Document and Entity Information
Document and Entity Information - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2020 | Apr. 16, 2020 | |
Entity Central Index Key | 0000819793 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2020 | |
Entity File Number | 1-10026 | |
Entity Registrant Name | ALBANY INTERNATIONAL CORP. | |
Entity Incorporation, State or Country Code | NH | |
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 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 Information, Former Legal or Registered Name | N/A | |
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, $0.001 par value per share | |
Trading Symbol | AIN | |
Name of Exchange on which Security is Registered | NYSE | |
Entity Common Stock, Shares Outstanding | 1.6 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Net sales | $ 235,764 | $ 251,373 |
Cost of goods sold | 146,292 | 159,602 |
Gross profit | 89,472 | 91,771 |
Selling, general, and administrative expenses | 40,106 | 40,945 |
Technical and research expenses | 9,130 | 10,249 |
Restructuring expenses, net | 642 | 484 |
Operating income | 39,594 | 40,093 |
Interest expense, net | 3,977 | 4,417 |
Other expense/(income), net | 15,569 | (1,208) |
Income before income taxes | 20,048 | 36,884 |
Income tax expense | 12,454 | 7,476 |
Net income | 7,594 | 29,408 |
Net (loss)/income attributable to the noncontrolling interest | (1,515) | 218 |
Net income attributable to the Company | $ 9,109 | $ 29,190 |
Earnings per share attributable to Company shareholders - Basic | $ 0.28 | $ 0.90 |
Earnings per share attributable to Company shareholders - Diluted | $ 0.28 | $ 0.90 |
Shares of the Company used in computing earnings per share: | ||
Basic | 32,312 | 32,272 |
Diluted | 32,320 | 32,285 |
Dividends declared per share, Class A and Class B | $ 0.19 | $ 0.18 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 7,594 | $ 29,408 |
Other comprehensive income/(loss), before tax: | ||
Foreign currency translation and other adjustments | (24,955) | (2,152) |
Amortization of pension liability adjustments: | ||
Prior service credit | (1,114) | (1,105) |
Net actuarial loss | 1,244 | 1,121 |
Payments and amortization related to interest rate swaps included in earnings | 407 | (452) |
Derivative valuation adjustment | (10,764) | (3,377) |
Income taxes related to items of other comprehensive income/(loss): | ||
Amortization of pension liability adjustment | (32) | (5) |
Payments and amortization related to interest rate swaps included in earnings | (104) | 115 |
Derivative valuation adjustment | 2,753 | 863 |
Comprehensive income | (24,971) | 24,416 |
Comprehensive income/(loss) attributable to the noncontrolling interest | (1,406) | 210 |
Comprehensive income/(loss) attributable to the Company | $ (23,565) | $ 24,206 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 222,680 | $ 195,540 |
Accounts receivable, net | 211,081 | 218,271 |
Contract assets, net | 84,578 | 79,070 |
Inventories | 109,426 | 95,149 |
Income taxes prepaid and receivable | 5,922 | 6,162 |
Prepaid expenses and other current assets | 25,827 | 24,142 |
Total current assets | 659,514 | 618,334 |
Property, plant and equipment, net | 446,890 | 466,462 |
Intangibles, net | 51,323 | 52,892 |
Goodwill | 179,366 | 180,934 |
Deferred income taxes | 48,260 | 51,621 |
Noncurrent receivables, net | 38,929 | 41,234 |
Other assets | 59,349 | 62,891 |
Total assets | 1,483,631 | 1,474,368 |
Current liabilities: | ||
Accounts payable | 58,874 | 65,203 |
Accrued liabilities | 110,071 | 125,885 |
Current maturities of long-term debt | 20 | 20 |
Income taxes payable | 6,656 | 11,611 |
Total current liabilities | 175,621 | 202,719 |
Long-term debt | 491,002 | 424,009 |
Other noncurrent liabilities | 134,918 | 132,725 |
Deferred taxes and other liabilities | 12,529 | 12,226 |
Total liabilities | 814,070 | 771,679 |
SHAREHOLDERS' EQUITY | ||
Preferred stock, par value $5.00 per share; authorized 2,000,000 shares; none issued | ||
Additional paid in capital | 431,836 | 432,518 |
Retained earnings | 700,021 | 698,496 |
Accumulated items of other comprehensive income: | ||
Translation adjustments | (148,599) | (122,852) |
Pension and postretirement liability adjustments | (49,104) | (49,994) |
Derivative valuation adjustment | (10,843) | (3,135) |
Treasury stock (Class A), at cost; 8,408,770 shares in 2020 and 2019 | (256,391) | (256,391) |
Total Company shareholders' equity | 666,961 | 698,683 |
Noncontrolling interest | 2,600 | 4,006 |
Total equity | 669,561 | 702,689 |
Total liabilities and shareholders' equity | 1,483,631 | 1,474,368 |
Common Class A [Member] | ||
SHAREHOLDERS' EQUITY | ||
Common Stock | 39 | 39 |
Accumulated items of other comprehensive income: | ||
Total equity | 39 | 39 |
Common Class B [Member] | ||
SHAREHOLDERS' EQUITY | ||
Common Stock | 2 | 2 |
Accumulated items of other comprehensive income: | ||
Total equity | $ 2 | $ 2 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Preferred Stock, par value per share | $ 5 | $ 5 |
Preferred Stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred Stock, shares issued | 0 | 0 |
Treasury stock, shares | 8,408,770 | 8,408,770 |
Common Class A [Member] | ||
Common Stock, par value per share | $ 1 | $ 1 |
Common Stock, shares authorized | 100,000,000 | 100,000,000 |
Common Stock, shares issued | 39,111,722 | 39,098,792 |
Common Class B [Member] | ||
Common Stock, par value per share | $ 1 | $ 1 |
Common Stock, shares authorized | 25,000,000 | 25,000,000 |
Common Stock, shares issued | 1,617,998 | 1,617,998 |
Common Stock, shares outstanding | 1,617,998 | 1,617,998 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
OPERATING ACTIVITIES | ||
Net income | $ 7,594 | $ 29,408 |
Adjustments to reconcile net income to net cash (used in)/provided by operating activities: | ||
Depreciation | 15,506 | 15,642 |
Amortization | 2,564 | 2,314 |
Change in deferred taxes and other liabilities | 5,817 | (1,065) |
Provision for write-off of property, plant and equipment | 197 | 386 |
Non-cash interest expense | 151 | 151 |
Compensation and benefits paid or payable in Class A Common Stock | (682) | (547) |
Fair value adjustment on foreign currency option | 64 | |
Provision for credit losses from uncollected receivables and contract assets | 1,655 | 585 |
Foreign currency remeasurement loss/(gain) on intercompany loans | 15,387 | (1,707) |
Changes in operating assets and liabilities that (used)/provided cash: | ||
Accounts receivable | (3,394) | (12,209) |
Contract assets | (8,840) | (481) |
Inventories | (19,750) | (16,662) |
Prepaid expenses and other current assets | (2,156) | (2,804) |
Income taxes prepaid and receivable | (237) | 674 |
Accounts payable | (1,046) | 21,750 |
Accrued liabilities | (15,072) | (11,095) |
Income taxes payable | (3,571) | 1,506 |
Noncurrent receivables | (231) | (294) |
Other noncurrent liabilities | (60) | (1,679) |
Other, net | (534) | 693 |
Net cash (used in)/provided by operating activities | (6,638) | 24,566 |
INVESTING ACTIVITIES | ||
Purchases of property, plant and equipment | (12,759) | (20,798) |
Purchased software | (46) | (22) |
Net cash used in investing activities | (12,805) | (20,820) |
FINANCING ACTIVITIES | ||
Proceeds from borrowings | 70,000 | 20,000 |
Principal payments on debt | (3,006) | (28,004) |
Principal payments on finance lease liabilities | (6,134) | (400) |
Taxes paid in lieu of share issuance | (490) | (971) |
Proceeds from options exercised | 44 | |
Dividends paid | (6,139) | (5,808) |
Net cash provided by/(used in) financing activities | 54,231 | (15,139) |
Effect of exchange rate changes on cash and cash equivalents | (7,648) | 1,023 |
Increase/(decrease) in cash and cash equivalents | 27,140 | (10,370) |
Cash and cash equivalents at beginning of period | 195,540 | 197,755 |
Cash and cash equivalents at end of period | $ 222,680 | $ 187,385 |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 1. Significant Accounting Policies Basis of Presentation In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary for a fair presentation of results for such periods. Albany International Corp. (Albany, the Registrant, the Company, we, us, or our) consolidates the financial results of its subsidiaries for all periods presented. The results for any interim period are not necessarily indicative of results for the full year. The preparation of financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in Albany International Corp.’s Consolidated Financial Statements and accompanying Notes. Actual results could differ materially from those estimates. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with Albany International Corp.’s Annual Report on Form 10-K for the year ended December 31, 2019. Effective January 1, 2020, we adopted the provisions of ASC 326, Current Expected Credit Losses (CECL) |
Reportable Segments
Reportable Segments | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Reportable Segments | 2. Reportable Segments In accordance with applicable disclosure guidance for enterprise segments and related information, the internal organization that is used by management for making operating decisions and assessing performance is used as the basis for our reportable segments. The Machine Clothing (“MC”) segment 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. 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 the fourth quarter of 2019, Safran leased manufacturing space from AEC for the GE9X program. Rent paid by Safran under this lease amounted to $0.2 million for the first three months of 2020. AEC net sales to Safran were $38.0 million and $56.0 million in the first three months of 2020 and 2019, respectively. The total of Accounts receivable, Contract assets and Noncurrent receivables due from Safran amounted to $112.1 million and $114.5 million as of March 31, 2020 and December 31, 2019, respectively. Other significant programs 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. 7 Index The following tables show data by reportable segment, reconciled to consolidated totals included in the financial statements: Three months ended March 31, (in thousands) 2020 2019 Net sales Machine Clothing $ 136,602 $ 144,334 Albany Engineered Composites 99,162 107,039 Consolidated total $ 235,764 $ 251,373 Operating income/(loss) Machine Clothing $ 47,175 $ 44,243 Albany Engineered Composites 7,623 9,522 Corporate expenses ( 15,204 ) ( 13,672 ) Operating income $ 39,594 $ 40,093 Reconciling items: Interest income ( 447 ) ( 599 ) Interest expense 4,424 5,016 Other expense/(income), net 15,569 ( 1,208 ) Income before income taxes $ 20,048 $ 36,884 The table below presents restructuring costs by reportable segment (also see Note 5): Three months ended March 31, (in thousands) 2020 2019 Machine Clothing $ 642 $ 401 Albany Engineered Composites - 83 Total $ 642 $ 484 Products and services provided under long-term contracts represent a significant portion of sales in the Albany Engineered Composites segment and we account for these contracts using 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 during the first three months increased AEC operating income by $0.9 million and $0.6 million in 2020 and 2019, respectively. 8 Index 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 disaggregates revenue for each product group by timing of revenue recognition: Three months ended March 31, 2020 (in thousands) Point in Time Revenue Recognition Over Time Revenue Recognition Total Machine Clothing $ 135,754 $ 848 $ 136,602 Albany Engineered Composites ASC - 37,894 37,894 Other AEC 6,320 54,948 61,268 Total Albany Engineered Composites 6,320 92,842 99,162 Total revenue $ 142,074 $ 93,690 $ 235,764 Three months ended March 31, 2019 (in thousands) Point in Time Revenue Recognition Over Time Revenue Recognition Total Machine Clothing $ 143,534 $ 800 $ 144,334 Albany Engineered Composites ASC - 55,442 55,442 Other AEC 6,245 45,352 51,597 Total Albany Engineered Composites 6,245 100,794 107,039 Total revenue $ 149,779 $ 101,594 $ 251,373 9 Index 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: Three months ended March 31, (in thousands) 2020 2019 Americas PMC $ 73,677 $ 75,341 Eurasia PMC 45,131 51,438 Engineered Fabrics 17,794 17,555 Total Machine Clothing Net sales $ 136,602 $ 144,334 In accordance with ASC 606, 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 and $90 million as of March 31, 2020 and 2019, respectively, and related primarily to firm contracts in the AEC segment. Of the remaining performance obligations as of March 31, 2020, we expect to recognize as revenue approximately $48 million during 2020 and the remainder during 2021. |
Business Acquisition
Business Acquisition | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Business Acquisition | 3. 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 performance period. The Company funded the acquisition using a combination of cash on hand and funds drawn on its revolving credit facility. In March 2020, the Company purchased, in cash, the primary operating facility in Germany for $5.8 million, which resulted in the recording of land and building assets, and the removal of the Right of use assets and associated lease liabilities included in the acquisition-date balance sheet 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. 10 Index 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 10,302 Goodwill 17,114 Total assets acquired $ 43,825 Liabilities assumed Accounts payable $ 65 Accrued liabilities 2,249 Lease liabilities 502 Deferred income taxes 3,425 Other noncurrent liabilities 5,184 Total liabilities assumed $ 11,425 Net assets acquired $ 32,400 Purchase of business, net of cash acquired $ 30,793 The Company is continuing to perform procedures to verify the value of assets and liabilities acquired, particularly Contract assets and, accordingly, adjustments to the values in the above table may be required in future periods. In the course of performing its ongoing opening balance sheet procedures during the first quarter of 2020, management identified adjustments to the provisional value of assets and liabilities acquired reported in the Form 10-K for the year ended December 31, 2019, which resulted in an increase to Amortizable intangible assets of $0.3 million, an increase to Deferred income tax liabilities of $0.1 million, and a reduction to Goodwill of $0.2 million. Acquired Goodwill of $17.1 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. |
