UNITED STATES

(423) 899-5898

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

ASTEC INDUSTRIES, INC.

Index to Annual Report on Form 10-K

For the Year Ended December 31, 20202021

GENERAL

Unless otherwise indicated by the context, all references in this Annual Report on Form 10-K to "we," "us," "our," or the "Company" refer to Astec Industries, Inc. and our subsidiaries. References to "Parent Company" in this Annual Report on Form 10-K refer to Astec Industries, Inc. only.

TRADEMARKS AND TRADE NAMES

Except when discussing competitors and their products herein, the trademarks and trade names used in this Annual Report on Form 10-K are the property of Astec Industries, Inc. or its subsidiaries, as the case may be.

SAFE HARBOR STATEMENTS UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This Annual Report on Form 10-K, particularly "Management’s"Management's Discussion and Analysis of Financial Condition and Results of Operations," contains forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such statements relate to, among other things, income, earnings, cash flows, changes in operations, operating improvements, businesses in which we operate and the United States and global economies. Statements in this Annual Report on Form 10-K that are not historical are hereby identified as "forward-looking statements" and may be indicated by words or phrases such as "anticipates," "supports," "plans," "projects," "expects," "believes," "should," "would," "could," "hope," "forecast," "management is of the opinion," use of the future tense and similar words or phrases.

These forward-looking statements are based largely on management's expectations, which are subject to a number of known and unknown risks, uncertainties and other factors discussed in this Annual Report on Form 10-K, including those risks described in Part I, Item 1A. Risk Factors hereof, and in other documents filed by us with the Securities and Exchange Commission, which may cause actual results, financial or otherwise, to be materially different from those anticipated, expressed or implied by the forward-looking statements. All forward-looking statements included in this document are based on information available to us on the date hereof, and we assume no obligation to update any such forward-looking statements to reflect future events or circumstances, except as required by law.

PART I

Astec Industries, Inc. is a Tennessee corporation which was incorporated in 1972. We design, engineer, manufacture and market equipment and components used primarily in road building and related construction activities, as well as other products discussed below. Our products are used in each phase of road building, from quarrying and crushing the aggregate to application of the road surface for both asphalt and concrete. We also manufacture certain equipment and components unrelated to road construction, including equipment for the mining, quarrying, construction and demolition industries and port and rail yard operators; industrial heat transfer equipment; commercial whole-tree pulpwood chippers; horizontal grinders; blower trucks; commercial and industrial burners; and combustion control systems.

Our products are marketed both domestically and internationally primarily to asphalt producers; highway and heavy equipment contractors; utility contractors; sand and gravel producers; construction, demolition, recycle and crushing contractors; mine and quarry operators; port and inland terminal authorities; power stations and domestic and foreign government agencies. In addition to equipment sales, we manufacture and sell replacement parts for equipment in each of our product lines and replacement parts for some competitors' equipment. The distribution and sale of replacement parts is an integral part of our business.

The COVID-19 pandemic has caused significant disruptions to national and global economies. Our U.S. basedeconomies and to our business. While our businesses are designated as essential businesses for critical infrastructure companies by the U.S. Department of Homeland Security and, as such, have generally remained openoperational throughout the pandemic. Two of our foreign operationspandemic, with temporary closures in the Materials Solutions segment, located in Northern IrelandUnited Kingdom and South Africa early in the pandemic, we have been significantly affected by the contributory effects of the pandemic such as dictated by their local governments, temporarily ceased manufacturing activitiesdecreased demand for our products in late March 2020. The South Africa site reopened on May 4, 2020, material price increases, increased lead times from production materials, supplies and parts and labor shortages. These trends continue to impact our business today and may continue to impact our business in the Northern Ireland facility reopened on May 11, 2020. Our top priority isnear-term.

We have also taken precautions to protect our employees and their families and our customers and suppliers from COVID-19 and our operations from any adverse impacts by taking precautionary measures as directed by health authoritiescontinually monitor the markets in which we operate for the effects of COVID-19 and local governments. In early March 2020, we formed a COVID-19 task force, which continually monitors information from government agencies, our sites, customers, suppliersthe related actions of governments and other sources. We have enacted several policiesauthorities to combat the spread of the virus and keep our employees and visitors safe, including work at home initiatives, limits on employee travel, visitor policies, cleaning and disinfecting procedures and mandated temperature checks for visitors and employees. We are utilizing technology to hold meetings virtually as business permits.contain COVID-19.

During 2020, our sales and profits were negatively impacted by theThe COVID-19 pandemic and it may continue to negatively disrupt our business and results of operations in the future. The full extentongoing impact of the COVID-19 pandemic on our operations and the markets we serve remains highly uncertain due to constantly evolving developments including, but not limited to, government directives, treatment availability and will depend largely on future developments related toacceptance, vaccine mandates and the COVID-19 pandemic, including infection rates increasing or returning in various geographic areas, the ultimate durationspread of the COVID-19 pandemic, actions by government authorities to contain the outbreak or treat its impact,new variants, such as re-imposing previously lifted measures or putting in place additional restrictions,the Delta and the widespread distribution and acceptance of an effective vaccine, among other things. These developments are constantly evolvingOmicron variants, and cannot be accurately predicted. See Part I, Item 1A. Risk Factors in this Annual Report on Form 10-K.

Beginning in late 2019, we initiated a strategic transformation focused on implementing new business strategies and a new operating structure. This transformation was focused on aligning our operations under the OneASTEC business model with the strategic pillars of Simplify, Focus and Grow.

As part of our strategic transformation, we have focused on optimizing our organizational structure and operations to execute our profitable growth strategy.

As partSince the inception of these initiatives, we have consolidated four sites and are currently in 2019 and 2020 and recently announced the consolidationprocess of consolidating our Tacoma site. A further discussion of these site, consolidationswhich is included in Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations of this Annual Report on Form 10-K.expected to be completed during early 2022.

We believe enhanced efficiencies across the Astec organization will result from utilizing our OneASTEC business model to concentrate resources on excellence initiatives.

We are focused on growing sales and profits organically as well as selectively pursuing strategic acquisitions and partnerships within the "Rock to Road" value chain.

As partSince the inception of our growth initiatives, we have completed three acquisitions in 2020.acquisitions. A further discussion of these acquisitions is included in Part II, Item 7. Management's Discussion8. Financial Statements and Analysis of Financial Condition and Results of OperationsSupplementary Data of this Annual Report on Form 10-K.

The Corporate category consists primarily of our parent company and Astec Insurance Company ("Astec Insurance"), a captive insurance company, which do not meet the requirements for separate disclosure as an operating segment or inclusion in one of the other reporting segments. We evaluate performance and allocate resources to our operating segments based on profit or loss from operations before United States ("U.S.") federal income taxes, state deferred taxes and corporate overhead and, thus, these costs are included in the Corporate category.

The U.S.sites based sitesin North America within the Infrastructure Solutions segment are primarily manufacturing operations while those located internationallyoutside of North America generally market, service and install equipment and provide parts in the regions in which they operate for many of the products produced by all of our manufacturing sites. Our Thailand site is in the start-up phase of new sales operations.

The primary products produced by the Infrastructure Solutions segment include:

A typical asphalt mixing plant consists of heating and storage equipment for liquid asphalt; cold feed bins for blending aggregates; a counter-flow continuous type unit (Astec Double Barrel) for drying, heating and mixing; a baghouse composed of air filters and other pollution control devices; hot storage bins or silos for temporary storage of hot-mix asphalt; and a control house. We introduced the concept of high plant portability for asphalt plants in 1979. Our current generation of portable asphalt plants is marketed as the Six Pack and consists of six or more portable components designed to be easily transported from one construction site to another, thereby reducing relocation expenses and interruption of operations. High plant portability is an industry innovation developed and successfully marketed by us.

The components in our asphalt mixing plants are fully automated and use both microprocessor-based and programmable logic control systems for efficient operation. The plants are manufactured to meet or exceed federal and state clean air standards. We also build batch type asphalt plants and have developed specialized asphalt recycling equipment for use with our hot-mix asphalt plants.

In addition, we developed the patented water injection warm mix asphalt system, which allows the asphalt mix to be prepared and placed at lower temperatures than conventional systems and operates with a substantial reduction in emissions during paving and load-out. Previous technologies for warm mix production rely on expensive additives, procedures and/or special asphalt cement delivery systems that significantly increase the cost per ton of mix. Our multi-nozzle device eliminates the need for the expensive additives by mixing a small

We are focused on producing equipment with the most advanced mix recycling technology in the industry. More tons of recyclablereclaimed asphalt pavement ("RAP") are available than are currently being utilized due to restrictions in the amount of RAP allowed by various governmental agencies. Our recycle technology is continuously being enhanced and is providing the science to alleviate the concerns driving such restrictions and to improve RAP utilization percentages in the asphalt industry. Our latest system improvement, the RAP Pre-Dryer System, was successfully field prototyped in 2018 and is now available to the industry. It has produced mixes of up to 80% RAP and can consistently produce mixes with 70% RAP. We have also enhanced our Double Barrel equipment line by providing a system with increased drum length and an external mixer that provides the capability to use up to 65% RAP without pre-drying.

Many of our highly technical, sophisticated large asphalt plants, while ideally suited for the United States domestic market, are not as well suited in many international markets. In 2019, we completed testing of our new VoyagerVantage 140 portable asphalt plant designed specifically for the international market. The Voyager 140’sVantage design is based upon our proven Double Barrel drum mixer and has production capacity of 140 metric tons per hour and RAP mixing capabilities of 50%. The Voyager 140Vantage also provides full-size plant features in a compact highly-portable configuration. In addition,Additionally, we are currently developinghave expanded our newmobile plant offering with the newly designed Ventura 140. The Ventura is designed with a counter-flow drying drum that feeds an external coater and provides production rates up to 140 metric tons per hour of virgin mix and is used where recycled material is not available. The Ventura 140SL portable asphalt plant which is also focused on satisfying needs of the international market and introduces a smaller, more mobile plant design with single-load capability. We have also developed the new, hybrid-powered FT4250 mobile impactor plant. Hybrid power allows operators flexible power options using either line power or a genset that allows for reduced noise levels, no engine emissions and the ability to run indoors.

