Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | ASTEC INDUSTRIES INC |
Entity Central Index Key | 792987 |
Current Fiscal Year End Date | -19 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Public Float | $898,860,000 |
Entity Common Stock, Shares Outstanding | 22,935,192 |
Document Fiscal Year Focus | 2014 |
Document Fiscal Period Focus | FY |
Document Type | 10-K |
Amendment Flag | FALSE |
Document Period End Date | 31-Dec-14 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $13,023 | $35,564 |
Investments | 1,916 | 17,176 |
Trade receivables | 105,743 | 92,055 |
Notes and other receivables | 1,558 | 2,734 |
Inventories | 387,835 | 342,313 |
Prepaid expenses | 21,133 | 13,636 |
Deferred income tax assets | 14,817 | 14,924 |
Other current assets | 7,166 | 4,009 |
Total current assets | 553,191 | 522,411 |
Property and equipment, net | 187,610 | 184,520 |
Investments | 11,393 | 12,085 |
Goodwill | 31,995 | 15,057 |
Intangible assets | 17,272 | 6,543 |
Notes receivable | 802 | 6,284 |
Other long-term assets | 3,202 | 2,391 |
Total assets | 805,465 | 749,291 |
Current liabilities: | ||
Short-term debt | 3,841 | 34 |
Accounts payable | 60,987 | 45,845 |
Customer deposits | 45,086 | 37,498 |
Accrued product warranty | 10,032 | 12,716 |
Accrued payroll and related liabilities | 17,265 | 16,988 |
Accrued loss reserves | 3,050 | 3,328 |
Other accrued liabilities | 20,868 | 17,122 |
Total current liabilities | 161,129 | 133,531 |
Long-term debt | 7,061 | 510 |
Deferred income tax liabilities | 16,836 | 17,455 |
Other long-term liabilities | 21,087 | 17,284 |
Total liabilities | 206,113 | 168,780 |
Equity: | ||
Preferred stock - authorized 4,000 shares of $1.00 par value; none issued | 0 | 0 |
Common stock - authorized 40,000 shares of $.20 par value; issued and outstanding - 22,930 in 2014 and 22,859 in 2013 | 4,586 | 4,572 |
Additional paid-in capital | 135,887 | 134,730 |
Accumulated other comprehensive loss | -12,915 | -4,894 |
Company shares held by SERP, at cost | -2,929 | -2,786 |
Retained earnings | 470,537 | 445,254 |
Shareholders' equity | 595,166 | 576,876 |
Non-controlling interest | 4,186 | 3,635 |
Total equity | 599,352 | 580,511 |
Total liabilities and equity | $805,465 | $749,291 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Equity: | ||
Preferred stock, shares authorized (in shares) | 4,000 | 4,000 |
Preferred stock, par value (in dollars per share) | $1 | $1 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, shares authorized (in shares) | 40,000 | 40,000 |
Common stock, par value (in dollars per share) | $0.20 | $0.20 |
Common stock, shares issued (in shares) | 22,930 | 22,859 |
Common stock, shares outstanding (in shares) | 22,930 | 22,859 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED STATEMENTS OF INCOME [Abstract] | |||
Net sales | $975,595 | $932,998 | $936,273 |
Cost of sales | 760,279 | 725,879 | 728,322 |
Gross profit | 215,316 | 207,119 | 207,951 |
Selling, general and administrative expenses | 141,490 | 133,337 | 136,323 |
Research and development expenses | 22,129 | 18,101 | 20,520 |
Income from operations | 51,697 | 55,681 | 51,108 |
Other income: | |||
Interest expense | 720 | 423 | 339 |
Interest income | 1,422 | 1,047 | 1,145 |
Other income (expense), net | 1,207 | 1,937 | 1,783 |
Income from continuing operations before income taxes | 53,606 | 58,242 | 53,697 |
Income taxes on continuing operations | 19,400 | 19,028 | 19,487 |
Net income from continuing operations | 34,206 | 39,214 | 34,210 |
Discontinued operations: | |||
Income from discontinued operations, net of tax | 0 | 0 | 3,401 |
Gain on sale of subsidiary, net of tax | 0 | 0 | 3,378 |
Income from discontinued operations | 0 | 0 | 6,779 |
Net income | 34,206 | 39,214 | 40,989 |
Net income (loss) attributable to non-controlling interest | -252 | 172 | 161 |
Net income attributable to controlling interest | $34,458 | $39,042 | $40,828 |
Net income attributable to controlling interest from continuing operations: | |||
Basic (in dollars per share) | $1.51 | $1.72 | $1.50 |
Diluted (in dollars per share) | $1.49 | $1.69 | $1.48 |
Income from discontinued operations: | |||
Basic (in dollars per share) | $0 | $0 | $0.30 |
Diluted (in dollars per share) | $0 | $0 | $0.29 |
Net income attributable to controlling interest: | |||
Basic (in dollars per share) | $1.51 | $1.72 | $1.80 |
Diluted (in dollars per share) | $1.49 | $1.69 | $1.77 |
Weighted average number of common shares outstanding: | |||
Basic (in shares) | 22,819 | 22,749 | 22,680 |
Diluted (in shares) | 23,105 | 23,081 | 23,051 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | |||
Net income | $34,206 | $39,214 | $40,989 |
Other comprehensive income (loss): | |||
Change in unrecognized pension and post-retirement benefit costs | -1,820 | 2,742 | -157 |
Tax (expense) benefit on change in unrecognized pension and post-retirement benefit costs | 699 | -974 | -10 |
Foreign currency translation adjustments | -7,670 | -8,821 | -626 |
Tax benefit on foreign currency translation adjustments | 770 | 1,657 | 454 |
Other comprehensive loss | -8,021 | -5,396 | -339 |
Comprehensive loss attributable to non-controlling interest | -565 | -236 | -15 |
Comprehensive income attributable to controlling interest | $26,750 | $34,054 | $40,665 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Flows from Operating Activities | |||
Net income | $34,206 | $39,214 | $40,989 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Gain on sale of subsidiary | 0 | 0 | -5,358 |
Depreciation | 21,343 | 20,966 | 20,945 |
Amortization | 3,033 | 1,299 | 2,103 |
Provision for doubtful accounts | 1,011 | 629 | 759 |
Provision for warranty | 12,796 | 12,199 | 11,152 |
Deferred compensation provision | 74 | 601 | 115 |
Deferred income tax provision (benefit) | -2,544 | -2,220 | 6,223 |
Gain on disposition of fixed assets | -306 | -163 | -256 |
Tax expense (benefit) from stock incentive exercises | -586 | 8 | -107 |
Stock-based compensation | 1,200 | 1,461 | 1,285 |
Sale (purchase) of trading securities, net | 118 | -1,350 | -146 |
(Increase) decrease in: | |||
Trade and other receivables | -6,924 | -8,849 | 7,555 |
Inventories | -41,933 | -36,561 | -41,145 |
Prepaid expenses | -7,189 | -5,433 | -1,655 |
Other assets | -4,763 | -3,215 | -1,566 |
Increase (decrease) in: | |||
Accounts payable | 10,755 | 1,028 | -6,425 |
Customer deposits | 5,483 | -5,436 | 4,918 |
Accrued product warranty | -15,563 | -10,163 | -11,021 |
Income taxes payable | 2,064 | -823 | 1,611 |
Accrued retirement benefit costs | -201 | -324 | -218 |
Accrued loss reserves | 305 | 199 | -1,435 |
Other accrued liabilities | 3,289 | 1,085 | 298 |
Other | 3,195 | 1,709 | 12 |
Net cash provided by operating activities | 18,863 | 5,861 | 28,633 |
Cash Flows from Investing Activities | |||
Business acquisitions, net of cash acquired | -34,965 | 0 | 0 |
Proceeds from sale of subsidiary | 0 | 0 | 42,940 |
Proceeds from sale of property and equipment | 743 | 424 | 375 |
Expenditures for property and equipment | -24,851 | -27,673 | -26,018 |
Sale (purchase) of short-term investments | 16,249 | -15,000 | 0 |
Net cash provided (used) by investing activities | -42,824 | -42,249 | 17,297 |
Cash Flows from Financing Activities | |||
Payment of dividends | -9,167 | -6,856 | -22,790 |
Debt borrowings | 10,462 | 0 | 0 |
Repayment of debt | -103 | 0 | 0 |
Proceeds from issuance of common stock | 282 | 112 | 514 |
Tax (expense) benefit from stock option exercise | 586 | -8 | 107 |
Cash from sale of shares of subsidiaries | 1,428 | 735 | 904 |
Sale (purchase) of company shares by Supplemental Executive Retirement Plan, net | -95 | 213 | -373 |
Withholding tax paid upon vesting of restricted stock units | -953 | -782 | -834 |
Net cash provided (used) by financing activities | 2,440 | -6,586 | -22,472 |
Effect of exchange rates on cash | -1,020 | -2,391 | -34 |
Increase (decrease) in cash and cash equivalents | -22,541 | -45,365 | 23,424 |
Cash and cash equivalents, beginning of year | 35,564 | 80,929 | 57,505 |
Cash and cash equivalents, end of year | 13,023 | 35,564 | 80,929 |
Cash paid during the year for: | |||
Interest | 476 | 229 | 366 |
Income taxes, net of refunds | $23,027 | $20,331 | $13,722 |
CONSOLIDATED_STATEMENTS_OF_EQU
CONSOLIDATED STATEMENTS OF EQUITY (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Company Shares Held by SERP [Member] | Retained Earnings [Member] | Non-Controlling Interest [Member] | Total |
In Thousands | |||||||
Balance at Dec. 31, 2011 | $4,542 | $132,744 | $841 | ($2,487) | $395,052 | $606 | $531,298 |
Balance (in shares) at Dec. 31, 2011 | 22,711 | ||||||
Net income | 40,828 | 161 | 40,989 | ||||
Dividends | 16 | -22,806 | -22,790 | ||||
Other comprehensive loss | -339 | 15 | -324 | ||||
Change in ownership percentage of subsidiary | 862 | 862 | |||||
Stock-based compensation | 1 | 1,284 | 1,285 | ||||
Stock-based compensation (in shares) | 6 | ||||||
Exercise of stock options and RSU vesting, including tax benefit | 17 | 604 | 621 | ||||
Exercise of stock options and RSU vesting, including tax benefit (in shares) | 82 | ||||||
Withholding tax on vested RSUs | -834 | -834 | |||||
Sale/Purchase of Company stock held by SERP, net | -5 | -368 | -373 | ||||
Balance at Dec. 31, 2012 | 4,560 | 133,809 | 502 | -2,855 | 413,074 | 1,644 | 550,734 |
Balance (in shares) at Dec. 31, 2012 | 22,799 | ||||||
Net income | 39,042 | 172 | 39,214 | ||||
Dividends | 6 | -6,862 | -6,856 | ||||
Other comprehensive loss | -5,396 | 236 | -5,160 | ||||
Change in ownership percentage of subsidiary | -802 | -802 | |||||
Capital Contributed By Minority Shareholder | 2,385 | 2,385 | |||||
Stock-based compensation | 1 | 1,460 | 1,461 | ||||
Stock-based compensation (in shares) | 6 | ||||||
Exercise of stock options and RSU vesting, including tax benefit | 11 | 93 | 104 | ||||
Exercise of stock options and RSU vesting, including tax benefit (in shares) | 54 | ||||||
Withholding tax on vested RSUs | -782 | -782 | |||||
Sale/Purchase of Company stock held by SERP, net | 144 | 69 | 213 | ||||
Balance at Dec. 31, 2013 | 4,572 | 134,730 | -4,894 | -2,786 | 445,254 | 3,635 | 580,511 |
Balance (in shares) at Dec. 31, 2013 | 22,859 | 22,859 | |||||
Net income | 34,458 | -252 | 34,206 | ||||
Dividends | 8 | -9,175 | -9,167 | ||||
Other comprehensive loss | -8,021 | 565 | -7,456 | ||||
Change in ownership percentage of subsidiary | -1,345 | -1,345 | |||||
Capital Contributed By Minority Shareholder | 1,583 | 1,583 | |||||
Stock-based compensation | 1 | 1,199 | 1,200 | ||||
Stock-based compensation (in shares) | 5 | ||||||
Exercise of stock options and RSU vesting, including tax benefit | 13 | 855 | 868 | ||||
Exercise of stock options and RSU vesting, including tax benefit (in shares) | 66 | ||||||
Withholding tax on vested RSUs | -953 | -953 | |||||
Sale/Purchase of Company stock held by SERP, net | 48 | -143 | -95 | ||||
Balance at Dec. 31, 2014 | $4,586 | $135,887 | ($12,915) | ($2,929) | $470,537 | $4,186 | $599,352 |
Balance (in shares) at Dec. 31, 2014 | 22,930 | 22,930 |
CONSOLIDATED_STATEMENTS_OF_EQU1
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) (USD $) | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | |
CONSOLIDATED STATEMENTS OF EQUITY [Abstract] | ||||||||
Common stock dividends (in dollars per share) | $0.10 | $0.10 | $0.10 | $0.10 | $0.10 | $0.10 | $0.10 | $1 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Summary of Significant Accounting Policies [Abstract] | |||||||||||||
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies | ||||||||||||
Basis of Presentation - The consolidated financial statements include the accounts of Astec Industries, Inc. and its domestic and foreign subsidiaries. The Company’s significant wholly-owned and consolidated subsidiaries at December 31, 2014 are as follows: | |||||||||||||
Astec Australia Pty Ltd | Astec do Brasil Fabricacao de Equipamentos Ltda. (78% owned) | ||||||||||||
Astec, Inc. | Astec Insurance Company | ||||||||||||
Astec Mobile Machinery GmbH | Astec Mobile Screens, Inc. | ||||||||||||
Astec Underground, Inc. | Breaker Technology, Inc. | ||||||||||||
Breaker Technology Ltd. | Carlson Paving Products, Inc. | ||||||||||||
CEI Enterprises, Inc. | GEFCO, Inc. | ||||||||||||
Heatec, Inc. | Johnson Crushers International, Inc. | ||||||||||||
Kolberg-Pioneer, Inc. | Osborn Engineered Products SA (Pty) Ltd (93% owned) | ||||||||||||
Peterson Pacific Corp. | Roadtec, Inc. | ||||||||||||
Telestack Limited | Telsmith, Inc. | ||||||||||||
On November 30, 2012, the Company sold its former American Augers, Inc. subsidiary to The Charles Machine Works, Inc. American Augers’ 2012 results of operations have been reclassified as discontinued operations. | |||||||||||||
All intercompany accounts and transactions have been eliminated in consolidation. | |||||||||||||
Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and accompanying notes. Actual results could differ from those estimates. | |||||||||||||
Foreign Currency Translation - Subsidiaries located in Australia, Brazil, Canada, Germany, Northern Ireland, and South Africa operate primarily using local functional currencies. Accordingly, assets and liabilities of these subsidiaries are translated using exchange rates in effect at the end of the period, and revenues and costs are translated using average exchange rates for the period. The resulting adjustments are presented as a separate component of accumulated other comprehensive income. Foreign currency transaction gains and losses, net are included in cost of sales and amounted to losses of $1,971 and $522 in 2014 and 2013, and a gain of $867 in 2012, respectively. | |||||||||||||
Fair Value of Financial Instruments - For cash and cash equivalents, trade receivables, other receivables, revolving debt and accounts payable, the carrying amount approximates the fair value because of the short- term nature of those instruments. Trading equity investments are valued at their estimated fair value based on their quoted market prices and debt securities are valued based upon a mix of observable market prices and model driven prices derived from a matrix of observable market prices for assets with similar characteristics obtained from a nationally recognized third party pricing service. | |||||||||||||
Financial assets and liabilities are categorized as of the end of each reporting period based upon the level of judgment associated with the inputs used to measure their fair value. The inputs used to measure the fair value are identified in the following hierarchy: | |||||||||||||
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. | |||||||||||||
All financial assets and liabilities held by the Company at December 31, 2014 and 2013 are classified as Level 1 or Level 2 as summarized in Note 3, Fair Value Measurements. | |||||||||||||
Cash and Cash Equivalents - All highly liquid investments with an original maturity of three months or less when purchased are considered to be cash and cash equivalents. | |||||||||||||
Investments - Investments consist primarily of investment-grade marketable securities. Trading securities are carried at fair value, with unrealized holding gains and losses included in net income. Realized gains and losses are accounted for on the specific identification method. Purchases and sales are recorded on a trade date basis. Management determines the appropriate classification of its investments at the time of acquisition and reevaluates such determination at each balance sheet date. | |||||||||||||
Concentration of Credit Risk - The Company sells products to a wide variety of customers. Accounts receivable are carried at their outstanding principal amounts, less an allowance for doubtful accounts. The Company extends credit to its customers based on an evaluation of the customers’ financial condition generally without requiring collateral although the Company normally requires advance payments or letters of credit on large equipment orders. Credit risk is driven by conditions within the economy and the industry and is principally dependent on each customer’s financial condition. To minimize credit risk, the Company monitors credit levels and financial conditions of customers on a continuing basis. After considering historical trends for uncollectible accounts, current economic conditions and specific customer recent payment history and financial stability, the Company records an allowance for doubtful accounts at a level which management believes is sufficient to cover probable credit losses. Amounts are deemed past due when they exceed the payment terms agreed to by the customer in the sales contract. Past due amounts are charged off when reasonable collection efforts have been exhausted and the amounts are deemed uncollectible by management. As of December 31, 2014, concentrations of credit risk with respect to receivables are limited due to the wide variety of customers. | |||||||||||||
Allowance for Doubtful Accounts - The following table represents a rollforward of the allowance for doubtful accounts for the years ended December 31, 2014, 2013 and 2012: | |||||||||||||
Year Ended December 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Reserve balance, beginning of year | $ | 1,708 | $ | 2,143 | $ | 2,398 | |||||||
Provision | 1,011 | 629 | 759 | ||||||||||
Write offs | (465 | ) | (1,042 | ) | (764 | ) | |||||||
Other | (6 | ) | (22 | ) | (250 | ) | |||||||
Reserve balance, end of year | $ | 2,248 | $ | 1,708 | $ | 2,143 | |||||||
Inventories - The Company’s inventory is comprised of raw materials, work-in-process, finished goods and used equipment as described below. | |||||||||||||
Raw material inventory is comprised of purchased steel and other purchased items for use in the manufacturing process or held for sale in the Company’s after-market parts business. The category also includes the manufacturing cost of completed equipment sub-assemblies produced for either integration into equipment manufactured at a later date or for sale in the Company’s after-market parts business. | |||||||||||||
Work-in-process inventory consists of the value of materials, labor and overhead incurred to date in the manufacturing of incomplete equipment or incomplete equipment sub-assemblies being produced. | |||||||||||||
Finished goods inventory consists of completed equipment manufactured for sale to customers. | |||||||||||||
Used inventory consists of equipment accepted in trade or purchased on the open market. The category also includes equipment rented to prospective customers on a short-term or month-to-month basis. Used equipment is valued at the lower of acquired or trade-in cost or market determined on each separate unit. Each unit of rental equipment is valued at its original manufacturing cost and is reduced by an appropriate reserve each month during the period of time the equipment is rented. | |||||||||||||
Inventories are valued at the lower of cost (first-in, first-out) or market, which requires the Company to make specific estimates, assumptions and judgments in determining the amount, if any, of reductions in the valuation of inventories to their net realizable values. The net realizable values of the Company’s products are impacted by a number of factors, including changes in the price of steel, competitive sales pricing, quantities of inventories on hand, the age of the individual inventory items, market acceptance of the Company’s products, the Company’s normal gross margins, actions by our competitors, the condition of our used and rental inventory and general economic factors. Once an inventory item’s value has been deemed to be less than cost, a net realizable value allowance is calculated and a new “cost basis” for that item is effectively established. This new cost is retained for that item until such time as the item is disposed of or the Company determines that an additional write-down is necessary. Additional write-downs may be required in the future based upon changes in assumptions due to general economic downturns in the markets in which the Company operates, changes in competitor pricing, new product design or other technological advances introduced by the Company or its competitors and other factors unique to individual inventory items. | |||||||||||||
The most significant component of the Company’s inventory is steel. A significant decline in the market price of steel could result in a decline in the market value of the equipment or parts we sell. During periods of significant declining steel prices, the Company reviews the valuation of its inventories to determine if reductions are needed in the recorded value of inventory on hand to its net realizable value. | |||||||||||||
