
		September 30, 2021		December 31, 2020			September 30, 2022		December 31, 2021
ASSETS	ASSETS					ASSETS
Current assets:	Current assets:					Current assets:
Cash and cash equivalents		$	164.6	$	158.6
Cash, cash equivalents and restricted cash						Cash, cash equivalents and restricted cash	$	20.8	$	134.4
Investments	Investments	9.2		4.3		Investments	4.2		8.6
Trade receivables and contract assets, net of allowance for credit losses of $2.3 and $1.7, respectively		145.8		115.9
Other receivables		3.7		4.7
Trade receivables and contract assets, net of allowance for credit losses of $2.6 and $2.3, respectively						Trade receivables and contract assets, net of allowance for credit losses of $2.6 and $2.3, respectively	160.6		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	6.3		3.5
Inventories	Inventories	282.8		249.7		Inventories	396.4		298.7
Prepaid and refundable income taxes	Prepaid and refundable income taxes	15.8		8.8		Prepaid and refundable income taxes	18.3		20.5
Prepaid expenses and other assets	Prepaid expenses and other assets	17.8		17.5		Prepaid expenses and other assets	22.9		23.5
Assets held for sale	Assets held for sale	5.1		6.3		Assets held for sale	20.1		5.1
Total current assets	Total current assets	644.8		565.8		Total current assets	649.6		636.0
Property and equipment, net of accumulated depreciation of $248.5 and $237.6, respectively		167.5		172.8
Property and equipment, net of accumulated depreciation of $238.7 and $248.0, respectively						Property and equipment, net of accumulated depreciation of $238.7 and $248.0, respectively	163.8		171.7
Investments	Investments	10.5		13.7		Investments	15.7		12.2
Goodwill	Goodwill	38.5		38.7		Goodwill	43.8		38.6
Intangible assets, net of accumulated amortization of $35.6 and $31.3, respectively		24.3		31.2
Intangible assets, net of accumulated amortization of $42.3 and $38.1, respectively						Intangible assets, net of accumulated amortization of $42.3 and $38.1, respectively	24.0		22.7
Deferred income tax assets	Deferred income tax assets	15.0		15.0		Deferred income tax assets	28.2		16.2
Other long-term assets	Other long-term assets	10.1		11.0		Other long-term assets	19.5		8.4
Total assets	Total assets	$	910.7	$	848.2	Total assets	$	944.6	$	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	0.5		1.4		Short-term debt	8.8		2.6
Accounts payable	Accounts payable	77.9		52.7		Accounts payable	105.3		82.2
Customer deposits	Customer deposits	38.0		34.2		Customer deposits	79.3		60.2
Accrued product warranty	Accrued product warranty	10.5		10.3		Accrued product warranty	10.9		10.5
Accrued payroll and related liabilities	Accrued payroll and related liabilities	29.9		20.8		Accrued payroll and related liabilities	34.9		23.6
Accrued loss reserves	Accrued loss reserves	1.8		3.0		Accrued loss reserves	2.1		1.9
Other current liabilities	Other current liabilities	53.2		47.7		Other current liabilities	42.4		42.2
Total current liabilities	Total current liabilities	212.0		170.3		Total current liabilities	283.9		223.3
Long-term debt	Long-term debt	0.2		0.4		Long-term debt	1.3		0.2
Deferred income tax liabilities	Deferred income tax liabilities	0.5		0.5		Deferred income tax liabilities	3.0		1.4
Other long-term liabilities	Other long-term liabilities	34.9		34.0		Other long-term liabilities	28.3		29.6
Total liabilities	Total liabilities	247.6		205.2		Total liabilities	316.5		254.5
Commitments and contingencies (Note 8)		0		0
Commitments and contingencies (Note 9)						Commitments and contingencies (Note 9)
Shareholders' equity:	Shareholders' equity:					Shareholders' equity:
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	—		—		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 – 22,762,989 as of September 30, 2021 and 22,611,976 as of December 31, 2020		4.6		4.5
Common stock – authorized 40,000,000 shares of $0.20 par value; issued and outstanding – 22,710,427 as of September 30, 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 – 22,710,427 as of September 30, 2022 and 22,767,052 as of December 31, 2021	4.5		4.5
Additional paid-in capital	Additional paid-in capital	129.2		127.8		Additional paid-in capital	134.4		130.6
Accumulated other comprehensive loss	Accumulated other comprehensive loss	(34.6)		(33.5)		Accumulated other comprehensive loss	(46.0)		(32.4)
Company stock held by SERP, at cost		(1.2)		(1.5)
Company stock held by deferred compensation programs, at cost						Company stock held by deferred compensation programs, at cost	(1.1)		(1.2)
Retained earnings	Retained earnings	564.7		545.2		Retained earnings	535.9		549.3
Shareholders' equity:		662.7		642.5
Shareholders' equity						Shareholders' equity	627.7		650.8
Noncontrolling interest	Noncontrolling interest	0.4		0.5		Noncontrolling interest	0.4		0.5
Total equity	Total equity	663.1		643.0		Total equity	628.1		651.3
Total liabilities and equity	Total liabilities and equity	$	910.7	$	848.2	Total liabilities and equity	$	944.6	$	905.8


		Three Months Ended September 30,				Nine Months Ended September 30,					Three Months Ended September 30,				Nine Months Ended September 30,
		2021		2020		2021		2020			2022		2021		2022		2021
Net sales	Net sales	$	267.0	$	231.4	$	829.4	$	785.5	Net sales	$	315.2	$	266.9	$	924.6	$	828.9
Cost of sales	Cost of sales	204.7		181.2		631.6		602.3		Cost of sales	249.8		205.0		732.5		632.7
Gross profit	Gross profit	62.3		50.2		197.8		183.2		Gross profit	65.4		61.9		192.1		196.2
Selling, general and administrative expenses	Selling, general and administrative expenses	48.6		43.2		148.3		130.2		Selling, general and administrative expenses	55.0		48.6		161.4		148.3
Research and development expenses	Research and development expenses	6.7		5.7		20.0		17.6		Research and development expenses	8.5		6.7		23.0		20.0
Restructuring, impairment and other asset charges, net	Restructuring, impairment and other asset charges, net	0.3		2.2		1.8		10.3		Restructuring, impairment and other asset charges, net	0.1		0.3		4.5		1.8
Income (loss) from operations		6.7		(0.9)		27.7		25.1
Income from operations										Income from operations	1.8		6.3		3.2		26.1
Other income:	Other income:									Other income:
Interest expense	Interest expense	(0.2)		—		(0.6)		(0.2)		Interest expense	(0.6)		(0.2)		(1.6)		(0.6)
Interest income	Interest income	0.1		0.2		0.4		0.6		Interest income	0.3		0.1		0.7		0.4
Other (expenses) income, net		(0.1)		1.1		(0.1)		1.4
Other expenses, net										Other expenses, net	(0.3)		(0.1)		(0.8)		(0.1)
Income from operations before income taxes	Income from operations before income taxes	6.5		0.4		27.4		26.9		Income from operations before income taxes	1.2		6.1		1.5		25.8
Income tax (benefit) provision		(2.8)		(1.2)		0.4		(4.5)
Income tax provision (benefit)										Income tax provision (benefit)	0.7		(2.9)		0.8		—
Net income	Net income	9.3		1.6		27.0		31.4		Net income	0.5		9.0		0.7		25.8
Net loss attributable to noncontrolling interest	Net loss attributable to noncontrolling interest	—		—		—		0.1		Net loss attributable to noncontrolling interest	0.2		—		0.2		—
Net income attributable to controlling interest	Net income attributable to controlling interest	$	9.3	$	1.6	$	27.0	$	31.5	Net income attributable to controlling interest	$	0.7	$	9.0	$	0.9	$	25.8
Per share data:	Per share data:									Per share data:
Earnings per common share - Basic	Earnings per common share - Basic	$	0.41	$	0.07	$	1.19	$	1.39	Earnings per common share - Basic	$	0.03	$	0.40	$	0.04	$	1.14
Earnings per common share - Diluted	Earnings per common share - Diluted	$	0.41	$	0.07	$	1.18	$	1.38	Earnings per common share - Diluted	$	0.03	$	0.39	$	0.04	$	1.13
Weighted average shares outstanding - Basic	Weighted average shares outstanding - Basic	22,761,203		22,615,492		22,712,894		22,592,779		Weighted average shares outstanding - Basic	22,837,314		22,761,203		22,824,028		22,712,894
Weighted average shares outstanding - Diluted	Weighted average shares outstanding - Diluted	22,913,563		22,945,893		22,922,930		22,837,725		Weighted average shares outstanding - Diluted	22,916,316		22,913,563		22,932,206		22,922,930

Three Months Ended September 30, Nine Months Ended September 30,
2021 2020 2021 2020
Net income $ 9.3 $ 1.6 $ 27.0 $ 31.4
Other comprehensive (loss) income:
Foreign currency translation adjustments (4.5) 0.5 (1.2) (8.3)
Other comprehensive (loss) income (4.5) 0.5 (1.2) (8.3)
Comprehensive income 4.8 2.1 25.8 23.1
Comprehensive loss attributable to noncontrolling interest 0.1 — 0.1 0.2
Comprehensive income attributable to controlling interest $ 4.9 $ 2.1 $ 25.9 $ 23.3


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Net income	$	0.5	$	9.0	$	0.7	$	25.8
Other comprehensive loss:


Foreign currency translation adjustments	(9.2)		(4.5)		(13.5)		(1.2)
Other comprehensive loss	(9.2)		(4.5)		(13.5)		(1.2)
Comprehensive (loss) income	(8.7)		4.5		(12.8)		24.6
Comprehensive loss attributable to noncontrolling interest	0.2		0.1		0.1		0.1
Comprehensive (loss) income attributable to controlling interest	$	(8.5)	$	4.6	$	(12.7)	$	24.7


		Nine Months Ended September 30,					Nine Months Ended September 30,
		2021		2020			2022		2021
Cash flows from operating activities:	Cash flows from operating activities:					Cash flows from operating activities:
Net income	Net income	$	27.0	$	31.4	Net income	$	0.7	$	25.8
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		15.0		15.5
Amortization		7.6		3.9
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	20.9		22.6
Provision for credit losses	Provision for credit losses	0.6		0.6		Provision for credit losses	0.9		0.6
Provision for warranties	Provision for warranties	8.5		7.1		Provision for warranties	9.3		8.5
Deferred compensation (benefit) expense	Deferred compensation (benefit) expense	—		0.5		Deferred compensation (benefit) expense	(1.1)		—
Share-based compensation	Share-based compensation	4.6		4.8		Share-based compensation	5.4		4.6
Deferred tax provision		0.3		14.0
Deferred tax (benefit) provision						Deferred tax (benefit) provision	(12.6)		0.3
Gain on disposition of property and equipment	Gain on disposition of property and equipment	(0.5)		(0.8)		Gain on disposition of property and equipment	(0.4)		(0.5)

Gain on disposition of subsidiary		—		(1.1)
Asset impairment charges		0.2		4.1
Distributions to SERP participants		(2.4)		(1.2)

Asset impairment charges, net						Asset impairment charges, net	3.4		0.2
Distributions to deferred compensation programs' participants						Distributions to deferred compensation programs' participants	(0.9)		(2.4)
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	Purchase of trading securities, net	(2.4)		(0.5)		Purchase of trading securities, net	(0.7)		(2.4)
Receivables and other contract assets	Receivables and other contract assets	(31.3)		(2.0)		Receivables and other contract assets	(25.0)		(30.2)
Inventories	Inventories	(33.4)		43.2		Inventories	(98.9)		(32.3)
Prepaid expenses	Prepaid expenses	0.2		7.5		Prepaid expenses	0.9		0.2
Other assets	Other assets	(3.0)		(1.7)		Other assets	(10.3)		(3.0)
Accounts payable	Accounts payable	26.6		(8.0)		Accounts payable	25.3		26.6

Accrued loss reserves	Accrued loss reserves	0.1		0.2		Accrued loss reserves	0.3		0.1
Accrued payroll and related expenses	Accrued payroll and related expenses	9.3		1.0		Accrued payroll and related expenses	11.2		9.3
Other accrued liabilities	Other accrued liabilities	10.3		2.9		Other accrued liabilities	0.5		9.7
Accrued product warranty	Accrued product warranty	(8.3)		(7.3)		Accrued product warranty	(8.6)		(8.3)
Customer deposits	Customer deposits	4.0		(18.0)		Customer deposits	21.1		4.0
Income taxes payable/prepaid	Income taxes payable/prepaid	(5.7)		8.6		Income taxes payable/prepaid	1.8		(6.1)
Other		—		(2.6)
Net cash provided by operating activities		27.3		102.1

