Reportable Segments

3 Months Ended

Mar. 31, 2014

Reportable Segments [Abstract]

Reportable Segments

3. Reportable Segments

Effective January 1, 2014, Albany International Corp. (the "Company)  changed its business segment reporting by recasting, for all prior periods, certain expenses previously identified as Research and Unallocated expenses to existing segments.  The Company has two reportable segments: Machine Clothing (MC) and Albany Engineered Composites (AEC), and had Research and Unallocated expenses that were not allocated to the segments.  Substantially all research and development expenses will now be included in segment operating expenses. Prior to this change, Unallocated expenses included long-term incentive compensation for all Company employees.  To the extent such programs are related to MC and AEC employees, such expenses will now be included in segment operating expenses. Additionally, the segment previously referred to as Unallocated expenses, will now be referred to as Corporate expenses.  These changes are being made to be consistent with how the chief operating decision maker assesses Company performance.  On April 10, 2014, we filed a Form 8-K to show the effect of these changes on previously reported results and, accordingly, the 2013 segment results in this report include the effect of this change.

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

	Three months ended March 31,
(in thousands)	2014		2013
Net sales
Machine Clothing	$164,088		$167,409
Albany Engineered Composites	16,219		19,245
Consolidated total	$180,307		$186,654
Operating income/(loss)
Machine Clothing	$36,142		$37,556
Albany Engineered Composites	(3,475	)	(4,403	)
Corporate expenses	(12,066	)	(10,635	)
Operating income before reconciling items	20,601		22,518
Reconciling items:
Interest income	(196	)	(299	)
Interest expense	3,114		4,324
Other expense /(income), net	(467	)	734
Income from continuing operations before income taxes	$18,150		$17,759

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

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

The 2014 restructuring expense was principally related to the restructuring activities in the MC France production facilities. 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.

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