The Company reviews the individual items included in its finished goods, used equipment and rental equipment inventory on a model-by-model or unit-by-unit basis to determine if any item’s net realizable value is below its carrying value each quarter. This analysis is expanded to include items in work-in-process and raw material inventory if factors indicate those items may also be impacted. In performing this review, judgments are made and, in addition to the factors discussed above, additional consideration is given to the age of the specific items of used or rental inventory, prior sales offers or lack thereof, the physical condition of the specific items and general market conditions for the specific items. Additionally, an analysis of raw material inventory is performed each quarter to calculate reserves needed for obsolete inventory based upon quantities of items on hand, the age of those items and their recent and expected future usage or sale. | |||||||||||||
When the Company determines that the value of inventory has become impaired through damage, deterioration, obsolescence, changes in price levels, excessive levels of inventory or other causes, the Company reduces the carrying value to estimated market value based on estimates, assumptions and judgments made from the information available at that time. | |||||||||||||
Abnormal amounts of idle facility expense, freight, handling cost and wasted materials are recognized as current period charges. | |||||||||||||
Property and Equipment - Property and equipment is stated at cost. Depreciation is calculated for financial reporting purposes using the straight-line method based on the estimated useful lives of the assets as follows: airplanes (20 years), buildings (40 years) and equipment (3 to 10 years). Both accelerated and straight-line methods are used for tax compliance purposes. Routine repair and maintenance costs and planned major maintenance are expensed when incurred. | |||||||||||||
Goodwill and Other Intangible Assets - The Company classifies intangible assets as either intangible assets with definite lives subject to amortization or goodwill. | |||||||||||||
The Company tests intangible assets with definite lives for impairment if conditions exist that indicate the carrying value may not be recoverable. Such conditions may include an economic downturn in a geographic market or a change in the assessment of future operations. An impairment charge would be recorded if the carrying value of the definite lived intangible asset is not recoverable by the future undiscounted cash flows generated from the use of the asset. | |||||||||||||
The Company determines the useful lives of identifiable intangible assets after considering the specific facts and circumstances related to each intangible asset. Factors considered when determining useful lives include the contractual terms of agreements, the history of the asset, the Company’s long-term strategy for the use of the asset, any laws or other local regulations which could impact the useful life of the asset, and other economic factors, including competition and specific market conditions. Intangible assets that are deemed to have definite lives are amortized over their useful lives, ranging from 3 to 15 years. | |||||||||||||
Goodwill is not amortized. The Company tests goodwill for impairment annually or more frequently if events or circumstances indicate that goodwill might be impaired. The tests utilize a two-step method at the reporting unit level. The Company’s reporting units are typically defined as either subsidiaries or a combination of subsidiaries. | |||||||||||||
In 2011, the Company early adopted, as permitted, new accounting guidance related to annual goodwill impairment testing. The guidance gives the Company the option to perform a qualitative assessment to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount. If the Company concludes that this is the case for a reporting unit, it would proceed to calculating the fair value for that reporting unit as described below. Otherwise, the Company would not be required to perform any further goodwill impairment testing for that reporting unit. However, as it had been four years since the Company retained an outside consultant to assist in its impairment evaluation, the Company performed a detailed step one impairment test in 2013 with the assistance of an outside financial consultant. Due to the acquisition of Telestack Limited in April 2014, the Company also performed a detailed step one impairment test in 2014 with the assistance of an outside financial consultant. No impairment was indicated in these tests. | |||||||||||||
The first step of the goodwill impairment test compares book value of a reporting unit, including goodwill, with the unit’s fair value. In this first step, the Company estimates the fair values of each of its reporting units that have goodwill using the income approach. | |||||||||||||
The income approach uses a reporting unit’s projection of estimated future operating results and cash flows which are then discounted using a weighted average cost of capital determined based on current market conditions for the individual reporting unit. The projection uses management’s best estimates of cash flows over the projection period based on estimates of annual and terminal growth rates in sales and costs, changes in operating margins, selling, general and administrative expenses, working capital requirements and capital expenditures. | |||||||||||||
The fair value of the operating subsidiaries/reporting units that do not have goodwill are estimated using either the income or market approaches, depending on which approach is to be the most appropriate for each reporting unit. The fair value of the reporting units that serve operating units in supporting roles, such as the captive insurance company and the corporate reporting unit are estimated using the cost approach. The sum of the fair values of all reporting units is compared to its calculation of the fair value of the consolidated Company using the market approach, which is inferred from the market capitalization of the Company at the date of the valuation, to confirm that the Company’s estimation of the fair value of its reporting units is reasonable. | |||||||||||||
If the book value of a reporting unit exceeds its fair value, an indication of possible goodwill impairment, the second step of the impairment test must be performed to determine the amount, if any, of goodwill impairment. In this second step, the total implied fair value of the reporting unit’s goodwill is estimated by allocating the fair value of the reporting unit to all its assets, including any unrecognized intangible assets and liabilities other than goodwill. The difference between the total fair value of the reporting unit and the fair value of its assets and liabilities other than goodwill is the implied fair value of its goodwill. The amount of any impairment loss is equal to the excess, if any, of the book value of the goodwill over the implied fair value of its goodwill. | |||||||||||||
Determining the “step one” fair values of the Company’s reporting units involves the use of significant estimates and assumptions. Due to the inherent uncertainty involved in making these estimates and assumptions, actual results could differ materially from those estimates. | |||||||||||||
Impairment of Long-lived Assets - In the event that facts and circumstances indicate the carrying amounts of long-lived assets may be impaired, an evaluation of recoverability is performed. If an evaluation is required, the estimated future undiscounted cash flows associated with the asset are compared to the carrying amount for each asset (or group of assets) to determine if a write-down is required. If this review indicates that the assets will not be recoverable, the carrying values of the impaired assets are reduced to their estimated fair value. Fair value is estimated using discounted cash flows, prices for similar assets or other valuation techniques. | |||||||||||||
Self-Insurance Reserves - The Company retains the risk for a portion of its workers’ compensation claims and general liability claims by way of a captive insurance company, Astec Insurance Company, (“Astec Insurance” or “the captive”). Astec Insurance is incorporated under the laws of the state of Vermont. The objectives of Astec Insurance are to improve control over and reduce the cost of claims; to improve focus on risk reduction with development of a program structure which rewards proactive loss control; and to ensure management participation in the defense and settlement process for claims. | |||||||||||||
For general liability claims, the captive is liable for the first $1,000 per occurrence and $2,000 per year in the aggregate. The Company carries general liability, excess liability and umbrella policies for claims in excess of amounts covered by the captive. | |||||||||||||
For workers’ compensation claims, the captive is liable for the first $350 per occurrence and $1,000 per year in the aggregate. The Company utilizes a large national insurance company as third party administrator for workers’ compensation claims and carries insurance coverage for claims liabilities in excess of amounts covered by the captive. | |||||||||||||
The financial statements of the captive are consolidated into the financial statements of the Company. The short-term and long-term reserves for claims and potential claims related to general liability and workers’ compensation under the captive are included in accrued loss reserves or other long-term liabilities, respectively, in the consolidated balance sheets depending on the expected timing of future payments. The undiscounted reserves are actuarially determined to cover the ultimate cost of each claim 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. However, the Company does not believe it is reasonably likely that the reserve level will materially change in the foreseeable future. | |||||||||||||
The Company is self-insured for health and prescription claims under its Group Health Insurance Plan at all but one of the Company’s domestic manufacturing subsidiaries. The Company carries reinsurance coverage to limit its exposure for individual health claims above certain limits. Third parties administer health claims and prescription medication claims. The Company maintains a reserve for the self-insured health plan which is included in accrued loss reserves on the Company’s consolidated balance sheets. This reserve includes both unpaid claims and an estimate of claims incurred but not reported, based on historical claims and payment experience. Historically the reserves have been sufficient to provide for claims payments. Changes in actual claims experience or payment patterns could cause the reserve to change, but the Company does not believe it is reasonably likely that the reserve level will materially change in the near future. | |||||||||||||
The remaining U.S. subsidiary is covered under a fully insured group health plan. Employees of the Company’s foreign subsidiaries are insured under separate health plans. No reserves are necessary for these fully insured health plans. | |||||||||||||
Revenue Recognition - Revenue is generally recognized on sales at the point in time when persuasive evidence of an arrangement exists, the price is fixed or determinable, the product has been delivered or services have been rendered and there is a reasonable assurance of collection of the sales proceeds. The Company generally obtains purchase authorizations from its customers for a specified amount of products at a specified price with specified delivery terms. A significant portion of the Company’s equipment sales represents equipment produced in the Company’s plants under short-term contracts for a specific customer project or equipment designed to meet a customer’s specific requirements. Most of the equipment sold by the Company is based on standard configurations, some of which are modified to meet customer needs or specifications. The Company provides customers with technical design and performance specifications and performs pre-shipment testing to ensure the equipment performs according to design specifications, regardless of whether the Company provides installation services in addition to selling the equipment. | |||||||||||||
Certain contracts include terms and conditions pursuant to which the Company recognizes revenues upon completion of equipment production, which is subsequently stored at the Company’s plant at the customer’s request. Revenue is recorded on such contracts upon the customer’s assumption of title and risk of ownership and when collectability is reasonably assured. In addition, there must be a fixed schedule of delivery of the goods consistent with the customer’s business practices, the Company must not have retained any specific performance obligations such that the earnings process is not complete and the goods must have been segregated from the Company’s inventory prior to revenue recognition. | |||||||||||||
The Company accounts for certain sales as multiple-element arrangements, whereby the revenue attributable to the sale of a product is recognized when the product is shipped and the revenue attributable to services provided with respect to the product (such as installation services) is recognized when the service is performed. Consideration is allocated to deliverables using the relative selling price method using vendor specific objective evidence, if it exists. Otherwise third-party evidence of selling price or the Company’s best estimate of the selling price for the deliverables is used. The Company evaluates sales with multiple deliverable elements (such as an agreement to deliver equipment and related installation services) to determine whether revenue related to individual elements should be recognized separately, or as a combined unit. In addition to the previously mentioned general revenue recognition criteria, the Company only recognizes revenue on individual delivered elements when there is objective and reliable evidence that the delivered element has a determinable value to the customer on a standalone basis and there is no right of return. | |||||||||||||
The Company presents in the statements of income any taxes assessed by a governmental authority that are directly imposed on revenue-producing transactions between the Company and its customers, such as sales, use, value-added and some excise taxes, on a net (excluded from revenue) basis. | |||||||||||||
Advertising Expense - The cost of advertising is expensed as incurred. The Company incurred $3,657, $3,770, and $4,223 in advertising costs during 2014, 2013 and 2012, respectively, which is included in selling, general and administrative expenses. | |||||||||||||
Income Taxes - Income taxes are based on pre-tax financial accounting income. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. The Company periodically assesses the need to establish valuation allowances against its deferred tax assets to the extent the Company no longer believes it is more likely than not that the tax assets will be fully utilized. | |||||||||||||
The Company evaluates a tax position to determine whether it is more likely than not that the tax position will be sustained upon examination, based upon the technical merits of the position. A tax position that meets the more-likely-than-not recognition threshold is subject to a measurement assessment to determine the amount of benefit to recognize and the appropriate reserve to establish, if any. If a tax position does not meet the more-likely-than-not recognition threshold, no benefit is recognized. The Company is periodically audited by U.S. federal and state as well as foreign tax authorities. While it is often difficult to predict final outcome or timing of resolution of any particular tax matter, the Company believes its reserve for uncertain tax positions is adequate to reduce the uncertain positions to the greatest amount of benefit that is more likely than not realizable. | |||||||||||||
Product Warranty Reserve - The Company accrues for the estimated cost of product warranties at the time revenue is recognized. Warranty obligations by product line or model are evaluated based on historical warranty claims experience. For machines, the Company’s standard product warranty terms generally include post-sales support and repairs of products at no additional charge for periods ranging from three months to two years or up to a specified number of hours of operation. For parts from component suppliers, the Company relies on the original manufacturer’s warranty that accompanies those parts. Generally, Company fabricated parts are not covered by specific warranty terms. Although failure of fabricated parts due to material or workmanship is rare, if it occurs, the Company’s policy is to replace fabricated parts at no additional charge. | |||||||||||||
The Company engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of our component suppliers. Estimated warranty obligations are based upon warranty terms, product failure rates, repair costs and current period machine shipments. If actual product failure rates, repair costs, service delivery costs or post-sales support costs differ from our estimates, revisions to the estimated warranty liability would be required. | |||||||||||||
Pension and Retirement Plans - The determination of obligations and expenses under the Company’s pension plan is dependent on the Company’s selection of certain assumptions used by independent actuaries in calculating such amounts. Those assumptions are described in Note 12, Pension and Retirement Plans and include among others, the discount rate, expected return on plan assets and the expected mortality rates. In accordance with accounting principles generally accepted in the United States, actual results that differ from assumptions are accumulated and amortized over future periods and, therefore, generally affect the recognized expense in such periods. Significant differences in actual experience or significant changes in the assumptions used may materially affect the pension obligations and future expenses. | |||||||||||||
The Company recognizes the overfunded or underfunded status of its pension plan as an asset or liability. Actuarial gains and losses, amortization of prior service cost (credit) and amortization of transition obligations are recognized through other comprehensive income in the year in which the changes occur. The Company measures the funded status of its pension plan as of the date of the Company’s fiscal year-end. | |||||||||||||
Stock-based Compensation - The Company currently has a stock-based compensation plan in effect for its employees and directors whereby participants may earn restricted stock units. The plan and its similar predecessor plan, were put in place initially in 2006 and will continue through at least 2015. These plans are more fully described in Note 16, Shareholders’ Equity. The Company recognizes the cost of employee services received in exchange for equity awards in the financial statements based on the grant date calculated fair value of the awards. The Company recognizes stock-based compensation expense over the period during which an employee is required to provide service in exchange for the award (the vesting period). | |||||||||||||
Restricted stock units (“RSU’s”) awarded under the Company’s 2011 Incentive Plan are granted shortly after the end of each year based upon the performance of the Company and its individual subsidiaries in 2011 through 2015. Additional RSUs may be granted based upon cumulative five-year performance. The Company estimates the number of shares that will be granted for the most recent fiscal year end and the five-year cumulative performance based on actual and expected future operating results. Compensation expense for RSU’s expected to be granted for the most recent fiscal year and the cumulative five-year based awards is calculated using the fair value of the Company stock at each period end and is adjusted to the fair value as of each future period-end until granted. | |||||||||||||
Earnings Per Share - Basic earnings per share is based on the weighted average number of common shares outstanding and diluted earnings per share includes potential dilutive effects of options, restricted stock units and shares held in the Company’s supplemental executive retirement plan. | |||||||||||||
The following table sets forth the compensation of net income attributable to controlling interest from continuing operations and the number of basic and diluted earnings per share: | |||||||||||||
Year Ended December 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Numerator: | |||||||||||||
Net income from continuing operations | $ | 34,206 | $ | 39,214 | $ | 34,210 | |||||||
Net income (loss) attributable to non-controlling interests | (252 | ) | 172 | 161 | |||||||||