Net cash (used in) provided by operating activities						Net cash (used in) provided by operating activities	(56.8)		27.3
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		(28.3)		Acquisitions, net of cash acquired	(17.8)		0.1
Proceeds from (price adjustment on prior) sale of subsidiary		(1.1)		1.1
Price adjustment on prior sale of subsidiary						Price adjustment on prior sale of subsidiary	—		(1.1)
Expenditures for property and equipment	Expenditures for property and equipment	(10.9)		(10.9)		Expenditures for property and equipment	(27.6)		(10.9)
Proceeds from sale of property and equipment	Proceeds from sale of property and equipment	1.7		6.0		Proceeds from sale of property and equipment	0.7		1.7
Purchase of investments	Purchase of investments	(0.8)		(0.9)		Purchase of investments	(0.8)		(0.8)
Sale of investments	Sale of investments	1.8		1.2		Sale of investments	0.5		1.8
Net cash used by investing activities		(9.2)		(31.8)
Net cash used in investing activities						Net cash used in investing activities	(45.0)		(9.2)


		Nine Months Ended September 30,					Nine Months Ended September 30,
		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	(7.5)		(7.5)		Payment of dividends	(8.3)		(7.5)
Borrowings under bank loans		2.5		0.2
Repayment of bank loans		(3.6)		(0.5)
Proceeds from borrowings on credit facility and bank loans						Proceeds from borrowings on credit facility and bank loans	50.1		2.5
Repayments of borrowings on credit facility and bank loans						Repayments of borrowings on credit facility and bank loans	(42.5)		(3.6)

Sale of Company stock by SERP, net		0.6		0.2
Sale of Company stock by deferred compensation programs, net						Sale of Company stock by deferred compensation programs, net	0.2		0.6
Withholding tax paid upon vesting of share-based compensation awards	Withholding tax paid upon vesting of share-based compensation awards	(3.4)		(0.7)		Withholding tax paid upon vesting of share-based compensation awards	(1.8)		(3.4)

Net cash used by financing activities		(11.4)		(8.3)
Repurchase of Company stock						Repurchase of Company stock	(6.1)		—
Net cash used in financing activities						Net cash used in financing activities	(8.4)		(11.4)
Effect of exchange rates on cash	Effect of exchange rates on cash	(0.7)		(2.4)		Effect of exchange rates on cash	(3.4)		(0.7)
Increase in cash and cash equivalents		6.0		59.6
Cash and cash equivalents, beginning of period		158.6		48.9
Cash and cash equivalents, end of period		$	164.6	$	108.5
(Decrease) increase in cash and cash equivalents and restricted cash						(Decrease) increase in cash and cash equivalents and restricted cash	(113.6)		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	$	20.8	$	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	$	0.2	$	0.3	Interest, net of capitalized interest	$	0.7	$	0.2
Income taxes paid (refunded)		$	6.7	$	(21.3)
Income taxes paid						Income taxes paid	$	12.3	$	6.7

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	$	0.9	$	0.3	Capital expenditures in accounts payable	$	1.2	$	0.9

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	$	1.4	$	0.5	Additions to right-of-use assets and lease liabilities	$	2.8	$	1.4
Liability award converted to equity		$	—	$	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		Noncontrolling 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)

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
Net loss																	Net loss	—	—		—		—		—		(3.9)		—		(3.9)
Other comprehensive loss																	Other comprehensive loss	—	—		—		(8.5)		—		—		—		(8.5)
Dividends ($0.12 per share)																	Dividends ($0.12 per share)	—	—		0.1		—		—		(2.7)		—		(2.6)
Share-based compensation	Share-based compensation	—	—		1.5		—		—		—		—		1.5		Share-based compensation	—	—		1.6		—		—		—		—		1.6

Issuance of common stock under incentive plan	Issuance of common stock under incentive plan	41,809	0.1		—		—		—		—		—		0.1		Issuance of common stock under incentive plan	27,482	—		—		—		—		—		—		—
Withholding tax paid upon equity award vesting	Withholding tax paid upon equity award vesting	—	—		(0.2)		—		—		—		—		(0.2)		Withholding tax paid upon equity award vesting	—	—		(0.3)		—		—		—		—		(0.3)

SERP transactions, net		—	—		0.2		—		0.1		—		—		0.3
Deferred compensation programs' transactions, net																	Deferred compensation programs' transactions, net	—	—		0.1		—		0.1		—		—		0.2

Balance, June 30, 2021		22,757,326	$	4.6	$	127.8	$	(30.2)	$	(1.3)	$	557.9	$	0.5	$	659.3
Net income		—	—		—		—		—		9.3		—		9.3
Balance, June 30, 2022																	Balance, June 30, 2022	22,864,529	$	4.6	$	132.6	$	(36.8)	$	(1.1)	$	544.0	$	0.6	$	643.9
Net income (loss)																	Net income (loss)	—	—		—		—		—		0.7		(0.2)		0.5
Other comprehensive loss	Other comprehensive loss	—	—		—		(4.4)		—		—		(0.1)		(4.5)		Other comprehensive loss	—	—		—		(9.2)		—		—		—		(9.2)
Dividends ($0.11 per share)		—	—		—		—		—		(2.5)		—		(2.5)
Dividends ($0.12 per share)																	Dividends ($0.12 per share)	—	—		—		—		—		(2.8)		—		(2.8)
Share-based compensation	Share-based compensation	—	—		1.7		—		—		—		—		1.7		Share-based compensation	—	—		2.0		—		—		—		—		2.0

Issuance of common stock under incentive plan	Issuance of common stock under incentive plan	5,663	—		(0.1)		—		—		—		—		(0.1)		Issuance of common stock under incentive plan	6,343	—		—		—		—		—		—		—
Withholding tax paid upon equity award vesting	Withholding tax paid upon equity award vesting	—	—		(0.2)		—		—		—		—		(0.2)		Withholding tax paid upon equity award vesting	—	—		(0.2)		—		—		—		—		(0.2)

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

Share repurchases																	Share repurchases	(160,445)	(0.1)		—		—		—		(6.0)		—		(6.1)

Balance, September 30, 2021		22,762,989	$	4.6	$	129.2	$	(34.6)	$	(1.2)	$	564.7	$	0.4	$	663.1
Balance, September 30, 2022																	Balance, September 30, 2022	22,710,427	$	4.5	$	134.4	$	(46.0)	$	(1.1)	$	535.9	$	0.4	$	628.1


		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 (loss)		—	—		—		—		—		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
Issuance of common stock under incentive plan		—	—		0.8		—		—		—		—		0.8
Withholding tax paid upon equity award vesting		32,663	—		—		—		—		—		—		—
Change in ownership percentage of subsidiary		—	—		(0.5)		—		—		—		—		(0.5)

																		Common Stock	Common Stock Amount		Additional Paid-in-Capital		Accumulated Other Comprehensive Loss		Company Shares Held by SERP		Retained Earnings		Noncontrolling 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		—	—		—		—		0.1		—		—		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
Net income	Net income	—	—		—		—		—		1.6		—		1.6		Net income	—	—		—		—		—		8.3		—		8.3
Other comprehensive income	Other comprehensive income	—	—		—		0.5		—		—		—		0.5		Other comprehensive income	—	—		—		4.0		—		—		0.1		4.1
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	—	—		1.8		—		—		—		—		1.8		Share-based compensation	—	—		1.5		—		—		—		—		1.5

Issuance of common stock under incentive plan	Issuance of common stock under incentive plan	5,882	—		—		—		—		—		—		—		Issuance of common stock under incentive plan	41,809	0.1		—		—		—		—		—		0.1
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	—	—		(0.2)		—		—		—		—		(0.2)

SERP transactions, net		—	—		—		—		0.1		—		—		0.1
Deferred compensation programs' transactions, net																	Deferred compensation programs' transactions, net	—	—		0.2		—		0.1		—		—		0.3

Balance, September 30, 2020		22,608,864	$	4.5	$	127.5	$	(40.0)	$	(1.5)	$	532.3	$	0.3	$	623.1
Balance, June 30, 2021																	Balance, June 30, 2021	22,757,326	$	4.6	$	127.8	$	(30.2)	$	(1.3)	$	555.5	$	0.5	$	656.9
Net income																	Net income	—	—		—		—		—		9.0		—		9.0
Other comprehensive loss																	Other comprehensive loss	—	—		—		(4.4)		—		—		(0.1)		(4.5)
Dividends ($0.11 per share)																	Dividends ($0.11 per share)	—	—		—		—		—		(2.5)		—		(2.5)
Share-based compensation																	Share-based compensation	—	—		1.7		—		—		—		—		1.7

Issuance of common stock under incentive plan																	Issuance of common stock under incentive plan	5,663	—		(0.1)		—		—		—		—		(0.1)
Withholding tax paid upon equity award vesting																	Withholding tax paid upon equity award vesting	—	—		(0.2)		—		—		—		—		(0.2)

Deferred compensation programs' transactions, net																	Deferred compensation programs' transactions, net	—	—		—		—		0.1		—		—		0.1

Balance, September 30, 2021																	Balance, September 30, 2021	22,762,989	$	4.6	$	129.2	$	(34.6)	$	(1.2)	$	562.0	$	0.4	$	660.4

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 and Other category consists primarily of the parent company, ~~and~~ Astec Insurance Company ("Astec Insurance" or the "captive"), a captive insurance company, and the controls and automation business, 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 loss attributable to noncontrolling 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 government assistance in 2022.

In October 2021, the ~~accounting~~FASB issued ASU 2021-08, "Business Combinations (Topic 805): Accounting for ~~franchise taxes~~Contract Assets and ~~enacted changes~~Contract Liabilities from Contracts with Customers", which requires entities to recognize and measure contract assets and contract liabilities acquired in ~~tax laws or rates and clarifies the accounting for transactions that~~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 ~~step-up in the tax~~prospective basis ~~of goodwill.~~for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company ~~adopted~~elected to early adopt this ~~new standard effective January~~guidance on April 1, ~~2021.~~2022. The adoption of this new standard ~~had an immaterial~~did not have a material impact on ~~the Company's~~its financial position, results of operations, cash flows or ~~cash flows.~~disclosures.

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 market-wide transition to alternative reference rates. The amendments are elective and are effective upon issuance through December 31, 2022. The Company intends to apply this guidance if modifications of its contracts that include LIBOR occur, which is not expected to have a material impact on the Company's consolidated financial statements.

During the first quarter of 2022, the Company 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 result of over-time revenue recognition calculation errors at one of the Company's sites which impacted the second, third and fourth quarters of 2021.

The Company assessed the materiality of these misstatements both quantitatively and qualitatively and 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, the Company is revising the previously issued consolidated financial statements for the three and nine months ended September 30, 2021 in this Form 10-Q. The Company is also disclosing the impact of the revisions on the previously filed audited Consolidated Balance Sheet as of December 31, 2021 and the opening balance sheet equity impact for December 31, 2020. As a result, the Company has corrected the misstatements as disclosed in the following tables for all impacted financial statement line items in prior periods.


	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


	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 (benefit)	(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


(in millions)	As Previously Reported		Adjustment		As Revised





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

~~CON-E-CO~~MINDS Acquisition - The Company entered into a ~~Stock~~Share Purchase Agreement, dated as of ~~July 20, 2020,~~March 22, 2022, by and between ~~Oshkosh Corporation for~~MINDS Automation Group, Inc., a leader in plant automation control systems and cloud-based data management in the ~~purchase of the CON-E-CO concrete equipment company~~asphalt industry in ~~Nebraska.~~Canada. The purchase price ~~was $13.8~~of $19.3 million ~~after adjustments, and~~ was paid in cash. The Company's preliminary 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~~$9.3 million of goodwill and $9.3 million of intangible assets primarily consisting of customer relationships (8(9 year life) and ~~trade name (3~~developed technology (7 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. Goodwill acquired is attributable to future growth opportunities provided by the acquired intellectual capital and the ability to generate cross-selling synergies. 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.~~

~~BMH Systems Acquisition~~ ~~- The Company entered into a Share Purchase Agreement, dated as of August 3, 2020, by and between BMH Systems Corporation ("St. Bruno") for the purchase of the concrete~~deliver enhanced productivity through improved 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 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 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.performance. Results of operations have been consolidated from the date of acquisition. The goodwill is not expected to be deductible for income tax purposes.


(in millions)	Amount
Cash	$	~~1.2~~1.5
~~Accounts receivable and contract assets~~Trade receivables	~~6.4~~2.7
Inventories	~~2.0~~0.7
Prepaid expenses and other assets	0.4
Property and equipment	0.2
Goodwill	~~6.3~~
~~Other assets~~	~~3.8~~9.3
Intangible assets	~~5.7~~9.3

Other long-term assets	0.5
Total assets acquired	$	~~25.4~~ 24.6
Accounts payable	(0.7)
Accrued payroll and related liabilities	(0.8)
Other current liabilities	(1.1)
Deferred income tax liabilities	(2.4)
Other long-term liabilities	(0.3)
Total liabilities assumed	~~(9.8)~~(5.3)
Total purchase price	$	~~15.6~~19.3


(in millions)	(in millions)	September 30, 2021		December 31, 2020		(in millions)	September 30, 2022		December 31, 2021
Raw materials and parts	Raw materials and parts	$	202.1	$	154.6	Raw materials and parts	$	284.8	$	216.1
Work-in-process	Work-in-process	59.2		57.3		Work-in-process	73.6		50.4
Finished goods	Finished goods	17.8		34.0		Finished goods	35.4		28.9
Used equipment	Used equipment	3.7		3.8		Used equipment	2.6		3.3
Total	Total	$	282.8	$	249.7	Total	$	396.4	$	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. 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 subsidiaries also occasionally enter into foreign currency exchange contracts to mitigate exposure to fluctuations in currency exchange rates.

