10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(√) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: March 31, 2018

OR

(  ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission file number: 1-10026

ALBANY INTERNATIONAL CORP.

(Exact name of registrant as specified in its charter)

Delaware	14-0462060
(State or other jurisdiction of	(IRS Employer Identification No.)
incorporation or organization)
216 Airport Drive, Rochester, New Hampshire	03867
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code 603-330-5850

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes [ √ ] No [    ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [ √ ] No [    ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.

Large accelerated filer	[ √ ]	Accelerated filer	[    ]
Non-accelerated filer	[    ]	Smaller reporting company	[    ]
		Emerging growth company	[    ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [    ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [    ] No [ √ ]

The registrant had 29.0 million shares of Class A Common Stock and 3.2 million shares of Class B Common Stock outstanding as of April 30, 2018.

1

ALBANY INTERNATIONAL CORP.

TABLE OF CONTENTS

		Page No.
Part I Financial information
	Item 1. Financial Statements	3
	Consolidated statements of income – three months ended March 31, 2018 and 2017	3
	Consolidated statements of comprehensive income/(loss) – three months ended March 31, 2018 and 2017	4
	Consolidated balance sheets as of March 31, 2018 and December 31, 2017	5
	Consolidated statements of cash flows – three months ended March 31, 2018 and 2017	6
	Notes to consolidated financial statements	7
	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	38
	Forward-looking statements Item 3. Quantitative and Qualitative Disclosures about Market Risk	55
	Item 4. Controls and Procedures	55
Part II Other Information
	Item 1. Legal Proceedings	56
	Item 1A. Risk Factors	56
	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	56
	Item 3. Defaults upon Senior Securities	56
	Item 4. Mine Safety Disclosures	56
	Item 5. Other Information	56
	Item 6. Exhibits	56

2

ITEM 1. FINANCIAL STATEMENTS

ALBANY INTERNATIONAL CORP.

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share amounts)

(unaudited)

	Three Months Ended
	March 31,
	2018	2017
Net sales	$229,981	$199,277
Cost of goods sold	148,330	123,249
Gross profit	81,651	76,028
Selling, general, and administrative expenses	41,930	40,407
Technical and research expenses	10,317	10,262
Restructuring expenses, net	8,573	2,681
Operating income	20,831	22,678
Interest expense, net	4,288	4,328
Other expense, net	1,452	826
Income before income taxes	15,091	17,524
Income tax expense	4,609	6,550
Net income	10,482	10,974
Net income attributable to the noncontrolling interest	237	135
Net income attributable to the Company	$10,245	$10,839
Earnings per share attributable to Company shareholders - Basic	$0.32	$0.34
Earnings per share attributable to Company shareholders - Diluted	$0.32	$0.34
Shares of the Company used in computing earnings per share:
Basic	32,220	32,128
Diluted	32,236	32,164
Dividends declared per share, Class A and Class B	$0.17	$0.17

The accompanying notes are an integral part of the consolidated financial statements

3

ALBANY INTERNATIONAL CORP.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)

(in thousands)

(unaudited)

	Three Months Ended
	March 31,
	2018		2017
Net income	$10,482		$10,974
Other comprehensive income/(loss), before tax:
Foreign currency translation adjustments	17,505		9,938
Amortization of pension liability adjustments:
Prior service credit	(1,114	)	(1,113	)
Net actuarial loss	1,297		1,347
Payments related to interest rate swaps included in earnings	180		600
Derivative valuation adjustment	5,715		416
Income taxes related to items of other comprehensive income/(loss):
Amortization of pension liability adjustment	(55	)	(70	)
Payments related to interest rate swaps included in earnings	(43	)	(228	)
Derivative valuation adjustment	(1,372	)	(158	)
Comprehensive income	32,595		21,706
Comprehensive income attributable to the noncontrolling interest	230		140
Comprehensive income attributable to the Company	$32,365		$21,566

The accompanying notes are an integral part of the consolidated financial statements

4

ALBANY INTERNATIONAL CORP.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

(unaudited)

	March 31,		December 31,
	2018		2017
ASSETS
Cash and cash equivalents	$151,426		$183,727
Accounts receivable, net	248,538		202,675
Contract assets	42,895		-
Inventories	100,034		136,519
Income taxes prepaid and receivable	6,132		6,266
Prepaid expenses and other current assets	18,675		14,520
Total current assets	567,700		543,707
Property, plant and equipment, net	459,388		454,302
Intangibles, net	53,881		55,441
Goodwill	168,311		166,796
Deferred income taxes	70,174		68,648
Noncurrent receivables	35,338		32,811
Other assets	45,543		39,493
Total assets	$1,400,335		$1,361,198
LIABILITIES AND SHAREHOLDERS' EQUITY
Notes and loans payable	$226		$262
Accounts payable	45,694		44,899
Accrued liabilities	122,103		105,914
Current maturities of long-term debt	1,821		1,799
Income taxes payable	5,182		8,643
Total current liabilities	175,026		161,517
Long-term debt	518,656		514,120
Other noncurrent liabilities	100,170		101,555
Deferred taxes and other liabilities	11,339		10,991
Total liabilities	805,191		788,183
SHAREHOLDERS' EQUITY
Preferred stock, par value $5.00 per share; authorized 2,000,000 shares; none issued	-		-
Class A Common Stock, par value $.001 per share; authorized 100,000,000 shares; issued 37,447,669 in 2018 and 37,395,753 in 2017	37		37
Class B Common Stock, par value $.001 per share; authorized 25,000,000 shares; issued and outstanding 3,233,998 in 2018 and 2017	3		3
Additional paid in capital	428,859		428,423
Retained earnings	533,759		534,082
Accumulated items of other comprehensive income:
Translation adjustments	(69,672	)	(87,318	)
Pension and postretirement liability adjustments	(50,549	)	(50,536	)
Derivative valuation adjustment	6,433		1,953
Treasury stock (Class A), at cost 8,431,335 shares in 2018 and 2017	(256,876	)	(256,876	)
Total Company shareholders' equity	591,994		569,768
Noncontrolling interest	3,150		3,247
Total equity	595,144		573,015
Total liabilities and shareholders' equity	$1,400,335		$1,361,198

The accompanying notes are an integral part of the consolidated financial statements

5

ALBANY INTERNATIONAL CORP.

CONSOLIDATED STATEMENTS OF CASH FLOW

(in thousands)

(unaudited)

	Three Months Ended
	March 31,
	2018		2017
OPERATING ACTIVITIES
Net income	$10,482		$10,974
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation	18,302		14,644
Amortization	2,646		2,649
Change in other noncurrent liabilities	(377	)	(1,596	)
Change in deferred taxes and other liabilities	(784	)	(612	)
Provision for write-off of property, plant and equipment	271		296
Non-cash interest expense	-		211
Compensation and benefits paid or payable in Class A Common Stock	289		989
Fair value adjustment on foreign currency option	37		54
Changes in operating assets and liabilities that (used)/provided cash:
Accounts receivable	(31,467	)	(741	)
Contract assets	2,116		-
Inventories	(9,244	)	(14,921	)
Prepaid expenses and other current assets	(4,063	)	(1,917	)
Income taxes prepaid and receivable	102		-
Accounts payable	(2,538	)	3,524
Accrued liabilities	(1,185	)	(10,971	)
Income taxes payable	(3,431	)	(2,486	)
Noncurrent receivables	2,527		(3,915	)
Other, net	(2,630	)	(754	)
Net cash used in operating activities	(18,947	)	(4,572	)
INVESTING ACTIVITIES
Purchases of property, plant and equipment	(15,771	)	(25,045	)
Purchased software	(29	)	(38	)
Net cash used in investing activities	(15,800	)	(25,083	)
FINANCING ACTIVITIES
Proceeds from borrowings	13,011		16,145
Principal payments on debt	(8,490	)	(20,602	)
Taxes paid in lieu of share issuance	(1,652	)	(1,364	)
Proceeds from options exercised	147		75
Dividends paid	(5,474	)	(5,459	)
Net cash used in financing activities	(2,458	)	(11,205	)
Effect of exchange rate changes on cash and cash equivalents	4,904		2,451
Decrease in cash and cash equivalents	(32,301	)	(38,409	)
Cash and cash equivalents at beginning of period	183,727		181,742
Cash and cash equivalents at end of period	$151,426		$143,333

The accompanying notes are an integral part of the consolidated financial statements

6

ALBANY INTERNATIONAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

1. Significant Accounting Policies

Basis of Presentation

In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary for a fair presentation of results for such periods. Albany International Corp. (Albany, the Registrant, the Company, we, us, or our) consolidates the financial results of its subsidiaries for all periods presented. The results for any interim period are not necessarily indicative of results for the full year.

The preparation of financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in Albany International Corp.’s Consolidated Financial Statements and accompanying Notes. Actual results could differ materially from those estimates.

The information included in this Quarterly Report on Form 10-Q should be read in conjunction with “Risk Factors,” “Legal Proceedings,” “Management’s Discussion and Analysis of Financial Condition and Results of Operation,” “Quantitative and Qualitative Disclosures about Market Risk” and the Consolidated Financial Statements and Notes thereto included in Items 1A, 3, 7, 7A and 8, respectively, of the Albany International Corp. Annual Report on Form 10-K for the year ended December 31, 2017.

Effective January 1, 2018, we adopted the provisions of ASC 606, Revenue from contracts with customers, using the modified retrospective method for transition as discussed in Note 2, Revenue Recognition. Accounting policies have been applied consistently to periods presented, except for the application of ASC 606, as described in Note 2.

7

2. Revenue Recognition

Effective January 1, 2018, the Company adopted the provisions of ASC 606, Revenue from contracts with customers, using the modified retrospective (or cumulative effect) method for transition. Under this transition method, periods prior to 2018 have not been restated and the cumulative effect of initially applying the new standard was recorded as an adjustment to Retained earnings. The standard replaces numerous requirements in U.S. GAAP, including industry-specific requirements, and provides companies with a single model for recognizing revenue from contracts with customers. We applied the new accounting standard to contracts which were not completed by December 31, 2017.

In our Machine Clothing (MC) business segment, prior to 2018, we recorded revenue from the sale of a product when persuasive evidence of an arrangement existed, delivery had occurred, title was transferred, the selling price was fixed, and collectability was reasonably assured. Under the new standard, we recognize MC revenue when we satisfy our performance obligations related to the manufacture and delivery of a product, which, in certain cases, results in earlier recognition of revenue associated with these contracts. For the MC segment, the cumulative effect of adopting ASC 606 included an increase to Accounts receivable, a decrease to Inventories, and an increase to Retained earnings.

In our Albany Engineered Composites (AEC) business segment, revenue from a number of long-term contracts was, prior to 2018, recorded on the basis of the units-of-delivery method, which is considered an output method. Under the new standard, revenue from most of these contracts is recognized over time using an input method as the measure of progress, which generally results in earlier recognition of revenue. Prior to adoption of the new standard, the classification of revenue in excess of progress billings on long-term contracts was included in Accounts receivable. Under the new standard, such assets are considered Contract assets, which are rights to consideration that are conditional on something other than the passage of time, such as completion of remaining performance obligations. As a result of adoption of the new standard, such assets were reclassified at transition from Accounts receivable to Contract assets. In addition, under the new standard, we are required to limit our estimate of contract values to the period of the legally enforceable contract, which in many cases is considerably shorter than the contract period used under the former standard. While certain contracts are expected to be profitable over the course of the program life when including expected renewals, under the new standard, our estimate of contract revenues and costs is limited to the estimated value of enforceable rights and obligations, excluding anticipated renewals. In some cases, this shorter contract period may result in a loss contract provision, and our transition adjustment included such loss accruals. Expected losses on projects includes losses on contract options that are probable of exercise, excluding profitable options that often follow. For AEC, the cumulative effect of adopting ASC 606 included increases to Contract assets and Accrued liabilities, and decreases to Accounts receivable, Inventories and Retained earnings.

8

The table below presents the cumulative effect of changes made to our December 31, 2017 Consolidated Balance Sheet as the result of adoption of ASC 606:

ALBANY INTERNATIONAL CORP.

CONSOLIDATED BALANCE SHEET

(in thousands, except share data)

(unaudited)

	As previously reported at December 31, 2017		Adjustments Increase/(decrease)		Opening balance, as adjusted, January 1, 2018
ASSETS
Cash and cash equivalents	$183,727		$     -		$183,727
Accounts receivable, net	202,675		10,210		212,885
Contract assets	-		44,872		44,872
Inventories	136,519		(47,054	)	89,465
Income taxes prepaid and receivable	6,266		-		6,266
Prepaid expenses and other current assets	14,520		-		14,520
Total current assets	543,707		8,028		551,735
Property, plant and equipment, net	454,302		-		454,302
Intangibles, net	55,441		-		55,441
Goodwill	166,796		-		166,796
Deferred income taxes	68,648		1,756		70,404
Noncurrent receivables	32,811		-		32,811
Other assets	39,493		1,119		40,612
Total assets	$1,361,198		$10,903		$1,372,101
LIABILITIES AND SHAREHOLDERS' EQUITY
Notes and loans payable	$262		$     -		$262
Accounts payable	44,899		-		44,899
Accrued liabilities	105,914		16,808		122,722
Current maturities of long-term debt	1,799		-		1,799
Income taxes payable	8,643		-		8,643
Total current liabilities	161,517		16,808		178,325
Long-term debt	514,120		-		514,120
Other noncurrent liabilities	101,555		-		101,555
Deferred taxes and other liabilities	10,991		52		11,043
Total liabilities	788,183		16,860		805,043
SHAREHOLDERS' EQUITY
Preferred stock, par value $5.00 per share;
authorized 2,000,000 shares; none issued	-		-		-
Class A Common Stock, par value $.001 per share;
authorized 100,000,000 shares; issued 37,395,753 in
2017 and 37,319,266 in 2016	37		-		37
Class B Common Stock, par value $.001 per share;
authorized 25,000,000 shares; issued and
outstanding 3,233,998 in 2017 and 2016	3		-		3
Additional paid in capital	428,423		-		428,423
Retained earnings	534,082		(5,630	)	528,452
Accumulated items of other comprehensive income:
Translation adjustments	(87,318	)	-		(87,318	)
Pension and postretirement liability adjustments	(50,536	)	-		(50,536	)
Derivative valuation adjustment	1,953		-		1,953
Treasury stock (Class A), at cost 8,431,335 shares in
2017 and 8,443,444 shares in 2016	(256,876	)	-		(256,876	)
Total Company shareholders' equity	569,768		(5,630	)	564,138
Noncontrolling interest	3,247		(327	)	2,920
Total equity	573,015		(5,957	)	567,058
Total liabilities and shareholders' equity	$1,361,198		$10,903		$1,372,101

9

Significant changes to our accounting policies as a result of adopting the new standard are discussed below.

For periods ending after December 31, 2017, we account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable.Revenue is measured based on the consideration specified in the contract with the customer, and excludes any amounts collected on behalf of third parties. We recognize revenue when we satisfy a performance obligation by transferring control over a product or service, or a series of distinct goods or services, to the customer which occurs either at a point in time, or over time, depending on the contract. A performance obligation is a promise in the contract to transfer a distinct good or service to the customer, and is the unit of account under the new revenue standard. “Control” refers to the ability to direct the use of, and obtain substantially all of the remaining benefits from the product. A contract’s transaction price is allocated to each material distinct performance obligation and is recognized as revenue when, or as, the performance obligation is satisfied.

In our Machine Clothing segment, our primary performance obligation in most contracts is to provide solution-based, custom-designed fabrics and belts to the customer. We satisfy this performance obligation upon transferring control of the product to the customer at a specific point in time. Generally, the customer obtains control when the product has been received at the location specified by the customer, at which time the only remaining obligations under the contract are fulfillment costs, which are accrued when control of the product is transferred.

In the Machine Clothing segment, some contracts with certain customers may also obligate us to provide various product-related services at no additional cost to the customer. When this obligation is material in the context of the contract with the customer, we recognize a separate performance obligation and allocate revenue to those services based on their estimated standalone selling price. The standalone selling price for these services is determined based upon an analysis of the services offered and an assessment of the price we might charge for such services as a separate offering. As we typically provide such services on a stand-ready basis, we recognize this revenue over time. Revenue allocated to such service performance obligations is the only Machine Clothing revenue that is recognized over time.

In our Albany Engineered Composites (AEC) business segment, we primarily enter into contracts to manufacture and deliver highly engineered advanced composite products to our customers. The majority of AEC revenue is from short duration, firm-fixed-price orders that are placed under a master contract containing general terms and conditions applicable to all orders placed under the agreement. To determine the proper revenue recognition method, we evaluate whether two or more orders or contracts should be combined and accounted for as one single contract, and whether the combined or single contract contains single or multiple performance obligations. This evaluation requires significant judgment, and the decision to combine a group of contracts, or to allocate revenue from the combined or single contract among multiple performance obligations could have a significant impact on the amount of revenue and profit recorded in a given period. For most AEC contracts, the nature of our promise (or our performance obligation) to the customer is to manage the contract and provide a significant service of integrating a complex set of tasks and components into a single project or capability, which will often result in the delivery of multiple highly interdependent and interrelated units.

At the inception of a contract we estimate the transaction price based on our current rights, and do not contemplate future modifications (including unexercised options) or follow-on contracts until they become legally enforceable. Many AEC contracts are subsequently modified to include changes in specifications, requirements or price, which may create new or change existing enforceable rights and obligations. Depending on the nature of the modification, we consider whether to account for the modification as an adjustment to the existing contract or as a separate contract. Generally, we are able to conclude that such modifications are not distinct from the existing contract, due to the significant integration of the obligations, and the interrelated nature of tasks, provided for in the modification and the existing contract. Therefore, such modifications are accounted for as if they were part of the existing contract, and recognized as a cumulative adjustment to revenue.

10

Revenue is recognized over time for a large portion of our contracts in AEC as most of our contracts have provisions that, under the guidance in ASC 606, are deemed to transfer control to the customer over time. Revenue is recognized based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress toward completion requires judgment and is based on the nature of the products or services to be provided. We generally use the cost-to-cost measure of progress for our contracts because it best depicts the transfer of assets to the customer which occurs as we incur costs to produce the contract deliverables. Under the cost-to-cost measure of progress, the extent of progress toward completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenue, including profit, is recorded proportionally as costs are incurred. Accounting for long-term contracts requires significant judgment and estimation, which could be considerably different if the underlying circumstances were to change. When adjustments in estimated contract revenue or costs are required, any changes from prior estimates are included in revenues or earnings in the period in which the change occurs.

In other AEC contracts, revenue is recognized at a point in time because the products are offered to multiple customers, or do not have an enforceable right to payment until the product is shipped or delivered to the location specified by the customer in the contract.

AEC’s largest source of revenue is derived from the LEAP contract (see Note 3) under a cost- plus-fee agreement. Beginning in 2018, the fee is variable based on our success in achieving certain cost targets. Revenue is recognized over time as costs are incurred. Under this contract, there is significant judgment involved in determining applicable contract costs and expected margin, and therefore in determining the amount of revenue to be recognized.

Payment terms granted to MC and AEC customers reflect general competitive practices. Terms vary with product, competitive conditions, and the country of operation.

The following table provides a summary of the composition of each business segment:

Segment	Unit	Principal Product or Service	Principal Locations
Machine Clothing (MC)	Machine Clothing	Paper machine clothing: Permeable and impermeable belts used in the manufacture of paper, paperboard, tissue and towel, and pulp Engineered fabrics: Belts used in the manufacture of nonwovens, fiber cement and several other industrial applications	World-wide
Albany Engineered Composites (AEC)	Albany Safran Composites (ASC)	3D-woven, injected composite components for aircraft engines	Rochester, NH, Commercy, France, Queretero, Mexico
	Airframe and engine  Components (Other AEC)	Composite airframe and engine components for military and commercial aircraft	Salt Lake City, UT Boerne, TX Queretero, Mexico

11

We disaggregate revenue earned from contracts with customers for each of our business segments based on the timing of revenue recognition, and groupings used for internal review purposes.

The following table disaggregates revenue for each business segment by timing of revenue recognition:

	For the Three Months Ended
	March 31, 2018
(in thousands)	Point in Time Revenue Recognition	Over Time Revenue Recognition	Total
Machine Clothing	$147,351	$800	$148,151
Albany Engineered Composites
ASC	-	40,781	40,781
Other AEC	6,040	35,009	41,049
Total Albany Engineered Composites	6,040	75,790	81,830
Total Revenue	$153,391	$76,590	$229,981

The following table disaggregates MC segment revenue by significant product or service (paper machine clothing (PMC) and engineered fabrics), and, for PMC, the geographical region to which the paper machine clothing was sold:

	For the Three Months Ended
(in thousands)	March 31, 2018
Americas PMC	$69,858
Eurasia PMC	56,933
Engineered Fabrics	21,360
Total Machine Clothing Net sales	$148,151

In accordance with ASC 606-10-50-14, we do not disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less. Contracts in the Machine Clothing segment are generally for periods of less than a year. Most contracts in the AEC segment are short duration firm-fixed price orders representing performance obligations with an original maturity of less than one year. Performance obligations as of March 31, 2018 that had an original duration of greater than one year totaled $115 million and relate primarily to firm contracts in the AEC segment. Of that amount, we expect to recognize as revenue approximately $50 million during 2018, with the remainder to be recognized between 2019 and 2021.

For some AEC contracts, we perform pre-production or nonrecurring engineering services. These costs are normally considered a fulfillment activity, rather than a performance obligation. Fulfillment activities that create resources that will be used in satisfying performance obligations in the future, and are expected to be recovered, are capitalized to Other Assets, which is classified as a noncurrent asset in the Consolidated Balance Sheets. The capitalized costs are amortized into Cost of goods sold over the period over which the asset is expected to contribute to future cash flows.

12

As a result of applying the cumulative effect method for transition to ASC 606, we are required to disclose the effect of the new standard on each line of the consolidated financial statements. The following tables show the balances as reported for the period ended March 31, 2018, and how the consolidated financial statements would have appeared if we had not adopted ASC 606.

ALBANY INTERNATIONAL CORP.

CONSOLIDATED STATEMENT OF INCOME

(in thousands, except per share amounts)

(unaudited)

	As reported for the Three Months Ended March 31, 2018	Adjustments to reverse effects of ASC 606		As adjusted for the Three months ended March 31, 2018 to exclude adoption of ASC 606
Net Sales	$229,981	($8,434	)	$221,547
Cost of goods sold	148,330	(6,526	)	141,804
Gross profit	81,651	(1,908	)	79,743
Selling, general, and administrative expenses	41,930	(60	)	41,870
Technical and research expenses	10,317	-		10,317
Restructuring expenses, net	8,573	-		8,573
Operating income	20,831	(1,848	)	18,983
Interest expense, net	4,288	-		4,288
Other expense, net	1,452	-		1,452
Income before income taxes	15,091	(1,848	)	13,243
Income tax expense	4,609	(601	)	4,008
Net income	10,482	(1,247	)	9,235
Net income attributable to the noncontrolling interest	237	(57	)	180
Net income attributable to the Company	$10,245	($1,190	)	$9,055
Earnings per share attributable to Company shareholders - Basic	$0.32	($0.04	)	$0.28
Earnings per share attributable to Company shareholders - Diluted	$0.32	($0.04	)	$0.28

13

ALBANY INTERNATIONAL CORP.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME/(LOSS)

(in thousands)

(unaudited)

	As reported for the Three Months Ended March 31, 2018		Adjustments to reverse effects of ASC 606		As adjusted for the Three months ended March 31, 2018 to exclude adoption of ASC 606
Net income	$10,482		($1,247	)	$9,235
Other comprehensive income/(loss), before tax:
Foreign currency translation adjustments	17,505		(308	)	17,197
Amortization of pension liability adjustments:
Prior service credit	(1,114	)	-		(1,114	)
Net actuarial loss	1,297		-		1,297
Payments related to interest rate swaps included in earnings	180		-		180
Derivative valuation adjustment	5,715		-		5,715
Income taxes related to items of other comprehensive income/(loss):
Pension/postretirement plan remeasurement	-		-		-
Amortization of pension liability adjustment	(55	)	-		(55	)
Payments related to interest rate swaps included in earnings	(43	)	-		(43	)
Derivative valuation adjustment	(1,372	)	-		(1,372	)
Comprehensive income	32,595		(1,555	)	31,040
Comprehensive income attributable to the noncontrolling interest	230		(57	)	173
Comprehensive income attributable to the Company	$32,365		($1,498	)	$30,867

14

ALBANY INTERNATIONAL CORP.

CONSOLIDATED BALANCE SHEET

(in thousands, except share data)

(unaudited)

	As reported March 31, 2018		Adjustments to reverse effects of ASC 606		As adjusted for the Three months ended March 31, 2018 to exclude adoption of ASC 606
ASSETS
Cash and cash equivalents	$151,426		$    -		$151,426
Accounts receivable, net	248,538		(21,720	)	226,818
Contract assets	42,895		(42,895	)	-
Inventories	100,034		53,752		153,786
Income taxes prepaid and receivable	6,132		-		6,132
Prepaid expenses and other current assets	18,675		-		18,675
Total current assets	567,700		(10,863	)	556,837
Property, plant and equipment, net	459,388		-		459,388
Intangibles, net	53,881		-		53,881
Goodwill	168,311		-		168,311
Income taxes receivable and deferred	70,174		(1,155	)	69,019
Noncurrent receivables	35,338		-		35,338
Other assets	45,543		(1,256	)	44,287
Total assets	$1,400,335		($13,274	)	$1,387,061
LIABILITIES AND SHAREHOLDERS' EQUITY
Notes and loans payable	$226		$    -		$226
Accounts payable	45,694		-		45,694
Accrued liabilities	122,103		(17,624	)	104,479
Current maturities of long-term debt	1,821		-		1,821
Income taxes payable	5,182		-		5,182
Total current liabilities	175,026		(17,624	)	157,402
Long-term debt	518,656		-		518,656
Other noncurrent liabilities	100,170		-		100,170
Deferred taxes and other liabilities	11,339		(51	)	11,288
Total liabilities	805,191		(17,675	)	787,516
SHAREHOLDERS' EQUITY
Preferred stock, par value $5.00 per share;
authorized 2,000,000 shares; none issued	-		-		-
Class A Common Stock, par value $.001 per share;
authorized 100,000,000 shares; issued 37,447,669 in 2018
and 37,395,753 in 2017	37		-		37
Class B Common Stock, par value $.001 per share;
authorized 25,000,000 shares; issued and
outstanding 3,233,998 in 2018 and 2017	3		-		3
Additional paid in capital	428,859				428,859
Retained earnings	533,759		4,439		538,198
Accumulated items of other comprehensive income:
Translation adjustments	(69,672	)	(308	)	(69,980	)
Pension and postretirement liability adjustments	(50,549	)	-		(50,549	)
Derivative valuation adjustment	6,433		-		6,433
Treasury stock (Class A), at cost 8,431,335 shares in 2018
and 2017	(256,876	)	-		(256,876	)
Total Company shareholders' equity	591,994		4,131		596,125
Noncontrolling interest	3,150		270		3,420
Total equity	595,144		4,401		599,545
Total liabilities and shareholders' equity	$1,400,335		($13,274	)	$1,387,061

15

ALBANY INTERNATIONAL CORP.

CONSOLIDATED STATEMENT OF CASH FLOW

(in thousands)

(unaudited)

	As reported for the Three Months ended March 31, 2018		Adjustments to reverse effects of ASC 606		As adjusted for the Three months ended March 31, 2018 to exclude adoption of ASC 606
OPERATING ACTIVITIES
Net income	$10,482		($1,247	)	$9,235
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation	18,302		-		18,302
Amortization	2,646		-		2,646
Change in other noncurrent liabilities	(377	)	-		(377	)
Change in deferred taxes and other liabilities	(784	)	1,103		319
Provision for write-off of property, plant and equipment	271		-		271
Non-cash interest expense	-		-		-
Compensation and benefits paid or payable in Class A Common Stock	289		-		289
Fair value adjustment on foreign currency option	37		-		37
Changes in operating assets and liabilities that (used)/provided cash:
Accounts receivable	(31,467	)	7,324		(24,143	)
Contract assets	2,116		(2,116	)	-
Inventories	(9,244	)	(8,023	)	(17,267	)
Prepaid expenses and other current assets	(4,063	)	-		(4,063	)
Income taxes prepaid and receivable	102		-		102
Accounts payable	(2,538	)	-		(2,538	)
Accrued liabilities	(1,185	)	(250	)	(1,435	)
Income taxes payable	(3,431	)	-		(3,431	)
Noncurrent receivables	2,527		-		2,527
Other, net	(2,630	)	3,209		579
Net cash provided by operating activities	(18,947	)	-		(18,947	)
Net cash used in investing activities	(15,800	)			(15,800	)
Net cash used in financing activities	(2,458	)	-		(2,458	)
Effect of exchange rate changes on cash and cash equivalents	4,904		-		4,904
Decrease in cash and cash equivalents	(32,301	)	-		(32,301	)
Cash and cash equivalents at beginning of period	183,727		-		183,727
Cash and cash equivalents at end of period	$151,426		$-		$151,426

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3. Reportable Segments

As described in Note 2, the Company adopted the provisions of ASC 606, “Revenue from contracts with customers”, effective January 1, 2018, using the cumulative effect method for transition. Periods prior to 2018 have not been restated. The following tables show data by reportable segment, reconciled to consolidated totals, and the impact that ASC 606 had on first-quarter results, included in the consolidated financial statements:

	Three months ended March 31,				Three months ended March 31, 2018
(in thousands)	2018		2017		Increase/(decrease) attributable to application of ASC 606
Net sales
Machine Clothing	$148,151		$142,827		$4,211
Albany Engineered Composites	81,830		56,450		4,223
Consolidated total	$229,981		$199,277		$8,434
Operating income/(loss)
Machine Clothing	$30,769		$38,263		$979
Albany Engineered Composites	2,275		(5,114	)	869
Corporate expenses	(12,213	)	(10,471	)	-
Operating income	20,831		22,678		1,848
Reconciling items:
Interest income	(382	)	(107	)	-
Interest expense	4,670		4,435		-
Other expense, net	1,452		826		-
Income before income taxes	$15,091		$17,524		$1,848

At the January 1, 2018 date of adoption of ASC 606, Machine Clothing assets increased by $22 million, and AEC assets decreased by $13 million. Except for the effect of adopting ASC 606, there were no material changes in the total assets of the reportable segments for the three months ended March 31, 2018.

As described in Note 4, effective January 1, 2018, the Company adopted an accounting update that affects the classification of components of pension and postretirement benefit costs. Some costs that were previously included in operating expenses shall now be included in Other expense, net. Periods prior to 2018 have been restated to conform to the current year presentation.

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The Albany Engineered Composites (AEC) segment, including Albany Safran Composites, LLC (ASC), in which our customer SAFRAN Group (Safran) owns a 10 percent noncontrolling interest, provides highly engineered, advanced composite structures to customers in the aerospace and defense industries. AEC’s largest program relates to CFM International’s LEAP engine. Under this program, AEC through ASC, is the exclusive supplier of advanced composite fan blades and cases under a long-term supply contract. The manufacturing spaces used for the production of parts under the long-term supply agreement are owned by Safran, and leased to the Company at either market rent or a minimal cost. All lease expense is reimbursable by Safran to the Company due to the cost-plus nature of the supply agreement. AEC net sales to Safran were $40.8 and $25.4 million in the first quarter of 2018 and 2017, respectively. The total of Accounts receivables, Contract assets and Noncurrent receivables due from Safran amounted to $90.0 million and $58.6 million as of March 31, 2018 and December 31, 2017, respectively.

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

	Three months ended March 31,
(in thousands)	2018	2017
Restructuring expenses, net
Machine Clothing	$8,352	$110
Albany Engineered Composites	221	2,571
Consolidated total	$8,573	$2,681

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4. Pensions and Other Postretirement Benefit Plans

Pension Plans

The Company has defined benefit pension plans covering certain U.S. and non-U.S. employees. The U.S. qualified defined benefit pension plan has been closed to new participants since October 1998 and, as of February 2009, benefits accrued under this plan were frozen. As a result of the freeze, employees covered by the pension plan will receive, at retirement, benefits already accrued through February 2009 but no new benefits accrue after that date. Benefit accruals under the U.S. Supplemental Executive Retirement Plan ("SERP") were similarly frozen. The eligibility, benefit formulas, and contribution requirements for plans outside of the U.S. vary by location.

Other Postretirement Benefits

The Company also provides certain postretirement benefits to retired employees in the U.S. and Canada. The Company accrues the cost of providing postretirement benefits during the active service period of the employees. The Company currently funds the plans as claims are paid.

The composition of the net periodic benefit plan cost for the three months ended March 31, 2018 and 2017, was as follows:

	Pension plans				Other postretirement benefits
(in thousands)	2018		2017		2018		2017
Components of net periodic benefit cost:
Service cost	$699		$651		$58		$61
Interest cost	1,820		1,828		507		553
Expected return on assets	(2,247	)	(1,993	)	-		-
Amortization of prior service cost/(credit)	8		9		(1,122	)	(1,122	)
Amortization of net actuarial loss	558		645		739		702
Net periodic benefit cost	$838		$1,140		$182		$194

In 2018, the Company adopted the provisions of ASU 2017-07, “Compensation – Retirement Benefits: improving the presentation of net periodic pension cost and net periodic postretirement benefit cost”. This accounting update requires that service cost for defined benefit pension and postretirement plans be reported in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. Additionally, the other components of net periodic benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. The Company elected to report the components of net periodic benefit cost other than the service component in the line item, Other expense, net in the Consolidated Statements of Income.

We restated 2017 expenses using the application of a practical expedient, which permits the usage of amounts disclosed in the prior year Pension and Other Postretirement benefit plans footnote as the estimation basis for applying the retrospective presentation requirements. The tables below show the 2017 amounts reclassified by segment and financial statement line item that resulted from adopting this update:

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Effect by segment operating expenses:

(in thousands)	Increase/(decrease) in expense for the three months ended March 31, 2017
Machine Clothing	($2	)
Albany Engineered Composites	-
Corporate expenses	(620	)
Total operating expenses	($622	)
Other expense, net	$622

Effect by Statement of Income line item:

(in thousands)	Increase/(decrease) in expense for the three months ended March 31, 2017
Cost of goods sold	($123	)
Selling, general and administrative expenses	(499	)
Total operating expenses	($622	)
Other expense, net	$622

5. Restructuring

On October 5, 2017, the Company filed a form 8-K to announce the initiation of discussions regarding a proposal to discontinue operations at its Machine Clothing production facility in Sélestat, France. During 2017, we incurred $1.1 million of restructuring expense associated with this proposal but were unable to reasonably estimate the total costs for severance and other charges associated with the proposal as there was no assurance, at that time, that approval for the proposal would be obtained. In the first quarter of 2018 the plan was approved by the French Labor Ministry. The restructuring program was driven by the Company’s need to balance manufacturing capacity with demand. In the first-quarter of 2018, we recorded restructuring expense of $8.1 million, which includes our estimate of the severance and outplacement costs for the approximately 50 positions that will be terminated under this plan. To date, we have recorded $9.2 million of restructuring charges related to this action. The Company has started to assess property, plant and equipment in that location to determine if equipment will be transferred to other facilities, or if the value of the assets can be recovered through a sale. Depending on the outcome of that assessment, additional restructuring charges could be recorded in future periods.

AEC restructuring charges in the first quarter of 2017 principally relate to work force reductions in Salt Lake City, Utah and Rochester, New Hampshire. To date, we have recorded $5.2 million of restructuring charges related to these actions.

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

	Three months ended March 31,
(in thousands)	2018	2017
Machine Clothing	$8,352	$110
Albany Engineered Composites	221	2,571
Total	$8,573	$2,681

Three months ended March 31, 2018	Total restructuring costs incurred	Termination and other costs	Impairment of assets
(in thousands)
Machine Clothing	$8,352	$8,352	$-
Albany Engineered Composites	221	221	-
Total	$8,573	$8,573	$-

Three months ended March 31, 2017	Total restructuring costs incurred	Termination and other costs	Impairment of assets
(in thousands)
Machine Clothing	$110	$110	$-
Albany Engineered Composites	2,571	2,456	115
Total	$2,681	$2,566	$115

We expect that approximately $8.2 million of Accrued liabilities for restructuring at March 31, 2018 will be paid within one year and approximately $1.7 million will be paid in the following year. The table below presents the year-to-date changes in restructuring liabilities for 2018 and 2017, all of which related to termination costs:

(in thousands)	December 31, 2017	Restructuring charges accrued	Payments		Currency translation /other	March 31, 2018
Total termination and other costs	$3,326	$8,573	($2,051	)	$25	$9,873

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(in thousands)	December 31, 2016	Restructuring charges accrued	Payments		Currency translation /other	March 31, 2017
Total termination and other costs	$5,559	$2,566	($2,126	)	$17	$6,016

6. Other expense, net

The components of Other expense, net are:

	Three months ended March 31,
(in thousands)	2018	2017
Currency transaction losses	$690	$101
Bank fees	108	149
Components of net periodic pension and postretirement cost other than service	263	622
Other	391	(46	)
Total	$1,452	$826

In 2018, the Company adopted the provisions of ASU 2017-07. This accounting update affected the classification of components of net periodic benefit cost, other than service cost, to be reported separately from the service cost component and outside of operating income. The Company elected to report other components of net periodic pension and post retirement cost in Other expense, net. The comparative consolidated statement of income was restated as required by this update. Further detail of this accounting update is disclosed in Note 4.

