
		June 30, 2021		December 31, 2020			March 31, 2022		December 31, 2021
ASSETS	ASSETS					ASSETS
Current assets:	Current assets:					Current assets:
Cash and cash equivalents		$	174.5	$	158.6
Cash, cash equivalents and restricted cash						Cash, cash equivalents and restricted cash	$	111.7	$	134.4
Investments	Investments	9.3		4.3		Investments	6.1		8.6
Trade receivables and contract assets, net of allowance for credit losses of $2.6 and $1.7, respectively		148.3		115.9
Other receivables		6.0		4.7
Trade receivables and contract assets, net of allowance for credit losses of $2.5 and $2.3, respectively						Trade receivables and contract assets, net of allowance for credit losses of $2.5 and $2.3, respectively	137.9		141.7
Other receivables, net of allowance for credit losses of $0.7, respectively						Other receivables, net of allowance for credit losses of $0.7, respectively	4.8		3.5
Inventories	Inventories	257.5		249.7		Inventories	352.9		298.7
Prepaid and refundable income taxes	Prepaid and refundable income taxes	15.7		8.8		Prepaid and refundable income taxes	16.5		20.5
Prepaid expenses and other assets	Prepaid expenses and other assets	18.1		17.5		Prepaid expenses and other assets	25.3		23.5
Assets held for sale	Assets held for sale	5.1		6.3		Assets held for sale	20.5		5.1
Total current assets	Total current assets	634.5		565.8		Total current assets	675.7		636.0
Property and equipment, net of accumulated depreciation of $245.2 and $237.6, respectively		169.8		172.8
Property and equipment, net of accumulated depreciation of $247.2 and $248.0, respectively						Property and equipment, net of accumulated depreciation of $247.2 and $248.0, respectively	164.0		171.7
Investments	Investments	12.3		13.7		Investments	13.8		12.2
Goodwill	Goodwill	39.0		38.7		Goodwill	38.2		38.6
Intangible assets, net of accumulated amortization of $33.5 and $31.3, respectively		26.7		31.2
Intangible assets, net of accumulated amortization of $39.9 and $38.1, respectively						Intangible assets, net of accumulated amortization of $39.9 and $38.1, respectively	21.0		22.7
Deferred income tax assets	Deferred income tax assets	10.0		15.0		Deferred income tax assets	20.7		16.2
Other long-term assets	Other long-term assets	10.0		11.0		Other long-term assets	10.0		8.4
Total assets	Total assets	$	902.3	$	848.2	Total assets	$	943.4	$	905.8
LIABILITIES AND EQUITY	LIABILITIES AND EQUITY					LIABILITIES AND EQUITY
Current liabilities:	Current liabilities:					Current liabilities:
Current maturities of long-term debt	Current maturities of long-term debt	$	0.2	$	0.2	Current maturities of long-term debt	$	0.2	$	0.1
Short-term debt	Short-term debt	1.0		1.4		Short-term debt	4.9		2.6
Accounts payable	Accounts payable	78.5		52.7		Accounts payable	99.7		82.2
Customer deposits	Customer deposits	35.3		34.2		Customer deposits	69.8		60.2
Accrued product warranty	Accrued product warranty	10.5		10.3		Accrued product warranty	11.3		10.5
Accrued payroll and related liabilities	Accrued payroll and related liabilities	28.6		20.8		Accrued payroll and related liabilities	27.4		23.6
Accrued loss reserves	Accrued loss reserves	1.8		3.0		Accrued loss reserves	2.2		1.9
Other current liabilities	Other current liabilities	51.9		47.7		Other current liabilities	41.0		42.2
Total current liabilities	Total current liabilities	207.8		170.3		Total current liabilities	256.5		223.3
Long-term debt	Long-term debt	0.4		0.4		Long-term debt	0.2		0.2
Deferred income tax liabilities	Deferred income tax liabilities	0.5		0.5		Deferred income tax liabilities	1.2		1.4
Other long-term liabilities	Other long-term liabilities	34.3		34.0		Other long-term liabilities	28.1		29.6
Total liabilities	Total liabilities	243.0		205.2		Total liabilities	286.0		254.5
Commitments and contingencies (Note 8)	Commitments and contingencies (Note 8)	0		0		Commitments and contingencies (Note 8)	0		0
Shareholders' equity:	Shareholders' equity:					Shareholders' equity:
Preferred stock - authorized 4,000,000 shares of $1.00 par value; NaN issued		0		0
Common stock – authorized 40,000,000 shares of $0.20 par value; issued and outstanding – 22,757,326 as of June 30, 2021 and 22,611,976 as of December 31, 2020		4.6		4.5
Preferred stock - authorized 4,000,000 shares of $1.00 par value; none issued						Preferred stock - authorized 4,000,000 shares of $1.00 par value; none issued	—		—
Common stock – authorized 40,000,000 shares of $0.20 par value; issued and outstanding – 22,837,047 as of March 31, 2022 and 22,767,052 as of December 31, 2021						Common stock – authorized 40,000,000 shares of $0.20 par value; issued and outstanding – 22,837,047 as of March 31, 2022 and 22,767,052 as of December 31, 2021	4.6		4.5
Additional paid-in capital	Additional paid-in capital	127.8		127.8		Additional paid-in capital	131.1		130.6
Accumulated other comprehensive loss	Accumulated other comprehensive loss	(30.2)		(33.5)		Accumulated other comprehensive loss	(28.3)		(32.4)
Company stock held by SERP, at cost		(1.3)		(1.5)
Company stock held by deferred compensation programs, at cost						Company stock held by deferred compensation programs, at cost	(1.2)		(1.2)
Retained earnings	Retained earnings	557.9		545.2		Retained earnings	550.6		549.3
Shareholders' equity:		658.8		642.5
Shareholders' equity						Shareholders' equity	656.8		650.8
Noncontrolling interest	Noncontrolling interest	0.5		0.5		Noncontrolling interest	0.6		0.5
Total equity	Total equity	659.3		643.0		Total equity	657.4		651.3
Total liabilities and equity	Total liabilities and equity	$	902.3	$	848.2	Total liabilities and equity	$	943.4	$	905.8


		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended March 31,
		2021		2020		2021		2020			2022		2021
Net sales	Net sales	$	278.0	$	265.3	$	562.4	$	554.1	Net sales	$	291.2	$	284.4
Cost of sales	Cost of sales	211.0		205.7		426.9		421.1		Cost of sales	225.1		216.2
Gross profit	Gross profit	67.0		59.6		135.5		133.0		Gross profit	66.1		68.2
Selling, general and administrative expenses	Selling, general and administrative expenses	48.0		37.3		99.7		87.0		Selling, general and administrative expenses	52.7		51.7
Research and development expenses	Research and development expenses	7.0		5.4		13.3		11.9		Research and development expenses	7.0		6.3
Restructuring, impairment and other asset charges, net	Restructuring, impairment and other asset charges, net	0.8		6.0		1.5		8.1		Restructuring, impairment and other asset charges, net	1.0		0.7
Income from operations	Income from operations	11.2		10.9		21.0		26.0		Income from operations	5.4		9.5
Other income:	Other income:									Other income:
Interest expense	Interest expense	(0.2)		(0.2)		(0.4)		(0.2)		Interest expense	(0.4)		(0.2)
Interest income	Interest income	0.2		0.2		0.3		0.4		Interest income	0.2		0.1
Other income, net		0.1		0.3		0		0.3
Other expenses, net										Other expenses, net	(0.2)		(0.1)
Income from operations before income taxes	Income from operations before income taxes	11.3		11.2		20.9		26.5		Income from operations before income taxes	5.0		9.3
Income tax provision (benefit)		2.3		1.8		3.2		(3.3)
Income tax provision										Income tax provision	0.9		0.8
Net income	Net income	9.0		9.4		17.7		29.8		Net income	4.1		8.5
Net (income) loss attributable to noncontrolling interest		0		(0.1)		0		0.1
Net (income) loss attributable to non-controlling interest										Net (income) loss attributable to non-controlling interest	—		—
Net income attributable to controlling interest	Net income attributable to controlling interest	$	9.0	$	9.3	$	17.7	$	29.9	Net income attributable to controlling interest	$	4.1	$	8.5
Per share data:	Per share data:									Per share data:
Earnings per common share - Basic	Earnings per common share - Basic	$	0.40	$	0.41	$	0.78	$	1.32	Earnings per common share - Basic	$	0.18	$	0.38
Earnings per common share - Diluted	Earnings per common share - Diluted	$	0.39	$	0.41	$	0.77	$	1.32	Earnings per common share - Diluted	$	0.18	$	0.37
Weighted average shares outstanding - Basic	Weighted average shares outstanding - Basic	22,742,162		22,583,976		22,688,339		22,567,402		Weighted average shares outstanding - Basic	22,782,476		22,633,457
Weighted average shares outstanding - Diluted	Weighted average shares outstanding - Diluted	22,917,957		22,711,023		22,905,270		22,714,702		Weighted average shares outstanding - Diluted	22,904,167		22,874,810


		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended March 31,
		2021		2020		2021		2020			2022		2021
Net income	Net income	$	9.0	$	9.4	$	17.7	$	29.8	Net income	$	4.1	$	8.5
Other comprehensive income (loss):	Other comprehensive income (loss):									Other comprehensive income (loss):

Foreign currency translation adjustments	Foreign currency translation adjustments	4.1		0.4		3.3		(8.8)		Foreign currency translation adjustments	4.2		(0.8)
Other comprehensive income (loss)	Other comprehensive income (loss)	4.1		0.4		3.3		(8.8)		Other comprehensive income (loss)	4.2		(0.8)
Comprehensive income	Comprehensive income	13.1		9.8		21.0		21.0		Comprehensive income	8.3		7.7
Comprehensive loss attributable to noncontrolling interest		0.1		0		0		0.2
Comprehensive (income) loss attributable to noncontrolling interest										Comprehensive (income) loss attributable to noncontrolling interest	(0.1)		0.1
Comprehensive income attributable to controlling interest	Comprehensive income attributable to controlling interest	$	13.2	$	9.8	$	21.0	$	21.2	Comprehensive income attributable to controlling interest	$	8.2	$	7.8


		Six Months Ended June 30,					Three Months Ended March 31,
		2021		2020			2022		2021
Cash flows from operating activities:	Cash flows from operating activities:					Cash flows from operating activities:
Net income	Net income	$	17.7	$	29.8	Net income	$	4.1	$	8.5
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		10.0		10.6
Amortization		5.1		2.0
Adjustments to reconcile net income to net cash (used in) provided by operating activities:						Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization						Depreciation and amortization	6.7		7.6
Provision for credit losses	Provision for credit losses	0.7		0.8		Provision for credit losses	0.6		0.3
Provision for warranties	Provision for warranties	4.9		5.1		Provision for warranties	3.2		2.7
Deferred compensation expense		0.3		0.2
Deferred compensation (benefit) expense						Deferred compensation (benefit) expense	(0.8)		0.7
Share-based compensation	Share-based compensation	2.9		3.0		Share-based compensation	1.8		1.4
Deferred tax provision		5.4		13.4
Deferred tax (benefit) provision						Deferred tax (benefit) provision	(4.0)		0.8
Gain on disposition of property and equipment	Gain on disposition of property and equipment	(0.3)		(0.6)		Gain on disposition of property and equipment	—		(0.1)

Asset impairment charges		0.2		4.4
Distributions to SERP participants		(1.1)		(0.4)

Distributions to deferred compensation programs' participants						Distributions to deferred compensation programs' participants	(0.1)		(0.3)
Change in operating assets and liabilities, excluding the effects of acquisitions:	Change in operating assets and liabilities, excluding the effects of acquisitions:					Change in operating assets and liabilities, excluding the effects of acquisitions:
Purchase of trading securities, net		(3.1)		0
Sale (purchase) of trading securities, net						Sale (purchase) of trading securities, net	0.6		(1.4)
Receivables and other contract assets	Receivables and other contract assets	(32.9)		5.4		Receivables and other contract assets	5.3		(26.4)
Inventories	Inventories	(7.4)		31.4		Inventories	(53.7)		5.3
Prepaid expenses	Prepaid expenses	(0.1)		5.2		Prepaid expenses	(1.0)		0.7
Other assets	Other assets	(0.5)		(2.5)		Other assets	(1.4)		(1.2)
Accounts payable	Accounts payable	25.5		(7.7)		Accounts payable	17.3		15.8

Accrued loss reserves	Accrued loss reserves	(0.4)		(0.1)		Accrued loss reserves	(0.2)		0.1
Accrued payroll and related expenses	Accrued payroll and related expenses	7.8		(2.9)		Accrued payroll and related expenses	3.6		2.6
Other accrued liabilities	Other accrued liabilities	6.6		3.6		Other accrued liabilities	(2.9)		(0.3)
Accrued product warranty	Accrued product warranty	(4.7)		(4.5)		Accrued product warranty	(2.4)		(2.1)
Customer deposits	Customer deposits	0.9		(20.1)		Customer deposits	9.3		(0.9)
Income taxes payable/prepaid	Income taxes payable/prepaid	(7.0)		10.6		Income taxes payable/prepaid	4.4		0.8
Other		0		(1.8)
Net cash provided by operating activities		30.5		84.9

Net cash (used in) provided by operating activities						Net cash (used in) provided by operating activities	(9.6)		14.6
Cash flows from investing activities:	Cash flows from investing activities:					Cash flows from investing activities:
Acquisitions, net of cash acquired	Acquisitions, net of cash acquired	0.1		0		Acquisitions, net of cash acquired	—		0.1
Price adjustment on prior sale of subsidiary	Price adjustment on prior sale of subsidiary	(1.1)		0		Price adjustment on prior sale of subsidiary	—		(1.1)
Expenditures for property and equipment	Expenditures for property and equipment	(7.2)		(7.4)		Expenditures for property and equipment	(11.6)		(3.3)
Proceeds from sale of property and equipment	Proceeds from sale of property and equipment	1.5		2.0		Proceeds from sale of property and equipment	0.2		1.4
Purchase of investments	Purchase of investments	(0.6)		(0.6)		Purchase of investments	(0.3)		(0.2)
Sale of investments	Sale of investments	0.5		0.4		Sale of investments	—		0.1
Net cash used by investing activities		(6.8)		(5.6)
Net cash used in investing activities						Net cash used in investing activities	(11.7)		(3.0)


		Six Months Ended June 30,					Three Months Ended March 31,
		2021		2020			2022		2021
Cash flows from financing activities:	Cash flows from financing activities:					Cash flows from financing activities:
Payment of dividends	Payment of dividends	(5.0)		(5.0)		Payment of dividends	(2.8)		(2.5)
Borrowings under bank loans	Borrowings under bank loans	2.3		0.8		Borrowings under bank loans	5.4		2.0
Repayment of bank loans	Repayment of bank loans	(2.7)		(1.0)		Repayment of bank loans	(3.6)		(2.3)