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~~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.


		September 30, 2021							September 30, 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 mutual funds		$	4.5	$	—	$	4.5
Deferred compensation programs' mutual funds								Deferred compensation programs' mutual funds	$	4.0	$	—	$	4.0
Preferred stocks	Preferred stocks	0.3		—		0.3		Preferred stocks	0.3		—		0.3
Equity funds	Equity funds	3.4		—		3.4		Equity funds	0.6		—		0.6
Trading debt securities:	Trading debt securities:							Trading debt securities:
Corporate bonds	Corporate bonds	3.4		—		3.4		Corporate bonds	6.1		—		6.1
Municipal bonds	Municipal bonds	—		0.2		0.2		Municipal bonds	—		0.1		0.1
Floating rate notes	Floating rate notes	0.4		—		0.4		Floating rate notes	0.4		—		0.4
U.S. government securities	U.S. government securities	1.4		—		1.4		U.S. government securities	0.8		—		0.8
Asset-backed securities	Asset-backed securities	—		1.5		1.5		Asset-backed securities	—		5.6		5.6
Other	Other	3.5		1.1		4.6		Other	1.3		0.7		2.0
Derivative financial instruments	Derivative financial instruments	—		0.3		0.3		Derivative financial instruments	—		0.5		0.5
Total financial assets	Total financial assets	$	16.9	$	3.1	$	20.0	Total financial assets	$	13.5	$	6.9	$	20.4
Financial liabilities:	Financial liabilities:							Financial liabilities:

Deferred compensation programs liabilities		$	—	$	6.4	$	6.4
Deferred compensation programs' liabilities								Deferred compensation programs' liabilities	$	—	$	5.0	$	5.0
Total financial liabilities	Total financial liabilities	$	—	$	6.4	$	6.4	Total financial liabilities	$	—	$	5.0	$	5.0


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

Deferred compensation programs' liabilities								Deferred compensation programs' liabilities	$	—	$	7.2	$	7.2
Total financial liabilities	Total financial liabilities	$	—	$	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 September 30,				Nine Months Ended September 30,					Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	(in millions)	2021		2020		2021		2020		(in millions)	2022		2021		2022		2021
Reserve balance, beginning of the period	Reserve balance, beginning of the period	$	10.5	$	10.7	$	10.3	$	10.3	Reserve balance, beginning of the period	$	11.6	$	10.5	$	10.5	$	10.3
Warranty liabilities accrued	Warranty liabilities accrued	3.6		2.0		8.5		7.1		Warranty liabilities accrued	2.9		3.6		9.3		8.5
Warranty liabilities settled	Warranty liabilities settled	(3.6)		(2.8)		(8.3)		(7.3)		Warranty liabilities settled	(3.4)		(3.6)		(8.6)		(8.3)
Other	Other	—		0.7		—		0.5		Other	(0.2)		—		(0.3)		—
Reserve balance, end of the period	Reserve balance, end of the period	$	10.5	$	10.6	$	10.5	$	10.6	Reserve balance, end of the period	$	10.9	$	10.5	$	10.9	$	10.5

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 ~~$7.2~~$6.2 million and $5.8 million at ~~both~~ September 30, ~~2021~~2022 and December 31, ~~2020,~~2021 respectively, of which ~~$5.4~~$4.1 million and ~~$4.2~~$3.9 million were included in "Other long-term liabilities" in the Consolidated Balance Sheets at September 30, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively.

For the three months ended September 30, ~~2021,~~2022, the Company recorded an income tax ~~benefit~~expense of ~~$2.8~~$0.7 million, reflecting a ~~(43.1)%~~58.3% effective tax rate, compared to a ~~$1.2~~$2.9 million income tax benefit for the three months ended September 30, ~~2020,~~2021, reflecting a ~~(300.0)~~(47.5)% effective tax rate. The ~~change in the effective~~income tax ~~rate~~expense for the three months ended September 30, ~~2021~~2022 as compared to the benefit in the same period ~~of the~~in 2021 was primarily driven by prior year ~~is primarily due to a current year~~net discrete ~~benefit of $3.5 million from~~tax benefits that did not reoccur in the release of a valuation allowance associated with the Company's Brazilian subsidiary, partially offset by a reduced net benefit of $1.2 million from the research and development ("R&D") credit for 2021 and the recently filed 2020 R&D credit as part of the prior year consolidated corporate income tax return.

For the nine months ended September 30, 2021, the Company recorded an income tax provision of $0.4 million, reflecting a 1.5% effective tax rate, compared to a $4.5 million income tax benefit for the nine months ended September 30, 2020, reflecting a (16.7)% effective tax rate. The change in the effective tax rate for the nine months ended September 30, 2021 comparedcurrent year related to the same period of the prior year is primarily due to 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. 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%). The income tax provision increase was partially offset by the $3.5 million release of a valuation allowance associated with the Company's Brazilian subsidiary and a ~~$1.4~~research and development ("R&D") credit partially offset by the tax effect of lower pre-tax earnings.

For the nine months ended September 30, 2022, the Company recorded an income tax provision of $0.8 million, reflecting a 53.3% effective tax rate, compared to nominal expense for the nine months ended September 30, 2021. The income tax expense for the nine months ended September 30, 2022 was higher ~~equity compensation deduction.~~compared to the same period of 2021 primarily driven by prior year net discrete tax benefits that did not reoccur in the current year related to the release of a valuation allowance associated with the Company's Brazilian subsidiary, a favorable net benefit from the R&D credit and the release of reserves for uncertain tax positions associated with Astec Mobile Machinery GmbH partially offset by the tax effect of lower pre-tax earnings.

The Company's recorded liability for uncertain tax positions was ~~$10.7~~$11.3 million and ~~$9.7~~$10.8 million as of September 30, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively. The increase ~~in 2021~~ is the result of ~~$1.7~~$0.5 million of incremental reserves associated with the ~~increased R&D credit for 2021~~2022 research and the recently filed 2020 R&D credit as part of the prior year consolidated tax return filing. This increase was offset by a $0.7 million reduction from a sustained position from a foreign subsidiary whose liquidation was completed during the second quarter of 2021.development credit. The Company does not anticipate a significant change in unrecognized tax benefits due to the expiration of relevant statutes of limitations and federal, state, and foreign tax audit resolutions over the next twelve months.

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 September 30, ~~2021,~~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 ~~$2.7~~$2.2 million and ~~$2.9~~$2.4 million at September 30, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively. These arrangements expire at various dates through ~~December 2023.~~August 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 September 30, ~~2021~~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 ~~$5.3~~$2.5 million as of September 30, ~~2021, including $1.6 million of letters of credit guaranteeing certain credit facilities of the Company's Brazilian subsidiary.~~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 September 30, ~~2021.~~2022. As of September 30, ~~2021,~~2022, the Company's foreign subsidiaries are contingently liable for a total of ~~$1.2~~$1.4 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 ~~$6.7~~$6.5 million as of September 30, ~~2021.~~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~~is 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~~alleges 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~~is filed on behalf of shareholders who purchased stock of the Company between July 26, 2016 and October 22, 2018 and ~~sought~~seeks monetary damages on behalf of the purported class. ~~The Company disputed these allegations and~~On October 25, 2019, the defendants filed a ~~motion~~Motion to ~~dismiss the lawsuit on October 25, 2019.~~Dismiss. On February 19, 2021, the ~~motion~~Motion to ~~dismiss~~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. Plaintiff appealed the Motion to Dismiss and denial of its Motion to Alter or Amend the Judgment and For Leave to File the Proposed Amended Complaint ~~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 an 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 Industries, Inc. Besides a new claim based on fraudulent transfer, the allegations essentially mirror the GEFCO suit. Astec Industries, Inc. is vigorously defending this suit as well. The Company is unable to determine whether or not a future loss will be incurred due to this litigation or estimate the possible loss or range of loss, if any, at this time.

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 September 30, 2021				Three Months Ended September 30, 2020						Three Months Ended September 30, 2022								Three Months Ended September 30, 2021
(in millions)	(in millions)	Infrastructure Solutions		Materials Solutions		Total		Infrastructure Solutions		Materials Solutions			Total		(in millions)	Infrastructure Solutions		Materials Solutions		Corporate and Other		Total		Infrastructure Solutions		Materials Solutions		Corporate and Other		Total
Net Sales-Domestic:	Net Sales-Domestic:														Net Sales-Domestic:
Equipment sales	Equipment sales	$	94.4	$	37.6	$	132.0	$	73.5	$	32.7		$	106.2	Equipment sales	$	105.9	$	60.6	$	0.8	$	167.3	$	94.4	$	37.6	$	—	$	132.0

Parts and component sales	Parts and component sales	40.3		20.0		60.3		39.6		18.6			58.2		Parts and component sales	46.3		21.8		0.1		68.2		40.3		20.0		—		60.3
Service and equipment installation revenue	Service and equipment installation revenue	3.2		0.1		3.3		5.0		0.3			5.3		Service and equipment installation revenue	5.2		0.3		—		5.5		3.2		0.1		—		3.3
Used equipment sales	Used equipment sales	0.9		0.1		1.0		3.4		0.3			3.7		Used equipment sales	3.2		—		—		3.2		0.9		0.1		—		1.0
Freight revenue	Freight revenue	4.8		1.4		6.2		5.2		1.3			6.5		Freight revenue	5.3		2.1		—		7.4		4.8		1.4		—		6.2
Other	Other	(0.4)		(0.6)		(1.0)		1.6		(0.4)			1.2		Other	0.2		(2.5)		0.1		(2.2)		(0.4)		(0.6)		—		(1.0)
Total domestic revenue	Total domestic revenue	143.2		58.6		201.8		128.3		52.8			181.1		Total domestic revenue	166.1		82.3		1.0		249.4		143.2		58.6		—		201.8

Net Sales-International:	Net Sales-International:														Net Sales-International:
Equipment sales	Equipment sales	22.0		20.5		42.5		13.6		17.3			30.9		Equipment sales	23.8		17.7		0.3		41.8		20.6		21.8		—		42.4

Parts and component sales	Parts and component sales	9.1		9.7		18.8		7.2		8.8			16.0		Parts and component sales	10.1		9.6		—		19.7		8.7		10.1		—		18.8
Service and equipment installation revenue	Service and equipment installation revenue	0.8		0.6		1.4		0.6		0.2			0.8		Service and equipment installation revenue	1.0		0.9		0.1		2.0		0.8		0.6		—		1.4
Used equipment sales	Used equipment sales	0.8		0.8		1.6		0.9		0.7			1.6		Used equipment sales	0.3		1.0		—		1.3		0.8		0.8		—		1.6
Freight revenue	Freight revenue	0.4		0.4		0.8		0.4		0.4			0.8		Freight revenue	0.6		0.3		—		0.9		0.4		0.4		—		0.8
Other	Other	—		0.1		0.1		0.1		0.1			0.2		Other	—		—		0.1		0.1		—		0.1		—		0.1
Total international revenue	Total international revenue	33.1		32.1		65.2		22.8		27.5			50.3		Total international revenue	35.8		29.5		0.5		65.8		31.3		33.8		—		65.1
Total net sales	Total net sales	$	176.3	$	90.7	$	267.0	$	151.1	$	80.3		$	231.4	Total net sales	$	201.9	$	111.8	$	1.5	$	315.2	$	174.5	$	92.4	$	—	$	266.9

		Nine Months Ended September 30, 2021				Nine Months Ended September 30, 2020
(in millions)		Infrastructure Solutions		Materials Solutions		Total		Infrastructure Solutions		Materials Solutions			Total
Net Sales-Domestic:
Equipment sales		$	276.0	$	123.0	$	399.0	$	278.7	$	117.3		$	396.0

Parts and component sales		132.8		59.0		191.8		128.1		54.8			182.9
Service and equipment installation revenue		12.9		0.3		13.2		17.9		1.1			19.0
Used equipment sales		6.6		0.8		7.4		17.7		0.7			18.4
Freight revenue		15.0		4.7		19.7		15.8		4.0			19.8
Other		(0.8)		(1.5)		(2.3)		1.5		(1.0)			0.5
Total domestic revenue		442.5		186.3		628.8		459.7		176.9			636.6

Net Sales-International:
Equipment sales		78.9		54.3		133.2		48.6		44.2			92.8

Parts and component sales		30.9		25.6		56.5		21.4		24.9			46.3
Service and equipment installation revenue		2.6		1.4		4.0		2.1		0.9			3.0
Used equipment sales		0.9		2.0		2.9		2.3		1.7			4.0
Freight revenue		1.9		1.5		3.4		1.3		1.0			2.3
Other		0.3		0.3		0.6		0.2		0.3			0.5
Total international revenue		115.5		85.1		200.6		75.9		73.0			148.9
Total net sales		$	558.0	$	271.4	$	829.4	$	535.6	$	249.9		$	785.5