Net income attributable to controlling interest from continuing operations | $ | 34,458 | $ | 39,042 | $ | 34,049 | |||||||
Denominator: | |||||||||||||
Denominator for basic earnings per share | 22,819 | 22,749 | 22,680 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Employee stock options and restricted stock units | 176 | 218 | 262 | ||||||||||
Supplemental executive retirement plan | 110 | 114 | 109 | ||||||||||
Denominator for diluted earnings per share | 23,105 | 23,081 | 23,051 | ||||||||||
Antidilutive options were not included in the diluted EPS computation for the years presented. The number of antidilutive options in the three years ended December 31, 2014 was not material. | |||||||||||||
Derivatives and Hedging Activities - The Company recognizes all derivatives in the consolidated balance sheets at their fair value. Derivatives that are not hedges are adjusted to fair value through income. If the derivative is a hedge, depending on the nature of the hedge, changes in the fair value of derivatives are either offset against the change in fair value of assets, liabilities, or firm commitments through income or recognized in other comprehensive income until the hedged item is recognized in income. The ineffective portion of a derivative’s change in fair value is immediately recognized in income. From time to time the Company’s foreign subsidiaries enter into foreign currency exchange contracts to mitigate exposure to fluctuation in currency exchange rates. See Note 13, Derivative Financial Instruments, regarding foreign exchange contracts outstanding at December 31, 2014 and 2013. | |||||||||||||
Shipping and Handling Fees and Cost - The Company records revenues earned for shipping and handling as revenue, while the cost of shipping and handling is classified as cost of goods sold. | |||||||||||||
Litigation Contingencies - In the normal course of business in the industry, the Company is named as a defendant in a number of legal proceedings associated with product liability and other matters. See Note 15, Contingent Matters for additional discussion of the Company’s legal contingencies. | |||||||||||||
Business Combinations - The Company accounts for business combinations using the acquisition method. Accordingly, intangible assets are recorded apart from goodwill if they arise from contractual or legal rights or if they are separable from goodwill. Related third party acquisition costs are expensed as incurred and contingent consideration is booked at its fair value as part of the purchase price. | |||||||||||||
Subsequent Events Review - Management has evaluated events occurring between December 31, 2014 and the date these financial statements were filed with the Securities and Exchange Commission for proper recording or disclosure therein. | |||||||||||||
Recent Accounting Pronouncements – | |||||||||||||
In April 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity,” which raises the previous threshold for disposals to qualify as discontinued operations and requires new disclosures for individually material disposal transactions that do not meet the definition of a discontinued operation. The standard also allows companies to have significant continuing involvement and continuing cash flows with the discontinued operation. The standard requires the reclassification of assets and liabilities of a discontinued operation in the balance sheet for all periods presented. The standard is effective for public entities for annual periods beginning on or after December 15, 2014 and is to be implemented prospectively. The Company does not expect the adoption of this statement to have a significant impact on the Company’s financial position or results of operations. | |||||||||||||
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers,” which supersedes existing revenue guidance under U.S. GAAP. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The implementation of this new standard will require companies to use more judgment and to make more estimates than under current guidance. The standard is effective for public companies for annual periods beginning after December 15, 2016. The Company plans to adopt the new standard effective January 1, 2017. The Company has not yet determined what impact, if any, the adoption of this new standard will have on the Company’s financial position or results of operations. |
Inventories
Inventories | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventories [Abstract] | |||||||||
Inventories | 2. Inventories | ||||||||
Inventories consist of the following: | |||||||||
31-Dec | |||||||||
2014 | 2013 | ||||||||
Raw materials and parts | $ | 149,171 | $ | 139,372 | |||||
Work-in-process | 105,163 | 74,663 | |||||||
Finished goods | 102,235 | 99,812 | |||||||
Used equipment | 31,266 | 28,466 | |||||||
Total | $ | 387,835 | $ | 342,313 |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||||||
Fair Value Measurements | 3. Fair Value Measurements | ||||||||||||||||
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 Company (“Astec Insurance”), the Company’s captive insurance company, and marketable equity securities held in an unqualified Supplemental Executive Retirement Plan (“SERP”). The financial assets held in the SERP also constitute a liability of the Company for financial reporting purposes. The Company’s subsidiaries also occasionally enter into foreign currency exchange contracts to mitigate exposure to fluctuations in currency exchange rates. | |||||||||||||||||
For cash and cash equivalents, trade receivables, other receivables, revolving debt and accounts payable, the carrying amount approximates the fair value because of the short-term nature of these instruments. Investments are carried at their fair value based on quoted market prices for identical or similar assets or, where no quoted prices exist, other observable inputs for the asset. The fair values of foreign currency exchange contracts are based on quotations from various banks for similar instruments using models with market based inputs. | |||||||||||||||||
As indicated in the tables below, the Company has determined that its financial assets and liabilities at December 31, 2014 and 2013 are level 1 and level 2 in the fair value hierarchy: | |||||||||||||||||
31-Dec-14 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Financial Assets: | |||||||||||||||||
Trading equity securities: | |||||||||||||||||
SERP money market fund | $ | 532 | $ | -- | $ | -- | $ | 532 | |||||||||
SERP mutual funds | 3,195 | -- | -- | 3,195 | |||||||||||||
Preferred stocks | 973 | -- | -- | 973 | |||||||||||||
Trading debt securities: | |||||||||||||||||
Corporate bonds | 2,825 | 1,184 | -- | 4,009 | |||||||||||||
Municipal bonds | -- | 2,060 | -- | 2,060 | |||||||||||||
Floating rate notes | 100 | 322 | -- | 422 | |||||||||||||
U.S. Treasury bill | 622 | -- | -- | 622 | |||||||||||||
Other government bonds | -- | 1,496 | -- | 1,496 | |||||||||||||
Derivative financial instruments | -- | 547 | -- | 547 | |||||||||||||
Total financial assets | $ | 8,247 | $ | 5,609 | $ | -- | $ | 13,856 | |||||||||
Financial Liabilities: | |||||||||||||||||
SERP liabilities | $ | -- | $ | 8,128 | $ | -- | $ | 8,128 | |||||||||
Total financial liabilities | $ | -- | $ | 8,128 | $ | -- | $ | 8,128 | |||||||||
31-Dec-13 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Financial Assets: | |||||||||||||||||
Trading equity securities: | |||||||||||||||||
SERP money market fund | $ | 783 | $ | -- | $ | -- | $ | 783 | |||||||||
SERP mutual funds | 2,813 | -- | -- | 2,813 | |||||||||||||
Preferred stocks | 1,170 | -- | -- | 1,170 | |||||||||||||
Short-term investments in mutual funds | 16,073 | -- | -- | 16,073 | |||||||||||||
Trading debt securities: | |||||||||||||||||
Corporate bonds | 3,696 | 1,155 | -- | 4,851 | |||||||||||||
Municipal bonds | -- | 1,908 | -- | 1,908 | |||||||||||||
Floating rate notes | 103 | 446 | -- | 549 | |||||||||||||
U.S. Treasury bill | 250 | -- | -- | 250 | |||||||||||||
Other government bonds | -- | 864 | -- | 864 | |||||||||||||
Derivative financial instruments | -- | 452 | -- | 452 | |||||||||||||
Total financial assets | $ | 24,888 | $ | 4,825 | $ | -- | $ | 29,713 | |||||||||
Financial Liabilities: | |||||||||||||||||
SERP liabilities | $ | -- | $ | 7,828 | $ | -- | $ | 7,828 | |||||||||
Total financial liabilities | $ | -- | $ | 7,828 | $ | -- | $ | 7,828 | |||||||||
The Company reevaluates the volume of trading activity for each of its investments at the end of each reporting period and adjusts the level within the fair value hierarchy as needed. Due to increased trading activity, $164 of investments included in Level 2 at December 31, 2013 were transferred to Level 1 at December 31, 2014. |
Investments
Investments | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Investments [Abstract] | |||||||||||||||||
Investments | 4. Investments | ||||||||||||||||
The Company’s trading securities consist of the following: | |||||||||||||||||
Amortized | Gross | Gross | Fair Value | ||||||||||||||
Cost | Unrealized | Unrealized | (Net Carrying | ||||||||||||||
Gains | Losses | Amount) | |||||||||||||||
31-Dec-14 | |||||||||||||||||
Trading equity securities | $ | 4,335 | $ | 374 | $ | 9 | $ | 4,700 | |||||||||
Trading debt securities | 8,573 | 107 | 71 | 8,609 | |||||||||||||
Total | $ | 12,908 | $ | 481 | $ | 80 | $ | 13,309 | |||||||||
31-Dec-13 | |||||||||||||||||
Trading equity securities | $ | 19,411 | $ | 1,459 | $ | 31 | $ | 20,839 | |||||||||
Trading debt securities | 8,385 | 174 | 137 | 8,422 | |||||||||||||
Total | $ | 27,796 | $ | 1,633 | $ | 168 | $ | 29,261 | |||||||||
Trading equity investments noted above are valued at their estimated fair value based on their quoted market prices and trading debt securities are valued based upon a mix of observable market prices and model driven prices derived from a matrix of observable market prices for assets with similar characteristics obtained from a nationally recognized third party pricing service. Additionally, a significant portion of the trading equity securities are in equity money market and mutual funds and also comprise a portion of the Company’s liability under its SERP. See Note 12, Pension and Retirement Plans, for additional information on these investments and the SERP. | |||||||||||||||||
Trading debt securities are comprised mainly of marketable debt securities held by Astec Insurance. Astec Insurance has an investment strategy that focuses on providing regular and predictable interest income from a diversified portfolio of high-quality fixed income securities. | |||||||||||||||||
Net unrealized gains or losses incurred on investments still held as of the end of each reporting period amounted to a loss of $17 in 2014 and gains of $175 and $173 in 2013 and 2012, respectively. |
Goodwill
Goodwill | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Goodwill [Abstract] | |||||||||||||||||||||
Goodwill | 5. Goodwill | ||||||||||||||||||||
Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. Current U.S. accounting guidance provides that goodwill and indefinite-lived intangible assets be tested for impairment at least annually. The Company performs the required valuation procedures each year as of December 31 after the following year’s forecasts are submitted and reviewed. The valuations performed in 2014, 2013 and 2012 indicated no impairment of goodwill. | |||||||||||||||||||||
The changes in the carrying amount of goodwill by reporting segment during the years ended December 31, 2014 and 2013 are as follows: | |||||||||||||||||||||
Infrastructure | Aggregate and | Energy Group | Corporate | Total | |||||||||||||||||
Group | Mining Group | ||||||||||||||||||||
Balance, December 31, 2012 | $ | 8,673 | $ | 6,338 | $ | -- | $ | -- | $ | 15,011 | |||||||||||
Foreign currency translation | 46 | -- | -- | -- | 46 | ||||||||||||||||
Balance, December 31, 2013 | 8,719 | 6,338 | -- | -- | 15,057 | ||||||||||||||||
Acquisition | -- | 18,256 | -- | -- | 18,256 | ||||||||||||||||
Foreign currency translation | (135 | ) | (1,183 | ) | -- | -- | (1,318 | ) | |||||||||||||
Balance, December 31, 2014 | $ | 8,584 | $ | 23,411 | $ | -- | $ | -- | $ | 31,995 |
Longlived_and_Intangible_Asset
Long-lived and Intangible Assets | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Long Lived and Intangible Assets [Abstract] | |||||||||||||||||||||||||
Long-lived and Intangible Assets | 6 | Long-lived and Intangible Assets | |||||||||||||||||||||||
Long-lived assets, including finite-lived intangible assets, are reviewed for impairment when events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Impairment losses for long-lived assets “held and used” and finite-lived intangible assets are recorded if the sum of the estimated future undiscounted cash flows used to test for recoverability is less than the carrying value. | |||||||||||||||||||||||||
Amortization expense on intangible assets was $2,735, $1,066 and $1,855 for 2014, 2013 and 2012, respectively. Intangible assets consisted of the following at December 31, 2014 and 2013: | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net Carrying | ||||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Value | ||||||||||||||||||||
Value | Value | Value | |||||||||||||||||||||||
Dealer network and customer relationships | $ | 13,600 | $ | (4,245 | ) | $ | 9,355 | $ | 6,678 | $ | (3,019 | ) | $ | 3,659 | |||||||||||
Trade names | 4,984 | (645 | ) | 4,339 | 2,575 | (353 | ) | 2,222 | |||||||||||||||||
Other | 5,471 | (1,893 | ) | 3,578 | 1,535 | (873 | ) | 662 | |||||||||||||||||
Total | $ | 24,055 | $ | (6,783 | ) | $ | 17,272 | $ | 10,788 | $ | (4,245 | ) | $ | 6,543 | |||||||||||
Intangible asset amortization expense is expected to be $3,152, $2,863, $2,466, $2,241, and $1,589 in the years ending December 31, 2015, 2016, 2017, 2018 and 2019, respectively, and $4,961 thereafter. |
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property and Equipment [Abstract] | |||||||||
Property and Equipment | 7. Property and Equipment | ||||||||
Property and equipment consist of the following: | |||||||||
31-Dec | |||||||||
2014 | 2013 | ||||||||
Land | $ | 14,024 | $ | 13,952 | |||||
Building and land improvements | 146,266 | 136,000 | |||||||
Manufacturing and office equipment | 235,623 | 227,641 | |||||||
Aviation equipment | 13,698 | 14,913 | |||||||
Less accumulated depreciation | (222,001 | ) | (207,986 | ) | |||||
Total | $ | 187,610 | $ | 184,520 | |||||
Depreciation expense was $21,343, $20,966 and $20,945 for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||
In late January 2015, the Company decided to end production at its Astec Underground, Inc.’s Loudon, Tennessee manufacturing facility by June 2015. Production of the product lines, which are included in the Energy Group, currently manufactured in Loudon will be transferred to the Company’s GEFCO subsidiary’s manufacturing facility in Enid, Oklahoma. As a result of this action, the Company intends to sell the land and building located in Loudon which have a net book value of $9,209 at December 31, 2014. The Company evaluated the facility for impairment and determined that no impairment existed at December 31, 2014. |
Leases
Leases | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Leases [Abstract] | |||||
Leases | 8. Leases | ||||
The Company leases certain land, buildings and equipment for use in its operations under various operating leases. Total rental expense charged to operations under operating leases was approximately $2,544, $2,436 and $2,753 for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||
Minimum rental commitments for all noncancelable operating leases at December 31, 2014 are as follows: | |||||
2015 | $ | 1,463 | |||
2016 | 1,274 | ||||
2017 | 434 | ||||
2018 | 102 | ||||
2019 | 25 | ||||
Thereafter | -- | ||||
$ | 3,298 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2014 | |
Debt [Abstract] | |
Debt | 9. Debt |
On April 12, 2012, the Company and certain of its subsidiaries entered into an amended and restated credit agreement with Wells Fargo whereby Wells Fargo extended to the Company an unsecured line of credit of up to $100,000, including a sub-limit for letters of credit of up to $25,000. The amended and restated credit agreement replaced the expiring $100,000 credit facility between the Company and Wells Fargo. There were no outstanding revolving or term loan borrowings under the credit facility at December 31, 2014 or 2013. Letters of credit totaling $12,645 were outstanding under the credit facility as of December 31, 2014, resulting in additional borrowing ability of $87,355 on the credit facility as of December 31, 2014. The amended and restated agreement has a five-year term expiring in April 2017. Borrowings under the agreement are subject to an interest rate equal to the daily one-month LIBOR rate plus a 0.75% margin. The unused facility fee is 0.175%. Interest only payments are due monthly. The credit agreement contains certain financial covenants, including provisions concerning required levels of annual net income, minimum tangible net worth and maximum allowed capital expenditures. The Company was in compliance with these covenants as of December 31, 2014. | |
The Company’s South African subsidiary, Osborn Engineered Products SA (Pty) Ltd (“Osborn”), has a credit facility of $8,227 (ZAR 95,000) to finance short-term working capital needs, as well as to cover performance letters of credit, advance payment and retention guarantees. As of December 31, 2014, Osborn had borrowings of $2,814 and $487 in performance, advance payment and retention guarantees outstanding under the facility. The facility is unsecured and no unused facility fees are charged. As of December 31, 2014, Osborn had available credit under the facility of $4,926. The interest rate is 0.25% less than the South Africa prime rate, resulting in a rate of 9.00% as of December 31, 2014. Osborn’s loans are included in the accompanying balance sheets as short-term debt of $2,814. | |
The Company's Brazilian subsidiary, Astec do Brasil Fabricacao de Equipamentos Ltda. ("Astec Brazil"), has outstanding working capital loans totaling $5,658 from a Brazilian bank with interest rates of approximately 12.5%. The loans have maturity dates ranging from May 2016 to September 2017 and are secured by letters of credit totaling $8,674 issued by Astec Industries, Inc. Additionally, Astec Brazil has various 5-year equipment financing loans outstanding with another Brazilian bank in the aggregate of $2,430 as of December 31, 2014 that have interest rates ranging from 3.5% to 6.0%. These equipment loans have maturity dates ranging from January 2019 to September 2019. Astec Brazil's loans are included in the accompanying balance sheets as short-term debt of $1,027 and long-term debt of $7,061. | |
Long-term debt maturities are expected to be $1,027, $4,783, $1,018, $988 and $199 in the years ending December 31, 2015, 2016, 2017, 2018 and 2019, respectively, and $73 thereafter. |
Product_Warranty_Reserves
Product Warranty Reserves | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Product Warranty Reserves [Abstract] | |||||||||||||
Product Warranty Reserves | 10. Product Warranty Reserves | ||||||||||||
The Company warrants its products against manufacturing defects and performance to specified standards. The warranty period and performance standards vary by product, 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 warranty liability is primarily based on historical claim rates, nature of claims and the associated costs. | |||||||||||||
Changes in the Company’s product warranty liability during 2014, 2013 and 2012 are as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Reserve balance, beginning of year | $ | 12,716 | $ | 11,052 | $ | 12,663 | |||||||
Warranty liabilities accrued | 12,796 | 12,199 | 11,152 | ||||||||||
Warranty liabilities settled | (15,563 | ) | (10,171 | ) | (11,022 | ) | |||||||
Other | 83 | (364 | ) | (1,741 | ) | ||||||||
Reserve balance, end of year | $ | 10,032 | $ | 12,716 | $ | 11,052 |
Accrued_Loss_Reserves
Accrued Loss Reserves | 12 Months Ended |
Dec. 31, 2014 | |
Accrued Loss Reserves [Abstract] | |
Accrued Loss Reserves | 11. Accrued Loss Reserves |
The Company accrues 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 claim 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 at December 31, 2014 were $7,562 compared to $7,344 at December 31, 2013, of which $4,512 and $4,016 was included in other long-term liabilities at December 31, 2014 and 2013, respectively. |
Pension_and_Retirement_Plans
Pension and Retirement Plans | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Pension and Retirement Plans [Abstract] | |||||||||||||||||
Pension and Retirement Plans | 12. Pension and Retirement Plans | ||||||||||||||||