Sale of Company stock by SERP, net		0.5		0.1
Sale of Company stock by deferred compensation programs, net						Sale of Company stock by deferred compensation programs, net	—		0.2
Withholding tax paid upon vesting of share-based compensation awards	Withholding tax paid upon vesting of share-based compensation awards	(3.2)		(0.6)		Withholding tax paid upon vesting of share-based compensation awards	(1.3)		(3.0)

Net cash used by financing activities		(8.1)		(5.7)
Net cash used in financing activities						Net cash used in financing activities	(2.3)		(5.6)
Effect of exchange rates on cash	Effect of exchange rates on cash	0.3		(2.7)		Effect of exchange rates on cash	0.9		—
Increase in cash and cash equivalents		15.9		70.9
Cash and cash equivalents, beginning of period		158.6		48.9
Cash and cash equivalents, end of period		$	174.5	$	119.8
(Decrease) increase in cash and cash equivalents and restricted cash						(Decrease) increase in cash and cash equivalents and restricted cash	(22.7)		6.0
Cash and cash equivalents and restricted cash, beginning of period						Cash and cash equivalents and restricted cash, beginning of period	134.4		158.6
Cash and cash equivalents and restricted cash, end of period						Cash and cash equivalents and restricted cash, end of period	$	111.7	$	164.6

Supplemental Cash Flow Information
Supplemental cash flow information:						Supplemental cash flow information:
Cash paid during the year for:	Cash paid during the year for:					Cash paid during the year for:
Interest, net of capitalized interest	Interest, net of capitalized interest	$	0.1	$	0.2	Interest, net of capitalized interest	$	0.1	$	0.1
Income taxes paid (refunded)		$	5.7	$	(20.5)
Income taxes paid						Income taxes paid	$	0.4	$	0.2

Supplemental disclosures of non-cash items
Supplemental disclosures of non-cash items:						Supplemental disclosures of non-cash items:
Non-cash investing activities:	Non-cash investing activities:					Non-cash investing activities:
Capital expenditures in accounts payable	Capital expenditures in accounts payable	$	0.2	$	0.7	Capital expenditures in accounts payable	$	0.9	$	0.2

Non-cash financing activities:	Non-cash financing activities:					Non-cash financing activities:
Additions to right-of-use assets and lease liabilities	Additions to right-of-use assets and lease liabilities	$	1.3	$	0.1	Additions to right-of-use assets and lease liabilities	$	0.4	$	0.5
Liability award converted to equity		$	0	$	0.8


		Common Stock	Common Stock Amount		Additional Paid-in-Capital		Accumulated Other Comprehensive Loss		Company Shares Held by SERP		Retained Earnings		Non-controlling Interest		Total Equity			Common Stock	Common Stock Amount		Additional Paid-in-Capital		Accumulated Other Comprehensive Loss		Company Shares Held by SERP		Retained Earnings		Non-controlling Interest		Total Equity
Balance, December 31, 2020		22,611,976	$	4.5	$	127.8	$	(33.5)	$	(1.5)	$	545.2	$	0.5	$	643.0

Balance, December 31, 2021																	Balance, December 31, 2021	22,767,052	$	4.5	$	130.6	$	(32.4)	$	(1.2)	$	549.3	$	0.5	$	651.3
Net income	Net income	—	—		—		—		—		8.7		—		8.7		Net income	—	—		—		—		—		4.1		—		4.1
Other comprehensive loss		—	—		—		(0.7)		—		—		(0.1)		(0.8)
Dividends ($0.11 per share)		—	—		—		—		—		(2.5)		—		(2.5)
Other comprehensive income																	Other comprehensive income	—	—		—		4.1		—		—		0.1		4.2
Dividends ($0.12 per share)																	Dividends ($0.12 per share)	—	—		—		—		—		(2.8)		—		(2.8)
Share-based compensation	Share-based compensation	—	—		1.4		—		—		—		—		1.4		Share-based compensation	—	—		1.8		—		—		—		—		1.8

Issuance of common stock under incentive plan	Issuance of common stock under incentive plan	103,541	—		—		—		—		—		—		—		Issuance of common stock under incentive plan	69,995	0.1		—		—		—		—		—		0.1
Withholding tax paid upon equity award vesting	Withholding tax paid upon equity award vesting	—	—		(3.0)		—		—		—		—		(3.0)		Withholding tax paid upon equity award vesting	—	—		(1.3)		—		—		—		—		(1.3)

SERP transactions, net		—	—		0.1		—		0.1		—		—		0.2

Balance, March 31, 2021		22,715,517	$	4.5	$	126.3	$	(34.2)	$	(1.4)	$	551.4	$	0.4	$	647.0
Net income		—	—		—		—		—		9.0		—		9.0
Other comprehensive income		—	—		—		4.0		—		—		0.1		4.1
Dividends ($0.11 per share)		—	—		—		—		—		(2.5)		—		(2.5)
Share-based compensation		—	—		1.5		—		—		—		—		1.5

Issuance of common stock under incentive plan		41,809	0.1		—		—		—		—		—		0.1
Withholding tax paid upon equity award vesting		—	—		(0.2)		—		—		—		—		(0.2)

SERP transactions, net		—	—		0.2		—		0.1		—		—		0.3

Balance, June 30, 2021		22,757,326	$	4.6	$	127.8	$	(30.2)	$	(1.3)	$	557.9	$	0.5	$	659.3
Balance, March 31, 2022																	Balance, March 31, 2022	22,837,047	$	4.6	$	131.1	$	(28.3)	$	(1.2)	$	550.6	$	0.6	$	657.4


		Common Stock	Common Stock Amount		Additional Paid-in-Capital		Accumulated Other Comprehensive Loss		Company Shares Held by SERP		Retained Earnings		Non-controlling Interest		Total Equity
Balance, December 31, 2019		22,551,183	$	4.5	$	122.6	$	(31.8)	$	(1.7)	$	508.3	$	0.5	$	602.4
Net income		—	—		—		—		—		20.6		(0.2)		20.4
Other comprehensive loss		—	—		—		(9.2)		—		—		—		(9.2)
Dividends ($0.11 per share)		—	—		—		—		—		(2.5)		—		(2.5)
Share-based compensation		—	—		1.1		—		—		—		—		1.1
Conversion of liability awards to equity		—	—		0.8		—		—		—		—		0.8
Issuance of common stock under incentive plan		32,663	—		—		—		—		—		—		—
Withholding tax paid upon equity award vesting		—	—		(0.5)		—		—		—		—		(0.5)

																		Common Stock	Common Stock Amount		Additional Paid-in-Capital		Accumulated Other Comprehensive Loss		Company Shares Held by SERP		Retained Earnings		Non-controlling Interest		Total Equity

Balance, March 31, 2020		22,583,846	$	4.5	$	124.0	$	(41.0)	$	(1.7)	$	526.4	$	0.3	$	612.5

Balance, December 31, 2020																	Balance, December 31, 2020	22,611,976	$	4.5	$	127.8	$	(33.5)	$	(1.5)	$	543.7	$	0.5	$	641.5
Net income	Net income	—	—		—		—		—		9.3		0.1		9.4		Net income	—	—		—		—		—		8.5		—		8.5
Other comprehensive income (loss)		—	—		—		0.5		—		—		(0.1)		0.4
Other comprehensive loss																	Other comprehensive loss	—	—		—		(0.7)		—		—		(0.1)		(0.8)
Dividends ($0.11 per share)	Dividends ($0.11 per share)	—	—		—		—		—		(2.5)		—		(2.5)		Dividends ($0.11 per share)	—	—		—		—		—		(2.5)		—		(2.5)
Share-based compensation	Share-based compensation	—	—		1.9		—		—		—		—		1.9		Share-based compensation	—	—		1.4		—		—		—		—		1.4

Issuance of common stock under incentive plan	Issuance of common stock under incentive plan	19,136	—		—		—		—		—		—		—		Issuance of common stock under incentive plan	103,541	—		—		—		—		—		—		—
Withholding tax paid upon equity award vesting	Withholding tax paid upon equity award vesting	—	—		(0.1)		—		—		—		—		(0.1)		Withholding tax paid upon equity award vesting	—	—		(3.0)		—		—		—		—		(3.0)

SERP transactions, net		—	—		0		—		0.1		—		—		0.1
Deferred compensation programs' transactions, net																	Deferred compensation programs' transactions, net	—	—		0.1		—		0.1		—		—		0.2

Balance, June 30, 2020		22,602,982	$	4.5	$	125.8	$	(40.5)	$	(1.6)	$	533.2	$	0.3	$	621.7
Balance, March 31, 2021																	Balance, March 31, 2021	22,715,517	$	4.5	$	126.3	$	(34.2)	$	(1.4)	$	549.7	$	0.4	$	645.3

Astec Industries, Inc. ("Astec" or the "Company") is a Tennessee corporation which was incorporated in 1972. The Company designs, engineers, manufactures and markets equipment and components used primarily in road building and related construction activities, as well as other products discussed below. The Company's products are used in each phase of road building, from quarrying and crushing the aggregate to application of the road surface. The Company also manufactures 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; concrete plants; commercial and industrial burners; and combustion control systems.

The Corporate category consists primarily of the parent company and Astec Insurance Company ("Astec Insurance" or the "captive"), 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. Management evaluates performance and allocates resources to the 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 accompanying unaudited consolidated financial statements include the accounts of Astec and its subsidiaries and have been prepared by the Company, pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). The Company prepares its financial statements in accordance with accounting principles generally accepted in the U.S. ("U.S. GAAP"). Certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the SEC rules and regulations governing interim financial statements. However, the Company believes that the disclosures made in the unaudited consolidated financial statements and related notes are adequate to make the information presented not misleading. These consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, ~~2020.~~2021. All intercompany balances and transactions between the Company and its affiliates have been eliminated in consolidation.

Noncontrolling interest in the Company's consolidated financial statements represents the 7% interest in a consolidated subsidiary which is not owned by the Company. Since the Company controls this subsidiary, the subsidiary's financial statements are consolidated with those of the Company, and the noncontrolling owner's 7% share of the subsidiary's net assets and results of operations is deducted and reported as "Noncontrolling interest" in the Consolidated Balance Sheets and as "Net (income) loss attributable to non-controlling interest" in the Consolidated Statements of Operations. The Company executed an agreement in February 2022 with the noncontrolling interest holder, which is undergoing a judicial reorganization in Brazil, to acquire their outstanding interest in full for R$10.0M (approximately $2.0 million, subject to the effect of exchange rates). Completion of the transaction is subject to obtaining certain judicial approval in Brazil.

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant items subject to such estimates and assumptions include inventory obsolescence costs, warranty costs, inventory net realizable value, self-insurance loss reserves, ~~employee benefit programs~~share-based compensation and the measurement of income tax assets and liabilities. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. The COVID-19 pandemic ~~has~~and its contributory impacts on the economy have resulted in uncertainties in the Company's business, which may result in actual results differing from those estimates. As a result, the Company's accounting estimates and assumptions may change over time in response to ~~COVID-19.~~COVID-19 and its contributory impacts. Such changes could result in future impairments of goodwill, intangibles, long-lived assets and investment securities and incremental credit losses on receivables, among other issues. On an ongoing basis, the Company evaluates these assumptions, judgments and estimates. Actual results may differ from these estimates.

In ~~December 2019,~~November 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ~~2019-12, "Income Taxes~~("ASU") 2021-10, "Government Assistance (Topic ~~740), Simplifying the Accounting for Income Taxes"~~832)", which ~~eliminates certain exceptions related~~aims to increase the ~~approach~~transparency of government assistance including the disclosure of the types of assistance, an entity’s accounting for ~~intra-period tax allocation,~~ the ~~methodology for calculating income taxes in an interim period~~assistance and the ~~recognition~~effect of ~~deferred tax liabilities for outside basis differences.~~the assistance on an entity’s financial statements. The new guidance ~~also simplifies aspects~~requires expanded disclosure about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. This new standard was effective for the Company on January 1, 2022. Availability of government assistance has typically been limited. The Company did not receive any government assistance in 2022.

In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848)", which provides optional guidance for a limited period of time to ease the potential burden in accounting (or recognizing the effects of) reference rate reform on financial reporting. This was in response to stakeholders raising certain operational challenges likely to arise in accounting for contract modifications and hedge accounting because of reference rate reform. Some of those challenges relate to the significant volume of contracts and other arrangements, such as debt agreements, lease agreements and derivative instruments, which will be modified to replace references to discontinued rates with references to replacement rates. For accounting purposes, such contract modifications are required to be evaluated in determining whether the modifications result in the establishment of new contracts or the continuation of existing contracts. Stakeholders indicated that due to the significant volume of affected contracts and other arrangements, together with a compressed time frame for making contract modifications, the application of existing accounting standards on assessing modifications versus extinguishments could be costly and burdensome. In addition, stakeholders indicated that financial reporting results should reflect the intended continuation of such contracts and arrangements during the period of the ~~accounting for franchise taxes~~market-wide transition to alternative reference rates. The amendments are elective and ~~enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill.~~are effective upon issuance through December 31, 2022. The Company ~~adopted~~intends to apply this ~~new standard effective January 1, 2021. The adoption~~guidance if modifications of ~~this standard had an immaterial~~its contracts that include LIBOR occur, which is not expected to have a material impact on the Company's consolidated financial ~~position, results~~statements.

In October 2021, the FASB issued ASU 2021-08, "Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers", which requires entities to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 2014-09, Revenue from Contracts with Customers (Topic 606). The update will generally result in an entity recognizing contract assets and contract liabilities at amounts consistent with those recorded by the acquiree immediately before the acquisition date rather than at fair value. The new standard is effective on a prospective basis for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company is evaluating the impact of ~~operations or cash flows.~~adopting this guidance on future acquisitions and may elect to early adopt, but has not yet finalized that election.

~~CON-E-CO Acquisition~~ - The Company entered into a Stock Purchase Agreement, dated as of July 20, 2020, by and between Oshkosh Corporation for the purchase of the CON-E-CO concrete equipment company in Nebraska. The purchase price was $13.8 million, after adjustments, and was paid in cash. The Company's allocation of the purchase price, net of the adjustments in the first and second quarters of 2021 discussed below, resulted in the recognition of $4.3 million of intangible assets primarily consisting of customer relationships (8 year life) and trade name (3 year life). Significant inputs and assumptions used in determining the fair values of these intangible assets include management's forecasts of future revenues, earnings and cash flows, a discount rate based on the median weighted average cost of capital of the Company and select market competitors, and proportion of intangible assets acquired in relation to tangible assets. The acquisition provides the Company with a broader line of concrete batch plant manufacturing, which will strengthen the Infrastructure Solutions segment. Results of operations have been consolidated from the date of acquisition.

