Business Acquisition

9 Months Ended

Sep. 30, 2017

Business Combinations [Abstract]

Business Acquisition

2.Business Acquisition

On April 8, 2016, the Company acquired the outstanding shares of Harris Corporation’s composite aerostructures business for cash of $187 million, plus the assumption of certain liabilities. The Company funded the cash payable at closing by utilizing proceeds from a $550 million, unsecured credit facility agreement that was completed April 8, 2016. The acquired entity is located in Salt Lake City, Utah (“SLC”) and is part of the Albany Engineered Composites (“AEC”) segment. 

The Consolidated Statement of Income for 2016 includes operational activity of the acquired business for only the period subsequent to the closing, which affects comparability of year to date results. The following table shows total Company pro forma results for the nine month period ended September 30, 2016 as if the acquisition had occurred on January 1, 2015.

(in thousands, except per share amounts)	Unaudited - Pro forma Nine months ended September 30, 2016
Combined Net sales	$588,978
Combined Income before income taxes	$59,812
Pro forma increase/(decrease) to income before income taxes:
Acquisition expenses	5,367
Interest expense related to purchase price	(1,133	)
Acquisition accounting adjustments:
Depreciation and amortization on property, plant and equipment, and intangible assets	(1,696	)
Valuation of contract inventories	2,036
Interest expense on capital lease obligation	323
Interest expense on other obligations	(143	)
Pro forma Income before income taxes	$64,566
Pro forma Net Income	$41,286