10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended:	June 30, 2021

OR

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from __________ to __________

Commission file number: 1-10026

ALBANY INTERNATIONAL CORP.

(Exact name of registrant as specified in its charter)

Delaware

(State or other jurisdiction of incorporation or organization)

216 Airport Drive, Rochester, New Hampshire

(Address of principal executive offices)

14-0462060

(IRS Employer Identification No.)

03867

(Zip Code)

603-330-5850

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock, $0.001 par value per share	AIN	The New York Stock Exchange (NYSE)
Class B Common Stock, $0.001 par value per share	AIN	The New York Stock Exchange (NYSE)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The registrant had 30.7 million shares of Class A Common Stock and 1.6 million shares of Class B Common Stock outstanding as of July 16, 2021.

ALBANY INTERNATIONAL CORP.

TABLE OF CONTENTS

		Page No.
Part I Financial information
Item 1.	Financial Statements
	Consolidated statements of income – three and six months ended June 30, 2021 and 2020	3
	Consolidated statements of comprehensive income/(loss) – three and six months ended June 30, 2021 and 2020	4
	Consolidated balance sheets as of June 30, 2021 and December 31, 2020	5
	Consolidated statements of cash flows – three and six months ended June 30, 2021 and 2020	6
	Notes to consolidated financial statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
	Forward-looking statements	22
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	36
Item 4.	Controls and Procedures	36
Part II Other Information
Item 1.	Legal Proceedings	37
Item 1A.	Risk Factors	37
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	37
Item 3.	Defaults upon Senior Securities	37
Item 4.	Mine Safety Disclosures	37
Item 5.	Other Information	37
Item 6.	Exhibits	37

ITEM 1. FINANCIAL STATEMENTS

ALBANY INTERNATIONAL CORP.

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share amounts)

(unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Net sales	$	234,519	$	225,990	$	456,880	$	461,754
Cost of goods sold	132,791		123,010		266,606		269,302
Gross profit	101,728		102,980		190,274		192,452
Selling, general, and administrative expenses	42,009		38,543		79,203		78,649
Technical and research expenses	9,762		8,873		19,243		18,003
Restructuring expenses, net	(9)		2,837		43		3,479
Operating income	49,966		52,727		91,785		92,321
Interest expense, net	4,218		3,823		7,787		7,800
Other expense/(income), net	862		1,091		1,462		16,660
Income before income taxes	44,886		47,813		82,536		67,861
Income tax expense	13,446		15,364		23,486		27,818
Net income	31,440		32,449		59,050		40,043
Net income/(loss) attributable to the noncontrolling interest	43		95		70		(1,420)
Net income attributable to the Company	$	31,397	$	32,354	$	58,980	$	41,463
Earnings per share attributable to Company shareholders - Basic	$	0.97	$	1.00	$	1.82	$	1.28
Earnings per share attributable to Company shareholders - Diluted	$	0.97	$	1.00	$	1.82	$	1.28
Shares of the Company used in computing earnings per share:
Basic	32,375		32,328		32,363		32,320
Diluted	32,422		32,336		32,411		32,328
Dividends declared per share, Class A and Class B	$	0.20	$	0.19	$	0.40	$	0.38

The accompanying notes are an integral part of the consolidated financial statements

3

ALBANY INTERNATIONAL CORP.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)

(in thousands)

(unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Net income	$	31,440	$	32,449	$	59,050	$	40,043
Other comprehensive income/(loss), before tax:
Foreign currency translation and other adjustments	13,651		8,753		(1,788)		(16,202)
Pension/postretirement settlements and curtailments	—		378		—		378
Amortization of pension liability adjustments:
Prior service credit	(1,118)		(1,114)		(2,237)		(2,228)
Net actuarial loss	1,108		1,232		2,217		2,476
Payments and amortization related to interest rate swaps included in earnings	1,770		1,116		3,246		1,523
Derivative valuation adjustment	125		(1,366)		(353)		(12,130)
Income taxes related to items of other comprehensive income/(loss):
Pension/postretirement settlements and curtailments	—		(113)		—		(113)
Amortization of prior service cost	335		278		671		557
Amortization of net actuarial loss	(332)		(308)		(665)		(619)
Payments and amortization related to interest rate swaps included in earnings	(457)		(286)		(838)		(390)
Derivative valuation adjustment	(44)		349		91		3,102
Comprehensive income/(loss)	46,478		41,368		59,394		16,397
Comprehensive income/(loss) attributable to the noncontrolling interest	226		247		43		(1,159)
Comprehensive income/(loss) attributable to the Company	$	46,252	$	41,121	$	59,351	$	17,556

The accompanying notes are an integral part of the consolidated financial statements

4

ALBANY INTERNATIONAL CORP.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

(unaudited)

	June 30, 2021		December 31, 2020
ASSETS
Cash and cash equivalents	$	253,330	$	241,316
Accounts receivable, net	190,937		188,423
Contract assets, net	113,225		139,289
Inventories	120,665		110,478
Income taxes prepaid and receivable	6,236		5,940
Prepaid expenses and other current assets	33,089		31,830
Total current assets	$	717,482	$	717,276
Property, plant and equipment, net	438,392		448,554
Intangibles, net	42,998		46,869
Goodwill	185,293		187,553
Deferred income taxes	33,102		38,757
Noncurrent receivables, net	34,466		36,265
Other assets	74,907		74,662
Total assets	$	1,526,640	$	1,549,936
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable	$	55,348	$	49,173
Accrued liabilities	108,007		125,459
Current maturities of long-term debt	—		9
Income taxes payable	12,233		16,222
Total current liabilities	175,588		190,863
Long-term debt	350,000		398,000
Other noncurrent liabilities	121,333		130,424
Deferred taxes and other liabilities	11,660		10,784
Total liabilities	658,581		730,071
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; 39,142,483 issued in 2021 and 39,115,405 in 2020	39		39
Class B Common Stock, par value $.001 per share; authorized 25,000,000 shares; issued and outstanding 1,617,998 in 2021 and 2020	2		2
Additional paid in capital	435,230		433,696
Retained earnings	816,778		770,746
Accumulated items of other comprehensive income:
Translation adjustments	(85,384)		(83,203)
Pension and postretirement liability adjustments	(39,282)		(39,661)
Derivative valuation adjustment	(7,398)		(9,544)
Treasury stock (Class A), at cost; 8,379,804 shares in 2021 and 8,391,011 shares in 2020	(255,768)		(256,009)
Total Company shareholders' equity	864,217		816,066
Noncontrolling interest	3,842		3,799
Total equity	868,059		819,865
Total liabilities and shareholders' equity	$	1,526,640	$	1,549,936

The accompanying notes are an integral part of the consolidated financial statements

5

ALBANY INTERNATIONAL CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
OPERATING ACTIVITIES
Net income	$	31,440	$	32,449	$	59,050	$	40,043
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	15,971		15,498		32,560		31,004
Amortization	2,280		2,456		4,573		5,020
Change in deferred taxes and other liabilities	974		3,543		5,416		9,360
Impairment of property, plant and equipment	353		36		538		233
Non-cash interest expense	265		20		310		171
Compensation and benefits paid or payable in Class A Common Stock	1,639		1,198		1,626		516
Provision for credit losses from uncollected receivables and contract assets	27		114		(83)		1,769
Foreign currency remeasurement (gain)/loss on intercompany loans	(723)		194		(1,031)		15,581
Fair value adjustment on foreign currency options	1		—		140		64
Changes in operating assets and liabilities that provided/(used) cash:
Accounts receivable	(129)		11,511		(3,365)		8,117
Contract assets	9,539		(11,169)		25,643		(20,009)
Inventories	(1,821)		(4,878)		(10,384)		(24,628)
Prepaid expenses and other current assets	(606)		(301)		(1,505)		(2,457)
Income taxes prepaid and receivable	1,156		29		(309)		(208)
Accounts payable	(4,580)		(9,337)		4,608		(10,383)
Accrued liabilities	2,062		4,171		(17,423)		(10,901)
Income taxes payable	4,121		5,526		(3,956)		1,955
Noncurrent receivables	1,099		628		1,587		397
Other noncurrent liabilities	(2,166)		(464)		(4,263)		(524)
Other, net	1,051		(552)		1,908		(1,086)
Net cash provided by operating activities	61,953		50,672		95,640		44,034
INVESTING ACTIVITIES
Purchases of property, plant and equipment	(10,302)		(9,212)		(22,836)		(21,971)
Purchased software	(286)		—		(288)		(46)
Net cash used in investing activities	(10,588)		(9,212)		(23,124)		(22,017)
FINANCING ACTIVITIES
Proceeds from borrowings	—		—		8,000		70,000
Principal payments on debt	(34,002)		(56,005)		(56,009)		(59,011)
Principal payments on finance lease liabilities	(355)		(329)		(704)		(6,463)
Taxes paid in lieu of share issuance	—		—		(998)		(490)
Proceeds from options exercised	21		20		149		20
Dividends paid	(6,474)		(6,141)		(12,942)		(12,280)
Net cash used in financing activities	(40,810)		(62,455)		(62,504)		(8,224)
Effect of exchange rate changes on cash and cash equivalents	4,904		2,352		2,002		(5,296)
Increase/(decrease) in cash and cash equivalents	15,459		(18,643)		12,014		8,497
Cash and cash equivalents at beginning of period	237,871		222,680		241,316		195,540
Cash and cash equivalents at end of period	$	253,330	$	204,037	$	253,330	$	204,037

The accompanying notes are an integral part of the consolidated financial statements

6

ALBANY INTERNATIONAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

1. Significant Accounting Policies

Basis of Presentation

In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary for a fair presentation of results for such periods. Albany International Corp. (Albany, the Registrant, the Company, we, us, or our) consolidates the financial results of its subsidiaries for all periods presented. The results for any interim period are not necessarily indicative of results for the full year.

The preparation of financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in Albany International Corp.’s Consolidated Financial Statements and accompanying Notes. Actual results could differ materially from those estimates.

The information included in this Quarterly Report on Form 10-Q should be read in conjunction with Albany International Corp.’s Annual Report on Form 10-K for the year ended December 31, 2020.

2. Reportable Segments and Revenue Recognition

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 Machine Clothing (“MC”) segment supplies permeable and impermeable belts used in the manufacture of paper, paperboard, tissue and towel, 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.

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. AEC net sales to Safran were $54.0 million and $57.0 million in the first six months of 2021 and 2020, respectively. The total of Accounts receivable, Contract assets and Noncurrent receivables due from Safran amounted to $105.1 million and $127.1 million as of June 30, 2021 and December 31, 2020, respectively. Other significant programs 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.

7

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)	2021		2020		2021		2020
Net sales
Machine Clothing	$	159,921	$	153,433	$	308,127	$	290,035
Albany Engineered Composites	74,598		72,557		148,753		171,719
Consolidated total	$	234,519	$	225,990	$	456,880	$	461,754
Operating income/(loss)
Machine Clothing	$	55,902	$	56,543	$	106,264	$	103,718
Albany Engineered Composites	7,164		8,299		10,102		15,922
Corporate expenses	(13,100)		(12,115)		(24,581)		(27,319)
Operating income	$	49,966	$	52,727	$	91,785	$	92,321
Reconciling items:
Interest income	(401)		(348)		(930)		(795)
Interest expense	4,619		4,171		8,717		8,595
Other expense/(income), net	862		1,091		1,462		16,660
Income before income taxes	$	44,886	$	47,813	$	82,536	$	67,861

There were no material changes to total assets of the reportable segments in the first six months of 2021.

The table below presents restructuring costs by reportable segment (also see Note 4):

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Machine Clothing	$	10	$	388	$	(58)	$	1,030
Albany Engineered Composites	(48)		2,248		41		2,248
Corporate expenses	29		201		60		201
Total	$	(9)	$	2,837	$	43	$	3,479

Products and services provided under long-term contracts represent a significant portion of sales in the Albany Engineered Composites segment and we account for these contracts using the percentage of completion (actual cost to estimated cost) method. That method requires significant judgment and estimation, which could be considerably different if the underlying circumstances were to change. When adjustments in estimated contract revenues or costs are required, any changes from prior estimates are included in earnings in the period the change occurs. Changes in the estimated profitability of long-term contracts could be caused by increases or decreases in the contract value, revisions to customer delivery requirements, updated labor or overhead rates, factors affecting the supply chain, changes in the evaluation of contract risks and opportunities, or other factors. Changes in the estimated profitability of long-term contracts increased operating income by $4.3 million and $3.7 million for the second quarter and first half of 2021, respectively. Adjustments in the estimated profitability of long-term contracts increased operating income by $7.4 million and $6.4 million for the second quarter and first half of 2020, respectively.

8

We disaggregate revenue earned from contracts with customers for each of our business segments and product groups based on the timing of revenue recognition, and groupings used for internal review purposes.

The following table disaggregates revenue for each product group by timing of revenue recognition:

	Three months ended June 30, 2021
(in thousands)	Point in Time Revenue Recognition		Over Time Revenue Recognition		Total
Machine Clothing	$	159,056	$	865	$	159,921
Albany Engineered Composites
ASC	—		26,170		26,170
Other AEC	4,432		43,996		48,428
Total Albany Engineered Composites	4,432		70,166		74,598
Total revenue	$	163,488	$	71,031	$	234,519

	Six months ended June 30, 2021
(in thousands)	Point in Time Revenue Recognition		Over Time Revenue Recognition		Total
Machine Clothing	$	306,397	$	1,730	$	308,127
Albany Engineered Composites
ASC	—		53,254		53,254
Other AEC	8,312		87,187		95,499
Total Albany Engineered Composites	8,312		140,441		148,753
Total revenue	$	314,709	$	142,171	$	456,880

	Three months ended June 30, 2020
(in thousands)	Point in Time Revenue Recognition		Over Time Revenue Recognition		Total
Machine Clothing	$	152,585	$	848	$	153,433
Albany Engineered Composites
ASC	—		17,576		17,576
Other AEC	4,143		50,838		54,981
Total Albany Engineered Composites	4,143		68,414		72,557
Total revenue	$	156,728	$	69,262	$	225,990

9

	Six months ended June 30, 2020
(in thousands)	Point in Time Revenue Recognition		Over Time Revenue Recognition		Total
Machine Clothing	$	288,339	$	1,696	$	290,035
Albany Engineered Composites
ASC	—		55,470		55,470
Other AEC	10,463		105,786		116,249
Total Albany Engineered Composites	10,463		161,256		171,719
Total revenue	$	298,802	$	162,952	$	461,754

The following table disaggregates MC segment revenue by significant product groupings (paper machine clothing (PMC) and engineered fabrics), and, for PMC, the geographical region to which the paper machine clothing was sold:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Americas PMC	$	82,343	$	81,225	$	155,645	$	154,902
Eurasia PMC	55,900		54,166		111,043		99,297
Engineered Fabrics	21,678		18,042		41,439		35,836
Total Machine Clothing Net sales	$	159,921	$	153,433	$	308,127	$	290,035

As permitted by ASC 606, we only disclose the value of unsatisfied performance obligations for contracts with an original expected duration of greater than one year. Contracts in the MC segment are generally for periods of less than a year. Most contracts in the AEC segment are short duration firm-fixed-price orders representing performance obligations with an original maturity of less than one year. Remaining performance obligations on contracts that had an original duration of greater than one year totaled $149 million and $85 million as of June 30, 2021 and 2020, respectively, and related primarily to firm contracts in the AEC segment. Of the remaining performance obligations as of June 30, 2021, we expect to recognize as revenue approximately $48 million during 2021, $62 million during 2022, $24 million during 2023, and the remainder during 2024.

10

3. Pensions and Other Postretirement Benefit Plans

The Company has defined benefit pension plans covering certain U.S. and non-U.S. employees. The Company also provides certain postretirement benefits to retired employees in the U.S. and Canada. The Company accrues the cost of providing these benefits during the active service period of the employees.

The composition of the net periodic benefit cost for the six months ended June 30, 2021 and 2020, was as follows:

	Pension plans				Other postretirement benefits
(in thousands)	2021		2020		2021		2020
Components of net periodic benefit cost:
Service cost	$	1,090	$	1,148	$	66	$	100
Interest cost	2,674		3,071		551		857
Expected return on assets	(3,211)		(3,415)		—		—
Settlement	—		145		—		—
Curtailment	—		233		—		—
Amortization of prior service cost/(credit)	7		16		(2,244)		(2,244)
Amortization of net actuarial loss	1,087		1,180		1,130		1,296
Net periodic benefit cost	$	1,647	$	2,378	$	(497)	$	9

The amount of net periodic benefit cost is determined at the beginning of each year and generally only varies from quarter to quarter when a significant event occurs, such as a curtailment or a settlement. There were no such events in the first six months of 2021. In the second quarter of 2020, the Company recorded expense of $0.4 million related to curtailments and settlements.

Service cost for defined benefit pension and postretirement plans are reported in the same line item as other compensation costs arising from services rendered by the pertinent employees during the period. Other components of net periodic benefit cost are included in the line item Other (income)/expense, net in the Consolidated Statements of Income.

4. Restructuring

Restructuring costs in the first six months of 2021 were not significant. Restructuring costs in the first six months of 2020 were related to reductions in workforce at various AEC locations, principally in the United States, as well as related to discontinued operations at the Machine Clothing production facility in Sélestat, France. Since 2017, we have recorded $13.9 million of restructuring charges related to this action. There were no charges related to the impairment of assets for the periods presented.

The following table summarizes charges reported in the Consolidated Statements of Income under “Restructuring expenses, net”:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Machine Clothing	$	10	$	388	$	(58)	$	1,030
Albany Engineered Composites	(48)		2,248		41		2,248
Corporate expenses	29		201		60		201
Total	$	(9)	$	2,837	$	43	$	3,479

The table below presents the year-to-date changes in restructuring liabilities for 2021 and 2020, all of which are related to termination and other costs:

(in thousands)	December 31, 2020		Restructuring charges accrued		Payments		Currency translation /other		June 30, 2021
Total termination and other costs	$	2,195	$	43	$	(1,485)	$	11	$	764

(in thousands)	December 31, 2019		Restructuring charges accrued		Payments		Currency translation /other		June 30, 2020
Total termination and other costs	$	2,042	$	3,479	$	(1,410)	$	(5)	$	4,106

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We expect that approximately $0.6 million of Accrued liabilities for restructuring at June 30, 2021 will be paid within one year and approximately $0.2 million will be paid the following year.

5. Other (Income)/Expense, net

The components of Other (Income)/Expense, net are:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Currency transaction (gains)/losses	$	175	$	17	$	341	$	14,851
Bank fees and amortization of debt issuance costs	104		93		210		168
Components of net periodic pension and postretirement cost other than service	(4)		754		(6)		1,139
Other	587		227		917		502
Total	$	862	$	1,091	$	1,462	$	16,660

Other (income)/expense, net included losses related to the revaluation of nonfunctional-currency balances of $0.3 million for the first six months of 2021, compared to losses of $14.9 million for the first six months of 2020, which principally resulted from an intercompany demand loan payable by a Mexican subsidiary. As a result of changes in business conditions that occurred in the first quarter of 2020, loan repayments on that intercompany loan are not expected in the foreseeable future and, beginning April 1, 2020, the revaluation effects are recorded in Other comprehensive income.

6. Income Taxes

The following table presents components of income tax expense for the three and six months ended June 30, 2021 and 2020:

	Three months ended June 30,				Six months ended June 30,
(in thousands, except percentages)	2021		2020		2021		2020
Income tax based on income from continuing operations (1)	$	13,251	$	16,262	$	24,583	$	23,571
Provision for change in estimated tax rate	(218)		(490)		(218)		(490)
Income tax before discrete items	13,033		15,772		24,365		23,081
Discrete tax expense:
Exercise of U.S. stock options	(14)		—		(156)		—
Adjustments to prior period tax liabilities	22		879		(1,421)		767
Revaluation of deferred tax assets due to tax rate change	352		—		352		—
Provision for/resolution of tax audits and contingencies, net	—		(1,489)		278		(1,733)
Write-off of net operating losses related to tax audit	—		—		—		1,830
Tax effect of non-deductible foreign exchange loss on intercompany loan	—		(13)		—		3,656
Creation of valuation allowance	—		222		—		222
Other	53		(7)		68		(5)
Total income tax expense	$	13,446	$	15,364	$	23,486	$	27,818
(1) Calculated at estimated tax rates of 29.5% and 34.0%, respectively

Income tax expense for the quarter was computed in accordance with ASC 740-270, Income Taxes – Interim Reporting. Under this method, loss jurisdictions, which cannot recognize a tax benefit with regard to their generated losses, are excluded from the annual effective tax rate (AETR) calculation and their taxes will be recorded discretely in each quarter.

In the second quarter of 2020, the Company recorded a net tax benefit of $1.5 million as a result of a US state tax audit settlement; the Company also recorded a net deferred tax expense of $1.0 million due to an adjustment of net operating losses related to settled audits. In the first quarter of 2020, the Company recorded a $1.8 million out-of-period charge related to developments in ongoing tax audits, which resulted in a corresponding decrease in deferred tax assets.

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7. Earnings Per Share

The amounts used in computing earnings per share and the weighted average number of shares of potentially dilutive securities are as follows:

	Three months ended June 30,				Six months ended June 30,
(in thousands, except market price and earnings per share)	2021		2020		2021		2020
Net income attributable to the Company	$	31,397	$	32,354	$	58,980	$	41,463
Weighted average number of shares:
Weighted average number of shares used in calculating basic net income per share	32,375		32,328		32,363		32,320
Effect of dilutive stock-based compensation plans	47		8		48		8
Weighted average number of shares used in calculating diluted net income per share	32,422		32,336		32,411		32,328
Average market price of common stock used for calculation of dilutive shares	$	87.53	$	54.08	$	83.48	$	59.73
Net income attributable to the Company per share:
Basic	$	0.97	$	1.00	$	1.82	$	1.28
Diluted	$	0.97	$	1.00	$	1.82	$	1.28

8. Accumulated Other Comprehensive Income (AOCI)

The table below presents changes in the components of AOCI for the period December 31, 2020 to June 30, 2021:

(in thousands)	Translation adjustments		Pension and postretirement liability adjustments		Derivative adjustment		Total Other Comprehensive Income
December 31, 2020	$	(83,203)	$	(39,661)	$	(9,544)	$	(132,408)
Other comprehensive income/(loss) before reclassifications, net of tax	(2,181)		393		(262)		(2,050)
Interest expense related to swaps reclassified to the Consolidated Statements of Income, net of tax	—		—		2,408		2,408
Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income, net of tax	—		(14)		—		(14)
Net current period other comprehensive income	(2,181)		379		2,146		344
June 30, 2021	$	(85,384)	$	(39,282)	$	(7,398)	$	(132,064)

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The table below presents changes in the components of AOCI for the period December 31, 2019 to June 30, 2020:

(in thousands)	Translation adjustments		Pension and postretirement liability adjustments		Derivative adjustment		Total Other Comprehensive Income
December 31, 2019	$	(122,852)	$	(49,994)	$	(3,135)	$	(175,981)
Other comprehensive income/(loss) before reclassifications, net of tax	(16,783)		581		(9,028)		(25,230)
Pension/postretirement curtailment loss, net of tax	—		265		—		265
Interest expense related to swaps reclassified to the Consolidated Statements of Income, net of tax	—		—		1,133		1,133
Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income, net of tax	—		186		—		186
Net current period other comprehensive income	(16,783)		1,032		(7,895)		(23,646)
June 30, 2020	$	(139,635)	$	(48,962)	$	(11,030)	$	(199,627)

The components of our Accumulated Other Comprehensive Income that are reclassified to the Statement of Income relate to our pension and postretirement plans and interest rate swaps.