InDuring the first quarter of ~~2021,~~2022, the Company ~~recorded a $0.4 million adjustment~~identified errors in its previously issued financial statements related to an overstatement of work-in-process inventory that mainly accumulated over the periods from 2018 through 2021 thereby understating "Cost of sales" in those periods and an overstatement of "Net sales" and "Cost of sales" as well as impacts to certain consolidated balance sheet financial statement line items as a ~~refined valuation~~result of ~~deferred tax liabilities,~~over-time revenue recognition calculation errors at one of the Company's sites which ~~was offset in intangible assets. In~~impacted the second, ~~quarter~~third and fourth quarters of ~~2021, the Company recorded a $0.3 million adjustment related to right-of-use lease assets, which was offset in accounts payable and other.~~2021.

~~BMH Systems Acquisition~~ -above errors, the Company is revising the previously issued consolidated financial statements for the three months ended March 31, 2021 in this Form 10-Q. The Company ~~entered into a Share Purchase Agreement, dated~~is also disclosing the impact of the revisions on the previously filed unaudited consolidated financial statements for the three and six months ended June 30, 2021 and the three and nine months ended September 30, 2021 as well as the previously filed audited year ended periods as of ~~August 3,~~December 31, 2021 and 2020 by and ~~between BMH Systems Corporation ("St. Bruno")~~the opening balance sheet equity impact for December 31, 2019. As a result, the ~~purchase of~~Company has corrected the ~~concrete equipment company in Quebec, Canada. The purchase price was $15.6 million, after adjustments, and was paid in cash. The Company's allocation of the purchase price resulted~~misstatements as disclosed in the recognition of $6.3 million of goodwill and $5.7 million of other intangible assets primarily consisting of customer relationships (9 year life) and of trade name (15 year life). Significant inputs and assumptions usedfollowing tables for all impacted financial statement line items in determining the fair values of these intangible assets include management's forecasts of future revenues, earnings and cash flows, a discount rate based on the median weighted average cost of capital of the Company and select market competitors, and proportion of intangible assets acquired in relation to tangible assets. The acquisition provides the Company with a broader line of concrete batch plant manufacturing, which will strengthen the Infrastructure Solutions segment. Results of operations have been consolidated from the date of acquisition. The goodwill is not expected to be deductible for income tax purposes.prior periods.

~~The following table summarizes the final allocations of the total purchase price:~~


	December 31, 2021
(in millions)	As Previously Reported		Adjustment		As Revised
Trade receivables and contract assets, net	$	144.1	$	(2.4)	$	141.7
Inventories	303.0		(4.3)		298.7
Prepaid and refundable income taxes	19.5		1.0		20.5
Total current assets	641.7		(5.7)		636.0
Deferred income tax assets	16.0		0.2		16.2
Total assets	911.3		(5.5)		905.8
Accounts payable	83.5		(1.3)		82.2
Other current liabilities	42.9		(0.7)		42.2
Total current liabilities	225.3		(2.0)		223.3
Total liabilities	256.5		(2.0)		254.5

Retained earnings	552.8		(3.5)		549.3
Shareholders' equity	654.3		(3.5)		650.8
Total equity	654.8		(3.5)		651.3
Total liabilities and equity	911.3		(5.5)		905.8

~~Proforma financial information is not included since not significant.~~


	Three Months Ended March 31, 2021
(in millions)	As Previously Reported		Adjustment		As Revised

Cost of sales	$	215.9	$	0.3	$	216.2
Gross profit	68.5		(0.3)		68.2
Income from operations	9.8		(0.3)		9.5
Income from operations before income taxes	9.6		(0.3)		9.3
Income tax provision	0.9		(0.1)		0.8
Net income	8.7		(0.2)		8.5
Net income attributable to controlling interest	8.7		(0.2)		8.5
Per share data:
Earnings per common share - Basic	0.38		—		0.38
Earnings per common share - Diluted	0.38		0.01		0.37


	Three Months Ended June 30, 2021						Six Months Ended June 30, 2021
(in millions)	As Previously Reported		Adjustment		As Revised		As Previously Reported		Adjustment		As Revised
Net sales	$	278.0	$	(0.4)	$	277.6	$	562.4	$	(0.4)	$	562.0
Cost of sales	211.0		0.5		211.5		426.9		0.8		427.7
Gross profit	67.0		(0.9)		66.1		135.5		(1.2)		134.3
Income from operations	11.2		(0.9)		10.3		21.0		(1.2)		19.8
Income from operations before income taxes	11.3		(0.9)		10.4		20.9		(1.2)		19.7
Income tax provision	2.3		(0.2)		2.1		3.2		(0.3)		2.9
Net income	9.0		(0.7)		8.3		17.7		(0.9)		16.8
Net income attributable to controlling interest	9.0		(0.7)		8.3		17.7		(0.9)		16.8
Per share data:
Earnings per common share - Basic	0.40		0.04		0.36		0.78		0.04		0.74
Earnings per common share - Diluted	0.39		0.03		0.36		0.77		0.04		0.73


	Three Months Ended September 30, 2021						Nine Months Ended September 30, 2021
(in millions)	As Previously Reported		Adjustment		As Revised		As Previously Reported		Adjustment		As Revised
Net sales	$	267.0	$	(0.1)	$	266.9	$	829.4	$	(0.5)	$	828.9
Cost of sales	204.7		0.3		205.0		631.6		1.1		632.7
Gross profit	62.3		(0.4)		61.9		197.8		(1.6)		196.2
Income from operations	6.7		(0.4)		6.3		27.7		(1.6)		26.1
Income from operations before income taxes	6.5		(0.4)		6.1		27.4		(1.6)		25.8
Income tax provision	(2.8)		(0.1)		(2.9)		0.4		(0.4)		—
Net income	9.3		(0.3)		9.0		27.0		(1.2)		25.8
Net income attributable to controlling interest	9.3		(0.3)		9.0		27.0		(1.2)		25.8
Per share data:
Earnings per common share - Basic	0.41		0.01		0.40		1.19		0.05		1.14
Earnings per common share - Diluted	0.41		0.02		0.39		1.18		0.05		1.13


	Year Ended December 31, 2021						Year Ended December 31, 2020
(in millions)	As Previously Reported		Adjustment		As Revised		As Previously Reported		Adjustment		As Revised
Net sales	$	1,097.2	$	(1.7)	$	1,095.5	$	1,024.4	$	—	$	1,024.4
Cost of sales	845.5		1.0		846.5		784.3		1.2		785.5
Gross profit	251.7		(2.7)		249.0		240.1		(1.2)		238.9
Income from operations	22.1		(2.7)		19.4		43.0		(1.2)		41.8
Income from operations before income taxes	16.5		(2.7)		13.8		45.7		(1.2)		44.5
Income tax provision	(1.4)		(0.7)		(2.1)		(1.2)		(0.3)		(1.5)
Net income	17.9		(2.0)		15.9		46.9		(0.9)		46.0
Net income attributable to controlling interest	17.8		(2.0)		15.8		46.9		(0.9)		46.0
Per share data:
Earnings per common share - Basic	0.78		0.08		0.70		2.08		0.04		2.04
Earnings per common share - Diluted	0.78		0.09		0.69		2.05		0.04		2.01


	Year Ended December 31, 2021						Year Ended December 31, 2020
	As Previously Reported		Adjustment		As Revised		As Previously Reported		Adjustment		As Revised
Net income	$	17.9	$	(2.0)	$	15.9	$	46.9	$	(0.9)	$	46.0

Receivables and other contract assets	(30.8)		2.4		(28.4)		12.2		—		12.2
Inventories	(53.8)		2.3		(51.5)		44.7		1.2		45.9
Accounts payable	30.8		(1.3)		29.5		(8.6)		—		(8.6)
Other accrued liabilities	(0.7)		(0.7)		(1.4)		9.8		—		9.8
Income taxes payable/prepaid	(13.6)		(0.7)		(14.3)		16.0		(0.3)		15.7


	As Previously Reported		Adjustment		As Revised
Balance, December 31, 2019

Retained Earnings	$	508.3	$	(0.6)	$	507.7
Total Equity	602.4		(0.6)		601.8

Balance, December 31, 2020

Retained Earnings	545.2		(1.5)		543.7
Total Equity	643.0		(1.5)		641.5

Balance, March 31, 2021

Retained Earnings	551.4		(1.7)		549.7
Total Equity	647.0		(1.7)		645.3

Balance, June 30, 2021

Retained Earnings	557.9		(2.4)		555.5
Total Equity	659.3		(2.4)		656.9

Balance, September 30, 2021

Retained Earnings	564.7		(2.7)		562.0
Total Equity	663.1		(2.7)		660.4

Balance, December 31, 2021

Retained Earnings	552.8		(3.5)		549.3
Total Equity	654.8		(3.5)		651.3


(in millions)	(in millions)	June 30, 2021		December 31, 2020		(in millions)	March 31, 2022		December 31, 2021
Raw materials and parts	Raw materials and parts	$	175.1	$	154.6	Raw materials and parts	$	246.9	$	216.1
Work-in-process	Work-in-process	60.2		57.3		Work-in-process	71.5		50.4
Finished goods	Finished goods	18.7		34.0		Finished goods	32.1		28.9
Used equipment	Used equipment	3.5		3.8		Used equipment	2.4		3.3
Total	Total	$	257.5	$	249.7	Total	$	352.9	$	298.7

The Company has various financial instruments that must be measured at fair value on a recurring basis, including marketable debt and equity securities held by Astec Insurance and marketable equity securities held in the Company's deferred compensation programs. The Company's deferred compensation programs include a non-qualified Supplemental Executive Retirement Plan ("SERP") and a separate non-qualified Deferred Compensation Plan. Although the deferred compensation programs' investments are allocated to individual participants and investment decisions are made solely by those participants, they are non-qualified plans. Consequently, the Company owns the assets and the related offsetting liability for disbursement until such time as a participant makes a qualifying ~~withdrawal, which is~~withdrawal. The SERP assets and related offsetting liability are recorded in non-current "Investments" and "Other long-term liabilities", respectively, in the Consolidated Balance Sheets. The Company's

The carrying amount of cash and cash equivalents, trade receivables and contract assets, other receivables, accounts payable, short-term debt and long-term debt approximates their fair value because of their short-term nature and/or interest rates associated with the instruments. Investments are carried at their fair value based on quoted market prices for identical or similar assets or, where no quoted prices exist, other observable inputs for the asset. The fair values of foreign currency exchange contracts are based on quotations from various banks for similar instruments using models with market based inputs.


Level 1 -						Unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2 -						Unadjusted quoted prices in active markets for similar assets or liabilities; or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs other than quoted prices that are observable for the asset or liability.

Level 3 -						Inputs reflect management's best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model.


		June 30, 2021							March 31, 2022
(in millions)	(in millions)	Level 1		Level 2		Total		(in millions)	Level 1		Level 2		Total
Financial assets:	Financial assets:							Financial assets:
Trading equity securities:	Trading equity securities:							Trading equity securities:
Deferred compensation programs money market fund		$	0.2	$	0	$	0.2
Deferred compensation programs mutual funds		5.4		0		5.4

Deferred compensation programs' mutual funds								Deferred compensation programs' mutual funds	$	4.8	$	—	$	4.8
Preferred stocks	Preferred stocks	0.3		0		0.3		Preferred stocks	0.3		—		0.3
Equity funds	Equity funds	3.8		0		3.8		Equity funds	1.2		—		1.2
Trading debt securities:	Trading debt securities:							Trading debt securities:
Corporate bonds	Corporate bonds	3.6		0		3.6		Corporate bonds	4.4		—		4.4
Municipal bonds	Municipal bonds	0		0.2		0.2		Municipal bonds	—		0.1		0.1
Floating rate notes	Floating rate notes	0.4		0		0.4		Floating rate notes	0.4		—		0.4
U.S. government securities	U.S. government securities	1.4		0		1.4		U.S. government securities	1.1		—		1.1
Asset-backed securities	Asset-backed securities	0		1.3		1.3		Asset-backed securities	—		5.0		5.0
Other	Other	3.9		1.1		5.0		Other	1.7		0.9		2.6
Derivative financial instruments		0		0.1		0.1

Total financial assets	Total financial assets	$	19.0	$	2.7	$	21.7	Total financial assets	$	13.9	$	6.0	$	19.9
Financial liabilities:	Financial liabilities:							Financial liabilities:

Deferred compensation programs liabilities		$	0	$	7.7	$	7.7
Derivative financial instruments								Derivative financial instruments	$	—	$	0.3	$	0.3
Deferred compensation programs' liabilities								Deferred compensation programs' liabilities	—		6.3		6.3
Total financial liabilities	Total financial liabilities	$	0	$	7.7	$	7.7	Total financial liabilities	$	—	$	6.6	$	6.6


		December 31, 2020							December 31, 2021
(in millions)	(in millions)	Level 1		Level 2		Total		(in millions)	Level 1		Level 2		Total
Financial assets:	Financial assets:							Financial assets:
Trading equity securities:	Trading equity securities:							Trading equity securities:
Deferred compensation programs money market fund		$	0.2	$	0	$	0.2
Deferred compensation programs mutual funds		4.8		0		4.8

Deferred compensation programs' mutual funds								Deferred compensation programs' mutual funds	$	4.9	$	—	$	4.9
Preferred stocks	Preferred stocks	0.3		0		0.3		Preferred stocks	0.3		—		0.3
Equity funds	Equity funds	1.7		0		1.7		Equity funds	3.0		—		3.0
Trading debt securities:	Trading debt securities:							Trading debt securities:
Corporate bonds	Corporate bonds	4.8		0		4.8		Corporate bonds	3.3		—		3.3
Municipal bonds	Municipal bonds	0		0.9		0.9		Municipal bonds	—		0.2		0.2
Floating rate notes	Floating rate notes	0.4		0		0.4		Floating rate notes	0.4		—		0.4
U.S. government securities	U.S. government securities	1.8		0		1.8		U.S. government securities	1.1		—		1.1
Asset-backed securities	Asset-backed securities	0		2.1		2.1		Asset-backed securities	—		3.5		3.5
Other	Other	0		1.0		1.0		Other	3.1		1.0		4.1
Derivative financial instruments	Derivative financial instruments	0		0.1		0.1		Derivative financial instruments	—		0.1		0.1
Total financial assets	Total financial assets	$	14.0	$	4.1	$	18.1	Total financial assets	$	16.1	$	4.8	$	20.9
Financial liabilities:	Financial liabilities:							Financial liabilities:
Derivative financial instruments		$	0	$	0.5	$	0.5
Deferred compensation programs liabilities		0		7.3		7.3

Deferred compensation programs' liabilities								Deferred compensation programs' liabilities	$	—	$	7.2	$	7.2
Total financial liabilities	Total financial liabilities	$	0	$	7.8	$	7.8	Total financial liabilities	$	—	$	7.2	$	7.2

The Company warrants its products against manufacturing defects and performance to specified standards. The warranty period and performance standards vary by market and uses of its products, but generally range from three months to two years or up to a specified number of hours of operation. The Company estimates the costs that may be incurred under its warranties and records a liability at the time product sales are recorded. The product warranty liability is primarily based on historical claim rates, nature of claims and the associated cost.


