Accounts Receivable

9 Months Ended

Sep. 30, 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 $7.7 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 September 30, 2018 and December 31, 2017, Accounts receivable consisted of the following:

(in thousands)	September 30, 2018	December 31, 2017
Trade and other accounts receivable	$241,748	$152,375
Bank promissory notes	18,390	20,255
Revenue in excess of progress billings	-	37,964
Allowance for doubtful accounts	(7,674)	(7,919)
Total accounts receivable	$252,464	$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 September 30, 2018 and December 31, 2017, Noncurrent receivables consisted of the following:

(in thousands)	September 30, 2018	December 31, 2017
Noncurrent receivables	$41,657	$32,811