Our pavers have been designed to minimize maintenance costs while exceeding road surface smoothness requirements. Generally, our equipment can be used in tandem with each other or separately with equipment already owned by the customer. Our mobile, self-propelled material transfer vehicle ("Shuttle Buggy") allows continuous paving by separating truck unloading from the paving process while remixing the asphalt. A typical asphalt paver must stop paving to permit truck unloading of asphalt mix. By permitting continuous paving, the Shuttle Buggy allows the asphalt paver to produce a smoother road surface while reducing the time required to pave the road surface and the number of haul trucks required. As a result of the pavement smoothness achieved with this machine, certain states now require the use of the Shuttle Buggy. Studies using infrared technology have revealed problems caused by differential cooling of the hot-mix during hauling, but the Shuttle Buggy remixes the material to a uniform temperature and gradation, thus eliminating these problems. The Shuttle Buggy includes the Guardian System that is designed to anticipate equipment maintenance needs resulting in more uptime reliability while also providing production and performance data as well as real-time location information to the owner. The new SB3000 model introduced to the market in 2020, incorporates features and technology to improve the user experience in terms of improved visibility, ground level operation, as well as improved material handling and vehicle transportability. Our Spray Paver model, which is recommended for use with the Shuttle Buggy, is also designed to carry and spray tack coat directly in front of the hot mix asphalt in a single process, thus eliminating the need for a separate tack truck.

Milling machines remove old asphalt from the road surface before new asphalt mix is applied. Our product line of milling machines, which are designed for larger jobs, are manufactured with a simplified control system, wide conveyors, direct drives and a wide range of horsepower and cutting capabilities to provide versatility in product application. In addition to the half-lane and larger highway class milling machines, we also manufacture a smaller, utility class machine for two-to-four foot cutting widths and a utility class cold planer model mounted on steel wheels. The RX-505, our newest cold planer, is equipped with two new safety features that allow for safe cutter drum access and maintenance and obstacle detection while the machine is in reverse.

Soil stabilizers are produced in multiple configurations and double as asphalt reclaiming machines for road rehabilitations, in addition to their primary purpose of stabilizing soil sub-grades with additives to provide an improved base on which to pave.

Our patented screeds use a hydraulic powered generator to electrify elements that heat a screed plate so asphalt will not stick to it while paving, attach to asphalt paving machines and place asphalt on the roadbed at a desired thickness and width while smoothing and compacting the surface. Our screeds can be configured to fit many types of asphalt paving machines, including machines manufactured by us as well as our competitors.

Equipment forConcrete is one of the world's most used and durable construction materials. Concrete production of concreteequipment is produced primarily manufactured at three facilities: Blair, Burlington and St. Bruno.St-Bruno. Together, these three locationssites produce a market leading product portfolio with many synergistic opportunities to create value for our customers.portfolio. The Blair and St. BrunoSt-Bruno sites were acquired in 2020 and joined the Burlington location to expand our concrete product lineline.

We manufacture leading portable and offering for thestationary concrete production industry.equipment including transit and central mix concrete plants. Our portable concrete plants are known for quick set-up and tear down as well as exceptionable reliability and longevity over numerous relocations. Our stationary concrete production plants are known for custom-engineered design flexibility suitable for various concrete production sites. Our concrete mixer designs include tilt mixers and horizontal reversing mixers. Both mixer types are available as stationary designs with optional mobile and self-erect features. The series oftilt mixer is our most popular mixer type for concrete batch plants, includingpaving and ready mix production while the LO-PRO, the ALL-PRO, the Model S, the portable Mobile 12 and the modular LoGo,horizontal reversing mixers are key products.a low dust, low noise option primarily marketed to ready mix producers.

We also produce industry leading combustion products for a variety of industrial applications as new applications have grown rapidly. At the present time, our products, most of which are customized for a particular application, are used in a score of different industries and purposes including chemical plants, at oil-and-gas refineries, on off-shore platforms, on barges, at power generation plants, wood product manufacturers, food processors, textile factories, pharmaceutical producers and roofing manufacturers.

We engineer and develop new products dedicated to improving customers' productivity and profitability. Our products share environmentally conscious designs and are crafted from quality materials by an expert staff of dedicated professionals.

Our concrete products are marketed domestically and internationally under the RexCon, CON-E-CO and BMH trademarks. RexCon and BMHOur concrete plants and related equipment are sold directly to concrete producers and foreign agencies through our domestic and international sales departmentdepartments. The BMH and our international entities. The CON-E-CO concrete plantsproducts are also marketed through dealers domestically and internationally.

We market our asphalt paving equipment under the Roadtec and Carlson trademarks both domestically and internationally to highway and heavy equipment contractors, utility contractors and domestic and foreign governmental agencies both directly and through dealers (including Australia in the Australian and New Zealand markets).dealers. Mobile construction equipment and factory authorized machine rebuild services are marketed both directly and through dealers.

This segment's products are marketed by direct and dealer support sales staff and domestic and international independent distributors, including our sites in Australia, AME and Thailand.Thailand sites.

This industry segment faces strong competition in price, service and product performance and competes with both large publicly-heldpublicly-traded companies and various smaller manufacturers. The Infrastructure Solutions segment competitors include:

The backlog for the Infrastructure Solutions segment at December 31, 20202021 and 20192020 was approximately $449.3 million and $218.2 million, and $189.6 million, respectively. Management expects the entire current backlog to be filled in 2021.

The Materials Solutions segment designs and manufactures heavy processing equipment, in addition to servicing and supplying parts for the aggregate, metallic mining, recycling, ports and bulk handling markets.

The sites within the Materials Solutions segment are primarily manufacturing operations with the AME and India sites functioning to market, service and install equipment and provide parts in the regions in which they operate for many of the products produced by all of our manufacturing sites. Belo Horizonte manufactures asphalt plants in addition to certain core products produced in the Materials Solutions segment. Belo Horizonte also markets products in the Brazilian market that are produced by all of our manufacturing sites. Our India site is in the start-up phase of new sales operations.

The primary products produced and services provided by the Materials Solutions segment include:

In conjunction with the Materials Solutions products we manufacture, we offer consulting and engineering services to provide complete "turnkey" processing systems, which often include electrical control centers and plant automation products we produce.

We are a world leader in the development of hydraulic relief jaw crushers having patented our first model in 2002. Hydraulic relief jaw crushers are a significant improvement in safety, adjustment and clearing of material in jaw crushers. In addition, we offer a range of cone crushers to meet critical aggregate or mining needs, which include technology features that deliver a distinct performance advantage, such as hydraulic overload protection, chamber clearing, push button adjustment and a proprietary anti-spin system.

Our vibrating screen line features multiple sizes of single deck to quadruple deck screens and contains the "Neverwear" sealing system guaranteed to keep lubricants in and to never wear out.

We manufacture a complete line of primary, secondary, tertiary and quaternary crushers, including jaw, horizontal shaft impactor, vertical shaft impactor and cone rock crushers as well as industry related washing and conveying equipment, mobile screening plants, portable and stationary screen structures and vibrating and high frequency screens. These rock crushers are used by mining, quarrying and sand and gravel producers to crush oversized aggregate to salable size, in addition to their use for recycled concrete and asphalt. This equipment can be purchased as individual components, as portable plants for flexibility or as completely engineered systems for both portable, stationary and RAP applications. We offer the highly-portable Fast Pack System, featuring quick setup and teardown, thereby maximizing production time and minimizing downtime. We also offer portable fully self-contained and self-propelled Fast Trax track-mounted jaw, cone, VSIvertical shaft impactors and horizontal shaft crushers, which are ideal for either recycle or hard rock applications, allowing the producer to move the equipment to the material. The expanded GT line of track-mounted crushing and screening plants focuses more specifically on the need for rental andneeds of global markets.

Portable plants combine various combinations of crushing, screening and conveying equipment mounted on tow away chassis and track chassis configurations. Due to high transportation costs of construction materials, many producers use portable equipment to process materials they need in close proximity to their job sites. Portable plants allow aggregate producers the ability to quickly and efficiently move equipment from one location to another as their jobs necessitate. The portable track plants are fully self-contained and allow operators to be producing materials within minutes of unloading equipment off of their transport trucks. Track-mounted crushing and screening plants enable contractors to perform jobs that in the past were not economically feasible and also allow our dealers to compete in the large track-mounted rental market.

Sand classifying and washing equipment is designed to clean, separate and re-blend material from sand deposits to meet the size specifications for critical applications. Products offered include fine and coarse material washers, log washers, blade mills, sand classifying tanks, cyclones, dewatering screens, density classifiers, sieve bend screens and attrition cells. Additional portable and stationary plants are also offered to handle the growing needs in construction sands, specialty sands and fines recovery. Screening plants are available in both stationary and highly portable models and are complemented by a full line of radial stacking and overland belt conveyors. Screening plants also serve the recycle, crushed stone, industrial and general construction industries.

Conveying equipment is designed to move or store aggregate and other bulk materials in radial cone-shaped or windrow stockpiles. Our SuperStacker telescoping conveyor and Wizard Touch automated controls are designed to add efficiency and accuracy to whatever the stockpile specifications require. Additionally, high capacity rail and barge loading/unloading material handling systems are an important part of theirour product lines.

Our complete line of industry leading rock breaker systems for the mining, quarry and recycling markets provide large-scale stationary rock breakers for open pit mining, as well as mid-sized stationary rock breakers for underground applications. In addition, we offer a full line of smaller rock breaker systems for mobile track and portable primary crushing plants as well as a full line of four-wheel drive articulated production and utility vehicles, scalers and rock breakers for underground mining and a complete line of hydraulic breakers, compactors and demolition attachments for the North American construction and demolition markets.

Our mobile bulk material handling solutions are designed to handle all free-flowing bulk materials, including but not limited to ores, coal, aggregates, fertilizers, grains, woodchips and pellets and are sold globally.

Many of our facilities maintain internationally recognized industry standard quality, environmental and health and safety assurance accreditations.

The principal purchasers of aggregate processing equipment include distributors, highway and heavy equipment contractors, sand and gravel producers, recycle and crushing contractors, open mine operators, quarry operators, port and inland terminal authorities, power stations and domestic and foreign governmental agencies.

Materials Solutions' equipment and aftermarket sales and service program isare primarily marketed through an extensive network of dealers by dealer support sales employees and domestic and international independent distributors.

The Materials Solutions segment faces strong competition in price, service and product performance. Materials Solutions equipment competitors include the following as well as smaller manufacturers, both domestic and international:

At December 31, 20202021 and 2019,2020, the backlog for the Materials Solutions Group was approximately $313.3 million and $142.3 million, and $74.1 million, respectively. Management expects the entire current backlog to be filled in 2021.