The table below presents the expense/(income) amounts reclassified from AOCI, and the line items of the Statement of Income that were affected for the three and six months ended June 30, 2021 and 2020:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Pretax Derivative valuation reclassified from Accumulated Other Comprehensive Income:
Expense/(income) related to interest rate swaps included in Income before taxes (a)	$	1,770	$	1,116	$	3,246	$	1,523
Income tax effect	(457)		(286)		(838)		(390)
Effect on net income due to items reclassified from Accumulated Other Comprehensive Income	$	1,313	$	830	$	2,408	$	1,133
Pretax pension and postretirement liabilities reclassified from Accumulated Other Comprehensive Income:
Pension/postretirement curtailment	—		378		—		378
Amortization of prior service credit	(1,118)		(1,114)		(2,237)		(2,228)
Amortization of net actuarial loss	1,108		1,232		2,217		2,476
Total pretax amount reclassified (b)	(10)		496		(20)		626
Income tax effect	3		(143)		6		(175)
Effect on net income due to items reclassified from Accumulated Other Comprehensive Income	$	(7)	$	353	$	(14)	$	451

(a)Included in Interest expense, net are payments related to the interest rate swap agreements and amortization of swap buyouts (see Notes 14 and 15).

(b)These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 3).

9. Noncontrolling Interest

Effective October 31, 2013, Safran S.A. (Safran) acquired a 10 percent equity interest in a new Albany subsidiary, Albany Safran Composites, LLC (ASC). The table below presents a reconciliation of income attributable to the noncontrolling interest and noncontrolling equity in the Company’s subsidiary Albany Safran Composites, LLC:

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	Six months ended June 30,
(in thousands, except percentages)	2021			2020
Net income/(loss) of Albany Safran Composites (ASC)	$	1,343		$	(13,612)
Less: Return attributable to the Company's preferred holding	647			587
Net income/(loss) of ASC available for common ownership	$	696		$	(14,199)
Ownership percentage of noncontrolling shareholder	10		%	10		%
Net income/(loss) attributable to the noncontrolling interest	$	70		$	(1,420)
Noncontrolling interest, beginning of year	$	3,799		$	4,006
Net income/(loss) attributable to the noncontrolling interest	70			(1,420)
Changes in other comprehensive income attributable to the noncontrolling interest	(27)			261
Noncontrolling interest, end of interim period	$	3,842		$	2,847

10. Accounts Receivable

Accounts receivable includes trade receivables. In connection with certain sales in Asia, the Company accepts a bank promissory note as customer payment. The notes may be presented for payment at maturity, which is less than one year. As of June 30, 2021 and December 31, 2020, Accounts receivable consisted of the following:

(in thousands)	June 30, 2021		December 31, 2020
Trade and other accounts receivable	$	170,029	$	167,370
Bank promissory notes	24,847		24,860
Allowance for expected credit losses	(3,939)		(3,807)
Accounts receivable, net	$	190,937	$	188,423

The Company has Noncurrent receivables in the AEC segment that represent revenue earned, which has extended payment terms. The Noncurrent receivables will be invoiced to the customer over a 10-year period, which began in 2020. As of June 30, 2021 and December 31, 2020, Noncurrent receivables consisted of the following:

(in thousands)	June 30, 2021		December 31, 2020
Noncurrent receivables	$	34,726	$	36,539
Allowance for expected credit losses	(260)		(274)
Noncurrent receivables, net	$	34,466	$	36,265

11. Contract Assets and Liabilities

Contract assets includes unbilled amounts typically resulting from sales under contracts when the cost-to-cost method of revenue recognition is utilized, and revenue recognized exceeds the amount billed to the customer. Contract assets are transferred to Accounts receivable, net when the entitlement to pay becomes unconditional. Contract liabilities include advance payments and billings in excess of revenue recognized. Contract liabilities are included in Accrued liabilities in the Consolidated Balance Sheets.

Contract assets and Contract liabilities are reported on the Consolidated Balance Sheets in a net position on a contract-by-contract basis at the end of each reporting period.

As of June 30, 2021 and December 31, 2020, Contract assets and Contract liabilities consisted of the following:

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(in thousands)	June 30, 2021		December 31, 2020
Contract assets	$	114,097	$	140,348
Allowance for expected credit losses	(872)		(1,059)
Contract assets, net	$	113,225	$	139,289
Contract liabilities	$	7,136	$	8,206

Contract assets decreased $26.1 million during the six-month period ended June 30, 2021. The decrease was primarily due to invoicing to customers exceeding revenue recognized for satisfied performance obligations for contracts that were in a contract asset position. There were no credit losses related to our Contract assets during the six month periods ended June 30, 2021 and June 30, 2020.

Contract liabilities decreased $1.1 million during the six-month period ended June 30, 2021, primarily due to revenue recognized from satisfied performance obligations exceeding amounts invoiced to customers that were in a contract liability position. Revenue recognized for the six-month periods ended June 30, 2021 and 2020 that was included in the Contract liability balance at the beginning of the year was $4.7 million and $2.1 million, respectively.

12. Inventories

Costs included in inventories are raw materials, labor, supplies and allocable depreciation and overhead. Raw material inventories are valued on an average cost basis. Other inventory cost elements are valued at cost, using the first-in, first-out method. The Company writes down the inventories for estimated obsolescence, and to lower of cost or net realizable value based upon assumptions about future demand and market conditions. If actual demand or market conditions are less favorable than those projected by the Company, additional inventory write-downs may be required. Once established, the original cost of the inventory less the related write-down represents the new cost basis of such inventories.

As of June 30, 2021 and December 31, 2020, Inventories consisted of the following:

(in thousands)	June 30, 2021		December 31, 2020
Raw materials	$	59,627	$	57,789
Work in process	45,436		40,416
Finished goods	15,602		12,273
Total inventories	$	120,665	$	110,478

13. Goodwill and Other Intangible Assets

Goodwill and intangible assets with indefinite useful lives are not amortized, but are tested for impairment at least annually. Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in each business combination. Our reportable segments are consistent with our operating segments.

Determining the fair value of a reporting unit requires the use of significant estimates and assumptions, including revenue growth rates, operating margins, discount rates, and future market conditions, among others. Goodwill and other long-lived assets are reviewed for impairment whenever events, such as significant changes in the business climate, plant closures, changes in product offerings, or other circumstances indicate that the carrying amount may not be recoverable.

To determine fair value, we utilize two market-based approaches and an income approach. Under the market-based approaches, we utilize information regarding the Company, as well as publicly available industry information, to determine earnings multiples and sales multiples. Under the income approach, we determine fair value based on estimated future cash flows of each reporting unit, discounted by an estimated weighted-average cost of capital, which reflects the overall level of inherent risk of a reporting unit and the rate of return an outside investor would expect to earn.

In the second quarter of 2021, management applied the qualitative assessment approach in performing its annual evaluation of goodwill for the Company's Machine Clothing reporting unit and three AEC reporting units and

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concluded that each reporting unit’s fair value continued to exceed its carrying value. In addition, there were no amounts at risk due to the estimated spread between the fair and carrying values. Accordingly, no impairment charges were recorded.

14. Financial Instruments

Long-term debt, principally to banks and noteholders, consists of:

(in thousands, except interest rates)	June 30, 2021		December 31, 2020
Revolving credit agreement with borrowings outstanding at an end of period interest rate of 3.74% in 2021 and 3.50% in 2020 (including the effect of interest rate hedging transactions, as described below), due in 2024	$	350,000	$	398,000
Other debt, at an average end of period rate of 5.50% in 2020, paid in varying amounts through April 2021	—		9
Long-term debt	350,000		398,009
Less: current portion	—		(9)
Long-term debt, net of current portion	$	350,000	$	398,000

On October 27, 2020, we entered into a $700 million unsecured Four-Year Revolving Credit Facility Agreement (the “Credit Agreement”) which amended and restated the prior amended and restated $685 million Five-Year Revolving Credit Facility Agreement, which we had entered into on November 7, 2017 (the “Prior Agreement”). Under the Credit Agreement, $350 million of borrowings were outstanding as of June 30, 2021. The applicable interest rate for borrowings was LIBOR plus a spread, based on our leverage ratio at the time of borrowing. At the time of the last borrowing on June 30, 2021, the spread was 1.625%. The spread was based on a pricing grid, which ranged from 1.500% to 2.000%, based on our leverage ratio. Based on our maximum leverage ratio and our Consolidated EBITDA, and without modification to any other credit agreements, as of June 30, 2021, we would have been able to borrow an additional $350 million under the Agreement.

The Credit Agreement contains customary terms, as well as affirmative covenants, negative covenants and events of default that are comparable to those in the Prior Agreement. The Borrowings are guaranteed by certain of the Company’s subsidiaries.

Our ability to borrow additional amounts under the Credit Agreement is conditional upon the absence of any defaults, as well as the absence of any material adverse change (as defined in the Credit Agreement).

On June 14, 2021, we entered into interest rate swap agreements for the period October 17, 2022 through October 27, 2024. These transactions have the effect of fixing the LIBOR portion of the effective interest rate (before addition of the spread) on $350 million of indebtedness drawn under the Credit Agreement at the rate of 0.838% during the period. Under the terms of these transactions, we pay the fixed rate of 0.838% and the counterparties pay a floating rate based on the one-month LIBOR rate at each monthly calculation date, which on June 16, 2021 was 0.08%.

On November 27, 2017, we terminated our interest rate swap agreements, originally entered into on May 9, 2016, that had effectively fixed the interest rate on $300 million of revolving credit borrowings, in order to enter into a new interest rate swap with a greater notional amount, and the same maturity as the Credit Agreement. We received $6.3 million when the swap agreements were terminated, which has been fully amortized into interest expense through March 2021.

On November 28, 2017, we entered into interest rate swap agreements for the period December 18, 2017 through October 17, 2022. These transactions have the effect of fixing the LIBOR portion of the effective interest rate (before addition of the spread) on $350 million of indebtedness drawn under the Credit Agreement at the rate of 2.11% during the period. Under the terms of these transactions, we pay the fixed rate of 2.11% and the counterparties pay a floating rate based on the one-month LIBOR rate at each monthly calculation date, which on June 16, 2021 was 0.08%, during the swap period. On June 16, 2021, the all-in-rate on the $350 million of debt was 3.735%.

These interest rate swaps are accounted for as a hedge of future cash flows, as further described in Note 15. No cash collateral was received or pledged in relation to the swap agreements.

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Under the Credit Agreement, we are currently required to maintain a leverage ratio (as defined in the agreement) of not greater than 3.50 to 1.00 and minimum interest coverage (as defined) of 3.00 to 1.00.

As of June 30, 2021, our leverage ratio was 1.08 to 1.00 and our interest coverage ratio was 15.02 to 1.00. We may purchase our Common Stock or pay dividends to the extent our leverage ratio remains at or below 3.50 to 1.00, and may make acquisitions with cash, provided our leverage ratio does not exceed the limits noted above.

Indebtedness under the Credit Agreement is ranked equally in right of payment to all unsecured senior debt.

We were in compliance with all debt covenants as of June 30, 2021.

15. Fair-Value Measurements

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Accounting principles establish a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Level 3 inputs are unobservable data points for the asset or liability, and include situations in which there is little, if any, market activity for the asset or liability. We had no Level 3 financial assets or liabilities at June 30, 2021, or at December 31, 2020.

The following table presents the fair-value hierarchy for our Level 1 and Level 2 financial and non-financial assets and liabilities, which are measured at fair value on a recurring basis:

	June 30, 2021				December 31, 2020
	Quoted prices in active markets		Significant other observable inputs		Quoted prices in active markets		Significant other observable inputs
(in thousands)	(Level 1)		(Level 2)		(Level 1)		(Level 2)
Fair Value
Assets:
Cash equivalents	$	26,848	$	—	$	17,508	$	—
Other Assets:
Common stock of unaffiliated foreign public company (a)	741		—		748		—
Interest rate swaps	—		261		—		—
Liabilities:
Other noncurrent liabilities:
Interest rate swaps	—		(9,270)		—		(12,714)

(a)Original cost basis $0.5 million.

Cash equivalents include short-term securities that are considered to be highly liquid and easily tradable. These securities are valued using inputs observable in active markets for identical securities.

The interest rate swaps are accounted for as hedges of future cash flows. The fair value of our interest rate swaps are derived from a discounted cash flow analysis based on the terms of the contract and the interest rate curve, and is included in Other assets and/or Other noncurrent liabilities in the Consolidated Balance Sheets. Unrealized gains and losses on the swaps flow through the caption Derivative valuation adjustment in the Shareholders’ equity section of the Consolidated Balance Sheets. As of June 30, 2021, these interest rate swaps were determined to be highly effective hedges of interest rate cash flow risk. Amounts accumulated in Other comprehensive income are reclassified as Interest expense, net when the related interest payments (that is, the hedged forecasted transactions), and amortization related to the swap buyouts, affect earnings. Interest (income)/expense related to payments under the active swap agreements totaled $3.5 million for the six month period ended June 30, 2021, and $1.9 million for the six month period ended June 30, 2020. Additionally, non-cash interest income related to the amortization of swap buyouts totaled $0.3 million for the six month period ended June 30, 2021 and $0.4 million for the six month period ended June 30, 2020.

16. Contingencies

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Asbestos Litigation

Albany International Corp. is a defendant in suits brought in various courts in the United States by plaintiffs who allege that they have suffered personal injury as a result of exposure to asbestos-containing paper machine clothing synthetic dryer fabrics marketed during the period from 1967 to 1976 and used in certain paper mills.

We were defending 3,617 claims as of June 30, 2021.

The following table sets forth the number of claims filed, the number of claims settled, dismissed or otherwise resolved, and the aggregate settlement amount during the periods presented:

Year ended December 31,	Opening Number of Claims	Claims Dismissed, Settled, or Resolved	New Claims	Closing Number of Claims	Amounts Paid (thousands) to Settle or Resolve
2016	3,791	148	102	3,745	$	758
2017	3,745	105	90	3,730	55
2018	3,730	152	106	3,684	100
2019	3,684	51	75	3,708	25
2020	3,708	152	59	3,615	57
2021 (As of June 30)	3,615	9	11	3,617	$	—

We anticipate that additional claims will be filed against the Company and related companies in the future, but are unable to predict the number and timing of such future claims. Due to the fact that information sufficient to meaningfully estimate a range of possible loss of a particular claim is typically not available until late in the discovery process, we do not believe a meaningful estimate can be made regarding the range of possible loss with respect to pending or future claims and therefore are unable to estimate a range of reasonably possible loss in excess of amounts already accrued for pending or future claims.

While we believe we have meritorious defenses to these claims, we have settled certain claims for amounts we consider reasonable given the facts and circumstances of each case. Our insurance carrier has defended each case and funded settlements under a standard reservation of rights. As of June 30, 2021, we had resolved, by means of settlement or dismissal, 37,957 claims. The total cost of resolving all claims was $10.4 million. Of this amount, almost 100% was paid by our insurance carrier, who has confirmed that we have approximately $140 million of remaining coverage under primary and excess policies that should be available with respect to current and future asbestos claims.

The Company’s subsidiary, Brandon Drying Fabrics, Inc. (“Brandon”), is also a separate defendant in many of the asbestos cases in which Albany is named as a defendant, despite never having manufactured any fabrics containing asbestos. While Brandon was defending against 7,709 claims as of June 30, 2021, only twelve claims have been filed against Brandon since January 1, 2012, and a negligible amount of settlement costs have been incurred since 2001. Brandon was acquired by the Company in 1999, and has its own insurance policies covering periods prior to 1999. Since 2004, Brandon’s insurance carriers have covered 100% of indemnification and defense costs, subject to policy limits and a standard reservation of rights.

In some of these asbestos cases, the Company is named both as a direct defendant and as the “successor in interest” to Mount Vernon Mills (“Mount Vernon”). We acquired certain assets from Mount Vernon in 1993. Certain plaintiffs allege injury caused by asbestos-containing products alleged to have been sold by Mount Vernon many years prior to this acquisition. Mount Vernon is contractually obligated to indemnify the Company against any liability arising out of such products. We deny any liability for products sold by Mount Vernon prior to the acquisition of the Mount Vernon assets. Pursuant to its contractual indemnification obligations, Mount Vernon has assumed the defense of these claims. On this basis, we have successfully moved for dismissal in a number of actions.

We currently do not anticipate, based on currently available information, that the ultimate resolution of the aforementioned proceedings will have a material adverse effect on the financial position, results of operations, or cash flows of the Company. Although we cannot predict the number and timing of future claims, based on the foregoing factors, the trends in claims filed against us, and available insurance, we also do not currently anticipate that potential future claims will have a material adverse effect on our financial position, results of operations, or cash flows.

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17. Changes in Shareholders’ Equity

The following table summarizes changes in Shareholders’ Equity for the period December 31, 2020 to June 30, 2021:

	Class A Common Stock			Class B Common Stock			Additional paid-in capital		Retained earnings		Accumulated other comprehensive income		Class A Treasury Stock			Noncontrolling Interest		Total Equity
(in thousands)	Shares	Amount		Shares	Amount								Shares	Amount
December 31, 2020	39,115	$	39	1,618	$	2	$	433,696	$	770,746	$	(132,408)	8,391	$	(256,009)	$	3,799	$	819,865
Net income	—	—		—	—		—		27,582		—		—	—		27		27,609
Compensation and benefits paid or payable in shares	20	—		—	—		(13)		—		—		—	—		—		(13)
Options exercised	6	—		—	—		128		—		—		—	—		—		128
Dividends declared
Class A Common Stock, $0.20 per share	—	—		—	—		—		(6,150)		—		—	—		—		(6,150)
Class B Common Stock, $0.20 per share	—	—		—	—		—		(324)		—		—	—		—		(324)
Cumulative translation adjustments	—	—		—	—		—		—		(15,955)		—	—		(210)		(16,165)
Pension and postretirement liability adjustments	—	—		—	—		—		—		509		—	—		—		509
Derivative valuation adjustment	—	—		—	—		—		—		752		—	—		—		752
March 31, 2021	39,141	$	39	1,618	$	2	$	433,811	$	791,854	$	(147,102)	8,391	$	(256,009)	$	3,616	$	826,211
Net income	—	—		—	—		—		31,397		—		—	—		43		31,440
Compensation and benefits paid or payable in shares	—	—		—	—		692		—		—		—	—		—		692
Options exercised	1	—		—	—		21		—		—		—	—		—		21
Shares issued to Directors'	—	—		—	—		706		—		—		(11)	241		—		947
Dividends declared
Class A Common Stock, $0.20 per share	—	—		—	—		—		(6,150)		—		—	—		—		(6,150)
Class B Common Stock, $0.20 per share	—	—		—	—		—		(323)		—		—	—		—		(323)
Cumulative translation adjustments	—	—		—	—		—		—		13,774		—	—		183		13,957
Pension and postretirement liability adjustments	—	—		—	—		—		—		(130)		—	—		—		(130)
Derivative valuation adjustment	—	—		—	—		—		—		1,394		—	—		—		1,394
June 30, 2021	39,142	$	39	1,618	$	2	$	435,230	$	816,778	$	(132,064)	8,380	$	(255,768)	$	3,842	$	868,059

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The following table summarizes changes in Shareholders’ Equity for the period December 31, 2019 to June 30, 2020:

	Class A Common Stock			Class B Common Stock			Additional paid-in capital		Retained earnings		Accumulated other comprehensive  income		Class A Treasury Stock			Noncontrolling Interest		Total Equity
(in thousands)	Shares	Amount		Shares	Amount								Shares	Amount
December 31, 2019	39,099	$	39	1,618	$	2	$	432,518	$	698,496	$	(175,981)	8,409	$	(256,391)	$	4,006	$	702,689
Adoption of accounting standards (a)	—	—		—	—		—		(1,443)		—		—	—		—		(1,443)
Net income	—	—		—	—		—		9,109		—		—	—		(1,515)		7,594
Compensation and benefits paid or payable in shares	13	—		—	—		(682)		—		—		—	—		—		(682)
Options exercised	—				—		—		—		—		—	—		—		—
Shares issued to Directors'	—	—		—	—		—		—		—		—	—		—		—
Dividends declared
Class A Common Stock, $0.19 per share	—	—		—	—		—		(5,834)		—		—	—		—		(5,834)
Class B Common Stock, $0.19 per share	—	—		—	—		—		(307)		—		—	—		—		(307)
Cumulative translation adjustments	—	—		—	—		—		—		(25,747)		—	—		109		(25,638)
Pension and postretirement liability adjustments	—	—		—	—		—		—		890		—	—		—		890
Derivative valuation adjustment	—	—		—	—		—		—		(7,708)		—	—		—		(7,708)
March 31, 2020	39,112	$	39	1,618	$	2	$	431,836	$	700,021	$	(208,546)	8,409	$	(256,391)	$	2,600	$	669,561
Net income	—	—		—	—		—		32,354		—		—	—		95		32,449
Compensation and benefits paid or payable in shares	—	—		—	—		466		—		—		—	—		—		466
Options exercised	1	—		—	—		20		—		—		—	—		—		20
Shares issued to Directors'	—	—		—	—		416		—		—		(15)	317		—		733
Dividends declared
Class A Common Stock, $0.19 per share	—	—		—	—		—		(5,835)		—		—	—		—		(5,835)
Class B Common Stock, $0.19 per share	—	—		—	—		—		(307)		—		—	—		—		(307)
Cumulative translation adjustments	—	—		—	—		—		—		8,964		—	—		152		9,116
Pension and postretirement liability adjustments	—	—		—	—		—		—		142		—	—		—		142
Derivative valuation adjustment	—	—		—	—		—		—		(187)		—	—		—		(187)
June 30, 2020	39,113	$	39	1,618	$	2	$	432,738	$	726,233	$	(199,627)	8,394	$	(256,074)	$	2,847	$	706,158

(a)The Company adopted the provisions of ASC 326, Current Expected Credit Losses (CECL) effective January 1, 2020, which resulted in a decrease to Retained earnings of $1.4 million.

18. Recent Accounting Pronouncements

As disclosed in our March 31, 2020 Form 10Q, in March 2020, ASU 2020-04, Reference Rate Reform, was issued to provide optional guidance for a limited time to ease the potential accounting burden associated with transitioning away from reference rates such as LIBOR. The expedients and exceptions provided by this update will not be available after December 31, 2022, other than for certain hedging relationships entered into prior. For the Company’s cash flow hedges in which the designated hedged risk is LIBOR, the Company has adopted the portion of the guidance that allows it to assert that it remains probable that the hedged forecasted transaction will occur. The Company plans to adopt the remaining applicable provisions of this guidance beginning on July 1, 2021.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Management’s Discussion and Analysis (“MD&A”) is intended to help the reader understand the results of operations and financial condition of the Company. MD&A is provided as a supplement to, and should be read in conjunction with, our Consolidated Financial Statements and the accompanying Notes.

