Revenue Recognition (Tables)

12 Months Ended

Dec. 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 and per share data)

	As previously reported at December 31, 2017		Adjustments		Opening balance as adjusted January 1, 2018
Assets
Current assets:
Cash and cash equivalents	$183,727		$-		$183,727
Accounts receivable, net	202,675		8,486		211,161
Contract assets	-		47,415		47,415
Inventories	136,519		(48,583	)	87,936
Income taxes prepaid and receivable	6,266		-		6,266
Prepaid expenses and other current assets	14,520		-		14,520
Total current assets	543,707		7,318		551,025
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		2,889		71,537
Noncurrent receivable	32,811		-		32,811
Other assets	39,493		1,119		40,612
Total assets	$1,361,198		$11,326		$1,372,524
Liabilities
Current liabilities:
Notes and loans payable	$262		$-		$262
Accounts payable	44,899		-		44,899
Accrued liabilities	105,914		17,217		123,131
Current maturities of long-term debt	1,799		-		1,799
Income taxes payable	8,643		-		8,643
Total current liabilities	161,517		17,217		178,734
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		17,269		805,452
Commitments and Contingencies
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	37		-		37
Class B Common Stock, par value $.001 per share; authorized 25,000,000 shares; issued and outstanding 3,233,998 in 2017	3		-		3
Additional paid-in capital	428,423		-		428,423
Retained earnings	534,082		(5,616	)	528,466
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	(256,876	)	-		(256,876	)
Total Company shareholders’ equity	569,768		(5,616	)	564,152
Noncontrolling interest	3,247		(327	)	2,920
Total Equity	573,015		(5,943	)	567,072
Total liabilities and shareholders’ equity	$1,361,198		$11,326		$1,372,524

Schedule of Summary of Composition of Each Business Segment

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

Segment	Reporting 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 Queretaro, Mexico
	Airframe and engine  Components (Other AEC)	Composite airframe and engine components for military and commercial aircraft	Salt Lake City, UT Boerne, TX Queretaro, Mexico

Schedule of Disaggregate Revenue for Each Business Segment

The following table presents disaggregated revenue for each reporting unit by timing of revenue recognition:

		For the Year Ended
		December 31, 2018
(in thousands)	Point in Time Revenue Recognition	Over Time Revenue Recognition	Total
Machine Clothing	$608,658	$3,200	$611,858
Albany Engineered Composites
ASC	-	182,699	182,699
Other AEC	21,614	166,308	187,922
Total Albany Engineered Composites	21,614	349,007	370,621
Total revenue	$630,272	$352,207	$982,479

Schedule of Disaggregate MC Segment Revenue by Significant Product or Service

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

	For the Year Ended
(in thousands)	December 31, 2018
Americas PMC	$303,768
Eurasia PMC	227,493
Engineered Fabrics	80,597
Total Machine Clothing Net sales	$611,858

Schedule of Consolidated Statement of Income

The following tables show the balances as reported for the year ended December 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)

	As reported for Year Ended December 31, 2018		Adjustments to reverse effects of ASC 606		As adjusted for Year Ended December 31, 2018 to exclude adoption of ASC 606
Net sales	$982,479		$7,120		$989,599
Cost of goods sold	632,730		10,433		643,163
Gross profit	349,749		(3,313	)	346,436
Selling, general and administrative expenses	156,189		12		156,201
Technical and research expenses	40,582		-		40,582
Restructuring expenses, net	15,570		-		15,570
Operating income	137,408		(3,325	)	134,083
Interest income	(2,118	)	-		(2,118	)
Interest expense	20,242		-		20,242
Other expense, net	4,037		-		4,037
Income before income taxes	115,247		(3,325	)	111,922
Income tax expense	32,228		(877	)	31,351
Net income	83,019		(2,448	)	80,571
Net income/(loss) attributable to the noncontrolling interest	128		(129	)	(1	)
Net income attributable to the Company	$82,891		$(2,319	)	$80,572
Earnings per share attributable to Company shareholders - Basic	$2.57		$(0.07	)	$2.50
Earnings per share attributable to Company shareholders - Diluted	$2.57		$(0.07	)	$2.50

Schedule of Consolidated Statement of Comprehensive Income (Loss)

Albany International Corp.
Consolidated Statement of Comprehensive Income
(in thousands)

	As reported for Year Ended December 31, 2018		Adjustments to reverse effects of ASC 606		As adjusted for Year Ended December 31, 2018 to exclude adoption of ASC 606
Net income	$83,019		$(2,448	)	$80,571
Other comprehensive income/(loss), before tax:
Foreign currency translation adjustments	(27,383	)	575		(26,808	)
Pension/postretirement settlements and curtailments	1,494		-		1,494
Pension/postretirement plan remeasurement	851		-		851
Amortization of pension liability adjustments:
Prior service credit	(4,454	)	-		(4,454	)
Net actuarial loss	5,175		-		5,175
Payments related to interest rate swaps included in earnings	(146	)	-		(146	)
Derivative valuation adjustment	3,832		-		3,832
Income taxes related to items of other comprehensive income/(loss):
Pension/postretirement settlements and curtailments	(348	)	-		(348	)
Pension/postretirement plan remeasurement	(408	)	-		(408	)
Amortization of pension liability adjustments	(158	)	-		(158	)
Payments related to interest rate swaps included in earnings	37		-		37
Derivative valuation adjustment	(979	)	-		(979	)
Comprehensive income	60,532		(1,873	)	58,659
Comprehensive income/(loss) attributable to the noncontrolling interest	111		(129	)	(18	)
Comprehensive income attributable to the Company	$60,421		$(1,744	)	$58,677