Pensions and Other Postretireme
Pensions and Other Postretirement Benefit Plans | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Pensions and Other Postretirement Benefit Plans | 4. Pensions and Other Postretirement Benefit Plans Pension Plans The Company has defined benefit pension plans covering certain U.S. and non-U.S. employees. The U.S. qualified defined benefit pension plan has been closed to new participants since October 1998, and benefits accrued under this plan have been frozen since February 2009. As a result of the freeze, employees covered by the pension plan will receive, at retirement, benefits already accrued through February 2009 but no new benefits accrue after that date. Benefit accruals under the U.S. Supplemental Executive Retirement Plan ("SERP") were similarly frozen. The eligibility, benefit formulas, and contribution requirements for plans outside of the U.S. vary by location. Other Postretirement Benefits The Company also provides certain postretirement benefits to retired employees in the U.S. and Canada. The Company accrues the cost of providing postretirement benefits during the active service period of the employees. The Company currently funds the plans as claims are paid. 11 Index The composition of the net periodic benefit cost for the three months ended March 31, 2020 and 2019, was as follows: Pension plans Other postretirement benefits (in thousands) 2020 2019 2020 2019 Components of net periodic benefit cost: Service cost $ 580 $ 632 $ 50 $ 47 Interest cost 1,550 1,794 428 528 Expected return on assets ( 1,723 ) ( 2,057 ) - - Amortization of prior service cost/(credit) 8 17 ( 1,122 ) ( 1,122 ) Amortization of net actuarial loss 596 564 648 557 Net periodic benefit cost $ 1,011 $ 950 $ 4 $ 10 The amount of net periodic pension cost is determined at the beginning of each year and generally only varies from quarter to quarter when a significant event occurs, such as a curtailment or a settlement. There were no such events in the first three months of 2020 or 2019. Service cost for defined benefit pension and postretirement plans are reported in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. Other components of net periodic benefit cost are presented in the income statement separately from the service cost component and outside a subtotal of income from operations, in the line item Other (income)/expense, net in the Consolidated Statements of Income. |
Restructuring
Restructuring | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | 5. Restructuring Machine Clothing restructuring charges include expenses for the first three months of 2020 and 2019 principally related to discontinued operations at its MC production facility in Sélestat, France announced in 2017. Since 2017, we have recorded $13.1 million of restructuring charges related to this action. The following table summarizes charges reported in the Consolidated Statements of Income under “Restructuring expenses, net”: Three months ended March 31, (in thousands) 2020 2019 Machine Clothing $ 642 $ 401 Albany Engineered Composites - 83 Corporate expenses - - Total $ 642 $ 484 12 Index Three Months ended March 31, 2020 Total restructuring costs incurred Termination and other costs (in thousands) Machine Clothing $ 642 $ 642 Albany Engineered Composites - - Corporate expenses - - Total $ 642 $ 642 Three Months ended March 31, 2019 Total restructuring costs incurred Termination and other costs (in thousands) Machine Clothing $ 401 $ 401 Albany Engineered Composites 83 83 Corporate expenses - - Total $ 484 $ 484 We expect that approximately $1.5 million of Accrued liabilities for restructuring at March 31, 2020 will be paid within one year and approximately $0.4 million will be paid the following year. The table below presents the year-to-date changes in restructuring liabilities for 2020 and 2019, all of which are related to termination costs: December 31, Restructuring Currency March 31, (in thousands) 2019 charges accrued Payments translation /other 2020 Total termination and other costs $ 2,042 $ 642 $( 731 ) $( 92 ) $ 1,861 December 31, Restructuring Currency March 31, (in thousands) 2018 charges accrued Payments translation /other 2019 Total termination and other costs $ 5,570 $ 484 $( 876 ) $ 23 $ 5,201 |
Other (Income)_Expense, net
Other (Income)/Expense, net | 3 Months Ended |
Mar. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Other (Income)/Expense, net | 6. Other (Income)/Expense, net The components of Other (Income)/Expense, net are: Three months ended March 31, 2020 (in thousands) 2020 2019 Currency transaction (gains)/losses $ 14,834 $( 2,038 ) Bank fees and amortization of debt issuance costs 75 109 Components of net periodic pension and postretirement cost other than service 385 281 Other 275 440 Total $ 15,569 $( 1,208 ) Other (income)/expense, net for the first three months of 2020 includes losses related to the revaluation of nonfunctional-currency balances of $14.8 million, which principally resulted from an intercompany demand loan payable by a Mexican subsidiary combined with the effects of a much weaker peso in 2020. As a result of changes in business conditions that occurred in the first quarter of 2020, loan repayments are not expected in the foreseeable future and, beginning April 1, 2020, revaluation effects will be recorded in Other comprehensive income. Other (income)/expense, net, for the first three months of 2019 included gains related to the revaluation of nonfunctional-currency balances of $2.0 million. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes The following table presents components of income tax expense for the three months ended March 31, 2020 and 2019: Three months ended March 31, (in thousands, except percentages) 2020 2019 Income tax based on income from continuing operations, at estimated tax rates of 36.5% and 29.4%, respectively $ 7,309 $ 10,847 Income tax before discrete items 7,309 10,847 Discrete tax expense: Exercise of U.S. stock options - ( 50 ) Adjustments to prior period tax liabilities ( 112 ) 194 Provision for/resolution of tax audits and contingencies, net ( 244 ) ( 2,232 ) Out-of-period adjustments to deferred tax assets 1,830 ( 1,346 ) Tax effect of non-deductible foreign exchange loss on intercompany loan 3,668 - Other 3 63 Total income tax expense $ 12,454 $ 7,476 The first-quarter estimated annual effective tax rate on continuing operations was 36.5 percent in 2020, compared to 29.4 percent for the same period in 2019. Income tax expense for the quarter was computed in accordance with ASC 740-270, Income Taxes – Interim Reporting. Under this method, loss jurisdictions, which cannot recognize a tax benefit with regard to their generated losses, are excluded from the annual effective tax rate (AETR) calculation and their taxes will be recorded discretely in each quarter. The Company’s tax rate is affected by recurring items such as the income tax rate in the U.S. and in non-U.S. jurisdictions and the mix of income earned in those jurisdictions, including changes in losses and income from excluded loss jurisdictions, and the impact of discrete items in the respective quarter. The unusually higher estimated Q1 2020 income tax rate is primarily driven by an increase in losses in a foreign jurisdiction that is excluded in calculating the quarterly income tax provision. 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 $144 million of current year and prior year earnings of the Company’s foreign operations. If these earnings were distributed, the Company would be subject to foreign withholding taxes of $2.2 million and state income taxes of $2.4 million, which have already been recorded. 14 Index 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 2020. The Company is currently under audit in U.S and non-U.S. tax jurisdictions, including but not limited to New Hampshire, Canada and Italy. In the first quarter of 2020, the Company recorded a $1.8 million out-of-period immaterial charge related to developments in ongoing tax audits, which resulted in a corresponding decrease in deferred tax assets. The Company’s subsidiary in Mexico has an intercompany loan payable in U.S. dollars. As a result of the weaker Mexican peso, the Company recorded a revaluation loss of $12.7 million in the first quarter of 2020. That foreign currency loss is not deductible under Mexican tax law, which led to a $3.7 million discrete tax charge in the first quarter of 2020. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 8. Earnings Per Share The amounts used in computing earnings per share and the weighted average number of shares of potentially dilutive securities are as follows: Three months ended March 31, (in thousands, except market price and earnings per share) 2020 2019 Net income attributable to the Company $ 9,109 $ 29,190 Weighted average number of shares: Weighted average number of shares used in calculating basic net income per share 32,312 32,272 Effect of dilutive stock-based compensation plans: Stock options 8 13 Weighted average number of shares used in calculating diluted net income per share 32,320 32,285 Average market price of common stock used for calculation of dilutive shares $ 65.47 $ 71.24 Net income attributable to the Company per share: Basic $ 0.28 $ 0.90 Diluted $ 0.28 $ 0.90 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (AOCI) | 3 Months Ended |
Mar. 31, 2020 | |
Accumulated items of other comprehensive income: | |
Accumulated Other Comprehensive Income (AOCI) | 9. Accumulated Other Comprehensive Income (AOCI) The table below presents changes in the components of AOCI for the period December 31, 2019 to March 31, 2020: (in thousands) Translation adjustments Pension and postretirement liability adjustments Derivative valuation adjustment Total Other Comprehensive Income December 31, 2019 $( 122,852 ) $( 49,994 ) $ ( 3,135 ) $( 175,981 ) Other comprehensive income/(loss) before reclassifications, net of tax ( 25,747 ) 792 ( 8,011 ) ( 32,966 ) Interest expense related to swaps reclassified to the Consolidated Statements of Income, net of tax - - 303 303 Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income, net of tax - 98 - 98 Net current period other comprehensive income ( 25,747 ) 890 ( 7,708 ) ( 32,565 ) March 31, 2020 $( 148,599 ) $( 49,104 ) $( 10,843 ) $( 208,546 ) The table below presents changes in the components of AOCI for the period December 31, 2018 to March 31, 2019: (in thousands) Translation adjustments Pension and postretirement liability adjustments Derivative valuation adjustment Total Other Comprehensive Income December 31, 2018 $( 115,976 ) $( 47,109 ) $ 4,697 $( 158,388 ) Other comprehensive income/(loss) before reclassifications, net of tax ( 654 ) ( 152 ) ( 2,514 ) ( 3,320 ) Interest expense related to swaps reclassified to the Consolidated Statements of Income, net of tax - - ( 337 ) ( 337 ) Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income, net of tax - 11 - 11 Adjustment related to prior period change in opening valuation allowance - ( 1,346 ) - ( 1,346 ) Net current period other comprehensive income ( 654 ) ( 1,487 ) ( 2,851 ) ( 4,992 ) March 31, 2019 $( 116,630 ) $( 48,596 ) $ 1,846 $( 163,380 ) The 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. 16 Index The table below presents the expense/(income) amounts reclassified, and the line items of the Statement of Income that were affected for the three months ended March 31, 2020 and 2019: Three months ended March 31, (in thousands) 2020 2019 Pretax Derivative valuation reclassified from Accumulated Other Comprehensive Income: Expense/(income) related to interest rate swaps included in Income before taxes (a) $ 407 $ ( 452 ) Income tax effect ( 104 ) 115 Effect on net income due to items reclassified from Accumulated Other Comprehensive Income $ 303 $ ( 337 ) Pretax pension and postretirement liabilities reclassified from Accumulated Other Comprehensive Income: Amortization of prior service credit ( 1,114 ) ( 1,105 ) Amortization of net actuarial loss 1,244 1,121 Total pretax amount reclassified (b) 130 16 Income tax effect ( 32 ) ( 5 ) Effect on net income due to items reclassified from Accumulated Other Comprehensive Income $ 98 $ 11 (a) Included in Interest expense, net are payments related to the interest rate swap agreements and amortization of swap buyouts (see Notes 15 and 16). (b) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 4). |
Noncontrolling Interest
Noncontrolling Interest | 3 Months Ended |
Mar. 31, 2020 | |
