Document and Entity Information
Document and Entity Information - USD ($) shares in Millions, $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 19, 2020 | Jun. 30, 2019 | |
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Entity File Number | 1-10026 | ||
Entity Registrant Name | ALBANY INTERNATIONAL CORP. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 14-0462060 | ||
Entity Address, Address Line One | 216 Airport Drive | ||
Entity Address, City or Town | Rochester | ||
Entity Address, State or Province | NH | ||
Entity Address, Postal Zip Code | 03867 | ||
City Area Code | 603 | ||
Local Phone Number | 330-5850 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2.5 | ||
Documents Incorporated By Reference Text Block | Portions of the Registrant’s Proxy Statement for the Annual Meeting of Shareholders to be held on May 14, 2020. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000819793 | ||
Current Fiscal Year End Date | --12-31 | ||
Common Class A [Member] | |||
Title of 12(b) Security | Class A Common Stock, $0.001 par value per share | ||
Trading Symbol | AIN | ||
Name of Exchange on which Security is Registered | NYSE | ||
Entity Common Stock, Shares Outstanding | 30.7 | ||
Common Class B [Member] | |||
Title of 12(b) Security | Class B Common Stock, $0.001 par value per share | ||
Trading Symbol | AIN | ||
Name of Exchange on which Security is Registered | NYSE | ||
Entity Common Stock, Shares Outstanding | 1.6 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Net sales | $ 1,054,132 | $ 982,479 | $ 863,717 |
Cost of goods sold | 656,431 | 632,730 | 567,434 |
Gross profit | 397,701 | 349,749 | 296,283 |
Selling, general and administrative expenses | 163,651 | 156,189 | 162,942 |
Technical and research expenses | 37,569 | 40,582 | 41,174 |
Restructuring expenses, net | 2,905 | 15,570 | 13,491 |
Operating income | 193,576 | 137,408 | 78,676 |
Interest income | (2,729) | (2,118) | (1,511) |
Interest expense | 19,650 | 20,242 | 18,602 |
Other (income) / expense, net | (1,557) | 4,037 | 6,877 |
Income before income taxes | 178,212 | 115,247 | 54,708 |
Income tax expense | 44,829 | 32,228 | 22,123 |
Net income | 133,383 | 83,019 | 32,585 |
Net income/(loss) attributable to the noncontrolling interest | 985 | 128 | (526) |
Net income attributable to the Company | $ 132,398 | $ 82,891 | $ 33,111 |
Earnings per share attributable to Company shareholders - Basic | $ 4.10 | $ 2.57 | $ 1.03 |
Earnings per share attributable to Company shareholders - Diluted | 4.10 | 2.57 | 1.03 |
Dividends declared per share, Class A and Class B | $ 0.73 | $ 0.69 | $ 0.68 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 133,383 | $ 83,019 | $ 32,585 |
Other comprehensive income/(loss), before tax: | |||
Foreign currency translation adjustments | (8,747) | (27,383) | 44,162 |
Pension/postretirement settlements and curtailments | 450 | 1,494 | |
Pension/postretirement plan remeasurement | (1,796) | 851 | 2,955 |
Amortization of pension liability adjustments: | |||
Prior service credit | (4,420) | (4,454) | (4,453) |
Net actuarial loss | 4,480 | 5,175 | 5,439 |
Payments and amortization related to interest rate swaps included in earnings | (1,011) | (146) | 1,490 |
Derivative valuation adjustment | (9,512) | 3,832 | 325 |
Income taxes related to items of other comprehensive income/(loss): | |||
Pension/postretirement settlements and curtailments | (74) | (348) | |
Pension/postretirement plan remeasurement | 359 | (408) | (918) |
Amortization of pension liability adjustments | (13) | (158) | (22) |
Payments and amortization related to interest rate swaps included in earnings | 259 | 37 | (566) |
Derivative valuation adjustment | 2,432 | (979) | (124) |
Comprehensive income | 115,790 | 60,532 | 80,873 |
Comprehensive income/(loss) attributable to the noncontrolling interest | 975 | 111 | (520) |
Comprehensive income attributable to the Company | $ 114,815 | $ 60,421 | $ 81,393 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 195,540 | $ 197,755 |
Accounts receivable, net | 218,271 | 223,176 |
Contract assets | 79,070 | 57,447 |
Inventories | 95,149 | 85,904 |
Income taxes prepaid and receivable | 6,162 | 7,473 |
Prepaid expenses and other current assets | 24,142 | 21,294 |
Total current assets | 618,334 | 593,049 |
Property, plant and equipment, net | 466,462 | 462,055 |
Intangibles, net | 52,892 | 49,206 |
Goodwill | 180,934 | 164,382 |
Deferred income taxes | 51,621 | 62,622 |
Noncurrent receivables | 41,234 | 45,061 |
Other assets | 62,891 | 41,617 |
Total assets | 1,474,368 | 1,417,992 |
Current liabilities: | ||
Accounts payable | 65,203 | 52,246 |
Accrued liabilities | 125,885 | 129,030 |
Current maturities of long-term debt | 20 | 1,224 |
Income taxes payable | 11,611 | 6,806 |
Total current liabilities | 202,719 | 189,306 |
Long-term debt | 424,009 | 523,707 |
Other noncurrent liabilities | 132,725 | 88,277 |
Deferred taxes and other liabilities | 12,226 | 8,422 |
Total liabilities | 771,679 | 809,712 |
Commitments and Contingencies | ||
Shareholders' Equity | ||
Preferred stock, par value $5.00 per share; authorized 2,000,000 shares; none issued | ||
Additional paid-in capital | 432,518 | 430,555 |
Retained earnings | 698,496 | 589,645 |
Accumulated items of other comprehensive income: | ||
Translation adjustments | (122,852) | (115,976) |
Pension and postretirement liability adjustments | (49,994) | (47,109) |
Derivative valuation adjustment | (3,135) | 4,697 |
Treasury stock (Class A), at cost 8,408,770 shares in 2019 and 8,418,620 shares in 2018 | (256,391) | (256,603) |
Total Company shareholders' equity | 698,683 | 605,249 |
Noncontrolling interest | 4,006 | 3,031 |
Total equity | 702,689 | 608,280 |
Total liabilities and shareholders' equity | 1,474,368 | 1,417,992 |
Common Class A [Member] | ||
Shareholders' Equity | ||
Common Stock | 39 | 37 |
Common Class B [Member] | ||
Shareholders' Equity | ||
Common Stock | $ 2 | $ 3 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Preferred Stock, par value per share | $ 5 | $ 5 | |
Preferred Stock, shares authorized | 2,000,000 | 2,000,000 | |
Preferred Stock, shares issued | 0 | 0 | |
Common Stock, shares outstanding | 32,300,000 | 32,300,000 | 32,200,000 |
Treasury stock, shares | 8,408,770 | 8,418,620 | |
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 | 39,098,792 | 37,450,329 | |
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 | 1,617,998 | 3,233,998 | |
Common Stock, shares outstanding | 1,617,998 | 3,233,998 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Activities | |||
Net income | $ 133,383 | $ 83,019 | $ 32,585 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 62,085 | 68,800 | 61,517 |
Amortization | 8,710 | 10,236 | 10,439 |
Change in deferred taxes and other liabilities | 13,702 | 8,972 | (1,264) |
Provision for write-off of property, plant and equipment | 3,119 | 3,707 | 2,870 |
Non-cash interest expense | 605 | 459 | 660 |
Write-off of pension liability adjustment due to settlement/curtailment | 450 | 1,494 | |
Compensation and benefits paid or payable in Class A Common Stock | 2,063 | 2,203 | 2,133 |
Write-off of intangible assets in a discontinued product line | 4,149 | ||
Changes in operating assets and liabilities that provided/(used) cash, net of impact of business acquisition: | |||
Accounts receivable | 9,587 | (19,139) | (21,859) |
Contract assets | (19,199) | (10,267) | |
Inventories | (8,923) | (968) | 3,090 |
Prepaid expenses and other current assets | (2,291) | (5,815) | (4,989) |
Income taxes prepaid and receivable | 1,390 | (1,402) | (941) |
Accounts payable | 10,524 | 9,340 | 2,910 |
Accrued liabilities | (7,393) | 8,209 | 5,303 |
Income taxes payable | 3,979 | (824) | (799) |
Noncurrent receivable | (1,341) | (12,249) | (18,766) |
Noncurrent liabilities | (6,573) | (5,479) | (10,145) |
Other, net | (3,525) | (7,811) | (2,677) |
Net cash provided by operating activities | 200,352 | 132,485 | 64,216 |
Investing Activities | |||
Purchase of business, net of cash acquired | (30,793) | ||
Purchases of property, plant and equipment | (67,358) | (81,579) | (85,510) |
Purchased software | (597) | (1,307) | (2,127) |
Net cash used in investing activities | (98,748) | (82,886) | (87,637) |
Financing Activities | |||
Proceeds from borrowings | 45,000 | 26,031 | 115,334 |
Principal payments on debt | (120,017) | (29,913) | (84,047) |
Principal payments on finance lease liabilities | (1,180) | ||
Debt acquisition costs | (2,130) | ||
Cash received to settle swap agreements | 6,346 | ||
Taxes paid in lieu of share issuance | (971) | (1,652) | (1,364) |
Proceeds from options exercised | 112 | 202 | 597 |
Dividends paid | (23,251) | (21,926) | (21,869) |
Net cash (used in)/provided by financing activities | (100,307) | (27,258) | 12,867 |
Effect of exchange rate changes on cash and cash equivalents | (3,512) | (8,313) | 12,539 |
Increase/(decrease) in cash and cash equivalents | (2,215) | 14,028 | 1,985 |
Cash and cash equivalents at beginning of year | 197,755 | 183,727 | 181,742 |
Cash and cash equivalents at end of year | $ 195,540 | $ 197,755 | $ 183,727 |
Accounting Policies
Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Accounting Policies | 1. Accounting Policies Basis of Consolidation The consolidated financial statements include the accounts of Albany International Corp. and its subsidiaries (the Company, Albany, we, us, or our) after elimination of intercompany transactions. We have a 50 percent interest in an entity in Russia. The consolidated financial statements include our original investment in the entity, plus our share of undistributed earnings or losses, in the account “Other Assets.” The Company owns 90 percent of the common equity of Albany Safran Composites, LLC (ASC) which is reported within the Albany Engineered Composites (AEC) segment. Additional information regarding that entity is included in Note 10. Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are used in accounting for, among other things, revenue recognition, contract profitability, allowances for doubtful accounts, rebates and sales allowances, inventory allowances, pension benefits, goodwill and intangible assets, contingencies, income tax related balances, and other accruals. Our estimates are based on historical experience and on various other assumptions, which are believed to be reasonable under the circumstances. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may differ from those estimates. Estimates and assumptions are reviewed periodically, and the effects of any revisions are reflected in the consolidated financial statements in the period they are determined to be necessary. Revenue Recognition Effective January 1, 2018, the Company adopted the provisions of ASC 606, Revenue from contracts with customers In our Machine Clothing (MC) business segment, prior to 2018, we recorded revenue from the sale of a product when persuasive evidence of an arrangement existed, delivery had occurred, title was transferred, the selling price was fixed, and collectability was reasonably assured. Under the new standard, we recognize MC revenue when we satisfy our performance obligations related to the manufacture and delivery of a product, which, in certain cases, results in earlier recognition of revenue associated with these contracts. In our Albany Engineered Composites (AEC) business segment, revenue from a number of long-term contracts was, prior to 2018, recorded on the basis of the units-of-delivery method, which is considered an output method. Under the new standard, revenue from most of these contracts is recognized over time using an input method as the measure of progress, which generally results in earlier recognition of revenue. Prior to adoption of the new standard, the classification of revenue in excess of progress billings on long-term contracts was included in Accounts receivable. Under the new standard, such assets are considered Contract assets, which are rights to consideration that are conditional on something other than the passage of time, such as completion of remaining performance obligations. As a result of adoption of the new standard, such assets were reclassified at transition from Accounts receivable to Contract assets. In addition, under the new standard, we are required to limit our estimate of contract values to the period of the legally enforceable contract, which in many cases is considerably shorter than the contract period used under the former standard. While certain contracts are expected to be 52 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 1. Accounting Policies — (continued) profitable over the course of the program life when including expected renewals, under the new standard, our estimate of contract revenues and costs is limited to the estimated value of enforceable rights and obligations, excluding anticipated renewals. In some cases, this shorter contract period may result in a loss contract provision at contract inception. Expected losses on projects include losses on contract options that are probable of exercise, excluding profitable options that often follow. Products and services provided under long-term contracts represent a significant portion of sales in the Albany Engineered Composites segment. We have a contract with a major customer for which revenue is recognized under a cost-plus-fee agreement. We also have fixed price long-term contracts, for which we use the percentage of completion (actual cost to estimated cost) method. That method requires significant judgment and estimation, which could be considerably different if the underlying circumstances were to change. When adjustments in estimated contract revenues or costs are required, any changes from prior estimates are included in earnings in the period the change occurs. The sum of net adjustments to the estimated profitability of long-term contracts increased AEC operating income by $10.8 million in 2019, decreased AEC operating income by $2.0 million in 2018, and decreased AEC operating income by $11.5 million in 2017. The favorable effects in 2019 were largely attributable to efficiency improvements during the ramp-up of several programs. The unfavorable effects in 2017 included charges on the BR725 and A380 programs. For contracts with anticipated losses, a provision for the entire amount of the estimated remaining loss is charged against income in the period in which the loss becomes known. Contract losses are determined considering all direct and indirect contract costs, exclusive of any selling, general or administrative cost allocations, which are treated as period expenses. Additional accounting policies related to revenue from contracts with customers are set forth in Note 2. We limit the concentration of credit risk in receivables by closely monitoring credit and collection policies. We record allowances for sales returns as a deduction in the computation of net sales. Such provisions are recorded on the basis of written communication with customers and/or historical experience. Any value added taxes that are imposed on sales transactions are excluded from net sales. Cost of Goods Sold Cost of goods sold includes the cost of materials, provisions for obsolete inventories, labor and supplies, shipping and handling costs, depreciation of manufacturing facilities and equipment, purchasing, receiving, warehousing, and other expenses. Cost of goods sold also includes provisions for loss contracts and charges for the write-off of inventories that result from an exit activity. Selling, General, Administrative, Technical, and Research Expenses Selling, general, administrative, and technical expenses are primarily comprised of wages, benefits, travel, professional fees, revaluation of trade foreign currency balances, and other costs, and are expensed as incurred. Selling expense includes provisions for bad debts and costs related to contract acquisition. Research expenses are charged to operations as incurred and consist primarily of compensation, supplies, and professional fees incurred in connection with intellectual property. Total company research expense was $26.9 million in 2019, $29.8 million in 2018, and $30.7 million in 2017. The Albany Engineered Composites segment participates in both company-sponsored, and customer-funded research and development. Some customer-funded research and development may be on a cost-sharing basis and considered to be a collaborative arrangement, in which case both parties are active participants and are exposed to the risks and rewards dependent on the success of the activity. In such cases, amounts charged to the collaborating entity are credited against research and development expense. For customer-funded research and development in which we anticipate funding to exceed expenses, we include amounts charged to the customer in Net sales, while expenses are included in Cost of goods sold. 53 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 1. Accounting Policies — (continued) Restructuring Expense We may incur expenses related to exiting a line of business or restructuring of our operations, which could include employee termination costs, costs to consolidate or close facilities, or costs to terminate contractual relationships. Restructuring expenses may also include impairment of Property, plant and equipment, as described below under “Property, Plant and Equipment”. Employee termination costs include the severance pay and social costs for periods after employee service is completed. Termination costs related to an ongoing benefit arrangement are recognized when the amount becomes probable and estimable. Termination costs related to a one-time benefit arrangement are recognized at the communication date to employees. Costs related to contract termination, relocation of employees, outplacement and the consolidation or the closure of facilities, are recognized when incurred. Income Taxes Deferred income taxes are recognized for the tax consequences of temporary differences and tax attributes by applying enacted statutory tax rates applicable for future years to differences between existing assets and liabilities for financial reporting and income tax return purposes. The effect of tax rate changes on deferred taxes is recognized in the income tax provision in the period that includes the enactment date. A valuation allowance is established, as needed, to reduce net deferred tax assets to the amount expected to be realized. In the event it becomes more likely than not that some or all of the deferred tax asset valuation allowances will not be needed, the valuation allowance will be adjusted. In the ordinary course of business there is inherent uncertainty in quantifying our income tax positions. We assess our income tax positions and record tax benefits for all years subject to examination based upon management’s evaluation of the facts, circumstances, and information available at the reporting date. For those tax positions where it is more likely than not that a tax benefit will be sustained, we have determined the amount of the tax benefit to be recognized by estimating the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more-likely-than-not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. Where applicable, associated interest and penalties have also been recognized. We recognize accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. Earnings Per Share Basic net income or loss per share is computed using the weighted average number of shares of Class A Common Stock and Class B Common Stock outstanding during each year. Diluted net income per share includes the effect of all potentially dilutive securities. If we report a net loss from continuing operations, the diluted loss is equal to the basic earnings per share calculation. Translation of Financial Statements Assets and liabilities of non-U.S. operations are translated at year-end rates of exchange, and the income statement accounts are translated at average exchange rates. Gains or losses resulting from translating non-U.S. currency financial statements into U.S. dollars are recorded in other comprehensive income and accumulated in Shareholders’ equity in the caption “Translation adjustments”. Selling, general, and administrative expenses include foreign currency gains and losses resulting from third party balances, such as receivables and payables, which are denominated in a currency other than the entity’s functional currency. Gains or losses resulting from cash and short-term intercompany loans and balances denominated in a currency other than the entity’s functional currency, and foreign currency options are generally included in Other expense, net. Gains and losses on long-term intercompany loans not intended to be repaid in the foreseeable future are recorded in other comprehensive income. There were no such intercompany loans during 2019 and 2018. 54 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 1. Accounting Policies — (continued) The following table summarizes foreign currency transaction gains and losses recognized in the income statement: (in thousands) 2019 2018 2017 (Gains)/losses included in: Selling, general, and administrative expenses $ 1,281 $( 274 ) $ 4,127 Other expense, net ( 4,471 ) ( 67 ) 4,634 Total transaction (gains)/losses $( 3,190 ) $( 341 ) $ 8,761 The following table presents foreign currency gains on long-term intercompany loans that were recognized in Other comprehensive income: (in thousands) 2019 2018 2017 Gain on long-term intercompany loans $ — $ — $ 1,867 Cash and Cash Equivalents Cash and cash equivalents consist of cash and highly liquid short-term investments with original maturities of three months or less. Accounts Receivable Accounts receivable includes trade receivables and bank promissory notes. In connection with certain sales in Asia Pacific, 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 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 could be required. The Company also has Noncurrent receivables in the AEC segment that represent revenue earned which have extended payment terms. The Noncurrent receivables will be invoiced to the customer, with 2% interest, over a 10-year period starting in 2020. See additional information set forth in Notes 2 and 11. Contract Assets and Contract 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 payment becomes unconditional. Contract liabilities include advance payments and billings in excess of revenue recognized. Contract liabilities are included in Accrued liabilities in the Consolidated Balance Sheet. See additional information set forth in Notes 2 and 12. 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. Write-downs of inventories are charged to Cost of goods sold. 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. 55 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 1. Accounting Policies — (continued) See additional information set forth in Notes 2 and 13. Leases Effective January 1, 2019, we adopted the provisions of ASC 842, Leases, using the effective date (or modified retrospective) approach for transition. Under this transition method, periods prior to 2019 have not been restated, and the cumulative effect of initially applying the new standard was recorded as an adjustment to Retained earnings at January 1, 2019. 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 under the new standard is the recognition of ROU assets and lease liabilities by lessees for those leases classified as operating leases. Under the new 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 of January 1, 2019. We elected the available package of practical expedients, which permitted us to not 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 related to this standard. The most significant impacts 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, as well as 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, transitional 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. We have certain lease agreements with lease and non-lease components. For most of these 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 other leases, such as for vehicles, we apply a portfolio approach. Such new leases are classified as financing or operating, with classification affecting the pattern and classification of expense recognition in the income statement. Expenses related to operating leases are recognized on a straight-line basis, while those determined to be financing leases are 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, while finance lease ROU assets are included in Property, plant, and equipment, net. Lease liabilities for both operating and finance leases are included in Accrued liabilities and Other noncurrent liabilities in the Consolidated Balance Sheets. See additional information set forth in Note 20. 56 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 1. Accounting Policies — (continued) Property, Plant and Equipment Property, plant and equipment are recorded at cost, or if acquired as part of a business combination, at fair value. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets for financial reporting purposes. In some cases, accelerated methods are used for income tax purposes. Significant additions or improvements extending assets’ useful lives are capitalized; normal maintenance and repair costs are expensed as incurred. The cost of fully depreciated assets remaining in use is included in the respective asset and accumulated depreciation accounts. When items are sold or retired, related gains or losses are included in net income. Computer software purchased for internal use, at cost, is amortized on a straight-line basis over five to eight years, depending on the nature of the asset, after being placed into service, and is included in property, plant, and equipment. We capitalize internal and external costs incurred related to the software development stage. Capitalized salaries, travel, and consulting costs related to the software development were immaterial in 2019 and 2018. We review the carrying value of property, plant and equipment and other long-lived 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. See additional information set forth in Note 14. Goodwill, Intangibles, and Other 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. See additional information set forth in Note 15. Intangible assets acquired in a business combination are recognized at fair value and amortized to Cost of goods sold or Selling, general and administrative expenses over the estimated useful lives of the assets. We review amortizable intangible asset groups for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. We have an investment in a company in Russia that is accounted for under the equity method of accounting and is included in Other assets, amounting to $0.5 million in 2019 and $0.4 million in 2018. We perform regular reviews of the financial condition of the investee to determine if our investment is other than temporarily impaired. If the financial condition of the investee were to no longer support their valuation, we would record an impairment provision. For some AEC contracts, we perform pre-production or nonrecurring engineering services. These costs are normally considered a fulfillment activity, rather than a performance obligation. Fulfillment activities that create resources that will be used in satisfying performance obligations in the future, and are expected to be recovered, are capitalized to Other assets, which is classified as a noncurrent asset in the Consolidated Balance Sheets. The capitalized costs are amortized into Cost of goods sold over the period over which the asset is expected to contribute to future cash flows, which includes anticipated renewal periods. Included in Other assets is $21.3 million in 2019 and $14.2 million in 2018 for defined benefit pension plans where plan assets exceed the projected benefit obligations. Other assets also includes financial assets of $0.8 million in 2019 and $5.3 million in 2018. See additional information set forth in Note 18. 57 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 1. Accounting Policies — (continued) Stock-Based Compensation We have stock-based compensation plans for key employees. Stock options are accounted for in accordance with applicable guidance for the modified prospective transition method of share-based payments. No options have been granted since 2002. See additional information set forth in Note 22. Derivatives We use derivatives from time to time to reduce potentially large adverse effects from changes in currency exchange rates and interest rates. We monitor our exposure to these risks and evaluate, on an ongoing basis, the risk of potentially large adverse effects versus the costs associated with hedging such risks. We may use interest rate swaps in the management of interest rate exposures and foreign currency derivatives in the management of foreign currency exposure related to assets and liabilities (including net investments in subsidiaries located outside the U.S.) denominated in foreign currencies. When we enter into a derivative contract, we make a determination whether the transaction is deemed to be a hedge for accounting purposes. For those contracts deemed to be a hedge, we formally document the relationship between the derivative instrument and the risk being hedged. In this documentation, we specifically identify the asset, liability, forecasted transaction, cash flow, or net investment that has been designated as the hedged item, and evaluate whether the derivative instrument is expected to reduce the risks associated with the hedged item. To the extent these criteria are not met, we do not use hedge accounting for the derivative. All derivative contracts are recorded at fair value, as a net asset or a net liability. Changes in the fair value of the hedge are recorded, net of tax, in other comprehensive income. For transactions that are designated as hedges, we perform an evaluation of the effectiveness of the hedge. We measure the effectiveness of hedging relationships both at inception and on an ongoing basis. For derivatives that are designated and qualify as hedges of net investments in subsidiaries located outside the United States, changes in the fair value of derivatives are reported in other comprehensive income as part of the Cumulative translation adjustment. Pension and Postretirement Benefit Plans As described in Note 4, we have pension and postretirement benefit plans covering substantially all employees. Our defined benefit pension plan in the United States was closed to new participants as of October 1998 and, as of February 2009, benefits accrued under this plan were frozen. We have liabilities for postretirement benefits in the U.S. and Canada. Substantially all of the liability relates to the U.S. plan. Effective January 2005, our postretirement benefit plan in the U.S. was closed to new participants, except for certain life insurance benefits. In September 2008, we changed the cost sharing arrangement under this program such that increases in health care costs are the responsibility of plan participants and, in August 2013, we reduced the life insurance benefit for retirees and eliminated that benefit for active employees. The pension plans are generally trusteed or insured, and accrued amounts are funded as required in accordance with governing laws and regulations. The annual expense and liabilities recognized for defined benefit pension plans and postretirement benefit plans are developed from actuarial valuations. Inherent in these valuations are key assumptions, including discount rates and expected return on plan assets, which are updated on an annual basis. We consider current market conditions, including changes in interest rates, in making these assumptions. Discount rate assumptions are based on the population of plan participants and a mixture of high-quality fixed-income investments with durations that match expected future payments. The assumption for expected return on plan assets is based on historical and expected returns on various categories of plan assets. 58 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 1. Accounting Policies — (continued) Recent Accounting Pronouncements In June 2016, an accounting update was issued which replaces the incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The measurement of expected credit losses under the current expected losses (CECL) methodology is applicable to financial assets measured at amortized cost, which includes Short-term securities, Trade receivables, Contract assets, and Noncurrent receivables. The Company is required to estimate a CECL allowance using relevant available information. Historical credit loss experience will provide the basis for the estimation of expected credit losses, and adjustments may be made for differences in current asset-specific risk characteristics. A CECL allowance for credit losses will be measured on a collective (pool) basis when similar risk characteristics exist. Where financial instruments do not share risk characteristics, they will be evaluated on an individual basis. The principal effect on the Company’s financial statements will be an increase in credit loss reserve on financial instruments, which the Company does not expect to be material. The Company will adopt the new standard using a modified retrospective transition approach as of January 1, 2020, which will be our date of initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2020. Additionally, the Company is evaluating changes to our accounting policies, processes and internal controls to ensure we meet the standard’s reporting and disclosure requirements. 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 will adopt the new standard as of January 1, 2020 and do not expect the adoption to significantly impact our financial statements. 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 plan to adopt the new standard effective January 1, 2021. We do not expect the adoption of this update to significantly impact our financial statements. 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 will adopt the new standard as of January 1, 2020 and do not expect the adoption to significantly impact our financial statements. In December 2019, an accounting update was issued which removes certain exceptions for recognizing deferred taxes for investments and performing intra-period tax allocations. The update also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. We plan to adopt the new standard as of January 1, 2021 and we are assessing the potential impact on our financial statements. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | 2. Revenue Recognition Effective January 1, 2018, the Company adopted the provisions of ASC 606, Revenue from contracts with customers 59 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 2. Revenue Recognition — (continued) For periods ending after December 31, 2017, we account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and collectability of consideration is probable. Revenue is measured based on the consideration specified in the contract with the customer, and excludes any amounts collected on behalf of third parties. We recognize revenue when we satisfy a performance obligation by transferring control over a product or service, or a series of distinct goods or services, to the customer which occurs either at a point in time, or over time, depending on the performance obligation in the contract. A performance obligation is a promise in the contract to transfer a distinct good or service to the customer, and is the unit of account under ASC 606. “Control” refers to the ability to direct the use of, and obtain substantially all of the remaining benefits from the product. A contract’s transaction price is allocated to each material distinct performance obligation and is recognized as revenue when, or as, the performance obligation is satisfied. In our MC segment, our primary performance obligation in most contracts is to provide solution-based, custom-designed fabrics and belts to the customer. We satisfy this performance obligation upon transferring control of the product to the customer at a specific point in time. Contracts with customers in the MC segment have various terms that can affect the point in time when revenue is recognized. Generally, the customer obtains control when the product has been received at the location specified by the customer, at which time the only remaining obligations under the contract may be fulfillment costs, in the form of shipping and handling, which are accrued when control of the product is transferred. In the MC segment, contracts with certain customers may also obligate us to provide various product-related services at no additional cost to the customer. When this obligation is material in the context of the contract with the customer, we recognize a separate performance obligation and allocate revenue to those services on a relative estimated standalone selling price basis. The standalone selling price for these services is determined based upon an analysis of the services offered and an assessment of the price we might charge for such services as a separate offering. As we typically provide such services on a stand-ready basis, we recognize this revenue over time. Revenue allocated to such service performance obligations is the only MC revenue that is recognized over time. In our AEC segment, we primarily enter into contracts to manufacture and deliver highly engineered advanced composite products to our customers. A significant portion of AEC revenue is earned under short duration, firm-fixed-price orders that are placed under a master agreement containing general terms and conditions applicable to all orders placed under the master agreement. To determine the proper revenue recognition method, we evaluate whether two or more orders or contracts should be combined and accounted for as one single contract, and whether the combined or single contract contains single or multiple performance obligations. This evaluation requires significant judgment, and the decision to combine a group of contracts, or to allocate revenue from the combined or single contract among multiple performance obligations, could have a significant impact on the amount of revenue and profit recorded in a given period. For most AEC contracts, the nature of our promise (or our performance obligation) to the customer is to manage the contract and provide a significant service of integrating a complex set of tasks and components into a single project or capability, which will often result in the delivery of multiple highly interdependent and interrelated units. At the inception of a contract, we estimate the transaction price based on our current rights, and do not contemplate future modifications (including unexercised options) or follow-on contracts until they become legally enforceable. Many AEC contracts are subsequently modified to include changes in specifications, requirements or price, which may create new or change existing enforceable rights and obligations. Depending on the nature of the modification, we consider whether to account for the modification as an adjustment to the existing contract or as a separate contract. Generally, we are able to conclude that such modifications are not distinct from the existing contract, due to the significant integration of the obligations, and the interrelated nature of tasks, provided for in the modification and the existing contract. Therefore, such modifications are accounted for as if they were part of the existing contract, and we accumulate the values of such modifications in our estimates of contract value. 