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Revenue from Contracts with Customers (Tables)
 9 Months Ended
Sep. 30, 2018
Revenue from Contract with Customer [Abstract]  
Schedule of Contract Assets and Liabilities
Contract assets and liabilities consisted of the following (in thousands):

 
September 30, 2018
 
January 1, 2018
 
Dollar Change
Contract assets
$
24,756

 
$
19,125

 
$
5,631

Contract liabilities
$
3,188

 
$
2,820

 
$
368
Schedule of Impact on Consolidated Income Statement and Consolidated Balance Sheet
The cumulative effect of the changes made to the Company’s Condensed Consolidated January 1, 2018 Balance Sheet for the adoption of ASC 606 was as follows:
In thousands
 
December 31, 2017
 
Adjustments for Adoption of ASC606
 
January 1, 2018
 
 
 
 
 
Assets:
 
 
 
 
 
 
Contract assets
 
$
—

 
$
19,125

 
$
19,125

Inventories
 
$
80,339

 
$
(15,184
)
 
$
65,155

 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
Accounts payable
 
$
71,931

 
$
663

 
$
72,594

Other accrued liabilities
 
$
11,690

 
$
1,209

 
$
12,899

Deferred tax liabilities
 
$
14,714

 
$
471

 
$
15,185

 
 
 
 
 
 
 
Stockholders' equity:
 
 
 
 
 
 
Retained earnings
 
$
374,783

 
$
1,598

 
$
376,381


The cumulative effect of the changes made to the Company’s Condensed Consolidated Balance Sheet for the adoption of ASC 606 was as follows:

 
 
September 30, 2018
In thousands
 
Balances Without Adoption of ASC 606
 
ASC 606 Adjustments
 
As Reported
 
 
 
 
 
Assets:
 
 
 
 
 
 
Contract assets
 
$
—

 
$
24,756

 
$
24,756

Inventories
 
$
113,718

 
$
(21,839
)
 
$
91,879

 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
Accounts payable
 
$
86,502

 
$
1,693

 
$
88,195

Other accrued liabilities
 
$
16,655

 
$
(2,148
)
 
$
14,507

  Deferred tax liabilities
 
$
40,306

 
$
758

 
$
41,064

 
 
 
 
 
 
 
Stockholders' equity:
 
 
 
 
 
 
Retained earnings
 
$
401,489

 
$
2,652

 
$
404,141

 Accumulated other comprehensive loss
 
$
(28,688
)
 
$
(38
)
 
$
(28,726
)














The cumulative effect of the changes made to the Company’s Condensed Consolidated Statement of Operations for the adoption of ASC 606 for the quarter and nine months ended September 30, 2018 were as follows:

 
 
Quarter Ended September 30, 2018
In thousands
 
Results Without Adoption of ASC606
 
Effect of Change
Higher (Lower)
 
As Reported
 
 
 
 
 
Net sales
 
$
198,949

 
$
(1,063
)
 
$
197,886

Cost of sales
 
164,793

 
(2,046
)
 
162,747

Gross profit
 
34,156

 
983

 
35,139

Selling, product development and administrative expenses
 
25,406

 
—

 
25,406

Operating income
 
8,750

 
983

 
9,733

Interest expense
 
1,505

 
—

 
1,505

Other income, net
 
(40
)
 
—

 
(40
)
Income before income taxes
 
7,285

 
983

 
8,268

Income tax expense
 
1,846

 
230

 
2,076

Income from equity method investment
 
(64
)
 
—

 
(64
)
Net income
 
$
5,503

 
$
753

 
$
6,256

Earnings per share:
 
 
 
 
 
 
Basic
 
$
0.32

 
$
0.04

 
$
0.36

Diluted
 
$
0.32

 
$
0.04

 
$
0.36

Weighted average number of common shares outstanding:
 
 
 
 
 
 
Basic
 
17,216

 
—

 
17,216

Diluted
 
17,349

 
—

 
17,349


In the third quarter of 2018, ASC 606 had a negative impact to net sales of $1.1 million primarily due to tooling sales. However, ASC 606 had a positive impact to gross profit of $1.0 million as tooling sales had a minimal effect on gross profit. ASC 606 resulted in lower tooling net sales and cost of sales of approximately $5.0 million as tooling projects, with minimal gross profit and over time revenue recognition under ASC 606, were closed and invoiced to customers. The gross profit effect of $1.0 million was due to over time non-tooling sales recognized in the third quarter under ASC 606 of approximately $3.9 million at a gross profit of approximately $1.0 million.


 
 
Nine Months Ended September 30, 2018
In thousands
 
Results Without Adoption of ASC606
 
Effect of Change
Higher (Lower)
 
As Reported
 
 
 
 
 
Net sales
 
$
569,160

 
$
6,799

 
$
575,959

Cost of sales
 
459,728

 
5,458

 
465,186

Gross profit
 
109,432

 
1,341

 
110,773

Selling, product development and administrative expenses
 
74,755

 
—

 
74,755

Operating income
 
34,677

 
1,341

 
36,018

Interest expense
 
2,617

 
—

 
2,617

Other income, net
 
(93
)
 
—

 
(93
)
Income before income taxes
 
32,153

 
1,341

 
33,494

Income tax expense
 
5,567

 
287

 
5,854

Income from equity method investment
 
(120
)
 
—

 
(120
)
Net income
 
$
26,706

 
$
1,054

 
$
27,760

Earnings per share:
 
 
 
 
 
 
Basic
 
$
1.55

 
$
0.06

 
$
1.61

Diluted
 
$
1.54

 
$
0.06

 
$
1.60

Weighted average number of common shares outstanding:
 
 
 
 
 
 
Basic
 
17,189

 
—

 
17,189

Diluted
 
17,339

 
—

 
17,339
Schedule of Disaggregation of Revenue by Geographical Location
Disaggregated revenue by geographical region for the quarter and nine months ended September 30, 2018 were as follows:

 
 
Quarter Ended September 30, 2018
In thousands
 
Performance Materials
 
Technical Nonwovens
 
Thermal Acoustical Solutions
 
Eliminations and Other
 
Consolidated Net Sales
 
 
 
 
 
 
 
 
 
 
 
North America
 
$
29,048

 
$
44,092

 
$
58,484

 
$
(4,891
)
 
$
126,733

Europe
 
12,120

 
18,757

 
24,183

 
(225
)
 
54,835

Asia
 
552

 
10,222

 
5,544

 
—

 
16,318

Total Net Sales
 
$
41,720

 
$
73,071

 
$
88,211

 
$
(5,116
)
 
$
197,886


 
 
Nine Months Ended September 30, 2018
In thousands
 
Performance Materials
 
Technical Nonwovens
 
Thermal Acoustical Solutions
 
Eliminations and Other
 
Consolidated Net Sales
 
 
 
 
 
 
 
 
 
 
 
North America
 
$
69,088

 
$
128,788

 
$
190,385

 
$
(19,249
)
 
$
369,012

Europe
 
34,007

 
56,197

 
76,753

 
(580
)
 
166,377

Asia
 
552

 
27,339

 
12,679

 
—

 
40,570

Total Net Sales
 
$
103,647

 
$
212,324

 
$
279,817

 
$
(19,829
)
 
$
575,959