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. 17 Index The table below presents a reconciliation of income attributable to the noncontrolling interest and noncontrolling equity in the Company’s subsidiary Albany Safran Composites, LLC: Three months ended March 31, (in thousands, except percentages) 2020 2019 Net (loss)/income of Albany Safran Composites (ASC) $( 14,849 ) $ 2,510 Less: Return attributable to the Company's preferred holding 302 328 Net (loss)/income of ASC available for common ownership $( 15,151 ) $ 2,182 Ownership percentage of noncontrolling shareholder 10 % 10 % Net (loss)/income attributable to noncontrolling interest $ ( 1,515 ) $ 218 Noncontrolling interest, beginning of year $ 4,006 $ 3,031 Net (loss)/income attributable to noncontrolling interest ( 1,515 ) 218 Changes in other comprehensive income attributable to noncontrolling interest 109 ( 8 ) Noncontrolling interest, end of interim period $ 2,600 $ 3,241 |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Accounts Receivable | 11. Accounts Receivable Accounts receivable includes trade receivables. In connection with certain sales in Asia, the Company accepts a bank promissory note as customer payment. The notes may be presented for payment at maturity, which is less than one year. As of March 31, 2020 and December 31, 2019, Accounts receivable consisted of the following: (in thousands) March 31, 2020 December 31, 2019 Trade and other accounts receivable $ 197,951 $ 201,427 Bank promissory notes 17,063 18,563 Allowance for expected credit losses ( 3,933 ) ( 1,719 ) Accounts receivable, net $ 211,081 $ 218,271 18 Index The Company has Noncurrent receivables in the AEC segment that represent revenue earned, which has extended payment terms. The Noncurrent receivables will be invoiced to the customer, with 2% interest, over a 10-year period starting in 2020. As of March 31, 2020 and December 31, 2019, Noncurrent receivables consisted of the following: (in thousands) March 31, 2020 December 31, 2019 Noncurrent receivables $ 39,325 $ 41,234 Allowance for expected credit losses ( 396 ) - Noncurrent receivables, net $ 38,929 $ 41,234 As described in Note 1, effective January 1, 2020, the Company adopted the provisions of ASC 326, Current Expected Credit Losses (CECL). While an expected credit loss allowance is recorded at the same time the financial asset is recorded, the Company monitors financial assets for credit impairment events to assess whether there has been a significant increase in credit risk since initial recognition, and considers both quantitative and qualitative information. The risk of loss due to credit default increases when one or more events occurs that can have a detrimental impact on estimated future cash flows of that financial asset. Evidence that a financial asset is subject to greater credit risk include observable data about significant financial difficulty of the customer, a breach of contract, such as a default or past due event, or it becoming probable that the customer will enter bankruptcy or other financial reorganization, among other factors. It may not be possible to identify a single discrete event, but rather, the combined effect of several events may cause an increase in risk of loss. The probability of default is driven by the relative financial health of our customer base and that of the industries in which we do business, as well as the broader macro-economic environment. A changing economic environment or forecasted economic scenario can lead to a different probability of default and can suggest that credit risk has changed. Such is the case with the global COVID-19 pandemic, which has increased uncertainty and poses a significant challenge to the macro-economic environment. Management believes this has increased the probability of credit default, causing the Company to increase the allowance for expected credit losses during the first quarter of 2020. At each reporting period, the Company will recognize the amount of change in current expected credit losses as an allowance gain or loss in Selling, general, and administrative expenses in the Consolidated Statements of Income. Financial assets are written off when the Company has no reasonable expectation of recovering the financial asset, either in its entirety, or a portion thereof. This is the case when the Company determines that the customer does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the write-off. The following table presents the year-to-date (increases)/ decreases in the allowance for credit losses for Accounts receivable: CECL December 31, transition Currency March 31, (in thousands) 2019 adjustment Charges translation Other 2020 Specific customer reserves $( 1,719 ) $ ( 44 ) $ ( 89 ) $ 116 $ 42 $( 1,694 ) Incremental expected credit losses - ( 1,139 ) ( 1,133 ) 38 ( 5 ) ( 2,239 ) Accounts receivable expected credit losses $( 1,719 ) $( 1,183 ) $( 1,222 ) $ 154 $ 37 $( 3,933 ) The following table presents the year-to-date (increases)/decreases in the allowance for credit losses for Noncurrent receivables: CECL December 31, transition Currency March 31, (in thousands) 2019 adjustment Charges translation Other 2020 Noncurrent receivables expected credit losses $ - $( 206 ) $( 201 ) $ 11 $ - $( 396 ) |
Contract Assets and Liabilities
Contract Assets and Liabilities | 3 Months Ended |
Mar. 31, 2020 | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract] | |
Contract Assets and Liabilities | 12. Contract Assets and Liabilities Contract assets includes unbilled amounts typically resulting from sales under contracts when the cost-to-cost method of revenue recognition is utilized, and revenue recognized exceeds the amount billed to the customer. Contract assets are transferred to Accounts receivable, net when the entitlement to pay becomes unconditional. Contract liabilities include advance payments and billings in excess of revenue recognized. Contract liabilities are included in Accrued liabilities in the Consolidated Balance Sheets. Contract assets and Contract liabilities are reported on the Consolidated Balance Sheets in a net position on a contract-by-contract basis at the end of each reporting period. As of March 31, 2020 and December 31, 2019, Contract assets and Contract liabilities consisted of the following: (in thousands) March 31, 2020 December 31, 2019 Contract assets $ 85,257 $ 79,070 Allowance for expected credit losses ( 679 ) - Contract assets, net $ 84,578 $ 79,070 Contract liabilities $ 9,005 $ 5,656 Contract assets increased $5.5 million during the three-month period ended March 31, 2020. The increase was primarily due to an increase in unbilled revenue related to the satisfaction of performance obligations, in excess of the amounts billed to customers for contracts that were in a contract asset position. There were no impairment losses related to our Contract assets during the three month periods ended March 31, 2020. As described in Notes 1 and 11, effective January 1, 2020, the Company adopted the provisions of ASC 326, Current Expected Credit Losses (CECL). The following table presents the year-to-date (increases)/ decreases in the allowance for credit losses for Contract assets: CECL December 31, transition Currency March 31, (in thousands) 2019 adjustment Charges translation Other 2020 Contract assets expected credit losses $ - $( 404 ) $( 232 ) $ 12 $( 55 ) $( 679 ) Contract liabilities increased $3.3 million during the three-month period ended March 31, 2020, primarily due to increased billings in excess of revenue recognized from satisfied performance obligations for contracts that were in a contract liability position. Revenue recognized for the three- month periods ended March 31, 2020 and 2019 that was included in the Contract liability balance at the beginning of the year was $1.9 million and $3.7 million, respectively. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | 13. Inventories Costs included in inventories are raw materials, labor, supplies and allocable depreciation and overhead. Raw material inventories are valued on an average cost basis. Other inventory cost elements are valued at cost, using the first-in, first-out method. The Company writes down the inventories for estimated obsolescence, and to lower of cost or net realizable value based upon assumptions about future demand and market conditions. If actual demand or market conditions are less favorable than those projected by the Company, additional inventory write-downs may be required. Once established, the original cost of the inventory less the related write-down represents the new cost basis of such inventories. 20 Index As of March 31, 2020 and December 31, 2019, Inventories consisted of the following: (in thousands) March 31, 2020 December 31, 2019 Raw materials $ 60,907 $ 52,960 Work in process 34,266 31,744 Finished goods 14,253 10,445 Total inventories $ 109,426 $ 95,149 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 14. Goodwill and Other Intangible Assets Goodwill and intangible assets with indefinite useful lives are not amortized, but are tested for impairment at least annually. Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in each business combination. Our reportable segments are consistent with our operating segments. Determining the fair value of a reporting unit requires the use of significant estimates and assumptions, including revenue growth rates, operating margins, discount rates, and future market conditions, among others. Goodwill and other long-lived assets are reviewed for impairment whenever events, such as significant changes in the business climate, plant closures, changes in product offerings, or other circumstances indicate that the carrying amount may not be recoverable. To determine fair value, we utilize two market-based approaches and an income approach. Under the market-based approaches, we utilize information regarding the Company, as well as publicly available industry information, to determine earnings multiples and sales multiples. Under the income approach, we determine fair value based on estimated future cash flows of each reporting unit, discounted by an estimated weighted-average cost of capital, which reflects the overall level of inherent risk of a reporting unit and the rate of return an outside investor would expect to earn. In the second quarter of 2019, management performed their annual qualitative goodwill impairment test. As part of this qualitative evaluation, the Company considered earnings before interest expense, taxes, depreciation and amortization (EBITDA) and market multiples for the Machine Clothing and AEC – Salt Lake City reporting units. Based on the results of this analysis, management concluded that it was more likely than not that the fair value was in excess of the carrying value for all reporting units and that a step one of the goodwill impairment test was not considered necessary. In the first quarter of 2020, global equity market conditions deteriorated in reaction to the COVID-19 pandemic resulting in a corresponding decrease in the Company's stock price and market capitalization. As a result, management performed assessments as to whether the fair value of reporting units was less than carrying value as of March 31, 2020 and concluded that it was more likely than not that the fair value continued to be in excess of the carrying value for all reporting units. Management is scheduled to perform the 2020 annual goodwill impairment test during the second quarter. In the event that the Company’s market value declines further, or additional changes to the outlook for the Company’s reporting units occur, a goodwill impairment charge could be required. 21 Index We are continuing to amortize certain patents, trade names, customer relationships, customer contracts and technology assets that have finite lives. The gross carrying value, accumulated amortization and net values of intangible assets and goodwill as of March 31, 2020 and December 31, 2019, were as follows: As of March 31, 2020 (in thousands) Weighted average amortization life in years Gross carrying amount Accumulated amortization Net carrying amount Amortized intangible assets: AEC Trademarks and trade names 6-15 $ 208 $ ( 139 ) $ 69 AEC Technology 10-15 6,142 ( 537 ) 5,605 AEC Intellectual property 15 1,250 ( 28 ) 1,222 AEC Customer contracts 6 17,471 ( 11,655 ) 5,816 AEC Customer relationships 8-15 51,556 ( 13,010 ) 38,546 AEC Other intangibles 5 322 ( 257 ) 65 Total amortized intangible assets $ 76,949 $( 25,626 ) $ 51,323 Unamortized intangible assets: MC Goodwill $ 66,679 $ - $ 66,679 AEC Goodwill 112,687 - 112,687 Total unamortized intangible assets: $ 179,366 $ - $ 179,366 As of December 31, 2019 (in thousands) Weighted average amortization life in years Gross carrying amount Accumulated amortization Net carrying amount Amortized intangible assets: AEC Trademarks and trade names 6-15 $ 208 $ ( 135 ) $ 73 AEC Technology 10-15 6,191 ( 387 ) 5,804 AEC Intellectual property 15 1,250 ( 7 ) 1,243 AEC Customer contracts 6 17,471 ( 10,927 ) 6,544 AEC Customer relationships 8-15 51,255 ( 12,108 ) 39,147 AEC Other intangibles 5 322 ( 241 ) 81 Total amortized intangible assets $ 76,697 $( 23,805 ) $ 52,892 Unamortized intangible assets: MC Goodwill $ 67,672 $ - $ 67,672 AEC Goodwill 113,262 - 113,262 Total unamortized intangible assets: $ 180,934 $ - $ 180,934 22 Index The changes in intangible assets, net and goodwill from December 31, 2019 to March 31, 2020, were as follows: (in thousands) December 31, 2019 Other Changes Amortization Currency Translation March 31, 2020 Amortized intangible assets: AEC Trademarks and trade names $ 73 $ - $ ( 4 ) $ - $ 69 AEC Technology 5,804 - ( 150 ) ( 49 ) 5,605 AEC Intellectual property 1,243 - ( 21 ) - 1,222 AEC Customer contracts 6,544 - ( 728 ) - 5,816 AEC Customer relationships 39,147 329 ( 871 ) ( 59 ) 38,546 AEC Other intangibles 81 - ( 16 ) - 65 Total amortized intangible assets $ 52,892 $ 329 $( 1,790 ) $ ( 108 ) $ 51,323 Unamortized intangible assets: MC Goodwill $ 67,672 $ - $ - $ ( 993 ) $ 66,679 AEC Goodwill 113,262 ( 227 ) - ( 348 ) 112,687 Total unamortized intangible assets: $ 180,934 $( 227 ) $ - $( 1,341 ) $ 179,366 Estimated amortization expense of intangibles for the years ending December 31, 2020 through 2024, is as follows: Year Annual amortization (in thousands) 2020 $ 7,200 2021 7,100 2022 4,900 2023 4,200 2024 4,200 |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Financial Instruments | 15. Financial Instruments Long-term debt, principally to banks and noteholders, consists of: (in thousands, except interest rates) March 31, 2020 December 31, 2019 Revolving credit agreement with borrowings outstanding at an end of period interest rate of 3.15% in 2020 and 3.43% in 2019 (including the effect of interest rate hedging transactions, as described below), due in 2022 $ 491,000 $ 424,000 Other debt, at an average end of period rate of 5.50% in both 2020 and 2019, due in varying amounts through 2021 22 29 Long-term debt 491,022 424,029 Less: current portion ( 20 ) ( 20 ) Long-term debt, net of current portion $ 491,002 $ 424,009 23 Index On November 7, 2017, we entered into a $685 million unsecured Five-Year Revolving Credit Facility Agreement (the “Credit Agreement”) which amended and restated the prior $550 million Agreement, entered into on April 8, 2016 (the “Prior Agreement”). Under the Credit Agreement, $491 million of borrowings were outstanding as of March 31, 2020. The applicable interest rate for borrowings was LIBOR plus a spread, based on our leverage ratio at the time of borrowing. At the time of the last borrowing on March 30, 2020, the spread was 1.375%. The spread was based on a pricing grid, which ranged from 1.250% to 1.750%, based on our leverage ratio. Based on our maximum leverage ratio and our Consolidated EBITDA, and without modification to any other credit agreements, as of March 31, 