The Corporate category consists of our parent company and our captive insurance company, Astec Insurance, which do not meet the requirements for separate disclosure as an operating segment or inclusion in one of the other reporting segments. Our parent company and our captive insurance company provide support and corporate oversight for all the sites. We record U.S. federal income tax expenses and state deferred taxes for all business segments on the parent company's books; therefore, these taxes are included in the Corporate category for segment reporting.

The following information applies to both the Infrastructure Solutions and the Materials Solutions reporting segments.

We manufacture many of the component parts and related equipment for our products, while several large components of our products are purchased "ready-for-use", such items include engines, axles, tires and hydraulics. In many cases, we design, engineer and manufacture custom component parts and equipment to meet the particular needs of individual customers. Manufacturing operations during 20202021 took place at 22 separate locations.through 16 of our sites. Our manufacturing operations consist primarily of fabricating steel components and the assembly and testing of our products to ensure that we achieve quality standards.

We purchase raw materials and some manufactured components and replacement parts for our products from leading suppliers both domestically and internationally. Raw materials used in the manufacture of our products include carbon steel, pipe and various types of alloy steel, which are normally purchased from distributors and other sources. Most steel is delivered on a "just-in-time" arrangement from the supplier to reduce inventory requirements at the manufacturing facilities, but is occasionally inventoried after purchase. Raw materials for manufacturing are normally readily available; however, certain highly customized components may require longer than normal lead times. In addition, we have experienced challenges related to our supply chain attributable to the ongoing impact of the COVID-19 pandemic. Other components used in the manufacturing processes include engines, gearboxes, power transmissions and electronic systems. We purchase hydraulic breakers under a purchasing arrangement with a South Korean supplier. We believe the South Korean supplier has sufficient capacity to meet our anticipated demand; however, alternative suppliers exist for these components should any supply disruptions occur.

We are subject to various laws and governmental regulations concerning environmental matters and employee safety and health in the United States and other countries. The Environmental Protection Agency, the Occupational Safety & Health Administration, other federal agencies and certain state agencies have the authority to promulgate regulations that have an effect on our operations. Many of these federal and state agencies may seek fines and penalties for violations of these laws and regulations. We have been able to operate under these laws and regulations without any material adverse effect on our business.

None of our reporting operations are within highly regulated industries. However, air pollution control equipment we manufacture, principally for hot-mix asphalt plants, must comply with certain performance standards promulgated by the Environmental Protection Agency under the Clean Air Act applicable to "new sources" or new plants. Management believesWe believe our products meet all material requirements of such regulations, applicable state pollution standards and environmental protection laws.

In addition, due to the size and weight of certain equipment we manufacture, we and our customers may encounter various state regulations on maximum weights transportable on highways. Also, some states have regulations governing the operation of asphalt mixing plants, and most states have regulations relating to the accuracy of weights and measures, which affect some of the control systems we manufacture.

Compliance with these government regulations has not had a material effect on our capital expenditures, earnings or competitive position within the market to date.

We seek to obtain patents to protect the novel features of our products and processes. Our subsidiaries hold 113116 United States patents and 154142 foreign patents. Our subsidiaries have 4416 United States and 8540 foreign patent applications pending.

We have 8083 trademarks registered in the United States, including logos for Astec, Carlson Paving, Heatec, KPI-JCI, Peterson Pacific, Power Flame, Roadtec and Telsmith, and the names ASTEC, CARLSON, HEATEC, JCI, KOLBERG, PETERSON, POWER FLAME, ROADTEC and TELSMITH, as well as a number of other product names. We also have 120126 trademarks registered in foreign jurisdictions, including Argentina, Australia, Brazil, Canada, China, European Union, France, Germany, India, Italy, Kazakhstan, Mexico, New Zealand, Paraguay, Peru, Russia, South Africa, South Korea, Taiwan, Thailand, United Kingdom, Ukraine, Uruguay and Vietnam. We have 913 United States and 3124 foreign trademark registration applications pending.

We conduct research and development activities to develop new products and to enhance the functionality, effectiveness, ease of use and reliability of our existing products. We believe that our engineering and research and development efforts are key drivers of our success in the marketplace and dedicate substantial resources to engineering and product development activities including establishing an Innovation Services team. Our Innovation Services team has experts in advanced fields, such as simulation and digital twin creation, who support our development initiatives. In addition, we are focused on innovation in our products to support the "Rock to Road" value chain.

Revenues for recent years, normalized for acquisitions and the closures of Enid and Mequon, have beentypically are strongest during the first, second and fourth quarters with the third quarter consistently generating weaker results. We expect future operations in the near term to be typical of this historical trend.

As of December 31, 20202021 and 2019,2020, we had a backlog for delivery of products at certain dates in the future of approximately $360.5$762.6 million and $263.7$360.5 million, respectively. Approximately $86.2$346.4 million of the increase in backlog between periods relates to orders from domestic customers. Our contracts reflected in the backlog generally are not, by their terms, subject to termination. Our management believes we are in substantial compliance with all manufacturing and delivery timetables.

Each business segment operates in domestic markets that are highly competitive with respect to price, service and product quality. While specific competitors are named within each business segment discussion above, imports do not generally constitute significant competition for us in the United States, except for milling machines and track-mounted crushers. In international sales, however, we often compete with foreign manufacturers that may have a local presence in the market we are attempting to penetrate.

In addition, asphalt and concrete are generally considered competitive products as a surface choice for new roads and highways. A portion of the interstate highway system is surfaced in concrete, but over 90% of all surfaced roads in the U.S. are paved with asphalt. Although concrete is used for some new road surfaces, asphalt is used for most resurfacing. Our customers generally offer both asphalt and concrete surfacing options. Our investment in concrete batch plants in 2020 enables us to be a singular provider to our customers for both asphalt and concrete equipment.

Our employees around the world are each guided by our purpose: Built to Connect, and our vision: To connect people, processes and products, advancing innovative solutions from "Rock to Road" as OneASTEC. We areEvery employee is also guided by our values and our code of business conduct. In everyday work, our employees embody our core values of Safety, Devotion, Integrity, Respect and Innovation. They do so by living our winning behaviors of Open and Honest Communications, Drive Creativity, Customer Driven Innovation and OneASTEC in doing so, directly contributeall we do. We strive to be an employer of choice, attracting and retaining top talent committed to creating a diverse, equitable and inclusive workplace where individuals are respected and valued for their diverse backgrounds and experiences. Through comprehensive compensation and benefits and a focus on safety, we strive to support our reputation. Employees take pride in their work and value learning from one another. While our employees hold our values in common, they respect different perspectives and appreciate the opportunity to work with those with diverse backgrounds. We encourage employees to become involved in their communities and many employees contribute their time and talents to community efforts. Our employees contribute to our efforts to provide a safe and healthy workplace for all, especially through the COVID-19 pandemic.employees' overall well-being.

As of December 31, 2020,2021, we employed 3,5374,041 individuals, including 3,0833,437 employees in the U.S. and Canada. We also retain consultants, independent contractors and temporary and part-time workers. As of December 31, 2020,2021, the functional representation of our employees was as follows: 2,1852,646 were engaged in manufacturing, 401393 in engineering, including support staff, and 9511,002 in selling, administrative and management functions.

Unions are certified as bargaining agents for approximately two percent of our U.S. direct employees. From time to time, our collective bargaining agreements expire and come up for renegotiation. Approximately 7982 of our active U.S. employees are covered by a collective bargaining agreement with the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO-CLC on behalf of its local affiliate Local Union No. 11-508-03, with an expiration date of December 9,8, 2022. Unions also represent approximately 25% of our employees at our manufacturing facilities outside the U.S. We consider our employee relations to be good.

WeAs we strive to be an employer of choice, we provide competitive and robust compensation and benefits. We achieve this by regularly conducting market reviews and adjusting as needed. In addition to salaries, thesewe provide regional programs, which vary by country/region,that can include annual bonuses, share-based compensation awards, a 401(k) plan with employee matching opportunities, healthcare and insurance benefits, health savings and flexible spending accounts, paid time off, family leave, family care resources, flexible work schedules, adoption and surrogacy assistance, employee assistance programs, tuition assistance and on-site services.

The well-being and safety of our employees is a paramount value for us and this is consistent with our core values. We manage safety at (and from) the highest levels, using the same tools we employ to measure and improve other aspects of business performance, such as continuous improvement, key performance indicators, scorecards and performance management. More particularly, we undertake the following actions:

We aspire to reduce lost time and recordable injuries each year. During the year ended December 31, 2020,2021, we had zero recordable injuries at five of our sites. However, we experienced a 15% reduction23% increase in our recordable injuries across all sites compared to the year ended December 31, 2019, including zero recordable injuries at eight of our sites.2020. Our OSHAOccupational Safety and Health Administration Incident Rate experienced a slight declinean increase from 1.40 for the year ended December 31, 2019 to 1.39 for the year ended December 31, 2020.2020 to 1.71 for the year ended December 31, 2021.

In response to the COVID-19 pandemic, we implemented significant changes that we determined were in the best interest of our employees, partners and the communities in which we operate, and which complied with government orders. This included having those employees who could, work from home and implementing additional safety measures for our production and other employees continuing critical on-site work. Closely following the recommendations of the World Health Organization, the U.S. Centers for Disease Control and local governments, we also took the followingnumerous actions to ensure the health and safety of our employees were safe:employees.

As a result of the effects of the COVID-19 pandemic, we have experienced a shortage of necessary production personnel and increasing labor costs to allow appropriate gaps between work-shifts enabling the proper amountattract staff in our manufacturing operations. This has resulted in a variety of social distance between employees;

OurTalent and Diversity are key talent philosophy is to develop talent from within and supplement with external hires. This approach has yielded a deep understanding among our employee basecomponents of our OneASTEC business productsmodel. We strive to create an environment that attracts top talent and customers, while addingwhere high performance is fostered and thrives, continuous learning is engrained, diverse experience is leveraged as a competitive advantage and careers are propelled forward.

In 2021, we developed and implemented a new employeesPerformance Management model and ideas in support ofprocess company-wide to align our continuous improvement mindset. Our talent acquisition team uses internalefforts to achieve company goals and external resources to recruit highly skilledtargets. This new model includes values, professional development and talented workers, and we encourage employee referrals for open positions.cascaded common performance goals.

