estimated amortization expense of intangibles for the years ending December 31, 2019 through 2023, is as follows: Annual amortization Year (in thousands) 2019 $6,234 2020 6,234 2021 6,163 2022 3,949 2023 3,228 |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Financial Instruments | 15. Financial Instruments Long-term debt, principally to banks and noteholders, consists of: (in thousands, except interest rates) March 31, December 31, 2018 Revolving credit agreement with borrowings outstanding at an end of period interest rate of 3.61% in 2019 and 3.69% in 2018 (including the effect of interest rate hedging transactions, as described below), due in 2022 $491,000 $499,000 Finance obligation - 25,886 Other debt, at an average end of period rate of 5.50% in both 2019 and 2018, due in varying amounts through 2021 41 45 Long-term debt 491,041 524,931 Less: current portion (19) (1,224) Long-term debt, net of current portion $491,022 $523,707 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, $491 million of borrowings were outstanding as of March 31, 2019. 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 March 18, 2019, the spread was 1.375%. 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 March 31, 2019, we would have been able to borrow an additional $194 million under the Agreement. The Credit Agreement contains customary terms, as well as affirmative covenants, negative covenants and events of default that are 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). Due to the implementation of ASC 842, Leases, 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 $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 March 18, 2019 was 2.49%, during the swap period. On March 18, 2019, 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. 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 March 31, 2019, our leverage ratio was 1.79 to 1.00 and our interest coverage ratio was 12.08 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 March 31, 2019. |
Fair-Value Measurements
Fair-Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019, or at December 31, 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: March 31, 2019 December 31, 2018 Quoted Significant Quoted Significant (in thousands) (Level 1) (Level 2) (Level 1) (Level 2) Fair Value Assets: Cash equivalents $13,897 $- $14,234 $- Other Assets: Common stock of unaffiliated foreign public company (a) 743 - 731 - Interest rate swaps - 822 (b) - 4,548 (c) (a) Original cost basis $0.5 million. (b) Net of $26.7 million receivable floating leg and $25.9 million liability fixed leg. (c) Net of $32.0 million receivable floating leg and $27.5 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. Changes in the fair value of the investment are reported in the Consolidated Statements of Income. 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 (income)/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 (income)/expense, net. Revaluation gains and losses occur when our business units have cash, intercompany (recorded in Other (income)/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. As of March 31, 2019, these interest rate swaps were determined to be highly effective hedges of interest rate cash flow risk. 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 ($0.3) million for the three month period ended March 31, 2019, and $0.5 million for the three month period ended March 31, 2018. Additionally, non-cash interest income related to the amortization of swap buyouts totaled $0.1 million for the three month period ended March 31, 2019 and $0.2 million for the three month period ended March 31, 2018. Gains/(losses) related to changes in fair value of derivative instruments that were recognized in Other (income)/expense, net in the Consolidated Statements of Income were as follows: Three months (in thousands) 2019 2018 Derivatives not designated as hedging instruments Foreign currency options (losses) $ - ($37) |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
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 3,688 claims as of March 31, 2019. 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 Claims New Claims Closing Number Amounts Paid 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 3,730 152 106 3,684 100 2019 (as of March 31) 3,684 13 17 3,688 $- 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 March 31, 2019 we had resolved, by means of settlement or dismissal, 37,759 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 7,709 claims as of March 31, 2019, only eleven 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 | 3 Months Ended |
Mar. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Changes in Shareholders' Equity | 18. Changes in Shareholders’ Equity The following table summarizes changes in Shareholders’ Equity for the period December 31, 2018 to March 31, 2019: (in thousands, except per share amounts) Common A and B Additional Retained Accumulated Treasury Noncontrolling Total December 31, 2018 $40 $430,555 $589,645 ($158,388) ($256,603) $3,031 $608,280 Adoption of accounting standards (a) - - 35 - - - 35 Net income - - 29,190 - - 218 29,408 Compensation and benefits paid or payable in shares - (547) - - - - (547) Options exercised - 44 - - - - 44 Dividends declared: Class A Common Stock, $0.18 per share - - (5,813) - - - (5,813) Class B Common Stock, $0.18 per share - - - - - - - Cumulative translation adjustments - - - (654) - (8) (662) Pension and postretirement liability adjustments - - - (1,487) - - (1,487) Derivative valuation adjustment - - - (2,851) - - (2,851) March 31, 2019 $40 $430,052 $613,057 ($163,380) ($256,603) $3,241 $626,407 The following table summarizes changes in Shareholders’ Equity for the period December 31, 2017 to March 31, 2018: (in thousands, except per share amounts) Common A and B Additional Retained Accumulated Treasury Noncontrolling Total December 31, 2017 $40 $428,423 $534,082 ($135,901) ($256,876) $3,247 $573,015 Adoption of accounting standards (b),(c) - - (5,068) - - (327) (5,395) Net income - - 7,662 - - 237 7,899 Compensation and benefits paid or payable in shares - 289 - - - - 289 Options exercised - 147 - - - - 147 Dividends declared: Class A Common Stock, $0.17 per share - - (5,483) - - - (5,483) Class B Common Stock, $0.17 per share - - - - - - - Cumulative translation adjustments - - - 17,646 - (7) 17,639 Pension and postretirement liability adjustments - - - (13) - - (13) Derivative valuation adjustment - - - 4,480 - - 4,480 March 31, 2018 $40 $428,859 $531,193 ($113,788) ($256,876) $3,150 $592,578 (a) As described in Note 3, the Company adopted ASC 842, Leases (b) 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. (c) The Company adopted ASU 2016-16 effective January 1, 2018, which resulted in a $0.5 million increase to Retained earnings. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | 19. Recent Accounting Pronouncements In June 2016, an accounting update was issued which changes the way entities recognize impairment of many financial assets by requiring immediate recognition of credit losses expected to occur over their remaining life. We are continuing to evaluate the expected impact on our consolidated financial statements and related disclosures. We will adopt the new standard effective January 1, 2020. In August 2018, an accounting update was issued which aims to improve the overall usefulness of disclosures to financial statement users and reduce unnecessary costs to companies when preparing defined benefit plan disclosures. 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, 2020. In August 2018, an accounting update was issued which aims to improve the overall usefulness of disclosures to financial statement users and reduce unnecessary costs to companies when preparing fair value measurement disclosures. We are currently evaluating the impact of this update. We will adopt the new standard effective January 1, 2020. In November 2018, an accounting update was issued which clarifies when transactions between collaborative arrangement participants are in the scope of ASC 606. The update also provides some guidance on presentation of transactions not in the scope of ASC 606. We are currently evaluating the impact of this update. We will adopt the new standard effective January 1, 2020. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2018. Certain quarterly results for 2018 contained within this report have been revised to correct immaterial errors, as described in Note 24 of Item 8 in that same Annual Report on Form 10-K. Effective January 1, 2019, we adopted the provisions of ASC 842, Leases effective date approach for transition as discussed in Note 3, Leases |
