SEC Filing | Albany International Corp

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ain-20220630

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, 2022


☐			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 31.1 million shares of Class A Common Stock and no shares of Class B Common Stock outstanding as of July 15, 2022.

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, 2022 and 2021	1
	Consolidated statements of comprehensive income/(loss) – three and six months ended June 30, 2022 and 2021	2
	Consolidated balance sheets as of June 30, 2022 and December 31, 2021	3
	Consolidated statements of cash flows – three and six months ended June 30, 2022 and 2021	4
	Notes to consolidated financial statements	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
	Forward-looking statements	20
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	35
Item 4.	Controls and Procedures	35
Part II Other Information
Item 1.	Legal Proceedings	36
Item 1A.	Risk Factors	36
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	36
Item 3.	Defaults upon Senior Securities	37
Item 4.	Mine Safety Disclosures	37
Item 5.	Other Information	37
Item 6.	Exhibits	38

Index

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,
	2022		2021		2022		2021
Net sales	$	261,369	$	234,519	$	505,538	$	456,880
Cost of goods sold	160,776		132,791		313,341		266,606

Gross profit	100,593		101,728		192,197		190,274
Selling, general, and administrative expenses	39,745		42,009		82,452		79,203
Technical and research expenses	10,161		9,762		20,050		19,243
Restructuring expenses, net	(28)		(9)		226		43

Operating income	50,715		49,966		89,469		91,785
Interest expense, net	3,933		4,218		7,542		7,787
Other (income)/expense, net	(7,045)		862		(10,973)		1,462

Income before income taxes	53,827		44,886		92,900		82,536
Income tax expense	14,458		13,446		25,456		23,486

Net income	39,369		31,440		67,444		59,050
Net income attributable to the noncontrolling interest	168		43		506		70
Net income attributable to the Company	$	39,201	$	31,397	$	66,938	$	58,980

Earnings per share attributable to Company shareholders - Basic	$	1.25	$	0.97	$	2.12	$	1.82

Earnings per share attributable to Company shareholders - Diluted	$	1.25	$	0.97	$	2.11	$	1.82

Shares of the Company used in computing earnings per share:
Basic	31,268		32,375		31,571		32,363

Diluted	31,378		32,422		31,668		32,411

Dividends declared per share, Class A and Class B	$	0.21	$	0.20	$	0.42	$	0.40

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

Index

ALBANY INTERNATIONAL CORP.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)

(in thousands)

(unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Net income	$	39,369	$	31,440	$	67,444	$	59,050

Other comprehensive income/(loss), before tax:
Foreign currency translation and other adjustments	(39,319)		13,651		(40,870)		(1,788)
Amortization of pension liability adjustments:
Prior service credit	(1,122)		(1,118)		(2,245)		(2,237)
Net actuarial loss	967		1,108		1,938		2,217
Payments and amortization related to interest rate swaps included in earnings	1,168		1,770		2,864		3,246
Derivative valuation adjustment	3,316		125		15,037		(353)

Income taxes related to items of other comprehensive income/(loss):
Amortization of prior service credit	343		335		687		671
Amortization of net actuarial loss	(296)		(332)		(593)		(665)
Payments and amortization related to interest rate swaps included in earnings	(295)		(457)		(725)		(838)
Derivative valuation adjustment	(840)		(44)		(3,809)		91
Comprehensive income	3,291		46,478		39,728		59,394
Comprehensive income attributable to the noncontrolling interest	77		226		471		43
Comprehensive income attributable to the Company	$	3,214	$	46,252	$	39,257	$	59,351

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

Index

ALBANY INTERNATIONAL CORP.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

(unaudited)


	June 30, 2022		December 31, 2021
ASSETS
Cash and cash equivalents	$	320,870	$	302,036
Accounts receivable, net	199,489		191,985
Contract assets, net	135,907		112,546
Inventories	133,667		117,882
Income taxes prepaid and receivable	1,979		1,958
Prepaid expenses and other current assets	43,187		32,394
Total current assets	$	835,099	$	758,801

Property, plant and equipment, net	419,142		436,417
Intangibles, net	35,722		39,081
Goodwill	176,775		182,124
Deferred income taxes	17,894		26,376
Noncurrent receivables, net	29,843		31,849
Other assets	98,580		81,416
Total assets	$	1,613,055	$	1,556,064

LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable	$	70,430	$	68,954
Accrued liabilities	110,074		124,325
Current maturities of long-term debt	—		—
Income taxes payable	7,656		14,887
Total current liabilities	188,160		208,166

Long-term debt	485,000		350,000
Other noncurrent liabilities	107,049		107,794
Deferred taxes and other liabilities	11,064		12,499
Total liabilities	791,273		678,459

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; 40,784,934 issued in 2022 and 40,760,577 in 2021	41		41
Class B Common Stock, par value $.001 per share; authorized 25,000,000 shares; none issued and outstanding in 2022 and 104 in 2021	—		—
Additional paid in capital	439,450		436,996
Retained earnings	916,805		863,057
Accumulated items of other comprehensive income:
Translation adjustments	(147,271)		(105,880)
Pension and postretirement liability adjustments	(38,182)		(38,490)
Derivative valuation adjustment	11,753		(1,614)
Treasury stock (Class A), at cost; 9,674,542 shares in 2022 and 8,665,090 in 2021	(364,923)		(280,143)
Total Company shareholders' equity	817,673		873,967
Noncontrolling interest	4,109		3,638
Total equity	821,782		877,605
Total liabilities and shareholders' equity	$	1,613,055	$	1,556,064

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

Index

ALBANY INTERNATIONAL CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
OPERATING ACTIVITIES
Net income	$	39,369	$	31,440	$	67,444	$	59,050
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	15,679		15,971		31,276		32,560
Amortization	1,433		2,280		3,598		4,573
Change in deferred taxes and other liabilities	804		974		2,596		5,416
Impairment of property, plant, equipment, and inventory	(206)		353		2,662		538
Non-cash interest expense	279		265		561		310
Compensation and benefits paid or payable in Class A Common Stock	1,702		1,639		2,447		1,626
Provision for credit losses from uncollected receivables and contract assets	(532)		27		1,326		(83)
Foreign currency remeasurement (gain)/loss on intercompany loans	1,125		(723)		(1,260)		(1,031)
Fair value adjustment on foreign currency options	596		1		(381)		140

Changes in operating assets and liabilities that provided/(used) cash:
Accounts receivable	1,267		(129)		(14,407)		(3,365)
Contract assets	(24,140)		9,539		(23,868)		25,643
Inventories	(13,586)		(1,821)		(21,135)		(10,384)
Prepaid expenses and other current assets	(2,498)		(606)		(4,474)		(1,505)
Income taxes prepaid and receivable	(1,889)		1,156		(60)		(309)
Accounts payable	7,851		(4,580)		7,476		4,608
Accrued liabilities	7,605		2,062		(11,745)		(17,423)
Income taxes payable	3,151		4,121		(7,739)		(3,956)
Noncurrent receivables	1,250		1,099		1,864		1,587
Other noncurrent liabilities	(1,338)		(2,166)		(3,252)		(4,263)
Other, net	5,182		1,051		4,784		1,908
Net cash provided by operating activities	43,104		61,953		37,713		95,640

INVESTING ACTIVITIES
Purchases of property, plant and equipment	(19,940)		(10,302)		(35,659)		(22,836)
Purchased software	(331)		(286)		(366)		(288)
Net cash used in investing activities	(20,271)		(10,588)		(36,025)		(23,124)

FINANCING ACTIVITIES
Proceeds from borrowings	58,000		—		135,000		8,000
Principal payments on debt	—		(34,002)		—		(56,009)
Principal payments on finance lease liabilities	(264)		(355)		(654)		(704)
Purchase of Treasury shares	(42,550)		—		(84,780)		—
Taxes paid in lieu of share issuance	—		—		(770)		(998)
Proceeds from options exercised	—		21		7		149
Dividends paid	(6,657)		(6,474)		(13,399)		(12,942)
Net cash provided by/(used in) financing activities	8,529		(40,810)		35,404		(62,504)

Effect of exchange rate changes on cash and cash equivalents	(17,907)		4,904		(18,258)		2,002

Increase in cash and cash equivalents	13,455		15,459		18,834		12,014
Cash and cash equivalents at beginning of period	307,415		237,871		302,036		241,316
Cash and cash equivalents at end of period	$	320,870	$	253,330	$	320,870	$	253,330

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

Index

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, 2021.

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.

Machine Clothing:

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.