Forward-looking statements

This quarterly report and the documents incorporated or deemed to be incorporated by reference in this quarterly report contain statements concerning our future results and performance and other matters that are “forward-looking” statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,” ”look for,” “will,” “should,” “guidance,” “guide” and similar expressions identify forward-looking statements, which generally are not historical in nature. Because forward-looking statements are subject to certain risks and uncertainties, (including, without limitation, those set forth in the Company’s most recent Annual Report on Form 10-K or prior Quarterly Reports on Form 10-Q) actual results may differ materially from those expressed or implied by such forward-looking statements.

There are a number of risks, uncertainties, and other important factors that could cause actual results to differ materially from the forward-looking statements, including, but not limited to:

•Conditions in the industries in which our Machine Clothing and Albany Engineered Composites segments compete, along with the general risks associated with macroeconomic conditions, including continuation of COVID-19 pandemic effects for an extended period of time;

•In the Machine Clothing segment, greater than anticipated declines in the demand for publication grades of paper, or lower than anticipated growth in other paper grades;

•In the Albany Engineered Composites segment, longer than expected timeframe for the aerospace industry to utilize existing inventories, and unanticipated reductions in demand, delays, technical difficulties, or cancellations in aerospace programs that are expected to generate revenue and drive long-term growth;

•Failure to achieve or maintain anticipated profitable growth in our Albany Engineered Composites segment; and

•Other risks and uncertainties detailed in this report.

Further information concerning important factors that could cause actual events or results to be materially different from the forward-looking statements can be found in “Business Environment Overview and Trends” sections of this quarterly report, as well as in Item 1A-“Risk Factors” section of our most recent Annual Report on Form 10-K. Although we believe the expectations reflected in our other forward-looking statements are based on reasonable assumptions, it is not possible to foresee or identify all factors that could have a material and negative impact on our future performance. The forward-looking statements included or incorporated by reference in this report are made on the basis of our assumptions and analyses, as of the time the statements are made, in light of our experience and perception of historical conditions, expected future developments, and other factors believed to be appropriate under the circumstances.

Except as otherwise required by the federal securities laws, we disclaim any obligations or undertaking to publicly release any updates or revisions to any forward-looking statement contained or incorporated by reference in this report to reflect any change in our expectations with regard thereto or any change in events, conditions, or circumstances on which any such statement is based.

Business Environment Overview and Trends

Our reportable segments, Machine Clothing (“MC”) and Albany Engineered Composites (“AEC”), draw on the same advanced textiles and materials processing capabilities, and compete on the basis of product-based advantage that is grounded in those core capabilities.

The MC segment is the Company’s long-established core business and primary generator of cash. While it has been negatively impacted by well-documented declines in publication grades in the Company’s traditional markets, there has been some offsetting effect due to growth in demand for packaging and tissue grades, as well as the expansion of paper consumption and production in Asia and South America. We feel we are well-positioned in key markets, with high-quality, low-cost production in growth markets, substantially lower fixed costs in mature markets,

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and continued strength in new product development, technical product support, and manufacturing technology. Some of the markets in which our products are sold are expected to have low levels of growth and we face pricing pressures in all markets. Despite these market pressures on revenue, the MC business retains the potential for maintaining stable earnings in the future. MC has been a significant generator of cash, and we seek to maintain the cash-generating potential of this business by maintaining the low costs that we have achieved through continuous focus on cost-reduction initiatives, and competing vigorously by using our differentiated and technically superior products to reduce our customers’ total cost of operation and improve their paper quality.

The AEC segment provides significant longer term growth potential for our Company. Our strategy is to grow by focusing our proprietary 3D-woven technology, as well as our non-3D technology capabilities, on high-value aerospace (both commercial and defense) applications, while at the same time performing successfully on our portfolio of growth programs. AEC (including Albany Safran Composites, LLC (“ASC”), in which our customer, SAFRAN Group, owns a 10 percent noncontrolling interest) supplies a number of customers in the aerospace industry. AEC’s largest aerospace customer is the SAFRAN Group and sales to SAFRAN, through ASC, (consisting primarily of fan blades and cases for CFM’s LEAP engine) accounted for approximately 11 percent of the Company’s consolidated Net sales in 2020. AEC, through ASC, also supplies 3D-woven composite fan cases for the GE9X engine. AEC’s current portfolio of non-3D programs includes components for the F-35, fuselage components for the Boeing 787, components for the CH-53K helicopter, vacuum waste tanks for Boeing 7-Series aircraft, and missile bodies for Lockheed Martin’s JASSM air-to-surface missiles. AEC is actively engaged in research to develop new applications in both commercial and defense aircraft engine and airframe markets. In 2020, approximately 46 percent of AEC sales were related to U.S. government contracts or programs.

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Consolidated Results of Operations

Net sales

The following table summarizes our Net sales by business segment:

	Three months ended June 30,				Six months ended June 30,
(in thousands, except percentages)	2021	2020	% Change		2021	2020	% Change
Machine Clothing	$159,921	$153,433	4.2	%	$308,127	$290,035	6.2	%
Albany Engineered Composites	74,598	72,557	2.8	%	148,753	171,719	-13.4	%
Total	$234,519	$225,990	3.8	%	$456,880	$461,754	-1.1	%

The following tables provide a comparison of 2021 Net sales, excluding the impact of currency translation effects, to 2020 Net sales:

(in thousands, except percentages)	Net sales as reported, Q2 2021		Increase due to changes in currency translation rates		Q2 2021 sales on same basis as Q2 2020 currency translation rates		Net sales as reported, Q2 2020		% Change compared to Q2 2020, excluding currency rate effects
Machine Clothing	$	159,921	$	5,281	$	154,640	$	153,433	0.8	%
Albany Engineered Composites	74,598		1,088		73,510		72,557		1.3	%
Consolidated total	$	234,519	$	6,369	$	228,150	$	225,990	1.0	%
(in thousands, except percentages)	Net sales as reported, YTD 2021		Increase due to changes in currency translation rates		YTD 2021 sales on same basis as 2020 currency translation rates		Net sales as reported, YTD 2020		% Change compared to 2020, excluding currency rate effects
Machine Clothing	$	308,127	$	10,142	$	297,985	$	290,035	2.7	%
Albany Engineered Composites	148,753		2,267		146,486		171,719		-14.7	%
Consolidated total	$	456,880	$	12,409	$	444,471	$	461,754	-3.7	%

Three month comparison

•Changes in currency translation rates had the effect of increasing Net sales by $6.4 million during the second quarter of 2021, as compared to 2020, principally due to stronger Euro and Chinese Yuan Renminbi in 2021.

•Excluding the effect of changes in currency translation rates:

•Net sales increased 1.0% compared to the same period in 2020.

•Net sales in MC increased 0.8% compared to the second quarter of 2020, principally due to growth in sales for packaging grades and engineered fabrics, partially offset by declines in other grades.

•Net sales in AEC increased 1.3%, mainly due to an increase in sales for the LEAP and CH-53K programs, partially offset by a decline in sales on the Boeing 787 program.

Six month comparison

•Changes in currency translation rates had the effect of increasing Net sales by $12.4 million during the first six months of 2021, as compared to 2020, principally due to stronger Euro and Chinese Yuan Renminbi in 2021.

•Excluding the effect of changes in currency translation rates:

•Net sales decreased 3.7% compared to the same period in 2020.

•Net sales in MC increased 2.7% compared to the first six months of 2020, primarily due to growth in sales for packaging grades and Engineered Fabrics, partially offset by declines in other grades.

•Net sales in AEC decreased 14.7%, primarily due to declines in sales for the Boeing 787 program.

Gross Profit

The following table summarizes Gross profit by business segment:

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	Three months ended June 30,						Six months ended June 30,
(in thousands, except percentages)	2021			2020			2021			2020
Machine Clothing	$	84,597		$	83,612		$	160,990		$	156,264
Albany Engineered Composites	17,131			19,368			29,284			36,188
Total	$	101,728		$	102,980		$	190,274		$	192,452
% of Net sales	43.4		%	45.6		%	41.6		%	41.7		%

Three month comparison

The decrease in second quarter 2021 Gross profit, as compared to the same period in 2020, was due to a decline in AEC Gross profit, partially offset by higher Gross profit in MC . Gross profit as a percentage of sales:

•Decreased from 54.5% in 2020 to 52.9% in 2021 in MC, due to higher input and fixed costs, partially offset by improved absorption.

•Decreased from 26.7% in 2020 to 23.0% in 2021 in AEC, principally due to a smaller impact from changes in the estimated profitability of long-term contracts, which increased Gross profit by $4.3 million for the second quarter of 2021, compared to an increase of $7.4 million for the second quarter of 2020.

Six month comparison

Gross Profit for the first half of 2021 was slightly lower than the same period in 2020. Gross profit as a percentage of sales:

•Decreased from 53.9% in 2020 to 52.2% in 2021 in MC, due to an increase in production costs and lower cost absorption.

•Decreased from 21.1% in 2020 to 19.7% in 2021 in AEC, driven by changes in the estimated profitability of long-term contracts, which increased Gross profit by $3.7 million versus $6.4 million in the first half of 2021 and 2020, respectively.

Selling, Technical, General, and Research (STG&R)

Selling, Technical, General and Research (STG&R) expenses include selling, general, administrative, technical and research expenses.

The following table summarizes STG&R expenses by business segment:

	Three months ended June 30,						Six months ended June 30,
(in thousands, except percentages)	2021			2020			2021			2020
Machine Clothing	$	28,685		$	26,682		$	54,784		$	51,517
Albany Engineered Composites	10,014			8,821			19,140			18,018
Corporate expenses	13,071			11,913			24,522			27,117
Total	$	51,770		$	47,416		$	98,446		$	96,652
% of Net sales	22.1		%	21.0		%	21.5		%	20.9		%

Three month comparison

The overall increase in STG&R expenses in the second quarter of 2021, compared to the same period in 2020, was driven by higher incentive compensation and travel expense, as well as research and development spending. Additionally, revaluation of nonfunctional currency assets and liabilities in Machine Clothing resulted in a second-quarter loss of $1.9 million in 2021, compared to a loss of $1.1 million for the same period in 2020.

Six month comparison

The overall increase in STG&R expenses in the first six months of 2021, compared to the same period in 2020, was due to the net effect of the following:

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•Revaluation of nonfunctional currency assets and liabilities in Machine Clothing, which resulted in a loss of $1.4 million in 2021, compared to a gain of $2.6 million for the first six months of 2020

•Former CEO termination costs of $2.7 million were recorded in Corporate expenses during the first quarter of 2020

•Higher incentive compensation in all business segments in 2021

Restructuring Expense, net

In addition to the items discussed above affecting Gross profit and STG&R expenses, Operating income was minimally affected by restructuring costs in the first six months of 2021, but totaled $3.5 million for the same period in 2020.

The following table summarizes Restructuring expenses, net by business segment:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Machine Clothing	$	10	$	388	$	(58)	$	1,030
Albany Engineered Composites	(48)		2,248		41		2,248
Corporate expenses	29		201		60		201
Total	$	(9)	$	2,837	$	43	$	3,479

Machine Clothing restructuring charges or credits in both years mainly related to discontinued operations at its production facility in Sélestat, France, announced in 2017. The restructuring program was driven by the Company’s need to balance manufacturing capacity with demand. Since 2017, we have recorded $13.9 million of restructuring charges related to this action.

Operating Income

The following table summarizes operating income/(loss) by business segment:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Machine Clothing	$	55,902	$	56,543	$	106,264	$	103,718
Albany Engineered Composites	7,164		8,299		10,102		15,922
Corporate expenses	(13,100)		(12,115)		(24,581)		(27,319)
Total	$	49,966	$	52,727	$	91,785	$	92,321

Other Earnings Items

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Interest expense, net	$	4,218	$	3,823	$	7,787	$	7,800
Other expense/(income), net	862		1,091		1,462		16,660
Income tax expense	13,446		15,364		23,486		27,818
Net income/(loss) attributable to the noncontrolling interest	43		95		70		(1,420)

Interest Expense, net

Year-to-date 2021 Interest expense, net, was lower as compared to 2020, due to lower average debt outstanding. See the Capital Resources section for further discussion of borrowings and interest rates.

Other (income)/expense, net

27

Three and Six month comparison

Other (income)/expense net included losses related to the revaluation of nonfunctional-currency balances of $0.3 million for the first six months of 2021, compared to losses of $14.9 million for the first six months of 2020, which principally resulted from an intercompany demand loan payable by a Mexican subsidiary. As a result of changes in business conditions that occurred in the first quarter of 2020, loan repayments on that intercompany loan are not expected in the foreseeable future and, beginning April 1, 2020, the revaluation effects are recorded in Other comprehensive income.

Income Tax

The Company has operations, which constitute a taxable presence in 18 countries outside of the United States. The majority of these countries had income tax rates that are above the United States federal tax rate of 21 percent during the periods reported. The jurisdictional location of earnings is a significant component of our effective tax rate each year. The rate impact of this component is influenced by the specific location of non-U.S. earnings and the level of our total earnings. From period to period, the jurisdictional mix of earnings can vary as a result of operating fluctuations in the normal course of business, as well as the extent and location of other income and expense items, such as pension settlement and restructuring charges.

Three and six month comparison

The Company’s effective tax rates for the second quarter of 2021 and 2020 were 30.0% and 32.1%, respectively, and for the first half of 2021 and 2020, were 28.5% and 41.0%, respectively. The tax rate is affected by recurring items, such as the income tax rate in the U.S. and non-U.S. jurisdictions and the mix of income earned in those jurisdictions. The tax rate is also affected by U.S. tax costs on foreign earnings, and by discrete items that may occur in any given year but are not consistent from year to year. The decrease in the Q2 2021 income tax rate from continuing operations, excluding discrete items, was primarily driven by a decrease in losses in a foreign jurisdiction that were excluded in calculating the quarterly income tax provision. The effective tax rate for the six months ended June 30, 2020 was significantly affected by a non-recurring tax adjustment due to non-deductible foreign exchange losses, which occurred in the first quarter of 2020.

Significant items that impacted the effective tax rate in the second quarter of 2021 and 2020 included the following (percentages reflect the effect of each item as a percentage of income before income taxes):

	Three months ended June 30,						Six months ended June 30,
	2021			2020			2021			2020
(in thousands, except percentages)	Tax amount	%		Tax amount	%		Tax amount	%		Tax amount	%
Continuing operations (excluding discrete items)	13,251	29.5	%	16,262	34.0	%	24,365	29.5	%	23,081	34.0	%
Exercise of U.S. stock options	(14)	—	%	—	—	%	(156)	(0.2)	%	—	—	%
Adjustments to prior period tax liabilities	22	—	%	879	1.8	%	(1,421)	(1.7)	%	767	1.1	%
Revaluation of deferred tax assets due to tax rate change	352	0.8	%	—	—	%	352	0.4	%	—	—	%
Provision for/resolution of tax audits and contingencies, net	—	—	%	(1,489)	(3.1)	%	278	0.3	%	(1,733)	(2.6)	%
Write-off of net operating losses related to tax audit	—	—	%	—	—	%	—	—	%	1,830	2.7	%
Tax effect of non-deductible foreign exchange loss on intercompany loan	—	—	%	(13)	(0.1)	%	—	—	%	3,656	5.4	%
Changes in valuation allowance	—	—	%	222	0.5	%	—	—	%	222	0.4	%
Other adjustments	(165)	(0.3)	%	(497)	(1.0)	%	68	0.2	%	(5)	—	%
Effective tax rate	13,446	30.0	%	15,364	32.1	%	23,486	28.5	%	27,818	41.0	%

For more information on income tax, see Note 6 to the Consolidated Financial Statements.

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Segment Results of Operations

Machine Clothing Segment

Machine Clothing accounted for 68% of our consolidated revenues during the six months of 2021. MC products are purchased primarily by manufacturers of paper and paperboard. We feel we are well-positioned in these markets, with high-quality, low-cost production in growth markets, substantially lower fixed costs in mature markets, and continued strength in new product development, technical product support, and manufacturing technology. Recent technological advances in paper machine clothing, while contributing to the papermaking efficiency of customers, have lengthened the useful life of many of our products and had an adverse impact on overall paper machine clothing demand. Additionally, we face pricing pressures in all of our markets.

The Company’s manufacturing and product platforms position us well to meet these shifting demands across product grades and geographic regions. Our strategy for meeting these challenges continues to be to grow share in all markets, with new products and technology, and to maintain our manufacturing footprint to align with global demand, while we offset the effects of inflation through continuous productivity improvement.

We have incurred significant restructuring charges in recent years as we reduced MC manufacturing capacity and administrative positions in various countries.

Review of Operations

	Three months ended June 30,						Six months ended June 30,
(in thousands, except percentages)	2021			2020			2021			2020
Net sales	$	159,921		$	153,433		$	308,127		$	290,035
Gross profit	84,597			83,612			160,990			156,264
% of Net sales	52.9		%	54.5		%	52.2		%	53.9		%
STG&R expenses	28,685			26,682			54,784			51,517
Operating income	55,902			56,543			106,264			103,718

Net Sales

Three month comparison

•Net sales increased by 4.2%.

•Changes in currency translation rates had the effect of increasing second-quarter 2021 sales by $5.3 million compared to the same period in 2020. That currency translation effect was mainly due to stronger Euro and Chinese Yuan Renminbi in the second quarter of 2021, compared to 2020.

•Excluding the effect of changes in currency translation rates, Net sales in MC increased 0.8% compared to the second quarter of 2020, principally due to growth in sales for packaging grades and engineered fabrics, partially offset by declines in other grades.

Six month comparison

•Net sales increased by 6.2%.

•Changes in currency translation rates had the effect of increasing 2021 sales by $10.1 million compared to the same period in 2020. That currency translation effect was principally due to stronger Euro and Chinese Yuan Renminbi in the first six months of 2021, compared to 2020.

•Excluding the effect of changes in currency translation rates, Net sales in MC increased 2.7% compared to 2020, as growth in sales for packaging grades and Engineered Fabrics partially offset the declines in other grades.

Gross Profit

Three month comparison

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The decrease in MC Gross profit margins was due to higher input and fixed costs, partially offset by improved absorption, in the second quarter of 2021.

Six month comparison

The decrease in MC Gross profit margins was due to an increase in production costs and lower cost absorption compared to the same period in 2020.

Operating Income

Three month comparison

The slight decrease in the second quarter of 2021 operating income, compared to the same period in 2020, was primarily due to a slight improvement in gross profit, partially offset by higher STG&R expenses.

Six month comparison

The increase in operating income in first half of 2021 was driven by higher gross profit, offset by higher STG&R expenses, compared to the same period in 2020.

Albany Engineered Composites Segment

The Albany Engineered Composites (AEC) segment, including Albany Safran Composites, LLC (ASC), in which our customer SAFRAN Group owns a 10 percent noncontrolling interest, provides highly engineered advanced composite structures to customers, primarily in the aerospace (both commercial and defense) industry. AEC’s largest program relates to CFM International’s LEAP engine. AEC, through ASC, is the exclusive supplier of advanced composite fan blades and cases for this program under a long-term supply contract. The LEAP engine is used on the Airbus A320neo and Boeing 737 MAX family of jets. Other significant AEC programs include components for the F-35, components for the CH-53K helicopter, fuselage frames for the Boeing 787, and the fan case for the GE9X engine.

Review of Operations

	Three months ended June 30,						Six months ended June 30,
(in thousands, except percentages)	2021			2020			2021			2020
Net sales	$	74,598		$	72,557		$	148,753		$	171,719
Gross profit	17,131			19,368			29,284			36,188
% of Net sales	23.0		%	26.7		%	19.7		%	21.1		%
STG&R expenses	10,014			8,821			19,140			18,018
Operating income	7,164			8,299			10,102			15,922

Net Sales

Three month comparison

The increase in Net sales was mainly due to higher sales in the LEAP and CH-53K programs, partially offset by a decline in sales in the Boeing 787 program.

Six month comparison

The decrease in Net sales was primarily due to lower sales in the Boeing 787 program.

Gross Profit

Three and six month comparison

30

The decrease in Gross profit was principally due to smaller impact from changes in the estimated profitability of long-term contracts.

Long-term contracts

AEC has contracts with certain customers, including its contract for the LEAP program, where revenue is determined by a cost-plus-fee agreement. Revenue earned under these arrangements accounted for approximately 35 percent of segment revenue for each of the first six months of 2021 and 40 percent for the same period of 2020. LEAP engines are currently used on the Boeing 737 MAX, Airbus A320neo and COMAC aircraft.

In addition, AEC has long-term contracts in which the selling price is fixed. In accounting for those contracts, we estimate the profit margin expected at the completion of the contract and recognize a pro-rata share of that profit during the course of the contract using a cost-to-cost approach. Changes in estimated contract profitability will affect revenue and gross profit when the change occurs, which could have a significant favorable or unfavorable effect on revenue and gross profit in any reporting period. For contracts with anticipated losses, a provision for the entire amount of the estimated remaining loss is charged against income in the period in which the loss becomes known. Contract losses are determined considering all direct and indirect contract costs, exclusive of any selling, general or administrative cost allocations, which are treated as period expenses. Expected losses on projects include losses on contract options that are probable of exercise, excluding profitable options that often follow.

Operating Income

Three and six month comparison

The decrease in Operating income was driven by lower gross profit and higher STG&R expenses, offset by lower restructuring expenses.

Liquidity and Capital Resources

Cash Flow Summary

	Six months ended June 30,
(in thousands)	2021		2020
Net income	$	59,050	$	40,043
Depreciation and amortization	37,133		36,024
Changes in working capital (a)	(921)		(57,804)
Changes in other noncurrent liabilities and deferred taxes	1,153		8,836
Other operating items	(775)		16,935
Net cash provided by/(used in) operating activities	95,640		44,034
Net cash used in investing activities	(23,124)		(22,017)
Net cash (used in)/provided by financing activities	(62,504)		(8,224)
Effect of exchange rate changes on cash and cash equivalents	2,002		(5,296)
(Decrease)/increase in cash and cash equivalents	12,014		8,497
Cash and cash equivalents at beginning of year	241,316		195,540
Cash and cash equivalents at end of period	$	253,330	$	204,037

(a)Includes Accounts receivable, Contract assets, Inventories, Accounts payable, and Accrued liabilities.

Operating activities

Cash flow provided by operating activities was $95.6 million in the first six months of 2021, compared to $44.0 million in the first six months of 2020. This improvement was due to improved working capital cash flows in AEC and an increase in consolidated Net income.

Cash paid for income taxes was $22.8 million and $16.5 million for the first six months of 2021 and 2020, respectively. The increase is primarily due to an increase in corporate income tax payments in Brazil, China and Switzerland related to prior year tax liabilities.

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At June 30, 2021, we had $253.3 million of cash and cash equivalents, of which $215.2 million was held by subsidiaries outside of the United States.

Investing and Financing Activities

Capital expenditures for the first six months were $23.1 million in 2021 and $22.0 million in 2020.

