Reportable Segments and Geographic Data

12 Months Ended

Dec. 31, 2014

Reportable Segments and Geographic Data [Abstract]

Reportable Segments and Geographic Data

4. Reportable Segments and Geographic Data

In accordance with applicable disclosure guidance for enterprise segments and related information, the internal organization that is used by management for making operating decisions and assessing performance is used as the basis for our reportable segments.

The accounting policies of the segments are the same as those described in Note 1. Corporate expenses include wages and benefits for Corporate headquarters personnel, costs related to information systems development and support, and professional fees related to legal, audit, and other activities. These costs are not allocated to the reportable segments because the decision-making for these functions lies outside of the segments.

Machine Clothing:

The Machine Clothing segment supplies permeable and impermeable belts used in the manufacture of paper, paperboard, nonwovens, fiber cement and several other industrial applications. The Machine Clothing segment also supplies customized, consumable fabrics used in the manufacturing process in the pulp, corrugator, nonwovens, fiber cement, building products, and tannery and textile industries. We sell our Machine Clothing products directly to customer end-users. Our products, manufacturing processes, and distribution channels for Machine Clothing are substantially the same in each region of the world in which we operate.

We design, manufacture, and market paper machine clothing for each section of the paper machine and for every grade of paper Paper machine clothing products are customized, consumable products of technologically sophisticated design that utilize polymeric materials in a complex structure.

Albany Engineered Composites:

The Albany Engineered Composites segment (AEC), including Albany Safran Composites, LLC (ASC), in which our customer SAFRAN Group owns a 10 percent noncontrolling interest, provides highly engineered, advanced composite structures based on proprietary technology to customers in the aerospace and defense industries. AEC's largest program relates to CFM International's LEAP engine, which is scheduled to enter into service in 2016. Under this program, AEC through ASC, is the exclusive supplier of advanced composite fan blades and cases under a long-term supply contract. In 2014, approximately 20 percent of AEC sales were related to U.S. government contracts or programs.

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

(in thousands)	2014	2013	2012
Net Sales
Machine Clothing	$655,026	$674,747	$693,176
Albany Engineered Composites	90,319	82,667	67,765
Consolidated total	$745,345	$757,414	$760,941
Depreciation and amortization
Machine Clothing	45,066	46,521	48,052
Albany Engineered Composites	10,880	8,460	5,963
Corporate expenses	8,346	8,808	9,052
Consolidated total	$64,292	$63,789	$63,067
Operating income/(loss)
Machine Clothing	136,450	114,370	143,358
Albany Engineered Composites	(10,483)	(14,404)	(10,918)
Corporate expenses	(54,607)	(47,875)	(176,576)
Operating income/(loss) before reconciling items	$71,360	$52,091	($44,136)
Reconciling items:
Interest income	(1,541)	(1,468)	(1,517)
Interest expense	12,254	15,227	18,118
Other expense/(income),net	(6,853)	7,256	7,629
Income/(loss) from continuing operations before income taxes	$67,500	$31,076	($68,366)

The table below presents pension settlement and restructuring costs by reportable segment (also see Note 6):

(in thousands)	2014	2013	2012
Pension settlement
Corporate expenses	$8,190	$ -	$119,735
Restructuring expense
Machine Clothing	$4,828	$24,568	$7,386
Albany Engineered Composites	931	540	-
Corporate expenses	-	-	(325)
Consolidated total	$5,759	$25,108	$7,061

In the measurement of assets utilized by each reportable segment, we include accounts receivable, inventories, net property, plant and equipment, intangibles and goodwill. Excluded from segment assets are cash, tax related assets, prepaid and other current assets, and certain other assets not directly associated with segment operations. The following table presents assets and capital expenditures by reportable segment: 

(in thousands)	2014	2013	2012
Segment assets
Machine Clothing	$565,853	$624,388	$660,595
Albany Engineered Composites	175,338	147,104	109,717
Reconciling items:
Cash	179,802	222,666	190,718
Income taxes receivable and deferred	76,283	92,754	105,474
Other assets	32,028	39,245	51,187
Consolidated total assets	$1,029,304	$1,126,157	$1,117,691
Capital expenditures and purchased software
Machine Clothing	$23,202	$22,892	$16,210
Albany Engineered Composites	32,141	36,928	18,979
Corporate expenses	3,530	4,637	2,018
Consolidated total	$58,873	$64,457	$37,207

The decrease in Other assets from 2012 to 2013 includes $16.6 million of receivables related to the sale of discontinued operations which were received during 2013.

The following table shows data by geographic area. Net sales are based on the location of the operation recording the final sale to the customer. Net sales recorded by our entity in Switzerland are derived from products sold throughout Europe and Asia, and are invoiced in various currencies.

(in thousands)	2014	2013	2012
Net sales
United States	$324,750	$338,729	$324,764
Switzerland	184,022	190,035	203,478
Brazil	59,332	62,076	58,755
China	52,822	43,265	39,929
Mexico	27,431	24,938	26,117
France	26,654	21,557	21,487
Other countries	70,334	76,814	86,411
Consolidated total	$745,345	$757,414	$760,941
Property, plant and equipment, at cost, net
United States	$168,848	$162,380	$137,405
China	93,182	103,109	114,037
France	25,091	15,893	12,296
Korea	23,473	35,542	38,266
United Kingdom	22,222	25,246	26,269
Canada	18,236	22,434	27,396
Other countries	44,061	54,226	64,485
Consolidated total	$395,113	$418,830	$420,154