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Reportable Segments and Geographic Data | 12 Months Ended
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Dec. 31, 2020
Segment Reporting [Abstract] |
Reportable Segments and Geographic Data | Reportable Segments and Geographic Data In accordance with applicable disclosure guidance for enterprise segments and related information, the internal organization that is used by management for making operating decisions and assessing performance is used as the basis for our reportable segments. The accounting policies of the segments are the same as those described in Note 1. Corporate expenses include wages and benefits for corporate headquarters personnel, costs related to information systems development and support, and professional fees related to legal, audit, and other activities. These costs are not allocated to the reportable segments because the decision-making for these functions lies outside of the segments. Machine Clothing: The Machine Clothing (“MC”) segment supplies permeable and impermeable belts used in the manufacture of paper, paperboard, tissue and towel, pulp, nonwovens, fiber cement and several other industrial applications. We sell our MC products directly to customer end-users in countries across the globe. Our products, manufacturing processes, and distribution channels for MC are substantially the same in each region of the world in which we operate. We design, manufacture, and market paper machine clothing (used in the manufacturing of paper, paperboard, tissue and towel) for each section of the paper machine and for every grade of paper. Paper machine clothing products are customized, consumable products of technologically sophisticated design that utilize polymeric materials in a complex structure. Albany Engineered Composites: 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 commercial and defense aerospace 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. In 2020, Safran leased manufacturing space from AEC for the GE9X program. Rent paid by Safran under this lease amount to $0.9 million in 2020. AEC Net sales to Safran were $99.0 million in 2020, $226.8 million in 2019, and $186.3 million in 2018. The total of Accounts receivable, Contract assets and Noncurrent receivable due from Safran amounted to $127.1 million and $114.5 million as of December 31, 2020 and 2019, respectively. Other significant programs served by AEC include the F-35, Boeing 787, Sikorsky CH-53K and JASSM, as well as the fan case for the GE9X engine. In 2020, approximately 46 percent of AEC sales were related to U.S. government contracts or programs. The following tables show data by reportable segment, reconciled to consolidated totals included in the financial statements:
(in thousands) |  | 2020 |  | 2019 |  | 2018
Net Sales |  |  |  |  |  |
Machine Clothing |  | $ | 572,955 |  |  | $ | 601,254 |  |  | $ | 611,858 |
Albany Engineered Composites |  | 327,655 |  |  | 452,878 |  |  | 370,621 |
Consolidated total |  | $ | 900,610 |  |  | $ | 1,054,132 |  |  | $ | 982,479 |
Depreciation and amortization |  |  |  |  |  |
Machine Clothing |  | 20,304 |  |  | 21,875 |  |  | 30,813 |
Albany Engineered Composites |  | 48,496 |  |  | 44,670 |  |  | 43,205 |
Corporate expenses |  | 3,905 |  |  | 4,250 |  |  | 5,018 |
Consolidated total |  | $ | 72,705 |  |  | $ | 70,795 |  |  | $ | 79,036 |
Operating income/(loss) |  |  |  |  |  |
Machine Clothing |  | 190,805 |  |  | 191,965 |  |  | 169,836 |
Albany Engineered Composites |  | 31,536 |  |  | 55,520 |  |  | 16,647 |
Corporate expenses |  | (56,261) |  |  | (53,909) |  |  | (49,075) |
Operating income |  | $ | 166,080 |  |  | $ | 193,576 |  |  | $ | 137,408 |
Reconciling items: |  |  |  |  |  |
Interest income |  | (2,748) |  |  | (2,729) |  |  | (2,118) |
Interest expense |  | 16,332 |  |  | 19,650 |  |  | 20,242 |
Other expense, net |  | 13,422 |  |  | (1,557) |  |  | 4,037 |
Income before income taxes |  | $ | 139,074 |  |  | $ | 178,212 |  |  | $ | 115,247 |
The table below presents restructuring costs by reportable segment (also see Note 5):
(in thousands) |  | 2020 |  | 2019 |  | 2018
Restructuring expenses, net |  |  |  |  |  |
Machine Clothing |  | $ | 2,746 |  |  | $ | 1,129 |  |  | $ | 12,278 |
Albany Engineered Composites |  | 2,821 |  |  | 1,833 |  |  | 3,048 |
Corporate expenses |  | 169 |  |  | (57) |  |  | 244 |