7. Income Taxes

The following table presents components of income tax expense for the three months ended March 31, 2018 and 2017:

	Three months ended March 31,
(in thousands)	2018		2017
Income tax based on income from continuing operations, at estimated tax rates of 32.5% and 32.6%, respectively	$4,899		$5,719
Income tax before discrete items	4,899		5,719
Discrete tax expense:
Exercise of US Stock Options	(123	)	(21	)
Adjustments to prior period tax liabilities	(46	)	-
Provision for/resolution of tax audits and contingencies, net	5		852
Other	(126	)	-
Total income tax expense	$4,609		$6,550

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The first-quarter estimated effective tax rate on continuing operations was 32.5 percent in 2018, compared to 32.6 percent for the same period in 2017.

Income tax expense for the quarter was computed in accordance with ASC 740-270 “Income Taxes – Interim Reporting”. Under this method, loss jurisdictions which cannot recognize a tax benefit with regard to their generated losses are excluded from the annual effective tax rate (AETR) calculation and their taxes will be recorded discretely in each quarter.

The Company’s tax rate is affected by recurring items such as the income tax rate in the U.S. and in non-U.S. jurisdictions and the mix of income earned in those jurisdictions, including changes in losses and income from excluded loss jurisdictions, and the impact of discrete items in the respective quarter. Additionally, tax adjustments resulting from the 2017 Tax Cut and Jobs Act (TCJA) have affected the Company’s 2018 AETR, including the global intangible low-taxed income (GILTI) inclusion, the foreign-derived intangible income (FDII) deduction and the corporate U.S. tax rate reduction from 35% to 21%.

The TCJA significantly revised the U.S. corporate income tax regime by, among other things, lowering the U.S. corporate tax rate from 35% to 21% effective January 1, 2018, while also repealing the deduction for domestic production activities, implementing a territorial tax system and imposing a transition tax on deemed repatriated earnings of foreign subsidiaries. U.S. GAAP requires that the impact of tax legislation be recognized in the period in which the law was enacted.

In December 2017, the Securities and Exchange Commission staff issued Staff Accounting Bulletin No. 118 (SAB 118), which addresses how a company recognizes provisional amounts when a company does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete its accounting for the effect of the changes in the TCJA. The measurement period ends when a company has obtained, prepared and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year. The Company elected to apply the measurement period guidance provided in SAB 118.

Deferred tax assets and liabilities: At December 31, 2017, the Company re-measured certain deferred tax assets and liabilities based on the federal rate of 21%. However, the Company is still analyzing certain aspects of the TCJA, such as IRC section 162(m), and refining its calculations which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts. As such, no adjustment has been recorded to the provisional amount previously recorded in 2017.

Foreign tax effects: At December 31, 2017, the Company recorded a provisional federal tax charge due to the transition tax on deemed repatriation of foreign earnings. No adjustment has been recorded to the provisional amount previously recorded in 2017. The Company is still analyzing its U.S. tax attributes such as accumulated foreign earnings and profits, foreign tax paid, and other tax components involved in foreign tax credit calculations for prior years back to 1986.

The Company has elected to account for the global intangible low taxed income (GILTI) as a current-period expense when incurred (the “period cost method”). The estimated net GILTI inclusion calculated by the Company (including the gross up on the GILTI inclusion and the apportioned foreign tax credits applied to GILTI) was $20 million and increased the AETR by 2.7%.The Company also calculated an estimated foreign-derived intangible income (FDII) deduction of $7 million which decreased the AETR by 1.8% in the first quarter of 2018. Because of the complexity of the GILTI and FDII tax rules and the lack of legislative guidance, the Company continues to evaluate these provisions of the TCJA and the application of ASC 740, Income Taxes. The final impact on the Company from the TCJA’s GILTI and FDII tax legislation may differ from the estimate calculated by the Company. Such differences could be material, due to, among other things, changes in interpretations of the TCJA, future legislative action to address questions that arise because of the TCJA, changes in accounting standards for income taxes

23

or related interpretations in response to the TCJA, or any updates or changes to estimates the Company has utilized to calculate the GILTI inclusion and FDII deduction.

The Company continues to believe that the Base Erosion Anti-Abuse Tax (BEAT) does not apply under the Company’s current policies. Therefore no adjustments for BEAT have been recorded.

The Company records the residual U.S. and foreign taxes on certain amounts of foreign earnings that have been targeted for repatriation to the U.S. These amounts are not considered to be indefinitely reinvested, and the Company accrued for the tax cost on these earnings to the extent they cannot be repatriated in a tax-free manner. The Company has targeted for repatriation $97.8 million of current year and prior year earnings of the Company’s foreign operations. If these earnings were distributed, the Company would be subject to foreign withholding taxes of $2.1 million which have already been recorded.

The Company conducts business globally and, as a result, files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. In the normal course of business the Company is subject to examination by taxing authorities throughout the world, including major jurisdictions such as the United States, Brazil, Canada, France, Germany, Italy, Mexico, and Switzerland. The open tax years in these jurisdictions range from 2007 to 2018. The Company is currently under audit in non-U.S. tax jurisdictions, including but not limited to Canada and Italy.

It is reasonably possible that over the next twelve months the amount of unrecognized tax benefits may change within a range of a net increase of nil to a net decrease of $0.6 million, from the reevaluation of uncertain tax positions arising in examinations, in appeals, or in the courts, or from the closure of tax statutes of limitations.

In October 2016, an accounting update, ASU 2016-16 was issued which modifies the recognition of income tax effects on intercompany transfers of assets, other than inventory. The Company adopted this update effective January 1, 2018, which resulted in a decrease of $0.5 million to deferred tax liabilities, with an offsetting increase to Retained earnings.

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8. Earnings Per Share

The amounts used in computing earnings per share and the weighted average number of shares of potentially dilutive securities are as follows:

	Three months ended March 31,
(in thousands, except market price and earnings per share)	2018	2017
Net income attributable to the Company	$10,245	$10,839
Weighted average number of shares:
Weighted average number of shares used in
calculating basic net income per share	32,220	32,128
Effect of dilutive stock-based compensation plans:
Stock options	16	36
Weighted average number of shares used in
calculating diluted net income per share	32,236	32,164
Average market price of common stock used
for calculation of dilutive shares	$63.86	$46.69
Net income per share:
Basic	$0.32	$0.34
Diluted	$0.32	$0.34

9. Noncontrolling Interest

The table below presents a reconciliation of income attributable to the noncontrolling interest and noncontrolling equity, and the impact that the ASC 606 standard had on first-quarter results, included in the consolidated financial statements:

(in thousands)	2018		2017
Net income of ASC	$2,681		$1,601
Less: Return attributable to the Company's preferred holding	312		254
Net income of ASC available for common ownership	$2,369		$1,347
Ownership percentage of noncontrolling shareholder	10	%	10	%
Net income attributable to noncontrolling interest	$237		$135
Noncontrolling interest, beginning of year	$3,247		$3,767
Decrease attributable to application of ASC 606	(327	)	-
Net income attributable to noncontrolling interest	237		135
Changes in other comprehensive income attributable to noncontrolling interest	(7	)	5
Noncontrolling interest	$3,150		$3,907

25

10. Accumulated Other Comprehensive Income (AOCI)

The table below presents changes in the components of AOCI for the period December 31, 2017 to March 31, 2018:

(in thousands)	Translation adjustments		Pension and postretirement liability adjustments		Derivative valuation adjustment	Total Other Comprehensive Income
December 31, 2017	($87,318	)	($50,536	)	$1,953	($135,901	)
Other comprehensive income/(loss) before reclassifications	17,646		(141	)	4,343	21,848
Interest expense related to swaps reclassified to the Consolidated Statements of Income, net of tax	-		-		137	137
Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income, net of tax	-		128		-	128
Net current period other comprehensive income	17,646		(13	)	4,480	22,113
March 31, 2018	($69,672	)	($50,549	)	$6,433	($113,788	)

The table below presents changes in the components of AOCI for the period December 31, 2016 to March 31, 2017:

(in thousands)	Translation adjustments		Pension and postretirement liability adjustments		Derivative valuation adjustment	Total Other Comprehensive Income
December 31, 2016	($133,298	)	($51,719	)	$828	($184,189	)
Other comprehensive income/(loss) before reclassifications	10,126		(193	)	258	10,191
Interest expense related to swaps reclassified to the Consolidated Statements of Income, net of tax	-		-		372	372
Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income, net of tax	-		164		-	164
Net current period other comprehensive income	10,126		(29	)	630	10,727
March 31, 2017	($123,172	)	($51,748	)	$1,458	($173,462	)

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The table below presents the expense/(income) amounts reclassified, and the line items of the Consolidated Statements of Income that were affected for the periods ended March 31, 2018 and 2017.

	Three months ended March 31,
(in thousands)	2018		2017
Pretax Derivative valuation reclassified from Accumulated Other Comprehensive Income:
Expense related to interest rate swaps included in Income before taxes (a)	$180		$600
Income tax effect	(43	)	(228	)
Effect on net income due to items reclassified from Accumulated Other Comprehensive Income	$137		$372
Pretax pension and postretirement liabilities reclassified from Accumulated Other Comprehensive Income:
Amortization of prior service credit	($1,114	)	($1,113	)
Amortization of net actuarial loss	1,297		1,347
Total pretax amount reclassified (b)	183		234
Income tax effect	(55	)	(70	)
Effect on net income due to items reclassified from Accumulated Other Comprehensive Income	$128		$164

(a) Included in Interest expense are payments related to the interest rate swap agreements and amortization of swap buyouts (see Note 16).

(b) These accumulated other comprehensive income components are included in Other expense, net (see Note 4).

11. Accounts Receivable

Accounts receivable includes trade receivables and bank promissory notes. As a result of adopting ASC 606, Revenue in excess of progress billings on long-term contracts in the Albany Engineered Composites segment was reclassified to Contract assets in 2018. Including that reclassification, the cumulative effect from the adoption of ASC 606 was an increase to Accounts receivable of $10.2 million as Accounts receivable recorded in the cumulative adjustment exceeded that reclassification.

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.

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As of March 31, 2018 and December 31, 2017, Accounts receivable consisted of the following:

(in thousands)	March 31, 2018		December 31, 2017
Trade and other accounts receivable	$237,767		$152,375
Bank promissory notes	18,865		20,255
Revenue in excess of progress billings	-		37,964
Allowance for doubtful accounts	(8,094	)	(7,919	)
Total accounts receivable	$248,538		$202,675

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

As of March 31, 2018 and December 31, 2017, Noncurrent receivables consisted of the following:

(in thousands)	March 31, 2018	December 31, 2017
Noncurrent receivables	$35,338	$32,811

12. Contract Assets and Liabilities

Beginning in 2018, Contract assets includes unbilled amounts typically resulting from sales under contracts when the cost-to-cost method of revenue recognition is utilized, and revenue recognized exceeds the amount billed to the customer. For periods prior to 2018, that asset was included in Accounts receivable. At the date of adoption of ASC 606, we recorded Contract assets of $44.9 million, which included the amount that was in Accounts receivable as of December 31, 2017, and additional transition adjustments that resulted from the retrospective application of ASC 606 to contracts in process at the time of adoption.

Contract assets are transferred to Accounts receivable, net when the entitlement to pay becomes unconditional. Contract liabilities include advance payments and billings in excess of revenue recognized. Contract liabilities are included in Accrued liabilities in the Consolidated Balance Sheet.

Contract assets and Contract liabilities are reported on the Consolidated Balance Sheets in a net position on a contract-by-contract basis at the end of each reporting period. Contract assets and contract liabilities were as follows:

(in thousands)	March 31, 2018	December 31, 2017
Contract assets	$42,895	$   -
Contract liabilities	3,030	-

Contract assets decreased $2.0 million during the quarter ended March 31, 2018 as compared to the January 1, 2018 opening balance sheet, as adjusted for the adoption of ASC 606 (see Note 2).

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The decrease was primarily due to an increase in amounts billed to customers, in excess of the recognition of unbilled revenue related to the satisfaction or partial satisfaction of performance obligations. There were no significant impairment losses related to our Contract assets during the quarter ended March 31, 2018.

Contract liabilities increased $2.3 million during the quarter ended March 31, 2018, as compared to the January 1, 2018 opening balance sheet, as adjusted for the adoption of ASC 606, primarily due to increased billings in excess of revenue recognized. Revenue recognized for the three-month period ended March 31, 2018, that was included in the Contract liability balance at the beginning of the year was less than $1 million, and represented revenue primarily in ASC.

13. Inventories

Costs included in inventories are raw materials, labor, supplies and allocable depreciation and overhead. Raw material inventories are valued on an average cost basis. Other inventory cost elements are valued at cost, using the first-in, first-out method. The Company writes down the inventories for estimated obsolescence, and to lower of cost or net realizable value based upon assumptions about future demand and market conditions. If actual demand or market conditions are less favorable than those projected by the Company, additional inventory write-downs may be required. Once established, the original cost of the inventory less the related write-down represents the new cost basis of such inventories. The decrease in Inventories in 2018, compared to the balances as of December 31, 2017, was principally due to the cumulative effect of adopting ASC 606 (see Note 2) which decreased Inventories by $47.1 million.

As of March 31, 2018 and December 31, 2017, inventories consisted of the following:

(in thousands)	March 31,  2018	December 31, 2017
Raw materials	$42,411	$42,215
Work in process	44,184	65,448
Finished goods	13,439	28,856
Total inventories	$100,034	$136,519

14. Goodwill and Other Intangible Assets

Goodwill and intangible assets with indefinite useful lives are not amortized, but are tested for impairment at least annually. Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in each business combination.

Determining the fair value of a reporting unit requires the use of significant estimates and assumptions, including revenue growth rates, operating margins, discount rates, and future market conditions, among others. Goodwill and other long-lived assets are reviewed for impairment whenever events, such as significant changes in the business climate, plant closures, changes in product offerings, or other circumstances indicate that the carrying amount may not be recoverable.

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To determine fair value, we utilize two market-based approaches and an income approach. Under the market-based approaches, we utilize information regarding the Company as well as publicly available industry information to determine earnings multiples and sales multiples. Under the income approach, we determine fair value based on estimated future cash flows of each reporting unit, discounted by an estimated weighted-average cost of capital, which reflects the overall level of inherent risk of a reporting unit and the rate of return an outside investor would expect to earn.

In the second quarter of 2017, the Company applied the qualitative assessment approach in performing its annual evaluation of goodwill and concluded that no impairment provision was required. There were no amounts at risk due to the large spread between the fair, and carrying value, of each reporting unit.

We are continuing to amortize certain patents, trade names, customer relationships, customer contracts and technology assets that have finite lives. The gross carrying value, accumulated amortization and net values of intangible assets and goodwill as of December 31, 2017 and March 31, 2018, were as follows:

As of March 31, 2018 (in thousands)	Weighted average amortization life in years	Gross carrying amount	Accumulated amortization		Net carrying amount
Amortized intangible assets:
AEC trade names	15	$140	($126	)	$14
AEC technology	15	370	(296	)	74
Customer relationships	15	48,421	(6,462	)	41,959
Customer contracts	6	17,471	(5,830	)	11,641
Other intangibles	5	322	(129	)	193
Net amortized intangible assets		$66,724	($12,843	)	$53,881
Unamortized intangible assets:
MC Goodwill		$72,581	$-		$72,581
AEC Goodwill		95,730	-		95,730
Total unamortized intangible assets:		$168,311	$-		$168,311

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As of December 31, 2017 (in thousands)	Weighted average amortization life in years	Gross carrying amount	Accumulated amortization		Net carrying amount
Amortized intangible assets:
AEC trade names	15	$140	($125	)	$15
AEC technology	15	370	(290	)	80
Customer relationships	15	48,421	(5,654	)	42,767
Customer contracts	6	17,471	(5,102	)	12,369
Other intangibles	5	322	(112	)	210
Net amortized intangible assets		$66,724	($11,283	)	$55,441
Unamortized intangible assets:
MC Goodwill		$71,066	$-		$71,066
AEC Goodwill		95,730	-		95,730
Total unamortized intangible assets:		$166,796	$-		$166,796

The changes in intangible assets, net and goodwill from December 31, 2017 to March 31, 2018, were as follows:

(in thousands)	December 31, 2017	Amortization		Currency Translation	March 31, 2018
Amortized intangible assets:
AEC trade names	$15	$(1	)	$-	$14
AEC technology	80	(6	)	-	74
Customer relationships	42,767	(808	)	-	41,959
Customer contracts	12,369	(728	)	-	11,641
Other intangibles	210	(17	)	-	193
Net amortized intangible assets	$55,441	($1,560	)	$-	$53,881
Unamortized intangible assets:
MC Goodwill	$71,066	$-		$1,515	$72,581
AEC Goodwill	95,730	-		-	95,730
Total unamortized intangible assets:	$166,796	$-		$1,515	$168,311

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Estimated amortization expense of intangibles for the years ending December 31, 2018 through 2022, is as follows:

	Annual amortization
Year	(in thousands)
2018	$6,234
2019	6,234
2020	6,234
2021	6,163
2022	3,949

15. Financial Instruments

Long-term debt, principally to banks and bondholders, consists of:

(in thousands, except interest rates)	March 31, 2018		December 31, 2017
Revolving credit agreement with borrowings outstanding at an end of period interest rate of 3.49% in 2018 and 3.40% in 2017 (including the effect of interest rate hedging transactions, as described below), due in 2022	$506,000		$501,000
Obligation under capital lease, matures 2022	14,477		14,919
Long-term debt	520,477		515,919
Less: current portion	(1,821	)	(1,799	)
Long-term debt, net of current portion	$518,656		$514,120

On November 7, 2017, we entered into a $685 million unsecured Five-Year Revolving Credit Facility Agreement (the “Credit Agreement”) which amended and restated the prior $550 million Agreement, entered into on April 8, 2016 (the “Prior Agreement”). Under the Credit Agreement, $506 million of borrowings were outstanding as of March 31, 2018. The applicable interest rate for borrowings was LIBOR plus a spread, based on our leverage ratio at the time of borrowing. At the time of the last borrowing on March 16, 2018, the spread was 1.500%. The spread was based on a pricing grid, which ranged from 1.250% to 1.750%, based on our leverage ratio. Based on our maximum leverage ratio and our Consolidated EBITDA, and without modification to any other credit agreements, as of March 31, 2018, we would have been able to borrow an additional $179 million under the Agreement.

The Credit Agreement contains customary terms, as well as affirmative covenants, negative covenants and events of default comparable to those in the Prior Agreement. The Borrowings are guaranteed by certain of the Company's subsidiaries.

Our ability to borrow additional amounts under the Credit Agreement is conditional upon the absence of any defaults, as well as the absence of any material adverse change (as defined in the Credit Agreement).

The Company has a long-term capital lease obligation for real property in Salt Lake City, Utah. The lease has an implied interest rate of 5.0% and matures in 2022.

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The following schedule presents future minimum annual lease payments under the capital lease obligation and the present value of the minimum lease payments, as of March 31, 2018.

Years ending December 31,	(in thousands)
2018	$1,854
2019	2,473
2020	2,520
2021	2,520
2022	7,373
Total minimum lease payments	16,740
Less:  Amount representing interest	(2,263	)
Present value of minimum lease payments	$14,477

On November 27, 2017, we terminated our interest rate swap agreements, originally entered into on May 9, 2016, that had effectively fixed the interest rate on $300 million of revolving credit borrowings, in order to enter into a new interest rate swap with a greater notional amount, and the same maturity as the Credit Agreement. We received cash of $6.3 million when the swap agreements were terminated and that payment will be amortized into interest expense through March 2021.

On May 6, 2016, we terminated other interest rate swap agreements that had effectively fixed the interest rate on $120 million of revolving credit borrowings, in order to enter into a new interest rate swap with a greater notional amount, and the same maturity as the Credit Agreement. We paid $5.2 million to terminate the swap agreements and that cost will be amortized into interest expense through June 2020.

On November 28, 2017, we entered into interest rate swap agreements for the period December 18, 2017 through October 17, 2022. These transactions have the effect of fixing the LIBOR portion of the effective interest rate (before addition of the spread) on $350 million of indebtedness drawn under the Credit Agreement at the rate of 2.11% during the period. Under the terms of these transactions, we pay the fixed rate of 2.11% and the counterparties pay a floating rate based on the one-month LIBOR rate at each monthly calculation date, which on March 16, 2018 was 1.79%, during the swap period. On March 16, 2018, the all-in-rate on the $350 million of debt was 3.61%.

These interest rate swaps are accounted for as a hedge of future cash flows, as further described in Note 16 of the Notes to Consolidated Financial Statements. No cash collateral was received or pledged in relation to the swap agreements.

Under the Credit Agreement, we are currently required to maintain a leverage ratio (as defined in the agreement) of not greater than 3.75 to 1.00 for each fiscal quarter ending prior to (but not including) September 30, 2019, and 3.50 to 1.00 for each fiscal quarter ending on or after September 30, 2019, and minimum interest coverage (as defined) of 3.00 to 1.00.

As of March 31, 2018, our leverage ratio was 2.55 to 1.00 and our interest coverage ratio was 9.50 to 1.00. We may purchase our Common Stock or pay dividends to the extent our leverage ratio remains at or below 3.50 to 1.00, and may make acquisitions with cash provided our leverage ratio does not exceed the limits noted above.

Indebtedness under the Credit Agreement is ranked equally in right of payment to all unsecured senior debt.

We were in compliance with all debt covenants as of March 31, 2018.

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16. Fair-Value Measurements

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Accounting principles establish a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Level 3 inputs are unobservable data points for the asset or liability, and include situations in which there is little, if any, market activity for the asset or liability. We had no Level 3 financial assets or liabilities at December 31, 2017 or March 31, 2018.

The following table presents the fair-value hierarchy for our Level 1 and Level 2 financial and non-financial assets and liabilities, which are measured at fair value on a recurring basis:

	March 31, 2018			December 31, 2017
	Quoted prices in active markets	Significant other observable inputs		Quoted prices in active markets	Significant other observable inputs
(in thousands)	(Level 1)	(Level 2)		(Level 1)	(Level 2)
Fair Value
Assets:
Cash equivalents	$14,806	$-		$13,601	$-
Prepaid expenses and other current assets:
Foreign currency options	75	-		-	-
Other Assets:
Common stock of unaffiliated foreign public company (a)	1,022	-		999	-
Interest rate swaps	-	6,554	(b)	-	313	(c)

(a) Original cost basis $0.5 million

(b) Net of $39.2 million receivable floating leg and $32.7 million liability fixed leg

(c) Net of $34.9 million receivable floating leg and $34.6 million liability fixed leg

Cash equivalents include short-term securities that are considered to be highly liquid and easily tradable. These securities are valued using inputs observable in active markets for identical securities.

The common stock of the unaffiliated foreign public company is traded in an active market exchange. The shares are measured at fair value using closing stock prices and are recorded in the Consolidated Balance Sheets as Other assets. The securities are classified as available for sale, and as a result any unrealized gain or loss is recorded in the Shareholders’ Equity section of the Consolidated Balance Sheets rather than in the Consolidated Statements of Income. When the security is sold or impaired, gains and losses are reported on the Consolidated Statements of Income. Investments are considered to be impaired when a decline in fair value is judged to be other than temporary.

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We operate our business in many regions of the world, and currency rate movements can have a significant effect on operating results. Foreign currency instruments are entered into periodically, and consist of foreign currency option contracts and forward contracts that are valued using quoted prices in active markets obtained from independent pricing sources. These instruments are measured using market foreign exchange prices and are recorded in the Consolidated Balance Sheets as Other current assets and Accounts payable, as applicable. Changes in fair value of these instruments are recorded as gains or losses within Other expense, net.

When exercised, the foreign currency instruments are net settled with the same financial institution that bought or sold them. For all positions, whether options or forward contracts, there is risk from the possible inability of the financial institution to meet the terms of the contracts and the risk of unfavorable changes in interest and currency rates, which may reduce the value of the instruments. We seek to mitigate risk by evaluating the creditworthiness of counterparties and by monitoring the currency exchange and interest rate markets while reviewing the hedging risks and contracts to ensure compliance with our internal guidelines and policies.

Changes in exchange rates can result in revaluation gains and losses that are recorded in Selling, General and Administrative expenses or Other expense, net. Revaluation gains and losses occur when our business units have cash, intercompany (recorded in Other expense, net) or third-party trade (recorded in Selling, General and Administrative expenses) receivable or payable balances in a currency other than their local reporting (or functional) currency.

Operating results can also be affected by the translation of sales and costs, for each non-U.S. subsidiary, from the local functional currency to the U.S. dollar. The translation effect on the Consolidated Statements of Income is dependent on our net income or expense position in each non-U.S. currency in which we do business. A net income position exists when sales realized in a particular currency exceed expenses paid in that currency; a net expense position exists if the opposite is true.

The interest rate swaps are accounted for as hedges of future cash flows. The fair value of our interest rate swaps are derived from a discounted cash flow analysis based on the terms of the contract and the interest rate curve, and is included in Other assets and/or Other noncurrent liabilities in the Consolidated Balance Sheets. Unrealized gains and losses on the swaps flow through the caption Derivative valuation adjustment in the Shareholders’ equity section of the Consolidated Balance Sheets, to the extent that the hedges are highly effective. As of March 31, 2018, these interest rate swaps were determined to be highly effective hedges of interest rate cash flow risk. Any gains and losses related to the ineffective portion of the hedges will be recognized in the current period in earnings. Amounts accumulated in Other comprehensive income are reclassified as Interest expense, net when the related interest payments (that is, the hedged forecasted transactions), and amortization related to the swap buyouts, affect earnings. Interest expense related to payments under the active swap agreements totaled $0.5 million for the three month period ended March 31, 2018 and $0.4 million for the three month period ended March 31, 2017. Additionally, non-cash interest expense related to the amortization of swap buyouts totaled ($0.2) million for the three month period ended March 31, 2018 and $0.2 million of the three month period ended March 31, 2017.

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Gains/(losses) related to changes in fair value of derivative instruments that were recognized in Other expense, net in the Consolidated Statements of Income were as follows:

	Three months ended March 31,
(in thousands)	2018		2017
Derivatives not designated as hedging instruments
Foreign currency options (losses)/gains	($37	)	($54	)

17. Contingencies

Asbestos Litigation

Albany International Corp. is a defendant in suits brought in various courts in the United States by plaintiffs who allege that they have suffered personal injury as a result of exposure to asbestos-containing paper machine clothing synthetic dryer fabrics marketed during the period from 1967 to 1976 and used in certain paper mills.

We were defending 3,662 claims as of March 31, 2018.

The following table sets forth the number of claims filed, the number of claims settled, dismissed or otherwise resolved, and the aggregate settlement amount during the periods presented:

Year ended December 31,	Opening Number of Claims	Claims Dismissed, Settled, or Resolved	New Claims	Closing Number of Claims	Amounts Paid (thousands) to Settle or Resolve
2013	4,463	230	66	4,299	$78
2014	4,299	625	147	3,821	437
2015	3,821	116	86	3,791	164
2016	3,791	148	102	3,745	758
2017	3,745	105	90	3,730	55
2018 (as of March 31)	3,730	96	28	3,662	$93

We anticipate that additional claims will be filed against the Company and related companies in the future, but are unable to predict the number and timing of such future claims. Due to the fact that information sufficient to meaningfully estimate a range of possible loss of a particular claim is typically not available until late in the discovery process, we do not believe a meaningful estimate can be made regarding the range of possible loss with respect to pending or future claims and therefore are unable to estimate a range of reasonably possible loss in excess of amounts already accrued for pending or future claims.

While we believe we have meritorious defenses to these claims, we have settled certain claims for amounts we consider reasonable given the facts and circumstances of each case. Our insurance carrier has defended each case and funded settlements under a standard reservation of rights. As of March 31, 2018 we had resolved, by means of settlement or dismissal, 37,690 claims. The total cost of resolving all claims was $10.3 million. Of this amount, almost 100% was paid by our insurance carrier, who has confirmed that we have approximately $140 million of remaining coverage under primary and excess policies that should be available with respect to current and future asbestos claims.

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The Company’s subsidiary, Brandon Drying Fabrics, Inc. (“Brandon”), is also a separate defendant in many of the asbestos cases in which Albany is named as a defendant, despite never having manufactured any fabrics containing asbestos. While Brandon was defending against 7,707 claims as of March 31, 2018, only nine claims have been filed against Brandon since January 1, 2012, and no settlement costs have been incurred since 2001. Brandon was acquired by the Company in 1999, and has its own insurance policies covering periods prior to 1999. Since 2004, Brandon’s insurance carriers have covered 100% of indemnification and defense costs, subject to policy limits and a standard reservation of rights.

In some of these asbestos cases, the Company is named both as a direct defendant and as the “successor in interest” to Mount Vernon Mills (“Mount Vernon”). We acquired certain assets from Mount Vernon in 1993. Certain plaintiffs allege injury caused by asbestos-containing products alleged to have been sold by Mount Vernon many years prior to this acquisition. Mount Vernon is contractually obligated to indemnify the Company against any liability arising out of such products. We deny any liability for products sold by Mount Vernon prior to the acquisition of the Mount Vernon assets. Pursuant to its contractual indemnification obligations, Mount Vernon has assumed the defense of these claims. On this basis, we have successfully moved for dismissal in a number of actions.

We currently do not anticipate, based on currently available information, that the ultimate resolution of the aforementioned proceedings will have a material adverse effect on the financial position, results of operations, or cash flows of the Company. Although we cannot predict the number and timing of future claims, based on the foregoing factors, the trends in claims filed against us, and available insurance, we also do not currently anticipate that potential future claims will have a material adverse effect on our financial position, results of operations, or cash flows.

18. Changes in Shareholders’ Equity

The following table summarizes changes in Shareholders’ Equity:

(in thousands)	Common Stock Class A and B	Additional paid in capital	Retained earnings		Accumulated items of other comprehensive income/(loss)		Treasury stock		Noncontrolling Interest		Total Equity
December 31, 2017	$40	$428,423	$534,082		($135,901	)	($256,876	)	$3,247		$573,015
Adoption of accounting standards (a),(b)	-	-	(5,085	)	-		-		(327	)	(5,412	)
Net income	-	-	10,245		-		-		237		10,482
Compensation and benefits paid or payable in shares	-	289	-		-		-		-		289
Options exercised	-	147	-		-		-		-		147
Dividends declared	-	-	(5,483	)	-		-		-		(5,483	)
Cumulative translation adjustments	-	-	-		17,646		-		(7	)	17,639
Pension and postretirement liability adjustments	-	-	-		(13	)	-		-		(13	)
Derivative valuation adjustment	-	-	-		4,480		-		-		4,480
March 31, 2018	$40	$428,859	$533,759		($113,788	)	($256,876	)	$3,150		$595,144

(a) As described in Note 2, the Company adopted ASC 606 effective January 1, 2018, which resulted in a decrease to Retained earnings of $5.6 million and a $0.3 million decrease to Noncontrolling interest.

(b) As described in Note 7, the Company adopted ASU 2016-16 effective January 1, 2018, which resulted in a $0.5 increase to Retained earnings.

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19. Recent Accounting Pronouncements

In February 2016, an accounting update was issued which requires the recognition of lease assets and lease liabilities on the balance sheet and the disclosure of key information about leasing arrangements for both lessees and lessors. The new standard is effective January 1, 2019 for public companies, with early adoption permitted. Currently, we are required to adopt the requirements of the new standard by applying a modified retrospective approach to the beginning of the earliest period presented in the financial statements. We are continuing to evaluate the expected impact to our consolidated financial statements and related disclosures. We will adopt the new standard effective January 1, 2019.

In November 2016, an accounting update was issued which provides clarification of how changes in restricted cash should be reported in the statement of cash flows. We adopted this accounting update on January 1, 2018 and it did not have a material effect on our financial statements.

In May 2017, an accounting update was issued to provide clarity as to when a company must account for changes to stock-based compensation programs as award modifications. Award modifications require an update to the value of the award, resulting in an adjustment to compensation expense. We have not made changes to awards in recent years that would be affected by this update, but such changes are possible in future periods. We adopted this accounting update on January 1, 2018 and it did not have a material effect on our financial statements.

In August 2017, an accounting update was issued which simplifies the application of hedge accounting to better align the financial reporting of hedging relationships with a company’s risk management activities. We do not expect a significant impact to our consolidated assets and liabilities, net earnings, or cash flows as a result of adopting this new standard. We plan to adopt the new standard effective January 1, 2019.

In February 2018, an accounting update was issued which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. This update is effective for annual and interim periods in fiscal years beginning after December 15, 2018. We are currently evaluating the impact of this update.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Management’s Discussion and Analysis (“MD&A”) is intended to help the reader understand the results of operations and financial condition of the Company. MD&A is provided as a supplement to, and should be read in conjunction with, our Consolidated Financial Statements and the accompanying Notes.

Forward-looking statements

This quarterly report and the documents incorporated or deemed to be incorporated by reference in this quarterly report contain statements concerning our future results and performance and other matters that are “forward-looking” statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “plan,” “project,” ”may,” “will,” “should” and variations of such words or similar expressions are intended, but are not the exclusive

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means, to identify forward-looking statements. Because forward-looking statements are subject to risks and uncertainties, (including, without limitation, those set forth in the Company’s most recent Annual Report on Form 10-K or prior Quarterly Reports on Form 10-Q) actual results may differ materially from those expressed or implied by the forward-looking statements.

There are a number of risks, uncertainties, and other important factors that could cause actual results to differ materially from the forward-looking statements, including, but not limited to:

· Conditions in the industries in which our Machine Clothing and Albany Engineered Composites segments compete, along with the general risks associated with macroeconomic conditions;

· In the Machine Clothing segment, greater than anticipated declines in the demand for publication grades of paper or, lower than anticipated growth in other paper grades;

· In the Albany Engineered Composites segment, unanticipated reductions in demand, delays, technical difficulties or cancellations in aerospace programs that are expected to drive growth;

· Failure to achieve or maintain anticipated profitable growth in our Albany Engineered Composites segment; and

· Other risks and uncertainties detailed in this report.

Further information concerning important factors that could cause actual events or results to be materially different from the forward-looking statements can be found in “Business Environment Overview and Trends” sections of this quarterly report, as well as in Item 1A-“Risk Factors” section of our most recent Annual Report on Form 10-K. Statements expressing our assessments of the growth potential of the Albany Engineered Composites segment are not intended as forecasts of actual future growth, and should not be relied on as such. While we believe such assessments to have a reasonable basis, such assessments are, by their nature, inherently uncertain. This report sets forth a number of assumptions regarding these assessments, including projected timing and volume of demand for aircraft and for LEAP aircraft engines. Such assumptions could prove incorrect. Although we believe the expectations reflected in our other forward-looking statements are based on reasonable assumptions, it is not possible to foresee or identify all factors that could have a material and negative impact on our future performance. The forward-looking statements included or incorporated by reference in this report are made on the basis of our assumptions and analyses, as of the time the statements are made, in light of our experience and perception of historical conditions, expected future developments, and other factors believed to be appropriate under the circumstances.

Except as otherwise required by the federal securities laws, we disclaim any obligations or undertaking to publicly release any updates or revisions to any forward-looking statement contained or incorporated by reference in this report to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

Business Environment Overview and Trends

Our reportable segments, Machine Clothing (MC) and Albany Engineered Composites (AEC), draw on the same advanced textiles and materials processing capabilities, and compete on the basis of product-based advantage that is grounded in those core capabilities.

The Machine Clothing segment is the Company’s long-established core business and primary generator of cash. While it has suffered from well-documented declines in publication grades in the

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Company’s traditional markets, the paper and paperboard industry is still expected to grow slightly on a global basis, driven by demand for packaging and tissue grades. We feel we are now well-positioned in key markets, with high-quality, low-cost production in growth markets, substantially lower fixed costs in mature markets, and continued strength in new product development, technical product support, and manufacturing technology. Because of pricing pressures and industry overcapacity, the machine clothing and paper industries will continue to face top line pressure. Nonetheless, the business retains the potential for maintaining stable earnings in the future. It has been a significant generator of cash, and we seek to maintain the cash-generating potential of this business by maintaining the low costs that we achieved through previous restructuring, and competing vigorously by using our differentiated and technically superior products to reduce our customers’ total cost of operation and improve their paper quality.

The AEC segment provides significant growth potential for our Company both near and long term. Our strategy is to grow by focusing our proprietary 3D-woven technology, as well as our conventional non-3D technology, on high-value aerospace and defense applications, while at the same time performing successfully on our portfolio of growth programs. AEC (including Albany Safran Composites, LLC (ASC), in which our customer SAFRAN Group owns a 10 percent noncontrolling interest) supplies a number of customers in the aerospace and defense industry. AEC’s largest aerospace customer is the SAFRAN Group and sales to SAFRAN (consisting primarily of fan blades and cases for CFM’s LEAP engine) accounted for approximately 14 percent of the Company’s consolidated net sales in 2017. Through ASC, AEC develops and sells 3D-woven composite aerospace components to SAFRAN, with the most significant current program being the production of fan blades and other components for the LEAP engine. AEC, through ASC, also supplies 3D-woven composite fan cases for the GE9X engine. AEC’s current portfolio of non-3D programs includes components for the F-35 Joint Strike Fighter, fuselage components for the Boeing 787, components for the CH-53K helicopter, vacuum waste tanks for Boeing 7-Series aircraft, and missile bodies for Lockheed Martin’s JASSM air-to-surface missiles. AEC is actively engaged in research to develop new applications in the aircraft engine, airframe, and automotive markets. In 2017, approximately 30 percent of AEC sales were related to U.S. government contracts or programs.

Consolidated Results of Operations

In the first quarter of 2018, the Company adopted the provisions of ASC 606, “Revenue from contracts with customers”, using the modified retrospective (or cumulative effect) method for transition. Under this transition method, periods prior to 2018 are not restated.