60 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 2. Revenue Recognition — (continued) Revenue is recognized over time for a large portion of our contracts in AEC as most of our contracts have provisions that, under the guidance in ASC 606, are deemed to transfer control to the customer over time. Revenue is recognized based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress toward completion requires judgment and is based on the nature of the products or services to be provided. We generally use the cost-to-cost measure of progress for our contracts because it best depicts the transfer of assets to the customer which occurs as we incur costs to produce the contract deliverables. Under the cost-to-cost measure of progress, the extent of progress toward completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenue, including profit, is recorded proportionally as costs are incurred. Accounting for long-term contracts requires significant judgment and estimation, which could be considerably different if the underlying circumstances were to change. When any adjustments of estimated contract revenue or costs are required, any changes from prior estimates are included in revenues or earnings in the period in which the change occurs. In other AEC contracts, revenue is recognized at a point in time because the products are offered to multiple customers, or we do not have an enforceable right to payment until the product is shipped or delivered to the location specified by the customer in the contract. AEC’s largest source of revenue is derived from the LEAP contract (see Note 10) under a cost-plus-fee agreement. Beginning in 2018, the fee is variable based on our success in achieving certain cost targets. Revenue is recognized over time as costs are incurred. Under this contract, there is significant judgment involved in determining applicable contract costs and expected margin, and therefore, in determining the amount of revenue to be recognized. Payment terms granted to MC and AEC customers reflect general competitive practices. Terms vary with product, competitive conditions, and the country of operation. The following table provides a summary of the composition of each business segment: Segment Product Group Principal Product or Service Principal Locations Machine Clothing (MC) Machine Clothing Paper machine clothing: Permeable and impermeable belts used in the manufacture of paper, paperboard, tissue and towel, and pulp World-wide Engineered fabrics: Belts used in the manufacture of nonwovens, fiber cement and several other industrial applications Albany Engineered Composites (AEC) Albany Safran Composites (ASC) 3D-woven, injected composite components for aircraft engines Rochester, NH Commercy, France Queretaro, Mexico Airframe and engine Components (Other AEC) Composite airframe and engine components for military and commercial aircraft Salt Lake City, UT Boerne, TX Queretaro, Mexico Kaiserslautern, Germany 61 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 2. Revenue Recognition — (continued) We disaggregate revenue earned from contracts with customers for each of our business segments and product groups based on the timing of revenue recognition, and groupings used for internal review purposes. The following table presents disaggregated revenue for each product group by timing of revenue recognition: For the year ended December 31, 2019 (in thousands) Point in Time Revenue Recognition Over Time Revenue Recognition Total Machine Clothing $ 598,054 $ 3,200 $ 601,254 Albany Engineered Composites ASC — 220,188 220,188 Other AEC 28,584 204,106 232,690 Total Albany Engineered Composites 28,584 424,294 452,878 Total revenue $ 626,638 $ 427,494 $ 1,054,132 For the year ended December 31, 2018 (in thousands) Point in Time Revenue Recognition Over Time Revenue Recognition Total Machine Clothing $ 608,658 $ 3,200 $ 611,858 Albany Engineered Composites ASC — 182,699 182,699 Other AEC 21,614 166,308 187,922 Total Albany Engineered Composites 21,614 349,007 370,621 Total revenue $ 630,272 $ 352,207 $ 982,479 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 years ended December 31, (in thousands) 2019 2018 Americas PMC $ 316,355 $ 303,768 Eurasia PMC 210,961 227,493 Engineered Fabrics 73,938 80,597 Total Machine Clothing Net sales $ 601,254 $ 611,858 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 $82 million as of both December 31, 2019 and 2018, and related primarily to firm contracts in the AEC segment. Of the remaining performance obligations as of December 31, 2019 we expect to recognize as revenue approximately $67 million during 2020, with the remainder to be recognized in 2021. 62 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 3. Reportable Segments and Geographic Data 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 accounting policies of the segments are the same as those described in Note 1. Corporate expenses include wages and benefits for corporate headquarters personnel, costs related to information systems development and support, and professional fees related to legal, audit, and other activities. These costs are not allocated to the reportable segments because the decision-making for these functions lies outside of the segments. Machine Clothing: The Machine Clothing (“MC”) segment supplies permeable and impermeable belts used in the manufacture of paper, paperboard, tissue and towel nonwovens, fiber cement and several other industrial applications. 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. Albany Engineered Composites The Albany Engineered Composites (“AEC”) segment, including Albany Safran Composites, LLC (“ASC”), in which our customer SAFRAN Group (“Safran”) owns a 10 percent noncontrolling interest, provides highly engineered, advanced composite structures to customers in the 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. In 2019, Safran leased manufacturing space from AEC for the GE9X program. Rent paid by Safran under this lease amount to $0.2 million in 2019. AEC Net sales to Safran were $226.8 million in 2019, $186.3 million in 2018, and $119.2 million in 2017. The total of Accounts receivable, Contract assets and Noncurrent receivable due from Safran amounted to $114.5 million and $96.2 million as of December 31, 2019 and 2018, respectively. Other significant programs served by AEC include the F-35, Boeing 787, Sikorsky CH-53K and JASSM, as well as the fan case for the GE9X engine. In 2019, approximately 25 percent of AEC sales were related to U.S. government contracts or programs. 63 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 3. Reportable Segments and Geographic Data — (continued) As described in Note 2, effective January 1, 2018, the Company adopted the provisions of ASC 606, “Revenue from contracts with customers”, using the cumulative effect method for translation. Periods prior to 2018 have not been restated. The following tables show data by reportable segment, reconciled to consolidated totals included in the financial statements: (in thousands) 2019 2018 2017 Year ended December 31, 2018 Increase/(decrease) attributable to application of ASC 606 Net Sales Machine Clothing $ 601,254 $ 611,858 $ 590,357 $( 3,970 ) Albany Engineered Composites 452,878 370,621 273,360 ( 3,150 ) Consolidated total $ 1,054,132 $ 982,479 $ 863,717 $( 7,120 ) Depreciation and amortization Machine Clothing 21,875 30,813 33,527 — Albany Engineered Composites 44,670 43,205 33,533 — Corporate expenses 4,250 5,018 4,896 — Consolidated total $ 70,795 $ 79,036 $ 71,956 $ — Operating income/(loss) Machine Clothing 191,965 169,836 153,980 ( 1,605 ) Albany Engineered Composites 55,520 16,647 ( 31,657 ) 4,930 Corporate expenses ( 53,909 ) ( 49,075 ) ( 43,647 ) — Operating income $ 193,576 $ 137,408 $ 78,676 $ 3,325 Reconciling items: Interest income ( 2,729 ) ( 2,118 ) ( 1,511 ) — Interest expense 19,650 20,242 18,602 — Other expense, net ( 1,557 ) 4,037 6,877 — Income before income taxes $ 178,212 $ 115,247 $ 54,708 $ 3,325 The table below presents restructuring costs by reportable segment (also see Note 5): (in thousands) 2019 2018 2017 Restructuring expenses, net Machine Clothing $ 1,129 $ 12,278 $ 3,429 Albany Engineered Composites 1,833 3,048 10,062 Corporate expenses ( 57 ) 244 — Consolidated total $ 2,905 $ 15,570 $ 13,491 In the measurement of assets utilized by each reportable segment, we include Inventories, Accounts receivable, net, Contract assets, Noncurrent receivables, Property, plant and equipment, net, Intangibles, net and Goodwill. On November 20, 2019, the Company acquired CirComp GmbH, resulting in a $35.3 million increase in AEC assets. 64 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 3. Reportable Segments and Geographic Data — (continued) The following table presents assets and capital expenditures by reportable segment: (in thousands) 2019 2018 2017 Segment assets Machine Clothing $ 441,072 $ 453,836 $ 464,468 Albany Engineered Composites 693,799 633,394 584,076 Reconciling items: Cash 195,540 197,755 183,727 Income taxes prepaid, receivable and deferred 57,783 70,095 74,914 Prepaid and Other assets 86,174 62,912 54,013 Consolidated total assets $ 1,474,368 $ 1,417,992 $ 1,361,198 Capital expenditures and purchased software Machine Clothing $ 16,707 $ 20,230 $ 20,522 Albany Engineered Composites 48,753 60,121 63,865 Corporate expenses 2,495 2,535 3,250 Consolidated total $ 67,955 $ 82,886 $ 87,637 At the January 1, 2018 date of adoption of ASC 606, MC assets increased by $22.5 million, and AEC assets decreased by $14.1 million. Excluded from segment assets are cash, tax related assets, prepaid and other current assets, and certain other assets not directly associated with segment operations. In 2018, AEC finalized a modification to the lease of its primary manufacturing facility in Salt Lake City, Utah, which increased the manufacturing space and extended the minimum lease period until December 31, 2029. The lease modification resulted in a non-cash increase of $12.7 million to both Property, plant and equipment, net, and to Long-term debt in the Consolidated Balance Sheets in 2018. Effective January 1, 2019, we adopted the provisions of ASC 842, Leases, which resulted in changes to the amount and classification of the associated assets and liabilities, as depicted in Note 20. Due to the non-cash nature of the modification and subsequent adoption of the new Lease accounting standard, changes during both 2018 and 2019 are excluded from amounts reported in the Consolidated Statements of Cash Flows. 65 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 3. Reportable Segments and Geographic Data — (continued) The following table shows data by geographic area. Net sales are based on the location of the operation recording the final sale to the customer. Net sales recorded by our entity in Switzerland are derived from products sold throughout Europe and Asia, and are invoiced in various currencies. (in thousands) 2019 2018 2017 Net sales United States $ 574,063 $ 519,349 $ 459,525 Switzerland 146,571 157,339 147,601 France 91,783 85,386 57,195 Mexico 73,039 48,534 31,902 Brazil 64,666 62,093 60,535 China 48,586 50,923 48,920 Other countries 55,424 58,855 58,039 Consolidated total $ 1,054,132 $ 982,479 $ 863,717 Property, plant and equipment, at cost, net United States $ 275,965 $ 272,584 $ 252,639 Mexico 45,640 40,343 22,981 France 43,986 50,245 58,196 China 41,799 48,686 61,840 United Kingdom 11,047 12,042 14,256 South Korea 10,795 12,396 14,558 Germany (a) 10,577 27 39 Canada 9,509 8,154 10,230 Other countries 17,144 17,578 19,563 Consolidated total $ 466,462 $ 462,055 $ 454,302 (a) In 2019, the Company acquired CirComp GmbH, which resulted in an increase in Property, plant and equipment of $10.6 million. |
Reportable Segments and Geograp
Reportable Segments and Geographic Data | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Reportable Segments and Geographic Data | ALBANY INTERNATIONAL CORP. |
Pensions and Other Postretireme
Pensions and Other Postretirement Benefit Plans | 12 Months Ended |
Dec. 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, as of February 2009, benefits accrued under this plan were frozen. As a result of the freeze, employees covered by the pension plan will receive, at retirement, benefits accrued through February 2009, but no benefits accrue after that date. Benefit accruals under the U.S. Supplemental Executive Retirement Plan (“SERP”), which is an unfunded plan, were similarly frozen. The U.S. pension plan accounts for 45 percent of consolidated pension plan assets, and 46 percent of consolidated pension plan obligations. The eligibility, benefit formulas, and contribution requirements for plans outside of the U.S. vary by location. The December 31, 2019 benefit obligations for the U.S. pension and postretirement plans were calculated using the Pri-2012 mortality table with MP-2017 generational projection. For U.S. pension funding purposes, the Company uses the plan’s IRS-basis current liability as its funding target, which is determined based on mandated assumptions. 66 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 4. Pensions and Other Postretirement Benefit Plans — (continued) Other Postretirement Benefits In addition to providing pension benefits, the Company provides various medical, dental, and life insurance benefits for certain retired United States employees. U.S. employees hired prior to 2005 may become eligible for these benefits if they reach normal retirement age while working for the Company. Benefits provided under this plan are subject to change. Retirees share in the cost of these benefits. Any new employees hired after January 2005 who wish to be covered under this plan will be responsible for the full cost of such benefits. In September 2008, we changed the cost-sharing arrangement under this program such that increases in health care costs are the responsibility of plan participants. In August 2013, we reduced the life insurance benefit for retirees and eliminated the benefit for active employees. The Company also provides certain postretirement life insurance benefits to retired employees in Canada. As of December 31, 2019, the accrued postretirement liability was $53.2 million in the U.S. and $1.2 million in 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. Accounting guidance requires the recognition of the funded status of each defined benefit and other postretirement benefit plan. Each overfunded plan is recognized as an asset and each underfunded plan is recognized as a liability. Company pension plan data for U.S. and non-U.S. plans has been combined for both 2019 and 2018, except where indicated below. The Company’s pension and postretirement benefit costs and benefit obligations are based on actuarial valuations that are affected by many assumptions, the most significant of which are the assumed discount rate, expected rate of return on pension plan assets, and mortality. Each of the assumptions is reviewed and updated annually, as appropriate. The assumed rates of return for pension plan assets are determined for each major asset category based on historical rates of return for assets in that category and expectations of future rates of return based, in part, on simulated future capital market performance. The assumed discount rate is based on yields from a portfolio of currently available high-quality fixed-income investments with durations matching the expected future payments, based on the demographics of the plan participants and the plan provisions. Gains and losses arise from changes in the assumptions used to measure the benefit obligations, and experience different from what had been assumed, including asset returns different than what had been expected. The Company amortizes gains and losses in excess of a “corridor” over the average future service of the plan’s current participants. The corridor is defined as 10 percent of the greater of the plan’s projected benefit obligation or market-related value of plan assets. The market-related value of plan assets is also used to determine the expected return on plan assets component of net periodic cost. The Company’s market-related value for its U.S. plan is measured by first determining the absolute difference between the actual and the expected return on the plan assets. The absolute difference in excess of 5 percent of the expected return is added to the market-related value over two years; the remainder is added to the market-related value immediately. To the extent the Company’s unrecognized net losses and unrecognized prior service costs, including the amount recognized through accumulated other comprehensive income, are not reduced by future favorable plan experience, they will be recognized as a component of the net periodic cost in future years. 67 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 4. Pensions and Other Postretirement Benefit Plans — (continued) The following table sets forth the plan benefit obligations: As of December 31, 2019 As of December 31, 2018 (in thousands) Pension plans Other postretirement benefits Pension plans Other postretirement benefits Benefit obligation, beginning of year $ 201,450 $ 51,127 $ 230,911 $ 58,531 Service cost 2,543 189 2,723 232 Interest cost 7,216 2,115 7,217 2,024 Plan participants' contributions 243 — 228 — Actuarial (gain)/loss 22,645 4,686 ( 10,666 ) ( 6,100 ) Benefits paid ( 8,404 ) ( 3,782 ) ( 7,814 ) ( 3,473 ) Settlements and curtailments ( 1,768 ) — ( 13,807 ) — Plan amendments and other 152 — 534 — Foreign currency changes 3,134 49 ( 7,876 ) ( 87 ) Benefit obligation, end of year $ 227,211 $ 54,384 $ 201,450 $ 51,127 Accumulated benefit obligation $ 218,006 $ — $ 193,870 $ — Weighted average assumptions used to determine benefit obligations, end of year: Discount rate — U.S. plan 3.40 % 3.27 % 4.41 % 4.31 % Discount rate — non-U.S. plans 2.31 % 3.05 % 2.98 % 3.65 % Compensation increase — U.S. plan — 3.00 % — 3.00 % Compensation increase — non-U.S. plans 2.81 % 3.00 % 3.02 % 3.00 % The following sets forth information about plan assets: As of December 31, 2019 As of December 31, 2018 (in thousands) Pension plans Other postretirement benefits Pension plans Other postretirement benefits Fair value of plan assets, beginning of year $ 178,942 $ — $ 205,586 $ — Actual return on plan assets, net of expenses 32,367 — ( 8,449 ) — Employer contributions 4,670 3,782 10,071 3,474 Plan participants' contributions 243 — 228 14 Benefits paid ( 8,404 ) ( 3,782 ) (7,813) (3,488) Settlements ( 260 ) — ( 13,029 ) — Foreign currency changes 4,197 — ( 7,652 ) — Fair value of plan assets, end of year $ 211,755 $ — $ 178,942 $ — 68 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 4. Pensions and Other Postretirement Benefit Plans — (continued) The funded status of the plans was as follows: As of December 31, 2019 As of December 31, 2018 (in thousands) Pension plans Other postretirement benefits Pension plans Other postretirement benefits Fair value of plan assets $ 211,755 $ — $ 178,942 $ — Benefit obligation 227,211 54,384 201,450 51,127 Funded status $ ( 15,456 ) $( 54,384 ) $ ( 22,508 ) $( 51,127 ) Accrued benefit cost, end of year $ (15,456) $(54,384) $ (22,508) $(51,127) Amounts recognized in the consolidated balance sheet consist of the following: Noncurrent asset $ 21,337 $ — $ 14,206 $ — Current liability ( 2,155 ) ( 3,808 ) ( 2,124 ) ( 3,890 ) Noncurrent liability ( 34,638 ) ( 50,576 ) ( 34,590 ) ( 47,237 ) Net amount recognized $ ( 15,456 ) $( 54,384 ) $ ( 22,508 ) $( 51,127 ) Amounts recognized in accumulated other comprehensive income consist of: Net actuarial loss $ 63,240 $ 28,119 $ 68,110 $ 25,660 Prior service cost/(credit) 639 ( 17,434 ) 1,020 ( 21,922 ) Net amount recognized $ 63,879 $ 10,685 $ 69,130 $ 3,738 The composition of the net pension plan funded status as of December 31, 2019 was as follows: (in thousands) U.S. plan Non-U.S. plans Total Pension plans with pension assets $(660) $17,546 $16,886 Pension plans without pension assets (6,799) (25,543) (32,342) Total $(7,459) $(7,997) $(15,456) The net underfunded balance in the U.S. principally relates to the Supplemental Executive Retirement Plan. 69 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 4. Pensions and Other Postretirement Benefit Plans — (continued) The composition of the net periodic benefit plan cost for the years ended December 31, 2019, 2018, and 2017, was as follows: Pension plans Other postretirement benefits (in thousands) 2019 2018 2017 2019 2018 2017 Components of net periodic benefit cost: Service cost $ 2,543 $ 2,723 $ 2,720 $ 189 $ 232 $ 244 Interest cost 7,216 7,217 7,476 2,114 2,024 2,214 Expected return on assets ( 8,285 ) ( 8,873 ) ( 8,152 ) — — — Amortization of prior service cost/(credit) 68 34 36 ( 4,488 ) ( 4,488 ) ( 4,488 ) Amortization of net actuarial loss 2,253 2,219 2,628 2,227 2,956 2,811 Settlement ( 16 ) 2,246 — — — — Curtailment (gain)/loss 466 ( 752 ) — — — — Net periodic benefit cost $ 4,245 $ 4,814 $ 4,708 $ 42 $ 724 $ 781 Weighted average assumptions used to determine net cost: Discount rate — U.S. plan 4.41 % 3.70 % 4.20 % 4.31 % 3.59 % 4.00 % Discount rate — non-U.S. plans 2.98 % 2.83 % 2.98 % 3.65 % 3.40 % 3.70 % Expected return on plan assets — U.S. plan 4.57 % 3.87 % 4.40 % — — — Expected return on plan assets — non-U.S. plans 4.45 % 4.83 % 4.46 % — — — Rate of compensation increase — U.S. plan — — — 3.00 % — — Rate of compensation increase — non-U.S. plans 3.02 % 3.04 % 3.29 % 3.00 % 3.00 % 3.00 % Pretax (gains)/losses on plan assets and benefit obligations recognized in other comprehensive income for the years ended December 31, 2019, 2018, and 2017, was as follows: Pension plans Other postretirement benefits (in thousands) 2019 2018 2017 2019 2018 2017 Settlements/curtailments $ ( 450 ) $( 1,494 ) $ — $ — $ — $ — Asset/liability loss/(gain) ( 2,794 ) 6,411 ( 4,408 ) 4,685 ( 6,100 ) 2,743 Amortization of actuarial (loss) ( 2,253 ) ( 2,219 ) ( 2,628 ) ( 2,227 ) ( 2,956 ) ( 2,811 ) Amortization of prior service cost/(credit) ( 68 ) ( 34 ) ( 36 ) 4,488 4,488 4,488 Currency impact 316 ( 1,389 ) 1,930 — — 2 Cost/(benefit) in Other comprehensive income $( 5,249 ) $ 1,275 $( 5,142 ) $ 6,946 $( 4,568 ) $ 4,422 70 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 4. Pensions and Other Postretirement Benefit Plans — (continued) The estimated amounts that will be amortized from accumulated other comprehensive income into net periodic benefit cost in 2020 are as follows: (in thousands) Total pension Total postretirement benefits Actuarial loss $ 2,409 $ 2,592 Prior service cost/(benefit) 32 ( 4,488 ) Total $ 2,441 $( 1,896 ) Investment Strategy Our investment strategy for pension assets differs for the various countries in which we have defined benefit pension plans. Some of our defined benefit plans do not require funded trusts and, in those arrangements, the Company funds the plans on a “pay as you go” basis. The largest of the funded defined benefit plans is the United States plan. United States plan: During 2009, we changed our investment strategy for the United States pension plan by adopting a liability-driven investment strategy. Under this arrangement, the Company seeks to invest in assets that track closely to the discount rate that is used to measure the plan liabilities. Accordingly, the plan assets are primarily debt securities. The change in investment strategy is reflective of the Company’s 2008 decision to freeze benefit accruals under the plan. Non-United States plans: For the countries in which the Company has funded pension trusts, the investment strategy may also be liability driven or, in other cases, to achieve a competitive, total investment return, achieving diversification between and within asset classes and managing other risks. Investment objectives for each asset class are determined based on specific risks and investment opportunities identified. Actual allocations to each asset class vary from target allocations due to periodic investment strategy changes, market value fluctuations, the length of time it takes to fully implement investment allocation positions, and the timing of benefit payments and contributions. Fair-Value Measurements The following tables present plan assets as of December 31, 2019, and 2018, using the fair-value hierarchy, which has three levels based on the reliability of inputs used, as described in Note 17. Certain investments that are measured at fair value using net asset value (NAV) as a practical expedient are not required to be categorized in the fair value hierarchy table. The total fair value of these investments is included in the table below to permit reconciliation of the fair value hierarchy to amounts presented in the funded status table above. As of December 31, 2019 and 2018, there were no investments expected to be sold at a value materially different than NAV. 71 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 4. Pensions and Other Postretirement Benefit Plans — (continued) Assets at Fair Value as of December 31, 2019 (in thousands) Quoted prices in active markets Level 1 Significant other observable inputs Level 2 Significant unobservable inputs Level 3 Total Common Stocks and equity funds $ 216 $ — $ — $ 216 Debt securities — 92,721 — 92,721 Insurance contracts — — 3,244 3,244 Cash and short-term investments 2,793 — — 2,793 Total investments in the fair value hierarchy $ 3,009 $ 92,721 $ 3,244 98,974 Investments at net asset value: Common Stocks and equity funds 56,846 Fixed income funds 52,751 Limited partnerships 3,184 Total plan assets $ 211,755 Assets at Fair Value as of December 31, 2018 (in thousands) Quoted prices in active markets Level 1 Significant other observable inputs Level 2 Significant unobservable inputs Level 3 Total Common Stocks and equity funds $ 284 $ — $ — $ 284 Debt securities — 78,523 — 78,523 Insurance contracts — — 2,890 2,890 Cash and short-term investments 3,016 — — 3,016 Total investments in the fair value hierarchy $ 3,300 $ 78,523 $ 2,890 84,713 Investments at net asset value: Common Stocks and equity funds 42,852 Fixed income funds 47,534 Limited partnerships 3,843 Total plan assets $ 178,942 The following tables present a reconciliation of Level 3 assets held during the years ended December 31, 2019 and 2018: (in thousands) December 31, 2018 Net realized gains Net unrealized gains Net purchases, issuances and settlements Net transfers (out of) Level 3 December 31, 2019 Insurance contracts - total level 3 assets $ 2,890 $ — $ 20 $ 334 $ — $ 3,244 (in thousands) December 31, 2017 Net realized gains Net unrealized gains Net purchases, issuances and settlements Net transfers (out of) Level 3 December 31, 2018 Insurance contracts - total level 3 assets $ 2,407 $ — $( 45 ) $ 528 $ — $ 2,890 72 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 4. Pensions and Other Postretirement Benefit Plans — (continued) The asset allocation for the Company’s U.S. and non-U.S. pension plans for 2019 and 2018, and the target allocation, by asset category, are as follows: United States Plan Non-U.S. Plans Target Percentage of plan assets at plan measurement date Target Percentage of plan assets at plan measurement date Asset category Allocation 2019 2018 Allocation 2019 2018 Equity securities — % 1 % 1 % 13 % 13 % 19 % Debt securities 100 % 96 % 94 % 82 % 80 % 74 % Real estate — % 2 % 4 % 1 % 1 % 1 % Other (1) — % 1 % 1 % 4 % 6 % 6 % 100 % 100 % 100 % 100 % 100 % 100 % (1) Other includes hedged equity and absolute return strategies, and private equity. The Company has procedures to closely monitor the performance of these investments and compares asset valuations to audited financial statements of the funds. The targeted plan asset allocation is based on an analysis of the actuarial liabilities, a review of viable asset classes, and an analysis of the expected rate of return, risk, and other investment characteristics of various investment asset classes. At the end of 2019 and 2018, the projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for pension plans with projected benefit obligation and an accumulated benefit obligation in excess of plan assets were as follows: Plans with projected benefit obligation in excess of plan assets (in thousands) 2019 2018 Projected benefit obligation $ 137,123 $ 123,261 Fair value of plan assets 100,330 86,547 Plans with accumulated benefit obligation in excess of plan assets (in thousands) 2019 2018 Accumulated benefit obligation $ 134,737 $ 120,869 Fair value of plan assets 100,330 86,062 Information about expected cash flows for the pension and other benefit obligations are as follows: (in thousands) Pension plans Other postretirement benefits Expected employer contributions and direct employer payments in the next fiscal year $ 2,446 $ 3,808 Expected benefit payments 2020 7,905 3,808 2021 8,537 3,738 2022 8,755 3,683 2023 9,068 3,631 2024 9,531 3,555 2025-2029 53,652 16,569 |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | 5. Restructuring In 2017, the Company announced a proposal to discontinue operations at its MC production facility in Sélestat, France. The restructuring program was driven by the Company’s need to balance manufacturing capacity with demand. During 2017, we incurred $1.1 million of restructuring expense associated with this proposal but were unable to reasonably estimate the total costs for severance and other charges associated with the proposal as there was no assurance, at that time, that approval for the proposal would be obtained. In 2018, the plan was approved by the French Labor Ministry which led to restructuring expense of $10.7 million in 2018, which includes severance and outplacement costs for the approximately 50 positions that were terminated under this plan. In 2019, restructuring charges were $0.9 million. Since 2017, we have recorded $12.7 million of restructuring charges related to this action. As a result of this action, we recorded a pension plan curtailment gain of $0.7 million in 2018 which is recorded in Other expense, net. In 2016, the Company discontinued research and development activities at its MC facility in Sélestat, France as part of a plan to reduce research and development costs. This initiative resulted in 2016 expense of $2.2 million for severance, outplacement, and the write-off of equipment. In 2017 and 2018, we recorded additional restructuring charges of $1.6 million and $1.0 million respectively, related to a 2016 restructuring at the same location. Total restructuring costs for that initiative, including 2016, was $3.9 million In 2017, the Company initiated work force reductions and facility rationalization in AEC locations in Salt Lake City, Utah and Rochester, New Hampshire. Restructuring charges include expenses of $0.1 million in 2019, $1.1 million in 2018, and $5.0 million in 2017. To date, we have recorded $6.2 million of restructuring charges related to these actions. In 2018, the Company discontinued certain manufacturing processes at its AEC facility in Salt Lake City, Utah, which resulted in $1.9 million of restructuring in 2018, which included a non-cash restructuring charge of $1.7 million, and an additional $0.2 million for severance. The non-cash restructuring charge resulted from writing down manufacturing equipment used in that line of business to its estimated value. In 2019, the Company wrote off the remaining $1.2 million book value of that equipment as the Company has been unable to sell it. To date, we have recorded $3.1 million of restructuring charges related to these actions. In 2017, the Company decided to discontinue the Bear Claw® line of hydraulic fracturing components used in the oil and gas industry, which was part of the AEC business. This decision resulted in a non-cash restructuring charge of $4.5 million in 2017 for the write-off of intangible assets and equipment, and a $2.8 million charge to Cost of goods sold for the write-off of inventory. The following table summarizes charges reported in the Consolidated Statements of Income under “Restructuring expenses, net”: Year ended December 31, 2019 (in thousands) Total restructuring costs incurred Termination and other costs Impairment of assets Machine Clothing $ 1,129 $ 667 $ 462 Albany Engineered Composites 1,833 659 1,174 Corporate expenses ( 57 ) ( 57 ) — Total $ 2,905 $ 1,269 $ 1,636 Year ended December 31, 2018 (in thousands) Total restructuring costs incurred Termination and other costs Impairment of assets Machine Clothing $ 12,278 $ 11,890 $ 388 Albany Engineered Composites 3,048 1,286 1,762 Corporate expenses 244 244 — Total $ 15,570 $ 13,420 $ 2,150 74 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 5. Restructuring — (continued) Year ended December 31, 2017 (in thousands) Total restructuring costs incurred Termination and other costs Impairment of assets Machine Clothing $ 3,429 $ 2,945 $ 484 Albany Engineered Composites 10,062 5,004 5,058 Corporate expenses — — — Total $ 13,491 $ 7,949 $ 5,542 We expect that approximately $1.3 million of Accrued liabilities for restructuring at December 31, 2019 will be paid within one year and approximately $0.7 million will be paid the following year. The table below presents the changes in restructuring liabilities for 2019 and 2018, all of which related to termination costs: (in thousands) December 31, 2018 Restructuring charges accrued Payments Currency translation/ other December 31, 2019 Total termination and other costs $ 5,570 $ 1,269 $( 5,084 ) $ 287 $ 2,042 (in thousands) December 31, 2017 Restructuring charges accrued Payments Currency translation/ other December 31, 2018 Total termination and other costs $ 3,326 $ 13,420 $( 10,696 ) $( 480 ) $ 5,570 |
Other Expense, net
