Reportable Segments

6 Months Ended

Jun. 30, 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 these segments.  Substantially all research and development expenses are now 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 are now included in segment operating expenses. Additionally, the amounts previously referred to as "Unallocated expenses," is now 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 reflect 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 June 30,		Six months ended June 30,
(in thousands)	2014	2013	2014	2013
Net sales
Machine Clothing	$172,809	$177,536	$336,897	$344,946
Albany Engineered Composites	20,709	20,438	36,928	39,682
Consolidated total	$193,518	$197,974	$373,825	$384,628
Operating income/(loss)
Machine Clothing	$33,879	$14,821	$70,022	$52,377
Albany Engineered Composites	(3,545)	(4,678)	(7,021)	(9,081)
Corporate expenses	(11,357)	(13,656)	(23,423)	(24,291)
Operating income/(loss) before reconciling items	18,977	(3,513)	39,578	19,005
Reconciling items:
Interest income	(356)	(300)	(552)	(600)
Interest expense	3,073	3,847	6,187	8,172
Other expense/ (income), net	(2,133)	2,211	(2,600)	2,945
Income/(loss) before income taxes	$18,393	($9,271)	$36,543	$8,488

 

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

	Three months ended June 30,		Six months ended June 30,
(in thousands)	2014	2013	2014	2013
Restructuring expense
Machine Clothing	$1,297	$24,230	$2,159	$24,423
Albany Engineered Composites	660	91	980	534
Consolidated total	$1,957	$24,321	$3,139	$24,957

Machine Clothing restructuring expense was principally related to the reduction in manufacturing capacity at the production facilities in France. Restructuring expenses in the Albany Engineered Composites operations were principally related to organizational changes and exiting certain aerospace programs.

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