AMERICAN BILTRITE INC

CIK:0000004611|SEC Filings

Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2011

10. Other Comprehensive Income (Loss)

The Company records unrealized gains and losses on foreign currency translation adjustments and changes in pension liabilities in other comprehensive income. Components of other comprehensive income (loss) for the years ended December 31, 2011 and 2010 were as follows (in thousands):

	2011			2010

Foreign currency translation adjustments	$	(413	)	$	997
Defined benefits plan adjustments		(5,259	)		(719	)
Deconsolidation of Congoleum		–			37,127
Net change in accumulated other comprehensive income	$	(5,672	)	$	37,405

During 2011 and 2010, the Company recorded unrealized losses and gains, respectively, as a result of changes in the exchange rates used to convert Canadian dollars to U.S. dollars. The exchange rates used to translate the Canadian division’s balance sheets as of December 31, 2011 and 2010 were approximately 2% lower and 5% higher, respectively, than the exchange rate used for the prior year end.

During 2011 and 2010, the Company recorded a net adjustment of $5.3 million and $719 thousand, respectively, to accumulated other comprehensive income (“AOCI”) as a result of changes in the funded status of the pension plans of the continuing operations (see Note 7).

The deconsolidation of Congoleum in July 2010 resulted in the elimination from American Biltrite’s consolidated stockholders’ equity of the accumulated deficit attributed to Congoleum, $37.1 million of which was recorded against accumulated other comprehensive income for prior period pension and other benefit plans adjustments (see Note 1).

As of December 31, 2011 and 2010, the components of accumulated other comprehensive loss, net of taxes and noncontrolling interests, were as follows (in thousands):

	2011			2010

Foreign currency translation adjustments	$	2,897		$	3,310
Pension liability		(10,252	)		(4,993	)

	$	(7,355	)	$	(1,683	)

Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Operating activities
Net (loss) income	$ (1,653)	$ 57,224
Net income of discontinued operation, net of noncontrolling interests (including gain on deconsolidation of $53,565 in 2010)		(52,938)
Net (loss) income from continuing operations	(1,653)	4,286
Adjustments to reconcile net loss income from continuing operations to net cash provided (used) by operating activities:
Depreciation and amortization	4,343	4,494
Provision for doubtful accounts	2,447	2,768
Stock compensation expense	164	198
Deferred taxes	643	(1,724)
Change in operating assets and liabilities:
Accounts and notes receivable	(917)	(5,642)
Inventories	(1,352)	(5,133)
Prepaid expenses and other assets	181	(189)
Accounts payable and accrued expenses	(1,300)	2,614
Income taxes	(1,095)
Other	(1,998)	1,108
Net cash (used) provided by operating activities	(537)	2,780
Investing activities
Investments in property, plant and equipment	(2,569)	(2,001)
Purchase of short-term investments	(4,800)	(4,800)
Proceeds from sale of short-term investments	4,800	4,800
Net cash used in investing activities	(2,569)	(2,001)
Financing activities
Net short-term borrowings (repayments)	4,402	538
Payments on long-term debt	(1,581)	(1,244)
Proceeds from exercise of stock options	2
Purchase of treasury stock		(1)
Net cash provided (used) in financing activities	2,823	(707)
Effect of foreign exchange rate changes on cash	395	393
Net increase in cash	112	465
Cash and cash equivalents at beginning of year	867	402
Cash and cash equivalents of continuing operations at end of year	$ 979	$ 867

Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Current assets:
Cash and cash equivalents	$ 979	$ 867
Short-term investments	2,400	2,400
Accounts receivable, less allowances for doubtful accounts and discounts of $1,842 in 2011 and $1,792 in 2010	20,087	21,887
Inventories	39,460	38,606
Income taxes	217	631
Prepaid expense & other current assets	2,310	2,502
Total current assets	65,453	66,893
Property, plant & equipment, net	28,502	29,891
Other assets:
Insurance for asbestos-related liabilities	17,646	17,646
Other assets	8,799	8,800
Total other assets	26,445	26,446
Total assets	120,400	123,230
Current liabilities:
Accounts payable	9,154	8,829
Accrued expenses	14,330	16,864
Notes payable	8,995	4,639
Current portion of long-term debt	1,458	1,487
Total current liabilities	33,937	31,819
Long-term debt, less current portion	4,299	5,851
Asbestos-related liabilities	17,700	17,700
Other liabilities	20,557	16,771
Total liabilities	76,493	72,141
Stockholders' equity
Common stock, par value $.01, authorized 15,000,000 shares, issued 4,607,902 shares	46	46
Additional paid-in capital	20,116	20,148
Less cost of 1,160,760 and 1,166,545 shares of common stock in treasury at December 31, 2011 and 2010, respectively	(14,958)	(15,133)
Retained earnings	45,115	46,769
Accumulated other comprehensive loss	(7,355)	(1,683)
Total stockholders' equity of controlling interests	42,964	50,147
Noncontrolling interests	943	942
Total stockholders' equity	43,907	51,089
Total liabilities and stockholders' equity	$ 120,400	$ 123,230