Prior to December 31, 2003, all employees of the Company’s Kolberg-Pioneer, Inc. subsidiary were covered by a defined benefit pension plan. After December 31, 2003, all benefit accruals under the plan ceased and no new employees could become participants in the plan. Benefits paid under this plan are based on years of service multiplied by a monthly amount. The Company’s funding policy for the plan is to make the minimum annual contributions required by applicable regulations. | |||||||||||||||||
The Company’s investment strategy for the plan is to earn a rate of return, based on the fair value of plan assets, sufficient to match or exceed the long- term growth of pension liabilities. The investment policy states that the Plan Committee in its sole discretion shall determine the allocation of plan assets among the following four asset classes: cash equivalents, fixed-income securities, domestic equities and international equities. The Plan Committee attempts to ensure adequate diversification of the invested assets through investment in an exchange traded mutual fund that invests in a diversified portfolio of stocks, bonds and money market securities. | |||||||||||||||||
The following provides information regarding benefit obligations, plan assets and the funded status of the plan: | |||||||||||||||||
Pension Benefits | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Change in benefit obligation | |||||||||||||||||
Benefit obligation, beginning of year | $ | 13,815 | $ | 14,958 | |||||||||||||
Interest cost | 620 | 561 | |||||||||||||||
Actuarial (gain)/loss | 2,118 | (1,178 | ) | ||||||||||||||
Benefits paid | (567 | ) | (526 | ) | |||||||||||||
Benefit obligation, end of year | 15,986 | 13,815 | |||||||||||||||
Accumulated benefit obligation | $ | 15,986 | $ | 13,815 | |||||||||||||
Change in plan assets | |||||||||||||||||
Fair value of plan assets, beginning of year | $ | 12,693 | $ | 10,784 | |||||||||||||
Actual gain on plan assets | 819 | 1,624 | |||||||||||||||
Employer contribution | 338 | 811 | |||||||||||||||
Benefits paid | (567 | ) | (526 | ) | |||||||||||||
Fair value of plan assets, end of year | 13,283 | 12,693 | |||||||||||||||
Funded status, end of year | $ | (2,703 | ) | $ | (1,122 | ) | |||||||||||
Amounts recognized in the consolidated balance sheets | |||||||||||||||||
Noncurrent liabilities | $ | (2,703 | ) | $ | (1,122 | ) | |||||||||||
Net amount recognized | $ | (2,703 | ) | $ | (1,122 | ) | |||||||||||
Amounts recognized in accumulated other comprehensive income consist of | |||||||||||||||||
Net loss | $ | 5,896 | $ | 4,076 | |||||||||||||
Net amount recognized | $ | 5,896 | $ | 4,076 | |||||||||||||
Weighted average assumptions used to determine benefit obligations as of December 31 | |||||||||||||||||
Discount rate | 3.81 | % | 4.6 | % | |||||||||||||
Expected return on plan assets | 7 | % | 7 | % | |||||||||||||
Rate of compensation increase | N/A | N/A | |||||||||||||||
The measurement date used for the plan was December 31. | |||||||||||||||||
In determining the expected return on plan assets, the historical experience of the plan assets, the current and expected allocation of the plan assets and the expected long-term rates of return were considered. | |||||||||||||||||
All assets in the plan are invested in an exchange traded mutual fund (level 1 in the fair value hierarchy). The allocation of assets within the mutual fund as of the measurement date (December 31) and the target asset allocation ranges by asset category are as follows: | |||||||||||||||||
Actual Allocation | |||||||||||||||||
2014 & 2013 Target | |||||||||||||||||
Asset Category | 2014 | 2013 | Allocation Ranges | ||||||||||||||
Equity securities | 65.6 | % | 65.4 | % | 53 - 73 | % | |||||||||||
Debt securities | 30.1 | % | 27.8 | % | 21 - 41 | % | |||||||||||
Money market funds | 4.3 | % | 6.8 | % | 0 - 15 | % | |||||||||||
Total | 100 | % | 100 | % | |||||||||||||
Net periodic benefit cost for 2014, 2013 and 2012 included the following components: | |||||||||||||||||
Pension Benefits | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Components of net periodic benefit cost | |||||||||||||||||
Interest cost | $ | 620 | $ | 561 | $ | 599 | |||||||||||
Expected return on plan assets | (816 | ) | (693 | ) | (648 | ) | |||||||||||
Amortization of actuarial loss | 295 | 536 | 502 | ||||||||||||||
Net periodic benefit cost | $ | 99 | $ | 404 | $ | 453 | |||||||||||
Other changes in plan assets and benefit obligations recognized in other comprehensive income | |||||||||||||||||
Net actuarial (gain)/loss for the year | $ | 2,115 | $ | (2,109 | ) | $ | 656 | ||||||||||
Amortization of net loss | (295 | ) | (536 | ) | (502 | ) | |||||||||||
Total recognized in other comprehensive income | 1,820 | (2,645 | ) | 154 | |||||||||||||
Total recognized in net periodic benefit cost and other comprehensive income | $ | 1,919 | $ | (2,241 | ) | $ | 607 | ||||||||||
Weighted average assumptions used to determine net periodic benefit cost for years ended December 31 | |||||||||||||||||
Discount rate | 4.6 | % | 3.82 | % | 4.46 | % | |||||||||||
Expected return on plan assets | 7 | % | 7 | % | 7 | % | |||||||||||
No contributions are expected to be funded by the Company in 2015. | |||||||||||||||||
Amounts in accumulated other comprehensive income expected to be recognized in net periodic benefit cost in 2015 for the amortization of a net loss is $500 using the 10% corridor approach as allowed by ASC 715. | |||||||||||||||||
The following estimated future benefit payments are expected to be paid in the years indicated: | |||||||||||||||||
Pension Benefits | |||||||||||||||||
2015 | $ | 710 | |||||||||||||||
2016 | 760 | ||||||||||||||||
2017 | 800 | ||||||||||||||||
2018 | 830 | ||||||||||||||||
2019 | 860 | ||||||||||||||||
2020 - 2024 | 4,500 | ||||||||||||||||
The Company sponsors a 401(k) defined contribution plan to provide eligible employees with additional income upon retirement. The Company’s contributions to the plan are based on employee contributions. The Company’s contributions totaled $5,134, $4,941, and $5,099 in 2014, 2013 and 2012, respectively. | |||||||||||||||||
The Company maintains a Supplemental Executive Retirement Plan (“SERP”) for certain of its executive officers. The plan is a non-qualified deferred compensation plan administered by the Board of Directors of the Company, pursuant to which the Company makes quarterly cash contributions of a certain percentage of executive officers’ compensation. Investments are self-directed by participants and can include Company stock. Upon retirement, participants receive their apportioned share of the plan assets in the form of cash. | |||||||||||||||||
Assets of the SERP consist of the following: | |||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||
Cost | Market | Cost | Market | ||||||||||||||
Company stock | $ | 2,929 | $ | 4,401 | $ | 2,786 | $ | 4,232 | |||||||||
Equity securities | 3,368 | 3,727 | 3,241 | 3,596 | |||||||||||||
Total | $ | 6,297 | $ | 8,128 | $ | 6,027 | $ | 7,828 | |||||||||
The Company periodically adjusts the deferred compensation liability such that the balance of the liability equals the total fair market value of all assets held by the trust established under the SERP. Such liabilities are included in other long-term liabilities on the consolidated balance sheets. The equity securities are included in investments in the consolidated balance sheets and classified as trading equity securities. See Note 4, Investments, for additional information. The cost of the Company stock held by the plan is included as a reduction in shareholders’ equity in the consolidated balance sheets. | |||||||||||||||||
The change in the fair market value of Company stock held in the SERP results in a charge or credit to selling, general and administrative expenses in the consolidated statements of income because the acquisition cost of the Company stock in the SERP is recorded as a reduction of shareholders’ equity and is not adjusted to fair market value; however, the related liability is adjusted to the fair market value of the stock as of each period end. The Company recognized expense of $552, $601 and $115 in 2014, 2013 and 2012, respectively, related to the change in the fair value of the Company stock held in the SERP. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2014 | |
Derivative Financial Instruments [Abstract] | |
Derivative Financial Instruments | 13. Derivative Financial Instruments |
The Company is exposed to certain risks relating to its ongoing business operations. The primary risk managed by using derivative instruments is foreign currency risk. From time to time the Company’s foreign subsidiaries enter into foreign currency exchange contracts to mitigate exposure to fluctuations in currency exchange rates. The fair value of the derivative financial instrument is recorded on the Company’s consolidated balance sheets and is adjusted to fair value at each measurement date. The changes in fair value are recognized in the consolidated statements of income in the current period. The Company does not engage in speculative transactions nor does it hold or issue derivative financial instruments for trading purposes. The average U.S. dollar equivalent notional amount of outstanding foreign currency exchange contracts was $10,328 during 2014. At December 31, 2014, the Company reported $434 of derivative assets in other current assets and $113 of derivative assets in other long-term assets. The Company reported $452 of derivative assets in other current assets at December 31, 2013. The Company recognized, as a component of cost of sales, a net gain on the change in fair value of derivative instruments of $438 and $1,061 for the years ended December 31, 2014 and 2013, respectively. The Company recognized, as a component of cost of sales, a net loss on the change in fair value of derivative instruments of $594 for the year ended December 31, 2012. There were no derivatives that were designated as hedges at December 31, 2014 or 2013. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Taxes [Abstract] | |||||||||||||
Income Taxes | 14. Income Taxes | ||||||||||||
For financial reporting purposes, income from continuing operations before income taxes includes the following components: | |||||||||||||
Year Ended December 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Continuing operations | |||||||||||||
United States | $ | 57,651 | $ | 53,315 | $ | 47,400 | |||||||
Foreign | (4,045 | ) | 4,927 | 6,297 | |||||||||
Income from continuing operations before income taxes | $ | 53,606 | $ | 58,242 | $ | 53,697 | |||||||
The provision for income taxes consists of the following: | |||||||||||||
Year Ended December 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Continuing operations | |||||||||||||
Current provision: | |||||||||||||
Federal | $ | 18,713 | $ | 16,239 | $ | 9,637 | |||||||
State | 2,992 | 2,785 | 2,096 | ||||||||||
Foreign | 243 | 2,664 | 1,996 | ||||||||||
Total current provision | 21,948 | 21,688 | 13,729 | ||||||||||
Deferred provision (benefit): | |||||||||||||
Federal | (1,627 | ) | (885 | ) | 6,135 | ||||||||
State | (222 | ) | (923 | ) | (768 | ) | |||||||
Foreign | (699 | ) | (852 | ) | 391 | ||||||||
Total deferred provision (benefit) | (2,548 | ) | (2,660 | ) | 5,758 | ||||||||
Total provision (benefit): | |||||||||||||
Federal | 17,086 | 15,354 | 15,772 | ||||||||||
State | 2,770 | 1,862 | 1,328 | ||||||||||
Foreign | (456 | ) | 1,812 | 2,387 | |||||||||
Income tax provision on continuing operations | 19,400 | 19,028 | 19,487 | ||||||||||
Income tax provision on discontinued operations | -- | -- | 3,796 | ||||||||||
Total tax provision | $ | 19,400 | $ | 19,028 | $ | 23,283 | |||||||
The Company’s income tax provision is computed based on the domestic and foreign federal statutory rates and the average state statutory rates, net of related federal benefit. | |||||||||||||
The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate to income before income taxes. A reconciliation of the provision for income taxes at the statutory federal income tax rate to the amount provided is as follows: | |||||||||||||
Year Ended December 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Continuing operations | |||||||||||||
Tax at the statutory federal income tax rate | $ | 18,762 | $ | 20,385 | $ | 18,794 | |||||||
Qualified production activity deduction | (1,360 | ) | (1,395 | ) | (958 | ) | |||||||
State income tax, net of federal income tax | 1,727 | 1,105 | 758 | ||||||||||
Other permanent differences | 840 | 464 | 360 | ||||||||||
Research and development tax credits | (1,323 | ) | (2,054 | ) | (419 | ) | |||||||
Change in valuation allowance | 1,675 | 810 | 1,034 | ||||||||||
Other items | (921 | ) | (287 | ) | (82 | ) | |||||||
Income tax provision on continued operations | 19,400 | 19,028 | 19,487 | ||||||||||
Income tax provision on discontinued operations | -- | -- | 3,796 | ||||||||||
Total tax provision | $ | 19,400 | $ | 19,028 | $ | 23,283 | |||||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. | |||||||||||||
Significant components of the Company’s deferred tax assets and liabilities are as follows: | |||||||||||||
31-Dec | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Inventory reserves | $ | 6,539 | $ | 6,340 | |||||||||
Warranty reserves | 2,988 | 3,558 | |||||||||||
Bad debt reserves | 598 | 636 | |||||||||||
State tax loss carryforwards | 2,377 | 2,100 | |||||||||||
Accrued vacation | 2,060 | 1,805 | |||||||||||
SERP | 1,231 | 1,245 | |||||||||||
Deferred compensation | 1,255 | 1,226 | |||||||||||
Restricted stock units | 2,256 | 2,601 | |||||||||||
Foreign exchange gains/losses | 3,111 | 2,345 | |||||||||||
Pension and post-employment benefits | 2,197 | 1,498 | |||||||||||
Foreign deferred tax assets | 3,311 | 3,642 | |||||||||||
Foreign net operating losses | 3,168 | 1,561 | |||||||||||
Other | 3,267 | 2,708 | |||||||||||
Valuation allowances | (6,029 | ) | (4,354 | ) | |||||||||
Total deferred tax assets | 28,329 | 26,911 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Property and equipment | 19,394 | 19,711 | |||||||||||
Amortization | 1,087 | 1,200 | |||||||||||
Goodwill | 2,014 | 2,012 | |||||||||||
Pension | 1,313 | 1,132 | |||||||||||
Foreign tax rate differential | 2,236 | 3,681 | |||||||||||
Foreign deferred tax liabilities | 3,820 | 1,227 | |||||||||||
Total deferred tax liabilities | 29,864 | 28,963 | |||||||||||
Total net deferred liabilities | $ | (1,535 | ) | $ | (2,052 | ) | |||||||
As of December 31, 2014, the Company has state net operating loss carryforwards of $56,116, foreign net operating loss carryforwards of approximately $10,482, and state tax credit carryforwards of $1,161 for tax purposes, which will be available to offset future taxable income. If not used, these carryforwards will expire between 2015 and 2028. A significant portion of the valuation allowance for deferred tax assets relates to the future utilization of state and foreign net operating loss and state tax credit carryforwards. Future utilization of these net operating loss and state tax credit carryforwards is evaluated by the Company on a periodic basis and the valuation allowance is adjusted accordingly. In 2014, the valuation allowance on these carryforwards was increased by $1,720 due to uncertainty about whether certain entities will realize their state and foreign net operating loss carryforwards. The Company has also determined that the recovery of certain other deferred tax assets is uncertain. The valuation allowance for these deferred tax assets was decreased by $45. | |||||||||||||
Undistributed earnings of the Company’s Canadian subsidiary, Breaker Technology Ltd., and Northern Ireland subsidiary, Telestack Limited, are considered to be indefinitely reinvested; accordingly, no provision for U.S. federal and state income taxes has been provided thereon. Upon repatriation of those earnings, in the form of dividends or otherwise, the Company would be subject to additional U.S. income taxes, net of an adjustment for foreign tax credits and possible withholding taxes payable. The cumulative amount of Breaker Technology, Ltd.’s unrecovered basis difference is $8,900 as of December 31, 2014. The cumulative amount of Telestack Limited’s unrecovered basis difference is $1,000 as of December 31, 2014. The determination of the unrecognized deferred tax liability on the basis difference is not practical at this time. | |||||||||||||
The Company files income tax returns in the U.S. federal jurisdiction, and in various state and foreign jurisdictions. The Company is no longer subject to U.S. federal income tax examinations by authorities for years prior to 2010. With few exceptions, the Company is no longer subject to state and local or non-U.S. income tax examinations by authorities for years prior to 2007. | |||||||||||||
The Company has a liability for unrecognized tax benefits of $2,585 and $1,933 (excluding accrued interest and penalties) as of December 31, 2014 and 2013, respectively. The Company recognizes interest and penalties accrued related to unrecognized tax benefits in tax expense. The Company recognized tax benefits of $107 and $101 in 2014 and 2013, respectively, for penalties and interest related to amounts that were settled for less than previously accrued. The net total amount of unrecognized tax benefits that, if recognized, would affect the Company’s effective tax rate is $2,722 and $1,954 at December 31, 2014 and 2013, respectively. The Company does not expect a significant increase or decrease to the total amount of unrecognized tax benefits within the next twelve months. | |||||||||||||
A reconciliation of the beginning and ending unrecognized tax benefits excluding interest and penalties is as follows: | |||||||||||||
31-Dec | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance, beginning of year | $ | 1,933 | $ | 2,095 | $ | 1,682 | |||||||
Additions for tax positions related to the current year | 127 | 102 | 396 | ||||||||||
Additions for tax positions related to prior years | 525 | 128 | 90 | ||||||||||
Reductions due to lapse of statutes of limitations | -- | (149 | ) | (73 | ) | ||||||||
Decreases related to settlements with tax authorities | -- | (243 | ) | -- | |||||||||
Balance, end of year | $ | 2,585 | $ | 1,933 | $ | 2,095 | |||||||
The December 31, 2014 balance of unrecognized tax benefits includes no tax positions for which the ultimate deductibility is highly certain but the timing of such deductibility is uncertain. Accordingly, there is no impact to the deferred tax accounting for certain tax benefits. |
Contingent_Matters
Contingent Matters | 12 Months Ended |
Dec. 31, 2014 | |
Contingent Matters [Abstract] | |
Contingent Matters | 15. Contingent Matters |
Certain customers have financed purchases of Company products through arrangements in which the Company is contingently liable for customer debt of $2,419 and $693 at December 31, 2014 and 2013, respectively. The maximum potential amount of future payments for which the Company would be liable was equal to $2,419 as of December 31, 2014. These arrangements also 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 $101 related to these guarantees as of December 31, 2014. | |
In addition, the Company is contingently liable under letters of credit issued by Wells Fargo totaling $12,645 as of December 31, 2014, including $8,674 of letters of credit guaranteeing certain Astec Brazil bank debt. The outstanding letters of credit expire at various dates through November 2017. As of December 31, 2014, Osborn is contingently liable for a total of $487 in performance letters of credit, advance payments and retention guarantees. As of December 31, 2014, Astec Australia is contingently liable for a total of $23 in performance bank guarantees. The maximum potential amount of future payments under these letters of credit and guarantees for which the Company could be liable is $13,155 as of December 31, 2014. | |
The Company is currently a party to various claims and legal proceedings that have arisen in the ordinary course of 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 possible 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. | |
During 2004, the Company received notice from the Environmental Protection Agency ("EPA") that it may be responsible for a portion of the costs incurred in connection with an environmental cleanup in Illinois. The discharge of hazardous materials and associated cleanup relate to activities occurring prior to the Company's acquisition of Barber-Greene in 1986. The Company believes that over 300 other parties have received similar notices. At this time, the Company cannot predict whether the EPA will seek to hold the Company liable for a portion of the cleanup costs or the amount of any such liability. The Company has not recorded a liability with respect to this matter because no estimate of the amount of any such liability can be made at this time. |