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The following table summarizes the effect on various operational metrics that resulted from the adoption of ASC 606:

Increase/(decrease) attributable to application of ASC 606 for the Three Months ended March 31, 2018 (in thousands)	Machine Clothing	Albany Engineered Composites	Income tax and noncontrolling interest effect		Total Company
Net sales	$4,211	$4,223	$  -		$8,434
Gross profit	1,039	869	-		1,908
Selling, technical, general and research expenses	60	-	-		60
Operating income and Income before income taxes	979	869	-		1,848
Income taxes	-	-	601		601
Net income	979	869	(601	)	1,247
Net income attributable to the noncontrolling interest	-	-	57		57
Net income attributable to the Company	$979	$869	($658	)	$1,190

Net sales

The following table summarizes our Net sales by business segment:

	Three months ended March 31,
(in thousands, except percentages)	2018	2017	% Change
Machine Clothing	$148,151	$142,827	3.7	%
Albany Engineered Composites	81,830	56,450	45.0	%
Total	$229,981	$199,277	15.4	%

The following table summarizes first-quarter 2018 Net sales, excluding the impact of ASC 606 and currency translation effects:

	Three months ended March 31,
(in thousands, except percentages)	Net sales as reported, Q1 2018	Increase due to ASC 606	Increase due to changes in currency translation rates	Q1 2018 sales on same basis as Q1 2017	% Change compared to Q1 2017
Machine Clothing	$148,151	$4,211	$6,760	$137,180	-4.0	%
Albany Engineered Composites	81,830	4,223	2,311	75,296	33.4	%
Total	$229,981	$8,434	$9,071	$212,476	6.6	%

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Three month comparison

· Changes in currency translation rates had the effect of increasing net sales by $9.1 million during the first quarter of 2018, as compared to 2017, principally due to the euro and Chinese renminbi strengthening in 2018.

· Excluding the effect of changes in currency translation rates:

· Net sales increased 10.9% compared to the same period in 2017. Excluding the additional effect of ASC 606, Net sales increased 6.6%.

· Net sales in MC decreased 1.0%. Excluding the additional effect of adopting ASC 606, Net sales decreased 4.0%, principally due to continuing declines in publication grade sales and lower sales in tissue and packaging, primarily in North America as first-quarter 2017 sales were particularly strong in those grades.

· Net sales in AEC increased 40.9%. Excluding the additional effect of adopting ASC 606, Net sales increased 33.4%, primarily driven by growth in the LEAP, Boeing 787, and F-35 programs.

Gross Profit

The following table summarizes gross profit by business segment:

	Three months ended March 31,
(in thousands, except percentages)	2018		2017
Machine Clothing	$70,181		$69,218
Albany Engineered Composites	11,524		6,833
Corporate expenses	(54	)	(23	)
Total	$81,651		$76,028
% of Net sales	35.5	%	38.2	%

Three month comparison

The overall increase in 2018 gross profit, as compared to the same period in 2017, was principally due to the net effect of the following individually significant items:

· AEC gross profit increased $4.7 million due to the increase in net sales, as described above, and improved labor productivity.

· An increase in MC gross profit, principally due to increased capacity utilization.

· Changes in currency translation rates did not have a significant effect on MC gross profit in 2018.

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Selling, Technical, General, and Research (STG&R)

Selling, Technical, General and Research (STG&R) expenses include; selling, general, administrative, technical, product engineering and research expenses. The following table summarizes STG&R expenses by business segment:

	Three months ended March 31,
(in thousands, except percentages)	2018		2017
Machine Clothing	$31,060		$30,845
Albany Engineered Composites	9,028		9,376
Corporate expenses	12,159		10,448
Total	$52,247		$50,669
% of Net sales	22.7	%	25.4	%

Three month comparison

The increase in STG&R expenses in the first three months of 2018, compared to the same period in 2017, was principally due to the net effect of the following individually significant items:

· In MC, revaluation of nonfunctional currency assets and liabilities resulted in first-quarter losses of $1.5 million in 2018, and $1.7 million in 2017.

· Corporate STG&R expenses increased by approximately $1.7 million principally due to higher costs for information systems to support continued growth in AEC.

Research and Development

The following table is a subset of the STG&R expenses table above and summarizes expenses associated with internally funded research and development by business segment:

	Three months ended March 31,
(in thousands)	2018	2017
Machine Clothing	$4,418	$4,519
Albany Engineered Composites	3,148	3,076
Total	$7,566	$7,595

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Restructuring Expense

In addition to the items discussed above affecting gross profit, and STG&R expenses, operating income was affected by restructuring costs of $8.6 million in the first quarter of 2018 and $2.7 million for the same period in 2017.

The following table summarizes restructuring expenses by business segment:

	Three months ended March 31,
(in thousands)	2018	2017
Machine Clothing	$8,352	$110
Albany Engineered Composites	221	2,571
Total	$8,573	$2,681

In the first quarter of 2018, the Company’s proposal to close its Machine Clothing production facility in Sélestat, France was approved by the French Labor Ministry. The restructuring program was driven by the Company’s need to balance manufacturing capacity with demand. In the first-quarter of 2018, we recorded restructuring expense of $8.1 million, which includes our estimate of the severance and outplacement costs for the approximately 50 positions that will be terminated under this plan. To date, we have recorded $9.2 million of restructuring charges related to this action. The Company has started to assess property, plant and equipment in that location to determine if equipment will be transferred to other facilities, or if the value of the assets can be recovered through a sale. Depending on the outcome of that assessment, additional restructuring charges could be recorded in future periods. Annual cost savings associated with this action will principally result in lower cost of goods sold in 2018.

AEC restructuring charges in the first quarter of 2017 principally relate to work force reductions in Salt Lake City, Utah and Rochester, New Hampshire. Cost savings associated with this action will result, principally, in lower costs of goods sold in 2018.

For more information on our restructuring charges, see Note 5 to the Consolidated Financial Statements in Item 1, which is incorporated herein by reference.

Operating Income

The following table summarizes operating income/(loss) by business segment:

	Three months ended March 31,
(in thousands)	2018		2017
Machine Clothing	$30,769		$38,263
Albany Engineered Composites	2,275		(5,114	)
Corporate expenses	(12,213	)	(10,471	)
Total	$20,831		$22,678

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Other Earnings Items

	Three months ended March 31,
(in thousands)	2018	2017
Interest expense, net	$4,288	$4,328
Other expense, net	1,452	826
Income tax expense	4,609	6,550
Net income attributable to the noncontrolling interest	237	135

Interest Expense, net

Interest expense, net, decreased slightly in 2018, as lower average interest rates were nearly offset by an increase in average debt outstanding. The lower average interest rates in 2018 principally resulted from the October 2017 repayment of the remaining $50 million of Prudential notes which carried an interest rate of 6.84%. See the Capital Resources section for further discussion of borrowings and interest rates.

Other Expense, net

The increase in Other expense, net included the following individually significant items:

Three month comparison

· For the first quarter of each year, foreign currency revaluations of cash and intercompany balances resulted in losses of $0.7 million in 2018 and $0.1 million in 2017, respectively.

Income Tax

The Company has operations which constitute a taxable presence in 18 countries outside of the United States. Countries outside of the United States had income tax rates that were both above and below the United States’ federal tax rate of 21% during the periods reported. The jurisdictional location of earnings is a significant component of our effective tax rate each year. The rate impact of this component is influenced by the specific location of non-U.S. earnings and the level of our total earnings. From period to period, the jurisdictional mix of earnings can vary as a result of operating fluctuations in the normal course of business, as well as the extent and location of other income and expense items, such as pension settlement and restructuring charges.

Three month comparison

The Company’s effective tax rates for the first quarter of 2018 and 2017 were 30.5% and 37.4%, respectively. The tax rate is affected by recurring items, such as the income tax rate in the U.S. and in non-U.S. jurisdictions and the mix of income earned in those jurisdictions. The tax rate is also affected by U.S. tax costs on foreign earnings, and by discrete items that may occur in any given year but are not consistent from year to year.

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Significant items that impacted the tax rate in the first quarter of 2018 included the following (percentages reflect the effect of each item as a percentage of Income before income taxes):

· The income tax rate on continuing operations, excluding discrete items, was 32.5%.

· A $0.1 million [-0.9%] discrete income tax benefit related to the exercise of U.S. stock options.

· A $0.2 million [-1.1%] net tax benefit related to other discrete items.

Significant items that impacted the first quarter of 2017 tax rate included the following:

· The income tax rate on continuing operations, excluding discrete items, was 32.6%.

· A $0.9 million [4.8%] discrete income tax expense related to provisions for and settlements of income tax audits.

Segment Results of Operations

Machine Clothing Segment

Machine Clothing is our primary business segment and accounted for 64% of our consolidated revenues during the first three months of 2018. Machine Clothing products are purchased primarily by manufacturers of paper and paperboard.

According to RISI, Inc., global production of paper and paperboard is expected to grow at an annual rate of approximately 1 percent over the next five years, driven primarily by global growth in packaging and tissue, which is expected to be greater than expected declines in publication grades.

While the MC business has suffered from well-documented declines in publication grades in the Company’s traditional markets, the paper and paperboard industry is still expected to grow slightly on a global basis, driven by demand for packaging and tissue grades. We feel we are now well-positioned in key markets, with high-quality, low-cost production in growth markets, substantially lower fixed costs in mature markets, and continued strength in new product development, technical product support, and manufacturing technology. Recent technological advances in paper machine clothing, while contributing to the papermaking efficiency of customers, have lengthened the useful life of many of our products and had an adverse impact on overall paper machine clothing demand.

The Company’s manufacturing and product platforms position us well to meet these shifting demands across product grades and geographic regions. Our strategy for meeting these challenges continues to be to grow share in all markets, with new products and technology, and to maintain our manufacturing footprint to align with global demand, while we offset the effects of inflation through continuous productivity improvement.

We have incurred significant restructuring charges in recent periods as we reduced Machine Clothing manufacturing capacity and administrative positions in the United States, Germany and France.

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Review of Operations

	Three months ended          March 31,
(in thousands, except percentages)	2018		2017
Net sales	$148,151		$142,827
Gross profit	70,181		69,218
% of net sales	47.4	%	48.5	%
STG&R expenses	31,060		30,845
Operating income	30,769		38,263

Net Sales

Three month comparison

· Net sales increased by 3.7%.

· Changes in currency translation rates had the effect of increasing first-quarter 2018 sales by $6.8 million compared to the same period in 2017. That currency translation effect was principally due to the euro and Chinese renminbi strengthening in 2018.

· Excluding the effect of changes in currency translation rates, Net sales in MC decreased $1.4 million or 1.0%. Excluding the additional effect of adopting ASC 606, Net sales decreased 4.0%, principally due to continuing declines in publication grade sales and lower sales in tissue and packaging, primarily in North America as first-quarter 2017 sales were particularly strong in those grades.

Gross Profit

Three month comparison

· The increase in MC gross profit was principally due to the application of ASC 606, as noted above.

· Changes in currency translation rates did not have a significant effect on gross profit for the first three months of 2018.

Operating Income

Three month comparison

The increase in operating income was principally due to the net effect of the following individually significant items:

· Gross profit increased $1.0 million due to the impact of ASC 606, as described above.

· STG&R expenses increased $0.2 million due to:

o In MC, revaluation of nonfunctional currency assets and liabilities resulted in first-quarter losses of $1.5 million in 2018, and $1.7 million in 2017.

· Restructuring charges were $8.4 million in the first-quarter of 2018, compared to $0.1 in the same period in 2017.

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Albany Engineered Composites Segment

The Albany Engineered Composites (AEC) segment, including Albany Safran Composites, LLC (ASC), in which our customer SAFRAN Group owns a 10 percent noncontrolling interest, provides highly engineered advanced composite structures to customers primarily in the aerospace and defense industries. AEC’s largest program relates to CFM International’s LEAP engine. AEC, through ASC, is the exclusive supplier of advanced composite fan blades and cases for this program under a long-term supply contract. Other significant AEC programs include components for the F-35 Joint Strike Fighter, fuselage frame components for the Boeing 787, and the fan case for the GE9X engine.

Review of Operations

	Three months ended March 31,
(in thousands, except percentages)	2018		2017
Net sales	$81,830		$56,450
Gross profit	11,524		6,833
% of net sales	14.1	%	12.1	%
STG&R expenses	9,028		9,376
Operating income/(loss)	2,275		(5,114	)

Net Sales

Three month comparison

The increase in net sales was principally due to the net effect of the following individually significant items:

· Excluding the effect of changes in currency translation rates, Net sales increased 40.9%. Excluding the additional effect of adopting ASC 606, Net sales increased 33.4%, primarily driven by growth in the LEAP, Boeing 787, and F-35 programs.

Gross Profit

Three month comparison

The increase in gross profit was principally due to the net effect of the following individually significant items:

· AEC gross profit increased $4.7 million due to an increase in Net sales, as described above, and improved labor productivity.

Long-term contracts

AEC has contracts with certain customers, including its contract for the LEAP program, where revenue is determined by a cost-plus fee agreement. Revenue earned under these arrangements accounted for approximately 50 and 45 percent of segment revenue for the first three months of 2018 and 2017, respectively.

In addition, AEC has long-term contracts in which the selling price is fixed. In accounting for those contracts, we estimate the profit margin expected at the completion of the contract and recognize a pro-rata share of that profit during the course of the contract using a cost-to-cost

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approach. Changes in estimated contract profitability will affect revenue and gross profit when the change occurs, which could have a significant favorable or unfavorable effect on revenue and gross profit in any reporting period.

Changes in contract estimates had a minor effect on gross profit in the first three months of 2018, and decreased gross profit by $0.7 million for the same period of 2017.

Operating Income/(Loss)

Three month comparison

The increase in operating income was principally due to the net effect of the following individually significant items:

· AEC operating income increased $7.4 million principally due to higher sales and strong productivity, as described above.

Liquidity and Capital Resources

Cash Flow Summary

	Three months ended March 31,
(in thousands)	2018		2017
Net income	$10,482		$10,974
Depreciation and amortization	20,948		17,293
Changes in working capital	(49,813	)	(32,181	)
Changes in other noncurrent liabilities and deferred taxes	(1,161	)	(2,208	)
Other operating items	597		1,550
Net cash used in operating activities	(18,947	)	(4,572	)
Net cash used in investing activities	(15,800	)	(25,083	)
Net cash used in financing activities	(2,458	)	(11,205	)
Effect of exchange rate changes on cash and cash equivalents	4,904		2,451
Decrease in cash and cash equivalents	(32,301	)	(38,409	)
Cash and cash equivalents at beginning of year	183,727		181,742
Cash and cash equivalents at end of period	$151,426		$143,333

Operating activities

Cash flow used by operating activities was $18.9 million and $4.6 million for the first three months of 2018 and 2017. The increase in use of cash in 2018 was principally due to working capital increases associated with the ramp of several key programs in AEC.

Cash paid for income taxes was $8.2 million and $9.1 million for the first three months of 2018 and 2017, respectively.

At March 31, 2018, we had $151.4 million of cash and cash equivalents, of which $137.6 million was held by subsidiaries outside of the United States.

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Investing and Financing Activities

Capital expenditures for the first three months were $15.8 million in 2018 and $25.1 million in 2017.

Dividends have been declared each quarter since the fourth quarter of 2001. Decisions with respect to whether a dividend will be paid, and the amount of the dividend, are made by the Board of Directors each quarter. To the extent the Board declares cash dividends in the future, we expect to pay such dividends out of operating cash flows. Future cash dividends will also depend on debt covenants and on the Board’s assessment of our ability to generate sufficient cash flows.

Capital Resources

We finance our business activities primarily with cash generated from operations and borrowings, largely through our revolving credit agreement as discussed below. Our subsidiaries outside of the United States may also maintain working capital lines with local banks, but borrowings under such local facilities tend not to be significant. Substantially all of our cash balance at March 31, 2018 was held by non-U.S. subsidiaries. Based on cash on hand and credit facilities, we anticipate that the Company has sufficient capital resources to operate for the foreseeable future. We were in compliance with all debt covenants as of March 31, 2018.

On November 7, 2017, we entered into a $685 million unsecured Five-Year Revolving Credit Facility Agreement (the “Credit Agreement”) which amended and restated the prior $550 million Agreement, entered into on April 8, 2016 (the “Prior Agreement”). Under the Credit Agreement, $506 million of borrowings were outstanding as of March 31, 2018. The applicable interest rate for borrowings was LIBOR plus a spread, based on our leverage ratio at the time of borrowing. At the time of the last borrowing on March 16, 2018, the spread was 1.500%. The spread was based on a pricing grid, which ranged from 1.250% to 1.750%, based on our leverage ratio. Based on our maximum leverage ratio and our Consolidated EBITDA, and without modification to any other credit agreements, as of March 31, 2018, we would have been able to borrow an additional $179 million under the Agreement.

On November 27, 2017, we terminated our interest rate swap agreements, originally entered into on May 9, 2016, that had effectively fixed the interest rate on $300 million of revolving credit borrowings, in order to enter into a new interest rate swap with a greater notional amount, and the same maturity as the Credit Agreement. We received cash of $6.3 million to terminate when the swap agreements were terminated and that payment will be amortized into interest expense through March 2021.

On May 6, 2016, we terminated other interest rate swap agreements that had effectively fixed the interest rate on $120 million of revolving credit borrowings, in order to enter into a new interest rate swap with a greater notional amount, and the same maturity as the Credit Agreement. We paid $5.2 million to terminate the swap agreements and that cost will be amortized into interest expense through June 2020.

On November 28, 2017, we entered into interest rate swap agreements for the period December 18, 2017 through October 17, 2022. These transactions have the effect of fixing the LIBOR portion of the effective interest rate (before addition of the spread) on $350 million of indebtedness drawn under the Credit Agreement at the rate of 2.11% during the period. Under the terms of these transactions, we pay the fixed rate of 2.11% and the counterparties pay a floating rate based on the one-month LIBOR rate at each monthly calculation date, which on March 16, 2018 was 1.79%, during the swap period. On March 16, 2018, the all-in-rate on the $350 million of debt was 3.61%.

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As of March 31, 2018, our leverage ratio was 2.55 to 1.00 and our interest coverage ratio was 9.50 to 1.00. We may purchase our Common Stock or pay dividends to the extent our leverage ratio remains at or below 3.50 to 1.00, and may make acquisitions with cash provided our leverage ratio does not exceed the limits noted above.

For more information, see Note 15 to the Consolidated Financial Statements in Item 1, which is incorporated herein by reference.

Off-Balance Sheet Arrangements

As of March 31, 2018, we have no off-balance sheet arrangements required to be disclosed pursuant to Item 303(a)(4) of Regulation S-K.

Recent Accounting Pronouncements

The information set forth under Note 19 contained in Item 1, “Notes to Consolidated Financial Statements”, which is incorporated herein by reference.

Non-GAAP Measures

This Form 10-Q contains certain non-GAAP metrics, including: net sales, and percent change in net sales excluding the impact of ASC 606 and/or currency translation effects (for each segment and the Company as a whole); EBITDA and Adjusted EBITDA (for each segment and the Company as a whole represented in dollars or as a percentage of net sales); net debt; and net income per share attributable to the Company, excluding adjustments. Such items are provided because management believes that, when reconciled from the GAAP items to which they relate, they provide additional useful information to investors regarding the Company’s operational performance.

Presenting sales and increases or decreases in sales, after currency effects and/or ASC 606 impacts are excluded, can give management and investors insight into underlying sales trends. EBITDA, or net income with interest, taxes, depreciation, and amortization added back, is a common indicator of financial performance used, among other things, to analyze and compare core profitability between companies and industries because it eliminates effects due to differences in financing, asset bases and taxes. An understanding of the impact in a particular quarter of specific restructuring costs, currency revaluation, inventory write-offs associated with discontinued businesses, or other gains and losses, on net income (absolute as well as on a per-share basis), operating income or EBITDA can give management and investors additional insight into core financial performance, especially when compared to quarters in which such items had a greater or lesser effect, or no effect. Restructuring expenses in the MC segment, while frequent in recent years, are reflective of significant reductions in manufacturing capacity and associated headcount in response to shifting markets, and not of the profitability of the business going forward as restructured. Net debt is, in the opinion of the Company, helpful to investors wishing to understand what the Company’s debt position would be if all available cash were applied to pay down indebtedness. EBITDA, Adjusted EBITDA and net income per share attributable to the Company, excluding adjustments, are performance measures that relate to the Company’s continuing operations.

Net sales, or percent changes in net sales, excluding currency rate effects, are calculated by converting amounts reported in local currencies into U.S. dollars at the exchange rate of a prior period. The impact of ASC 606 is determined by calculating what GAAP net sales could have been under the

51

prior ASC 605 standard, and comparing that amount to the amount reported under the new ASC 606 standard. These amounts are then compared to the U.S. dollar amount as reported in the current period. The Company calculates EBITDA by removing the following from Net income: Interest expense net, Income tax expense, Depreciation and amortization. Adjusted EBITDA is calculated by: adding to EBITDA costs associated with restructuring, and inventory write-offs associated with discontinued businesses; adding (or subtracting) revaluation losses (or gains); subtracting (or adding) gains (or losses) from the sale of buildings or investments; subtracting insurance recovery gains in excess of previously recorded losses; and subtracting (or adding) Income (or loss) attributable to the non-controlling interest in Albany Safran Composites (ASC). Adjusted EBITDA may also be presented as a percentage of net sales by dividing it by net sales. Net income per share attributable to the Company, excluding adjustments, is calculated by adding to (or subtracting from) net income attributable to the Company per share, on an after-tax basis: restructuring charges; inventory write-offs associated with discontinued businesses; discrete tax charges (or gains) and the effect of changes in the income tax rate; foreign currency revaluation losses (or gains); acquisition expenses; and losses (or gains) from the sale of investments.

EBITDA, Adjusted EBITDA, and net income per share attributable to the Company, excluding adjustments, as defined by the Company, may not be similar to similarly named measures of other companies. Such measures are not considered measurements under GAAP, and should be considered in addition to, but not as substitutes for, the information contained in the Company’s statements of income.

The following tables show the calculation of EBITDA and Adjusted EBITDA:

Three months ended March 31, 2018
(in thousands)	Machine Clothing	Albany Engineered Composites		Corporate expenses and other		Total Company
Operating income/(loss) (GAAP)	$30,769	$2,275		($12,213	)	$20,831
Interest, taxes, other income/expense	-	-		(10,349	)	(10,349	)
Net income/(loss) (GAAP)	30,769	2,275		(22,562	)	10,482
Interest expense, net	-	-		4,288		4,288
Income tax expense	-	-		4,609		4,609
Depreciation and amortization	8,362	11,156		1,430		20,948
EBITDA (non-GAAP)	39,131	13,431		(12,235	)	40,327
Restructuring expenses, net	8,352	221		-		8,573
Foreign currency revaluation losses	1,517	186		687		2,390
Pretax income attributable to the noncontrolling interest in ASC	-	(343	)	-		(343	)
Adjusted EBITDA (non-GAAP)	$49,000	$13,495		($11,548	)	$50,947

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Three months ended March 31, 2017
(in thousands)	Machine Clothing	Albany Engineered Composites		Corporate expenses and other		Total Company
Operating income/(loss) (GAAP)	$38,263	($5,114	)	($10,471	)	$22,678
Interest, taxes, other income/expense	-	-		(11,704	)	(11,704	)
Net income/(loss)  (GAAP)	38,263	(5,114	)	(22,175	)	10,974
Interest expense, net	-	-		4,328		4,328
Income tax expense	-	-		6,550		6,550
Depreciation and amortization	8,287	7,804		1,202		17,293
EBITDA (non-GAAP)	46,550	2,690		(10,095	)	39,145
Restructuring expenses, net	110	2,571		-		2,681
Foreign currency revaluation losses	1,663	98		102		1,863
Pretax income attributable to the noncontrolling interest in ASC	-	(171	)	-		(171	)
Adjusted EBITDA (non-GAAP)	$48,323	$5,188		($9,993	)	$43,518

The Company discloses certain income and expense items on a per-share basis. The Company believes that such disclosures provide important insight into underlying quarterly earnings and are financial performance metrics commonly used by investors. The Company calculates the quarterly per-share amount for items included in continuing operations by using the income tax rate based on income from continuing operations and the weighted-average number of shares outstanding for each period. Year-to-date earnings per-share effects are determined by adding the amounts calculated at each reporting period.

The following tables show the earnings per share effect of certain income and expense items:

Three months ended March 31, 2018	Pre tax	Tax	After tax	Per Share
(in thousands, except per share amounts)	Amounts	Effect	Effect	Effect
Restructuring expenses, net	$8,573	$2,786	$5,787	$0.18
Foreign currency revaluation losses	2,390	777	1,613	0.05
Net discrete income tax benefit	-	290	290	0.01
Favorable effect of applying ASC 606	1,848	658	1,190	0.04

* Includes tax and noncontrolling interest effects

Three months ended March 31, 2017	Pre tax	Tax	After tax	Per Share
(in thousands, except per share amounts)	Amounts	Effect	Effect	Effect
Restructuring expenses, net	$2,681	$979	$1,702	$0.05
Foreign currency revaluation losses	1,863	680	1,183	0.04
Net discrete income tax charge	-	831	831	0.03

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The following table contains the calculation of net income per share attributable to the Company, excluding adjustments:

	Three months ended March 31,
Per share amounts (Basic)	2018		2017
Net income attributable to the Company  (GAAP)	$0.32		$0.34
Adjustments:
Restructuring expenses, net	0.18		0.05
Discrete tax adjustments	(0.01	)	0.03
Foreign currency revaluation losses	0.05		0.04
Net income attributable to the Company, excluding adjustments  (non-GAAP)	$0.54		$0.46

The following table contains the calculation of AEC Adjusted EBITDA as a percentage of sales:

	For the three month periods ended:
(in thousands, except percentages)	March 31, 2018		March 31, 2017
AEC Adjusted EBITDA (non-GAAP)	$13,495		$5,188
AEC Net sales (GAAP)	81,830		56,450
AEC Adjusted EBITDA as a percentage of sales (non-GAAP)	16.5	%	9.2	%

The following table contains the calculation of net debt:

(in thousands)	March 31, 2018	December 31, 2017	March 31, 2017	December 31, 2016
Notes and loans payable	$226	$262	$274	$312
Current maturities of long-term debt	1,821	1,799	51,699	51,666
Long-term debt	518,656	514,120	428,477	432,918
Total debt	520,703	516,181	480,450	484,896
Cash and cash equivalents	151,426	183,727	143,333	181,742
Net debt	$369,277	$332,454	$337,117	$303,154

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The following table contains the reconciliation of MC 2018 projected Adjusted EBITDA to MC 2018 projected net income:

Machine Clothing Full-Year 2018 Outlook (in millions)	Actual, Three months ended March 31, 2018	Results for last three quarters of year to meet low end of range	Results for last three quarters of year to meet high end of range	Estimated range for full-year
Net income/(loss) (GAAP)	$31	$107	$122	$138-$153
Depreciation and amortization	8	24	24	32
EBITDA (non-GAAP)	$39	$131	$146	$170-$185
Restructuring expenses, net	8	*	*	*
Foreign currency revaluation losses	2	*	*	*
Adjusted EBITDA (non-GAAP)	$49	$131	$146	$180-$195

*Due to the uncertainty of these items, management is currently unable to project restructuring expenses and foreign currency revaluation gains/losses for 2018

Item 3. Quantitative and Qualitative Disclosures about Market Risk

For discussion of our exposure to market risk, refer to “Quantitative and Qualitative Disclosures about Market Risk”, which is included as an exhibit to this Form 10-Q.

Item 4. Controls and Procedures

a)  Disclosure controls and procedures. 

The principal executive officer and principal financial officer, based on their evaluation of disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of the end of the period covered by this Quarterly Report on Form 10-Q, have concluded that the Company’s disclosure controls and procedures are effective for ensuring that information required to be disclosed in the reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in filed or submitted reports is accumulated and communicated to the Company’s management, including its principal executive officer and principal financial officer as appropriate, to allow timely decisions regarding required disclosure.

(b)  Changes in internal control over financial reporting.  

During the first quarter of 2018, the Company implemented additional controls and modified other controls related to revenue recognition and the Company’s adoption of ASC 606. There were no other changes in the Company’s internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended) during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II – OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS

The information set forth above under Note 17 in Item 1, “Notes to Consolidated Financial Statements” is incorporated herein by reference.

Item 1A. Risk Factors

There have been no material changes in risks since December 31, 2017. For discussion of risk factors, refer to Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2017.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

We made no share purchases during the first quarter of 2018. We remain authorized by the Board of Directors to purchase up to 2 million shares of our Class A Common Stock.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not Applicable.

Item 5. Other Information

None.

Item 6. Exhibits

Exhibit No. Description 

10(u)  Employment Agreement

31.1  Certification of the Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act.

31.2  Certification of the Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act.

32.1  Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code).

99.1  Quantitative and qualitative disclosures about market risks as reported at March 31, 2018.

56

101  The following financial information from the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2018, formatted in extensible Business Reporting Language (XBRL), filed herewith:   

(i) Consolidated Statements of Income for the three months ended March 31, 2018 and 2017.

(ii) Consolidated Statements of Comprehensive Income/(Loss) for the three months ended March 31, 2018 and 2017.

(iii) Consolidated Balance Sheets at March 31, 2018 and December 31, 2017.

(iv) Consolidated Statements of Cash Flows for the three months ended March 31, 2018 and 2017.

(v) Notes to Consolidated Financial Statements.

As provided in Rule 406T of Regulation S-T, this information shall not be deemed “filed” for purposes of Sections 11 and 12 of the Securities Act and Section 18 of the Securities Exchange Act or otherwise subject to liability under those sections. 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

ALBANY INTERNATIONAL CORP.
(Registrant)

Date: May 8, 2018

By	/s/ John B. Cozzolino
	John B. Cozzolino
	Chief Financial Officer and Treasurer
	(Principal Financial Officer)

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EX-10.(U)

Exhibit 10 (u)

EMPLOYMENT AGREEMENT

This Agreement is entered into as of March 2, 2018 (the “Effective Date”) by and between Albany International Corp. (the "Company") and Olivier Jarrault ("Executive").

1. Duties and Scope of Employment.

(a) Positions and Duties. Commencing on the Effective Date, Executive will serve as President and Chief Executive Officer of the Company, reporting to the Company's Board of Directors (the "Board"). The period during which Executive is employed by the Company under this Agreement is referred to herein as the "Employment Term." During the Employment Term, Executive will render such business and professional services in the performance of his duties, consistent with Executive's position within the Company, as may be assigned to him by the Board. Executive shall be based at the Company's headquarters in Rochester, New Hampshire, or such other place, as may be reasonably requested by the Company.

Executive shall be nominated for election to the Board such that his nomination shall be voted on by the shareholders of the Company at the first annual shareholder’s meeting following the Effective Date.

(b) Obligations. During the Employment Term, Executive will devote Executive's full business efforts to the Company and will use good faith efforts to discharge Executive's obligations under this Agreement to the best of Executive's ability. For the duration of the Employment Term, Executive agrees not to serve as a director for any for-profit entity or organization or actively engage in any employment, occupation, or consulting activity, without the prior approval of the Board, in its sole discretion; provided, however, that Executive may, without the approval of the Board, (i) serve in any capacity with any civic, educational, or charitable organization and (ii) manage his personal investments; in each case, provided such services do not interfere with Executive's obligations to the Company.

2. Term of Agreement; At-Will Employment. Executive and the Company agree that Executive's employment with the Company constitutes "at-will" employment. Executive and the Company acknowledge that, subject to the provisions of Sections 5 and 6 of this Agreement, Executive's employment relationship with the Company may be terminated at any time, upon written notice to the other party, with or without good cause, at the option either of the Company or Executive.

3. Compensation.

(a) Base Salary. Commencing on the Effective Date, the Company will pay Executive an annual salary of $775,000 as compensation for his services (such annual salary, as is then effective, to be referred to herein as "Base Salary"). The Base Salary will be paid periodically in accordance with the Company's normal payroll practices and be subject to standard and customary withholdings.

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Executive's salary will be subject to review by the Compensation Committee of the Board, or any successor thereto (the "Committee"), at least annually, and adjustments will be made in the discretion of the Committee.

(b) Annual Bonus. Executive will be granted an Annual Performance Period (“APP”) award for service performed in 2018 under the Company's 2017 Incentive Plan, to be determined and paid in cash during early 2019. Under this award, Executive will be entitled to receive between 0% and 200% of his target award, based on performance goal attainment during 2018. Executive’s 2018 APP target award amount will be equal to 100% of his actual 2018 Base Salary, pro-rated for the portion of the year during which he is actually employed. (For example, as the Effective Date is March 1, 2018, the target amount would be $775,000 x 10/12, or $645,833.33). The Compensation Committee of the Company's Board of Directors has determined that the 2018 APP award goal for senior management, including Executive, will be a specified level of Company Adjusted EBITDA (as defined in the award agreements). The Committee retains the right to exercise its discretion, after the end of 2018, as in prior years, to determine to what extent the APP awards Executive and the other executive officers have been earned, and reserves the right to take individual performance factors into account, and to employ subjective and objective criteria. (The other terms of this award shall be as specified in the 2018 Annual Performance Award Agreement). Executive will be eligible in 2019 and thereafter to participate in the 2019 APP award or any other annual executive bonus program, as the same may be adopted, amended, modified or terminated by the Company, in accordance with its terms. Target bonuses in future periods will be at the discretion of the Compensation Committee.

(c) Long Term Incentive. Executive will be granted a Multi-year Performance Period (“MPP”) award for service performed in 2018, 2019 and 2020 under the Company's 2017 Incentive Plan, to be determined and paid in equity during early 2021. Under this award, Executive will be entitled to receive between 0% and 200% of his target award, based on performance goal attainment during the three year performance period. Executive’s 2018 MPP target award will be a share amount with a grant date value equal to 200% of his actual 2018 Base Salary, pro-rated for the portion of the performance period during which he is actually employed. The Compensation Committee of the Company's Board of Directors has determined that the 2018 MPP award goal for senior management, including Executive, will be a specified level of Company Adjusted EBITDA (as defined in the award agreements). The Committee retains the right to exercise its discretion, after the end of 2020, as in prior years, to determine to what extent the MPP awards Executive and the other executive officers have been earned, and reserves the right to take individual performance factors into account, and to employ subjective and objective criteria. (The other terms of this award shall be as specified in the 2018 Multi-year Performance Award Agreement). Executive will be eligible in 2019 thereafter to participate in the 2019 MPP award or any other long term executive bonus program, as the same may be adopted, amended, modified or terminated by the Company, in accordance with its terms. Target bonuses in future periods will be at the discretion of the Compensation Committee.

(d) Restricted Stock Units. Executive will receive, as of the Effective Date, a grant of stock units under the Company's Restricted Stock Unit Plan having a grant date value of $1,500,000,

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pursuant to the form of Restricted Stock Unit Award attached to this Agreement as Exhibit A.

(e) Relocation. Executive shall relocate to Rochester, New Hampshire area no later than March 1, 2019. In the interim, Executive shall be reimbursed for temporary housing expenses and shall be entitled to such other relocation benefits as provided for pursuant to the Company's Executive Relocation Policy, a copy of which has been provided to the Executive, with the caveat that neither the one-year policy expiration nor 90-day temporary housing limit shall apply to Executive. Provided such expenses are incurred in compliance with the Company’s travel and expense policy, the Company will pay or reimburse Executive for all flight expenses incurred prior to March 1, 2019 for travel from any Company work location to Los Angeles, California, travel from Los Angeles, California to any Company work location, and travel from any Company work location to any other Company work location through Los Angeles, California. The Company will provide tax assistance (gross-up) to Executive on all such expenses for travel to, from, or through Los Angeles, California that are personal to Executive or will appear as income on Executive's Form W-2.

(f) Reimbursement of Legal Fee. In the event that stock incentive awards or options are canceled or revoked by Executive’s former employer or litigation is commenced during the Employment Term between Executive and his former employer regarding the non-payment of stock incentive awards or options previously granted to Executive by his former employer as a result of his employment with the Company, the Company agrees to reimburse Executive for his reasonable legal fees actually incurred and paid, up to a maximum of $300,000. In the event that such litigation has not been commenced by December 31, 2019, the Company will be relieved of this reimbursement obligation.

4. Employee Benefits and Policies. Executive will be entitled to four weeks of vacation with pay during the remainder of 2018, and thereafter will be entitled to four weeks of vacation per calendar year, unless the Company's then-current vacation policy applicable to executive officers provides for a greater period. In addition, Executive will be eligible to participate in all of the Company's employee benefit plans, policies, and arrangements that are applicable to other executive officers of the Company (including, without limitation, 401(k), health care, vision, dental, life insurance and disability), subject to eligibility and otherwise on such terms and as such plans, policies, and arrangements may exist from time to time.

5. Termination of Employment. In the event Executive's employment with the Company terminates for any reason, Executive will be entitled to any (a) all unpaid Base Salary accrued to the effective date of termination, (b) unpaid but earned short-term or long-term cash bonuses, all unpaid but vested performance stock awards, all unpaid but vested portions of restricted stock units grants, subject to the terms of the applicable bonus plan, agreement or arrangement, (c) all benefits or compensation required to be provided after termination pursuant to, and in accordance with the terms of, any employee benefit plans, policies or arrangements applicable to Executive, (d) all unreimbursed business expenses incurred prior to termination and required to be reimbursed to Executive pursuant to the Company's policy, and (e) all rights to indemnification to which Executive may be entitled under the Company's Articles of Incorporation, Bylaws, or

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separate indemnification agreement, as applicable. In addition, if the termination is a “Qualifying Termination” (as defined in Section 6), Executive will be entitled to the amounts and benefits specified in Section 6.