		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended March 31,
(in millions)	(in millions)	2021		2020		2021		2020		(in millions)	2022		2021
Reserve balance, beginning of the period	Reserve balance, beginning of the period	$	10.9	$	10.7	$	10.3	$	10.3	Reserve balance, beginning of the period	$	10.5	$	10.3
Warranty liabilities accrued	Warranty liabilities accrued	2.2		2.4		4.9		5.1		Warranty liabilities accrued	3.2		2.7
Warranty liabilities settled	Warranty liabilities settled	(2.6)		(2.4)		(4.7)		(4.5)		Warranty liabilities settled	(2.4)		(2.1)
Other		0		0		0		(0.2)

Reserve balance, end of the period	Reserve balance, end of the period	$	10.5	$	10.7	$	10.5	$	10.7	Reserve balance, end of the period	$	11.3	$	10.9

The Company records reserves for losses related to known workers' compensation and general liability claims that have been incurred but not yet paid or are estimated to have been incurred but not yet reported to the Company. The undiscounted reserves are actuarially determined based on the Company's evaluation of the type and severity of individual claims and historical information, primarily its own claims experience, along with assumptions about future events. Changes in assumptions, as well as changes in actual experience, could cause these estimates to change in the future. Total accrued loss reserves were ~~$6.8~~$5.7 million and ~~$7.2~~$5.8 million ~~as of June 30, 2021~~at March 31, 2022 and December 31, ~~2020,~~2021 respectively, of which ~~$5.0~~$3.5 million and ~~$4.2~~$3.9 million were included in "Other long-term liabilities" in the Consolidated Balance Sheets at ~~June 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, respectively.

For the three months ended ~~June 30, 2021,~~March 31, 2022, the Company recorded an income tax ~~provision~~expense of ~~$2.3~~$0.9 million, reflecting a ~~20.4%~~18.0% effective tax rate, compared to a ~~$1.8~~$0.8 million income tax ~~provision~~expense for the three months ended ~~June 30, 2020,~~March 31, 2021, reflecting a ~~16.1%~~8.6% effective tax rate. The ~~change in the effective~~income tax ~~rate~~expense for ~~the~~ three months ended ~~June 30, 2021~~March 31, 2022 was higher compared to the same period ~~of the prior year is~~in 2021 primarily due to ~~changes in~~lower net discrete benefits from the ~~relative weighting~~vesting of ~~jurisdictional income and loss and the limitation on executive~~employee shared-based compensation ~~deduction partially~~awards offset by net discrete tax benefits related to the release of reserves for uncertain tax positions associated with Astec Mobile Machinery GmbH ("AMM") whose dissolution was completed during the second quarter of 2021.

~~For the six months ended June 30, 2021, the Company recorded~~ an ~~income tax provision of $3.2 million, reflecting a 15.3% effective tax rate, compared to a $3.3 million income tax~~increased net benefit for the six months ended June 30, 2020, reflecting a (12.5)% effective tax rate. The change in the effective tax rate for the six months ended June 30, 2021 compared to the same period of the prior year is primarily due a net discrete tax benefit of $9.5 million resulting from provisions of the Coronavirus Aid, Relief and Economic Security Act ("CARES Act") in the prior year provision and changes in the relative weighting of jurisdictional income and loss partially offset by the limitation on executive compensation deduction and a net discrete tax benefit related to the release of reserves for uncertain tax positions associated with AMM. Among other provisions, the CARES Act modified the net operating loss ("NOL") carryback provisions, which allowed the Company to carryback its 2018 NOL to prior tax years. This change not only favorably impacted the timing of the NOL benefit, but also increased the tax benefit amount as the federal tax rates in the prior years (35%) were higher than the current federal tax rate (21%).foreign-derived income.

The Company regularly assesses the likelihood of an adverse outcome resulting from examinations to determine the adequacy of its tax reserves. The Company is currently under audit by the U.S. Internal Revenue Service for the federal income tax return from the 2018 tax year as well as various other state income tax and jurisdictional audits. As of ~~June 30, 2021,~~March 31, 2022, the Company believes that it is more-likely-than-not that the tax positions it has taken will be sustained upon the resolution of its audits resulting in no material impact on its consolidated financial position, results of operations and cash flows. However, the final determination with respect to any tax audits, and any related litigation, could be materially different from the Company's estimates and/or from its historical income tax provisions and accruals and could have a material effect on operating results and/or cash flows in the periods for which that determination is made. In addition, future period earnings may be adversely impacted by litigation costs, settlements, penalties and/or interest assessments.

Certain customers have financed purchases of Company products through arrangements with third-party financing institutions in which the Company is contingently liable for customer debt of ~~$2.0~~$2.5 million and ~~$2.9~~$2.4 million at ~~June 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, respectively. These arrangements expire at various dates through ~~December 2023.~~June 2025. Additionally, the Company is also contingently liable for 1.75% of the unpaid balance, determined as of December 31 of the prior year (or approximately ~~$0.4~~$0.2 million for ~~2021)~~2022), on certain past customer equipment purchases that were financed by an outside finance company. The agreements provide that the Company will receive the lender's full security interest in the equipment financed if the Company is required to fulfill its contingent liability under these arrangements. The Company has recorded a liability of ~~$1.1~~$1.0 million and ~~$2.0~~$1.1 million related to these guarantees which were included in "Other current liabilities" in the Consolidated Balance Sheets as of ~~June 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, respectively.

In addition, the Company is contingently liable under letters of credit issued under its $150.0 million revolving credit facility (the "Credit Facility") totaling ~~$8.8~~$2.5 million as of ~~June 30, 2021, including $5.1 million of letters of credit guaranteeing certain credit facilities of the Company's Brazilian subsidiary.~~March 31, 2022. The outstanding letters of credit expire at various dates through June 2023. The maximum potential amount of future payments under letters of credit issued under the Credit Facility for which the Company could be liable is $30.0 million as of ~~June 30, 2021.~~March 31, 2022. As of ~~June 30, 2021,~~March 31, 2022, the Company's foreign subsidiaries are contingently liable for a total of ~~$4.2~~$2.5 million in letters of credit and bank guarantees securing performance and advance payments. The maximum potential amount of future payments under these letters of credit and bank guarantees for which the Company could be liable is ~~$9.0~~$7.9 million as of ~~June 30, 2021.~~March 31, 2022.

The Company and certain of its former executive officers were named as defendants in a putative shareholder class action lawsuit filed on February 1, 2019, as amended on August 26, 2019, in the United States District Court for the Eastern District of Tennessee. The action was styled City of Taylor General Employees Retirement System v. Astec Industries, Inc., et al., Case No. 1:19-cv-24-CEA-CHS. The complaint generally alleged that the defendants violated the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and Rule 10b-5 promulgated thereunder by making allegedly false and misleading statements and that the individual defendants were control persons under Section 20(a) of the Exchange Act. The complaint was filed on behalf of shareholders who purchased stock of the Company between July 26, 2016 and October 22, 2018 and sought monetary damages on behalf of the purported class. The Company disputed these allegations and filed a motion to dismiss the lawsuit on October 25, 2019. On February 19, 2021, the motion to dismiss was granted with prejudice and judgment was entered for the defendants. On March 19, 2021, plaintiff filed a Motion to Alter or Amend the Judgment and For Leave to File the Proposed Amended Complaint, which was denied on May 5, 2021. On June 4, 2021, plaintiff filed a notice of appeal to the United States Court of Appeals for the Sixth Circuit. On March 31, 2022, the United States Court of Appeals for the Sixth Circuit ~~which is pending.~~issued its opinion reversing the dismissal of the Company and one former executive officer, affirming the dismissal of certain other former executive officers and remanding the action to the United States District Court for the Eastern District of Tennessee for proceedings consistent with the opinion.

The Company's GEFCO subsidiary has been named a defendant in a lawsuit originally filed on August 16, 2018 with an amended complaint filed on January 25, 2019, in the United States District Court for the Western District of Oklahoma. The action is styled VenVer S.A. and Americas Coil Tubing LLP v. GEFCO, Inc., Case No. CIV-18-790-SLP. The complaint alleges breaches of warranty and other similar claims regarding equipment sold by GEFCO in 2013. In addition to seeking a rescission of the purchase contract, the plaintiff is seeking special and consequential damages. The original purchase price of the equipment was approximately $8.5 million. GEFCO disputes the plaintiff's allegations and intends to defend this lawsuit vigorously. On July 7, 2020, the plaintiffs filed a separate lawsuit directly against Astec

The Company is ~~currently a party~~subject to various claims and legal proceedings ~~that have arisen~~ in the ordinary course of its business. If management believes that a loss arising from such claims and legal proceedings is probable and can reasonably be estimated, the Company records the amount of the loss (excluding estimated legal fees) or the minimum estimated liability when the loss is estimated using a range and no point within the range is more probable than another. As management becomes aware of additional information concerning such contingencies, any potential liability related to these matters is assessed and the estimates are revised, if necessary. If management believes that a loss arising from such claims and legal proceedings is either: (i) probable but cannot be reasonably estimated or (ii) reasonably estimable but not probable, the Company does not record the amount of the loss, but does make specific disclosure of such matter.

Based upon currently available information and with the advice of counsel, management believes that the ultimate outcome of its current claims and legal proceedings, individually and in the aggregate, will not have a material adverse effect on the Company's financial position, cash flows or results of operations. However, claims and legal proceedings are subject to inherent uncertainties and rulings unfavorable to the Company could occur. If an unfavorable ruling were to occur, there exists the possibility of a material adverse effect on the Company's financial position, cash flows or results of operations.

Prior to its expiration on February 25, 2021, the Company's 2011 Incentive Plan ("2011 Plan") provided for the grant of share-based awards to its employees, officers, directors and consultants. The 2011 Plan authorized the grant of options, share appreciation rights, restricted stock, restricted stock units, deferred stock units, performance awards, dividend equivalents and other share-based and cash awards. Under the 2011 Plan, the Company has outstanding restricted stock units, performance stock units and deferred stock units none of which participate in Company-paid dividends.

On April 27, 2021 ("Plan Effective Date"), the Company's shareholders approved the 2021 Equity Incentive Plan ("2021 Plan"), which provides for a total of 1,280,000 shares to be reserved and available for issuance pursuant to the grant of new awards under the 2021 Plan, less one share for every one share subject to an award granted under the 2011 Plan after December 31, 2020 and prior to the Plan Effective Date. No new awards were granted between December 31, 2020 and the Plan Effective Date. To the extent that all or a portion of an award (or, after December 31, 2020, an award granted under the 2011 Plan) is canceled, terminates, expires, is forfeited or lapses for any reason (including by reason of failure to meet time-based and/or performance-based vesting requirements), any unissued or forfeited shares originally subject to the award (or, after December 31, 2020, an award granted under the 2011 Plan) will be added back to the 2021 Plan share reserve and again be available for issuance pursuant to awards granted under the 2021 Plan. The 2021 Plan authorizes the grant of options, share appreciation rights, restricted stock, restricted stock units, deferred stock units, performance awards, dividend equivalents and other share-based and cash awards. In addition, the 2021 Plan allows for participants to elect to receive vested units on a deferred basis. Awards granted under the 2021 Plan are entitled to dividend equivalents, which are subject to the same forfeiture and transfer restrictions and deferral terms as apply to the award to which they relate. The Company's annual grants of restricted stock units and performance stock units typically awarded in the first quarter of the year were delayed until April 2021 following the shareholder approval of the 2021 Plan.


		Three Months Ended June 30, 2021				Three Months Ended June 30, 2020						Three Months Ended March 31, 2022						Three Months Ended March 31, 2021
(in millions)	(in millions)	Infrastructure Solutions		Materials Solutions		Total		Infrastructure Solutions		Materials Solutions			Total		(in millions)	Infrastructure Solutions		Materials Solutions		Total		Infrastructure Solutions		Materials Solutions		Total
Net Sales-Domestic:	Net Sales-Domestic:														Net Sales-Domestic:
Equipment sales	Equipment sales	$	82.4	$	43.6	$	126.0	$	104.8	$	43.3		$	148.1	Equipment sales	$	95.2	$	45.6	$	140.8	$	99.2	$	41.8	$	141.0

Parts and component sales	Parts and component sales	40.6		21.3		61.9		35.9		17.7			53.6		Parts and component sales	56.4		20.8		77.2		51.9		17.7		69.6
Service and equipment installation revenue	Service and equipment installation revenue	3.9		0.1		4.0		6.1		0.4			6.5		Service and equipment installation revenue	6.7		0.2		6.9		5.8		0.1		5.9
Used equipment sales	Used equipment sales	2.8		0.7		3.5		7.1		0.4			7.5		Used equipment sales	1.7		—		1.7		2.9		—		2.9
Freight revenue	Freight revenue	4.6		1.8		6.4		4.6		1.4			6.0		Freight revenue	6.6		1.6		8.2		5.6		1.5		7.1
Other	Other	0		(0.4)		(0.4)		0.1		(0.1)			0		Other	0.1		(0.4)		(0.3)		(0.4)		(0.5)		(0.9)
Total domestic revenue	Total domestic revenue	134.3		67.1		201.4		158.6		63.1			221.7		Total domestic revenue	166.7		67.8		234.5		165.0		60.6		225.6

Net Sales-International:	Net Sales-International:														Net Sales-International:
Equipment sales	Equipment sales	35.6		21.0		56.6		15.6		12.5			28.1		Equipment sales	16.6		14.7		31.3		21.3		12.8		34.1

Parts and component sales	Parts and component sales	8.7		8.2		16.9		5.9		6.8			12.7		Parts and component sales	12.3		9.7		22.0		13.1		7.7		20.8
Service and equipment installation revenue	Service and equipment installation revenue	0.8		0.3		1.1		0.6		0.5			1.1		Service and equipment installation revenue	1.2		0.7		1.9		1.0		0.5		1.5
Used equipment sales	Used equipment sales	0		0.4		0.4		0.8		0.2			1.0		Used equipment sales	0.2		0.5		0.7		0.1		0.8		0.9
Freight revenue	Freight revenue	0.7		0.8		1.5		0.3		0.3			0.6		Freight revenue	0.5		0.3		0.8		0.8		0.3		1.1
Other	Other	0.1		0		0.1		0.1		0			0.1		Other	—		—		—		0.2		0.2		0.4
Total international revenue	Total international revenue	45.9		30.7		76.6		23.3		20.3			43.6		Total international revenue	30.8		25.9		56.7		36.5		22.3		58.8
Total net sales	Total net sales	$	180.2	$	97.8	$	278.0	$	181.9	$	83.4		$	265.3	Total net sales	$	197.5	$	93.7	$	291.2	$	201.5	$	82.9	$	284.4