	Nine Months Ended September 30, 2022								Nine Months Ended September 30, 2021
(in millions)	Infrastructure Solutions		Materials Solutions		Corporate and Other		Total		Infrastructure Solutions		Materials Solutions		Corporate and Other		Total
Net Sales-Domestic:
Equipment sales	$	315.2	$	162.0	$	0.9	$	478.1	$	276.0	$	123.0	$	—	$	399.0

Parts and component sales	146.4		63.7		0.1		210.2		132.8		59.0		—		191.8
Service and equipment installation revenue	17.8		0.6		—		18.4		12.9		0.3		—		13.2
Used equipment sales	5.2		—		—		5.2		6.6		0.8		—		7.4
Freight revenue	18.1		5.9		—		24.0		15.0		4.7		—		19.7
Other	0.4		(4.1)		0.1		(3.6)		(0.8)		(1.5)		—		(2.3)
Total domestic revenue	503.1		228.1		1.1		732.3		442.5		186.3		—		628.8

Net Sales-International:
Equipment sales	67.4		50.5		1.1		119.0		77.1		55.6		—		132.7

Parts and component sales	33.4		29.4		0.1		62.9		30.5		26.0		—		56.5
Service and equipment installation revenue	2.8		2.1		0.3		5.2		2.6		1.4		—		4.0
Used equipment sales	0.5		1.6		—		2.1		0.9		2.0		—		2.9
Freight revenue	1.8		1.0		—		2.8		1.9		1.5		—		3.4
Other	—		0.2		0.1		0.3		0.3		0.3		—		0.6
Total international revenue	105.9		84.8		1.6		192.3		113.3		86.8		—		200.1
Total net sales	$	609.0	$	312.9	$	2.7	$	924.6	$	555.8	$	273.1	$	—	$	828.9


		Three Months Ended September 30,				Nine Months Ended September 30,					Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	(in millions)	2021		2020		2021		2020		(in millions)	2022		2021		2022		2021
United States	United States	$	201.8	$	181.1	$	628.8	$	636.6	United States	$	249.4	$	201.8	$	732.3	$	628.8
Canada	Canada	16.8		12.2		54.7		39.8		Canada	12.9		16.7		49.2		54.2
Australia	Australia	10.7		6.8		31.9		18.1		Australia	10.8		10.7		31.3		31.9
Africa										Africa	10.9		9.9		25.9		26.0
Europe	Europe	7.4		7.6		31.8		21.8		Europe	9.1		7.4		22.4		31.8
Africa		9.9		7.1		26.0		17.9
Brazil	Brazil	8.0		4.3		17.1		15.2		Brazil	7.7		8.0		18.5		17.1
South America										South America	4.5		2.5		17.1		11.5
Mexico	Mexico	1.3		0.2		11.7		1.6		Mexico	4.2		1.3		9.1		11.7
South America		2.5		7.2		11.5		16.3
Asia	Asia	5.5		2.5		9.2		8.1		Asia	1.5		5.5		8.6		9.2
Central America										Central America	3.9		1.6		7.5		3.4
Other	Other	3.1		2.4		6.7		10.1		Other	0.3		1.5		2.7		3.3
Total foreign	Total foreign	65.2		50.3		200.6		148.9		Total foreign	65.8		65.1		192.3		200.1
Total net sales	Total net sales	$	267.0	$	231.4	$	829.4	$	785.5	Total net sales	$	315.2	$	266.9	$	924.6	$	828.9

The Company has 2two 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 is 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 9nine 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 and Other – The Corporate and Other category consists primarily of the parent company, ~~and~~ the Company's captive insurance company, Astec Insurance, and the controls and automation business, 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~~other sites. The controls and automation business manufactures hardware and software products that are marketed independently as well as included in certain products 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.Company's other segments.


		Three Months Ended September 30, 2021								Three Months Ended September 30, 2020									Three Months Ended September 30, 2022								Three Months Ended September 30, 2021
(in millions)	(in millions)	Infrastructure Solutions		Materials Solutions		Corporate		Total		Infrastructure Solutions		Materials Solutions		Corporate		Total		(in millions)	Infrastructure Solutions		Materials Solutions		Corporate and Other		Total		Infrastructure Solutions		Materials Solutions		Corporate and Other		Total
Revenues from external customers	Revenues from external customers	$	176.3	$	90.7	$	—	$	267.0	$	151.1	$	80.3	$	—	$	231.4	Revenues from external customers	$	201.9	$	111.8	$	1.5	$	315.2	$	174.5	$	92.4	$	—	$	266.9
Intersegment sales	Intersegment sales	10.0		16.1		—		26.1		6.7		11.7		—		18.4		Intersegment sales	1.9		14.1		—		16.0		1.1		9.1		—		10.2
Segment profit (loss)		13.8		8.0		(12.8)		9.0		6.3		7.2		(11.7)		1.8
Segment Operating Adjusted EBITDA																		Segment Operating Adjusted EBITDA	17.6		13.1		(14.2)		16.5		18.3		10.7		(12.9)		16.1

		Nine Months Ended September 30, 2021								Nine Months Ended September 30, 2020									Nine Months Ended September 30, 2022								Nine Months Ended September 30, 2021
(in millions)	(in millions)	Infrastructure Solutions		Materials Solutions		Corporate		Total		Infrastructure Solutions		Materials Solutions		Corporate		Total		(in millions)	Infrastructure Solutions		Materials Solutions		Corporate and Other		Total		Infrastructure Solutions		Materials Solutions		Corporate and Other		Total
Revenues from external customers	Revenues from external customers	$	558.0	$	271.4	$	—	$	829.4	$	535.6	$	249.9	$	—	$	785.5	Revenues from external customers	$	609.0	$	312.9	$	2.7	$	924.6	$	555.8	$	273.1	$	—	$	828.9
Intersegment sales	Intersegment sales	35.4		38.9		—		74.3		25.0		26.8		—		51.8		Intersegment sales	7.0		35.8		—		42.8		4.0		19.9		—		23.9
Segment profit (loss)		46.6		27.3		(47.5)		26.4		37.7		21.7		(28.2)		31.2
Segment Operating Adjusted EBITDA																		Segment Operating Adjusted EBITDA	49.9		34.8		(36.3)		48.4		61.0		36.3		(39.8)		57.5

Three Months Ended September 30, Nine Months Ended September 30,
(in millions) 2021 2020 2021 2020
Net income attributable to controlling interest
Total profit for reportable segments $ 21.8 $ 13.5 $ 73.9 $ 59.4
Corporate expenses, net (12.8) (11.7) (47.5) (28.2)
Net loss attributable to noncontrolling interest — — — 0.1
Recapture (elimination) of intersegment profit 0.3 (0.2) 0.6 0.2
Total consolidated net income attributable to controlling interest $ 9.3 $ 1.6 $ 27.0 $ 31.5


	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2022		2021		2022		2021
Reconciliation to total consolidated net income attributable to controlling interest
Segment Operating Adjusted EBITDA	$	16.5	$	16.1	$	48.4	$	57.5
Adjustments:
Transformation program	(7.0)		(2.4)		(18.7)		(7.7)

Facility closures and reduction in force	(0.1)		(0.5)		(1.5)		(2.1)
Asset impairment	(0.4)		—		(3.4)		(0.2)
Gain on sale of property and equipment, net	0.4		0.2		0.4		0.5
Transaction costs	(0.5)		—		(1.9)		—
Interest expense, net	(0.3)		(0.1)		(0.9)		(0.2)
Depreciation and amortization	(7.3)		(7.5)		(20.9)		(22.6)
Income tax (provision) benefit	(0.7)		2.9		(0.8)		—
Net loss attributable to noncontrolling interest	0.2		—		0.2		—
(Elimination) recapture of intercompany profit	(0.1)		0.3		—		0.6
Total consolidated net income attributable to controlling interest	$	0.7	$	9.0	$	0.9	$	25.8

~~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 of 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.

The Company also has a multi-year phased implementation of a standardized enterprise resource planning ("ERP") system across the global organization underway, which will replace much of the existing disparate core financial systems. The upgraded ERP will initially convert internal operations, manufacturing, finance, human capital resources management and ~~Grow Strategic Transformation ("SFG") initiative~~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 requires substantial time and attention of management and key employees.

Costs incurred of ~~organizational integration activities. The Company has incurred $2.4~~$7.0 million and ~~$7.7~~$18.7 million ~~in incremental costs for the SFG initiative~~related to these strategic transformational initiatives in the three and nine months ended September 30, ~~2021, which~~2022, respectively, are recorded in "Selling, general and administrative expenses" in the Consolidated Statements of Operations. Costs totaling $2.4 million and $7.7 million were incurred in the three and nine months ended September 30, 2021, respectively.

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 September 30,				Nine Months Ended September 30,					Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	(in millions)	2021		2020		2021		2020		(in millions)	2022		2021		2022		2021
Restructuring charges:	Restructuring charges:									Restructuring charges:
Costs associated with closing Tacoma	Costs associated with closing Tacoma	$	0.1	$	—	$	1.1	$	—	Costs associated with closing Tacoma	$	—	$	0.1	$	0.8	$	1.1
Costs associated with closing Enid										Costs associated with closing Enid	0.1		0.4		0.7		0.4
Costs associated with closing Mequon	Costs associated with closing Mequon	—		0.7		0.6		2.1		Costs associated with closing Mequon	—		—		—		0.6
Costs associated with closing Enid		0.4		1.9		0.4		2.2
Costs associated with closing Albuquerque		—		0.3		—		1.3
Costs associated with closing AMM		—		—		—		0.3
Workforce reductions at multiple sites		—		—		—		1.3

Other restructuring charges		—		0.2		—		0.2

Total restructuring related charges	Total restructuring related charges	0.5		3.1		2.1		7.4		Total restructuring related charges	0.1		0.5		1.5		2.1

Asset impairment charges:	Asset impairment charges:									Asset impairment charges:
Airplane impairment charges (recovery)		—		(0.3)		—		2.3
Goodwill impairment charges		—		—		—		1.6

Other impairment charges	Other impairment charges	—		—		0.2		0.2		Other impairment charges	0.4		—		3.4		0.2
Total asset impairment charges	Total asset impairment charges	—		(0.3)		0.2		4.1		Total asset impairment charges	0.4		—		3.4		0.2

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)		(0.6)		(0.5)		(1.2)		Gain on sale of property and equipment, net	(0.4)		(0.2)		(0.4)		(0.5)
Total gain on sale of property and equipment, net	Total gain on sale of property and equipment, net	(0.2)		(0.6)		(0.5)		(1.2)		Total gain on sale of property and equipment, net	(0.4)		(0.2)		(0.4)		(0.5)

Restructuring, impairment and other asset charges, net	Restructuring, impairment and other asset charges, net	$	0.3	$	2.2	$	1.8	$	10.3	Restructuring, impairment and other asset charges, net	$	0.1	$	0.3	$	4.5	$	1.8


		Three Months Ended September 30,				Nine Months Ended September 30,					Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	(in millions)	2021		2020		2021		2020		(in millions)	2022		2021		2022		2021
Infrastructure Solutions	Infrastructure Solutions	$	0.5	$	2.2	$	1.5	$	5.0	Infrastructure Solutions	$	0.1	$	0.5	$	1.5	$	1.5
Materials Solutions	Materials Solutions	—		0.9		0.6		2.3		Materials Solutions	—		—		—		0.6
Corporate		—		—		—		0.1

Total restructuring related charges	Total restructuring related charges	$	0.5	$	3.1	$	2.1	$	7.4	Total restructuring related charges	$	0.1	$	0.5	$	1.5	$	2.1


		Three Months Ended September 30,				Nine Months Ended September 30,					Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	(in millions)	2021		2020		2021		2020		(in millions)	2022		2021		2022		2021
Infrastructure Solutions	Infrastructure Solutions	$	—	$	—	$	—	$	1.6	Infrastructure Solutions	$	0.4	$	—	$	2.5	$	—
Materials Solutions	Materials Solutions	—		—		0.2		0.1		Materials Solutions	—		—		—		0.2
Corporate		—		(0.3)		—		2.4
Corporate and Other										Corporate and Other	—		—		0.9		—
Total impairment charges	Total impairment charges	$	—	$	(0.3)	$	0.2	$	4.1	Total impairment charges	$	0.4	$	—	$	3.4	$	0.2


		Three Months Ended September 30,				Nine Months Ended September 30,					Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	(in millions)	2021		2020		2021		2020		(in millions)	2022		2021		2022		2021
Infrastructure Solutions	Infrastructure Solutions	$	(0.2)	$	(0.6)	$	(0.4)	$	(1.2)	Infrastructure Solutions	$	(0.4)	$	(0.2)	$	(0.4)	$	(0.4)
Materials Solutions	Materials Solutions	—		—		(0.1)		—		Materials Solutions	—		—		—		(0.1)

Total gain on sale of property and equipment, net	Total gain on sale of property and equipment, net	$	(0.2)	$	(0.6)	$	(0.5)	$	(1.2)	Total gain on sale of property and equipment, net	$	(0.4)	$	(0.2)	$	(0.4)	$	(0.5)

~~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 $0.1 million and $1.1 million of restructuring related charges during the three and nine months ended September 30, 2021, respectively, in "Restructuring, impairment and other asset charges, net" in the Consolidated Statements of Operations. Additional restructuring costs of $0.8 million were incurred during the three months ended March 31, ~~2020.~~2022. The Company recorded the Tacoma facility's land, building and certain equipment assets of $15.4 million, which are currently being actively marketed for sale, as held for sale in its Consolidated Balance Sheets at September 30, 2022.