2020, we would have been able to borrow an additional $194 million under the Agreement. The Credit Agreement contains customary terms, as well as affirmative covenants, negative covenants and events of default that are comparable to those in the Prior Agreement. The Borrowings are guaranteed by certain of the Company’s subsidiaries. Our ability to borrow additional amounts under the Credit Agreement is conditional upon the absence of any defaults, as well as the absence of any material adverse change (as defined in the Credit Agreement). On November 27, 2017, we terminated our interest rate swap agreements, originally entered into on May 9, 2016, that had effectively fixed the interest rate on $300 million of revolving credit borrowings, in order to enter into a new interest rate swap with a greater notional amount, and the same maturity as the Credit Agreement. We received $6.3 million when the swap agreements were terminated and that payment will be amortized into interest expense through March 2021. On May 6, 2016, we terminated other interest rate swap agreements that had effectively fixed the interest rate on $120 million of revolving credit borrowings, in order to enter into a new interest rate swap with a greater notional amount, and the same maturity as the Credit Agreement. We paid $5.2 million to terminate the swap agreements and that cost will be amortized into interest expense through June 2020. On November 28, 2017, we entered into interest rate swap agreements for the period December 18, 2017 through October 17, 2022. These transactions have the effect of fixing the LIBOR portion of the effective interest rate (before addition of the spread) on $350 million of indebtedness drawn under the Credit Agreement at the rate of 2.11% during the period. Under the terms of these transactions, we pay the fixed rate of 2.11% and the counterparties pay a floating rate based on the one-month LIBOR rate at each monthly calculation date, which on March 16, 2020 was .71%, during the swap period. On March 16, 2020, 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 16. No cash collateral was received or pledged in relation to the swap agreements. Under the Credit Agreement, we are currently required to maintain a leverage ratio (as defined in the agreement) of not greater than 3.50 to 1.00 and minimum interest coverage (as defined) of 3.00 to 1.00. As of March 31, 2020, our leverage ratio was 1.69 to 1.00 and our interest coverage ratio was 13.82 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. 24 Index Indebtedness under the Credit Agreement is ranked equally in right of payment to all unsecured senior debt. We were in compliance with all debt covenants as of March 31, 2020. |
Fair-Value Measurements
Fair-Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair-Value Measurements | 16. Fair-Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Accounting principles establish a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Level 3 inputs are unobservable data points for the asset or liability, and include situations in which there is little, if any, market activity for the asset or liability. We had no Level 3 financial assets or liabilities at March 31, 2020, or at December 31, 2019. The following table presents the fair-value hierarchy for our Level 1 and Level 2 financial and non-financial assets and liabilities, which are measured at fair value on a recurring basis: March 31, 2020 December 31, 2019 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 $ 13,039 $ - $ 16,375 $ - Other Assets: Common stock of unaffiliated foreign public company (a) 765 - 839 - Interest rate swaps Liabilities: Other noncurrent liabilities: Interest rate swaps - (15,761 ) b - (5,518 ) c (a) Original cost basis $0.5 million. (b) Net of $3.5 million receivable floating leg and $19.2 million liability fixed leg. (c) Net of $15.2 million receivable floating leg and $20.7 million liability fixed leg. Cash equivalents include short-term securities that are considered to be highly liquid and easily tradable. These securities are valued using inputs observable in active markets for identical securities. The common stock of the unaffiliated foreign public company is traded in an active market exchange. The shares are measured at fair value using closing stock prices and are recorded in the Consolidated Balance Sheets as Other assets. Changes in the fair value of the investment are reported in the Consolidated Statements of Income. We operate our business in many regions of the world, and currency rate movements can have a significant effect on operating results. Foreign currency instruments are entered into periodically, and consist of foreign currency option contracts and forward contracts that are valued using quoted prices in active markets obtained from independent pricing sources. These instruments are measured using market foreign exchange prices and are recorded in the Consolidated Balance Sheets as Other current assets and Accounts payable, as applicable. Changes in fair value of these instruments are recorded as gains or losses within Other (income)/expense, net. When exercised, the foreign currency instruments are net settled with the same financial institution that bought or sold them. For all positions, whether options or forward contracts, there is risk from the possible inability of the financial institution to meet the terms of the contracts and the risk of unfavorable changes in interest and currency rates, which may reduce the value of the instruments. We seek to mitigate risk by evaluating the creditworthiness of counterparties and by monitoring the currency exchange and interest rate markets while reviewing the hedging risks and contracts to ensure compliance with our internal guidelines and policies. Changes in exchange rates can result in revaluation gains and losses that are recorded in Selling, general and administrative expenses or Other (income)/expense, net. Revaluation gains and losses occur when our business units have cash, intercompany (recorded in Other (income)/expense, net) or third-party trade (recorded in selling, general and administrative expenses) receivable or payable balances in a currency other than their local reporting (or functional) currency. Operating results can also be affected by the translation of sales and costs, for each non-U.S. subsidiary, from the local functional currency to the U.S. dollar. The translation effect on the Consolidated Statements of Income is dependent on our net income or expense position in each non-U.S. currency in which we do business. A net income position exists when sales realized in a particular currency exceed expenses paid in that currency; a net expense position exists if the opposite is true. 25 Index The interest rate swaps are accounted for as hedges of future cash flows. The fair value of our interest rate swaps are derived from a discounted cash flow analysis based on the terms of the contract and the interest rate curve, and is included in Other assets and/or Other noncurrent liabilities in the Consolidated Balance Sheets. Unrealized gains and losses on the swaps flow through the caption Derivative valuation adjustment in the Shareholders’ equity section of the Consolidated Balance Sheets. As of March 31, 2020, 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 $0.5 million for the three month period ended March 31, 2020, and ($0.3) million for the three month period ended March 31, 2019. Additionally, non-cash interest income related to the amortization of swap buyouts totaled $0.1 million for the three month period ended March 31, 2020 and $0.1 million for the three month period ended March 31, 2019. Gains/(losses) related to changes in fair value of derivative instruments that were recognized in Other (income)/expense, net in the Consolidated Statements of Income were as follows: Three months ended March 31, (in thousands) 2020 2019 Derivatives not designated as hedging instruments Foreign currency options gains/(losses) $( 64 ) - |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | 17. Contingencies Asbestos Litigation Albany International Corp. is a defendant in suits brought in various courts in the United States by plaintiffs who allege that they have suffered personal injury as a result of exposure to asbestos-containing paper machine clothing synthetic dryer fabrics marketed during the period from 1967 to 1976 and used in certain paper mills. We were defending 3,691 claims as of March 31, 2020. 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 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 2020 3,708 36 19 3,691 $ 47 We anticipate that additional claims will be filed against the Company and related companies in the future, but are unable to predict the number and timing of such future claims. Due to the fact that information sufficient to meaningfully estimate a range of possible loss of a particular claim is typically not available until late in the discovery process, we do not believe a meaningful estimate can be made regarding the range of possible loss with respect to pending or future claims and therefore are unable to estimate a range of reasonably possible loss in excess of amounts already accrued for pending or future claims. While we believe we have meritorious defenses to these claims, we have settled certain claims for amounts we consider reasonable given the facts and circumstances of each case. Our insurance carrier has defended each case and funded settlements under a standard reservation of rights. As of March 31, 2020, we had resolved, by means of settlement or dismissal, 37,833 claims. The total cost of resolving all claims was $10.4 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 March 31, 2020, 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. 26 Index In some of these asbestos cases, the Company is named both as a direct defendant and as the “successor in interest” to Mount Vernon Mills (“Mount Vernon”). We acquired certain assets from Mount Vernon in 1993. Certain plaintiffs allege injury caused by asbestos-containing products alleged to have been sold by Mount Vernon many years prior to this acquisition. Mount Vernon is contractually obligated to indemnify the Company against any liability arising out of such products. We deny any liability for products sold by Mount Vernon prior to the acquisition of the Mount Vernon assets. Pursuant to its contractual indemnification obligations, Mount Vernon has assumed the defense of these claims. On this basis, we have successfully moved for dismissal in a number of actions. We currently do not anticipate, based on currently available information, that the ultimate resolution of the aforementioned proceedings will have a material adverse effect on the financial position, results of operations, or cash flows of the Company. Although we cannot predict the number and timing of future claims, based on the foregoing factors, the trends in claims filed against us, and available insurance, we also do not currently anticipate that potential future claims will have a material adverse effect on our financial position, results of operations, or cash flows. |
Changes in Shareholders' Equity
Changes in Shareholders' Equity | 3 Months Ended |
Mar. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Changes in Shareholders' Equity | 18. Changes in Shareholders’ Equity The following table summarizes changes in Shareholders’ Equity for the period December 31, 2019 to March 31, 2020: Class A Common Stock Class B Common Stock Additional paid-in capital Retained earnings Accumulated items of other comprehensive income Class A Treasury Stock Non controlling Interest Total Equity (in thousands) Shares Amount Shares Amount Shares Amount December 31, 2019 39,099 $ 39 1,618 $ 2 $ 432,518 $ 698,496 $( 175,981 ) 8,409 $( 256,391 ) $ 4,006 $ 702,689 Adoption of accounting standards (a) - - - - - ( 1,443 ) - - - - ( 1,443 ) Net income - - - - - 9,109 - - - ( 1,515 ) 7,594 Compensation and benefits paid or payable in shares 13 - - - ( 682 ) - - - - - ( 682 ) Options exercised - - - - - - - - - - - Shares issued to Directors - - - - - - - - - - - Dividends declared Class A Common Stock, $0.19 per share - - - - - ( 5,834 ) - - - - ( 5,834 ) Class B Common Stock, $0.19 per share - - - - - ( 307 ) - - - - ( 307 ) Cumulative translation adjustments - - - - - - ( 25,747 ) - - 109 ( 25,638 ) Pension and postretirement liability adjustments - - - - - - ( 890 ) - - - 890 Derivative valuation adjustment - - - - - - ( 7,708 ) - - - ( 7,708 ) March 31, 2020 39,112 $ 39 1,618 $ 2 $ 431,836 $ 700,021 $( 208,546 ) 8,409 $( 256,391 ) $ 2,600 $ 669,561 27 Index The following table summarizes changes in Shareholders’ Equity for the period December 31, 2018 to March 31, 2019: Class A Common Stock Class B Common Stock Additional paid-in capital Retained earnings Accumulated items of other comprehensive income Class A Treasury Stock Non controlling Interest Total Equity (in thousands) Shares Amount Shares Amount Shares Amount December 31, 2018 37,450 $ 37 3,234 $ 3 $ 430,555 $ 589,645 $( 158,388 ) 8,419 $( 256,603 ) $ 3,031 $ 608,280 Adoption of accounting standards (b) - - - - - 35 - - - - 35 Net income - - - - - 29,190 - - - 218 29,408 Compensation and benefits paid or payable in shares 25 - - - ( 547 ) - - - - - ( 547 ) Options exercised 3 - 44 - - - - - 44 Shares issued to Directors - - - - - - - - - - - Dividends declared Class A Common Stock, $0.18 per share - - - - - ( 5,231 ) - - - - ( 5,231 ) Class B Common Stock, $0.18 per share - - - - - ( 582 ) - - - - ( 582 ) Cumulative translation adjustments - - - - - - ( 654 ) - - ( 8 ) ( 662 ) Pension and postretirement liability adjustments - - - - - - ( 1,487 ) - - - ( 1,487 ) Derivative valuation adjustment - - - - - - ( 2,851 ) - - - ( 2,851 ) March 31, 2019 37,478 $ 37 3,234 $ 3 $ 430,052 $ 613,057 $( 163,380 ) 8,419 $( 256,603 ) $ 3,241 $ 626,407 (a) As described in Note 1, the Company adopted the provisions of ASC 326, Current Expected Credit Losses (CECL) effective January 1, 2020, which resulted in a decrease to Retained earnings of $1.4 million. (b) The Company adopted ASC 842, Leases |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | 19. Recent Accounting Pronouncements 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 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. In March 2020, an accounting update was issued which provides optional guidance for a limited time to ease the potential accounting burden associated with transitioning away from reference rates such as LIBOR. The expedients and exceptions provided by this update will not be available after December 31, 2022, other than for certain hedging relationships entered into prior. We are currently assessing the potential impact on our financial statements. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary for a fair presentation of results for such periods. Albany International Corp. (Albany, the Registrant, the Company, we, us, or our) consolidates the financial results of its subsidiaries for all periods presented. The results for any interim period are not necessarily indicative of results for the full year. The preparation of financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in Albany International Corp.’s Consolidated Financial Statements and accompanying Notes. Actual results could differ materially from those estimates. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with Albany International Corp.’s Annual Report on Form 10-K for the year ended December 31, 2019. Effective January 1, 2020, we adopted the provisions of ASC 326, Current Expected Credit Losses (CECL) |
