Leases (Tables)

9 Months Ended

Sep. 30, 2019

Lessee Disclosure [Abstract]

Schedule of Cumulative Effects of Adoption of ASC 842

The table below presents the cumulative effect of changes made to our December 31, 2018 Balance Sheet as a result of the adoption of ASC 842, Leases:

ALBANY INTERNATIONAL CORP.

CONSOLIDATED BALANCE SHEET

(in thousands, except share data)

(unaudited)

	As previously reported at December 31, 2018	Adjustments Increase/ (decrease)	Opening balance, as adjusted, January 1, 2019
ASSETS
Cash and cash equivalents	$197,755	$—	$197,755
Accounts receivable, net	223,176	—	223,176
Contract assets	57,447	—	57,447
Inventories	85,904	—	85,904
Income taxes prepaid and receivable	7,473	—	7,473
Prepaid expenses and other current assets	21,294	(370)	20,924
Total current assets	$593,049	$(370)	$592,679
Property, plant and equipment, net	462,055	(6,144)	455,911
Intangibles, net	49,206	—	49,206
Goodwill	164,382	—	164,382
Deferred income taxes	62,622	(20)	62,602
Noncurrent receivables	45,061	—	45,061
Other assets	41,617	13,615	55,232
Total assets	$1,417,992	$7,081	$1,425,073
LIABILITIES AND SHAREHOLDERS' EQUITY
Notes and loans payable	$—	$—	$—
Accounts payable	52,246	—	52,246
Accrued liabilities	129,030	4,964	133,994
Current maturities of long-term debt	1,224	(1,206)	18
Income taxes payable	6,806	—	6,806
Total current liabilities	189,306	3,758	193,064
Long-term debt	523,707	(24,680)	499,027
Other noncurrent liabilities	88,277	27,968	116,245
Deferred taxes and other liabilities	8,422	—	8,422
Total liabilities	809,712	7,046	816,758
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	35	589,680
Accumulated items of other comprehensive income:
Translation adjustments	(115,976)	—	(115,976)
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	35	605,284
Noncontrolling interest	3,031	—	3,031
Total equity	608,280	35	608,315
Total liabilities and shareholders' equity	$1,417,992	$7,081	$1,425,073

Schedule of Components of Lease Expense

The components of lease expense were as follows:

(in thousands)	For the three months ended September 30, 2019	For the nine months ended September 30, 2019
Finance lease
Amortization of right-of-use asset	$249	$748
Interest on lease liabilities	388	1,181
Operating lease
Fixed lease cost	991	3,416
Variable lease cost	59	263
Short-term lease cost	350	1,022
Total lease expense	$2,037	$6,630

Schedule of Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases was as follows:

(in thousands)	For the three months ended September 30, 2019	For the nine months ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$974	$3,350
Operating cash flows from finance leases	388	1,181
Financing cash flows from finance leases	298	876
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$988	$3,990
Finance leases	—	—

Schedule of Supplemental Balance Sheet Information Related to Leases

Supplemental balance sheet information related to leases was as follows:

(in thousands)	September 30, 2019
Operating leases
Right of use assets included in Other assets	$13,838
Lease liabilities included in
Accrued liabilities	$3,780
Other noncurrent liabilities	10,131
Total operating lease liabilities	$13,911
Finance leases
Right of use assets included in Property, plant and equipment, net	$10,223
Lease liabilities included in
Accrued liabilities	$1,290
Other noncurrent liabilities	17,900
Total finance lease liabilities	$19,190

Schedule of Additional Information Related to Leases

Additional information for leases existing at September 30, 2019 was as follows:

Weighted average remaining lease term
Operating leases	4 years
Finance leases	10 years
Weighted average discount rate
Operating leases	5.7%
Finance leases	8.0%

Schedule of Maturities of Lease Liabilities

Maturities of lease liabilities as of September 30, 2019 were as follows:

(in thousands)	Operating leases	Finance lease
Year ending December 31,
2019	$1,316	$686
2020	4,603	2,790
2021	3,497	2,790
2022	2,471	2,838
2023	1,495	3,004
Thereafter	3,054	15,512
Total lease payments	16,436	27,620
Less imputed interest	(2,525)	(8,430)
Total	$13,911	$ 19,190

Schedule of Maturities of SLC Finance Lease Liability

As of December 31, 2018, the following schedule presents future minimum annual payments under the SLC lease finance obligation, and the present value of the minimum payments:

	(in thousands)
Year ending December 31,
2019	$2,451
2020	2,974
2021	2,990
2022	3,054
2023	3,277
Thereafter	18,930
Total minimum payments	33,676
Less imputed interest	(7,790)
Total	$ 25,886