Consolidated total |  | $ | 5,736 |  |  | $ | 2,905 |  |  | $ | 15,570 |
In the measurement of assets utilized by each reportable segment, we include Inventories, Accounts receivable, net, Contract assets, net, Noncurrent receivables, net, Property, plant and equipment, net, Intangibles, net and Goodwill. On November 20, 2019, the Company acquired CirComp GmbH, resulting in a $35.3 million increase in AEC assets. The following table presents assets and capital expenditures by reportable segment:
(in thousands) |  | 2020 |  | 2019 |  | 2018
Segment assets |  |  |  |  |  |
Machine Clothing |  | $ | 443,476 |  |  | $ | 441,072 |  |  | $ | 453,836 |
Albany Engineered Composites |  | 713,955 |  |  | 693,799 |  |  | 633,394 |
Reconciling items: |  |  |  |  |  |
Cash |  | 241,316 |  |  | 195,540 |  |  | 197,755 |
Income taxes prepaid, receivable and deferred |  | 44,697 |  |  | 57,783 |  |  | 70,095 |
Prepaid and Other assets |  | 106,492 |  |  | 86,174 |  |  | 62,912 |
Consolidated total assets |  | $ | 1,549,936 |  |  | $ | 1,474,368 |  |  | $ | 1,417,992 |
Capital expenditures and purchased software |  |  |  |  |  |
Machine Clothing |  | $ | 15,792 |  |  | $ | 16,707 |  |  | $ | 20,230 |
Albany Engineered Composites |  | 23,718 |  |  | 48,753 |  |  | 60,121 |
Corporate expenses |  | 2,880 |  |  | 2,495 |  |  | 2,535 |
Consolidated total |  | $ | 42,390 |  |  | $ | 67,955 |  |  | $ | 82,886 |
At the January 1, 2018 date of adoption of ASC 606, MC assets increased by $22.5 million, and AEC assets decreased by $14.1 million. Excluded from segment assets are cash, tax related assets, prepaid and other current assets, and certain other assets not directly associated with segment operations. In 2018, AEC finalized a modification to the lease of its primary manufacturing facility in Salt Lake City, Utah, which increased the manufacturing space and extended the minimum lease period until December 31, 2029. The lease modification resulted in a non-cash increase of $12.7 million to both Property, plant and equipment, net, and to Long-term debt in the Consolidated Balance Sheets in 2018. Effective January 1, 2019, we adopted the provisions of ASC 842, Leases, which resulted in changes to the amount and classification of the associated assets and liabilities, as depicted in Note 20. Due to the non-cash nature of the modification and subsequent adoption of the new Lease accounting standard, changes during both 2018 and 2019 are excluded from amounts reported in the Consolidated Statements of Cash Flows. The following table shows data by geographic area. Net sales are based on the location of the operation recording the final sale to the customer. Net sales recorded by our entity in Switzerland are derived from products sold throughout Europe and Asia, and are invoiced in various currencies.
(in thousands) |  | 2020 |  | 2019 |  | 2018
Net sales |  |  |  |  |  |
United States |  | $ | 503,473 |  |  | $ | 574,063 |  |  | $ | 519,349 |
Switzerland |  | 128,328 |  |  | 146,571 |  |  | 157,339 |
Brazil |  | 60,259 |  |  | 64,666 |  |  | 62,093 |
China |  | 57,007 |  |  | 48,586 |  |  | 50,923 |
France |  | 55,914 |  |  | 91,783 |  |  | 85,386 |
Mexico |  | 39,859 |  |  | 73,039 |  |  | 48,534 |
Other countries |  | 55,770 |  |  | 55,424 |  |  | 58,855 |
Consolidated total |  | $ | 900,610 |  |  | $ | 1,054,132 |  |  | $ | 982,479 |
Property, plant and equipment, at cost, net |  |  |  |  |  |
United States |  | $ | 263,201 |  |  | $ | 275,965 |  |  | $ | 272,584 |
Mexico |  | 41,738 |  |  | 45,640 |  |  | 40,343 |
France |  | 41,107 |  |  | 43,986 |  |  | 50,245 |
China |  | 40,898 |  |  | 41,799 |  |  | 48,686 |
Sweden |  | 12,109 |  |  | 8,652 |  |  | 8,394 |
Germany (a) |  | 10,808 |  |  | 10,577 |  |  | 27 |
United Kingdom |  | 10,731 |  |  | 11,047 |  |  | 12,042 |
South Korea |  | 10,550 |  |  | 10,795 |  |  | 12,396 |
Other countries |  | 17,412 |  |  | 18,001 |  |  | 17,338 |
Consolidated total |  | $ | 448,554 |  |  | $ | 466,462 |  |  | $ | 462,055 |
(a)In 2019, the Company acquired CirComp GmbH, which resulted in an increase in Property, plant and equipment of $10.6 million.

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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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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