Reportable Segments (Tables)
Reportable Segments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Financial Data by Reporting Segment | The following tables show data by reportable segment, reconciled to consolidated totals included in the financial statements: Three months ended March 31, (in thousands) 2020 2019 Net sales Machine Clothing $ 136,602 $ 144,334 Albany Engineered Composites 99,162 107,039 Consolidated total $ 235,764 $ 251,373 Operating income/(loss) Machine Clothing $ 47,175 $ 44,243 Albany Engineered Composites 7,623 9,522 Corporate expenses ( 15,204 ) ( 13,672 ) Operating income $ 39,594 $ 40,093 Reconciling items: Interest income ( 447 ) ( 599 ) Interest expense 4,424 5,016 Other expense/(income), net 15,569 ( 1,208 ) Income before income taxes $ 20,048 $ 36,884 |
Schedule of Restructuring Costs by Reporting Segment | The table below presents restructuring costs by reportable segment (also see Note 5): Three months ended March 31, (in thousands) 2020 2019 Machine Clothing $ 642 $ 401 Albany Engineered Composites - 83 Total $ 642 $ 484 |
Schedule of Disaggregate Revenue for Each Business Segment | The following table disaggregates revenue for each product group by timing of revenue recognition: Three months ended March 31, 2020 (in thousands) Point in Time Revenue Recognition Over Time Revenue Recognition Total Machine Clothing $ 135,754 $ 848 $ 136,602 Albany Engineered Composites ASC - 37,894 37,894 Other AEC 6,320 54,948 61,268 Total Albany Engineered Composites 6,320 92,842 99,162 Total revenue $ 142,074 $ 93,690 $ 235,764 Three months ended March 31, 2019 (in thousands) Point in Time Revenue Recognition Over Time Revenue Recognition Total Machine Clothing $ 143,534 $ 800 $ 144,334 Albany Engineered Composites ASC - 55,442 55,442 Other AEC 6,245 45,352 51,597 Total Albany Engineered Composites 6,245 100,794 107,039 Total revenue $ 149,779 $ 101,594 $ 251,373 |
Schedule of Disaggregate MC Segment Revenue by Significant Product or Service | 9 Index 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: Three months ended March 31, (in thousands) 2020 2019 Americas PMC $ 73,677 $ 75,341 Eurasia PMC 45,131 51,438 Engineered Fabrics 17,794 17,555 Total Machine Clothing Net sales $ 136,602 $ 144,334 |
Business Acquisition (Tables)
Business Acquisition (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Allocation of Purchase Price | 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 10,302 Goodwill 17,114 Total assets acquired $ 43,825 Liabilities assumed Accounts payable $ 65 Accrued liabilities 2,249 Lease liabilities 502 Deferred income taxes 3,425 Other noncurrent liabilities 5,184 Total liabilities assumed $ 11,425 Net assets acquired $ 32,400 Purchase of business, net of cash acquired $ 30,793 |
Pensions and Other Postretire_2
Pensions and Other Postretirement Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Benefit Plan Cost | The composition of the net periodic benefit cost for the three months ended March 31, 2020 and 2019, was as follows: Pension plans Other postretirement benefits (in thousands) 2020 2019 2020 2019 Components of net periodic benefit cost: Service cost $ 580 $ 632 $ 50 $ 47 Interest cost 1,550 1,794 428 528 Expected return on assets ( 1,723 ) ( 2,057 ) - - Amortization of prior service cost/(credit) 8 17 ( 1,122 ) ( 1,122 ) Amortization of net actuarial loss 596 564 648 557 Net periodic benefit cost $ 1,011 $ 950 $ 4 $ 10 |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Charges | The following table summarizes charges reported in the Consolidated Statements of Income under “Restructuring expenses, net”: Three months ended March 31, (in thousands) 2020 2019 Machine Clothing $ 642 $ 401 Albany Engineered Composites - 83 Corporate expenses - - Total $ 642 $ 484 12 Index Three Months ended March 31, 2020 Total restructuring costs incurred Termination and other costs (in thousands) Machine Clothing $ 642 $ 642 Albany Engineered Composites - - Corporate expenses - - Total $ 642 $ 642 Three Months ended March 31, 2019 Total restructuring costs incurred Termination and other costs (in thousands) Machine Clothing $ 401 $ 401 Albany Engineered Composites 83 83 Corporate expenses - - Total $ 484 $ 484 |
Schedule of Restructuring Liability | We expect that approximately $1.5 million of Accrued liabilities for restructuring at March 31, 2020 will be paid within one year and approximately $0.4 million will be paid the following year. The table below presents the year-to-date changes in restructuring liabilities for 2020 and 2019, all of which are related to termination costs: December 31, Restructuring Currency March 31, (in thousands) 2019 charges accrued Payments translation /other 2020 Total termination and other costs $ 2,042 $ 642 $( 731 ) $( 92 ) $ 1,861 December 31, Restructuring Currency March 31, (in thousands) 2018 charges accrued Payments translation /other 2019 Total termination and other costs $ 5,570 $ 484 $( 876 ) $ 23 $ 5,201 |
Other (Income)_Expense, net (Ta
Other (Income)/Expense, net (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Schedule Other Expense/(Income), net | The components of Other (Income)/Expense, net are: Three months ended March 31, 2020 (in thousands) 2020 2019 Currency transaction (gains)/losses $ 14,834 $( 2,038 ) Bank fees and amortization of debt issuance costs 75 109 Components of net periodic pension and postretirement cost other than service 385 281 Other 275 440 Total $ 15,569 $( 1,208 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense | The following table presents components of income tax expense for the three months ended March 31, 2020 and 2019: Three months ended March 31, (in thousands, except percentages) 2020 2019 Income tax based on income from continuing operations, at estimated tax rates of 36.5% and 29.4%, respectively $ 7,309 $ 10,847 Income tax before discrete items 7,309 10,847 Discrete tax expense: Exercise of U.S. stock options - ( 50 ) Adjustments to prior period tax liabilities ( 112 ) 194 Provision for/resolution of tax audits and contingencies, net ( 244 ) ( 2,232 ) Out-of-period adjustments to deferred tax assets 1,830 ( 1,346 ) Tax effect of non-deductible foreign exchange loss on intercompany loan 3,668 - Other 3 63 Total income tax expense $ 12,454 $ 7,476 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule Computing Earnings Per Share | The amounts used in computing earnings per share and the weighted average number of shares of potentially dilutive securities are as follows: Three months ended March 31, (in thousands, except market price and earnings per share) 2020 2019 Net income attributable to the Company $ 9,109 $ 29,190 Weighted average number of shares: Weighted average number of shares used in calculating basic net income per share 32,312 32,272 Effect of dilutive stock-based compensation plans: Stock options 8 13 Weighted average number of shares used in calculating diluted net income per share 32,320 32,285 Average market price of common stock used for calculation of dilutive shares $ 65.47 $ 71.24 Net income attributable to the Company per share: Basic $ 0.28 $ 0.90 Diluted $ 0.28 $ 0.90 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (AOCI) (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accumulated items of other comprehensive income: | |
Schedule of Accumulated Other Comprehensive Income | The table below presents changes in the components of AOCI for the period December 31, 2019 to March 31, 2020: (in thousands) Translation adjustments Pension and postretirement liability adjustments Derivative valuation adjustment Total Other Comprehensive Income December 31, 2019 $( 122,852 ) $( 49,994 ) $ ( 3,135 ) $( 175,981 ) Other comprehensive income/(loss) before reclassifications, net of tax ( 25,747 ) 792 ( 8,011 ) ( 32,966 ) Interest expense related to swaps reclassified to the Consolidated Statements of Income, net of tax - - 303 303 Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income, net of tax - 98 - 98 Net current period other comprehensive income ( 25,747 ) 890 ( 7,708 ) ( 32,565 ) March 31, 2020 $( 148,599 ) $( 49,104 ) $( 10,843 ) $( 208,546 ) The table below presents changes in the components of AOCI for the period December 31, 2018 to March 31, 2019: (in thousands) Translation adjustments Pension and postretirement liability adjustments Derivative valuation adjustment Total Other Comprehensive Income December 31, 2018 $( 115,976 ) $( 47,109 ) $ 4,697 $( 158,388 ) Other comprehensive income/(loss) before reclassifications, net of tax ( 654 ) ( 152 ) ( 2,514 ) ( 3,320 ) Interest expense related to swaps reclassified to the Consolidated Statements of Income, net of tax - - ( 337 ) ( 337 ) Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income, net of tax - 11 - 11 Adjustment related to prior period change in opening valuation allowance - ( 1,346 ) - ( 1,346 ) Net current period other comprehensive income ( 654 ) ( 1,487 ) ( 2,851 ) ( 4,992 ) March 31, 2019 $( 116,630 ) $( 48,596 ) $ 1,846 $( 163,380 ) |
Schedule of Accumulated Other Comprehensive Income Components Reclassified to Statement of Income | The table below presents the expense/(income) amounts reclassified, and the line items of the Statement of Income that were affected for the three months ended March 31, 2020 and 2019: Three months ended March 31, (in thousands) 2020 2019 Pretax Derivative valuation reclassified from Accumulated Other Comprehensive Income: Expense/(income) related to interest rate swaps included in Income before taxes (a) $ 407 $ ( 452 ) Income tax effect ( 104 ) 115 Effect on net income due to items reclassified from Accumulated Other Comprehensive Income $ 303 $ ( 337 ) Pretax pension and postretirement liabilities reclassified from Accumulated Other Comprehensive Income: Amortization of prior service credit ( 1,114 ) ( 1,105 ) Amortization of net actuarial loss 1,244 1,121 Total pretax amount reclassified (b) 130 16 Income tax effect ( 32 ) ( 5 ) Effect on net income due to items reclassified from Accumulated Other Comprehensive Income $ 98 $ 11 (a) Included in Interest expense, net are payments related to the interest rate swap agreements and amortization of swap buyouts (see Notes 15 and 16). (b) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 4). |
Noncontrolling Interest (Tables
Noncontrolling Interest (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Noncontrolling Interest [Abstract] | |
Schedule of Income Attributable to Noncontrolling Interest and Noncontrolling Equity | The table below presents a reconciliation of income attributable to the noncontrolling interest and noncontrolling equity in the Company’s subsidiary Albany Safran Composites, LLC: Three months ended March 31, (in thousands, except percentages) 2020 2019 Net (loss)/income of Albany Safran Composites (ASC) $( 14,849 ) $ 2,510 Less: Return attributable to the Company's preferred holding 302 328 Net (loss)/income of ASC available for common ownership $( 15,151 ) $ 2,182 Ownership percentage of noncontrolling shareholder 10 % 10 % Net (loss)/income attributable to noncontrolling interest $ ( 1,515 ) $ 218 Noncontrolling interest, beginning of year $ 4,006 $ 3,031 Net (loss)/income attributable to noncontrolling interest ( 1,515 ) 218 Changes in other comprehensive income attributable to noncontrolling interest 109 ( 8 ) Noncontrolling interest, end of interim period $ 2,600 $ 3,241 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable includes trade receivables. In connection with certain sales in Asia, the Company accepts a bank promissory note as customer payment. The notes may be presented for payment at maturity, which is less than one year. As of March 31, 2020 and December 31, 2019, Accounts receivable consisted of the following: (in thousands) March 31, 2020 December 31, 2019 Trade and other accounts receivable $ 197,951 $ 201,427 Bank promissory notes 17,063 18,563 Allowance for expected credit losses ( 3,933 ) ( 1,719 ) Accounts receivable, net $ 211,081 $ 218,271 |
Schedule of Contract Receivables | The Company has Noncurrent receivables in the AEC segment that represent revenue earned, which has extended payment terms. The Noncurrent receivables will be invoiced to the customer, with 2% interest, over a 10-year period starting in 2020. As of March 31, 2020 and December 31, 2019, Noncurrent receivables consisted of the following: (in thousands) March 31, 2020 December 31, 2019 Noncurrent receivables $ 39,325 $ 41,234 Allowance for expected credit losses ( 396 ) - Noncurrent receivables, net $ 38,929 $ 41,234 |
Schedule of Changes in Allowance for Credit Losses for Accounts receivable | The following table presents the year-to-date (increases)/ decreases in the allowance for credit losses for Accounts receivable: CECL December 31, transition Currency March 31, (in thousands) 2019 adjustment Charges translation Other 2020 Specific customer reserves $( 1,719 ) $ ( 44 ) $ ( 89 ) $ 116 $ 42 $( 1,694 ) Incremental expected credit losses - ( 1,139 ) ( 1,133 ) 38 ( 5 ) ( 2,239 ) Accounts receivable expected credit losses $( 1,719 ) $( 1,183 ) $( 1,222 ) $ 154 $ 37 $( 3,933 ) |