Reportable Segments (Tables)
Reportable Segments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Financial Data by Reporting Segment | The following tables show data by reportable segment, reconciled to consolidated totals included in the financial statements: Three months ended March 31, (in thousands) 2019 2018 Net sales Machine Clothing $144,334 $141,773 Albany Engineered Composites 107,039 81,830 Consolidated total $251,373 $223,603 Operating income/(loss) Machine Clothing $44,243 $26,942 Albany Engineered Composites 9,522 2,275 Corporate expenses (13,672) (12,213) Operating income $40,093 $17,004 Reconciling items: Interest income (599) (382) Interest expense 5,016 4,670 Other (income)/expense, net (1,208) 1,452 Income before income taxes $36,884 $11,264 |
Schedule of Restructuring Costs by Reporting Segment | The table below presents restructuring costs by reportable segment (also see Note 5): Three months ended (in thousands) 2019 2018 Machine Clothing $401 $8,352 Albany Engineered Composites 83 221 Total $484 $8,573 |
Schedule of Disaggregate Revenue for Each Business Segment | The following table disaggregates revenue for each reporting unit by timing of revenue recognition: For the three months ended March 31, 2019 (in thousands) Point in Time Revenue Over Time Revenue Total Machine Clothing $143,534 $800 $144,334 Albany Engineered Composites ASC - 55,442 55,442 Other AEC 6,245 45,352 51,597 Total Albany Engineered Composites 6,245 100,794 107,039 Total revenue $149,779 $101,594 $251,373 For the three months ended March 31, 2018 (in thousands) Point in Time Revenue Recognition Over Time Revenue Recognition Total Machine Clothing $140,973 $800 $141,773 Albany Engineered Composites ASC - 40,781 40,781 Other AEC 6,040 35,009 41,049 Total Albany Engineered Composites 6,040 75,790 81,830 Total revenue $147,013 $76,590 $223,603 |
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 three months ended March 31, (in thousands) 2019 2018 Americas PMC $75,341 $67,629 Eurasia PMC 51,438 53,811 Engineered Fabrics 17,555 20,333 Total Machine Clothing Net sales $144,334 $141,773 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Lessee Disclosure [Abstract] | |
Schedule of Cumulative Effects of Adoption of ASC 842 | The table below presents the cumulative effect of changes made to our December 31, 2018 Balance Sheet as a result of the adoption of ASC 842, Leases ALBANY INTERNATIONAL CORP. CONSOLIDATED BALANCE SHEET (in thousands, except share data) (unaudited) As previously Adjustments Opening ASSETS Cash and cash equivalents $197,755 $ - $197,755 Accounts receivable, net 223,176 - 223,176 Contract assets 57,447 - 57,447 Inventories 85,904 - 85,904 Income taxes prepaid and receivable 7,473 - 7,473 Prepaid expenses and other current assets 21,294 (370) 20,924 Total current assets 593,049 (370) 592,679 Property, plant and equipment, net 462,055 (6,144) 455,911 Intangibles, net 49,206 - 49,206 Goodwill 164,382 - 164,382 Deferred income taxes 62,622 (20) 62,602 Noncurrent receivables 45,061 - 45,061 Other assets 41,617 13,615 55,232 Total assets $1,417,992 $7,081 $1,425,073 LIABILITIES AND SHAREHOLDERS' EQUITY Notes and loans payable $- $- $- Accounts payable 52,246 - 52,246 Accrued liabilities 129,030 4,964 133,994 Current maturities of long-term debt 1,224 (1,206) 18 Income taxes payable 6,806 - 6,806 Total current liabilities 189,306 3,758 193,064 Long-term debt 523,707 (24,680) 499,027 Other noncurrent liabilities 88,277 27,968 116,245 Deferred taxes and other liabilities 8,422 - 8,422 Total liabilities 809,712 7,046 816,758 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 37,450,329 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 430,555 - 430,555 Retained earnings 589,645 35 589,680 Accumulated items of other comprehensive income: Translation adjustments (115,976) - (115,976) Pension and postretirement liability adjustments (47,109) - (47,109) Derivative valuation adjustment 4,697 - 4,697 Treasury stock (Class A), at cost 8,418,620 shares in 2018 and 8,431,335 shares in 2017 (256,603) - (256,603) Total Company shareholders' equity 605,249 35 605,284 Noncontrolling interest 3,031 - 3,031 Total equity 608,280 35 608,315 Total liabilities and shareholders' equity $1,417,992 $7,081 $1,425,073 |
Schedule of Components of Lease Expense | The components of lease expense were as follows: (in thousands) For the three Finance lease Amortization of right-of-use asset $ 253 Interest on lease liabilities 399 Operating lease Fixed lease cost 1,217 Variable lease cost 57 Short-term lease cost 332 Total lease expense $ 2,258 |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows: (in thousands) For the three Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,191 Operating cash flows from finance leases 399 Financing cash flows from finance leases 400 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 412 Finance leases - |
Schedule of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows: (in thousands) March 31, 2019 Operating leases Right of use assets included in Other assets $ 12,969 Lease liabilities included in Accrued liabilities $ 4,182 Other noncurrent liabilities 8,935 Total operating lease liabilities $ 13,117 Finance leases Right of use assets included in Property, plant and equipment, net $ 10,890 Lease liabilities included in Accrued liabilities $ 1,216 Other noncurrent liabilities 18,564 Total finance lease liabilities $ 19,780 |
Schedule of Additional Information Related to Leases | Additional information for leases existing at March 31, 2019 was as follows: Weighted average remaining lease term Operating leases 5 years Finance leases 11 years Weighted average discount rate Operating leases 6.1% Finance leases 8.0% |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities as of March 31, 2019 were as follows: (in thousands) Operating leases Finance lease Year ending December 31, 2019 $ 3,487 $ 2,057 2020 4,068 2,790 2021 2,033 2,790 2022 1,419 2,838 2023 1,346 3,004 Thereafter 3,047 15,512 Total lease payments 15,400 28,991 Less imputed interest (2,283) (9,211) Total $ 13,117 $ 19,780 |
Schedule of Maturities of SLC Finance Lease Liability | As of December 31, 2018, the following schedule presents future minimum annual payments under the SLC lease finance obligation, and the present value of the minimum payments: (in thousands) Year ending December 31, 2019 $ 2,451 2020 2,974 2021 2,990 2022 3,054 2023 3,277 Thereafter 18,930 Total minimum payments 33,676 Less imputed interest (7,790) Total $ 25,886 |
Pensions and Other Postretire_2
Pensions and Other Postretirement Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Benefit Plan Cost | The composition of the net periodic benefit cost for the three months ended March 31, 2019 and 2018, was as follows: Pension plans Other postretirement benefits (in thousands) 2019 2018 2019 2018 Components of net periodic benefit cost: Service cost $632 $699 $47 $58 Interest cost 1,794 1,820 528 507 Expected return on assets (2,057) (2,247) - - Amortization of prior service cost/(credit) 17 8 (1,122) (1,122) Amortization of net actuarial loss 564 558 557 739 Net periodic benefit cost $950 $838 $10 $182 |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, (in thousands) 2019 2018 Machine Clothing $401 $8,352 Albany Engineered Composites 83 221 Corporate expenses - - Total $484 $8,573 Three months ended March 31, 2019 Total Termination (in thousands) Machine Clothing $401 $401 Albany Engineered Composites 83 83 Corporate expenses - - Total $484 $484 Three months ended March 31, 2018 Total Termination (in thousands) Machine Clothing $8,352 $8,352 Albany Engineered Composites 221 221 Corporate expenses - - Total $8,573 $8,573 |
Schedule of Restructuring Liability | The table below presents the year-to-date changes in restructuring liabilities for 2019 and 2018, all of which related to termination costs: December 31, Restructuring Currency March 31, (in thousands) 2018 charges accrued Payments translation /other 2019 Total termination and other costs $5,570 $484 ($876) $23 $5,201 December 31, Restructuring Currency March 31, (in thousands) 2017 charges accrued Payments translation /other 2018 Total termination and other costs $3,326 $8,573 ($2,051) $25 $9,873 |