Dividends have been declared each quarter since the fourth quarter of 2001. Decisions with respect to whether a dividend will be paid, and the amount of the dividend, are made by the Board of Directors each quarter. Future cash dividends will also depend on debt covenants and on the Board’s assessment of our ability to generate sufficient cash flows.

Capital Resources

We finance our business activities primarily with cash generated from operations and borrowings, largely through our revolving credit agreement as discussed below. Our subsidiaries outside of the United States may also maintain working capital lines with local banks, but borrowings under such local facilities tend to be insignificant. The majority of our cash balance at June 30, 2021 was held by non-U.S. subsidiaries. Based on cash on hand and credit facilities, we anticipate that the Company has sufficient capital resources to operate for the foreseeable future. We were in compliance with all debt covenants as of June 30, 2021.

On October 27, 2020, we entered into a $700 million unsecured Four-Year Revolving Credit Facility Agreement (the “Credit Agreement”) which amended and restated the prior amended and restated $685 million Five-Year Revolving Credit Facility Agreement, which we had entered into on November 7, 2017 (the “Prior Agreement”). Under the Credit Agreement, $350 million of borrowings were outstanding as of June 30, 2021. The applicable interest rate for borrowings was LIBOR plus a spread, based on our leverage ratio at the time of borrowing. At the time of the last borrowing on June 30, 2021, the spread was 1.625%. The spread was based on a pricing grid, which ranged from 1.500% to 2.000%, based on our leverage ratio. Based on our maximum leverage ratio and our Consolidated EBITDA, and without modification to any other credit agreements, as of June 30, 2021, we would have been able to borrow an additional $350 million under the Agreement.

For more information, see Note 14 to the Consolidated Financial Statements.

Off-Balance Sheet Arrangements

As of June 30, 2021, we have no off-balance sheet arrangements required to be disclosed pursuant to Item 303(a)(4) of Regulation S-K.

Recent Accounting Pronouncements

The information set forth under Note 18 to the Consolidated Financial Statements.

Non-GAAP Measures

This Form 10-Q contains certain non-GAAP measures, including: Net sales, and percent change in Net sales, excluding the impact of currency translation effects (for each segment and on a consolidated basis); EBITDA and Adjusted EBITDA (for each segment and on a consolidated basis, represented in dollars or as a percentage of net sales); Net debt; and Adjusted earnings per share (or Adjusted EPS). Such items are provided because management believes that they provide additional useful information to investors regarding the Company’s operational performance.

Presenting Net sales and increases or decreases in Net sales, after currency effects are excluded, can give management and investors insight into underlying sales trends. EBITDA, Adjusted EBITDA and Adjusted EPS are performance measures that relate to the Company’s continuing operations. EBITDA, or net income with interest, taxes, depreciation, and amortization added back, is a common indicator of financial performance used, among other things, to analyze and compare core profitability between companies and industries because it eliminates effects due to differences in financing, asset bases and taxes. An understanding of the impact in a particular quarter of specific restructuring costs, former CEO termination costs, acquisition/integrations costs, currency revaluation, pension settlement/curtailment charges, inventory write-offs associated with discontinued businesses, or other gains and losses, on net income (absolute as well as on a per-share basis), operating income or EBITDA can give management and investors additional insight into core financial performance, especially when compared to quarters in which such items had a greater or lesser effect, or no effect. Restructuring expenses, while frequent in recent years, are reflective

32

of significant reductions in manufacturing capacity and associated headcount in response to shifting markets, and not of the profitability of the business going forward as restructured.

Net sales, or percent changes in Net sales, excluding currency rate effects, are calculated by converting amounts reported in local currencies into U.S. dollars at the exchange rate of a prior period. These amounts are then compared to the U.S. dollar amount as reported in the current period. The Company calculates EBITDA by removing the following from Net income: Interest expense net, Income tax expense, and Depreciation and amortization expense. Adjusted EBITDA is calculated by: adding to EBITDA costs associated with restructuring, former CEO termination costs, and inventory write-offs associated with discontinued businesses; adding charges and credits related to pension plan settlements and curtailments; adding (or subtracting) revaluation losses (or gains); subtracting (or adding) gains (or losses) from the sale of buildings or investments; adding acquisition/integration costs and subtracting (or adding) Income (or loss) attributable to the non-controlling interest in Albany Safran Composites (ASC). Adjusted earnings per share (Adjusted EPS) is calculated by adding to (or subtracting from) net income attributable to the Company per share, on an after-tax basis: restructuring charges; former CEO severance costs; inventory write-offs associated with discontinued businesses; charges and credits related to pension settlements and curtailments; foreign currency revaluation losses (or gains); and acquisition-related expenses.

EBITDA, Adjusted EBITDA, and Adjusted earnings per share as defined by the Company may not be similar to similarly named measures of other companies. Such measures are not considered measurements under GAAP, and should be considered in addition to, but not as substitutes for, the information contained in the Company’s statements of income.

The following tables show the calculation of EBITDA and Adjusted EBITDA:

Three months ended June 30, 2021
(in thousands)	Machine Clothing		Albany Engineered Composites		Corporate expenses and other		Total Company
Operating income/(loss) (GAAP)	$	55,902	$	7,164	$	(13,100)	$	49,966
Interest, taxes, other income/(expense)	—		—		(18,526)		(18,526)
Net income/(loss) (GAAP)	55,902		7,164		(31,626)		31,440
Interest expense, net	—		—		4,218		4,218
Income tax expense	—		—		13,446		13,446
Depreciation and amortization expense	5,138		12,194		919		18,251
EBITDA (non-GAAP)	61,040		19,358		(13,043)		67,355
Restructuring expenses, net	10		(48)		29		(9)
Foreign currency revaluation (gains)/losses	1,908		(244)		174		1,838
Acquisition/integration costs	—		300		—		300
Pre-tax (income) attributable to noncontrolling interest	—		(65)		—		(65)
Adjusted EBITDA (non-GAAP)	$	62,958	$	19,301	$	(12,840)	$	69,419

33

Three months ended June 30, 2020
(in thousands)	Machine Clothing		Albany Engineered Composites		Corporate expenses and other		Total Company
Operating income/(loss) (GAAP)	$	56,543	$	8,299	$	(12,115)	$	52,727
Interest, taxes, other income/(expense)	—		—		(20,278)		(20,278)
Net income/(loss) (GAAP)	56,543		8,299		(32,393)		32,449
Interest expense, net	—		—		3,823		3,823
Income tax expense	—		—		15,364		15,364
Depreciation and amortization expense	4,981		11,971		1,002		17,954
EBITDA (non-GAAP)	61,524		20,270		(12,204)		69,590
Restructuring expenses, net	388		2,248		201		2,837
Foreign currency revaluation (gains)/losses	973		30		20		1,023
Acquisition/integration costs	—		278		—		278
Pre-tax (income) attributable to noncontrolling interest	—		(58)		—		(58)
Adjusted EBITDA (non-GAAP)	$	62,885	$	22,768	$	(11,983)	$	73,670

Six months ended June 30, 2021
(in thousands)	Machine Clothing		Albany Engineered Composites		Corporate expenses and other		Total Company
Operating income/(loss) (GAAP)	$	106,264	$	10,102	$	(24,581)	$	91,785
Interest, taxes, other income/(expense)	—		—		(32,735)		(32,735)
Net income/(loss) (GAAP)	106,264		10,102		(57,316)		59,050
Interest expense, net	—		—		7,787		7,787
Income tax expense	—		—		23,486		23,486
Depreciation and amortization expense	10,258		25,061		1,814		37,133
EBITDA (non-GAAP)	116,522		35,163		(24,229)		127,456
Restructuring expenses, net	(58)		41		60		43
Foreign currency revaluation (gains)/losses	1,415		332		341		2,088
Acquisition/integration costs	—		614		—		614
Pre-tax (income) attributable to noncontrolling interest	—		(111)		—		(111)
Adjusted EBITDA (non-GAAP)	$	117,879	$	36,039	$	(23,828)	$	130,090

34

Six months ended June 30, 2020
(in thousands)	Machine Clothing		Albany Engineered Composites		Corporate expenses and other		Total Company
Operating income/(loss) (GAAP)	$	103,718	$	15,922	$	(27,319)	$	92,321
Interest, taxes, other income/(expense)	—		—		(52,278)		(52,278)
Net income/(loss) (GAAP)	103,718		15,922		(79,597)		40,043
Interest expense, net	—		—		7,800		7,800
Income tax expense	—		—		27,818		27,818
Depreciation and amortization expense	10,068		23,956		2,000		36,024
EBITDA (non-GAAP)	113,786		39,878		(41,979)		111,685
Restructuring expenses, net	1,030		2,248		201		3,479
Foreign currency revaluation (gains)/losses	(2,688)		727		14,850		12,889
Former CEO termination costs	—		—		2,742		2,742
Acquisition/integration costs	—		576		—		576
Pre-tax loss attributable to noncontrolling interest	—		1,434		—		1,434
Adjusted EBITDA (non-GAAP)	$	112,128	$	44,863	$	(24,186)	$	132,805

The Company discloses certain income and expense items on a per-share basis. The Company believes that such disclosures provide important insight into the underlying quarterly earnings and are financial performance metrics commonly used by investors. The Company calculates the quarterly per-share amount for items included in continuing operations by using the income tax rate based on either the tax rates in specific countries or the estimated tax rate applied to total company results. The after-tax amount is then divided by the weighted-average number of shares outstanding for each period. Year-to-date earnings per-share effects are determined by adding the amounts calculated at each reporting period.

The following tables show the earnings per share effect of certain income and expense items:

Three months ended June 30, 2021 (in thousands, except per share amounts)	Pre tax Amounts		Tax Effect		After tax Effect		Per share Effect
Restructuring expenses, net	$	(9)	$	(3)	$	(6)	$	0.00
Foreign currency revaluation (gains)/losses	1,838		781		1,057		0.03
Acquisition/integration costs	300		90		210		0.01

Three months ended June 30, 2020 (in thousands, except per share amounts)	Pre tax Amounts		Tax Effect		After tax Effect		Per share Effect
Restructuring expenses, net	$	2,837	$	953	$	1,884	$	0.06
Foreign currency revaluation (gains)/losses	1,023		536		487		0.02
Acquisition/integration costs	278		83		195		0.01

35

Six months ended June 30, 2021 (in thousands, except per share amounts)	Pre tax Amounts		Tax Effect		After tax Effect		Per share Effect
Restructuring expenses, net	$	43	$	12	$	31	$	0.00
Foreign currency revaluation (gains)/losses	2,088		646		1,442		0.04
Acquisition/integration costs	614		184		430		0.02

Six months ended June 30, 2020 (in thousands, except per share amounts)	Pre tax Amounts		Tax Effect		After tax Effect		Per share Effect
Restructuring expenses, net	$	3,479	$	1,145	$	2,334	$	0.07
Foreign currency revaluation (gains)/losses (a)	12,889		(1,009)		13,898		0.44
Former CEO termination costs	2,742		713		2,029		0.06
Acquisition/integration costs	576		172		404		0.02

(a)In Q1 2020, the company incurred losses of approximately $17 million in jurisdictions where it cannot record a tax benefit from the losses, which results in an unusual relationship between the pre-tax and after-tax amounts.

The following table provides a reconciliation of Earnings per share to Adjusted Earnings per share:

	Three months ended June 30,				Six months ended June 30,
Per share amounts (Basic)	2021		2020		2021		2020
Earnings per share (GAAP)	$	0.97	$	1.00	$	1.82	$	1.28
Adjustments, after tax:
Restructuring expenses, net	—		0.06		—		0.07
Foreign currency revaluation (gains)/losses	0.03		0.02		0.04		0.44
Former CEO termination costs	—		—		—		0.06
Acquisition/integration costs	0.01		0.01		0.02		0.02
Adjusted Earnings per share (non-GAAP)	$	1.01	$	1.09	$	1.88	$	1.87

Net debt is, in the opinion of the Company, helpful to investors wishing to understand what the Company’s debt position would be if all available cash were applied to pay down indebtedness. The Company calculates Net debt by subtracting Cash and cash equivalents from Total debt. Total debt is calculated by adding Long-term debt, Current maturities of long-term debt, and Notes and loans payable, if any.

The following table contains the calculation of net debt:

(in thousands)	June 30, 2021		March 31, 2021		December 31, 2020
Current maturities of long-term debt	$	—	$	2	$	9
Long-term debt	350,000		384,000		398,000
Total debt	350,000		384,002		398,009
Cash and cash equivalents	253,330		237,871		241,316
Net debt (non GAAP)	$	96,670	$	146,131	$	156,693

Item 3. Quantitative and Qualitative Disclosures about Market Risk

For discussion of our exposure to market risk, refer to “Quantitative and Qualitative Disclosures about Market Risk”, which is included as an exhibit to this Form 10-Q.

Item 4. Controls and Procedures

a) Disclosure controls and procedures.

The principal executive officer and principal financial officer, based on their evaluation of disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of the end of the period covered by this

36

Quarterly Report on Form 10-Q, have concluded that the Company’s disclosure controls and procedures are effective for ensuring that information required to be disclosed in the reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in filed or submitted reports is accumulated and communicated to the Company’s management, including its principal executive officer and principal financial officer as appropriate, to allow timely decisions regarding required disclosure.

(b) Changes in internal control over financial reporting.

There was no change in the Company’s internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended) during the last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II – OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS

The information set forth above under Note 16 in Item 1, “Notes to Consolidated Financial Statements.”

Item 1A. Risk Factors

There have been no material changes in risks since December 31, 2020. For discussion of risk factors, refer to Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2020.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

We made no share purchases during the second quarter of 2021. We remain authorized by the Board of Directors to purchase up to 2 million shares of our Class A Common Stock.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not Applicable.

Item 5. Other Information

None.

Item 6. Exhibits

Exhibit No.	Description
31.1	Certification of the Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act.
31.2	Certification of the Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act.
32.1	Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code).
99.1	Quantitative and qualitative disclosures about market risks as reported at June 30, 2021.
101.INS	XBRL Instance Document- the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH	XBRL Taxonomy Extension Schema Document.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.
104	Cover page formatted as Inline XBRL and contained in Exhibit 101

37

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		ALBANY INTERNATIONAL CORP.
		(Registrant)
Date: July 28, 2021	By	/s/ Stephen M. Nolan
		Stephen M. Nolan Chief Financial Officer and Treasurer (Principal Financial Officer)

38

EX-31.1

EXHIBIT (31.1)

CERTIFICATION PURSUANT TO

RULE 13A-14 OF THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, A. William Higgins, certify that:

1.I have reviewed this report on Form 10-Q of Albany International Corp.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: July 28, 2021	By	/s/ A. William Higgins
		A. William Higgins President and Chief Executive Officer (Principal Executive Officer)

EX-31.2

EXHIBIT (31.2)

CERTIFICATION PURSUANT TO

RULE 13A-14 OF THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Stephen M. Nolan, certify that:

1.I have reviewed this report on Form 10-Q of Albany International Corp.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: July 28, 2021	By	/s/ Stephen M. Nolan
		Stephen M. Nolan Chief Financial Officer and Treasurer (Principal Financial Officer)

EX-32.1

EXHIBIT (32.1)

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Albany International Corp. (the Company) on Form 10-Q for the period ending June 30, 2021, as filed with the Securities and Exchange Commission on the date hereof (the Report), A. William Higgins, President and Chief Executive Officer, and Stephen M. Nolan, Chief Financial Officer and Treasurer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities and Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: July 28, 2021	/s/ A. William Higgins
	A. William Higgins President and Chief Executive Officer (Principal Executive Officer)
	/s/ Stephen M. Nolan
	Stephen M. Nolan Chief Financial Officer and Treasurer (Principal Financial Officer)

EX-99.1

EXHIBIT (99.1)

MARKET RISK SENSITIVITY – As of June 30, 2021

We have market risk with respect to foreign currency exchange rates and interest rates. The market risk is the potential loss arising from adverse changes in these rates as discussed below.

Foreign Currency Exchange Rate Risk

We have manufacturing plants and sales transactions worldwide and therefore are subject to foreign currency risk. This risk is composed of both potential losses from the translation of foreign currency financial statements and the remeasurement of foreign currency transactions. To manage this risk, we periodically enter into forward exchange contracts either to hedge the net assets of a foreign investment or to provide an economic hedge against future cash flows. The total net assets of non-U.S. operations and long-term intercompany loans denominated in nonfunctional currencies subject to potential loss amount to approximately $656.2 million. The potential loss in fair value resulting from a hypothetical 10% adverse change in quoted foreign currency exchange rates amounts to $65.6 million. Furthermore, related to foreign currency transactions, we have exposure to various nonfunctional currency balances totaling $79.8 million. This amount includes, on an absolute basis, exposures to assets and liabilities held in currencies other than our local entity’s functional currency. On a net basis, we had $40.5 million of foreign currency assets as of June 30, 2021. As currency rates change, these nonfunctional currency balances are revalued, and the corresponding adjustment is recorded in the income statement. A hypothetical change of 10% in currency rates could result in an adjustment to the income statement of approximately $4.1 million. Actual results may differ.

Interest Rate Risk

We are exposed to interest rate fluctuations with respect to our variable rate debt, depending on general economic conditions.

On June 30, 2021, we had no variable rate debt.

To manage interest rate risk, we may periodically enter into interest rate swap agreements to effectively fix the interest rates on variable debt to a specific rate for a period of time. (See Note 15 to the Consolidated Financial Statements in Item 1, which is incorporated herein by reference).

XML

Cover page - shares shares in Millions	6 Months Ended
	Jun. 30, 2021	Jul. 16, 2021
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
Document Transition Report	false
Entity File Number	1-10026
Entity Registrant Name	ALBANY INTERNATIONAL CORP.
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	216 Airport Drive
Entity Address, City or Town	Rochester
Entity Address, State or Province	NH
Entity Tax Identification Number	14-0462060
Entity Address, Postal Zip Code	03867
City Area Code	603
Local Phone Number	330-5850
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0000819793
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Amendment Flag	false
Common Class A
Entity Information [Line Items]
Title of 12(b) Security	Class A Common Stock, $0.001 par value per share
Trading Symbol	AIN
Security Exchange Name	NYSE
Entity Common Stock, Shares Outstanding		30.7
Common Class B
Entity Information [Line Items]
Title of 12(b) Security	Class B Common Stock, $0.001 par value per share
Trading Symbol	AIN
Security Exchange Name	NYSE
Entity Common Stock, Shares Outstanding		1.6

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Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Statement [Abstract]
Net sales	$ 234,519	$ 225,990	$ 456,880	$ 461,754
Cost of goods sold	132,791	123,010	266,606	269,302
Gross profit	101,728	102,980	190,274	192,452
Selling, general, and administrative expenses	42,009	38,543	79,203	78,649
Technical and research expenses	9,762	8,873	19,243	18,003
Restructuring expenses, net	(9)	2,837	43	3,479
Operating income	49,966	52,727	91,785	92,321
Interest expense, net	4,218	3,823	7,787	7,800
Other expense/(income), net	862	1,091	1,462	16,660
Income before income taxes	44,886	47,813	82,536	67,861
Income tax expense	13,446	15,364	23,486	27,818
Net income	31,440	32,449	59,050	40,043
Net income/(loss) attributable to the noncontrolling interest	43	95	70	(1,420)
Net income attributable to the Company	$ 31,397	$ 32,354	$ 58,980	$ 41,463
Basic earnings per share (in dollars per share)	$ 0.97	$ 1.00	$ 1.82	$ 1.28
Diluted earnings per share (in dollars per share)	$ 0.97	$ 1.00	$ 1.82	$ 1.28
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract]
Weighted average number of shares used in calculating basic net income per share (in shares)	32,375	32,328	32,363	32,320
Weighted average number of shares used in calculating diluted net income per share (in shares)	32,422	32,336	32,411	32,328
Dividends declared per share, Class A and Class B (in dollars per share)	$ 0.20	$ 0.19	$ 0.40	$ 0.38

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Consolidated Statements of Comprehensive Income/(Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 31,440	$ 32,449	$ 59,050	$ 40,043
Other comprehensive income/(loss), before tax:
Foreign currency translation and other adjustments	13,651	8,753	(1,788)	(16,202)
Pension/postretirement settlements and curtailments	0	378	0	378
Amortization of pension liability adjustments:
Amortization of prior service credit	(1,118)	(1,114)	(2,237)	(2,228)
Net actuarial loss	1,108	1,232	2,217	2,476
Payments and amortization related to interest rate swaps included in earnings	1,770	1,116	3,246	1,523
Derivative valuation adjustment	125	(1,366)	(353)	(12,130)
Income taxes related to items of other comprehensive income/(loss):
Pension/postretirement settlements and curtailments	0	(113)	0	(113)
Amortization of prior service cost	335	278	671	557
Amortization of net actuarial loss	(332)	(308)	(665)	(619)
Payments and amortization related to interest rate swaps included in earnings	(457)	(286)	(838)	(390)
Derivative valuation adjustment	(44)	349	91	3,102
Comprehensive income/(loss)	46,478	41,368	59,394	16,397
Comprehensive income/(loss) attributable to the noncontrolling interest	226	247	43	(1,159)
Comprehensive income/(loss) attributable to the Company	$ 46,252	$ 41,121	$ 59,351	$ 17,556

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Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Assets, Current [Abstract]
Cash and cash equivalents	$ 253,330	$ 241,316
Accounts receivable, net	190,937	188,423
Contract assets, net	113,225	139,289
Inventories	120,665	110,478
Income taxes prepaid and receivable	6,236	5,940
Prepaid expenses and other current assets	33,089	31,830
Total current assets	717,482	717,276
Property, plant and equipment, net	438,392	448,554
Intangibles, net	42,998	46,869
Goodwill	185,293	187,553
Deferred income taxes	33,102	38,757
Noncurrent receivables, net	34,466	36,265
Other assets	74,907	74,662
Total assets	1,526,640	1,549,936
Liabilities, Current [Abstract]
Accounts payable	55,348	49,173
Accrued liabilities	108,007	125,459
Current maturities of long-term debt	0	9
Income taxes payable	12,233	16,222
Total current liabilities	175,588	190,863
Long-term debt	350,000	398,000
Other noncurrent liabilities	121,333	130,424
Deferred taxes and other liabilities	11,660	10,784
Total liabilities	658,581	730,071
SHAREHOLDERS' EQUITY
Preferred stock	0	0
Additional paid in capital	435,230	433,696
Retained earnings	816,778	770,746
Accumulated items of other comprehensive income:
Translation adjustments	(85,384)	(83,203)
Pension and postretirement liability adjustments	(39,282)	(39,661)
Derivative valuation adjustment	(7,398)	(9,544)
Treasury stock	(255,768)	(256,009)
Total Company shareholders' equity	864,217	816,066
Noncontrolling interest	3,842	3,799
Total equity	868,059	819,865
Total liabilities and shareholders' equity	1,526,640	1,549,936
Common Class A
SHAREHOLDERS' EQUITY
Common stock, par value	39	39
Common Class B
SHAREHOLDERS' EQUITY
Common stock, par value	$ 2	$ 2

