Reportable Segments

9 Months Ended

Sep. 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 September 30,		Nine months ended September 30,
(in thousands)	2013	2012	2013	2012
Net sales
Machine Clothing (MC)	$162,864	$177,471	$507,809	$518,881
Engineered Composites (AEC)	20,283	17,118	59,966	47,725
Consolidated total	$183,147	$194,589	$567,775	$566,606
Operating income/(loss)
Machine Clothing	$33,196	$44,918	$96,803	$120,760
Engineered Composites	(572)	(312)	(4,460)	(653)
Research expense	(7,418)	(6,734)	(22,082)	(20,052)
Unallocated expenses	(11,951)	(14,760)	(38,001)	(163,856)
Operating income/(loss) before reconciling items	13,255	23,112	32,260	(63,801)
Reconciling items:
Interest income	(351)	(395)	(951)	(1,000)
Interest expense	3,835	4,392	12,007	13,610
Other expense/ (income), net	2,692	3,069	5,637	5,062
Income/(loss) from continuing operations before income taxes	$7,079	$16,046	$15,567	($81,473)

The table below presents charges related to a 2012 initiative to settle pension liabilities and restructuring costs by reportable segment (also see Note 5):

	Three months ended September 30,				Nine months ended September 30,
(in thousands)	2013		2012		2013		2012
Pension settlement
Unallocated expenses	$	-	$	-	$	-	$	119,735
Restructuring expense
Machine Clothing	$2,250		$2,739		$26,673		$6,315
Engineered Composites	6		-		540		-
Unallocated expenses	-		-		-		(166)
Consolidated total	$2,256		$2,739		$27,213		$6,149

Substantially all of the restructuring charges recorded during the first nine months 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 fourth quarter of 2013. The restructuring program was driven by the Company's need to balance manufacturing capacity and demand.

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.

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