In late 2019, the oil and gas drilling product lines produced at the Enid, Oklahoma location ("Enid") were impaired and discontinued. The Company incurred $1.9 million and $2.2 million in severance related costs during the three and nine month periods ended September 30, 2020 associated with exiting the oil and gas line of business at Enid. Additional restructuring costs of ~~$0.4~~$0.1 million and $0.7 million were incurred during the three and nine months ended September 30, ~~2021.~~2022, respectively. Enid's land and building assets totaling $5.1 million ~~are~~were included in "Assets held for sale" in the Consolidated Balance Sheets as of December 31, 2021. An impairment charge of $0.4 million was incurred during the third quarter of 2022 to record these assets at fair value less estimated costs to sell, which reduced the balance recorded at September 30, ~~2021 and December 31, 2020.~~

~~In June 2020, the Company announced the closing of the Mequon site in order~~$4.7 million. This property continues to simplify and consolidate operations. The Mequon facility ceased production operations in August 2020. Charges primarily related to inventory relocation and integration activities of $0.7 million were incurred during the three months ended September 30, 2020. Charges totaling $0.6 million and $2.1 million were recognized in the nine month periods ended September 30, 2021 and 2020, respectively.be actively marketed for sale.

In October 2020, the Company closed a transaction for the sale of Enid's 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 December 31, 2020 and~~ was settled in the first quarter of 2021. ~~The Company recorded a $1.1 million gain on the sale of this business in the third quarter of 2020 in "Other (expenses) income, net" in the Consolidated Statements of Operations.~~

In ~~January 2021,~~June 2020, the Company announced ~~plans to close~~ the ~~Tacoma facility~~closing of the Mequon site in order to simplify and consolidate operations. The ~~Tacoma~~Mequon facility ~~is currently expected to cease~~ceased production operations atin August 2020. Charges totaling $0.6 million were incurred during 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 $1.1 million of restructuring related charges primarily associated with severance and retention costs during 2021, $0.1 million of which was recorded in the threenine months ended September 30, 2021.

During the second quarter of 2022, the Company determined that certain manufacturing equipment contracted to be constructed by a third-party vendor, which had been prepaid, would not be recovered. Impairment charges of $2.1 million were recorded in "Restructuring, impairment and other asset charges, net" in the Consolidated Statements of Operations during the three months ended June 30, 2022. An additional $0.9 million of impairment charges were incurred related to abandoned in-process internally developed software that was determined to be impaired during the second quarter of 2022.

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.

During the third quarter of 2021, the Company was in the process of terminating its defined benefit pension plan, which was fully funded as of September 30, 2021. In October 2021, the Company settled its obligations under the plan by providing $5.5 million in lump sum payments to eligible participants who elected to receive them and through the purchase of annuity contracts from a highly rated insurance company for $12.2 million. The settlement of the plan resulted in excess plan assets of approximately $1.5 million, which is subject to a 50% excise tax. Management estimates that the Company will record a total non-cash pre-tax, both income and excise, charge of between $4.5 million and $5.5 million in the fourth quarter of 2021.


	Three Months Ended September 30,		Nine Months Ended September 30,
	2022	2021	2022	2021
Denominator:
Denominator for basic earnings per common share	22,837,314	22,761,203	22,824,028	22,712,894
Effect of dilutive securities	79,002	152,360	108,178	210,036
Denominator for diluted earnings per common share	22,916,316	22,913,563	22,932,206	22,922,930

Antidilutive restricted stock units excluded from the calculation of diluted earnings per share	124,229	—	32,218	52,041

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 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. 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 to reflect the correction of these errors.

~~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. While our manufacturing and business operations have remained fully operational throughout 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, increased lead times from production materials, supplies and parts 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.

~~During 2019 and 2020, we consolidated certain of our sites as a key part of these initiatives. In addition,~~ Currently, we have ~~one additional site consolidation underway~~two elements of the SFG program in 2021, as discussed above. Site consolidation costs including headcount reductions, inventory movement and facility shut-down costs are included in "Restructuring, impairment and other asset charges, net" inoperation, which include the ~~Consolidated Statements of Operations.~~

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. We anticipate incurring total costs associated with the ERP implementation in the range of $125 to $150 million, with an estimated $25 to $30 million incurred per year beginning in 2022.

Costs incurred during the three and nine months ended September 30, ~~2021,~~2022 were ~~$2.4~~$7.0 million and ~~$7.7~~$18.7 million, respectively, which represent costs directly associated with the SFG ~~initiative~~initiatives and which cannot be capitalized in accordance with U.S. GAAP. These costs are included in "Selling, general and administrative expenses" in the Consolidated Statements of Operations. Additionally, at September 30, 2022, we have capitalized $12.1 million in deferred implementation costs associated with the ERP implementation that will be amortized ratably over the remaining contract term once the ERP is ready for use, which are recorded in "Other long-term assets" in the Consolidated Balance Sheets.

MINDS Acquisition – Weentered into a Share Purchase Agreement, dated as of March 22, 2022, by and between MINDS Automation Group, Inc. ("MINDS"), a leader in plant automation control systems and cloud-based data management in the asphalt industry in Canada. The purchase price of $19.3 million was paid in cash. This acquisition provides us with a broader line of controls and automation products designed to deliver enhanced productivity through improved equipment performance for our customers.

COVID-19 Pandemic – Our business has been significantly affected by the contributory effects of the COVID-19 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. The COVID-19 pandemic and its contributory effect on the economy may continue to negatively disrupt our business and results of operations in the future. The ongoing impact of the COVID-19 pandemic on our operations and the markets we serve remains uncertain due to constantly evolving developments and cannot be accurately predicted.

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. The Tacoma facility's land, building and certain equipment assets of $15.4 million, which are currently being actively marketed for sale, are included in "Assets held for sale" in the Consolidated Balance Sheets at September 30, 2022.

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 similar products produced and sold by a number of other manufacturers and ~~dealers that produce and sell similar products.~~dealers.

We ~~ended 2020 with a strong~~experienced continual strengthening of our backlog of orders throughout 2021, which has ~~grown throughout 2021~~continued to grow during the first nine months of 2022 across our global ~~organization as well as in both the Infrastructure Solutions and Materials Solutions segments.~~organization. The backlog of orders as of September 30, ~~2021~~2022 was ~~$620.5~~$969.0 million compared to ~~$218.5~~$620.5 million as of September 30, ~~2020,~~2021, an increase of ~~$402.0~~$348.5 million or ~~184.0%~~56.2%. Increased orders ~~were~~are driven by (i) the continuation of the pent-up demand experienced in 2021 influenced by both customer retail and dealer inventory replenishment, ~~following~~(ii) ongoing economic uncertainty ~~in 2020 as a result of COVID-19 as well as in anticipation of future~~and longer lead times related to higher demand and (iii) the infrastructure investment by the United States' ~~government. Additionally,~~government under the Infrastructure Investment and Jobs Act ("IIJA") enacted in November 2021. In addition, we are continuing to experience ~~slower~~constrained production cycles due to ~~manufacturing labor shortages and~~ 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 ~~was subsequently further extended through December 3, 2021.~~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

Significant portions of our revenues from the Infrastructure Solutions segment relate to the sale of equipment involved in the production, handling, recycling or application of asphalt mix. Liquid asphalt is a by-product of oil refining. An increase or decrease in the price of oil impacts the cost of asphalt, which is likely to alter demand for asphalt and therefore affect demand for certain of our products. While increasing oil prices may have a negative financial impact on many of our customers, our equipment can use a significant amount of ~~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~~Oil prices increased throughout the prior year and entering 2022. Although stabilizing in 2022, oil prices ~~have increased throughout 2021, its~~continue to remain at relatively high levels with price volatility ~~makes~~making 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 nine months~~current macroeconomic environment, including the ongoing impact of ~~2021,~~the conflict in Ukraine, we anticipate that oil prices ~~have increased and 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~~remain at relatively high levels throughout the remainder of ~~2021.~~2022.

Steel is a major component of our equipment. ~~With a drop in~~Driven by supply ~~similar to oil,~~constraints, steel prices ~~began increasing in the latter part of 2020, continuing~~increased throughout the ~~first nine months of 2021 and into Q4. As a result, we have experienced a rising cost of steel throughout 2021.~~prior year. We anticipate ~~the~~that steel demand will remain ~~strong~~relatively steady through the ~~remainder~~end of ~~2021 driving continued price inflation. In response,~~2022, driven by the IIJA domestically and impacted by international production capacity being restricted by the conflict in Ukraine. However, we have observed a recent slowing in market demand and reduced lead times as buyers are continuing to restrict purchases to immediate needs. As a result, while steel prices have stabilized, they continue to ~~utilize~~remain at historically high levels. We anticipate that trend will remain consistent through the balance of 2022 and heading into 2023. We continue to employ flexible strategies ~~that include forward-looking contracts and advanced steel purchases~~ to ensure supply and minimize the impact of price volatility. ~~Constraints on~~Potential ongoing constraints in the supply of certain steel ~~may also put pressure on~~products will continue pressuring the availability of other components 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 and margins.

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 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. 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.

Net sales for the third quarter of ~~2021~~2022 were ~~$267.0~~$315.2 million compared to ~~$231.4~~$266.9 million for the third quarter of ~~2020,~~2021, an increase of ~~$35.6~~$48.3 million or ~~15.4%~~18.1%. The increase in net sales was primarily driven ~~by:~~by changes in the volume, pricing and mix of sales that generated increases in (i) ~~$37.6 million higher~~ equipment sales ~~(ii) $6.0~~of $34.7 million, ~~higher~~(ii) parts and component sales ~~and~~of $8.8 million, (iii) $3.3 million of net incremental sales from acquired businesses. These increases were partially offset by reduced sales from the exit of our Enid oil and gas drilling product lines of $9.3 million and $0.8 million of lower service and equipment installation ~~sales.~~revenue of $2.8 million, (iv) used equipment sales of $1.9 million and (v) freight revenue of $1.3 million partially offset by decreased other revenue of $1.2 million primarily driven by increased utilization of our interest subsidy programs offered to certain of our dealer customers. Included in these net increases is $1.5 million of incremental net sales from an acquired business. Sales reported by our foreign subsidiaries in U.S. dollars for the third quarter of ~~2021~~2022 would have been ~~$3.8~~$6.7 million ~~lower~~higher had third quarter ~~2021~~2022 foreign exchange rates been the same as third quarter ~~2020~~2021 rates.

Net sales for the first nine months of ~~2021~~2022 were ~~$829.4~~$924.6 million compared to ~~$785.5~~$828.9 million for the first nine months of ~~2020,~~2021, an increase of ~~$43.9~~$95.7 million or ~~5.6%~~11.5%. The increase in net sales was primarily driven ~~by:~~by changes in the volume, pricing and mix of sales that generated increases in (i) ~~$33.1 million of net incremental sales from acquired businesses, (ii) $29.4 million higher~~ equipment sales ~~and (iii) $17.7~~of $65.4 million, ~~higher~~(ii) parts and component ~~sales. These increases were~~sales of $24.8 million, (iii) service and equipment installation revenue of $6.4 million and (iv) freight revenue of $3.7 million partially offset ~~by: (i) reduced sales from the exit of our Enid oil and gas drilling product lines of $24.2 million, (ii) lower~~by decreased used equipment sales of ~~$7.1 million and (iii) $4.2~~$3.0 million. Included in these net increases is $2.7 million of ~~lower service and equipment installation sales.~~incremental net sales from an acquired business. Sales reported by our foreign subsidiaries in U.S. dollars for the first nine months of ~~2021~~2022 would have been ~~$12.5~~$13.5 million ~~lower~~higher had the first nine months of ~~2021~~2022 foreign exchange rates been the same as the first nine months of ~~2020~~2021 rates.

Domestic sales for the third quarter of ~~2021~~2022 were ~~$201.8~~$249.4 million or ~~75.6%~~79.1% of consolidated net sales compared to ~~$181.1~~$201.8 million or ~~78.3%~~75.6% of consolidated net sales for the third quarter of ~~2020,~~2021, an increase of ~~$20.7~~$47.6 million or ~~11.4%~~23.6%. Domestic sales increased primarily due to: (i) ~~$26.2~~$35.3 million higher equipment sales (ii) ~~$2.9 million of net incremental sales from acquired businesses and (iii) $2.8~~$7.9 million higher parts and component ~~sales.~~sales, (iii) $2.2 million higher service and equipment installation revenue, (iv) $2.2 million higher used equipment sales and (v) $1.2 million higher freight revenue. These increases were partially offset ~~by: (i) reduced~~by decreased other revenue of $1.2 million primarily driven by higher utilization of our interest subsidy programs offered to certain of our dealer customers. Included in these increases is $1.0 million of incremental net sales from ~~the exit of our Enid oil and gas drilling product lines of $8.9 million and $1.5 million of lower service and equipment installation sales.~~an acquired business.