We provide all employees a wide range of professional development experiences, both formal and informal, at allvarious stages in their careers. In addition, talent development and succession planning for critical roles is a cornerstone of our talent program. Development plans are created and monitored for critical roles to ensure progress is made along the established timelines.

One of our core values – Respect – reflects the behavior we strive to include in every aspect of the way we conduct business. We recognize that our best performance comes when our teams are diverse and inclusive,inclusive. We continue to define our diversity, equity and accordingly, we have begun work on building diverse talent pools as partinclusion strategy. These efforts touch all levels of our recruitment efforts. With the support oforganization including our Board of Directors, we continue to explore additional diversity, equity and inclusion initiatives.which is currently comprised of 20% women.

Astec Industries, Inc. is a Tennessee corporation which was incorporated in 1972. We make available, free of charge on or through our website (www.astecindustries.com), access to our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, Proxy Statements on Schedule 14A Section 16 reports, amendments to those reports, and other documents filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after such material is filed with, or furnished to, the Securities and Exchange Commission ("SEC"). Information contained in our website is not part of, and is not incorporated into, this Annual Report on Form 10-K or any other report we file with or furnish to the SEC.

The SEC also maintains electronic versions of our reports on its website at www.sec.gov.

The following risks are considered material to our business, operating results and financial condition based upon current knowledge, information and assumptions. This discussion of risk factors should be considered closely in conjunction with Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations and the Consolidated Financial Statements and the accompanying notes thereto included in Part II, Item 8 of this Annual Report on Form 10-K. The risks and uncertainties described below are not the only ones we face. Additional risks and uncertainties not presently known to us, or that we presently deem less significant, may also impair our business, operating results and financial condition. If any of the following risks actually occur, our business operating results and financial condition could be materially adversely affected. The order of these risk factors does not reflect their relative importance or likelihood of occurrence. Some of these risks and uncertainties could affect particular lines of business, while others could affect all of our businesses. We, except as required by law, undertake no obligation to update or revise this risk factors discussion, whether as a result of new developments or otherwise.

The emergence of the COVID-19 was identified in late 2019 and has spread globally adversely impacting economic activity and conditions worldwide. The pandemic has also resultedsignificantly impacted our operations. Throughout 2020, our operations were adversely effected by significantly weakened demand for our products given the global economic uncertainty resulting from the pandemic. While demand for our products has recovered throughout the pandemic, our operations continue to be adversely affected by the contributory effects of the pandemic, including supply chain disruptions, higher supply costs, including, in governmentsparticular, higher steel costs, and other authorities implementing numerouslabor shortages, disruptions and higher labor costs and longer contracting times. Furthermore, any future governmental measures taken in response to try to contain the virus, such aspandemic, including travel bans and restrictions, quarantines, shelter in place orders and business closures. These measures have impacted and mayclosures or vaccine mandates, could further impact all or portions of our workforce and operations and the operations of customers and suppliers. Countries around the world have been affected by the pandemic and have taken containment actions. Considerable uncertainty exists regarding the impact of future measures.as well as demand for our products. Restrictions on access to our manufacturing facilities or on the support operations or workforce, or similar limitations for suppliers and dealers, as well as restrictions or disruptions of transportation, port closures, increased border controls or closures, and material and component supply shortages have limited and could continue to limit our ability to meet customer demand, which could have a material adverse effect on our financial condition, cash flows and results of operations. There is no certainty that current or future measures taken by governmental authorities will be sufficient to mitigate the risks posed by the virus, and our ability to perform critical functions could be harmed.

General economic downturns, including downturns in government infrastructure spending and the commercial and residential construction industries, could result in a material decrease in our revenues and operating results. Sales of our products are sensitive to the states of the U.S., foreignspecific locations and regional economies in which they are sold in general, and in particular, changes in commercial construction spending and government infrastructure spending. In addition, many of our costs are fixed and cannot be quickly reduced in response to decreased demand. Several factors, including the following, could cause a downturn in the commercial and residential construction industries in which we operate:

Many of our customers depend on government funding of highway construction and maintenance and other infrastructure projects. Historically, much of the U.S. highway infrastructure market has been driven by government spending programs, and federal government funding of infrastructure projects has typically been accomplished through bills that establish funding over a multi-year period. For example, the U.S. government funds highway and road improvements through the Federal Highway Trust Fund Program. This program provides funding to improve the nation’snation's roadway system. In December 2015,November 2021, the U.S. government enacted athe Infrastructure Investment and Jobs Act ("IIJA"). The IIJA allocates $548 billion in government spending to new infrastructure over the five-year $305 billion highway-funding bill (the "FAST Act")period concluding in 2026, with certain amounts specifically allocated to fund highway and bridge projects. The FAST Act expired September 30, 2020, and a one-year extension that maintains current funding levels has been approved by Congress. Matching funding from the various states may be required as a condition of federal funding.

Given the inherent uncertainty in the political process, the level of government funding for federal highway projects will similarly continue to be uncertain. Governmental funding that is committed or earmarked for federal highway projects is always subject to political decision making that may result in repeal or reduction. Although continued funding under the FAST Act is expected, it may be at lower levels than originally approved. In addition, Congress could pass legislation in future sessions that would allow for the diversion of previously appropriated highway funds for other national purposes, or it could restrict funding of infrastructure projects unless states comply with certain federal policies.

We sell equipment primarily to contractors whose demand for equipment depends greatly upon the volume of road or utility construction projects underway or to be scheduled by both government and private entities. The volume and frequency of road and utility construction

Global interest rates have recently been at or near historic lows resulting in historically low financing costs for construction projects. While we expect rates to remain relatively low in the near-term, rising interest rates could have a dampening effect on overall economic activity and/or the financial condition of our customers, either or both of which could negatively affect customer demand for our products and customers’customers' ability to repay obligations to us. An increase in interest rates could also make it more difficult for customers to cost-effectively fund the purchase of new equipment, which could adversely affect our sales.

We currently face strong competition in product performance, price and service. Some of our domestic and international competitors have greater financial, product development and marketing resources than we have. If competition in our industry intensifies or if our current competitors enhance their products or lower their prices for competing products, we may lose sales or be required to lower the prices we charge for our products. This may reduce revenue from our products and services, lower our gross margins or cause us to lose market share. In addition to the general competitive challenges we face, international trade policies could negatively affect the demand for our products and services and reduce our competitive position in such markets. In addition, unfavorable currency fluctuations could result in our products and services being more expensive than local competitors. The implementation of more restrictive trade policies, such as higher tariffs, duties or charges, in countries where we operate could negatively impact our business, results of operations and financial condition.

In 2020,2021, international sales represented approximately 20.2%23.3% of our total sales as compared to 22.3%20.2% in 2019.2020. We plan to continue increasing our already significant sales and production efforts in international markets. Both the sales from international operations and export sales are subject in varying degrees to risks inherent in doing business outside of the United States. Such risks include the possibility of unfavorable circumstances arising from host country laws or regulations including privacy laws protecting personal data, changesand general economic and political conditions in tariffthe countries we do business, which are typically more volatile than the U.S. economy and trade barriers and import or export licensing requirements.more vulnerable to geo-political conditions. In addition, the U.S. Government has established and, from time to time, revises sanctions that restrict or prohibit U.S. companies and their subsidiaries from doing business with certain foreign countries, entities and individuals. Doing business internationally also subjects us to numerous U.S. and foreign laws and regulations, including regulations relating to anti-bribery, privacy regulations and anti-boycott provisions. We incur meaningful costs complying with these laws and regulations. The continued expansion of our international operations could increase the risk of violations of these laws in the future. Significant violations of these laws, or allegations of such violations, could harm our reputation, disrupt our business and result in significant fines and penalties that could have a material adverse effect on our results of operations or financial condition.

Our ability to match new product offerings to diverse global customers' anticipated preferences for different types and sizes of equipment and various equipment features and functionality, at affordable prices, is critical to our success. This requires a thorough understanding of our existing and potential customers on a global basis, particularly in Asia, Middle-EastMiddle East and Africa, and Latin America. Failure to deliver quality products that meet customer needs at competitive prices ahead of competitors could have a significant adverse effect on our business.

Additionally, our international sales involve some level of export from the U.S., either of components or completed products. Policies and geopolitical events affecting exchange rates could adversely affect the demand for construction equipment in many areas of the world. Further, any strengthening of the U.S. dollar or any other currency of a country in which we manufacture our products (e.g. the Brazilian real and the South African rand) and/or any weakening of local currencies can increase the cost of our products in foreign markets. Irrespective of any effect on the overall demand for construction equipment, the effect of these changes can make our products less competitive relative to

We require access to various parts, components and raw materials at competitive prices in order to manufacture our products. Changes in the availability and price of these parts, components and raw materials (including steel) have changed significantly and rapidly at times. The availability and price of such items are affected by factors like demand, changes to international trade policies that may result in additional tariffs, duties or other charges, freight costs and outbreaks and shipping and container constraints, each of which can significantly increase the costs of production. Due to price competition in the market for construction equipment and certain infrastructure products which have longer contract to completion cycles, we may not be able to recoup increases in these costs through price increases for our products, which would result in reduced profitability. Whether increased operating costs can be passed through to the customer depends on a number of factors, including the price of competing products.products and the nature of our customers' orders. Further, we rely on a limited number of suppliers for steel and certain other raw materials, parts and components in the manufacturing process. Disruptions or delays in supply or significant price increases from these suppliers could adversely affect our operations and profitability. Such disruptions, terminations or cost increases could result in cost inefficiencies, delayed sales or reduced sales. The aforementioned risks have been, and may continue to be, exacerbated by the impact of COVID-19.

We currently maintain a broad network of distribution and manufacturing facilities throughout the U.S. as well as internationally. Any widespread disruption to our facilities resulting from fire, earthquake, weather-related events (such as tornadoes, hurricanes, flooding and other storms), an act of terrorism or any other cause could damage a significant portion of our inventory and could materially impair our ability to distribute our products to customers. Moreover, we could incur significantly higher costs and longer lead times associated with distributing our products to our customers during the time that it takes for us to reopen or replace a damaged facility. If any of these events were to occur, our financial condition, operating results and cash flows could be materially adversely affected.

