Restructuring

9 Months Ended

Sep. 30, 2017

Restructuring and Related Activities [Abstract]

Restructuring

5. Restructuring

Machine Clothing restructuring costs for the first nine months of 2017 were principally related to additional costs for restructuring actions taken in 2016. Machine Clothing restructuring costs in 2016 were principally related to plant closure costs in Göppingen, Germany and the cessation of research and development activities at the production facility in Sélestat, France.

In October 2017, the Company announced the initiation of discussions with the local works council regarding a proposal to discontinue operations at its Machine Clothing production facility in Sélestat, France. The consultations are subject to applicable law and are ongoing. At this time, the Company has not recorded any restructuring charge related to this proposal.

AEC incurred restructuring charges of $9.2 million in the first nine months of 2017. In the third quarter of 2017, the Company decided to discontinue the Bear Claw® line of hydraulic fracturing components used in the oil and gas industry, which led to non-cash restructuring charges totaling $4.5 million relating to the impairment of long-lived assets. Other restructuring charges in 2017 principally related to work force reductions in Salt Lake City, Utah and Rochester, New Hampshire.

AEC restructuring expenses in 2016 were principally related to the consolidation of legacy programs into Boerne, Texas.

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

	Three months ended September 30,			Nine months ended September 30,
(in thousands)	2017	2016		2017	2016
Machine Clothing	$96	($212	)	$1,012	$5,921
Albany Engineered Composites	5,407	640		9,208	1,787
Corporate Expenses	-	(102	)	-	(55	)
Total	$5,503	$326		$10,220	$7,653

Nine months ended September 30, 2017	Total restructuring costs incurred	Termination and other costs	Impairment of plant and equipment	Impairment of intangible asset
(in thousands)
Machine Clothing	$1,012	$1,012	$-	$-
Albany Engineered Composites	9,208	4,173	886	4,149
Corporate Expenses	-	-	-	-
Total	$10,220	$5,185	$886	$4,149

Nine months ended September 30, 2016	Total restructuring costs incurred		Termination and other costs		Impairment of plant and equipment	Benefit plan curtailment/ settlement
(in thousands)
Machine Clothing	$5,921		$5,751		$300	($130	)
Albany Engineered Composites	1,787		1,498		289	-
Corporate Expenses	(55	)	(55	)	-	-
Total	$7,653		$7,194		$589	($130	)

We expect that approximately $4.0 million of Accrued liabilities for restructuring at September 30, 2017 will be paid within one year and approximately $0.4 million will be paid in the following year. The table below presents the year-to-date changes in restructuring liabilities for 2017 and 2016, all of which related to termination costs:

	December 31,	Restructuring		Currency	September 30,
(in thousands)	2016	charges accrued	Payments	translation /other	2017
Total termination and other costs	$5,559	$5,185	($6,370)	$24	$4,398

	December 31,	Restructuring		Currency	September 30,
(in thousands)	2015	charges accrued	Payments	translation /other	2016
Total termination and other costs	$10,177	$7,194	($9,862)	$2	$7,511