Domestic sales for the first nine months of ~~2021~~2022 were ~~$628.8~~$732.3 million or ~~75.8%~~79.2% of consolidated net sales compared to ~~$636.6~~$628.8 million or ~~81.0%~~75.9% of consolidated net sales for the first nine months of ~~2020, a decrease~~2021, an increase of ~~$7.8~~$103.5 million or ~~1.2%~~16.5%. Domestic sales ~~decreased~~increased primarily due to: (i) ~~reduced~~$79.1 million higher equipment sales ~~from the exit of our Enid oil~~(ii) $18.4 million higher parts and ~~gas drilling product lines of $23.1~~component sales, (iii) $5.2 million ~~(ii)~~higher service and equipment installation revenue and (iv) $4.3 million higher freight revenue. These increases were partially offset by lower used equipment sales of ~~$5.9 million, (iii)~~

International sales for the third quarter of ~~2021~~2022 were ~~$65.2~~$65.8 million or ~~24.4%~~20.9% of consolidated net sales compared to ~~$50.3~~$65.1 million or ~~21.7%~~24.4% of consolidated net sales for the third quarter of ~~2020,~~2021, an increase of ~~$14.9~~$0.7 million or ~~29.6%~~1.1%. International sales increased primarily due ~~to: (i) higher equipment sales of $11.4 million mainly from COVID-19 related temporary site closures in the prior year, (ii) $3.1 million of~~to higher parts and components sales and ~~(iii) higher~~ service and equipment installation revenue of $0.9 million and $0.6 million, respectively. These increases were partially offset by lower new equipment sales of ~~$0.7~~$0.6 million. Included in these increases is $0.5 million of incremental net sales from an acquired business.

International sales for the first nine months of ~~2021~~2022 were ~~$200.6~~$192.3 million or ~~24.2%~~20.8% of consolidated net sales compared to ~~$148.9~~$200.1 million or ~~19.0%~~24.1% of consolidated net sales for the first nine months of ~~2020, an increase~~2021, a decrease of ~~$51.7~~$7.8 million or ~~34.7%~~3.9%. International sales ~~increased~~decreased primarily due ~~to: (i) higher~~to $13.7 million lower equipment sales ~~of $34.5~~partially offset by $6.4 million ~~mainly from COVID-19 related temporary site closures in the prior year, (ii) $10.2 million of~~ higher parts and ~~components~~component sales. Included in these net increases is $1.6 million of incremental net sales ~~and (iii) net incremental sales of $7.1 million~~ from an acquired ~~businesses.~~business.

~~Consolidated gross~~Gross profit ~~increased $12.1~~for the third quarter of 2022 was $65.4 million or ~~24.1%~~20.7% of net sales as compared to ~~$62.3~~$61.9 million or 23.2% of net sales for the third quarter of 2021, ~~compared to $50.2~~an increase of $3.5 million ~~for the third quarter of 2020. Gross profit as a percentage of sales increased 160 basis points to 23.3% for the third quarter of 2021 compared to 21.7% for the third quarter of 2020 due to~~or 5.7%. The increase was primarily driven by net favorable volume, pricing ~~realization~~ and ~~improved sales volumes/~~mix ~~combined with manufacturing efficiencies,~~that generated $38.7 million higher gross profit. These increases were partially offset by ~~inflation.~~the impact of inflation on materials, labor and overhead of $29.0 million and manufacturing inefficiencies of $6.8 million largely due to logistics and manufacturing throughput disruptions.

~~Consolidated gross~~Gross profit ~~increased $14.6~~for the first nine months of 2022 was $192.1 million or ~~8.0%~~20.8% of net sales as compared to ~~$197.8~~$196.2 million or 23.7% of net sales for the first nine months of 2021, ~~compared to $183.2~~a decrease of $4.1 million ~~for~~or 2.1%. The decrease was primarily driven by the ~~first nine months~~impact of ~~2020. Gross profit as a percentage~~inflation on materials, labor and overhead of ~~sales increased 50 basis points to 23.8% for the first nine months~~$88.8 million and manufacturing inefficiencies of ~~2021 compared to 23.3% for the first nine months of 2020 primarily~~$7.8 million largely due to ~~increased pricing realized in the third quarter of 2021,~~logistics and manufacturing throughput disruptions. These decreases were partially offset by ~~inflation.~~the impact of net favorable volume, pricing and mix that generated $91.5 million higher gross profit.

Selling, general and administrative expenses increased ~~$5.4~~$6.4 million, or ~~12.5%~~13.2%, to $55.0 million or 17.4% of net sales for the third quarter of 2022, compared to $48.6 million or 18.2% of net sales for the third quarter of 2021 ~~compared to $43.2 million or 18.7% of net sales for the third quarter of 2020~~ primarily due toto: (i) $4.6 million increased costs ~~for centralization and infrastructure efforts~~related to our SFG transformation program, (ii) increased consulting fees of $1.1 million, (iii) incremental expenses associated with ~~our transformation initiatives, (ii)~~the acquisition of MINDS that was completed in April 2022 of $0.8 million, (iv) increased travel costs due to the return of ~~higher technology~~in-person business activities of $0.6 million and ~~software licensing costs, (iii) $0.8~~(v) $0.5 million of ~~incremental expenses for acquired businesses~~acquisition and ~~(iv) $0.6 million of increased travel expenses as certain limited travel activities have resumed.~~integration related costs. These increases were partially offset by ~~approximately $0.6~~lower depreciation and amortization expense of $0.9 million and reduced expenses related to closing a site location of ~~lower trade show and promotional expenses.~~$0.7 million.

Selling, general and administrative expenses increased ~~$18.1~~$13.1 million, or ~~13.9%~~8.8%, to $161.4 million or 17.5% of net sales for the first nine months of 2022, compared to $148.3 million or 17.9% of net sales for the first nine months of 2021 ~~compared~~primarily due to: (i) $11.0 million increased costs related to ~~$130.2~~our SFG transformation program, (ii) $3.4 million of exhibit, promotional and travel costs due to the return of in-person industry conferences and business activities, (iii) $1.9 million of acquisition and integration related costs primarily associated with the acquisition of MINDS and (iv) incremental expenses associated with MINDS of $1.7 million. These increases were partially offset by: (i) lower depreciation and amortization expense of $2.7 million, (ii) reduced expenses related to closing a site location of $1.5 million and (iii) lower net payroll and employee benefit costs of $2.0 million driven by lower health insurance claims experience of $7.7 million and reduced deferred compensation program costs associated with our stock price changes of $1.3 million which were offset by increased headcount throughout our organization.

Research and development expenses increased $1.8 million or ~~16.6%~~26.9% to $8.5 million in the third quarter of ~~net sales~~2022 from $6.7 million in the third quarter of 2021. Research and development expenses increased $3.0 million or 15.0% to $23.0 million for the first nine months of ~~2020~~2022 from $20.0 million for the first nine months of 2021. Increased research and development costs were primarily ~~due to: (i) increased costs for centralization and infrastructure efforts associated with our transformation initiatives, (ii) $7.2 million of~~driven by higher ~~technology and software licensing~~prototype materials costs and (iii) $5.4 million of incremental expenses for acquired businesses. These increases were partially offset by decreases of $6.1 million for reduced expenses associated with closed locations and $5.8 million of lower trade show and promotionalincreased personnel-related expenses.


		Three Months Ended September 30,				Nine Months Ended September 30,					Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	(in millions)	2021		2020		2021		2020		(in millions)	2022		2021		2022		2021
Restructuring charges:	Restructuring charges:									Restructuring charges:
Costs associated with closing Tacoma	Costs associated with closing Tacoma	0.1		$	—	1.1		$	—	Costs associated with closing Tacoma	$	—	$	0.1	$	0.8	$	1.1
Costs associated with closing Enid										Costs associated with closing Enid	0.1		0.4		0.7		0.4
Costs associated with closing Mequon	Costs associated with closing Mequon	—		$	0.7	0.6		2.1		Costs associated with closing Mequon	—		—		—		0.6
Costs associated with closing Enid		0.4		1.9		0.4		2.2
Costs associated with closing Albuquerque		—		0.3		—		1.3
Costs associated with closing AMM		—		—		—		0.3
Workforce reductions at multiple sites		—		—		—		1.3

Other restructuring charges		—		0.2		—		0.2

Total restructuring related charges	Total restructuring related charges	0.5		3.1		2.1		7.4		Total restructuring related charges	0.1		0.5		1.5		2.1

Asset impairment charges:	Asset impairment charges:									Asset impairment charges:
Airplane impairment charges (recovery)		—		(0.3)		—		2.3
Goodwill impairment charges		—		—		—		1.6

Other impairment charges	Other impairment charges	—		—		0.2		0.2		Other impairment charges	0.4		—		3.4		0.2
Total asset impairment charges	Total asset impairment charges	—		(0.3)		0.2		4.1		Total asset impairment charges	0.4		—		3.4		0.2

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)		(0.6)		(0.5)		(1.2)		Gain on sale of property and equipment, net	(0.4)		(0.2)		(0.4)		(0.5)
Total gain on sale of property and equipment, net	Total gain on sale of property and equipment, net	(0.2)		(0.6)		(0.5)		(1.2)		Total gain on sale of property and equipment, net	(0.4)		(0.2)		(0.4)		(0.5)

Restructuring, impairment and other asset charges, net	Restructuring, impairment and other asset charges, net	$	0.3	$	2.2	$	1.8	$	10.3	Restructuring, impairment and other asset charges, net	$	0.1	$	0.3	$	4.5	$	1.8

~~For~~Our income tax expense for the third quarter of ~~2021, we recorded an income tax benefit of $2.8~~2022 was $0.7 million compared to an income tax benefit of ~~$1.2~~$2.9 million for the third quarter of ~~2020.~~2021. Our effective income tax rate was ~~(43.1)~~58.3% for the third quarter of 2022 compared to (47.5)% for the third quarter of ~~2021~~2021. The income tax expense for the three months ended September 30, 2022 as compared to ~~(300.0)% for the third quarter of 2020. The change~~benefit in ~~effective tax rate for the third quarter of 2021 compared to~~ the same period ~~of the~~in 2021 was primarily driven by prior year ~~is primarily due to a~~net discrete tax benefits that did not reoccur in the current year ~~discrete benefit of $3.5 million from~~related to the release of a valuation allowance associated with ~~the Company's~~our Brazilian subsidiary ~~partially offset by~~and a ~~reduced net benefit of $1.2 million from the~~ research and development ("R&D") credit ~~for 2021 and~~partially offset by the ~~recently filed 2020 R&D credit as part~~tax effect of ~~the prior year consolidated corporate income tax return.~~lower pre-tax earnings.

~~The~~Our income tax ~~provision~~expense for the first nine months of ~~2021~~2022 was ~~$0.4~~$0.8 million, reflecting a 53.3% effective tax rate, compared to ~~an income tax benefit of $4.5 million~~nominal expense for the first nine months of ~~2020. Our effective~~2021. The income tax ~~rate was 1.5% for the first nine months of 2021 compared to (16.7)% for the first nine months of 2020. The change in the effective tax rate~~expense for the nine months ended September 30, ~~2021~~2022 was higher compared to the same period of ~~the~~2021 primarily driven by prior year ~~is primarily due to a~~ net discrete tax ~~benefit of $9.5 million resulting from provisions of the Coronavirus Aid, Relief and Economic Security Act ("CARES Act")~~benefits that did not reoccur in the ~~prior year. Among other provisions,~~current year related to 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%). The income tax provision increase was partially offset by the $3.5 million release of a valuation allowance associated with ~~the Company's~~our Brazilian subsidiary, a favorable net benefit from the R&D credit and ~~a $1.4 million higher equity compensation deduction.~~the release of reserves for uncertain tax positions associated with Astec Mobile Machinery GmbH partially offset by the tax effect of lower pre-tax earnings.

The backlog of orders as of September 30, ~~2021~~2022 was ~~$620.5~~$969.0 million compared to ~~$218.5~~$620.5 million as of September 30, ~~2020,~~2021, an increase of ~~$402.0~~$348.5 million or ~~184.0%~~56.2%. Domestic backlog increased $304.1 million or 59.8% to $812.7 million and international ~~backlogs~~backlog increased ~~$357.3~~$44.4 million or ~~236.2% and $44.7 million or 66.5%, respectively.~~39.7% to $156.3 million. The backlog increased ~~$192.6~~$258.8 million to ~~$341.4~~$600.2 million in the Infrastructure Solutions segment and increased ~~$209.4~~$87.2 million to ~~$279.1~~$366.3 million in the Materials Solutions segment. The Corporate and Other backlog represents our controls and automation business and totaled $2.5 million as of September 30, 2022. Increased orders were driven by (i) the continuation of the pent-up demand experienced in 2021 influenced by both customer retail and dealer inventory replenishment, ~~following~~(ii) ongoing economic uncertainty ~~in 2020 as a result of COVID-19 as well as in anticipation of future~~and longer lead times related to higher demand and (iii) the infrastructure investment


		Three Months Ended September 30,				$ Change				% Change			Three Months Ended September 30,							$ Change		% Change
(in millions)	(in millions)	2021		2020			(in millions)		2022					2021
Infrastructure Solutions	Infrastructure Solutions	$	176.3	$	151.1		$	25.2					16.7		%	Infrastructure Solutions	$	201.9	$	174.5	$	27.4		15.7	%
Materials Solutions	Materials Solutions	90.7		80.3		10.4				13.0	%	Materials Solutions	111.8					92.4		19.4		21.0	%
Corporate and Other												Corporate and Other	1.5					—		1.5		100.0	%

Sales in this segment were ~~$176.3~~$201.9 million for the third quarter of ~~2021~~2022 compared to ~~$151.1~~$174.5 million for the same period in ~~2020,~~2021, an increase of ~~$25.2~~$27.4 million or ~~16.7%~~15.7%. The increase was primarily driven by favorable net volume, pricing and the mix of sales that generated increased (i) new equipment sales of $14.7 million, (ii) parts and component sales of $7.4 million, (iii) service and equipment installation revenue of $2.2 million, (iv) used equipment sales of $1.8 million, (v) freight revenue of $0.7 million and (vi) other revenue of $0.6 million.

