Segment Information | 9 Months Ended |
Sep. 30, 2014 |
Segment Information [Abstract] | ' |
Segment Information | ' |
Note 11. Segment Information |
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Due to the recent change in the Company’s chief operating decision maker, sale of a Company subsidiary and other Company product lines, and the transfer of responsibility for certain product lines between Company subsidiaries, the composition of the Company’s reportable segments was changed as of January 1, 2014. Historical segment information presented for the three and nine-month periods ended September 30, 2013 has been reclassified to reflect the new segment structure. The Company now has three reportable segments, each of which is comprised of multiple business units that offer similar products and services and meet the requirements for aggregation. A brief description of each segment is as follows: |
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Infrastructure Group - This segment consists of five business units, three of which design, engineer, manufacture and market a complete line of portable, stationary and relocatable hot-mix asphalt plants, asphalt pavers, material transfer vehicles, milling machines and paver screeds. The other two business units in this segment operate as Company-owned dealers in the foreign countries in which they are domiciled. These two business units sell, service and install products produced by the manufacturing subsidiaries of the Company, and a majority of their sales are to customers in the infrastructure industry. The principal purchasers of the products produced by this group are asphalt producers, highway and heavy equipment contractors and foreign and domestic governmental agencies. |
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Aggregate and Mining Group - This segment consists of eight business units that design, engineer, manufacture and market a complete line of jaw crushers, cone crushers, horizontal shaft impactors, vertical shaft impactors, material handling, roll rock crushers and stationary rockbreaker systems, vibrating feeders and high frequency vibrating screens, conveyors, inclined, vertical and horizontal screens and sand classifying and washing equipment. The principal purchasers of products produced by this group are distributors, open mine operators, quarry operators, port operators, highway and heavy equipment contractors and foreign and domestic governmental agencies. This group includes the operations of Telestack Limited, which was acquired in April 2014. |
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Energy Group - This segment consists of five business units that design, engineer, manufacture and market a complete line of drilling rigs for the oil and gas, geothermal and water well industries, high pressure diesel pump trailers for fracking and cleaning oil and gas wells, a variety of industrial heaters to fit a broad range of applications including heating equipment for refineries, oil sands and energy related processing, heat transfer processing equipment, thermal fluid storage tanks, waste heat recovery equipment, whole-tree pulpwood and biomass chippers and horizontal grinders. The principal purchasers of products produced by this group are oil, gas and water well drilling industry contractors, processors of oil, gas and biomass for energy production and contractors in the construction and demolition recycling markets. |
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Corporate - This category consists of business units that do not meet the requirements for separate disclosure as an operating segment and includes the Company’s parent company, Astec Industries, Inc., and Astec Insurance Company, a Company-owned captive insurance company. The Company evaluates performance and allocates resources to its operating segments based on profit or loss from operations before U.S. federal income taxes and corporate overhead and thus these costs are included in the Corporate category. |
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Segment Information: |
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| | Three Months Ended September 30, 2014 | |
| | Infrastructure | | | Aggregate | | | Energy | | | Corporate | | | Total | |
Group | and Mining | Group |
| Group | |
Net sales to external customers | | $ | 78,698 | | | $ | 88,177 | | | $ | 53,282 | | | $ | - | | | $ | 220,157 | |
Intersegment sales | | | 8,685 | | | | 5,948 | | | | 4,819 | | | | - | | | | 19,452 | |
Gross profit | | | 11,367 | | | | 21,604 | | | | 10,277 | | | | 13 | | | | 43,261 | |
Gross profit percent | | | 14.4 | % | | | 24.5 | % | | | 19.3 | % | | | - | | | | 19.7 | % |
Segment profit (loss) | | $ | 520 | | | $ | 6,806 | | | $ | 2,789 | | | $ | (7,137 | ) | | $ | 2,978 | |
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| | Nine Months Ended September 30, 2014 | |
| | Infrastructure | | | Aggregate | | | Energy Group | | | Corporate | | | Total | |
Group | and Mining |
| Group |
Net sales to external customers | | $ | 296,074 | | | $ | 287,976 | | | $ | 152,036 | | | $ | - | | | $ | 736,086 | |
Intersegment sales | | | 20,619 | | | | 23,043 | | | | 12,273 | | | | - | | | | 55,935 | |
Gross profit | | | 59,135 | | | | 70,722 | | | | 32,309 | | | | 30 | | | | 162,196 | |
Gross profit percent | | | 20 | % | | | 24.6 | % | | | 21.3 | % | | | - | | | | 22 | % |
Segment profit (loss) | | $ | 21,124 | | | $ | 27,065 | | | $ | 7,659 | | | $ | (27,578 | ) | | $ | 28,270 | |
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| | Three Months Ended September 30, 2013 | |
| | Infrastructure | | | Aggregate | | | Energy | | | Corporate | | | Total | |
Group | and Mining | Group |
| Group | |
Net sales to external customers | | $ | 83,319 | | | $ | 79,792 | | | $ | 50,066 | | | $ | - | | | $ | 213,177 | |
Intersegment sales | | | 4,745 | | | | 11,324 | | | | 2,913 | | | | - | | | | 18,982 | |
Gross profit | | | 18,552 | | | | 19,584 | | | | 7,667 | | | | (16 | ) | | | 45,787 | |
Gross profit percent | | | 22.3 | % | | | 24.5 | % | | | 15.3 | % | | | - | | | | 21.5 | % |
Segment profit (loss) | | $ | 5,919 | | | $ | 6,765 | | | $ | 456 | | | $ | (5,935 | ) | | $ | 7,205 | |
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| | Nine Months Ended September 30, 2013 | |
| | Infrastructure | | | Aggregate | | | Energy Group | | | Corporate | | | Total | |
Group | and Mining |
| Group |
Net sales to external customers | | $ | 296,393 | | | $ | 270,438 | | | $ | 142,305 | | | $ | - | | | $ | 709,136 | |
Intersegment sales | | | 19,256 | | | | 34,361 | | | | 10,045 | | | | - | | | | 63,662 | |
Gross profit | | | 64,752 | | | | 68,239 | | | | 26,821 | | | | (17 | ) | | | 159,795 | |
Gross profit percent | | | 21.8 | % | | | 25.2 | % | | | 18.8 | % | | | - | | | | 22.5 | % |
Segment profit (loss) | | $ | 24,900 | | | $ | 26,963 | | | $ | 3,882 | | | $ | (23,387 | ) | | $ | 32,358 | |
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A reconciliation of total segment profits to the Company’s consolidated totals is as follows: |
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| | Three Months Ended | | | Nine Months Ended | | | | | |
September 30, | September 30, | | | | |
| | 2014 | | | 2013 | | | 2014 | | | 2013 | | | | | |
Total segment profits | | $ | 2,978 | | | $ | 7,205 | | | $ | 28,270 | | | $ | 32,358 | | | | | |
Elimination of intersegment profit | | | (1,212 | ) | | | (678 | ) | | | (2,468 | ) | | | (1,428 | ) | | | | |
Net income | | | 1,766 | | | | 6,527 | | | | 25,802 | | | | 30,930 | | | | | |
Net income (loss) attributable to non-controlling interest in subsidiaries | | | (150 | ) | | | 13 | | | | (156 | ) | | | 154 | | | | | |
Net income attributable to controlling interest | | $ | 1,916 | | | $ | 6,514 | | | $ | 25,958 | | | $ | 30,776 | | | | | |