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Business Acquisition | 6 Months Ended
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Jun. 30, 2016
Business Combinations [Abstract] |
Business Acquisition | 2. Business Acquisition On April 8, 2016, the Company acquired the outstanding shares of Harris Corporation’s composite aerostructures business for cash of $187 million, plus the assumption of certain liabilities. The Company funded the cash payable at closing by utilizing proceeds from a $550 million, unsecured credit facility agreement that was completed April 8, 2016 (see Note 14). The seller has provided representations, warranties and indemnities customary for acquisition transactions, including indemnities for certain customer claims identified before closing. The acquired entity has been renamed Albany Aerostructures Composites LLC (“AAC”), and is part of the Albany Engineered Composites (“AEC”) segment. The following table summarizes the provisional allocation of the purchase price of AAC to the fair value of the assets and liabilities acquired:
(in thousands) |  | April 8 , 2016
Assets acquired |  |  |
Accounts receivable |  | $16,264 |
Inventories |  | 29,739 |
Prepaid expenses and other current assets |  | 402 |
Property, plant and equipment |  | 85,802 |
Intangibles |  | 59,360 |
Goodwill |  | 31,327 |
Total assets acquired |  | $222,894 |
Liabilities assumed |  |  |
Accounts payable |  | $8,745 |
Accrued liabilities |  | 2,364 |
Capital lease obligation |  | 23,815 |
Other noncurrent liabilities |  | 970 |
Total liabilities assumed |  | $35,894 |
Net assets acquired |  | $187,000 |
Whereas the acquisition occurred during this quarterly reporting period, the Company is continuing to perform procedures to verify the value of all assets and liabilities acquired, and the useful lives of amortizable assets. Accordingly, adjustments to the values in the above table may be required in future periods. The Company has attributed the goodwill of $31.3 million which is assigned to the AEC segment. Management believes that the acquisition broadens and deepens AEC’s products, experience and manufacturing capabilities, and significantly increases opportunities for future growth. The goodwill is expected to be non-deductible for tax purposes. The following tables presents operational results of AAC that are included in the Consolidated Statements of Income:
(in thousands, except per share amounts) |  | April 8 to June 30, 2016
Net sales |  | $25,636 |
Operating income |  | 1,709 |
Income before income taxes |  | 1,266 |
Net Income attributable to the Company |  | 760 |
Earnings per share: |  |  |
Basic |  | $0.02 |
Diluted |  | $0.02 |
The Consolidated Statements of Income reflect operational activity of AAC for only the period subsequent to the closing, which affects comparability of results. The following table shows total Company pro forma statements of operations for the three- and six-month periods ended June 30, 2016 and 2015, as if the acquisition had occurred on January 1, 2015. This pro forma information does not purport to represent what the Company’s actual results would have been if the acquisitions had occurred as of the date indicated, or what such results would be for any future periods.
|  | Unaudited - Pro forma
|  | Three months ended June 30, |  | Six months ended June 30,
(in thousands, except per share amounts) |  | 2016 |  | 2015 |  | 2016 |  | 2015
Combined Net sales |  | $204,371 |  |  | $192,508 |  |  | $397,706 |  |  | $392,988 |
Combined Income/(loss) before income taxes |  | $15,765 |  |  | ($1,798 | ) |  | $38,915 |  |  | $19,357 |
Pro forma adjustments: |  |  |  |  |  |  |  |  |  |  |  |
Acquisition expenses |  | 3,771 |  |  | - |  |  | 5,367 |  |  | - |
Purchase accounting depreciation and amortization expense |  | (119 | ) |  | (1,541 | ) |  | (1,660 | ) |  | (3,081 | )
Interest expense |  | (99 | ) |  | (1,283 | ) |  | (1,382 | ) |  | (2,567 | )
Income/(loss) before income taxes |  | 19,318 |  |  | (4,622 | ) |  | 41,240 |  |  | 13,709 |
Net Income/(loss) attributable to the Company |  | $12,289 |  |  | ($3,380 | ) |  | $26,748 |  |  | $7,462 |
Pro forma earnings/(loss) per share attributable to Company shareholders:
Basic |  | $0.38 |  |  | ($0.11 | ) |  | $0.83 |  |  | $0.23 |
Diluted |  | $0.38 |  |  | ($0.11 | ) |  | $0.83 |  |  | $0.23 |

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1497-128463 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1490-128463 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1392-128463 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7008-128479 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1486-128463 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6927-128479 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=73530397&loc=d3e4845-128472 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1524-128463 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7000-128479 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=73530397&loc=d3e4922-128472 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=73530397&loc=d3e4934-128472 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=73530397&loc=d3e4926-128472 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 4A -URI http://asc.fasb.org/extlink&oid=73530397&loc=SL65897772-128472 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1383-128463 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6996-128479 + Details
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