6. Severance. If Executive's employment is terminated pursuant to a Qualifying Termination, Executive will receive an amount equal to twice the Base Salary plus twice the APP award target or other annual cash incentive target of Executive at the time of termination, payable in 24 substantially equal monthly installments (the “Severance Amount”). Executive's right to receive the Severance Amount is contingent upon Executive's continuing compliance with the provisions of Sections 8, 9 and 10 of this Agreement and subject to the Executive having executed and delivered to the Company an effective release of any and all claims in such form as is reasonably acceptable to the Company. Executive will not be required to mitigate the amount of payments under this Section 6, nor will any earnings that Executive may receive from any other source reduce any the Severance Amount. For purposes of this Agreement,

(a) “Qualifying Termination” shall mean (i) an involuntary termination of Executive’s employment by the Company without Cause, or (ii) a termination of Executive’s employment by Executive for Good Cause.

(b) “involuntary termination of Executive’s employment by the Company without cause" shall not include termination as the result of death or Disability.

(c) "Cause" shall be deemed to exist upon any of the following, determined by a majority of the members of the Board in its sole discretion: (i) the indictment of Executive for, or the entry of a plea of guilty or nolo contendere by Executive to, a felony charge or any crime involving moral turpitude; (ii) Unlawful conduct on the part of Executive that may reasonably be considered to reflect negatively on the Company or compromise the effective performance of Executive’s duties as determined by the Board in its sole discretion; (iii) Executive’s willful misconduct in connection with his duties or willful failure to use reasonable effort to perform substantially his responsibilities in the best interest of the Company (including, without limitation, breach by the Executive of this Agreement), except in cases involving Executive’s mental or physical incapacity or disability; (iv) Executive’s willful violation of the Company’s Business Ethics Policy, Code of Ethics or any other Company policy that may reasonably be considered to reflect negatively on the Company or compromise the effective performance of Executive’s duties as determined by the Board in its sole discretion; (v) fraud, material dishonesty, or gross misconduct in connection with the Company perpetrated by Executive; (vi) Executive undertaking a position or any activity in or in furtherance of competition with Company during the Employment Term; (vii) Executive having caused substantial harm to the Company with intent to do so or as a result of gross negligence in the performance of his duties; or (viii) Executive having wrongfully and substantially enriched himself at the expense of the Company.

(d) "Disability" shall be deemed to exist if (i) by reason of mental or physical illness the Executive has not performed his or her duties for a period of six consecutive months; and (ii) the Executive does not

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return to the performance of his duties within thirty days after written notice is given by Company that the Executive has been determined by the Board of Directors to be "Disabled" under the Company's long term disability policy.

(e) “Good Cause” shall mean a termination of Executive’s employment by Executive, as a consequence of , and following: (i) a material adverse change in Executive’s authority and responsibilities without Executive’s consent, (ii) a material reduction in Executive’s compensation, not proportionally and similarly affecting other senior executives, without Executive’s consent, (iii) the failure of the Company or any successor to fully honor the terms of any contractual agreements with Executive, or (iv) a Change in Control; provided, that, in the case (i), (ii) or (iii) , Executive shall have delivered written notice to the Company of his intention to terminate his employment for Good Cause within 90 days of the event or events constituting Good Cause, which notice specifies in reasonable detail the circumstances claimed to give rise to the Executive’s right to terminate employment for Good Cause, and the Company shall not have cured such circumstances within 30 days following receipt of such notice.

(f) ) "Change in Control" shall be deemed to have occurred if (i) there is a change of ownership of the Company as a result of one person, or more than one person acting as a group, acquiring ownership of stock of the Company that, together with stock held by such person or group, constitutes more than 50% of the total fair market value or total voting power of the stock of the Company, provided, however, that the acquisition of additional stock by a person or group who already owns 50% of the total fair market value or total voting power of the stock of the Company shall not be considered a Change in Control; (ii) notwithstanding that the Company has not undergone a change in ownership as described in subsection (i) above, there is a change in the effective control of the Company as a result of either (a) one person, or more than one person, acting as a group, acquiring (or having acquired during the 12 month period ending on the date of the most recent acquisition) ownership of stock of the Company possessing 30% or more of the total voting power of the stock of the Common, or (b) a majority of the members of the Board is replaced during any 12 month period by directors whose appointment or election is not endorsed by a majority of the members of the Board before the date of appointment or election, provided, however, that in either case the acquisition of additional control by a person or group who already is considered to effectively control the Company shall not be considered to a Change in Control; (iii) there is a change in ownership of a substantial portion of the Company's assets as a result of one person, or more than one person acting as a group, acquiring (or having acquired during the 12 month period ending on the date of the most recent acquisition) assets from the Company (A) constituting substantially all the assets of either of the Company’s two business units, or (B) that have a total gross fair market value equal to or more than 40% of the total gross fair market value of all the assets of the Company immediately before such acquisition or acquisitions; or (iv) the sale, spinoff, or other disposition of either of the Company’s two business units, provided, however, that there is no Change in Control if the transfer of assets is to the shareholders of the Company or an entity controlled by the shareholders of the Company.

7. Internal Revenue Code Section 280G. In the event that the benefits provided for in this Agreement, when aggregated with any other payments or benefits or to be received by Executive (the “Aggregate Benefits”), would (i) constitute “parachute payments” within the meaning of Section 280G of the Internal Revenue Code (the “Code”), and (ii) would be subject to the excise

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tax imposed by Section 4999 of the Code (the “Excise Tax”), then Executive’s Aggregate Benefits will be either: (a) delivered in full, or (b) delivered as to such lesser extent as would result in no portion of such Aggregate Benefits being subject to the Excise Tax, whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the Excise Tax, results in the receipt by Executive on an after-tax basis of the greatest amount of Aggregate Benefits, notwithstanding that all or some portion of such Aggregate Benefits may be taxable under Section 4999 of the Code. Unless the Company and Executive otherwise agree in writing, any determination required under this paragraph will be made in writing by an independent certified public accounting firm engaged by the Company (the “Accounting Firm”) whose determination will be conclusive and binding upon Executive and the Company for all purposes. For purposes of making the calculations required by this paragraph, the Accounting Firm may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code. The Company and Executive will furnish to the Accounting Firm such information and documents as the Accounting Firm may reasonably request in order to make a determination under this paragraph. To the extent any reduction in Aggregate Benefits is required by this paragraph, the Company and Executive shall cooperate so that the reduction results in Executive retaining the maximum amount of the Aggregate Benefits. 

8. Confidential Information. Executive agrees that all aspects of the Company's business, products, prospects, plans and strategies that have not been publicly disclosed, including, but not limited to, the identities, needs and preferences of its customers, internal business operations and pricing information, manufacturing know-how, technical attributes of products, annual or strategic business plans or analyses, and any and all other trade secrets (collectively, "Confidential Information"), are confidential and secret, shall be maintained in confidence and not disclosed to any third party, and shall remain the exclusive property of the Company. Any Confidential Information may be used or disclosed by the Executive solely to discharge his obligations hereunder, and shall not be used or disclosed for any other purpose, including, without limitation, for any purpose whatsoever following termination of Executive's employment. All Confidential Information in tangible form that is provided to the Executive shall be returned by the Executive to the Company within 30 days of any termination of employment, together with a statement certifying: (1) that Executive has returned all Confidential Information in his possession, (2) that Executive has at all times maintained the confidential nature of the Confidential Information, and (3) that Executive confirms his continuing obligations of confidentiality under this Agreement following such termination.

9. Non-disparagement. During the Employment Term, and thereafter, Executive will not knowingly disparage, criticize or otherwise make any derogatory statements regarding the Company, its shareholders, directors or its officers. The foregoing restriction will not apply to any truthful statements made in response to a valid subpoena or other compulsory legal process.

10. Restrictive Covenants. Executive acknowledges and recognizes the highly competitive nature of the Company’s business. Accordingly, Executive agrees as follows:

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A.That for a period of twenty-four (24) months following the termination of his employment with the Company for any reason, whether on his own behalf or on behalf of or in conjunction with any person, firm, partnership, joint venture, association, corporation or other business, organization, entity or enterprise whatsoever (“Person”), Executive shall not directly or indirectly:

(i) operate a Competitive Business;

(ii) enter into the employ of, or render any services to, any Person in respect of any Competitive Business;

(iii)acquire a financial interest in, or otherwise become actively involved with, any Competitive Business, directly or indirectly, as an individual, partner, shareholder, officer, director, principal, agent, trustee or consultant; provided, however, that in no event shall ownership of less than 2% of the outstanding capital stock of any corporation, in and of itself, be deemed a violation of this Release if such capital stock is listed on a national securities exchange or regularly traded in an over-the-counter market; or

(iv)interfere with, or attempt to interfere with, any business relationships between Albany or any of its subsidiaries or affiliates and their customers, clients, suppliers or investors; and

B.That for a period of twenty-four (24) months following the termination of his employment with the Company for any reason, whether on the Executive’s own behalf or on behalf of or in conjunction with any person, firm, partnership, joint venture, association, corporation or other business, organization, entity or enterprise whatsoever, Executive shall not directly or indirectly:

(i) solicit or encourage any employee of the Company or any of its subsidiaries or affiliates to leave the employment of the Company or any of its subsidiaries or affiliates; or

(ii) hire any such employee who was employed by the Company or any of its subsidiaries or affiliates as of the date of such termination or, if later, within the six-months before the date the person was hired by Executive.

Executive understands that the Company will have the right to seek injunctive relief in the event that Executive violates this paragraph 10 because the harm caused by such violation will be irreparable and difficult to calculate in terms of monetary damages.

For the purposes of this paragraph 10, a Competitive Business is any person or entity that manufactures or sells (a) papermachine clothing or belts used in the manufacture or paper, nonwovens or fiber cement, or (b) advanced composite materials, structures or components for use in defense, aerospace or automotive applications.

11. Blue Pencil Doctrine. It is expressly understood and agreed by Executive that although Executive considers the restrictions in this Agreement to be reasonable, if a final determination is made by a court of competent jurisdiction or an arbitrator that the time or territory or any other restriction contained in the Agreement is an unenforceable restriction against Executive, the provisions of this Agreement shall not be rendered void but shall be deemed amended to apply as to such maximum time and territory and to such maximum extent as such court or arbitrator may determine or indicate to be enforceable.

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12. Board Membership. Upon the termination of Executive's employment for any reason, Executive will be deemed to have resigned from any seat on the Board (and from any seats on the boards, and from any offices, of subsidiaries) held at such time, voluntarily, without any further required action by the Executive, as of the end of the Employment Term. Executive, at the Board's request, will execute any documents necessary to reflect his resignation.

13. Assignment. This Agreement will be binding upon and inure to the benefit of (a) the heirs, executors, and legal representatives of Executive upon Executive's death, and (b) any successor of the Company. Any such successor of the Company will be deemed substituted for the Company under the terms of this Agreement for all purposes. For this purpose, "successor" means any person, firm, corporation, or other business entity which at any time, whether by purchase, merger, or otherwise, directly or indirectly acquires all or substantially all of the assets or business of the Company. None of the rights of Executive to receive any form of compensation payable pursuant to this Agreement may be assigned or transferred except by will or the laws of descent and distribution. Any other attempted assignment, transfer, conveyance, or other disposition of

Executive's right to compensation or other benefits will be null and void.

14. Notices. All notices, requests, demands, and other communications called for hereunder will be in writing and will be deemed given (a) on the date of delivery if delivered personally, (b) one (1) day after being sent overnight by a well-established commercial overnight service, or (c) four (4) days after being mailed by registered or certified mail, return receipt requested, prepaid and addressed to the parties or their successors at the following addresses, or at such other addresses as the parties may later designate in writing:

If to the Company:

Attn: Chairman of the Board

Albany International Corp.

218 Airport Drive

Rochester, NH 03867

If to the Executive:

at the last residential address known by the Company. In addition, the Company shall make a reasonable effort to fax or e-mail such notice to Executive at his most recent personal fax number or e-mail address, with a copy to Executive's lawyer by the same method, to the extent known to the Company.

15. Severability. If any provision hereof becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable, or void, this Agreement will continue in full force and effect without said provision.

16. Arbitration. The Parties agree that any and all disputes arising out of the terms of this

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Agreement, Executive's employment by the Company, Executive's service as an officer or director of the Company, or Executive's compensation and benefits, their interpretation, and any of the matters herein released, will be subject to binding arbitration in New York, New York under the American Arbitration Association's National Rules for the Resolution of Employment Disputes. The Parties agree that the prevailing party in any arbitration will be entitled to injunctive relief in any court of competent jurisdiction to enforce the arbitration award. The Parties hereto agree to waive their right to have any dispute between them resolved in a court of law by a judge or jury. This paragraph will not prevent either party from seeking injunctive relief (or any other provisional remedy) from any court having jurisdiction over the Parties and the subject matter of their dispute relating to Executive's obligations under this Agreement.

17. Integration. This Agreement, together with the Exhibit, represents the entire agreement and understanding between the parties as to the subject matter herein and supersedes all prior or contemporaneous agreements whether written or oral. No waiver, alteration, or modification of any of the provisions of this Agreement will be binding unless in a writing that is signed by duly authorized representatives of the parties hereto, provided that any benefits or compensation provided to Executive pursuant to the terms of any plan, program, policy, or arrangement may be amended or terminated by the Company at any time, in accordance with the terms of such plan, program, policy or arrangement. In entering into this Agreement, no party has relied on or made any representation, warranty, inducement, promise or understanding that is not in this Agreement.

Executive acknowledges that Executive is not subject to any contract, obligation or understanding (whether written or not) that would in any way restrict the performance of Executive's duties as set forth in this Agreement.

18. Waiver of Breach. The waiver of a breach of any term or provision of this Agreement, which must be in writing, will not operate as or be construed to be a waiver of any other previous or subsequent breach of this Agreement.

19. Survival. The Company's and Executive's obligations under Section 6 and, to the extent provided in Section 6, the Executive's obligations under Sections 9 and 10, will survive the termination of this Agreement.

20. Headings. All captions and Section headings used in this Agreement are for convenient reference only and do not form a part of this Agreement.

21. Tax Withholding. All payments made pursuant to this Agreement will be subject to withholding of applicable taxes.

22. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York without regard to any provisions thereof relating to conflict of laws.

23. Certain Acknowledgment. Executive acknowledges that he has had the opportunity to obtain legal advice with respect to this Agreement, has had sufficient time to read, and has

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carefully read and fully understands all the provisions of this Agreement, and is knowingly and voluntarily entering into this Agreement. Executive represents that he has no other employment or other agreement, arrangements or undertakings that might restrict or impair his performance of this Agreement or to serve as an employee of the Company. Executive will not in connection with his employment by the Company, use or disclose any confidential, trade secret, or other proprietary information of any previous employer or other Person that Executive is not lawfully entitled to disclose.

24. Counterparts. This Agreement may be executed in counterparts, and each counterpart will have the same force and effect as an original and will constitute an effective, binding agreement on the part of each of the undersigned.

25. Certain Disclosures to Governmental Agencies and Others. Notwithstanding anything herein or in any other agreement with or policy (including without limitation any code of conduct or employee manual) of the Company, nothing herein or therein is intended to or shall: (i) prohibit Executive from making reports of possible violations of federal law or regulation (even if Executive participated in such violations) to, and cooperating with, any governmental agency or entity in accordance with the provisions of and rules promulgated under Section 21F of the Securities Exchange Act of 1934 or Section 806 of the Sarbanes-Oxley Act of 2002 or of any other whistleblower protection provisions of state or federal law or regulation; (ii) require notification to or prior approval by the Company of any such reporting or cooperation; or (iii) result in a waiver or other limitation of Executive’s rights and remedies as a whistleblower, including to a monetary award. Notwithstanding the foregoing, Executive is not authorized (and the above should not be read as permitting Executive) to disclose communications with counsel that were made for the purpose of receiving legal advice or that contain legal advice or that are protected by the attorney work product or similar privilege. Furthermore, Executive will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made (1) in confidence to a federal, state or local government official, either directly or indirectly, or to an attorney, in each case, solely for the purpose of reporting or investigating a suspected violation of law or (2) in a complaint or other document filed in a lawsuit or proceeding, if such filings are made under seal.

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IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company by a duly authorized officer, as of the day and year written below.

COMPANY:

ALBANY INTERNATIONAL CORP.

By:/s/ Joseph G. Morone___________________	Date: March 2, 2018
Name: Joseph G. Morone
Title: President and Chief Executive Officer
EXECUTIVE
/s/ Olivier Jarrault	Date: March 2, 2018

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EXHIBIT “A”

RESTRICTED UNIT AWARD AGREEMENT

Pursuant to the

ALBANY INTERNATIONAL CORP.

2003 RESTRICTED STOCK UNIT PLAN

* * * * *

Participant:	Olivier Jarrault
Award Date:	March 2, 2018

Number of Restricted Units Awarded: 23,567

* * * * *

THIS AWARD AGREEMENT, dated as of the Award Date specified above, is entered into by and between Albany International Corp. (the “Company”), and the Participant specified above, pursuant to the Amended and Restated Albany International Corp. 2003 Restricted Stock Unit Plan, as in effect and as amended from time to time (the “Plan”); and

WHEREAS, as an incentive to encourage the Participant to remain in the employ of the Company and its subsidiaries by affording the Participant a greater interest in the success of the Company and its subsidiaries, the Company desires to grant the Participant the Restricted Units provided herein;

WHEREAS, the Participant desires to obtain such Restricted Units on the terms and conditions provided for herein;

NOW, THEREFORE, in consideration of the premises, the mutual covenants herein set forth and other good and valuable considerations receipt of which is hereby acknowledged, the Company and the Participant agree as follows:

1. Incorporation by Reference; Plan Document Receipt. Except as otherwise provided herein, this Award Agreement is subject in all respects to the terms and provisions of the Plan (including, without limitation, any amendments thereto adopted at any time and from time to time and which are expressly intended to apply to the grant of the Restricted Units provided for herein), all of which terms and provisions are made a part of and incorporated in this Award Agreement as if they were expressly set forth herein. Any capitalized term not defined in this Award Agreement shall have the same meaning as is ascribed thereto in the Plan. The Participant hereby acknowledges receipt of a true copy of the Plan and that the Participant has read the Plan

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carefully and fully understands its content. In the event of a conflict between the terms of this Award Agreement and the terms of the Plan, the terms of the Plan shall control.

2. Award of Restricted Units; Credit to Restricted Unit Account. Subject to the terms hereof and the Plan, the Company hereby grants to the Participant, as of the Award Date specified above, the number of Restricted Units specified above. The Company shall record such Restricted Units in the Participant’s Restricted Unit Account.

3. Vesting. As permitted in Section 5.1 of the Plan, the following Vesting Dates shall apply with respect to the Restricted Units (including any additional Restricted Units credited as Cash Dividend Equivalents with respect to such Restricted Units) awarded hereunder and shall supersede any contrary provision in Section 5.1:

a. One-third (33.3%) of such Restricted Units (including any additional Restricted Units credited as Cash Dividend Equivalents with respect to such Restricted Units) shall vest on March 1, 2019, subject to the Participant being employed with the Albany Group on such Vesting Date;

b. One-third (33.3%) of such Restricted Units (including any additional Restricted Units credited as Cash Dividend Equivalents with respect to such Restricted Units) shall vest on March 1, 2020, subject to the Participant being employed with the Albany Group on such Vesting Date; and

c. One-third (33.3%) of such Restricted Units (including any additional Restricted Units credited as Cash Dividend Equivalents with respect to such Restricted Units) shall vest on March 1, 2021, subject to the Participant being employed with the Albany Group on such Vesting Date.

4. Additional Special Vesting. The special vesting provisions set forth in Section 5.2 of the Plan shall apply to the Restricted Units (including any additional Restricted Units credited as Cash Dividend Equivalents with respect to such Restricted Units) awarded hereunder.

5. Settlement; Payment Delay. The Restricted Units (including any additional Restricted Units credited as Cash Dividend Equivalents with respect to such Restricted Units) credited to Participant’s Restricted Unit Account pursuant to this Award Agreement shall be settled in accordance with the provisions of the Plan, including without limitation Section 6.1. Notwithstanding any provision to the contrary, if, pursuant to the provisions of Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder (the “Code”), any payment is required to be delayed as a result of the Participant being deemed to be a “specified employee” within the meaning of that term under Section 409A(a)(2)(B) of the Code, then any such payments under the Plan shall not be made prior to the earlier of (A) the expiration of the six month period measured from the date of the “separation from service” (as such term is defined in Treasury Regulations issued under Section 409A of the Code) or (B) the date of the Participant’s death. Upon the expiration of such period, all payments under the Plan delayed pursuant to this paragraph 6 shall be paid to the Participant in a lump sum, and any remaining payments due under the Plan shall be paid or provided in accordance with the normal payment dates specified for them herein.

Page 13 of 15

6. Amendment and Waiver. Neither this Award Agreement nor any provision hereof may be amended, modified, changed, discharged, terminated or waived orally, by any course of dealing or purported course of dealing or by any other means except (a) in the case of an amendment, modification, change or waiver that does not impair the rights of the Participant with respect to outstanding Restricted Units or that is deemed by the Committee to be advisable to avoid the imposition of any tax under Section 409A of the Code, by written notice to the Participant or (b) an agreement in writing signed by the Company and the Participant. No such written notice of agreement shall extend to or affect any provision of this Award Agreement not expressly amended, modified, changed, discharged, terminated or waived or impair any right consequent on such a provision. The waiver of or failure to enforce any breach of this Award Agreement shall not be deemed to be a waiver of or acquiescence in any other breach hereof.

7. Notices. Any notice required or permitted under this Award Agreement shall be in writing and shall be deemed properly given:

7.1        in the case of notice to the Company, if delivered in person to the Secretary of the Company, or mailed to the Company to the attention of the Secretary by registered mail (return receipt requested) at 216 Airport Drive, Rochester, New Hampshire, 03867, or at such other address as the Company may from time to time hereafter designate by written notice to the Participant; and

7.2         in the case of notice to the Participant, if delivered to him or her in person, or mailed to him or her by registered mail (return receipt requested) at the last known residence address provided by Participant to the Company or at such other address as the Participant may from time to time hereafter designate by written notice to the Company.

8. Governing Law. This Award Agreement shall be governed by and construed in accordance with the laws of the State of New York.

9. Binding Agreement; Assignment. This Award Agreement shall inure to the benefit of, be binding upon, and be enforceable by the Company and its successors and assigns. The Participant shall not assign any part of this Award Agreement without the prior express written consent of the Company.

10. Counterparts. This Award Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same instrument.

11. Headings. The titles and headings of the various sections of this Award Agreement have been inserted for convenience of reference only and shall not be deemed to be a part of this Award Agreement.

12. Further Assurances. Each party hereto shall do and perform (or shall cause to be done and performed) all such further acts and shall execute and deliver all such other agreements, certificates, instruments and documents as any other party hereto reasonably may request in order to carry out the intent and accomplish the purposes of this Award Agreement and the Plan and the consummation of the transactions contemplated thereunder.

13. Severability. The invalidity or unenforceability of any provisions of this Award Agreement in any jurisdiction shall not affect the validity, legality or enforceability of the remainder of this Award Agreement in such jurisdiction or the validity, legality or enforceability of any provision of this Award Agreement

Page 14 of 15

in any other jurisdiction, it being intended that all rights and obligations of the parties hereunder shall be enforceable to the fullest extent permitted by law.

14. Acceptance of Restricted Units. Unless, within 45 days following the date of this Award Agreement, the Company has received written notice from the Participant rejecting the Restricted Units, this Award Agreement shall be deemed to have been accepted by the Participant and shall constitute a legal and binding agreement between the Participant and the Company.

IN WITNESS WHEREOF, the Company has duly executed this Award Agreement as of the Award Date specified above.

ALBANY INTERNATIONAL CORP.

/s/ Joseph G. Morone_____________

Name: Joseph G. Morone

Title: President and Chief Executive Officer  

/s/ Olivier Jarrault_____________

Olivier Jarrault

Page 15 of 15

EX-31.1

EXHIBIT (31.1)

CERTIFICATION PURSUANT TO

RULE 13A-14 OF THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Olivier Jarrault, certify that:

1. I have reviewed this report on Form 10-Q of Albany International Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 8, 2018

By /s/ Olivier Jarrault

          Olivier Jarrault

          President and Chief Executive Officer

          (Principal Executive Officer)

 59

EX-31.2

EXHIBIT (31.2)

CERTIFICATION PURSUANT TO

RULE 13A-14 OF THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, John B. Cozzolino, certify that:

1. I have reviewed this report on Form 10-Q of Albany International Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 8, 2018

By /s/ John B. Cozzolino

     John B. Cozzolino

     Chief Financial Officer and Treasurer

     (Principal Financial Officer)

60

EX-32.1

EXHIBIT (32.1)

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Albany International Corp. (the Company) on Form 10-Q for the period ending March 31, 2018, as filed with the Securities and Exchange Commission on the date hereof (the Report), Olivier Jarrault, President and Chief Executive Officer, and John B. Cozzolino, Chief Financial Officer and Treasurer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities and Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 Dated: May 8, 2018

/s/ Olivier Jarrault

Olivier Jarrault

President and Chief Executive Officer

(Principal Executive Officer)

/s/ John B. Cozzolino

John B. Cozzolino

Chief Financial Officer and Treasurer

(Principal Financial Officer)

61

EX-99.1

EXHIBIT (99.1)

MARKET RISK SENSITIVITY – As of March 31, 2018

We have market risk with respect to foreign currency exchange rates and interest rates. The market risk is the potential loss arising from adverse changes in these rates as discussed below.

Foreign Currency Exchange Rate Risk

We have manufacturing plants and sales transactions worldwide and therefore are subject to foreign currency risk. This risk is composed of both potential losses from the translation of foreign currency financial statements and the remeasurement of foreign currency transactions. To manage this risk, we periodically enter into forward exchange contracts either to hedge the net assets of a foreign investment or to provide an economic hedge against future cash flows. The total net assets of non-U.S. operations and long-term intercompany loans denominated in nonfunctional currencies subject to potential loss amount to approximately $552.8 million. The potential loss in fair value resulting from a hypothetical 10% adverse change in quoted foreign currency exchange rates amounts to $55.3 million. Furthermore, related to foreign currency transactions, we have exposure to various nonfunctional currency balances totaling $80.2 million. This amount includes, on an absolute basis, exposures to assets and liabilities held in currencies other than our local entity’s functional currency. On a net basis, we had $50.5 million of foreign currency liabilities as of March 31, 2018. As currency rates change, these nonfunctional currency balances are revalued, and the corresponding adjustment is recorded in the income statement. A hypothetical change of 10% in currency rates could result in an adjustment to the income statement of approximately $5.1 million. Actual results may differ.

Interest Rate Risk

We are exposed to interest rate fluctuations with respect to our variable rate debt, depending on general economic conditions.

On March 31, 2018, we had the following variable rate debt:

(in thousands, except interest rates)
Short-term debt
Notes payable, end of period interest rate of 1.190%	$226
Long-term debt
Credit agreement with borrowings outstanding, net of fixed rate portion, at an end of period interest rate of 3.221% in 2018, due in 2022	156,000
Total	$156,226

Assuming borrowings were outstanding for an entire year, an increase of one percentage point in weighted average interest rates would increase interest expense by $1.6 million. To manage interest rate risk, we may periodically enter into interest rate swap agreements to effectively fix the interest rates on variable debt to a specific rate for a period of time. (See Note 16 to the Consolidated Financial Statements in Item 1, which is incorporated herein by reference).

62

XML

Document and Entity Information - shares shares in Millions	3 Months Ended
	Mar. 31, 2018	Apr. 30, 2018
Entity Registrant Name	ALBANY INTERNATIONAL CORP /DE/
Entity Central Index Key	0000819793
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2018
Common Class A [Member]
Entity Common Stock, Shares Outstanding		29.0
Common Class B [Member]
Entity Common Stock, Shares Outstanding		3.2

XML

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Statement [Abstract]
Net sales	$ 229,981	$ 199,277
Cost of goods sold	148,330	123,249
Gross profit	81,651	76,028
Selling, general, and administrative expenses	41,930	40,407
Technical and research expenses	10,317	10,262
Restructuring expenses, net	8,573	2,681
Operating income	20,831	22,678
Interest expense, net	4,288	4,328
Other expense, net	1,452	826
Income before income taxes	15,091	17,524
Income tax expense	4,609	6,550
Net income	10,482	10,974
Net income attributable to the noncontrolling interest	237	135
Net income attributable to the Company	$ 10,245	$ 10,839
Earnings per share attributable to Company shareholders - Basic	$ 0.32	$ 0.34
Earnings per share attributable to Company shareholders - Diluted	$ 0.32	$ 0.34
Shares of the Company used in computing earnings per share:
Basic	32,220	32,128
Diluted	32,236	32,164
Dividends declared per share, Class A and Class B	$ 0.17	$ 0.17

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 10,482	$ 10,974
Other comprehensive income/(loss), before tax:
Foreign currency translation adjustments	17,505	9,938
Amortization of pension liability adjustments:
Prior service credit	(1,114)	(1,113)
Net actuarial loss	1,297	1,347
Payments related to interest rate swaps included in earnings	180	600
Derivative valuation adjustment	5,715	416
Income taxes related to items of other comprehensive income/(loss):
Amortization of pension liability adjustment	(55)	(70)
Payments related to interest rate swaps included in earnings	(43)	(228)
Derivative valuation adjustment	(1,372)	(158)
Comprehensive income	32,595	21,706
Comprehensive income attributable to the noncontrolling interest	230	140
Comprehensive income attributable to the Company	$ 32,365	$ 21,566

XML

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 151,426	$ 183,727	$ 143,333	$ 181,742
Accounts receivable, net	248,538	202,675
Contract assets	42,895
Inventories	100,034	136,519
Income taxes prepaid and receivable	6,132	6,266
Prepaid expenses and other current assets	18,675	14,520
Total current assets	567,700	543,707
Property, plant and equipment, net	459,388	454,302
Intangibles, net	53,881	55,441
Goodwill	168,311	166,796
Deferred income taxes	70,174	68,648
Noncurrent receivables	35,338	32,811
Other assets	45,543	39,493
Total assets	1,400,335	1,361,198
LIABILITIES AND SHAREHOLDERS' EQUITY
Notes and loans payable	226	262
Accounts payable	45,694	44,899
Accrued liabilities	122,103	105,914
Current maturities of long-term debt	1,821	1,799
Income taxes payable	5,182	8,643
Total current liabilities	175,026	161,517
Long-term debt	518,656	514,120
Other noncurrent liabilities	100,170	101,555
Deferred taxes and other liabilities	11,339	10,991
Total liabilities	805,191	788,183
SHAREHOLDERS' EQUITY
Preferred stock, par value $5.00 per share; authorized 2,000,000 shares; none issued
Additional paid in capital	428,859	428,423
Retained earnings	533,759	534,082
Accumulated items of other comprehensive income:
Translation adjustments	(69,672)	(87,318)
Pension and postretirement liability adjustments	(50,549)	(50,536)
Derivative valuation adjustment	6,433	1,953
Treasury stock (Class A), at cost 8,431,335 shares in 2018 and 2017	(256,876)	(256,876)
Total Company shareholders' equity	591,994	569,768
Noncontrolling interest	3,150	3,247
Total equity	595,144	573,015
Total liabilities and shareholders' equity	1,400,335	1,361,198
Common Class A [Member]
SHAREHOLDERS' EQUITY
Common Stock	37	37
Common Class B [Member]
SHAREHOLDERS' EQUITY
Common Stock	$ 3	$ 3

XML

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2018	Dec. 31, 2017
Preferred Stock, par value per share	$ 5.00	$ 5.00
Preferred Stock, shares authorized	2,000,000	2,000,000
Preferred Stock, shares issued	0	0
Common Class A [Member]
Common Stock, par value per share	$ 0.001	$ 0.001
Common Stock, shares authorized	100,000,000	100,000,000
Common Stock, shares issued	37,447,669	37,395,753
Treasury stock, shares	8,431,335	8,431,335
Common Class B [Member]
Common Stock, par value per share	$ 0.001	$ 0.001
Common Stock, shares authorized	25,000,000	25,000,000
Common Stock, shares issued	3,233,998	3,233,998

XML

CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
OPERATING ACTIVITIES
Net income	$ 10,482	$ 10,974
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation	18,302	14,644
Amortization	2,646	2,649
Change in other noncurrent liabilities	(377)	(1,596)
Change in deferred taxes and other liabilities	(784)	(612)
Provision for write-off of property, plant and equipment	271	296
Non-cash interest expense		211
Compensation and benefits paid or payable in Class A Common Stock	289	989
Fair value adjustment on foreign currency option	37	54
Changes in operating assets and liabilities that (used)/provided cash:
Accounts receivable	(31,467)	(741)
Contract assets	2,116
Inventories	(9,244)	(14,921)
Prepaid expenses and other current assets	(4,063)	(1,917)
Income taxes prepaid and receivable	102
Accounts payable	(2,538)	3,524
Accrued liabilities	(1,185)	(10,971)
Income taxes payable	(3,431)	(2,486)
Noncurrent receivables	2,527	(3,915)
Other, net	(2,630)	(754)
Net cash used in operating activities	(18,947)	(4,572)
INVESTING ACTIVITIES
Purchases of property, plant and equipment	(15,771)	(25,045)
Purchased software	(29)	(38)
Net cash used in investing activities	(15,800)	(25,083)
FINANCING ACTIVITIES
Proceeds from borrowings	13,011	16,145
Principal payments on debt	(8,490)	(20,602)
Taxes paid in lieu of share issuance	(1,652)	(1,364)
Proceeds from options exercised	147	75
Dividends paid	(5,474)	(5,459)
Net cash used in financing activities	(2,458)	(11,205)
Effect of exchange rate changes on cash and cash equivalents	4,904	2,451
Decrease in cash and cash equivalents	(32,301)	(38,409)
Cash and cash equivalents at beginning of period	183,727	181,742
Cash and cash equivalents at end of period	$ 151,426	$ 143,333

XML

Significant Accounting Policies

3 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

Significant Accounting Policies

1. Significant Accounting Policies

Basis of Presentation

In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary for a fair presentation of results for such periods. Albany International Corp. (Albany, the Registrant, the Company, we, us, or our) consolidates the financial results of its subsidiaries for all periods presented. The results for any interim period are not necessarily indicative of results for the full year.

The preparation of financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in Albany International Corp.’s Consolidated Financial Statements and accompanying Notes. Actual results could differ materially from those estimates.

The information included in this Quarterly Report on Form 10-Q should be read in conjunction with “Risk Factors,” “Legal Proceedings,” “Management’s Discussion and Analysis of Financial Condition and Results of Operation,” “Quantitative and Qualitative Disclosures about Market Risk” and the Consolidated Financial Statements and Notes thereto included in Items 1A, 3, 7, 7A and 8, respectively, of the Albany International Corp. Annual Report on Form 10-K for the year ended December 31, 2017.

Effective January 1, 2018, we adopted the provisions of ASC 606, Revenue from contracts with customers, using the modified retrospective method for transition as discussed in Note 2, Revenue Recognition. Accounting policies have been applied consistently to periods presented, except for the application of ASC 606, as described in Note 2.

XML

Revenue Recognition

3 Months Ended

Mar. 31, 2018

Revenue Recognition [Abstract]

Revenue Recognition

2. Revenue Recognition

Effective January 1, 2018, the Company adopted the provisions of ASC 606, Revenue from contracts with customers, using the modified retrospective (or cumulative effect) method for transition. Under this transition method, periods prior to 2018 have not been restated and the cumulative effect of initially applying the new standard was recorded as an adjustment to Retained earnings. The standard replaces numerous requirements in U.S. GAAP, including industry-specific requirements, and provides companies with a single model for recognizing revenue from contracts with customers. We applied the new accounting standard to contracts which were not completed by December 31, 2017.

In our Machine Clothing (MC) business segment, prior to 2018, we recorded revenue from the sale of a product when persuasive evidence of an arrangement existed, delivery had occurred, title was transferred, the selling price was fixed, and collectability was reasonably assured. Under the new standard, we recognize MC revenue when we satisfy our performance obligations related to the manufacture and delivery of a product, which, in certain cases, results in earlier recognition of revenue associated with these contracts. For the MC segment, the cumulative effect of adopting ASC 606 included an increase to Accounts receivable, a decrease to Inventories, and an increase to Retained earnings.

In our Albany Engineered Composites (AEC) business segment, revenue from a number of long-term contracts was, prior to 2018, recorded on the basis of the units of delivery method, which is considered an output method. Under the new standard, revenue from most of these contracts is recognized over time using an input method as the measure of progress, which generally results in earlier recognition of revenue. Prior to adoption of the new standard, the classification of revenue in excess of progress billings on long-term contracts was included in Accounts receivable. Under the new standard, such assets are considered Contract assets, which are rights to consideration that are conditional on something other than the passage of time, such as completion of remaining performance obligations. As a result of adoption of the new standard, such assets were reclassified at transition from Accounts receivable to Contract assets. In addition, under the new standard, we are required to limit our estimate of contract values to the period of the legally enforceable contract, which in many cases is considerably shorter than the contract period used under the former standard. While certain contracts are expected to be profitable over the course of the program life when including expected renewals, under the new standard, our estimate of contract revenues and costs is limited to the estimated value of enforceable rights and obligations, excluding anticipated renewals. In some cases, this shorter contract period may result in a loss contract provision, and our transition adjustment included such loss accruals. Expected losses on projects includes losses on contract options that are probable of exercise, excluding profitable options that often follow. For AEC, the cumulative effect of adopting ASC 606 included increases to Contract assets and Accrued liabilities, and decreases to Accounts receivable, Inventories and Retained earnings.