Shareholders_Equity
Shareholders' Equity | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Shareholders' Equity [Abstract] | |||||||||
Shareholders' Equity | 16. Shareholders’ Equity | ||||||||
Beginning in 2006 and again in 2011, the Company implemented five-year plans to award key members of management restricted stock units (“RSUs”) each year based upon annual financial performance of the Company and its subsidiaries. Each five-year plan allows up to 700 of newly issued shares of Company stock to be granted to employees. The number of RSUs granted each year is determined based upon the performance of individual subsidiaries and consolidated annual financial performance, with additional RSUs available for cumulative five-year results. Generally, each award vests at the end of five years from the date of grant, or at the time a recipient retires after reaching age 65, if earlier. The fair value of the RSUs that vested during 2014, 2013 and 2012 was $3,045, $2,405, and $2,719, respectively. The grant date tax benefit was reduced by $470, $77 and $67 upon the vesting of RSUs in 2014, 2013 and 2012, respectively. | |||||||||
Compensation expense of $961, $1,231, and $1,054 was recorded in the years ended December 31, 2014, 2013 and 2012, respectively, to reflect the fair value of RSUs granted (or anticipated to be granted for 2014 performance) less estimated forfeitures, amortized over the portion of the vesting period occurring during the period. Related income tax benefits of $348, $417, and $387 were recorded in 2014, 2013 and 2012, respectively. Based upon the grant date fair value of RSUs, it is anticipated that $2,217 of additional compensation costs will be recognized in future periods through 2022 for RSUs earned through December 31, 2014. The weighted average period over which this additional compensation cost will be expensed is 3.8 years. RSUs do not participate in Company paid dividends. | |||||||||
Changes in restricted stock units during the year ended December 31, 2014 are as follows: | |||||||||
2014 | Weighted Average | ||||||||
Grant Date | |||||||||
Fair Value | |||||||||
Unvested restricted stock units, beginning of year | 262 | $ | 30.54 | ||||||
Restricted stock units granted | 14 | 40.52 | |||||||
Restricted stock units forfeited | (4 | ) | 32.65 | ||||||
Restricted stock units vested | (75 | ) | 24.38 | ||||||
Unvested restricted stock units, end of year | 197 | 33.54 | |||||||
The grant date fair value of the restricted stock units granted during 2014, 2013 and 2012 was $561, $763 and $1,303, respectively. | |||||||||
The Company has adopted an Amended and Restated Shareholder Protection Rights Agreement and declared a distribution of one right (the “Right”) for each outstanding share of Company common stock, par value $0.20 per share (the “Common Stock”). Each Right entitles the registered holder (other than the “Acquiring Person” as defined below) to purchase from the Company one one-hundredth of a share (a “Unit”) of Series A Participating Preferred Stock, par value $1.00 per share (the “Preferred Stock”), at a purchase price of $72.00 per Unit, subject to adjustment. The Rights currently attach to the certificates representing shares of outstanding Company Common Stock, and no separate Rights certificates will be distributed. The Rights will separate from the Common Stock upon the earlier of ten business days (unless otherwise delayed by the Board) following the: 1) public announcement that a person or group of affiliated or associated persons (the “Acquiring Person”) has acquired, obtained the right to acquire, or otherwise obtained beneficial ownership of fifteen percent (15%) or more of the then outstanding shares of Common Stock, or 2) commencement of a tender offer or exchange offer that would result in an Acquiring Person beneficially owning fifteen percent (15%) or more of the then outstanding shares of Common Stock. The Board of Directors may terminate the Rights without any payment to the holders thereof at any time prior to the close of business ten business days following announcement by the Company that a person has become an Acquiring Person. Once the Rights are separated from the Common Stock, then the Rights entitle the holder (other than the Acquiring Person) to purchase shares of Common Stock (rather than Preferred Stock) having a current market value equal to twice the Unit purchase price. The Rights, which do not have voting power and are not entitled to dividends, expire on December 22, 2015. In the event of a merger, consolidation, statutory share exchange or other transaction in which shares of Common Stock are exchanged, each Unit of Preferred Stock will be entitled to receive the per share amount paid in respect of each share of Common Stock. |
Operations_by_Industry_Segment
Operations by Industry Segment and Geographic Area | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Operations by Industry Segment and Geographic Area [Abstract] | |||||||||||||||||||||
Operations by Industry Segment and Geographic Area | 17. Operations by Industry Segment and Geographic Area | ||||||||||||||||||||
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 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: | |||||||||||||||||||||
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, wood pellet plants, asphalt pavers, material transfer vehicles, milling machines and paver screeds. The other two business units in this segment primarily 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, wood pellet processors and foreign and domestic governmental agencies. | |||||||||||||||||||||
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 and inland terminal 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. | |||||||||||||||||||||
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. | |||||||||||||||||||||
Corporate - This category consists of business units that do not meet the requirements for separate disclosure as an operating segment or inclusion in one of the other reporting segments 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. | |||||||||||||||||||||
The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. Intersegment sales and transfers are valued at prices comparable to those for unrelated parties. | |||||||||||||||||||||
Segment information for 2014 | |||||||||||||||||||||
Infrastructure | Aggregate and | Energy Group | Corporate | Total | |||||||||||||||||
Group | Mining Group | ||||||||||||||||||||
Revenues from external customers | $ | 386,356 | $ | 384,883 | $ | 204,356 | $ | -- | $ | 975,595 | |||||||||||
Intersegment revenues | 26,661 | 33,009 | 17,548 | -- | 77,218 | ||||||||||||||||
Interest expense | 31 | 463 | 11 | 215 | 720 | ||||||||||||||||
Depreciation and amortization | 7,045 | 10,120 | 6,358 | 853 | 24,376 | ||||||||||||||||
Income taxes | 1,365 | 1,235 | 348 | 16,452 | 19,400 | ||||||||||||||||
Profit (loss) | 29,477 | 32,900 | 10,316 | (35,270 | ) | 37,423 | |||||||||||||||
Assets | 539,794 | 494,428 | 244,003 | 305,282 | 1,583,507 | ||||||||||||||||
Capital expenditures | 5,375 | 16,169 | 2,875 | 413 | 24,832 | ||||||||||||||||
Segment information for 2013 | |||||||||||||||||||||
Infrastructure | Aggregate and | Energy Group | Corporate | Total | |||||||||||||||||
Group | Mining Group | ||||||||||||||||||||
Revenues from external customers | $ | 398,399 | $ | 350,514 | $ | 184,085 | $ | -- | $ | 932,998 | |||||||||||
Intersegment revenues | 21,682 | 45,435 | 12,857 | -- | 79,974 | ||||||||||||||||
Interest expense | 13 | 12 | 4 | 394 | 423 | ||||||||||||||||
Depreciation and amortization | 7,417 | 7,906 | 6,114 | 828 | 22,265 | ||||||||||||||||
Income taxes | 1,567 | 2,642 | 46 | 14,773 | 19,028 | ||||||||||||||||
Profit (loss) | 32,814 | 33,031 | 4,005 | (30,367 | ) | 39,483 | |||||||||||||||
Assets | 502,831 | 427,565 | 223,389 | 315,560 | 1,469,345 | ||||||||||||||||
Capital expenditures | 6,214 | 15,649 | 5,510 | 300 | 27,673 | ||||||||||||||||
Segment Information for 2012 | |||||||||||||||||||||
Infrastructure | Aggregate and Mining Group | Energy Group | Corporate | Total | |||||||||||||||||
Group | |||||||||||||||||||||
Revenues from external customers | $ | 390,753 | $ | 355,428 | $ | 190,092 | $ | -- | $ | 936,273 | |||||||||||
Intersegment revenues | 29,651 | 25,776 | 19,376 | -- | 74,803 | ||||||||||||||||
Interest expense | 143 | 32 | -- | 164 | 339 | ||||||||||||||||
Depreciation andamortization | 7,454 | 7,381 | 5,320 | 780 | 20,935 | ||||||||||||||||
Income taxes on continuing operations | 718 | 1,582 | 175 | 17,012 | 19,487 | ||||||||||||||||
Profit (loss) | 26,916 | 34,687 | 6,149 | (33,023 | ) | 34,729 | |||||||||||||||
Assets | 478,621 | 399,832 | 220,356 | 321,753 | 1,420,562 | ||||||||||||||||
Capital expenditures | 6,874 | 9,376 | 9,604 | 164 | 26,018 | ||||||||||||||||
The totals of segment information for all reportable segments reconciles to consolidated totals as follows: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Net income attributable to controlling interest | |||||||||||||||||||||
Total profit for reportable segments | $ | 72,693 | $ | 69,850 | $ | 67,752 | |||||||||||||||
Corporate expenses, net | (35,270 | ) | (30,367 | ) | (33,023 | ) | |||||||||||||||
Net (income) loss attributable to non-controlling interest | 252 | (172 | ) | (161 | ) | ||||||||||||||||
Elimination of intersegment profit | (3,217 | ) | (269 | ) | (519 | ) | |||||||||||||||
Income from discontinued operations, net of tax | -- | -- | 3,401 | ||||||||||||||||||
Gain on sale of subsidiary, net of tax | -- | -- | 3,378 | ||||||||||||||||||
Total consolidated net income attributable to controlling interest | $ | 34,458 | $ | 39,042 | $ | 40,828 | |||||||||||||||
Assets | |||||||||||||||||||||
Total assets for reportable segments | $ | 1,278,225 | $ | 1,153,785 | $ | 1,098,809 | |||||||||||||||
Corporate assets | 305,282 | 315,560 | 321,753 | ||||||||||||||||||
Elimination of intercompany profit in inventory | (7,896 | ) | (4,679 | ) | (4,410 | ) | |||||||||||||||
Elimination of intercompany receivables | (515,625 | ) | (482,768 | ) | (469,254 | ) | |||||||||||||||
Elimination of investment in subsidiaries | (227,051 | ) | (195,199 | ) | (186,556 | ) | |||||||||||||||
Other eliminations | (27,470 | ) | (37,408 | ) | (31,559 | ) | |||||||||||||||
Total consolidated assets | $ | 805,465 | $ | 749,291 | $ | 728,783 | |||||||||||||||
Interest expense | |||||||||||||||||||||
Total interest expense for reportable segments | $ | 505 | $ | 29 | $ | 175 | |||||||||||||||
Corporate interest expense | 215 | 394 | 164 | ||||||||||||||||||
Total consolidated interest expense | $ | 720 | $ | 423 | $ | 339 | |||||||||||||||
Depreciation and amortization | |||||||||||||||||||||
Total depreciation and amortization for reportable segments | $ | 23,523 | $ | 21,437 | $ | 20,155 | |||||||||||||||
Corporate depreciation and amortization | 853 | 828 | 780 | ||||||||||||||||||
Depreciation from discontinued operations | -- | -- | 2,113 | ||||||||||||||||||
Total consolidated depreciation and amortization | $ | 24,376 | $ | 22,265 | $ | 23,048 | |||||||||||||||
Capital expenditures | |||||||||||||||||||||
Total capital expenditures for reportable segments | $ | 24,419 | $ | 27,373 | $ | 25,854 | |||||||||||||||
Corporate capital expenditures | 413 | 300 | 164 | ||||||||||||||||||
Total consolidated capital expenditures | $ | 24,832 | $ | 27,673 | $ | 26,018 | |||||||||||||||
Sales into major geographic regions were as follows: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
United States | $ | 654,230 | $ | 599,054 | $ | 572,522 | |||||||||||||||
Canada | 61,898 | 70,991 | 79,554 | ||||||||||||||||||
South America (excluding Brazil) | 49,797 | 33,526 | 38,049 | ||||||||||||||||||
Africa | 47,940 | 62,911 | 60,811 | ||||||||||||||||||
Australia and Oceania | 34,772 | 47,505 | 62,683 | ||||||||||||||||||
Russia | 25,589 | 17,440 | 14,641 | ||||||||||||||||||
Other Asian Countries | 17,018 | 5,836 | 8,315 | ||||||||||||||||||
Middle East | 13,327 | 6,699 | 6,705 | ||||||||||||||||||
Brazil | 12,869 | 11,620 | 15,675 | ||||||||||||||||||
Other European Countries | 12,365 | 15,428 | 20,249 | ||||||||||||||||||
Mexico | 9,993 | 15,917 | 23,084 | ||||||||||||||||||
Central America (excluding Mexico) | 9,275 | 5,620 | 6,843 | ||||||||||||||||||
Post-Soviet States (excluding Russia) | 8,245 | 25,849 | 11,533 | ||||||||||||||||||
China | 7,451 | 3,857 | 6,687 | ||||||||||||||||||
West Indies | 4,478 | 5,294 | 2,765 | ||||||||||||||||||
Japan and Korea | 4,377 | 1,749 | 1,509 | ||||||||||||||||||
India | 1,743 | 3,672 | 4,648 | ||||||||||||||||||
Other | 228 | 30 | -- | ||||||||||||||||||
Total foreign | 321,365 | 333,944 | 363,751 | ||||||||||||||||||
Total consolidated sales | $ | 975,595 | $ | 932,998 | $ | 936,273 | |||||||||||||||
Long-lived assets by major geographic region are as follows: | |||||||||||||||||||||
31-Dec | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
United States | $ | 150,425 | $ | 156,927 | |||||||||||||||||
Brazil | 14,798 | 9,024 | |||||||||||||||||||
South Africa | 7,295 | 7,203 | |||||||||||||||||||
Australia | 5,111 | 5,680 | |||||||||||||||||||
Northern Ireland | 5,065 | -- | |||||||||||||||||||
Canada | 3,592 | 4,145 | |||||||||||||||||||
Germany | 1,324 | 1,541 | |||||||||||||||||||
Total foreign | 37,185 | 27,593 | |||||||||||||||||||
Total | $ | 187,610 | $ | 184,520 |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accumulated Other Comprehensive Income [Abstract] | |||||||||
Accumulated Other Comprehensive Income | 18. Accumulated Other Comprehensive Loss | ||||||||
The balance of related after-tax components comprising accumulated other comprehensive loss is summarized below: | |||||||||
31-Dec | |||||||||
2014 | 2013 | ||||||||
Foreign currency translation adjustment | $ | (9,384 | ) | $ | (2,484 | ) | |||
Unrecognized pension and post-retirement benefit cost, net of tax of $2,197 and $1,498, respectively | (3,531 | ) | (2,410 | ) | |||||
Accumulated other comprehensive loss | $ | (12,915 | ) | $ | (4,894 | ) | |||
See Note 12, Pension and Retirement Plans, for discussion of the amounts recognized in accumulated other comprehensive income related to the Company’s Kolberg-Pioneer, Inc. defined pension plan. |
Other_Income_Expense_Net
Other Income (Expense) Net | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Other Income (Expense) - Net [Abstract] | |||||||||||||
Other Income (Expense) - Net | 19. Other Income (Expense) - Net | ||||||||||||
Other income (expense), net from continuing operations consists of the following: | |||||||||||||
Year Ended December 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Investment income | $ | 64 | $ | 853 | $ | 116 | |||||||
Licensing fees | 831 | 764 | 1,211 | ||||||||||
Other | 312 | 320 | 456 | ||||||||||
Total | $ | 1,207 | $ | 1,937 | $ | 1,783 |
Business_Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2014 | |
Business Combinations [Abstract] | |
Business Combinations | 20. Business Combinations |
The Company has funded its initial $13,505 investment in Astec do Brasil Fabricação de Equipamentos Ltda. (“Astec Brazil”) located in Vespasiano, Minas Gerais, Brazil, a consolidated subsidiary of the Company. Once the final capital contribution is received from the minority owner, Astec Brazil is expected to be 75% owned by the Company, with the remaining 25% owned by MDE, a recognized leader in providing material handling solutions to the Brazilian market. | |
At December 31, 2014, Astec Brazil was in the final phase of construction of a manufacturing facility. Assembly operations began in the newly constructed 132,400 square foot facility in the fourth quarter of 2014 and complete production operations are expected to begin in the first quarter of 2015. Manufacturing operations, sales, distribution and product support will be located within the new facility, which is expected to employ approximately 120 employees at full capacity. The new facility will initially manufacture stationary jaw and cone crushers, vibrating feeders, screens and track-mounted crushing units, representing the brands of AMS, KPI-JCI, and Telsmith in the construction and mining industries. The Company also plans to manufacture other product lines at the facility such as BTI products for underground mining. During most of 2014, Astec Brazil operated as a distributor in the South American market for equipment produced by the other Astec Aggregate and Mining Group companies as well as Astec asphalt plants. | |
On April 1, 2014, the Company purchased 100% of the stock of Telestack Limited (“Telestack”) for a total purchase price of $36,183. The purchase price was paid in cash with $2,500 deposited into escrow for a period of time not to exceed one year and is subject to certain post-closing adjustments. The preliminary purchase price allocation recorded includes the recognition of $18,256 of goodwill and $14,445 of other intangible assets consisting of trade names (15 year useful life), patents (5 to 10 year useful lives), non-compete agreements (3 year useful life) and customer relationships (11 year useful life). The Company expects to finalize the purchase price accounting by the end of the first quarter of 2015 upon the finalization of any post-closing adjustments. Telestack’s operating results are included in the Aggregate and Mining Group beginning in the second quarter of 2014. The revenue and results of operations of Telestack were not significant in relation to the Company’s financial statements for the nine-month period ended December 31, 2014 and would not have been significant on a pro forma basis to any earlier periods. | |
Telestack, located in Omagh, Northern Ireland, began operations in 1999 and specializes in the complete in-house design, manufacture, installation and commissioning of a complete line of material handling systems used extensively in the port, aggregate and mining industries. Telestack markets its products throughout the world by a combination of direct sales and distribution through dealers. The Company anticipates the synergies between Telestack and the Company’s existing aggregate and wood pellet product lines will benefit both companies. |
Discontinued_Operations
Discontinued Operations | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Discontinued Operations [Abstract] | |||||
Discontinued Operations | 21. Discontinued Operations | ||||
In October 2012, the Company entered into an agreement to sell its American Augers, Inc. (“Augers”) subsidiary, as well as certain assets related to the Trencor large trencher product line of Astec Underground, Inc., to The Charles Machine Works, Inc. of Perry, Oklahoma. Augers and the Trencor large trencher product line were part of the Company’s Energy Group. The sale of Augers included substantially all the assets and liabilities of Augers and was completed on November 30, 2012 for $42,940, net of cash included in the sale and subject to closing adjustments. The Company retained the Augers vertical oil and gas drill rig product line and relocated it to the GEFCO, Inc. subsidiary located in Enid, Oklahoma. The sale of the Trencor product line was immaterial to the transaction and is included in the Company’s consolidated financial statements in continuing operations. This divestiture, as well as the sale of the small utility trencher and drill line of products to Toro earlier in 2012, is part of the Company’s strategy to exit the cyclical underground sector. | |||||
The Company calculated the post-closing adjustments to the sale price and recorded the resulting $288 purchase price adjustment in other accrued liabilities in the December 31, 2012 consolidated balance sheet. The post-closing adjustments to the sales price were increased to a total of $499 when finalized and paid in early 2013. | |||||
The results of operations and the gain on the sale of Augers are presented as discontinued operations for 2012. Summarized financial information for Augers is below: | |||||
2012 | |||||
Revenues | $ | 53,619 | |||
Discontinued operations | |||||
Operating income before tax | $ | 5,218 | |||
Income tax provision | 1,817 | ||||
Income from operations | 3,401 | ||||
Gain on sale of subsidiary | |||||
Gain on sale of subsidiary before tax | 5,357 | ||||
Income tax provision | 1,979 | ||||
Gain on sale of subsidiary | 3,378 | ||||
Income from discontinued operations | $ | 6,779 | |||
The carrying amounts of the major classes of assets and liabilities disposed on November 30, 2012 were as follows: | |||||
2012 | |||||
Assets | |||||
Cash | $ | 636 | |||
Receivables | 5,334 | ||||
Inventories | 26,568 | ||||
Prepaid and other assets | 430 | ||||
Property and equipment, net | 13,500 | ||||
Other assets | 465 | ||||
Total assets | 46,933 | ||||
Liabilities | |||||
Accounts payable | 2,518 | ||||
Other liabilities | 6,484 | ||||
Total liabilities | 9,002 | ||||