In addition, general weather patterns affect our operating results throughout the year, with adverse weather historically reducing construction activity in the first and fourth quarters in the U.S., our largest market. An increase of adverse weather events, including as a result of climate change, could generally reduce or delay construction activity, which could adversely impact our revenues.

In March 2020, we launched our OneASTEC business model, with the strategic pillars of Simplify, Focus and Grow. This is a focused effort towards an operating model centered around continuous improvement. The OneASTEC business model was designed to better set strategic direction, define priorities and improve overall operating performance, as described in greater detail in the section titled "Corporate Strategic Objectives" in Item 1. Business. Our future success is partly dependent upon successfully executing and realizing performance improvements, revenue gains, cost savings and other benefits from this initiative. It is possible that we may not fully realize, or sustain, the expected benefits from the OneASTEC business model. Furthermore, the implementation of the OneASTEC initiatives may result in an increase in short-termnear-term expenses and negatively impact operational effectiveness and employee morale.

We have historically grown, in large part, through strategic acquisitions, and our strategy is to continue to pursue attractive acquisition opportunities if and when they become available. Failure to identify and acquire suitable acquisition candidates on appropriate terms could

At various times, we have experienced negative margins on certain large projects. These large projects have included both existing and innovative equipment designs, on-site construction and promised minimum production levels. Designing innovative equipment to function as expected is inherently difficult and significant additional design phase, field testing and redesign costs may be incurred. In addition, any number of unforeseen circumstances can impact actual project costs. Production delays, design changes, adverse weather conditions and other factors can also result in construction and testing delays, which can cause significant cost overruns or failure to meet required completion dates. In certain circumstances, we may incur contractual penalties as a result of such delays or the failure to satisfy minimum production levels, and we may be liable to customers for other losses they incur in connection with such delays, including possible refund of the purchase price. We may not be able to sufficiently predict the extent of such unforeseen cost overruns and may experience significant losses on specialized projects in the future.

From time to time, we may wind down certain business activities, product lines, and/or perform other organizational restructuring projects in an effort to reduce costs and streamline operations. Such activities involve risks as they may divert management's attention from our core businesses, increase expenses on a short‑term basis and lead to potential issues with employees, customers or suppliers. If these activities are not completed in a timely manner, anticipated cost savings, synergies and efficiencies are not realized, business disruption occurs during the pendency of or following such activities or unanticipated charges are incurred, particularly if material, there may be a negative effect on our business, results of operations and financial condition.

As of December 31, 2020,2021, we were in compliance with the financial covenants contained in our credit agreement with Wells Fargo Bank, N.A. However, in the future we may be unable to comply with the financial covenants in our credit facility or to obtain waivers with respect to such financial covenants. If such violations occur, our creditors could elect to pursue their contractual remedies under the credit facility, including requiring immediate repayment in full of all amounts then outstanding.outstanding and requiring cash collateral to support outstanding letters of credit. As of December 31, 2020,2021, we had no borrowings, but did have $7.6$2.5 million in letters of credit outstanding under the Wells Fargo credit agreement. We may also borrow additional amounts under the credit agreement in the future. Certain of our international subsidiaries in South Africa, Australia, Brazil Canada and Northern Irelandthe United Kingdom have entered into their own independent loan agreements with other lending institutions.

In July 2017,The ICE Benchmark Administration Limited, the United Kingdom's Financial Conduct Authority, which regulatesauthorized administrator of LIBOR, announced that it intendshas confirmed its intention to phase outcease the publication of the one month and three month USD LIBOR by the end of calendar 2021.after June 30, 2023. The U.S. Federal Reserve, in conjunction with the Alternative Reference Rates Committee, a steering committee comprised of large U.S. financial institutions, is consideringhas endorsed replacing LIBOR with the Secured Overnight Financing Rate ("SOFR"), a new index calculated based on transactions in the market for short-term treasury securities. Our borrowings under the Wells Fargo credit agreement reference one month USD LIBOR. As of December 31, 2020,2021, we had no borrowings but did have $7.6$2.5 million in letters of credit outstanding under the Wells Fargo credit agreement. We may also borrow additional amounts under the credit agreement in the future. IfAdditionally, we pay subsidies that are, or were, based on the one month or three month USD LIBOR ceases to exist, we may needthird party finance companies that reduce the borrowing rate for our customers that choose to renegotiate certainfinance the purchase of our financing agreements extending beyond calendar 2021 that utilize LIBOR as a factor in determining the interest rate.products. We are evaluating the potential impacthave amended some of the eventual replacementarrangements mentioned above to reference SOFR instead of LIBOR and plan to amend the LIBOR benchmark interest rate, however, weremaining such arrangements before June 30, 2023. We are not able to predict whether LIBOR will cease to be available after

We are subject to income taxes in the United States and other jurisdictions. Our results of operations could be adversely affected by, among other things, changes in the effective tax rates in the U.S. and foreign jurisdictions, a change in the mix of earnings between U.S. and non-U.S. jurisdictions or among jurisdictions with differing tax rates, changes in tax laws or treaties and related changes in generally accepted accounting principles. Additionally, we typically incur substantial research and development costs each year and have historically received significant research and development tax credits due to these expenditures. Congress could reduce or eliminate such tax credits in future years, which could have a material adverse effect on our operating results.

We recentlyhave completed a number of acquisitions and expect to continue to complete selected acquisitions in the future as a component of our growth strategy. In connection with acquisitions, applicable accounting standards generally require the net tangible and intangible assets of the acquired business to be recorded onin the balance sheet of the acquiring company at their fair values as of the date of acquisition. As a result, any excess in the purchase price paid by us over the fair value of net tangible and intangible assets of any acquired business is recorded as goodwill. Definite lived-intangible assets are required to be amortized over their estimated useful lives and this amortization expense may be significant. If it is later determined that the anticipated future cash flows from the acquired business may be less than the carrying values of the assets and goodwill of the acquired business, the assets, including both definite-lived and indefinite-lived intangible assets, or goodwill may be deemed to be impaired. If this occurs, we may be required under applicable accounting rules to write down the value of the assets or goodwill on our balance sheet to reflect the extent of any such impairment. Any such write-down of assets or goodwill would generally be recognized as a non-cash expense in our consolidated statements of results of operations for the accounting period during which any such write down occurs.

Goodwill and indefinite-lived intangible assets are subject to impairment assessments at least annually (or more frequently when events or changes in circumstances indicate that impairment may have occurred). At October 31, 2020,1, 2021, our testing indicated no impairment had occurred. A decrease in our market capitalization, profitability or negative or declining cash flows increases the risk of goodwill or other intangible asset impairments. Future impairment charges could have a material adverse impact on our results of operations and shareholders' equity.

We believe our culture focused on safety, devotion, integrity, respect and collaboration, is one of our strongest assets. Our strong culture positions us to recruit and retain top-level talent across our organization. We believe our employees and experienced leadership group are competitive advantages, as the best people, over time, produce the best results. Our ability to attract and retain qualified engineers, skilled manufacturing personnel and other professionals, either through direct hiring or acquisition of other businesses employing such professionals, will also be an important factor in determining our future success. The contributory effects of the COVID-19 pandemic have resulted in significant challenges in retaining and attracting sufficiently qualified personnel to enable us to meet customer demand efficiently resulting in longer lead times to convert backlog to revenue and materially and adversely impacting our margins. If we are unable to attract the most talented candidates, and cannot retain and engage additional highly qualified managerial, technical, manufacturing, and sales and marketing personnel by investing in their talent and personal development, our operational and financial performances could continue to suffer.

In addition, while we strive to reduce the impact of the departure of high performing employees, we could be impacted by the loss of employees, particularly when departures involve groups of employees, such as voluntary and involuntary separation programs planned for 2021. Employee-separation programs may adversely affect us through decreased employee morale, the loss of knowledge of departing employees and the allocation of resources to reorganizing and reassigning job roles and responsibilities.employees. Our ability to meet our business objectives may be affected by the departure of employees, and the expected cost savings of employee-separation programs may not be achieved due to delays or other factors.employees. Further, the departure of groups of employees could increase the risk of claims or litigation from former employees. Disputes with labor unions could potentially affect our ability to operate our facilities as well as our financial results. Any strike, work stoppage or other dispute with a labor union could materially adversely affect our business, results of operations and financial condition.

In connection with the transition of our business operations and implementation of the OneASTEC business model, we have replaced many employees in key functions, including in important management roles, and otherwise hired key personnel. Any significant management change involves inherent risk and any failure to ensure the effective transfer of knowledge and a smooth transition could hinder our strategic planning, execution and future performance. As new employees gain experience in their roles, we could experience inefficiencies or a lack of business continuity due to loss of historical knowledge and a lack of familiarity of new employees with business processes, operating requirements, policies and procedures, some of which are new, and key information technologies and related infrastructure used in our day-to-day operations and financial reporting. We may also experience additional costs as these new employees learn their roles and gain necessary

We depend to a large extent on the abilities and continued participation of our executive officers and other key employees. We believe that as our activities increase and change in character, additional, experienced personnel will be required to implement our OneASTEC business model. Competition for such personnel is intense, and we cannot assure that they will be available when required, or that we will have the ability to attract and retain them. We have not entered into an employment agreement or similar arrangements with any of our executive officers. As such, there are no contractual relationships guaranteeing that any of our executive officers will stay with us and continue our operations, and any of our executive officers can terminate their employment relationship with us at any time. The loss of services of any one or more of these individuals may have a material and adverse effect on our Company and our business prospects.

We manufacture heavy machinery, which is used by our customers at excavation and construction sites, ports and inland terminals and on high-traffic roads. Any defect in or improper operation of our equipment can result in personal injury and death, and damage to or destruction of property, any of which could cause product liability claims to be filed against us. The amount and scope of our insurance coverage may not be adequate to cover all losses or liabilities we may incur in the event of a product liability claim. We may not be able to maintain insurance of the types or at the levels we deem necessary or adequate or at rates we consider reasonable. A successful claim brought against us in excess of available insurance coverage or a requirement to participate in a product recall may have a material adverse effect on our business.

