Accounts Receivable

9 Months Ended

Sep. 30, 2017

Receivables [Abstract]

Accounts Receivable

11. Accounts Receivable

Accounts receivable includes trade receivables and revenue in excess of progress billings on long-term contracts in the Albany Engineered Composites segment. The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. The Company determines the allowance based on historical write-off experience, customer-specific facts and economic conditions. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required.

As of September 30, 2017 and December 31, 2016, Accounts receivable consisted of the following:

(in thousands)	September 30, 2017		December 31, 2016
Trade and other accounts receivable	$157,171		$146,460
Bank promissory notes	19,525		15,759
Revenue in excess of progress billings	30,957		15,926
Allowance for doubtful accounts	(7,715	)	(6,952	)
Total accounts receivable	$199,938		$171,193

In connection with certain sales in Asia, the Company accepts a bank promissory note as customer payment. The notes may be presented for payment at maturity, which is less than one year.

The Company also has Contract receivables in the AEC segment that represent revenue earned which has extended payment terms. The Contract receivables will be invoiced to the customer, with 2% interest, over a 10-year period starting in 2020.

As of September 30, 2017 and December 31, 2016, Contract receivables consisted of the following:

(in thousands)	September 30, 2017	December 31, 2016
Contract receivable	$29,688	$14,045