Other (Income)_Expense, net (Ta
Other (Income)/Expense, net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Schedule Other Expense/(Income), net | The components of Other (Income)/Expense, net are: Three months ended March 31, (in thousands) 2019 2018 Currency transaction (gains)/losses ($2,038) $690 Bank fees and amortization of debt issuance costs 109 108 Components of net periodic pension and postretirement cost other than service 281 263 Other 440 391 Total ($1,208) $1,452 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense | The following table presents components of income tax expense for the three months ended March 31, 2019 and 2018: Three months ended March 31, (in thousands, except percentages) 2019 2018 Income tax based on income from continuing operations, at estimated tax rates of 29.4% and 32.5%, respectively $10,847 $3,656 Income tax before discrete items 10,847 3,656 Discrete tax expense: Exercise of U.S. stock options (50) (123) Adjustments to prior period tax liabilities 194 (46) Provision for resolution of tax audits and contingencies, net (2,232) 5 Adjustment related to prior period change in opening valuation allowance (1,346) - Other 63 (127) Total income tax expense $7,476 $3,365 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 (in thousands, except market price and earnings per share) 2019 2018 Net income attributable to the Company $29,190 $7,662 Weighted average number of shares: Weighted average number of shares used in calculating basic net income per share 32,272 32,220 Effect of dilutive stock-based compensation plans: Stock options 13 16 Weighted average number of shares used in calculating diluted net income per share 32,285 32,236 Average market price of common stock used for calculation of dilutive shares $71.24 $63.86 Net income attributable to the Company per share: Basic $0.90 $0.24 Diluted $0.90 $0.24 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (AOCI) (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2018 to March 31, 2019: (in thousands) Translation Pension and Derivative Total Other December 31, 2018 ($115,976) ($47,109) $4,697 ($158,388) Other comprehensive income/(loss) before reclassifications (654) (152) (2,514) (3,320) Interest expense related to swaps reclassified to the Consolidated Statements of Income, net of tax - - (337) (337) Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income, net of tax - 11 - 11 Adjustment related to prior period change in opening valuation allowance - (1,346) - (1,346) Net current period other comprehensive income (654) (1,487) (2,851) (4,992) March 31, 2019 ($116,630) ($48,596) $1,846 ($163,380) The table below presents changes in the components of AOCI for the period December 31, 2017 to March 31, 2018: (in thousands) Translation Pension and Derivative Total Other December 31, 2017 ($87,318) ($50,536) $1,953 ($135,901) Other comprehensive income/(loss) before reclassifications 17,646 (141) 4,343 21,848 Interest expense related to swaps reclassified to the Consolidated Statements of Income, net of tax - - 137 137 Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income, net of tax - 128 - 128 Net current period other comprehensive income 17,646 (13) 4,480 22,113 March 31, 2018 ($69,672) ($50,549) $6,433 ($113,788) |
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 three months ended March 31, 2019 and 2018. Three months ended (in thousands) 2019 2018 Pretax Derivative valuation reclassified from Accumulated Other Comprehensive Income: Expense related to interest rate swaps included in Income before taxes (a) ($452) $180 Income tax effect 115 (43) Effect on net income due to items reclassified from Accumulated Other Comprehensive Income ($337) $137 Pretax pension and postretirement liabilities reclassified from Accumulated Other Comprehensive Income: Amortization of prior service credit (1,105) (1,114) Amortization of net actuarial loss 1,121 1,297 Total pretax amount reclassified (b) 16 183 Income tax effect (5) (55) Effect on net income due to items reclassified from Accumulated Other Comprehensive Income $11 $128 (a) Included in Interest expense, net, are payments related to the interest rate swap agreements and amortization of swap buyouts (see Notes 15 and 16). (b) These accumulated other comprehensive income components are included in the computation of net periodic cost (see Note 4). |
Noncontrolling Interest (Tables
Noncontrolling Interest (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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: Three months ended (in thousands) 2019 2018 Net income of Albany Safran Composites (ASC) $2,510 $2,681 Less: Return attributable to the Company's preferred holding 328 312 Net income of ASC available for common ownership $2,182 $2,369 Ownership percentage of noncontrolling shareholder 10% 10% Net income attributable to noncontrolling interest $218 $237 Noncontrolling interest, beginning of year $3,031 $3,247 Decrease attributable to 2018 adoption of ASC 606 - (327) Net income attributable to noncontrolling interest 218 237 Changes in other comprehensive income attributable to noncontrolling interest (8) (7) Noncontrolling interest $3,241 $3,150 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | As of March 31, 2019 and December 31, 2018, Accounts receivable consisted of the following: (in thousands) March 31, 2019 December 31, 2018 Trade and other accounts receivable $223,717 $211,244 Bank promissory notes 18,332 19,269 Allowance for doubtful accounts (7,922) (7,337) Accounts receivable, net $234,127 $223,176 |
Schedule of Contract Receivables | As of March 31, 2019 and December 31, 2018, Noncurrent receivables consisted of the following: (in thousands) March 31, 2019 December 31, 2018 Noncurrent receivables $45,354 $45,061 |
Contract Assets and Liabiliti_2
Contract Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Contract with Customer, Asset and Liability [Abstract] | |
Schedule of Contract Assets and Contract Liabilities | As of March 31, 2019 and December 31, 2018 Contract assets and contract liabilities consisted of the following: (in thousands) March 31, 2019 December 31, 2018 Contract assets $57,869 $57,447 Contract liabilities 9,865 9,025 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | As of March 31, 2019 and December 31, 2018, Inventories consisted of the following: (in thousands) March 31, December 31, Raw materials $47,820 $40,489 Work in process 37,582 33,181 Finished goods 16,977 12,234 Total inventories $102,379 $85,904 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 and December 31, 2018, were as follows: As of March 31, 2019 Weighted average Gross Accumulated Net carrying Amortized intangible assets: AEC trade names 15 $140 ($131) $9 AEC technology 15 370 (321) 49 Customer relationships 15 48,421 (9,690) 38,731 Customer contracts 6 17,471 (8,743) 8,728 Other intangibles 5 322 (193) 129 Net amortized intangible assets $66,724 ($19,078) $47,646 Unamortized intangible assets: MC Goodwill $67,708 $- $67,708 AEC Goodwill 95,730 - 95,730 Total unamortized intangible assets: $163,438 $- $163,438 As of December 31, 2018 Weighted average Gross Accumulated Net carrying Amortized intangible assets: AEC trade names 15 $140 ($129) $11 AEC technology 15 370 (314) 56 Customer relationships 15 48,421 (8,883) 39,538 Customer contracts 6 17,471 (8,015) 9,456 Other intangibles 5 322 (177) 145 Net amortized intangible assets $66,724 ($17,518) $49,206 Unamortized intangible assets: MC Goodwill $68,652 $- $68,652 AEC Goodwill 95,730 - 95,730 Total unamortized intangible assets: $164,382 $- $164,382 The changes in intangible assets, net and goodwill from December 31, 2018 to March 31, 2019, were as follows: (in thousands) December 31, Amortization Currency March 31,2019 Amortized intangible assets: AEC trade names $11 ($2) $- $9 AEC technology 56 (7) - 49 Customer relationships 39,538 (807) - 38,731 Customer contracts 9,456 (728) - 8,728 Other intangibles 145 (16) - 129 Net amortized intangible assets $49,206 ($1,560) $- $47,646 Unamortized intangible assets: MC Goodwill $68,652 $- ($944) $67,708 AEC Goodwill 95,730 - - 95,730 Total unamortized intangible assets: $164,382 $- ($944) $163,438 |