		Six Months Ended June 30, 2021				Six Months Ended June 30, 2020
(in millions)		Infrastructure Solutions		Materials Solutions		Total		Infrastructure Solutions		Materials Solutions			Total
Net Sales-Domestic:
Equipment sales		$	181.6	$	85.4	$	267.0	$	205.2	$	84.6		$	289.8

Parts and component sales		92.5		39.0		131.5		88.5		36.2			124.7
Service and equipment installation revenue		9.7		0.2		9.9		12.9		0.8			13.7
Used equipment sales		5.7		0.7		6.4		14.3		0.4			14.7
Freight revenue		10.2		3.3		13.5		10.6		2.7			13.3
Other		(0.4)		(0.9)		(1.3)		(0.1)		(0.6)			(0.7)
Total domestic revenue		299.3		127.7		427.0		331.4		124.1			455.5

Net Sales-International:
Equipment sales		56.9		33.8		90.7		35.0		26.9			61.9

Parts and component sales		21.8		15.9		37.7		14.2		16.1			30.3
Service and equipment installation revenue		1.8		0.8		2.6		1.5		0.7			2.2
Used equipment sales		0.1		1.2		1.3		1.4		1.0			2.4
Freight revenue		1.5		1.1		2.6		0.9		0.6			1.5
Other		0.3		0.2		0.5		0.1		0.2			0.3
Total international revenue		82.4		53.0		135.4		53.1		45.5			98.6
Total net sales		$	381.7	$	180.7	$	562.4	$	384.5	$	169.6		$	554.1


		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended March 31,
(in millions)	(in millions)	2021		2020		2021		2020		(in millions)	2022		2021
United States	United States	$	201.4	$	221.7	$	427.0	$	455.5	United States	$	234.5	$	225.6
Canada	Canada	20.6		12.9		37.9		27.6		Canada	14.2		17.3
Europe		13.9		4.8		24.4		14.2
Australia	Australia	12.4		5.5		21.2		11.3		Australia	10.2		8.8
Africa	Africa	7.8		4.2		16.1		10.8		Africa	9.1		8.3
Europe										Europe	5.4		10.5
South America										South America	5.2		4.5
Asia										Asia	4.0		1.3
Brazil										Brazil	3.8		4.2
Central America										Central America	2.6		1.2
Mexico	Mexico	8.0		0.5		10.4		1.4		Mexico	0.7		2.4
Brazil		4.9		6.2		9.1		10.9
South America		4.5		5.0		9.0		9.1
Other	Other	4.5		4.5		7.3		13.3		Other	1.5		0.3
Total foreign	Total foreign	76.6		43.6		135.4		98.6		Total foreign	56.7		58.8
Total net sales	Total net sales	$	278.0	$	265.3	$	562.4	$	554.1	Total net sales	$	291.2	$	284.4

As of ~~June 30, 2021,~~March 31, 2022, the Company had contract assets of ~~$10.8~~$3.9 million and contract liabilities, excluding customer deposits, of ~~$12.7~~$3.8 million, including ~~$2.6~~$2.5 million of deferred revenue related to extended warranties. As of December 31, ~~2020,~~2021, the Company had contract assets of ~~$4.3~~$3.2 million and contract liabilities, excluding customer deposits, of ~~$8.9~~$5.6 million, including ~~$2.9~~$2.7 million of deferred revenue related to extended warranties.

The Company has 2 reportable segments, each of which comprise sites based upon the nature of the products or services produced, the type of customer for the products, the similarity of economic characteristics, the manner in which management reviews results and the nature of the production process, among other considerations. Based on a review of these factors, the Company's India and Thailand sites have changed reportable segments beginning January 1, 2022. The India site was previously incorporated into the Materials Solutions segment and has moved to the Infrastructure Solutions segment while the Thailand site, which was previously included in the Infrastructure Solutions segment has moved to the Materials Solutions segment.

Beginning January 1, 2022, the measure of segment profit or loss used by the Company's Chief Executive Officer, whom is determined to be the chief operating decision maker ("CODM"), to evaluate performance and allocate resources to the operating segments changed to Segment Operating Adjusted EBITDA. Segment Operating Adjusted EBITDA, a non-GAAP financial measure, is defined as net income or loss before the impact of interest income or expense, income taxes, depreciation and amortization and certain other adjustments that are not considered by the CODM in the evaluation of ongoing operating performance. The Company's presentation of Segment Operating Adjusted EBITDA may not be comparable to similar measures used by other companies and are not necessarily indicative of the results of operations that would have occurred had each reportable segment been an independent, stand-alone entity during the periods presented.

Infrastructure Solutions – The Infrastructure Solutions segment comprises 1211 active sites and designs, engineers, manufactures and markets a complete line of asphalt plants, concrete plants and their related components and ancillary equipment as well as supplying other heavy equipment. The ~~U.S.~~sites based ~~sites~~in North America within the Infrastructure Solutions segment are primarily manufacturing operations while those located ~~internationally market,~~outside of North America, service and install equipment and provide parts in the regions in which they operate for many of the products produced by all of the Company's manufacturing sites. The primary purchasers of the products produced by this segment are asphalt producers, highway and heavy equipment contractors, ready mix concrete producers, contractors in the construction and demolition recycling markets and domestic and foreign governmental agencies.

Materials Solutions – The Materials Solutions segment comprises 9 active sites and 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~~Thailand 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 the Company's manufacturing sites. Additionally, the Materials Solutions segment offers consulting and engineering services to provide complete "turnkey" processing systems. 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 foreign and domestic governmental agencies.

Corporate – The Corporate category consists primarily of the parent company and the Company's 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. The parent company and the captive insurance company provide support and corporate oversight for all of the sites. The Company evaluates performance and allocates resources to its operating segments based on profit or loss from operations before U.S. federal income taxes, state deferred taxes and corporate overhead and thus these costs are included in the Corporate category.


		Three Months Ended June 30, 2021								Three Months Ended June 30, 2020									Three Months Ended March 31, 2022								Three Months Ended March 31, 2021
(in millions)	(in millions)	Infrastructure Solutions		Materials Solutions		Corporate		Total		Infrastructure Solutions		Materials Solutions		Corporate		Total		(in millions)	Infrastructure Solutions		Materials Solutions		Corporate		Total		Infrastructure Solutions		Materials Solutions		Corporate		Total
Revenues from external customers	Revenues from external customers	$	180.2	$	97.8	$	0	$	278.0	$	181.9	$	83.4	$	0	$	265.3	Revenues from external customers	$	197.5	$	93.7	$	—	$	291.2	$	201.5	$	82.9	$	—	$	284.4
Intersegment sales	Intersegment sales	15.3		10.7		0		26.0		12.4		6.8		0		19.2		Intersegment sales	1.1		9.7		—		10.8		0.7		5.7		—		6.4
Segment profit (loss)		11.8		12.8		(15.9)		8.7		14.2		8.5		(13.6)		9.1
Segment Operating Adjusted EBITDA																		Segment Operating Adjusted EBITDA	16.4		12.2		(9.8)		18.8		26.2		9.7		(15.0)		20.9

		Six Months Ended June 30, 2021								Six Months Ended June 30, 2020
(in millions)		Infrastructure Solutions		Materials Solutions		Corporate		Total		Infrastructure Solutions		Materials Solutions		Corporate		Total
Revenues from external customers		$	381.7	$	180.7	$	0	$	562.4	$	384.5	$	169.6	$	0	$	554.1
Intersegment sales		25.4		22.8		0		48.2		18.3		15.1		0		33.4
Segment profit (loss)		32.8		19.3		(34.7)		17.4		31.4		14.5		(16.5)		29.4

Three Months Ended June 30, Six Months Ended June 30,
(in millions) 2021 2020 2021 2020
Net income attributable to controlling interest
Total profit for reportable segments $ 24.6 $ 22.7 $ 52.1 $ 45.9
Corporate expenses, net (15.9) (13.6) (34.7) (16.5)
Net loss (income) attributable to noncontrolling interest 0 (0.1) 0 0.1
Recapture of intersegment profit 0.3 0.3 0.3 0.4
Total consolidated net income attributable to controlling interest $ 9.0 $ 9.3 $ 17.7 $ 29.9


	Three Months Ended March 31,
(in millions)	2022		2021
Reconciliation to total consolidated net income attributable to controlling interest
Segment Operating Adjusted EBITDA	$	18.8	$	20.9
Adjustments:
Transformation program	(5.3)		(3.2)

Facility closures and reduction in force	(1.0)		(0.8)

Gain on sale of property, equipment and business, net	—		0.1
Transaction costs	(0.6)		—
Interest expense, net	(0.2)		(0.1)
Depreciation and amortization	(6.7)		(7.6)
Income tax provision	(0.9)		(0.8)


Total consolidated net income attributable to controlling interest	$	4.1	$	8.5

~~In 2018,~~The Company's Simplify, Focus and Grow Strategic Transformation ("SFG") initiative, which began in 2019, generally includes facility rationalization, asset impairment, workforce reduction, the ~~Company made~~associated costs of organizational integration activities and strategic transformational initiatives. As part the SFG initiative several strategic decisions have been made to divest of underperforming manufacturing sites or product lines, including to close certain of its subsidiaries, close and sell its manufacturing sites and relocate the product lines manufactured at each of these sites to other Company locations; exit the oil, gas and water well product lines; and sell certain ~~assets. These actions,~~assets, which ~~have subsequently been incorporated into~~are included in "Restructuring, impairment and other asset charges, net" on the Company's ~~Simplify, Focus~~Consolidated Statements of Operations.

In addition, the Company periodically sells or disposes of its assets in the normal course of its business operations as they are no longer needed or used and may incur gains or losses on these disposals. Certain of the costs associated with these decisions are separately identified as restructuring. The Company reports asset impairment charges and gains or losses on the sales of property and equipment collectively, with restructuring charges in "Restructuring, impairment and other asset charges, net" in the Consolidated Statements of ~~Operations.~~Operations to the extent they are experienced.


		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended March 31,
(in millions)	(in millions)	2021		2020		2021		2020		(in millions)	2022		2021
Restructuring charges:	Restructuring charges:									Restructuring charges:
Costs associated with closing Tacoma										Costs associated with closing Tacoma	$	0.8	$	0.4
Costs associated with closing Enid										Costs associated with closing Enid	0.2		—
Costs associated with closing Mequon										Costs associated with closing Mequon	—		0.4

Costs associated with closing AMM		$	0	$	0.3	$	0	$	0.3
Costs associated with closing Albuquerque		0		0.7		0		1.0
Costs associated with closing Mequon		0.2		1.4		0.6		1.4
Costs associated with closing Enid		0		0		0		0.3
Costs associated with closing Tacoma		0.6		0		1.0		0
Workforce reductions at multiple sites		0		0.8		0		1.3

Total restructuring related charges	Total restructuring related charges	0.8		3.2		1.6		4.3		Total restructuring related charges	1.0		0.8

Asset impairment charges:
Goodwill impairment charges		0		0		0		1.6
Airplane impairment charges		0		2.6		0		2.6
Other impairment charges		0.2		0.2		0.2		0.2
Total asset impairment charges		0.2		2.8		0.2		4.4

Gain on sale of property and equipment, net:	Gain on sale of property and equipment, net:									Gain on sale of property and equipment, net:
Gain on sale of property and equipment, net	Gain on sale of property and equipment, net	(0.2)		0		(0.3)		(0.6)		Gain on sale of property and equipment, net	—		(0.1)
Total gain on sale of property and equipment, net	Total gain on sale of property and equipment, net	(0.2)		0		(0.3)		(0.6)		Total gain on sale of property and equipment, net	—		(0.1)

Restructuring, impairment and other asset charges, net	Restructuring, impairment and other asset charges, net	$	0.8	$	6.0	$	1.5	$	8.1	Restructuring, impairment and other asset charges, net	$	1.0	$	0.7


		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended March 31,
(in millions)	(in millions)	2021		2020		2021		2020		(in millions)	2022		2021
Infrastructure Solutions	Infrastructure Solutions	$	0	$	0	$	0	$	1.6	Infrastructure Solutions	$	1.0	$	0.4
Materials Solutions	Materials Solutions	0.2		0.1		0.2		0.1		Materials Solutions	—		0.4
Corporate		0		2.7		0		2.7
Total impairment charges		$	0.2	$	2.8	$	0.2	$	4.4

Total restructuring related charges										Total restructuring related charges	$	1.0	$	0.8


		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended March 31,
(in millions)	(in millions)	2021		2020		2021		2020		(in millions)	2022		2021
Infrastructure Solutions	Infrastructure Solutions	$	(0.1)	$	0	$	(0.2)	$	(0.6)	Infrastructure Solutions	$	—	$	(0.1)
Materials Solutions		(0.1)		0		(0.1)		0

Total gain on sale of property and equipment, net	Total gain on sale of property and equipment, net	$	(0.2)	$	0	$	(0.3)	$	(0.6)	Total gain on sale of property and equipment, net	$	—	$	(0.1)

~~On October 21, 2019,~~In January 2021, the Company announced ~~the closing of its Albuquerque, New Mexico location. The decision~~plans to close the ~~site was based~~Tacoma facility in ~~part on market conditions~~order to simplify and consolidate operations. The Tacoma facility ceased manufacturing ~~facilities underutilization.~~operations at the end of 2021. The transfer of the manufacturing and marketing ~~and manufacturing~~ of ~~products previously produced by the site were transferred~~Tacoma product lines to other facilities within the Infrastructure Solutions segment was completed during the first quarter of 2022. In conjunction with this action, the Company ~~facilities. The site was closed as~~recorded $0.8 million and $0.4 million of restructuring related charges during the three month periods ended March 31, ~~2020.~~2022 and 2021, respectively, in "Restructuring, impairment and other asset charges, net" in the Consolidated Statements of Operations. The Company recorded the Tacoma facility's land, building and certain equipment

In late 2019, the oil and gas drilling product lines produced at the Enid, Oklahoma location were impaired and discontinued. ~~The Company~~Additional restructuring costs of $0.2 million were incurred ~~$0.3 million in severance related costs~~ during the three months ended March 31, ~~2020 associated with exiting the oil and gas line of business at Enid.~~2022. Enid's land and building assets totaling $5.1 million are included in "Assets held for sale" in the Consolidated Balance Sheets at ~~June 30, 2021~~March 31, 2022 and December 31, ~~2020.~~2021.