Other Expense, net | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Other Expense/(Income), net | 6. Other (income)/expense, net The components of Other (income)/expense, net, are: (in thousands) 2019 2018 2017 Currency transactions $(4,473) $ ( 67 ) $ 4,634 Bank fees and amortization of debt issuance costs 348 417 487 Pension settlements and curtailments 450 1,494 — Components of net periodic pension and postretirement cost other than service 1,105 1,089 2,525 Gain on insurance recovery — — ( 2,000 ) Other 1,013 1,104 1,231 Total $( 1,557 ) $ 4,037 $ 6,877 In 2019, the Company took actions to freeze accrued benefits under the United Kingdom defined benefit pension plan, which resulted in a curtailment charge of $0.5 million. In 2018, the Company took actions to settle a portion of its non-U.S. defined benefit pension plan liabilities, which resulted in a settlement charge of $2.2 million. In 2018, the Company recorded a pension curtailment gain of $0.7 million related to the restructuring in Sélestat, France. In 2017, we recorded a gain of $2.0 million based on an insurance settlement related to a theft in 2016. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes The following tables present components of income tax expense/(benefit) and income before income taxes on continuing operations: (in thousands) 2019 2018 2017 Income tax based on income from continuing operations, at estimated tax rates of 28%, 31%, and 32%, respectively $ 49,977 $ 36,044 $ 17,519 Income tax before discrete items 49,977 36,044 17,519 Discrete tax expense/(benefit): Net impact of mandatory deemed repatriation — ( 1,003 ) 5,758 Provision for/resolution of tax audits and contingencies, net ( 2,874 ) 1,286 1,329 Adjustments to prior period tax liabilities ( 1,637 ) ( 1,284 ) ( 840 ) Provision for/adjustment to beginning of year valuation allowances ( 525 ) ( 4,882 ) ( 3,522 ) Enacted tax legislation ( 112 ) 2,067 1,879 Total income tax expense $ 44,829 $ 32,228 $ 22,123 (in thousands) 2019 2018 2017 Income/(loss) before income taxes: U.S. $ 76,024 $ 41,875 $ ( 5,865 ) Non-U.S. 102,188 73,372 60,573 $ 178,212 $ 115,247 $ 54,708 Income tax provision Current: Federal $ 780 $ 304 $ 1,551 State 6,357 4,996 1,770 Non-U.S. 25,255 21,557 19,282 $ 32,392 $ 26,857 $ 22,603 Deferred: Federal $ 10,583 $ 10,700 $ 1,881 State 253 ( 338 ) ( 1,237 ) Non-U.S. 1,601 ( 4,991 ) ( 1,124 ) $ 12,437 $ 5,371 $ ( 480 ) Total income tax expense $ 44,829 $ 32,228 $ 22,123 The significant components of deferred income tax expense/(benefit) are as follows: (in thousands) 2019 2018 2017 Net effect of temporary differences $ ( 18 ) $( 4,657 ) $( 5,774 ) Foreign tax credits 12,530 9,437 8,340 Retirement benefits ( 752 ) 2,360 ( 502 ) Net impact to operating loss carryforwards 1,314 1,046 ( 900 ) Enacted changes in tax laws and rates ( 112 ) 2,067 1,878 Adjustment to beginning-of-the-year valuation allowance balance for changes in circumstances ( 525 ) ( 4,882 ) ( 3,522 ) Total $ 12,437 $ 5,371 $ ( 480 ) 76 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 7. Income Taxes — (continued) A reconciliation of the U.S. federal statutory tax rate to the Company’s effective income tax rate is as follows: 2019 2018 2017 U.S. federal statutory tax rate 21.0 % 21.0 % 35.0 % State taxes, net of federal benefit 3.0 2.9 0.4 Non-U.S. local income taxes 4.4 3.3 5.9 US permanent adjustments — ( 0.3 ) 0.5 Foreign permanent adjustments 0.4 ( 0.4 ) 0.4 Foreign rate differential 0.5 0.2 ( 10.5 ) Net U.S. tax on non-U.S. earnings and foreign withholdings 0.3 5.7 11.9 Provision for/resolution of tax audits and contingencies, net ( 1.6 ) 1.1 2.4 Research and development and other tax credits ( 0.3 ) ( 0.1 ) ( 1.5 ) Provision for/adjustment to beginning of year valuation allowances ( 0.3 ) ( 4.2 ) ( 6.4 ) Enacted tax legislation and rate change ( 0.1 ) 1.8 3.0 Return to provision and other adjustments ( 2.1 ) ( 3.0 ) ( 0.7 ) Effective income tax rate 25.2 % 28.0 % 40.4 % The Company has operations which constitute a taxable presence in 18 countries outside of the United States. The majority of these countries had income tax rates that are above the United States federal tax rate of 21% during 2019. The jurisdictional location of earnings is a significant component of the Company’s effective tax rate each year. The rate impact of this component is influenced by the specific location of non-U.S. earnings and the level of the Company’s total earnings. From period to period, the jurisdictional mix of earnings can vary as a result of operating fluctuations in the normal course of business, as well as the extent and location of other income and expense items, such as pension settlement and restructuring charges. The foreign income tax rate differential that is included above in the reconciliation of the effective tax rate includes the difference between tax expense calculated at the U.S. federal statutory tax rate of 21% and the expense accrued based on the different statutory tax rates that apply in the jurisdictions where the income or loss is earned. During the periods reported, income outside of the U.S. was heavily concentrated within Brazil (blended 34% tax rate), China (25% tax rate), and Mexico (30% tax rate). The foreign rate differential of these jurisdictions was partially offset by Switzerland (7.8% tax rate). As a result, the foreign income tax rate differential was primarily attributable to these tax rate differences. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of certain assets and liabilities for financial reporting purposes and income tax return purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows: 77 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 7. Income Taxes — (continued) U.S. Non-U.S. (in thousands) 2019 2018 2019 2018 Noncurrent deferred tax assets: Accounts receivable $ 823 $ 686 $ 1,050 $ 1,224 Inventories 636 442 1,231 829 Deferred compensation 4,730 4,460 1,386 1,053 Depreciation and amortization — — 4,892 4,252 Postretirement benefits 14,885 14,759 1,048 1,667 Tax loss carryforwards 2,266 1,199 21,467 21,890 Tax credit carryforwards 15,931 30,523 936 1,197 Derivatives 1,411 — — — Reserves 2,953 3,954 — — Deferred Revenue 2,417 3,556 — — Other — 516 — 990 Noncurrent deferred tax assets before valuation allowance 46,052 60,095 32,010 33,102 Less: valuation allowance — — ( 9,102 ) ( 8,389 ) Total noncurrent deferred tax assets 46,052 60,095 22,908 24,713 Total deferred tax assets $ 46,052 $ 60,095 $ 22,908 $ 24,713 Noncurrent deferred tax liabilities: Unrepatriated foreign earnings $ 2,202 $ 4,028 $ — $ — Depreciation and amortization 4,404 12,848 — — Postretirement benefits — — — — Deferred gain 3,391 3,762 — — Derivatives — 1,162 — — Flow-through DTL's 6,205 2,192 — — Deferred Revenue — — 8,492 5,740 Other 510 — 3,137 — Total noncurrent deferred tax liabilities $ 16,712 $ 23,992 $ 11,629 $ 5,740 Net deferred tax liabilities $ 16,712 $ 23,992 $ 11,629 $ 5,740 Net deferred tax asset $ 29,340 $ 36,103 $ 11,279 $ 18,973 Deferred income tax assets, net of valuation allowances, are expected to be realized through the reversal of existing taxable temporary differences and future taxable income. In 2019, the Company recorded the following movements in its valuation allowance: the Company recorded a valuation allowance of $0.8 million for one of its Mexican subsidiaries, and the Company also recorded a $0.1 million decrease in a valuation allowance due to a net reduction in the related deferred tax assets. Additionally, the Company recorded a $1.3 million out-of-period immaterial adjustment related to a German tax valuation allowance that was released in 2018. At December 31, 2019, the Company had available approximately $112.9 million of net operating loss carryforwards, for which the Company has a deferred tax asset of $24.3 million, with expiration dates ranging from one year to indefinite that may be applied against future taxable income. The Company believes that it is more likely than not that certain benefits from these net operating loss carryforwards will not be realized and, accordingly, the Company has recorded a valuation allowance of $9.1 million as of December 31, 2019. Additionally, management has evaluated its ability to utilize its other non-U.S. tax attributes during the various carryforward periods and has concluded that the Company will more likely than not be able to utilize the remaining non-U.S. tax attributes. Included in the net operating loss carryforward is approximately $38.8 million of state net operating loss carryforwards that are subject to various business apportionment 78 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 7. Income Taxes — (continued) factors and multiple jurisdictional requirements when utilized. In addition, the Company had available a foreign tax credit carryforward of $11.7 million that will begin to expire in 2025 2025 The Company reported a U.S. net deferred tax asset of $29.3 million at December 31, 2019, which contained $22.6 million of tax attributes with limited lives. Although the Company is in a cumulative book income position for the three-year period ending December 31, 2019, management has evaluated its ability to utilize these tax attributes during the carryforward period. The Company’s future profits from operations, available tax elections and tax planning opportunities more likely than not will generate income of sufficient character to utilize the remaining tax attributes. Accordingly, no valuation allowance has been established for the U.S. net deferred tax assets. 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 $94.4 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 $1.2 million and state income taxes of $1.0 million which have already been recorded. The accumulated undistributed earnings of the Company’s foreign operations not targeted for repatriation to the U.S. were approximately $169.1 million, and are intended to remain indefinitely invested in foreign operations. No additional income taxes have been provided on the indefinitely invested foreign earnings at December 31, 2019. If these earnings were distributed, the Company could be subject to income taxes and additional foreign withholding taxes. Determining the amount of unrecognized deferred tax liability related to any additional outside basis difference in these entities is not practical. The following table provides a reconciliation of the beginning and ending amount of unrecognized tax benefits, $1.0 million of which, if recognized, would impact the effective tax rate: (in thousands) 2019 2018 2017 Unrecognized tax benefits balance at January 1st $ 3,790 $ 4,509 $ 4,183 Increase in gross amounts of tax positions related to prior years 4,874 2,008 480 Decrease in gross amounts of tax positions related to prior years ( 2,239 ) ( 358 ) ( 50 ) Increase in gross amounts of tax positions related to current years — — — Decrease due to settlements with tax authorities — ( 1,626 ) ( 381 ) Decrease due to lapse in statute of limitations ( 626 ) ( 479 ) ( 29 ) Currency translation 35 ( 264 ) 306 Unrecognized tax benefits balance at December 31 $ 5,834 $ 3,790 $ 4,509 The Company recognizes interest and penalties related to unrecognized tax benefits within its global operations as a component of income tax expense. The Company recognized interest and penalties related to the unrecognized tax benefits noted above of $0.2 million or less in each of 2019, 2018 and 2017. As of December 31, 2019, 2018 and 2017, the Company had approximately $0.1 million, $0.1 million, and $0.4 million respectively, of accrued interest and penalties related to unrecognized tax benefits. 79 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 7. Income Taxes — (continued) 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 Canada and Italy. In 2019, the Company recorded a net decrease 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 received the refunds from the Canadian Revenue Agency and Ontario for taxes that were pre-paid at the time of protests. As such, during the first quarter, the Company determined that it was 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 December 31, 2019, and 2018, current income taxes prepaid and receivable consisted of the following: (in thousands) 2019 2018 Prepaid taxes $ 4,399 $ 4,859 Taxes receivable 1,763 2,614 Total current income taxes prepaid and receivable $ 6,162 $ 7,473 As of December 31, 2019, and 2018, noncurrent deferred taxes and other liabilities consisted of the following: (in thousands) 2019 2018 Deferred income taxes $ 11,002 $ 7,547 Other liabilities 1,224 875 Total noncurrent deferred taxes and other liabilities $ 12,226 $ 8,422 Taxes paid, net of refunds, amounted to $25.9 million in 2019, $28.1 million in 2018 and $23.7 million in 2017. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 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: (in thousands, except market price and earnings per share) 2019 2018 2017 Net income attributable to the Company $ 132,398 $ 82,891 $ 33,111 Weighted average number of shares: Weighted average number of shares used in calculating basic net income per share 32,296 32,252 32,169 Effect of dilutive stock-based compensation plans: Stock options 12 15 30 Long-term incentive plan 14 28 45 Weighted average number of shares used in calculating diluted net income per share 32,322 32,295 32,244 Average market price of common stock used for calculation of dilutive shares $ 78.13 $ 66.95 $ 52.19 Net income per share: Basic $ 4.10 $ 2.57 $ 1.03 Diluted $ 4.10 $ 2.57 $ 1.03 Shares outstanding, net of treasury shares, were 32.3 million as of December 31, 2019 and 2018, and were 32.2 million as of December 31, 2017. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (AOCI) | 12 Months Ended |
Dec. 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 from January 1, 2017 to December 31, 2019: (in thousands) Translation adjustments Pension and postretirement liability adjustments Derivative valuation adjustment Total Other Comprehensive Income January 1, 2017 $ ( 133,298 ) $( 51,719 ) $ 828 $( 184,189 ) Other comprehensive income/(loss) before reclassifications 45,980 ( 1,818 ) 201 44,363 Pension/postretirement plan remeasurement . — 2,037 — 2,037 Interest expense related to swaps reclassified to the Statements of Income, net of tax — — 924 924 Pension and postretirement liability adjustments reclassified to Statements of Income, net of tax — 964 — 964 Net current period other comprehensive income 45,980 1,183 1,125 48,288 December 31, 2017 ( 87,318 ) ( 50,536 ) 1,953 ( 135,901 ) Other comprehensive income/(loss) before reclassifications ( 28,658 ) 1,275 2,853 ( 24,530 ) Pension/postretirement settlements and curtailments — 1,146 — 1,146 Pension/postretirement plan remeasurement . — 443 — 443 Interest expense related to swaps reclassified to the Statements of Income, net of tax — — ( 109 ) ( 109 ) Pension and postretirement liability adjustments reclassified to Statements of Income, net of tax — 563 — 563 Net current period other comprehensive income ( 28,658 ) 3,427 2,744 ( 22,487 ) December 31, 2018 ( 115,976 ) ( 47,109 ) 4,697 ( 158,388 ) Other comprehensive income/(loss) before reclassifications ( 6,876 ) ( 525 ) ( 10,523 ) ( 17,924 ) Pension/postretirement settlements and curtailments — 376 — 376 Pension/postretirement plan remeasurement . — ( 1,437 ) — ( 1,437 ) Interest expense related to swaps reclassified to the Statements of Income, net of tax — — 2,691 2,691 Pension and postretirement liability adjustments reclassified to Statements of Income, net of tax — 47 — 47 Adjustment related to prior period change in opening valuation allowance — ( 1,346 ) — ( 1,346 ) Net current period other comprehensive income ( 6,876 ) ( 2,885 ) ( 7,832 ) ( 17,593 ) December 31, 2019 $( 122,852 ) $( 49,994 ) $ ( 3,135 ) $( 175,981 ) 81 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 9. Accumulated Other Comprehensive Income (AOCI) — (continued) 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 Statement of Income that were affected for the years ended December 31, 2019, 2018, and 2017. (in thousands) 2019 2018 2017 Pretax Derivative valuation reclassified from Accumulated Other Comprehensive Income: Expense related to interest rate swaps included in Income before taxes (a) $ ( 1,011 ) $ ( 146 ) $ 1,490 Income tax effect 259 37 ( 566 ) Effect on net income due to items reclassified from Accumulated Other Comprehensive Income $ ( 752 ) $ ( 109 ) $ 924 Pretax pension and postretirement liabilities reclassified from Accumulated Other Comprehensive Income: Pension/postretirement settlements and curtailments $ 450 $ 1,494 $ — Amortization of prior service credit ( 4,420 ) ( 4,454 ) ( 4,453 ) Amortization of net actuarial loss 4,480 5,175 5,439 Total pretax amount reclassified (b) 510 2,215 986 Income tax effect ( 87 ) ( 506 ) ( 22 ) Effect on net income due to items reclassified from Accumulated Other Comprehensive Income $ 423 $ 1,709 $ 964 (a) Included in interest expense, net are payments related to the interest rate swap agreements and amortization of swap buyouts (see Notes 17 and 18). (b) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 4). |
Noncontrolling Interest
Noncontrolling Interest | 12 Months Ended |
Dec. 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 will be 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. 82 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 10. Noncontrolling Interest — (continued) The table below presents a reconciliation of income attributable to the noncontrolling interest and noncontrolling equity in the Company’s subsidiary Albany Safran Composites, LLC, and the impact of transitioning to ASC 606: (in thousands, except percentages) 2019 2018 Net income of Albany Safran Composites (ASC) $ 11,140 $ 2,578 Less: Return attributable to the Company's preferred holding 1,291 1,299 Net income of ASC available for common ownership $ 9,849 $ 1,279 Ownership percentage of noncontrolling shareholder 10 % 10 % Net income attributable to noncontrolling interest $ 985 $ 128 Noncontrolling interest, beginning of year $ 3,031 $ 3,247 Decrease attributable to 2018 adoption of ASC 606 — ( 327 ) Net income/(loss) attributable to noncontrolling interest 985 128 Changes in other comprehensive income attributable to noncontrolling interest ( 10 ) ( 17 ) Noncontrolling interest, end of year $ 4,006 $ 3,031 |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Accounts Receivable | 11. Accounts Receivable As of December 31, 2019 and 2018, Accounts receivable consisted of the following: (in thousands) December 31, 2019 December 31, 2018 Trade and other accounts receivable $ 201,427 $ 211,244 Bank promissory notes 18,563 19,269 Allowance for doubtful accounts ( 1,719 ) ( 7,337 ) Accounts receivable, net $ 218,271 $ 223,176 The 2019 decrease in Allowance for doubtful accounts was principally due to the write-off of Accounts receivables related to ongoing bankruptcy proceedings for certain Machine Clothing customers in Europe, which had been fully reserved as of December 31, 2018. The Noncurrent receivables will be invoiced to the customer over a 10-year period, beginning in 2020. Accordingly, $5.2 million was reclassified from Noncurrent receivables to Trade and other accounts receivable during 2019. As of December 31, 2019 and December 31, 2018, Noncurrent receivables were as follows: (in thousands) December 31, 2019 December 31, 2018 Noncurrent receivables $ 41,234 $ 45,061 |
Contract Assets and Liabilities
Contract Assets and Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Income Tax Expense Benefit Provision For Gain Loss On Extinguishment Of Debt | |
Contract Assets and Liabilities | 12. Contract Assets and Liabilities Contract assets and Contract liabilities (included in Accrued liabilities) are reported on the Consolidated Balance Sheets in a net position on a contract-by-contract basis at the end of each reporting period. Contract assets and contract liabilities were as follows: (in thousands) December 31, 2019 December 31, 2018 Contract assets $ 79,070 $ 57,447 Contract liabilities 5,656 9,025 Contract assets increased $21.6 million during the year ended December 31, 2019. The increase was primarily due to an increase in unbilled revenue related to the satisfaction of performance obligations for the LEAP contract, in excess of the amounts billed. There were no impairment losses related to our Contract assets during the years ended December 31, 2019 and 2018. 83 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 12. Contract Assets and Liabilities — (continued) Contract liabilities decreased $3.4 million during the year ended December 31, 2019, primarily due to revenue recognition from satisfied performance obligations exceeding the amounts invoiced to customers for contracts that were in a contract liability position. Revenue recognized for the years ended December 31, 2019 and 2018 that was included in the Contract liability balance at the beginning of the year was $6.0 million and $3.2 million, respectively. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | 13. Inventories As of December 31, 2019 and 2018, inventories consisted of the following: (in thousands) December 31, 2019 December 31, 2018 Raw materials $ 52,960 $ 40,489 Work in process 31,744 33,181 Finished goods 10,445 12,234 Total inventories $ 95,149 $ 85,904 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 14. Property, Plant and Equipment The table below sets forth the components of property, plant and equipment as of December 31, 2019 and 2018: (in thousands) 2019 2018 Estimated useful life Land and land improvements $ 14,168 $ 14,287 25 years for improvements Buildings 227,875 245,805 15 to 40 years Right of use assets 16,686 — 10 to 15 years Machinery and equipment 1,020,348 989,925 5 to 15 years Furniture and fixtures 8,126 8,091 5 years Computer and other equipment 18,808 16,473 3 to 10 years Software 60,995 60,182 5 to 8 years Capital expenditures in progress 45,588 46,749 Property, plant and equipment, gross 1,412,594 1,381,512 Accumulated depreciation and amortization ( 946,132 ) ( 919,457 ) Property, plant and equipment, net $ 466,462 $ 462,055 Depreciation expense was $62.1 million in 2019, $68.8 million in 2018, and $61.5 million in 2017. Software amortization is recorded in Selling, general, and administrative expense and was $2.4 million in 2019, $3.2 million in 2018, and $3.6 million in 2017. Capital expenditures, including purchased software, were $68.0 million in 2019, $82.9 million in 2018, and $87.6 million in 2017. Unamortized software cost was $5.3 million in 2019, $6.9 million and $7.6 million as of December 31, 2018 and 2017, respectively. Expenditures for maintenance and repairs are charged to income as incurred and amounted to $19.8 million in 2019, $19.4 million in 2018, and $19.1 million in 2017. In 2019, the Company acquired CirComp GmbH, which resulted in an increase of $10.6 million to Property, plant and equipment, of which $5.7 million is a finance lease included in the above table as a Right of use asset as of December 31, 2019. 84 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 14. Property, Plant and Equipment — (continued) The capitalized value of our primary manufacturing facility in Salt Lake City, Utah (SLC lease), which was accounted for as a build-to-suit lease with a failed sale-leaseback, was included in Buildings in the above table during 2018. AEC finalized a modification to the lease during 2018, which included additional manufacturing space, extended the minimum lease period until December 31, 2029 and resulted in an increase of $12.7 million to Property, plant and equipment, net (see discussion of Finance obligation in Note 17). As described in Note 20, effective January 1, 2019, we adopted the provisions of ASC 842, Leases, using the effective date (or modified retrospective) approach for transition, which resulted in the derecognition and reassessment of assets and liabilities related to our SLC lease. We determined that the original leased space met the criteria for recording as a finance lease, and is included as a Right of use asset in the above table. The incremental expansion space added in the modification met the criteria for recording as an Operating lease and is included in Other assets. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 15. 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 2019, 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. On November 20, 2019, the Company acquired CirComp GmbH, a privately-held developer and manufacturer of high-performance composite components located in Kaiserslautern, Germany. The assets acquired include amortizable intangible assets of $10.0 million and goodwill of $17.3 million. 85 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 15. Goodwill and Other Intangible Assets — (continued) We are continuing to amortize certain patents, trademarks and names, customer contracts, relationships and technology assets that have finite lives. The changes in intangible assets and goodwill from December 31, 2017 to December 31, 2019, were as follows: (in thousands, except for years) Amortization life in years Balance at December 31, 2018 Aquisition Amortization Currency Translation Balance at December 31, 2019 Amortized intangible assets: AEC trademarks and trade names 6 - 15 $ 11 $ 68 $ ( 6 ) $ — $ 73 AEC technology 10 - 15 56 5,821 ( 73 ) — 5,804 AEC Intellectual property 15 — 1,250 ( 7 ) — 1,243 AEC customer contracts 6 9,456 — ( 2,912 ) — 6,544 AEC customer relationships 8 - 15 39,538 2,834 ( 3,247 ) 22 39,147 AEC other intangibles 5 145 — ( 64 ) — 81 Total amortized intangible assets $ 49,206 $ 9,973 $( 6,309 ) $ 22 $ 52,892 Unamortized intangible assets: MC Goodwill $ 68,652 $ — $ — $( 980 ) $ 67,672 AEC Goodwill 95,730 17,343 — 189 113,262 Total amortized intangible assets $ 164,382 $ 17,343 $ — $( 791 ) $ 180,934 (in thousands, except for years) Amortization life in years Balance at December 31, 2017 Amortization Currency Translation Balance at December 31, 2018 Amortized intangible assets: AEC trademarks and trade names 15 $ 15 $ ( 4 ) $ — $ 11 AEC technology 15 80 ( 24 ) — 56 AEC customer contracts 6 12,369 ( 2,913 ) — 9,456 AEC customer relationships 15 42,767 ( 3,229 ) — 39,538 AEC other intangibles 5 210 ( 65 ) — 145 Total amortized intangible assets $ 55,441 $( 6,235 ) $ — $ 49,206 Unamortized intangible assets: MC Goodwill $ 71,066 $ — $( 2,414 ) $ 68,652 AEC Goodwill 95,730 — — 95,730 Total amortized intangible assets $ 166,796 $ — $( 2,414 ) $ 164,382 As of December 31, 2019, the gross carrying amount and accumulated amortization of amortized intangible assets was $76.7 million and $23.8 million, respectively. 86 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 15. Goodwill and Other Intangible Assets — (continued) Amortization expense related to intangible assets was reported in the Consolidated Statement of Income as follows: $3.0 million in Cost of goods sold and $3.3 million in Selling, general and administrative expenses in 2019; $2.9 million in Cost of goods sold and $3.3 million in Selling, general and administrative expenses in 2018; and $3.3 million in Cost of goods sold and $3.6 million in Selling, general and administrative expenses in 2017. Estimated amortization expense of intangibles for the years ending December 31, 2020 through 2024, is as follows: Annual amortization Year (in thousands) 2020 $ 7,141 2021 7,071 2022 4,856 2023 4,135 2024 4,135 16. Accrued Liabilities Accrued liabilities consist of: (in thousands) 2019 2018 Salaries and wages $ 22,878 $ 20,821 Contract loss reserve 17,190 20,708 Employee benefits 14,235 12,316 Returns and allowances 11,249 11,343 Accrual for compensated absences 10,445 10,636 Dividends 6,139 5,808 Contract liabilities 5,656 9,025 Lease liability - Operating lease 4,023 — Lease liability - Financing lease 1,835 — Postretirement medical benefits – current portion 3,808 3,890 Restructuring costs 1,342 5,534 Professional fees 2,999 2,575 Pension liability – current portion 2,155 2,124 Workers' compensation 1,982 1,794 Utilities 790 974 Interest 517 901 Other 18,642 20,581 Total $ 125,885 $ 129,030 As described in Note 20, the Company adopted ASC 842, Leases effective January 1, 2019, which required the recognition of right of use assets, representing our right to use the underlying asset for the lease term, and lease liabilities, representing our obligation to make lease payments over the lease term, on the balance sheet. The cumulative effect of initially applying the new standard increased accrued liabilities $5.0 million. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | 16. Accrued Liabilities |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Long-term Debt and Lease Obligation [Abstract] | |
Financial Instruments | 17. Financial Instruments Long-term debt, principally to banks and noteholders, consists of: (in thousands, except interest rates) 2019 2018 Revolving credit agreement with borrowings outstanding at an end of period interest rate of 3.43% in 2019 and 3.69% in 2018 (including the effect of interest rate hedging transactions, as described below), due in 2022 $ 424,000 $ 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 29 45 Long-term debt 424,029 524,931 Less: current portion ( 20 ) ( 1,224 ) Long-term debt, net of current portion $ 424,009 $ 523,707 Principal payments of $424 million are due on long-term debt in 2022 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, $424 million of borrowings were outstanding as of December 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 December 30, 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 December 31, 2019, we would have been able to borrow an additional $261 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. 88 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 17. Financial Instruments — (continued) 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 December 16, 2019 was 1.74%, during the swap period. On December 16, 2019, the all-in-rate on the $350 million of debt was 3.485%. These interest rate swaps are accounted for as a hedge of future cash flows, as further described in Note 18. 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 3.50 to 1.00 As of December 31, 2019, our leverage ratio was 1.35 to 1.00 and our interest coverage ratio was 14.21 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 December 31, 2019. |
Fair-Value Measurements
Fair-Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair-Value Measurements | 18. Fair-Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Accounting principles establish a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Level 3 inputs are unobservable data points for the asset or liability, and include situations in which there is little, if any, market activity for the asset or liability. We had no Level 3 financial assets or liabilities at December 31, 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: December 31, 2019 December 31, 2018 Quoted prices in active markets Significant other observable inputs Quoted prices in active markets Significant other observable inputs (in thousands) (Level 1) (Level 2) (Level 1) (Level 2) Fair Value Assets: Cash equivalents $ 16,375 $ — $ 14,234 $ — Other Assets: Common stock of unaffiliated foreign public company (a) 839 — 731 — Interest rate swaps — — — 4,548 (c) Liabilities: Other noncurrent liabilities: Interest rate swaps — ( 5,518 ) (b) — — (a) Original cost basis $0.5 million. (b) Net of $15.2 million receivable floating leg and $20.7 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. 90 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 18. Fair-Value Measurements — (continued) 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 December 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 (income)/expense related to payments under the active swap agreements totaled ($0.6) million in 2019, $0.5 million in 2018 and $0.8 million in 2017. Additionally, non-cash interest income related to the amortization of swap buyouts totaled $0.5 million in 2019, $0.6 million in 2018, and $0.7 million in 2017, and is expected to reduce interest expense by $1.3 million in 2020. Gains/(losses) related to changes in fair value of derivative instruments not designated as a hedge that were recognized in Other (income)/expense, net in the Consolidated Statements of Income were as follows: Years ended December 31, (in thousands) 2019 2018 2017 Derivatives not designated as hedging instruments Foreign currency options gains/(losses) $ — $( 61 ) $( 131 ) |
Other Noncurrent Liabilities
Other Noncurrent Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Noncurrent Liabilities | 19. Other Noncurrent Liabilities As of December 31, 2019 and 2018, Other Noncurrent Liabilities consisted of the following: (in thousands) 2019 2018 Postretirement benefits other than pensions $ 50,576 $ 47,237 Pension liabilities 34,638 34,590 Finance leases 22,700 — Operating leases 14,386 — Interest rate swap agreements 5,518 — Incentive and deferred compensation 2,925 3,810 Other 1,282 2,540 Restructuring 700 100 Total $ 132,725 $ 88,277 The increase in Other Noncurrent liabilities in 2019 was in part due to the cumulative effect of adopting ASC 842 (see Note 20) which upon adoption, increased Other Noncurrent liabilities by $28.0 million. For the year ended December 31, 2019 lease liabilities included in Other noncurrent liabilities are comprised of Finance and Operating leases, and account for an increase over December 31, 2018 of $37.1 million. Our interest rate swap agreements which are accounted for as a hedge of future cash flows and are further described in Note 18, Fair-Value Measurements, are measured at fair value each period. As of December 31, 2019 the fair value was a liability of $5.5 million, which is reflected in Other noncurrent liabilities, and as of December 31, 2018 the fair value was an asset of $4.5 million, which is reflected in Other assets. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Lessee Disclosure [Abstract] | |
Leases | 20. Leases Effective January 1, 2019, we adopted the provisions of ASC 842, Leases, using the effective date (or modified retrospective) approach for transition. Under this transition method, periods prior to 2019 have not been restated and the cumulative effect of initially applying the new standard was recorded as an adjustment to Retained earnings at January 1, 2019. The most significant impact resulting from the adoption of the new standard was the recognition of right of use 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, transitional 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. 92 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 20. Leases — (continued) 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: As previously reported at December 31, 2018 Adjustments Increase/ (decrease) Opening balance, as adjusted, January 1, 2019 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 — — — 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 our Consolidated Statements of Cash Flows. 93 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 20. Leases — (continued) 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 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, • The lessee has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use, and • The lessee has the right to direct the use of the asset, which is demonstrated when the lessee has decision-making rights that are most relevant to changing how and for what purpose the asset is used. Judgment is required in the application of ASC 842, including the determination of whether a contract contains a lease, the appropriate classification, allocation of consideration, and the determination of the discount rate for the lease. Key estimates and judgments include how the Company determines (1) the discount rate it uses to discount the unpaid lease payments to present value, (2) lease term and (3) lease payments. We are generally the lessee in our lease transactions. For periods ending after December 31, 2018, lessees are required to recognize a lease liability and a right of use asset for leases with terms greater than 12 months, in accordance with the practical expedient that is available for ongoing accounting. 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 operating and finance leases for offices, manufacturing facilities, warehouses, vehicles, and certain equipment. Our leases have remaining lease terms of 1 year to 15 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 year ended December 31, 2019 Finance lease Amortization of right-of-use asset $ 997 Interest on lease liabilities 1,563 Operating lease Fixed lease cost 5,063 Variable lease cost 35 Short-term lease cost 1,283 Total lease expense $ 8,941 94 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 20. Leases — (continued) Lease expense for the years ended December 31, 2018 and 2017 was $8.4 million and $9.7 million, respectively. Supplemental cash flow information related to leases was as follows: (in thousands) For the year ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,932 Operating cash flows from finance leases 1,563 Financing cash flows from finance leases 1,180 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 9,250 Finance leases 5,686 The initial recognition of each ROU asset and lease liability at lease commencement is a noncash transaction that is excluded from amounts reported in the Consolidated Statements of Cash Flows. Supplemental balance sheet information related to leases was as follows: (in thousands) December 31, 2019 Operating leases Right of use assets included in Other assets $ 18,223 Lease liabilities included in Accrued liabilities $ 4,023 Other noncurrent liabilities 14,386 Total operating lease liabilities $ 18,409 Finance leases Right-of-use assets included in Property, plant and equipment, net $ 15,689 Lease liabilities included in Accrued liabilities $ 1,835 Other noncurrent liabilities 22,700 Total finance lease liabilities $ 24,535 Additional information for leases existing at December 31, 2019 was as follows: Weighted average remaining lease term Operating leases 6 years Finance leases 10 years Weighted average discount rate Operating leases 4.9 % Finance leases 6.7 % 95 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 20. Leases — (continued) Maturities of lease liabilities as of December 31, 2019 were as follows: (in thousands) Operating leases Finance leases Year ending December 31, 2020 $ 5,153 $ 3,347 2021 4,133 3,347 2022 3,096 3,394 2023 2,128 3,560 2024 1,496 3,560 Thereafter 5,332 15,692 Total lease payments 21,338 32,900 Less imputed interest ( 2,929 ) ( 8,365 ) Total $ 18,409 $ 24,535 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. The following schedule presents future minimum annual payments under the SLC lease finance obligation, and the present value of the minimum payments as of December 31, 2018: (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 $3.6 million. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 21. Commitments and 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 3,708 claims as of December 31, 2019. 96 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 21. Commitments and Contingencies — (continued) The following table sets forth the number of claims filed, the number of claims settled, dismissed or otherwise resolved, and the aggregate settlement amount during the periods presented: Year ended December 31, Opening Number of Claims Claims Dismissed, Settled, or Resolved New Claims Closing Number of Claims Amounts Paid (thousands) to Settle or Resolve 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 3,684 51 75 3,708 $ 25 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 December 31, 2019 we had resolved, by means of settlement or dismissal, 37,797 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 7,710 claims as of December 31, 2019, only twelve 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. |
Stock Options and Incentive Pla