Certain of our equipment is subject to rules limiting emissions and other climate related rules and regulation. In addition, several of our products contain enginescomponents that must comply with environmental, health and safety laws or regulations, including performance standards, promulgated by the Environmental Protection Agency and other state regulatory agencies. These performance standards may change or become more stringent in the future. In addition, we may become subject to additional legislation, regulations or accords regarding climate change, and compliance with any new rules could be difficult and costly as a result of increased energy, environmental, and other costs and capital expenditures to comply with any such legislation, regulation or accord. Changes in these requirements could also cause us to undertake costly measures to redesign or modify our equipment or otherwise adversely affect the manufacturing processes of our products. Such changes could also impact operations of our suppliers and customers. In addition, we may incur material costs or liabilities in connection with other regulatory requirements applicable to our business, including, for example, state regulation of our component equipment, the accuracy of weights and measures and the maximum weight transportable on highways and roads.

From time to time, we may be involved in various legal proceedings that arise in the ordinary course of our business. We are unable to predict when claims or matters will arise and the extent to which they will affect our business, and the international nature of our business exposes us to legal and regulatory matters that arise in foreign jurisdictions as well. We could incur significant expenses to administer and defend such matters, and any judgments or fines imposed on us could significantly impact our financial condition. Our business may be adversely impacted by the outcome of legal proceedings and other contingencies that cannot be predicted with certainty. We estimate loss contingencies and establish reserves based on our assessment where liability is deemed probable and reasonably estimable given the facts and circumstances known to us at a particular point in time. Subsequent developments may affect our assessment and estimates of the loss contingencies recognized as liabilities. These matters could also significantly divert the attention of our management.

We hold numerous patents covering technology and applications related to many of our products and systems, as well as numerous trademarks and trade names registered with the U.S. Patent and Trademark Office and in foreign countries. Our existing or future patents or trademarks may not adequately protect us against infringements, and pending patent or trademark applications may not result in issued patents or trademarks. Our patents, registered trademarks and patent applications, if any, may not be upheld if challenged, and competitors may develop similar or superior methods or products outside the protection of our patents. This could reduce demand for our products and materially decrease our revenues. If our products are deemed to infringe upon the patents or proprietary rights of others, we could be required to modify the design of our products, change the name of our products or obtain a license for the use of some of the technologies used in our

Our operations are dependent upon our information technology systems, which encompass all of our major business functions. We rely upon our information technology systems to run critical functions, including accounting and financial information systems, process receivables, manage and replenish inventory, fill and ship customer orders on a timely basis and coordinate our sales activities across all products and services. A substantial disruption in our information technology systems for any prolonged time period could result in problems and delays in generating critical financial and operational information, processing receivables, receiving inventory and supplies, and filling customer orders. These disruptions could adversely affect our operations as well as our customer service and relationships. Our systems, or those of our significant customers or suppliers, might be damaged or interrupted by natural or man-made events or by computer viruses, physical or electronic break-ins or similar disruptions affecting the global Internet. In addition, we rely on a number of third-party service providers to execute certain business processes and maintain certain information technology systems and infrastructure, and any breach of security or disruption in their systems could impair our ability to operate effectively. Such disruptions, delays, problems or associated costs relating to our systems or those of our significant customers, suppliers or third-party providers could have a material adverse effect on our operations, operating results and financial condition.

In the ordinary course of business, we rely upon information technology networks and systems to process, transmit and store electronic information and to manage or support a variety of business functions, including supply chain, manufacturing, distribution, invoicing and collection of payments. We use information technology systems to record, process and summarize financial information and results of operations for internal reporting purposes and to comply with regulatory financial reporting, legal and tax requirements. Additionally, we collect and store sensitive data, including intellectual property, proprietary business information and the proprietary business information of customers and suppliers, as well as personally identifiable information of customers and employees, in data centers and on information technology networks. The secure operation of these networks and the processing and maintenance of this information is critical to our business operations and strategy. Despite our efforts to protect our systems and confidential information, we have experienced cybercrime in the past and may be vulnerable to material security breaches, theft, misplaced, lost or corrupted data, programming errors, employee errors and/or malfeasance or other disruptions during the process of upgrading or replacing computer software or hardware, power outages, computer viruses, telecommunication or utility failures or natural disasters or other catastrophic events. The occurrence of any of these events could compromise our networks, and the information stored there could be accessed, publicly disclosed, modified, lost or stolen. Any such access, disclosure or other loss of information could result in legal claims or proceedings, liability or regulatory penalties under laws protecting the privacy of personal information, disrupted operations, production downtimes and damage our reputation, any of which could have an adverse effect on our business. While we have not experienced any material losses relating to cybercrime or other information security breaches to date, there can be no assurance that we will not suffer such significant losses in the future.

None.

As of December 31, 2020,2021, our manufacturing, warehouse and office facilities total approximately 3.73.5 million square feet of space globally. We believe all properties to be well maintained and adequate for present use, with adequatesufficient capacities for current and projected needs. From time to time, we may determine that certain ofbusiness needs as our properties exceed our requirements asbusiness is presently conducted. As we continue to optimize our global footprint.footprint, we may identify properties or expansion opportunities at existing locations that provide growth opportunity or determine that certain of our current properties no longer meet our requirements. Such new properties may be leased or purchased and current properties may be modified, sold, leased or utilized in another manner.

Our corporate headquarters are in owned offices located in Chattanooga, Tennessee. Additional administrative offices are located inside and outside the United States.

The following table lists the principal locations (defined as greater than 20,000 square feet) that are owned or leased by us, as denoted, and which are utilized in our continuing business operations:

Currently, we are involved in a number of legal proceedings. For a discussion of contingencies related to legal proceedings, see Note 16, Commitments and Contingencies of the Notes to the Consolidated Financial Statements included in Part II, Item 8 of this Annual Report on Form 10-K.

PART II

Our common stock is traded on the Nasdaq National Market under the ticker symbol "ASTE". 

As of February 25, 2021,24, 2022, there were 226259 holders of record of our common stock. 

Our current policy is to payWe paid quarterly cash dividends on our common stock of $0.11 per share.common share to shareholders in the first, second and third quarters of 2021 and the first, second, third and fourth quarters 2020. Our Board of Directors ("Board") increased the dividend payment $0.01 to a total of $0.12 per common share to shareholders for the fourth quarter of 2021. We paid cash of $10.2 million and $10.0 million for dividends of $10.0 million each in 20202021 and 2019,2020, respectively. Dividends are paid when, as and if declared at the discretion of our Board of Directors (the "Board") from funds legally available for that purpose. While our Board currently expects to continue regular quarterly cash dividends, the declaration and amount of future cash dividends are subject to the Board's sole discretion and their periodic review of our dividend policy and will depend upon our earnings, financial condition, liquidity needs, business plans and opportunities and other factors in making and setting dividend policy.

As announced to the public in a Form 8-K filing on July 30, 2018, we approved a share repurchase program, which authorizes us to repurchase up to $150.0 million of our common stock. As of December 31, 2020,2021, the maximum dollar value of shares available for repurchase under the plan is approximately $126.0 million. No shares were repurchased under the plan during 2020.2021.

The following stock performance graph is intended to show our stock performance compared with that of comparable companies. The stock performance graphbelow compares the cumulative five-year total return provided to shareholders onof Astec Industries, Inc.'s common stock relative to the cumulative total returns of the Russell 2000 index, our updated peer group ("2021 Peer Group") and our peerprevious per group ("2020 Peer Group"). The companies included in the 2021 Peer Group and the 2020 Peer Group are representative of our definitive Proxy peer group, which includes: we believe reflects industrial manufacturing companies of comparable size and complexity for the corresponding period and are reviewed annually and revised as necessary.

We design, engineer, manufacture and market equipment and components used primarily in road building and related construction activities, as well as certain other products. Our products are used in each phase of road building, from quarrying and crushing the aggregate to application of the road surface for both asphalt and concrete. We also manufacture certain equipment and components unrelated to road construction, including equipment for the mining, quarrying, construction and demolition industries and port and rail yard operators; industrial heat transfer equipment; commercial whole-tree pulpwood chippers; horizontal grinders; blower trucks; commercial and industrial burners; and combustion control systems.

Our products are marketed both domestically and internationally primarily to asphalt producers; highway and heavy equipment contractors; utility contractors; sand and gravel producers; construction, demolition, recycle and crushing contractors; mine and quarry operators; port and inland terminal authorities; power stations and domestic and foreign government agencies. In addition to equipment sales, we manufacture and sell replacement parts for equipment in each of our product lines and replacement parts for some competitors' equipment. The distribution and sale of replacement parts is an integral part of our business.

Highlights of our financial results as of and for the year ended December 31, 20202021 as compared to the same period of the prior year include the following:

COVID-19 Pandemic

The COVID-19 pandemic has caused significant disruptions to national and global economies. Our U.S. basedeconomies and to our business. While our businesses are designated as essential businesses for critical infrastructure companies by the U.S. Department of Homeland Security and, as such, have generally remained openoperational throughout the pandemic. Two of our foreign operationspandemic, with temporary closures in the Materials Solutions segment, located in Northern IrelandUnited Kingdom and South Africa early in the pandemic, our business has been significantly affected by the contributory effects of the pandemic such as dictated by their local governments, temporarily ceased manufacturing activitiesdecreased demand for our products in late March 2020. The South Africa site reopened on May 4, 2020, material price increases, increased lead times from production materials, supplies and parts and labor shortages. These trends continue to impact our business today and may continue to impact our business in the Northern Ireland facility reopened on May 11, 2020. Our top priority isnear-term.

We have also taken precautions to protect our employees and their families and our customers and suppliers from COVID-19 and our operations from any adverse impacts by taking precautionary measures as directed by health authoritiescontinually monitor the markets in which we operate for the effects of COVID-19 and local governments. In early March 2020, we formed a COVID-19 task force, which continually monitors information from government agencies, our sites, customers, suppliersthe related actions of governments and other sources. We have enacted several policiesauthorities to combat the spreadcontain COVID-19.

During 2020, our sales and profits were negatively impacted by theThe COVID-19 pandemic and it may continue to negatively disrupt our business and results of operations in the future. The full extentongoing impact of the COVID-19 pandemic on our operations and the markets we serve remains highly uncertain due to constantly evolving developments including, but not limited to, government directives, treatment availability and will depend largely on future developments related toacceptance, vaccine mandates and the COVID-19 pandemic, including infection rates increasing or returning in various geographic areas, the ultimate durationspread of the COVID-19 pandemic, actions by government authorities to contain the outbreak or treat its impact,new variants, such as re-imposing previously lifted measures or putting in place additional restrictions,the Delta and the widespread distribution and acceptance of an effective vaccine, among other things. These developments are constantly evolvingOmicron variants, and cannot be accurately predicted. See Part I, Item 1A. Risk Factors in this Annual Report on Form 10-K.

