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Reportable Segments | 6 Months Ended
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Jun. 30, 2017
Segment Reporting [Abstract] |
Reportable Segments | 3. Reportable Segments The following tables show data by reportable segment, reconciled to consolidated totals included in the financial statements:
| Three months ended June 30, | Six months ended June 30,
(in thousands) | 2017 | 2016 | 2017 | 2016
Net sales |  |  |  |  |  |  |  |
Machine Clothing | $146,572 |  | $148,934 |  | $289,399 |  | $294,197 |
Albany Engineered Composites (AEC) | 68,999 |  | 54,256 |  | 125,449 |  | 81,324 |
Consolidated total | $215,571 |  | $203,190 |  | $414,848 |  | $375,521 |
Operating income/(loss) |  |  |  |  |  |  |  |
Machine Clothing | 38,418 |  | 35,405 |  | 76,679 |  | 72,543 |
Albany Engineered Composites | (17,828 | ) | (5,848 | ) | (22,942 | ) | (9,553 | )
Corporate expenses | (11,362 | ) | (11,700 | ) | (22,453 | ) | (22,864 | )
Operating income | $9,228 |  | $17,857 |  | $31,284 |  | $40,126 |
Reconciling items: |  |  |  |  |  |  |  |
Interest income | (340 | ) | (547 | ) | (447 | ) | (673 | )
Interest expense | 4,625 |  | 4,238 |  | 9,060 |  | 6,602 |
Other expense/(income), net | 1,931 |  | (2,017 | ) | 2,135 |  | (2,345 | )
Income before income taxes | $3,012 |  | $16,183 |  | $20,536 |  | $36,542 |
There were no material changes in the total assets of the reportable segments in the first six months of 2017. In the second quarter of 2017, the Company recorded a charge to Cost of goods sold of approximately $15.8 million associated with revisions in the estimated profitability of two AEC contracts. The charge was principally due to second-quarter 2017 downward revisions of estimated customer demand for the components manufactured by AEC related to the BR 725 and A380 programs. The charge included a $4.0 million write-off of program inventory costs, and a reserve for future losses of $11.8 million, which is included in Accrued liabilities in the Consolidated Balance Sheets. Total reserves for future contract losses were $11.8 million as of June 30, 2017, and $0.1 million as of December 31, 2016. The Albany Engineered Composites (AEC) segment, including Albany Safran Composites, LLC (ASC), in which our customer SAFRAN Group (Safran) owns a 10 percent noncontrolling interest, provides highly engineered, advanced composite structures to customers in the aerospace and defense industries. AEC’s largest program relates to CFM International’s LEAP engine. Under this program, AEC through ASC, is the exclusive supplier of advanced composite fan blades and cases under a long-term supply contract. The manufacturing spaces used for the production of parts under the long-term supply agreement are owned by Safran, and leased to the Company at either a market rent or a minimal cost. All lease expense is reimbursable by Safran to the Company due to the cost-plus nature of the supply agreement. AEC net sales to Safran in 2017 were $25.6 million in the first quarter and $30.1 million in the second quarter. AEC net sales to Safran in 2016 were $17.1 million in the first quarter and $18.5 million in the second quarter. The total of invoiced receivables, unbilled receivables and contract receivables due from Safran amounted to $55.5 million and $37.1 million as of June 30, 2017 and December 31, 2016, respectively. The table below presents restructuring costs by reportable segment (also see Note 5):
| Three months ended June 30, | Six months ended June 30,
(in thousands) | 2017 | 2016 | 2017 | 2016
Restructuring expenses, net |  |  |  |  |  |  |  |
Machine Clothing | $805 |  | $5,434 |  | $916 |  | $6,132 |
Albany Engineered Composites | 1,231 |  | 1,147 |  | 3,801 |  | 1,147 |
Corporate expenses | - |  | 67 |  | - |  | 48 |
Consolidated total | $2,036 |  | $6,648 |  | $4,717 |  | $7,327 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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