Stock Options and Incentive Plans | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock Options and Incentive Plans | 22. Stock Options and Incentive Plans We recognized no stock option expense during 2019, 2018, or 2017 and there are currently no remaining unvested options for which stock-option compensation costs will be recognized in future periods. There have been no stock options granted since November 2002 and we have no stock option plan under which options may be granted, although options may be granted under the Company’s 2011 incentive plan. Options issued under previous plans and still outstanding were exercisable in five cumulative annual amounts beginning twelve months after date of grant. Option exercise prices were normally equal to and were not permitted to be less than the market value on the date of grant. Unexercised options generally terminate twenty years after the date of grant for all plans, and must be exercised within ten years of retirement. Activity with respect to these plans is as follows: 2019 2018 2017 Shares under option January 1 18,940 29,340 62,390 Options canceled — — 150 Options exercised 6,990 10,400 32,900 Shares under option at December 31 11,950 18,940 29,340 Options exercisable at December 31 11,950 18,940 29,340 The weighted average exercise price is as follows: 2019 2018 2017 Shares under option January 1 $ 17.87 $ 18.40 $ 18.28 Options canceled — — 20.63 Options exercised 16.06 19.38 18.16 Shares under option December 31 18.93 17.87 18.40 Options exercisable December 31 18.93 17.87 18.40 As of December 31, 2019, the aggregate intrinsic value of vested options was $0.7 million. The aggregate intrinsic value of options exercised was $0.4 million in 2019, $0.5 million in 2018, and $1.1 million in 2017. Executive Management share-based compensation: In 2011, shareholders approved the Albany International 2011 Incentive Plan under which awards were granted through 2017. The multi-year awards granted to date under this Plan provide key members of management with incentive compensation based on achieving certain performance targets over a three year period. Such awards are paid out partly in cash and partly in shares of Class A Common Stock. Participants may elect to receive shares net of applicable income taxes. In March 2019, we issued 25,473 shares and made cash payments totaling $1.0 million. In March 2018, we issued 33,425 shares and made cash payments totaling $1.3 million. In March 2017, we issued 25,899 shares and made cash payments totaling $1.0 million. If a person terminates employment prior to the award becoming fully vested, the person may forfeit all or a portion of the incentive compensation award. The grant date share price is determined when the awards are approved each year and that price is used for measuring the cost for the share-based portion of the award. Expense associated with these awards is recognized over the three year vesting period. In connection with this plan, we recognized an insignificant amount of expense in 2019, $0.8 million in 2018, and $2.6 million in 2017. There are no unvested share-based awards in this Plan that are dependent on performance after 2019. Therefore, we do not expect to record additional compensation expense in future periods. 98 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 22. Stock Options and Incentive Plans — (continued) During 2016 and 2017, the Company had an annual incentive plan for executive management whereby 40 to 50 percent of the earned incentive compensation was payable in the form of shares of Class A Common Stock. Participants could elect to receive shares net of applicable income taxes. In March 2018, the Company issued 10,751 shares and made cash payments totaling $1.4 million as a result of performance in 2017. In March 2017, the Company issued 18,784 shares and made cash payments totaling $1.9 million as a result of performance in 2016. The allocation of the award between cash and shares is determined by an average share price after the year of performance. Expense recorded for this plan was $2.6 million in 2017, and $3.3 million in 2016. In 2017, shareholders approved the Albany International 2017 Incentive Plan. This plan provides key members of management with incentive compensation based on achieving certain performance or service measures. Awards can be paid in cash, shares of Class A Common Stock, Options, or other stock-based or incentive compensation awards pursuant to the Plan. Participants may elect to receive shares net of applicable income taxes. The first awards were granted in 2018, under this plan, with a performance period of one year, with cash payments made in March 2019 totaling $1.5 million as a result of performance in 2018. Awards that were granted in 2018 and 2019, with a performance period of three years, have payments scheduled for March 2021 and 2022. If a participant terminates employment prior to the award becoming fully vested, the person may forfeit all or a portion of the incentive compensation award. The grant date share price is determined when the awards are approved each year and that price is used for measuring the cost for the share-based portion of an award. Expense associated with these awards is recognized over the vesting period of the performance period which is generally one to three years. In connection with the 2017 Incentive Plan, we recognized expense of $4.9 million in 2019 and $3.4 million in 2018. For share-based awards that are dependent on performance after 2019, we expect to record additional compensation expense of approximately $0.4 million in 2020 and $0.2 million in 2021. Shares payable under these plans generally vest immediately prior to payment. As of December 31, 2019, there were 1,115,472 shares of Company stock authorized for the payment of awards under these plans. Information with respect to these plans is presented below: Number of shares Weighted average grant date value per share Year-end intrinsic value (000's) Shares potentially payable at January 1, 2017 189,418 $ 36.90 $ 6,989 Forfeitures — — Payments ( 75,545 ) $ 36.35 Shares accrued based on 2017 performance 43,532 $ 48.26 Shares potentially payable at December 31, 2017 157,405 $ 40.30 $ 6,343 Forfeitures — Payments ( 79,762 ) $ 39.90 Shares accrued based on 2018 performance 34,822 $ 70.59 Shares potentially payable at December 31, 2018 112,465 $ 49.96 $ 5,619 Forfeitures — — Payments ( 45,689 ) $ 36.74 Shares accrued based on 2019 performance 14,936 $ 92.12 Shares potentially payable at December 31, 2019 81,712 $ 65.06 $ 5,316 99 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 22. Stock Options and Incentive Plans — (continued) Other Management share-based compensation: In 2012, the Company adopted a Phantom Stock plan whereby awards under this program vest over a five-year period and are paid annually in cash based on current market prices of the Company’s stock. Under this program, employees may earn more or less than the target award based on the Company’s results in the year of the award. Expense recognized for this plan amounted to $6.3 million in 2019, $4.8 million in 2018, and $4.9 million in 2017. Based on awards outstanding at December 31, 2019, we expect to record approximately $11 million of compensation cost from 2020 to 2023. The weighted average period for recognition of that cost is approximately 2 years. The determination of compensation expense for other management share-based compensation plans is based on the number of outstanding share units, the end-of-period share price, and Company performance. Information with respect to these plans is presented below: Number of shares Weighted average value per share Cash paid for share based liabilities (000's) Share units potentially payable at January 1, 2017 261,145 Grants 96,505 Changes due to performance ( 11,891 ) Payments ( 89,190 ) $ 46.64 $ 4,160 Forfeitures ( 20,473 ) Share units potentially payable at December 31, 2017 236,096 Grants 65,370 Changes due to performance 14,343 Payments ( 75,545 ) $ 62.69 $ 4,736 Forfeitures ( 12,963 ) Share units potentially payable at December 31, 2018 227,301 Grants 58,878 Changes due to performance 21,740 Payments ( 69,912 ) $ 70.67 $ 5,528 Forfeitures ( 22,935 ) Share units potentially payable at December 31, 2019 215,072 In 2018 and 2019, the Company granted restricted stock units to four executives. The amount of compensation expense is subject to change in the market price of the Company’s stock and was recorded in Selling, general, and administrative expenses. The vesting and payments due under these grants will occur in various periods from 2019 to 2022. Expense recognized for these grants was $1.1 million in 2019 and $0.5 million in 2018. Based on awards outstanding at December 31, 2019, we expect to record approximately $1.5 million of compensation cost from 2020 to 2023. On January 20, 2020, the Board of Directors of the Company appointed A. William Higgins as President and Chief Executive Officer effective January 20, 2020 to succeed Olivier M. Jarrault, who resigned by mutual agreement with the Board on this date. Mr. Jarrault will receive severance payments and accelerated vesting of 50% of his unvested restricted stock units. The Company expects to record a charge of approximately $3.0 million in 2020 related to these termination benefits. 100 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 22. Stock Options and Incentive Plans — (continued) The Company maintains a voluntary savings plan covering substantially all employees in the United States. The Plan, known as the Prosperity Plus Savings Plan, is a qualified plan under section 401(k) of the U.S. Internal Revenue Code. The Company matches, in the form of cash, between 50 percent and 100 percent of employee contributions up to a defined maximum. The investment of employee contributions to the plan is self-directed. The Company’s cost of the plan amounted to $6.8 million in 2019, $6.3 million in 2018, and $5.9 million in 2017. The Company’s profit-sharing plan covers substantially all employees in the United States. After the close of each year, the Board of Directors determines the amount of the profit-sharing contribution. Company contributions to the plan are in the form of cash. The expense recorded for this plan was $3.7 million in 2019, $3.2 million in 2018, and $2.6 million in 2017. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | 23. Shareholders’ Equity We have two classes of Common Stock, Class A Common Stock and Class B Common Stock, each with a par value of $0.001 and equal liquidation rights. Each share of our Class A Common Stock is entitled to one vote on all matters submitted to shareholders, and each share of Class B Common Stock is entitled to ten votes. Class A and Class B Common Stock will receive equal dividends as the Board of Directors may determine from time to time. The Class B Common Stock is convertible into an equal number of shares of Class A Common Stock at any time. In 2019, a public offering of a portion of the Standish Family shares reduced the number of Class A Common Stock reserved for the conversion of Class B shares, by 1.6 million. At December 31, 2019, 1.6 million shares of Class A Common Stock were reserved for the conversion of Class B Common Stock and the exercise of stock options. In August 2006, we announced that the Board of Directors authorized management to purchase up to 2 million additional shares of our Class A Common Stock. The Board’s action authorizes management to purchase shares from time to time, in the open market or otherwise, whenever it believes such purchase to be advantageous to our shareholders, and it is otherwise legally permitted to do so. We have made no share purchases under the August 2006 authorization. Activity in Shareholders’ equity for 2017, 2018, and 2019 is presented below: 101 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 23. Shareholders’ Equity — (continued) (in thousands) Class A Common Stock Class B Common Stock Additional paid-in capital Retained earnings Accumulated items of other comprehensive income Class A Treasury Stock Noncontrolling Interest Total Equity Shares Amount Shares Amount Shares Amount January 1, 2017 37,319 $ 37 3,234 $ 3 $ 425,953 $ 522,855 $( 184,189 ) 8,443 $( 257,136 ) $ 3,767 $ 511,290 Net income — — — — — 33,111 — — — ( 526 ) 32,585 Compensation and benefits paid or payable in shares 44 — — — 1,564 — — — — — 1,564 Options exercised 33 — — — 597 — — — — — 597 Shares issued to Directors' — — — — 309 — — ( 12 ) 260 — 569 Dividends declared Class A Common Stock, $0.68 per share — — — — — ( 19,685 ) — — — — ( 19,685 ) Class B Common Stock, $0.68 per share — — — — — ( 2,199 ) — — — — ( 2,199 ) Cumulative translation adjustments — — — — — — 45,980 — — 6 45,986 Pension and postretirement liability adjustments — — — — — — 1,183 — — — 1,183 Derivative valuation adjustment . — — — — — — 1,125 — — — 1,125 December 31, 2017 37,396 $ 37 3,234 $ 3 $ 428,423 $ 534,082 $( 135,901 ) 8,431 $( 256,876 ) $ 3,247 $ 573,015 Net income — — — — — 82,891 — — — 128 83,019 Adoption of accounting standards (a),(b) — — — — — ( 5,068 ) — — — ( 327 ) ( 5,395 ) Compensation and benefits paid or payable in shares 44 — — — 1,437 — — — — — 1,437 Options exercised 10 — — — 201 — — — — — 201 Shares issued to Directors' — — — — 494 — — ( 12 ) 273 — 767 Dividends declared Class A Common Stock, $0.69 per share — — — — — ( 20,029 ) — — — — ( 20,029 ) Class B Common Stock, $0.69 per share — — — — — ( 2,231 ) — — — — ( 2,231 ) Cumulative translation adjustments — — — — — — ( 28,658 ) — — ( 17 ) ( 28,675 ) Pension and postretirement liability adjustments — — — — — — 3,427 — — — 3,427 Derivative valuation adjustment . — — — — — — 2,744 — — — 2,744 December 31, 2018 37,450 $ 37 3,234 $ 3 $ 430,555 $ 589,645 $( 158,388 ) 8,419 $( 256,603 ) $ 3,031 $ 608,280 Net income — — — — — 132,398 — — — 985 133,383 Adoption of accounting standards (c) — — — — — 35 — — — — 35 Compensation and benefits paid or payable in shares 26 — — — 1,311 — — — — — 1,311 Options exercised 7 — — — 112 — — — — — 112 Shares issued to Directors' — — — — 540 — — ( 10 ) 212 — 752 Dividends declared Class A Common Stock, $0.73 per share — — — — — ( 21,818 ) — — — — ( 21,818 ) Class B Common Stock, $0.73 per share — — — — — ( 1,763 ) — — — — ( 1,763 ) Conversion of Class B shares to Class A shares (d) 1,616 2 ( 1,616 ) ( 1 ) — ( 1 ) — — — — — Cumulative translation adjustments — — — — — — ( 6,876 ) — — ( 10 ) ( 6,886 ) Pension and postretirement liability adjustments — — — — — — ( 2,885 ) — — — ( 2,885 ) Derivative valuation adjustment . — — — — — — ( 7,832 ) — — — ( 7,832 ) December 31, 2019 39,099 $ 39 1,618 $ 2 $ 432,518 $ 698,496 $( 175,981 ) 8,409 $( 256,391 ) $ 4,006 $ 702,689 (a) As described in Note 2, the Company adopted ASC 606 effective January 1, 2018, which resulted in a decrease to Retained earnings of $5.6 million and a $0.3 million decrease to Noncontrolling interest. 102 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 23. Shareholders’ Equity — (continued) (b) The Company adopted ASU 2016-16 effective January 1, 2018, which resulted in a $0.5 million increase to Retained earnings. (c) As described in Note 20, the Company adopted ASC 842, Leases effective January 1, 2019, which resulted in an increase to Retained earnings of less than $0.1 million. (d) In the second quarter of 2019, Standish Family Holdings, LLC executed a secondary offering of Albany shares. As a result of the offering, 1.6 million shares of Class B Common Stock previously owned by Standish Family Holdings, LLC were converted to Class A Common Stock and then sold to third parties. Costs associated with the offering were charged directly to Standish Family Holdings, LLC. |
Business Acquisition
Business Acquisition | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Business Acquisition | 24. Business Acquisition On November 20, 2019, the Company acquired CirComp GmbH, a privately-held developer and manufacturer of high-performance composite components located in Kaiserslautern, Germany for $32.4 million. The Company also agreed to pay approximately $5.5 million that will become due, as certain post-closing obligations are performed. Expense related to that agreement will be recognized over the five-year The seller provided representations, warranties and indemnities customary for acquisition transactions, including indemnities for certain customer claims identified, before closing. The acquired entity is part of the AEC segment. CirComp specializes in designing and manufacturing customized engineered composite components for aerospace and other demanding industrial applications. The following table summarizes the provisional allocation of the purchase price to the fair value of the assets and liabilities acquired: (in thousands) November 20, 2019 Assets acquired Cash $ 1,607 Accounts receivable 986 Contract assets 2,269 Inventories 525 Prepaid expenses and other current assets 452 Right of use assets 5,686 Property, plant and equipment 4,884 Amortizable intangible assets (see Note 15) 9,973 Goodwill 17,343 Total assets acquired $ 43,725 Liabilities assumed Accounts payable $ 65 Accrued liabilities 2,249 Lease liabilities 502 Deferred income taxes 3,325 Other noncurrent liabilities 5,184 Total liabilities assumed $ 11,325 Net assets acquired $ 32,400 Purchase of business, net of cash acquired $ 30,793 103 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 24. Business Acquisition — (continued) As a result of the acquisition occurring late in the year, the Company is continuing to perform procedures to verify the value of assets and liabilities acquired, particularly Contract assets, amortizable intangible assets and deferred income taxes. Accordingly, adjustments to the values in the above table may be required in future periods. Acquired Goodwill of $17.3 million reflects the Company’s belief that the acquisition complements and expands Albany’s portfolio of proprietary, advanced manufacturing technologies for composite components, increases the Company’s position as a leading innovator in advanced materials processing and automation, and opens a geographic footprint in Europe to better serve our global customer base. The acquisition significantly increases the Company’s opportunities for future growth. The goodwill is non-deductible for tax purposes. The following table presents operational results of the acquired entity that are included in the Consolidated Statements of Income (unaudited): (in thousands, except per share amounts) November 20 to December 31, 2019 Net sales $ 485 Operating loss ( 162 ) Loss before income taxes ( 199 ) Net loss attributable to the Company ( 324 ) Loss per share: Basic $( 0.01 ) Diluted $( 0.01 ) Results in the above table include $0.1 million of expenses related to the $5.5 million of deferred payments noted above. In addition to the amounts reported in the above table, the Company incurred approximately $0.5 million of expenses, principally professional fees, related to the acquisition. The Consolidated Statements of Income reflect operational activity of the acquired business for only the period subsequent to the closing, which has an effect, however insignificant, on the comparability of results. |
Quarterly Financial Data (unaud
Quarterly Financial Data (unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data | 25. Quarterly Financial Data (unaudited) Presented below is certain unaudited quarterly consolidated statement of operations data from continuing operations for each of the quarters in the years ended December 31, 2019, 2018, and 2017. The information has been prepared on substantially the same basis as the audited consolidated financial statements contained in this report. Fourth quarter results presented below may vary from our quarterly earnings report in order to agree to the full year totals. The results of operations for any quarter are not necessarily indicative of the results to be expected for any future period. (in millions, except per share amounts) 1st 2nd 3rd 4th Total 2019 Net sales $ 251.4 $ 273.9 $ 271.1 $ 257.7 $1,054.1 Gross profit 91.8 105.2 104.1 96.6 397.7 Net income attributable to the Company 29.2 34.1 40.0 29.1 132.4 Basic earnings per share 0.90 1.05 1.24 0.91 4.10 Diluted earnings per share 0.90 1.05 1.24 0.91 4.10 Cash dividends per share 0.18 0.18 0.18 0.19 0.73 Class A Common Stock prices: High 78.45 82.91 91.51 90.30 Low 60.82 69.29 78.41 75.92 2018 Net sales $ 223.6 $ 255.4 $ 251.9 $ 251.6 $ 982.5 Gross profit 77.7 91.7 92.4 87.9 349.7 Net income attributable to the Company 7.7 29.9 27.7 17.6 82.9 Basic earnings per share 0.24 0.93 0.86 0.54 2.57 Diluted earnings per share 0.24 0.93 0.86 0.54 2.57 Cash dividends per share 0.17 0.17 0.17 0.18 0.69 Class A Common Stock prices: High 67.30 65.45 81.40 78.31 Low 60.05 58.35 60.70 58.41 2017 Net sales $ 199.3 $ 215.6 $ 222.1 $ 226.7 $ 863.7 Gross profit 76.0 63.2 79.6 77.5 296.3 Net income attributable to the Company 10.8 1.1 15.3 5.9 33.1 Basic earnings per share 0.34 0.03 0.47 0.19 1.03 Diluted earnings per share 0.34 0.03 0.47 0.19 1.03 Cash dividends per share 0.17 0.17 0.17 0.17 0.68 Class A Common Stock prices: High 49.05 53.40 57.60 65.25 Low 43.90 43.90 50.25 56.45 In 2019, restructuring charges (decreased)/increased earnings per share by ($0.01) in the first quarter, ($0.02) in the second quarter, $0.01 in the third quarter, and ($0.04) in the fourth quarter. The charges were primarily related to the closure of the MC Facility in Sélestat, France. In 2019, discrete income tax adjustments, increased/(decreased) earnings per share by $0.10 in the first quarter, ($0.03) in the second quarter, $0.02 in the third quarter, and $0.06 in the fourth quarter. In 2018, restructuring charges reduced earnings per share by $0.18 in the first quarter, $0.06 in the second quarter, $0.06 in the third quarter, and $0.04 in the fourth quarter. The charges are primarily related to the closure of the MC Facility in Sélestat, France and discontinuation of certain manufacturing processes in Salt Lake City. 105 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 25. Quarterly Financial Data (unaudited) — (continued) In 2018, discrete income tax adjustments, increased/(decreased) earnings per share by $0.01 in the first quarter, $0.12 in the second quarter, $0.00 in the third quarter, and ($0.01) in the fourth quarter. In 2017, restructuring charges reduced earnings per share by $0.05 in the first quarter, $0.04 in the second quarter, $0.11 in the third quarter, and $0.07 in the fourth quarter. The amount recognized in the third quarter was primarily non-cash charges associated with the decision to exit a discontinued product line. In 2017, discrete income tax adjustments, increased/(decreased) earnings per share by ($0.03) in the first quarter, ($0.02) in the second quarter, $0.12 in the third quarter, and ($0.21) in the fourth quarter. The amount recognized in the fourth quarter was primarily from changes in U.S. tax laws. In 2017, we recorded a write-off of inventory in a discontinued product line in the third quarter. The write-off (decreased)/increased earnings per share by ($0.06) in the third quarter and $0.01 in the fourth quarter. The Company’s Class A Common Stock is traded principally on the New York Stock Exchange. As of December 31, 2019, there were over 20,000 beneficial owners of the Company’s common stock, including employees owning shares through the Company’s 401(k) defined contribution plan. |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS | Column A Column B Column C Column D Column E Description Balance at beginning of period Charge to expense Other Balance at end of the period Allowance for doubtful accounts Year ended December 31: 2019 $ 7,337 $ 309 $ ( 5,927 ) $ 1,719 2018 7,919 579 ( 1,161 ) 7,337 2017 6,952 1,388 ( 421 ) 7,919 Allowance for sales returns Year ended December 31: 2019 $ 11,343 $ 7,278 $ ( 7,372 ) $ 11,249 2018 11,370 8,372 ( 8,399 ) 11,343 2017 13,714 8,909 ( 11,253 ) 11,370 Valuation allowance deferred tax assets Year ended December 31: 2019 $ 8,389 $ 859 $ ( 146 ) $ 9,102 2018 16,057 ( 4,882 ) ( 2,786 ) 8,389 2017 22,821 ( 3,552 ) ( 3,212 ) 16,057 (A) Amounts sold, written off, or recovered, and the effect of changes in currency translation rates, are included in Column D. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of Consolidation The consolidated financial statements include the accounts of Albany International Corp. and its subsidiaries (the Company, Albany, we, us, or our) after elimination of intercompany transactions. We have a 50 percent interest in an entity in Russia. The consolidated financial statements include our original investment in the entity, plus our share of undistributed earnings or losses, in the account “Other Assets.” The Company owns 90 percent of the common equity of Albany Safran Composites, LLC (ASC) which is reported within the Albany Engineered Composites (AEC) segment. Additional information regarding that entity is included in Note 10. |
Estimates | Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are used in accounting for, among other things, revenue recognition, contract profitability, allowances for doubtful accounts, rebates and sales allowances, inventory allowances, pension benefits, goodwill and intangible assets, contingencies, income tax related balances, and other accruals. Our estimates are based on historical experience and on various other assumptions, which are believed to be reasonable under the circumstances. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may differ from those estimates. Estimates and assumptions are reviewed periodically, and the effects of any revisions are reflected in the consolidated financial statements in the period they are determined to be necessary. |
Revenue Recognition | Revenue Recognition Effective January 1, 2018, the Company adopted the provisions of ASC 606, Revenue from contracts with customers In our Machine Clothing (MC) business segment, prior to 2018, we recorded revenue from the sale of a product when persuasive evidence of an arrangement existed, delivery had occurred, title was transferred, the selling price was fixed, and collectability was reasonably assured. Under the new standard, we recognize MC revenue when we satisfy our performance obligations related to the manufacture and delivery of a product, which, in certain cases, results in earlier recognition of revenue associated with these contracts. In our Albany Engineered Composites (AEC) business segment, revenue from a number of long-term contracts was, prior to 2018, recorded on the basis of the units-of-delivery method, which is considered an output method. Under the new standard, revenue from most of these contracts is recognized over time using an input method as the measure of progress, which generally results in earlier recognition of revenue. Prior to adoption of the new standard, the classification of revenue in excess of progress billings on long-term contracts was included in Accounts receivable. Under the new standard, such assets are considered Contract assets, which are rights to consideration that are conditional on something other than the passage of time, such as completion of remaining performance obligations. As a result of adoption of the new standard, such assets were reclassified at transition from Accounts receivable to Contract assets. In addition, under the new standard, we are required to limit our estimate of contract values to the period of the legally enforceable contract, which in many cases is considerably shorter than the contract period used under the former standard. While certain contracts are expected to be 52 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 1. Accounting Policies — (continued) profitable over the course of the program life when including expected renewals, under the new standard, our estimate of contract revenues and costs is limited to the estimated value of enforceable rights and obligations, excluding anticipated renewals. In some cases, this shorter contract period may result in a loss contract provision at contract inception. Expected losses on projects include losses on contract options that are probable of exercise, excluding profitable options that often follow. Products and services provided under long-term contracts represent a significant portion of sales in the Albany Engineered Composites segment. We have a contract with a major customer for which revenue is recognized under a cost-plus-fee agreement. We also have fixed price long-term contracts, for which we use the percentage of completion (actual cost to estimated cost) method. That method requires significant judgment and estimation, which could be considerably different if the underlying circumstances were to change. When adjustments in estimated contract revenues or costs are required, any changes from prior estimates are included in earnings in the period the change occurs. The sum of net adjustments to the estimated profitability of long-term contracts increased AEC operating income by $10.8 million in 2019, decreased AEC operating income by $2.0 million in 2018, and decreased AEC operating income by $11.5 million in 2017. The favorable effects in 2019 were largely attributable to efficiency improvements during the ramp-up of several programs. The unfavorable effects in 2017 included charges on the BR725 and A380 programs. For contracts with anticipated losses, a provision for the entire amount of the estimated remaining loss is charged against income in the period in which the loss becomes known. Contract losses are determined considering all direct and indirect contract costs, exclusive of any selling, general or administrative cost allocations, which are treated as period expenses. Additional accounting policies related to revenue from contracts with customers are set forth in Note 2. We limit the concentration of credit risk in receivables by closely monitoring credit and collection policies. We record allowances for sales returns as a deduction in the computation of net sales. Such provisions are recorded on the basis of written communication with customers and/or historical experience. Any value added taxes that are imposed on sales transactions are excluded from net sales. |
Cost of Goods Sold | Cost of Goods Sold Cost of goods sold includes the cost of materials, provisions for obsolete inventories, labor and supplies, shipping and handling costs, depreciation of manufacturing facilities and equipment, purchasing, receiving, warehousing, and other expenses. Cost of goods sold also includes provisions for loss contracts and charges for the write-off of inventories that result from an exit activity. |
Selling, General, Administrative, Technical, and Research Expenses | Selling, General, Administrative, Technical, and Research Expenses Selling, general, administrative, and technical expenses are primarily comprised of wages, benefits, travel, professional fees, revaluation of trade foreign currency balances, and other costs, and are expensed as incurred. Selling expense includes provisions for bad debts and costs related to contract acquisition. Research expenses are charged to operations as incurred and consist primarily of compensation, supplies, and professional fees incurred in connection with intellectual property. Total company research expense was $26.9 million in 2019, $29.8 million in 2018, and $30.7 million in 2017. The Albany Engineered Composites segment participates in both company-sponsored, and customer-funded research and development. Some customer-funded research and development may be on a cost-sharing basis and considered to be a collaborative arrangement, in which case both parties are active participants and are exposed to the risks and rewards dependent on the success of the activity. In such cases, amounts charged to the collaborating entity are credited against research and development expense. For customer-funded research and development in which we anticipate funding to exceed expenses, we include amounts charged to the customer in Net sales, while expenses are included in Cost of goods sold. 53 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 1. Accounting Policies — (continued) |
Restructuring Expense | Restructuring Expense We may incur expenses related to exiting a line of business or restructuring of our operations, which could include employee termination costs, costs to consolidate or close facilities, or costs to terminate contractual relationships. Restructuring expenses may also include impairment of Property, plant and equipment, as described below under “Property, Plant and Equipment”. Employee termination costs include the severance pay and social costs for periods after employee service is completed. Termination costs related to an ongoing benefit arrangement are recognized when the amount becomes probable and estimable. Termination costs related to a one-time benefit arrangement are recognized at the communication date to employees. Costs related to contract termination, relocation of employees, outplacement and the consolidation or the closure of facilities, are recognized when incurred. |
Income Taxes | Income Taxes Deferred income taxes are recognized for the tax consequences of temporary differences and tax attributes by applying enacted statutory tax rates applicable for future years to differences between existing assets and liabilities for financial reporting and income tax return purposes. The effect of tax rate changes on deferred taxes is recognized in the income tax provision in the period that includes the enactment date. A valuation allowance is established, as needed, to reduce net deferred tax assets to the amount expected to be realized. In the event it becomes more likely than not that some or all of the deferred tax asset valuation allowances will not be needed, the valuation allowance will be adjusted. In the ordinary course of business there is inherent uncertainty in quantifying our income tax positions. We assess our income tax positions and record tax benefits for all years subject to examination based upon management’s evaluation of the facts, circumstances, and information available at the reporting date. For those tax positions where it is more likely than not that a tax benefit will be sustained, we have determined the amount of the tax benefit to be recognized by estimating the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more-likely-than-not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. Where applicable, associated interest and penalties have also been recognized. We recognize accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. |
Earnings Per Share | Earnings Per Share Basic net income or loss per share is computed using the weighted average number of shares of Class A Common Stock and Class B Common Stock outstanding during each year. Diluted net income per share includes the effect of all potentially dilutive securities. If we report a net loss from continuing operations, the diluted loss is equal to the basic earnings per share calculation. |
Translation of Financial Statements | Translation of Financial Statements Assets and liabilities of non-U.S. operations are translated at year-end rates of exchange, and the income statement accounts are translated at average exchange rates. Gains or losses resulting from translating non-U.S. currency financial statements into U.S. dollars are recorded in other comprehensive income and accumulated in Shareholders’ equity in the caption “Translation adjustments”. Selling, general, and administrative expenses include foreign currency gains and losses resulting from third party balances, such as receivables and payables, which are denominated in a currency other than the entity’s functional currency. Gains or losses resulting from cash and short-term intercompany loans and balances denominated in a currency other than the entity’s functional currency, and foreign currency options are generally included in Other expense, net. Gains and losses on long-term intercompany loans not intended to be repaid in the foreseeable future are recorded in other comprehensive income. There were no such intercompany loans during 2019 and 2018. 54 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 1. Accounting Policies — (continued) The following table summarizes foreign currency transaction gains and losses recognized in the income statement: (in thousands) 2019 2018 2017 (Gains)/losses included in: Selling, general, and administrative expenses $ 1,281 $( 274 ) $ 4,127 Other expense, net ( 4,471 ) ( 67 ) 4,634 Total transaction (gains)/losses $( 3,190 ) $( 341 ) $ 8,761 The following table presents foreign currency gains on long-term intercompany loans that were recognized in Other comprehensive income: (in thousands) 2019 2018 2017 Gain on long-term intercompany loans $ — $ — $ 1,867 |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash and highly liquid short-term investments with original maturities of three months or less. |
Accounts Receivable | Accounts Receivable Accounts receivable includes trade receivables and bank promissory notes. In connection with certain sales in Asia Pacific, 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 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 could be required. The Company also has Noncurrent receivables in the AEC segment that represent revenue earned which have extended payment terms. The Noncurrent receivables will be invoiced to the customer, with 2% interest, over a 10-year period starting in 2020. See additional information set forth in Notes 2 and 11. |
Contract Assets and Contract Liabilities | Contract Assets and Contract 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 payment becomes unconditional. Contract liabilities include advance payments and billings in excess of revenue recognized. Contract liabilities are included in Accrued liabilities in the Consolidated Balance Sheet. See additional information set forth in Notes 2 and 12. 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. Write-downs of inventories are charged to Cost of goods sold. 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. 55 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 1. Accounting Policies — (continued) |
Inventories | See additional information set forth in Notes 2 and 13. |
Leases | Leases Effective January 1, 2019, we adopted the provisions of ASC 842, Leases, using the effective date (or modified retrospective) approach for transition. Under this transition method, periods prior to 2019 have not been restated, and the cumulative effect of initially applying the new standard was recorded as an adjustment to Retained earnings at January 1, 2019. 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 under the new standard is the recognition of ROU assets and lease liabilities by lessees for those leases classified as operating leases. Under the new 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 of January 1, 2019. We elected the available package of practical expedients, which permitted us to not 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 related to this standard. The most significant impacts 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, as well as 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, transitional 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. We have certain lease agreements with lease and non-lease components. For most of these 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 other leases, such as for vehicles, we apply a portfolio approach. Such new leases are classified as financing or operating, with classification affecting the pattern and classification of expense recognition in the income statement. Expenses related to operating leases are recognized on a straight-line basis, while those determined to be financing leases are 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, while finance lease ROU assets are included in Property, plant, and equipment, net. Lease liabilities for both operating and finance leases are included in Accrued liabilities and Other noncurrent liabilities in the Consolidated Balance Sheets. See additional information set forth in Note 20. 56 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 1. Accounting Policies — (continued) |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are recorded at cost, or if acquired as part of a business combination, at fair value. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets for financial reporting purposes. In some cases, accelerated methods are used for income tax purposes. Significant additions or improvements extending assets’ useful lives are capitalized; normal maintenance and repair costs are expensed as incurred. The cost of fully depreciated assets remaining in use is included in the respective asset and accumulated depreciation accounts. When items are sold or retired, related gains or losses are included in net income. Computer software purchased for internal use, at cost, is amortized on a straight-line basis over five to eight years, depending on the nature of the asset, after being placed into service, and is included in property, plant, and equipment. We capitalize internal and external costs incurred related to the software development stage. Capitalized salaries, travel, and consulting costs related to the software development were immaterial in 2019 and 2018. We review the carrying value of property, plant and equipment and other long-lived 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. See additional information set forth in Note 14. |
Goodwill, Intangibles, and Other Assets | Goodwill, Intangibles, and Other 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. See additional information set forth in Note 15. Intangible assets acquired in a business combination are recognized at fair value and amortized to Cost of goods sold or Selling, general and administrative expenses over the estimated useful lives of the assets. We review amortizable intangible asset groups for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. We have an investment in a company in Russia that is accounted for under the equity method of accounting and is included in Other assets, amounting to $0.5 million in 2019 and $0.4 million in 2018. We perform regular reviews of the financial condition of the investee to determine if our investment is other than temporarily impaired. If the financial condition of the investee were to no longer support their valuation, we would record an impairment provision. For some AEC contracts, we perform pre-production or nonrecurring engineering services. These costs are normally considered a fulfillment activity, rather than a performance obligation. Fulfillment activities that create resources that will be used in satisfying performance obligations in the future, and are expected to be recovered, are capitalized to Other assets, which is classified as a noncurrent asset in the Consolidated Balance Sheets. The capitalized costs are amortized into Cost of goods sold over the period over which the asset is expected to contribute to future cash flows, which includes anticipated renewal periods. Included in Other assets is $21.3 million in 2019 and $14.2 million in 2018 for defined benefit pension plans where plan assets exceed the projected benefit obligations. Other assets also includes financial assets of $0.8 million in 2019 and $5.3 million in 2018. See additional information set forth in Note 18. 57 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 1. Accounting Policies — (continued) |