Schedule of Changes in Allowance for Credit Losses for Noncurrent receivables | The following table presents the year-to-date (increases)/decreases in the allowance for credit losses for Noncurrent receivables: CECL December 31, transition Currency March 31, (in thousands) 2019 adjustment Charges translation Other 2020 Noncurrent receivables expected credit losses $ - $( 206 ) $( 201 ) $ 11 $ - $( 396 ) |
Contract Assets and Liabiliti_2
Contract Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract] | |
Schedule of Contract Assets and Contract Liabilities | As of March 31, 2020 and December 31, 2019, Contract assets and Contract liabilities consisted of the following: (in thousands) March 31, 2020 December 31, 2019 Contract assets $ 85,257 $ 79,070 Allowance for expected credit losses ( 679 ) - Contract assets, net $ 84,578 $ 79,070 Contract liabilities $ 9,005 $ 5,656 |
Schedule of (Increases)/ Decreases in Allowance for Credit Losses | The following table presents the year-to-date (increases)/ decreases in the allowance for credit losses for Contract assets: CECL December 31, transition Currency March 31, (in thousands) 2019 adjustment Charges translation Other 2020 Contract assets expected credit losses $ - $( 404 ) $( 232 ) $ 12 $( 55 ) $( 679 ) |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | As of March 31, 2020 and December 31, 2019, Inventories consisted of the following: (in thousands) March 31, 2020 December 31, 2019 Raw materials $ 60,907 $ 52,960 Work in process 34,266 31,744 Finished goods 14,253 10,445 Total inventories $ 109,426 $ 95,149 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Intangible Assets and Goodwill | We are continuing to amortize certain patents, trade names, customer relationships, customer contracts and technology assets that have finite lives. The gross carrying value, accumulated amortization and net values of intangible assets and goodwill as of March 31, 2020 and December 31, 2019, were as follows: As of March 31, 2020 (in thousands) Weighted average amortization life in years Gross carrying amount Accumulated amortization Net carrying amount Amortized intangible assets: AEC Trademarks and trade names 6-15 $ 208 $ ( 139 ) $ 69 AEC Technology 10-15 6,142 ( 537 ) 5,605 AEC Intellectual property 15 1,250 ( 28 ) 1,222 AEC Customer contracts 6 17,471 ( 11,655 ) 5,816 AEC Customer relationships 8-15 51,556 ( 13,010 ) 38,546 AEC Other intangibles 5 322 ( 257 ) 65 Total amortized intangible assets $ 76,949 $( 25,626 ) $ 51,323 Unamortized intangible assets: MC Goodwill $ 66,679 $ - $ 66,679 AEC Goodwill 112,687 - 112,687 Total unamortized intangible assets: $ 179,366 $ - $ 179,366 As of December 31, 2019 (in thousands) Weighted average amortization life in years Gross carrying amount Accumulated amortization Net carrying amount Amortized intangible assets: AEC Trademarks and trade names 6-15 $ 208 $ ( 135 ) $ 73 AEC Technology 10-15 6,191 ( 387 ) 5,804 AEC Intellectual property 15 1,250 ( 7 ) 1,243 AEC Customer contracts 6 17,471 ( 10,927 ) 6,544 AEC Customer relationships 8-15 51,255 ( 12,108 ) 39,147 AEC Other intangibles 5 322 ( 241 ) 81 Total amortized intangible assets $ 76,697 $( 23,805 ) $ 52,892 Unamortized intangible assets: MC Goodwill $ 67,672 $ - $ 67,672 AEC Goodwill 113,262 - 113,262 Total unamortized intangible assets: $ 180,934 $ - $ 180,934 22 Index The changes in intangible assets, net and goodwill from December 31, 2019 to March 31, 2020, were as follows: (in thousands) December 31, 2019 Other Changes Amortization Currency Translation March 31, 2020 Amortized intangible assets: AEC Trademarks and trade names $ 73 $ - $ ( 4 ) $ - $ 69 AEC Technology 5,804 - ( 150 ) ( 49 ) 5,605 AEC Intellectual property 1,243 - ( 21 ) - 1,222 AEC Customer contracts 6,544 - ( 728 ) - 5,816 AEC Customer relationships 39,147 329 ( 871 ) ( 59 ) 38,546 AEC Other intangibles 81 - ( 16 ) - 65 Total amortized intangible assets $ 52,892 $ 329 $( 1,790 ) $ ( 108 ) $ 51,323 Unamortized intangible assets: MC Goodwill $ 67,672 $ - $ - $ ( 993 ) $ 66,679 AEC Goodwill 113,262 ( 227 ) - ( 348 ) 112,687 Total unamortized intangible assets: $ 180,934 $( 227 ) $ - $( 1,341 ) $ 179,366 |
Schedule of Estimated Amortization Expense | Estimated amortization expense of intangibles for the years ending December 31, 2020 through 2024, is as follows: Year Annual amortization (in thousands) 2020 $ 7,200 2021 7,100 2022 4,900 2023 4,200 2024 4,200 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt, principally to banks and noteholders, consists of: (in thousands, except interest rates) March 31, 2020 December 31, 2019 Revolving credit agreement with borrowings outstanding at an end of period interest rate of 3.15% in 2020 and 3.43% in 2019 (including the effect of interest rate hedging transactions, as described below), due in 2022 $ 491,000 $ 424,000 Other debt, at an average end of period rate of 5.50% in both 2020 and 2019, due in varying amounts through 2021 22 29 Long-term debt 491,022 424,029 Less: current portion ( 20 ) ( 20 ) Long-term debt, net of current portion $ 491,002 $ 424,009 |
Fair-Value Measurements (Tables
Fair-Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Financial Assets and Liabilities | The following table presents the fair-value hierarchy for our Level 1 and Level 2 financial and non-financial assets and liabilities, which are measured at fair value on a recurring basis: March 31, 2020 December 31, 2019 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 $ 13,039 $ - $ 16,375 $ - Other Assets: Common stock of unaffiliated foreign public company (a) 765 - 839 - Interest rate swaps Liabilities: Other noncurrent liabilities: Interest rate swaps - (15,761 ) b - (5,518 ) c (a) Original cost basis $0.5 million. (b) Net of $3.5 million receivable floating leg and $19.2 million liability fixed leg. (c) Net of $15.2 million receivable floating leg and $20.7 million liability fixed leg. |
Schedule of (Losses)/Gains on Changes in Fair Value of Derivative Instruments | Gains/(losses) related to changes in fair value of derivative instruments that were recognized in Other (income)/expense, net in the Consolidated Statements of Income were as follows: Three months ended March 31, (in thousands) 2020 2019 Derivatives not designated as hedging instruments Foreign currency options gains/(losses) $( 64 ) - |
Contingencies (Tables)
Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 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 2020 3,708 36 19 3,691 $ 47 |
Changes in Shareholders' Equi_2
Changes in Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Activity in Shareholders' Equity | The following table summarizes changes in Shareholders’ Equity for the period December 31, 2019 to March 31, 2020: Class A Common Stock Class B Common Stock Additional paid-in capital Retained earnings Accumulated items of other comprehensive income Class A Treasury Stock Non controlling Interest Total Equity (in thousands) Shares Amount Shares Amount Shares Amount December 31, 2019 39,099 $ 39 1,618 $ 2 $ 432,518 $ 698,496 $( 175,981 ) 8,409 $( 256,391 ) $ 4,006 $ 702,689 Adoption of accounting standards (a) - - - - - ( 1,443 ) - - - - ( 1,443 ) Net income - - - - - 9,109 - - - ( 1,515 ) 7,594 Compensation and benefits paid or payable in shares 13 - - - ( 682 ) - - - - - ( 682 ) Options exercised - - - - - - - - - - - Shares issued to Directors - - - - - - - - - - - Dividends declared Class A Common Stock, $0.19 per share - - - - - ( 5,834 ) - - - - ( 5,834 ) Class B Common Stock, $0.19 per share - - - - - ( 307 ) - - - - ( 307 ) Cumulative translation adjustments - - - - - - ( 25,747 ) - - 109 ( 25,638 ) Pension and postretirement liability adjustments - - - - - - ( 890 ) - - - 890 Derivative valuation adjustment - - - - - - ( 7,708 ) - - - ( 7,708 ) March 31, 2020 39,112 $ 39 1,618 $ 2 $ 431,836 $ 700,021 $( 208,546 ) 8,409 $( 256,391 ) $ 2,600 $ 669,561 27 Index The following table summarizes changes in Shareholders’ Equity for the period December 31, 2018 to March 31, 2019: Class A Common Stock Class B Common Stock Additional paid-in capital Retained earnings Accumulated items of other comprehensive income Class A Treasury Stock Non controlling Interest Total Equity (in thousands) Shares Amount Shares Amount Shares Amount December 31, 2018 37,450 $ 37 3,234 $ 3 $ 430,555 $ 589,645 $( 158,388 ) 8,419 $( 256,603 ) $ 3,031 $ 608,280 Adoption of accounting standards (b) - - - - - 35 - - - - 35 Net income - - - - - 29,190 - - - 218 29,408 Compensation and benefits paid or payable in shares 25 - - - ( 547 ) - - - - - ( 547 ) Options exercised 3 - 44 - - - - - 44 Shares issued to Directors - - - - - - - - - - - Dividends declared Class A Common Stock, $0.18 per share - - - - - ( 5,231 ) - - - - ( 5,231 ) Class B Common Stock, $0.18 per share - - - - - ( 582 ) - - - - ( 582 ) Cumulative translation adjustments - - - - - - ( 654 ) - - ( 8 ) ( 662 ) Pension and postretirement liability adjustments - - - - - - ( 1,487 ) - - - ( 1,487 ) Derivative valuation adjustment - - - - - - ( 2,851 ) - - - ( 2,851 ) March 31, 2019 37,478 $ 37 3,234 $ 3 $ 430,052 $ 613,057 $( 163,380 ) 8,419 $( 256,603 ) $ 3,241 $ 626,407 (a) As described in Note 1, the Company adopted the provisions of ASC 326, Current Expected Credit Losses (CECL) effective January 1, 2020, which resulted in a decrease to Retained earnings of $1.4 million. (b) The Company adopted ASC 842, Leases |
Significant Accounting Polici_3
Significant Accounting Policies (Narrative) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Accounting Policies [Abstract] | |
Pre-tax cumulative effect of initial adoption of ASC 326, increase in credit loss reserves | $ 1.8 |
Effect of initial adoption of ASC 326, decrease in retained earnings | $ 1.4 |
Reportable Segments (Narrative)
Reportable Segments (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 235,764 | $ 251,373 |
Performance obligations | 82,000 | 90,000 |
Remaining performance obligation expected to be recognized during 2020 | 48,000 | |
AEC [Member] | ||
Segment Reporting Information [Line Items] | ||
Immaterial out-of-period favorable adjustment | 900 | 600 |
Albany Safran Composites, LLC [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 38,000 | 56,000 |
Accounts receivable, unbilled receivables and contract receivables | 112,100 | $ 114,500 |
Lease rent | $ 200 |
Reportable Segments (Schedule o
Reportable Segments (Schedule of Financial Data by Reporting Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 235,764 | $ 251,373 |
Operating income/(loss) | 39,594 | 40,093 |
Interest income | (447) | (599) |
Interest expense | 4,424 | 5,016 |
Other (income)/expense, net | 15,569 | (1,208) |
Income before income taxes | 20,048 | 36,884 |
Machine Clothing [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 136,602 | 144,334 |
Operating income/(loss) | 47,175 | 44,243 |
Albany Engineered Composites [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 99,162 | 107,039 |
Operating income/(loss) | 7,623 | 9,522 |
Corporate Expenses [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating income/(loss) | $ (15,204) | $ (13,672) |
Reportable Segments (Schedule_2
Reportable Segments (Schedule of Restructuring Costs by Reporting Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restructuring expense | ||
Restructuring expenses, net | $ 642 | $ 484 |
Machine Clothing [Member] | ||
Restructuring expense | ||
Restructuring expenses, net | 642 | 401 |
Albany Engineered Composites [Member] | ||
Restructuring expense | ||
Restructuring expenses, net | $ 83 |
Reportable Segments (Schedule_3
Reportable Segments (Schedule of Disaggregate Revenue for Each Business Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Total Revenue | $ 235,764 | $ 251,373 |
Over Time Revenue Recognition [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 93,690 | 101,594 |
Point in Time Revenue Recognition [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 142,074 | 149,779 |
Machine Clothing [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 136,602 | 144,334 |
Machine Clothing [Member] | Over Time Revenue Recognition [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 848 | 800 |
Machine Clothing [Member] | Point in Time Revenue Recognition [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 135,754 | 143,534 |
Albany Engineered Composites ASC [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 37,894 | 55,442 |
Albany Engineered Composites ASC [Member] | Over Time Revenue Recognition [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 37,894 | 55,442 |
Albany Engineered Composites ASC [Member] | Point in Time Revenue Recognition [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | ||
Albany Engineered Composites Other AEC [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 61,268 | 51,597 |
Albany Engineered Composites Other AEC [Member] | Over Time Revenue Recognition [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 54,948 | 45,352 |
Albany Engineered Composites Other AEC [Member] | Point in Time Revenue Recognition [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 6,320 | 6,245 |
Albany Engineered Composites [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 99,162 | 107,039 |
Albany Engineered Composites [Member] | Over Time Revenue Recognition [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 92,842 | 100,794 |
Albany Engineered Composites [Member] | Point in Time Revenue Recognition [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | $ 6,320 | $ 6,245 |
Reportable Segments (Schedule_4
Reportable Segments (Schedule of Disaggregate MC Segment Revenue by Significant Product or Service) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 235,764 | $ 251,373 |
Americas PMC [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 73,677 | 75,341 |
Eurasia PMC [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 45,131 | 51,438 |
Engineered Fabrics [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 17,794 | 17,555 |
Machine Clothing [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 136,602 | $ 144,334 |