Schedule of Estimated Amortization Expense | Estimated amortization expense of intangibles for the years ending December 31, 2019 through 2023, is as follows: Annual amortization Year (in thousands) 2019 $6,234 2020 6,234 2021 6,163 2022 3,949 2023 3,228 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt, principally to banks and noteholders, consists of: (in thousands, except interest rates) March 31, December 31, 2018 Revolving credit agreement with borrowings outstanding at an end of period interest rate of 3.61% in 2019 and 3.69% in 2018 (including the effect of interest rate hedging transactions, as described below), due in 2022 $491,000 $499,000 Finance obligation - 25,886 Other debt, at an average end of period rate of 5.50% in both 2019 and 2018, due in varying amounts through 2021 41 45 Long-term debt 491,041 524,931 Less: current portion (19) (1,224) Long-term debt, net of current portion $491,022 $523,707 |
Fair-Value Measurements (Tables
Fair-Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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: March 31, 2019 December 31, 2018 Quoted Significant Quoted Significant (in thousands) (Level 1) (Level 2) (Level 1) (Level 2) Fair Value Assets: Cash equivalents $13,897 $- $14,234 $- Other Assets: Common stock of unaffiliated foreign public company (a) 743 - 731 - Interest rate swaps - 822 (b) - 4,548 (c) (a) Original cost basis $0.5 million. (b) Net of $26.7 million receivable floating leg and $25.9 million liability fixed leg. (c) Net of $32.0 million receivable floating leg and $27.5 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 (income)/expense, net in the Consolidated Statements of Income were as follows: Three months (in thousands) 2019 2018 Derivatives not designated as hedging instruments Foreign currency options (losses) $ - ($37) |
Contingencies (Tables)
Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 Claims New Claims Closing Number Amounts Paid 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 3,730 152 106 3,684 100 2019 (as of March 31) 3,684 13 17 3,688 $- |
Changes in Shareholders' Equi_2
Changes in Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Activity in Shareholders' Equity | The following table summarizes changes in Shareholders’ Equity for the period December 31, 2018 to March 31, 2019: (in thousands, except per share amounts) Common A and B Additional Retained Accumulated Treasury Noncontrolling Total December 31, 2018 $40 $430,555 $589,645 ($158,388) ($256,603) $3,031 $608,280 Adoption of accounting standards (a) - - 35 - - - 35 Net income - - 29,190 - - 218 29,408 Compensation and benefits paid or payable in shares - (547) - - - - (547) Options exercised - 44 - - - - 44 Dividends declared: Class A Common Stock, $0.18 per share - - (5,813) - - - (5,813) Class B Common Stock, $0.18 per share - - - - - - - Cumulative translation adjustments - - - (654) - (8) (662) Pension and postretirement liability adjustments - - - (1,487) - - (1,487) Derivative valuation adjustment - - - (2,851) - - (2,851) March 31, 2019 $40 $430,052 $613,057 ($163,380) ($256,603) $3,241 $626,407 The following table summarizes changes in Shareholders’ Equity for the period December 31, 2017 to March 31, 2018: (in thousands, except per share amounts) Common A and B Additional Retained Accumulated Treasury Noncontrolling Total December 31, 2017 $40 $428,423 $534,082 ($135,901) ($256,876) $3,247 $573,015 Adoption of accounting standards (b),(c) - - (5,068) - - (327) (5,395) Net income - - 7,662 - - 237 7,899 Compensation and benefits paid or payable in shares - 289 - - - - 289 Options exercised - 147 - - - - 147 Dividends declared: Class A Common Stock, $0.17 per share - - (5,483) - - - (5,483) Class B Common Stock, $0.17 per share - - - - - - - Cumulative translation adjustments - - - 17,646 - (7) 17,639 Pension and postretirement liability adjustments - - - (13) - - (13) Derivative valuation adjustment - - - 4,480 - - 4,480 March 31, 2018 $40 $428,859 $531,193 ($113,788) ($256,876) $3,150 $592,578 (a) As described in Note 3, the Company adopted ASC 842, Leases (b) 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. (c) The Company adopted ASU 2016-16 effective January 1, 2018, which resulted in a $0.5 million increase to Retained earnings. |
Reportable Segments (Narrative)
Reportable Segments (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 251,373 | $ 223,603 | |
Performance obligations | 90,000 | 115,000 | |
Remaining performance obligation expected to be recognized during 2019 | 53,000 | ||
Albany Safran Composites, LLC [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 56,000 | 40,800 | |
Invoiced receivables, unbilled receivables and contract receivables | 107,800 | $ 96,200 | |
Machine Clothing [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ 144,334 | $ 141,773 | |
Increase decrease in assets | 5,600 | ||
AEC assets [Member] | |||
Segment Reporting Information [Line Items] | |||
Increase decrease in assets | 500 | ||
Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Increase decrease in assets | $ 1,000 |
Reportable Segments (Schedule o
Reportable Segments (Schedule of Financial Data by Reporting Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 251,373 | $ 223,603 |
Operating income/(loss) | 40,093 | 17,004 |
Interest income | (599) | (382) |
Interest expense | 5,016 | 4,670 |
Other (income)/expense, net | (1,208) | 1,452 |
Income before income taxes | 36,884 | 11,264 |
Machine Clothing [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 144,334 | 141,773 |
Operating income/(loss) | 44,243 | 26,942 |
Albany Engineered Composites [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 107,039 | 81,830 |
Operating income/(loss) | 9,522 | 2,275 |
Corporate Expenses [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating income/(loss) | $ (13,672) | $ (12,213) |
Reportable Segments (Schedule_2
Reportable Segments (Schedule of Restructuring Costs by Reporting Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Restructuring expense | ||
Restructuring expenses, net | $ 484 | $ 8,573 |
Machine Clothing [Member] | ||
Restructuring expense | ||
Restructuring expenses, net | 401 | 8,352 |
Albany Engineered Composites [Member] | ||
Restructuring expense | ||
Restructuring expenses, net | $ 83 | $ 221 |
Reportable Segments (Schedule_3
Reportable Segments (Schedule of Disaggregate Revenue for Each Business Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Total Revenue | $ 251,373 | $ 223,603 |
Machine Clothing [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 144,334 | 141,773 |
Albany Engineered Composites ASC [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 55,442 | 40,781 |
Albany Engineered Composites Other AEC [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 51,597 | 41,049 |
Albany Engineered Composites [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 107,039 | 81,830 |
Point in Time Revenue Recognition [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 149,779 | 147,013 |
Point in Time Revenue Recognition [Member] | Machine Clothing [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 143,534 | 140,973 |
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 | 6,245 | 6,040 |
Point in Time Revenue Recognition [Member] | Albany Engineered Composites [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 6,245 | 6,040 |
Over Time Revenue Recognition [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 101,594 | 76,590 |
Over Time Revenue Recognition [Member] | Machine Clothing [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 800 | 800 |
Over Time Revenue Recognition [Member] | Albany Engineered Composites ASC [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 55,442 | 40,781 |
Over Time Revenue Recognition [Member] | Albany Engineered Composites Other AEC [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 45,352 | 35,009 |
Over Time Revenue Recognition [Member] | Albany Engineered Composites [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | $ 100,794 | $ 75,790 |
Reportable Segments (Schedule_4
Reportable Segments (Schedule of Disaggregate MC Segment Revenue by Significant Product or Service) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 251,373 | $ 223,603 |
