Reportable Segments and Geographic Data

12 Months Ended

Dec. 31, 2011

Reportable Segments and Geographic Data [Abstract]

Reportable Segments and Geographic Data

3. 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 source of our reportable segments.

The accounting policies of the segments are the same as those described in Note 1. We do not allocate research costs and corporate headquarters expenses to the segments because the decision-making for the majority of these expenses does not reside within the segments. Corporate headquarters (unallocated) expenses include wages and benefits for headquarters personnel, costs related to information systems development and support, and professional fees related to legal, audit, and other activities.

During the third quarter of 2011, we announced plans to combine our Paper Machine Clothing and Engineered Fabrics operating and reporting segments into a single business segment. The combined segment will be referred to in future reports as "Machine Clothing". This report presents separate segment results for Paper Machine Clothing and Engineered Fabrics through December 31, 2011, by which date these two groups had become fully integrated.

The Paper Machine Clothing segment includes paper machine clothing and process belts used in the manufacture of paper and paperboard. We design, manufacture, and market Paper Machine Clothing for each section of the paper machine. We manufacture and sell more paper machine clothing worldwide than any other company. Paper Machine Clothing consists of large continuous belts of custom-designed and custom-manufactured engineered fabrics that are installed on paper machines and carry the paper stock through each stage of the paper production process. Paper Machine Clothing is a consumable product of technologically sophisticated design that utilizes polymeric materials in a complex structure.

The Engineered Fabrics segment derived its revenue from various industries that use fabrics and belts for industrial applications other than the manufacture of paper and paperboard. Product lines within this segment include nonwovens, which includes fabrics and belts used in the manufacture of diapers as well as personal care and household wipes, markets that are adjacent to the paper industry, and the building products market.

The AEC segment serves primarily the aerospace industry, with custom-designed composite and advanced composite parts for static and dynamic applications. AEC leverages our core competencies in advanced textiles and materials, including specialty materials and composite structures for aircraft and other applications.

The PrimaLoft segment includes sales of insulation for outdoor clothing, gloves, footwear, sleeping bags, and home furnishings. The segment has operations in the United States, Europe, and Asia.

The following tables show data by reportable segment, reconciled to consolidated totals included in the financial statements:

(in thousands)	2011	2010	2009
Net sales
Paper Machine Clothing	$657,569	$623,555	$609,897
Engineered Fabrics	81,642	77,465	74,908
Engineered Composites	48,076	41,867	33,824
PrimaLoft® Products	27,409	22,882	18,992
Consolidated total	$814,696	$765,769	$737,621
Depreciation and amortization
Paper Machine Clothing	45,831	43,979	49,864
Engineered Fabrics	2,350	5,057	5,902
Engineered Composites	4,959	4,277	4,591
PrimaLoft® Products	391	373	427
Research and Unallocated expenses	10,672	7,131	7,055
Consolidated total	$64,203	$60,817	$67,839
Operating income/(loss)
Paper Machine Clothing	$165,528	$156,561	$42,624
Engineered Fabrics	11,230	9,101	3,047
Engineered Composites	(4,204)	(9,176)	(6,653)
PrimaLoft® Products	8,540	6,610	3,689
Research expense	(29,007)	(26,064)	(23,849)
Unallocated expenses	(69,014)	(65,747)	(54,984)
Operating income/(loss) before reconciling items	83,073	71,285	(36,126)
Reconciling items:
Interest income	2,027	1,165	741
Interest expense	(20,148)	(18,405)	(21,368)
Other income/(expense), net	(2,720)	884	49,700
Consolidated income/(loss) from continuing operations before income taxes	$62,232	$54,929	($7,053)

The table below presents restructuring costs by reportable segment (also see Note 5):

(in thousands)	2011	2010	2009
Paper Machine Clothing	$3,260	$3,705	$66,941
Engineered Fabrics	2,420	1,057	4,311
Engineered Composites	57	930	291
PrimaLoft® Products	-	-	61
Unallocated expenses	3,580	(1,945)	(3,430)
Consolidated total	$9,317	$3,747	$68,174

In the measurement of invested capital utilized by each reportable segment, we include accounts receivable, inventories, net property, plant and equipment, intangibles and goodwill. Excluded from invested capital are cash, tax related assets, prepaids and other current assets, investments in associated companies, other assets, and assets from discontinued businesses. The following table presents invested capital and capital expenditures by reportable segment:

(in thousands)	2011	2010	2009
Invested capital
Paper Machine Clothing	$667,189	$702,547	$742,662
Engineered Fabrics	45,953	70,588	78,234
Engineered Composites	80,916	74,332	68,088
PrimaLoft® Products	5,747	5,154	6,259
Reconciling items:
Cash	118,909	117,925	94,139
Income taxes receivable and deferred	164,654	179,535	183,929
Investment in associated companies	879	858	900
Other assets	34,670	29,913	72,418
Assets of discontinued operations	112,011	97,441	98,520
Consolidated total assets	$1,230,928	$1,278,293	$1,345,149
Capital expenditures and purchased software
Paper Machine Clothing	$8,167	$18,629	$28,178
Engineered Fabrics	2,974	605	1,330
Engineered Composites	9,684	6,559	7,549
PrimaLoft® Products	76	91	36
Research and Unallocated	6,603	5,164	4,770
Consolidated total	$27,504	$31,048	$41,863

Additionally, capital expenditures in the discontinued Albany Door segment were $1.2 million in 2011, $0.6 million in 2010, and $0.6 million in 2009.

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.

(in thousands)	2011	2010	2009
Net sales
United States	$324,143	$312,590	$305,630
Switzerland	245,562	223,443	212,544
Brazil	61,493	61,410	57,745
Canada	40,422	36,804	37,709
China	34,977	25,171	14,558
Other countries	108,099	106,351	109,435
Consolidated total	$814,696	$765,769	$737,621
Property, plant and equipment, at cost, net
United States	$134,078	$141,037	$148,578
China	126,072	133,851	135,239
Other countries	62,208	71,387	86,126
Korea	34,102	40,473	34,556
Canada	29,650	34,149	38,329
United Kingdom	27,196	28,425	31,021
Sweden	26,210	32,630	33,591
Consolidated total	$439,516	$481,952	$507,440