Business Acquisition (Narrative
Business Acquisition (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Mar. 20, 2020 | Nov. 20, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | |
Business Acquisition [Line Items] | ||||
Increase to Amortizable intangible assets | $ 329 | |||
CirComp GmbH [Member] | ||||
Business Acquisition [Line Items] | ||||
Consideration for acquisition | $ 32,400 | |||
Deferred payments | $ 5,500 | |||
Period of equal installments | 5 years | |||
Amount of agreed to purchase primary operating facility | $ 5,800 | |||
Increase to Amortizable intangible assets | $ 300 | |||
Increase to Deferred income tax liabilities | 100 | |||
Reduction to Goodwill | $ 200 |
Business Acquisition (Schedule
Business Acquisition (Schedule of Allocation of Purchase Price) (Details) - USD ($) $ in Thousands | 1 Months Ended | ||
Nov. 20, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | |
Assets acquired | |||
Goodwill | $ 179,366 | $ 180,934 | |
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 intangible assets | 10,302 | ||
Goodwill | 17,114 | ||
Total assets acquired | 43,825 | ||
Liabilities assumed | |||
Accounts payable | 65 | ||
Accrued liabilities | 2,249 | ||
Lease liabilities | 502 | ||
Deferred income taxes | 3,425 | ||
Other noncurrent liabilities | 5,184 | ||
Total liabilities | 11,425 | ||
Net assets acquired | 32,400 | ||
Purchase of business, net of cash acquired | $ 30,793 |
Pensions and Other Postretire_3
Pensions and Other Postretirement Benefit Plans (Schedule of Net Periodic Benefit Plan Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 580 | $ 632 |
Interest cost | 1,550 | 1,794 |
Expected return on assets | (1,723) | (2,057) |
Amortization of prior service cost/(credit) | 8 | 17 |
Amortization of net actuarial loss | 596 | 564 |
Net periodic benefit cost | 1,011 | 950 |
Other Postretirement Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 50 | 47 |
Interest cost | 428 | 528 |
Expected return on assets | ||
Amortization of prior service cost/(credit) | (1,122) | (1,122) |
Amortization of net actuarial loss | 648 | 557 |
Net periodic benefit cost | $ 4 | $ 10 |
Restructuring (Narrative) (Deta
Restructuring (Narrative) (Details) $ in Millions | 39 Months Ended |
Mar. 31, 2020USD ($) | |
Restructuring and Related Activities [Abstract] | |
Restructuring expense | $ 13.1 |
Noncurrent portion of accrued liabilities for restructuring due in following year | 0.4 |
Current portion of accrued liabilities for restructuring | $ 1.5 |
Restructuring (Schedule of Rest
Restructuring (Schedule of Restructuring Charges) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restructuring and other, net | ||
Restructuring expenses, net | $ 642 | $ 484 |
Machine Clothing [Member] | ||
Restructuring and other, net | ||
Restructuring expenses, net | 642 | 401 |
Albany Engineered Composites [Member] | ||
Restructuring and other, net | ||
Restructuring expenses, net | 83 | |
Corporate Expenses [Member] | ||
Restructuring and other, net | ||
Restructuring expenses, net | ||
Termination and other costs [Member] | ||
Restructuring and other, net | ||
Restructuring expenses, net | 642 | 484 |
Termination and other costs [Member] | Machine Clothing [Member] | ||
Restructuring and other, net | ||
Restructuring expenses, net | 642 | 401 |
Termination and other costs [Member] | Albany Engineered Composites [Member] | ||
Restructuring and other, net | ||
Restructuring expenses, net | 83 | |
Termination and other costs [Member] | Corporate Expenses [Member] | ||
Restructuring and other, net | ||
Restructuring expenses, net |
Restructuring (Schedule of Re_2
Restructuring (Schedule of Restructuring Liability) (Details) - Termination and other costs [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 2,042 | $ 5,570 |
Restructuring charges accrued | 642 | 484 |
Payments | (731) | (876) |
Currency translation/other | (92) | 23 |
Ending balance | $ 1,861 | $ 5,201 |
Other (Income)_Expense, net (De
Other (Income)/Expense, net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Other Income and Expenses [Abstract] | ||
Currency transaction (gains)/losses | $ 14,834 | $ (2,038) |
Bank fees and amortization of debt issuance costs | 75 | 109 |
Components of net periodic pension and postretirement cost other than service | 385 | 281 |
Other | 275 | 440 |
Total | 15,569 | (1,208) |
Other (income)/expense | $ 14,800 | $ 2,000 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Line Items] | ||
Current year and prior year earnings of Company's foreign operations | $ 14.4 | |
Foreign withholding taxes | 2.2 | |
Federal tax benefit attributable to adjustments discovered | 1.8 | |
State tax charge | $ 2.4 | |
Estimated effective tax rate on continuing operations | 36.50% | 29.40% |
Discrete tax benefit | $ 3.7 | |
Mexican peso [Member] | ||
Income Tax Disclosure [Line Items] | ||
Valuation allowance | $ 12.7 | |
Latest Tax Year [Member] | ||
Income Tax Disclosure [Line Items] | ||
Open tax years | 2020 | |
Earliest Tax Year [Member] | ||
Income Tax Disclosure [Line Items] | ||
Open tax years | 2007 |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Income Tax Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Income tax based on income from continuing operations, at estimated tax rates of 36.5% and 29.4%, respectively | $ 7,309 | $ 10,847 |
Income tax before discrete items | 7,309 | 10,847 |
Discrete tax expense: | ||
Exercise of U.S. Stock Options | (50) | |
Adjustments to prior period tax liabilities | (112) | 194 |
Provision for/resolution of tax audits and contingencies, net | (244) | (2,232) |
Out-of-period adjustments to deferred tax assets | 1,830 | (1,346) |
Tax effect of non-deductible foreign exchange loss on intercompany loan | 3,668 | |
Other | 3 | 63 |
Total income tax expense | $ 12,454 | $ 7,476 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net income attributable to the Company | $ 9,109 | $ 29,190 |
Weighted average number of shares: | ||
Weighted average number of shares used in calculating basic net income per share | 32,312 | 32,272 |
Effect of dilutive stock-based compensation plans: | ||
Stock options | 8 | 13 |
Weighted average number of shares used in calculating diluted net income per share | 32,320 | 32,285 |
Average market price of common stock used for calculation of dilutive shares | $ 65.47 | $ 71.24 |
Net income attributable to the Company per share: | ||
Basic | 0.28 | 0.90 |
Diluted | $ 0.28 | $ 0.90 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (AOCI) (Schedule of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | $ 698,683 | |
Ending balance | 666,961 | |
Translation adjustments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (122,852) | $ (115,976) |
Other comprehensive income/(loss) before reclassifications | (25,747) | (654) |
Interest expense related to swaps reclassified to the Consolidated Statements of Income, net of tax | ||
Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income, net of tax | ||
Adjustment related to prior period change in opening valuation allowance | ||
Net current period other comprehensive income | (25,747) | (654) |
Ending balance | (148,599) | (116,630) |
Pension and postretirement liability adjustments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (49,994) | (47,109) |
Other comprehensive income/(loss) before reclassifications | 792 | (152) |
Interest expense related to swaps reclassified to the Consolidated Statements of Income, net of tax | ||
Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income, net of tax | 98 | 11 |
Adjustment related to prior period change in opening valuation allowance | (1,346) | |
Net current period other comprehensive income | 890 | (1,487) |
Ending balance | (49,104) | (48,596) |
Derivative valuation adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (3,135) | 4,697 |
Other comprehensive income/(loss) before reclassifications | (8,011) | (2,514) |
Interest expense related to swaps reclassified to the Consolidated Statements of Income, net of tax | 303 | (337) |
Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income, net of tax | ||
Adjustment related to prior period change in opening valuation allowance | ||
Net current period other comprehensive income | (7,708) | (2,851) |
Ending balance | (10,843) | 1,846 |
Total Other Comprehensive Income [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (175,981) | (158,388) |
Other comprehensive income/(loss) before reclassifications | (32,966) | (3,320) |
Interest expense related to swaps reclassified to the Consolidated Statements of Income, net of tax | 303 | (337) |
Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income, net of tax | 98 | 11 |
Adjustment related to prior period change in opening valuation allowance | (1,346) | |
Net current period other comprehensive income | (32,565) | (4,992) |
Ending balance | $ (208,546) | $ (163,380) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (AOCI) (Schedule of Items Reclassified to Statement of Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Expense/(income) related to interest rate swaps included in Income before taxes | $ 4,424 | $ 5,016 | |
Total pretax amount reclassified | 20,048 | 36,884 | |
Income tax effect | 12,454 | 7,476 | |
Effect on net income due to items reclassified from Accumulated Other Comprehensive Income | (9,109) | (29,190) | |
Prior service credit | (1,114) | (1,105) | |
Net actuarial loss | 1,244 | 1,121 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivative valuation adjustment [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Expense/(income) related to interest rate swaps included in Income before taxes | [1] | 407 | (452) |
Income tax effect | (104) | 115 | |
Effect on net income due to items reclassified from Accumulated Other Comprehensive Income | 303 | (337) | |
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] | 130 | 16 |
Income tax effect | (32) | (5) | |
Effect on net income due to items reclassified from Accumulated Other Comprehensive Income | $ 98 | $ 11 | |
[1] | Included in Interest expense, net are payments related to the interest rate swap agreements and amortization of swap buyouts (see Notes 15 and 16). | ||
[2] | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 4). |
Noncontrolling Interest (Detail
Noncontrolling Interest (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Oct. 31, 2013 | Mar. 31, 2020 | Mar. 31, 2019 | |
Noncontrolling Interest [Line Items] | |||
Net income of Albany Safran Composites (ASC) | $ 7,594 | $ 29,408 | |
Net income of ASC available for common ownership | 9,109 | 29,190 | |
Net income attributable to noncontrolling interest | (1,515) | 218 | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||
Noncontrolling interest, beginning of year | 4,006 | ||
Net income attributable to noncontrolling interest | (1,515) | $ 218 | |
Noncontrolling interest | $ 2,600 | ||
Albany Safran Composites, LLC [Member] | |||
Noncontrolling Interest [Line Items] | |||
Interest in subsidiary sold | 10.00% | ||
Cash contribution | $ 28,000 | ||
Albany's remaining interest | 90.00% | ||
Ownership percentage of noncontrolling shareholder | 10.00% | 10.00% | |
Albany Safran Composites, LLC [Member] | |||
Noncontrolling Interest [Line Items] | |||
Net income of Albany Safran Composites (ASC) | $ (14,849) | $ 2,510 | |
Less: Return attributable to the Company's preferred holding | 302 | 328 | |
Net income of ASC available for common ownership | (15,151) | 2,182 | |
Net income attributable to noncontrolling interest | (1,515) | 218 | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||
Noncontrolling interest, beginning of year | 4,006 | 3,031 | |
Net income attributable to noncontrolling interest | (1,515) | 218 | |
Changes in other comprehensive income attributable to noncontrolling interest | 109 | (8) | |
Noncontrolling interest | $ 2,600 | $ 3,241 |
Accounts Receivable (Narrative)
Accounts Receivable (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Interest rate | 2.00% |
Noncurrent receivables invoice terms | over a 10-year |
Accounts Receivable (Schedule o
Accounts Receivable (Schedule of Accounts Receivable) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
Trade and other accounts receivable | $ 197,951 | $ 201,427 |
Bank promissory notes | 17,063 | 18,563 |
Allowance for expected credit losses | (3,933) | (1,719) |
Accounts receivable, net | $ 211,081 | $ 218,271 |
Accounts Receivable (Schedule_2
Accounts Receivable (Schedule of Contract Receivables) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
Noncurrent receivables | $ 39,325 | $ 41,234 |
Allowance for expected credit losses | (396) | |
Noncurrent receivables, net | $ 38,929 | $ 41,234 |
Accounts Receivable (Schedule_3
Accounts Receivable (Schedule of Changes in Allowance for Credit Losses for Accounts Receivable) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Accounts receivable expected credit losses at beginning | $ (1,719) |
CECL transition adjustment | (1,183) |
Charges | (1,222) |
Currency translation | 154 |
Other | 37 |
Accounts receivable expected credit losses at end | (3,933) |
Specific customer reserves [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Accounts receivable expected credit losses at beginning | (1,719) |
CECL transition adjustment | (44) |
Charges | (89) |
Currency translation | 116 |
Other | 42 |
Accounts receivable expected credit losses at end | (1,694) |
Incremental expected credit losses [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Accounts receivable expected credit losses at beginning | |
CECL transition adjustment | (1,139) |
Charges | (1,133) |
Currency translation | 38 |
Other | (5) |
Accounts receivable expected credit losses at end | $ (2,239) |
Accounts Receivable (Schedule_4
Accounts Receivable (Schedule of Changes in Allowance for Credit Losses for Noncurrent Receivables) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Receivables [Abstract] | |
Noncurrent receivables expected credit losses at beginning | |
CECL transition adjustment | (206) |
Charges | (201) |
Currency translation | 11 |
Other | |
Noncurrent receivables expected credit losses at end | $ (396) |
Contract Assets and Liabiliti_3
Contract Assets and Liabilities (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract] | ||
Increase in contract assets | $ 5.5 | |
