5. Restructuring

During the second quarter of 2013, the Company commenced a program to restructure operations at the Company's Machine Clothing production facilities in France. The restructuring, when completed, will have reduced employment by approximately 200 positions at these locations. As of March 31, 2014, approximately 180 positions had been eliminated.

Under the terms of the restructuring plan, the Company provides training, outplacement and other benefits, the costs of which are recorded as restructuring when they are incurred. In the first quarter of 2014, the Company recorded a curtailment gain of $0.5 million related to the elimination of pension accruals, which reduced net restructuring expense as reflected in the table below. Such curtailment gains are recorded as employees terminate employment and, accordingly, we expect to record additional gains during 2014. The total amount of such gains has not yet been determined, but we expect it to be less than the first quarter gain. Remaining costs for this program, net of curtailment gains, are expected to be between $2 to $4 million, most of which we expect to be incurred in 2014. We expect the annual cost savings associated with this restructuring to be approximately $10 million. Whereas most of the affected employees were involved in the production process, the full effect of the cost savings associated with this restructuring program will not be fully realized until mid-2014.

Restructuring expenses in the Albany Engineered Composites operations were principally related to organizational changes in 2013 and 2014, and exiting certain aerospace programs in 2013.

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


	Three months ended March 31,
(in thousands)	2014	2013
Machine Clothing	$862	$193
Albany Engineered Composites	320	443
Total	$1,182	$636


Three months ended March 31, 2014	Total restructuring costs incurred	Termination and other costs	Impairment of plant and equipment	Benefit plan curtailment/ settlement
(in thousands)	Total restructuring costs incurred	Termination and other costs	Impairment of plant and equipment	Benefit plan curtailment/ settlement
Machine Clothing	$862	$1,355	$-	($493)
Albany Engineered Composites	320	320	-	-
Total	$1,182	$1,675	$-	($493)


Three months ended March 31, 2013	Total restructuring costs incurred	Termination and other costs	Impairment of plant and equipment	Benefit plan curtailment/ settlement
(in thousands)	Total restructuring costs incurred	Termination and other costs	Impairment of plant and equipment	Benefit plan curtailment/ settlement
Machine Clothing	$193	$193	$-	$-
Albany Engineered Composites	443	353	90	-
Total	$636	$546	$90	$-


	December 31,	Restructuring		Currency	March 31,
(in thousands)	2013	charges accrued	Payments	translation/other	2014

Termination costs	$9,656	$1,182	($4,633)	$481	$6,686

Total	$9,656	$1,182	($4,633)	$481	$6,686

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 2014 and 2013 all of which related to termination costs:


	December 31,	Restructuring		Currency	March 31,
(in thousands)	2012	charges accrued	Payments	translation/other	2013

Termination costs	$4,947	$636	($1,716)	$71	$3,938

Total	$4,947	$636	($1,716)	$71	$3,938