Machine Clothing [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 144,334 | 141,773 |
Americas PMC [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 75,341 | 67,629 |
Eurasia PMC [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 51,438 | 53,811 |
Engineered Fabrics [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 17,555 | $ 20,333 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Lessee, Lease, Description [Line Items] | ||
Amount of Lease-related assets and liabilities pre-tax reduction to retained earnings | $ 300 | |
Lease expense | $ 2,258 | $ 2,100 |
Terminate lease | 1 year | |
Increase in gross cash outflows when control of additional manufacturing space commences during the fourth quarter of 2019 | $ 6,100 | |
2019 | 4,600 | |
2020 | 3,200 | |
2021 | 2,100 | |
2022 | 1,500 | |
2023 and thereafter | 6,500 | |
Salt Lake City, Utah [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Property, plant, and equipment, net value | 17,300 | |
Gross cost | 20,800 | |
Accumulated depreciation | $ 3,500 | |
Minimum [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 1 year | |
Maximum [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 11 years | |
Lease renewal term | 10 years |
Leases (Schedule of Cumulative
Leases (Schedule of Cumulative Effects of Adoption of ASC 842) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Assets | ||||
Cash and cash equivalents | $ 187,385 | $ 197,755 | $ 151,426 | $ 183,727 |
Accounts receivable, net | 234,127 | 223,176 | ||
Contract assets | 57,869 | 57,447 | ||
Inventories | 102,379 | 85,904 | ||
Income taxes prepaid and receivable | 6,818 | 7,473 | ||
Prepaid expenses and other current assets | 23,696 | 21,294 | ||
Total current assets | 612,274 | 593,049 | ||
Property, plant and equipment, net | 460,520 | 462,055 | ||
Intangibles, net | 47,646 | 49,206 | ||
Goodwill | 163,438 | 164,382 | ||
Deferred income taxes | 63,736 | 62,622 | ||
Noncurrent receivables | 45,354 | 45,061 | ||
Other assets | 50,313 | 41,617 | ||
Total assets | 1,443,281 | 1,417,992 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Accounts payable | 74,050 | 52,246 | ||
Accrued liabilities | 122,342 | 129,030 | ||
Current maturities of long-term debt | 19 | 1,224 | ||
Income taxes payable | 8,387 | 6,806 | ||
Total current liabilities | 204,798 | 189,306 | ||
Long-term debt | 491,022 | 523,707 | ||
Other noncurrent liabilities | 112,726 | 88,277 | ||
Deferred taxes and other liabilities | 8,328 | 8,422 | ||
Total liabilities | 816,874 | 809,712 | ||
SHAREHOLDERS' EQUITY | ||||
Preferred stock, par value $5.00 per share; authorized 2,000,000 shares; none issued | ||||
Additional paid in capital | 430,052 | 430,555 | ||
Retained earnings | 613,057 | 589,645 | ||
Accumulated items of other comprehensive income: | ||||
Translation adjustments | (116,630) | (115,976) | ||
Pension and postretirement liability adjustments | (48,596) | (47,109) | ||
Derivative valuation adjustment | 1,846 | 4,697 | ||
Treasury stock (Class A), at cost 0 shares in 2019 and 8,418,620 shares in 2018 | (256,603) | (256,603) | ||
Total Company shareholders' equity | 623,166 | 605,249 | ||
Noncontrolling interest | 3,241 | 3,031 | ||
Total equity | 626,407 | 608,280 | $ 592,578 | $ 57,301 |
Total liabilities and shareholders' equity | 1,443,281 | 1,417,992 | ||
Common Class A [Member] | ||||
SHAREHOLDERS' EQUITY | ||||
Common Stock | 37 | 37 | ||
Common Class B [Member] | ||||
SHAREHOLDERS' EQUITY | ||||
Common Stock | $ 3 | 3 | ||
Adjustments Increase/(Decrease) [Member] | ||||
Assets | ||||
Cash and cash equivalents | ||||
Accounts receivable, net | ||||
Contract assets | ||||
Inventories | ||||
Income taxes prepaid and receivable | ||||
Prepaid expenses and other current assets | (370) | |||
Total current assets | (370) | |||
Property, plant and equipment, net | (6,144) | |||
Intangibles, net | ||||
Goodwill | ||||
Deferred income taxes | (20) | |||
Noncurrent receivables | ||||
Other assets | 13,615 | |||
Total assets | 7,081 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Notes and loans payable | ||||
Accounts payable | ||||
Accrued liabilities | 4,964 | |||
Current maturities of long-term debt | (1,206) | |||
Income taxes payable | ||||
Total current liabilities | 3,758 | |||
Long-term debt | (24,680) | |||
Other noncurrent liabilities | 27,968 | |||
Deferred taxes and other liabilities | ||||
Total liabilities | 7,046 | |||
SHAREHOLDERS' EQUITY | ||||
Preferred stock, par value $5.00 per share; authorized 2,000,000 shares; none issued | ||||
Additional paid in capital | ||||
Retained earnings | 35 | |||
Accumulated items of other comprehensive income: | ||||
Translation adjustments | ||||
Pension and postretirement liability adjustments | ||||
Derivative valuation adjustment | ||||
Treasury stock (Class A), at cost 0 shares in 2019 and 8,418,620 shares in 2018 | ||||
Total Company shareholders' equity | 35 | |||
Noncontrolling interest | ||||
Total equity | 35 | |||
Total liabilities and shareholders' equity | 7,081 | |||
Opening balance, as adjusted [Member] | ||||
Assets | ||||
Cash and cash equivalents | 197,755 | |||
Accounts receivable, net | 223,176 | |||
Contract assets | 57,447 | |||
Inventories | 85,904 | |||
Income taxes prepaid and receivable | 7,473 | |||
Prepaid expenses and other current assets | 20,924 | |||
Total current assets | 592,679 | |||
Property, plant and equipment, net | 455,911 | |||
Intangibles, net | 49,206 | |||
Goodwill | 164,382 | |||
Deferred income taxes | 62,602 | |||
Noncurrent receivables | 45,061 | |||
Other assets | 55,232 | |||
Total assets | 1,425,073 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Notes and loans payable | ||||
Accounts payable | 52,246 | |||
Accrued liabilities | 133,994 | |||
Current maturities of long-term debt | 18 | |||
Income taxes payable | 6,806 | |||
Total current liabilities | 193,064 | |||
Long-term debt | 499,027 | |||
Other noncurrent liabilities | 116,245 | |||
Deferred taxes and other liabilities | 8,422 | |||
Total liabilities | 816,758 | |||
SHAREHOLDERS' EQUITY | ||||
Preferred stock, par value $5.00 per share; authorized 2,000,000 shares; none issued | ||||
Additional paid in capital | 430,555 | |||
Retained earnings | 589,680 | |||
Accumulated items of other comprehensive income: | ||||
Translation adjustments | (115,976) | |||
Pension and postretirement liability adjustments | (47,109) | |||
Derivative valuation adjustment | 4,697 | |||
Treasury stock (Class A), at cost 0 shares in 2019 and 8,418,620 shares in 2018 | (256,603) | |||
Total Company shareholders' equity | 605,284 | |||
Noncontrolling interest | 3,031 | |||
Total equity | 608,315 | |||
Total liabilities and shareholders' equity | $ 1,425,073 |
Leases (Schedule of Components
Leases (Schedule of Components of Lease Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Finance lease | ||
Amortization of right-of-use asset | $ 253 | |
Interest on lease liabilities | 399 | |
Operating lease | ||
Fixed lease cost | 1,217 | |
Variable lease cost | 57 | |
Short-term lease cost | 332 | |
Total lease expense | $ 2,258 | $ 2,100 |
Leases (Schedule of Supplementa
Leases (Schedule of Supplemental Cash Flow Information Related to Leases) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Lessee Disclosure [Abstract] | |
Operating cash flows from operating leases | $ 1,191 |
Operating cash flows from finance leases | 399 |
Financing cash flows from finance leases | 400 |
Right-of-use assets obtained in exchange for operating lease obligations | 412 |
Right-of-use assets obtained in exchange for finance lease obligations |
Leases (Schedule of Supplemen_2
Leases (Schedule of Supplemental Balance Sheet Information Related to Leases) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Operating leases | ||
Right of use assets included in Other assets | $ 12,969 | |
Total operating lease liabilities | 13,117 | |
Finance lease | ||
Right of use assets included in Property, plant and equipment, net | 10,890 | |
Total finance lease liabilities | 19,780 | $ 25,900 |
Accrued liabilities [Member] | ||
Operating leases | ||
Total operating lease liabilities | 4,182 | |
Finance lease | ||
Total finance lease liabilities | 1,216 | |
Other Noncurrent Liabilities [Member] | ||
Operating leases | ||
Total operating lease liabilities | 8,935 | |