The table below presents the cumulative effect of changes made to our December 31, 2017 Consolidated Balance Sheet as the result of adoption of ASC 606:

ALBANY INTERNATIONAL CORP.

CONSOLIDATED BALANCE SHEET

(in thousands, except share data)

(unaudited)

	As previously reported at December 31, 2017		Adjustments Increase/(decrease)		Opening balance, as adjusted, January 1, 2018
ASSETS
Cash and cash equivalents	$183,727		$     -		$183,727
Accounts receivable, net	202,675		10,210		212,885
Contract assets	-		44,872		44,872
Inventories	136,519		(47,054	)	89,465
Income taxes prepaid and receivable	6,266		-		6,266
Prepaid expenses and other current assets	14,520		-		14,520
Total current assets	543,707		8,028		551,735
Property, plant and equipment, net	454,302		-		454,302
Intangibles, net	55,441		-		55,441
Goodwill	166,796		-		166,796
Deferred income taxes	68,648		1,756		70,404
Noncurrent receivables	32,811		-		32,811
Other assets	39,493		1,119		40,612
Total assets	$1,361,198		$10,903		$1,372,101
LIABILITIES AND SHAREHOLDERS' EQUITY
Notes and loans payable	$262		$     -		$262
Accounts payable	44,899		-		44,899
Accrued liabilities	105,914		16,808		122,722
Current maturities of long-term debt	1,799		-		1,799
Income taxes payable	8,643		-		8,643
Total current liabilities	161,517		16,808		178,325
Long-term debt	514,120		-		514,120
Other noncurrent liabilities	101,555		-		101,555
Deferred taxes and other liabilities	10,991		52		11,043
Total liabilities	788,183		16,860		805,043
SHAREHOLDERS' EQUITY
Preferred stock, par value $5.00 per share;
authorized 2,000,000 shares; none issued	-		-		-
Class A Common Stock, par value $.001 per share;
authorized 100,000,000 shares; issued 37,395,753 in
2017 and 37,319,266 in 2016	37		-		37
Class B Common Stock, par value $.001 per share;
authorized 25,000,000 shares; issued and
outstanding 3,233,998 in 2017 and 2016	3		-		3
Additional paid in capital	428,423		-		428,423
Retained earnings	534,082		(5,630	)	528,452
Accumulated items of other comprehensive income:
Translation adjustments	(87,318	)	-		(87,318	)
Pension and postretirement liability adjustments	(50,536	)	-		(50,536	)
Derivative valuation adjustment	1,953		-		1,953
Treasury stock (Class A), at cost 8,431,335 shares in
2017 and 8,443,444 shares in 2016	(256,876	)	-		(256,876	)
Total Company shareholders' equity	569,768		(5,630	)	564,138
Noncontrolling interest	3,247		(327	)	2,920
Total equity	573,015		(5,957	)	567,058
Total liabilities and shareholders' equity	$1,361,198		$10,903		$1,372,101

Significant changes to our accounting policies as a result of adopting the new standard are discussed below.

For periods ending after December 31, 2017, we account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable.Revenue is measured based on the consideration specified in the contract with the customer, and excludes any amounts collected on behalf of third parties. We recognize revenue when we satisfy a performance obligation by transferring control over a product or service, or a series of distinct goods or services, to the customer which occurs either at a point in time, or over time, depending on the contract. A performance obligation is a promise in the contract to transfer a distinct good or service to the customer, and is the unit of account under the new revenue standard. “Control” refers to the ability to direct the use of, and obtain substantially all of the remaining benefits from the product. A contract’s transaction price is allocated to each material distinct performance obligation and is recognized as revenue when, or as, the performance obligation is satisfied.

In our Machine Clothing segment, our primary performance obligation in most contracts is to provide solution-based, custom-designed fabrics and belts to the customer. We satisfy this performance obligation upon transferring control of the product to the customer at a specific point in time. Generally, the customer obtains control when the product has been received at the location specified by the customer, at which time the only remaining obligations under the contract are fulfillment costs, which are accrued when control of the product is transferred.

In the Machine Clothing segment, some contracts with certain customers may also obligate us to provide various product-related services at no additional cost to the customer. When this obligation is material in the context of the contract with the customer, we recognize a separate performance obligation and allocate revenue to those services based on their estimated standalone selling price. The standalone selling price for these services is determined based upon an analysis of the services offered and an assessment of the price we might charge for such services as a separate offering. As we typically provide such services on a stand ready-basis, we recognize this revenue over time. Revenue allocated to such service performance obligations is the only Machine Clothing revenue that is recognized over time.

In our Albany Engineered Composites (AEC) business segment, we primarily enter into contracts to manufacture and deliver highly engineered advanced composite products to our customers. The majority of AEC revenue is from short duration, firm-fixed-price orders that are placed under a master contract containing general terms and conditions applicable to all orders placed under the agreement. To determine the proper revenue recognition method, we evaluate whether two or more orders or contracts should be combined and accounted for as one single contract, and whether the combined or single contract contains single or multiple performance obligations. This evaluation requires significant judgment, and the decision to combine a group of contracts, or to allocate revenue from the combined or single contract among multiple performance obligations could have a significant impact on the amount of revenue and profit recorded in a given period. For most AEC contracts, the nature of our promise (or our performance obligation) to the customer is to manage the contract and provide a significant service of integrating a complex set of tasks and components into a single project or capability, which will often result in the delivery of multiple highly interdependent and interrelated units.

At the inception of a contract we estimate the transaction price based on our current rights, and do not contemplate future modifications (including unexercised options) or follow-on contracts until they become legally enforceable. Many AEC contracts are subsequently modified to include changes in specifications, requirements or price, which may create new or change existing enforceable rights and obligations. Depending on the nature of the modification, we consider whether to account for the modification as an adjustment to the existing contract or as a separate contract. Generally, we are able to conclude that such modifications are not distinct from the existing contract, due to the significant integration of the obligations, and the interrelated nature of tasks, provided for in the modification and the existing contract. Therefore, such modifications are accounted for as if they were part of the existing contract, and recognized as a cumulative adjustment to revenue.

Revenue is recognized over time for a large portion of our contracts in AEC as most of our contracts have provisions that, under the guidance in ASC 606, are deemed to transfer control to the customer over time. Revenue is recognized based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress toward completion requires judgment and is based on the nature of the products or services to be provided. We generally use the cost-to-cost measure of progress for our contracts because it best depicts the transfer of assets to the customer which occurs as we incur costs to produce the contract deliverables. Under the cost-to-cost measure of progress, the extent of progress toward completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenue, including profit, is recorded proportionally as costs are incurred. Accounting for long-term contracts requires significant judgment and estimation, which could be considerably different if the underlying circumstances were to change. When adjustments in estimated contract revenue or costs are required, any changes from prior estimates are included in revenues or earnings in the period in which the change occurs.

In other AEC contracts, revenue is recognized at a point in time because the products are offered to multiple customers, or do not have an enforceable right to payment until the product is shipped or delivered to the location specified by the customer in the contract.

AEC’s largest source of revenue is derived from the LEAP contract (see Note 3) under a cost- plus-fee agreement. Beginning in 2018, the fee is variable based on our success in achieving certain cost targets. Revenue is recognized over time as costs are incurred. Under this contract, there is significant judgment involved in determining applicable contract costs and expected margin, and therefore in determining the amount of revenue to be recognized.

Payment terms granted to MC and AEC customers reflect general competitive practices. Terms vary with product, competitive conditions, and the country of operation.

The following table provides a summary of the composition of each business segment:

Segment	Unit	Principal Product or Service	Principal Locations
Machine Clothing (MC)	Machine Clothing	Paper machine clothing: Permeable and impermeable belts used in the manufacture of paper, paperboard, tissue and towel, and pulp Engineered fabrics: Belts used in the manufacture of nonwovens, fiber cement and several other industrial applications	World-wide
Albany Engineered Composites (AEC)	Albany Safran Composites (ASC)	3D-woven, injected composite components for aircraft engines	Rochester, NH, Commercy, France, Queretero, Mexico
	Airframe and engine  Components (Other AEC)	Composite airframe and engine components for military and commercial aircraft	Salt Lake City, UT Boerne, TX Queretero, Mexico

We disaggregate revenue earned from contracts with customers for each of our business segments based on the timing of revenue recognition, and groupings used for internal review purposes.

The following table disaggregates revenue for each business segment by timing of revenue recognition:

	For the Three Months Ended
	March 31, 2018
(in thousands)	Point in Time Revenue Recognition	Over Time Revenue Recognition	Total
Machine Clothing	$147,351	$800	$148,151
Albany Engineered Composites
ASC	-	40,781	40,781
Other AEC	6,040	35,009	41,049
Total Albany Engineered Composites	6,040	75,790	81,830
Total Revenue	$153,391	$76,590	$229,981

The following table disaggregates MC segment revenue by significant product or service (paper machine clothing (PMC) and engineered fabrics), and, for PMC, the geographical region to which the paper machine clothing was sold:

	For the Three Months Ended
(in thousands)	March 31, 2018
Americas PMC	$69,858
Eurasia PMC	56,933
Engineered Fabrics	21,360
Total Machine Clothing Net sales	$148,151

In accordance with ASC 606-10-50-14, we do not disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less. Contracts in the Machine Clothing segment are generally for periods of less than a year. Most contracts in the AEC segment are short duration firm-fixed price orders representing performance obligations with an original maturity of less than one year. Performance obligations as of March 31, 2018 that had an original duration of greater than one year totaled $115 million and relate primarily to firm contracts in the AEC segment. Of that amount, we expect to recognize as revenue approximately $50 million during 2018, with the remainder to be recognized between 2019 and 2021.

For some AEC contracts, we perform pre-production or nonrecurring engineering services. These costs are normally considered a fulfillment activity, rather than a performance obligation. Fulfillment activities that create resources that will be used in satisfying performance obligations in the future, and are expected to be recovered, are capitalized to Other Assets, which is classified as a noncurrent asset in the Consolidated Balance Sheets. The capitalized costs are amortized into Cost of goods sold over the period over which the asset is expected to contribute to future cash flows.

As a result of applying the cumulative effect method for transition to ASC 606, we are required to disclose the effect of the new standard on each line of the consolidated financial statements. The following tables show the balances as reported for the period ended March 31, 2018, and how the consolidated financial statements would have appeared if we had not adopted ASC 606.

ALBANY INTERNATIONAL CORP.

CONSOLIDATED STATEMENT OF INCOME

(in thousands, except per share amounts)

(unaudited)

	As reported for the Three Months Ended March 31, 2018	Adjustments to reverse effects of ASC 606		As adjusted for the Three months ended March 31, 2018 to exclude adoption of ASC 606
Net Sales	$229,981	($8,434	)	$221,547
Cost of goods sold	148,330	(6,526	)	141,804
Gross profit	81,651	(1,908	)	79,743
Selling, general, and administrative expenses	41,930	(60	)	41,870
Technical and research expenses	10,317	-		10,317
Restructuring expenses, net	8,573	-		8,573
Operating income	20,831	(1,848	)	18,983
Interest expense, net	4,288	-		4,288
Other expense, net	1,452	-		1,452
Income before income taxes	15,091	(1,848	)	13,243
Income tax expense	4,609	(601	)	4,008
Net income	10,482	(1,247	)	9,235
Net income attributable to the noncontrolling interest	237	(57	)	180
Net income attributable to the Company	$10,245	($1,190	)	$9,055
Earnings per share attributable to Company shareholders - Basic	$0.32	($0.04	)	$0.28
Earnings per share attributable to Company shareholders - Diluted	$0.32	($0.04	)	$0.28

ALBANY INTERNATIONAL CORP.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME/(LOSS)

(in thousands)

(unaudited)

	As reported for the Three Months Ended March 31, 2018		Adjustments to reverse effects of ASC 606		As adjusted for the Three months ended March 31, 2018 to exclude adoption of ASC 606
Net income	$10,482		($1,247	)	$9,235
Other comprehensive income/(loss), before tax:
Foreign currency translation adjustments	17,505		(308	)	17,197
Amortization of pension liability adjustments:
Prior service credit	(1,114	)	-		(1,114	)
Net actuarial loss	1,297		-		1,297
Payments related to interest rate swaps included in earnings	180		-		180
Derivative valuation adjustment	5,715		-		5,715
Income taxes related to items of other comprehensive income/(loss):
Pension/postretirement plan remeasurement	-		-		-
Amortization of pension liability adjustment	(55	)	-		(55	)
Payments related to interest rate swaps included in earnings	(43	)	-		(43	)
Derivative valuation adjustment	(1,372	)	-		(1,372	)
Comprehensive income	32,595		(1,555	)	31,040
Comprehensive income attributable to the noncontrolling interest	230		(57	)	173
Comprehensive income attributable to the Company	$32,365		($1,498	)	$30,867

ALBANY INTERNATIONAL CORP.

CONSOLIDATED BALANCE SHEET

(in thousands, except share data)

(unaudited)

	As reported March 31, 2018		Adjustments to reverse effects of ASC 606		As adjusted for the Three months ended March 31, 2018 to exclude adoption of ASC 606
ASSETS
Cash and cash equivalents	$151,426		$    -		$151,426
Accounts receivable, net	248,538		(21,720	)	226,818
Contract assets	42,895		(42,895	)	-
Inventories	100,034		53,752		153,786
Income taxes prepaid and receivable	6,132		-		6,132
Prepaid expenses and other current assets	18,675		-		18,675
Total current assets	567,700		(10,863	)	556,837
Property, plant and equipment, net	459,388		-		459,388
Intangibles, net	53,881		-		53,881
Goodwill	168,311		-		168,311
Income taxes receivable and deferred	70,174		(1,155	)	69,019
Noncurrent receivables	35,338		-		35,338
Other assets	45,543		(1,256	)	44,287
Total assets	$1,400,335		($13,274	)	$1,387,061
LIABILITIES AND SHAREHOLDERS' EQUITY
Notes and loans payable	$226		$    -		$226
Accounts payable	45,694		-		45,694
Accrued liabilities	122,103		(17,624	)	104,479
Current maturities of long-term debt	1,821		-		1,821
Income taxes payable	5,182		-		5,182
Total current liabilities	175,026		(17,624	)	157,402
Long-term debt	518,656		-		518,656
Other noncurrent liabilities	100,170		-		100,170
Deferred taxes and other liabilities	11,339		(51	)	11,288
Total liabilities	805,191		(17,675	)	787,516
SHAREHOLDERS' EQUITY
Preferred stock, par value $5.00 per share;
authorized 2,000,000 shares; none issued	-		-		-
Class A Common Stock, par value $.001 per share;
authorized 100,000,000 shares; issued 37,447,669 in 2018
and 37,395,753 in 2017	37		-		37
Class B Common Stock, par value $.001 per share;
authorized 25,000,000 shares; issued and
outstanding 3,233,998 in 2018 and 2017	3		-		3
Additional paid in capital	428,859				428,859
Retained earnings	533,759		4,439		538,198
Accumulated items of other comprehensive income:
Translation adjustments	(69,672	)	(308	)	(69,980	)
Pension and postretirement liability adjustments	(50,549	)	-		(50,549	)
Derivative valuation adjustment	6,433		-		6,433
Treasury stock (Class A), at cost 8,431,335 shares in 2018
and 2017	(256,876	)	-		(256,876	)
Total Company shareholders' equity	591,994		4,131		596,125
Noncontrolling interest	3,150		270		3,420
Total equity	595,144		4,401		599,545
Total liabilities and shareholders' equity	$1,400,335		($13,274	)	$1,387,061

ALBANY INTERNATIONAL CORP.

CONSOLIDATED STATEMENT OF CASH FLOW

(in thousands)

(unaudited)

	As reported for the Three Months ended March 31, 2018		Adjustments to reverse effects of ASC 606		As adjusted for the Three months ended March 31, 2018 to exclude adoption of ASC 606
OPERATING ACTIVITIES
Net income	$10,482		($1,247	)	$9,235
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation	18,302		-		18,302
Amortization	2,646		-		2,646
Change in other noncurrent liabilities	(377	)	-		(377	)
Change in deferred taxes and other liabilities	(784	)	1,103		319
Provision for write-off of property, plant and equipment	271		-		271
Non-cash interest expense	-		-		-
Compensation and benefits paid or payable in Class A Common Stock	289		-		289
Fair value adjustment on foreign currency option	37		-		37
Changes in operating assets and liabilities that (used)/provided cash:
Accounts receivable	(31,467	)	7,324		(24,143	)
Contract assets	2,116		(2,116	)	-
Inventories	(9,244	)	(8,023	)	(17,267	)
Prepaid expenses and other current assets	(4,063	)	-		(4,063	)
Income taxes prepaid and receivable	102		-		102
Accounts payable	(2,538	)	-		(2,538	)
Accrued liabilities	(1,185	)	(250	)	(1,435	)
Income taxes payable	(3,431	)	-		(3,431	)
Noncurrent receivables	2,527		-		2,527
Other, net	(2,630	)	3,209		579
Net cash provided by operating activities	(18,947	)	-		(18,947	)
Net cash used in investing activities	(15,800	)			(15,800	)
Net cash used in financing activities	(2,458	)	-		(2,458	)
Effect of exchange rate changes on cash and cash equivalents	4,904		-		4,904
Decrease in cash and cash equivalents	(32,301	)	-		(32,301	)
Cash and cash equivalents at beginning of period	183,727		-		183,727
Cash and cash equivalents at end of period	$151,426		$-		$151,426

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Reportable Segments

3 Months Ended

Mar. 31, 2018

Segment Reporting [Abstract]

Reportable Segments

3. Reportable Segments

As described in Note 2, the Company adopted the provisions of ASC 606, “Revenue from contracts with customers”, effective January 1, 2018, using the cumulative effect method for transition. Periods prior to 2018 have not been restated. The following tables show data by reportable segment, reconciled to consolidated totals, and the impact that ASC 606 had on first-quarter results, included in the consolidated financial statements:

	Three months ended March 31,				Three months ended March 31, 2018
(in thousands)	2018		2017		Increase/(decrease) attributable to application of ASC 606
Net sales
Machine Clothing	$148,151		$142,827		$4,211
Albany Engineered Composites	81,830		56,450		4,223
Consolidated total	$229,981		$199,277		$8,434
Operating income/(loss)
Machine Clothing	$30,769		$38,263		$979
Albany Engineered Composites	2,275		(5,114	)	869
Corporate expenses	(12,213	)	(10,471	)	-
Operating income	20,831		22,678		1,848
Reconciling items:
Interest income	(382	)	(107	)	-
Interest expense	4,670		4,435		-
Other expense, net	1,452		826		-
Income before income taxes	$15,091		$17,524		$1,848

At the January 1, 2018 date of adoption of ASC 606, Machine Clothing assets increased by $22 million, and AEC assets decreased by $13 million. Except for the effect of adopting ASC 606, there were no material changes in the total assets of the reportable segments for the three months ended March 31, 2018.

As described in Note 4, effective January 1, 2018, the Company adopted an accounting update that affects the classification of components of pension and postretirement benefit costs. Some costs that were previously included in operating expenses shall now be included in Other expense, net. Periods prior to 2018 have been restated to conform to the current year presentation.

The Albany Engineered Composites (AEC) segment, including Albany Safran Composites, LLC (ASC), in which our customer SAFRAN Group (Safran) owns a 10 percent noncontrolling interest, provides highly engineered, advanced composite structures to customers in the aerospace and defense industries. AEC’s largest program relates to CFM International’s LEAP engine. Under this program, AEC through ASC, is the exclusive supplier of advanced composite fan blades and cases under a long-term supply contract. The manufacturing spaces used for the production of parts under the long-term supply agreement are owned by Safran, and leased to the Company at either market rent or a minimal cost. All lease expense is reimbursable by Safran to the Company due to the cost-plus nature of the supply agreement. AEC net sales to Safran were $40.8 and $25.4 million in the first quarter of 2018 and 2017, respectively. The total of Accounts receivables, Contract assets and Noncurrent receivables due from Safran amounted to $90.0 million and $58.6 million as of March 31, 2018 and December 31, 2017, respectively.

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

	Three months ended March 31,
(in thousands)	2018	2017
Restructuring expenses, net
Machine Clothing	$8,352	$110
Albany Engineered Composites	221	2,571
Consolidated total	$8,573	$2,681

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Pensions and Other Postretirement Benefit Plans

3 Months Ended

Mar. 31, 2018

Retirement Benefits [Abstract]

Pensions and Other Postretirement Benefit Plans

4. Pensions and Other Postretirement Benefit Plans

Pension Plans

The Company has defined benefit pension plans covering certain U.S. and non-U.S. employees. The U.S. qualified defined benefit pension plan has been closed to new participants since October 1998 and, as of February 2009, benefits accrued under this plan were frozen. As a result of the freeze, employees covered by the pension plan will receive, at retirement, benefits already accrued through February 2009 but no new benefits accrue after that date. Benefit accruals under the U.S. Supplemental Executive Retirement Plan ("SERP") were similarly frozen. The eligibility, benefit formulas, and contribution requirements for plans outside of the U.S. vary by location.

Other Postretirement Benefits

The Company also provides certain postretirement benefits to retired employees in the U.S. and Canada. The Company accrues the cost of providing postretirement benefits during the active service period of the employees. The Company currently funds the plans as claims are paid.

The composition of the net periodic benefit plan cost for the three months ended March 31, 2018 and 2017, was as follows:

	Pension plans				Other postretirement benefits
(in thousands)	2018		2017		2018		2017
Components of net periodic benefit cost:
Service cost	$699		$651		$58		$61
Interest cost	1,820		1,828		507		553
Expected return on assets	(2,247	)	(1,993	)	-		-
Amortization of prior service cost/(credit)	8		9		(1,122	)	(1,122	)
Amortization of net actuarial loss	558		645		739		702
Net periodic benefit cost	$838		$1,140		$182		$194

In 2018, the Company adopted the provisions of ASU 2017-07, “Compensation – Retirement Benefits: improving the presentation of net periodic pension cost and net periodic postretirement benefit cost”. This accounting update requires that service cost for defined benefit pension and postretirement plans be reported in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. Additionally, the other components of net periodic benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. The Company elected to report the components of net periodic benefit cost other than the service component in the line item, Other expense, net in the Consolidated Statements of Income.

We restated 2017 expenses using the application of a practical expedient, which permits the usage of amounts disclosed in the prior year Pension and Other Postretirement benefit plans footnote as the estimation basis for applying the retrospective presentation requirements. The tables below show the 2017 amounts reclassified by segment and financial statement line item that resulted from adopting this update:

Effect by segment operating expenses:

(in thousands)	Increase/(decrease) in expense for the three months ended March 31, 2017
Machine Clothing	($2	)
Albany Engineered Composites	-
Corporate expenses	(620	)
Total operating expenses	($622	)
Other expense, net	$622

Effect by Statement of Income line item:

(in thousands)	Increase/(decrease) in expense for the three months ended March 31, 2017
Cost of goods sold	($123	)
Selling, general and administrative expenses	(499	)
Total operating expenses	($622	)
Other expense, net	$622

XML

Restructuring

3 Months Ended

Mar. 31, 2018

Restructuring and Related Activities [Abstract]

Restructuring

5. Restructuring

On October 5, 2017, the Company filed a form 8-K to announce the initiation of discussions regarding a proposal to discontinue operations at its Machine Clothing production facility in Sélestat, France. During 2017, we incurred $1.1 million of restructuring expense associated with this proposal but were unable to reasonably estimate the total costs for severance and other charges associated with the proposal as there was no assurance, at that time, that approval for the proposal would be obtained. In the first quarter of 2018 the plan was approved by the French Labor Ministry. The restructuring program was driven by the Company’s need to balance manufacturing capacity with demand. In the first-quarter of 2018, we recorded restructuring expense of $8.1 million, which includes our estimate of the severance and outplacement costs for the approximately 50 positions that will be terminated under this plan. To date, we have recorded $9.2 million of restructuring charges related to this action. The Company has started to assess property, plant and equipment in that location to determine if equipment will be transferred to other facilities, or if the value of the assets can be recovered through a sale. Depending on the outcome of that assessment, additional restructuring charges could be recorded in future periods.

AEC restructuring charges in the first quarter of 2017 principally relate to work force reductions in Salt Lake City, Utah and Rochester, New Hampshire. To date, we have recorded $5.2 million of restructuring charges related to these actions.

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

	Three months ended March 31,
(in thousands)	2018	2017
Machine Clothing	$8,352	$110
Albany Engineered Composites	221	2,571
Total	$8,573	$2,681

Three months ended March 31, 2018	Total restructuring costs incurred	Termination and other costs	Impairment of assets
(in thousands)
Machine Clothing	$8,352	$8,352	$-
Albany Engineered Composites	221	221	-
Total	$8,573	$8,573	$-

Three months ended March 31, 2017	Total restructuring costs incurred	Termination and other costs	Impairment of assets
(in thousands)
Machine Clothing	$110	$110	$-
Albany Engineered Composites	2,571	2,456	115
Total	$2,681	$2,566	$115

We expect that approximately $8.2 million of Accrued liabilities for restructuring at March 31, 2018 will be paid within one year and approximately $1.7 million will be paid in the following year. The table below presents the year-to-date changes in restructuring liabilities for 2018 and 2017, all of which related to termination costs:

(in thousands)	December 31, 2017	Restructuring charges accrued	Payments		Currency translation /other	March 31, 2018
Total termination and other costs	$3,326	$8,573	($2,051	)	$25	$9,873

(in thousands)	December 31, 2016	Restructuring charges accrued	Payments		Currency translation /other	March 31, 2017
Total termination and other costs	$5,559	$2,566	($2,126	)	$17	$6,016

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Other expense, net

3 Months Ended

Mar. 31, 2018

Other Income and Expenses [Abstract]

Other Expense/(Income), net

6. Other expense, net

The components of Other expense, net are:

	Three months ended March 31,
(in thousands)	2018	2017
Currency transaction losses	$690	$101
Bank fees	108	149
Components of net periodic pension and postretirement cost other than service	263	622
Other	391	(46	)
Total	$1,452	$826

In 2018, the Company adopted the provisions of ASU 2017-07. This accounting update affected the classification of components of net periodic benefit cost, other than service cost, to be reported separately from the service cost component and outside of operating income. The Company elected to report other components of net periodic pension and post retirement cost in Other expense, net. The comparative consolidated statement of income was restated as required by this update. Further detail of this accounting update is disclosed in Note 4.

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Income Taxes

3 Months Ended

Mar. 31, 2018

Income Tax Disclosure [Abstract]

Income Taxes

7. Income Taxes

The following table presents components of income tax expense for the three months ended March 31, 2018 and 2017:

	Three months ended March 31,
(in thousands)	2018		2017
Income tax based on income from continuing operations, at estimated tax rates of 32.5% and 32.6%, respectively	$4,899		$5,719
Income tax before discrete items	4,899		5,719
Discrete tax expense:
Exercise of US Stock Options	(123	)	(21	)
Adjustments to prior period tax liabilities	(46	)	-
Provision for/resolution of tax audits and contingencies, net	5		852
Other	(126	)	-
Total income tax expense	$4,609		$6,550

The first-quarter estimated effective tax rate on continuing operations was 32.5 percent in 2018, compared to 32.6 percent for the same period in 2017.

Income tax expense for the quarter was computed in accordance with ASC 740-270 “Income Taxes – Interim Reporting”. Under this method, loss jurisdictions which cannot recognize a tax benefit with regard to their generated losses are excluded from the annual effective tax rate (AETR) calculation and their taxes will be recorded discretely in each quarter.

The Company’s tax rate is affected by recurring items such as the income tax rate in the U.S. and in non-U.S. jurisdictions and the mix of income earned in those jurisdictions, including changes in losses and income from excluded loss jurisdictions, and the impact of discrete items in the respective quarter. Additionally, tax adjustments resulting from the 2017 Tax Cut and Jobs Act (TCJA) have affected the Company’s 2018 AETR, including the global intangible low-taxed income (GILTI) inclusion, the foreign-derived intangible income (FDII) deduction and the corporate U.S. tax rate reduction from 35% to 21%.

The TCJA significantly revised the U.S. corporate income tax regime by, among other things, lowering the U.S. corporate tax rate from 35% to 21% effective January 1, 2018, while also repealing the deduction for domestic production activities, implementing a territorial tax system and imposing a transition tax on deemed repatriated earnings of foreign subsidiaries. U.S. GAAP requires that the impact of tax legislation be recognized in the period in which the law was enacted.

In December 2017, the Securities and Exchange Commission staff issued Staff Accounting Bulletin No. 118 (SAB 118), which addresses how a company recognizes provisional amounts when a company does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete its accounting for the effect of the changes in the TCJA. The measurement period ends when a company has obtained, prepared and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year. The Company elected to apply the measurement period guidance provided in SAB 118.

Deferred tax assets and liabilities: At December 31, 2017, the Company re-measured certain deferred tax assets and liabilities based on the federal rate of 21%. However, the Company is still analyzing certain aspects of the TCJA, such as IRC section 162(m), and refining its calculations which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts. As such, no adjustment has been recorded to the provisional amount previously recorded in 2017.

Foreign tax effects: At December 31, 2017, the Company recorded a provisional federal tax charge due to the transition tax on deemed repatriation of foreign earnings. No adjustment has been recorded to the provisional amount previously recorded in 2017. The Company is still analyzing its U.S. tax attributes such as accumulated foreign earnings and profits, foreign tax paid, and other tax components involved in foreign tax credit calculations for prior years back to 1986.

The Company has elected to account for the global intangible low taxed income (GILTI) as a current-period expense when incurred (the “period cost method”). The estimated net GILTI inclusion calculated by the Company (including the gross up on the GILTI inclusion and the apportioned foreign tax credits applied to GILTI) was $20 million and increased the AETR by 2.7%.The Company also calculated an estimated foreign-derived intangible income (FDII) deduction of $7 million which decreased the AETR by 1.8% in the first quarter of 2018. Because of the complexity of the GILTI and FDII tax rules and the lack of legislative guidance, the Company continues to evaluate these provisions of the TCJA and the application of ASC 740, Income Taxes. The final impact on the Company from the TCJA’s GILTI and FDII tax legislation may differ from the estimate calculated by the Company. Such differences could be material, due to, among other things, changes in interpretations of the TCJA, future legislative action to address questions that arise because of the TCJA, changes in accounting standards for income taxes or related interpretations in response to the TCJA, or any updates or changes to estimates the Company has utilized to calculate the GILTI inclusion and FDII deduction.

The Company continues to believe that the Base Erosion Anti-Abuse Tax (BEAT) does not apply under the Company’s current policies. Therefore no adjustments for BEAT have been recorded.

The Company records the residual U.S. and foreign taxes on certain amounts of foreign earnings that have been targeted for repatriation to the U.S. These amounts are not considered to be indefinitely reinvested, and the Company accrued for the tax cost on these earnings to the extent they cannot be repatriated in a tax-free manner. The Company has targeted for repatriation $97.8 million of current year and prior year earnings of the Company’s foreign operations. If these earnings were distributed, the Company would be subject to foreign withholding taxes of $2.1 million which have already been recorded.

The Company conducts business globally and, as a result, files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. In the normal course of business the Company is subject to examination by taxing authorities throughout the world, including major jurisdictions such as the United States, Brazil, Canada, France, Germany, Italy, Mexico, and Switzerland. The open tax years in these jurisdictions range from 2007 to 2018. The Company is currently under audit in non-U.S. tax jurisdictions, including but not limited to Canada and Italy.

It is reasonably possible that over the next twelve months the amount of unrecognized tax benefits may change within a range of a net increase of nil to a net decrease of $0.6 million, from the reevaluation of uncertain tax positions arising in examinations, in appeals, or in the courts, or from the closure of tax statutes of limitations.

In October 2016, an accounting update, ASU 2016-16 was issued which modifies the recognition of income tax effects on intercompany transfers of assets, other than inventory. The Company adopted this update effective January 1, 2018, which resulted in a decrease of $0.5 million to deferred tax liabilities, with an offsetting increase to Retained earnings.

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Earnings Per Share

3 Months Ended

Mar. 31, 2018

Earnings Per Share [Abstract]

Earnings Per Share

8. Earnings Per Share

The amounts used in computing earnings per share and the weighted average number of shares of potentially dilutive securities are as follows:

	Three months ended March 31,
(in thousands, except market price and earnings per share)	2018	2017
Net income attributable to the Company	$10,245	$10,839
Weighted average number of shares:
Weighted average number of shares used in
calculating basic net income per share	32,220	32,128
Effect of dilutive stock-based compensation plans:
Stock options	16	36
Weighted average number of shares used in
calculating diluted net income per share	32,236	32,164
Average market price of common stock used
for calculation of dilutive shares	$63.86	$46.69
Net income per share:
Basic	$0.32	$0.34
Diluted	$0.32	$0.34

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Noncontrolling Interest

3 Months Ended

Mar. 31, 2018

Noncontrolling Interest [Abstract]

Noncontrolling Interest

9. Noncontrolling Interest

The table below presents a reconciliation of income attributable to the noncontrolling interest and noncontrolling equity, and the impact that the ASC 606 standard had on first-quarter results, included in the consolidated financial statements:

(in thousands)	2018		2017
Net income of ASC	$2,681		$1,601
Less: Return attributable to the Company's preferred holding	312		254
Net income of ASC available for common ownership	$2,369		$1,347
Ownership percentage of noncontrolling shareholder	10	%	10	%
Net income attributable to noncontrolling interest	$237		$135
Noncontrolling interest, beginning of year	$3,247		$3,767
Decrease attributable to application of ASC 606	(327	)	-
Net income attributable to noncontrolling interest	237		135
Changes in other comprehensive income attributable to noncontrolling interest	(7	)	5
Noncontrolling interest	$3,150		$3,907

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Accumulated Other Comprehensive Income (AOCI)

3 Months Ended

Mar. 31, 2018

Accumulated items of other comprehensive income:

Accumulated Other Comprehensive Income (AOCI)

10. Accumulated Other Comprehensive Income (AOCI)

The table below presents changes in the components of AOCI for the period December 31, 2017 to March 31, 2018:

(in thousands)	Translation adjustments		Pension and postretirement liability adjustments		Derivative valuation adjustment	Total Other Comprehensive Income
December 31, 2017	($87,318	)	($50,536	)	$1,953	($135,901	)
Other comprehensive income/(loss) before reclassifications	17,646		(141	)	4,343	21,848
Interest expense related to swaps reclassified to the Consolidated Statements of Income, net of tax	-		-		137	137
Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income, net of tax	-		128		-	128
Net current period other comprehensive income	17,646		(13	)	4,480	22,113
March 31, 2018	($69,672	)	($50,549	)	$6,433	($113,788	)

The table below presents changes in the components of AOCI for the period December 31, 2016 to March 31, 2017:

(in thousands)	Translation adjustments		Pension and postretirement liability adjustments		Derivative valuation adjustment	Total Other Comprehensive Income
December 31, 2016	($133,298	)	($51,719	)	$828	($184,189	)
Other comprehensive income/(loss) before reclassifications	10,126		(193	)	258	10,191
Interest expense related to swaps reclassified to the Consolidated Statements of Income, net of tax	-		-		372	372
Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income, net of tax	-		164		-	164
Net current period other comprehensive income	10,126		(29	)	630	10,727
March 31, 2017	($123,172	)	($51,748	)	$1,458	($173,462	)

The table below presents the expense/(income) amounts reclassified, and the line items of the Consolidated Statements of Income that were affected for the periods ended March 31, 2018 and 2017.

	Three months ended March 31,
(in thousands)	2018		2017
Pretax Derivative valuation reclassified from Accumulated Other Comprehensive Income:
Expense related to interest rate swaps included in Income before taxes (a)	$180		$600
Income tax effect	(43	)	(228	)
Effect on net income due to items reclassified from Accumulated Other Comprehensive Income	$137		$372
Pretax pension and postretirement liabilities reclassified from Accumulated Other Comprehensive Income:
Amortization of prior service credit	($1,114	)	($1,113	)
Amortization of net actuarial loss	1,297		1,347
Total pretax amount reclassified (b)	183		234
Income tax effect	(55	)	(70	)
Effect on net income due to items reclassified from Accumulated Other Comprehensive Income	$128		$164

(a) Included in Interest expense are payments related to the interest rate swap agreements and amortization of swap buyouts (see Note 16).

(b) These accumulated other comprehensive income components are included in Other expense, net (see Note 4).

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Accounts Receivable

3 Months Ended

Mar. 31, 2018

Receivables [Abstract]

Accounts Receivable

11. Accounts Receivable

Accounts receivable includes trade receivables and bank promissory notes. As a result of adopting ASC 606, Revenue in excess of progress billings on long-term contracts in the Albany Engineered Composites segment was reclassified to Contract assets in 2018. Including that reclassification, the cumulative effect from the adoption of ASC 606 was an increase to Accounts receivable of $10.2 million as Accounts receivable recorded in the cumulative adjustment exceeded that reclassification.