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Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2021	Dec. 31, 2020
Preferred stock, par or stated value per share (in dollars per share)	$ 5.00	$ 5.00
Preferred stock, shares authorized (in shares)	2,000,000	2,000,000
Preferred stock, shares issued (in shares)	0	0
Common Class A
Common stock, par or stated value per share (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares, issued (in shares)	39,142,483	39,115,405
Treasury stock, shares (in shares)	8,379,804	8,391,011
Common Class B
Common stock, par or stated value per share (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	25,000,000	25,000,000
Common stock, shares, issued (in shares)	1,617,998	1,617,998
Common stock, shares, outstanding (in shares)	1,617,998	1,617,998

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Net Cash Provided by (Used in) Operating Activities, Continuing Operations [Abstract]
Net income	$ 31,440	$ 32,449	$ 59,050	$ 40,043
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	15,971	15,498	32,560	31,004
Amortization	2,280	2,456	4,573	5,020
Change in deferred taxes and other liabilities	974	3,543	5,416	9,360
Impairment of property, plant and equipment	353	36	538	233
Non-cash interest expense	265	20	310	171
Compensation and benefits paid or payable in Class A Common Stock	1,639	1,198	1,626	516
Provision for credit losses from uncollected receivables and contract assets	27	114	(83)	1,769
Foreign currency remeasurement (gain)/loss on intercompany loans	(723)	194	(1,031)	15,581
Fair value adjustment on foreign currency options	1	0	140	64
Changes in operating assets and liabilities that provided/(used) cash:
Accounts receivable	(129)	11,511	(3,365)	8,117
Contract assets	9,539	(11,169)	25,643	(20,009)
Inventories	(1,821)	(4,878)	(10,384)	(24,628)
Prepaid expenses and other current assets	(606)	(301)	(1,505)	(2,457)
Income taxes prepaid and receivable	1,156	29	(309)	(208)
Accounts payable	(4,580)	(9,337)	4,608	(10,383)
Accrued liabilities	2,062	4,171	(17,423)	(10,901)
Income taxes payable	4,121	5,526	(3,956)	1,955
Noncurrent receivables	1,099	628	1,587	397
Other noncurrent liabilities	(2,166)	(464)	(4,263)	(524)
Other, net	1,051	(552)	1,908	(1,086)
Net cash provided by operating activities	61,953	50,672	95,640	44,034
INVESTING ACTIVITIES
Purchases of property, plant and equipment	(10,302)	(9,212)	(22,836)	(21,971)
Purchased software	(286)	0	(288)	(46)
Net cash used in investing activities	(10,588)	(9,212)	(23,124)	(22,017)
FINANCING ACTIVITIES
Proceeds from borrowings	0	0	8,000	70,000
Principal payments on debt	(34,002)	(56,005)	(56,009)	(59,011)
Principal payments on finance lease liabilities	(355)	(329)	(704)	(6,463)
Taxes paid in lieu of share issuance	0	0	(998)	(490)
Proceeds from options exercised	21	20	149	20
Dividends paid	(6,474)	(6,141)	(12,942)	(12,280)
Net cash used in financing activities	(40,810)	(62,455)	(62,504)	(8,224)
Effect of exchange rate changes on cash and cash equivalents	4,904	2,352	2,002	(5,296)
Increase/(decrease) in cash and cash equivalents	15,459	(18,643)	12,014	8,497
Cash and cash equivalents at beginning of period	237,871	222,680	241,316	195,540
Cash and cash equivalents at end of period	$ 253,330	$ 204,037	$ 253,330	$ 204,037

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Significant Accounting Policies

6 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

Significant Accounting Policies

Significant Accounting Policies

Basis of Presentation

In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary for a fair presentation of results for such periods. Albany International Corp. (Albany, the Registrant, the Company, we, us, or our) consolidates the financial results of its subsidiaries for all periods presented. The results for any interim period are not necessarily indicative of results for the full year.

The preparation of financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in Albany International Corp.’s Consolidated Financial Statements and accompanying Notes. Actual results could differ materially from those estimates.

The information included in this Quarterly Report on Form 10-Q should be read in conjunction with Albany International Corp.’s Annual Report on Form 10-K for the year ended December 31, 2020.

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Reportable Segments and Revenue Recognition

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Reportable Segments and Revenue Recognition

Reportable Segments and Revenue Recognition

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 Machine Clothing (“MC”) segment supplies permeable and impermeable belts used in the manufacture of paper, paperboard, tissue and towel, 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.

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. AEC net sales to Safran were $54.0 million and $57.0 million in the first six months of 2021 and 2020, respectively. The total of Accounts receivable, Contract assets and Noncurrent receivables due from Safran amounted to $105.1 million and $127.1 million as of June 30, 2021 and December 31, 2020, respectively. Other significant programs 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:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Net sales
Machine Clothing	$	159,921	$	153,433	$	308,127	$	290,035
Albany Engineered Composites	74,598		72,557		148,753		171,719
Consolidated total	$	234,519	$	225,990	$	456,880	$	461,754
Operating income/(loss)
Machine Clothing	$	55,902	$	56,543	$	106,264	$	103,718
Albany Engineered Composites	7,164		8,299		10,102		15,922
Corporate expenses	(13,100)		(12,115)		(24,581)		(27,319)
Operating income	$	49,966	$	52,727	$	91,785	$	92,321
Reconciling items:
Interest income	(401)		(348)		(930)		(795)
Interest expense	4,619		4,171		8,717		8,595
Other expense/(income), net	862		1,091		1,462		16,660
Income before income taxes	$	44,886	$	47,813	$	82,536	$	67,861

There were no material changes to total assets of the reportable segments in the first six months of 2021.

The table below presents restructuring costs by reportable segment (also see Note 4):

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Machine Clothing	$	10	$	388	$	(58)	$	1,030
Albany Engineered Composites	(48)		2,248		41		2,248
Corporate expenses	29		201		60		201
Total	$	(9)	$	2,837	$	43	$	3,479

Products and services provided under long-term contracts represent a significant portion of sales in the Albany Engineered Composites segment and we account for these contracts using the percentage of completion (actual cost to estimated cost) method. That method requires significant judgment and estimation, which could be considerably different if the underlying circumstances were to change. When adjustments in estimated contract revenues or costs are required, any changes from prior estimates are included in earnings in the period the change occurs. Changes in the estimated profitability of long-term contracts could be caused by increases or decreases in the contract value, revisions to customer delivery requirements, updated labor or overhead rates, factors affecting the supply chain, changes in the evaluation of contract risks and opportunities, or other factors. Changes in the estimated profitability of long-term contracts increased operating income by $4.3 million and $3.7 million for the second quarter and first half of 2021, respectively. Adjustments in the estimated profitability of long-term contracts increased operating income by $7.4 million and $6.4 million for the second quarter and first half of 2020, respectively.

We disaggregate revenue earned from contracts with customers for each of our business segments and product groups based on the timing of revenue recognition, and groupings used for internal review purposes.

The following table disaggregates revenue for each product group by timing of revenue recognition:

	Three months ended June 30, 2021
(in thousands)	Point in Time Revenue Recognition		Over Time Revenue Recognition		Total
Machine Clothing	$	159,056	$	865	$	159,921
Albany Engineered Composites
ASC	—		26,170		26,170
Other AEC	4,432		43,996		48,428
Total Albany Engineered Composites	4,432		70,166		74,598
Total revenue	$	163,488	$	71,031	$	234,519

	Six months ended June 30, 2021
(in thousands)	Point in Time Revenue Recognition		Over Time Revenue Recognition		Total
Machine Clothing	$	306,397	$	1,730	$	308,127
Albany Engineered Composites
ASC	—		53,254		53,254
Other AEC	8,312		87,187		95,499
Total Albany Engineered Composites	8,312		140,441		148,753
Total revenue	$	314,709	$	142,171	$	456,880

	Three months ended June 30, 2020
(in thousands)	Point in Time Revenue Recognition		Over Time Revenue Recognition		Total
Machine Clothing	$	152,585	$	848	$	153,433
Albany Engineered Composites
ASC	—		17,576		17,576
Other AEC	4,143		50,838		54,981
Total Albany Engineered Composites	4,143		68,414		72,557
Total revenue	$	156,728	$	69,262	$	225,990

	Six months ended June 30, 2020
(in thousands)	Point in Time Revenue Recognition		Over Time Revenue Recognition		Total
Machine Clothing	$	288,339	$	1,696	$	290,035
Albany Engineered Composites
ASC	—		55,470		55,470
Other AEC	10,463		105,786		116,249
Total Albany Engineered Composites	10,463		161,256		171,719
Total revenue	$	298,802	$	162,952	$	461,754

The following table disaggregates MC segment revenue by significant product groupings (paper machine clothing (PMC) and engineered fabrics), and, for PMC, the geographical region to which the paper machine clothing was sold:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Americas PMC	$	82,343	$	81,225	$	155,645	$	154,902
Eurasia PMC	55,900		54,166		111,043		99,297
Engineered Fabrics	21,678		18,042		41,439		35,836
Total Machine Clothing Net sales	$	159,921	$	153,433	$	308,127	$	290,035

As permitted by ASC 606, we only disclose the value of unsatisfied performance obligations for contracts with an original expected duration of greater than one year. Contracts in the MC segment are generally for periods of less than a year. Most contracts in the AEC segment are short duration firm-fixed-price orders representing performance obligations with an original maturity of less than one year. Remaining performance obligations on contracts that had an original duration of greater than one year totaled $149 million and $85 million as of June 30, 2021 and 2020, respectively, and related primarily to firm contracts in the AEC segment. Of the remaining performance obligations as of June 30, 2021, we expect to recognize as revenue approximately $48 million during 2021, $62 million during 2022, $24 million during 2023, and the remainder during 2024.

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Pensions and Other Postretirement Benefit Plans

6 Months Ended

Jun. 30, 2021

Retirement Benefits [Abstract]

Pensions and Other Postretirement Benefit Plans

Pensions and Other Postretirement Benefit Plans

The Company has defined benefit pension plans covering certain U.S. and non-U.S. employees. The Company also provides certain postretirement benefits to retired employees in the U.S. and Canada. The Company accrues the cost of providing these benefits during the active service period of the employees.

The composition of the net periodic benefit cost for the six months ended June 30, 2021 and 2020, was as follows:

	Pension plans				Other postretirement benefits
(in thousands)	2021		2020		2021		2020
Components of net periodic benefit cost:
Service cost	$	1,090	$	1,148	$	66	$	100
Interest cost	2,674		3,071		551		857
Expected return on assets	(3,211)		(3,415)		—		—
Settlement	—		145		—		—
Curtailment	—		233		—		—
Amortization of prior service cost/(credit)	7		16		(2,244)		(2,244)
Amortization of net actuarial loss	1,087		1,180		1,130		1,296
Net periodic benefit cost	$	1,647	$	2,378	$	(497)	$	9

The amount of net periodic benefit cost is determined at the beginning of each year and generally only varies from quarter to quarter when a significant event occurs, such as a curtailment or a settlement. There were no such events in the first six months of 2021. In the second quarter of 2020, the Company recorded expense of $0.4 million related to curtailments and settlements.

Service cost for defined benefit pension and postretirement plans are reported in the same line item as other compensation costs arising from services rendered by the pertinent employees during the period. Other components of net periodic benefit cost are included in the line item Other (income)/expense, net in the Consolidated Statements of Income.

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Restructuring

6 Months Ended

Jun. 30, 2021

Restructuring and Related Activities [Abstract]

Restructuring

Restructuring

Restructuring costs in the first six months of 2021 were not significant. Restructuring costs in the first six months of 2020 were related to reductions in workforce at various AEC locations, principally in the United States, as well as related to discontinued operations at the Machine Clothing production facility in Sélestat, France. Since 2017, we have recorded $13.9 million of restructuring charges related to this action. There were no charges related to the impairment of assets for the periods presented.

The following table summarizes charges reported in the Consolidated Statements of Income under “Restructuring expenses, net”:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Machine Clothing	$	10	$	388	$	(58)	$	1,030
Albany Engineered Composites	(48)		2,248		41		2,248
Corporate expenses	29		201		60		201
Total	$	(9)	$	2,837	$	43	$	3,479

The table below presents the year-to-date changes in restructuring liabilities for 2021 and 2020, all of which are related to termination and other costs:

(in thousands)	December 31, 2020		Restructuring charges accrued		Payments		Currency translation /other		June 30, 2021
Total termination and other costs	$	2,195	$	43	$	(1,485)	$	11	$	764

(in thousands)	December 31, 2019		Restructuring charges accrued		Payments		Currency translation /other		June 30, 2020
Total termination and other costs	$	2,042	$	3,479	$	(1,410)	$	(5)	$	4,106

We expect that approximately $0.6 million of Accrued liabilities for restructuring at June 30, 2021 will be paid within one year and approximately $0.2 million will be paid the following year.

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Other (Income)/Expense, net

6 Months Ended

Jun. 30, 2021

Other Income and Expenses [Abstract]

Other (Income)/Expense, net

Other (Income)/Expense, net

The components of Other (Income)/Expense, net are:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Currency transaction (gains)/losses	$	175	$	17	$	341	$	14,851
Bank fees and amortization of debt issuance costs	104		93		210		168
Components of net periodic pension and postretirement cost other than service	(4)		754		(6)		1,139
Other	587		227		917		502
Total	$	862	$	1,091	$	1,462	$	16,660

Other (income)/expense, net included losses related to the revaluation of nonfunctional-currency balances of $0.3 million for the first six months of 2021, compared to losses of $14.9 million for the first six months of 2020, which principally resulted from an intercompany demand loan payable by a Mexican subsidiary. As a result of changes in business conditions that occurred in the first quarter of 2020, loan repayments on that intercompany loan are not expected in the foreseeable future and, beginning April 1, 2020, the revaluation effects are recorded in Other comprehensive income.

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Income Taxes

6 Months Ended

Jun. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The following table presents components of income tax expense for the three and six months ended June 30, 2021 and 2020:

	Three months ended June 30,				Six months ended June 30,
(in thousands, except percentages)	2021		2020		2021		2020
Income tax based on income from continuing operations (1)	$	13,251	$	16,262	$	24,583	$	23,571
Provision for change in estimated tax rate	(218)		(490)		(218)		(490)
Income tax before discrete items	13,033		15,772		24,365		23,081
Discrete tax expense:
Exercise of U.S. stock options	(14)		—		(156)		—
Adjustments to prior period tax liabilities	22		879		(1,421)		767
Revaluation of deferred tax assets due to tax rate change	352		—		352		—
Provision for/resolution of tax audits and contingencies, net	—		(1,489)		278		(1,733)
Write-off of net operating losses related to tax audit	—		—		—		1,830
Tax effect of non-deductible foreign exchange loss on intercompany loan	—		(13)		—		3,656
Creation of valuation allowance	—		222		—		222
Other	53		(7)		68		(5)
Total income tax expense	$	13,446	$	15,364	$	23,486	$	27,818
(1) Calculated at estimated tax rates of 29.5% and 34.0%, respectively

Income tax expense for the quarter was computed in accordance with ASC 740-270, Income Taxes – Interim Reporting. Under this method, loss jurisdictions, which cannot recognize a tax benefit with regard to their generated losses, are excluded from the annual effective tax rate (AETR) calculation and their taxes will be recorded discretely in each quarter.

In the second quarter of 2020, the Company recorded a net tax benefit of $1.5 million as a result of a US state tax audit settlement; the Company also recorded a net deferred tax expense of $1.0 million due to an adjustment of net operating losses related to settled audits. In the first quarter of 2020, the Company recorded a $1.8 million out-of-period charge related to developments in ongoing tax audits, which resulted in a corresponding decrease in deferred tax assets.

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Earnings Per Share

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

The amounts used in computing earnings per share and the weighted average number of shares of potentially dilutive securities are as follows:

	Three months ended June 30,				Six months ended June 30,
(in thousands, except market price and earnings per share)	2021		2020		2021		2020
Net income attributable to the Company	$	31,397	$	32,354	$	58,980	$	41,463
Weighted average number of shares:
Weighted average number of shares used in calculating basic net income per share	32,375		32,328		32,363		32,320
Effect of dilutive stock-based compensation plans	47		8		48		8
Weighted average number of shares used in calculating diluted net income per share	32,422		32,336		32,411		32,328
Average market price of common stock used for calculation of dilutive shares	$	87.53	$	54.08	$	83.48	$	59.73
Net income attributable to the Company per share:
Basic	$	0.97	$	1.00	$	1.82	$	1.28
Diluted	$	0.97	$	1.00	$	1.82	$	1.28

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Accumulated Other Comprehensive Income (AOCI)

6 Months Ended

Jun. 30, 2021

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income (AOCI)

Accumulated Other Comprehensive Income (AOCI)

The table below presents changes in the components of AOCI for the period December 31, 2020 to June 30, 2021:

(in thousands)	Translation adjustments		Pension and postretirement liability adjustments		Derivative adjustment		Total Other Comprehensive Income
December 31, 2020	$	(83,203)	$	(39,661)	$	(9,544)	$	(132,408)
Other comprehensive income/(loss) before reclassifications, net of tax	(2,181)		393		(262)		(2,050)
Interest expense related to swaps reclassified to the Consolidated Statements of Income, net of tax	—		—		2,408		2,408
Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income, net of tax	—		(14)		—		(14)
Net current period other comprehensive income	(2,181)		379		2,146		344
June 30, 2021	$	(85,384)	$	(39,282)	$	(7,398)	$	(132,064)

The table below presents changes in the components of AOCI for the period December 31, 2019 to June 30, 2020:

(in thousands)	Translation adjustments		Pension and postretirement liability adjustments		Derivative adjustment		Total Other Comprehensive Income
December 31, 2019	$	(122,852)	$	(49,994)	$	(3,135)	$	(175,981)
Other comprehensive income/(loss) before reclassifications, net of tax	(16,783)		581		(9,028)		(25,230)
Pension/postretirement curtailment loss, net of tax	—		265		—		265
Interest expense related to swaps reclassified to the Consolidated Statements of Income, net of tax	—		—		1,133		1,133
Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income, net of tax	—		186		—		186
Net current period other comprehensive income	(16,783)		1,032		(7,895)		(23,646)
June 30, 2020	$	(139,635)	$	(48,962)	$	(11,030)	$	(199,627)

The components of our Accumulated Other Comprehensive Income that are reclassified to the Statement of Income relate to our pension and postretirement plans and interest rate swaps.

The table below presents the expense/(income) amounts reclassified from AOCI, and the line items of the Statement of Income that were affected for the three and six months ended June 30, 2021 and 2020:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Pretax Derivative valuation reclassified from Accumulated Other Comprehensive Income:
Expense/(income) related to interest rate swaps included in Income before taxes (a)	$	1,770	$	1,116	$	3,246	$	1,523
Income tax effect	(457)		(286)		(838)		(390)
Effect on net income due to items reclassified from Accumulated Other Comprehensive Income	$	1,313	$	830	$	2,408	$	1,133
Pretax pension and postretirement liabilities reclassified from Accumulated Other Comprehensive Income:
Pension/postretirement curtailment	—		378		—		378
Amortization of prior service credit	(1,118)		(1,114)		(2,237)		(2,228)
Amortization of net actuarial loss	1,108		1,232		2,217		2,476
Total pretax amount reclassified (b)	(10)		496		(20)		626
Income tax effect	3		(143)		6		(175)
Effect on net income due to items reclassified from Accumulated Other Comprehensive Income	$	(7)	$	353	$	(14)	$	451

(a)Included in Interest expense, net are payments related to the interest rate swap agreements and amortization of swap buyouts (see Notes 14 and 15).

(b)These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 3).

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Noncontrolling Interest

6 Months Ended

Jun. 30, 2021

Noncontrolling Interest [Abstract]

Noncontrolling Interest

Noncontrolling InterestEffective October 31, 2013, Safran S.A. (Safran) acquired a 10 percent equity interest in a new Albany subsidiary, Albany Safran Composites, LLC (ASC). The table below presents a reconciliation of income attributable to the noncontrolling interest and noncontrolling equity in the Company’s subsidiary Albany Safran Composites, LLC:

	Six months ended June 30,
(in thousands, except percentages)	2021			2020
Net income/(loss) of Albany Safran Composites (ASC)	$	1,343		$	(13,612)
Less: Return attributable to the Company's preferred holding	647			587
Net income/(loss) of ASC available for common ownership	$	696		$	(14,199)
Ownership percentage of noncontrolling shareholder	10		%	10		%
Net income/(loss) attributable to the noncontrolling interest	$	70		$	(1,420)
Noncontrolling interest, beginning of year	$	3,799		$	4,006
Net income/(loss) attributable to the noncontrolling interest	70			(1,420)
Changes in other comprehensive income attributable to the noncontrolling interest	(27)			261
Noncontrolling interest, end of interim period	$	3,842		$	2,847

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Accounts Receivable

6 Months Ended

Jun. 30, 2021

Receivables [Abstract]

Accounts Receivable

Accounts Receivable

Accounts receivable includes trade receivables. In connection with certain sales in Asia, the Company accepts a bank promissory note as customer payment. The notes may be presented for payment at maturity, which is less than one year. As of June 30, 2021 and December 31, 2020, Accounts receivable consisted of the following:

(in thousands)	June 30, 2021		December 31, 2020
Trade and other accounts receivable	$	170,029	$	167,370
Bank promissory notes	24,847		24,860
Allowance for expected credit losses	(3,939)		(3,807)
Accounts receivable, net	$	190,937	$	188,423

The Company has Noncurrent receivables in the AEC segment that represent revenue earned, which has extended payment terms. The Noncurrent receivables will be invoiced to the customer over a 10-year period, which began in 2020. As of June 30, 2021 and December 31, 2020, Noncurrent receivables consisted of the following:

(in thousands)	June 30, 2021		December 31, 2020
Noncurrent receivables	$	34,726	$	36,539
Allowance for expected credit losses	(260)		(274)
Noncurrent receivables, net	$	34,466	$	36,265

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Contract Assets and Liabilities

6 Months Ended

Jun. 30, 2021

Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract]

Contract Assets and Liabilities

Contract Assets and Liabilities

Contract assets includes unbilled amounts typically resulting from sales under contracts when the cost-to-cost method of revenue recognition is utilized, and revenue recognized exceeds the amount billed to the customer. Contract assets are transferred to Accounts receivable, net when the entitlement to pay becomes unconditional. Contract liabilities include advance payments and billings in excess of revenue recognized. Contract liabilities are included in Accrued liabilities in the Consolidated Balance Sheets.

Contract assets and Contract liabilities are reported on the Consolidated Balance Sheets in a net position on a contract-by-contract basis at the end of each reporting period.

As of June 30, 2021 and December 31, 2020, Contract assets and Contract liabilities consisted of the following:

(in thousands)	June 30, 2021		December 31, 2020
Contract assets	$	114,097	$	140,348
Allowance for expected credit losses	(872)		(1,059)
Contract assets, net	$	113,225	$	139,289
Contract liabilities	$	7,136	$	8,206

Contract assets decreased $26.1 million during the six-month period ended June 30, 2021. The decrease was primarily due to invoicing to customers exceeding revenue recognized for satisfied performance obligations for contracts that were in a contract asset position. There were no credit losses related to our Contract assets during the six month periods ended June 30, 2021 and June 30, 2020.