Stock-Based Compensation | Stock-Based Compensation We have stock-based compensation plans for key employees. Stock options are accounted for in accordance with applicable guidance for the modified prospective transition method of share-based payments. No options have been granted since 2002. See additional information set forth in Note 22. |
Derivatives | Derivatives We use derivatives from time to time to reduce potentially large adverse effects from changes in currency exchange rates and interest rates. We monitor our exposure to these risks and evaluate, on an ongoing basis, the risk of potentially large adverse effects versus the costs associated with hedging such risks. We may use interest rate swaps in the management of interest rate exposures and foreign currency derivatives in the management of foreign currency exposure related to assets and liabilities (including net investments in subsidiaries located outside the U.S.) denominated in foreign currencies. When we enter into a derivative contract, we make a determination whether the transaction is deemed to be a hedge for accounting purposes. For those contracts deemed to be a hedge, we formally document the relationship between the derivative instrument and the risk being hedged. In this documentation, we specifically identify the asset, liability, forecasted transaction, cash flow, or net investment that has been designated as the hedged item, and evaluate whether the derivative instrument is expected to reduce the risks associated with the hedged item. To the extent these criteria are not met, we do not use hedge accounting for the derivative. All derivative contracts are recorded at fair value, as a net asset or a net liability. Changes in the fair value of the hedge are recorded, net of tax, in other comprehensive income. For transactions that are designated as hedges, we perform an evaluation of the effectiveness of the hedge. We measure the effectiveness of hedging relationships both at inception and on an ongoing basis. For derivatives that are designated and qualify as hedges of net investments in subsidiaries located outside the United States, changes in the fair value of derivatives are reported in other comprehensive income as part of the Cumulative translation adjustment. |
Pension and Postretirement Benefit Plans | Pension and Postretirement Benefit Plans As described in Note 4, we have pension and postretirement benefit plans covering substantially all employees. Our defined benefit pension plan in the United States was closed to new participants as of October 1998 and, as of February 2009, benefits accrued under this plan were frozen. We have liabilities for postretirement benefits in the U.S. and Canada. Substantially all of the liability relates to the U.S. plan. Effective January 2005, our postretirement benefit plan in the U.S. was closed to new participants, except for certain life insurance benefits. In September 2008, we changed the cost sharing arrangement under this program such that increases in health care costs are the responsibility of plan participants and, in August 2013, we reduced the life insurance benefit for retirees and eliminated that benefit for active employees. The pension plans are generally trusteed or insured, and accrued amounts are funded as required in accordance with governing laws and regulations. The annual expense and liabilities recognized for defined benefit pension plans and postretirement benefit plans are developed from actuarial valuations. Inherent in these valuations are key assumptions, including discount rates and expected return on plan assets, which are updated on an annual basis. We consider current market conditions, including changes in interest rates, in making these assumptions. Discount rate assumptions are based on the population of plan participants and a mixture of high-quality fixed-income investments with durations that match expected future payments. The assumption for expected return on plan assets is based on historical and expected returns on various categories of plan assets. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, an accounting update was issued which replaces the incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The measurement of expected credit losses under the current expected losses (CECL) methodology is applicable to financial assets measured at amortized cost, which includes Short-term securities, Trade receivables, Contract assets, and Noncurrent receivables. The Company is required to estimate a CECL allowance using relevant available information. Historical credit loss experience will provide the basis for the estimation of expected credit losses, and adjustments may be made for differences in current asset-specific risk characteristics. A CECL allowance for credit losses will be measured on a collective (pool) basis when similar risk characteristics exist. Where financial instruments do not share risk characteristics, they will be evaluated on an individual basis. The principal effect on the Company’s financial statements will be an increase in credit loss reserve on financial instruments, which the Company does not expect to be material. The Company will adopt the new standard using a modified retrospective transition approach as of January 1, 2020, which will be our date of initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2020. Additionally, the Company is evaluating changes to our accounting policies, processes and internal controls to ensure we meet the standard’s reporting and disclosure requirements. 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 will adopt the new standard as of January 1, 2020 and do not expect the adoption to significantly impact our financial statements. 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 plan to adopt the new standard effective January 1, 2021. We do not expect the adoption of this update to significantly impact our financial statements. 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 will adopt the new standard as of January 1, 2020 and do not expect the adoption to significantly impact our financial statements. In December 2019, an accounting update was issued which removes certain exceptions for recognizing deferred taxes for investments and performing intra-period tax allocations. The update also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. We plan to adopt the new standard as of January 1, 2021 and we are assessing the potential impact on our financial statements. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Foreign Currency Transaction Gains and Losses | The following table presents foreign currency gains on long-term intercompany loans that were recognized in Other comprehensive income: (in thousands) 2019 2018 2017 Gain on long-term intercompany loans $ — $ — $ 1,867 |
Schedule of foreign currency gains and losses on long-term intercompany loans | The following table summarizes foreign currency transaction gains and losses recognized in the income statement: (in thousands) 2019 2018 2017 (Gains)/losses included in: Selling, general, and administrative expenses $ 1,281 $( 274 ) $ 4,127 Other expense, net ( 4,471 ) ( 67 ) 4,634 Total transaction (gains)/losses $( 3,190 ) $( 341 ) $ 8,761 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition [Abstract] | |
Schedule of Summary of Composition of Each Business Segment | The following table provides a summary of the composition of each business segment: Segment Product Group Principal Product or Service Principal Locations Machine Clothing (MC) Machine Clothing Paper machine clothing: Permeable and impermeable belts used in the manufacture of paper, paperboard, tissue and towel, and pulp World-wide Engineered fabrics: Belts used in the manufacture of nonwovens, fiber cement and several other industrial applications Albany Engineered Composites (AEC) Albany Safran Composites (ASC) 3D-woven, injected composite components for aircraft engines Rochester, NH Commercy, France Queretaro, Mexico Airframe and engine Components (Other AEC) Composite airframe and engine components for military and commercial aircraft Salt Lake City, UT Boerne, TX Queretaro, Mexico Kaiserslautern, Germany |
Schedule of Disaggregate Revenue for Each Business Segment | We disaggregate revenue earned from contracts with customers for each of our business segments and product groups based on the timing of revenue recognition, and groupings used for internal review purposes. The following table presents disaggregated revenue for each product group by timing of revenue recognition: For the year ended December 31, 2019 (in thousands) Point in Time Revenue Recognition Over Time Revenue Recognition Total Machine Clothing $ 598,054 $ 3,200 $ 601,254 Albany Engineered Composites ASC — 220,188 220,188 Other AEC 28,584 204,106 232,690 Total Albany Engineered Composites 28,584 424,294 452,878 Total revenue $ 626,638 $ 427,494 $ 1,054,132 For the year ended December 31, 2018 (in thousands) Point in Time Revenue Recognition Over Time Revenue Recognition Total Machine Clothing $ 608,658 $ 3,200 $ 611,858 Albany Engineered Composites ASC — 182,699 182,699 Other AEC 21,614 166,308 187,922 Total Albany Engineered Composites 21,614 349,007 370,621 Total revenue $ 630,272 $ 352,207 $ 982,479 |
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 years ended December 31, (in thousands) 2019 2018 Americas PMC $ 316,355 $ 303,768 Eurasia PMC 210,961 227,493 Engineered Fabrics 73,938 80,597 Total Machine Clothing Net sales $ 601,254 $ 611,858 |
Reportable Segments and Geogr_2
Reportable Segments and Geographic Data (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Financial Data by Reporting Segment | As described in Note 2, effective January 1, 2018, the Company adopted the provisions of ASC 606, “Revenue from contracts with customers”, using the cumulative effect method for translation. Periods prior to 2018 have not been restated. The following tables show data by reportable segment, reconciled to consolidated totals included in the financial statements: (in thousands) 2019 2018 2017 Year ended December 31, 2018 Increase/(decrease) attributable to application of ASC 606 Net Sales Machine Clothing $ 601,254 $ 611,858 $ 590,357 $( 3,970 ) Albany Engineered Composites 452,878 370,621 273,360 ( 3,150 ) Consolidated total $ 1,054,132 $ 982,479 $ 863,717 $( 7,120 ) Depreciation and amortization Machine Clothing 21,875 30,813 33,527 — Albany Engineered Composites 44,670 43,205 33,533 — Corporate expenses 4,250 5,018 4,896 — Consolidated total $ 70,795 $ 79,036 $ 71,956 $ — Operating income/(loss) Machine Clothing 191,965 169,836 153,980 ( 1,605 ) Albany Engineered Composites 55,520 16,647 ( 31,657 ) 4,930 Corporate expenses ( 53,909 ) ( 49,075 ) ( 43,647 ) — Operating income $ 193,576 $ 137,408 $ 78,676 $ 3,325 Reconciling items: Interest income ( 2,729 ) ( 2,118 ) ( 1,511 ) — Interest expense 19,650 20,242 18,602 — Other expense, net ( 1,557 ) 4,037 6,877 — Income before income taxes $ 178,212 $ 115,247 $ 54,708 $ 3,325 The table below presents restructuring costs by reportable segment (also see Note 5): (in thousands) 2019 2018 2017 Restructuring expenses, net Machine Clothing $ 1,129 $ 12,278 $ 3,429 Albany Engineered Composites 1,833 3,048 10,062 Corporate expenses ( 57 ) 244 — Consolidated total $ 2,905 $ 15,570 $ 13,491 |
Schedule of Restructuring Costs by Reporting Segment | The table below presents restructuring costs by reportable segment (also see Note 5): |
Schedule of Operating Assets and Capital Expenditures by Reporting Segment | The following table presents assets and capital expenditures by reportable segment: (in thousands) 2019 2018 2017 Segment assets Machine Clothing $ 441,072 $ 453,836 $ 464,468 Albany Engineered Composites 693,799 633,394 584,076 Reconciling items: Cash 195,540 197,755 183,727 Income taxes prepaid, receivable and deferred 57,783 70,095 74,914 Prepaid and Other assets 86,174 62,912 54,013 Consolidated total assets $ 1,474,368 $ 1,417,992 $ 1,361,198 Capital expenditures and purchased software Machine Clothing $ 16,707 $ 20,230 $ 20,522 Albany Engineered Composites 48,753 60,121 63,865 Corporate expenses 2,495 2,535 3,250 Consolidated total $ 67,955 $ 82,886 $ 87,637 |
Schedule of Financial Data by Geographic Area | 65 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 3. Reportable Segments and Geographic Data — (continued) The following table shows data by geographic area. Net sales are based on the location of the operation recording the final sale to the customer. Net sales recorded by our entity in Switzerland are derived from products sold throughout Europe and Asia, and are invoiced in various currencies. (in thousands) 2019 2018 2017 Net sales United States $ 574,063 $ 519,349 $ 459,525 Switzerland 146,571 157,339 147,601 France 91,783 85,386 57,195 Mexico 73,039 48,534 31,902 Brazil 64,666 62,093 60,535 China 48,586 50,923 48,920 Other countries 55,424 58,855 58,039 Consolidated total $ 1,054,132 $ 982,479 $ 863,717 Property, plant and equipment, at cost, net United States $ 275,965 $ 272,584 $ 252,639 Mexico 45,640 40,343 22,981 France 43,986 50,245 58,196 China 41,799 48,686 61,840 United Kingdom 11,047 12,042 14,256 South Korea 10,795 12,396 14,558 Germany (a) 10,577 27 39 Canada 9,509 8,154 10,230 Other countries 17,144 17,578 19,563 Consolidated total $ 466,462 $ 462,055 $ 454,302 |
Pensions and Other Postretire_2
Pensions and Other Postretirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Plan Benefit Obligations | The following table sets forth the plan benefit obligations: As of December 31, 2019 As of December 31, 2018 (in thousands) Pension plans Other postretirement benefits Pension plans Other postretirement benefits Benefit obligation, beginning of year $ 201,450 $ 51,127 $ 230,911 $ 58,531 Service cost 2,543 189 2,723 232 Interest cost 7,216 2,115 7,217 2,024 Plan participants' contributions 243 — 228 — Actuarial (gain)/loss 22,645 4,686 ( 10,666 ) ( 6,100 ) Benefits paid ( 8,404 ) ( 3,782 ) ( 7,814 ) ( 3,473 ) Settlements and curtailments ( 1,768 ) — ( 13,807 ) — Plan amendments and other 152 — 534 — Foreign currency changes 3,134 49 ( 7,876 ) ( 87 ) Benefit obligation, end of year $ 227,211 $ 54,384 $ 201,450 $ 51,127 Accumulated benefit obligation $ 218,006 $ — $ 193,870 $ — Weighted average assumptions used to determine benefit obligations, end of year: Discount rate — U.S. plan 3.40 % 3.27 % 4.41 % 4.31 % Discount rate — non-U.S. plans 2.31 % 3.05 % 2.98 % 3.65 % Compensation increase — U.S. plan — 3.00 % — 3.00 % Compensation increase — non-U.S. plans 2.81 % 3.00 % 3.02 % 3.00 % |
Schedule of Plan Assets | The following sets forth information about plan assets: As of December 31, 2019 As of December 31, 2018 (in thousands) Pension plans Other postretirement benefits Pension plans Other postretirement benefits Fair value of plan assets, beginning of year $ 178,942 $ — $ 205,586 $ — Actual return on plan assets, net of expenses 32,367 — ( 8,449 ) — Employer contributions 4,670 3,782 10,071 3,474 Plan participants' contributions 243 — 228 14 Benefits paid ( 8,404 ) ( 3,782 ) (7,813) (3,488) Settlements ( 260 ) — ( 13,029 ) — Foreign currency changes 4,197 — ( 7,652 ) — Fair value of plan assets, end of year $ 211,755 $ — $ 178,942 $ — |
Schedule of Funded Status of Plans | The funded status of the plans was as follows: As of December 31, 2019 As of December 31, 2018 (in thousands) Pension plans Other postretirement benefits Pension plans Other postretirement benefits Fair value of plan assets $ 211,755 $ — $ 178,942 $ — Benefit obligation 227,211 54,384 201,450 51,127 Funded status $ ( 15,456 ) $( 54,384 ) $ ( 22,508 ) $( 51,127 ) Accrued benefit cost, end of year $ (15,456) $(54,384) $ (22,508) $(51,127) Amounts recognized in the consolidated balance sheet consist of the following: Noncurrent asset $ 21,337 $ — $ 14,206 $ — Current liability ( 2,155 ) ( 3,808 ) ( 2,124 ) ( 3,890 ) Noncurrent liability ( 34,638 ) ( 50,576 ) ( 34,590 ) ( 47,237 ) Net amount recognized $ ( 15,456 ) $( 54,384 ) $ ( 22,508 ) $( 51,127 ) Amounts recognized in accumulated other comprehensive income consist of: Net actuarial loss $ 63,240 $ 28,119 $ 68,110 $ 25,660 Prior service cost/(credit) 639 ( 17,434 ) 1,020 ( 21,922 ) Net amount recognized $ 63,879 $ 10,685 $ 69,130 $ 3,738 |
Schedule of composition of the net pension plan funded status | The composition of the net pension plan funded status as of December 31, 2019 was as follows: (in thousands) U.S. plan Non-U.S. plans Total Pension plans with pension assets $(660) $17,546 $16,886 Pension plans without pension assets (6,799) (25,543) (32,342) Total $(7,459) $(7,997) $(15,456) |
Schedule of Net Periodic Benefit Plan Cost | The composition of the net periodic benefit plan cost for the years ended December 31, 2019, 2018, and 2017, was as follows: Pension plans Other postretirement benefits (in thousands) 2019 2018 2017 2019 2018 2017 Components of net periodic benefit cost: Service cost $ 2,543 $ 2,723 $ 2,720 $ 189 $ 232 $ 244 Interest cost 7,216 7,217 7,476 2,114 2,024 2,214 Expected return on assets ( 8,285 ) ( 8,873 ) ( 8,152 ) — — — Amortization of prior service cost/(credit) 68 34 36 ( 4,488 ) ( 4,488 ) ( 4,488 ) Amortization of net actuarial loss 2,253 2,219 2,628 2,227 2,956 2,811 Settlement ( 16 ) 2,246 — — — — Curtailment (gain)/loss 466 ( 752 ) — — — — Net periodic benefit cost $ 4,245 $ 4,814 $ 4,708 $ 42 $ 724 $ 781 Weighted average assumptions used to determine net cost: Discount rate — U.S. plan 4.41 % 3.70 % 4.20 % 4.31 % 3.59 % 4.00 % Discount rate — non-U.S. plans 2.98 % 2.83 % 2.98 % 3.65 % 3.40 % 3.70 % Expected return on plan assets — U.S. plan 4.57 % 3.87 % 4.40 % — — — Expected return on plan assets — non-U.S. plans 4.45 % 4.83 % 4.46 % — — — Rate of compensation increase — U.S. plan — — — 3.00 % — — Rate of compensation increase — non-U.S. plans 3.02 % 3.04 % 3.29 % 3.00 % 3.00 % 3.00 % |
Schedule of Pretax (gains)/Losses Recognized in Other Comprehensive Income | Pretax (gains)/losses on plan assets and benefit obligations recognized in other comprehensive income for the years ended December 31, 2019, 2018, and 2017, was as follows: Pension plans Other postretirement benefits (in thousands) 2019 2018 2017 2019 2018 2017 Settlements/curtailments $ ( 450 ) $( 1,494 ) $ — $ — $ — $ — Asset/liability loss/(gain) ( 2,794 ) 6,411 ( 4,408 ) 4,685 ( 6,100 ) 2,743 Amortization of actuarial (loss) ( 2,253 ) ( 2,219 ) ( 2,628 ) ( 2,227 ) ( 2,956 ) ( 2,811 ) Amortization of prior service cost/(credit) ( 68 ) ( 34 ) ( 36 ) 4,488 4,488 4,488 Currency impact 316 ( 1,389 ) 1,930 — — 2 Cost/(benefit) in Other comprehensive income $( 5,249 ) $ 1,275 $( 5,142 ) $ 6,946 $( 4,568 ) $ 4,422 |
Schedule of Amounts That Will Be Amortized from Accumulated Other Comprehensive Income | The estimated amounts that will be amortized from accumulated other comprehensive income into net periodic benefit cost in 2020 are as follows: (in thousands) Total pension Total postretirement benefits Actuarial loss $ 2,409 $ 2,592 Prior service cost/(benefit) 32 ( 4,488 ) Total $ 2,441 $( 1,896 ) |
Schedule of Fair Value of Plan Assets | The following tables present plan assets as of December 31, 2019, and 2018, using the fair-value hierarchy, which has three levels based on the reliability of inputs used, as described in Note 17. Certain investments that are measured at fair value using net asset value (NAV) as a practical expedient are not required to be categorized in the fair value hierarchy table. The total fair value of these investments is included in the table below to permit reconciliation of the fair value hierarchy to amounts presented in the funded status table above. As of December 31, 2019 and 2018, there were no investments expected to be sold at a value materially different than NAV. 71 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 4. Pensions and Other Postretirement Benefit Plans — (continued) Assets at Fair Value as of December 31, 2019 (in thousands) Quoted prices in active markets Level 1 Significant other observable inputs Level 2 Significant unobservable inputs Level 3 Total Common Stocks and equity funds $ 216 $ — $ — $ 216 Debt securities — 92,721 — 92,721 Insurance contracts — — 3,244 3,244 Cash and short-term investments 2,793 — — 2,793 Total investments in the fair value hierarchy $ 3,009 $ 92,721 $ 3,244 98,974 Investments at net asset value: Common Stocks and equity funds 56,846 Fixed income funds 52,751 Limited partnerships 3,184 Total plan assets $ 211,755 Assets at Fair Value as of December 31, 2018 (in thousands) Quoted prices in active markets Level 1 Significant other observable inputs Level 2 Significant unobservable inputs Level 3 Total Common Stocks and equity funds $ 284 $ — $ — $ 284 Debt securities — 78,523 — 78,523 Insurance contracts — — 2,890 2,890 Cash and short-term investments 3,016 — — 3,016 Total investments in the fair value hierarchy $ 3,300 $ 78,523 $ 2,890 84,713 Investments at net asset value: Common Stocks and equity funds 42,852 Fixed income funds 47,534 Limited partnerships 3,843 Total plan assets $ 178,942 |
Reconciliation of Level 3 Assets | The following tables present a reconciliation of Level 3 assets held during the years ended December 31, 2019 and 2018: (in thousands) December 31, 2018 Net realized gains Net unrealized gains Net purchases, issuances and settlements Net transfers (out of) Level 3 December 31, 2019 Insurance contracts - total level 3 assets $ 2,890 $ — $ 20 $ 334 $ — $ 3,244 (in thousands) December 31, 2017 Net realized gains Net unrealized gains Net purchases, issuances and settlements Net transfers (out of) Level 3 December 31, 2018 Insurance contracts - total level 3 assets $ 2,407 $ — $( 45 ) $ 528 $ — $ 2,890 |
Schedule of Asset Allocation | The asset allocation for the Company’s U.S. and non-U.S. pension plans for 2019 and 2018, and the target allocation, by asset category, are as follows: United States Plan Non-U.S. Plans Target Percentage of plan assets at plan measurement date Target Percentage of plan assets at plan measurement date Asset category Allocation 2019 2018 Allocation 2019 2018 Equity securities — % 1 % 1 % 13 % 13 % 19 % Debt securities 100 % 96 % 94 % 82 % 80 % 74 % Real estate — % 2 % 4 % 1 % 1 % 1 % Other (1) — % 1 % 1 % 4 % 6 % 6 % 100 % 100 % 100 % 100 % 100 % 100 % (1) Other includes hedged equity and absolute return strategies, and private equity. The Company has procedures to closely monitor the performance of these investments and compares asset valuations to audited financial statements of the funds. The targeted plan asset allocation is based on an analysis of the actuarial liabilities, a review of viable asset classes, and an analysis of the expected rate of return, risk, and other investment characteristics of various investment asset classes. |
Schedule of Pension Plans with Projected Benefit Obligation in Excess of Plan Assets and for Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets | At the end of 2019 and 2018, the projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for pension plans with projected benefit obligation and an accumulated benefit obligation in excess of plan assets were as follows: Plans with projected benefit obligation in excess of plan assets (in thousands) 2019 2018 Projected benefit obligation $ 137,123 $ 123,261 Fair value of plan assets 100,330 86,547 Plans with accumulated benefit obligation in excess of plan assets (in thousands) 2019 2018 Accumulated benefit obligation $ 134,737 $ 120,869 Fair value of plan assets 100,330 86,062 |
Schedule of Expected Cash Flows | Information about expected cash flows for the pension and other benefit obligations are as follows: (in thousands) Pension plans Other postretirement benefits Expected employer contributions and direct employer payments in the next fiscal year $ 2,446 $ 3,808 Expected benefit payments 2020 7,905 3,808 2021 8,537 3,738 2022 8,755 3,683 2023 9,068 3,631 2024 9,531 3,555 2025-2029 53,652 16,569 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 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”: Year ended December 31, 2019 (in thousands) Total restructuring costs incurred Termination and other costs Impairment of assets Machine Clothing $ 1,129 $ 667 $ 462 Albany Engineered Composites 1,833 659 1,174 Corporate expenses ( 57 ) ( 57 ) — Total $ 2,905 $ 1,269 $ 1,636 Year ended December 31, 2018 (in thousands) Total restructuring costs incurred Termination and other costs Impairment of assets Machine Clothing $ 12,278 $ 11,890 $ 388 Albany Engineered Composites 3,048 1,286 1,762 Corporate expenses 244 244 — Total $ 15,570 $ 13,420 $ 2,150 74 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 5. Restructuring — (continued) Year ended December 31, 2017 (in thousands) Total restructuring costs incurred Termination and other costs Impairment of assets Machine Clothing $ 3,429 $ 2,945 $ 484 Albany Engineered Composites 10,062 5,004 5,058 Corporate expenses — — — Total $ 13,491 $ 7,949 $ 5,542 |
Schedule of Restructuring Liability | We expect that approximately $1.3 million of Accrued liabilities for restructuring at December 31, 2019 will be paid within one year and approximately $0.7 million will be paid the following year. The table below presents the changes in restructuring liabilities for 2019 and 2018, all of which related to termination costs: (in thousands) December 31, 2018 Restructuring charges accrued Payments Currency translation/ other December 31, 2019 Total termination and other costs $ 5,570 $ 1,269 $( 5,084 ) $ 287 $ 2,042 (in thousands) December 31, 2017 Restructuring charges accrued Payments Currency translation/ other December 31, 2018 Total termination and other costs $ 3,326 $ 13,420 $( 10,696 ) $( 480 ) $ 5,570 |
Other Expense, net (Tables)
Other Expense, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Other Expense, Net | The components of Other (income)/expense, net, are: (in thousands) 2019 2018 2017 Currency transactions $(4,473) $ ( 67 ) $ 4,634 Bank fees and amortization of debt issuance costs 348 417 487 Pension settlements and curtailments 450 1,494 — Components of net periodic pension and postretirement cost other than service 1,105 1,089 2,525 Gain on insurance recovery — — ( 2,000 ) Other 1,013 1,104 1,231 Total $( 1,557 ) $ 4,037 $ 6,877 In 2019, the Company took actions to freeze accrued benefits under the United Kingdom defined benefit pension plan, which resulted in a curtailment charge of $0.5 million. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax (Benefit)/Expense | The following tables present components of income tax expense/(benefit) and income before income taxes on continuing operations: (in thousands) 2019 2018 2017 Income tax based on income from continuing operations, at estimated tax rates of 28%, 31%, and 32%, respectively $ 49,977 $ 36,044 $ 17,519 Income tax before discrete items 49,977 36,044 17,519 Discrete tax expense/(benefit): Net impact of mandatory deemed repatriation — ( 1,003 ) 5,758 Provision for/resolution of tax audits and contingencies, net ( 2,874 ) 1,286 1,329 Adjustments to prior period tax liabilities ( 1,637 ) ( 1,284 ) ( 840 ) Provision for/adjustment to beginning of year valuation allowances ( 525 ) ( 4,882 ) ( 3,522 ) Enacted tax legislation ( 112 ) 2,067 1,879 Total income tax expense $ 44,829 $ 32,228 $ 22,123 (in thousands) 2019 2018 2017 Income/(loss) before income taxes: U.S. $ 76,024 $ 41,875 $ ( 5,865 ) Non-U.S. 102,188 73,372 60,573 $ 178,212 $ 115,247 $ 54,708 Income tax provision Current: Federal $ 780 $ 304 $ 1,551 State 6,357 4,996 1,770 Non-U.S. 25,255 21,557 19,282 $ 32,392 $ 26,857 $ 22,603 Deferred: Federal $ 10,583 $ 10,700 $ 1,881 State 253 ( 338 ) ( 1,237 ) Non-U.S. 1,601 ( 4,991 ) ( 1,124 ) $ 12,437 $ 5,371 $ ( 480 ) Total income tax expense $ 44,829 $ 32,228 $ 22,123 |
Schedule of Income/(Loss) From Continuing Operations | The significant components of deferred income tax expense/(benefit) are as follows: (in thousands) 2019 2018 2017 Net effect of temporary differences $ ( 18 ) $( 4,657 ) $( 5,774 ) Foreign tax credits 12,530 9,437 8,340 Retirement benefits ( 752 ) 2,360 ( 502 ) Net impact to operating loss carryforwards 1,314 1,046 ( 900 ) Enacted changes in tax laws and rates ( 112 ) 2,067 1,878 Adjustment to beginning-of-the-year valuation allowance balance for changes in circumstances ( 525 ) ( 4,882 ) ( 3,522 ) Total $ 12,437 $ 5,371 $ ( 480 ) |
Schedule of significant components of deferred income tax expense/(benefit) | A reconciliation of the U.S. federal statutory tax rate to the Company’s effective income tax rate is as follows: 2019 2018 2017 U.S. federal statutory tax rate 21.0 % 21.0 % 35.0 % State taxes, net of federal benefit 3.0 2.9 0.4 Non-U.S. local income taxes 4.4 3.3 5.9 US permanent adjustments — ( 0.3 ) 0.5 Foreign permanent adjustments 0.4 ( 0.4 ) 0.4 Foreign rate differential 0.5 0.2 ( 10.5 ) Net U.S. tax on non-U.S. earnings and foreign withholdings 0.3 5.7 11.9 Provision for/resolution of tax audits and contingencies, net ( 1.6 ) 1.1 2.4 Research and development and other tax credits ( 0.3 ) ( 0.1 ) ( 1.5 ) Provision for/adjustment to beginning of year valuation allowances ( 0.3 ) ( 4.2 ) ( 6.4 ) Enacted tax legislation and rate change ( 0.1 ) 1.8 3.0 Return to provision and other adjustments ( 2.1 ) ( 3.0 ) ( 0.7 ) Effective income tax rate 25.2 % 28.0 % 40.4 % |
Reconciliation of the U.S. Federal Statutory Tax Rate to the Company's Effective Income Tax Rate | U.S. Non-U.S. (in thousands) 2019 2018 2019 2018 Noncurrent deferred tax assets: Accounts receivable $ 823 $ 686 $ 1,050 $ 1,224 Inventories 636 442 1,231 829 Deferred compensation 4,730 4,460 1,386 1,053 Depreciation and amortization — — 4,892 4,252 Postretirement benefits 14,885 14,759 1,048 1,667 Tax loss carryforwards 2,266 1,199 21,467 21,890 Tax credit carryforwards 15,931 30,523 936 1,197 Derivatives 1,411 — — — Reserves 2,953 3,954 — — Deferred Revenue 2,417 3,556 — — Other — 516 — 990 Noncurrent deferred tax assets before valuation allowance 46,052 60,095 32,010 33,102 Less: valuation allowance — — ( 9,102 ) ( 8,389 ) Total noncurrent deferred tax assets 46,052 60,095 22,908 24,713 Total deferred tax assets $ 46,052 $ 60,095 $ 22,908 $ 24,713 Noncurrent deferred tax liabilities: Unrepatriated foreign earnings $ 2,202 $ 4,028 $ — $ — Depreciation and amortization 4,404 12,848 — — Postretirement benefits — — — — Deferred gain 3,391 3,762 — — Derivatives — 1,162 — — Flow-through DTL's 6,205 2,192 — — Deferred Revenue — — 8,492 5,740 Other 510 — 3,137 — Total noncurrent deferred tax liabilities $ 16,712 $ 23,992 $ 11,629 $ 5,740 Net deferred tax liabilities $ 16,712 $ 23,992 $ 11,629 $ 5,740 Net deferred tax asset $ 29,340 $ 36,103 $ 11,279 $ 18,973 |
Schedule of Deferred Tax Assets and Liabilities | The following table provides a reconciliation of the beginning and ending amount of unrecognized tax benefits, $1.0 million of which, if recognized, would impact the effective tax rate: (in thousands) 2019 2018 2017 Unrecognized tax benefits balance at January 1st $ 3,790 $ 4,509 $ 4,183 Increase in gross amounts of tax positions related to prior years 4,874 2,008 480 Decrease in gross amounts of tax positions related to prior years ( 2,239 ) ( 358 ) ( 50 ) Increase in gross amounts of tax positions related to current years — — — Decrease due to settlements with tax authorities — ( 1,626 ) ( 381 ) Decrease due to lapse in statute of limitations ( 626 ) ( 479 ) ( 29 ) Currency translation 35 ( 264 ) 306 Unrecognized tax benefits balance at December 31 $ 5,834 $ 3,790 $ 4,509 |
Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits | As of December 31, 2019, and 2018, current income taxes prepaid and receivable consisted of the following: (in thousands) 2019 2018 Prepaid taxes $ 4,399 $ 4,859 Taxes receivable 1,763 2,614 Total current income taxes prepaid and receivable $ 6,162 $ 7,473 |
Schedule of Current Income Taxes Prepaid and Deferred | |
Schedule of Non-Current Deferred Taxes and Other Liabilities | As of December 31, 2019, and 2018, noncurrent deferred taxes and other liabilities consisted of the following: (in thousands) 2019 2018 Deferred income taxes $ 11,002 $ 7,547 Other liabilities 1,224 875 Total noncurrent deferred taxes and other liabilities $ 12,226 $ 8,422 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 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: (in thousands, except market price and earnings per share) 2019 2018 2017 Net income attributable to the Company $ 132,398 $ 82,891 $ 33,111 Weighted average number of shares: Weighted average number of shares used in calculating basic net income per share 32,296 32,252 32,169 Effect of dilutive stock-based compensation plans: Stock options 12 15 30 Long-term incentive plan 14 28 45 Weighted average number of shares used in calculating diluted net income per share 32,322 32,295 32,244 Average market price of common stock used for calculation of dilutive shares $ 78.13 $ 66.95 $ 52.19 Net income per share: Basic $ 4.10 $ 2.57 $ 1.03 Diluted $ 4.10 $ 2.57 $ 1.03 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (AOCI) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated items of other comprehensive income: | |
Schedule of Accumulated Other Comprehensive Income | The table below presents changes in the components of AOCI from January 1, 2017 to December 31, 2019: (in thousands) Translation adjustments Pension and postretirement liability adjustments Derivative valuation adjustment Total Other Comprehensive Income January 1, 2017 $ ( 133,298 ) $( 51,719 ) $ 828 $( 184,189 ) Other comprehensive income/(loss) before reclassifications 45,980 ( 1,818 ) 201 44,363 Pension/postretirement plan remeasurement . — 2,037 — 2,037 Interest expense related to swaps reclassified to the Statements of Income, net of tax — — 924 924 Pension and postretirement liability adjustments reclassified to Statements of Income, net of tax — 964 — 964 Net current period other comprehensive income 45,980 1,183 1,125 48,288 December 31, 2017 ( 87,318 ) ( 50,536 ) 1,953 ( 135,901 ) Other comprehensive income/(loss) before reclassifications ( 28,658 ) 1,275 2,853 ( 24,530 ) Pension/postretirement settlements and curtailments — 1,146 — 1,146 Pension/postretirement plan remeasurement . — 443 — 443 Interest expense related to swaps reclassified to the Statements of Income, net of tax — — ( 109 ) ( 109 ) Pension and postretirement liability adjustments reclassified to Statements of Income, net of tax — 563 — 563 Net current period other comprehensive income ( 28,658 ) 3,427 2,744 ( 22,487 ) December 31, 2018 ( 115,976 ) ( 47,109 ) 4,697 ( 158,388 ) Other comprehensive income/(loss) before reclassifications ( 6,876 ) ( 525 ) ( 10,523 ) ( 17,924 ) Pension/postretirement settlements and curtailments — 376 — 376 Pension/postretirement plan remeasurement . — ( 1,437 ) — ( 1,437 ) Interest expense related to swaps reclassified to the Statements of Income, net of tax — — 2,691 2,691 Pension and postretirement liability adjustments reclassified to Statements of Income, net of tax — 47 — 47 Adjustment related to prior period change in opening valuation allowance — ( 1,346 ) — ( 1,346 ) Net current period other comprehensive income ( 6,876 ) ( 2,885 ) ( 7,832 ) ( 17,593 ) December 31, 2019 $( 122,852 ) $( 49,994 ) $ ( 3,135 ) $( 175,981 ) 81 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 9. Accumulated Other Comprehensive Income (AOCI) — (continued) 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 Statement of Income that were affected for the years ended December 31, 2019, 2018, and 2017. |
Schedule of Accumulated Other Comprehensive Income Components Reclassified to Statement of Income | (in thousands) 2019 2018 2017 Pretax Derivative valuation reclassified from Accumulated Other Comprehensive Income: Expense related to interest rate swaps included in Income before taxes (a) $ ( 1,011 ) $ ( 146 ) $ 1,490 Income tax effect 259 37 ( 566 ) Effect on net income due to items reclassified from Accumulated Other Comprehensive Income $ ( 752 ) $ ( 109 ) $ 924 Pretax pension and postretirement liabilities reclassified from Accumulated Other Comprehensive Income: Pension/postretirement settlements and curtailments $ 450 $ 1,494 $ — Amortization of prior service credit ( 4,420 ) ( 4,454 ) ( 4,453 ) Amortization of net actuarial loss 4,480 5,175 5,439 Total pretax amount reclassified (b) 510 2,215 986 Income tax effect ( 87 ) ( 506 ) ( 22 ) Effect on net income due to items reclassified from Accumulated Other Comprehensive Income $ 423 $ 1,709 $ 964 (a) Included in interest expense, net are payments related to the interest rate swap agreements and amortization of swap buyouts (see Notes 17 and 18). (b) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 4). |
Noncontrolling Interest (Tables
Noncontrolling Interest (Tables) | 12 Months Ended |
Dec. 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, and the impact of transitioning to ASC 606: (in thousands, except percentages) 2019 2018 Net income of Albany Safran Composites (ASC) $ 11,140 $ 2,578 Less: Return attributable to the Company's preferred holding 1,291 1,299 Net income of ASC available for common ownership $ 9,849 $ 1,279 Ownership percentage of noncontrolling shareholder 10 % 10 % Net income attributable to noncontrolling interest $ 985 $ 128 Noncontrolling interest, beginning of year $ 3,031 $ 3,247 Decrease attributable to 2018 adoption of ASC 606 — ( 327 ) Net income/(loss) attributable to noncontrolling interest 985 128 Changes in other comprehensive income attributable to noncontrolling interest ( 10 ) ( 17 ) Noncontrolling interest, end of year $ 4,006 $ 3,031 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | As of December 31, 2019 and 2018, Accounts receivable consisted of the following: (in thousands) December 31, 2019 December 31, 2018 Trade and other accounts receivable $ 201,427 $ 211,244 Bank promissory notes 18,563 19,269 Allowance for doubtful accounts ( 1,719 ) ( 7,337 ) Accounts receivable, net $ 218,271 $ 223,176 |
Schedule of Noncurrent Receivables | The Noncurrent receivables will be invoiced to the customer over a 10-year period, beginning in 2020. Accordingly, $5.2 million was reclassified from Noncurrent receivables to Trade and other accounts receivable during 2019. As of December 31, 2019 and December 31, 2018, Noncurrent receivables were as follows: (in thousands) December 31, 2019 December 31, 2018 Noncurrent receivables $ 41,234 $ 45,061 |
Contract Assets and Liabiliti_2
Contract Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Income Tax Expense Benefit Provision For Gain Loss On Extinguishment Of Debt | |
