Restructuring

6 Months Ended

Jun. 30, 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 six months of 2018, we recorded restructuring expense of $8.6 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 $9.7 million of restructuring charges related to this action. The Company continues 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 for the first six months of 2018 and 2017 principally relate to work force reductions in Salt Lake City, Utah and Rochester, New Hampshire. To date, we have recorded $5.8 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 June 30,		Six months ended June 30,
(in thousands)	2018	2017	2018	2017
Machine Clothing	$1,800	$805	$10,152	$916
Albany Engineered Composites	558	1,231	779	3,801
Corporate expenses	231	-	231	-
Total	$2,589	$2,036	$11,162	$4,717

Six months ended June 30, 2018	Total restructuring costs incurred	Termination and other costs	Impairment of  assets
(in thousands)
Machine Clothing	$10,152	$10,152	$-
Albany Engineered Composites	779	779	-
Corporate expenses	231	231	-
Total	$11,162	$11,162	$-

Six months ended June 30, 2017	Total restructuring costs incurred	Termination and other costs	Impairment of assets
(in thousands)
Machine Clothing	$916	$916	$-
Albany Engineered Composites	3,801	3,356	445
Corporate expenses	-	-	-
Total	$4,717	$4,272	$445

We expect that approximately $8.4 million of Accrued liabilities for restructuring at June 30, 2018 will be paid within one year and approximately $0.4 million will be paid in the following year. The table below presents the year-to-date changes in restructuring liabilities for 2018 and 2017, all of which related to termination costs:

	December 31,	Restructuring		Currency	June 30,
(in thousands)	2017	charges accrued	Payments	translation /other	2018
Total termination and other costs	$3,326	$11,162	($5,323)	($378)	$8,787

	December 31,	Restructuring		Currency	June 30,
(in thousands)	2016	charges accrued	Payments	translation /other	2017
Total termination and other costs	$5,559	$4,272	($4,513)	$65	$5,383