Contract liabilities decreased $1.1 million during the six-month period ended June 30, 2021, primarily due to revenue recognized from satisfied performance obligations exceeding amounts invoiced to customers that were in a contract liability position. Revenue recognized for the six-month periods ended June 30, 2021 and 2020 that was included in the Contract liability balance at the beginning of the year was $4.7 million and $2.1 million, respectively.

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Inventories

6 Months Ended

Jun. 30, 2021

Inventory Disclosure [Abstract]

Inventories

Inventories

Costs included in inventories are raw materials, labor, supplies and allocable depreciation and overhead. Raw material inventories are valued on an average cost basis. Other inventory cost elements are valued at cost, using the first-in, first-out method. The Company writes down the inventories for estimated obsolescence, and to lower of cost or net realizable value based upon assumptions about future demand and market conditions. If actual demand or market conditions are less favorable than those projected by the Company, additional inventory write-downs may be required. Once established, the original cost of the inventory less the related write-down represents the new cost basis of such inventories.

As of June 30, 2021 and December 31, 2020, Inventories consisted of the following:

(in thousands)	June 30, 2021		December 31, 2020
Raw materials	$	59,627	$	57,789
Work in process	45,436		40,416
Finished goods	15,602		12,273
Total inventories	$	120,665	$	110,478

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Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Goodwill and intangible assets with indefinite useful lives are not amortized, but are tested for impairment at least annually. Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in each business combination. Our reportable segments are consistent with our operating segments.

Determining the fair value of a reporting unit requires the use of significant estimates and assumptions, including revenue growth rates, operating margins, discount rates, and future market conditions, among others. Goodwill and other long-lived assets are reviewed for impairment whenever events, such as significant changes in the business climate, plant closures, changes in product offerings, or other circumstances indicate that the carrying amount may not be recoverable.

To determine fair value, we utilize two market-based approaches and an income approach. Under the market-based approaches, we utilize information regarding the Company, as well as publicly available industry information, to determine earnings multiples and sales multiples. Under the income approach, we determine fair value based on estimated future cash flows of each reporting unit, discounted by an estimated weighted-average cost of capital, which reflects the overall level of inherent risk of a reporting unit and the rate of return an outside investor would expect to earn.

In the second quarter of 2021, management applied the qualitative assessment approach in performing its annual evaluation of goodwill for the Company's Machine Clothing reporting unit and three AEC reporting units and

concluded that each reporting unit’s fair value continued to exceed its carrying value. In addition, there were no amounts at risk due to the estimated spread between the fair and carrying values. Accordingly, no impairment charges were recorded.

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Financial Instruments

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Financial Instruments

Financial Instruments

Long-term debt, principally to banks and noteholders, consists of:

(in thousands, except interest rates)	June 30, 2021		December 31, 2020
Revolving credit agreement with borrowings outstanding at an end of period interest rate of 3.74% in 2021 and 3.50% in 2020 (including the effect of interest rate hedging transactions, as described below), due in 2024	$	350,000	$	398,000
Other debt, at an average end of period rate of 5.50% in 2020, paid in varying amounts through April 2021	—		9
Long-term debt	350,000		398,009
Less: current portion	—		(9)
Long-term debt, net of current portion	$	350,000	$	398,000

On October 27, 2020, we entered into a $700 million unsecured Four-Year Revolving Credit Facility Agreement (the “Credit Agreement”) which amended and restated the prior amended and restated $685 million Five-Year Revolving Credit Facility Agreement, which we had entered into on November 7, 2017 (the “Prior Agreement”). Under the Credit Agreement, $350 million of borrowings were outstanding as of June 30, 2021. The applicable interest rate for borrowings was LIBOR plus a spread, based on our leverage ratio at the time of borrowing. At the time of the last borrowing on June 30, 2021, the spread was 1.625%. The spread was based on a pricing grid, which ranged from 1.500% to 2.000%, based on our leverage ratio. Based on our maximum leverage ratio and our Consolidated EBITDA, and without modification to any other credit agreements, as of June 30, 2021, we would have been able to borrow an additional $350 million under the Agreement.

The Credit Agreement contains customary terms, as well as affirmative covenants, negative covenants and events of default that are comparable to those in the Prior Agreement. The Borrowings are guaranteed by certain of the Company’s subsidiaries.

Our ability to borrow additional amounts under the Credit Agreement is conditional upon the absence of any defaults, as well as the absence of any material adverse change (as defined in the Credit Agreement).

On June 14, 2021, we entered into interest rate swap agreements for the period October 17, 2022 through October 27, 2024. These transactions have the effect of fixing the LIBOR portion of the effective interest rate (before addition of the spread) on $350 million of indebtedness drawn under the Credit Agreement at the rate of 0.838% during the period. Under the terms of these transactions, we pay the fixed rate of 0.838% and the counterparties pay a floating rate based on the one-month LIBOR rate at each monthly calculation date, which on June 16, 2021 was 0.08%.

On November 27, 2017, we terminated our interest rate swap agreements, originally entered into on May 9, 2016, that had effectively fixed the interest rate on $300 million of revolving credit borrowings, in order to enter into a new interest rate swap with a greater notional amount, and the same maturity as the Credit Agreement. We received $6.3 million when the swap agreements were terminated, which has been fully amortized into interest expense through March 2021.

On November 28, 2017, we entered into interest rate swap agreements for the period December 18, 2017 through October 17, 2022. These transactions have the effect of fixing the LIBOR portion of the effective interest rate (before addition of the spread) on $350 million of indebtedness drawn under the Credit Agreement at the rate of 2.11% during the period. Under the terms of these transactions, we pay the fixed rate of 2.11% and the counterparties pay a floating rate based on the one-month LIBOR rate at each monthly calculation date, which on June 16, 2021 was 0.08%, during the swap period. On June 16, 2021, the all-in-rate on the $350 million of debt was 3.735%.

These interest rate swaps are accounted for as a hedge of future cash flows, as further described in Note 15. No cash collateral was received or pledged in relation to the swap agreements.

Under the Credit Agreement, we are currently required to maintain a leverage ratio (as defined in the agreement) of not greater than 3.50 to 1.00 and minimum interest coverage (as defined) of 3.00 to 1.00.

As of June 30, 2021, our leverage ratio was 1.08 to 1.00 and our interest coverage ratio was 15.02 to 1.00. We may purchase our Common Stock or pay dividends to the extent our leverage ratio remains at or below 3.50 to 1.00, and may make acquisitions with cash, provided our leverage ratio does not exceed the limits noted above.

Indebtedness under the Credit Agreement is ranked equally in right of payment to all unsecured senior debt.

We were in compliance with all debt covenants as of June 30, 2021.

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Fair-Value Measurements

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Fair-Value Measurements

Fair-Value Measurements

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Accounting principles establish a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Level 3 inputs are unobservable data points for the asset or liability, and include situations in which there is little, if any, market activity for the asset or liability. We had no Level 3 financial assets or liabilities at June 30, 2021, or at December 31, 2020.

The following table presents the fair-value hierarchy for our Level 1 and Level 2 financial and non-financial assets and liabilities, which are measured at fair value on a recurring basis:

	June 30, 2021				December 31, 2020
	Quoted prices in active markets		Significant other observable inputs		Quoted prices in active markets		Significant other observable inputs
(in thousands)	(Level 1)		(Level 2)		(Level 1)		(Level 2)
Fair Value
Assets:
Cash equivalents	$	26,848	$	—	$	17,508	$	—
Other Assets:
Common stock of unaffiliated foreign public company (a)	741		—		748		—
Interest rate swaps	—		261		—		—
Liabilities:
Other noncurrent liabilities:
Interest rate swaps	—		(9,270)		—		(12,714)

(a)Original cost basis $0.5 million.

Cash equivalents include short-term securities that are considered to be highly liquid and easily tradable. These securities are valued using inputs observable in active markets for identical securities.

The interest rate swaps are accounted for as hedges of future cash flows. The fair value of our interest rate swaps are derived from a discounted cash flow analysis based on the terms of the contract and the interest rate curve, and is included in Other assets and/or Other noncurrent liabilities in the Consolidated Balance Sheets. Unrealized gains and losses on the swaps flow through the caption Derivative valuation adjustment in the Shareholders’ equity section of the Consolidated Balance Sheets. As of June 30, 2021, these interest rate swaps were determined to be highly effective hedges of interest rate cash flow risk. Amounts accumulated in Other comprehensive income are reclassified as Interest expense, net when the related interest payments (that is, the hedged forecasted transactions), and amortization related to the swap buyouts, affect earnings. Interest (income)/expense related to payments under the active swap agreements totaled $3.5 million for the six month period ended June 30, 2021, and $1.9 million for the six month period ended June 30, 2020. Additionally, non-cash interest income related to the amortization of swap buyouts totaled $0.3 million for the six month period ended June 30, 2021 and $0.4 million for the six month period ended June 30, 2020.

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Contingencies

6 Months Ended

Jun. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Contingencies

Contingencies

Asbestos Litigation

Albany International Corp. is a defendant in suits brought in various courts in the United States by plaintiffs who allege that they have suffered personal injury as a result of exposure to asbestos-containing paper machine clothing synthetic dryer fabrics marketed during the period from 1967 to 1976 and used in certain paper mills.

We were defending 3,617 claims as of June 30, 2021.

The following table sets forth the number of claims filed, the number of claims settled, dismissed or otherwise resolved, and the aggregate settlement amount during the periods presented:

Year ended December 31,	Opening Number of Claims	Claims Dismissed, Settled, or Resolved	New Claims	Closing Number of Claims	Amounts Paid (thousands) to Settle or Resolve
2016	3,791	148	102	3,745	$	758
2017	3,745	105	90	3,730	55
2018	3,730	152	106	3,684	100
2019	3,684	51	75	3,708	25
2020	3,708	152	59	3,615	57
2021 (As of June 30)	3,615	9	11	3,617	$	—

We anticipate that additional claims will be filed against the Company and related companies in the future, but are unable to predict the number and timing of such future claims. Due to the fact that information sufficient to meaningfully estimate a range of possible loss of a particular claim is typically not available until late in the discovery process, we do not believe a meaningful estimate can be made regarding the range of possible loss with respect to pending or future claims and therefore are unable to estimate a range of reasonably possible loss in excess of amounts already accrued for pending or future claims.

While we believe we have meritorious defenses to these claims, we have settled certain claims for amounts we consider reasonable given the facts and circumstances of each case. Our insurance carrier has defended each case and funded settlements under a standard reservation of rights. As of June 30, 2021, we had resolved, by means of settlement or dismissal, 37,957 claims. The total cost of resolving all claims was $10.4 million. Of this amount, almost 100% was paid by our insurance carrier, who has confirmed that we have approximately $140 million of remaining coverage under primary and excess policies that should be available with respect to current and future asbestos claims.

The Company’s subsidiary, Brandon Drying Fabrics, Inc. (“Brandon”), is also a separate defendant in many of the asbestos cases in which Albany is named as a defendant, despite never having manufactured any fabrics containing asbestos. While Brandon was defending against 7,709 claims as of June 30, 2021, only twelve claims have been filed against Brandon since January 1, 2012, and a negligible amount of settlement costs have been incurred since 2001. Brandon was acquired by the Company in 1999, and has its own insurance policies covering periods prior to 1999. Since 2004, Brandon’s insurance carriers have covered 100% of indemnification and defense costs, subject to policy limits and a standard reservation of rights.

In some of these asbestos cases, the Company is named both as a direct defendant and as the “successor in interest” to Mount Vernon Mills (“Mount Vernon”). We acquired certain assets from Mount Vernon in 1993. Certain plaintiffs allege injury caused by asbestos-containing products alleged to have been sold by Mount Vernon many years prior to this acquisition. Mount Vernon is contractually obligated to indemnify the Company against any liability arising out of such products. We deny any liability for products sold by Mount Vernon prior to the acquisition of the Mount Vernon assets. Pursuant to its contractual indemnification obligations, Mount Vernon has assumed the defense of these claims. On this basis, we have successfully moved for dismissal in a number of actions.

We currently do not anticipate, based on currently available information, that the ultimate resolution of the aforementioned proceedings will have a material adverse effect on the financial position, results of operations, or cash flows of the Company. Although we cannot predict the number and timing of future claims, based on the foregoing factors, the trends in claims filed against us, and available insurance, we also do not currently anticipate that potential future claims will have a material adverse effect on our financial position, results of operations, or cash flows.

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Changes in Shareholders' Equity

6 Months Ended

Jun. 30, 2021

Stockholders' Equity Note [Abstract]

Changes in Shareholders’ Equity

Changes in Shareholders’ Equity

The following table summarizes changes in Shareholders’ Equity for the period December 31, 2020 to June 30, 2021:

	Class A Common Stock			Class B Common Stock			Additional paid-in capital		Retained earnings		Accumulated other comprehensive income		Class A Treasury Stock			Noncontrolling Interest		Total Equity
(in thousands)	Shares	Amount		Shares	Amount								Shares	Amount
December 31, 2020	39,115	$	39	1,618	$	2	$	433,696	$	770,746	$	(132,408)	8,391	$	(256,009)	$	3,799	$	819,865
Net income	—	—		—	—		—		27,582		—		—	—		27		27,609
Compensation and benefits paid or payable in shares	20	—		—	—		(13)		—		—		—	—		—		(13)
Options exercised	6	—		—	—		128		—		—		—	—		—		128
Dividends declared
Class A Common Stock, $0.20 per share	—	—		—	—		—		(6,150)		—		—	—		—		(6,150)
Class B Common Stock, $0.20 per share	—	—		—	—		—		(324)		—		—	—		—		(324)
Cumulative translation adjustments	—	—		—	—		—		—		(15,955)		—	—		(210)		(16,165)
Pension and postretirement liability adjustments	—	—		—	—		—		—		509		—	—		—		509
Derivative valuation adjustment	—	—		—	—		—		—		752		—	—		—		752
March 31, 2021	39,141	$	39	1,618	$	2	$	433,811	$	791,854	$	(147,102)	8,391	$	(256,009)	$	3,616	$	826,211
Net income	—	—		—	—		—		31,397		—		—	—		43		31,440
Compensation and benefits paid or payable in shares	—	—		—	—		692		—		—		—	—		—		692
Options exercised	1	—		—	—		21		—		—		—	—		—		21
Shares issued to Directors'	—	—		—	—		706		—		—		(11)	241		—		947
Dividends declared
Class A Common Stock, $0.20 per share	—	—		—	—		—		(6,150)		—		—	—		—		(6,150)
Class B Common Stock, $0.20 per share	—	—		—	—		—		(323)		—		—	—		—		(323)
Cumulative translation adjustments	—	—		—	—		—		—		13,774		—	—		183		13,957
Pension and postretirement liability adjustments	—	—		—	—		—		—		(130)		—	—		—		(130)
Derivative valuation adjustment	—	—		—	—		—		—		1,394		—	—		—		1,394
June 30, 2021	39,142	$	39	1,618	$	2	$	435,230	$	816,778	$	(132,064)	8,380	$	(255,768)	$	3,842	$	868,059

The following table summarizes changes in Shareholders’ Equity for the period December 31, 2019 to June 30, 2020:

	Class A Common Stock			Class B Common Stock			Additional paid-in capital		Retained earnings		Accumulated other comprehensive  income		Class A Treasury Stock			Noncontrolling Interest		Total Equity
(in thousands)	Shares	Amount		Shares	Amount								Shares	Amount
December 31, 2019	39,099	$	39	1,618	$	2	$	432,518	$	698,496	$	(175,981)	8,409	$	(256,391)	$	4,006	$	702,689
Adoption of accounting standards (a)	—	—		—	—		—		(1,443)		—		—	—		—		(1,443)
Net income	—	—		—	—		—		9,109		—		—	—		(1,515)		7,594
Compensation and benefits paid or payable in shares	13	—		—	—		(682)		—		—		—	—		—		(682)
Options exercised	—				—		—		—		—		—	—		—		—
Shares issued to Directors'	—	—		—	—		—		—		—		—	—		—		—
Dividends declared
Class A Common Stock, $0.19 per share	—	—		—	—		—		(5,834)		—		—	—		—		(5,834)
Class B Common Stock, $0.19 per share	—	—		—	—		—		(307)		—		—	—		—		(307)
Cumulative translation adjustments	—	—		—	—		—		—		(25,747)		—	—		109		(25,638)
Pension and postretirement liability adjustments	—	—		—	—		—		—		890		—	—		—		890
Derivative valuation adjustment	—	—		—	—		—		—		(7,708)		—	—		—		(7,708)
March 31, 2020	39,112	$	39	1,618	$	2	$	431,836	$	700,021	$	(208,546)	8,409	$	(256,391)	$	2,600	$	669,561
Net income	—	—		—	—		—		32,354		—		—	—		95		32,449
Compensation and benefits paid or payable in shares	—	—		—	—		466		—		—		—	—		—		466
Options exercised	1	—		—	—		20		—		—		—	—		—		20
Shares issued to Directors'	—	—		—	—		416		—		—		(15)	317		—		733
Dividends declared
Class A Common Stock, $0.19 per share	—	—		—	—		—		(5,835)		—		—	—		—		(5,835)
Class B Common Stock, $0.19 per share	—	—		—	—		—		(307)		—		—	—		—		(307)
Cumulative translation adjustments	—	—		—	—		—		—		8,964		—	—		152		9,116
Pension and postretirement liability adjustments	—	—		—	—		—		—		142		—	—		—		142
Derivative valuation adjustment	—	—		—	—		—		—		(187)		—	—		—		(187)
June 30, 2020	39,113	$	39	1,618	$	2	$	432,738	$	726,233	$	(199,627)	8,394	$	(256,074)	$	2,847	$	706,158

(a)The Company adopted the provisions of ASC 326, Current Expected Credit Losses (CECL) effective January 1, 2020, which resulted in a decrease to Retained earnings of $1.4 million.

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Recent Accounting Pronouncements	6 Months Ended
	Jun. 30, 2021
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	Recent Accounting PronouncementsAs disclosed in our March 31, 2020 Form 10Q, in March 2020, ASU 2020-04, Reference Rate Reform, was issued to provide optional guidance for a limited time to ease the potential accounting burden associated with transitioning away from reference rates such as LIBOR. The expedients and exceptions provided by this update will not be available after December 31, 2022, other than for certain hedging relationships entered into prior. For the Company’s cash flow hedges in which the designated hedged risk is LIBOR, the Company has adopted the portion of the guidance that allows it to assert that it remains probable that the hedged forecasted transaction will occur. The Company plans to adopt the remaining applicable provisions of this guidance beginning on July 1, 2021.

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Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary for a fair presentation of results for such periods. Albany International Corp. (Albany, the Registrant, the Company, we, us, or our) consolidates the financial results of its subsidiaries for all periods presented. The results for any interim period are not necessarily indicative of results for the full year.

The preparation of financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in Albany International Corp.’s Consolidated Financial Statements and accompanying Notes. Actual results could differ materially from those estimates.

The information included in this Quarterly Report on Form 10-Q should be read in conjunction with Albany International Corp.’s Annual Report on Form 10-K for the year ended December 31, 2020.

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Reportable Segments and Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

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)	2021		2020		2021		2020
Net sales
Machine Clothing	$	159,921	$	153,433	$	308,127	$	290,035
Albany Engineered Composites	74,598		72,557		148,753		171,719
Consolidated total	$	234,519	$	225,990	$	456,880	$	461,754
Operating income/(loss)
Machine Clothing	$	55,902	$	56,543	$	106,264	$	103,718
Albany Engineered Composites	7,164		8,299		10,102		15,922
Corporate expenses	(13,100)		(12,115)		(24,581)		(27,319)
Operating income	$	49,966	$	52,727	$	91,785	$	92,321
Reconciling items:
Interest income	(401)		(348)		(930)		(795)
Interest expense	4,619		4,171		8,717		8,595
Other expense/(income), net	862		1,091		1,462		16,660
Income before income taxes	$	44,886	$	47,813	$	82,536	$	67,861

Schedule of Restructuring Costs by Reporting Segment

The table below presents restructuring costs by reportable segment (also see Note 4):

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Machine Clothing	$	10	$	388	$	(58)	$	1,030
Albany Engineered Composites	(48)		2,248		41		2,248
Corporate expenses	29		201		60		201
Total	$	(9)	$	2,837	$	43	$	3,479

Disaggregation of Revenue

The following table disaggregates revenue for each product group by timing of revenue recognition:

	Three months ended June 30, 2021
(in thousands)	Point in Time Revenue Recognition		Over Time Revenue Recognition		Total
Machine Clothing	$	159,056	$	865	$	159,921
Albany Engineered Composites
ASC	—		26,170		26,170
Other AEC	4,432		43,996		48,428
Total Albany Engineered Composites	4,432		70,166		74,598
Total revenue	$	163,488	$	71,031	$	234,519

	Six months ended June 30, 2021
(in thousands)	Point in Time Revenue Recognition		Over Time Revenue Recognition		Total
Machine Clothing	$	306,397	$	1,730	$	308,127
Albany Engineered Composites
ASC	—		53,254		53,254
Other AEC	8,312		87,187		95,499
Total Albany Engineered Composites	8,312		140,441		148,753
Total revenue	$	314,709	$	142,171	$	456,880

	Three months ended June 30, 2020
(in thousands)	Point in Time Revenue Recognition		Over Time Revenue Recognition		Total
Machine Clothing	$	152,585	$	848	$	153,433
Albany Engineered Composites
ASC	—		17,576		17,576
Other AEC	4,143		50,838		54,981
Total Albany Engineered Composites	4,143		68,414		72,557
Total revenue	$	156,728	$	69,262	$	225,990

	Six months ended June 30, 2020
(in thousands)	Point in Time Revenue Recognition		Over Time Revenue Recognition		Total
Machine Clothing	$	288,339	$	1,696	$	290,035
Albany Engineered Composites
ASC	—		55,470		55,470
Other AEC	10,463		105,786		116,249
Total Albany Engineered Composites	10,463		161,256		171,719
Total revenue	$	298,802	$	162,952	$	461,754

Schedule of Disaggregate MC Segment Revenue by Significant Product or Service

The following table disaggregates MC segment revenue by significant product groupings (paper machine clothing (PMC) and engineered fabrics), and, for PMC, the geographical region to which the paper machine clothing was sold:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Americas PMC	$	82,343	$	81,225	$	155,645	$	154,902
Eurasia PMC	55,900		54,166		111,043		99,297
Engineered Fabrics	21,678		18,042		41,439		35,836
Total Machine Clothing Net sales	$	159,921	$	153,433	$	308,127	$	290,035

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Pensions and Other Postretirement Benefit Plans (Tables)

6 Months Ended

Jun. 30, 2021

Retirement Benefits [Abstract]

Schedule of Net Benefit Costs

The composition of the net periodic benefit cost for the six months ended June 30, 2021 and 2020, was as follows:

	Pension plans				Other postretirement benefits
(in thousands)	2021		2020		2021		2020
Components of net periodic benefit cost:
Service cost	$	1,090	$	1,148	$	66	$	100
Interest cost	2,674		3,071		551		857
Expected return on assets	(3,211)		(3,415)		—		—
Settlement	—		145		—		—
Curtailment	—		233		—		—
Amortization of prior service cost/(credit)	7		16		(2,244)		(2,244)
Amortization of net actuarial loss	1,087		1,180		1,130		1,296
Net periodic benefit cost	$	1,647	$	2,378	$	(497)	$	9