Albany Engineered Composites:

The Albany Engineered Composites (“AEC”) segment provides highly engineered, advanced composite structures to customers in the commercial and defense aerospace industries. The segment includes Albany Safran Composites, LLC (“ASC”), in which our customer SAFRAN Group (“Safran”) owns a 10 percent noncontrolling interest. AEC, through ASC, is the exclusive supplier of the LEAP program of advanced composite fan blades and fan cases under a long-term supply contract. The LEAP engine is used on the Airbus A320neo, Boeing 737 MAX, and COMAC 919 aircraft . AEC's largest aerospace customer is the SAFRAN Group and sales to SAFRAN (consisting primarily of fan blades and cases for CFM's LEAP engine) accounted for approximately 12 percent of the Company's consolidated Net sales in 2021. AEC net sales to Safran were $83.1 million and $54.0 million in the first six months of 2022 and 2021, respectively. The total of Accounts receivable, Contract assets and Noncurrent receivables due from Safran amounted to $77.7 million and $79.6 million as of June 30, 2022 and December 31, 2021, respectively.

Other significant programs by AEC include the Sikorsky CH-53K, F-35, JASSM, and Boeing 787 programs. AEC also supplies vacuum waste tanks for the Boeing 7-Series programs, and specialty components for the Rolls Royce lift fan on the F-35, as well as the fan case for the GE9X engine. In 2021, approximately 47 percent of AEC sales were related to U.S. government contracts or programs.

Index

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)	2022		2021		2022		2021
Net sales
Machine Clothing	$	151,670	$	159,921	$	305,732	$	308,127
Albany Engineered Composites	109,699		74,598		199,806		148,753
Consolidated total	$	261,369	$	234,519	$	505,538	$	456,880
Operating income/(loss)
Machine Clothing	$	54,861	$	55,902	$	104,505	$	106,264
Albany Engineered Composites	9,535		7,164		10,730		10,102
Corporate expenses	(13,681)		(13,100)		(25,766)		(24,581)
Operating income	$	50,715	$	49,966	$	89,469	$	91,785
Reconciling items:
Interest income	(846)		(401)		(1,498)		(930)
Interest expense	4,779		4,619		9,040		8,717
Other (income)/expense, net	(7,045)		862		(10,973)		1,462
Income before income taxes	$	53,827	$	44,886	$	92,900	$	82,536

A subsidiary within our Machine Clothing segment has been a partner in a joint venture (“JV”) that supplies paper machine clothing products to local papermakers in Russia. In March 2022, we made the decision to cease doing business in Russia, including giving notice to our JV partner of our intent to exit the venture. As a result, we recognized $1.8 million expense in the consolidated statement of operations, representing reserves against the risk of uncollectible customer receivables and obsolescence of certain inventory destined for Russian customers. We also wrote down the net book value of our investment in the aforementioned JV to reflect our intent to exit such venture, resulting in $0.8 million impairment loss during the first quarter of 2022.

Revenue Recognition:

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 $1.2 million for the second quarter of 2022 and decreased operating income $0.6 million for the first half of 2022. Adjustments 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.

Index

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, 2022
(in thousands)	Point in Time Revenue Recognition		Over Time Revenue Recognition		Total
Machine Clothing	$	150,770	$	900	$	151,670

Albany Engineered Composites
ASC	—		41,661		41,661
Other AEC	5,018		63,020		68,038
Total Albany Engineered Composites	5,018		104,681		109,699

Total revenue	$	155,788	$	105,581	$	261,369


	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, 2022
(in thousands)	Point in Time Revenue Recognition		Over Time Revenue Recognition		Total
Machine Clothing	$	303,933	$	1,799	$	305,732

Albany Engineered Composites
ASC	—		81,373		81,373
Other AEC	8,931		109,502		118,433
Total Albany Engineered Composites	8,931		190,875		199,806

Total revenue	$	312,864	$	192,674	$	505,538

Index


	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

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)	2022		2021		2022		2021
Americas PMC	$	79,062	$	82,343	$	155,678	$	155,645
Eurasia PMC	52,368		55,900		107,854		111,043
Engineered Fabrics	20,240		21,678		42,200		41,439
Total Machine Clothing Net sales	$	151,670	$	159,921	$	305,732	$	308,127

We do not disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less. Contracts in the MC segment are generally for periods of less than a year. Most contracts in the AEC segment are relatively short duration firm-fixed-price orders. Remaining performance obligations on contracts that had an original duration of greater than one year totaled $579 million and $149 million as of June 30, 2022 and 2021, respectively, and related primarily to firm contracts in the AEC segment. Of the remaining performance obligations as of June 30, 2022, we expect to recognize as revenue approximately $77 million during 2022, $96 million during 2023, $71 million during 2024, and the remainder thereafter.