Domestic sales for the Infrastructure Solutions segment increased ~~$14.9~~$22.9 million or ~~11.6%~~16.0% for the third quarter of ~~2021~~2022 compared to the same period in ~~2020 driven by:~~2021 primarily due to (i) increased new equipment sales of ~~$21.7~~$11.5 million, (ii) ~~$2.9 million of net incremental sales from acquisitions and (iii)~~ increased parts and component sales of ~~$1.3 million. These increases were partially offset by $8.9~~$6.0 million, (iii) increased used equipment sales of ~~sales in the prior year associated with the exited Enid business, and $1.3~~$2.3 million, ~~of lower~~(iv) increased service and equipment installation ~~sales.~~ sales of $2.0 million, (v) increased other revenue of $0.6 million and (vi) increased freight revenue of $0.5 million.

International sales for the Infrastructure Solutions segment increased ~~$10.3~~$4.5 million or ~~45.2%~~14.4% for the third quarter of ~~2021~~2022 compared to the same period in ~~2020~~2021 primarily due to increased new equipment ~~sales of $8.2 million~~ and ~~increased~~ parts and component sales of ~~$2.2~~$3.2 million ~~related to the recovery from COVID-19 related business disruptions in the prior year.~~and $1.4 million, respectively. These increases were partially offset by lower used equipment sales of $0.5 million.

Sales in this segment were ~~$90.7~~$111.8 million for the third quarter of ~~2021~~2022 compared to ~~$80.3~~$92.4 million for the same period in ~~2020,~~2021, an increase of ~~$10.4~~$19.4 million or ~~13.0%~~21.0%. The increase was primarily driven by favorable net volume, pricing and the mix of sales that generated increased (i) new equipment sales of $18.9 million, (ii) parts and component sales of $1.3 million, (iii) freight revenue of $0.6 million and (iv) service and equipment installation revenue of $0.5 million. These increases were partially offset by decreased other revenue of $2.0 million primarily driven by increased utilization of our interest subsidy programs offered to certain of our dealer customers.

International sales for the Materials Solutions segment ~~increased $4.6~~decreased $4.3 million or ~~16.7%~~12.7% for the third quarter of ~~2021~~2022 compared to the same period in ~~2020 driven by higher~~2021 primarily due to decreased new equipment ~~parts and components and service and equipment installation~~ sales ~~which increased 17.1% for the third quarter~~ of ~~2021 compared to the same period in 2020 related to the recovery from COVID-19 related temporary site closures in the prior year.~~$4.1 million.


		Nine Months Ended September 30,				$ Change				% Change			Nine Months Ended September 30,							$ Change		% Change
(in millions)	(in millions)	2021		2020			(in millions)		2022					2021
Infrastructure Solutions	Infrastructure Solutions	$	558.0	$	535.6		$	22.4					4.2		%	Infrastructure Solutions	$	609.0	$	555.8	$	53.2		9.6	%
Materials Solutions	Materials Solutions	271.4		249.9		21.5				8.6	%	Materials Solutions	312.9					273.1		39.8		14.6	%
Corporate and Other												Corporate and Other	2.7					—		2.7		100.0	%

Sales in this segment were ~~$558.0~~$609.0 million for the first nine months of ~~2021~~2022 compared to ~~$535.6~~$555.8 million for the same period in ~~2020,~~2021, an increase of ~~$22.4~~$53.2 million or ~~4.2%~~9.6%. The increase was primarily driven by favorable net volume, pricing and the mix of sales that generated increased (i) new equipment sales of $29.5 million, (ii) parts and component sales of $16.5 million, (iii) service and equipment installation revenue of $5.1 million and (iv) freight revenue of $3.0 million. These increases were partially offset by lower used equipment sales of $1.8 million.

Domestic sales for the Infrastructure Solutions segment ~~decreased $17.2~~increased $60.6 million or ~~3.7%~~13.7% for the first nine months of ~~2021~~2022 compared to the same period in ~~2020 driven by:~~2021 primarily due to (i) ~~$23.1 million of sales in the prior year associated with the exited Enid business, (ii) reduced~~increased new equipment sales of ~~$10.3~~$39.2 million, ~~largely due to lower production throughput from labor shortages~~(ii) increased parts and ~~supply chain constraints, (iii) reduced used equipment~~component sales of ~~$6.0~~$13.6 million, ~~(iv) lower~~(iii) increased service and equipment installation sales of ~~$4.5~~$4.9 million and ~~lower~~(iv) increased freight revenue of ~~$1.8~~$3.1 million. These ~~decreases~~increases were partially offset by ~~$26.0 million~~lower used equipment sales of ~~net incremental sales from acquisitions and $3.3 million of higher parts and components sales.~~ $1.4 million.

Sales in this segment were ~~$271.4~~$312.9 million for the first nine months of ~~2021~~2022 compared to ~~$249.9~~$273.1 million for the same period in ~~2020,~~2021, an increase of ~~$21.5~~$39.8 million or ~~8.6%~~14.6%. The increase was primarily driven by favorable net volume, pricing and the mix of sales that generated increased new equipment and parts and component sales of $33.9 million and $8.1 million, respectively. These increases were partially offset by decreased other revenue of $2.7 million primarily driven by increased utilization of our interest subsidy programs offered to some of our dealer customers.

Domestic sales for the Materials Solutions segment increased by ~~$9.4~~$41.8 million or ~~5.3%~~22.4% for the first nine months of ~~2021~~2022 compared to the same period in ~~2020, which was~~2021, driven by increased new equipment ~~sales of $5.7 million~~ and ~~increased~~ parts and component sales of ~~$4.2~~$39.0 million and $4.7 million, respectively. These increases were partially offset by decreased other revenue of $2.6 million primarily driven by increased utilization of our interest subsidy programs offered to certain of our dealer customers and decreased used equipment sales $0.8 million.

International sales for the Materials Solutions segment ~~increased $12.1~~decreased $2.0 million or ~~16.6%~~2.3% for the first nine months of ~~2021~~2022 compared to the same period in ~~2020~~2021 primarily due to ~~increased~~lower new equipment sales and freight revenue of ~~$10.1~~$5.1 million ~~in part related to COVID-19 related temporary site closures in the prior year.~~ and $0.5 million, respectively, partially offset by increased parts and component sales of $3.4 million.

Three Months Ended September 30, $ Change % Change
(in millions) 2021 2020
Infrastructure Solutions $ 13.8 $ 6.3 $ 7.5 119.0 %
Materials Solutions 8.0 7.2 0.8 11.1 %
Corporate (12.8) (11.7) (1.1) (9.4) %
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 is 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 11. "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 a reconciliation of Segment Operating Adjusted EBITDA to total consolidated net income attributable to controlling interest.

Infrastructure Solutions segment: Segment ~~profit~~Operating Adjusted EBITDA for the Infrastructure Solutions segment was ~~$13.8~~$17.6 million for the third quarter of 2022 compared to $18.3 million for the same period in 2021, a decrease of $0.7 million or 3.8%. The decrease in Segment Operating Adjusted EBITDA resulted primarily from the impact of higher inflation on materials, labor and overhead costs of $18.5 million, manufacturing inefficiencies of $4.1 million largely due to logistics and manufacturing throughput disruptions, increased general and administrative costs of $2.3 million and higher research and development costs of $1.0 million. These increased costs were partially offset by the impact of favorable net volume, pricing and mix that generated $24.4 million higher gross profit and reduced expenses related to closed site locations of $0.7 million.

Materials Solutions segment: Segment Operating Adjusted EBITDA for the Materials Solutions segment was $13.1 million for the third quarter of 2022 compared to $10.7 million for the same period in 2021, an increase of $2.4 million or 22.4%. The increase in Segment Operating Adjusted EBITDA between periods resulted primarily from the impact of favorable net volume, pricing and mix that generated $14.2 million higher gross profit and lower general and administrative costs of $1.2 million. These increases were partially offset by the impact of higher inflation on materials, labor and overhead costs of $10.5 million and manufacturing inefficiencies of $2.4 million largely due to logistics and manufacturing throughput disruptions.

Infrastructure Solutions segment: Segment profit for the Infrastructure Solutions segment was $46.6 million for the first nine months of 2021 compared to $37.7 million for the same period in 2020, an increase of $8.9 million or 23.6%. Segment profits were favorably impacted by an increase in gross profit of $7.9 million due to a 50 basis point increase in gross margins between periods (22.9% and 22.4% for the first nine months of 2021 and 2020, respectively) and a decrease in restructuring, impairment, and other charges of $4.3 million. This was partially offset by increased general and administrative expenses and inflation.

Materials Solutions segment: Segment profit for the Materials Solutions segment was $27.3 million for the first nine months of 2021 compared to $21.7 million for the same period in 2020, an increase of $5.6 million or 25.8%. The increase in segment profits between periods resulted from an increase in gross profit of $7.0 million due a 60 basis point increase in gross margins inclusive of government subsidies received in an international market. These increases were partially offset by increased general and administrative and research and development expenses and the impact of inflation.

Infrastructure Solutions segment: Segment Operating Adjusted EBITDA for the Infrastructure Solutions segment was $49.9 million for the first nine months of 2022 compared to $61.0 million for the same period in 2021, a decrease of $11.1 million or 18.2%. The decrease in Segment Operating Adjusted EBITDA resulted primarily from the impact of higher inflation on materials, labor and overhead costs of $55.1 million, increased general and administrative costs of $6.3 million and manufacturing inefficiencies of $3.8 million largely due to logistics and manufacturing throughput disruptions. Incorporated in these increased costs is a $3.5 million impact of annual incentive compensation, which was recorded in Corporate and Other in the prior year period and has been reflected in the Infrastructure Solutions segment in the current year. These increased costs were partially offset by the impact of favorable net volume, pricing and mix that generated $54.1 million higher gross profit and reduced expenses related to closed site locations of $1.5 million.

Materials Solutions segment: Segment Operating Adjusted EBITDA for ~~centralization~~the Materials Solutions segment was $34.8 million for the first nine months of 2022 compared to $36.3 million for the same period in 2021, a decrease of $1.5 million or 4.1%. The decrease in Segment Operating Adjusted EBITDA resulted primarily from the impact of higher inflation on materials, labor and ~~infrastructure efforts associated with our transformation initiatives, including~~overhead costs of $33.7 million, increased general and administrative costs of $1.2 million and manufacturing inefficiencies of $3.8 million due to supply chain and logistics disruptions. Incorporated in these increased costs is a $1.5 million ~~out-of-period expense~~impact of annual incentive compensation, which was recorded ~~during the first quarter of 2021 for certain vendor hosted software licensing fees for contract costs incurred~~in Corporate and Other in the ~~fourth quarter of 2020,~~prior year period and ~~$6.8 million of~~has been reflected in the Materials Solutions segment in the current year. These increased ~~income tax expense~~costs were partially offset by ~~$2.3~~the impact of favorable net volume, pricing and mix that generated $37.3 million ~~of airplane impairment charges recorded in 2020 that did not recur in 2021.~~higher gross profit.

Corporate and Other: Corporate and Other operations had net expenses of $36.3 million for the first nine months of 2022 compared to $39.8 million for the first nine months of 2021, a decrease of $3.5 million or 8.8%. The decrease in expenses was driven by: (i) lower net annual incentive compensation of $3.5 million due to $5.0 million that was recorded within Infrastructure Solutions and Materials Solutions in the current year as compared to at Corporate in the prior year period, (ii) reduced deferred compensation program cost driven by our stock price changes of $1.3 million and (iii) reduced consulting fees of $1.2 million. These decreases were partially offset by increases in payroll and share-based compensation expenses of $2.3 million.

