Restructuring

12 Months Ended

Dec. 31, 2020

Restructuring and Related Activities [Abstract]

In 2020, AEC reduced its workforce at various locations, principally in the United States, leading to restructuring charges of $2.8 million.

In 2017, the Company announced a proposal to discontinue operations at its MC production facility in Sélestat, France. The restructuring program was driven by the Company’s need to balance manufacturing capacity with demand. During 2017, we incurred $1.1 million of restructuring expense associated with this proposal but were unable to reasonably estimate the total costs for severance and other charges associated with the proposal as there was no assurance, at that time, that approval for the proposal would be obtained. In 2018, the plan was approved by the French Labor Ministry which led to restructuring expense of $10.7 million in 2018, which included severance and outplacement costs for the approximately 50 positions that were terminated under this plan. In 2019, restructuring charges were $0.9 million. In 2020, restructuring charges were $1.2 million. Since 2017, we have recorded $13.9 million of restructuring charges related to this action.

In 2018, the Company discontinued certain manufacturing processes at its AEC facility in Salt Lake City, Utah, which resulted in $1.9 million of restructuring in 2018, which included a non-cash restructuring charge of $1.7 million, and an additional $0.2 million for severance. The non-cash restructuring charge resulted from writing down manufacturing equipment used in that line of business to its estimated value. In 2019, the Company wrote off the remaining $1.2 million book value of that equipment as the Company was unable to sell it. To date, we have recorded $3.1 million of restructuring charges related to these actions.

The following table summarizes charges reported in the Consolidated Statements of Income under “Restructuring expenses, net”:


Year ended December 31, 2020 (In thousands)	Total restructuring costs incurred		Termination and other costs		Impairment of assets
Machine Clothing	$	2,746	$	2,746	$	—
Albany Engineered Composites	2,821		2,821		—
Corporate expenses	169		169		—
Total	$	5,736	$	5,736	$	—


Year ended December 31, 2019 (In thousands)	Total restructuring costs incurred		Termination and other costs		Impairment of assets
Machine Clothing	$	1,129	$	667	$	462
Albany Engineered Composites	1,833		659		1,174
Corporate expenses	(57)		(57)		—
Total	$	2,905	$	1,269	$	1,636


Year ended December 31, 2018 (In thousands)	Total restructuring costs incurred		Termination and other costs		Impairment of assets
Machine Clothing	$	12,278	$	11,890	$	388
Albany Engineered Composites	3,048		1,286		1,762
Corporate expenses	244		244		—
Total	$	15,570	$	13,420	$	2,150

We expect that approximately $1.9 million of Accrued liabilities for restructuring at December 31, 2020 will be paid within one year and approximately $0.3 million will be paid the following year.

The table below presents the changes in restructuring liabilities for 2020 and 2019, all of which related to termination costs:


(in thousands)	December 31, 2019		Restructuring charges accrued		Payments		Currency translation/other		December 31, 2020
Total termination and other costs	$	2,042	$	5,736	$	(5,668)	$	85	$	2,195


(in thousands)	December 31, 2018		Restructuring charges accrued		Payments		Currency translation/other		December 31, 2019
Total termination and other costs	$	5,570	$	1,269	$	(5,084)	$	287	$	2,042