Reportable Segments

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Reportable Segments

3. Reportable Segments

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

	Three months ended March 31,
(in thousands)	2016		2015
Net sales
Machine Clothing	$145,264		$158,494
Albany Engineered Composites	27,067		22,830
Consolidated total	$172,331		$181,324
Operating income/(loss)
Machine Clothing	$37,139		$35,689
Albany Engineered Composites	(3,706	)	(3,811	)
Corporate expenses	(11,164	)	(11,729	)
Operating income	22,269		20,149
Reconciling items:
Interest income	(126	)	(340	)
Interest expense	2,364		3,016
Other income, net	(328	)	(3,285	)
Income before income taxes	$20,359		$20,758

There were no material changes in the total assets of the reportable segments during this period. Total capital expenditures for the first quarter of 2016 were $10.9 million, including amounts that were included in Accounts payable. In the Consolidated Statements of Cash Flows, capital expenditures and accounts payable were each adjusted by $2.9 million to reflect the non-cash nature of that amount.

During the first quarter of 2016, the Company recorded expenses of $1.6 million for acquisition related costs incurred during the period. These costs are included in Selling, general and administrative expenses of the AEC segment.

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

	Three months ended March 31,
(in thousands)	2016		2015
Restructuring expenses, net
Machine Clothing	$698		$9,001
Albany Engineered Composites	-		-
Corporate expenses	(19	)	-
Consolidated total	$679		$9,001

During the first quarter of 2016 the Company announced the initiation of discussions with the employee Works Council regarding a proposal to discontinue R&D activities at its Machine Clothing production facility in Sélestat, France. The Company is unable to determine the restructuring costs associated with this proposal. See Note 5 for additional information.

Machine Clothing restructuring costs in 2016 and 2015 were principally related to ongoing plant closure costs in Göppingen, Germany.