3. Reportable Segments and Geographic Data In accordance with applicable disclosure guidance for enterprise segments and related information, the internal organization that is used by management for making operating decisions and assessing performance is used as the basis for our reportable segments. The accounting policies of the segments are the same as those described in Note 1. Corporate expenses include wages and benefits for corporate headquarters personnel, costs related to information systems development and support, and professional fees related to legal, audit, and other activities. These costs are not allocated to the reportable segments because the decision-making for these functions lies outside of the segments. Machine Clothing: The Machine Clothing (MC) segment supplies customized, consumable permeable and impermeable belts used in the manufacture of paper, paperboard, nonwovens, fiber cement and several other industrial applications. We sell our MC products directly to customer end-users in countries across the globe. Our products, manufacturing processes, and distribution channels for MC are substantially the same in each region of the world in which we operate. We design, manufacture, and market paper machine clothing (used in the manufacturing of paper, paperboard, tissue and towel) for each section of the paper machine and for every grade of paper. Paper machine clothing products are customized, consumable products of technologically sophisticated design that utilize polymeric materials in a complex structure. Albany Engineered Composites : The Albany Engineered Composites (AEC) segment, including Albany Safran Composites, LLC (ASC), in which our customer SAFRAN Group (Safran) owns a 10 percent noncontrolling interest, provides highly engineered, advanced composite structures to customers in the commercial and defense aerospace industries. AECs largest program relates to CFM Internationals LEAP engine. Under this program, AEC through ASC, is the exclusive supplier of advanced composite fan blades and cases under a long-term supply contract. The manufacturing spaces used for the production of parts under the long-term supply agreement are owned by Safran, and leased to the Company at either a market rent or a minimal cost. All lease expense is reimbursable by Safran to the Company due to the cost-plus nature of the supply agreement. AEC net sales to Safran were $186.3 million in 2018, $119.2 million in 2017, and $88.9 million in 2016. The total of invoiced receivables, Contract assets and Noncurrent receivable due from Safran amounted to $96.2 million and $58.6 million as of December 31, 2018 and 2017, respectively. Other significant programs served by AEC include the F-35, Boeing 787, and the fan case for the GE9X engine. In 2018, approximately 25 percent of AEC sales were related to U.S. government contracts or programs. As described in Note 2, effective January 1, 2018, the Company adopted the provisions of ASC 606, Revenue from contracts with customers, using the cumulative effect method for translation. Periods prior to 2018 have not been restated. The following tables show data by reportable segment, reconciled to consolidated totals included in the financial statements: (in thousands) 2018 2017 2016 Year ended December 31, 2018 Increase/(decrease) attributable to application of ASC 606 Net Sales Machine Clothing $611,858 $590,357 $582,190 $(3,970 ) Albany Engineered Composites 370,621 273,360 197,649 (3,150 ) Consolidated total $982,479 $863,717 $779,839 $(7,120 ) Depreciation and amortization Machine Clothing 30,813 33,527 36,428  Albany Engineered Composites 43,205 33,533 24,211  Corporate expenses 5,018 4,896 6,822  Consolidated total $79,036 $71,956 $67,461 $ Operating income/(loss) Machine Clothing 169,836 153,980 152,505 (1,605 ) Albany Engineered Composites 16,647 (31,657 ) (15,363 ) 4,930 Corporate expenses (49,075 ) (43,647 ) (43,010 )  Operating income $137,408 $78,676 $94,132 $3,325 Reconciling items: Interest income (2,118 ) (1,511 ) (2,077 )  Interest expense 20,242 18,602 15,541  Other expense, net 4,037 6,877 2,402  Income before income taxes $115,247 $54,708 $78,266 $3,325 As described in Note 4, effective January 1, 2018, the Company adopted an accounting update that affects the classification of components of pension and postretirement benefit costs. As a result of adopting that update, some costs that were previously included in operating expenses shall now be included in Other expense, net. Periods prior to 2018 have been restated to conform to the current year presentation (see Note 4). The table below presents restructuring costs by reportable segment (also see Note 5): (in thousands) 2018 2017 2016 Restructuring expenses, net Machine Clothing $12,278 $3,429 $6,181 Albany Engineered Composites 3,048 10,062 2,314 Corporate expenses 244 - (7 ) Consolidated total $15,570 $13,491 $8,488 In the measurement of assets utilized by each reportable segment, we include Inventories, Accounts receivable, Contract assets, Noncurrent receivable, net property, plant and equipment, intangibles and goodwill. At the January 1, 2018 date of adoption of ASC 606, Machine Clothing (MC) assets increased by $22.5 million, and Albany Engineered Composites (AEC) assets decreased by $14.1 million. Excluded from segment assets are cash, tax related assets, prepaid and other current assets, and certain other assets not directly associated with segment operations. The following table presents assets and capital expenditures by reportable segment: (in thousands) 2018 2017 2016 Segment assets Machine Clothing $453,836 $464,468 $454,010 Albany Engineered Composites 633,394 584,076 514,527 Reconciling items: Cash 197,755 183,727 181,742 Income taxes prepaid, receivable and deferred 70,095 74,914 74,078 Other assets 62,912 54,013 39,076 Consolidated total assets $1,417,992 $1,361,198 $1,263,433 Capital expenditures and purchased software Machine Clothing $20,230 $20,522 $15,651 Albany Engineered Composites 60,121 63,865 54,678 Corporate expenses 2,535 3,250 3,163 Consolidated total $82,886 $87,637 $73,492 In 2018, AEC finalized a modification to the lease of its primary manufacturing facility in Salt Lake City, Utah, which is accounted for as a build-to-suit lease with a failed sale-leaseback. The modification, which includes additional manufacturing space, extends the minimum lease period until December 31, 2029. The lease modification resulted in a non-cash increase of $12.7 million to both Property, plant and equipment, net, and to Long-term debt in the Consolidated Balance Sheets. Due to the non-cash nature of the transaction, those increases are excluded from amounts reported in the Consolidated Statements of Cash Flows. The following table shows data by geographic area. Net sales are based on the location of the operation recording the final sale to the customer. Net sales recorded by our entity in Switzerland are derived from products sold throughout Europe and Asia, and are invoiced in various currencies. (in thousands) 2018 2017 2016 Net sales United States $519,349 $459,525 $396,238 Switzerland 157,339 147,601 145,479 France 85,386 57,195 42,862 Brazil 62,093 60,535 60,287 China 50,923 48,920 48,043 Mexico 48,534 31,902 27,526 Other countries 58,855 58,039 59,404 Consolidated total $982,479 $863,717 $779,839 Property, plant and equipment, at cost, net United States $272,584 $252,639 $245,626 China 48,686 61,840 65,987 France 50,245 58,196 42,272 Mexico 40,343 22,981 7,781 Korea 12,396 14,558 15,585 United Kingdom 12,042 14,256 14,591 Canada 8,154 10,230 11,455 Other countries 17,605 19,602 19,267 Consolidated total $462,055 $454,302 $422,564