Net assets disposed | $ | 37,931 |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Summary of Significant Accounting Policies [Abstract] | |||||||||||||
Basis of Presentation | Basis of Presentation - The consolidated financial statements include the accounts of Astec Industries, Inc. and its domestic and foreign subsidiaries. The Company’s significant wholly-owned and consolidated subsidiaries at December 31, 2014 are as follows: | ||||||||||||
Astec Australia Pty Ltd | Astec do Brasil Fabricacao de Equipamentos Ltda. (78% owned) | ||||||||||||
Astec, Inc. | Astec Insurance Company | ||||||||||||
Astec Mobile Machinery GmbH | Astec Mobile Screens, Inc. | ||||||||||||
Astec Underground, Inc. | Breaker Technology, Inc. | ||||||||||||
Breaker Technology Ltd. | Carlson Paving Products, Inc. | ||||||||||||
CEI Enterprises, Inc. | GEFCO, Inc. | ||||||||||||
Heatec, Inc. | Johnson Crushers International, Inc. | ||||||||||||
Kolberg-Pioneer, Inc. | Osborn Engineered Products SA (Pty) Ltd (93% owned) | ||||||||||||
Peterson Pacific Corp. | Roadtec, Inc. | ||||||||||||
Telestack Limited | Telsmith, Inc. | ||||||||||||
On November 30, 2012, the Company sold its former American Augers, Inc. subsidiary to The Charles Machine Works, Inc. American Augers’ 2012 results of operations have been reclassified as discontinued operations. | |||||||||||||
All intercompany accounts and transactions have been eliminated in consolidation. | |||||||||||||
Use of Estimates | Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and accompanying notes. Actual results could differ from those estimates. | ||||||||||||
Foreign Currency Translation | Foreign Currency Translation - Subsidiaries located in Australia, Brazil, Canada, Germany, Northern Ireland, and South Africa operate primarily using local functional currencies. Accordingly, assets and liabilities of these subsidiaries are translated using exchange rates in effect at the end of the period, and revenues and costs are translated using average exchange rates for the period. The resulting adjustments are presented as a separate component of accumulated other comprehensive income. Foreign currency transaction gains and losses, net are included in cost of sales and amounted to losses of $1,971 and $522 in 2014 and 2013, and a gain of $867 in 2012, respectively. | ||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments - For cash and cash equivalents, trade receivables, other receivables, revolving debt and accounts payable, the carrying amount approximates the fair value because of the short- term nature of those instruments. Trading equity investments are valued at their estimated fair value based on their quoted market prices and debt securities are valued based upon a mix of observable market prices and model driven prices derived from a matrix of observable market prices for assets with similar characteristics obtained from a nationally recognized third party pricing service. | ||||||||||||
Financial assets and liabilities are categorized as of the end of each reporting period based upon the level of judgment associated with the inputs used to measure their fair value. The inputs used to measure the fair value are identified in the following hierarchy: | |||||||||||||
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. | |||||||||||||
All financial assets and liabilities held by the Company at December 31, 2014 and 2013 are classified as Level 1 or Level 2 as summarized in Note 3, Fair Value Measurements. | |||||||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents - All highly liquid investments with an original maturity of three months or less when purchased are considered to be cash and cash equivalents. | ||||||||||||
Investments | Investments - Investments consist primarily of investment-grade marketable securities. Trading securities are carried at fair value, with unrealized holding gains and losses included in net income. Realized gains and losses are accounted for on the specific identification method. Purchases and sales are recorded on a trade date basis. Management determines the appropriate classification of its investments at the time of acquisition and reevaluates such determination at each balance sheet date. | ||||||||||||
Concentration of Credit Risk | Concentration of Credit Risk - The Company sells products to a wide variety of customers. Accounts receivable are carried at their outstanding principal amounts, less an allowance for doubtful accounts. The Company extends credit to its customers based on an evaluation of the customers’ financial condition generally without requiring collateral although the Company normally requires advance payments or letters of credit on large equipment orders. Credit risk is driven by conditions within the economy and the industry and is principally dependent on each customer’s financial condition. To minimize credit risk, the Company monitors credit levels and financial conditions of customers on a continuing basis. After considering historical trends for uncollectible accounts, current economic conditions and specific customer recent payment history and financial stability, the Company records an allowance for doubtful accounts at a level which management believes is sufficient to cover probable credit losses. Amounts are deemed past due when they exceed the payment terms agreed to by the customer in the sales contract. Past due amounts are charged off when reasonable collection efforts have been exhausted and the amounts are deemed uncollectible by management. As of December 31, 2014, concentrations of credit risk with respect to receivables are limited due to the wide variety of customers. | ||||||||||||
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts - The following table represents a rollforward of the allowance for doubtful accounts for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||
Year Ended December 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Reserve balance, beginning of year | $ | 1,708 | $ | 2,143 | $ | 2,398 | |||||||
Provision | 1,011 | 629 | 759 | ||||||||||
Write offs | (465 | ) | (1,042 | ) | (764 | ) | |||||||
Other | (6 | ) | (22 | ) | (250 | ) | |||||||
Reserve balance, end of year | $ | 2,248 | $ | 1,708 | $ | 2,143 | |||||||
Inventories | Inventories - The Company’s inventory is comprised of raw materials, work-in-process, finished goods and used equipment as described below. | ||||||||||||
Raw material inventory is comprised of purchased steel and other purchased items for use in the manufacturing process or held for sale in the Company’s after-market parts business. The category also includes the manufacturing cost of completed equipment sub-assemblies produced for either integration into equipment manufactured at a later date or for sale in the Company’s after-market parts business. | |||||||||||||
Work-in-process inventory consists of the value of materials, labor and overhead incurred to date in the manufacturing of incomplete equipment or incomplete equipment sub-assemblies being produced. | |||||||||||||
Finished goods inventory consists of completed equipment manufactured for sale to customers. | |||||||||||||
Used inventory consists of equipment accepted in trade or purchased on the open market. The category also includes equipment rented to prospective customers on a short-term or month-to-month basis. Used equipment is valued at the lower of acquired or trade-in cost or market determined on each separate unit. Each unit of rental equipment is valued at its original manufacturing cost and is reduced by an appropriate reserve each month during the period of time the equipment is rented. | |||||||||||||
Inventories are valued at the lower of cost (first-in, first-out) or market, which requires the Company to make specific estimates, assumptions and judgments in determining the amount, if any, of reductions in the valuation of inventories to their net realizable values. The net realizable values of the Company’s products are impacted by a number of factors, including changes in the price of steel, competitive sales pricing, quantities of inventories on hand, the age of the individual inventory items, market acceptance of the Company’s products, the Company’s normal gross margins, actions by our competitors, the condition of our used and rental inventory and general economic factors. Once an inventory item’s value has been deemed to be less than cost, a net realizable value allowance is calculated and a new “cost basis” for that item is effectively established. This new cost is retained for that item until such time as the item is disposed of or the Company determines that an additional write-down is necessary. Additional write-downs may be required in the future based upon changes in assumptions due to general economic downturns in the markets in which the Company operates, changes in competitor pricing, new product design or other technological advances introduced by the Company or its competitors and other factors unique to individual inventory items. | |||||||||||||
The most significant component of the Company’s inventory is steel. A significant decline in the market price of steel could result in a decline in the market value of the equipment or parts we sell. During periods of significant declining steel prices, the Company reviews the valuation of its inventories to determine if reductions are needed in the recorded value of inventory on hand to its net realizable value. | |||||||||||||
The Company reviews the individual items included in its finished goods, used equipment and rental equipment inventory on a model-by-model or unit-by-unit basis to determine if any item’s net realizable value is below its carrying value each quarter. This analysis is expanded to include items in work-in-process and raw material inventory if factors indicate those items may also be impacted. In performing this review, judgments are made and, in addition to the factors discussed above, additional consideration is given to the age of the specific items of used or rental inventory, prior sales offers or lack thereof, the physical condition of the specific items and general market conditions for the specific items. Additionally, an analysis of raw material inventory is performed each quarter to calculate reserves needed for obsolete inventory based upon quantities of items on hand, the age of those items and their recent and expected future usage or sale. | |||||||||||||
When the Company determines that the value of inventory has become impaired through damage, deterioration, obsolescence, changes in price levels, excessive levels of inventory or other causes, the Company reduces the carrying value to estimated market value based on estimates, assumptions and judgments made from the information available at that time. | |||||||||||||
Abnormal amounts of idle facility expense, freight, handling cost and wasted materials are recognized as current period charges. | |||||||||||||
Property and Equipment | Property and Equipment - Property and equipment is stated at cost. Depreciation is calculated for financial reporting purposes using the straight-line method based on the estimated useful lives of the assets as follows: airplanes (20 years), buildings (40 years) and equipment (3 to 10 years). Both accelerated and straight-line methods are used for tax compliance purposes. Routine repair and maintenance costs and planned major maintenance are expensed when incurred. | ||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets - The Company classifies intangible assets as either intangible assets with definite lives subject to amortization or goodwill. | ||||||||||||
The Company tests intangible assets with definite lives for impairment if conditions exist that indicate the carrying value may not be recoverable. Such conditions may include an economic downturn in a geographic market or a change in the assessment of future operations. An impairment charge would be recorded if the carrying value of the definite lived intangible asset is not recoverable by the future undiscounted cash flows generated from the use of the asset. | |||||||||||||
The Company determines the useful lives of identifiable intangible assets after considering the specific facts and circumstances related to each intangible asset. Factors considered when determining useful lives include the contractual terms of agreements, the history of the asset, the Company’s long-term strategy for the use of the asset, any laws or other local regulations which could impact the useful life of the asset, and other economic factors, including competition and specific market conditions. Intangible assets that are deemed to have definite lives are amortized over their useful lives, ranging from 3 to 15 years. | |||||||||||||
Goodwill is not amortized. The Company tests goodwill for impairment annually or more frequently if events or circumstances indicate that goodwill might be impaired. The tests utilize a two-step method at the reporting unit level. The Company’s reporting units are typically defined as either subsidiaries or a combination of subsidiaries. | |||||||||||||
In 2011, the Company early adopted, as permitted, new accounting guidance related to annual goodwill impairment testing. The guidance gives the Company the option to perform a qualitative assessment to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount. If the Company concludes that this is the case for a reporting unit, it would proceed to calculating the fair value for that reporting unit as described below. Otherwise, the Company would not be required to perform any further goodwill impairment testing for that reporting unit. However, as it had been four years since the Company retained an outside consultant to assist in its impairment evaluation, the Company performed a detailed step one impairment test in 2013 with the assistance of an outside financial consultant. Due to the acquisition of Telestack Limited in April 2014, the Company also performed a detailed step one impairment test in 2014 with the assistance of an outside financial consultant. No impairment was indicated in these tests. | |||||||||||||
The first step of the goodwill impairment test compares book value of a reporting unit, including goodwill, with the unit’s fair value. In this first step, the Company estimates the fair values of each of its reporting units that have goodwill using the income approach. | |||||||||||||
The income approach uses a reporting unit’s projection of estimated future operating results and cash flows which are then discounted using a weighted average cost of capital determined based on current market conditions for the individual reporting unit. The projection uses management’s best estimates of cash flows over the projection period based on estimates of annual and terminal growth rates in sales and costs, changes in operating margins, selling, general and administrative expenses, working capital requirements and capital expenditures. | |||||||||||||
The fair value of the operating subsidiaries/reporting units that do not have goodwill are estimated using either the income or market approaches, depending on which approach is to be the most appropriate for each reporting unit. The fair value of the reporting units that serve operating units in supporting roles, such as the captive insurance company and the corporate reporting unit are estimated using the cost approach. The sum of the fair values of all reporting units is compared to its calculation of the fair value of the consolidated Company using the market approach, which is inferred from the market capitalization of the Company at the date of the valuation, to confirm that the Company’s estimation of the fair value of its reporting units is reasonable. | |||||||||||||
If the book value of a reporting unit exceeds its fair value, an indication of possible goodwill impairment, the second step of the impairment test must be performed to determine the amount, if any, of goodwill impairment. In this second step, the total implied fair value of the reporting unit’s goodwill is estimated by allocating the fair value of the reporting unit to all its assets, including any unrecognized intangible assets and liabilities other than goodwill. The difference between the total fair value of the reporting unit and the fair value of its assets and liabilities other than goodwill is the implied fair value of its goodwill. The amount of any impairment loss is equal to the excess, if any, of the book value of the goodwill over the implied fair value of its goodwill. | |||||||||||||
Determining the “step one” fair values of the Company’s reporting units involves the use of significant estimates and assumptions. Due to the inherent uncertainty involved in making these estimates and assumptions, actual results could differ materially from those estimates. | |||||||||||||
Impairment of Long-lived Assets | Impairment of Long-lived Assets - In the event that facts and circumstances indicate the carrying amounts of long-lived assets may be impaired, an evaluation of recoverability is performed. If an evaluation is required, the estimated future undiscounted cash flows associated with the asset are compared to the carrying amount for each asset (or group of assets) to determine if a write-down is required. If this review indicates that the assets will not be recoverable, the carrying values of the impaired assets are reduced to their estimated fair value. Fair value is estimated using discounted cash flows, prices for similar assets or other valuation techniques. | ||||||||||||
Self-Insurance Reserves | Self-Insurance Reserves - The Company retains the risk for a portion of its workers’ compensation claims and general liability claims by way of a captive insurance company, Astec Insurance Company, (“Astec Insurance” or “the captive”). Astec Insurance is incorporated under the laws of the state of Vermont. The objectives of Astec Insurance are to improve control over and reduce the cost of claims; to improve focus on risk reduction with development of a program structure which rewards proactive loss control; and to ensure management participation in the defense and settlement process for claims. | ||||||||||||
For general liability claims, the captive is liable for the first $1,000 per occurrence and $2,000 per year in the aggregate. The Company carries general liability, excess liability and umbrella policies for claims in excess of amounts covered by the captive. | |||||||||||||
For workers’ compensation claims, the captive is liable for the first $350 per occurrence and $1,000 per year in the aggregate. The Company utilizes a large national insurance company as third party administrator for workers’ compensation claims and carries insurance coverage for claims liabilities in excess of amounts covered by the captive. | |||||||||||||
The financial statements of the captive are consolidated into the financial statements of the Company. The short-term and long-term reserves for claims and potential claims related to general liability and workers’ compensation under the captive are included in accrued loss reserves or other long-term liabilities, respectively, in the consolidated balance sheets depending on the expected timing of future payments. The undiscounted reserves are actuarially determined to cover the ultimate cost of each claim 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. However, the Company does not believe it is reasonably likely that the reserve level will materially change in the foreseeable future. | |||||||||||||
The Company is self-insured for health and prescription claims under its Group Health Insurance Plan at all but one of the Company’s domestic manufacturing subsidiaries. The Company carries reinsurance coverage to limit its exposure for individual health claims above certain limits. Third parties administer health claims and prescription medication claims. The Company maintains a reserve for the self-insured health plan which is included in accrued loss reserves on the Company’s consolidated balance sheets. This reserve includes both unpaid claims and an estimate of claims incurred but not reported, based on historical claims and payment experience. Historically the reserves have been sufficient to provide for claims payments. Changes in actual claims experience or payment patterns could cause the reserve to change, but the Company does not believe it is reasonably likely that the reserve level will materially change in the near future. | |||||||||||||
The remaining U.S. subsidiary is covered under a fully insured group health plan. Employees of the Company’s foreign subsidiaries are insured under separate health plans. No reserves are necessary for these fully insured health plans. | |||||||||||||
