Reportable Segments

6 Months Ended

Jun. 30, 2013

Reportable Segments [Abstract]

Reportable Segments

3. Reportable Segments

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

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2013		2012		2013		2012
Net sales
Machine Clothing (MC)	$177,536		$177,122		$344,946		$341,410
Engineered Composites (AEC)	20,438		14,818		39,682		30,607
Consolidated total	$197,974		$191,940		$384,628		$372,017
Operating income/(loss)
Machine Clothing	$20,699		$44,997		$63,607		$75,842
Engineered Composites	(1,825	)	(369	)	(3,888	)	(340	)
Research expense	(7,673	)	(7,253	)	(14,664	)	(13,318	)
Unallocated expenses	(14,714	)	(123,379	)	(26,050	)	(149,097	)
Operating income/(loss) before reconciling items	(3,513	)	(86,004	)	19,005		(86,913	)
Reconciling items:
Interest income	(300	)	(522	)	(600	)	(606	)
Interest expense	3,847		4,491		8,172		9,219
Other expense/ (income), net	2,211		(2,555	)	2,945		1,993
Income/(loss) from continuing operations before income taxes	($9,271	)	($87,418	)	$8,488		($97,519	)

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

	Three months ended June 30,		Six months ended June 30,
(in thousands)	2013	2012	2013	2012
Pension settlement
Unallocated expenses	$0	$110,560	$0	$119,735
Restructuring expense
Machine Clothing	$24,230	$2,903	$24,423	$3,576
Engineered Composites	91	-	534	-
Unallocated expenses	-	249	-	(166	)
Consolidated total	$24,321	$3,152	$24,957	$3,410

Substantially all of the restructuring charges recorded in the second quarter of 2013 relate to the completion of consultations with employee works councils in Sélestat and St. Junien, France, which will result in the reduction of approximately 200 employees, most of which will leave the Company during the third quarter of 2013. The restructuring program was driven by the Company's need to balance manufacturing capacity and demand.

Through the first six months of 2013, the Company incurred some restructuring costs in the Engineered Composites segment that were related to organizational changes and exiting certain aerospace programs.

The 2012 restructuring expense was principally due to a reduction in workforce in Sweden and curtailment of manufacturing in New York and Wisconsin which was related to the lower demand for paper machine clothing. Those costs were partially offset by a reduction in accruals related to the Company's headquarters.

There were no material changes in the total assets of the reportable segments during this period.