Schedule of Contract Assets and Contract Liabilities | Contract assets and Contract liabilities (included in Accrued liabilities) are reported on the Consolidated Balance Sheets in a net position on a contract-by-contract basis at the end of each reporting period. Contract assets and contract liabilities were as follows: (in thousands) December 31, 2019 December 31, 2018 Contract assets $ 79,070 $ 57,447 Contract liabilities 5,656 9,025 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | As of December 31, 2019 and 2018, inventories consisted of the following: (in thousands) December 31, 2019 December 31, 2018 Raw materials $ 52,960 $ 40,489 Work in process 31,744 33,181 Finished goods 10,445 12,234 Total inventories $ 95,149 $ 85,904 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant, and Equipment | The table below sets forth the components of property, plant and equipment as of December 31, 2019 and 2018: (in thousands) 2019 2018 Estimated useful life Land and land improvements $ 14,168 $ 14,287 25 years for improvements Buildings 227,875 245,805 15 to 40 years Right of use assets 16,686 — 10 to 15 years Machinery and equipment 1,020,348 989,925 5 to 15 years Furniture and fixtures 8,126 8,091 5 years Computer and other equipment 18,808 16,473 3 to 10 years Software 60,995 60,182 5 to 8 years Capital expenditures in progress 45,588 46,749 Property, plant and equipment, gross 1,412,594 1,381,512 Accumulated depreciation and amortization ( 946,132 ) ( 919,457 ) Property, plant and equipment, net $ 466,462 $ 462,055 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Intangible Assets and Goodwill | We are continuing to amortize certain patents, trademarks and names, customer contracts, relationships and technology assets that have finite lives. The changes in intangible assets and goodwill from December 31, 2017 to December 31, 2019, were as follows: (in thousands, except for years) Amortization life in years Balance at December 31, 2018 Aquisition Amortization Currency Translation Balance at December 31, 2019 Amortized intangible assets: AEC trademarks and trade names 6 - 15 $ 11 $ 68 $ ( 6 ) $ — $ 73 AEC technology 10 - 15 56 5,821 ( 73 ) — 5,804 AEC Intellectual property 15 — 1,250 ( 7 ) — 1,243 AEC customer contracts 6 9,456 — ( 2,912 ) — 6,544 AEC customer relationships 8 - 15 39,538 2,834 ( 3,247 ) 22 39,147 AEC other intangibles 5 145 — ( 64 ) — 81 Total amortized intangible assets $ 49,206 $ 9,973 $( 6,309 ) $ 22 $ 52,892 Unamortized intangible assets: MC Goodwill $ 68,652 $ — $ — $( 980 ) $ 67,672 AEC Goodwill 95,730 17,343 — 189 113,262 Total amortized intangible assets $ 164,382 $ 17,343 $ — $( 791 ) $ 180,934 (in thousands, except for years) Amortization life in years Balance at December 31, 2017 Amortization Currency Translation Balance at December 31, 2018 Amortized intangible assets: AEC trademarks and trade names 15 $ 15 $ ( 4 ) $ — $ 11 AEC technology 15 80 ( 24 ) — 56 AEC customer contracts 6 12,369 ( 2,913 ) — 9,456 AEC customer relationships 15 42,767 ( 3,229 ) — 39,538 AEC other intangibles 5 210 ( 65 ) — 145 Total amortized intangible assets $ 55,441 $( 6,235 ) $ — $ 49,206 Unamortized intangible assets: MC Goodwill $ 71,066 $ — $( 2,414 ) $ 68,652 AEC Goodwill 95,730 — — 95,730 Total amortized intangible assets $ 166,796 $ — $( 2,414 ) $ 164,382 As of December 31, 2019, the gross carrying amount and accumulated amortization of amortized intangible assets was $76.7 million and $23.8 million, respectively. |
Schedule of Estimated Amortization Expense | Amortization expense related to intangible assets was reported in the Consolidated Statement of Income as follows: $3.0 million in Cost of goods sold and $3.3 million in Selling, general and administrative expenses in 2019; $2.9 million in Cost of goods sold and $3.3 million in Selling, general and administrative expenses in 2018; and $3.3 million in Cost of goods sold and $3.6 million in Selling, general and administrative expenses in 2017. Estimated amortization expense of intangibles for the years ending December 31, 2020 through 2024, is as follows: Annual amortization Year (in thousands) 2020 $ 7,141 2021 7,071 2022 4,856 2023 4,135 2024 4,135 16. Accrued Liabilities |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consist of: (in thousands) 2019 2018 Salaries and wages $ 22,878 $ 20,821 Contract loss reserve 17,190 20,708 Employee benefits 14,235 12,316 Returns and allowances 11,249 11,343 Accrual for compensated absences 10,445 10,636 Dividends 6,139 5,808 Contract liabilities 5,656 9,025 Lease liability - Operating lease 4,023 — Lease liability - Financing lease 1,835 — Postretirement medical benefits – current portion 3,808 3,890 Restructuring costs 1,342 5,534 Professional fees 2,999 2,575 Pension liability – current portion 2,155 2,124 Workers' compensation 1,982 1,794 Utilities 790 974 Interest 517 901 Other 18,642 20,581 Total $ 125,885 $ 129,030 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Long-term Debt and Lease Obligation [Abstract] | |
Schedule of Long-Term Debt | Long-term debt, principally to banks and noteholders, consists of: (in thousands, except interest rates) 2019 2018 Revolving credit agreement with borrowings outstanding at an end of period interest rate of 3.43% in 2019 and 3.69% in 2018 (including the effect of interest rate hedging transactions, as described below), due in 2022 $ 424,000 $ 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 29 45 Long-term debt 424,029 524,931 Less: current portion ( 20 ) ( 1,224 ) Long-term debt, net of current portion $ 424,009 $ 523,707 |
Fair-Value Measurements (Tables
Fair-Value Measurements (Tables) | 12 Months Ended |
Dec. 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: December 31, 2019 December 31, 2018 Quoted prices in active markets Significant other observable inputs Quoted prices in active markets Significant other observable inputs (in thousands) (Level 1) (Level 2) (Level 1) (Level 2) Fair Value Assets: Cash equivalents $ 16,375 $ — $ 14,234 $ — Other Assets: Common stock of unaffiliated foreign public company (a) 839 — 731 — Interest rate swaps — — — 4,548 (c) Liabilities: Other noncurrent liabilities: Interest rate swaps — ( 5,518 ) (b) — — (a) Original cost basis $0.5 million. (b) Net of $15.2 million receivable floating leg and $20.7 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 not designated as a hedge that were recognized in Other (income)/expense, net in the Consolidated Statements of Income were as follows: Years ended December 31, (in thousands) 2019 2018 2017 Derivatives not designated as hedging instruments Foreign currency options gains/(losses) $ — $( 61 ) $( 131 ) |
Other Noncurrent Liabilities (T
Other Noncurrent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Noncurrent Liabilities | As of December 31, 2019 and 2018, Other Noncurrent Liabilities consisted of the following: (in thousands) 2019 2018 Postretirement benefits other than pensions $ 50,576 $ 47,237 Pension liabilities 34,638 34,590 Finance leases 22,700 — Operating leases 14,386 — Interest rate swap agreements 5,518 — Incentive and deferred compensation 2,925 3,810 Other 1,282 2,540 Restructuring 700 100 Total $ 132,725 $ 88,277 The increase in Other Noncurrent liabilities in 2019 was in part due to the cumulative effect of adopting ASC 842 (see Note 20) which upon adoption, increased Other Noncurrent liabilities by $28.0 million. For the year ended December 31, 2019 lease liabilities included in Other noncurrent liabilities are comprised of Finance and Operating leases, and account for an increase over December 31, 2018 of $37.1 million. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 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: As previously reported at December 31, 2018 Adjustments Increase/ (decrease) Opening balance, as adjusted, January 1, 2019 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 — — — 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 year ended December 31, 2019 Finance lease Amortization of right-of-use asset $ 997 Interest on lease liabilities 1,563 Operating lease Fixed lease cost 5,063 Variable lease cost 35 Short-term lease cost 1,283 Total lease expense $ 8,941 |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows: (in thousands) For the year ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,932 Operating cash flows from finance leases 1,563 Financing cash flows from finance leases 1,180 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 9,250 Finance leases 5,686 The initial recognition of each ROU asset and lease liability at lease commencement is a noncash transaction that is excluded from amounts reported in the Consolidated Statements of Cash Flows. Supplemental balance sheet information related to leases was as follows: (in thousands) December 31, 2019 Operating leases Right of use assets included in Other assets $ 18,223 Lease liabilities included in Accrued liabilities $ 4,023 Other noncurrent liabilities 14,386 Total operating lease liabilities $ 18,409 Finance leases Right-of-use assets included in Property, plant and equipment, net $ 15,689 Lease liabilities included in Accrued liabilities $ 1,835 Other noncurrent liabilities 22,700 Total finance lease liabilities $ 24,535 Additional information for leases existing at December 31, 2019 was as follows: Weighted average remaining lease term Operating leases 6 years Finance leases 10 years Weighted average discount rate Operating leases 4.9 % Finance leases 6.7 % |
Schedule of Supplemental Balance Sheet Information Related to Leases | The initial recognition of each ROU asset and lease liability at lease commencement is a noncash transaction that is excluded from amounts reported in the Consolidated Statements of Cash Flows. |
Schedule of Additional Information Related to Leases | Additional information for leases existing at December 31, 2019 was as follows: |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities as of December 31, 2019 were as follows: (in thousands) Operating leases Finance leases Year ending December 31, 2020 $ 5,153 $ 3,347 2021 4,133 3,347 2022 3,096 3,394 2023 2,128 3,560 2024 1,496 3,560 Thereafter 5,332 15,692 Total lease payments 21,338 32,900 Less imputed interest ( 2,929 ) ( 8,365 ) Total $ 18,409 $ 24,535 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. |
Schedule of Maturities of SLC Finance Lease Liability | The following schedule presents future minimum annual payments under the SLC lease finance obligation, and the present value of the minimum payments as of December 31, 2018: (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 $3.6 million. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 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 of Claims Claims Dismissed, Settled, or Resolved New Claims Closing Number of Claims Amounts Paid (thousands) to Settle or Resolve 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 3,684 51 75 3,708 $ 25 |
Stock Options and Incentive P_2
Stock Options and Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | Activity with respect to these plans is as follows: 2019 2018 2017 Shares under option January 1 18,940 29,340 62,390 Options canceled — — 150 Options exercised 6,990 10,400 32,900 Shares under option at December 31 11,950 18,940 29,340 Options exercisable at December 31 11,950 18,940 29,340 The weighted average exercise price is as follows: 2019 2018 2017 Shares under option January 1 $ 17.87 $ 18.40 $ 18.28 Options canceled — — 20.63 Options exercised 16.06 19.38 18.16 Shares under option December 31 18.93 17.87 18.40 Options exercisable December 31 18.93 17.87 18.40 |
Schedule of Executive Management Share-based Compensation Activity | As of December 31, 2019, there were 1,115,472 shares of Company stock authorized for the payment of awards under these plans. Information with respect to these plans is presented below: Number of shares Weighted average grant date value per share Year-end intrinsic value (000's) Shares potentially payable at January 1, 2017 189,418 $ 36.90 $ 6,989 Forfeitures — — Payments ( 75,545 ) $ 36.35 Shares accrued based on 2017 performance 43,532 $ 48.26 Shares potentially payable at December 31, 2017 157,405 $ 40.30 $ 6,343 Forfeitures — Payments ( 79,762 ) $ 39.90 Shares accrued based on 2018 performance 34,822 $ 70.59 Shares potentially payable at December 31, 2018 112,465 $ 49.96 $ 5,619 Forfeitures — — Payments ( 45,689 ) $ 36.74 Shares accrued based on 2019 performance 14,936 $ 92.12 Shares potentially payable at December 31, 2019 81,712 $ 65.06 $ 5,316 |
Schedule of Other Management Share-based Compensation Activity | The determination of compensation expense for other management share-based compensation plans is based on the number of outstanding share units, the end-of-period share price, and Company performance. Information with respect to these plans is presented below: Number of shares Weighted average value per share Cash paid for share based liabilities (000's) Share units potentially payable at January 1, 2017 261,145 Grants 96,505 Changes due to performance ( 11,891 ) Payments ( 89,190 ) $ 46.64 $ 4,160 Forfeitures ( 20,473 ) Share units potentially payable at December 31, 2017 236,096 Grants 65,370 Changes due to performance 14,343 Payments ( 75,545 ) $ 62.69 $ 4,736 Forfeitures ( 12,963 ) Share units potentially payable at December 31, 2018 227,301 Grants 58,878 Changes due to performance 21,740 Payments ( 69,912 ) $ 70.67 $ 5,528 Forfeitures ( 22,935 ) Share units potentially payable at December 31, 2019 215,072 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Activity in Shareholders' Equity | In 2019, a public offering of a portion of the Standish Family shares reduced the number of Class A Common Stock reserved for the conversion of Class B shares, by 1.6 million. At December 31, 2019, 1.6 million shares of Class A Common Stock were reserved for the conversion of Class B Common Stock and the exercise of stock options. In August 2006, we announced that the Board of Directors authorized management to purchase up to 2 million additional shares of our Class A Common Stock. The Board’s action authorizes management to purchase shares from time to time, in the open market or otherwise, whenever it believes such purchase to be advantageous to our shareholders, and it is otherwise legally permitted to do so. We have made no share purchases under the August 2006 authorization. Activity in Shareholders’ equity for 2017, 2018, and 2019 is presented below: 101 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 23. Shareholders’ Equity — (continued) (in thousands) Class A Common Stock Class B Common Stock Additional paid-in capital Retained earnings Accumulated items of other comprehensive income Class A Treasury Stock Noncontrolling Interest Total Equity Shares Amount Shares Amount Shares Amount January 1, 2017 37,319 $ 37 3,234 $ 3 $ 425,953 $ 522,855 $( 184,189 ) 8,443 $( 257,136 ) $ 3,767 $ 511,290 Net income — — — — — 33,111 — — — ( 526 ) 32,585 Compensation and benefits paid or payable in shares 44 — — — 1,564 — — — — — 1,564 Options exercised 33 — — — 597 — — — — — 597 Shares issued to Directors' — — — — 309 — — ( 12 ) 260 — 569 Dividends declared Class A Common Stock, $0.68 per share — — — — — ( 19,685 ) — — — — ( 19,685 ) Class B Common Stock, $0.68 per share — — — — — ( 2,199 ) — — — — ( 2,199 ) Cumulative translation adjustments — — — — — — 45,980 — — 6 45,986 Pension and postretirement liability adjustments — — — — — — 1,183 — — — 1,183 Derivative valuation adjustment . — — — — — — 1,125 — — — 1,125 December 31, 2017 37,396 $ 37 3,234 $ 3 $ 428,423 $ 534,082 $( 135,901 ) 8,431 $( 256,876 ) $ 3,247 $ 573,015 Net income — — — — — 82,891 — — — 128 83,019 Adoption of accounting standards (a),(b) — — — — — ( 5,068 ) — — — ( 327 ) ( 5,395 ) Compensation and benefits paid or payable in shares 44 — — — 1,437 — — — — — 1,437 Options exercised 10 — — — 201 — — — — — 201 Shares issued to Directors' — — — — 494 — — ( 12 ) 273 — 767 Dividends declared Class A Common Stock, $0.69 per share — — — — — ( 20,029 ) — — — — ( 20,029 ) Class B Common Stock, $0.69 per share — — — — — ( 2,231 ) — — — — ( 2,231 ) Cumulative translation adjustments — — — — — — ( 28,658 ) — — ( 17 ) ( 28,675 ) Pension and postretirement liability adjustments — — — — — — 3,427 — — — 3,427 Derivative valuation adjustment . — — — — — — 2,744 — — — 2,744 December 31, 2018 37,450 $ 37 3,234 $ 3 $ 430,555 $ 589,645 $( 158,388 ) 8,419 $( 256,603 ) $ 3,031 $ 608,280 Net income — — — — — 132,398 — — — 985 133,383 Adoption of accounting standards (c) — — — — — 35 — — — — 35 Compensation and benefits paid or payable in shares 26 — — — 1,311 — — — — — 1,311 Options exercised 7 — — — 112 — — — — — 112 Shares issued to Directors' — — — — 540 — — ( 10 ) 212 — 752 Dividends declared Class A Common Stock, $0.73 per share — — — — — ( 21,818 ) — — — — ( 21,818 ) Class B Common Stock, $0.73 per share — — — — — ( 1,763 ) — — — — ( 1,763 ) Conversion of Class B shares to Class A shares (d) 1,616 2 ( 1,616 ) ( 1 ) — ( 1 ) — — — — — Cumulative translation adjustments — — — — — — ( 6,876 ) — — ( 10 ) ( 6,886 ) Pension and postretirement liability adjustments — — — — — — ( 2,885 ) — — — ( 2,885 ) Derivative valuation adjustment . — — — — — — ( 7,832 ) — — — ( 7,832 ) December 31, 2019 39,099 $ 39 1,618 $ 2 $ 432,518 $ 698,496 $( 175,981 ) 8,409 $( 256,391 ) $ 4,006 $ 702,689 (a) As described in Note 2, the Company adopted ASC 606 effective January 1, 2018, which resulted in a decrease to Retained earnings of $5.6 million and a $0.3 million decrease to Noncontrolling interest. 102 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 23. Shareholders’ Equity — (continued) (b) The Company adopted ASU 2016-16 effective January 1, 2018, which resulted in a $0.5 million increase to Retained earnings. (c) As described in Note 20, the Company adopted ASC 842, Leases effective January 1, 2019, which resulted in an increase to Retained earnings of less than $0.1 million. (d) In the second quarter of 2019, Standish Family Holdings, LLC executed a secondary offering of Albany shares. As a result of the offering, 1.6 million shares of Class B Common Stock previously owned by Standish Family Holdings, LLC were converted to Class A Common Stock and then sold to third parties. Costs associated with the offering were charged directly to Standish Family Holdings, LLC. |
Business Acquisition (Tables)
Business Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Allocation of Purchase Price | The seller provided representations, warranties and indemnities customary for acquisition transactions, including indemnities for certain customer claims identified, before closing. The acquired entity is part of the AEC segment. CirComp specializes in designing and manufacturing customized engineered composite components for aerospace and other demanding industrial applications. The following table summarizes the provisional allocation of the purchase price to the fair value of the assets and liabilities acquired: (in thousands) November 20, 2019 Assets acquired Cash $ 1,607 Accounts receivable 986 Contract assets 2,269 Inventories 525 Prepaid expenses and other current assets 452 Right of use assets 5,686 Property, plant and equipment 4,884 Amortizable intangible assets (see Note 15) 9,973 Goodwill 17,343 Total assets acquired $ 43,725 Liabilities assumed Accounts payable $ 65 Accrued liabilities 2,249 Lease liabilities 502 Deferred income taxes 3,325 Other noncurrent liabilities 5,184 Total liabilities assumed $ 11,325 Net assets acquired $ 32,400 Purchase of business, net of cash acquired $ 30,793 |
Schedule of Operational Results of Acquired Business | The following table presents operational results of the acquired entity that are included in the Consolidated Statements of Income (unaudited): (in thousands, except per share amounts) November 20 to December 31, 2019 Net sales $ 485 Operating loss ( 162 ) Loss before income taxes ( 199 ) Net loss attributable to the Company ( 324 ) Loss per share: Basic $( 0.01 ) Diluted $( 0.01 ) |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Data | (in millions, except per share amounts) 1st 2nd 3rd 4th Total 2019 Net sales $ 251.4 $ 273.9 $ 271.1 $ 257.7 $1,054.1 Gross profit 91.8 105.2 104.1 96.6 397.7 Net income attributable to the Company 29.2 34.1 40.0 29.1 132.4 Basic earnings per share 0.90 1.05 1.24 0.91 4.10 Diluted earnings per share 0.90 1.05 1.24 0.91 4.10 Cash dividends per share 0.18 0.18 0.18 0.19 0.73 Class A Common Stock prices: High 78.45 82.91 91.51 90.30 Low 60.82 69.29 78.41 75.92 2018 Net sales $ 223.6 $ 255.4 $ 251.9 $ 251.6 $ 982.5 Gross profit 77.7 91.7 92.4 87.9 349.7 Net income attributable to the Company 7.7 29.9 27.7 17.6 82.9 Basic earnings per share 0.24 0.93 0.86 0.54 2.57 Diluted earnings per share 0.24 0.93 0.86 0.54 2.57 Cash dividends per share 0.17 0.17 0.17 0.18 0.69 Class A Common Stock prices: High 67.30 65.45 81.40 78.31 Low 60.05 58.35 60.70 58.41 2017 Net sales $ 199.3 $ 215.6 $ 222.1 $ 226.7 $ 863.7 Gross profit 76.0 63.2 79.6 77.5 296.3 Net income attributable to the Company 10.8 1.1 15.3 5.9 33.1 Basic earnings per share 0.34 0.03 0.47 0.19 1.03 Diluted earnings per share 0.34 0.03 0.47 0.19 1.03 Cash dividends per share 0.17 0.17 0.17 0.17 0.68 Class A Common Stock prices: High 49.05 53.40 57.60 65.25 Low 43.90 43.90 50.25 56.45 In 2019, restructuring charges (decreased)/increased earnings per share by ($0.01) in the first quarter, ($0.02) in the second quarter, $0.01 in the third quarter, and ($0.04) in the fourth quarter. The charges were primarily related to the closure of the MC Facility in Sélestat, France. |
Accounting Policies (Narrative)
Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Research expense | $ 26,900 | $ 29,800 | $ 30,700 | ||||||||||||
Defined benefit pension plan assets | $ 21,300 | $ 14,200 | 21,300 | 14,200 | |||||||||||
Gross profit | $ 96,600 | $ 104,100 | $ 105,200 | $ 91,800 | 87,900 | $ 92,400 | $ 91,700 | $ 77,700 | $ 77,500 | $ 79,600 | $ 63,200 | $ 76,000 | $ 397,701 | 349,749 | $ 296,283 |
Interest rate on contract receivables | 2.00% | 2.00% | |||||||||||||
Extended payment term of receivables | over a 10-year period starting in 2020 | ||||||||||||||
Long term contract [Member] | |||||||||||||||
Gross profit | $ 10,800 | 2,000 | $ 11,500 | ||||||||||||
Financial Assets [Member] | |||||||||||||||
Defined benefit pension plan assets | 800 | 5,300 | $ 800 | 5,300 | |||||||||||
Russia Entity [Member] | |||||||||||||||
Equity method investment | $ 500 | $ 400 | $ 500 | $ 400 |
Accounting Policies (Schedule o
Accounting Policies (Schedule of Foreign Currency Transaction Gains and Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Selling, general, and administrative expense | $ 1,281 | $ (274) | $ 4,127 |
Other expense, net | (4,471) | (67) | 4,634 |
Total transaction (gains)/losses | (3,190) | (341) | 8,761 |
Gain on long-term intercompany loans | $ 1,867 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Revenue Recognition [Abstract] | |
Performance obligations | $ 82 |
Remaining performance obligation expected to be recognized during 2020 | $ 67 |
Revenue Recognition (Schedule o
Revenue Recognition (Schedule of Summary of Composition of Each Business Segment) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Machine Clothing [Member] | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |
Segment | Machine Clothing (MC) |
Product Group | Machine Clothing |
Principal Product or Service | Paper machine clothing: Permeable and impermeable belts used in the manufacture of paper, paperboard, tissue and towel, and pulp |
Principal Locations | World-wide |
Engineered Composites [Member] | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |
Segment | Albany Engineered Composites (AEC) |
Product Group | Albany Safran Composites (ASC) |
Principal Product or Service | 3D-woven, injected composite components for aircraft engines |
Principal Locations | Rochester, NH Commercy, France Queretaro, Mexico |
Revenue Recognition (Schedule_2
Revenue Recognition (Schedule of Disaggregate Revenue for Each Business Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||||||
Total Revenue | $ 257,700 | $ 271,100 | $ 273,900 | $ 251,400 | $ 251,600 | $ 251,900 | $ 255,400 | $ 223,600 | $ 226,700 | $ 222,100 | $ 215,600 | $ 199,300 | $ 1,054,132 | $ 982,479 | $ 863,717 |
Machine Clothing [Member] | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Total Revenue | 601,254 | 611,858 | 590,357 | ||||||||||||
Albany Engineered Composites ASC [Member] | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Total Revenue | 220,188 | 182,699 | |||||||||||||
Albany Engineered Composites Other AEC [Member] | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Total Revenue | 232,690 | 187,922 | |||||||||||||
Engineered Composites [Member] | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Total Revenue | 452,878 | 370,621 | $ 273,360 | ||||||||||||
Point in Time Revenue Recognition [Member] | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Total Revenue | 626,638 | 630,272 | |||||||||||||
Point in Time Revenue Recognition [Member] | Machine Clothing [Member] | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Total Revenue | 598,054 | 608,658 | |||||||||||||
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 | 28,584 | 21,614 | |||||||||||||
Point in Time Revenue Recognition [Member] | Engineered Composites [Member] | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Total Revenue | 28,584 | 21,614 | |||||||||||||
Over Time Revenue Recognition [Member] | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Total Revenue | 427,494 | 352,207 | |||||||||||||
Over Time Revenue Recognition [Member] | Machine Clothing [Member] | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Total Revenue | 3,200 | 3,200 | |||||||||||||
Over Time Revenue Recognition [Member] | Albany Engineered Composites ASC [Member] | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Total Revenue | 220,188 | 182,699 | |||||||||||||
Over Time Revenue Recognition [Member] | Albany Engineered Composites Other AEC [Member] | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Total Revenue | 204,106 | 166,308 | |||||||||||||
Over Time Revenue Recognition [Member] | Engineered Composites [Member] | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Total Revenue | $ 424,294 | $ 349,007 |
Revenue Recognition (Schedule_3
Revenue Recognition (Schedule of Disaggregate MC Segment Revenue by Significant Product or Service) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||||||
Net sales | $ 257,700 | $ 271,100 | $ 273,900 | $ 251,400 | $ 251,600 | $ 251,900 | $ 255,400 | $ 223,600 | $ 226,700 | $ 222,100 | $ 215,600 | $ 199,300 | $ 1,054,132 | $ 982,479 | $ 863,717 |
Machine Clothing [Member] | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Net sales | 601,254 | 611,858 | $ 590,357 | ||||||||||||
Americas PMC [Member] | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Net sales | 316,355 | 303,768 | |||||||||||||
Eurasia PMC [Member] | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Net sales | 210,961 | 227,493 | |||||||||||||
Engineered Fabrics [Member] | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Net sales | $ 73,938 | $ 80,597 |
Reportable Segments and Geogr_3
Reportable Segments and Geographic Data (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||
Nov. 20, 2019 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | ||||||||||||||||
Net sale | $ 257,700 | $ 271,100 | $ 273,900 | $ 251,400 | $ 251,600 | $ 251,900 | $ 255,400 | $ 223,600 | $ 226,700 | $ 222,100 | $ 215,600 | $ 199,300 | $ 1,054,132 | $ 982,479 | $ 863,717 | |
Increase decrease in assets | $ 35,300 | |||||||||||||||
After acquired CirComp GmbH [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Increase in Property, plant and equipment | 10,600 | |||||||||||||||
Machine Clothing [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net sale | 601,254 | 611,858 | 590,357 | |||||||||||||
Increase decrease in assets | 22,500 | |||||||||||||||
AEC assets [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Increase decrease in assets | 14,100 | |||||||||||||||
Salt Lake City, Utah [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Non-cash increase of lease modification | $ 12,700 | |||||||||||||||
Lease expiration date | Dec. 31, 2029 | |||||||||||||||
Albany Aerostructures Composites LLC (AAC) [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Invoiced receivables, unbilled receivables and contract receivables | $ 114,500 | $ 96,200 | $ 114,500 | 96,200 | ||||||||||||
Safran [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net sale | 226,800 | $ 186,300 | $ 119,200 | |||||||||||||
Rent paid under lease | $ 200 |
Reportable Segments and Geogr_4
Reportable Segments and Geographic Data (Schedule of Financial Data by Reporting Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||||||
Net sales | $ 257,700 | $ 271,100 | $ 273,900 | $ 251,400 | $ 251,600 | $ 251,900 | $ 255,400 | $ 223,600 | $ 226,700 | $ 222,100 | $ 215,600 | $ 199,300 | $ 1,054,132 | $ 982,479 | $ 863,717 |
Depreciation and amortization | 70,795 | 79,036 | 71,956 | ||||||||||||
Operating income (loss) | 193,576 | 137,408 | 78,676 | ||||||||||||
Interest income | (2,729) | (2,118) | (1,511) | ||||||||||||
Interest expense | 19,650 | 20,242 | 18,602 | ||||||||||||
Other expense/ (income), net | (1,557) | 4,037 | 6,877 | ||||||||||||
Income before income taxes | 178,212 | 115,247 | 54,708 | ||||||||||||
Increase/(decrease) attributable to application of ASC 606 [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net sales | (7,120) | ||||||||||||||
Depreciation and amortization | |||||||||||||||
Operating income (loss) | 3,325 | ||||||||||||||
Income before income taxes | 3,325 | ||||||||||||||
Corporate Expenses [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Depreciation and amortization | 4,250 | 5,018 | 4,896 | ||||||||||||
Operating income (loss) | (53,909) | (49,075) | (43,647) | ||||||||||||
Corporate Expenses [Member] | Increase/(decrease) attributable to application of ASC 606 [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Depreciation and amortization | |||||||||||||||
Operating income (loss) | |||||||||||||||
Significant Reconciling Items [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Interest income | (2,729) | (2,118) | (1,511) | ||||||||||||
Interest expense | 19,650 | 20,242 | 18,602 | ||||||||||||
Other expense/ (income), net | (1,557) | 4,037 | 6,877 | ||||||||||||
Significant Reconciling Items [Member] | Increase/(decrease) attributable to application of ASC 606 [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Interest income | |||||||||||||||
Interest expense | |||||||||||||||
Other expense/ (income), net | |||||||||||||||
Machine Clothing [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net sales | 601,254 | 611,858 | 590,357 | ||||||||||||
Depreciation and amortization | 21,875 | 30,813 | 33,527 | ||||||||||||
Operating income (loss) | 191,965 | 169,836 | 153,980 | ||||||||||||
Machine Clothing [Member] | Increase/(decrease) attributable to application of ASC 606 [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net sales | (3,970) | ||||||||||||||
Depreciation and amortization | |||||||||||||||
Operating income (loss) | (1,605) | ||||||||||||||
Engineered Composites [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net sales | 452,878 | 370,621 | 273,360 | ||||||||||||
Depreciation and amortization | 44,670 | 43,205 | 33,533 | ||||||||||||
Operating income (loss) | $ 55,520 | 16,647 | $ (31,657) | ||||||||||||
Engineered Composites [Member] | Increase/(decrease) attributable to application of ASC 606 [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net sales | (3,150) | ||||||||||||||
Depreciation and amortization | |||||||||||||||
Operating income (loss) | $ 4,930 |
Reportable Segments and Geogr_5
Reportable Segments and Geographic Data (Schedule of Restructuring Costs by Reporting Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring expenses, net | |||
Charges/ (reversals) | $ 2,905 | $ 15,570 | $ 13,491 |
Machine Clothing [Member] | |||
Restructuring expenses, net | |||
Charges/ (reversals) | 1,129 | 12,278 | 3,429 |
Engineered Composites [Member] | |||
Restructuring expenses, net | |||
Charges/ (reversals) | 1,833 | 3,048 | 10,062 |
Corporate Expenses [Member] | |||
Restructuring expenses, net | |||
Charges/ (reversals) | $ (57) | $ 244 |
Reportable Segments and Geogr_6
Reportable Segments and Geographic Data (Schedule of Operating Assets and Capital Expenditures by Reporting Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Assets | $ 1,474,368 | $ 1,417,992 | $ 1,361,198 | |
Capital expenditures and purchased software | 67,955 | 82,886 | 87,637 | |
Cash | 195,540 | 197,755 | 183,727 | $ 181,742 |
Machine Clothing [Member] | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Assets | 441,072 | 453,836 | 464,468 | |
Capital expenditures and purchased software | 16,707 | 20,230 | 20,522 | |
Engineered Composites [Member] | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Assets | 693,799 | 633,394 | 584,076 | |
Capital expenditures and purchased software | 48,753 | 60,121 | 63,865 | |
Corporate Expenses [Member] | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Capital expenditures and purchased software | 2,495 | 2,535 | 3,250 | |
Significant Reconciling Items [Member] | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Cash | 195,540 | 197,755 | 183,727 | |
Income taxes prepaid, receivable and deferred | 57,783 | 70,095 | 74,914 | |
Other assets | $ 86,174 | $ 62,912 | $ 54,013 |
Reportable Segments and Geogr_7
Reportable Segments and Geographic Data (Schedule of Financial Data by Geographic Area) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||
Net sales | $ 257,700 | $ 271,100 | $ 273,900 | $ 251,400 | $ 251,600 | $ 251,900 | $ 255,400 | $ 223,600 | $ 226,700 | $ 222,100 | $ 215,600 | $ 199,300 | $ 1,054,132 | $ 982,479 | $ 863,717 | |
Property, plant and equipment, net | 466,462 | 462,055 | 454,302 | 466,462 | 462,055 | 454,302 | ||||||||||
United States [Member] | ||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||
Net sales | 574,063 | 519,349 | 459,525 | |||||||||||||
Property, plant and equipment, net | 275,965 | 272,584 | 252,639 | 275,965 | 272,584 | 252,639 | ||||||||||
Switzerland [Member] | ||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||
Net sales | 146,571 | 157,339 | 147,601 | |||||||||||||
France [Member] | ||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||
Net sales | 91,783 | 85,386 | 57,195 | |||||||||||||
Property, plant and equipment, net | 43,986 | 50,245 | 58,196 | 43,986 | 50,245 | 58,196 | ||||||||||
Mexico [Member] | ||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||
Net sales | 73,039 | 48,534 | 31,902 | |||||||||||||
Property, plant and equipment, net | 45,640 | 40,343 | 22,981 | 45,640 | 40,343 | 22,981 | ||||||||||
Brazil [Member] | ||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||
Net sales | 64,666 | 62,093 | 60,535 | |||||||||||||
China [Member] | ||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||
Net sales | 48,586 | 50,923 | 48,920 | |||||||||||||
Property, plant and equipment, net | 41,799 | 48,686 | 61,840 | 41,799 | 48,686 | 61,840 | ||||||||||
Other Countries [Member] | ||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||
Net sales | 55,424 | 58,855 | 58,039 | |||||||||||||
Property, plant and equipment, net | 17,144 | 17,578 | 19,563 | 17,144 | 17,578 | 19,563 | ||||||||||
United Kingdom [Member] | ||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||
Property, plant and equipment, net | 11,047 | 12,042 | 14,256 | 11,047 | 12,042 | 14,256 | ||||||||||
Korea [Member] | ||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||
Property, plant and equipment, net | 10,795 | 12,396 | 14,558 | 10,795 | 12,396 | 14,558 | ||||||||||
Germany [Member] | ||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||
Property, plant and equipment, net | [1] | 10,577 | 27 | 39 | 10,577 | 27 | 39 | |||||||||
Canada [Member] | ||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||
Property, plant and equipment, net | $ 9,509 | $ 8,154 | $ 10,230 | $ 9,509 | $ 8,154 | $ 10,230 | ||||||||||
[1] | In 2019, the Company acquired CirComp GmbH, which resulted in an increase in Property, plant and equipment of $10.6 million. |
Pensions and Other Postretire_3
Pensions and Other Postretirement Benefit Plans (Narrative) (Details) $ in Millions | Dec. 31, 2019USD ($) |
United States [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Accrued postretirement liability | $ 53.2 |
Percent of consolidated pension plan assets | 45.00% |
Percent of consolidated pension plan obligations | 46.00% |
Canada [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Accrued postretirement liability | $ 1.2 |
Pensions and Other Postretire_4
Pensions and Other Postretirement Benefit Plans (Schedule of Plan Benefit Obligations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
United States [Member] | |||
Weighted average assumptions used to determine benefit obligations, end of year: | |||
Discount rate | 3.40% | 4.41% | |
Non-U.S. Pension Plans [Member] | |||
Weighted average assumptions used to determine benefit obligations, end of year: | |||
Discount rate | 2.31% | 2.98% | |
Compensation increase | 2.81% | 3.02% | |
United States Postretirement Benefits Plan [Member] | |||
Weighted average assumptions used to determine benefit obligations, end of year: | |||
Discount rate | 3.27% | 4.31% | |
Compensation increase | 3.00% | 3.00% | |
Non-U.S. Postretirement Benefits Plan [Member] | |||
Weighted average assumptions used to determine benefit obligations, end of year: | |||
Discount rate | 3.05% | 3.65% | |
Compensation increase | 3.00% | 3.00% | |
Pension Plans [Member] | |||
Change in benefit obligation: | |||
Benefit obligation, beginning of year | $ 201,450 | $ 230,911 | |
Service cost | 2,543 | 2,723 | $ 2,720 |
Interest cost | 7,216 | 7,217 | 7,476 |
Plan participants' contributions | 243 | 228 | |
Actuarial (gain)/loss | 22,645 | (10,666) | |
Benefits paid | (8,404) | (7,814) | |
Settlements and curtailments | (1,768) | (13,807) | |
Plan amendments and other | 152 | 534 | |
Foreign currency changes | 3,134 | (7,876) | |
Benefit obligation, end of year | 227,211 | 201,450 | 230,911 |
Accumulated benefit obligation | 218,006 | 193,870 | |
Other postretirement benefits [Member] | |||
Change in benefit obligation: | |||
Benefit obligation, beginning of year | 51,127 | 58,531 | |
Service cost | 189 | 232 | 244 |
Interest cost | 2,114 | 2,024 | 2,214 |
Plan participants' contributions | 14 | ||
Actuarial (gain)/loss | 4,686 | (6,100) | |
Benefits paid | (3,782) | (3,473) | |
Settlements and curtailments | |||
Plan amendments and other | |||
Foreign currency changes | 49 | (87) | |
Benefit obligation, end of year | 54,384 | 51,127 | $ 58,531 |
Accumulated benefit obligation |
Pensions and Other Postretire_5
Pensions and Other Postretirement Benefit Plans (Schedule of Plan Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, beginning of year | $ 178,942 | $ 205,586 |
Actual return on plan assets, net of expenses | 32,367 | (8,449) |
Employer contributions | 4,670 | 10,071 |
Plan participants' contributions | 243 | 228 |