Revenue Recognition | Revenue Recognition - Revenue is generally recognized on sales at the point in time when persuasive evidence of an arrangement exists, the price is fixed or determinable, the product has been delivered or services have been rendered and there is a reasonable assurance of collection of the sales proceeds. The Company generally obtains purchase authorizations from its customers for a specified amount of products at a specified price with specified delivery terms. A significant portion of the Company’s equipment sales represents equipment produced in the Company’s plants under short-term contracts for a specific customer project or equipment designed to meet a customer’s specific requirements. Most of the equipment sold by the Company is based on standard configurations, some of which are modified to meet customer needs or specifications. The Company provides customers with technical design and performance specifications and performs pre-shipment testing to ensure the equipment performs according to design specifications, regardless of whether the Company provides installation services in addition to selling the equipment. | ||||||||||||
Certain contracts include terms and conditions pursuant to which the Company recognizes revenues upon completion of equipment production, which is subsequently stored at the Company’s plant at the customer’s request. Revenue is recorded on such contracts upon the customer’s assumption of title and risk of ownership and when collectability is reasonably assured. In addition, there must be a fixed schedule of delivery of the goods consistent with the customer’s business practices, the Company must not have retained any specific performance obligations such that the earnings process is not complete and the goods must have been segregated from the Company’s inventory prior to revenue recognition. | |||||||||||||
The Company accounts for certain sales as multiple-element arrangements, whereby the revenue attributable to the sale of a product is recognized when the product is shipped and the revenue attributable to services provided with respect to the product (such as installation services) is recognized when the service is performed. Consideration is allocated to deliverables using the relative selling price method using vendor specific objective evidence, if it exists. Otherwise third-party evidence of selling price or the Company’s best estimate of the selling price for the deliverables is used. The Company evaluates sales with multiple deliverable elements (such as an agreement to deliver equipment and related installation services) to determine whether revenue related to individual elements should be recognized separately, or as a combined unit. In addition to the previously mentioned general revenue recognition criteria, the Company only recognizes revenue on individual delivered elements when there is objective and reliable evidence that the delivered element has a determinable value to the customer on a standalone basis and there is no right of return. | |||||||||||||
The Company presents in the statements of income any taxes assessed by a governmental authority that are directly imposed on revenue-producing transactions between the Company and its customers, such as sales, use, value-added and some excise taxes, on a net (excluded from revenue) basis. | |||||||||||||
Advertising Expense | Advertising Expense - The cost of advertising is expensed as incurred. The Company incurred $3,657, $3,770, and $4,223 in advertising costs during 2014, 2013 and 2012, respectively, which is included in selling, general and administrative expenses. | ||||||||||||
Income Taxes | Income Taxes - Income taxes are based on pre-tax financial accounting income. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. The Company periodically assesses the need to establish valuation allowances against its deferred tax assets to the extent the Company no longer believes it is more likely than not that the tax assets will be fully utilized. | ||||||||||||
The Company evaluates a tax position to determine whether it is more likely than not that the tax position will be sustained upon examination, based upon the technical merits of the position. A tax position that meets the more-likely-than-not recognition threshold is subject to a measurement assessment to determine the amount of benefit to recognize and the appropriate reserve to establish, if any. If a tax position does not meet the more-likely-than-not recognition threshold, no benefit is recognized. The Company is periodically audited by U.S. federal and state as well as foreign tax authorities. While it is often difficult to predict final outcome or timing of resolution of any particular tax matter, the Company believes its reserve for uncertain tax positions is adequate to reduce the uncertain positions to the greatest amount of benefit that is more likely than not realizable. | |||||||||||||
Product Warranty Reserve | Product Warranty Reserve - The Company accrues for the estimated cost of product warranties at the time revenue is recognized. Warranty obligations by product line or model are evaluated based on historical warranty claims experience. For machines, the Company’s standard product warranty terms generally include post-sales support and repairs of products at no additional charge for periods ranging from three months to two years or up to a specified number of hours of operation. For parts from component suppliers, the Company relies on the original manufacturer’s warranty that accompanies those parts. Generally, Company fabricated parts are not covered by specific warranty terms. Although failure of fabricated parts due to material or workmanship is rare, if it occurs, the Company’s policy is to replace fabricated parts at no additional charge. | ||||||||||||
The Company engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of our component suppliers. Estimated warranty obligations are based upon warranty terms, product failure rates, repair costs and current period machine shipments. If actual product failure rates, repair costs, service delivery costs or post-sales support costs differ from our estimates, revisions to the estimated warranty liability would be required. | |||||||||||||
Pension and Retirement Plans | Pension and Retirement Plans - The determination of obligations and expenses under the Company’s pension plan is dependent on the Company’s selection of certain assumptions used by independent actuaries in calculating such amounts. Those assumptions are described in Note 12, Pension and Retirement Plans and include among others, the discount rate, expected return on plan assets and the expected mortality rates. In accordance with accounting principles generally accepted in the United States, actual results that differ from assumptions are accumulated and amortized over future periods and, therefore, generally affect the recognized expense in such periods. Significant differences in actual experience or significant changes in the assumptions used may materially affect the pension obligations and future expenses. | ||||||||||||
The Company recognizes the overfunded or underfunded status of its pension plan as an asset or liability. Actuarial gains and losses, amortization of prior service cost (credit) and amortization of transition obligations are recognized through other comprehensive income in the year in which the changes occur. The Company measures the funded status of its pension plan as of the date of the Company’s fiscal year-end. | |||||||||||||
Stock-based Compensation | Stock-based Compensation - The Company currently has a stock-based compensation plan in effect for its employees and directors whereby participants may earn restricted stock units. The plan and its similar predecessor plan, were put in place initially in 2006 and will continue through at least 2015. These plans are more fully described in Note 16, Shareholders’ Equity. The Company recognizes the cost of employee services received in exchange for equity awards in the financial statements based on the grant date calculated fair value of the awards. The Company recognizes stock-based compensation expense over the period during which an employee is required to provide service in exchange for the award (the vesting period). | ||||||||||||
Restricted stock units (“RSU’s”) awarded under the Company’s 2011 Incentive Plan are granted shortly after the end of each year based upon the performance of the Company and its individual subsidiaries in 2011 through 2015. Additional RSUs may be granted based upon cumulative five-year performance. The Company estimates the number of shares that will be granted for the most recent fiscal year end and the five-year cumulative performance based on actual and expected future operating results. Compensation expense for RSU’s expected to be granted for the most recent fiscal year and the cumulative five-year based awards is calculated using the fair value of the Company stock at each period end and is adjusted to the fair value as of each future period-end until granted. | |||||||||||||
Earnings Per Share | Earnings Per Share - Basic earnings per share is based on the weighted average number of common shares outstanding and diluted earnings per share includes potential dilutive effects of options, restricted stock units and shares held in the Company’s supplemental executive retirement plan. | ||||||||||||
The following table sets forth the compensation of net income attributable to controlling interest from continuing operations and the number of basic and diluted earnings per share: | |||||||||||||
Year Ended December 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Numerator: | |||||||||||||
Net income from continuing operations | $ | 34,206 | $ | 39,214 | $ | 34,210 | |||||||
Net income (loss) attributable to non-controlling interests | (252 | ) | 172 | 161 | |||||||||
Net income attributable to controlling interest from continuing operations | $ | 34,458 | $ | 39,042 | $ | 34,049 | |||||||
Denominator: | |||||||||||||
Denominator for basic earnings per share | 22,819 | 22,749 | 22,680 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Employee stock options and restricted stock units | 176 | 218 | 262 | ||||||||||
Supplemental executive retirement plan | 110 | 114 | 109 | ||||||||||
Denominator for diluted earnings per share | 23,105 | 23,081 | 23,051 | ||||||||||
Antidilutive options were not included in the diluted EPS computation for the years presented. The number of antidilutive options in the three years ended December 31, 2014 was not material. | |||||||||||||
Derivatives and Hedging Activities | Derivatives and Hedging Activities - The Company recognizes all derivatives in the consolidated balance sheets at their fair value. Derivatives that are not hedges are adjusted to fair value through income. If the derivative is a hedge, depending on the nature of the hedge, changes in the fair value of derivatives are either offset against the change in fair value of assets, liabilities, or firm commitments through income or recognized in other comprehensive income until the hedged item is recognized in income. The ineffective portion of a derivative’s change in fair value is immediately recognized in income. From time to time the Company’s foreign subsidiaries enter into foreign currency exchange contracts to mitigate exposure to fluctuation in currency exchange rates. See Note 13, Derivative Financial Instruments, regarding foreign exchange contracts outstanding at December 31, 2014 and 2013. | ||||||||||||
Shipping and Handling Fees and Cost | Shipping and Handling Fees and Cost - The Company records revenues earned for shipping and handling as revenue, while the cost of shipping and handling is classified as cost of goods sold. | ||||||||||||
Litigation Contingencies | Litigation Contingencies - In the normal course of business in the industry, the Company is named as a defendant in a number of legal proceedings associated with product liability and other matters. See Note 15, Contingent Matters for additional discussion of the Company’s legal contingencies. | ||||||||||||
Business Combinations | Business Combinations - The Company accounts for business combinations using the acquisition method. Accordingly, intangible assets are recorded apart from goodwill if they arise from contractual or legal rights or if they are separable from goodwill. Related third party acquisition costs are expensed as incurred and contingent consideration is booked at its fair value as part of the purchase price. | ||||||||||||
Subsequent Events Review | Subsequent Events Review - Management has evaluated events occurring between December 31, 2014 and the date these financial statements were filed with the Securities and Exchange Commission for proper recording or disclosure therein. | ||||||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements – | ||||||||||||
In April 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity,” which raises the previous threshold for disposals to qualify as discontinued operations and requires new disclosures for individually material disposal transactions that do not meet the definition of a discontinued operation. The standard also allows companies to have significant continuing involvement and continuing cash flows with the discontinued operation. The standard requires the reclassification of assets and liabilities of a discontinued operation in the balance sheet for all periods presented. The standard is effective for public entities for annual periods beginning on or after December 15, 2014 and is to be implemented prospectively. The Company does not expect the adoption of this statement to have a significant impact on the Company’s financial position or results of operations. | |||||||||||||
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers,” which supersedes existing revenue guidance under U.S. GAAP. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The implementation of this new standard will require companies to use more judgment and to make more estimates than under current guidance. The standard is effective for public companies for annual periods beginning after December 15, 2016. The Company plans to adopt the new standard effective January 1, 2017. The Company has not yet determined what impact, if any, the adoption of this new standard will have on the Company’s financial position or results of operations. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Summary of Significant Accounting Policies [Abstract] | |||||||||||||
Components of allowance for doubtful accounts | The following table represents a rollforward of the allowance for doubtful accounts for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||
Year Ended December 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Reserve balance, beginning of year | $ | 1,708 | $ | 2,143 | $ | 2,398 | |||||||
Provision | 1,011 | 629 | 759 | ||||||||||
Write offs | (465 | ) | (1,042 | ) | (764 | ) | |||||||
Other | (6 | ) | (22 | ) | (250 | ) | |||||||
Reserve balance, end of year | $ | 2,248 | $ | 1,708 | $ | 2,143 | |||||||
Computation of earnings per share | The following table sets forth the compensation of net income attributable to controlling interest from continuing operations and the number of basic and diluted earnings per share: | ||||||||||||
Year Ended December 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Numerator: | |||||||||||||
Net income from continuing operations | $ | 34,206 | $ | 39,214 | $ | 34,210 | |||||||
Net income (loss) attributable to non-controlling interests | (252 | ) | 172 | 161 | |||||||||
Net income attributable to controlling interest from continuing operations | $ | 34,458 | $ | 39,042 | $ | 34,049 | |||||||
Denominator: | |||||||||||||
Denominator for basic earnings per share | 22,819 | 22,749 | 22,680 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Employee stock options and restricted stock units | 176 | 218 | 262 | ||||||||||
Supplemental executive retirement plan | 110 | 114 | 109 | ||||||||||
Denominator for diluted earnings per share | 23,105 | 23,081 | 23,051 |
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventories [Abstract] | |||||||||
Inventories | Inventories consist of the following: | ||||||||
31-Dec | |||||||||
2014 | 2013 | ||||||||
Raw materials and parts | $ | 149,171 | $ | 139,372 | |||||
Work-in-process | 105,163 | 74,663 | |||||||
Finished goods | 102,235 | 99,812 | |||||||
Used equipment | 31,266 | 28,466 | |||||||
Total | $ | 387,835 | $ | 342,313 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||||||
Schedule of financial assets and liabilities, at fair value | As indicated in the tables below, the Company has determined that its financial assets and liabilities at December 31, 2014 and 2013 are level 1 and level 2 in the fair value hierarchy: | ||||||||||||||||
31-Dec-14 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Financial Assets: | |||||||||||||||||
Trading equity securities: | |||||||||||||||||
SERP money market fund | $ | 532 | $ | -- | $ | -- | $ | 532 | |||||||||
SERP mutual funds | 3,195 | -- | -- | 3,195 | |||||||||||||
Preferred stocks | 973 | -- | -- | 973 | |||||||||||||
Trading debt securities: | |||||||||||||||||
Corporate bonds | 2,825 | 1,184 | -- | 4,009 | |||||||||||||
Municipal bonds | -- | 2,060 | -- | 2,060 | |||||||||||||
Floating rate notes | 100 | 322 | -- | 422 | |||||||||||||
U.S. Treasury bill | 622 | -- | -- | 622 | |||||||||||||
Other government bonds | -- | 1,496 | -- | 1,496 | |||||||||||||
Derivative financial instruments | -- | 547 | -- | 547 | |||||||||||||
Total financial assets | $ | 8,247 | $ | 5,609 | $ | -- | $ | 13,856 | |||||||||
Financial Liabilities: | |||||||||||||||||
SERP liabilities | $ | -- | $ | 8,128 | $ | -- | $ | 8,128 | |||||||||
Total financial liabilities | $ | -- | $ | 8,128 | $ | -- | $ | 8,128 | |||||||||
31-Dec-13 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Financial Assets: | |||||||||||||||||
Trading equity securities: | |||||||||||||||||
SERP money market fund | $ | 783 | $ | -- | $ | -- | $ | 783 | |||||||||
SERP mutual funds | 2,813 | -- | -- | 2,813 | |||||||||||||
Preferred stocks | 1,170 | -- | -- | 1,170 | |||||||||||||
Short-term investments in mutual funds | 16,073 | -- | -- | 16,073 | |||||||||||||
Trading debt securities: | |||||||||||||||||
Corporate bonds | 3,696 | 1,155 | -- | 4,851 | |||||||||||||
Municipal bonds | -- | 1,908 | -- | 1,908 | |||||||||||||
Floating rate notes | 103 | 446 | -- | 549 | |||||||||||||
U.S. Treasury bill | 250 | -- | -- | 250 | |||||||||||||
Other government bonds | -- | 864 | -- | 864 | |||||||||||||
Derivative financial instruments | -- | 452 | -- | 452 | |||||||||||||
Total financial assets | $ | 24,888 | $ | 4,825 | $ | -- | $ | 29,713 | |||||||||
Financial Liabilities: | |||||||||||||||||
SERP liabilities | $ | -- | $ | 7,828 | $ | -- | $ | 7,828 | |||||||||
Total financial liabilities | $ | -- | $ | 7,828 | $ | -- | $ | 7,828 |
Investments_Tables
Investments (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Investments [Abstract] | |||||||||||||||||
Schedule of trading securities | The Company’s trading securities consist of the following: | ||||||||||||||||
Amortized | Gross | Gross | Fair Value | ||||||||||||||
Cost | Unrealized | Unrealized | (Net Carrying | ||||||||||||||
Gains | Losses | Amount) | |||||||||||||||
31-Dec-14 | |||||||||||||||||
Trading equity securities | $ | 4,335 | $ | 374 | $ | 9 | $ | 4,700 | |||||||||
Trading debt securities | 8,573 | 107 | 71 | 8,609 | |||||||||||||
Total | $ | 12,908 | $ | 481 | $ | 80 | $ | 13,309 | |||||||||
31-Dec-13 | |||||||||||||||||
Trading equity securities | $ | 19,411 | $ | 1,459 | $ | 31 | $ | 20,839 | |||||||||
Trading debt securities | 8,385 | 174 | 137 | 8,422 | |||||||||||||
Total | $ | 27,796 | $ | 1,633 | $ | 168 | $ | 29,261 |
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Goodwill [Abstract] | |||||||||||||||||||||
Schedule of goodwill by reporting segment | The changes in the carrying amount of goodwill by reporting segment during the years ended December 31, 2014 and 2013 are as follows: | ||||||||||||||||||||
Infrastructure | Aggregate and | Energy Group | Corporate | Total | |||||||||||||||||
Group | Mining Group | ||||||||||||||||||||
Balance, December 31, 2012 | $ | 8,673 | $ | 6,338 | $ | -- | $ | -- | $ | 15,011 | |||||||||||
Foreign currency translation | 46 | -- | -- | -- | 46 | ||||||||||||||||
Balance, December 31, 2013 | 8,719 | 6,338 | -- | -- | 15,057 | ||||||||||||||||
Acquisition | -- | 18,256 | -- | -- | 18,256 | ||||||||||||||||
Foreign currency translation | (135 | ) | (1,183 | ) | -- | -- | (1,318 | ) | |||||||||||||
Balance, December 31, 2014 | $ | 8,584 | $ | 23,411 | $ | -- | $ | -- | $ | 31,995 |
Longlived_and_Intangible_Asset1