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 March 31, 2018 and December 31, 2017, Accounts receivable consisted of the following:

(in thousands)	March 31, 2018		December 31, 2017
Trade and other accounts receivable	$237,767		$152,375
Bank promissory notes	18,865		20,255
Revenue in excess of progress billings	-		37,964
Allowance for doubtful accounts	(8,094	)	(7,919	)
Total accounts receivable	$248,538		$202,675

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

As of March 31, 2018 and December 31, 2017, Noncurrent receivables consisted of the following:

(in thousands)	March 31, 2018	December 31, 2017
Noncurrent receivables	$35,338	$32,811

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Contract Assets and Liabilities

3 Months Ended

Mar. 31, 2018

Contract Assets And Liabilities

Contract Assets and Liabilities

12. Contract Assets and Liabilities

Beginning in 2018, Contract assets includes unbilled amounts typically resulting from sales under contracts when the cost-to-cost method of revenue recognition is utilized, and revenue recognized exceeds the amount billed to the customer. For periods prior to 2018, that asset was included in Accounts receivable. At the date of adoption of ASC 606, we recorded Contract assets of $44.9 million, which included the amount that was in Accounts receivable as of December 31, 2017, and additional transition adjustments that resulted from the retrospective application of ASC 606 to contracts in process at the time of adoption.

Contract assets are transferred to Accounts receivable, net when the entitlement to pay becomes unconditional. Contract liabilities include advance payments and billings in excess of revenue recognized. Contract liabilities are included in Accrued liabilities in the Consolidated Balance Sheet.

Contract assets and Contract liabilities are reported on the Consolidated Balance Sheets in a net position on a contract-by-contract basis at the end of each reporting period. Contract assets and contract liabilities were as follows:

(in thousands)	March 31, 2018	December 31, 2017
Contract assets	$42,895	$   -
Contract liabilities	3,030	-

Contract assets decreased $2.0 million during the quarter ended March 31, 2018 as compared to the January 1, 2018 opening balance sheet, as adjusted for the adoption of ASC 606 (see Note 2).

The decrease was primarily due to an increase in amounts billed to customers, in excess of the recognition of unbilled revenue related to the satisfaction or partial satisfaction of performance obligations. There were no significant impairment losses related to our Contract assets during the quarter ended March 31, 2018.

Contract liabilities increased $2.3 million during the quarter ended March 31, 2018, as compared to the January 1, 2018 opening balance sheet, as adjusted for the adoption of ASC 606, primarily due to increased billings in excess of revenue recognized. Revenue recognized for the three-month period ended March 31, 2018, that was included in the Contract liability balance at the beginning of the year was less than $1 million, and represented revenue primarily in the ASC reporting unit.

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Inventories

3 Months Ended

Mar. 31, 2018

Inventory Disclosure [Abstract]

Inventories

13. Inventories

Costs included in inventories are raw materials, labor, supplies and allocable depreciation and overhead. Raw material inventories are valued on an average cost basis. Other inventory cost elements are valued at cost, using the first-in, first-out method. The Company writes down the inventories for estimated obsolescence, and to lower of cost or net realizable value based upon assumptions about future demand and market conditions. If actual demand or market conditions are less favorable than those projected by the Company, additional inventory write-downs may be required. Once established, the original cost of the inventory less the related write-down represents the new cost basis of such inventories. The decrease in Inventories in 2018, compared to the balances as of December 31, 2017, was principally due to the cumulative effect of adopting ASC 606 (see Note 2) which decreased Inventories by $47.1 million.

As of March 31, 2018 and December 31, 2017, inventories consisted of the following:

(in thousands)	March 31,  2018	December 31, 2017
Raw materials	$42,411	$42,215
Work in process	44,184	65,448
Finished goods	13,439	28,856
Total inventories	$100,034	$136,519

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Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

14. Goodwill and Other Intangible Assets

Goodwill and intangible assets with indefinite useful lives are not amortized, but are tested for impairment at least annually. Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in each business combination.

Determining the fair value of a reporting unit requires the use of significant estimates and assumptions, including revenue growth rates, operating margins, discount rates, and future market conditions, among others. Goodwill and other long-lived assets are reviewed for impairment whenever events, such as significant changes in the business climate, plant closures, changes in product offerings, or other circumstances indicate that the carrying amount may not be recoverable.

To determine fair value, we utilize two market-based approaches and an income approach. Under the market-based approaches, we utilize information regarding the Company as well as publicly available industry information to determine earnings multiples and sales multiples. Under the income approach, we determine fair value based on estimated future cash flows of each reporting unit, discounted by an estimated weighted-average cost of capital, which reflects the overall level of inherent risk of a reporting unit and the rate of return an outside investor would expect to earn.

In the second quarter of 2017, the Company applied the qualitative assessment approach in performing its annual evaluation of goodwill and concluded that no impairment provision was required. There were no amounts at risk due to the large spread between the fair, and carrying value, of each reporting unit.

We are continuing to amortize certain patents, trade names, customer relationships, customer contracts and technology assets that have finite lives. The gross carrying value, accumulated amortization and net values of intangible assets and goodwill as of December 31, 2017 and March 31, 2018, were as follows:

As of March 31, 2018 (in thousands)	Weighted average amortization life in years	Gross carrying amount	Accumulated amortization		Net carrying amount
Amortized intangible assets:
AEC trade names	15	$140	($126	)	$14
AEC technology	15	370	(296	)	74
Customer relationships	15	48,421	(6,462	)	41,959
Customer contracts	6	17,471	(5,830	)	11,641
Other intangibles	5	322	(129	)	193
Net amortized intangible assets		$66,724	($12,843	)	$53,881
Unamortized intangible assets:
MC Goodwill		$72,581	$-		$72,581
AEC Goodwill		95,730	-		95,730
Total unamortized intangible assets:		$168,311	$-		$168,311

As of December 31, 2017 (in thousands)	Weighted average amortization life in years	Gross carrying amount	Accumulated amortization		Net carrying amount
Amortized intangible assets:
AEC trade names	15	$140	($125	)	$15
AEC technology	15	370	(290	)	80
Customer relationships	15	48,421	(5,654	)	42,767
Customer contracts	6	17,471	(5,102	)	12,369
Other intangibles	5	322	(112	)	210
Net amortized intangible assets		$66,724	($11,283	)	$55,441
Unamortized intangible assets:
MC Goodwill		$71,066	$-		$71,066
AEC Goodwill		95,730	-		95,730
Total unamortized intangible assets:		$166,796	$-		$166,796

The changes in intangible assets, net and goodwill from December 31, 2017 to March 31, 2018, were as follows:

(in thousands)	December 31, 2017	Amortization		Currency Translation	March 31, 2018
Amortized intangible assets:
AEC trade names	$15	$(1	)	$-	$14
AEC technology	80	(6	)	-	74
Customer relationships	42,767	(808	)	-	41,959
Customer contracts	12,369	(728	)	-	11,641
Other intangibles	210	(17	)	-	193
Net amortized intangible assets	$55,441	($1,560	)	$-	$53,881
Unamortized intangible assets:
MC Goodwill	$71,066	$-		$1,515	$72,581
AEC Goodwill	95,730	-		-	95,730
Total unamortized intangible assets:	$166,796	$-		$1,515	$168,311

Estimated amortization expense of intangibles for the years ending December 31, 2018 through 2022, is as follows:

	Annual amortization
Year	(in thousands)
2018	$6,234
2019	6,234
2020	6,234
2021	6,163
2022	3,949

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Financial Instruments

3 Months Ended

Mar. 31, 2018

Long-term Debt and Capital Lease Obligations [Abstract]

Financial Instruments

15. Financial Instruments

Long-term debt, principally to banks and bondholders, consists of:

(in thousands, except interest rates)	March 31, 2018		December 31, 2017
Revolving credit agreement with borrowings outstanding at an end of period interest rate of 3.49% in 2018 and 3.40% in 2017 (including the effect of interest rate hedging transactions, as described below), due in 2022	$506,000		$501,000
Obligation under capital lease, matures 2022	14,477		14,919
Long-term debt	520,477		515,919
Less: current portion	(1,821	)	(1,799	)
Long-term debt, net of current portion	$518,656		$514,120

On November 7, 2017, we entered into a $685 million unsecured Five-Year Revolving Credit Facility Agreement (the “Credit Agreement”) which amended and restated the prior $550 million Agreement, entered into on April 8, 2016 (the “Prior Agreement”). Under the Credit Agreement, $506 million of borrowings were outstanding as of March 31, 2018. The applicable interest rate for borrowings was LIBOR plus a spread, based on our leverage ratio at the time of borrowing. At the time of the last borrowing on March 16, 2018, the spread was 1.500%. The spread was based on a pricing grid, which ranged from 1.250% to 1.750%, based on our leverage ratio. Based on our maximum leverage ratio and our Consolidated EBITDA, and without modification to any other credit agreements, as of March 31, 2018, we would have been able to borrow an additional $179 million under the Agreement.

The Credit Agreement contains customary terms, as well as affirmative covenants, negative covenants and events of default comparable to those in the Prior Agreement. The Borrowings are guaranteed by certain of the Company's subsidiaries.

Our ability to borrow additional amounts under the Credit Agreement is conditional upon the absence of any defaults, as well as the absence of any material adverse change (as defined in the Credit Agreement).

The Company has a long-term capital lease obligation for real property in Salt Lake City, Utah. The lease has an implied interest rate of 5.0% and matures in 2022.

The following schedule presents future minimum annual lease payments under the capital lease obligation and the present value of the minimum lease payments, as of March 31, 2018.

Years ending December 31,	(in thousands)
2018	$1,854
2019	2,473
2020	2,520
2021	2,520
2022	7,373
Total minimum lease payments	16,740
Less:  Amount representing interest	(2,263	)
Present value of minimum lease payments	$14,477

On November 27, 2017, we terminated our interest rate swap agreements, originally entered into on May 9, 2016, that had effectively fixed the interest rate on $300 million of revolving credit borrowings, in order to enter into a new interest rate swap with a greater notional amount, and the same maturity as the Credit Agreement. We received cash of $6.3 million when the swap agreements were terminated and that payment will be amortized into interest expense through March 2021.

On May 6, 2016, we terminated other interest rate swap agreements that had effectively fixed the interest rate on $120 million of revolving credit borrowings, in order to enter into a new interest rate swap with a greater notional amount, and the same maturity as the Credit Agreement. We paid $5.2 million to terminate the swap agreements and that cost will be amortized into interest expense through June 2020.

On November 28, 2017, we entered into interest rate swap agreements for the period December 18, 2017 through October 17, 2022. These transactions have the effect of fixing the LIBOR portion of the effective interest rate (before addition of the spread) on $350 million of indebtedness drawn under the Credit Agreement at the rate of 2.11% during the period. Under the terms of these transactions, we pay the fixed rate of 2.11% and the counterparties pay a floating rate based on the one-month LIBOR rate at each monthly calculation date, which on March 16, 2018 was 1.79%, during the swap period. On March 16, 2018, the all-in-rate on the $350 million of debt was 3.61%.

These interest rate swaps are accounted for as a hedge of future cash flows, as further described in Note 16 of the Notes to Consolidated Financial Statements. No cash collateral was received or pledged in relation to the swap agreements.

Under the Credit Agreement, we are currently required to maintain a leverage ratio (as defined in the agreement) of not greater than 3.75 to 1.00 for each fiscal quarter ending prior to (but not including) September 30, 2019, and 3.50 to 1.00 for each fiscal quarter ending on or after September 30, 2019, and minimum interest coverage (as defined) of 3.00 to 1.00.

As of March 31, 2018, our leverage ratio was 2.55 to 1.00 and our interest coverage ratio was 9.50 to 1.00. We may purchase our Common Stock or pay dividends to the extent our leverage ratio remains at or below 3.50 to 1.00, and may make acquisitions with cash provided our leverage ratio does not exceed the limits noted above.

Indebtedness under the Credit Agreement is ranked equally in right of payment to all unsecured senior debt.

We were in compliance with all debt covenants as of March 31, 2018.

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Fair-Value Measurements

3 Months Ended

Mar. 31, 2018

Fair Value Disclosures [Abstract]

Fair-Value Measurements

16. Fair-Value Measurements

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Accounting principles establish a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Level 3 inputs are unobservable data points for the asset or liability, and include situations in which there is little, if any, market activity for the asset or liability. We had no Level 3 financial assets or liabilities at December 31, 2017 or March 31, 2018.

The following table presents the fair-value hierarchy for our Level 1 and Level 2 financial and non-financial assets and liabilities, which are measured at fair value on a recurring basis:

	March 31, 2018			December 31, 2017
	Quoted prices in active markets	Significant other observable inputs		Quoted prices in active markets	Significant other observable inputs
(in thousands)	(Level 1)	(Level 2)		(Level 1)	(Level 2)
Fair Value
Assets:
Cash equivalents	$14,806	$-		$13,601	$-
Prepaid expenses and other current assets:
Foreign currency options	75	-		-	-
Other Assets:
Common stock of unaffiliated foreign public company (a)	1,022	-		999	-
Interest rate swaps	-	6,554	(b)	-	313	(c)

(a) Original cost basis $0.5 million

(b) Net of $39.2 million receivable floating leg and $32.7 million liability fixed leg

(c) Net of $34.9 million receivable floating leg and $34.6 million liability fixed leg

Cash equivalents include short-term securities that are considered to be highly liquid and easily tradable. These securities are valued using inputs observable in active markets for identical securities.

The common stock of the unaffiliated foreign public company is traded in an active market exchange. The shares are measured at fair value using closing stock prices and are recorded in the Consolidated Balance Sheets as Other assets. The securities are classified as available for sale, and as a result any unrealized gain or loss is recorded in the Shareholders’ Equity section of the Consolidated Balance Sheets rather than in the Consolidated Statements of Income. When the security is sold or impaired, gains and losses are reported on the Consolidated Statements of Income. Investments are considered to be impaired when a decline in fair value is judged to be other than temporary.

We operate our business in many regions of the world, and currency rate movements can have a significant effect on operating results. Foreign currency instruments are entered into periodically, and consist of foreign currency option contracts and forward contracts that are valued using quoted prices in active markets obtained from independent pricing sources. These instruments are measured using market foreign exchange prices and are recorded in the Consolidated Balance Sheets as Other current assets and Accounts payable, as applicable. Changes in fair value of these instruments are recorded as gains or losses within Other expense, net.

When exercised, the foreign currency instruments are net settled with the same financial institution that bought or sold them. For all positions, whether options or forward contracts, there is risk from the possible inability of the financial institution to meet the terms of the contracts and the risk of unfavorable changes in interest and currency rates, which may reduce the value of the instruments. We seek to mitigate risk by evaluating the creditworthiness of counterparties and by monitoring the currency exchange and interest rate markets while reviewing the hedging risks and contracts to ensure compliance with our internal guidelines and policies.

Changes in exchange rates can result in revaluation gains and losses that are recorded in Selling, General and Administrative expenses or Other expense, net. Revaluation gains and losses occur when our business units have cash, intercompany (recorded in Other expense, net) or third-party trade (recorded in Selling, General and Administrative expenses) receivable or payable balances in a currency other than their local reporting (or functional) currency.

Operating results can also be affected by the translation of sales and costs, for each non-U.S. subsidiary, from the local functional currency to the U.S. dollar. The translation effect on the Consolidated Statements of Income is dependent on our net income or expense position in each non-U.S. currency in which we do business. A net income position exists when sales realized in a particular currency exceed expenses paid in that currency; a net expense position exists if the opposite is true.

The interest rate swaps are accounted for as hedges of future cash flows. The fair value of our interest rate swaps are derived from a discounted cash flow analysis based on the terms of the contract and the interest rate curve, and is included in Other assets and/or Other noncurrent liabilities in the Consolidated Balance Sheets. Unrealized gains and losses on the swaps flow through the caption Derivative valuation adjustment in the Shareholders’ equity section of the Consolidated Balance Sheets, to the extent that the hedges are highly effective. As of March 31, 2018, these interest rate swaps were determined to be highly effective hedges of interest rate cash flow risk. Any gains and losses related to the ineffective portion of the hedges will be recognized in the current period in earnings. Amounts accumulated in Other comprehensive income are reclassified as Interest expense, net when the related interest payments (that is, the hedged forecasted transactions), and amortization related to the swap buyouts, affect earnings. Interest expense related to payments under the active swap agreements totaled $0.5 million for the three month period ended March 31, 2018 and $0.4 million for the three month period ended March 31, 2017. Additionally, non-cash interest expense related to the amortization of swap buyouts totaled ($0.2) million for the three month period ended March 31, 2018 and $0.2 million of the three month period ended March 31, 2017.

Gains/(losses) related to changes in fair value of derivative instruments that were recognized in Other expense, net in the Consolidated Statements of Income were as follows:

	Three months ended March 31,
(in thousands)	2018		2017
Derivatives not designated as hedging instruments
Foreign currency options (losses)/gains	($37	)	($54	)

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Contingencies

3 Months Ended

Mar. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Contingencies

17. Contingencies

Asbestos Litigation

Albany International Corp. is a defendant in suits brought in various courts in the United States by plaintiffs who allege that they have suffered personal injury as a result of exposure to asbestos-containing paper machine clothing synthetic dryer fabrics marketed during the period from 1967 to 1976 and used in certain paper mills.

We were defending 3,662 claims as of March 31, 2018.

The following table sets forth the number of claims filed, the number of claims settled, dismissed or otherwise resolved, and the aggregate settlement amount during the periods presented:

Year ended December 31,	Opening Number of Claims	Claims Dismissed, Settled, or Resolved	New Claims	Closing Number of Claims	Amounts Paid (thousands) to Settle or Resolve
2013	4,463	230	66	4,299	$78
2014	4,299	625	147	3,821	437
2015	3,821	116	86	3,791	164
2016	3,791	148	102	3,745	758
2017	3,745	105	90	3,730	55
2018 (as of March 31)	3,730	96	28	3,662	$93

We anticipate that additional claims will be filed against the Company and related companies in the future, but are unable to predict the number and timing of such future claims. Due to the fact that information sufficient to meaningfully estimate a range of possible loss of a particular claim is typically not available until late in the discovery process, we do not believe a meaningful estimate can be made regarding the range of possible loss with respect to pending or future claims and therefore are unable to estimate a range of reasonably possible loss in excess of amounts already accrued for pending or future claims.

While we believe we have meritorious defenses to these claims, we have settled certain claims for amounts we consider reasonable given the facts and circumstances of each case. Our insurance carrier has defended each case and funded settlements under a standard reservation of rights. As of March 31, 2018 we had resolved, by means of settlement or dismissal, 37,690 claims. The total cost of resolving all claims was $10.3 million. Of this amount, almost 100% was paid by our insurance carrier, who has confirmed that we have approximately $140 million of remaining coverage under primary and excess policies that should be available with respect to current and future asbestos claims.

The Company’s subsidiary, Brandon Drying Fabrics, Inc. (“Brandon”), is also a separate defendant in many of the asbestos cases in which Albany is named as a defendant, despite never having manufactured any fabrics containing asbestos. While Brandon was defending against 7,707 claims as of March 31, 2018, only nine claims have been filed against Brandon since January 1, 2012, and no settlement costs have been incurred since 2001. Brandon was acquired by the Company in 1999, and has its own insurance policies covering periods prior to 1999. Since 2004, Brandon’s insurance carriers have covered 100% of indemnification and defense costs, subject to policy limits and a standard reservation of rights.

In some of these asbestos cases, the Company is named both as a direct defendant and as the “successor in interest” to Mount Vernon Mills (“Mount Vernon”). We acquired certain assets from Mount Vernon in 1993. Certain plaintiffs allege injury caused by asbestos-containing products alleged to have been sold by Mount Vernon many years prior to this acquisition. Mount Vernon is contractually obligated to indemnify the Company against any liability arising out of such products. We deny any liability for products sold by Mount Vernon prior to the acquisition of the Mount Vernon assets. Pursuant to its contractual indemnification obligations, Mount Vernon has assumed the defense of these claims. On this basis, we have successfully moved for dismissal in a number of actions.

We currently do not anticipate, based on currently available information, that the ultimate resolution of the aforementioned proceedings will have a material adverse effect on the financial position, results of operations, or cash flows of the Company. Although we cannot predict the number and timing of future claims, based on the foregoing factors, the trends in claims filed against us, and available insurance, we also do not currently anticipate that potential future claims will have a material adverse effect on our financial position, results of operations, or cash flows.

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Changes in Shareholders' Equity

3 Months Ended

Mar. 31, 2018

Stockholders' Equity Note [Abstract]

Changes in Shareholders' Equity

18. Changes in Shareholders’ Equity

The following table summarizes changes in Shareholders’ Equity:

(in thousands)	Common Stock Class A and B	Additional paid in capital	Retained earnings		Accumulated items of other comprehensive income/(loss)		Treasury stock		Noncontrolling Interest		Total Equity
December 31, 2017	$40	$428,423	$534,082		($135,901	)	($256,876	)	$3,247		$573,015
Adoption of accounting standards (a),(b)	-	-	(5,085	)	-		-		(327	)	(5,412	)
Net income	-	-	10,245		-		-		237		10,482
Compensation and benefits paid or payable in shares	-	289	-		-		-		-		289
Options exercised	-	147	-		-		-		-		147
Dividends declared	-	-	(5,483	)	-		-		-		(5,483	)
Cumulative translation adjustments	-	-	-		17,646		-		(7	)	17,639
Pension and postretirement liability adjustments	-	-	-		(13	)	-		-		(13	)
Derivative valuation adjustment	-	-	-		4,480		-		-		4,480
March 31, 2018	$40	$428,859	$533,759		($113,788	)	($256,876	)	$3,150		$595,144

(a) As described in Note 2, the Company adopted ASC 606 effective January 1, 2018, which resulted in a decrease to Retained earnings of $5.6 million and a $0.3 million decrease to Noncontrolling interest.

(b) As described in Note 7, the Company adopted ASU 2016-16 effective January 1, 2018, which resulted in a $0.5 increase to Retained earnings.

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Recent Accounting Pronouncements

3 Months Ended

Mar. 31, 2018

Accounting Changes and Error Corrections [Abstract]

Recent Accounting Pronouncements

19. Recent Accounting Pronouncements

In February 2016, an accounting update was issued which requires the recognition of lease assets and lease liabilities on the balance sheet and the disclosure of key information about leasing arrangements for both lessees and lessors. The new standard is effective January 1, 2019 for public companies, with early adoption permitted. Currently, we are required to adopt the requirements of the new standard by applying a modified retrospective approach to the beginning of the earliest period presented in the financial statements. We are continuing to evaluate the expected impact to our consolidated financial statements and related disclosures. We will adopt the new standard effective January 1, 2019.

In November 2016, an accounting update was issued which provides clarification of how changes in restricted cash should be reported in the statement of cash flows. We adopted this accounting update on January 1, 2018 and it did not have a material effect on our financial statements.

In May 2017, an accounting update was issued to provide clarity as to when a company must account for changes to stock-based compensation programs as award modifications. Award modifications require an update to the value of the award, resulting in an adjustment to compensation expense. We have not made changes to awards in recent years that would be affected by this update, but such changes are possible in future periods. We adopted this accounting update on January 1, 2018 and it did not have a material effect on our financial statements.

In August 2017, an accounting update was issued which simplifies the application of hedge accounting to better align the financial reporting of hedging relationships with a company’s risk management activities. We do not expect a significant impact to our consolidated assets and liabilities, net earnings, or cash flows as a result of adopting this new standard. We plan to adopt the new standard effective January 1, 2019.

In February 2018, an accounting update was issued which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. This update is effective for annual and interim periods in fiscal years beginning after December 15, 2018. We are currently evaluating the impact of this update.

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Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary for a fair presentation of results for such periods. Albany International Corp. (Albany, the Registrant, the Company, we, us, or our) consolidates the financial results of its subsidiaries for all periods presented. The results for any interim period are not necessarily indicative of results for the full year.

The preparation of financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in Albany International Corp.’s Consolidated Financial Statements and accompanying Notes. Actual results could differ materially from those estimates.

The information included in this Quarterly Report on Form 10-Q should be read in conjunction with “Risk Factors,” “Legal Proceedings,” “Management’s Discussion and Analysis of Financial Condition and Results of Operation,” “Quantitative and Qualitative Disclosures about Market Risk” and the Consolidated Financial Statements and Notes thereto included in Items 1A, 3, 7, 7A and 8, respectively, of the Albany International Corp. Annual Report on Form 10-K for the year ended December 31, 2017.

Effective January 1, 2018, we adopted the provisions of ASC 606, Revenue from Contracts with Customers, using the modified retrospective method for transition as discussed in Note 2, Revenue Recognition. Except for the changes described in Note 2 related to ASC 606, we have consistently applied other accounting policies to all periods presented in the consolidated financial statements.

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Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2018

Revenue Recognition [Abstract]

Schedule of Consolidated Balance Sheet

The table below presents the cumulative effect of changes made to our December 31, 2017 Consolidated Balance Sheet as the result of adoption of ASC 606:

ALBANY INTERNATIONAL CORP.

CONSOLIDATED BALANCE SHEET

(in thousands, except share data)

(unaudited)

	As previously reported at December 31, 2017		Adjustments Increase/(decrease)		Opening balance, as adjusted, January 1, 2018
ASSETS
Cash and cash equivalents	$183,727		$     -		$183,727
Accounts receivable, net	202,675		10,210		212,885
Contract assets	-		44,872		44,872
Inventories	136,519		(47,054	)	89,465
Income taxes prepaid and receivable	6,266		-		6,266
Prepaid expenses and other current assets	14,520		-		14,520
Total current assets	543,707		8,028		551,735
Property, plant and equipment, net	454,302		-		454,302
Intangibles, net	55,441		-		55,441
Goodwill	166,796		-		166,796
Deferred income taxes	68,648		1,756		70,404
Noncurrent receivables	32,811		-		32,811
Other assets	39,493		1,119		40,612
Total assets	$1,361,198		$10,903		$1,372,101
LIABILITIES AND SHAREHOLDERS' EQUITY
Notes and loans payable	$262		$     -		$262
Accounts payable	44,899		-		44,899
Accrued liabilities	105,914		16,808		122,722
Current maturities of long-term debt	1,799		-		1,799
Income taxes payable	8,643		-		8,643
Total current liabilities	161,517		16,808		178,325
Long-term debt	514,120		-		514,120
Other noncurrent liabilities	101,555		-		101,555
Deferred taxes and other liabilities	10,991		52		11,043
Total liabilities	788,183		16,860		805,043
SHAREHOLDERS' EQUITY
Preferred stock, par value $5.00 per share;
authorized 2,000,000 shares; none issued	-		-		-
Class A Common Stock, par value $.001 per share;
authorized 100,000,000 shares; issued 37,395,753 in
2017 and 37,319,266 in 2016	37		-		37
Class B Common Stock, par value $.001 per share;
authorized 25,000,000 shares; issued and
outstanding 3,233,998 in 2017 and 2016	3		-		3
Additional paid in capital	428,423		-		428,423
Retained earnings	534,082		(5,630	)	528,452
Accumulated items of other comprehensive income:
Translation adjustments	(87,318	)	-		(87,318	)
Pension and postretirement liability adjustments	(50,536	)	-		(50,536	)
Derivative valuation adjustment	1,953		-		1,953
Treasury stock (Class A), at cost 8,431,335 shares in
2017 and 8,443,444 shares in 2016	(256,876	)	-		(256,876	)
Total Company shareholders' equity	569,768		(5,630	)	564,138
Noncontrolling interest	3,247		(327	)	2,920
Total equity	573,015		(5,957	)	567,058
Total liabilities and shareholders' equity	$1,361,198		$10,903		$1,372,101

Schedule of Summary of Composition of Each Business Segment

The following table provides a summary of the composition of each business segment:

Segment	Unit	Principal Product or Service	Principal Locations
Machine Clothing (MC)	Machine Clothing	Paper machine clothing: Permeable and impermeable belts used in the manufacture of paper, paperboard, tissue and towel, and pulp Engineered fabrics: Belts used in the manufacture of nonwovens, fiber cement and several other industrial applications	World-wide
Albany Engineered Composites (AEC)	Albany Safran Composites (ASC)	3D-woven, injected composite components for aircraft engines	Rochester, NH, Commercy, France, Queretero, Mexico
	Airframe and engine  Components (Other AEC)	Composite airframe and engine components for military and commercial aircraft	Salt Lake City, UT Boerne, TX Queretero, Mexico

Schedule of Disaggregate Revenue for Each Business Segment

The following table disaggregates revenue for each business segment by timing of revenue recognition:

	For the Three Months Ended
	March 31, 2018
(in thousands)	Point in Time Revenue Recognition	Over Time Revenue Recognition	Total
Machine Clothing	$147,351	$800	$148,151
Albany Engineered Composites
ASC	-	40,781	40,781
Other AEC	6,040	35,009	41,049
Total Albany Engineered Composites	6,040	75,790	81,830
Total Revenue	$153,391	$76,590	$229,981

Schedule of Disaggregate MC Segment Revenue by Significant Product or Service

The following table disaggregates MC segment revenue by significant product or service (paper machine clothing (PMC) and engineered fabrics), and, for PMC, the geographical region to which the paper machine clothing was sold:

	For the Three Months Ended
(in thousands)	March 31, 2018
Americas PMC	$69,858
Eurasia PMC	56,933
Engineered Fabrics	21,360
Total Machine Clothing Net sales	$148,151

Schedule of Consolidated Statement of Income

The following tables show the balances as reported for the period ended March 31, 2018, and how the consolidated financial statements would have appeared if we had not adopted ASC 606.

ALBANY INTERNATIONAL CORP.

CONSOLIDATED STATEMENT OF INCOME

(in thousands, except per share amounts)

(unaudited)

	As reported for the Three Months Ended March 31, 2018	Adjustments to reverse effects of ASC 606		As adjusted for the Three months ended March 31, 2018 to exclude adoption of ASC 606
Net Sales	$229,981	($8,434	)	$221,547
Cost of goods sold	148,330	(6,526	)	141,804
Gross profit	81,651	(1,908	)	79,743
Selling, general, and administrative expenses	41,930	(60	)	41,870
Technical and research expenses	10,317	-		10,317
Restructuring expenses, net	8,573	-		8,573
Operating income	20,831	(1,848	)	18,983
Interest expense, net	4,288	-		4,288
Other expense, net	1,452	-		1,452
Income before income taxes	15,091	(1,848	)	13,243
Income tax expense	4,609	(601	)	4,008
Net income	10,482	(1,247	)	9,235
Net income attributable to the noncontrolling interest	237	(57	)	180
Net income attributable to the Company	$10,245	($1,190	)	$9,055
Earnings per share attributable to Company shareholders - Basic	$0.32	($0.04	)	$0.28
Earnings per share attributable to Company shareholders - Diluted	$0.32	($0.04	)	$0.28

Schedule of Consolidated Statement of Comprehensive Income (Loss)

ALBANY INTERNATIONAL CORP.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME/(LOSS)

(in thousands)

(unaudited)

	As reported for the Three Months Ended March 31, 2018		Adjustments to reverse effects of ASC 606		As adjusted for the Three months ended March 31, 2018 to exclude adoption of ASC 606
Net income	$10,482		($1,247	)	$9,235
Other comprehensive income/(loss), before tax:
Foreign currency translation adjustments	17,505		(308	)	17,197
Amortization of pension liability adjustments:
Prior service credit	(1,114	)	-		(1,114	)
Net actuarial loss	1,297		-		1,297
Payments related to interest rate swaps included in earnings	180		-		180
Derivative valuation adjustment	5,715		-		5,715
Income taxes related to items of other comprehensive income/(loss):
Pension/postretirement plan remeasurement	-		-		-
Amortization of pension liability adjustment	(55	)	-		(55	)
Payments related to interest rate swaps included in earnings	(43	)	-		(43	)
Derivative valuation adjustment	(1,372	)	-		(1,372	)
Comprehensive income	32,595		(1,555	)	31,040
Comprehensive income attributable to the noncontrolling interest	230		(57	)	173
Comprehensive income attributable to the Company	$32,365		($1,498	)	$30,867

Schedule of Consolidated Balance Sheets

ALBANY INTERNATIONAL CORP.

CONSOLIDATED BALANCE SHEET

(in thousands, except share data)

(unaudited)

	As reported March 31, 2018		Adjustments to reverse effects of ASC 606		As adjusted for the Three months ended March 31, 2018 to exclude adoption of ASC 606
ASSETS
Cash and cash equivalents	$151,426		$    -		$151,426
Accounts receivable, net	248,538		(21,720	)	226,818
Contract assets	42,895		(42,895	)	-
Inventories	100,034		53,752		153,786
Income taxes prepaid and receivable	6,132		-		6,132
Prepaid expenses and other current assets	18,675		-		18,675
Total current assets	567,700		(10,863	)	556,837
Property, plant and equipment, net	459,388		-		459,388
Intangibles, net	53,881		-		53,881
Goodwill	168,311		-		168,311
Income taxes receivable and deferred	70,174		(1,155	)	69,019
Noncurrent receivables	35,338		-		35,338
Other assets	45,543		(1,256	)	44,287
Total assets	$1,400,335		($13,274	)	$1,387,061
LIABILITIES AND SHAREHOLDERS' EQUITY
Notes and loans payable	$226		$    -		$226
Accounts payable	45,694		-		45,694
Accrued liabilities	122,103		(17,624	)	104,479
Current maturities of long-term debt	1,821		-		1,821
Income taxes payable	5,182		-		5,182
Total current liabilities	175,026		(17,624	)	157,402
Long-term debt	518,656		-		518,656
Other noncurrent liabilities	100,170		-		100,170
Deferred taxes and other liabilities	11,339		(51	)	11,288
Total liabilities	805,191		(17,675	)	787,516
SHAREHOLDERS' EQUITY
Preferred stock, par value $5.00 per share;
authorized 2,000,000 shares; none issued	-		-		-
Class A Common Stock, par value $.001 per share;
authorized 100,000,000 shares; issued 37,447,669 in 2018
and 37,395,753 in 2017	37		-		37
Class B Common Stock, par value $.001 per share;
authorized 25,000,000 shares; issued and
outstanding 3,233,998 in 2018 and 2017	3		-		3
Additional paid in capital	428,859				428,859
Retained earnings	533,759		4,439		538,198
Accumulated items of other comprehensive income:
Translation adjustments	(69,672	)	(308	)	(69,980	)
Pension and postretirement liability adjustments	(50,549	)	-		(50,549	)
Derivative valuation adjustment	6,433		-		6,433
Treasury stock (Class A), at cost 8,431,335 shares in 2018
and 2017	(256,876	)	-		(256,876	)
Total Company shareholders' equity	591,994		4,131		596,125
Noncontrolling interest	3,150		270		3,420
Total equity	595,144		4,401		599,545
Total liabilities and shareholders' equity	$1,400,335		($13,274	)	$1,387,061

Schedule of Consolidated Statement of Cash Flows

ALBANY INTERNATIONAL CORP.

