5. Restructuring

During the first quarter of 2015, the Company announced a plan to discontinue manufacturing operations at its press fabric manufacturing facility in Göppingen, Germany. The restructuring program was driven by the Company's need to balance manufacturing capacity with demand. In April 2015, we reached agreement on the restructuring plan with the Works Council and manufacturing operations discontinued during the second quarter. Approximately 50 employees were terminated under this plan, and the restructuring expense recorded in 2015 reflects our estimate of the severance costs. It is possible that we will incur additional charges for impairment of property, plant and equipment, but no impairment is presently determinable. Whereas the affected employees were related to manufacturing operations, cost savings associated with this action were recorded in Cost of goods sold.

Machine Clothing restructuring costs in 2014 were principally related to restructuring actions in France. Albany Engineered Composites restructuring expense in 2014 was related to organizational changes.

The following table summarizes charges reported in the Statements of Income under “Restructuring expenses, net”:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2015		2014		2015		2014
Machine Clothing	$	1,211	$	1,297	$	10,212	$	2,159
Albany Engineered Composites		-		660		-		980
Total	$	1,211	$	1,957	$	10,212	$	3,139

Six months ended June 30, 2015 (in thousands)	Total restructuring costs incurred		Termination and other costs		Impairment of plant and equipment		Benefit plan curtailment/ settlement
Machine Clothing	$	10,212	$	10,212	$	-	$	-
Albany Engineered Composites		-		-		-		-
Total	$	10,212	$	10,212	$	-	$	-

Six months ended June 30, 2014 (in thousands)		Total restructuring costs incurred		Termination and other costs		Impairment of plant and equipment		Benefit plan curtailment/ settlement
Machine Clothing	$	2,159	$	2,869	$	-	$	(710	)
Albany Engineered Composites		980		320		660		-
Total	$	3,139	$	3,189	$	660	$	(710	)

We expect that substantially all Accrued liabilities for restructuring will be paid within one year. The table below presents year-to-date changes in restructuring liabilities for 2015 and 2014, all of which related to termination costs:

					Restructuring					Currency
(in thousands)		December 31, 2014			charges accrued		Payments			translation/ other			June 30, 2015

Total termination costs	$	1,874		$	10,212	$	(9,229	)	$	(192	)	$	2,665

					Restructuring					Currency
(in thousands)			December 31, 2013		charges accrued		Payments			translation/ other			June 30, 2014

Total termination costs	$	9,656		$	3,189	$	(8,675	)	$	(144	)	$	4,026