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Noncontrolling Interest
 12 Months Ended
Dec. 31, 2023
Noncontrolling Interest [Abstract]  
Noncontrolling Interest 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 in accordance with agreed upon scope parameters defined between both companies, 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.
The Company also owns 85 percent of Arcari, SRL ("Arcari"), a manufacturer of textile and plastic industrial technical products and conveyor belts, which is a subsidiary of Heimbach GmbH, the paper machine clothing
manufacturer recently acquired by the Company and reported within the MC segment. On August 31, 2023, the date of the Heimbach acquisition, the fair value of the noncontrolling interest in Arcari was $0.5 million. Net income/(loss) attributable to Arcari's noncontrolling interest was less than $0.1 million during 2023.
The table below presents a reconciliation of income attributable to the noncontrolling interest and noncontrolling equity in the Company’s subsidiaries:
ASC Noncontrolling Interest:
(in thousands, except percentages)
20232022
Net income/(loss) of Albany Safran Composites (ASC)$6,036 $8,720 
Less: Return attributable to the Company's preferred holding
1,300 1,262 
Net income/(loss) of ASC available for common ownership$4,736 $7,458 
Ownership percentage of noncontrolling shareholder
10 %10 %
Net income/(loss) attributable to noncontrolling interest$474 $746 
Noncontrolling interest, beginning of year
$4,494 $3,638 
Net income/(loss) attributable to noncontrolling interest
474 746 
Changes in other comprehensive income attributable to noncontrolling interest
455 110 
ASC noncontrolling interest, end of year
$5,423 $4,494 
Arcari Noncontrolling Interest:
(in thousands, except percentages)
20232022
Initial equity related to Noncontrolling interest in Arcari
509 — 
Net income attributable to noncontrolling interest
16 — 
Changes in other comprehensive income attributable to noncontrolling interest
4 — 
Arcari noncontrolling interest, end of year
$529 $— 
Total noncontrolling interest, end of year
$5,952 $4,494