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Restructuring | 9 Months Ended
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Sep. 30, 2018
Restructuring and Related Activities [Abstract] |
Restructuring | 5. Restructuring On October 5, 2017, the Company filed a Current Report on Form 8-K to announce the initiation of discussions regarding a proposal to discontinue operations at its Machine Clothing production facility in Sélestat, France. The restructuring program was driven by the Company’s need o balance manufacturing capacity with demand. During 2017, we incurred $1.1 million of restructuring expense associated with this proposal but were unable to reasonably estimate the total costs for severance and other charges associated with the proposal as there was no assurance, at that time, that approval for the proposal would be obtained. In the first quarter of 2018 the plan was approved by the French Labor Ministry. In the first nine months of 2018, we recorded restructuring expense of $9.0 million, which includes severance and outplacement costs for the approximately 50 positions to be terminated under this plan. Since 2017, we have recorded $10.1 million of restructuring charges related to this action. The Company continues to assess property, plant and equipment in that location to determine if equipment will be transferred to other facilities, or if the value of the assets can be recovered through a sale. Depending on the outcome of that assessment, additional restructuring charges could be recorded in future periods. AEC restructuring charges included expenses for the first nine months of 2018 and 2017 related to work force reductions in Salt Lake City, Utah and Rochester, New Hampshire. To date, we have recorded $6.1 million of restructuring charges related to these actions. AEC restructuring charges in the third quarter of 2018 were principally related to the discontinuation of certain manufacturing processes in Salt Lake City, resulting in a non-cash restructuring charge of $1.7 million, and an additional $0.2 million for severance. The non-cash restructuring charge results from an impairment of related manufacturing equipment. The Company has decided to dispose of that equipment by sale and the impairment charge reflects management’s estimate of proceeds that may be recovered in the sale. As of September 30, 2018, the asset value, net of the impairment charge, is included in Prepaid expenses and other current assets in the accompanying Consolidated Balance Sheets. In 2017, the Company decided to discontinue the Bear Claw® line of hydraulic fracturing components used in the oil and gas industry, which was part of the Harris aerostructures business acquired by AEC in 2016. This decision resulted in a non-cash restructuring charge of $4.5 million for the write-off of intangible assets and equipment, and a $3.2 million charge to Cost of goods sold for the write-off of inventory in the third quarter of 2017. The following table summarizes charges reported in the Consolidated Statements of Income under “Restructuring expenses, net”:
| Three months ended September 30, | Nine months ended September 30,
(in thousands) | 2018 | 2017 | 2018 | 2017
Machine Clothing | $371 | $96 | $10,523 | $1,012
Albany Engineered Composites | 2,189 | 5,407 | 2,968 | 9,208
Corporate expenses | (8) | - | 223 | -
Total | $2,552 | $5,503 | $13,714 | $10,220
Nine months ended September 30, 2018 (in thousands) | Total restructuring costs incurred | Termination and other costs | Impairment of assets | Benefit plan curtailment/settlement
Machine Clothing | $10,523 | $11,129 | $144 | ($750)
Albany Engineered Composites | 2,968 | 1,206 | 1,762 | -
Corporate expenses | 223 | 223 | - | -
Total | $13,714 | $12,558 | $1,906 | ($750)
Nine months ended September 30, 2017 (in thousands) | Total restructuring costs incurred | Termination and other costs | Impairment of plant and equipment | Impairment of intangible asset
Machine Clothing | $1,012 | $1,012 | $- | $-
Albany Engineered Composites | 9,208 | 4,173 | 886 | 4,149
Corporate expenses | - | - | - |
Total | $10,220 | $5,185 | $886 | $4,149
We expect that approximately $6.1 million of Accrued liabilities for restructuring at September 30, 2018 will be paid within one year and approximately $0.3 million will be paid in the following year. The table below presents the year-to-date changes in restructuring liabilities for 2018 and 2017, all of which related to termination costs:
| December 31, | Restructuring |  | Currency | September 30,
(in thousands) | 2017 | charges accrued | Payments | translation /other | 2018
Total termination and other costs | $3,326 | $12,558 | ($9,153) | ($379) | $6,352
| December 31, | Restructuring |  | Currency | September 30,
(in thousands) | 2016 | charges accrued | Payments | translation /other | 2017
Total termination and other costs | $5,559 | $5,185 | ($6,370) | $24 | $4,398

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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