Increase in contract liabilities | 3.3 | |
Revenue recognized | $ 1.9 | $ 3.7 |
Contract Assets and Liabiliti_4
Contract Assets and Liabilities (Schedule of Contract Assets and Contract Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract] | ||
Contract assets | $ 85,257 | $ 79,070 |
Allowance for expected credit losses | (679) | |
Contract assets, net | 84,578 | 79,070 |
Contract liabilities | $ 9,005 | $ 5,656 |
Contract Assets and Liabiliti_5
Contract Assets and Liabilities (Schedule of (Increases)/ Decreases in Allowance for Credit Losses) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract] | |
Allowance for expected credit losses | |
CECL transition adjustment | (404) |
Charges | (232) |
Currency translation | 12 |
Other | (55) |
Allowance for expected credit losses | $ (679) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 60,907 | $ 52,960 |
Work in process | 34,266 | 31,744 |
Finished goods | 14,253 | 10,445 |
Total inventories | $ 109,426 | $ 95,149 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Schedule of intangible assets and goodwill) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Amortized intangible assets: | ||
Gross carrying value | $ 76,949 | $ 76,697 |
Accumulated amortization | (25,626) | (23,805) |
Net carrying amount | 51,323 | 52,892 |
Gross carrying value | 179,366 | 180,934 |
Accumulated amortization | ||
Net carrying amount | 179,366 | 180,934 |
AEC Trademarks and Trade Names [Member] | ||
Amortized intangible assets: | ||
Gross carrying value | 208 | 208 |
Accumulated amortization | (139) | (135) |
Net carrying amount | $ 69 | $ 73 |
AEC Trademarks and Trade Names [Member] | Minimum [Member] | ||
Amortized intangible assets: | ||
Weighted average amortization life in years | 6 years | 6 years |
AEC Trademarks and Trade Names [Member] | Maximum [Member] | ||
Amortized intangible assets: | ||
Weighted average amortization life in years | 15 years | 15 years |
AEC Technology [Member] | ||
Amortized intangible assets: | ||
Gross carrying value | $ 6,142 | $ 6,191 |
Accumulated amortization | (537) | (387) |
Net carrying amount | $ 5,605 | $ 5,804 |
AEC Technology [Member] | Minimum [Member] | ||
Amortized intangible assets: | ||
Weighted average amortization life in years | 10 years | 10 years |
AEC Technology [Member] | Maximum [Member] | ||
Amortized intangible assets: | ||
Weighted average amortization life in years | 15 years | 15 years |
AEC Intellectual Property [Member] | ||
Amortized intangible assets: | ||
Gross carrying value | $ 1,250 | $ 1,250 |
Accumulated amortization | (28) | (7) |
Net carrying amount | $ 1,222 | $ 1,243 |
Weighted average amortization life in years | 15 years | 15 years |
AEC Customer Contracts [Member] | ||
Amortized intangible assets: | ||
Gross carrying value | $ 17,471 | $ 17,471 |
Accumulated amortization | (11,655) | (10,927) |
Net carrying amount | $ 5,816 | $ 6,544 |
Weighted average amortization life in years | 6 years | 6 years |
AEC Customer Relationships [Member] | ||
Amortized intangible assets: | ||
Gross carrying value | $ 51,556 | $ 51,255 |
Accumulated amortization | (13,010) | (12,108) |
Net carrying amount | $ 38,546 | $ 39,147 |
AEC Customer Relationships [Member] | Minimum [Member] | ||
Amortized intangible assets: | ||
Weighted average amortization life in years | 8 years | 8 years |
AEC Customer Relationships [Member] | Maximum [Member] | ||
Amortized intangible assets: | ||
Weighted average amortization life in years | 15 years | 15 years |
Other Intangible [Member] | ||
Amortized intangible assets: | ||
Gross carrying value | $ 322 | $ 322 |
Accumulated amortization | (257) | (241) |
Net carrying amount | $ 65 | $ 81 |
Weighted average amortization life in years | 5 years | 5 years |
MC Goodwill [Member] | ||
Amortized intangible assets: | ||
Gross carrying value | $ 66,679 | $ 67,672 |
Accumulated amortization | ||
Net carrying amount | 66,679 | 67,672 |
AEC Goodwill [Member] | ||
Amortized intangible assets: | ||
Gross carrying value | 112,687 | 113,262 |
Accumulated amortization | ||
Net carrying amount | $ 112,687 | $ 113,262 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Schedule of Changes in Intangible Assets and Goodwill) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Amortized intangible assets: | |
Beginning balance | $ 52,892 |
Other Changes | 329 |
Amortization | (1,790) |
Currency Translation | (108) |
Ending balance | 51,323 |
Beginning balance | 180,934 |
Other Changes | (227) |
Amortization | |
Currency Translation | (1,341) |
Ending balance | 179,366 |
AEC Trademarks and Trade Names [Member] | |
Amortized intangible assets: | |
Beginning balance | 73 |
Other Changes | |
Amortization | (4) |
Currency Translation | |
Ending balance | 69 |
AEC Technology [Member] | |
Amortized intangible assets: | |
Beginning balance | 5,804 |
Other Changes | |
Amortization | (150) |
Currency Translation | (49) |
Ending balance | 5,605 |
AEC Intellectual Property [Member] | |
Amortized intangible assets: | |
Beginning balance | 1,243 |
Other Changes | |
Amortization | (21) |
Currency Translation | |
Ending balance | 1,222 |
AEC Customer Contracts [Member] | |
Amortized intangible assets: | |
Beginning balance | 6,544 |
Other Changes | |
Amortization | (728) |
Currency Translation | |
Ending balance | 5,816 |
AEC Customer Relationships [Member] | |
Amortized intangible assets: | |
Beginning balance | 39,147 |
Other Changes | 329 |
Amortization | (871) |
Currency Translation | (59) |
Ending balance | 38,546 |
Other Intangible [Member] | |
Amortized intangible assets: | |
Beginning balance | 81 |
Other Changes | |
Amortization | (16) |
Currency Translation | |
Ending balance | 65 |
MC Goodwill [Member] | |
Amortized intangible assets: | |
Beginning balance | 67,672 |
Other Changes | |
Amortization | |
Currency Translation | (993) |
Ending balance | 66,679 |
AEC Goodwill [Member] | |
Amortized intangible assets: | |
Beginning balance | 113,262 |
Other Changes | (227) |
Amortization | |
Currency Translation | (348) |
Ending balance | $ 112,687 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Schedule of Estimated Amortization Expense) (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 7,200 |
2021 | 7,100 |
2022 | 4,900 |
2023 | 4,200 |
2024 | $ 4,200 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) $ in Millions | 3 Months Ended | ||||||
Mar. 31, 2020USD ($) | Mar. 16, 2020USD ($) | Nov. 28, 2017USD ($) | Nov. 27, 2017USD ($) | Nov. 07, 2017USD ($) | May 06, 2016USD ($) | Apr. 08, 2016USD ($) | |
Debt Instrument [Line Items] | |||||||
Maximum leverage ratio allowed | 3.50 | ||||||
Minimum interest coverage ratio required | 3 | ||||||
Leverage ratio | 1.69 | ||||||
Interest coverage ratio | 13.82 | ||||||
Credit Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Amount of credit facility | $ 685 | $ 550 | |||||
Amount of credit facility outstanding | $ 491 | ||||||
Additional amount that can be borrowed on facility | $ 194 | ||||||
LIBOR spread | 1.375% | ||||||
Credit Agreement [Member] | Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
LIBOR spread | 1.75% | ||||||
Credit Agreement [Member] | Minimum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
LIBOR spread | 1.25% | ||||||
Interest Rate Current Swap [Member] | Credit Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Borrowings, revolving credit facility | $ 300 | $ 120 | |||||
Notional amount | $ 350 | $ 350 | |||||
Fixed interest rate in swap | 71.00% | 2.11% | |||||
LIBOR rate | 3.485% | ||||||
Amount paid to terminate agreement | $ 5.2 | ||||||
Amount received from terminate agreement | $ 6.3 |
Financial Instruments (Schedule
Financial Instruments (Schedule of Long-Term Debt) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Long-term debt | $ 491,022 | $ 424,029 |
Less: current portion | (20) | (20) |
Long-term debt, net of current portion | 491,002 | 424,009 |
Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 491,000 | $ 424,000 |
Interest rate | 3.15% | 3.43% |
Maturity date range, end | Dec. 31, 2022 | |
Other Debt [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 22 | $ 29 |
Interest rate | 5.50% | 5.50% |
Maturity date range, end | Dec. 31, 2021 |
Fair-Value Measurements (Narrat
Fair-Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative [Line Items] | ||
Interest expense (income) | $ (3,977) | $ (4,417) |
Interest Rate Current Swap [Member] | ||
Derivative [Line Items] | ||
Interest expense (income) | 500 | (300) |
Interest Rate Swap Buyouts [Member] | ||
Derivative [Line Items] | ||
Interest expense (income) | $ 100 | $ 100 |
Fair-Value Measurements (Schedu
Fair-Value Measurements (Schedule of Fair Value of Financial Assets and Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | ||
Derivative asset: | ||||
Common stock of foreign public company, original cost | $ 500 | $ 500 | ||
Quoted Prices in Active Markets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Assets: | ||||
Cash equivalents | 13,039 | 16,375 | ||
Common stock of unaffiliated foreign public company | [1] | 765 | 839 | |
Liabilities: | ||||
Interest rate swaps | ||||
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Assets: | ||||
Cash equivalents | ||||
Common stock of unaffiliated foreign public company | [1] | |||
Liabilities: | ||||
Interest rate swaps | (15,761) | [2] | (5,518) | |
Interest Rate Current Swap [Member] | ||||
Derivative liability: | ||||
Liability for fixed rate leg | 19,200 | 20,700 | ||
Receivable for floating rate leg | $ 3,500 | $ 15,200 | ||
[1] | Original cost basis $0.5 million. | |||
[2] | Net of $3.5 million receivable floating leg and $19.2 million liability fixed leg. |
Fair-Value Measurements (Sche_2
Fair-Value Measurements (Schedule of (Losses)/Gains on Changes in Fair Value of Derivative Instruments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | ||
Derivatives not designated as hedging instruments Foreign currency options gains/(losses) | $ (64) |
Contingencies (Narrative) (Deta
Contingencies (Narrative) (Details) - Asbestos Litigation [Member] $ in Millions | Mar. 31, 2020USD ($)claims |
Loss Contingencies [Line Items] | |
Total resolved claims, by means of settlement or dismissal | claims | 37,833 |
Total cost of resolution | $ | $ 10.4 |
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% |
Contingencies (Schedule of Chan
Contingencies (Schedule of Changes in Claims) (Details) - Asbestos Litigation [Member] $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2020USD ($)claims | Dec. 31, 2019USD ($)claims | Dec. 31, 2018USD ($)claims | Dec. 31, 2017USD ($)claims | Dec. 31, 2016USD ($)claims | Dec. 31, 2015USD ($)claims | |
Loss Contingencies [Line Items] | ||||||
Opening Number of Claims | 3,708 | 3,684 | 3,730 | 3,745 | 3,791 | 3,821 |
Claims Dismissed, Settled, or Resolved | 36 | 51 | 152 | 105 | 148 | 116 |
New Claims | 19 | 75 | 106 | 90 | 102 | 86 |
Closing Number of Claims | 3,691 | 3,708 | 3,684 | 3,730 | 3,745 | 3,791 |
Amounts Paid (thousands) to Settle or Resolve | $ | $ 47 | $ 25 | $ 100 | $ 55 | $ 758 | $ 164 |
Changes in Shareholders' Equi_3
Changes in Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Dividends declared per share | $ 0.19 | $ 0.18 |
Common Class A [Member] | ||
Dividends declared per share | 0.19 | 0.18 |
Common Class B [Member] | ||
Dividends declared per share | $ 0.19 | $ 0.18 |
ASC 842 [Member] | ||
Increase decrease in retained earnings | $ 0.1 | |
ASC 326 [Member] | ||
Increase decrease in retained earnings | $ 1.4 |
Changes in Shareholders' Equi_4
Changes in Shareholders' Equity (Schedule of Activity in Shareholders' Equity) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | |||
Balance | $ 702,689 | $ 608,280 | ||
Adoption of accounting standards | (1,443) | [1] | 35 | [2] |
Net income | 7,594 | 29,408 | ||
Compensation and benefits paid or payable in shares | (682) | (547) | ||
Options exercised | $ 44 | |||
Shares issued to Directors | ||||
Dividends declared Class A | $ (5,834) | $ (5,231) | ||
Dividends declared Class B | (307) | (582) | ||
Cumulative translation adjustments | (25,638) | (662) | ||
Pension and postretirement liability adjustments | 890 | (1,487) | ||
Derivative valuation adjustment | (7,708) | (2,851) | ||
Balance | 669,561 | 626,407 | ||
Common Class A [Member] | ||||
Balance | $ 39 | $ 37 | ||
Balance, Shares | 39,099,000 | 37,450,000 | ||
Compensation and benefits paid or payable in shares | $ 25 | |||
Compensation and benefits paid or payable in shares, Shares | 13 | |||
Options exercised | 3 | |||
Balance | $ 39 | $ 37 | ||
Balance, Shares | 39,112,000 | 37,478,000 | ||
Common Class B [Member] | ||||
Balance | $ 2 | $ 3 | ||
Balance, Shares | 1,618,000 | 3,234,000 | ||
Balance | $ 2 | $ 3 | ||
Balance, Shares | 1,618,000 | 3,234,000 | ||
Additional paid-in capital [Member] | ||||
Balance | $ 432,518 | $ 430,555 | ||
Compensation and benefits paid or payable in shares | (682) | (547) | ||
Options exercised | 44 | |||
Balance | 431,836 | 430,052 | ||
Retained earnings [Member] | ||||
Balance | 698,496 | 589,645 | ||
Adoption of accounting standards | (1,443) | [1] | 35 | [2] |
Net income | 9,109 | 29,190 | ||
Balance | 700,021 | 613,057 | ||
Retained earnings [Member] | Common Class A [Member] | ||||
Dividends declared Class A | (5,834) | (5,231) | ||
Retained earnings [Member] | Common Class B [Member] | ||||
Dividends declared Class B | (307) | (582) | ||
Total Other Comprehensive Income [Member] | ||||
Balance | (175,981) | (158,388) | ||
Cumulative translation adjustments | (25,747) | (654) | ||
Pension and postretirement liability adjustments | 890 | (1,487) | ||
Derivative valuation adjustment | (7,708) | (2,851) | ||
Balance | (208,546) | (163,380) | ||
Treasury stock [Member] | ||||
Balance | $ (256,391) | $ (256,603) | ||
Balance, Shares | 8,409 | 8,419 | ||
Balance | $ (256,391) | $ (256,603) | ||
Balance, Shares | 8,409 | 8,419 | ||
Noncontrolling Interest [Member] | ||||
Balance | $ 4,006 | $ 3,031 | ||
Net income | (1,515) | 218 | ||
Cumulative translation adjustments | 109 | (8) | ||
Balance | $ 2,600 | $ 3,241 | ||
[1] | As described in Note 1, the Company adopted the provisions of ASC 326, Current Expected Credit Losses (CECL) effective January 1, 2020, which resulted in a decrease to Retained earnings of $1.4 million. | |||
[2] | The Company adopted ASC 842, Leases |