XML 23 R10.htm IDEA: XBRL DOCUMENT v3.22.0.1
Reportable Segments and Geographic Data
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Reportable Segments and Geographic Data Reportable Segments and Geographic Data
In accordance with applicable disclosure guidance for enterprise segments and related information, the internal organization that is used by management for making operating decisions and assessing performance is used as the basis for our reportable segments.
The accounting policies of the segments are the same as those described in Note 1. Corporate expenses include wages and benefits for corporate headquarters personnel, costs related to information systems development and support, and professional fees related to legal, audit, and other activities. These costs are not allocated to the reportable segments because the decision-making for these functions lies outside of the segments.
Machine Clothing:
The Machine Clothing (“MC”) segment supplies permeable and impermeable belts used in the manufacture of paper, paperboard, tissue and towel, pulp, nonwovens, fiber cement and several other industrial applications. We sell our MC products directly to customer end-users in countries across the globe. Our products, manufacturing processes, and distribution channels for MC are substantially the same in each region of the world in which we operate.
We design, manufacture, and market paper machine clothing (used in the manufacturing of paper, paperboard, tissue and towel) for each section of the paper machine and for every grade of paper. Paper machine clothing products are customized, consumable products of technologically sophisticated design that utilize polymeric materials in a complex structure.
Albany Engineered Composites:
The Albany Engineered Composites (“AEC”) segment, provides highly engineered, advanced composite structures to customers in the commercial and defense aerospace industries. The segment includes Albany Safran Composites, LLC (“ASC”), in which our customer, SAFRAN Group, owns a 10 percent noncontrolling interest, AEC, through ASC, is the exclusive supplier to the LEAP program of advanced composite fan blades and fan cases under a long-term supply contract. The LEAP engine is used on the Airbus A320neo and Boeing 737 MAX family of jets. AEC’s largest aerospace customer is the SAFRAN Group and sales to SAFRAN (consisting primarily of fan blades and
cases for CFM’s LEAP engine) accounted for approximately 12 percent of the Company’s consolidated Net sales in 2021. In 2021, Safran leased manufacturing space from AEC for the GE9X program. Rent paid by Safran under this lease amounted to $0.9 million in both 2021 and 2020. AEC Net sales to Safran were $111.6 million in 2021, $99.0 million in 2020, and $226.8 million in 2019. The total of Accounts receivable, Contract assets and Noncurrent receivable due from Safran amounted to $79.6 million and $127.1 million as of December 31, 2021 and 2020, respectively.
Other significant programs served by AEC include the F-35, Boeing 787, Sikorsky CH-53K, and JASSM programs. AEC also supplies vacuum waste tanks for the Boeing 7-Series programs, and specialty components for the Rolls Royce lift fan on the F-35, as well as the fan case for the GE9X engine. In 2021, approximately 47 percent of AEC sales were related to U.S. government contracts or programs.
The following tables show data by reportable segment, reconciled to consolidated totals included in the financial statements:
(in thousands)
202120202019
Net Sales
Machine Clothing
$619,015 $572,955 $601,254 
Albany Engineered Composites
310,225 327,655 452,878 
Consolidated total
$929,240 $900,610 $1,054,132 
Depreciation and amortization
Machine Clothing
20,191 20,304 21,875 
Albany Engineered Composites
50,402 48,496 44,670 
Corporate expenses
3,662 3,905 4,250 
Consolidated total
$74,255 $72,705 $70,795 
Operating income/(loss)
Machine Clothing
215,654 190,805 191,965 
Albany Engineered Composites
16,160 31,536 55,520 
Corporate expenses
(53,803)(56,261)(53,909)
Operating income
$178,011 $166,080 $193,576 
Reconciling items:
Interest income
(2,500)(2,748)(2,729)
Interest expense
17,391 16,332 19,650 
AMJP grant(5,832)— — 
Other expense, net
3,021 13,422 (1,557)
Income before income taxes
$165,931 $139,074 $178,212 
The table below presents restructuring costs by reportable segment (also see Note 5):
(in thousands)
202120202019
Restructuring expenses, net
Machine Clothing
$1,202 $2,746 $1,129 
Albany Engineered Composites
32 2,821 1,833 
Corporate expenses
97 169 (57)
Consolidated total
$1,331 $5,736 $2,905 
In the measurement of assets utilized by each reportable segment, we include Inventories, Accounts receivable, net, Contract assets, net, Noncurrent receivables, net, Property, plant and equipment, net, Intangibles, net and
Goodwill. On November 20, 2019, the Company acquired CirComp GmbH, resulting in a $35.3 million increase in AEC assets.
The following table presents assets and capital expenditures by reportable segment:
(in thousands)
202120202019
Segment assets
Machine Clothing
$459,182 $443,476 $441,072 
Albany Engineered Composites
652,702 713,955 693,799 
Reconciling items:
Cash
302,036 241,316 195,540 
Income taxes prepaid, receivable and deferred
28,334 44,697 57,783 
Prepaid and Other assets
113,810 106,492 86,174 
Consolidated total assets
$1,556,064 $1,549,936 $1,474,368 
Capital expenditures and purchased software
Machine Clothing
$20,177 $15,792 $16,707 
Albany Engineered Composites
31,012 23,718 48,753 
Corporate2,510 2,880 2,495 
Consolidated total
$53,699 $42,390 $67,955 
The following table shows data by geographic area. Net sales are based on the location of the operation recording the final sale to the customer. Net sales recorded by our entity in Switzerland are derived from products sold throughout Europe and Asia, and are invoiced in various currencies.
(in thousands)
202120202019
Net sales
United States
$497,231 $503,473 $574,063 
Switzerland
128,698 128,328 146,571 
France68,929 55,914 91,783 
China67,098 57,007 48,586 
Brazil62,925 60,259 64,666 
Mexico
37,547 39,859 73,039 
Other countries
66,812 55,770 55,424 
Consolidated total
$929,240 $900,610 $1,054,132 
Property, plant and equipment, at cost, net
United States
$258,453 $263,201 $275,965 
China41,039 40,898 41,799 
Mexico40,699 41,738 45,640 
France33,802 41,107 43,986 
Canada14,139 9,672 9,509 
Sweden12,355 12,109 8,652 
United Kingdom10,156 10,731 11,047 
Germany9,652 10,808 10,577 
Other countries
16,122 18,290 19,287 
Consolidated total
$436,417 $448,554 $466,462