CONSOLIDATED STATEMENT OF CASH FLOW

(in thousands)

(unaudited)

	As reported for the Three Months ended March 31, 2018		Adjustments to reverse effects of ASC 606		As adjusted for the Three months ended March 31, 2018 to exclude adoption of ASC 606
OPERATING ACTIVITIES
Net income	$10,482		($1,247	)	$9,235
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation	18,302		-		18,302
Amortization	2,646		-		2,646
Change in other noncurrent liabilities	(377	)	-		(377	)
Change in deferred taxes and other liabilities	(784	)	1,103		319
Provision for write-off of property, plant and equipment	271		-		271
Non-cash interest expense	-		-		-
Compensation and benefits paid or payable in Class A Common Stock	289		-		289
Fair value adjustment on foreign currency option	37		-		37
Changes in operating assets and liabilities that (used)/provided cash:
Accounts receivable	(31,467	)	7,324		(24,143	)
Contract assets	2,116		(2,116	)	-
Inventories	(9,244	)	(8,023	)	(17,267	)
Prepaid expenses and other current assets	(4,063	)	-		(4,063	)
Income taxes prepaid and receivable	102		-		102
Accounts payable	(2,538	)	-		(2,538	)
Accrued liabilities	(1,185	)	(250	)	(1,435	)
Income taxes payable	(3,431	)	-		(3,431	)
Noncurrent receivables	2,527		-		2,527
Other, net	(2,630	)	3,209		579
Net cash provided by operating activities	(18,947	)	-		(18,947	)
Net cash used in investing activities	(15,800	)			(15,800	)
Net cash used in financing activities	(2,458	)	-		(2,458	)
Effect of exchange rate changes on cash and cash equivalents	4,904		-		4,904
Decrease in cash and cash equivalents	(32,301	)	-		(32,301	)
Cash and cash equivalents at beginning of period	183,727		-		183,727
Cash and cash equivalents at end of period	$151,426		$-		$151,426

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Reportable Segments (Tables)

3 Months Ended

Mar. 31, 2018

Segment Reporting [Abstract]

Schedule of Financial Data by Reporting Segment

The following tables show data by reportable segment, reconciled to consolidated totals, and the impact that ASC 606 had on first-quarter results, included in the consolidated financial statements:

	Three months ended March 31,				Three months ended March 31, 2018
(in thousands)	2018		2017		Increase/(decrease) attributable to application of ASC 606
Net sales
Machine Clothing	$148,151		$142,827		$4,211
Albany Engineered Composites	81,830		56,450		4,223
Consolidated total	$229,981		$199,277		$8,434
Operating income/(loss)
Machine Clothing	$30,769		$38,263		$979
Albany Engineered Composites	2,275		(5,114	)	869
Corporate expenses	(12,213	)	(10,471	)	-
Operating income	20,831		22,678		1,848
Reconciling items:
Interest income	(382	)	(107	)	-
Interest expense	4,670		4,435		-
Other expense, net	1,452		826		-
Income before income taxes	$15,091		$17,524		$1,848

Schedule of Restructuring Costs by Reporting Segment

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

	Three months ended March 31,
(in thousands)	2018	2017
Restructuring expenses, net
Machine Clothing	$8,352	$110
Albany Engineered Composites	221	2,571
Consolidated total	$8,573	$2,681

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Pensions and Other Postretirement Benefit Plans (Tables)

3 Months Ended

Mar. 31, 2018

Retirement Benefits [Abstract]

Schedule of Net Periodic Benefit Plan Cost

The composition of the net periodic benefit plan cost for the three months ended March 31, 2018 and 2017, was as follows:

	Pension plans				Other postretirement benefits
(in thousands)	2018		2017		2018		2017
Components of net periodic benefit cost:
Service cost	$699		$651		$58		$61
Interest cost	1,820		1,828		507		553
Expected return on assets	(2,247	)	(1,993	)	-		-
Amortization of prior service cost/(credit)	8		9		(1,122	)	(1,122	)
Amortization of net actuarial loss	558		645		739		702
Net periodic benefit cost	$838		$1,140		$182		$194

Schedule of Amounts Reclassified by Segment and Financial Statement

Effect by segment operating expenses:

(in thousands)	Increase/(decrease) in expense for the three months ended March 31, 2017
Machine Clothing	($2	)
Albany Engineered Composites	-
Corporate expenses	(620	)
Total operating expenses	($622	)
Other expense, net	$622

Effect by Statement of Income line item:

(in thousands)	Increase/(decrease) in expense for the three months ended March 31, 2017
Cost of goods sold	($123	)
Selling, general and administrative expenses	(499	)
Total operating expenses	($622	)
Other expense, net	$622

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Restructuring (Tables)

3 Months Ended

Mar. 31, 2018

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Charges

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

	Three months ended March 31,
(in thousands)	2018	2017
Machine Clothing	$8,352	$110
Albany Engineered Composites	221	2,571
Total	$8,573	$2,681

Three months ended March 31, 2018	Total restructuring costs incurred	Termination and other costs	Impairment of assets
(in thousands)
Machine Clothing	$8,352	$8,352	$-
Albany Engineered Composites	221	221	-
Total	$8,573	$8,573	$-

Three months ended March 31, 2017	Total restructuring costs incurred	Termination and other costs	Impairment of assets
(in thousands)
Machine Clothing	$110	$110	$-
Albany Engineered Composites	2,571	2,456	115
Total	$2,681	$2,566	$115

Schedule of Restructuring Liability

The table below presents the year-to-date changes in restructuring liabilities for 2018 and 2017, all of which related to termination costs:

(in thousands)	December 31, 2017	Restructuring charges accrued	Payments		Currency translation /other	March 31, 2018
Total termination and other costs	$3,326	$8,573	($2,051	)	$25	$9,873

(in thousands)	December 31, 2016	Restructuring charges accrued	Payments		Currency translation /other	March 31, 2017
Total termination and other costs	$5,559	$2,566	($2,126	)	$17	$6,016

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Other expense, net (Tables)

3 Months Ended

Mar. 31, 2018

Other Income and Expenses [Abstract]

Schedule Other Expense/(Income), net

The components of Other expense, net are:

	Three months ended March 31,
(in thousands)	2018	2017
Currency transaction losses	$690	$101
Bank fees	108	149
Components of net periodic pension and postretirement cost other than service	263	622
Other	391	(46	)
Total	$1,452	$826

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Income Taxes (Tables)

3 Months Ended

Mar. 31, 2018

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense

The following table presents components of income tax expense for the three months ended March 31, 2018 and 2017:

	Three months ended March 31,
(in thousands)	2018		2017
Income tax based on income from continuing operations, at estimated tax rates of 32.5% and 32.6%, respectively	$4,899		$5,719
Income tax before discrete items	4,899		5,719
Discrete tax expense:
Exercise of US Stock Options	(123	)	(21	)
Adjustments to prior period tax liabilities	(46	)	-
Provision for/resolution of tax audits and contingencies, net	5		852
Other	(126	)	-
Total income tax expense	$4,609		$6,550

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2018

Earnings Per Share [Abstract]

Schedule Computing Earnings Per Share

The amounts used in computing earnings per share and the weighted average number of shares of potentially dilutive securities are as follows:

	Three months ended March 31,
(in thousands, except market price and earnings per share)	2018	2017
Net income attributable to the Company	$10,245	$10,839
Weighted average number of shares:
Weighted average number of shares used in
calculating basic net income per share	32,220	32,128
Effect of dilutive stock-based compensation plans:
Stock options	16	36
Weighted average number of shares used in
calculating diluted net income per share	32,236	32,164
Average market price of common stock used
for calculation of dilutive shares	$63.86	$46.69
Net income per share:
Basic	$0.32	$0.34
Diluted	$0.32	$0.34

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Noncontrolling Interest (Tables)

3 Months Ended

Mar. 31, 2018

Noncontrolling Interest [Abstract]

Schedule of Income Attributable to Noncontrolling Interest and Noncontrolling Equity

The table below presents a reconciliation of income attributable to the noncontrolling interest and noncontrolling equity, and the impact that the ASC 606 standard had on first-quarter results, included in the consolidated financial statements:

(in thousands)	2018		2017
Net income of ASC	$2,681		$1,601
Less: Return attributable to the Company's preferred holding	312		254
Net income of ASC available for common ownership	$2,369		$1,347
Ownership percentage of noncontrolling shareholder	10	%	10	%
Net income attributable to noncontrolling interest	$237		$135
Noncontrolling interest, beginning of year	$3,247		$3,767
Decrease attributable to application of ASC 606	(327	)	-
Net income attributable to noncontrolling interest	237		135
Changes in other comprehensive income attributable to noncontrolling interest	(7	)	5
Noncontrolling interest	$3,150		$3,907

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Accumulated Other Comprehensive Income (AOCI) (Tables)

3 Months Ended

Mar. 31, 2018

Accumulated items of other comprehensive income:

Schedule of Accumulated Other Comprehensive Income

The table below presents changes in the components of AOCI for the period December 31, 2017 to March 31, 2018:

(in thousands)	Translation adjustments		Pension and postretirement liability adjustments		Derivative valuation adjustment	Total Other Comprehensive Income
December 31, 2017	($87,318	)	($50,536	)	$1,953	($135,901	)
Other comprehensive income/(loss) before reclassifications	17,646		(141	)	4,343	21,848
Interest expense related to swaps reclassified to the Consolidated Statements of Income, net of tax	-		-		137	137
Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income, net of tax	-		128		-	128
Net current period other comprehensive income	17,646		(13	)	4,480	22,113
March 31, 2018	($69,672	)	($50,549	)	$6,433	($113,788	)

The table below presents changes in the components of AOCI for the period December 31, 2016 to March 31, 2017:

(in thousands)	Translation adjustments		Pension and postretirement liability adjustments		Derivative valuation adjustment	Total Other Comprehensive Income
December 31, 2016	($133,298	)	($51,719	)	$828	($184,189	)
Other comprehensive income/(loss) before reclassifications	10,126		(193	)	258	10,191
Interest expense related to swaps reclassified to the Consolidated Statements of Income, net of tax	-		-		372	372
Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income, net of tax	-		164		-	164
Net current period other comprehensive income	10,126		(29	)	630	10,727
March 31, 2017	($123,172	)	($51,748	)	$1,458	($173,462	)

Schedule of Accumulated Other Comprehensive Income Components Reclassified to Statement of Income

The table below presents the expense/(income) amounts reclassified, and the line items of the Consolidated Statements of Income that were affected for the periods ended March 31, 2018 and 2017.

	Three months ended March 31,
(in thousands)	2018		2017
Pretax Derivative valuation reclassified from Accumulated Other Comprehensive Income:
Expense related to interest rate swaps included in Income before taxes (a)	$180		$600
Income tax effect	(43	)	(228	)
Effect on net income due to items reclassified from Accumulated Other Comprehensive Income	$137		$372
Pretax pension and postretirement liabilities reclassified from Accumulated Other Comprehensive Income:
Amortization of prior service credit	($1,114	)	($1,113	)
Amortization of net actuarial loss	1,297		1,347
Total pretax amount reclassified (b)	183		234
Income tax effect	(55	)	(70	)
Effect on net income due to items reclassified from Accumulated Other Comprehensive Income	$128		$164

(a) Included in Interest expense are payments related to the interest rate swap agreements and amortization of swap buyouts (see Note 16).

(b) These accumulated other comprehensive income components are included in Other expense, net (see Note 4).

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Accounts Receivable (Tables)

3 Months Ended

Mar. 31, 2018

Receivables [Abstract]

Schedule of Accounts Receivable

As of March 31, 2018 and December 31, 2017, Accounts receivable consisted of the following:

(in thousands)	March 31, 2018		December 31, 2017
Trade and other accounts receivable	$237,767		$152,375
Bank promissory notes	18,865		20,255
Revenue in excess of progress billings	-		37,964
Allowance for doubtful accounts	(8,094	)	(7,919	)
Total accounts receivable	$248,538		$202,675

Schedule of Contract Receivables

As of March 31, 2018 and December 31, 2017, Noncurrent receivables consisted of the following:

(in thousands)	March 31, 2018	December 31, 2017
Noncurrent receivables	$35,338	$32,811

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Contract Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2018

Contract Assets And Liabilities

Schedule of Contract Assets and Contract Liabilities

Contract assets and contract liabilities were as follows:

(in thousands)	March 31, 2018	December 31, 2017
Contract assets	$42,895	$   -
Contract liabilities	3,030	-

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Inventories (Tables)

3 Months Ended

Mar. 31, 2018

Inventory Disclosure [Abstract]

Schedule of Inventories

As of March 31, 2018 and December 31, 2017, inventories consisted of the following:

(in thousands)	March 31,  2018	December 31, 2017
Raw materials	$42,411	$42,215
Work in process	44,184	65,448
Finished goods	13,439	28,856
Total inventories	$100,034	$136,519

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Goodwill and Other Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Changes in Intangible Assets and Goodwill

The gross carrying value, accumulated amortization and net values of intangible assets and goodwill as of December 31, 2017 and March 31, 2018, were as follows:

As of March 31, 2018 (in thousands)	Weighted average amortization life in years	Gross carrying amount	Accumulated amortization		Net carrying amount
Amortized intangible assets:
AEC trade names	15	$140	($126	)	$14
AEC technology	15	370	(296	)	74
Customer relationships	15	48,421	(6,462	)	41,959
Customer contracts	6	17,471	(5,830	)	11,641
Other intangibles	5	322	(129	)	193
Net amortized intangible assets		$66,724	($12,843	)	$53,881
Unamortized intangible assets:
MC Goodwill		$72,581	$-		$72,581
AEC Goodwill		95,730	-		95,730
Total unamortized intangible assets:		$168,311	$-		$168,311

As of December 31, 2017 (in thousands)	Weighted average amortization life in years	Gross carrying amount	Accumulated amortization		Net carrying amount
Amortized intangible assets:
AEC trade names	15	$140	($125	)	$15
AEC technology	15	370	(290	)	80
Customer relationships	15	48,421	(5,654	)	42,767
Customer contracts	6	17,471	(5,102	)	12,369
Other intangibles	5	322	(112	)	210
Net amortized intangible assets		$66,724	($11,283	)	$55,441
Unamortized intangible assets:
MC Goodwill		$71,066	$-		$71,066
AEC Goodwill		95,730	-		95,730
Total unamortized intangible assets:		$166,796	$-		$166,796

The changes in intangible assets, net and goodwill from December 31, 2017 to March 31, 2018, were as follows:

(in thousands)	December 31, 2017	Amortization		Currency Translation	March 31, 2018
Amortized intangible assets:
AEC trade names	$15	$(1	)	$-	$14
AEC technology	80	(6	)	-	74
Customer relationships	42,767	(808	)	-	41,959
Customer contracts	12,369	(728	)	-	11,641
Other intangibles	210	(17	)	-	193
Net amortized intangible assets	$55,441	($1,560	)	$-	$53,881
Unamortized intangible assets:
MC Goodwill	$71,066	$-		$1,515	$72,581
AEC Goodwill	95,730	-		-	95,730
Total unamortized intangible assets:	$166,796	$-		$1,515	$168,311

Schedule of Estimated Amortization Expense

Estimated amortization expense of intangibles for the years ending December 31, 2018 through 2022, is as follows:

	Annual amortization
Year	(in thousands)
2018	$6,234
2019	6,234
2020	6,234
2021	6,163
2022	3,949

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Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2018

Long-term Debt and Capital Lease Obligations [Abstract]

Schedule of Long-Term Debt

Long-term debt, principally to banks and bondholders, consists of:

(in thousands, except interest rates)	March 31, 2018		December 31, 2017
Revolving credit agreement with borrowings outstanding at an end of period interest rate of 3.49% in 2018 and 3.40% in 2017 (including the effect of interest rate hedging transactions, as described below), due in 2022	$506,000		$501,000
Obligation under capital lease, matures 2022	14,477		14,919
Long-term debt	520,477		515,919
Less: current portion	(1,821	)	(1,799	)
Long-term debt, net of current portion	$518,656		$514,120

Schedule of Future Minimum Annual Capital Lease Obilgations

The following schedule presents future minimum annual lease payments under the capital lease obligation and the present value of the minimum lease payments, as of March 31, 2018.

Years ending December 31,	(in thousands)
2018	$1,854
2019	2,473
2020	2,520
2021	2,520
2022	7,373
Total minimum lease payments	16,740
Less:  Amount representing interest	(2,263	)
Present value of minimum lease payments	$14,477

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Fair-Value Measurements (Tables)

3 Months Ended

Mar. 31, 2018

Fair Value Disclosures [Abstract]

Schedule of Fair Value of Financial Assets and Liabilities

The following table presents the fair-value hierarchy for our Level 1 and Level 2 financial and non-financial assets and liabilities, which are measured at fair value on a recurring basis:

	March 31, 2018			December 31, 2017
	Quoted prices in active markets	Significant other observable inputs		Quoted prices in active markets	Significant other observable inputs
(in thousands)	(Level 1)	(Level 2)		(Level 1)	(Level 2)
Fair Value
Assets:
Cash equivalents	$14,806	$-		$13,601	$-
Prepaid expenses and other current assets:
Foreign currency options	75	-		-	-
Other Assets:
Common stock of unaffiliated foreign public company (a)	1,022	-		999	-
Interest rate swaps	-	6,554	(b)	-	313	(c)

(a) Original cost basis $0.5 million

(b) Net of $39.2 million receivable floating leg and $32.7 million liability fixed leg

(c) Net of $34.9 million receivable floating leg and $34.6 million liability fixed leg

Schedule of (Losses)/Gains on Changes in Fair Value of Derivative Instruments

Gains/(losses) related to changes in fair value of derivative instruments that were recognized in Other expense, net in the Consolidated Statements of Income were as follows:

	Three months ended March 31,
(in thousands)	2018		2017
Derivatives not designated as hedging instruments
Foreign currency options (losses)/gains	($37	)	($54	)

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Contingencies (Tables)

3 Months Ended

Mar. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Schedule of Changes in Claims

The following table sets forth the number of claims filed, the number of claims settled, dismissed or otherwise resolved, and the aggregate settlement amount during the periods presented:

Year ended December 31,	Opening Number of Claims	Claims Dismissed, Settled, or Resolved	New Claims	Closing Number of Claims	Amounts Paid (thousands) to Settle or Resolve
2013	4,463	230	66	4,299	$78
2014	4,299	625	147	3,821	437
2015	3,821	116	86	3,791	164
2016	3,791	148	102	3,745	758
2017	3,745	105	90	3,730	55
2018 (as of March 31)	3,730	96	28	3,662	$93

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Changes in Shareholders' Equity (Tables)

3 Months Ended

Mar. 31, 2018

Stockholders' Equity Note [Abstract]

Schedule of Activity in Shareholders' Equity

The following table summarizes changes in Shareholders’ Equity:

(in thousands)	Common Stock Class A and B	Additional paid in capital	Retained earnings		Accumulated items of other comprehensive income/(loss)		Treasury stock		Noncontrolling Interest		Total Equity
December 31, 2017	$40	$428,423	$534,082		($135,901	)	($256,876	)	$3,247		$573,015
Adoption of accounting standards (a),(b)	-	-	(5,085	)	-		-		(327	)	(5,412	)
Net income	-	-	10,245		-		-		237		10,482
Compensation and benefits paid or payable in shares	-	289	-		-		-		-		289
Options exercised	-	147	-		-		-		-		147
Dividends declared	-	-	(5,483	)	-		-		-		(5,483	)
Cumulative translation adjustments	-	-	-		17,646		-		(7	)	17,639
Pension and postretirement liability adjustments	-	-	-		(13	)	-		-		(13	)
Derivative valuation adjustment	-	-	-		4,480		-		-		4,480
March 31, 2018	$40	$428,859	$533,759		($113,788	)	($256,876	)	$3,150		$595,144

(a) As described in Note 2, the Company adopted ASC 606 effective January 1, 2018, which resulted in a decrease to Retained earnings of $5.6 million and a $0.3 million decrease to Noncontrolling interest.

(b) As described in Note 7, the Company adopted ASU 2016-16 effective January 1, 2018, which resulted in a $0.5 increase to Retained earnings.

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Revenue Recognition (Narrative) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($)
Revenue Recognition [Abstract]
Performance obligations	$ 115,000
Revenue recognized	$ 50,000

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Revenue Recognition (Schedule of Consolidated Balance Sheet) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
ASSETS
Cash and cash equivalents	$ 151,426	$ 183,727	$ 143,333	$ 181,742
Accounts receivable, net	248,538	202,675
Contract assets	42,895
Inventories	100,034	136,519
Income taxes prepaid and receivable	6,132	6,266
Prepaid expenses and other current assets	18,675	14,520
Total current assets	567,700	543,707
Property, plant and equipment, net	459,388	454,302
Intangibles, net	53,881	55,441
Goodwill	168,311	166,796
Deferred income taxes	70,174	68,648
Noncurrent receivables	35,338	32,811
Other assets	45,543	39,493
Total assets	1,400,335	1,361,198
LIABILITIES AND SHAREHOLDERS' EQUITY
Notes and loans payable	226	262
Accounts payable	45,694	44,899
Accrued liabilities	122,103	105,914
Current maturities of long-term debt	1,821	1,799
Income taxes payable	5,182	8,643
Total current liabilities	175,026	161,517
Long-term debt	518,656	514,120
Other noncurrent liabilities	100,170	101,555
Deferred taxes and other liabilities	11,339	10,991
Total liabilities	805,191	788,183
SHAREHOLDERS' EQUITY
Preferred stock, par value $5.00 per share; authorized 2,000,000 shares; none issued
Additional paid in capital	428,859	428,423
Retained earnings	533,759	534,082
Accumulated items of other comprehensive income:
Translation adjustments	(69,672)	(87,318)
Pension and postretirement liability adjustments	(50,549)	(50,536)
Derivative valuation adjustment	6,433	1,953
Treasury stock (Class A), at cost 8,431,335 shares in 2017 and 8,443,444 shares in 2016	(256,876)	(256,876)
Total Company shareholders' equity	591,994	569,768
Noncontrolling interest	3,150	3,247
Total equity	595,144	573,015
Total liabilities and shareholders' equity	1,400,335	1,361,198
Common Class A [Member]
SHAREHOLDERS' EQUITY
Common Stock	37	37
Common Class B [Member]
SHAREHOLDERS' EQUITY
Common Stock	$ 3	3
As previously reported [Member]
ASSETS
Cash and cash equivalents		183,727
Accounts receivable, net		202,675
Contract assets
Inventories		136,519
Income taxes prepaid and receivable		6,266
Prepaid expenses and other current assets		14,520
Total current assets		543,707
Property, plant and equipment, net		454,302
Intangibles, net		55,441
Goodwill		166,796
Deferred income taxes		68,648
Noncurrent receivables		32,811
Other assets		39,493
Total assets		1,361,198
LIABILITIES AND SHAREHOLDERS' EQUITY
Notes and loans payable		262
Accounts payable		44,899
Accrued liabilities		105,914
Current maturities of long-term debt		1,799
Income taxes payable		8,643
Total current liabilities		161,517
Long-term debt		514,120
Other noncurrent liabilities		101,555
Deferred taxes and other liabilities		10,991
Total liabilities		788,183
SHAREHOLDERS' EQUITY
Preferred stock, par value $5.00 per share; authorized 2,000,000 shares; none issued
Additional paid in capital		428,423
Retained earnings		534,082
Accumulated items of other comprehensive income:
Translation adjustments		(87,318)
Pension and postretirement liability adjustments		(50,536)
Derivative valuation adjustment		1,953
Treasury stock (Class A), at cost 8,431,335 shares in 2017 and 8,443,444 shares in 2016		(256,876)
Total Company shareholders' equity		569,768
Noncontrolling interest		3,247
Total equity		573,015
Total liabilities and shareholders' equity		1,361,198
As previously reported [Member] | Common Class A [Member]
SHAREHOLDERS' EQUITY
Common Stock		37
As previously reported [Member] | Common Class B [Member]
SHAREHOLDERS' EQUITY
Common Stock		3
Adjustments Increase/(decrease) [Member]
ASSETS
Cash and cash equivalents
Accounts receivable, net		10,210
Contract assets		44,872
Inventories		(47,054)
Income taxes prepaid and receivable
Prepaid expenses and other current assets
Total current assets		8,028
Property, plant and equipment, net
Intangibles, net
Goodwill
Deferred income taxes		1,756
Noncurrent receivables
Other assets		1,119
Total assets		10,903
LIABILITIES AND SHAREHOLDERS' EQUITY
Notes and loans payable
Accounts payable
Accrued liabilities		16,808
Current maturities of long-term debt
Income taxes payable
Total current liabilities		16,808
Long-term debt
Other noncurrent liabilities
Deferred taxes and other liabilities		52
Total liabilities		16,860
SHAREHOLDERS' EQUITY
Preferred stock, par value $5.00 per share; authorized 2,000,000 shares; none issued
Additional paid in capital
Retained earnings		(5,630)
Accumulated items of other comprehensive income:
Translation adjustments
Pension and postretirement liability adjustments
Derivative valuation adjustment
Treasury stock (Class A), at cost 8,431,335 shares in 2017 and 8,443,444 shares in 2016
Total Company shareholders' equity		(5,630)
Noncontrolling interest		(327)
Total equity		(5,957)
Total liabilities and shareholders' equity		10,903
Adjustments Increase/(decrease) [Member] | Common Class A [Member]
SHAREHOLDERS' EQUITY
Common Stock
Adjustments Increase/(decrease) [Member] | Common Class B [Member]
SHAREHOLDERS' EQUITY
Common Stock
Opening balance, as adjusted, January 1, 2018 [Member]
ASSETS
Cash and cash equivalents		183,727
Accounts receivable, net		212,885
Contract assets		44,872
Inventories		89,465
Income taxes prepaid and receivable		6,266
Prepaid expenses and other current assets		14,520
Total current assets		551,735
Property, plant and equipment, net		454,302
Intangibles, net		55,441
Goodwill		166,796
Deferred income taxes		70,404
Noncurrent receivables		32,811
Other assets		40,612
Total assets		1,372,101
LIABILITIES AND SHAREHOLDERS' EQUITY
Notes and loans payable		262
Accounts payable		44,899
Accrued liabilities		122,722
Current maturities of long-term debt		1,799
Income taxes payable		8,643
Total current liabilities		178,325
Long-term debt		514,120
Other noncurrent liabilities		101,555
Deferred taxes and other liabilities		11,043
Total liabilities		805,043
SHAREHOLDERS' EQUITY
Preferred stock, par value $5.00 per share; authorized 2,000,000 shares; none issued
Additional paid in capital		428,423
Retained earnings		528,452
Accumulated items of other comprehensive income:
Translation adjustments		(87,318)
Pension and postretirement liability adjustments		(50,536)
Derivative valuation adjustment		1,953
Treasury stock (Class A), at cost 8,431,335 shares in 2017 and 8,443,444 shares in 2016		(256,876)
Total Company shareholders' equity		564,138
Noncontrolling interest		2,920
Total equity		567,058
Total liabilities and shareholders' equity		1,372,101
Opening balance, as adjusted, January 1, 2018 [Member] | Common Class A [Member]
SHAREHOLDERS' EQUITY
Common Stock		37
Opening balance, as adjusted, January 1, 2018 [Member] | Common Class B [Member]
SHAREHOLDERS' EQUITY
Common Stock		$ 3

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Revenue Recognition (Schedule of Consolidated Balance Sheet) (Details) (Parenthetical) - $ / shares	Mar. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Preferred Stock, par value per share	$ 5.00	$ 5.00
Preferred Stock, shares authorized	2,000,000	2,000,000
Preferred Stock, shares issued	0	0
Common Class A [Member]
Common Stock, par value per share	$ 0.001	$ 0.001
Common Stock, shares authorized	100,000,000	100,000,000
Common Stock, shares issued	37,447,669	37,395,753
Treasury stock, shares	8,431,335	8,431,335
Common Class B [Member]
Common Stock, par value per share	$ 0.001	$ 0.001
Common Stock, shares authorized	25,000,000	25,000,000
Common Stock, shares issued	3,233,998	3,233,998
As previously reported [Member]
Preferred Stock, par value per share		$ 5.00
Preferred Stock, shares authorized		2,000,000
Preferred Stock, shares issued		0
As previously reported [Member] | Common Class A [Member]
Common Stock, par value per share		$ 0.001
Common Stock, shares authorized		100,000,000
Common Stock, shares issued		37,395,753	37,319,266
Treasury stock, shares		8,431,335	8,443,444
As previously reported [Member] | Common Class B [Member]
Common Stock, par value per share		$ 0.001
Common Stock, shares authorized		25,000,000
Common Stock, shares issued		3,233,998	3,233,998
Common Stock, shares outstanding		3,233,998	3,233,998
Adjustments Increase/(decrease) [Member]
Preferred Stock, par value per share		$ 5.00
Preferred Stock, shares authorized		2,000,000
Preferred Stock, shares issued		0
Adjustments Increase/(decrease) [Member] | Common Class A [Member]
Common Stock, par value per share		$ 0.001
Common Stock, shares authorized		100,000,000
Common Stock, shares issued		37,395,753	37,319,266
Adjustments Increase/(decrease) [Member] | Common Class B [Member]
Common Stock, par value per share		$ 0.001
Common Stock, shares authorized		25,000,000
Common Stock, shares issued		3,233,998	3,233,998
Common Stock, shares outstanding		3,233,998	3,233,998
Opening balance, as adjusted, January 1, 2018 [Member]
Preferred Stock, par value per share		$ 5.00
Preferred Stock, shares authorized		2,000,000
Preferred Stock, shares issued		0
Opening balance, as adjusted, January 1, 2018 [Member] | Common Class A [Member]
Common Stock, par value per share		$ 0.001
Common Stock, shares authorized		100,000,000
Common Stock, shares issued		37,395,753	37,319,266
Opening balance, as adjusted, January 1, 2018 [Member] | Common Class B [Member]
Common Stock, par value per share		$ 0.001
Common Stock, shares authorized		25,000,000
Common Stock, shares issued		3,233,998	3,233,998
Common Stock, shares outstanding		3,233,998	3,233,998

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Revenue Recognition (Schedule of Summary of Composition of Each Business Segment) (Details)	3 Months Ended
	Mar. 31, 2018
Machine Clothing [Member]
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Segment	Machine Clothing (MC)
Reporting Unit	Machine Clothing
Principal Product or Service	Paper machine clothing: Permeable and impermeable belts used in the manufacture of paper, paperboard, tissue and towel, and pulp Engineered fabrics: Belts used in the manufacture of nonwovens, fiber cement and several other industrial applications
Principal Locations	World-wide
Albany Engineered Composites [Member]
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Segment	Albany Engineered Composites (AEC)
Reporting Unit	Albany Safran Composites (ASC) Airframe and engine Components (Other AEC)
Principal Product or Service	3D-woven, injected composite components for aircraft engines Composite airframe and engine components for military and commercial aircraft
Principal Locations	Rochester, NH Commercy, France Queretero, Mexico Salt Lake City, UT Boerne, TX Queretero, Mexico

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Revenue Recognition (Schedule of Disaggregate Revenue for Each Business Segment) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Disaggregation of Revenue [Line Items]
Total Revenue	$ 229,981	$ 199,277
Machine Clothing [Member]
Disaggregation of Revenue [Line Items]
Total Revenue	148,151	142,827
Albany Engineered Composites ASC [Member]
Disaggregation of Revenue [Line Items]
Total Revenue	40,781
Albany Engineered Composites Other AEC [Member]
Disaggregation of Revenue [Line Items]
Total Revenue	41,049
Albany Engineered Composites [Member]
Disaggregation of Revenue [Line Items]
Total Revenue	81,830	$ 56,450
Point in Time Revenue Recognition [Member]
Disaggregation of Revenue [Line Items]
Total Revenue	153,391
Point in Time Revenue Recognition [Member] | Machine Clothing [Member]
Disaggregation of Revenue [Line Items]
Total Revenue	147,351
Point in Time Revenue Recognition [Member] | Albany Engineered Composites ASC [Member]
Disaggregation of Revenue [Line Items]
Total Revenue
Point in Time Revenue Recognition [Member] | Albany Engineered Composites Other AEC [Member]
Disaggregation of Revenue [Line Items]
Total Revenue	6,040
Point in Time Revenue Recognition [Member] | Albany Engineered Composites [Member]
Disaggregation of Revenue [Line Items]
Total Revenue	6,040
Over Time Revenue Recognition [Member]
Disaggregation of Revenue [Line Items]
Total Revenue	76,590
Over Time Revenue Recognition [Member] | Machine Clothing [Member]
Disaggregation of Revenue [Line Items]
Total Revenue	800
Over Time Revenue Recognition [Member] | Albany Engineered Composites ASC [Member]
Disaggregation of Revenue [Line Items]
Total Revenue	40,781
Over Time Revenue Recognition [Member] | Albany Engineered Composites Other AEC [Member]
Disaggregation of Revenue [Line Items]
Total Revenue	35,009
Over Time Revenue Recognition [Member] | Albany Engineered Composites [Member]
Disaggregation of Revenue [Line Items]
Total Revenue	$ 75,790

XML

Revenue Recognition (Schedule of Disaggregate MC Segment Revenue by Significant Product or Service) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Disaggregation of Revenue [Line Items]
Net sales	$ 229,981	$ 199,277
Machine Clothing [Member]
Disaggregation of Revenue [Line Items]
Net sales	148,151	$ 142,827
Americas PMC [Member]
Disaggregation of Revenue [Line Items]
Net sales	69,858
Eurasia PMC [Member]
Disaggregation of Revenue [Line Items]
Net sales	56,933
Engineered Fabrics [Member]
Disaggregation of Revenue [Line Items]
Net sales	$ 21,360

XML

Revenue Recognition (Schedule of Consolidated Statement of Income) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Net sales	$ 229,981	$ 199,277
Cost of goods sold	148,330	123,249
Gross profit	81,651	76,028
Selling, general, and administrative expenses	41,930	40,407
Technical and research expenses	10,317	10,262
Restructuring expenses, net	8,573	2,681
Operating income	20,831	22,678
Interest expense, net	4,288	4,328
Other expense, net	1,452	826
Income before income taxes	15,091	17,524
Income tax expense	4,609	6,550
Net income	10,482	10,974
Net income attributable to the noncontrolling interest	237	135
Net income attributable to the Company	$ 10,245	$ 10,839
Earnings per share attributable to Company shareholders - Basic	$ 0.32	$ 0.34
Earnings per share attributable to Company shareholders - Diluted	$ 0.32	$ 0.34
As reported [Member]
Net sales	$ 229,981
Cost of goods sold	148,330
Gross profit	81,651
Selling, general, and administrative expenses	41,930
Technical and research expenses	10,317
Restructuring expenses, net	8,573
Operating income	20,831
Interest expense, net	4,288
Other expense, net	1,452
Income before income taxes	15,091
Income tax expense	4,609
Net income	10,482
Net income attributable to the noncontrolling interest	237
Net income attributable to the Company	$ 10,245
Earnings per share attributable to Company shareholders - Basic	$ 0.32
Earnings per share attributable to Company shareholders - Diluted	$ 0.32
Adjustments to reverse effects of ASC 606 [Member]
Net sales	$ (8,434)
Cost of goods sold	(6,526)
Gross profit	(1,908)
Selling, general, and administrative expenses	(60)
Technical and research expenses
Restructuring expenses, net
Operating income	(1,848)
Interest expense, net
Other expense, net
Income before income taxes	(1,848)
Income tax expense	(601)
Net income	(1,247)
Net income attributable to the noncontrolling interest	(57)
Net income attributable to the Company	$ (1,190)
Earnings per share attributable to Company shareholders - Basic	$ (0.04)
Earnings per share attributable to Company shareholders - Diluted	$ (0.04)
As adjusted to exclude adoption of ASC 606 [Member]
Net sales	$ 221,547
Cost of goods sold	141,804
Gross profit	79,743
Selling, general, and administrative expenses	41,870
Technical and research expenses	10,317
Restructuring expenses, net	8,573
Operating income	18,983
Interest expense, net	4,288
Other expense, net	1,452
Income before income taxes	13,243
Income tax expense	4,008
Net income	9,235
Net income attributable to the noncontrolling interest	180
Net income attributable to the Company	$ 9,055
Earnings per share attributable to Company shareholders - Basic	$ 0.28
Earnings per share attributable to Company shareholders - Diluted	$ 0.28

XML

Revenue Recognition (Schedule of Consolidated Statement of Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Net income	$ 10,482	$ 10,974
Other comprehensive income/(loss), before tax:
Foreign currency translation adjustments	17,505	9,938
Amortization of pension liability adjustments:
Prior service credit	(1,114)	(1,113)
Net actuarial loss	1,297	1,347
Payments related to interest rate swaps included in earnings	180	600
Derivative valuation adjustment	5,715	416
Income taxes related to items of other comprehensive income/(loss):
Amortization of pension liability adjustment	(55)	(70)
Payments related to interest rate swaps included in earnings	(43)	(228)
Derivative valuation adjustment	(1,372)	(158)
Comprehensive income	32,595	21,706
Comprehensive income attributable to the noncontrolling interest	230	140
Comprehensive income attributable to the Company	32,365	$ 21,566
As reported [Member]
Net income	10,482
Other comprehensive income/(loss), before tax:
Foreign currency translation adjustments	17,505
Amortization of pension liability adjustments:
Prior service credit	(1,114)
Net actuarial loss	1,297
Payments related to interest rate swaps included in earnings	180
Derivative valuation adjustment	5,715
Income taxes related to items of other comprehensive income/(loss):
Pension/postretirement plan remeasurement
Amortization of pension liability adjustment	(55)
Payments related to interest rate swaps included in earnings	(43)
Derivative valuation adjustment	(1,372)
Comprehensive income	32,595
Comprehensive income attributable to the noncontrolling interest	230
Comprehensive income attributable to the Company	32,365
Adjustments to reverse effects of ASC 606 [Member]
Net income	(1,247)
Other comprehensive income/(loss), before tax:
Foreign currency translation adjustments	(308)
Amortization of pension liability adjustments:
Prior service credit
Net actuarial loss
Payments related to interest rate swaps included in earnings
Derivative valuation adjustment
Income taxes related to items of other comprehensive income/(loss):
Pension/postretirement plan remeasurement
Amortization of pension liability adjustment
Payments related to interest rate swaps included in earnings
Derivative valuation adjustment
Comprehensive income	(1,555)
Comprehensive income attributable to the noncontrolling interest	(57)
Comprehensive income attributable to the Company	(1,498)
As adjusted to exclude adoption of ASC 606 [Member]
Net income	9,235
Other comprehensive income/(loss), before tax:
Foreign currency translation adjustments	17,197
Amortization of pension liability adjustments:
Prior service credit	(1,114)
Net actuarial loss	1,297
Payments related to interest rate swaps included in earnings	180
Derivative valuation adjustment	5,715
Income taxes related to items of other comprehensive income/(loss):
Pension/postretirement plan remeasurement
Amortization of pension liability adjustment	(55)
Payments related to interest rate swaps included in earnings	(43)
Derivative valuation adjustment	(1,372)
Comprehensive income	31,040
Comprehensive income attributable to the noncontrolling interest	173
Comprehensive income attributable to the Company	$ 30,867