Benefits paid | (8,404) | (7,814) |
Settlements | (260) | (13,029) |
Foreign currency changes | 4,197 | (7,652) |
Fair value of plan assets, end of year | 211,755 | 178,942 |
Other postretirement benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, beginning of year | ||
Actual return on plan assets, net of expenses | ||
Employer contributions | 3,782 | 3,474 |
Plan participants' contributions | 14 | |
Benefits paid | (3,782) | (3,473) |
Settlements | ||
Foreign currency changes | ||
Fair value of plan assets, end of year |
Pensions and Other Postretire_6
Pensions and Other Postretirement Benefit Plans (Schedule of Funded Status of Plans and Composition of Accrued Pension Cost) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | |||
Noncurrent asset | $ 21,300 | $ 14,200 | |
U.S. Pension Plans with Pension Assets [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net amount recognized | (660) | ||
U.S. Pension Plans without Pension Assets [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net amount recognized | (6,799) | ||
United States [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net amount recognized | (7,459) | ||
Non-U.S. Pension Plans with Pension Assets [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net amount recognized | 17,546 | ||
Non-U.S. Pension Plans without Pension Assets [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net amount recognized | (25,543) | ||
Non-U.S. Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net amount recognized | (7,997) | ||
Pension Plans with Pension Assets [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net amount recognized | 16,886 | ||
Pension Plans without Pension Assets [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net amount recognized | (32,342) | ||
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 211,755 | 178,942 | $ 205,586 |
Benefit obligation | 227,211 | 201,450 | 230,911 |
Funded status | (15,456) | (22,508) | |
Noncurrent asset | 21,337 | 14,206 | |
Current liability | (2,155) | (2,124) | |
Noncurrent liability | (34,638) | (34,590) | |
Net amount recognized | (15,456) | (22,508) | |
Net actuarial loss | 63,240 | 68,110 | |
Prior service cost/(credit) | 639 | 1,020 | |
Net amount recognized | 63,879 | 69,130 | |
Other postretirement benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | |||
Benefit obligation | 54,384 | 51,127 | $ 58,531 |
Funded status | (54,384) | (51,127) | |
Noncurrent asset | |||
Current liability | (3,808) | (3,890) | |
Noncurrent liability | (50,576) | (47,237) | |
Net amount recognized | (54,384) | (51,127) | |
Net actuarial loss | 28,119 | 25,660 | |
Prior service cost/(credit) | (17,434) | (21,922) | |
Net amount recognized | $ 10,685 | $ 3,738 |
Pensions and Other Postretire_7
Pensions and Other Postretirement Benefit Plans (Schedule of Net Periodic Benefit Plan Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Components of net periodic benefit cost: | |||
Curtailment (gain)/loss | $ (500) | $ (700) | |
United States [Member] | |||
Weighted average assumptions used to determine net cost: | |||
Discount rate | 4.41% | 3.70% | 4.20% |
Expected return on plan assets | 4.57% | 3.87% | 4.40% |
Rate of compensation increase | |||
Non-U.S. Pension Plans [Member] | |||
Weighted average assumptions used to determine net cost: | |||
Discount rate | 2.98% | 2.83% | 2.98% |
Expected return on plan assets | 4.45% | 4.83% | 4.46% |
Rate of compensation increase | 3.02% | 3.04% | 3.29% |
United States Postretirement Benefits Plan [Member] | |||
Weighted average assumptions used to determine net cost: | |||
Discount rate | 4.31% | 3.59% | 4.00% |
Expected return on plan assets | |||
Rate of compensation increase | 3.00% | ||
Non-U.S. Postretirement Benefits Plan [Member] | |||
Weighted average assumptions used to determine net cost: | |||
Discount rate | 3.65% | 3.40% | 3.70% |
Expected return on plan assets | |||
Rate of compensation increase | 3.00% | 3.00% | 3.00% |
Pension Plans [Member] | |||
Components of net periodic benefit cost: | |||
Service cost | $ 2,543 | $ 2,723 | $ 2,720 |
Interest cost | 7,216 | 7,217 | 7,476 |
Expected return on assets | (8,285) | (8,873) | (8,152) |
Amortization of prior service cost/(credit) | 68 | 34 | 36 |
Amortization of net actuarial loss | 2,253 | 2,219 | 2,628 |
Settlement | (16) | 2,246 | |
Curtailment (gain)/loss | 466 | (752) | |
Net periodic benefit cost | 4,245 | 4,814 | 4,708 |
Other postretirement benefits [Member] | |||
Components of net periodic benefit cost: | |||
Service cost | 189 | 232 | 244 |
Interest cost | 2,114 | 2,024 | 2,214 |
Expected return on assets | |||
Amortization of prior service cost/(credit) | (4,488) | (4,488) | (4,488) |
Amortization of net actuarial loss | 2,227 | 2,956 | 2,811 |
Settlement | |||
Curtailment (gain)/loss | |||
Net periodic benefit cost | $ 42 | $ 724 | $ 781 |
Pensions and Other Postretire_8
Pensions and Other Postretirement Benefit Plans (Schedule of (Gains)/Losses Recognized in Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
(Gains)/losses in plan assets and benefit obligations recognized in other comprehensive income: | |||
Settlements/curtailments | $ (450) | $ (1,494) | |
Asset/liability loss/(gain) | 1,796 | (851) | (2,955) |
Amortization of actuarial (loss) | (4,480) | (5,175) | (5,439) |
Amortization of prior service (cost)/credit | 4,420 | 4,454 | 4,453 |
Pension Plans [Member] | |||
(Gains)/losses in plan assets and benefit obligations recognized in other comprehensive income: | |||
Settlements/curtailments | (450) | (1,494) | |
Asset/liability loss/(gain) | (2,794) | 6,411 | (4,408) |
Amortization of actuarial (loss) | (2,253) | (2,219) | (2,628) |
Amortization of prior service (cost)/credit | (68) | (34) | (36) |
Currency impact | 316 | (1,389) | 1,930 |
Cost/(benefit) in other comprehensive income | (5,249) | 1,275 | (5,142) |
Other postretirement benefits [Member] | |||
(Gains)/losses in plan assets and benefit obligations recognized in other comprehensive income: | |||
Settlements/curtailments | |||
Asset/liability loss/(gain) | 4,685 | (6,100) | 2,743 |
Amortization of actuarial (loss) | (2,227) | (2,956) | (2,811) |
Amortization of prior service (cost)/credit | 4,488 | 4,488 | 4,488 |
Currency impact | 2 | ||
Cost/(benefit) in other comprehensive income | $ 6,946 | $ (4,568) | $ 4,422 |
Pensions and Other Postretire_9
Pensions and Other Postretirement Benefit Plans (Schedule of Amounts That Will Be Amortized from Accumulated Other Comprehensive Income) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Pension Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Actuarial loss | $ 2,409 |
Prior service cost/(benefit) | 32 |
Total | 2,441 |
Other postretirement benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Actuarial loss | 2,592 |
Prior service cost/(benefit) | (4,488) |
Total | $ (1,896) |
Pensions and Other Postretir_10
Pensions and Other Postretirement Benefit Plans (Schedule of Fair Value of Plan Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Other postretirement benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | |||
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 211,755 | 178,942 | $ 205,586 |
Pension Plans [Member] | Total investments in the fair value hierarchy [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 98,974 | 84,713 | |
Pension Plans [Member] | Quoted Prices in Active Markets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,009 | 3,300 | |
Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 92,721 | 78,523 | |
Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,244 | 2,890 | |
Common Stocks and Equity Funds [Member] | Other postretirement benefits [Member] | Quoted Prices in Active Markets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 216 | 284 | |
Common Stocks and Equity Funds [Member] | Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 216 | 284 | |
Investment of plan assets | 56,846 | 42,852 | |
Common Stocks and Equity Funds [Member] | Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | |||
Common Stocks and Equity Funds [Member] | Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | |||
Debt Securities [Member] | Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 92,721 | 78,523 | |
Debt Securities [Member] | Pension Plans [Member] | Quoted Prices in Active Markets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | |||
Debt Securities [Member] | Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 92,721 | 78,523 | |
Debt Securities [Member] | Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | |||
Fixed income funds [Member] | Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investment of plan assets | 52,751 | 47,534 | |
Insurance Contracts [Member] | Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,244 | 2,890 | |
Insurance Contracts [Member] | Pension Plans [Member] | Quoted Prices in Active Markets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | |||
Insurance Contracts [Member] | Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | |||
Insurance Contracts [Member] | Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,244 | 2,890 | |
Cash and Short-Term Investments [Member] | Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,793 | 3,016 | |
Cash and Short-Term Investments [Member] | Pension Plans [Member] | Quoted Prices in Active Markets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,793 | 3,016 | |
Cash and Short-Term Investments [Member] | Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | |||
Cash and Short-Term Investments [Member] | Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | |||
Limited Partnerships [Member] | Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investment of plan assets | 3,184 | 3,843 | |
Hedge Funds [Member] | Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investment of plan assets | $ 211,755 | $ 178,942 |
Pensions and Other Postretir_11
Pensions and Other Postretirement Benefit Plans (Reconciliation of Level 3 Assets) (Details) - Insurance Contracts [Member] - United States [Member] - Significant Unobservable Inputs (Level 3) [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, beginning of year | $ 2,890 | $ 2,407 |
Net realized gains | ||
Net unrealized gains | 20 | (45) |
Net purchases, issuances and settlements | 334 | 528 |
Net transfers (out of) Level 3 | ||
Fair value of plan assets, end of year | $ 3,244 | $ 2,890 |
Pensions and Other Postretir_12
Pensions and Other Postretirement Benefit Plans (Schedule of Asset Allocation) (Details) | Dec. 31, 2019 | Dec. 31, 2018 | |
United States [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | 100.00% | ||
Percentage of plan assets at plan measurement date | 100.00% | 100.00% | |
United States [Member] | Common Stocks and Equity Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | |||
Percentage of plan assets at plan measurement date | 1.00% | 1.00% | |
United States [Member] | Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | 100.00% | ||
Percentage of plan assets at plan measurement date | 96.00% | 94.00% | |
United States [Member] | Real Estate [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | |||
Percentage of plan assets at plan measurement date | 2.00% | 4.00% | |
United States [Member] | Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | [1] | ||
Percentage of plan assets at plan measurement date | [1] | 1.00% | 1.00% |
Non-U.S. Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | 100.00% | ||
Percentage of plan assets at plan measurement date | 100.00% | 100.00% | |
Non-U.S. Pension Plans [Member] | Common Stocks and Equity Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | 13.00% | ||
Percentage of plan assets at plan measurement date | 13.00% | 19.00% | |
Non-U.S. Pension Plans [Member] | Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | 82.00% | ||
Percentage of plan assets at plan measurement date | 80.00% | 74.00% | |
Non-U.S. Pension Plans [Member] | Real Estate [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | 1.00% | ||
Percentage of plan assets at plan measurement date | 1.00% | 1.00% | |
Non-U.S. Pension Plans [Member] | Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | [1] | 4.00% | |
Percentage of plan assets at plan measurement date | [1] | 6.00% | 6.00% |
[1] | Other includes hedged equity and absolute return strategies, and private equity. The Company has procedures to closely monitor the performance of these investments and compares asset valuations to audited financial statements of the funds. |
Pensions and Other Postretir_13
Pensions and Other Postretirement Benefit Plans (Schedule of Pension Plans with Projected Benefit Obligation and Accumulated Benefit Obligation in Excess of Plan Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Plans with projected benefit obligation in excess of plan assets: | ||
Projected benefit obligation | $ 137,123 | $ 123,261 |
Fair value of plan assets | 100,330 | 86,547 |
Plans with accumulated benefit obligation in excess of plan assets: | ||
Accumulated benefit obligation | 134,737 | 120,869 |
Fair value of plan assets | $ 100,330 | $ 86,062 |
Pensions and Other Postretir_14
Pensions and Other Postretirement Benefit Plans (Schedule of Expected Cash Flows) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Pension Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected employer contributions in the next fiscal year | $ 2,446 |
2020 | 7,905 |
2021 | 8,537 |
2022 | 8,755 |
2023 | 9,068 |
2024 | 9,531 |
2025 - 2029 | 53,652 |
Other postretirement benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected employer contributions in the next fiscal year | 3,808 |
2020 | 3,808 |
2021 | 3,738 |
2022 | 3,683 |
2023 | 3,631 |
2024 | 3,555 |
2025 - 2029 | $ 16,569 |
Restructuring (Narrative) (Deta
Restructuring (Narrative) (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||
Number of positions eliminated to date | 50 | |||
Restructuring charges accrued | $ 900 | $ 10,700 | $ 12,700 | |
Restructuring expense | 6,200 | |||
Curtailment gain | 500 | 700 | ||
Restructuring reserve, current | 1,342 | 5,534 | ||
Restructuring reserve, noncurrent | 700 | 100 | ||
Restructuring 2016 [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges accrued | 3,900 | 1,000 | 1,600 | |
Machine Clothing [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expense | 1,100 | |||
Write-off of equipment | $ 2,200 | |||
AEC assets [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expense | 100 | 1,100 | 5,000 | |
Severance [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expense | 200 | |||
Write-off of intangible assets and equipment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expense | 4,500 | |||
Cost of goods sold [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expense | $ 2,800 | |||
AEC facility [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expense | 3,100 | 1,900 | ||
Write-off of equipment | $ 1,200 | |||
AEC facility non cash [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expense | $ 1,700 |
Restructuring (Schedule of Rest
Restructuring (Schedule of Restructuring Charges) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring expenses, net | |||
Restructuring expenses, net | $ 2,905 | $ 15,570 | $ 13,491 |
Machine Clothing [Member] | |||
Restructuring expenses, net | |||
Restructuring expenses, net | 1,129 | 12,278 | 3,429 |
Engineered Composites [Member] | |||
Restructuring expenses, net | |||
Restructuring expenses, net | 1,833 | 3,048 | 10,062 |
Termination and Other Costs [Member] | |||
Restructuring expenses, net | |||
Restructuring expenses, net | 1,269 | 13,420 | 7,949 |
Termination and Other Costs [Member] | Machine Clothing [Member] | |||
Restructuring expenses, net | |||
Restructuring expenses, net | 667 | 11,890 | 2,945 |
Termination and Other Costs [Member] | Engineered Composites [Member] | |||
Restructuring expenses, net | |||
Restructuring expenses, net | 659 | 1,286 | 5,004 |
Impairment of Plant and Equipment [Member] | |||
Restructuring expenses, net | |||
Restructuring expenses, net | 1,636 | 2,150 | 5,542 |
Impairment of Plant and Equipment [Member] | Machine Clothing [Member] | |||
Restructuring expenses, net | |||
Restructuring expenses, net | 462 | 388 | 484 |
Impairment of Plant and Equipment [Member] | Engineered Composites [Member] | |||
Restructuring expenses, net | |||
Restructuring expenses, net | 1,174 | 1,762 | 5,058 |
Corporate Expenses [Member] | |||
Restructuring expenses, net | |||
Restructuring expenses, net | (57) | 244 | |
Corporate Expenses [Member] | Termination and Other Costs [Member] | |||
Restructuring expenses, net | |||
Restructuring expenses, net | (57) | 244 | |
Corporate Expenses [Member] | Impairment of Plant and Equipment [Member] | |||
Restructuring expenses, net | |||
Restructuring expenses, net |
Restructuring (Schedule of Re_2
Restructuring (Schedule of Restructuring Liability) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring charges accrued | $ 900 | $ 10,700 | $ 12,700 |
Termination Costs [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 5,570 | 3,326 | |
Restructuring charges accrued | 1,269 | 13,420 | |
Payments | (5,084) | (10,696) | |
Currency translation/other | 287 | (480) | |
Ending balance | $ 2,042 | $ 5,570 | $ 3,326 |
Other Expense, net (Details)
Other Expense, net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |||
Currency transactions | $ (4,471) | $ (67) | $ 4,634 |
Bank fees and amortization of debt issuance costs | 348 | 417 | 487 |
Pension settlements and curtailments | 450 | 1,494 | |
Components of net periodic pension and postretirement cost other than service | 1,105 | 1,089 | 2,525 |
Gain on insurance recovery | (2,000) | ||
Other | 1,013 | 1,104 | 1,231 |
Total | (1,557) | 4,037 | $ 6,877 |
Curtailment gain | $ 500 | 700 | |
Settlement charge | $ 2,200 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($)countries | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Income Tax Disclosure [Line Items] | ||||
Number of countries in which operations constitute a taxable presence | countries | 18 | |||
Tax rates | 21.00% | 21.00% | 35.00% | |
Federal tax rate of deferred tax assets and liabilities | 21.00% | |||
Net operating loss carryforwards | $ 112,900 | |||
Net operating loss carryforwards, deferred tax asset | 24,300 | |||
Net operating loss carryforwards, valuation allowance | 9,100 | |||
Discrete tax benefit | $ 2,200 | |||
Current year and prior year earnings of Company's foreign operations | 94,400 | |||
Foreign withholding taxes | 1,200 | |||
Accumulated undistributed earnings intended to remain permanently invested | 169,100 | |||
Recognized interest and penalties related to unrecognized tax benefits | 200 | $ 200 | $ 200 | |
Accrued interest and penalties related to unrecognized tax benefits | 100 | 100 | 400 | |
Increase decrease in unrecognized tax benefits | $ 2,200 | |||
Taxes paid, net of refunds | 25,900 | 28,100 | $ 23,700 | |
Reduction in provisional transition tax | 1,000 | |||
Tax Attributes With Limited Lives [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Net deferred tax asset | $ 22,600 | |||
Earliest Tax Year [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Open tax years | 2007 | |||
Earliest Tax Year [Member] | Research and Development [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Tax credit carryforwards, expiration date | Jan. 1, 2025 | |||
Latest Tax Year [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Open tax years | 2019 | |||
Brazil [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Tax rates | 34.00% | |||
China [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Tax rates | 25.00% | |||
Mexico [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Net increase (decrease) in valuation allowance | $ (100) | |||
Tax rates | 30.00% | |||
Valuation allowance expense | $ 800 | |||
Canada [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Net decrease in tax audit settlements | $ 2,200 | |||
Switzerland [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Tax rates | 7.80% | |||
Germany [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Valuation allowance expense | $ 1,300 | |||
State and Local Jurisdiction [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Net operating loss carryforwards | 38,800 | |||
Non-U.S. [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Tax credit carryforward | 11,700 | |||
Net deferred tax asset | 11,279 | 18,973 | ||
Non-U.S. [Member] | Research and Development [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Tax credit carryforward | $ 900 | |||
Non-U.S. [Member] | Earliest Tax Year [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Tax credit carryforwards, expiration date | Jan. 1, 2025 | |||
United States [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Net deferred tax asset | $ 29,300 | |||
Domestic Tax Authority [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Net deferred tax asset | 29,340 | $ 36,103 | ||
Domestic Tax Authority [Member] | Research and Development [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Tax credit carryforward | $ 8,000 |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Income Tax (Benefit)/Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Income tax based on income from continuing operations, at estimated tax rates of 28%, 31% and 32%, respectively | $ 49,977 | $ 36,044 | $ 17,519 |
Income tax before discrete items | 49,977 | 36,044 | 17,519 |
Discrete tax expense (benefit): | |||
Net impact of mandatory deemed repatriation | (1,003) | 5,758 | |
Provision for/resolution of tax audits and contingencies, net | (2,874) | 1,286 | 1,329 |
Adjustments to prior period tax liabilities | (1,637) | (1,284) | (840) |
Provision for/adjustment to beginning of year valuation allowances | (525) | (4,882) | (3,522) |
Enacted tax legislation | (112) | 2,067 | 1,879 |
Total income tax expense | $ 44,829 | $ 32,228 | $ 22,123 |
Estimated tax rate | 28.00% | 31.00% | 32.00% |
Income Taxes (Schedule of Incom
Income Taxes (Schedule of Income/(Loss) From Continuing Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ 76,024 | $ 41,875 | $ (5,865) |
Non-U.S. | 102,188 | 73,372 | 60,573 |
Income/(loss) before income taxes | 178,212 | 115,247 | 54,708 |
Current: | |||
Federal | 780 | 304 | 1,551 |
State | 6,357 | 4,996 | 1,770 |
Non-U.S. | 25,255 | 21,557 | 19,282 |
Current income tax provision | 32,392 | 26,857 | 22,603 |
Deferred: | |||
Federal | 10,583 | 10,700 | 1,881 |
State | 253 | (338) | (1,237) |
Non-U.S. | 1,601 | (4,991) | (1,124) |
Deferred income tax provision | 12,437 | 5,371 | (480) |
Total income tax expense | $ 44,829 | $ 32,228 | $ 22,123 |
Income Taxes (Schedule of Com_2
Income Taxes (Schedule of Components of Deferred Income Tax Expense/(Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Net effect of temporary differences | $ (18) | $ (4,657) | $ (5,774) |
Foreign tax credits | 12,530 | 9,437 | 8,340 |
Retirement benefits | (752) | 2,360 | (502) |
Net impact to operating loss carryforwards | 1,314 | 1,046 | (900) |
Enacted changes in tax laws and rates | (112) | 2,067 | 1,878 |
Adjustment to beginning-of-the-year valuation allowance balance for changes in circumstances | (525) | (4,882) | (3,522) |
Deferred income tax provision | $ 12,437 | $ 5,371 | $ (480) |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of the U.S. Federal Statutory Tax Rate to the Company's Effective Income Tax Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory tax rate | 21.00% | 21.00% | 35.00% |
State taxes, net of federal benefit | 3.00% | 2.90% | 0.40% |
Non-U.S. local income taxes | 4.40% | 3.30% | 5.90% |
US permanent adjustments | (0.30%) | 0.50% | |
Foreign permanent adjustments | 0.40% | (0.40%) | 0.40% |
Foreign rate differential | 0.50% | 0.20% | (10.50%) |
Net U.S. tax on non-U.S. earnings, and foreign withholdings | 0.30% | 5.70% | 11.90% |
Provision for/resolution of tax audits and contingencies, net | (1.60%) | 1.10% | 2.40% |
Research and development and other tax credits | (0.30%) | (0.10%) | (1.50%) |
Provision for/adjustment to beginning of year valuation allowances | (0.30%) | (4.20%) | (6.40%) |
Enacted tax legislation and rate change | (0.10%) | 1.80% | 3.00% |
Return to provision and other adjustments | (2.10%) | (3.00%) | (0.70%) |
Effective income tax rate | 25.20% | 28.00% | 40.40% |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Line Items] | ||
Tax loss carryforwards | $ 24,300 | |
Domestic Tax Authority [Member] | ||
Income Tax Disclosure [Line Items] | ||
Total deferred tax assets | 46,052 | $ 60,095 |
Total deferred tax liabilities | 16,712 | 23,992 |
Net deferred tax asset | 29,340 | 36,103 |
Non-U.S. [Member] | ||
Income Tax Disclosure [Line Items] | ||
Total deferred tax assets | 22,908 | 24,713 |
Total deferred tax liabilities | 11,629 | 5,740 |
Net deferred tax asset | 11,279 | 18,973 |
Noncurrent Assets [Member] | Domestic Tax Authority [Member] | ||
Income Tax Disclosure [Line Items] | ||
Accounts receivable | 823 | 686 |
Inventories | 636 | 442 |
Deferred compensation | 4,730 | 4,460 |
Depreciation and amortization | ||
Postretirement benefits | 14,885 | 14,759 |
Tax loss carryforwards | 2,266 | 1,199 |
Tax credit carryforwards | 15,931 | 30,523 |
Derivatives | 1,411 | |
Reserves | 2,953 | 3,954 |
Deferred Revenue | 2,417 | 3,556 |
Other | 516 | |
Deferred tax assets before valuation allowance | 46,052 | 60,095 |
Total deferred tax assets | 46,052 | 60,095 |
Noncurrent Assets [Member] | Non-U.S. [Member] | ||
Income Tax Disclosure [Line Items] | ||
Accounts receivable | 1,050 | 1,224 |
Inventories | 1,231 | 829 |
Deferred compensation | 1,386 | 1,053 |
Depreciation and amortization | 4,892 | 4,252 |
Postretirement benefits | 1,048 | 1,667 |
Tax loss carryforwards | 21,467 | 21,890 |
Tax credit carryforwards | 936 | 1,197 |
Derivatives | ||
Reserves | ||
Deferred Revenue | ||
Other | ||
Deferred tax assets before valuation allowance | 32,010 | 33,102 |
Less: valuation allowance | (9,102) | (8,389) |
Total deferred tax assets | 22,908 | 24,713 |
Noncurrent Liabilities [Member] | Domestic Tax Authority [Member] | ||
Income Tax Disclosure [Line Items] | ||
Unrepatriated foreign earnings | 2,202 | 4,028 |
Depreciation and amortization | 4,404 | 12,848 |
Postretirement benefits | ||
Deferred Gain | 3,391 | 3,762 |
Derivatives | 1,162 | |
Flow-through DTL's | 6,205 | 2,192 |
Deferred Revenue | ||
Other | 510 | |
Total deferred tax liabilities | 16,712 | 23,992 |
Noncurrent Liabilities [Member] | Non-U.S. [Member] | ||
Income Tax Disclosure [Line Items] | ||
Unrepatriated foreign earnings | ||
Depreciation and amortization | ||
Postretirement benefits | ||
Deferred Gain | ||
Derivatives | ||
Flow-through DTL's | ||
Deferred Revenue | 8,492 | 5,740 |
Other | 3,137 | |
Total deferred tax liabilities | $ 11,629 | $ 5,740 |
Income Taxes (Reconciliation _2
Income Taxes (Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits balance at January 1st | $ 3,790 | $ 4,509 | $ 4,183 |
Increase in gross amounts of tax positions related to prior years | 4,874 | 2,008 | 480 |
Decrease in gross amounts of tax positions related to prior years | (2,239) | (358) | (50) |
Increase in gross amounts of tax positions related to current years | |||
Decrease due to settlements with tax authorities | (1,626) | (381) | |
Decrease due to lapse in statute of limitations | (626) | (479) | (29) |
Currency translation decrease | (264) | ||
Currency translation increase | 35 | 306 | |
Unrecognized tax benefits balance at December 31 | $ 5,834 | $ 3,790 | $ 4,509 |
Income Taxes (Schedule of Curre
Income Taxes (Schedule of Current Income Taxes Prepaid and Receivable) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Prepaid taxes | $ 4,399 | $ 4,859 |
Taxes receivable (Payable) | 1,763 | 2,614 |
Total current income taxes prepaid | $ 6,162 | $ 7,473 |
Income Taxes (Schedule of Noncu
Income Taxes (Schedule of Noncurrent Deferred Taxes and Other Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Deferred income taxes | $ 11,002 | $ 7,547 |
Other liabilities | 1,224 | 875 |
Total noncurrent deferred taxes and other liabilities | $ 12,226 | $ 8,422 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||||||||||||||
Net income attributable to the Company | $ 132,398 | $ 82,891 | $ 33,111 | ||||||||||||
Weighted average number of shares: | |||||||||||||||
Weighted average number of shares used in calculating basic net income per share | 32,296 | 32,252 | 32,169 | ||||||||||||
Effect of dilutive stock-based compensation plans: | |||||||||||||||
Stock options | 12 | 15 | 30 | ||||||||||||
Long-term incentive plan | 14 | 28 | 45 | ||||||||||||
Weighted average number of shares used in calculating diluted net income per share | 32,322 | 32,295 | 32,244 | ||||||||||||
Average market price of common stock used for calculation of dilutive shares | $ 78.13 | $ 66.95 | $ 52.19 | ||||||||||||
Net income per share: | |||||||||||||||
Basic | $ 0.91 | $ 1.24 | $ 1.05 | $ 0.90 | $ 0.54 | $ 0.86 | $ 0.93 | $ 0.24 | $ 0.19 | $ 0.47 | $ 0.03 | $ 0.34 | 4.10 | 2.57 | 1.03 |
Diluted | $ 0.91 | $ 1.24 | $ 1.05 | $ 0.90 | $ 0.54 | $ 0.86 | $ 0.93 | $ 0.24 | $ 0.19 | $ 0.47 | $ 0.03 | $ 0.34 | $ 4.10 | $ 2.57 | $ 1.03 |
Common Stock, shares outstanding | 32,300 | 32,300 | 32,200 | 32,300 | 32,300 | 32,200 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Schedule of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $ (158,388) | $ (135,901) | $ (184,189) |
Other comprehensive income/(loss) before reclassifications | (17,924) | (24,530) | 44,363 |
Pension/postretirement settlements and curtailments | 376 | 1,146 | |
Pension/postretirement plan remeasurement | (1,437) | 443 | 2,037 |
Interest expense related to swaps reclassified to the Statement of Income, net of tax | 2,691 | (109) | 924 |
Pension and postretirement liability adjustments reclassified to Statement of Income, net of tax | 47 | 563 | 964 |
Adjustment related to prior period change in opening valuation allowance | (1,346) | ||
Net current period other comprehensive income | (17,593) | (22,487) | 48,288 |
Ending balance | (175,981) | (158,388) | (135,901) |
Translation Adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (115,976) | (87,318) | (133,298) |
Other comprehensive income/(loss) before reclassifications | (6,876) | (28,658) | 45,980 |
Pension/postretirement settlements and curtailments | |||
Pension/postretirement plan remeasurement | |||
Interest expense related to swaps reclassified to the Statement of Income, net of tax | |||
Pension and postretirement liability adjustments reclassified to Statement of Income, net of tax | |||
Net current period other comprehensive income | (6,876) | (28,658) | 45,980 |
Ending balance | (122,852) | (115,976) | (87,318) |
Pension and Postretirement Liability Adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (47,109) | (50,536) | (51,719) |
Other comprehensive income/(loss) before reclassifications | (525) | 1,275 | (1,818) |
Pension/postretirement settlements and curtailments | 376 | 1,146 | |
Pension/postretirement plan remeasurement | (1,437) | 443 | 2,037 |
Interest expense related to swaps reclassified to the Statement of Income, net of tax | |||
Pension and postretirement liability adjustments reclassified to Statement of Income, net of tax | 47 | 563 | 964 |
Adjustment related to prior period change in opening valuation allowance | (1,346) | ||
Net current period other comprehensive income | (2,885) | 3,427 | 1,183 |
Ending balance | (49,994) | (47,109) | (50,536) |
Derivative Valuation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | 4,697 | 1,953 | 828 |
Other comprehensive income/(loss) before reclassifications | (10,523) | 2,853 | 201 |
Pension/postretirement settlements and curtailments | |||
Pension/postretirement plan remeasurement | |||
Interest expense related to swaps reclassified to the Statement of Income, net of tax | 2,691 | (109) | 924 |
Pension and postretirement liability adjustments reclassified to Statement of Income, net of tax | |||
Net current period other comprehensive income | (7,832) | 2,744 | 1,125 |
Ending balance | $ (3,135) | $ 4,697 | $ 1,953 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Schedule of Items Reclassified to Statement of Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||||
Expense related to interest rate swaps included in Income before taxes | $ 19,650 | $ 20,242 | $ 18,602 | |||||||||||||
Total pretax amount reclassified | (178,212) | (115,247) | (54,708) | |||||||||||||
Income tax effect | 44,829 | 32,228 | 22,123 | |||||||||||||
Effect on net income due to items reclassified from Accumulated Other Comprehensive Income | $ (29,100) | $ (40,000) | $ (34,100) | $ (29,200) | $ (17,600) | $ (27,700) | $ (29,900) | $ (7,700) | $ (5,900) | $ (15,300) | $ (1,100) | $ (10,800) | (132,398) | (82,891) | (33,111) | |
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] | (1,011) | (146) | 1,490 | ||||||||||||
Income tax effect | 259 | 37 | (566) | |||||||||||||
Effect on net income due to items reclassified from Accumulated Other Comprehensive Income | (752) | (109) | 924 | |||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Settlements and Curtailments [Member] | ||||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||||
Total pretax amount reclassified | 450 | 1,494 | ||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment, Net Prior Service Cost (Credit) [Member] | ||||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||||
Total pretax amount reclassified | (4,420) | (4,454) | (4,453) | |||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment, Net Unamortized Gain (Loss) [Member] | ||||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||||
Total pretax amount reclassified | 4,480 | 5,175 | 5,439 | |||||||||||||
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] | 510 | 2,215 | 986 | ||||||||||||
Income tax effect | (87) | (506) | (22) | |||||||||||||
Effect on net income due to items reclassified from Accumulated Other Comprehensive Income | $ 423 | $ 1,709 | $ 964 | |||||||||||||
[1] | Included in interest expense, net are payments related to the interest rate swap agreements and amortization of swap buyouts (see Notes 17 and 18). | |||||||||||||||
[2] | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 4). |
Noncontrolling Interest (Detail
Noncontrolling Interest (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2013 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Noncontrolling Interest [Line Items] | ||||
Net income of Albany Safran Composites (ASC) | $ 133,383 | $ 83,019 | $ 32,585 | |
Net income of ASC available for common ownership | 132,398 | 82,891 | 33,111 | |
Net income attributable to noncontrolling interest | 985 | 128 | (526) | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Noncontrolling interest, beginning of year | 3,031 | |||
Net income/(loss) attributable to noncontrolling interest | 985 | 128 | (526) | |
Noncontrolling interest, end of year | 4,006 | 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% | |||
Net income of Albany Safran Composites (ASC) | 11,140 | 2,578 | ||
Less: Return attributable to the Company's preferred holding | 1,291 | 1,299 | ||
Net income of ASC available for common ownership | $ 9,849 | $ 1,279 | ||
Ownership percentage of noncontrolling shareholder | 10.00% | 10.00% | ||
Net income attributable to noncontrolling interest | $ 985 | $ 128 | ||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Noncontrolling interest, beginning of year | 3,031 | 3,247 | ||
Decrease attributable to 2018 adoption of ASC 606 | (327) | |||
Net income/(loss) attributable to noncontrolling interest | 985 | 128 | ||
Changes in other comprehensive income attributable to noncontrolling interest | (10) | (17) | ||
Noncontrolling interest, end of year | $ 4,006 | $ 3,031 | $ 3,247 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Receivables [Abstract] | ||
Trade and other accounts receivable | $ 201,427 | $ 211,244 |
Bank promissory notes | 18,563 | 19,269 |
Allowance for doubtful accounts | (1,719) | (7,337) |
Accounts receivable, net | 218,271 | 223,176 |
Noncurrent receivables | 41,234 | $ 45,061 |
Trade and other accounts receivable noncurrent | $ 5,200 | |
Noncurrent receivables invoice terms | over a 10-year |
Contract Assets and Liabiliti_3
Contract Assets and Liabilities (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred Income Tax Expense Benefit Provision For Gain Loss On Extinguishment Of Debt | ||
Increase in contract assets | $ 21.6 | |
Increase in contract liabilities | 3.4 | |
Revenue recognized | $ 6 | $ 3.2 |
Contract Assets and Liabiliti_4
Contract Assets and Liabilities (Schedule of Contract Assets and Contract Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Income Tax Expense Benefit Provision For Gain Loss On Extinguishment Of Debt | ||
Contract assets | $ 79,070 | $ 57,447 |
Contract liabilities | $ 5,656 | $ 9,025 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 52,960 | $ 40,489 |
Work in process | 31,744 | 33,181 |
Finished goods | 10,445 | 12,234 |
Total inventories | $ 95,149 | $ 85,904 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 1,412,594 | $ 1,381,512 | |
Accumulated depreciation and amortization | (946,132) | (919,457) | |
Property, plant and equipment, net | 466,462 | 462,055 | $ 454,302 |
Expenditures for maintenance and repairs | 19,800 | 19,400 | 19,100 |
Depreciation expense | 62,085 | 68,800 | 61,517 |
Software amortization | 2,400 | 3,200 | 3,600 |
Capital expenditures and purchased software | 67,955 | 82,886 | 87,637 |
Unamortized software cost | 5,300 | 6,900 | $ 7,600 |
Finance Lease, Right-of-Use Asset | 15,689 | ||
Salt Lake City, Utah [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Non-cash increase of lease modification | $ 12,700 | ||
Lease expiration date | Dec. 31, 2029 | ||
Land and Land Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 14,168 | 14,287 | |
Estimated useful life | 25 years | ||
Buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 227,875 | 245,805 | |
Buildings [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 15 years | ||
Buildings [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 40 years | ||
Right of use assets [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 16,686 | ||
Right of use assets [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 10 years | ||
Right of use assets [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 15 years | ||
Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 1,020,348 | 989,925 | |
Machinery and Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 5 years | ||
Machinery and Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 15 years | ||
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 8,126 | 8,091 | |
Estimated useful life | 5 years | ||
Computer and Other Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 18,808 | 16,473 | |
Computer and Other Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 3 years | ||
Computer and Other Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 10 years | ||
Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 60,995 | 60,182 | |
Software [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 5 years | ||
Software [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 8 years | ||