Index

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, 2022 and 2021, was as follows:


	Pension plans				Other postretirement benefits
(in thousands)	2022		2021		2022		2021
Components of net periodic benefit cost:
Service cost	$	708	$	1,090	$	57	$	66
Interest cost	2,828		2,674		611		551
Expected return on assets	(3,405)		(3,211)		—		—
Amortization of prior service cost/(credit)	(1)		7		(2,244)		(2,244)
Amortization of net actuarial loss	997		1,087		941		1,130
Net periodic benefit cost	$	1,127	$	1,647	$	(635)	$	(497)

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 2022 or 2021.

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. Other (Income)/Expense, net

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


	Three months ended June 30,				Six months ended June 30,
(in thousands)	2022		2021		2022		2021
Currency transaction (gains)/losses	$	(7,284)	$	175	$	(11,024)	$	341
Bank fees and amortization of debt issuance costs	80		104		176		210
Components of net periodic pension and postretirement cost other than service cost	(137)		(4)		(273)		(6)
Other	296		587		148		917
Total	$	(7,045)	$	862	$	(10,973)	$	1,462

Other (income)/expense, net, included foreign currency related transactions which resulted in gains of $7.3 million and $11.0 million in the three and six month periods ended June 30, 2022, respectively, as compared to losses of $0.2 million and $0.3 million in the three and six month periods ended June 30, 2021, respectively. The weaker Euro during the three and six month periods ended June 30, 2022 led to the gains on foreign currency related transactions during such periods.

Index

5. Income Taxes

The following table presents components of income tax expense for the three and six months ended June 30, 2022 and 2021:


	Three months ended June 30,				Six months ended June 30,
(in thousands, except percentages)	2022		2021		2022		2021
Income tax based on income from continuing operations (1)	$	15,165	$	13,251	$	26,107	$	24,583
Provision for change in estimated tax rate	66		(218)		66		(218)
Income tax before discrete items	15,231		13,033		26,173		24,365
Discrete tax expense:
Exercise of U.S. stock options	—		(14)		(9)		(156)
Impact of amended tax returns	(17)		—		(98)		—
True-up of prior year estimated taxes	(612)		22		(508)		(1,421)
Enacted tax legislation and rate change	—		352		—		352
Provision for/resolution of tax audits and contingencies, net	(146)		—		(140)		278
Other	2		53		38		68
Total income tax expense	$	14,458	$	13,446	$	25,456	$	23,486
(1) Calculated at estimated annual tax rates of 28.2% and 29.5% for the three and six months ended June 30, 2022 and 2021.

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.

6. 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)	2022		2021		2022		2021
Net income attributable to the Company	$	39,201	$	31,397	$	66,938	$	58,980

Weighted average number of shares:
Weighted average number of shares used in calculating basic net income per share	31,268		32,375		31,571		32,363
Effect of dilutive stock-based compensation plans:
Stock options	—		1		—		2
RSU and MPP shares	110		46		97		46

Weighted average number of shares used in calculating diluted net income per share	31,378		32,422		31,668		32,411

Average market price of common stock used for calculation of dilutive shares	$	81.46	$	87.53	$	83.77	$	83.48

Net income attributable to the Company per share:
Basic	$	1.25	$	0.97	$	2.12	$	1.82
Diluted	$	1.25	$	0.97	$	2.11	$	1.82

Index

7. Accumulated Other Comprehensive Income (AOCI)

The table below presents changes in the components of AOCI for the period December 31, 2021 to June 30, 2022:


(in thousands)	Translation adjustments		Pension and postretirement liability adjustments		Derivative valuation adjustment		Total Other Comprehensive Income
December 31, 2021	$	(105,880)	$	(38,490)	$	(1,614)	$	(145,984)
Other comprehensive income/(loss) before reclassifications, net of tax	(41,391)		521		11,228		(29,642)
Interest expense related to swaps reclassified to the Consolidated Statements of Income, net of tax	—		—		2,139		2,139
Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income, net of tax	—		(213)		—		(213)
Net current period other comprehensive income	(41,391)		308		13,367		(27,716)
June 30, 2022	$	(147,271)	$	(38,182)	$	11,753	$	(173,700)

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 valuation 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)