Finance lease | ||
Total finance lease liabilities | $ 18,564 |
Leases (Schedule of Additional
Leases (Schedule of Additional Information Related to Leases) (Details) | Mar. 31, 2019 |
Lessee Disclosure [Abstract] | |
Weighted average remaining lease term - Operating leases | 5 years |
Weighted average remaining lease term - Finance leases | 11 years |
Weighted average discount rate - Operating leases | 6.10% |
Weighted average discount rate - Finance leases | 8.00% |
Leases (Schedule of Maturities
Leases (Schedule of Maturities of Lease Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Operating leases | ||
2019 | $ 3,487 | |
2020 | 4,068 | |
2021 | 2,033 | |
2022 | 1,419 | |
2023 | 1,346 | |
Thereafter | 3,047 | |
Total lease payments | 15,400 | |
Less imputed interest | (2,283) | |
Total | 13,117 | |
Finance lease | ||
2019 | 2,057 | |
2020 | 2,790 | |
2021 | 2,790 | |
2022 | 2,838 | |
2023 | 3,004 | |
Thereafter | 15,512 | |
Total lease payments | 28,991 | |
Less imputed interest | (9,211) | |
Total | 19,780 | $ 25,900 |
Salt Lake City, Utah [Member] | ||
Finance lease | ||
2019 | 2,451 | |
2020 | 2,974 | |
2021 | 2,990 | |
2022 | 3,054 | |
2023 | 3,277 | |
Thereafter | 18,930 | |
Total lease payments | 33,676 | |
Less imputed interest | (7,790) | |
Total | $ 25,886 |
Pensions and Other Postretire_3
Pensions and Other Postretirement Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 632 | $ 699 |
Interest cost | 1,794 | 1,820 |
Expected return on assets | (2,057) | (2,247) |
Amortization of prior service cost/(credit) | 17 | 8 |
Amortization of net actuarial loss | 564 | 558 |
Net periodic benefit cost | 950 | 838 |
Other Postretirement Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 47 | 58 |
Interest cost | 528 | 507 |
Expected return on assets | ||
Amortization of prior service cost/(credit) | (1,122) | (1,122) |
Amortization of net actuarial loss | 557 | 739 |
Net periodic benefit cost | $ 10 | $ 182 |
Restructuring (Narrative) (Deta
Restructuring (Narrative) (Details) $ in Thousands | 3 Months Ended | 27 Months Ended | |
Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2019USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | $ 400 | $ 12,100 | |
Number of positions eliminated to date | 50 | 50 | |
Severance and outplacement costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | $ 8,100 | ||
AEC assets [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | $ 100 | $ 200 |
Restructuring (Schedule of Rest
Restructuring (Schedule of Restructuring Charges) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Restructuring and other, net | ||
Restructuring expenses, net | $ 484 | $ 8,573 |
Machine Clothing [Member] | ||
Restructuring and other, net | ||
Restructuring expenses, net | 401 | 8,352 |
Albany Engineered Composites [Member] | ||
Restructuring and other, net | ||
Restructuring expenses, net | 83 | 221 |
Corporate Expenses [Member] | ||
Restructuring and other, net | ||
Restructuring expenses, net | ||
Termination and other costs [Member] | ||
Restructuring and other, net | ||
Restructuring expenses, net | 484 | 8,573 |
Termination and other costs [Member] | Machine Clothing [Member] | ||
Restructuring and other, net | ||
Restructuring expenses, net | 401 | 8,352 |
Termination and other costs [Member] | Albany Engineered Composites [Member] | ||
Restructuring and other, net | ||
Restructuring expenses, net | 83 | 221 |
Termination and other costs [Member] | Corporate Expenses [Member] | ||
Restructuring and other, net | ||
Restructuring expenses, net |
Restructuring (Schedule of Re_2
Restructuring (Schedule of Restructuring Liability) (Details) - Termination and other costs [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 5,570 | $ 3,326 |
Restructuring charges accrued | 484 | 8,573 |
Payments | (876) | (2,051) |
Currency translation/other | 23 | 25 |
Ending balance | $ 5,201 | $ 9,873 |
Other expense, net (Details)
Other expense, net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Other Income and Expenses [Abstract] | ||
Currency transaction (gains)/losses | $ (2,038) | $ 690 |
Bank fees and amortization of debt issuance costs | 109 | 108 |
Components of net periodic pension and postretirement cost other than service | 281 | 263 |
Other | 440 | 391 |
Total | $ (1,208) | $ 1,452 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Income Tax Disclosure [Line Items] | |||
Current year and prior year earnings of Company's foreign operations | $ 159,200 | ||
Foreign withholding taxes | 4,100 | ||
Federal tax benefit attributable to adjustments discovered | 2,200 | ||
State tax charge | $ 3,300 | ||
Estimated effective tax rate on continuing operations | 29.40% | 32.50% | |
Increase decrease in unrecognized tax benefits | $ 2,200 | ||
Discrete tax benefit | $ 2,200 | ||
Valuation allowance | $ 1,300 | ||
Earliest Tax Year [Member] | |||
Income Tax Disclosure [Line Items] | |||
Open tax years | 2007 | ||
Latest Tax Year [Member] | |||
Income Tax Disclosure [Line Items] | |||
Open tax years | 2019 |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Income Tax Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Income tax based on income from continuing operations, at estimated tax rates of 29.4% and 32.5%, respectively | $ 10,847 | $ 3,656 |
Income tax before discrete items | 10,847 | 3,656 |
Discrete tax expense: | ||
Exercise of U.S. Stock Options | (50) | (123) |
Adjustments to prior period tax liabilities | 194 | (46) |
Provision for resolution of tax audits and contingencies, net | (2,232) | 5 |
Adjustment related to prior period change in opening valuation allowance | (1,346) | |
Other | 63 | (127) |
Total income tax expense | $ 7,476 | $ 3,365 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Net income attributable to the Company | $ 29,190 | $ 7,662 |
Weighted average number of shares: | ||
Weighted average number of shares used in calculating basic net income per share | 32,272 | 32,220 |
Effect of dilutive stock-based compensation plans: | ||
Stock options | 13 | 16 |
Weighted average number of shares used in calculating diluted net income per share | 32,285 | 32,236 |
Average market price of common stock used for calculation of dilutive shares | $ 71.24 | $ 63.86 |
Net income attributable to the Company per share: | ||
Basic | 0.90 | 0.24 |
Diluted | $ 0.90 | $ 0.24 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (AOCI) (Schedule of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | $ 605,249 | |
Adjustment related to prior period change in opening valuation allowance | 1,300 | |
Ending balance | 623,166 | |
Translation adjustments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (115,976) | $ (87,318) |
Other comprehensive income/(loss) before reclassifications | (654) | 17,646 |
Interest expense related to swaps reclassified to the Consolidated Statements of Income, net of tax | ||
Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income, net of tax | ||
Adjustment related to prior period change in opening valuation allowance | ||
Net current period other comprehensive income | (654) | 17,646 |
Ending balance | (116,630) | (69,672) |
Pension and postretirement liability adjustments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (47,109) | (50,536) |
Other comprehensive income/(loss) before reclassifications | (152) | (141) |
Interest expense related to swaps reclassified to the Consolidated Statements of Income, net of tax | ||
Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income, net of tax | 11 | 128 |
Adjustment related to prior period change in opening valuation allowance | (1,346) | |
Net current period other comprehensive income | (1,487) | (13) |
Ending balance | (48,596) | (50,549) |
Derivative valuation adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | 4,697 | 1,953 |
Other comprehensive income/(loss) before reclassifications | (2,514) | 4,343 |
Interest expense related to swaps reclassified to the Consolidated Statements of Income, net of tax | (337) | 137 |
Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income, net of tax | ||
Adjustment related to prior period change in opening valuation allowance | ||
Net current period other comprehensive income | (2,851) | 4,480 |
Ending balance | 1,846 | 6,433 |
Total Other Comprehensive Income [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (158,388) | (135,901) |