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. At September 30, 2022, we had total cash, cash equivalents and restricted cash of $20.8 million. Cash and cash equivalents available for operating purposes was $18.4 million, which was predominantly held by our foreign subsidiaries and is considered to be indefinitely invested in those jurisdictions. In April 2022, we acquired MINDS with a total cash consideration paid to the selling shareholders of $19.3 million funded from cash on hand. 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, our variable cash uses may include the payment of our quarterly cash dividend, financing other strategic initiatives of our business, including, but not limited to, the SFG transformation, strategic acquisitions and 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 on our operating results, 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, available creditshare repurchases under our ~~credit facilities and access to capital markets, if necessary. Capital expenditures are generally for machinery, equipment and facilities used in the production of our various products.~~share repurchase authorization. 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 our existing business 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 ~~$164.6~~$1.2 million ~~of cash available for operating purposes as of September 30, 2021, of which $28.0 million was held by our foreign subsidiaries. We did not have any~~in outstanding borrowings on the Credit Facility at September 30, ~~2021 or~~2022 and no outstanding borrowings at December 31, ~~2020. In addition, no borrowings were made under the Credit Facility during~~ 2021. Our outstanding letters of credit totaling ~~$5.3~~$2.5 million decreased borrowing availability to ~~$144.7~~$146.3 million under the ~~Credit Facility~~revolving credit facility as of September 30, ~~2021.~~2022. We anticipate continuing to utilize the Credit Facility with more frequency in the near-term to support our domestic working capital needs in response to supply chain disruptions. The Credit Facility agreement contains certain financial covenants, including provisions concerning required levels of annual net income and minimum tangible net worth. Failure to satisfy these covenants could result in the accelerated repayment of our indebtedness. We were in compliance with the financial covenants of the ~~agreement~~Credit Facility at September 30, ~~2021.~~2022. The Credit Facility expires on December 29, 2023.

Certain of our international subsidiaries in South Africa, Australia, Brazil, Canada and the United Kingdom each have separate credit facilities with local financial institutions primarily 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 also enters into order anticipation agreements ~~with a local bank~~ on a periodic basis. Both the outstanding borrowings under the credit facilities of the international subsidiaries and the order anticipation agreements are recorded in "Short-term debt" onin our Consolidated Balance Sheets. Each of the credit facilities are generally guaranteed by Astec Industries, Inc. and/or secured with certain assets of the local ~~subsidiary except in Brazil where the credit facilities are supported by letters of credit issued under the Credit Facility.~~subsidiary.

Nine Months Ended September 30, Increase / Decrease
(in millions) 2021 2020
Net income $ 27.0 $ 31.4 $ (4.4)
Depreciation and amortization 22.6 19.4 3.2
Provision for warranties 8.5 7.1 1.4
Deferred tax provision 0.3 14.0 (13.7)
Asset impairment charges 0.2 4.1 (3.9)
Increase in receivables and other contract assets (31.3) (2.0) (29.3)
(Increase) decrease in inventories (33.4) 43.2 (76.6)
Decrease in prepaid expenses 0.2 7.5 (7.3)
Increase (decrease) in accounts payable 26.6 (8.0) 34.6
Increase in accrued payroll and related expenses 9.3 1.0 8.3
Increase in other accrued liabilities 10.3 2.9 7.4
Decrease in accrued product warranty (8.3) (7.3) (1.0)
Increase (decrease) in customer deposits 4.0 (18.0) 22.0
Income taxes payable/prepaid (5.7) 8.6 (14.3)
Other, net (3.0) (1.8) (1.2)
Net cash provided by operating activities $ 27.3 $ 102.1 $ (74.8)


	Nine Months Ended September 30,				Increase / Decrease
(in millions)	2022		2021
Net income	$	0.7	$	25.8	$	(25.1)
Deferred tax (benefit) provision	(12.6)		0.3		(12.9)
Asset impairment charges, net	3.4		0.2		3.2
Receivables and other contract assets	(25.0)		(30.2)		5.2
Increase in inventories	(98.9)		(32.3)		(66.6)
Increase in other assets	(10.3)		(3.0)		(7.3)
Increase in accounts payable	25.3		26.6		(1.3)
Increase in other accrued liabilities	0.5		9.7		(9.2)
Increase in accrued payroll and related expenses	11.2		9.3		1.9
Increase in customer deposits	21.1		4.0		17.1
Income taxes payable/prepaid	1.8		(6.1)		7.9
Other, net	26.0		23.0		3.0
Net cash (used in) provided by operating activities	$	(56.8)	$	27.3	$	(84.1)

million. Changes in the cash from operations was primarily driven by the following net usages: (i) the increase of inventories on hand of $66.6 million due to higher backlog and supply chain disruptions, (ii) lower net income of $25.1 million, (iii) changes in the deferred tax position of $12.9 million, (iv) the timing of ~~inventories~~payments on accounts payable and accrued liabilities of ~~$76.6~~$10.5 million and (v) increases in other assets of $7.3 million. These net cash usages were partially offset by changes in cash generated by: (i) increased customer deposits of $17.1 million associated with increased backlog, (ii) the timing of income tax payments of $7.9 million and (iii) the timing of receivables and other contract assets of ~~$29.3 million and payable/prepaid income taxes of $14.3 million. These decreases were partially offset by the timing of accounts payables payments of $34.6 million and customer deposits of $22.0~~$5.2 million.


		Nine Months Ended September 30,				Increase / Decrease			Nine Months Ended September 30,				Increase / Decrease
(in millions)	(in millions)	2021		2020				(in millions)	2022		2021
Acquisitions, net of cash acquired	Acquisitions, net of cash acquired	$	0.1	$	(28.3)	$	28.4	Acquisitions, net of cash acquired	$	(17.8)	$	0.1	$	(17.9)
Proceeds from (price adjustment on prior) sale of subsidiary		(1.1)		1.1		(2.2)
Price adjustment on prior sale of subsidiary								Price adjustment on prior sale of subsidiary	—		(1.1)		1.1
Expenditures for property and equipment	Expenditures for property and equipment	(10.9)		(10.9)		—		Expenditures for property and equipment	(27.6)		(10.9)		(16.7)
Proceeds from sale of property and equipment	Proceeds from sale of property and equipment	1.7		6.0		(4.3)		Proceeds from sale of property and equipment	0.7		1.7		(1.0)
Purchase of investments	Purchase of investments	(0.8)		(0.9)		0.1		Purchase of investments	(0.8)		(0.8)		—
Sale of investments	Sale of investments	1.8		1.2		0.6		Sale of investments	0.5		1.8		(1.3)
Net cash used by investing activities		$	(9.2)	$	(31.8)	$	22.6
Net cash used in investing activities								Net cash used in investing activities	$	(45.0)	$	(9.2)	$	(35.8)


		Nine Months Ended September 30,				Increase / Decrease			Nine Months Ended September 30,				Increase / Decrease
(in millions)	(in millions)	2021		2020				(in millions)	2022		2021
Payment of dividends	Payment of dividends	$	(7.5)	$	(7.5)	$	—	Payment of dividends	$	(8.3)	$	(7.5)	$	(0.8)
Repayments, net under bank loans		(1.1)		(0.3)		(0.8)
Proceeds from (repayments of) borrowings, net on credit facility and bank loans								Proceeds from (repayments of) borrowings, net on credit facility and bank loans	7.6		(1.1)		8.7
Withholding tax paid upon vesting of share-based compensation awards	Withholding tax paid upon vesting of share-based compensation awards	(3.4)		(0.7)		(2.7)		Withholding tax paid upon vesting of share-based compensation awards	(1.8)		(3.4)		1.6
Repurchase of Company stock								Repurchase of Company stock	(6.1)		—		(6.1)
Other, net	Other, net	0.6		0.2		0.4		Other, net	0.2		0.6		(0.4)
Net cash used by financing activities		$	(11.4)	$	(8.3)	$	(3.1)
Net cash used in financing activities								Net cash used in financing activities	$	(8.4)	$	(11.4)	$	3.0

As announced in a Form 8-K filing on July 30, 2018, we approved a share repurchase program, which authorizes us to repurchase up to $150.0 million of ~~2021~~our common stock. During the three months ended September 30, 2022, 160,445 shares were repurchased under the plan, totaling approximately $6.1 million. As of September 30, 2022, $119.7 million remains available for repurchase under the approved share repurchase program. We may continue to conduct opportunistic share repurchases under this authorization in future periods, subject to market conditions, utilizing cash on hand or borrowings under our Credit Facility. The timing, manner and ~~2020. Our Board~~number of ~~Directors approved an increase~~shares repurchased will depend on a variety of factors, including, but not limited to, the ~~dividend payment~~level of ~~$0.01 to a total~~cash balances, credit availability, financial performance, general business conditions, regulatory requirements, the market price of ~~$0.12 per common share to shareholders effective with~~ the ~~dividend payment to be made during~~Company’s stock and the ~~fourth quarter~~availability of ~~2021.~~alternative investment opportunities.

Our total current assets increased to ~~$644.8~~$649.6 million as of September 30, ~~2021~~2022 from ~~$565.8~~$636.0 million as of December 31, ~~2020,~~2021, an increase of ~~$79.0~~$13.6 million or ~~14.0%~~2.1%, due primarily to an increase in inventories of ~~$33.1~~$97.7 million, ~~and net~~an increase in trade receivables and contract assets of ~~$29.9~~$18.9 million and the recording of $15.4 million assets at our Tacoma site as held for sale partially offset by a decrease in cash, cash equivalents and restricted cash of $113.6 million during the first nine months of ~~2021.~~2022.

Our total current liabilities increased to ~~$212.0~~$283.9 million as of September 30, ~~2021~~2022 from ~~$170.3~~$223.3 million as of December 31, ~~2020,~~2021, an increase of ~~$41.7~~$60.6 million, or ~~24.5%~~27.1%, due primarily to increased accounts payable, ~~of $25.2 million~~customer deposits and accrued payroll and related liabilities of ~~$9.1~~$23.1 million, $19.1 million and $11.3 million, respectively, during the first nine months of ~~2021.~~2022. Current liabilities also increased due to additional net borrowings of $6.2 million on short-term debt facilities in order to meet working capital needs at certain of our international sites.

We have reviewed all claims and lawsuits and 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 uncertainties and rulings unfavorable to us could occur. If an unfavorable ruling were to occur, there exists the possibility of a material adverse effect on our financial position, cash flows or results of operations.

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 $46.4 million to be paid through September 2027. Payments of $1.0 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 September 30, ~~2021,~~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 8.9. 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 quarter ended March 31,~~ 2021, our Quarterly Report on Form 10-Q for the ~~quarter~~three months ended March 31, 2022, our Quarterly Report on Form 10-Q for the three and six months ended June 30, ~~2021~~2022 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.


(in millions, except share and per share data)	Total Number of Shares Purchased	Average Price Paid per Share (a)		Total Number of Shares Purchased as Part of Publicly Announced Programs (b)	Approximate Dollar Value of Shares That May Yet be Purchased Under the Plans or Programs (a)
August 1, 2022 - August 31, 2022	33,768	$	38.39	33,768	$	124.6
September 1, 2022 - September 30, 2022	126,677	$	38.27	126,677	119.7
Total	160,445			160,445
(a) The average price paid per share includes applicable broker's fees and commissions.
(b) On July 30, 2018, we announced a share repurchase program authorizing the repurchase of up to $150 million of our common stock. Under the authorization, repurchases may be made from time to time in open market transactions, including pursuant to trading plans adopted in accordance with Rule 10b5-1 of the Exchange Act, or in privately negotiated transactions. No time limit was set for completion of repurchases under the share repurchase program and the share repurchase program may be suspended or discontinued at any time.

Exhibit Number

Exhibit Description

Filed Herewith

31.1

Certification of Chief Executive Officer of Astec Industries, Inc. pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act ~~Of 2002.~~o f 2002

31.2

Certification of Chief Financial Officer of Astec Industries, Inc. pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act ~~Of 2002.~~o f 2002

32.1

Certification of Chief Executive Officer of Astec Industries, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of ~~2002.~~2002

32.2

Certification of Chief Financial Officer of Astec Industries, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act ~~Of 2002.~~o f 2002

101

The following materials from the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, ~~2021~~2022 formatted in Inline Extensible Business Reporting Language ("iXBRL"): (i) the Consolidated Statements of Operations, (ii) the Consolidated Statements of Comprehensive Income (Loss), (iii) the Consolidated Balance Sheets, (iv) the Consolidated Statements of Cash Flows, (v) the Consolidated Statements of Equity and (vi) related notes, tagged as blocks of text and including detailed tags.

104

Cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, ~~2021,~~2022, formatted in iXBRL (included as Exhibit 101).


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~~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	2024
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	2834
Item 4.	Controls and Procedures	2934

PART II
Item 1.	Legal Proceedings	2935
Item 1A.	Risk Factors	2935
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	2935
Item 3.	Defaults Upon Senior Securities	2935
Item 4.	Mine Safety Disclosures	2935
Item 5.	Other Information	2935
Item 6.	Exhibits	3036
SIGNATURES		3137


~~(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~~


			ASTEC INDUSTRIES, INC. (Registrant)


Date: November ~~4, 2021~~3, 2022			/s/ Rebecca A. Weyenberg
			Rebecca A. Weyenberg Chief Financial Officer (Principal Financial Officer)


Date: November ~~4, 2021~~3, 2022			/s/ Jamie E. Palm
			Jamie E. Palm Vice President, Chief Accounting Officer and Corporate Controller (Principal Accounting Officer)