~~The~~In October 2020, the Company ~~incurred $0.8 million and $1.3 million~~closed a transaction for the sale of ~~severance pay associated with workforce reductions at other~~water well assets of the Company's ~~locations~~Enid, Oklahoma location, which included equipment, inventories and intangible assets. The purchase price for this transaction was approximately $6.9 million, net of purchase price adjustments completed in January 2021 whereby the Company had an obligation to pay the buyer $1.1 million. This obligation was settled in the ~~three and six month periods ended June 30, 2020, respectively.~~

In June 2020, the Company announced the closing of the Mequon site in order to simplify and consolidate operations. The Mequon facility ceased production operations in August 2020. Charges primarily related to inventory relocation and integration activities of ~~$0.2 million and $1.4~~$0.4 million were incurred during the three ~~month periods~~months ended ~~June 30, 2021 and 2020, respectively. Charges totaling $0.6 million and $1.4 million were recognized in the six month periods ended June 30, 2021 and 2020, respectively.~~

In October 2020, the Company closed a transaction for the sale of water well assets of the Company's Enid location, which included equipment, inventories and intangible assets. The purchase price for this transaction was approximately $6.9 million, net of purchase price adjustments completed in January 2021 whereby the Company had an obligation to pay the buyer $1.1 million. This obligation is included in "Other current liabilities" in the Consolidated Balance Sheets at DecemberMarch 31, ~~2020 and was settled in the first quarter of~~ 2021.

In January 2021, the Company announced plans to close the Tacoma facility in order to simplify and consolidate operations. The Tacoma facility is currently expected to cease operations at the end of 2021. Manufacturing and marketing of Tacoma product lines are expected to be fully transferred to other facilities within the Infrastructure Solutions segment by early 2022. In conjunction with this action, the Company recorded $1.0 million of restructuring related charges primarily associated with severance and retention costs during 2021, $0.6 million of which was recorded in the three months ended June 30, 2021.

Basic earnings per common share is determined by dividing "Net income attributable to controlling interest" by the weighted average number of common shares outstanding during the reporting period. Diluted earnings per common share includes the dilutive effect of common stock equivalents consisting of restricted stock units, performance stock units and stock held in the Company's supplemental executive retirement plan, using the treasury stock method. Performance stock units, which are considered contingently issuable, are considered dilutive when the related performance criterion has been met.


		Three Months Ended June 30,		Six Months Ended June 30,			Three Months Ended March 31,
		2021	2020	2021	2020		2022	2021
Denominator:	Denominator:					Denominator:
Denominator for basic earnings per common share	Denominator for basic earnings per common share	22,742,162	22,583,976	22,688,339	22,567,402	Denominator for basic earnings per common share	22,782,476	22,633,457
Effect of dilutive securities	Effect of dilutive securities	175,795	127,047	216,931	147,300	Effect of dilutive securities	121,691	241,353
Denominator for diluted earnings per common share	Denominator for diluted earnings per common share	22,917,957	22,711,023	22,905,270	22,714,702	Denominator for diluted earnings per common share	22,904,167	22,874,810

In April 2022, the Company acquired Canada-headquartered MINDS Automation Group, Inc., a leader in plant automation control systems and cloud-based data management in the asphalt industry. The total cash consideration payable to the selling shareholders was $18.2 million, subject to a customary purchase price adjustment for cash, indebtedness and net working capital and was funded from cash on hand. The acquisition is not expected to be material to the Company's Consolidated Statements of Operations.

This Quarterly Report on Form 10-Q, particularly the following discussion and analysis of our results of operations, financial condition and liquidity in this "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 Quarterly Report on Form 10-Q 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," and "forecast," and 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 described under the caption "Item 1A. Risk Factors" in Part II of this Report, elsewhere herein and in other documents filed by the Company with the Securities and Exchange Commission, including Part I, Item 1A. Risk ~~Factor~~Factors of the Company's Annual Report on Form 10-K for the year ended December 31, ~~2020,~~2021, 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.

The financial condition, results of operations and cash flows discussed in this Management's Discussion and Analysis of Financial Condition and Results of Operations are those of Astec Industries, Inc. and its consolidated subsidiaries, collectively, the "Company," "Astec," "we," "our" or "us." The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited consolidated financial statements and related notes included in Item 1 of Part I of this Quarterly Report on Form 10-Q and with our audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, ~~2020.~~2021. The financial position, results of operations, cash flows and other information included herein are not necessarily indicative of the financial position, results of operations and cash flows that may be expected in future periods.

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.

During the first quarter of 2022, we identified errors in our previously issued financial statements and based on a quantitative and qualitative assessment determined the correction of these errors to be immaterial to the prior period consolidated financial statements taken as a whole. To reflect the correction of the above errors, we have revised the previously issued consolidated financial statements and prior period information included in Management's Discussion and Analysis of Financial Condition and Results of Operations in this Quarterly Report on Form 10-Q.

~~COVID-19 Pandemic –~~ Our top priority continues to be protecting our employees and their families, our customers and suppliers and our operations from any adverse impacts by taking precautionary measures as directed by health authorities and local governments. We continually monitor the markets in which we operate for the effects of COVID-19 and the related actions of governments and other authorities to contain COVID-19 and while our manufacturing and business operations have remained fully operational during the first half of 2021, there continues to be an effect on our results of operations, financial position and cash flows driven by contributory effects of the pandemic such as material price increases and labor shortages.

Simplify, Focus and Grow Strategic Transformation ("SFG") – ~~Beginning in late 2019, we initiated a~~Our ongoing strategic transformation initiative focused on implementing new business strategies and a new operating ~~structure. This transformation~~structure is concentrated on aligning our operations under the OneASTEC business model with the strategic pillars of Simplify, Focus and Grow. SFG is ~~an ongoing,~~a multi-year program with the primary goals of optimizing our manufacturing footprint and centralizing our business into common platforms and operating models to reduce complexity and cost, improve productivity and embed continuous improvement in our processes. These efforts are considered critical to enabling us to operate competitively and supporting future growth, which are expected to broadly benefit our customers, partners, employees and shareholders.

Our multi-year phased implementation of a standardized ERP system across our global organization ~~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 is a major financial undertaking and has required, and will continue to require, substantial time and attention of management and key employees. We expect to complete the ERP global design in 2022 and convert the operations of one site in 2023 to set the foundation before accelerating the implementation at additional sites.

COVID-19 Pandemic – The COVID-19 pandemic has caused significant disruptions to national and global economies and to our business. Our business has been significantly affected by the contributory effects of the pandemic such as fluctuations in demand for our products, material price increases, increased shipping costs and lead times from production materials, supplies and parts, labor shortages and increased labor costs. These trends continue to impact our business today and may continue to impact our business in the near-term. Furthermore, while our business operations were fully operational during the first quarter of 2022, they were not at optimal manufacturing efficiency due to a spike in the COVID-19 omicron variant impacting our labor force.

Tacoma Site Closure - In January 2021, we announced plans to close the Tacoma facility in order to simplify and consolidate operations. The Tacoma facility ceased manufacturing operations at the end of 2021. The transfer of the manufacturing and marketing of Tacoma product lines to other facilities within the Infrastructure Solutions segment was completed during the first quarter of 2022. We recorded the Tacoma facility's land, building and certain equipment assets of $15.4 million, which are currently being marketed for sale, as held for sale at March 31, 2022 in our Consolidated Balance Sheets.

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.

We ~~ended 2020 with a strong~~experienced continual strengthening of our backlog of orders throughout 2021, which ~~grew~~has grown again during the first ~~half~~quarter of ~~2021 across our global organization as well as~~2022 in both the Infrastructure Solutions and Materials Solutions segments. The backlog of orders as of ~~June 30, 2021~~March 31, 2022 was ~~$436.1~~$834.7 million compared to ~~$181.9~~$420.8 million as of ~~June 30, 2020,~~March 31, 2021, an increase of ~~$254.2~~$413.9 million or ~~139.7%~~98.4%. Increased orders ~~were~~are driven by (i) continuation of the pent-up demand ~~after~~experienced in 2021, (ii) both customer retail and dealer inventory replenishment following economic uncertainty as a result of COVID-19 ~~uncertainty~~and (iii) the infrastructure investment by the United States' government under the Infrastructure Investment and Jobs Act ("IIJA") enacted in ~~2020 and slower production cycles due to manufacturing labor shortages.~~November 2021. In addition, we are ~~experiencing~~continuing to experience constrained production cycles due to increased lead times for certain production materials, parts and supplies and manufacturing labor shortages which have and may continue to impact our ability to satisfy the orders in our backlog in a manner that meets the timelines of our customers.

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~~As noted above, the ~~Fixing America's Surface Transportation Act ("FAST Act"), which was set~~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 ~~program~~programs (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. While the Biden administration has recently proposed an infrastructure plan with meaningful funding for transportation-related 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.

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 ~~recycled~~reclaimed 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. While ~~the first half of 2021 brought increased~~ oil prices have increased throughout the prior year, 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. ~~During~~Based on the ~~first half~~current macroeconomic environment, including the ongoing impact of ~~2021, oil prices have increased and~~the conflict in Ukraine, 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 ~~through the remainder of 2021.~~in 2022.

Steel is a major component of our equipment. With a drop in supply, similar to oil, steel prices ~~began increasing in the latter part of 2020, continuing~~increased throughout the ~~first half of 2021 and into Q3.~~prior year. As a result, we have experienced a rising cost of ~~steel throughout 2021.~~steel. We anticipate ~~the~~that steel demand will remain strong ~~through~~throughout 2022, bolstered by the ~~remainder~~IIJA domestically and impacted by international production capacity being restricted by the conflict in Ukraine. However, we expect new steelmaking capacity to enter the market during 2022 that will move us towards a more historical balance of ~~2021 driving continued~~supply and demand, thus slowing the pace of price ~~inflation.~~inflation we have recently experienced. In response to these factors, we continue to ~~utilize~~employ flexible strategies ~~that include forward-looking contracts and advanced steel purchases~~ to ensure supply and minimize the impact of price volatility. ~~Constraints on~~Ongoing constraints in the supply of certain steel ~~may also put pressure on~~products will continue pressuring the availability of other components ~~such as engines.~~used in our manufacturing process.Furthermore, given the recent volatility of steel prices and the nature of our customers' orders, we may not be able to pass through all of the increases in steel costs to our customers, which negatively impacts our gross profit.

We actively manage our global supply chain for any identified constraints and volatility. Challenges related to our supply chain, including potential labor shortages at our vendors and logistics partners and the availability of shipping containers, cargo ships and unloading space, have ~~led~~continued to drive increased lead times and expenses for certain components used in our manufacturing processes. We cannot estimate the full impact that any future disruptions might have on our operations. We ~~will continue to~~continually monitor potential future supply costs and availability.

In addition, ~~in certain manufacturing locations,~~ we have experienced a shortage of necessary production personnel and increasing labor costs to attract staff in our manufacturing operations. Furthermore, we experienced a spike in the COVID-19 omicron variant impacting our labor force in December 2021 and in the beginning of the first quarter. This has resulted in a variety of challenges in running our operations efficiently ~~as well as meeting manufacturing~~to meet strong customer demand. We ~~are focused on adjusting~~continue to adjust our production schedules and manufacturing workload distribution, ~~outsourcing~~outsource components, ~~reinitiating~~implement efficiency improvements and ~~are~~ actively ~~modifying~~modify our recruitment process and compensation and benefits to attract and retain production personnel in our manufacturing facilities.

Whenever possible, we attempt to cover increased costs of production by adjusting the prices of our products. ~~Since backlog~~Backlog fulfillment times from the initial order to completing the contracted sale vary and can ~~be as long as~~extend past twelve months ~~from~~with the ~~contracted sale,~~growth we have experienced in the backlog. For this reason, we have limitations on our ability to pass on cost increases to our customers on a short-term basis. In addition, the markets we serve are competitive in nature, and competition limits our ability to pass through cost increases in many cases. WeThrough our operational excellence initiatives, we also strive to minimize the effect of inflation through cost reductions and improved manufacturing efficiencies.

Net sales ~~for~~increased $6.8 million or 2.4% to $291.2 million in the ~~second~~first quarter of ~~2021 were $278.0~~2022 from $284.4 million ~~compared to $265.3 million for~~in the ~~second~~first quarter of ~~2020, an increase of $12.7 million or 4.8%.~~2021. The increase ~~in net sales~~ was primarily driven by ~~$14.6 million~~changes in the volume, pricing and mix of ~~net incremental~~ sales ~~from acquired businesses and $11.7 million of higher~~that generated increases in (i) parts

and component sales. These increases were partially offset by: (i) reduced sales from the exit of our Enid oil and gas drilling product lines of $5.3 million, (ii) lower used equipment sales of $4.3 million, (iii) $2.6 million of lower service sales and (iv) lower equipment sales of $2.1 million. Sales reported by our foreign subsidiaries in U.S. dollars for the second quarter of 2021 would have been $6.5 million lower had second quarter 2021 foreign exchange rates been the same as second quarter 2020 rates.

Net sales for the first six months of 2021 were $562.4 million compared to $554.1 million for the first six months of 2020, an increase of $8.3 million or 1.5%. The increase in net sales was primarily driven by $29.9 million of net incremental sales from acquired businesses and $11.9 million of higher parts and component sales. These increases were partially offset by: (i) reduced sales from the exit of our Enid oil and gas drilling product lines of $14.8 million, (ii) lower equipment sales of $8.6 million, (ii) service and equipment installation revenue of $1.4 million and (iii) freight revenue of $0.9 million partially offset by decreased equipment sales of $2.3 million and $1.6 million in lower used equipment ~~sales of $6.7 million and (iv) $3.3 million of lower service~~ sales. Sales reported by our foreign subsidiaries in U.S. dollars for the first ~~six months~~quarter of ~~2021~~2022 would have been ~~$8.7~~$1.7 million ~~lower~~higher had ~~first six months of 2021~~ foreign exchange rates been the same as ~~first six months of 2020~~2021 rates.

Domestic sales for the ~~second~~first quarter of ~~2021~~2022 were ~~$201.4~~$234.5 million or ~~72.4%~~80.5% of ~~consolidated~~ net sales compared to ~~$221.7~~$225.6 million or ~~83.6%~~79.3% of ~~consolidated~~ net sales for the second quarter of 2020, a decrease of $20.3 million or 9.2%. Domestic sales decreased primarily due to: (i) lower equipment sales of $27.5 million largely due to lower production throughput from labor shortages and supply chain constraints, (ii) reduced sales from the exit of our Enid oil and gas drilling product lines of $5.1 million, (iii) lower used equipment sales of $3.7 million and (iv) reduced service sales of $2.6 million. These decreases were partially offset by net incremental sales of $11.3 million from acquired businesses and $7.6 million of higher parts and components sales.

~~Domestic sales for the first six months of~~ 2021, were $427.0 million or 75.9% of consolidated net sales compared to $455.5 million or 82.2% of consolidated net sales for the first six months of 2020, a decrease of $28.5 million or 6.3%. Domestic sales decreased primarily due to: (i) lower equipment sales of $31.7 million largely due to lower production throughput from labor shortages and supply chain constraints, (ii) reduced sales from the exit of our Enid oil and gas drilling product lines of $14.2 million, (iii) lower used equipment sales of $5.6 million and (iv) reduced service sales of $3.7 million. These decreases were partially offset by net incremental sales of $23.1 million from acquired businesses and $4.8 million of higher parts and components sales.