Other comprehensive income/(loss) before reclassifications | (3,320) | 21,848 |
Interest expense related to swaps reclassified to the Consolidated Statements of Income, net of tax | (337) | 137 |
Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income, net of tax | 11 | 128 |
Adjustment related to prior period change in opening valuation allowance | (1,346) | |
Net current period other comprehensive income | (4,992) | 22,113 |
Ending balance | $ (163,380) | $ (113,788) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (AOCI) (Schedule of Items Reclassified to Statement of Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Expense related to interest rate swaps included in Income before taxes | $ 5,016 | $ 4,670 | |
Total pretax amount reclassified | 36,884 | 11,264 | |
Income tax effect | 7,476 | 3,365 | |
Effect on net income due to items reclassified from Accumulated Other Comprehensive Income | (29,190) | (7,662) | |
Prior service credit | (1,105) | (1,114) | |
Net actuarial loss | 1,121 | 1,297 | |
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 before taxes | [1] | (452) | 180 |
Income tax effect | 115 | (43) | |
Effect on net income due to items reclassified from Accumulated Other Comprehensive Income | (337) | 137 | |
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 | [2] | 16 | 183 |
Income tax effect | (5) | (55) | |
Effect on net income due to items reclassified from Accumulated Other Comprehensive Income | $ 11 | $ 128 | |
[1] | Included in Interest expense, net, are payments related to the interest rate swap agreements and amortization of swap buyouts (see Notes 15 and 16). | ||
[2] | These accumulated other comprehensive income components are included in the computation of net periodic cost (see Note 4). |
Noncontrolling Interest (Detail
Noncontrolling Interest (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Oct. 31, 2013 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Noncontrolling Interest [Line Items] | ||||
Net income of Albany Safran Composites (ASC) | $ 29,408 | $ 7,899 | ||
Net income of ASC available for common ownership | 29,190 | 7,662 | ||
Net income attributable to noncontrolling interest | 218 | 237 | ||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Noncontrolling interest, beginning of year | 3,031 | |||
Net income attributable to noncontrolling interest | 218 | $ 237 | ||
Noncontrolling interest | $ 3,241 | $ 3,031 | ||
Albany Safran Composites, LLC [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Interest in subsidiary sold | 10.00% | |||
Cash contribution | $ 28,000 | |||
Albany's remaining interest | 90.00% | |||
Ownership percentage of noncontrolling shareholder | 10.00% | 10.00% | ||
Albany Safran Composites, LLC [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Net income of Albany Safran Composites (ASC) | $ 2,510 | $ 2,681 | ||
Less: Return attributable to the Company's preferred holding | 328 | 312 | ||
Net income of ASC available for common ownership | 2,182 | 2,369 | ||
Net income attributable to noncontrolling interest | 218 | 237 | ||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Noncontrolling interest, beginning of year | 3,031 | 3,247 | 3,247 | |
Decrease attributable to 2018 adoption of ASC 606 | (327) | |||
Net income attributable to noncontrolling interest | 218 | 237 | ||
Changes in other comprehensive income attributable to noncontrolling interest | (8) | (7) | ||
Noncontrolling interest | $ 3,241 | $ 3,150 | $ 3,031 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Trade and other accounts receivable | $ 223,717 | $ 211,244 |
Bank promissory notes | 18,332 | 19,269 |
Allowance for doubtful accounts | (7,922) | (7,337) |
Accounts receivable, net | 234,127 | 223,176 |
Noncurrent receivables | $ 45,354 | $ 45,061 |
Interest rate | 2.00% |
Contract Assets and Liabiliti_3
Contract Assets and Liabilities (Narrative) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Contract with Customer, Asset and Liability [Abstract] | |
Increase in contract assets | $ 400 |
Increase in contract liabilities | 800 |
Revenue recognized | $ 3,700 |
Contract Assets and Liabiliti_4
Contract Assets and Liabilities (Schedule of Contract Assets and Contract Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Contract with Customer, Asset and Liability [Abstract] | ||
Contract assets | $ 57,869 | $ 57,447 |
Contract liabilities | $ 9,865 | $ 9,025 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 47,820 | $ 40,489 |
Work in process | 37,582 | 33,181 |
Finished goods | 16,977 | 12,234 |
Total inventories | $ 102,379 | $ 85,904 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Schedule of intangible assets and goodwill) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Amortized intangible assets: | ||
Gross carrying value | $ 66,724 | $ 66,724 |
Accumulated amortization | (19,078) | (17,518) |
Net carrying amount | 47,646 | 49,206 |
Goodwill | ||
Gross carrying value | 163,438 | 164,382 |
Accumulated amortization | ||
Net carrying amount | 163,438 | 164,382 |
AEC Trade Names [Member] | ||
Amortized intangible assets: | ||
Gross carrying value | 140 | 140 |
Accumulated amortization | (131) | (129) |
Net carrying amount | $ 9 | $ 11 |
Goodwill | ||
Amortization life in years | 15 years | 15 years |
AEC Technology [Member] | ||
Amortized intangible assets: | ||
Gross carrying value | $ 370 | $ 370 |
Accumulated amortization | (321) | (314) |
Net carrying amount | $ 49 | $ 56 |
Goodwill | ||
Amortization life in years | 15 years | 15 years |
Customer Relationships [Member] | ||
Amortized intangible assets: | ||
Gross carrying value | $ 48,421 | $ 48,421 |
Accumulated amortization | (9,690) | (8,883) |
Net carrying amount | $ 38,731 | $ 39,538 |
Goodwill | ||
Amortization life in years | 15 years | 15 years |
Customer Contracts [Member] | ||
Amortized intangible assets: | ||
Gross carrying value | $ 17,471 | $ 17,471 |
Accumulated amortization | (8,743) | (8,015) |
Net carrying amount | $ 8,728 | $ 9,456 |
Goodwill | ||
Amortization life in years | 6 years | 6 years |
Other Intangible [Member] | ||
Amortized intangible assets: | ||
Gross carrying value | $ 322 | $ 322 |
Accumulated amortization | (193) | (177) |
Net carrying amount | $ 129 | $ 145 |
Goodwill | ||
Amortization life in years | 5 years | 5 years |
MC Goodwill [Member] | ||
Goodwill | ||
Gross carrying value | $ 67,708 | $ 68,652 |
Accumulated amortization | ||
Net carrying amount | 67,708 | 68,652 |
AEC Goodwill [Member] | ||
Goodwill | ||
Gross carrying value | 95,730 | 95,730 |
Accumulated amortization | ||
Net carrying amount | $ 95,730 | $ 95,730 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Schedule of changes in intangible assets and goodwill) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Amortized intangible assets: | |
Beginning Balance | $ 49,206 |
Amortization | (1,560) |
Currency Translation | |
Ending Balance | 47,646 |
Goodwill | |
Beginning Balance | 164,382 |
Amortization | |
Currency Translation | (944) |
Ending Balance | 163,438 |
AEC Trade Names [Member] | |
Amortized intangible assets: | |
Beginning Balance | 11 |
Amortization | (2) |
Currency Translation | |
Ending Balance | 9 |
AEC Technology [Member] | |
Amortized intangible assets: | |
Beginning Balance | 56 |
Amortization | (7) |
Currency Translation | |
Ending Balance | 49 |
Customer Relationships [Member] | |
Amortized intangible assets: | |
Beginning Balance | 39,538 |
Amortization | (807) |
Currency Translation | |
Ending Balance | 38,731 |
Customer Contracts [Member] | |
Amortized intangible assets: | |
Beginning Balance | 9,456 |
Amortization | (728) |
Currency Translation | |
Ending Balance | 8,728 |
Other Intangible [Member] | |
Amortized intangible assets: | |
Beginning Balance | 145 |
Amortization | (16) |
Currency Translation | |
Ending Balance | 129 |
MC Goodwill [Member] | |
Goodwill | |
Beginning Balance | 68,652 |
Amortization | |
Currency Translation | (944) |
Ending Balance | 67,708 |
AEC Goodwill [Member] | |
Goodwill | |
Beginning Balance | 95,730 |
Amortization | |
Currency Translation | |
Ending Balance | $ 95,730 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Schedule of Estimated Amortization Expense) (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2019 | $ 6,234 |
2020 | 6,234 |
2021 | 6,163 |
2022 | 3,949 |