Schedule of Consolidated Balance Sheets

Albany International Corp.
Consolidated Balance Sheet
(in thousands, except share and per share data)

	As reported December 31, 2018		Adjustments to reverse effects of ASC 606		As adjusted for December 31, 2018 to exclude adoption of ASC 606
Assets
Current assets:
Cash and cash equivalents	$197,755		$-		$197,755
Accounts receivable, net	223,176		5,578		228,754
Contract assets	57,447		(57,447	)	-
Inventories	85,904		42,701		128,605
Income taxes prepaid and receivable	7,473		-		7,473
Prepaid expenses and other current assets	21,294		-		21,294
Total current assets	593,049		(9,168	)	583,881
Property, plant and equipment, net	462,055		-		462,055
Intangibles, net	49,206		-		49,206
Goodwill	164,382		-		164,382
Deferred income taxes	62,622		(2,012	)	60,610
Noncurrent receivables	45,061		-		45,061
Other assets	41,617		(1,256	)	40,361
Total assets	$1,417,992		$(12,436	)	$1,405,556
Liabilities
Current liabilities:
Notes and loans payable	$-		$-		$-
Accounts payable	52,246		-		52,246
Accrued liabilities	129,030		(16,454	)	112,576
Current maturities of long-term debt	1,224		-		1,224
Income taxes payable	6,806		-		6,806
Total current liabilities	189,306		(16,454	)	172,852
Long-term debt	523,707		-		523,707
Other noncurrent liabilities	88,277		-		88,277
Deferred taxes and other liabilities	8,422		(52	)	8,370
Total liabilities	809,712		(16,506	)	793,206
Commitments and Contingencies
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 37,450,329 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	430,555		-		430,555
Retained earnings	589,645		3,297		592,942
Accumulated items of other comprehensive income:
Translation adjustments	(115,976	)	575		(115,401	)
Pension and postretirement liability adjustments	(47,109	)	-		(47,109	)
Derivative valuation adjustment	4,697		-		4,697
Treasury stock (Class A), at cost; 8,418,620 shares in 2018 and 8,431,335 shares in 2017	(256,603	)	-		(256,603	)
Total Company shareholders’ equity	605,249		3,872		609,121
Noncontrolling interest	3,031		198		3,229
Total Equity	608,280		4,070		612,350
Total liabilities and shareholders’ equity	$1,417,992		$(12,436	)	$1,405,556

Schedule of Consolidated Statement of Cash Flows

	As reported for Year Ended December 31, 2018		Adjustments to reverse effects of ASC 606		As adjusted for Year Ended December 31, 2018 to exclude adoption of ASC 606
Operating Activities
Net income	$83,019		$(2,448	)	$80,571
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	68,800		-		68,800
Amortization	10,236		-		10,236
Change in other noncurrent liabilities	(5,479	)	-		(5,479	)
Change in deferred taxes and other liabilities	8,972		(877	)	8,095
Provision for write-off of property, plant and equipment	3,707		-		3,707
Non-cash interest expense	459		-		459
Write-off of pension liability adjustment due to settlement/curtailment	1,494		-		1,494
Compensation and benefits paid or payable in Class A Common Stock	2,203		-		2,203
Changes in operating assets and liabilities that provided/(used) cash, net of impact of business acquisition:
Accounts receivable	(19,139	)	(17,387	)	(36,526	)
Contract assets	(10,267	)	10,267		-
Inventories	(968	)	10,433		9,465
Prepaid expenses and other current assets	(5,815	)	-		(5,815	)
Income taxes prepaid and receivable	(1,402	)	-		(1,402	)
Noncurrent receivables	(12,249	)	-		(12,249	)
Accounts payable	9,340		-		9,340
Accrued liabilities	8,209		12		8,221
Income taxes payable	(824	)	-		(824	)
Other, net	(7,811	)	-		(7,811	)
Net cash provided by operating activities	132,485		-		132,485
Net cash used in investing activities	(82,886	)	-		(82,886	)
Net cash used in financing activities	(27,258	)	-		(27,258	)
Effect of exchange rate changes on cash and cash equivalents	(8,313	)	-		(8,313	)
Increase in cash and cash equivalents	14,028		-		14,028
Cash and cash equivalents at beginning of year	183,727		-		183,727
Cash and cash equivalents at end of year	$197,755		$-		$197,755