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