Beginning in late 2019, we impairedinitiated a strategic transformation initiative focused on implementing new business strategies and discontinued Enid's oila new operating structure. This transformation is concentrated on aligning our operations under the OneASTEC business model with the strategic pillars of Simplify, Focus and gas drilling product linesGrow. SFG is an ongoing, multi-year program with the primary goals of optimizing our manufacturing footprint and sold the remaining assetscentralizing our business into common platforms and operating models to reduce complexity and cost, improve productivity and embed continuous improvement in the third quarter of 2020. In October 2020, we sold the assets relatedour processes. These efforts are considered critical to Enid's remaining water well line of business. Enid's landenabling us to operate competitively and buildingsupporting future growth, which are currently being marketed for sale.expected to broadly benefit our customers, partners, employees and shareholders.

In addition, in late 2020 new business strategies, as well aswe launched a new operating structure, were implementedmulti-year phased implementation of a standardized enterprise resource planning ("ERP") system across the Company. The three pillars that frame our business strategy are "Simplify, Focus and Grow". We will "Simplify" by leveraging our global footprintorganization, which will replace much of our existing disparate core financial systems. The upgraded ERP will initially convert our internal operations, manufacturing, finance, human capital resources management and customer relationship systems to cloud-based platforms. This new ERP system will provide for standardized processes and integrated technology solutions that enable us to better leverage automation and process efficiency. An implementation of this scale while maintaining strong customer relationships, reducingis a major financial undertaking and will require substantial time and attention of management and key employees. Costs incurred during 2021 were $13.4 million, which represent costs directly associated with the complexitySFG initiative and which cannot be capitalized in accordance with U.S. GAAP. These costs are included in "Selling, general and administrative expenses" in the Consolidated Statements of the organizational structure, consolidating and rationalizing our product portfolio and optimizing the supply chain by leveraging our size and scale. Our "Focus" will be to strengthen the customer-centric approach by providing a holistic set of solutions while driving commercial and operational excellence as well as enhanced accountability through a performance-based culture with key performance indicators and incentives. We will "Grow" by capitalizing on global growth opportunities, reinvigorating innovation with a new product development approach and leveraging technology and digital connectivity to enhance our customer experience and effectively allocate capital to drive increased shareholder value.Operations.

Our financial performance is affected by a number of factors, including the cyclical nature and varying conditions of the markets we serve. Demand in these markets fluctuates in response to overall economic conditions and is particularly sensitive to the amount of public sector spending on infrastructure development, privately funded infrastructure development and changes in the prices of liquid asphalt, oil, and natural gas and steel. In addition, many of our markets are highly competitive, and our products compete worldwide with a number of other manufacturers and dealers that produce and sell similar products.

Federal funding provides a significant portion of all highway, street, roadway and parking construction in the United States. We believe that federal highway funding influences the purchasing decisions of our customers, who are typically more amenable to making capital equipment purchases with long-term federal legislation in place. Federal transportation funding under the Fixing America's Surface Transportation Act ("FAST Act"), which was setexpired December 3, 2021. As noted above, the U.S. government enacted the IIJA in November 2021. The IIJA allocates $548 billion in government spending to expire on September 30, 2020, was temporarily extended for one year through September 30, 2021.new infrastructure over the five-year period concluding in 2026, with certain amounts specifically allocated to fund highway and bridge projects. We believe athat multi-year highway programprograms (such as the FAST Act)IIJA) will have the greatest positive impact on the road construction industry and allow our customers to plan and execute longer-term projects. Given the inherent uncertainty in the political process, the level of governmental funding for federal highway projects will similarly continue to be uncertain. Although continued funding under the FAST Act or funding of a bill passed by the current administration is expected, it may be at lower levels than originally approved or anticipated.

Significant portions of our revenues from the Infrastructure Solutions segment relate to the sale of equipment involved in the production, handling, recycling or application of asphalt mix. Liquid asphalt is a by-product of oil refining. An increase or decrease in the price of oil impacts the cost of asphalt, which is likely to alter demand for asphalt and therefore affect demand for certain of our products. While increasing oil prices may have a negative financial impact on many of our customers, our equipment can use a significant amount of recycledreclaimed asphalt pavement, thereby partially mitigating the effect of increased oil prices on the final cost of asphalt for the customer. We continue to develop products and initiatives to reduce the amount of oil and related products required to produce asphalt. OilWhile oil prices have increased throughout 2021, its price volatility makes it difficult to predict the costs of oil-based products used in road construction such as liquid asphalt and gasoline. Oil prices have routinely fluctuated in recent years and are expected to continue to fluctuate in the future. In 2021,Based on the current macroeconomic environment, we expect that with increasing demand from the rebound of industrial activity after the slowdown experienced in 2020 with the COVID-19 pandemic that prices will continue to increase in 2021.into 2022.

Net sales decreased $145.2increased $72.8 million or 12.4%7.1% to $1,097.2 million in 2021 from $1,024.4 million in 2020 from $1,169.6 million2020. The increase was primarily driven by changes in 2019. Sales arethe volume, pricing and mix of sales that generated primarily from newincreases in equipment purchases made by customers for use in construction of privately funded infrastructure, public sector spending on infrastructure and parts and component sales of $45.2 million and $29.8 million, respectively, partially offset by decreases in used equipment and service and equipment installation sales of $7.3 million and $3.4 million, respectively. Additionally, we recognized $33.1 million of net incremental sales from acquired businesses partially offset by reduced sales from the exit of our Enid oil and gas drilling product lines of $25.0 million. Sales reported by our foreign subsidiaries in U.S. dollars for 2021 would have been $11.6 million lower had exchange foreign exchange rates been the aggregate, mining, quarrying and recycling markets. Excluding the $20.0 million wood pellet plant sale recorded in the second quarter of 2019, total net sales decreased $125.2 million or 10.9%.same as 2020 rates.

Domestic sales for 20202021 were $842.1 million or 76.7% of net sales compared to $817.0 million or 79.8% of net sales compared to $908.5for 2020, an increase of $25.1 million or 77.7%3.1%. Domestic sales increased primarily due to: (i) net incremental sales of net$26.0 million from acquired businesses, (ii) $19.1 million higher equipment sales, for 2019, a decreaseand (iii) $14.6 million of $91.5 million or 10.1%. Excludinghigher parts and components sales. These increases were partially offset by: (i) reduced sales from the 2019 saleexit of a wood pellet plant, domestic sales for 2020 were $817.0 million or 79.8% of net sales compared to $888.5 million or 77.3% of net sales for 2019, a decrease of $71.5 million or 8.0%. We experienced decreased domestic sales for both our Infrastructure Solutions and Materials Solutions segments during 2020, including for the discontinuation ofEnid oil and gas drilling product lines of $24.0 million, (ii) lower used equipment sales of $6.2 million and exit(iii) reduced service and equipment installation sales of our Enid site.$4.2 million.

International sales for 20202021 were $255.1 million or 23.3% of net sales compared to $207.4 million or 20.2% of net sales compared to $261.1for 2020, an increase of $47.7 million or 22.3% of net23.0%. International sales for 2019, a decrease of $53.7increased primarily due to: (i) $26.1 million or 20.6%. Sales of Infrastructure Solutionshigher equipment sales mainly from COVID-19 related equipment between periods increased while equipment sold by the Materials Solutions segment decreased between 2019 and 2020. Reported sales for 2020 were lower by $19.7 million for our Omaghtemporary site which experienced a government mandated temporary closure. The remaining sales decreases came from various other government mandated shutdownsclosures in the countries in which we operate.prior year, (ii) $15.2 million of higher parts and components sales and (iii) net incremental sales of $7.1 million from acquired businesses.

InSee Note 22, "Strategic Transformation and Restructuring, Impairment and Other Asset Charges", of the first quarter of 2020, as part of our ongoing assessmentNotes to consider whether events or circumstances had occurred that could more likely than not reduce the fair value of a reporting unit below its carrying value, we performed an interim goodwill impairment test as of March 31, 2020 over the mobile asphalt equipment reporting unit. Based on the resultsConsolidated Financial Statements included in Part II, Item 8 of this testing, we recorded a $1.6 million pre-tax non-cashAnnual Report on Form 10-K for discussion of the individual restructuring actions taken and the impairment charge in the Infrastructure Solutions segment to fully impair the mobile asphalt equipment reporting unit's goodwill.charges recorded.

Sales in this segment decreased $61.8were $748.0 million for 2021 compared to $702.8 million for 2020, an increase of $45.2 million or 8.1%6.4%. The increase was primarily driven by a positive impact of changes in the volume, pricing and mix of sales that generated increases in equipment and parts and components sales of $28.8 million and $18.0 million respectively, partially offset by decreases in used equipment and service and equipment installation sales of $6.3 million and $2.8 million, respectively. Additionally, we recognized $33.1 million of net incremental sales from acquired businesses partially offset by reduced sales from the exit of our Enid oil and gas drilling product lines of $25.0 million.

Domestic sales for the Infrastructure Solutions segment decreased $65.8increased by $13.0 million or 10.1%2.2% for 20202021 compared to the same period in 2019. The decrease was2020 primarily driven by the lostdue to (i) $26.0 million of net incremental sales impactfrom acquired businesses, (ii) increased equipment sales of $14.2 million and (iii) increased parts and component sales of $6.1 million. These increases were partially offset by: (i) reduced sales from the closure and exit of our Enid oil and gas drilling product lines of $21.1$24.0 million, (ii) $4.8 million of lower used equipment sales and the non-recurring sale(iii) $3.5 million of the Georgia Pellet Plant in the second quarter of 2019 of $20.0 million. The remaining decrease in domestic sales for the Infrastructure Solutions segment was due to general economic uncertainties. lower service and equipment installation sales.

International sales for the Infrastructure Solutions segment increased $4.0$32.2 million or 3.6%28.2% for 20202021 compared to the same period in 2019. Parts2020 driven by: (i) increased equipment sales for the Infrastructure Solutions segmentof $14.6 million, (ii) increased 2.2% for 2020 compared to the same period in 2019. Infrastructure Solutions also increased for theparts and component sales of $11.9 million and (iii) $7.1 million of net incremental sales associated with the Blair and St. Bruno acquisitions.from acquired businesses.