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Restructuring (Tables)

6 Months Ended

Jun. 30, 2021

Restructuring and Related Activities [Abstract]

Restructuring and Related Costs

The following table summarizes charges reported in the Consolidated Statements of Income under “Restructuring expenses, net”:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Machine Clothing	$	10	$	388	$	(58)	$	1,030
Albany Engineered Composites	(48)		2,248		41		2,248
Corporate expenses	29		201		60		201
Total	$	(9)	$	2,837	$	43	$	3,479

Schedule of Restructuring Reserve by Type of Cost

The table below presents the year-to-date changes in restructuring liabilities for 2021 and 2020, all of which are related to termination and other costs:

(in thousands)	December 31, 2020		Restructuring charges accrued		Payments		Currency translation /other		June 30, 2021
Total termination and other costs	$	2,195	$	43	$	(1,485)	$	11	$	764

(in thousands)	December 31, 2019		Restructuring charges accrued		Payments		Currency translation /other		June 30, 2020
Total termination and other costs	$	2,042	$	3,479	$	(1,410)	$	(5)	$	4,106

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Other (Income)/Expense, net (Tables)

6 Months Ended

Jun. 30, 2021

Other Income and Expenses [Abstract]

Schedule of Other (Income)/Expense, net

The components of Other (Income)/Expense, net are:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Currency transaction (gains)/losses	$	175	$	17	$	341	$	14,851
Bank fees and amortization of debt issuance costs	104		93		210		168
Components of net periodic pension and postretirement cost other than service	(4)		754		(6)		1,139
Other	587		227		917		502
Total	$	862	$	1,091	$	1,462	$	16,660

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Income Taxes (Tables)

6 Months Ended

Jun. 30, 2021

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The following table presents components of income tax expense for the three and six months ended June 30, 2021 and 2020:

	Three months ended June 30,				Six months ended June 30,
(in thousands, except percentages)	2021		2020		2021		2020
Income tax based on income from continuing operations (1)	$	13,251	$	16,262	$	24,583	$	23,571
Provision for change in estimated tax rate	(218)		(490)		(218)		(490)
Income tax before discrete items	13,033		15,772		24,365		23,081
Discrete tax expense:
Exercise of U.S. stock options	(14)		—		(156)		—
Adjustments to prior period tax liabilities	22		879		(1,421)		767
Revaluation of deferred tax assets due to tax rate change	352		—		352		—
Provision for/resolution of tax audits and contingencies, net	—		(1,489)		278		(1,733)
Write-off of net operating losses related to tax audit	—		—		—		1,830
Tax effect of non-deductible foreign exchange loss on intercompany loan	—		(13)		—		3,656
Creation of valuation allowance	—		222		—		222
Other	53		(7)		68		(5)
Total income tax expense	$	13,446	$	15,364	$	23,486	$	27,818
(1) Calculated at estimated tax rates of 29.5% and 34.0%, respectively

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The amounts used in computing earnings per share and the weighted average number of shares of potentially dilutive securities are as follows:

	Three months ended June 30,				Six months ended June 30,
(in thousands, except market price and earnings per share)	2021		2020		2021		2020
Net income attributable to the Company	$	31,397	$	32,354	$	58,980	$	41,463
Weighted average number of shares:
Weighted average number of shares used in calculating basic net income per share	32,375		32,328		32,363		32,320
Effect of dilutive stock-based compensation plans	47		8		48		8
Weighted average number of shares used in calculating diluted net income per share	32,422		32,336		32,411		32,328
Average market price of common stock used for calculation of dilutive shares	$	87.53	$	54.08	$	83.48	$	59.73
Net income attributable to the Company per share:
Basic	$	0.97	$	1.00	$	1.82	$	1.28
Diluted	$	0.97	$	1.00	$	1.82	$	1.28

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Accumulated Other Comprehensive Income (AOCI) (Tables)

6 Months Ended

Jun. 30, 2021

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The table below presents changes in the components of AOCI for the period December 31, 2020 to June 30, 2021:

(in thousands)	Translation adjustments		Pension and postretirement liability adjustments		Derivative adjustment		Total Other Comprehensive Income
December 31, 2020	$	(83,203)	$	(39,661)	$	(9,544)	$	(132,408)
Other comprehensive income/(loss) before reclassifications, net of tax	(2,181)		393		(262)		(2,050)
Interest expense related to swaps reclassified to the Consolidated Statements of Income, net of tax	—		—		2,408		2,408
Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income, net of tax	—		(14)		—		(14)
Net current period other comprehensive income	(2,181)		379		2,146		344
June 30, 2021	$	(85,384)	$	(39,282)	$	(7,398)	$	(132,064)

The table below presents changes in the components of AOCI for the period December 31, 2019 to June 30, 2020:

(in thousands)	Translation adjustments		Pension and postretirement liability adjustments		Derivative adjustment		Total Other Comprehensive Income
December 31, 2019	$	(122,852)	$	(49,994)	$	(3,135)	$	(175,981)
Other comprehensive income/(loss) before reclassifications, net of tax	(16,783)		581		(9,028)		(25,230)
Pension/postretirement curtailment loss, net of tax	—		265		—		265
Interest expense related to swaps reclassified to the Consolidated Statements of Income, net of tax	—		—		1,133		1,133
Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income, net of tax	—		186		—		186
Net current period other comprehensive income	(16,783)		1,032		(7,895)		(23,646)
June 30, 2020	$	(139,635)	$	(48,962)	$	(11,030)	$	(199,627)

Reclassification out of Accumulated Other Comprehensive Income

The table below presents the expense/(income) amounts reclassified from AOCI, and the line items of the Statement of Income that were affected for the three and six months ended June 30, 2021 and 2020:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Pretax Derivative valuation reclassified from Accumulated Other Comprehensive Income:
Expense/(income) related to interest rate swaps included in Income before taxes (a)	$	1,770	$	1,116	$	3,246	$	1,523
Income tax effect	(457)		(286)		(838)		(390)
Effect on net income due to items reclassified from Accumulated Other Comprehensive Income	$	1,313	$	830	$	2,408	$	1,133
Pretax pension and postretirement liabilities reclassified from Accumulated Other Comprehensive Income:
Pension/postretirement curtailment	—		378		—		378
Amortization of prior service credit	(1,118)		(1,114)		(2,237)		(2,228)
Amortization of net actuarial loss	1,108		1,232		2,217		2,476
Total pretax amount reclassified (b)	(10)		496		(20)		626
Income tax effect	3		(143)		6		(175)
Effect on net income due to items reclassified from Accumulated Other Comprehensive Income	$	(7)	$	353	$	(14)	$	451

(a)Included in Interest expense, net are payments related to the interest rate swap agreements and amortization of swap buyouts (see Notes 14 and 15).

(b)These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 3).

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Noncontrolling Interest (Tables)

6 Months Ended

Jun. 30, 2021

Noncontrolling Interest [Abstract]

Schedule of Income Attributable to Noncontrolling Interest and Noncontrolling Equity

The table below presents a reconciliation of income attributable to the noncontrolling interest and noncontrolling equity in the Company’s subsidiary Albany Safran Composites, LLC:

	Six months ended June 30,
(in thousands, except percentages)	2021			2020
Net income/(loss) of Albany Safran Composites (ASC)	$	1,343		$	(13,612)
Less: Return attributable to the Company's preferred holding	647			587
Net income/(loss) of ASC available for common ownership	$	696		$	(14,199)
Ownership percentage of noncontrolling shareholder	10		%	10		%
Net income/(loss) attributable to the noncontrolling interest	$	70		$	(1,420)
Noncontrolling interest, beginning of year	$	3,799		$	4,006
Net income/(loss) attributable to the noncontrolling interest	70			(1,420)
Changes in other comprehensive income attributable to the noncontrolling interest	(27)			261
Noncontrolling interest, end of interim period	$	3,842		$	2,847

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Accounts Receivable (Tables)

6 Months Ended

Jun. 30, 2021

Receivables [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable

Accounts receivable includes trade receivables. In connection with certain sales in Asia, the Company accepts a bank promissory note as customer payment. The notes may be presented for payment at maturity, which is less than one year. As of June 30, 2021 and December 31, 2020, Accounts receivable consisted of the following:

(in thousands)	June 30, 2021		December 31, 2020
Trade and other accounts receivable	$	170,029	$	167,370
Bank promissory notes	24,847		24,860
Allowance for expected credit losses	(3,939)		(3,807)
Accounts receivable, net	$	190,937	$	188,423

Schedule of Contract Receivables

As of June 30, 2021 and December 31, 2020, Noncurrent receivables consisted of the following:

(in thousands)	June 30, 2021		December 31, 2020
Noncurrent receivables	$	34,726	$	36,539
Allowance for expected credit losses	(260)		(274)
Noncurrent receivables, net	$	34,466	$	36,265

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Contract Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2021

Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract]

Schedule of Contract Assets and Contract Liabilities

As of June 30, 2021 and December 31, 2020, Contract assets and Contract liabilities consisted of the following:

(in thousands)	June 30, 2021		December 31, 2020
Contract assets	$	114,097	$	140,348
Allowance for expected credit losses	(872)		(1,059)
Contract assets, net	$	113,225	$	139,289
Contract liabilities	$	7,136	$	8,206

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Inventories (Tables)

6 Months Ended

Jun. 30, 2021

Inventory Disclosure [Abstract]

Schedule of Inventory

As of June 30, 2021 and December 31, 2020, Inventories consisted of the following:

(in thousands)	June 30, 2021		December 31, 2020
Raw materials	$	59,627	$	57,789
Work in process	45,436		40,416
Finished goods	15,602		12,273
Total inventories	$	120,665	$	110,478

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Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

Long-term debt, principally to banks and noteholders, consists of:

(in thousands, except interest rates)	June 30, 2021		December 31, 2020
Revolving credit agreement with borrowings outstanding at an end of period interest rate of 3.74% in 2021 and 3.50% in 2020 (including the effect of interest rate hedging transactions, as described below), due in 2024	$	350,000	$	398,000
Other debt, at an average end of period rate of 5.50% in 2020, paid in varying amounts through April 2021	—		9
Long-term debt	350,000		398,009
Less: current portion	—		(9)
Long-term debt, net of current portion	$	350,000	$	398,000

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Fair-Value Measurements (Tables)

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements, Recurring and Nonrecurring

The following table presents the fair-value hierarchy for our Level 1 and Level 2 financial and non-financial assets and liabilities, which are measured at fair value on a recurring basis:

	June 30, 2021				December 31, 2020
	Quoted prices in active markets		Significant other observable inputs		Quoted prices in active markets		Significant other observable inputs
(in thousands)	(Level 1)		(Level 2)		(Level 1)		(Level 2)
Fair Value
Assets:
Cash equivalents	$	26,848	$	—	$	17,508	$	—
Other Assets:
Common stock of unaffiliated foreign public company (a)	741		—		748		—
Interest rate swaps	—		261		—		—
Liabilities:
Other noncurrent liabilities:
Interest rate swaps	—		(9,270)		—		(12,714)

(a)Original cost basis $0.5 million.

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Contingencies (Tables)

6 Months Ended

Jun. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Schedule of Loss Contingencies by Contingency

The following table sets forth the number of claims filed, the number of claims settled, dismissed or otherwise resolved, and the aggregate settlement amount during the periods presented:

Year ended December 31,	Opening Number of Claims	Claims Dismissed, Settled, or Resolved	New Claims	Closing Number of Claims	Amounts Paid (thousands) to Settle or Resolve
2016	3,791	148	102	3,745	$	758
2017	3,745	105	90	3,730	55
2018	3,730	152	106	3,684	100
2019	3,684	51	75	3,708	25
2020	3,708	152	59	3,615	57
2021 (As of June 30)	3,615	9	11	3,617	$	—

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Changes in Shareholders' Equity (Tables)

6 Months Ended

Jun. 30, 2021

Stockholders' Equity Note [Abstract]

Schedule of Stockholders Equity

The following table summarizes changes in Shareholders’ Equity for the period December 31, 2020 to June 30, 2021:

	Class A Common Stock			Class B Common Stock			Additional paid-in capital		Retained earnings		Accumulated other comprehensive income		Class A Treasury Stock			Noncontrolling Interest		Total Equity
(in thousands)	Shares	Amount		Shares	Amount								Shares	Amount
December 31, 2020	39,115	$	39	1,618	$	2	$	433,696	$	770,746	$	(132,408)	8,391	$	(256,009)	$	3,799	$	819,865
Net income	—	—		—	—		—		27,582		—		—	—		27		27,609
Compensation and benefits paid or payable in shares	20	—		—	—		(13)		—		—		—	—		—		(13)
Options exercised	6	—		—	—		128		—		—		—	—		—		128
Dividends declared
Class A Common Stock, $0.20 per share	—	—		—	—		—		(6,150)		—		—	—		—		(6,150)
Class B Common Stock, $0.20 per share	—	—		—	—		—		(324)		—		—	—		—		(324)
Cumulative translation adjustments	—	—		—	—		—		—		(15,955)		—	—		(210)		(16,165)
Pension and postretirement liability adjustments	—	—		—	—		—		—		509		—	—		—		509
Derivative valuation adjustment	—	—		—	—		—		—		752		—	—		—		752
March 31, 2021	39,141	$	39	1,618	$	2	$	433,811	$	791,854	$	(147,102)	8,391	$	(256,009)	$	3,616	$	826,211
Net income	—	—		—	—		—		31,397		—		—	—		43		31,440
Compensation and benefits paid or payable in shares	—	—		—	—		692		—		—		—	—		—		692
Options exercised	1	—		—	—		21		—		—		—	—		—		21
Shares issued to Directors'	—	—		—	—		706		—		—		(11)	241		—		947
Dividends declared
Class A Common Stock, $0.20 per share	—	—		—	—		—		(6,150)		—		—	—		—		(6,150)
Class B Common Stock, $0.20 per share	—	—		—	—		—		(323)		—		—	—		—		(323)
Cumulative translation adjustments	—	—		—	—		—		—		13,774		—	—		183		13,957
Pension and postretirement liability adjustments	—	—		—	—		—		—		(130)		—	—		—		(130)
Derivative valuation adjustment	—	—		—	—		—		—		1,394		—	—		—		1,394
June 30, 2021	39,142	$	39	1,618	$	2	$	435,230	$	816,778	$	(132,064)	8,380	$	(255,768)	$	3,842	$	868,059

The following table summarizes changes in Shareholders’ Equity for the period December 31, 2019 to June 30, 2020:

	Class A Common Stock			Class B Common Stock			Additional paid-in capital		Retained earnings		Accumulated other comprehensive  income		Class A Treasury Stock			Noncontrolling Interest		Total Equity
(in thousands)	Shares	Amount		Shares	Amount								Shares	Amount
December 31, 2019	39,099	$	39	1,618	$	2	$	432,518	$	698,496	$	(175,981)	8,409	$	(256,391)	$	4,006	$	702,689
Adoption of accounting standards (a)	—	—		—	—		—		(1,443)		—		—	—		—		(1,443)
Net income	—	—		—	—		—		9,109		—		—	—		(1,515)		7,594
Compensation and benefits paid or payable in shares	13	—		—	—		(682)		—		—		—	—		—		(682)
Options exercised	—				—		—		—		—		—	—		—		—
Shares issued to Directors'	—	—		—	—		—		—		—		—	—		—		—
Dividends declared
Class A Common Stock, $0.19 per share	—	—		—	—		—		(5,834)		—		—	—		—		(5,834)
Class B Common Stock, $0.19 per share	—	—		—	—		—		(307)		—		—	—		—		(307)
Cumulative translation adjustments	—	—		—	—		—		—		(25,747)		—	—		109		(25,638)
Pension and postretirement liability adjustments	—	—		—	—		—		—		890		—	—		—		890
Derivative valuation adjustment	—	—		—	—		—		—		(7,708)		—	—		—		(7,708)
March 31, 2020	39,112	$	39	1,618	$	2	$	431,836	$	700,021	$	(208,546)	8,409	$	(256,391)	$	2,600	$	669,561
Net income	—	—		—	—		—		32,354		—		—	—		95		32,449
Compensation and benefits paid or payable in shares	—	—		—	—		466		—		—		—	—		—		466
Options exercised	1	—		—	—		20		—		—		—	—		—		20
Shares issued to Directors'	—	—		—	—		416		—		—		(15)	317		—		733
Dividends declared
Class A Common Stock, $0.19 per share	—	—		—	—		—		(5,835)		—		—	—		—		(5,835)
Class B Common Stock, $0.19 per share	—	—		—	—		—		(307)		—		—	—		—		(307)
Cumulative translation adjustments	—	—		—	—		—		—		8,964		—	—		152		9,116
Pension and postretirement liability adjustments	—	—		—	—		—		—		142		—	—		—		142
Derivative valuation adjustment	—	—		—	—		—		—		(187)		—	—		—		(187)
June 30, 2020	39,113	$	39	1,618	$	2	$	432,738	$	726,233	$	(199,627)	8,394	$	(256,074)	$	2,847	$	706,158

(a)The Company adopted the provisions of ASC 326, Current Expected Credit Losses (CECL) effective January 1, 2020, which resulted in a decrease to Retained earnings of $1.4 million.

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Reportable Segments and Revenue Recognition (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Oct. 31, 2013
Segment Reporting Information [Line Items]
Net sales	$ 234,519	$ 225,990	$ 456,880	$ 461,754
Operating income	49,966	52,727	91,785	92,321
Albany Engineered Composites
Segment Reporting Information [Line Items]
Net sales	74,598	72,557	148,753	171,719
Operating income	4,300	7,400	3,700	6,400
US Government Contracts Or Programs | Revenue Benchmark | Product Concentration Risk
Segment Reporting Information [Line Items]
Concentration risk percentage					46.00%
Albany Aerostructures Composites LLC (AAC)
Segment Reporting Information [Line Items]
Receivables	$ 105,100	$ 127,100	105,100	127,100
Safran
Segment Reporting Information [Line Items]
Net sales			$ 54,000	$ 57,000
Albany Safran Composites, LLC
Segment Reporting Information [Line Items]
Ownership percentage of noncontrolling shareholder	10.00%		10.00%
Albany Safran Composites, LLC | Safran
Segment Reporting Information [Line Items]
Ownership percentage of noncontrolling shareholder	10.00%	10.00%	10.00%	10.00%		10.00%

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Reportable Segments and Revenue Recognition (Schedule of Financial Data by Reporting Segment) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Segment Reporting Information [Line Items]
Net sales	$ 234,519	$ 225,990	$ 456,880	$ 461,754
Operating income	49,966	52,727	91,785	92,321
Other expense/(income), net	862	1,091	1,462	16,660
Income before income taxes	44,886	47,813	82,536	67,861
Corporate, Non-Segment
Segment Reporting Information [Line Items]
Operating income	(13,100)	(12,115)	(24,581)	(27,319)
Segment Reconciling Items
Segment Reporting Information [Line Items]
Interest income	(401)	(348)	(930)	(795)
Interest expense	4,619	4,171	8,717	8,595
Other expense/(income), net	862	1,091	1,462	16,660
Machine Clothing
Segment Reporting Information [Line Items]
Net sales	159,921	153,433	308,127	290,035
Machine Clothing | Operating Segments
Segment Reporting Information [Line Items]
Net sales	159,921	153,433	308,127	290,035
Operating income	55,902	56,543	106,264	103,718
Albany Engineered Composites
Segment Reporting Information [Line Items]
Net sales	74,598	72,557	148,753	171,719
Operating income	4,300	7,400	3,700	6,400
Albany Engineered Composites | Operating Segments
Segment Reporting Information [Line Items]
Net sales	74,598	72,557	148,753	171,719
Operating income	$ 7,164	$ 8,299	$ 10,102	$ 15,922

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Reportable Segments and Revenue Recognition (Schedule of Restructuring Costs by Reporting Segment) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Segment Reporting Information, Additional Information [Abstract]
Restructuring expenses, net	$ (9)	$ 2,837	$ 43	$ 3,479
Corporate, Non-Segment
Segment Reporting Information, Additional Information [Abstract]
Restructuring expenses, net	29	201	60	201
Machine Clothing | Operating Segments
Segment Reporting Information, Additional Information [Abstract]
Restructuring expenses, net	10	388	(58)	1,030
Albany Engineered Composites | Operating Segments
Segment Reporting Information, Additional Information [Abstract]
Restructuring expenses, net	$ (48)	$ 2,248	$ 41	$ 2,248

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Reportable Segments and Revenue Recognition (Schedule of Disaggregate Revenue for Each Business Segment) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Disaggregation of Revenue [Line Items]
Net sales	$ 234,519	$ 225,990	$ 456,880	$ 461,754
Point in Time Revenue Recognition
Disaggregation of Revenue [Line Items]
Net sales	163,488	156,728	314,709	298,802
Over Time Revenue Recognition
Disaggregation of Revenue [Line Items]
Net sales	71,031	69,262	142,171	162,952
Machine Clothing
Disaggregation of Revenue [Line Items]
Net sales	159,921	153,433	308,127	290,035
Machine Clothing | Point in Time Revenue Recognition
Disaggregation of Revenue [Line Items]
Net sales	159,056	152,585	306,397	288,339
Machine Clothing | Over Time Revenue Recognition
Disaggregation of Revenue [Line Items]
Net sales	865	848	1,730	1,696
Albany Engineered Composites
Disaggregation of Revenue [Line Items]
Net sales	74,598	72,557	148,753	171,719
Albany Engineered Composites | Point in Time Revenue Recognition
Disaggregation of Revenue [Line Items]
Net sales	4,432	4,143	8,312	10,463
Albany Engineered Composites | Over Time Revenue Recognition
Disaggregation of Revenue [Line Items]
Net sales	70,166	68,414	140,441	161,256
ASC
Disaggregation of Revenue [Line Items]
Net sales	26,170	17,576	53,254	55,470
ASC | Point in Time Revenue Recognition
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
ASC | Over Time Revenue Recognition
Disaggregation of Revenue [Line Items]
Net sales	26,170	17,576	53,254	55,470
Other AEC
Disaggregation of Revenue [Line Items]
Net sales	48,428	54,981	95,499	116,249
Other AEC | Point in Time Revenue Recognition
Disaggregation of Revenue [Line Items]
Net sales	4,432	4,143	8,312	10,463
Other AEC | Over Time Revenue Recognition
Disaggregation of Revenue [Line Items]
Net sales	$ 43,996	$ 50,838	$ 87,187	$ 105,786

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Reportable Segments and Revenue Recognition (Schedule of Disaggregate MC Segment Revenue by Significant Product or Service) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Disaggregation of Revenue [Line Items]
Net sales	$ 234,519	$ 225,990	$ 456,880	$ 461,754
Machine Clothing
Disaggregation of Revenue [Line Items]
Net sales	159,921	153,433	308,127	290,035
Machine Clothing | Americas PMC
Disaggregation of Revenue [Line Items]
Net sales	82,343	81,225	155,645	154,902
Machine Clothing | Eurasia PMC
Disaggregation of Revenue [Line Items]
Net sales	55,900	54,166	111,043	99,297
Machine Clothing | Engineered Fabrics
Disaggregation of Revenue [Line Items]
Net sales	$ 21,678	$ 18,042	$ 41,439	$ 35,836