2023 | $ 3,228 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||||||
Mar. 31, 2019 | Mar. 18, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Nov. 28, 2017 | Nov. 27, 2017 | Nov. 07, 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 | 1.79 | ||||||||
Interest coverage ratio | 12.08 | ||||||||
Finance lease obligation | $ 19,780 | $ 25,900 | |||||||
Credit Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 3.61% | 3.69% | 3.69% | ||||||
Amount of credit facility | $ 685,000 | $ 550,000 | |||||||
Amount of credit facility outstanding | $ 491,000 | ||||||||
Additional amount that can be borrowed on facility | $ 194,000 | ||||||||
LIBOR spread | 1.375% | ||||||||
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 | 3.61% | 2.11% | |||||||
LIBOR rate | 2.49% | ||||||||
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% |
Financial Instruments (Schedule
Financial Instruments (Schedule of Long-Term Debt) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | |
Debt Instrument [Line Items] | |||
Long-term debt | $ 491,041 | $ 524,931 | |
Less: current portion | (19) | (1,224) | |
Long-term debt, net of current portion | 491,022 | 523,707 | |
Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 491,000 | $ 499,000 | |
Interest rate | 3.61% | 3.69% | 3.69% |
Maturity date range, end | Dec. 31, 2022 | ||
Finance lease obligation [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 25,886 | ||
Other Debt [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 41 | $ 45 | |
Interest rate | 5.50% | ||
Maturity date range, end | Dec. 31, 2021 |
Fair-Value Measurements (Narrat
Fair-Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Derivative [Line Items] | ||
Interest expense (income) | $ (4,417) | $ (4,288) |
Interest Rate Current Swap [Member] | ||
Derivative [Line Items] | ||
Interest expense (income) | (300) | 500 |
Interest Rate Swap Buyouts [Member] | ||
Derivative [Line Items] | ||
Interest expense (income) | $ 100 | $ 200 |
Fair-Value Measurements (Schedu
Fair-Value Measurements (Schedule of Fair Value of Financial Assets and Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |||
Derivative asset: | |||||
Common stock of foreign public company, original cost | $ 500 | $ 500 | |||
Interest Rate Current Swap [Member] | |||||
Derivative asset: | |||||
Liability for fixed rate leg | 26,700 | 32,000 | |||
Receivable for floating rate leg | 25,900 | 27,500 | |||
Quoted Prices in Active Markets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Assets: | |||||
Cash equivalents | 13,897 | 14,234 | |||
Common stock of unaffiliated foreign public company | [1] | 743 | 731 | ||
Liabilities: | |||||
Interest rate swaps | |||||
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Assets: | |||||
Cash equivalents | |||||
Common stock of unaffiliated foreign public company | [1] | ||||
Liabilities: | |||||
Interest rate swaps | $ 822 | [2] | $ 4,548 | [3] | |
[1] | Original cost basis $0.5 million. | ||||
[2] | Net of $26.7 million receivable floating leg and $25.9 million liability fixed leg. | ||||
[3] | Net of $32.0 million receivable floating leg and $27.5 million liability fixed leg. |
Fair-Value Measurements (Sche_2
Fair-Value Measurements (Schedule of (Losses)/Gains on Changes in Fair Value of Derivative Instruments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | ||
Derivatives not designated as hedging instruments Foreign currency options (losses) | $ (37) |
Contingencies (Narrative) (Deta
Contingencies (Narrative) (Details) - Asbestos Litigation [Member] $ in Thousands | Mar. 31, 2019USD ($)claims |
Loss Contingencies [Line Items] | |
Total resolved claims, by means of settlement or dismissal | claims | 37,759 |
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 | 7,709 |
Resolution costs paid by insurance carrier | 100.00% |
Contingencies (Schedule of Chan
Contingencies (Schedule of Changes in Claims) (Details) - Asbestos Litigation [Member] $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2019USD ($)claims | Dec. 31, 2018USD ($)claims | Dec. 31, 2017USD ($)claims | Dec. 31, 2016USD ($)claims | Dec. 31, 2015USD ($)claims | Dec. 31, 2014USD ($)claims | |
Loss Contingencies [Line Items] | ||||||
Opening Number of Claims | 3,684 | 3,730 | 3,745 | 3,791 | 3,821 | 4,299 |
Claims Dismissed, Settled, or Resolved | 13 | 152 | 105 | 148 | 116 | 625 |
New Claims | 17 | 106 | 90 | 102 | 86 | 147 |
Closing Number of Claims | 3,688 | 3,684 | 3,730 | 3,745 | 3,791 | 3,821 |
Amounts Paid (thousands) to Settle or Resolve | $ | $ 100 | $ 55 | $ 758 | $ 164 | $ 437 |
Changes in Shareholders' Equi_3
Changes in Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Dividends declared per share | $ 0.18 | $ 0.17 | |
Common Class A [Member] | |||
Dividends declared per share | 0.18 | 0.17 | |
Common Class B [Member] | |||
Dividends declared per share | $ 0.18 | $ 0.17 | |
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 | ||
ASC 842 [Member] | |||
Increase decrease in retained earnings | $ 100 |
Changes in Shareholders' Equi_4
Changes in Shareholders' Equity (Schedule of Activity in Shareholders' Equity) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | |||
Balance | $ 608,280 | $ 57,301 | ||
Adoption of accounting standards | 35 | [1] | (5,395) | [2],[3] |
Net income | 29,408 | 7,899 | ||
Compensation and benefits paid or payable in shares | (547) | 289 | ||
Options exercised | 44 | 147 | ||
Dividends declared | (5,813) | (5,483) | ||
Cumulative translation adjustments | (662) | 17,639 | ||
Pension and postretirement liability adjustments | (1,487) | (13) | ||
Derivative valuation adjustment | (2,851) | 4,480 | ||
Balance | 626,407 | 592,578 | ||
Common Stock [Member] | ||||
Balance | 40 | 40 | ||
Adoption of accounting standards | [1] | [2],[3] | ||
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 | 430,555 | 428,423 | ||
Adoption of accounting standards | [1] | [2],[3] | ||
Net income | ||||
Compensation and benefits paid or payable in shares | (547) | 289 | ||
Options exercised | 44 | 147 | ||
Dividends declared | ||||
Cumulative translation adjustments | ||||
Pension and postretirement liability adjustments | ||||
Derivative valuation adjustment | ||||
Balance | 430,052 | 428,859 | ||
Retained earnings [Member] | ||||
Balance | 589,645 | 534,082 | ||
Adoption of accounting standards | 35 | [1] | (5,068) | [2],[3] |
Net income | 29,190 | 7,662 | ||
Compensation and benefits paid or payable in shares | ||||
Options exercised | ||||
Dividends declared | ||||
Cumulative translation adjustments | ||||
Pension and postretirement liability adjustments | ||||
Derivative valuation adjustment | ||||
Balance | 613,057 | 531,193 | ||
Retained earnings [Member] | Common Class A [Member] | ||||
Dividends declared | (5,813) | (5,483) | ||
Retained earnings [Member] | Common Class B [Member] | ||||
Dividends declared | ||||
Total Other Comprehensive Income [Member] | ||||
Balance | (158,388) | (135,901) | ||
Adoption of accounting standards | [1] | [2],[3] | ||
Net income | ||||
Compensation and benefits paid or payable in shares | ||||
Options exercised | ||||
Dividends declared | ||||
Cumulative translation adjustments | (654) | 17,646 | ||
Pension and postretirement liability adjustments | (1,487) | (13) | ||
Derivative valuation adjustment | (2,851) | 4,480 | ||
Balance | 163,380 | (113,788) | ||
Treasury stock [Member] | ||||
Balance | (256,603) | (256,876) | ||
Adoption of accounting standards | [1] | [2],[3] | ||
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 | (256,603) | (256,876) | ||
Noncontrolling Interest [Member] | ||||
Balance | 3,031 | 3,247 | ||
Adoption of accounting standards | [1] | (327) | [2],[3] | |
Net income | 218 | 237 | ||
Compensation and benefits paid or payable in shares | ||||
Options exercised | ||||
Dividends declared | ||||
Cumulative translation adjustments | (8) | (7) | ||
Pension and postretirement liability adjustments | ||||
Derivative valuation adjustment | ||||
Balance | $ 3,241 | $ 3,150 | ||
[1] | As described in Note 3, the Company adopted ASC 842, Leases effective January 1, 2019, which resulted in an increase to Retained earnings of less than $0.1 million. | |||
[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. | |||
[3] | The Company adopted ASU 2016-16 effective January 1, 2018, which resulted in a $0.5 million increase to Retained earnings. |