~~International sales for the second quarter of 2021 were $76.6 million or 27.6% of consolidated net sales compared to $43.6 million or 16.4% of consolidated net sales for the second quarter of 2020,~~ an increase of ~~$33.0~~$8.9 million or ~~75.7%~~3.9%. ~~International~~Domestic sales increased primarily due to: (i) $7.6 million higher parts and component sales, (ii) $1.1 million higher service and equipment installation revenue and (iii) $1.1 million higher freight revenue. These increases were partially offset by lower used equipment sales of $25.5 million mainly from COVID-19 related temporary site closures in the prior year, (ii) $4.1 million of higher parts and components sales and (iii) net incremental sales of $3.3 million from acquired businesses.$1.3 million.

International sales for the first ~~six months~~quarter of ~~2021~~2022 were ~~$135.4~~$56.7 million or ~~24.1%~~19.5% of ~~consolidated~~ net sales compared to ~~$98.6~~$58.8 million or ~~17.8%~~20.7% of ~~consolidated~~ net sales for ~~the first six months~~2021, a decrease of ~~2020, an increase of $36.8~~$2.1 million or ~~37.3%~~3.6%. International sales ~~increased~~decreased primarily due ~~to: (i) higher~~to $3.0 million lower equipment sales ~~of $23.1~~partially offset by $1.1 million ~~mainly from COVID-19 related temporary site closures in the prior year, (ii) $7.1 million of higher~~increased parts and ~~components sales and (iii) net incremental sales of $6.8 million from acquired businesses.~~component sales.

Consolidated gross profit ~~increased $7.4~~for the first quarter of 2022 was $66.1 million or ~~12.4%~~22.7% of net sales as compared to ~~$67.0~~$68.2 million or 24.0% of net sales for the ~~second~~first quarter of 2021, ~~compared to $59.6~~a decrease of $2.1 million ~~for~~or 3.1%. The decrease was primarily driven by the ~~second quarter~~impact of ~~2020. Gross profit as a percentage~~inflation on materials, labor and overhead of ~~sales increased 160 basis points to 24.1% for~~$25.5 million, partially offset by the ~~second quarter~~impact of ~~2021 compared to 22.5% for the second quarter of 2020 due to increased~~net favorable volume, pricing and ~~sales volumes for~~mix that generated $23.7 million higher ~~margin products, manufacturing efficiencies and government subsidies received in an international market.~~

Selling, general and administrative expenses ~~increased $10.7~~for the first quarter of 2022 were $52.7 million or ~~28.7%,~~18.1% of net sales compared to ~~$48.0~~$51.7 million or ~~17.3%~~18.2% of net sales for the ~~second~~first quarter of 2021, ~~compared to $37.3~~an increase of $1.0 million, or ~~14.1% of net sales for the second quarter of 2020~~1.9%, primarily due to: (i) ~~increased costs for centralization and infrastructure efforts associated with our transformation initiatives, (ii) $2.8 million of higher technology and software licensing costs, (iii)~~ $2.4 million of ~~incremental~~exhibit, promotional and travel costs due to the return of in-person industry conferences and business activities, (ii) $2.1 million increased costs related to our SFG transformation program, (iii) increased technology expenses ~~for acquired businesses~~of $0.6 million and ~~(iv) $1.4~~(iii) $0.6 million of ~~higher professional services costs.~~transaction costs primarily associated with the acquisition of MINDS Automation Group, Inc. ("MINDS") that was completed in April 2022. These increases were partially offset by ~~approximately $2.1~~lower health insurance claims experience of $2.6 million, in reduced ~~expenses for closed locations.~~deferred compensation program cost driven by our stock price changes of $1.6 million and reduced depreciation and amortization expense of $0.9 million.

The backlog of orders as of March 31, 2022 was $834.7 million compared to $420.8 million as of March 31, 2021, an increase of $413.9 million or ~~14.6%, to $99.7~~98.4%. Domestic backlog increased $384.1 million or ~~17.7%~~119.0% to $707.0 million and international backlog increased $29.8 million or 30.4% to $127.7 million. The backlog increased $263.1 million to $517.7 million in the Infrastructure Solutions segment and increased $150.8 million to $317.0 million in the Materials Solutions segment. Increased orders were driven by (i) continuation of the pent-up demand experienced in 2021, (ii) both customer retail and dealer inventory replenishment following economic uncertainty as a result of COVID-19 and (iii) the infrastructure investment by the United States' government under the IIJA enacted in November 2021.

Sales in this segment were $197.5 million for the first quarter of 2022 compared to $201.5 million for the same period in 2021, a decrease of $4.0 million or 2.0%. The decrease was primarily driven by unfavorable net volume, pricing and the mix of sales that resulted in lower new and used equipment sales of $8.0 million and $1.2 million, respectively. These decreases were partially offset by higher (i) parts and component sales of $3.6 million, (ii) service and equipment installation sales of $1.1 million and (iii) freight revenue of $0.7 million, respectively.

Domestic sales for the ~~first six months of 2021, compared to $87.0~~Infrastructure Solutions segment increased $1.7 million or ~~15.7% of net sales~~1.0% for the first ~~six months~~quarter of ~~2020~~2022 compared to the same period in 2021 primarily due ~~to:~~to (i) increased ~~costs for centralization~~parts and ~~infrastructure efforts associated with our transformation initiatives,~~component sales of $4.4 million, (ii) ~~$6.4~~increased freight revenue of $1.0 million and (iii) increased service and equipment installation sales of ~~higher technology and software licensing costs, (iii) $4.6 million of incremental expenses for acquired businesses and (iv) $1.4 million of higher professional services costs.~~$0.9 million. These increases were partially offset by ~~decreases associated with: (i) $6.1~~lower new and used equipment sales of $3.2 million ~~of reduced expenses for closed locations, (ii) $5.2~~and $1.3 million, ~~of lower trade show and promotional expenses and (iii) $1.9 million of reduced travel expenses.~~respectively.

Three Months Ended June 30, Six Months Ended June 30,
(in millions) 2021 2020 2021 2020
Restructuring charges:
Costs associated with closing AMM $ — $ 0.3 $ — $ 0.3
Costs associated with closing Albuquerque — 0.7 — 1.0
Costs associated with closing Mequon 0.2 1.4 0.6 1.4
Costs associated with closing Enid — — — 0.3
Costs associated with closing Tacoma 0.6 — 1.0 —
Workforce reductions at multiple sites — 0.8 — 1.3
Total restructuring related charges 0.8 3.2 1.6 4.3
Asset impairment charges:
Goodwill impairment charges — — — 1.6
Airplane impairment charges — 2.6 — 2.6
Other impairment charges 0.2 0.2 0.2 0.2
Total asset impairment charges 0.2 2.8 0.2 4.4
Gain on sale of property and equipment, net:
Gain on sale of property and equipment, net (0.2) — (0.3) (0.6)
Total gain on sale of property and equipment, net (0.2) — (0.3) (0.6)
Restructuring, impairment and other asset charges, net $ 0.8 $ 6.0 $ 1.5 $ 8.1
Sales in this segment were $93.7 million for the first quarter of 2022 compared to $82.9 million for the same period in 2021, an increase of $10.8 million or 13.0% driven by the favorable impact of volume, pricing and the mix of sales that generated increases in equipment and parts and component sales of $5.7 million and $5.1 million, respectively.

Segment Operating Adjusted EBITDA is the measure of segment profit or loss used by our Chief Executive Officer, whom is determined to be the chief operating decision maker ("CODM"), to evaluate performance and allocate resources to the operating segments. Segment Operating Adjusted EBITDA, a non-GAAP financial measure, is defined as net income or loss before the impact of interest income or expense, income taxes, depreciation and amortization and certain other adjustments that are not considered by the CODM in the evaluation of ongoing operating performance. This non-GAAP financial measure can be useful to investors in understanding operating results and the performance of our core business from management's perspective. Our presentation of Segment Operating Adjusted EBITDA may not be comparable to similar measures used by other companies and are not necessarily indicative of the results of operations that would have occurred had each reportable segment been an independent, stand-alone entity during the periods presented. See Note ~~12. "Restructuring, Impairment and Other Asset Charges, Net"~~10. "Segment Information," of the Notes to Unaudited Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for ~~discussion~~a reconciliation of ~~the individual restructuring actions taken and the impairment charges recorded.~~Segment Operating Adjusted EBITDA to total consolidated net income attributable to controlling interest.

~~The income tax provision~~Infrastructure Solutions segment: Segment Operating Adjusted EBITDA for the ~~second quarter of 2021~~Infrastructure Solutions segment was $2.3 million compared to an income tax provision of $1.8 million for the second quarter of 2020. Our effective income tax rate was 20.4% for the second quarter of 2021 compared to 16.1% for the second quarter of 2020. The tax rate for 2021 was higher compared to 2020 primarily due to primarily due to changes in the relative weighting of jurisdictional income and loss and the limitation on executive compensation deduction partially offset by net discrete tax benefits related to the release of reserves for uncertain tax positions associated with AMM whose dissolution was completed during the second quarter of 2021.

~~The income tax provision for the first six months of 2021 was $3.2 million compared to income tax benefit of $3.3~~$16.4 million for the first ~~six months~~quarter of ~~2020. Our effective income tax rate was 15.3% for the first six months of 2021~~2022 compared to ~~(12.5)%~~$26.2 million for ~~the first six months of 2020. The change in the effective tax rate for the six months ended June 30, 2021 compared to~~ the same period in 2021, a decrease of $9.8 million or 37.4%. The decrease in Segment Operating Adjusted EBITDA resulted primarily from: (i) the ~~prior year is primarily~~impact of higher inflation on materials, labor and overhead costs of $17.3 million, (ii) increased general and administrative costs of $3.5 million and (iii) $0.7 million in manufacturing inefficiencies due ~~a net discrete tax benefit of $9.5 million resulting from provisions of the Coronavirus Aid, Relief~~to supply chain and ~~Economic Security Act ("CARES Act")~~logistics disruptions as well as pandemic related labor restrictions. Annual incentive compensation was recorded in Corporate in the prior year ~~income tax provision~~period and changes in the relative weighting of jurisdictional income and loss partially offset by the limitation on executive compensation deduction and a net discrete tax benefit related to the release of reserves for uncertain tax positions associated with AMM. Among other provisions, the CARES Act modified the net operating loss ("NOL") carryback provisions, which allowed us to carryback our 2018 NOL to prior tax years. This change not only favorably impacted the timing of the NOL benefit, but also increased the tax benefit amount as the federal tax rates in the prior years (35%) were higher than the current federal tax rate (21%).

The backlog of orders as of June 30, 2021 was $436.1 million compared to $181.9 million as of June 30, 2020, an increase of $254.2 million or 139.7%. Domestic and international backlogs increased $210.5 million or 164.1% and $43.7 million or 81.5%, respectively. The backlog increased $108.5 million to $217.7 millionhas been reflected in the Infrastructure Solutions segment in the current year resulting in a $1.5 million impact. These increased costs were partially offset by the impact of favorable volume, pricing and mix that generated $11.7 million higher gross profit.

Materials Solutions segment: Segment Operating Adjusted EBITDA for the Materials Solutions segment was $12.2 million for the first quarter of 2022 compared to $9.7 million for the same period in 2021, an increase of $2.5 million or 25.8%. The increase in Segment Operating Adjusted EBITDA between periods resulted primarily from the impact of favorable volume, pricing and mix that generated $12.0 million higher gross profit. These increases were partially offset by the impact of higher inflation on materials, labor and overhead costs of $8.2 million and increased ~~$145.7 million to $218.4 million~~general and administrative costs of $1.5 million. Annual incentive compensation was recorded in Corporate in the prior year period and has been reflected in the Materials Solutions ~~segment. Increased orders were driven by pent-up demand after COVID-19 uncertainty~~segment in ~~2020 and slower production cycles due to manufacturing labor shortages and increased lead times for certain production materials, parts and supplies.~~the current year resulting in a $0.7 million impact.

~~Infrastructure Solutions: Sales~~experience of $2.6 million, $2.2 million of annual incentive compensation that was recorded within the reportable segments in ~~this segment were $180.2 million for~~ the ~~second quarter of 2021~~current year as compared to $181.9 million for the same period in 2020, a decrease of $1.7 million or 0.9%. Domestic sales for the Infrastructure Solutions segment decreased $24.3 million or 15.3% for the second quarter of 2021 compared to the same period in 2020 driven by: (i) reduced equipment sales of $27.8 million largely due to lower production throughput from labor shortages and supply chain constraints, (ii) $5.1 million of salesat Corporate in the prior year ~~associated with the exited Enid business, (iii)~~period and reduced ~~used equipment sales~~deferred compensation program cost driven by our stock price changes of ~~$4.0 million and (iv) lower service sales of $2.3~~$1.6 million. These decreases were partially offset by ~~$11.3 million of net incremental sales from acquisitions~~increases in consultant costs and $4.0 million of higher parts and components. International sales for the Infrastructure Solutions segment increased $22.6 million or 97.0% for the second quarter of 2021 compared to the same period in 2020 primarily due to increased equipment sales of $17.0 million from COVID-19 related business disruptions in the prior year.

Materials Solutions: Sales in this segment were $97.8 million for the second quarter of 2021 compared to $83.4 million for the same period in 2020, an increase of $14.4 million or 17.3%. Domestic sales for the Materials Solutions segment increased by $4.0 million or 6.3% for the second quarter of 2021 compared to the same period in 2020 driven by increased parts and component sales. International sales for the Materials Solutions segment increased $10.4 million or 51.2% for the second quarter of 2021 compared to the same period in 2020 driven by higher equipment sales, which increased 68.0% for the second quarter of 2021 compared to the same period in 2020 related to COVID-19 related temporary site closures in the prior year.

Infrastructure Solutions: Sales in this segment were $381.7 million for the first six months of 2021 compared to $384.5 million for the same period in 2020, a decrease of $2.8 million or 0.7%. Domestic sales for the Infrastructure Solutions segment decreased $32.1 million or 9.7% for the first six months of 2021 compared to the same period in 2020 driven by: (i) reduced equipment sales of $32.5 million largely due to lower production throughput from labor shortages and supply chain constraints, (ii) $14.2 million of sales in the prior year associated with the exited Enid business, (iii) reduced used equipment sales of $5.9 million and (iv) lower service sales of $3.1 million. These decreases were partially offset by $23.1 million of net incremental sales from acquisitions and $2.0 million of higher parts and components. International sales for the Infrastructure Solutions segment increased $29.3 million or 55.2% for the first six months of 2021 compared to the same period in 2020 from COVID-19 related business disruptions in the prior year.