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Reportable Segments and Revenue Recognition (Remaining Performance Obligation) (Details) - USD ($) $ in Millions	Jun. 30, 2021	Jun. 30, 2020
Leases [Abstract]
Revenue, remaining performance obligation, amount	$ 149	$ 85
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	149	$ 85
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01
Leases [Abstract]
Revenue, remaining performance obligation, amount	48
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 48
Revenue, remaining performance obligation, expected timing of satisfaction, period	6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Leases [Abstract]
Revenue, remaining performance obligation, amount	$ 62
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 62
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Leases [Abstract]
Revenue, remaining performance obligation, amount	$ 24
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 24
Revenue, remaining performance obligation, expected timing of satisfaction, period	2 years

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Pensions and Other Postretirement Benefit Plans (Schedule of Net Periodic Benefit Plan Cost) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Pension plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 1,090	$ 1,148
Interest cost	2,674	3,071
Expected return on assets	(3,211)	(3,415)
Settlement	0	145
Curtailment	0	233
Amortization of prior service cost/(credit)	7	16
Amortization of net actuarial loss	1,087	1,180
Net periodic benefit cost	1,647	2,378
Other postretirement benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	66	100
Interest cost	551	857
Expected return on assets	0	0
Settlement	0	0
Curtailment	0	0
Amortization of prior service cost/(credit)	(2,244)	(2,244)
Amortization of net actuarial loss	1,130	1,296
Net periodic benefit cost	$ (497)	$ 9

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Pensions and Other Postretirement Benefit Plans (Narrative) (Details) $ in Millions	3 Months Ended
	Jun. 30, 2020 USD ($)
Retirement Benefits [Abstract]
Expense related to curtailments and settlements	$ 0.4

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Restructuring (Narrative) (Details) - USD ($)	6 Months Ended		54 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021
Restructuring and Related Activities [Abstract]
Restructuring expense			$ 13,900,000
Asset impairment charges	$ 0	$ 0
Restructuring reserve, current	600,000		600,000
Restructuring reserve, noncurrent	$ 200,000		$ 200,000

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Restructuring (Schedule of Restructuring Charges) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Restructuring Cost and Reserve [Line Items]
Restructuring expenses, net	$ (9)	$ 2,837	$ 43	$ 3,479
Corporate, Non-Segment
Restructuring Cost and Reserve [Line Items]
Restructuring expenses, net	29	201	60	201
Machine Clothing | Operating Segments
Restructuring Cost and Reserve [Line Items]
Restructuring expenses, net	10	388	(58)	1,030
Albany Engineered Composites | Operating Segments
Restructuring Cost and Reserve [Line Items]
Restructuring expenses, net	$ (48)	$ 2,248	$ 41	$ 2,248

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Restructuring (Schedule of Restructuring Liability) (Details) - Employee Severance - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Restructuring Reserve [Roll Forward]
Beginning balance	$ 2,195	$ 2,042
Restructuring charges accrued	43	3,479
Payments	(1,485)	(1,410)
Currency translation /other	11	(5)
Ending balance	$ 764	$ 4,106

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Other (Income)/Expense, net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Other Income and Expenses [Abstract]
Currency transaction (gains)/losses	$ 175	$ 17	$ 341	$ 14,851
Bank fees and amortization of debt issuance costs	104	93	210	168
Components of net periodic pension and postretirement cost other than service	(4)	754	(6)	1,139
Other	587	227	917	502
Total	$ 862	$ 1,091	$ 1,462	$ 16,660

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Other (Income)/Expense, net (Narrative) (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Other Income and Expenses [Abstract]
Foreign currency transaction loss, realized	$ 0.3	$ 14.9

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Income Taxes (Schedule of Components of Income Tax Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Income tax based on income from continuing operations	$ 13,251	$ 16,262	$ 24,583	$ 23,571
Provision for change in estimated tax rate	(218)	(490)	(218)	(490)
Income tax before discrete items	13,033	15,772	24,365	23,081
Discrete tax expense:
Exercise of U.S. stock options	(14)	0	(156)	0
Adjustments to prior period tax liabilities	22	879	(1,421)	767
Revaluation of deferred tax assets due to tax rate change	352	0	352	0
Provision for/resolution of tax audits and contingencies, net	0	(1,489)	278	(1,733)
Write-off of net operating losses related to tax audit	0	0	0	1,830
Tax effect of non-deductible foreign exchange loss on intercompany loan	0	(13)	0	3,656
Creation of valuation allowance	0	222	0	222
Other	53	(7)	68	(5)
Total income tax expense	$ 13,446	$ 15,364	$ 23,486	$ 27,818
Effective income tax rate reconciliation, percent	29.50%	34.00%	29.50%	34.00%

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Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Revaluation of deferred tax assets due to tax rate change	$ 352		$ 0	$ 352	$ 0
Net tax benefit	(22)		(879)	1,421	(767)
Provision for/resolution of tax audits and contingencies, net	0		(1,489)	278	(1,733)
Write-off of net operating losses related to tax audit	$ 0		0	$ 0	$ 1,830
Deferred income tax expense (benefit)			$ 1,000
Deferred federal income tax expense (benefit)		$ 1,800

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Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Earnings Per Share [Abstract]
Net income attributable to the Company	$ 31,397	$ 32,354	$ 58,980	$ 41,463
Net income attributable to the Company	$ 31,397	$ 32,354	$ 58,980	$ 41,463
Weighted Average Number of Shares Outstanding Reconciliation [Abstract]
Weighted average number of shares used in calculating basic net income per share (in shares)	32,375	32,328	32,363	32,320
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract]
Weighted average number diluted shares outstanding adjustment (in shares)	47	8	48	8
Weighted average number of shares used in calculating diluted net income per share (in shares)	32,422	32,336	32,411	32,328
Average market price of common stock used for calculation of dilutive shares (in dollars per share)	$ 87.53	$ 54.08	$ 83.48	$ 59.73
Earnings Per Share, Basic and Diluted [Abstract]
Basic earnings per share (in dollars per share)	0.97	1.00	1.82	1.28
Diluted earnings per share (in dollars per share)	$ 0.97	$ 1.00	$ 1.82	$ 1.28

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Accumulated Other Comprehensive Income (AOCI) (Schedule of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ 816,066
Ending balance	864,217
Translation adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(83,203)	$ (122,852)
Other comprehensive income/(loss) before reclassifications, net of tax	(2,181)	(16,783)
Pension/postretirement curtailment loss, net of tax		0
Interest expense related to swaps reclassified to the Consolidated Statements of Income, net of tax	0	0
Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income, net of tax	0	0
Net current period other comprehensive income	(2,181)	(16,783)
Ending balance	(85,384)	(139,635)
Pension and postretirement liability adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(39,661)	(49,994)
Other comprehensive income/(loss) before reclassifications, net of tax	393	581
Pension/postretirement curtailment loss, net of tax		265
Interest expense related to swaps reclassified to the Consolidated Statements of Income, net of tax	0	0
Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income, net of tax	(14)	186
Net current period other comprehensive income	379	1,032
Ending balance	(39,282)	(48,962)
Derivative adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(9,544)	(3,135)
Other comprehensive income/(loss) before reclassifications, net of tax	(262)	(9,028)
Pension/postretirement curtailment loss, net of tax		0
Interest expense related to swaps reclassified to the Consolidated Statements of Income, net of tax	2,408	1,133
Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income, net of tax	0	0
Net current period other comprehensive income	2,146	(7,895)
Ending balance	(7,398)	(11,030)
Accumulated other comprehensive income
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(132,408)	(175,981)
Other comprehensive income/(loss) before reclassifications, net of tax	(2,050)	(25,230)
Pension/postretirement curtailment loss, net of tax		265
Interest expense related to swaps reclassified to the Consolidated Statements of Income, net of tax	2,408	1,133
Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income, net of tax	(14)	186
Net current period other comprehensive income	344	(23,646)
Ending balance	$ (132,064)	$ (199,627)

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Accumulated Other Comprehensive Income (AOCI) (Schedule of Items Reclassified to Statement of Income) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income tax effect	$ (13,446)	$ (15,364)	$ (23,486)	$ (27,818)
Effect on net income due to items reclassified from Accumulated Other Comprehensive Income	31,397	32,354	58,980	41,463
Pension/postretirement settlements and curtailments	0	378	0	378
Amortization of prior service credit	(1,118)	(1,114)	(2,237)	(2,228)
Net actuarial loss	1,108	1,232	2,217	2,476
Total pretax amount reclassified	44,886	47,813	82,536	67,861
Reclassification out of Accumulated Other Comprehensive Income | Derivative valuation adjustment
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Expense/(income) related to interest rate swaps included in Income before taxes	1,770	1,116	3,246	1,523
Income tax effect	(457)	(286)	(838)	(390)
Effect on net income due to items reclassified from Accumulated Other Comprehensive Income	1,313	830	2,408	1,133
Reclassification out of Accumulated Other Comprehensive Income | Pension and postretirement liability adjustments
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income tax effect	3	(143)	6	(175)
Effect on net income due to items reclassified from Accumulated Other Comprehensive Income	(7)	353	(14)	451
Pension/postretirement settlements and curtailments	0	378	0	378
Amortization of prior service credit	(1,118)	(1,114)	(2,237)	(2,228)
Net actuarial loss	1,108	1,232	2,217	2,476
Total pretax amount reclassified	$ (10)	$ 496	$ (20)	$ 626

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Noncontrolling Interest (Narrative) (Details) - Albany Safran Composites, LLC	Jun. 30, 2021	Jun. 30, 2020	Oct. 31, 2013
Noncontrolling Interest [Line Items]
Ownership percentage of noncontrolling shareholder	10.00%
Safran
Noncontrolling Interest [Line Items]
Ownership percentage of noncontrolling shareholder	10.00%	10.00%	10.00%

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Noncontrolling Interest - Income attributable to the noncontrolling interest and noncontrolling equity (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020	Oct. 31, 2013
Noncontrolling Interest [Line Items]
Net income/(loss) of Albany Safran Composites (ASC)	$ 31,440	$ 27,609	$ 32,449	$ 7,594	$ 59,050	$ 40,043
Net income/(loss) of ASC available for common ownership	31,397		32,354		58,980	41,463
Net income/(loss) attributable to the noncontrolling interest	43		95		70	(1,420)
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Noncontrolling interest, beginning of year		3,799			3,799
Net income/(loss) attributable to the noncontrolling interest	43		95		70	(1,420)
Noncontrolling interest, end of interim period	$ 3,842				$ 3,842
Albany Safran Composites, LLC
Noncontrolling Interest [Line Items]
Ownership percentage of noncontrolling shareholder	10.00%				10.00%
Albany Safran Composites, LLC
Noncontrolling Interest [Line Items]
Net income/(loss) of Albany Safran Composites (ASC)					$ 1,343	(13,612)
Less: Return attributable to the Company's preferred holding					647	587
Net income/(loss) of ASC available for common ownership					696	(14,199)
Net income/(loss) attributable to the noncontrolling interest					70	(1,420)
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Noncontrolling interest, beginning of year		$ 3,799		$ 4,006	3,799	4,006
Net income/(loss) attributable to the noncontrolling interest					70	(1,420)
Changes in other comprehensive income attributable to the noncontrolling interest					(27)	261
Noncontrolling interest, end of interim period	$ 3,842		$ 2,847		$ 3,842	$ 2,847
Safran | Albany Safran Composites, LLC
Noncontrolling Interest [Line Items]
Ownership percentage of noncontrolling shareholder	10.00%		10.00%		10.00%	10.00%	10.00%

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Accounts Receivable (Narrative) (Details)	6 Months Ended
	Jun. 30, 2021
Receivables [Abstract]
Noncurrent receivables invoice, period	10 years

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Accounts Receivable (Schedule of Accounts Receivable) (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Receivables [Abstract]
Trade and other accounts receivable	$ 170,029	$ 167,370
Bank promissory notes	24,847	24,860
Allowance for expected credit losses	(3,939)	(3,807)
Accounts receivable, net	$ 190,937	$ 188,423

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Accounts Receivable (Schedule of Contract Receivables) (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Receivables [Abstract]
Noncurrent receivables	$ 34,726,000	$ 36,539,000
Allowance for expected credit losses	(260,000)	(274,000)
Noncurrent receivables, net	$ 34,466,000	$ 36,265,000

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Contract Assets and Liabilities (Narrative) (Details) - USD ($)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract]
Contract with customer, asset, period decrease	$ 26,100,000
Contract with customer, asset, impairment loss	0	$ 0
Decrease in contract with customer, liability	1,100,000
Contract with customer, liability, revenue recognized	$ 4,700,000	$ 2,100,000

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Contract Assets and Liabilities (Schedule of Contract Assets and Contract Liabilities) (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract]
Contract assets	$ 114,097	$ 140,348
Allowance for expected credit losses	(872)	(1,059)
Contract assets, net	113,225	139,289
Contract liabilities	$ 7,136	$ 8,206

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Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Raw materials	$ 59,627	$ 57,789
Work in process	45,436	40,416
Finished goods	15,602	12,273
Total inventories	$ 120,665	$ 110,478

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Goodwill and Other Intangible Assets (Details)	3 Months Ended
	Jun. 30, 2021 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill impairment charges	$ 0

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Financial Instruments (Narrative) (Details) $ in Millions			6 Months Ended
	Oct. 27, 2020 USD ($)	Apr. 08, 2016 USD ($)	Jun. 30, 2021 USD ($)	Jun. 16, 2021 USD ($)	Jun. 14, 2021 USD ($)	Nov. 28, 2017 USD ($)	Nov. 27, 2017 USD ($)
Debt Instrument [Line Items]
Minimum interest coverage ratio required			3.00
Leverage ratio			1.08
Interest coverage ratio			15.02
Maximum leverage ratio allowed			3.50
Line of Credit
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 700.0	$ 685.0
Debt instrument, term	4 years	5 years
Borrowings outstanding			$ 350.0
Basis spread on variable rate			1.625%
Line of credit facility, remaining borrowing capacity			$ 350.0
Line of Credit | Interest Rate Swap
Debt Instrument [Line Items]
Revolving credit borrowings							$ 300.0
Amount received from terminate agreement							$ 6.3
Derivative, fixed interest rate					0.838%	2.11%
Derivative, notional amount				$ 350.0	$ 350.0	$ 350.0
LIBOR rate				3.735%
Line of Credit | Interest Rate Swap | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Derivative, basis spread on variable rate				0.08%
Line of Credit | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate			1.50%
Line of Credit | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate			2.00%

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Financial Instruments (Schedule of Long-Term Debt) (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Long-term debt	$ 350,000	$ 398,009
Less: current portion	0	(9)
Long-term debt, net of current portion	350,000	398,000
Long-term Debt
Debt Instrument [Line Items]
Long-term debt	0	$ 9
Interest rate, effective percentage		5.50%
Line of Credit
Debt Instrument [Line Items]
Long-term debt	$ 350,000	$ 398,000
Interest rate, effective percentage	3.74%	3.50%

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Fair-Value Measurements (Schedule of Fair Value of Financial Assets and Liabilities) (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Derivative Asset [Abstract]
Equity securities, cost basis	$ 500	$ 500
Fair Value, Recurring | (Level 1)
Assets:
Cash equivalents	26,848	17,508
Common stock of unaffiliated foreign public company	741	748
Interest rate swaps	0	0
Liabilities:
Interest rate swaps	0	0
Fair Value, Recurring | (Level 2)
Assets:
Cash equivalents	0	0
Common stock of unaffiliated foreign public company	0	0
Interest rate swaps	261	0
Liabilities:
Interest rate swaps	$ (9,270)	$ (12,714)

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Fair-Value Measurements (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Derivative [Line Items]
Interest income (expense), net	$ (4,218)	$ (3,823)	$ (7,787)	$ (7,800)
Interest Rate Swap
Derivative [Line Items]
Interest income (expense), net			3,500	1,900
Interest Rate Swap Buyouts
Derivative [Line Items]
Interest income (expense), net			$ 300	$ 400

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Contingencies (Narrative) (Details) $ in Millions	Jun. 30, 2021 USD ($) claim	Dec. 31, 2020 claim	Dec. 31, 2019 claim	Dec. 31, 2018 claim	Dec. 31, 2017 claim	Dec. 31, 2016 claim	Dec. 31, 2015 claim
Loss Contingencies [Line Items]
Number of pending claims	3,617
Asbestos Issue
Loss Contingencies [Line Items]
Total resolved claims, by means of settlement or dismissal	37,957
Total cost of resolution | $	$ 10.4
Confirmed insurance coverage | $	$ 140.0
Resolution costs paid by insurance carrier	100.00%
Number of pending claims	3,617	3,615	3,708	3,684	3,730	3,745	3,791
Asbestos Issue | Brandon Drying Fabrics, Inc.
Loss Contingencies [Line Items]
Total resolved claims, by means of settlement or dismissal	7,709
Resolution costs paid by insurance carrier	100.00%
Number of pending claims	12

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Contingencies (Schedule of Changes in Claims) (Details) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021 USD ($) claim	Dec. 31, 2020 USD ($) claim	Dec. 31, 2019 USD ($) claim	Dec. 31, 2018 USD ($) claim	Dec. 31, 2017 USD ($) claim	Dec. 31, 2016 USD ($) claim
Loss Contingencies [Line Items]
Closing Number of Claims	3,617
Asbestos Issue
Loss Contingencies [Line Items]
Opening Number of Claims	3,615	3,708	3,684	3,730	3,745	3,791
Claims Dismissed, Settled, or Resolved	9	152	51	152	105	148
New Claims	11	59	75	106	90	102
Closing Number of Claims	3,617	3,615	3,708	3,684	3,730	3,745
Amounts Paid (thousands) to Settle or Resolve | $	$ 0	$ 57	$ 25	$ 100	$ 55	$ 758

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Changes in Shareholders' Equity (Schedule of Activity in Shareholders' Equity) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2019
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of the period	$ 826,211	$ 819,865	$ 669,561	$ 702,689	$ 819,865	$ 702,689
Accounting Standards Update [Extensible Enumeration]							us-gaap:AccountingStandardsUpdate201613Member
Net income	31,440	27,609	32,449	7,594	59,050	40,043
Compensation and benefits paid or payable in shares	692	(13)	466	(682)
Options exercised	21	128	20
Shares issued to Directors'	947		733
Cumulative translation adjustments	13,957	(16,165)	9,116	(25,638)
Pension and postretirement liability adjustments	(130)	509	142	890
Derivative valuation adjustment	1,394	752	(187)	(7,708)
Balance at end of the period	$ 868,059	$ 826,211	$ 706,158	669,561	$ 868,059	$ 706,158	$ 702,689
Dividends declared per share, Class A and Class B (in dollars per share)	$ 0.20		$ 0.19		$ 0.40	$ 0.38
Common Class A
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of the period			$ 39
Balance at the beginning of the period (in shares)			39,112,000
Options exercised (in shares)	1,000	6,000	1,000
Dividends declared	$ (6,150)	$ (6,150)	$ (5,835)	(5,834)
Balance at end of the period				$ 39
Balance at the end of the period (in shares)				39,112,000
Dividends declared per share, Class A and Class B (in dollars per share)	$ 0.20	$ 0.20	$ 0.19	$ 0.19
Common Class B
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of the period			$ 2
Balance at the beginning of the period (in shares)		1,617,998	1,618,000		1,617,998
Dividends declared	$ (323)	$ (324)	$ (307)	$ (307)
Balance at end of the period				$ 2
Balance at the end of the period (in shares)	1,617,998			1,618,000	1,617,998
Dividends declared per share, Class A and Class B (in dollars per share)	$ 0.20	$ 0.20	$ 0.19	$ 0.19
Cumulative Effect, Period of Adoption, Adjustment
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of the period				$ (1,443)		$ (1,443)
Balance at end of the period							(1,443)
Common Stock | Common Class A
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of the period	$ 39	$ 39		$ 39	$ 39	$ 39
Balance at the beginning of the period (in shares)	39,141,000	39,115,000		39,099,000	39,115,000	39,099,000
Compensation and benefits paid or payable in shares (in shares)		20,000		13,000
Balance at end of the period	$ 39	$ 39	$ 39		$ 39	$ 39	$ 39
Balance at the end of the period (in shares)	39,142,000	39,141,000	39,113,000		39,142,000	39,113,000	39,099,000
Common Stock | Common Class B
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of the period	$ 2	$ 2		$ 2	$ 2	$ 2
Balance at the beginning of the period (in shares)	1,618,000	1,618,000		1,618,000	1,618,000	1,618,000
Balance at end of the period	$ 2	$ 2	$ 2		$ 2	$ 2	$ 2
Balance at the end of the period (in shares)	1,618,000	1,618,000	1,618,000		1,618,000	1,618,000	1,618,000
Additional paid-in capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of the period	$ 433,811	$ 433,696	$ 431,836	$ 432,518	$ 433,696	$ 432,518
Compensation and benefits paid or payable in shares	692	(13)	466	(682)
Options exercised	21	128	20
Shares issued to Directors'	706		416
Balance at end of the period	435,230	433,811	432,738	431,836	435,230	432,738	$ 432,518
Retained earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of the period	791,854	770,746	700,021	698,496	770,746	698,496
Net income	31,397	27,582	32,354	9,109
Balance at end of the period	816,778	791,854	726,233	700,021	816,778	726,233	698,496
Retained earnings | Common Class A
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared	(6,150)	(6,150)	(5,835)	(5,834)
Retained earnings | Common Class B
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared	(323)	(324)	(307)	(307)
Retained earnings | Cumulative Effect, Period of Adoption, Adjustment
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of the period				(1,443)		(1,443)
Balance at end of the period							(1,443)
Accumulated other comprehensive income
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of the period	(147,102)	(132,408)	(208,546)	(175,981)	(132,408)	(175,981)
Cumulative translation adjustments	13,774	(15,955)	8,964	(25,747)
Pension and postretirement liability adjustments	(130)	509	142	890
Derivative valuation adjustment	1,394	752	(187)	(7,708)
Balance at end of the period	(132,064)	(147,102)	(199,627)	(208,546)	(132,064)	(199,627)	(175,981)
Treasury Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of the period	$ (256,009)	$ (256,009)	$ (256,391)	$ (256,391)	$ (256,009)	$ (256,391)
Balance at the beginning of the period (in shares)	8,391,000	8,391,000	8,409,000	8,409,000	8,391,000	8,409,000
Shares issued to Directors' (in shares)	(11,000)		(15,000)
Shares issued to Directors'	$ 241		$ 317
Balance at end of the period	$ (255,768)	$ (256,009)	$ (256,074)	$ (256,391)	$ (255,768)	$ (256,074)	$ (256,391)
Balance at the end of the period (in shares)	8,380,000	8,391,000	8,394,000	8,409,000	8,380,000	8,394,000	8,409,000
Noncontrolling Interest
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of the period	$ 3,616	$ 3,799	$ 2,600	$ 4,006	$ 3,799	$ 4,006
Net income	43	27	95	(1,515)
Cumulative translation adjustments	183	(210)	152	109
Balance at end of the period	$ 3,842	$ 3,616	$ 2,847	$ 2,600	$ 3,842	$ 2,847	$ 4,006