Sales in this segment decreased $83.4were $349.2 million for 2021 compared to $321.6 million for 2020, an increase of $27.6 million or 20.6%. The decrease was8.6% driven by the temporary site closuresfavorable impact of Omaghchanges in volume, pricing and Johannesburg during 2020 for COVID-19 combined with general economic uncertainties. mix of sales that generated increases in equipment and parts and components sales of $16.4 million and $11.8 million, respectively.

Domestic sales for the Materials Solutions segment decreased by $25.7increased $12.1 million or 10.1%5.3% for 20202021 compared to the same period in 2019, which was driven by the lower2020 primarily due to increased parts and component sales of our crushing$8.5 million and screening projects. increased equipment sales of $5.0 million partially offset by lower used equipment sales.

International sales for the Materials Solutions segment decreased $57.7increased $15.5 million or 38.2%16.6% for 20202021 compared to the same period in 20192020 primarily due to increased equipment sales of $11.4 million and increased parts and component sales of $3.3 million related to the recovery from COVID-19 plant related temporary shutdowns, as well as the impact from the strong U.S. dollar causing our products producedsite closures in the United States to be more expensive. Parts sales for this segment decreased 18.8% for 2020 compared to the same period in 2019.prior year.

Segment profit for the Infrastructure Solutions segment was $53.0 million for 2021 compared to $53.8 million for 2020, compared to $33.8 million for the same period in 2019, an increasea decrease of $20.0$0.8 million or 59.2%1.5%. Segment profit was impacted by an increase in gross profit of $6.9 million due to a 270 basis point increase in gross margins between periods (22.7% and 20.0% for 2020 and 2019, respectively). Segment gross margins increased over the prior year due to $32.6 million of net realizable inventory write-offs that did not recur partially offset by the one-time pellet plant recovery sale, as well as, the closure and exit of Enid. The increasedecrease in segment profit is also attributable to a decrease in selling,resulted primarily from the impact of higher inflation on materials, labor and overhead costs of $33.1 million and increased general and administrative expensescosts of $10.1 million driven by lower consulting fees and travel related$6.6 million. These increased costs and a decrease of $4.8 million in engineering expenses due to COVID-19 related constraints. The segment profit increases were partially offset by net increases in restructuring, impairmentby: (i) the impact of favorable volume, pricing and other propertymix that generated $25.1 million higher gross profit, (ii) reduced losses from divested businesses of $7.0 million, (iii) $4.0 million of increased manufacturing efficiencies and equipment charges of $3.7(iv) $3.1 million in 2020 compared to 2019.decreased restructuring costs.

Segment profit for the Materials Solutions segment was $29.3 million for 2021 compared to $32.1 million for 2020, compared to $22.8 million for the same period in 2019, an increasea decrease of $9.3$2.8 million or 40.8%8.7%. The increasedecrease in segment profit between periods was dueprofits resulted primarily to an increase infrom: (i) the gross marginimpact of 4.0% between periods. Additionally, the increase in segment profit was partially improved by decreasedhigher inflation on materials, labor and overhead costs of $20.5 million, (ii) increased general and administrative costs of $7.3 million, (iii) a settlement loss on pension termination of $5.2 million and (iv) increased research and development expenses of $5.7$3.0 million. These increased costs were partially offset by: (i) the impact of favorable volume, pricing and mix that generated $14.7 million decreased sellinghigher gross profit, (ii) $11.5 million in manufacturing efficiencies, (iii) $5.5 million reduced income tax expense and (iv) reduced expenses associated with closed locations of $6.8 million due to right-sizing activities and benefit from net credits in restructuring, impairment and other property and equipment charges of $1.6 million primarily due to the gain on sale of land and building at our Mequon facility in the fourth quarter of 2020.$4.1 million.

Corporate operations incurred expenses of $64.8 million for 2021 compared to expenses of $40.1 million for 2020, compared to expenses of $35.6 million for 2019, an unfavorable change of $4.5$24.7 million or 12.6%, due primarily to an61.6%. The increase in consultingexpenses resulted primarily from: (i) increased costs related to centralization and infrastructure efforts associated with our transformation initiatives, (ii) the net change in income tax benefit and expense of $4.3 million and (iii) increased research and development expenses of $3.1 million associated with information technology projects and other support projects and net restructuring, impairment and other property and equipment charges of $2.8 million$2.7 million. These increased costs were partially offset by non-recurring impairment charges incurred in the prior year of $2.7 million primarily related to a reductionCompany airplane that was subsequently sold in income taxesthe first quarter of $4.4 million.2021.

Our primary sources of liquidity and capital resources are cash and cash equivalents on hand, borrowing capacity under a $150.0 million revolving credit facility (the "Credit Facility") and cash flows from operations. We had $158.6$134.1 million of cash and cash equivalents available for operating purposes as of December 31, 2020,2021, of which $22.8$21.7 million was held by our foreign subsidiaries. We did not have any outstanding borrowings on the Credit Facility at December 31, 20202021 or 2019.2020. In addition, no borrowings were made under the Credit Facility during 2021 or 2020. Our outstanding letters of credit totaling $7.6$2.5 million decreased borrowing availability to $142.4$147.5 million under the revolving credit facility as of December 31, 2020.2021. The revolving credit facility agreement contains certain financial covenants, including provisions concerning required levels of annual net income and minimum tangible net worth. We were in compliance with the financial covenants of the agreementCredit Facility at December 31, 2020.

Certain of our international subsidiaries in South Africa, Australia, Brazil Canada and Northern Irelandthe United Kingdom each have separate credit facilities with local financial institutions to finance short-term working capital needs, as well as to cover foreign exchange contracts, performance letters of credit, advance payment and retention guarantees. In addition, the Brazilian subsidiary maintains an independent credit facility at a separate financial institution and also enters into order anticipation agreements with a local bank on a periodic basis. Both the outstanding borrowings under the credit facilities of the international subsidiaries and the order anticipation agreements are recorded in "Short-term debt" onin our Consolidated Balance Sheets. Each of the credit facilities are generally guaranteed by Astec Industries, Inc. and/or secured with certain assets of the local subsidiary exceptsubsidiary.

We regularly enter into agreements primarily to purchase inventory in Brazil where the credit facilitiesordinary course of business. As of December 31, 2021, open purchase obligations totaled $243.0 million, of which $231.3 million are supportedexpected to be fulfilled within one year.

We estimate that our capital expenditures will be between $30 and $40 million for the year ending December 31, 2022, which may be impacted by lettersgeneral economic, financial or operational changes, including the impact of credit issued underCOVID-19 on our operating results, and competitive, legislative and regulatory factors, among other considerations.

In late 2020 and early 2021, we entered into certain vendor hosted software arrangements in conjunction with our transformation initiatives to convert our internal operations, manufacturing and finance systems to cloud-based platforms globally. These agreements include software-related payments of $45.9 million to be paid through September 2027. Payments of $5.8 million will be made during 2022, $16.9 million during the Credit Facility.years 2023 to 2024, $16.7 million during the years 2025 to 2026 and $6.5 million after 2026. These cash payments are exclusive of the separately contracted implementation costs that are project-based and are committed at each phase of the implementation.

Net cash provided by operating activities increased $28.9decreased $134.1 million in 20202021 compared to 2019. Net income was the2020. The primary driverdrivers of the increasedecrease in operating cash flows and when combined with changes in large non-cash charges resulted in a totalwere the increase of $36.4inventories on hand due to higher backlog and supply chain logistics challenges of $98.5 million, the timing of receivables and other contract assets of $43.0 million and payable/prepaid income taxes of $29.6 million and lower net income of $29.0 million. These increasesdecreases were partially offset primarily by a lower decreaseincreases related to the timing of accounts payable payments of $39.4 million and higher customer deposits of $37.7 million associated with higher backlog amounts in inventory than prior year 2019 and reductions in customer deposits.the current year.

Net cash used byin investing activities decreased by $2.5 million in 2021 as compared to 2020 were primarily due to acquisitions and expenditures for property and equipment. These cash uses wereoccurring in the prior year that did not recur in 2021 partially offset by higher proceeds from the sale of property and equipment and the sale of our Enid subsidiary.

FinancingNet cash used in financing activities increased by $1.7 million in 2021 as compared to 2020 were primarily a use of cash for the payment of dividends while the use of cash in 2019 was primarily due to net repaymentshigher withholding tax payments on the vesting of our Credit Facility borrowings and the payment of dividends.share-based compensation awards.

Our current assets increased to $641.7 million at December 31, 2021 from $565.8 million at December 31, 2020, from $506.3 million at December 31, 2019, an increase of $59.5 million.$75.9 million or 13.4%. The increase is due primarily to increases in cash and cash equivalents of $109.7 million offset by decreases in inventories of $44.8$53.3 million, andincreases in trade receivables and contract assets, net of $4.4$28.2 million, increases in prepaid and refundable income taxes of $10.7 million and increases in prepaid expenses and other assets of $6.0 million partially offset by decreases in cash, cash equivalents and restricted cash of $24.2 million. Accounts receivable days outstanding increased from 39.3 in 2019 to 45.3 in 2020.2020 to 50.3 in 2021.

Our current liabilities decreasedincreased to $225.3 million at December 31, 2021 from $170.3 million at December 31, 2020, from $172.8an increase of $55.0 million at December 31, 2019, a decrease of $2.5 million.or 32.3%. The decreaseincrease is primarily due to decreasesincreases in accounts payable of $4.5$30.8 million, decreasesincreases in customer deposits of $8.7$26.0 million and decreasesincreases in accrued payroll and related liabilities of $3.9$2.8 million partially offset by increasesdecreases in other accrued liabilities of $13.6$4.8 million.

Management has reviewed all claims and lawsuits and has made adequate provision for any losses that are probable and can be reasonably estimated. Based upon currently available information and with the advice of counsel, management believes that the ultimate outcome of our current claims and legal proceedings, individually and in the aggregate, will not have a material adverse effect on our financial position, cash flows or results of operations. However, claims and legal proceedings are subject to inherent uncertainties and rulings unfavorable to us could occur. If an unfavorable ruling were to occur, there exists the possibility of a material adverse effect on our financial position, cash flows or results of operations.

See Note 16, Commitments and Contingencies of the Notes to the Consolidated Financial Statements included in Part II, Item 8 of this Annual Report on Form 10-K for discussion of contingent liabilities for customer purchases, various guarantees including letters of credit, advance payments and retention guarantees as well as contingencies related to legal proceedings in which we are involved.