5. Restructuring

During the second quarter of 2013, the Company completed consultations with employee works councils regarding a plan to restructure operations at the Company's Machine Clothing production facilities in Sélestat and St. Junien, France, leading to restructuring charges, primarily for severance and social costs, of $2.0 million for the third quarter and $26.3 million for the nine months ending September 30, 2013. The restructuring program was driven by the Company's need to balance manufacturing capacity and demand, and will result in the reduction of approximately 200 employees, about half of which will leave the Company during the fourth quarter of 2013. Under the terms of the restructuring plan, the Company will also provide training, outplacement and other programs. The costs for those benefits will be recorded as restructuring when they are incurred. The Company expects to record curtailment gains in future quarters related to the elimination of pension accruals. The curtailment gain will be recorded as employees terminate and, accordingly, most of the gain is expected to be recorded in the fourth quarter of 2013, with the balance to be recorded in 2014. The remaining costs for this program, net of the curtailment gain, are expected to be between $4.0 and $6.0 million, and are expected to be recorded over the next several quarters. Whereas most of the affected employees were involved in the production process, the full effect of cost savings associated with the restructuring will not be fully realized until 2014.

Through the first nine 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.

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

The following table summarizes charges reported in the Statements of Income under "Restructuring and other":

	Three months ended September 30,		Nine months ended September 30,
(in thousands)	2013	2012	2013	2012
Machine Clothing	$2,250	$2,739	$26,673	$6,315
Engineered Composites	6	-	540	-
Unallocated expenses	-	-	-	(166)
Total	$2,256	$2,739	$27,213	$6,149

Nine months ended September 30, 2013 (in thousands)	Total restructuring costs incurred	Termination and other costs	Impairment of plant and equipment		Benefit plan curtailment/ settlement
Machine Clothing	$26,673	$26,837	$	-	($164)
Engineered Composites	540	452	88		-
Unallocated expenses	-	-	-		-
Total	$27,213	$27,289	$88		($164)

Nine months ended September 30, 2012 (in thousands)	Total restructuring costs incurred	Termination and other costs	Impairment of plant and equipment		Benefit plan curtailment/ settlement
Machine Clothing	$6,315	$6,315	$	-	$	-
Engineered Composites	-	-	-		-
Unallocated expenses	(166)	380	(546)		-
Total	$6,149	$6,695	($546)		$	-

We expect that substantially all accruals for restructuring liabilities will be paid within one year. The table below presents year-to-date changes in restructuring liabilities for 2013 and 2012 all of which related to termination costs:

(in thousands)	December 31, 2012	Restructuring charges accrued	Payments	Currency translation/other	September 30, 2013
Total	$4,947	$25,860	($5,529)	$609	$25,887

(in thousands)	December 31, 2011	Restructuring charges accrued	Payments	Currency translation/other	September 30, 2012
Total	$6,979	$6,579	($6,395)	$6	$7,169