Materials Solutions: Sales in this segment were $180.7 million for the first six months of 2021 compared to $169.6 million for the same period in 2020, an increase of $11.1 million or 6.5%. Domestic sales for the Materials Solutions segment increased by $3.6 million or 2.9% for the first six months of 2021 compared to the same period in 2020, which was driven by increased parts and component sales of $2.8 million. International sales for the Materials Solutions segment increased $7.5 million or 16.5% for the first six months of 2021 compared to the same period in 2020 due to increased equipment sales of $6.9 million related to COVID-19 related temporary site closures in the prior year.

Infrastructure Solutions segment: Segment profit for the Infrastructure Solutions segment was $11.8 million for the second quarter of 2021 compared to $14.2 million for the same period in 2020, a decrease of $2.4 million or 16.9%. The decrease in segment profits resulted primarily from increased general and administrativestock compensation expenses. These decreases in segment profits were partially offset by an increase in gross profit of $1.3 million due to a 90 basis point increase in gross margins between periods (22.0% and 21.1% for the second quarter of 2021 and 2020, respectively) as well as lower net restructuring and other asset charges of $1.2 million.

Materials Solutions segment: Segment profit for the Materials Solutions segment was $12.8 million for the second quarter of 2021 compared to $8.5 million for the same period in 2020, an increase of $4.3 million or 50.6%. The increase in segment profits between periods resulted from an increase in gross profit of $6.2 million due primarily to a 260 basis point increase in gross margins and government subsidies received in an international market combined with decreased restructuring costs of $1.2 million.

Infrastructure Solutions segment: Segment profit for the Infrastructure Solutions segment was $32.8 million for the first six months of 2021 compared to $31.4 million for the same period in 2020, an increase of $1.4 million or 4.5%. Segment profits were favorably impacted by a decrease in restructuring, impairment, and other charges of $3.0 million. This was partially offset by a decrease in gross profit of $2.5 million due to a 50 basis point decrease in gross margins between periods (23.1% and 23.6% for the first six months of 2021 and 2020, respectively).

Corporate: Corporate operations had a loss of $34.7 million for the first six months of 2021 compared to a loss of $16.5 million for the first six months of 2020, an increase in expense of $18.2 million or 110.3%. The increase in expenses was primarily driven by increased costs for centralization and infrastructure efforts associated with our transformation initiatives, including a $1.5 million out-of-period expense recorded during the first quarter of 2021 for certain vendor hosted software licensing fees for contract costs incurred in the fourth quarter of 2020, and $7.7 million of increased income tax expense partially offset by $2.6 million of airplane impairment charges recorded in 2020 that did not recur in 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 $111.4 million of cash and cash equivalents available for operating purposes as of March 31, 2022, of which $21.8 million was held by our foreign subsidiaries. Our future cash ~~needs are currently expected to be primarily related to operating activities, inclusive of ongoing transformation initiatives,~~requirements include working capital needs, capital expenditures, vendor hosted software arrangements including the related implementation costs, unrecognized tax benefits and operating lease payments. In addition, we intend to fund other initiatives of our business including the SFG transformation and may identify strategic acquisitions which cash uses are variable in nature.

In April 2022, we acquired MINDS with a total cash consideration payable to the selling shareholders of $18.2 million, subject to adjustment for cash, indebtedness and net working capital ~~investments. We estimate that our capital expenditures will be between $15~~ and ~~$20 million for the year ending December 31, 2021, which may be impacted by general economic, financial or operational changes, including the ongoing impact of COVID-19 and related disruptions~~was funded from cash on our operating results, competitive, legislative and regulatory factors, among other considerations. Our ability to satisfy our cash requirements depends on our ongoing ability to generate and raise cash. We expect to finance these expenditures using currently available cash balances, internally generated funds and available credit under our credit facilities. Capital expenditures are generally for machinery, equipment and facilities used in the production of our various products.hand. We believe that our current working capital, cash flows generated from future operations and available capacity under our credit facility will be sufficient to meet working capital and capital expenditure requirements for at least the next 12 months.

Our primary sources of liquidity and capital resources are cash on hand, borrowing capacity under a $150.0 million revolving credit facility (the "Credit Facility") and cash flows from operations. We had $174.5 million of cash available for operating purposes as of June 30, 2021, of which $28.5 million was held by our foreign subsidiaries. We did not have any outstanding borrowings on the Credit Facility at ~~June 30, 2021~~March 31, 2022 or December 31, ~~2020.~~2021. In addition, no borrowings ~~were~~have been made under the Credit Facility during ~~2021.~~2022. Our outstanding letters of credit totaling ~~$8.8~~$2.5 million decreased borrowing availability to ~~$141.2~~$147.5 million under the ~~Credit Facility~~revolving credit facility as of ~~June 30, 2021.~~March 31, 2022. The 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 ~~agreement~~Credit Facility at ~~June 30, 2021.~~

Certain of our international subsidiaries in South Africa, Australia, Brazil ~~Canada~~ and the 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

Six Months Ended June 30, Increase / Decrease
(in millions) 2021 2020
Net income $ 17.7 $ 29.8 $ (12.1)
Depreciation and amortization 15.1 12.6 2.5
Deferred tax provision 5.4 13.4 (8.0)
Asset impairment charges 0.2 4.4 (4.2)
(Increase) decrease in receivables and other contract assets (32.9) 5.4 (38.3)
(Increase) decrease in inventories (7.4) 31.4 (38.8)
(Increase) decrease in prepaid expenses (0.1) 5.2 (5.3)
Increase (decrease) in accounts payable 25.5 (7.7) 33.2
Increase (decrease) in accrued payroll and related expenses 7.8 (2.9) 10.7
Decrease in accrued product warranty (4.7) (4.5) (0.2)
Increase (decrease) in customer deposits 0.9 (20.1) 21.0
Income taxes payable/prepaid (7.0) 10.6 (17.6)
Other, net 10.0 7.3 2.7
Net cash provided by operating activities $ 30.5 $ 84.9 $ (54.4)


	Three Months Ended March 31,				Increase / Decrease
(in millions)	2022		2021
Net income	$	4.1	$	8.5	$	(4.4)
Deferred compensation (benefit) expense	(0.8)		0.7		(1.5)
Deferred tax (benefit) provision	(4.0)		0.8		(4.8)
Sale (purchase) of trading securities, net	0.6		(1.4)		2.0
Decrease (Increase) in receivables and other contract assets	5.3		(26.4)		31.7
(Increase) decrease in inventories	(53.7)		5.3		(59.0)
Increase in prepaid expenses	(1.0)		0.7		(1.7)
Increase in accounts payable	17.3		15.8		1.5
Increase in accrued payroll and related expenses	3.6		2.6		1.0
Decrease in other accrued liabilities	(2.9)		(0.3)		(2.6)
Increase (decrease) in customer deposits	9.3		(0.9)		10.2
Income taxes payable/prepaid	4.4		0.8		3.6
Other, net	8.2		8.4		(0.2)
Net cash (used in) provided by operating activities	$	(9.6)	$	14.6	$	(24.2)

Net cash (used in) provided by operating activities decreased ~~$54.4~~$24.2 million for the first ~~six~~three months of ~~2021~~2022 as compared to the first ~~six~~three months of ~~2020.~~2021. The ~~primary drivers were~~decrease was primarily driven by the ~~decrease~~increase of inventories on hand due to higher backlog and supply chain logistics challenges of $59.0 million, changes in the deferred tax benefit of $4.8 million and lower net income ~~of $12.1 million,~~partially offset by the timing of receivables and other contract assets of ~~$38.3 million, inventories of $38.8~~$31.7 million and ~~payable/prepaid income taxes of $17.6 million. These decreases were partially offset by the timing of accounts payables payments of $33.2 million and~~increased customer deposits of ~~$21.0 million.~~$10.2 million associated with increased backlog.


		Six Months Ended June 30,				Increase / Decrease			Three Months Ended March 31,				Increase / Decrease
(in millions)	(in millions)	2021		2020				(in millions)	2022		2021
Acquisitions, net of cash acquired	Acquisitions, net of cash acquired	$	0.1	$	—	$	0.1	Acquisitions, net of cash acquired	$	—	$	0.1	$	(0.1)
Price adjustment on prior sale of subsidiary	Price adjustment on prior sale of subsidiary	(1.1)		—		(1.1)		Price adjustment on prior sale of subsidiary	—		(1.1)		1.1
Expenditures for property and equipment	Expenditures for property and equipment	(7.2)		(7.4)		0.2		Expenditures for property and equipment	(11.6)		(3.3)		(8.3)
Proceeds from sale of property and equipment	Proceeds from sale of property and equipment	1.5		2.0		(0.5)		Proceeds from sale of property and equipment	0.2		1.4		(1.2)
Purchase of investments	Purchase of investments	(0.6)		(0.6)		—		Purchase of investments	(0.3)		(0.2)		(0.1)
Sale of investments	Sale of investments	0.5		0.4		0.1		Sale of investments	—		0.1		(0.1)
Net cash used by investing activities		$	(6.8)	$	(5.6)	$	(1.2)
Net cash used in investing activities								Net cash used in investing activities	$	(11.7)	$	(3.0)	$	(8.7)


		Six Months Ended June 30,				Increase / Decrease			Three Months Ended March 31,				Increase / Decrease
(in millions)	(in millions)	2021		2020				(in millions)	2022		2021
Payment of dividends	Payment of dividends	$	(5.0)	$	(5.0)	$	—	Payment of dividends	$	(2.8)	$	(2.5)	$	(0.3)
Repayments, net under bank loans		(0.4)		(0.2)		(0.2)
Borrowings (repayments), net under bank loans								Borrowings (repayments), net under bank loans	1.8		(0.3)		2.1
Withholding tax paid upon vesting of share-based compensation awards	Withholding tax paid upon vesting of share-based compensation awards	(3.2)		(0.6)		(2.6)		Withholding tax paid upon vesting of share-based compensation awards	(1.3)		(3.0)		1.7
Other, net	Other, net	0.5		0.1		0.4		Other, net	—		0.2		(0.2)
Net cash used by financing activities		$	(8.1)	$	(5.7)	$	(2.4)
Net cash used in financing activities								Net cash used in financing activities	$	(2.3)	$	(5.6)	$	3.3

Our total current assets increased to ~~$634.5~~$675.7 million as of ~~June 30, 2021~~March 31, 2022 from ~~$565.8~~$636.0 million as of December 31, ~~2020,~~2021, an increase of ~~$68.7~~$39.7 million or ~~12.1%~~6.2%, due primarily to an increase in ~~net trade receivables~~inventories of $54.2 million and ~~contract~~the recording of $15.4 million assets ~~of $32.4 million and~~at our Tacoma site as held for sale partially offset by a decrease in cash and cash equivalents of ~~$15.9~~$22.7 million during the first ~~six~~three months of ~~2021.~~2022.

We have reviewed all claims and lawsuits and ~~has~~have 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, we believe 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

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 payments of $47.6 million to be paid through September 2027. Payments of $2.1 million will be made during the remaining periods of 2021, $12.4 million during the years 2022 to 2023, $19.7 million during the years 2024 to 2025 and $13.3 million after 2025.

Our management has established and maintains disclosure controls and procedures that are designed to ensure that the information required to be disclosed by us in reports that we file or submit under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, and that such information is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Management carried out an evaluation, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report. Based on such evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that as of ~~June 30, 2021,~~March 31, 2022, the Company's disclosure controls and procedures were effective.

From time to time we are involved in legal actions arising in the ordinary course of ~~its~~our business. Other than as set forth in Note 8,8. Commitments and Contingencies, to the unaudited consolidated financial statements and Part I, "Item 3. Legal Proceedings" in our Annual Report on Form 10-K for the year ended December 31, ~~2020,~~2021, we currently have no pending or threatened litigation that our management believes will result in an outcome that would materially affect our business, financial position, cash flows or results of operations. Nevertheless, there can be no assurance that future litigation to which we become a party will not have a material adverse effect on our business, financial position, cash flows or results of operations.

In addition to the other information set forth in this Report, you should carefully consider the factors discussed in Part I, "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, ~~2020,~~2021, which could materially affect our business, financial condition or future results. The risks described in our Annual Report on Form 10-K for the year ended December ~~31, 2020, our~~ ~~Quarterly Report on Form 10-Q~~ ~~for the three months ended March~~ 31, 2021 and in this Quarterly Report on Form 10-Q are not the only risks facing our Company. Additional risks and uncertainties not currently known to management or that management currently deems to be immaterial also may materially adversely affect our business, financial condition or operating results.


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	ASTE	The Nasdaq Stock Market LLC


Large Accelerated Filer	☒	Accelerated Filer	☐
Non-accelerated filer	☐	Smaller Reporting Company	☐
		Emerging Growth Company	☐


		Page
PART I
Item 1.	Financial Statements (Unaudited)	1
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	1922
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	2729
Item 4.	Controls and Procedures	2729

PART II
Item 1.	Legal Proceedings	2829
Item 1A.	Risk Factors	2829
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	2830
Item 3.	Defaults Upon Senior Securities	2830
Item 4.	Mine Safety Disclosures	2830
Item 5.	Other Information	2830
Item 6.	Exhibits	2830
SIGNATURES		2931


~~(in millions)~~	~~Amount~~

~~Accounts receivable~~	$	~~2.3~~
~~Inventories~~	~~8.1~~
~~Other assets~~	~~6.3~~
~~Intangible assets~~	~~4.3~~
~~Total assets acquired~~	$	~~21.0~~
~~Accounts payable and other~~	~~(4.4)~~
~~Advance customer deposits~~	~~(2.8)~~
~~Total liabilities assumed~~	~~(7.2)~~
~~Total purchase price~~	$	~~13.8~~


~~(in millions)~~	~~Amount~~
~~Cash~~	$	~~1.2~~
~~Accounts receivable and contract assets~~	~~6.4~~
~~Inventories~~	~~2.0~~
~~Goodwill~~	~~6.3~~
~~Other assets~~	~~3.8~~
~~Intangible assets~~	~~5.7~~
~~Total assets acquired~~	$	~~25.4~~
~~Total liabilities assumed~~	~~(9.8)~~
~~Total purchase price~~	$	~~15.6~~


	Three Months Ended March 31,				$ Change		% Change
(in millions)	2022		2021
Infrastructure Solutions	$	16.4	$	26.2	$	(9.8)	(37.4)	%
Materials Solutions	12.2		9.7		2.5		25.8	%
Corporate	(9.8)		(15.0)		5.2		34.7	%


			ASTEC INDUSTRIES, INC. (Registrant)


Date: ~~August~~May 5, ~~2021~~2022			/s/ Rebecca A. Weyenberg
			Rebecca A. Weyenberg Chief Financial Officer (Principal Financial Officer)


Date: ~~August~~May 5, ~~2021~~2022			/s/ Jamie E. Palm
			Jamie E. Palm Vice President, Chief Accounting Officer and Corporate Controller (Principal Accounting Officer)