XML

Revenue Recognition (Schedule of Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
ASSETS
Cash and cash equivalents	$ 151,426	$ 183,727	$ 143,333	$ 181,742
Accounts receivable, net	248,538	202,675
Contract assets	42,895
Inventories	100,034	136,519
Income taxes prepaid and receivable	6,132	6,266
Prepaid expenses and other current assets	18,675	14,520
Total current assets	567,700	543,707
Property, plant and equipment, net	459,388	454,302
Intangibles, net	53,881	55,441
Goodwill	168,311	166,796
Income taxes receivable and deferred	70,174	68,648
Noncurrent receivables	35,338	32,811
Other assets	45,543	39,493
Total assets	1,400,335	1,361,198
LIABILITIES AND SHAREHOLDERS' EQUITY
Notes and loans payable	226	262
Accounts payable	45,694	44,899
Accrued liabilities	122,103	105,914
Current maturities of long-term debt	1,821	1,799
Income taxes payable	5,182	8,643
Total current liabilities	175,026	161,517
Long-term debt	518,656	514,120
Other noncurrent liabilities	100,170	101,555
Deferred taxes and other liabilities	11,339	10,991
Total liabilities	805,191	788,183
SHAREHOLDERS' EQUITY
Preferred stock, par value $5.00 per share; authorized 2,000,000 shares; none issued
Additional paid in capital	428,859	428,423
Retained earnings	533,759	534,082
Accumulated items of other comprehensive income:
Translation adjustments	(69,672)	(87,318)
Pension and postretirement liability adjustments	(50,549)	(50,536)
Derivative valuation adjustment	6,433	1,953
Treasury stock (Class A), at cost 8,431,335 shares in 2018 and 2017	(256,876)	(256,876)
Total Company shareholders' equity	591,994	569,768
Noncontrolling interest	3,150	3,247
Total equity	595,144	573,015
Total liabilities and shareholders' equity	1,400,335	1,361,198
Common Class A [Member]
SHAREHOLDERS' EQUITY
Common Stock	37	37
Common Class B [Member]
SHAREHOLDERS' EQUITY
Common Stock	3	$ 3
As reported [Member]
ASSETS
Cash and cash equivalents	151,426
Accounts receivable, net	248,538
Contract assets	42,895
Inventories	100,034
Income taxes prepaid and receivable	6,132
Prepaid expenses and other current assets	18,675
Total current assets	567,700
Property, plant and equipment, net	459,388
Intangibles, net	53,881
Goodwill	168,311
Income taxes receivable and deferred	70,174
Noncurrent receivables	35,338
Other assets	45,543
Total assets	1,400,335
LIABILITIES AND SHAREHOLDERS' EQUITY
Notes and loans payable	226
Accounts payable	45,694
Accrued liabilities	122,103
Current maturities of long-term debt	1,821
Income taxes payable	5,182
Total current liabilities	175,026
Long-term debt	518,656
Other noncurrent liabilities	100,170
Deferred taxes and other liabilities	11,339
Total liabilities	805,191
SHAREHOLDERS' EQUITY
Preferred stock, par value $5.00 per share; authorized 2,000,000 shares; none issued
Additional paid in capital	428,859
Retained earnings	533,759
Accumulated items of other comprehensive income:
Translation adjustments	(69,672)
Pension and postretirement liability adjustments	(50,549)
Derivative valuation adjustment	6,433
Treasury stock (Class A), at cost 8,431,335 shares in 2018 and 2017	(256,876)
Total Company shareholders' equity	591,994
Noncontrolling interest	3,150
Total equity	595,144
Total liabilities and shareholders' equity	1,400,335
As reported [Member] | Common Class A [Member]
SHAREHOLDERS' EQUITY
Common Stock	37
As reported [Member] | Common Class B [Member]
SHAREHOLDERS' EQUITY
Common Stock	3
Adjustments to reverse effects of ASC 606 [Member]
ASSETS
Cash and cash equivalents
Accounts receivable, net	(21,720)
Contract assets	(42,895)
Inventories	53,752
Income taxes prepaid and receivable
Prepaid expenses and other current assets
Total current assets	(10,863)
Property, plant and equipment, net
Intangibles, net
Goodwill
Income taxes receivable and deferred	(1,155)
Noncurrent receivables
Other assets	(1,256)
Total assets	(13,274)
LIABILITIES AND SHAREHOLDERS' EQUITY
Notes and loans payable
Accounts payable
Accrued liabilities	(17,624)
Current maturities of long-term debt
Income taxes payable
Total current liabilities	(17,624)
Long-term debt
Other noncurrent liabilities
Deferred taxes and other liabilities	(51)
Total liabilities	(17,675)
SHAREHOLDERS' EQUITY
Preferred stock, par value $5.00 per share; authorized 2,000,000 shares; none issued
Retained earnings	4,439
Accumulated items of other comprehensive income:
Translation adjustments	(308)
Pension and postretirement liability adjustments
Derivative valuation adjustment
Treasury stock (Class A), at cost 8,431,335 shares in 2018 and 2017
Total Company shareholders' equity	4,131
Noncontrolling interest	270
Total equity	4,401
Total liabilities and shareholders' equity	(13,274)
Adjustments to reverse effects of ASC 606 [Member] | Common Class A [Member]
SHAREHOLDERS' EQUITY
Common Stock
Adjustments to reverse effects of ASC 606 [Member] | Common Class B [Member]
SHAREHOLDERS' EQUITY
Common Stock
As adjusted to exclude adoption of ASC 606 [Member]
ASSETS
Cash and cash equivalents	151,426
Accounts receivable, net	226,818
Contract assets
Inventories	153,786
Income taxes prepaid and receivable	6,132
Prepaid expenses and other current assets	18,675
Total current assets	556,837
Property, plant and equipment, net	459,388
Intangibles, net	53,881
Goodwill	168,311
Income taxes receivable and deferred	69,019
Noncurrent receivables	35,338
Other assets	44,287
Total assets	1,387,061
LIABILITIES AND SHAREHOLDERS' EQUITY
Notes and loans payable	226
Accounts payable	45,694
Accrued liabilities	104,479
Current maturities of long-term debt	1,821
Income taxes payable	5,182
Total current liabilities	157,402
Long-term debt	518,656
Other noncurrent liabilities	100,170
Deferred taxes and other liabilities	11,288
Total liabilities	787,516
SHAREHOLDERS' EQUITY
Preferred stock, par value $5.00 per share; authorized 2,000,000 shares; none issued
Additional paid in capital	428,859
Retained earnings	538,198
Accumulated items of other comprehensive income:
Translation adjustments	(69,980)
Pension and postretirement liability adjustments	(50,549)
Derivative valuation adjustment	6,433
Treasury stock (Class A), at cost 8,431,335 shares in 2018 and 2017	(256,876)
Total Company shareholders' equity	596,125
Noncontrolling interest	3,420
Total equity	599,545
Total liabilities and shareholders' equity	1,387,061
As adjusted to exclude adoption of ASC 606 [Member] | Common Class A [Member]
SHAREHOLDERS' EQUITY
Common Stock	37
As adjusted to exclude adoption of ASC 606 [Member] | Common Class B [Member]
SHAREHOLDERS' EQUITY
Common Stock	$ 3

XML

Revenue Recognition (Schedule of Consolidated Balance Sheets) (Details) (Parenthetical) - $ / shares	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
Preferred Stock, par value per share	$ 5.00	$ 5.00
Preferred Stock, shares authorized	2,000,000	2,000,000
Preferred Stock, shares issued	0	0
Common Class A [Member]
Common Stock, par value per share	$ 0.001	$ 0.001
Common Stock, shares authorized	100,000,000	100,000,000
Common Stock, shares issued	37,447,669	37,395,753
Treasury stock, shares	8,431,335	8,431,335
Common Class B [Member]
Common Stock, par value per share	$ 0.001	$ 0.001
Common Stock, shares authorized	25,000,000	25,000,000
Common Stock, shares issued	3,233,998	3,233,998
As reported [Member]
Preferred Stock, par value per share	$ 5.00
Preferred Stock, shares authorized	2,000,000
Preferred Stock, shares issued	0
As reported [Member] | Common Class A [Member]
Common Stock, par value per share	$ 0.001
Common Stock, shares authorized	100,000,000
Common Stock, shares issued	37,447,669		37,395,753
Treasury stock, shares	8,431,335		8,431,335
As reported [Member] | Common Class B [Member]
Common Stock, par value per share	$ 0.001
Common Stock, shares authorized	25,000,000
Common Stock, shares issued	3,233,998		3,233,998
Common Stock, shares outstanding	3,233,998		3,233,998
Adjustments to reverse effects of ASC 606 [Member]
Preferred Stock, par value per share	$ 5.00
Preferred Stock, shares authorized	2,000,000
Preferred Stock, shares issued	0
Adjustments to reverse effects of ASC 606 [Member] | Common Class A [Member]
Common Stock, par value per share	$ 0.001
Common Stock, shares authorized	100,000,000
Common Stock, shares issued	37,447,669		37,395,753
Adjustments to reverse effects of ASC 606 [Member] | Common Class B [Member]
Common Stock, par value per share	$ 0.001
Common Stock, shares authorized	25,000,000
Common Stock, shares issued	3,233,998		3,233,998
Common Stock, shares outstanding	3,233,998		3,233,998
As adjusted to exclude adoption of ASC 606 [Member]
Preferred Stock, par value per share	$ 5.00
Preferred Stock, shares authorized	2,000,000
Preferred Stock, shares issued	0
As adjusted to exclude adoption of ASC 606 [Member] | Common Class A [Member]
Common Stock, par value per share	$ 0.001
Common Stock, shares authorized	100,000,000
Common Stock, shares issued	37,447,669		37,395,753
As adjusted to exclude adoption of ASC 606 [Member] | Common Class B [Member]
Common Stock, par value per share	$ 0.001
Common Stock, shares authorized	25,000,000
Common Stock, shares issued	3,233,998		3,233,998
Common Stock, shares outstanding	3,233,998		3,233,998

XML

Revenue Recognition (Schedule of Consolidated Statement of Cash Flows) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
OPERATING ACTIVITIES
Net income	$ 10,482	$ 10,974
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation	18,302	14,644
Amortization	2,646	2,649
Change in other noncurrent liabilities	(377)	(1,596)
Change in deferred taxes and other liabilities	(784)	(612)
Provision for write-off of property, plant and equipment	271	296
Non-cash interest expense		211
Compensation and benefits paid or payable in Class A Common Stock	289	989
Fair value adjustment on foreign currency option	37	54
Changes in operating assets and liabilities that (used)/provided cash:
Accounts receivable	(31,467)	(741)
Contract assets	2,116
Inventories	(9,244)	(14,921)
Prepaid expenses and other current assets	(4,063)	(1,917)
Income taxes prepaid and receivable	102
Accounts payable	(2,538)	3,524
Accrued liabilities	(1,185)	(10,971)
Income taxes payable	(3,431)	(2,486)
Noncurrent receivables	2,527	(3,915)
Other, net	(2,630)	(754)
Net cash used in operating activities	(18,947)	(4,572)
Net cash used in investing activities	(15,800)	(25,083)
Net cash used in financing activities	(2,458)	(11,205)
Effect of exchange rate changes on cash and cash equivalents	4,904	2,451
Decrease in cash and cash equivalents	(32,301)	(38,409)
Cash and cash equivalents at beginning of period	183,727	181,742
Cash and cash equivalents at end of period	151,426	$ 143,333
As reported [Member]
OPERATING ACTIVITIES
Net income	10,482
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation	18,302
Amortization	2,646
Change in other noncurrent liabilities	(377)
Change in deferred taxes and other liabilities	(784)
Provision for write-off of property, plant and equipment	271
Non-cash interest expense
Compensation and benefits paid or payable in Class A Common Stock	289
Fair value adjustment on foreign currency option	37
Changes in operating assets and liabilities that (used)/provided cash:
Accounts receivable	(31,467)
Contract assets	2,116
Inventories	(9,244)
Prepaid expenses and other current assets	(4,063)
Income taxes prepaid and receivable	102
Accounts payable	(2,538)
Accrued liabilities	(1,185)
Income taxes payable	(3,431)
Noncurrent receivables	2,527
Other, net	(2,630)
Net cash used in operating activities	(18,947)
Net cash used in investing activities	(15,800)
Net cash used in financing activities	(2,458)
Effect of exchange rate changes on cash and cash equivalents	4,904
Decrease in cash and cash equivalents	(32,301)
Cash and cash equivalents at beginning of period	183,727
Cash and cash equivalents at end of period	151,426
Adjustments to reverse effects of ASC 606 [Member]
OPERATING ACTIVITIES
Net income	(1,247)
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation
Amortization
Change in other noncurrent liabilities
Change in deferred taxes and other liabilities	1,103
Provision for write-off of property, plant and equipment
Non-cash interest expense
Compensation and benefits paid or payable in Class A Common Stock
Fair value adjustment on foreign currency option
Changes in operating assets and liabilities that (used)/provided cash:
Accounts receivable	7,324
Contract assets	(2,116)
Inventories	(8,023)
Prepaid expenses and other current assets
Income taxes prepaid and receivable
Accounts payable
Accrued liabilities	(250)
Income taxes payable
Noncurrent receivables
Other, net	3,209
Net cash used in operating activities
Net cash used in investing activities
Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Decrease in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
As adjusted to exclude adoption of ASC 606 [Member]
OPERATING ACTIVITIES
Net income	9,235
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation	18,302
Amortization	2,646
Change in other noncurrent liabilities	(377)
Change in deferred taxes and other liabilities	319
Provision for write-off of property, plant and equipment	271
Non-cash interest expense
Compensation and benefits paid or payable in Class A Common Stock	289
Fair value adjustment on foreign currency option	37
Changes in operating assets and liabilities that (used)/provided cash:
Accounts receivable	(24,143)
Contract assets
Inventories	(17,267)
Prepaid expenses and other current assets	(4,063)
Income taxes prepaid and receivable	102
Accounts payable	(2,538)
Accrued liabilities	(1,435)
Income taxes payable	(3,431)
Noncurrent receivables	2,527
Other, net	579
Net cash used in operating activities	(18,947)
Net cash used in investing activities	(15,800)
Net cash used in financing activities	(2,458)
Effect of exchange rate changes on cash and cash equivalents	4,904
Decrease in cash and cash equivalents	(32,301)
Cash and cash equivalents at beginning of period	183,727
Cash and cash equivalents at end of period	$ 151,426

XML

Reportable Segments (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Segment Reporting Information [Line Items]
Net sales	$ 229,981	$ 199,277
Albany Safran Composites, LLC [Member]
Segment Reporting Information [Line Items]
Net sales	40,800	25,400
Invoiced receivables, unbilled receivables and contract receivables	90,000		$ 58,600
Machine Clothing [Member]
Segment Reporting Information [Line Items]
Net sales	$ 148,151	$ 142,827
Increase decrease in assets			22,000
AEC assets [Member]
Segment Reporting Information [Line Items]
Increase decrease in assets			$ (13,000)

XML

Reportable Segments (Schedule of Financial Data by Reporting Segment) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Segment Reporting Information [Line Items]
Net sales	$ 229,981	$ 199,277
Operating income/(loss)	20,831	22,678
Interest income	(382)	(107)
Interest expense	4,670	4,435
Other expense/(income), net	1,452	826
Income before income taxes	15,091	17,524
Increase/(decrease) attributable to application of ASC 606 [Member]
Segment Reporting Information [Line Items]
Net sales	8,434
Operating income/(loss)	1,848
Interest income
Interest expense
Other expense/(income), net
Income before income taxes	1,848
Machine Clothing [Member]
Segment Reporting Information [Line Items]
Net sales	148,151	142,827
Operating income/(loss)	30,769	38,263
Machine Clothing [Member] | Increase/(decrease) attributable to application of ASC 606 [Member]
Segment Reporting Information [Line Items]
Net sales	4,211
Operating income/(loss)	979
Albany Engineered Composites [Member]
Segment Reporting Information [Line Items]
Net sales	81,830	56,450
Operating income/(loss)	2,275	(5,114)
Albany Engineered Composites [Member] | Increase/(decrease) attributable to application of ASC 606 [Member]
Segment Reporting Information [Line Items]
Net sales	4,223
Operating income/(loss)	869
Corporate Expenses [Member]
Segment Reporting Information [Line Items]
Operating income/(loss)	(12,213)	$ (10,471)
Corporate Expenses [Member] | Increase/(decrease) attributable to application of ASC 606 [Member]
Segment Reporting Information [Line Items]
Operating income/(loss)

XML

Reportable Segments (Schedule of Restructuring Costs by Reporting Segment) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Restructuring expense
Restructuring expenses, net	$ 8,573	$ 2,681
Machine Clothing [Member]
Restructuring expense
Restructuring expenses, net	8,352	110
Albany Engineered Composites [Member]
Restructuring expense
Restructuring expenses, net	$ 221	$ 2,571

XML

Pensions and Other Postretirement Benefit Plans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 699	$ 651
Interest cost	1,820	1,828
Expected return on assets	(2,247)	(1,993)
Amortization of prior service cost/(credit)	8	9
Amortization of net actuarial loss	558	645
Net periodic benefit cost	838	1,140
Other Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	58	61
Interest cost	507	553
Expected return on assets
Amortization of prior service cost/(credit)	(1,122)	(1,122)
Amortization of net actuarial loss	739	702
Net periodic benefit cost	$ 182	$ 194

XML

Pensions and Other Postretirement Benefit Plans (Schedule of Amounts Reclassified by Segment and Financial Statement) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017 USD ($)
Increase/(decrease) in expense Effect by segment operating expenses [Member]
Defined Benefit Plan Disclosure [Line Items]
Total operating expenses	$ (622)
Other expense, net	622
Increase/(decrease) in expense Effect by segment operating expenses [Member] | Machine Clothing [Member]
Defined Benefit Plan Disclosure [Line Items]
Total operating expenses	(2)
Increase/(decrease) in expense Effect by segment operating expenses [Member] | Albany Engineered Composites [Member]
Defined Benefit Plan Disclosure [Line Items]
Total operating expenses
Increase/(decrease) in expense Effect by segment operating expenses [Member] | Corporate Expenses [Member]
Defined Benefit Plan Disclosure [Line Items]
Total operating expenses	(620)
Increase/(decrease) in expense Effect by Statement of Income [Member]
Defined Benefit Plan Disclosure [Line Items]
Total operating expenses	(622)
Other expense, net	622
Increase/(decrease) in expense Effect by Statement of Income [Member] | Cost of goods sold [Member]
Defined Benefit Plan Disclosure [Line Items]
Total operating expenses	(123)
Increase/(decrease) in expense Effect by Statement of Income [Member] | Selling, general and administrative expenses [Member]
Defined Benefit Plan Disclosure [Line Items]
Total operating expenses	$ (499)

XML

Restructuring (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Jun. 30, 2017
Restructuring Cost and Reserve [Line Items]
Restructuring expense	$ 8,100
Accrued restructuring costs expected to be paid within one year	8,200
Accrued restructuring costs expected to be paid in year two	1,700
Severance and outplacement costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring expense	$ 9,200
Machine Clothing [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring expense			$ 1,100
AEC assets [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring expense		$ 5,200

XML

Restructuring (Schedule of Restructuring Charges) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Restructuring and other, net
Restructuring expenses, net	$ 8,573	$ 2,681
Machine Clothing [Member]
Restructuring and other, net
Restructuring expenses, net	8,352	110
Albany Engineered Composites [Member]
Restructuring and other, net
Restructuring expenses, net	221	2,571
Termination and other costs [Member]
Restructuring and other, net
Restructuring expenses, net	8,573	2,566
Termination and other costs [Member] | Machine Clothing [Member]
Restructuring and other, net
Restructuring expenses, net	8,352	110
Termination and other costs [Member] | Albany Engineered Composites [Member]
Restructuring and other, net
Restructuring expenses, net	221	2,456
Impairment of plant and equipment [Member]
Restructuring and other, net
Restructuring expenses, net		115
Impairment of plant and equipment [Member] | Machine Clothing [Member]
Restructuring and other, net
Restructuring expenses, net
Impairment of plant and equipment [Member] | Albany Engineered Composites [Member]
Restructuring and other, net
Restructuring expenses, net		$ 115

XML

Restructuring (Schedule of Restructuring Liability) (Details) - Termination and other costs [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Restructuring Reserve [Roll Forward]
Beginning balance	$ 3,326	$ 5,559
Restructuring charges accrued	8,573	2,566
Payments	(2,051)	(2,126)
Currency translation/other	25	17
Ending balance	$ 9,873	$ 6,016

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Other expense, net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Other Income and Expenses [Abstract]
Currency transaction losses	$ 690	$ 101
Bank fees	108	149
Components of net periodic pension and postretirement cost other than service	263	622
Other	391	(46)
Total	$ 1,452	$ 826

XML

Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Tax Disclosure [Line Items]
Tax rates	35.00%
Federal tax rate of deferred tax assets and liabilities	21.00%
Current year and prior year earnings of Company's foreign operations	$ 97,800
Foreign withholding taxes	$ 2,100
Estimated effective tax rate on continuing operations	32.50%	32.60%
Increase decrease in unrecognized tax benefits	$ 600
Foreign tax credits	20,000
Increase decrease in deferred tax liabilities	$ 500
Percentage of AETR increased	2.70%
Estimated foreign-derived intangible income deduction	$ 7,000
Percentage of AETR decreased	1.80%
Earliest Tax Year [Member]
Income Tax Disclosure [Line Items]
Open tax years	2007
Latest Tax Year [Member]
Income Tax Disclosure [Line Items]
Open tax years	2018

XML

Income Taxes (Schedule of Components of Income Tax Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Income tax based on income from continuing operations, at estimated tax rates of 32.5% and 32.6%, respectively	$ 4,899	$ 5,719
Income tax before discrete items	4,899	5,719
Discrete tax expense:
Exercise of US Stock Options	(123)	(21)
Adjustments to prior period tax liabilities	(46)
Provision for/resolution of tax audits and contingencies, net	5	852
Other	(126)
Total income tax expense	$ 4,609	$ 6,550

XML

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Earnings Per Share [Abstract]
Net income attributable to the Company	$ 10,245	$ 10,839
Weighted average number of shares:
Weighted average number of shares used in calculating basic net income per share	32,220	32,128
Effect of dilutive stock-based compensation plans:
Stock options	16	36
Weighted average number of shares used in calculating diluted net income per share	32,236	32,164
Average market price of common stock used for calculation of dilutive shares	$ 63.86	$ 46.69
Net income per share:
Basic	0.32	0.34
Diluted	$ 0.32	$ 0.34

XML

Noncontrolling Interest (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Noncontrolling Interest [Line Items]
Net income of ASC	$ 10,482	$ 10,974
Net income of ASC available for common ownership	10,245	10,839
Net income attributable to noncontrolling interest	237	135
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Noncontrolling interest, beginning of year	3,247
Net income attributable to noncontrolling interest	237	135
Noncontrolling interest	3,150		$ 3,247
Albany Safran Composites, LLC [Member]
Noncontrolling Interest [Line Items]
Net income of ASC	2,681	1,601
Less: Return attributable to the Company's preferred holding	312	254
Net income of ASC available for common ownership	$ 2,369	$ 1,347
Ownership percentage of noncontrolling shareholder	10.00%	10.00%
Net income attributable to noncontrolling interest	$ 237	$ 135
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Noncontrolling interest, beginning of year	3,247	3,767	3,767
Decrease attributable to application of ASC 606	(327)
Net income attributable to noncontrolling interest	237	135
Changes in other comprehensive income attributable to noncontrolling interest	(7)	5
Noncontrolling interest	$ 3,150	$ 3,907	$ 3,247

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Accumulated Other Comprehensive Income (AOCI) (Schedule of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ 569,768
Ending balance	591,994
Translation adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(87,318)	$ (133,298)
Other comprehensive income/(loss) before reclassifications	17,646	10,126
Interest expense related to swaps reclassified to the Statement of Income, net of tax
Pension and postretirement liability adjustments reclassified to Statement of Income, net of tax
Net current period other comprehensive income	17,646	10,126
Ending balance	(69,672)	(123,172)
Pension and postretirement liability adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(50,536)	(51,719)
Other comprehensive income/(loss) before reclassifications	(141)	(193)
Interest expense related to swaps reclassified to the Statement of Income, net of tax
Pension and postretirement liability adjustments reclassified to Statement of Income, net of tax	128	164
Net current period other comprehensive income	(13)	(29)
Ending balance	(50,549)	(51,748)
Derivative valuation adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	1,953	828
Other comprehensive income/(loss) before reclassifications	4,343	258
Interest expense related to swaps reclassified to the Statement of Income, net of tax	137	372
Pension and postretirement liability adjustments reclassified to Statement of Income, net of tax
Net current period other comprehensive income	4,480	630
Ending balance	6,433	1,458
Total Other Comprehensive Income [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(135,901)	(184,189)
Other comprehensive income/(loss) before reclassifications	21,848	10,191
Interest expense related to swaps reclassified to the Statement of Income, net of tax	137	372
Pension and postretirement liability adjustments reclassified to Statement of Income, net of tax	128	164
Net current period other comprehensive income	22,113	10,727
Ending balance	$ (113,788)	$ (173,462)

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Accumulated Other Comprehensive Income (AOCI) (Schedule of Items Reclassified to Statement of Income) (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2018	Mar. 31, 2017
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Expense related to interest rate swaps included in Income		$ 4,670	$ 4,435
Total pretax amount reclassified		15,091	17,524
Income tax effect		4,609	6,550
Effect on net income due to items reclassified from Accumulated Other Comprehensive Income		(10,245)	(10,839)
Prior service credit		(1,114)	(1,113)
Net actuarial loss		1,297	1,347
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivative valuation adjustment [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Expense related to interest rate swaps included in Income	[1]	180	600
Income tax effect		(43)	(228)
Effect on net income due to items reclassified from Accumulated Other Comprehensive Income		137	372
Reclassification out of Accumulated Other Comprehensive Income [Member] | Pension and postretirement liability adjustments [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total pretax amount reclassified	[2]	183	234
Income tax effect		(55)	(70)
Effect on net income due to items reclassified from Accumulated Other Comprehensive Income		$ 128	$ 164

[1] Included in Interest expense are payments related to the interest rate swap agreements and amortization of swap buyouts (see Note 15).

[2] These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 4).

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Accounts Receivable (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Receivables [Abstract]
Trade and other accounts receivable	$ 237,767	$ 152,375
Bank promissory notes	18,865	20,255
Revenue in excess of progress billings		37,964
Allowance for doubtful accounts	(8,094)	(7,919)
Total accounts receivable	248,538	202,675
Contract receivable	$ 35,338	$ 32,811
Interest rate	2.00%
Increase in accounts receivables	$ 10,200

XML

Contract Assets and Liabilities (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Contract assets	$ 42,895
Increase decrease in contract assets	2,116
Increase decrease in contract liabilities	2,300
Revenue recognized	1,000
Accounts Receivable [Member]
Contract assets	$ 44,900

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Contract Assets and Liabilities (Schedule of Contract Assets and Contract Liabilities) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Contract Assets And Liabilities
Contract assets	$ 42,895
Contract liabilities	$ 3,030

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Inventories (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Raw materials	$ 42,411	$ 42,215
Work in process	44,184	65,448
Finished goods	13,439	28,856
Total inventories	100,034	$ 136,519
Decrease in inventories of adoption of ASC 606	$ 47,100

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Goodwill and Other Intangible Assets (Schedule of intangible assets and goodwill) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Amortized intangible assets:
Gross carrying value	$ 66,724	$ 66,724
Accumulated amortization	(12,843)	(11,283)
Net carrying amount	53,881	55,441
Goodwill
Gross carrying value	168,311	166,796
Accumulated amortization
Net carrying amount	168,311	166,796
AEC Trade Names [Member]
Amortized intangible assets:
Gross carrying value	140	140
Accumulated amortization	(126)	(125)
Net carrying amount	$ 14	$ 15
Goodwill
Amortization life in years	15 years	15 years
AEC Technology [Member]
Amortized intangible assets:
Gross carrying value	$ 370	$ 370
Accumulated amortization	(296)	(290)
Net carrying amount	$ 74	$ 80
Goodwill
Amortization life in years	15 years	15 years
Customer Relationships [Member]
Amortized intangible assets:
Gross carrying value	$ 48,421	$ 48,421
Accumulated amortization	(6,462)	(5,654)
Net carrying amount	$ 41,959	$ 42,767
Goodwill
Amortization life in years	15 years	15 years
Customer Contracts [Member]
Amortized intangible assets:
Gross carrying value	$ 17,471	$ 17,471
Accumulated amortization	(5,830)	(5,102)
Net carrying amount	$ 11,641	$ 12,369
Goodwill
Amortization life in years	6 years	6 years
Other Intangible [Member]
Amortized intangible assets:
Gross carrying value	$ 322	$ 322
Accumulated amortization	(129)	(112)
Net carrying amount	$ 193	$ 210
Goodwill
Amortization life in years	5 years	5 years
MC Goodwill [Member]
Goodwill
Gross carrying value	$ 72,581	$ 71,066
Accumulated amortization
Net carrying amount	72,581	71,066
AEC Goodwill [Member]
Goodwill
Gross carrying value	95,730	95,730
Accumulated amortization
Net carrying amount	$ 95,730	$ 95,730

XML

Goodwill and Other Intangible Assets (Schedule of changes in intangible assets and goodwill) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($)
Amortized intangible assets:
Beginning Balance	$ 55,441
Amortization	(1,560)
Currency Translation
Ending Balance	53,881
Goodwill
Beginning Balance	166,796
Amortization
Currency Translation	1,515
Ending Balance	168,311
AEC Trade Names [Member]
Amortized intangible assets:
Beginning Balance	15
Amortization	(1)
Currency Translation
Ending Balance	14
AEC Technology [Member]
Amortized intangible assets:
Beginning Balance	80
Amortization	(6)
Currency Translation
Ending Balance	74
Customer Relationships [Member]
Amortized intangible assets:
Beginning Balance	42,767
Amortization	(808)
Currency Translation
Ending Balance	41,959
Customer Contracts [Member]
Amortized intangible assets:
Beginning Balance	12,369
Amortization	(728)
Currency Translation
Ending Balance	11,641
Other Intangible [Member]
Amortized intangible assets:
Beginning Balance	210
Amortization	(17)
Currency Translation
Ending Balance	193
MC Goodwill [Member]
Goodwill
Beginning Balance	71,066
Amortization
Currency Translation	1,515
Ending Balance	72,581
AEC Goodwill [Member]
Goodwill
Beginning Balance	95,730
Amortization
Currency Translation
Ending Balance	$ 95,730

XML

Goodwill and Other Intangible Assets (Schedule of Estimated Amortization Expense) (Details) $ in Thousands	Mar. 31, 2018 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2018	$ 6,234
2019	6,234
2020	6,234
2021	6,163
2022	$ 3,949

XML

Financial Instruments (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Dec. 18, 2017	Nov. 28, 2017	Nov. 27, 2017	Nov. 07, 2017	May 06, 2016	Apr. 08, 2016
Debt Instrument [Line Items]
Maximum leverage ratio allowed	3.75
Minimum interest coverage ratio required	3.00
Leverage ratio	2.55
Interest coverage ratio	9.50
Credit Agreement [Member]
Debt Instrument [Line Items]
Interest rate	3.49%	3.40%
Amount of credit facility						$ 685,000		$ 550,000
Amount of credit facility outstanding	$ 506,000
Additional amount that can be borrowed on facility	$ 179,000
LIBOR spread	1.50%
Credit Agreement [Member] | Interest Rate Swap [Member]
Debt Instrument [Line Items]
Borrowings, revolving credit facility					$ 300,000		$ 120,000
Notional amount			$ 350,000	$ 350,000
Fixed interest rate in swap			3.61%	2.11%
LIBOR rate			1.79%
Amount paid to terminate agreement							$ 5,200
Amount received from terminate agreement					$ 6,300
Credit Agreement [Member] | Minimum [Member]
Debt Instrument [Line Items]
LIBOR spread	1.25%
Credit Agreement [Member] | Maximum [Member]
Debt Instrument [Line Items]
LIBOR spread	1.75%
Capital Lease Obligations [Member]
Debt Instrument [Line Items]
Interest rate	5.00%
Maturity date	Dec. 31, 2022

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Financial Instruments (Schedule of Long-Term Debt) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Long-term debt	$ 520,477	$ 515,919
Less: current portion	(1,821)	(1,799)
Long-term debt, net of current portion	518,656	514,120
Credit Agreement [Member]
Debt Instrument [Line Items]
Long-term debt	$ 506,000	$ 501,000
Interest rate	3.49%	3.40%
Maturity date range, end	Dec. 31, 2022
Capital Lease Obligations [Member]
Debt Instrument [Line Items]
Long-term debt	$ 14,477	$ 14,919
Interest rate	5.00%
Maturity date range, end	Dec. 31, 2022

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Financial Instruments (Schedule of future minimum annual lease payments) (Details) $ in Thousands	Mar. 31, 2018 USD ($)
Long-term Debt and Capital Lease Obligations [Abstract]
2018	$ 1,854
2019	2,473
2020	2,520
2021	2,520
2022	7,373
Total minimum lease payments	16,740
Less: Amount representing interest	(2,263)
Present value of minimum lease payments	$ 14,477

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Fair-Value Measurements (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Derivative [Line Items]
Interest expense (income)	$ 4,288	$ 4,328
Interest Rate Current Swap [Member]
Derivative [Line Items]
Interest expense (income)	500	400
Interest Rate Swap Buyouts [Member]
Derivative [Line Items]
Interest expense (income)	$ (200)	$ 200

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Fair-Value Measurements (Schedule of Fair Value of Financial Assets and Liabilities) (Details) - USD ($) $ in Thousands		Mar. 31, 2018		Dec. 31, 2017
Derivative asset:
Common stock of foreign public company, original cost		$ 500		$ 500
Interest Rate Current Swap [Member]
Derivative asset:
Liability for fixed rate leg		39,200		34,900
Receivable for floating rate leg		32,700		34,600
Quoted Prices in Active Markets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member]
Assets:
Cash equivalents		14,806		13,601
Foreign currency options		75
Common stock of unaffiliated foreign public company	[1]	1,022		999
Liabilities:
Interest rate swaps
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member]
Assets:
Cash equivalents
Foreign currency options
Common stock of unaffiliated foreign public company
Liabilities:
Interest rate swaps		$ 6,554	[2]	$ 313	[3]

[1] Original cost basis $0.5 million

[2] Net of $34.9 million receivable floating leg and $34.6 million liability fixed leg

[3] Net of $39.2 million receivable floating leg and $32.7 million liability fixed leg

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Fair-Value Measurements (Schedule of (Losses)/Gains on Changes in Fair Value of Derivative Instruments) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Derivatives not designated as hedging instruments Foreign currency options (losses)/gains	$ (37)	$ (54)

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Contingencies (Narrative) (Details) - Asbestos Litigation [Member] $ in Thousands	Mar. 31, 2018 USD ($) claims
Loss Contingencies [Line Items]
Total resolved claims, by means of settlement or dismissal | claims	37,690
Total cost of resolution | $	$ 10,300
Resolution costs paid by insurance carrier	100.00%
Confirmed insurance coverage | $	$ 140,000
Brandon Drying Fabrics, Inc. [Member]
Loss Contingencies [Line Items]
Total resolved claims, by means of settlement or dismissal | claims	7,707
Resolution costs paid by insurance carrier	100.00%

XML

Contingencies (Schedule of Changes in Claims) (Details) - Asbestos Litigation [Member] $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018 USD ($) claims	Dec. 31, 2017 USD ($) claims	Dec. 31, 2016 USD ($) claims	Dec. 31, 2015 USD ($) claims	Dec. 31, 2014 USD ($) claims	Dec. 31, 2013 USD ($) claims
Loss Contingencies [Line Items]
Opening Number of Claims	3,730	3,745	3,791	3,821	4,299	4,463
Claims Dismissed, Settled, or Resolved	96	105	148	116	625	230
New Claims	28	90	102	86	147	66
Closing Number of Claims	3,662	3,730	3,745	3,791	3,821	4,299
Amounts Paid (thousands) to Settle or Resolve ($) | $	$ 93	$ 55	$ 758	$ 164	$ 437	$ 78

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Changes in Shareholders' Equity (Narrative) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($)
ASC 606 [Member]
Increase decrease in retained earnings	$ 5,600
Increase decrease in non controlling interest	300
ASU 2016-16 [Member]
Increase decrease in retained earnings	$ 500

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Changes in Shareholders' Equity (Schedule of Activity in Shareholders' Equity) (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2018	Mar. 31, 2017
Balance		$ 573,015
Adoption of accounting standards	[1],[2]	(5,412)
Net income		10,482	$ 10,974
Compensation and benefits paid or payable in shares		289
Options exercised		147
Dividends declared		(5,483)
Cumulative translation adjustments		17,639
Pension and postretirement liability adjustments		(13)
Derivative valuation adjustment		4,480
Balance		595,144
Common Stock [Member]
Balance		40
Adoption of accounting standards	[1],[2]
Net income
Compensation and benefits paid or payable in shares
Options exercised
Dividends declared
Cumulative translation adjustments
Pension and postretirement liability adjustments
Derivative valuation adjustment
Balance		40
Additional Paid-in Capital [Member]
Balance		428,423
Adoption of accounting standards	[1],[2]
Net income
Compensation and benefits paid or payable in shares		289
Options exercised		147
Dividends declared
Cumulative translation adjustments
Pension and postretirement liability adjustments
Derivative valuation adjustment
Balance		428,859
Retained Earnings [Member]
Balance		534,082
Adoption of accounting standards	[1],[2]	(5,085)
Net income		10,245
Compensation and benefits paid or payable in shares
Options exercised
Dividends declared		(5,483)
Cumulative translation adjustments
Pension and postretirement liability adjustments
Derivative valuation adjustment
Balance		533,759
Total Other Comprehensive Income [Member]
Balance		(135,901)
Adoption of accounting standards	[1],[2]
Net income
Compensation and benefits paid or payable in shares
Options exercised
Dividends declared
Cumulative translation adjustments		17,646
Pension and postretirement liability adjustments		(13)
Derivative valuation adjustment		4,480
Balance		(113,788)
Treasury Stock [Member]
Balance		(256,876)
Adoption of accounting standards	[1],[2]
Net income
Compensation and benefits paid or payable in shares
Options exercised
Dividends declared
Cumulative translation adjustments
Pension and postretirement liability adjustments
Derivative valuation adjustment
Balance		(256,876)
Noncontrolling Interest [Member]
Balance		3,247
Adoption of accounting standards	[1],[2]	(327)
Net income		237
Compensation and benefits paid or payable in shares
Options exercised
Dividends declared
Cumulative translation adjustments		(7)
Pension and postretirement liability adjustments
Derivative valuation adjustment
Balance		$ 3,150

[1] As described in Note 2, the Company adopted ASC 606 effective January 1, 2018, which resulted in a decrease to Retained earnings of $5.6 million and a $0.3 million decrease to Noncontrolling interest.

[2] As described in Note 7, the Company adopted ASU 2016-16 effective January 1, 2018, which resulted in a $0.5 increase to Retained earnings.