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 45,588 | $ 46,749 | |
After acquired CirComp GmbH [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Increase in Property, plant and equipment | $ 10,600 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Nov. 20, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Gross carrying amount | $ 76,700 | |||
Accumulated amortization of amortized intangible assets | 23,800 | |||
Amortization of intangible assets | $ 10,000 | 6,309 | $ 6,235 | |
Goodwill | $ 17,300 | 180,934 | 164,382 | $ 166,796 |
Cost of Goods Sold [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | 3,000 | 2,900 | 3,300 | |
Selling, general and administrative expenses [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 3,300 | $ 3,300 | $ 3,600 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Schedule of Changes in Intangible Assets and Goodwill) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Nov. 20, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Amortized intangible assets: | |||
Beginning balance | $ 49,206 | $ 55,441 | |
Acquisition | 9,973 | ||
Amortization | $ (10,000) | (6,309) | (6,235) |
Currency Translation | 22 | ||
Ending balance | 52,892 | 49,206 | |
Beginning balance | 164,382 | 166,796 | |
Acquisition | 17,343 | ||
Amortization | 0 | ||
Currency Translation | (791) | (2,414) | |
Ending balance | $ 17,300 | 180,934 | $ 164,382 |
AEC Trade Names [Member] | |||
Amortized intangible assets: | |||
Amortization life in year | 15 years | ||
Beginning balance | 11 | $ 15 | |
Acquisition | 68 | ||
Amortization | (6) | (4) | |
Currency Translation | |||
Ending balance | $ 73 | $ 11 | |
AEC Trade Names [Member] | Minimum [Member] | |||
Amortized intangible assets: | |||
Amortization life in year | 6 years | ||
AEC Trade Names [Member] | Maximum [Member] | |||
Amortized intangible assets: | |||
Amortization life in year | 15 years | ||
AEC Technology [Member] | |||
Amortized intangible assets: | |||
Amortization life in year | 15 years | ||
Beginning balance | $ 56 | $ 80 | |
Acquisition | 5,821 | ||
Amortization | (73) | (24) | |
Currency Translation | |||
Ending balance | $ 5,804 | $ 56 | |
AEC Technology [Member] | Minimum [Member] | |||
Amortized intangible assets: | |||
Amortization life in year | 10 years | ||
AEC Technology [Member] | Maximum [Member] | |||
Amortized intangible assets: | |||
Amortization life in year | 15 years | ||
Customer Contracts [Member] | |||
Amortized intangible assets: | |||
Amortization life in year | 6 years | 6 years | |
Beginning balance | $ 9,456 | $ 12,369 | |
Acquisition | |||
Amortization | (2,912) | (2,913) | |
Currency Translation | |||
Ending balance | 6,544 | $ 9,456 | |
Customer Relationships [Member] | |||
Amortized intangible assets: | |||
Amortization life in year | 15 years | ||
Beginning balance | 39,538 | $ 42,767 | |
Acquisition | 2,834 | ||
Amortization | (3,247) | (3,229) | |
Currency Translation | 22 | ||
Ending balance | $ 39,147 | $ 39,538 | |
Customer Relationships [Member] | Minimum [Member] | |||
Amortized intangible assets: | |||
Amortization life in year | 8 years | ||
Customer Relationships [Member] | Maximum [Member] | |||
Amortized intangible assets: | |||
Amortization life in year | 15 years | ||
Other Intangible Assets [Member] | |||
Amortized intangible assets: | |||
Amortization life in year | 5 years | 5 years | |
Beginning balance | $ 145 | $ 210 | |
Acquisition | |||
Amortization | (64) | (65) | |
Currency Translation | |||
Ending balance | 81 | 145 | |
MC Goodwill [Member] | |||
Amortized intangible assets: | |||
Beginning balance | 68,652 | 71,066 | |
Acquisition | |||
Amortization | |||
Currency Translation | (980) | (2,414) | |
Ending balance | 67,672 | 68,652 | |
AEC Goodwill [Member] | |||
Amortized intangible assets: | |||
Beginning balance | 95,730 | 95,730 | |
Acquisition | 17,343 | ||
Amortization | |||
Currency Translation | 189 | ||
Ending balance | $ 113,262 | 95,730 | |
Intellectual Property [Member] | |||
Amortized intangible assets: | |||
Amortization life in year | 15 years | ||
Beginning balance | |||
Acquisition | 1,250 | ||
Amortization | (7) | ||
Currency Translation | |||
Ending balance | $ 1,243 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Schedule of Estimated Amortization Expense) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 7,141 |
2021 | 7,071 |
2022 | 4,856 |
2023 | 4,135 |
2024 | $ 4,135 |
Accrued Liabilities (Narrative)
Accrued Liabilities (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Increased accrued liabilities | $ 125,885 | $ 129,030 |
Adopted ASC 842 [Member] | ||
Increased accrued liabilities | $ 50,000 |
Accrued Liabilities (Schedule o
Accrued Liabilities (Schedule of Accrued Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Salaries and wages | $ 22,878 | $ 20,821 |
Contract loss reserve | 17,190 | 20,708 |
Employee benefits | 14,235 | 12,316 |
Returns and allowances | 11,249 | 11,343 |
Accrual for compensated absences | 10,445 | 10,636 |
Dividends | 6,139 | 5,808 |
Contract liabilities | 5,656 | 9,025 |
Lease liability - Operating lease | 4,023 | |
Lease liability - Financing lease | 1,835 | |
Postretirement medical benefits - current portion | 3,808 | 3,890 |
Restructuring costs | 1,342 | 5,534 |
Professional fees | 2,999 | 2,575 |
Pension liability - current portion | 2,155 | 2,124 |
Workers' compensation | 1,982 | 1,794 |
Utilities | 790 | 974 |
Interest | 517 | 901 |
Other | 18,642 | 20,581 |
Total | $ 125,885 | $ 129,030 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) $ in Thousands | 12 Months Ended | |||||||||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 16, 2019 | Dec. 18, 2018USD ($) | Nov. 28, 2017USD ($) | Nov. 27, 2017USD ($) | Nov. 07, 2017USD ($) | May 06, 2016USD ($) | Apr. 08, 2016USD ($) | |
Debt Instrument [Line Items] | ||||||||||
Principal payments due in 2022 | $ 424,000 | |||||||||
Interest paid | $ 17,400 | $ 18,800 | $ 16,000 | |||||||
Interest rate | 5.50% | 5.50% | ||||||||
Finance lease obligation | $ 24,535 | $ 25,900 | ||||||||
Maximum leverage ratio allowed | 3.50 | |||||||||
Minimum interest coverage ratio required | 1 | |||||||||
Leverage ratio | 1.35 | |||||||||
Interest coverage ratio | 14.21 | |||||||||
Credit Agreement [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Amount of credit facility | $ 685,000 | $ 550,000 | ||||||||
Amount of credit facility outstanding | $ 424,000 | |||||||||
Additional amount that can be borrowed on facility | $ 261,000 | |||||||||
LIBOR spread | 1.375% | |||||||||
Interest rate at end of period | 3.43% | 3.69% | ||||||||
Credit Agreement [Member] | Interest Rate 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 | 3.485% | 2.11% | ||||||||
LIBOR rate | 1.74% | |||||||||
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% | |||||||||
Finance obligations [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maturity date | Dec. 31, 2022 |
Financial Instruments (Schedule
Financial Instruments (Schedule of Long-Term Debt) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Long-term debt | $ 424,029 | $ 524,931 |
Less: current portion | (20) | (1,224) |
Long-term debt, net of current portion | 424,009 | 523,707 |
Other debt | $ 29 | $ 45 |
Interest rate | 5.50% | 5.50% |
Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 424,000 | $ 499,000 |
Interest rate at end of period | 3.43% | 3.69% |
Maturity date range, end | Dec. 31, 2022 | |
Finance obligations [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 25,886 | |
Maturity date range, end | Dec. 31, 2021 |
Fair-Value Measurements (Narrat
Fair-Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | ||||
Interest expense | $ 19,650 | $ 20,242 | $ 18,602 | |
Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Interest expense | 500 | 800 | ||
Interest income | 600 | |||
Interest Rate Swap Buyouts [Member] | ||||
Derivative [Line Items] | ||||
Interest income | $ 500 | $ 600 | $ 700 | |
Interest Rate Swap Buyouts [Member] | Subsequent Event [Member] | ||||
Derivative [Line Items] | ||||
Interest income | $ 1,300 |
Fair-Value Measurements (Schedu
Fair-Value Measurements (Schedule of Fair Value of Financial Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |||
Derivative asset: | |||||
Common stock of foreign public company, original cost | $ 500 | ||||
Interest Rate Swap [Member] | |||||
Derivative liability: | |||||
Liability for fixed rate leg | 15,200 | $ 32,000 | |||
Receivable for floating rate leg | 27,500 | 20,700 | |||
Quoted Prices in Active Markets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Assets: | |||||
Cash equivalents | 16,375 | 14,234 | |||
Common stock of foreign public company | [1] | 839 | 731 | ||
Interest rate swaps | |||||
Liabilities: | |||||
Interest rate swaps | |||||
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Assets: | |||||
Cash equivalents | |||||
Common stock of foreign public company | [1] | ||||
Interest rate swaps | 4,548 | [2] | |||
Liabilities: | |||||
Interest rate swaps | $ (5,518) | [3] | |||
[1] | Original cost basis $0.5 million. | ||||
[2] | Net of $32.0 million receivable floating leg and $27.5 million liability fixed leg. | ||||
[3] | Net of $15.2 million receivable floating leg and $20.7 million liability fixed leg. |
Fair-Value Measurements (Sche_2
Fair-Value Measurements (Schedule of (Losses)/Gains on Changes in Fair Value of Derivative Instruments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Foreign Currency Options [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives not designated as hedging instruments Foreign currency options gains/(losses) | $ (61) | $ (131) |
Other Noncurrent Liabilities (D
Other Noncurrent Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other Liabilities Disclosure [Abstract] | ||
Postretirement benefits other than pensions | $ 50,576 | $ 47,237 |
Pension liabilities | 34,638 | 34,590 |
Finance lease | 22,700 | |
Operating lease | 14,386 | |
Interest rate swap agreement | 5,518 | |
Incentive and deferred compensation | 2,925 | 3,810 |
Other | 1,282 | 2,540 |
Restructuring | 700 | 100 |
Total | $ 132,725 | $ 88,277 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Lessee, Lease, Description [Line Items] | |||
Amount of Lease-related assets and liabilities pre-tax reduction to retained earnings | $ 300 | ||
Lease expense | $ 8,941 | $ 8,400 | $ 9,700 |
Terminate lease | 1 year | ||
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 | $ 3,600 | ||
Minimum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 1 year | ||
Maximum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 15 years | ||
Lease renewal term | 10 years |
Leases (Schedule of Cumulative
Leases (Schedule of Cumulative Effects of Adoption of ASC 842) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Nov. 20, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | |||||
Cash and cash equivalents | $ 195,540 | $ 197,755 | $ 183,727 | $ 181,742 | |
Accounts receivable, net | 218,271 | 223,176 | |||
Contract assets | 79,070 | 57,447 | |||
Inventories | 95,149 | 85,904 | |||
Income taxes prepaid and receivable | 6,162 | 7,473 | |||
Prepaid expenses and other current assets | 24,142 | 21,294 | |||
Total current assets | 618,334 | 593,049 | |||
Property, plant and equipment, net | 466,462 | 462,055 | 454,302 | ||
Intangibles, net | 52,892 | 49,206 | |||
Goodwill | 180,934 | $ 17,300 | 164,382 | 166,796 | |
Deferred income taxes | 51,621 | 62,622 | |||
Noncurrent receivables | 41,234 | 45,061 | |||
Other assets | 62,891 | 41,617 | |||
Total assets | 1,474,368 | 1,417,992 | 1,361,198 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
Notes and loans payable | |||||
Accounts payable | 65,203 | 52,246 | |||
Accrued liabilities | 125,885 | 129,030 | |||
Current maturities of long-term debt | 20 | 1,224 | |||
Income taxes payable | 6,806 | ||||
Total current liabilities | 202,719 | 189,306 | |||
Long-term debt | 424,009 | 523,707 | |||
Other noncurrent liabilities | 132,725 | 88,277 | |||
Deferred taxes and other liabilities | 12,226 | 8,422 | |||
Total liabilities | 771,679 | 809,712 | |||
SHAREHOLDERS' EQUITY | |||||
Preferred stock, par value $5.00 per share; authorized 2,000,000 shares; none issued | |||||
Additional paid in capital | 432,518 | 430,555 | |||
Retained earnings | 698,496 | 589,645 | |||
Accumulated items of other comprehensive income: | |||||
Translation adjustments | (122,852) | (115,976) | |||
Pension and postretirement liability adjustments | (49,994) | (47,109) | |||
Derivative valuation adjustment | (3,135) | 4,697 | |||
Treasury stock (Class A), at cost 8,418,620 shares in 2018 and 8,431,335 shares in 2017 | (256,391) | (256,603) | |||
Total Company shareholders' equity | 698,683 | 605,249 | |||
Noncontrolling interest | 4,006 | 3,031 | |||
Total equity | 702,689 | 608,280 | $ 573,015 | $ 511,290 | |
Total liabilities and shareholders' equity | 1,474,368 | 1,417,992 | |||
Common Class A [Member] | |||||
SHAREHOLDERS' EQUITY | |||||
Common Stock | 39 | 37 | |||
Common Class B [Member] | |||||
SHAREHOLDERS' EQUITY | |||||
Common Stock | $ 2 | 3 | |||
Accounting Standards Update 2018-11 [Member] | 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 8,418,620 shares in 2018 and 8,431,335 shares in 2017 | |||||
Total Company shareholders' equity | 35 | ||||
Noncontrolling interest | |||||
Total equity | 35 | ||||
Total liabilities and shareholders' equity | 7,081 | ||||
Accounting Standards Update 2018-11 [Member] | Adjustments Increase/(Decrease) [Member] | Common Class A [Member] | |||||
SHAREHOLDERS' EQUITY | |||||
Common Stock | |||||
Accounting Standards Update 2018-11 [Member] | Adjustments Increase/(Decrease) [Member] | Common Class B [Member] | |||||
SHAREHOLDERS' EQUITY | |||||
Common Stock | |||||
Accounting Standards Update 2018-11 [Member] | 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 8,418,620 shares in 2018 and 8,431,335 shares in 2017 | (256,603) | ||||
Total Company shareholders' equity | 605,284 | ||||
Noncontrolling interest | 3,031 | ||||
Total equity | 608,315 | ||||
Total liabilities and shareholders' equity | 1,425,073 | ||||
Accounting Standards Update 2018-11 [Member] | Opening balance, as adjusted [Member] | Common Class A [Member] | |||||
SHAREHOLDERS' EQUITY | |||||
Common Stock | 37 | ||||
Accounting Standards Update 2018-11 [Member] | Opening balance, as adjusted [Member] | Common Class B [Member] | |||||
SHAREHOLDERS' EQUITY | |||||
Common Stock | $ 3 |
Leases (Schedule of Cumulativ_2
Leases (Schedule of Cumulative Effects of Adoption of ASC 842) (Details) (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Preferred Stock, par value per share | $ 5 | $ 5 | |
Preferred Stock, shares authorized | 2,000,000 | 2,000,000 | |
Preferred Stock, shares issued | 0 | 0 | |
Common Stock, shares outstanding | 32,300,000 | 32,300,000 | 32,200,000 |
Treasury stock, shares | 8,408,770 | 8,418,620 | |
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 | 39,098,792 | 37,450,329 | |
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 | 1,617,998 | 3,233,998 | |
Common Stock, shares outstanding | 1,617,998 | 3,233,998 | |
As previously Reported [Member] | |||
Preferred Stock, par value per share | $ 5 | ||
Preferred Stock, shares authorized | 2,000,000 | ||
Preferred Stock, shares issued | 0 | ||
As previously Reported [Member] | Common Class A [Member] | |||
Common Stock, par value per share | $ 0.001 | $ 0.001 | |
Common Stock, shares authorized | 100,000,000 | 100,000,000 | |
Common Stock, shares issued | 37,450,329 | 37,395,753 | |
Treasury stock, shares | 8,418,620 | 8,431,335 | |
As previously Reported [Member] | 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 | |
Adjustments Increase/(decrease) [Member] | |||
Preferred Stock, par value per share | $ 5 | ||
Preferred Stock, shares authorized | 2,000,000 | ||
Preferred Stock, shares issued | 0 | ||
Adjustments Increase/(decrease) [Member] | Common Class A [Member] | |||
Common Stock, par value per share | $ 0.001 | $ 0.001 | |
Common Stock, shares authorized | 100,000,000 | 100,000,000 | |
Common Stock, shares issued | 37,450,329 | 37,395,753 | |
Adjustments Increase/(decrease) [Member] | 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 | |
Opening balance, as adjusted, January 1, 2018 [Member] | |||
Preferred Stock, par value per share | $ 5 | ||
Preferred Stock, shares authorized | 2,000,000 | ||
Preferred Stock, shares issued | 0 | ||
Opening balance, as adjusted, January 1, 2018 [Member] | Common Class A [Member] | |||
Common Stock, par value per share | $ 0.001 | $ 0.001 | |
Common Stock, shares authorized | 100,000,000 | 100,000,000 | |
Common Stock, shares issued | 37,450,329 | 37,395,753 | |
Opening balance, as adjusted, January 1, 2018 [Member] | 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 |
Leases (Schedule of Components
Leases (Schedule of Components of Lease Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finance lease | |||
Amortization of right-of-use asset | $ 997 | ||
Interest on lease liabilities | 1,563 | ||
Operating lease | |||
Fixed lease cost | 5,063 | ||
Variable lease cost | 35 | ||
Short-term lease cost | 1,283 | ||
Total lease expense | $ 8,941 | $ 8,400 | $ 9,700 |
Leases (Schedule of Supplementa
Leases (Schedule of Supplemental Cash Flow Information Related to Leases) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Lessee Disclosure [Abstract] | |||
Operating cash flows from operating leases | $ 4,932 | ||
Operating cash flows from finance leases | 1,563 | ||
Financing cash flows from finance leases | 1,180 | ||
Right-of-use assets obtained in exchange for operating lease obligations | 9,250 | ||
Right-of-use assets obtained in exchange for finance lease obligations | $ 5,686 |
Leases (Schedule of Supplemen_2
Leases (Schedule of Supplemental Balance Sheet Information Related to Leases) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Operating leases | ||
Right of use assets included in Other assets | $ 18,223 | |
Operating lease liabilities current | 4,023 | |
Operating lease liabilities noncurrent | 14,386 | |
Total operating lease liabilities | 18,409 | |
Finance lease | ||
Right of use assets included in Property, plant and equipment, net | 15,689 | |
Finance lease liabilities current | 1,835 | |
Finance lease liabilities noncurrent | 22,700 | |
Total finance lease liabilities | 24,535 | $ 25,900 |
Accrued liabilities [Member] | ||
Operating leases | ||
Operating lease liabilities current | 4,023 | |
Finance lease | ||
Finance lease liabilities current | 1,835 | |
Other Noncurrent Liabilities [Member] | ||
Operating leases | ||
Operating lease liabilities noncurrent | 14,386 | |
Finance lease | ||
Finance lease liabilities noncurrent | $ 22,700 |
Leases (Schedule of Additional
Leases (Schedule of Additional Information Related to Leases) (Details) | Dec. 31, 2019 |
Lessee Disclosure [Abstract] | |
Weighted average remaining lease term - Operating leases | 6 years |
Weighted average remaining lease term - Finance leases | 10 years |
Weighted average discount rate - Operating leases | 4.90% |
Weighted average discount rate - Finance leases | 6.70% |
Leases (Schedule of Maturities
Leases (Schedule of Maturities of Lease Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Operating leases | ||
2020 | $ 5,153 | |
2021 | 4,133 | |
2022 | 3,096 | |
2023 | 2,128 | |
2024 | 1,496 | |
Thereafter | 5,332 | |
Total lease payments | 21,338 | |
Less imputed interest | (2,929) | |
Total | 18,409 | |
Finance lease | ||
2020 | 3,347 | |
2021 | 3,347 | |
2022 | 3,394 | |
2023 | 3,560 | |
2024 | 3,560 | |
Thereafter | 15,692 | |
Total lease payments | 32,900 | |
Less imputed interest | (8,365) | |
Total | 24,535 | $ 25,900 |
Salt Lake City, Utah [Member] | ||
Finance lease | ||
2020 | 2,451 | |
2021 | 2,974 | |
2022 | 2,990 | |
2023 | 3,054 | |
2024 | 3,277 | |
Thereafter | 18,930 | |
Total lease payments | 33,676 | |
Less imputed interest | (7,790) | |
Total | $ 25,886 |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) - Asbestos Litigation [Member] $ in Millions | Dec. 31, 2019USD ($)claims |
Loss Contingencies [Line Items] | |
Total resolved claims, by means of settlement or dismissal | claims | 37,797 |
Total cost of resolution | $ | $ 10.3 |
Resolution costs paid by insurance carrier | 100.00% |
Confirmed insurance coverage | $ | $ 140 |
Brandon Drying Fabrics, Inc. [Member] | |
Loss Contingencies [Line Items] | |
Total resolved claims, by means of settlement or dismissal | claims | 7,710 |
Resolution costs paid by insurance carrier | 100.00% |
Commitments and Contingencies_3
Commitments and Contingencies (Schedule of Changes in Claims) (Details) - Asbestos Litigation [Member] $ in Thousands | 12 Months Ended | |||||
Dec. 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 | 51 | 152 | 105 | 148 | 116 | 625 |
New Claims | 75 | 106 | 90 | 102 | 86 | 147 |
Closing Number of Claims | 3,708 | 3,684 | 3,730 | 3,745 | 3,791 | 3,821 |
Amounts Paid (thousands) to Settle or Resolve | $ | $ 25 | $ 100 | $ 55 | $ 758 | $ 164 | $ 437 |
Stock Options and Incentive P_3
Stock Options and Incentive Plans (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Jan. 20, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Subsequent Event [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Deferred compensation expense | $ 3 | |||||||
Pension Plans [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Deferred compensation plan expense | $ 6.8 | $ 6.3 | $ 5.9 | |||||
Profit Sharing Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Deferred compensation plan expense | $ 3.7 | 3.2 | 2.6 | |||||
Minimum [Member] | Pension Plans [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percent of employee contribution matched by the Company | 50.00% | |||||||
Maximum [Member] | Pension Plans [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percent of employee contribution matched by the Company | 100.00% | |||||||
Stock Options [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Contractual term of stock options, in years | 20 years | |||||||
Length of time options are valid after retirement, in years | 10 years | |||||||
Aggregate intrinsic value of vested options | $ 0.7 | |||||||
Aggregate intrinsic value of options exercised | $ 1.1 | 0.4 | 0.5 | |||||
Long Term Incentive Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares of stock authorized for payment of awards | 1,115,472 | |||||||
Shares issued for long term incentive plan | 25,473 | 33,425 | 25,899 | |||||
Cash payments in connection with long term incentive plan | $ 1 | $ 1.3 | $ 1 | |||||
Deferred compensation expense | 0.8 | 2.6 | ||||||
Vesting period | 3 years | |||||||
Long Term Incentive Plan [Member] | Management [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares issued for long term incentive plan | 10,751 | 18,784 | ||||||
Cash payments in connection with long term incentive plan | $ 1.4 | $ 1.9 | ||||||
Deferred compensation expense | $ 4.9 | 3.4 | 2.6 | $ 3.3 | ||||
Additional share based compensation expense expected to be recognized in next twelve months | 0.4 | |||||||
Additional share based compensation expense expected to be recognized in two years | $ 0.2 | |||||||
Long Term Incentive Plan [Member] | Management [Member] | Minimum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Earned incentive compensation paid in shares of Class A Common Stock | 40.00% | |||||||
Long Term Incentive Plan [Member] | Management [Member] | Maximum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Earned incentive compensation paid in shares of Class A Common Stock | 50.00% | |||||||
Phantom Stock Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Deferred compensation expense | $ 6.3 | 4.8 | $ 4.9 | |||||
Compensation cost not yet recognized | $ 11 | |||||||
Vesting period | 5 years | |||||||
Compensation cost recognition period | 2 years | |||||||
Restricted Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Deferred compensation expense | $ 1.1 | $ 0.5 | ||||||
Compensation cost not yet recognized | $ 1.5 |
Stock Options and Incentive P_4
Stock Options and Incentive Plans (Schedules of Stock Option Activity) (Details) - Stock Options [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Shares | |||
Shares under option January 1 | 18,940 | 29,340 | 62,390 |
Options canceled | 150 | ||
Options exercised | 6,990 | 10,400 | 32,900 |
Shares under option at December 31 | 11,950 | 18,940 | 29,340 |
Options exercisable at December 31 | 11,950 | 18,940 | 29,340 |
Weighted Average Exercise Price | |||
Shares under option January 1 | $ 17.87 | $ 18.40 | $ 18.28 |
Options canceled | 20.63 | ||
Options exercised | 16.06 | 19.38 | 18.16 |
Shares under option December 31 | 18.93 | 17.87 | 18.40 |
Options exercisable December 31 | $ 18.93 | $ 17.87 | $ 18.40 |
Stock Options and Incentive P_5
Stock Options and Incentive Plans (Schedules of Executive Management Share-based Compensation Activity) (Details) - Performance Shares [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number of shares | |||
Shares/Share units potentially payable, beginning balance | 112,465 | 157,405 | 189,418 |
Forfeitures | |||
Payments | (45,689) | (79,762) | (75,545) |
Shares accrued | 14,936 | 34,822 | 43,532 |
Shares/Share units potentially payable, ending balance | 81,712 | 112,465 | 157,405 |
Weighted average grant date value per share | |||
Shares/Share units potentially payable, beginning balance | $ 49.96 | $ 40.30 | $ 36.90 |
Forfeitures | |||
Payments | 36.74 | 39.90 | 36.35 |
Shares accrued | 92.12 | 70.59 | 48.26 |
Shares/Share units potentially payable, ending balance | $ 65.06 | $ 49.96 | $ 40.30 |
Year-end intrinsic value | |||
Shares potentially payable | $ 5,619 | $ 6,343 | $ 6,989 |
Shares potentially payable | $ 5,316 | $ 5,619 | $ 6,343 |
Stock Options and Incentive P_6
Stock Options and Incentive Plans (Schedules of Other Share-based Compensation Activity) (Details) - Restricted Stock [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number of shares | |||
Shares/Share units potentially payable, beginning balance | 227,301 | 236,096 | 261,145 |
Grants | 58,878 | 65,370 | 96,505 |
Changes due to performance | 21,740 | 14,343 | (11,891) |
Payments | (69,912) | (75,545) | (89,190) |
Forfeitures | (22,935) | (12,963) | (20,473) |
Shares/Share units potentially payable, ending balance | 215,072 | 227,301 | 236,096 |
Weighted average grant date value per share | |||
Payments | $ 70.67 | $ 62.69 | $ 46.64 |
Cash paid for share based liabilities | $ 5,528 | $ 4,736 | $ 4,160 |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Aug. 31, 2006 | |
ASC 606 [Member] | |||||
Class of Stock [Line Items] | |||||
Increase decrease in retained earnings | $ 5.6 | ||||
Increase decrease in non controlling interest | 0.3 | ||||
ASU 2016-16 [Member] | |||||
Class of Stock [Line Items] | |||||
Increase decrease in retained earnings | $ 0.5 | ||||
ASC 842 [Member] | |||||
Class of Stock [Line Items] | |||||
Increase decrease in retained earnings | $ 0.1 | ||||
Common Class A [Member] | |||||
Class of Stock [Line Items] | |||||
Dividends declared per share amount | $ 0.69 | $ 0.68 | $ 0.73 | ||
Common Stock, par value per share | 0.001 | $ 0.001 | |||
Common Stock reserved for the conversion of Class B Common Stock and the exercise of stock options | 1.6 | ||||
Number of shares authorized to be repurchased | 2 | ||||
Common Class A [Member] | Public offering [Member] | Number of Shares Reduced [Member] | |||||
Class of Stock [Line Items] | |||||
Common Stock reserved for the conversion of Class B Common Stock and the exercise of stock options | 1.6 | ||||
Common Class B [Member] | |||||
Class of Stock [Line Items] | |||||
Dividends declared per share amount | 0.69 | $ 0.68 | $ 0.73 | ||
Common Stock, par value per share | $ 0.001 | $ 0.001 | |||
Common Class B [Member] | Standish Family Holdings, LLC [Member] | |||||
Class of Stock [Line Items] | |||||
Conversion of stock | 1.6 |
Shareholders' Equity (Schedule
Shareholders' Equity (Schedule of Activity in Shareholders' Equity) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Balance | $ 608,280 | $ 573,015 | $ 511,290 | |||
Balance, shares | 32,300,000 | 32,200,000 | ||||
Net income | $ 133,383 | $ 83,019 | 32,585 | |||
Adoption of accounting standards | 35 | [1] | (5,395) | [2],[3] | ||
Compensation and benefits paid or payable in shares | 1,311 | 1,437 | 1,564 | |||
Options exercised | 112 | 201 | 597 | |||
Shares issued to Directors' | 752 | 767 | 569 | |||
Cumulative translation adjustments | (6,886) | (28,675) | 45,986 | |||
Pension and postretirement liability adjustments | (2,885) | 3,427 | 1,183 | |||
Derivative valuation adjustment | (7,832) | 2,744 | 1,125 | |||
Balance | $ 702,689 | $ 608,280 | $ 573,015 | |||
Balance, shares | 32,300,000 | 32,300,000 | 32,200,000 | |||
Common Class A [Member] | ||||||
Conversion of Class B shares to Class A shares | [4] | $ 2 | ||||
Conversion of Class B shares to Class A shares, shares | [4] | 1,616 | ||||
Dividends declared | $ (21,818) | $ (20,029) | $ (19,685) | |||
Common Class B [Member] | ||||||
Balance, shares | 3,233,998 | |||||
Conversion of Class B shares to Class A shares | [4] | $ (1) | ||||
Conversion of Class B shares to Class A shares, shares | [4] | (1,616) | ||||
Dividends declared | $ (1,763) | $ (2,231) | (2,199) | |||
Balance, shares | 1,617,998 | 3,233,998 | ||||
Common Stock [Member] | Common Class A [Member] | ||||||
Balance | $ 37 | $ 37 | $ 37 | |||
Balance, shares | 37,450,000 | 37,396,000 | 37,319,000 | |||
Compensation and benefits paid or payable in shares, shares | 26,000 | 44,000 | 44,000 | |||
Options exercised, shares | 7,000 | 10,000 | 33,000 | |||
Balance | $ 39 | $ 37 | $ 37 | |||
Balance, shares | 39,099,000 | 37,450,000 | 37,396,000 | |||
Common Stock [Member] | Class B Preferred Stock [Member] | ||||||
Balance | $ 3 | $ 3 | $ 3 | |||
Balance, shares | 3,234,000 | 3,234,000 | 3,234,000 | |||
Balance | $ 2 | $ 3 | $ 3 | |||
Balance, shares | 1,618,000 | 3,234,000 | 3,234,000 | |||
Additional Paid-in Capital [Member] | ||||||
Balance | $ 430,555 | $ 428,423 | $ 425,953 | |||
Compensation and benefits paid or payable in shares | 1,311 | 1,437 | 1,564 | |||
Options exercised | 112 | 201 | 597 | |||
Shares issued to Directors' | 540 | 494 | 309 | |||
Balance | 432,518 | 430,555 | 428,423 | |||
Retained Earnings [Member] | ||||||
Balance | 589,645 | 534,082 | 522,855 | |||
Net income | 132,398 | 82,891 | 33,111 | |||
Adoption of accounting standards | 35 | [1] | (5,068) | [2],[3] | ||
Conversion of Class B shares to Class A shares | [4] | (1) | ||||
Balance | 698,496 | 589,645 | 534,082 | |||
Retained Earnings [Member] | Common Class A [Member] | ||||||
Dividends declared | (21,818) | (20,029) | (19,685) | |||
Retained Earnings [Member] | Common Class B [Member] | ||||||
Dividends declared | (1,763) | (2,231) | (2,199) | |||
Accumulated Other Comprehensive Income (Loss) [Member] | ||||||
Balance | (158,388) | (135,901) | (184,189) | |||
Cumulative translation adjustments | (6,876) | (28,658) | 45,980 | |||
Pension and postretirement liability adjustments | (2,885) | 3,427 | 1,183 | |||
Derivative valuation adjustment | (7,832) | 2,744 | 1,125 | |||
Balance | (175,981) | (158,388) | (135,901) | |||
Treasury Stock [Member] | ||||||
Balance | $ (256,603) | $ (256,876) | $ (257,136) | |||
Balance, shares | 8,419,000 | 8,431,000 | 8,443,000 | |||
Shares issued to Directors' | $ 212 | $ 273 | $ 260 | |||
Shares issued to Directors', shares | (10,000) | (12,000) | (12,000) | |||
Balance | $ (256,391) | $ (256,603) | $ (256,876) | |||
Balance, shares | 8,409,000 | 8,419,000 | 8,431,000 | |||
Noncontrolling Interest [Member] | ||||||
Balance | $ 3,031 | $ 3,247 | $ 3,767 | |||
Net income | 985 | 128 | (526) | |||
Adoption of accounting standards | [2],[3] | (327) | ||||
Cumulative translation adjustments | (10) | (17) | 6 | |||
Balance | $ 4,006 | $ 3,031 | $ 3,247 | |||
[1] | As described in Note 20, 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] | As described in Note 2, the Company adopted ASC 606 effective January 1, 2018, which resulted in a decrease to Retained earnings of $5.6 million and a $0.3 million decrease to Noncontrolling interest. | |||||
[3] | The Company adopted ASU 2016-16 effective January 1, 2018, which resulted in a $0.5 million increase to Retained earnings. | |||||
[4] | In the second quarter of 2019, Standish Family Holdings, LLC executed a secondary offering of Albany shares. As a result of the offering, 1.6 million shares of Class B Common Stock previously owned by Standish Family Holdings, LLC were converted to Class A Common Stock and then sold to third parties. Costs associated with the offering were charged directly to Standish Family Holdings, LLC. |
Business Acquisition (Narrative
Business Acquisition (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Nov. 20, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | ||||
Cash consideration for acquisition | $ 30,793 | |||
CirComp GmbH [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash consideration for acquisition | $ 32,400 | |||
Deferred payments | $ 5,500 | |||
Period of equal installments | 5 years | |||
Amount of agreed to purchase primary operating facility | $ 5,600 | |||
Expenses related to acquisition | 100 | |||
Professional fees, related to acquisition | $ 500 |
Business Acquisition (Schedule
Business Acquisition (Schedule of Allocation of Purchase Price) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Nov. 20, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets acquired | ||||
Goodwill | $ 180,934 | $ 17,300 | $ 164,382 | $ 166,796 |
CirComp GmbH [Member] | ||||
Assets acquired | ||||
Cash | 1,607 | |||
Accounts receivable | 986 | |||
Contract assets | 2,269 | |||
Inventories | 525 | |||
Prepaid expenses and other current assets | 452 | |||
Right of use assets | 5,686 | |||
Property, plant and equipment | 4,884 | |||
Amortizable intangibles (see Note 15) | 9,973 | |||
Goodwill | 17,343 | |||
Total assets acquired | 43,725 | |||
Liabilities assumed | ||||
Accounts payable | 65 | |||
Accrued liabilities | 2,249 | |||
Lease liabilities | 502 | |||
Deferred income taxes | 3,325 | |||
Other noncurrent liabilities | 5,184 | |||
Total liabilities assumed | 11,325 | |||
Net assets acquired | 32,400 | |||
Purchase of business, net of cash acquired | $ 30,793 |
Business Acquisition (Summary o
Business Acquisition (Summary of Operational Results) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | ||||||||||||||||
Net sales | $ 257,700 | $ 271,100 | $ 273,900 | $ 251,400 | $ 251,600 | $ 251,900 | $ 255,400 | $ 223,600 | $ 226,700 | $ 222,100 | $ 215,600 | $ 199,300 | $ 1,054,132 | $ 982,479 | $ 863,717 | |
Operating loss | 193,576 | 137,408 | 78,676 | |||||||||||||
Loss before income taxes | 178,212 | 115,247 | 54,708 | |||||||||||||
Net loss attributable to the Company | $ 29,100 | $ 40,000 | $ 34,100 | $ 29,200 | $ 17,600 | $ 27,700 | $ 29,900 | $ 7,700 | $ 5,900 | $ 15,300 | $ 1,100 | $ 10,800 | $ 132,398 | $ 82,891 | $ 33,111 | |
Loss per share: | ||||||||||||||||
Basic | $ 0.91 | $ 1.24 | $ 1.05 | $ 0.90 | $ 0.54 | $ 0.86 | $ 0.93 | $ 0.24 | $ 0.19 | $ 0.47 | $ 0.03 | $ 0.34 | $ 4.10 | $ 2.57 | $ 1.03 | |
Diluted | $ 0.91 | $ 1.24 | $ 1.05 | $ 0.90 | $ 0.54 | $ 0.86 | $ 0.93 | $ 0.24 | $ 0.19 | $ 0.47 | $ 0.03 | $ 0.34 | $ 4.10 | $ 2.57 | $ 1.03 | |
CirComp GmbH [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Net sales | $ 485 | |||||||||||||||
Operating loss | (162) | |||||||||||||||
Loss before income taxes | (199) | |||||||||||||||
Net loss attributable to the Company | $ (324) | |||||||||||||||
Loss per share: | ||||||||||||||||
Basic | $ (0.01) | |||||||||||||||
Diluted | $ (0.01) |
Quarterly Financial Data (Narra
Quarterly Financial Data (Narrative) (Details) | 3 Months Ended | |||||||||||
Dec. 31, 2019owners$ / shares | Sep. 30, 2019$ / shares | Jun. 30, 2019$ / shares | Mar. 31, 2019$ / shares | Dec. 31, 2018$ / shares | Sep. 30, 2018$ / shares | Jun. 30, 2018$ / shares | Mar. 31, 2018$ / shares | Dec. 31, 2017$ / shares | Sep. 30, 2017$ / shares | Jun. 30, 2017$ / shares | Mar. 31, 2017$ / shares | |
Quarterly Financial Data [Abstract] | ||||||||||||
Restructuring charges, per share | $ (0.04) | $ 0.01 | $ (0.02) | $ (0.01) | $ 0.04 | $ 0.06 | $ 0.06 | $ 0.18 | $ 0.07 | $ 0.11 | $ 0.04 | $ 0.05 |
Discrete income tax adjustments, per share | $ 0.06 | $ 0.02 | $ (0.03) | $ 0.10 | $ (0.01) | $ 0 | $ 0.12 | $ 0.01 | (0.21) | 0.12 | $ (0.02) | $ (0.03) |
Write-off of inventory (decreased)/increased earnings per share | $ 0.01 | $ (0.06) | ||||||||||
Number of beneficial owners, including employees owning shares through the Company's 401(k) | owners | 20,000 |
Quarterly Financial Data (Sched
Quarterly Financial Data (Schedule of Quarterly Data) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net sales | $ 257,700 | $ 271,100 | $ 273,900 | $ 251,400 | $ 251,600 | $ 251,900 | $ 255,400 | $ 223,600 | $ 226,700 | $ 222,100 | $ 215,600 | $ 199,300 | $ 1,054,132 | $ 982,479 | $ 863,717 |
Gross profit | 96,600 | 104,100 | 105,200 | 91,800 | 87,900 | 92,400 | 91,700 | 77,700 | 77,500 | 79,600 | 63,200 | 76,000 | 397,701 | 349,749 | 296,283 |
Operating income | 193,576 | 137,408 | 78,676 | ||||||||||||
Net income attributable to the Company | $ 29,100 | $ 40,000 | $ 34,100 | $ 29,200 | $ 17,600 | $ 27,700 | $ 29,900 | $ 7,700 | $ 5,900 | $ 15,300 | $ 1,100 | $ 10,800 | $ 132,398 | $ 82,891 | $ 33,111 |
Basic earnings per share | $ 0.91 | $ 1.24 | $ 1.05 | $ 0.90 | $ 0.54 | $ 0.86 | $ 0.93 | $ 0.24 | $ 0.19 | $ 0.47 | $ 0.03 | $ 0.34 | $ 4.10 | $ 2.57 | $ 1.03 |
Diluted earnings per share | 0.91 | 1.24 | 1.05 | 0.90 | 0.54 | 0.86 | 0.93 | 0.24 | 0.19 | 0.47 | 0.03 | 0.34 | 4.10 | 2.57 | 1.03 |
Cash dividends per share | 0.19 | 0.18 | 0.18 | 0.18 | 0.18 | 0.17 | 0.17 | 0.17 | 0.17 | 0.17 | 0.17 | 0.17 | $ 0.73 | $ 0.69 | $ 0.68 |
Maximum [Member] | |||||||||||||||
Class A Common Stock prices: | 90.30 | 91.51 | 82.91 | 78.45 | 78.31 | 81.40 | 65.45 | 67.30 | 65.25 | 57.60 | 53.40 | 49.05 | |||
Minimum [Member] | |||||||||||||||
Class A Common Stock prices: | $ 75.92 | $ 78.41 | $ 69.29 | $ 60.82 | $ 58.41 | $ 60.70 | $ 58.35 | $ 60.05 | $ 56.45 | $ 50.25 | $ 43.90 | $ 43.90 |
VALUATION AND QUALIFYING ACCO_2
VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Allowance for Doubtful Accounts [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at beginning of period | $ 7,337 | $ 7,919 | $ 6,952 | |
Charge to expense | 309 | 579 | 1,388 | |
Other | [1] | (5,927) | (1,161) | (421) |
Balance at end of the period | 1,719 | 7,337 | 7,919 | |
Allowance for Sales Returns [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at beginning of period | 11,343 | 11,370 | 13,714 | |
Charge to expense | 7,278 | 8,372 | 8,909 | |
Other | [1] | (7,372) | (8,399) | (11,253) |
Balance at end of the period | 11,249 | 11,343 | 11,370 | |
Valuation Allowance Deferred Tax Assets [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at beginning of period | 8,389 | 16,057 | 22,821 | |
Charge to expense | (4,882) | (3,552) | ||
Other | [1] | 146 | (2,786) | (3,212) |
Balance at end of the period | $ 9,102 | $ 8,389 | $ 16,057 | |
[1] | Amounts sold, written off, or recovered, and the effect of changes in currency translation rates, are included in Column D. |