Restructuring

6 Months Ended

Jun. 30, 2016

Restructuring and Related Activities [Abstract]

Restructuring

5. Restructuring

During the first quarter of 2016 the Company announced the initiation of discussions with the relevant employee Works Council regarding a proposal to discontinue R&D activities at its Machine Clothing production facility in Sélestat, France. In May 2016, we reached agreement with the Works Council on the restructuring plan, and R&D activities are expected to discontinue during the third quarter of 2016. Approximately 25 positions will be terminated under this plan, and we recorded $2.4 million of restructuring expense in the second quarter 2016 as our estimate of the cost for severance, outplacement, and the write-off of equipment. Cost savings associated with this action will reduce research and development expenses in future periods.

Machine Clothing restructuring charges for the second quarter of 2016 also include $1.8 million for the relocation of equipment from our former manufacturing facility in Germany.

Albany Engineered Composites restructuring expenses in 2016 were principally related to the consolidation of the Company’s legacy programs into Boerne, Texas.

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

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

	Three months ended June 30,		Six months ended June 30,
(in thousands)	2016	2015	2016	2015
Machine Clothing	$5,434	$1,211	$6,132	$10,212
Albany Engineered Composites	1,147	-	1,147	-
Corporate Expenses	67	-	48	-
Total	$6,648	$1,211	$7,327	$10,212

Six months ended June 30,2016	Total restructuring costs incurred	Termination and other costs	Impairment of plant and equipment
(in thousands)
Machine Clothing	$6,132	$5,832	$300
Albany Engineered Composites	1,147	921	226
Corporate Expenses	48	48	-
Total	$7,327	$6,801	$526

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

We expect that approximately $10.2 million of Accrued liabilities for restructuring at June 30, 2016 will be paid within one year and approximately $2.0 million will be paid in the following year. The table below presents the year-to-date changes in restructuring liabilities for 2016 and 2015, all of which related to termination costs:

	December 31,	Restructuring		Currency	June 30,
(in thousands)	2015	charges accrued	Payments	translation /other	2016
Total termination costs	$10,177	$6,801	($6,835)	$13	$10,156

	December 31,	Restructuring		Currency	June 30,
(in thousands)	2014	charges accrued	Payments	translation /other	2015
Total termination costs	$1,874	$10,212	($9,229)	($192)	$2,665