Long-lived and Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Long Lived and Intangible Assets [Abstract] | |||||||||||||||||||||||||
Schedule of intangible assets | Amortization expense on intangible assets was $2,735, $1,066 and $1,855 for 2014, 2013 and 2012, respectively. Intangible assets consisted of the following at December 31, 2014 and 2013: | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net Carrying | ||||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Value | ||||||||||||||||||||
Value | Value | Value | |||||||||||||||||||||||
Dealer network and customer relationships | $ | 13,600 | $ | (4,245 | ) | $ | 9,355 | $ | 6,678 | $ | (3,019 | ) | $ | 3,659 | |||||||||||
Trade names | 4,984 | (645 | ) | 4,339 | 2,575 | (353 | ) | 2,222 | |||||||||||||||||
Other | 5,471 | (1,893 | ) | 3,578 | 1,535 | (873 | ) | 662 | |||||||||||||||||
Total | $ | 24,055 | $ | (6,783 | ) | $ | 17,272 | $ | 10,788 | $ | (4,245 | ) | $ | 6,543 |
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property and Equipment [Abstract] | |||||||||
Property and equipment | Property and equipment consist of the following: | ||||||||
31-Dec | |||||||||
2014 | 2013 | ||||||||
Land | $ | 14,024 | $ | 13,952 | |||||
Building and land improvements | 146,266 | 136,000 | |||||||
Manufacturing and office equipment | 235,623 | 227,641 | |||||||
Aviation equipment | 13,698 | 14,913 | |||||||
Less accumulated depreciation | (222,001 | ) | (207,986 | ) | |||||
Total | $ | 187,610 | $ | 184,520 |
Leases_Tables
Leases (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Leases [Abstract] | |||||
Minimum rental commitments for non-cancelable operating leases | Minimum rental commitments for all noncancelable operating leases at December 31, 2014 are as follows: | ||||
2015 | $ | 1,463 | |||
2016 | 1,274 | ||||
2017 | 434 | ||||
2018 | 102 | ||||
2019 | 25 | ||||
Thereafter | -- | ||||
$ | 3,298 |
Product_Warranty_Reserves_Tabl
Product Warranty Reserves (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Product Warranty Reserves [Abstract] | |||||||||||||
Product warranty reserves | Changes in the Company’s product warranty liability during 2014, 2013 and 2012 are as follows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Reserve balance, beginning of year | $ | 12,716 | $ | 11,052 | $ | 12,663 | |||||||
Warranty liabilities accrued | 12,796 | 12,199 | 11,152 | ||||||||||
Warranty liabilities settled | (15,563 | ) | (10,171 | ) | (11,022 | ) | |||||||
Other | 83 | (364 | ) | (1,741 | ) | ||||||||
Reserve balance, end of year | $ | 10,032 | $ | 12,716 | $ | 11,052 |
Pension_and_Retirement_Plans_T
Pension and Retirement Plans (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Pension and Retirement Plans [Abstract] | |||||||||||||||||
Benefit obligations, plan assets and the funded status of plans | The following provides information regarding benefit obligations, plan assets and the funded status of the plan: | ||||||||||||||||
Pension Benefits | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Change in benefit obligation | |||||||||||||||||
Benefit obligation, beginning of year | $ | 13,815 | $ | 14,958 | |||||||||||||
Interest cost | 620 | 561 | |||||||||||||||
Actuarial (gain)/loss | 2,118 | (1,178 | ) | ||||||||||||||
Benefits paid | (567 | ) | (526 | ) | |||||||||||||
Benefit obligation, end of year | 15,986 | 13,815 | |||||||||||||||
Accumulated benefit obligation | $ | 15,986 | $ | 13,815 | |||||||||||||
Change in plan assets | |||||||||||||||||
Fair value of plan assets, beginning of year | $ | 12,693 | $ | 10,784 | |||||||||||||
Actual gain on plan assets | 819 | 1,624 | |||||||||||||||
Employer contribution | 338 | 811 | |||||||||||||||
Benefits paid | (567 | ) | (526 | ) | |||||||||||||
Fair value of plan assets, end of year | 13,283 | 12,693 | |||||||||||||||
Funded status, end of year | $ | (2,703 | ) | $ | (1,122 | ) | |||||||||||
Amounts recognized in the consolidated balance sheets | |||||||||||||||||
Noncurrent liabilities | $ | (2,703 | ) | $ | (1,122 | ) | |||||||||||
Net amount recognized | $ | (2,703 | ) | $ | (1,122 | ) | |||||||||||
Amounts recognized in accumulated other comprehensive income consist of | |||||||||||||||||
Net loss | $ | 5,896 | $ | 4,076 | |||||||||||||
Net amount recognized | $ | 5,896 | $ | 4,076 | |||||||||||||
Weighted average assumptions used to determine benefit obligations as of December 31 | |||||||||||||||||
Discount rate | 3.81 | % | 4.6 | % | |||||||||||||
Expected return on plan assets | 7 | % | 7 | % | |||||||||||||
Rate of compensation increase | N/A | N/A | |||||||||||||||
Allocation of pension plan assets and target allocation range of assets | The allocation of assets within the mutual fund as of the measurement date (December 31) and the target asset allocation ranges by asset category are as follows: | ||||||||||||||||
Actual Allocation | |||||||||||||||||
2014 & 2013 Target | |||||||||||||||||
Asset Category | 2014 | 2013 | Allocation Ranges | ||||||||||||||
Equity securities | 65.6 | % | 65.4 | % | 53 - 73 | % | |||||||||||
Debt securities | 30.1 | % | 27.8 | % | 21 - 41 | % | |||||||||||
Money market funds | 4.3 | % | 6.8 | % | 0 - 15 | % | |||||||||||
Total | 100 | % | 100 | % | |||||||||||||
Periodic benefit costs for defined benefit plans | Net periodic benefit cost for 2014, 2013 and 2012 included the following components: | ||||||||||||||||
Pension Benefits | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Components of net periodic benefit cost | |||||||||||||||||
Interest cost | $ | 620 | $ | 561 | $ | 599 | |||||||||||
Expected return on plan assets | (816 | ) | (693 | ) | (648 | ) | |||||||||||
Amortization of actuarial loss | 295 | 536 | 502 | ||||||||||||||
Net periodic benefit cost | $ | 99 | $ | 404 | $ | 453 | |||||||||||
Other changes in plan assets and benefit obligations recognized in other comprehensive income | |||||||||||||||||
Net actuarial (gain)/loss for the year | $ | 2,115 | $ | (2,109 | ) | $ | 656 | ||||||||||
Amortization of net loss | (295 | ) | (536 | ) | (502 | ) | |||||||||||
Total recognized in other comprehensive income | 1,820 | (2,645 | ) | 154 | |||||||||||||
Total recognized in net periodic benefit cost and other comprehensive income | $ | 1,919 | $ | (2,241 | ) | $ | 607 | ||||||||||
Weighted average assumptions used to determine net periodic benefit cost for years ended December 31 | |||||||||||||||||
Discount rate | 4.6 | % | 3.82 | % | 4.46 | % | |||||||||||
Expected return on plan assets | 7 | % | 7 | % | 7 | % | |||||||||||
Summary of estimated future benefit payments | The following estimated future benefit payments are expected to be paid in the years indicated: | ||||||||||||||||
Pension Benefits | |||||||||||||||||
2015 | $ | 710 | |||||||||||||||
2016 | 760 | ||||||||||||||||
2017 | 800 | ||||||||||||||||
2018 | 830 | ||||||||||||||||
2019 | 860 | ||||||||||||||||
2020 - 2024 | 4,500 | ||||||||||||||||
Assets of the supplemental executive retirement plan | Assets of the SERP consist of the following: | ||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||
Cost | Market | Cost | Market | ||||||||||||||
Company stock | $ | 2,929 | $ | 4,401 | $ | 2,786 | $ | 4,232 | |||||||||
Equity securities | 3,368 | 3,727 | 3,241 | 3,596 | |||||||||||||
Total | $ | 6,297 | $ | 8,128 | $ | 6,027 | $ | 7,828 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Taxes [Abstract] | |||||||||||||
Income before income taxes | For financial reporting purposes, income from continuing operations before income taxes includes the following components: | ||||||||||||
Year Ended December 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Continuing operations | |||||||||||||
United States | $ | 57,651 | $ | 53,315 | $ | 47,400 | |||||||
Foreign | (4,045 | ) | 4,927 | 6,297 | |||||||||
Income from continuing operations before income taxes | $ | 53,606 | $ | 58,242 | $ | 53,697 | |||||||
Provision for income tax | The provision for income taxes consists of the following: | ||||||||||||
Year Ended December 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Continuing operations | |||||||||||||
Current provision: | |||||||||||||
Federal | $ | 18,713 | $ | 16,239 | $ | 9,637 | |||||||
State | 2,992 | 2,785 | 2,096 | ||||||||||
Foreign | 243 | 2,664 | 1,996 | ||||||||||
Total current provision | 21,948 | 21,688 | 13,729 | ||||||||||
Deferred provision (benefit): | |||||||||||||
Federal | (1,627 | ) | (885 | ) | 6,135 | ||||||||
State | (222 | ) | (923 | ) | (768 | ) | |||||||
Foreign | (699 | ) | (852 | ) | 391 | ||||||||
Total deferred provision (benefit) | (2,548 | ) | (2,660 | ) | 5,758 | ||||||||
Total provision (benefit): | |||||||||||||
Federal | 17,086 | 15,354 | 15,772 | ||||||||||
State | 2,770 | 1,862 | 1,328 | ||||||||||
Foreign | (456 | ) | 1,812 | 2,387 | |||||||||
Income tax provision on continuing operations | 19,400 | 19,028 | 19,487 | ||||||||||
Income tax provision on discontinued operations | -- | -- | 3,796 | ||||||||||
Total tax provision | $ | 19,400 | $ | 19,028 | $ | 23,283 | |||||||
Reconciliation of provision for income taxes at the statutory federal income tax rate | A reconciliation of the provision for income taxes at the statutory federal income tax rate to the amount provided is as follows: | ||||||||||||
Year Ended December 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Continuing operations | |||||||||||||
Tax at the statutory federal income tax rate | $ | 18,762 | $ | 20,385 | $ | 18,794 | |||||||
Qualified production activity deduction | (1,360 | ) | (1,395 | ) | (958 | ) | |||||||
State income tax, net of federal income tax | 1,727 | 1,105 | 758 | ||||||||||
Other permanent differences | 840 | 464 | 360 | ||||||||||
Research and development tax credits | (1,323 | ) | (2,054 | ) | (419 | ) | |||||||
Change in valuation allowance | 1,675 | 810 | 1,034 | ||||||||||
Other items | (921 | ) | (287 | ) | (82 | ) | |||||||
Income tax provision on continued operations | 19,400 | 19,028 | 19,487 | ||||||||||
Income tax provision on discontinued operations | -- | -- | 3,796 | ||||||||||
Total tax provision | $ | 19,400 | $ | 19,028 | $ | 23,283 | |||||||
Significant components of company's deferred tax assets and liabilities | Significant components of the Company’s deferred tax assets and liabilities are as follows: | ||||||||||||
31-Dec | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Inventory reserves | $ | 6,539 | $ | 6,340 | |||||||||
Warranty reserves | 2,988 | 3,558 | |||||||||||
Bad debt reserves | 598 | 636 | |||||||||||
State tax loss carryforwards | 2,377 | 2,100 | |||||||||||
Accrued vacation | 2,060 | 1,805 | |||||||||||
SERP | 1,231 | 1,245 | |||||||||||
Deferred compensation | 1,255 | 1,226 | |||||||||||
Restricted stock units | 2,256 | 2,601 | |||||||||||
Foreign exchange gains/losses | 3,111 | 2,345 | |||||||||||
Pension and post-employment benefits | 2,197 | 1,498 | |||||||||||
Foreign deferred tax assets | 3,311 | 3,642 | |||||||||||
Foreign net operating losses | 3,168 | 1,561 | |||||||||||
Other | 3,267 | 2,708 | |||||||||||
Valuation allowances | (6,029 | ) | (4,354 | ) | |||||||||
Total deferred tax assets | 28,329 | 26,911 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Property and equipment | 19,394 | 19,711 | |||||||||||
Amortization | 1,087 | 1,200 | |||||||||||
Goodwill | 2,014 | 2,012 | |||||||||||
Pension | 1,313 | 1,132 | |||||||||||
Foreign tax rate differential | 2,236 | 3,681 | |||||||||||
Foreign deferred tax liabilities | 3,820 | 1,227 | |||||||||||
Total deferred tax liabilities | 29,864 | 28,963 | |||||||||||
Total net deferred liabilities | $ | (1,535 | ) | $ | (2,052 | ) | |||||||
Reconciliation of unrecognized tax benefit | A reconciliation of the beginning and ending unrecognized tax benefits excluding interest and penalties is as follows: | ||||||||||||
31-Dec | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance, beginning of year | $ | 1,933 | $ | 2,095 | $ | 1,682 | |||||||
Additions for tax positions related to the current year | 127 | 102 | 396 | ||||||||||
Additions for tax positions related to prior years | 525 | 128 | 90 | ||||||||||
Reductions due to lapse of statutes of limitations | -- | (149 | ) | (73 | ) | ||||||||
Decreases related to settlements with tax authorities | -- | (243 | ) | -- | |||||||||
Balance, end of year | $ | 2,585 | $ | 1,933 | $ | 2,095 |
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Shareholders' Equity [Abstract] | |||||||||
Changes in restricted stock units | Changes in restricted stock units during the year ended December 31, 2014 are as follows: | ||||||||
2014 | Weighted Average | ||||||||
Grant Date | |||||||||
Fair Value | |||||||||
Unvested restricted stock units, beginning of year | 262 | $ | 30.54 | ||||||
Restricted stock units granted | 14 | 40.52 | |||||||
Restricted stock units forfeited | (4 | ) | 32.65 | ||||||
Restricted stock units vested | (75 | ) | 24.38 | ||||||
Unvested restricted stock units, end of year | 197 | 33.54 |
Operations_by_Industry_Segment1
Operations by Industry Segment and Geographic Area (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Operations by Industry Segment and Geographic Area [Abstract] | |||||||||||||||||||||
Segment information | The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. Intersegment sales and transfers are valued at prices comparable to those for unrelated parties. | ||||||||||||||||||||
Segment information for 2014 | |||||||||||||||||||||
Infrastructure | Aggregate and | Energy Group | Corporate | Total | |||||||||||||||||
Group | Mining Group | ||||||||||||||||||||
Revenues from external customers | $ | 386,356 | $ | 384,883 | $ | 204,356 | $ | -- | $ | 975,595 | |||||||||||
Intersegment revenues | 26,661 | 33,009 | 17,548 | -- | 77,218 | ||||||||||||||||
Interest expense | 31 | 463 | 11 | 215 | 720 | ||||||||||||||||
Depreciation and amortization | 7,045 | 10,120 | 6,358 | 853 | 24,376 | ||||||||||||||||
Income taxes | 1,365 | 1,235 | 348 | 16,452 | 19,400 | ||||||||||||||||
Profit (loss) | 29,477 | 32,900 | 10,316 | (35,270 | ) | 37,423 | |||||||||||||||
Assets | 539,794 | 494,428 | 244,003 | 305,282 | 1,583,507 | ||||||||||||||||
Capital expenditures | 5,375 | 16,169 | 2,875 | 413 | 24,832 | ||||||||||||||||
Segment information for 2013 | |||||||||||||||||||||
Infrastructure | Aggregate and | Energy Group | Corporate | Total | |||||||||||||||||
Group | Mining Group | ||||||||||||||||||||
Revenues from external customers | $ | 398,399 | $ | 350,514 | $ | 184,085 | $ | -- | $ | 932,998 | |||||||||||
Intersegment revenues | 21,682 | 45,435 | 12,857 | -- | 79,974 | ||||||||||||||||
Interest expense | 13 | 12 | 4 | 394 | 423 | ||||||||||||||||
Depreciation and amortization | 7,417 | 7,906 | 6,114 | 828 | 22,265 | ||||||||||||||||
Income taxes | 1,567 | 2,642 | 46 | 14,773 | 19,028 | ||||||||||||||||
Profit (loss) | 32,814 | 33,031 | 4,005 | (30,367 | ) | 39,483 | |||||||||||||||
Assets | 502,831 | 427,565 | 223,389 | 315,560 | 1,469,345 | ||||||||||||||||
Capital expenditures | 6,214 | 15,649 | 5,510 | 300 | 27,673 | ||||||||||||||||
Segment Information for 2012 | |||||||||||||||||||||
Infrastructure | Aggregate and Mining Group | Energy Group | Corporate | Total | |||||||||||||||||
Group | |||||||||||||||||||||
Revenues from external customers | $ | 390,753 | $ | 355,428 | $ | 190,092 | $ | -- | $ | 936,273 | |||||||||||
Intersegment revenues | 29,651 | 25,776 | 19,376 | -- | 74,803 | ||||||||||||||||
Interest expense | 143 | 32 | -- | 164 | 339 | ||||||||||||||||
Depreciation andamortization | 7,454 | 7,381 | 5,320 | 780 | 20,935 | ||||||||||||||||
Income taxes on continuing operations | 718 | 1,582 | 175 | 17,012 | 19,487 | ||||||||||||||||
Profit (loss) | 26,916 | 34,687 | 6,149 | (33,023 | ) | 34,729 | |||||||||||||||
Assets | 478,621 | 399,832 | 220,356 | 321,753 | 1,420,562 | ||||||||||||||||
Capital expenditures | 6,874 | 9,376 | 9,604 | 164 | 26,018 | ||||||||||||||||
Totals of segment information for all reportable segments reconciled to consolidated totals | The totals of segment information for all reportable segments reconciles to consolidated totals as follows: | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Net income attributable to controlling interest | |||||||||||||||||||||
Total profit for reportable segments | $ | 72,693 | $ | 69,850 | $ | 67,752 | |||||||||||||||
Corporate expenses, net | (35,270 | ) | (30,367 | ) | (33,023 | ) | |||||||||||||||
Net (income) loss attributable to non-controlling interest | 252 | (172 | ) | (161 | ) | ||||||||||||||||
Elimination of intersegment profit | (3,217 | ) | (269 | ) | (519 | ) | |||||||||||||||
Income from discontinued operations, net of tax | -- | -- | 3,401 | ||||||||||||||||||
Gain on sale of subsidiary, net of tax | -- | -- | 3,378 | ||||||||||||||||||
Total consolidated net income attributable to controlling interest | $ | 34,458 | $ | 39,042 | $ | 40,828 | |||||||||||||||
Assets | |||||||||||||||||||||
Total assets for reportable segments | $ | 1,278,225 | $ | 1,153,785 | $ | 1,098,809 | |||||||||||||||
Corporate assets | 305,282 | 315,560 | 321,753 | ||||||||||||||||||
Elimination of intercompany profit in inventory | (7,896 | ) | (4,679 | ) | (4,410 | ) | |||||||||||||||
Elimination of intercompany receivables | (515,625 | ) | (482,768 | ) | (469,254 | ) | |||||||||||||||
Elimination of investment in subsidiaries | (227,051 | ) | (195,199 | ) | (186,556 | ) | |||||||||||||||
Other eliminations | (27,470 | ) | (37,408 | ) | (31,559 | ) | |||||||||||||||
Total consolidated assets | $ | 805,465 | $ | 749,291 | $ | 728,783 | |||||||||||||||
Interest expense | |||||||||||||||||||||
Total interest expense for reportable segments | $ | 505 | $ | 29 | $ | 175 | |||||||||||||||
Corporate interest expense | 215 | 394 | 164 | ||||||||||||||||||
Total consolidated interest expense | $ | 720 | $ | 423 | $ | 339 | |||||||||||||||
Depreciation and amortization | |||||||||||||||||||||
Total depreciation and amortization for reportable segments | $ | 23,523 | $ | 21,437 | $ | 20,155 | |||||||||||||||
Corporate depreciation and amortization | 853 | 828 | 780 | ||||||||||||||||||
Depreciation from discontinued operations | -- | -- | 2,113 | ||||||||||||||||||
Total consolidated depreciation and amortization | $ | 24,376 | $ | 22,265 | $ | 23,048 | |||||||||||||||
Capital expenditures | |||||||||||||||||||||
Total capital expenditures for reportable segments | $ | 24,419 | $ | 27,373 | $ | 25,854 | |||||||||||||||
Corporate capital expenditures | 413 | 300 | 164 | ||||||||||||||||||
Total consolidated capital expenditures | $ | 24,832 | $ | 27,673 | $ | 26,018 | |||||||||||||||
Sales into major geographic regions | Sales into major geographic regions were as follows: | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
United States | $ | 654,230 | $ | 599,054 | $ | 572,522 | |||||||||||||||
Canada | 61,898 | 70,991 | 79,554 | ||||||||||||||||||
South America (excluding Brazil) | 49,797 | 33,526 | 38,049 | ||||||||||||||||||
Africa | 47,940 | 62,911 | 60,811 | ||||||||||||||||||
Australia and Oceania | 34,772 | 47,505 | 62,683 | ||||||||||||||||||
Russia | 25,589 | 17,440 | 14,641 | ||||||||||||||||||
Other Asian Countries | 17,018 | 5,836 | 8,315 | ||||||||||||||||||
Middle East | 13,327 | 6,699 | 6,705 | ||||||||||||||||||
Brazil | 12,869 | 11,620 | 15,675 | ||||||||||||||||||
Other European Countries | 12,365 | 15,428 | 20,249 | ||||||||||||||||||
Mexico | 9,993 | 15,917 | 23,084 | ||||||||||||||||||
Central America (excluding Mexico) | 9,275 | 5,620 | 6,843 | ||||||||||||||||||
Post-Soviet States (excluding Russia) | 8,245 | 25,849 | 11,533 | ||||||||||||||||||
China | 7,451 | 3,857 | 6,687 | ||||||||||||||||||
West Indies | 4,478 | 5,294 | 2,765 | ||||||||||||||||||
Japan and Korea | 4,377 | 1,749 | 1,509 | ||||||||||||||||||
India | 1,743 | 3,672 | 4,648 | ||||||||||||||||||
Other | 228 | 30 | -- | ||||||||||||||||||
Total foreign | 321,365 | 333,944 | 363,751 | ||||||||||||||||||
Total consolidated sales | $ | 975,595 | $ | 932,998 | $ | 936,273 | |||||||||||||||
Long-lived assets by major geographic region | Long-lived assets by major geographic region are as follows: | ||||||||||||||||||||
31-Dec | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
United States | $ | 150,425 | $ | 156,927 | |||||||||||||||||
Brazil | 14,798 | 9,024 | |||||||||||||||||||
South Africa | 7,295 | 7,203 | |||||||||||||||||||
Australia | 5,111 | 5,680 | |||||||||||||||||||
Northern Ireland | 5,065 | -- | |||||||||||||||||||
Canada | 3,592 | 4,145 | |||||||||||||||||||
Germany | 1,324 | 1,541 | |||||||||||||||||||
Total foreign | 37,185 | 27,593 | |||||||||||||||||||
Total | $ | 187,610 | $ | 184,520 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accumulated Other Comprehensive Income [Abstract] | |||||||||
Components of accumulated other comprehensive income | The balance of related after-tax components comprising accumulated other comprehensive loss is summarized below: | ||||||||
31-Dec | |||||||||
2014 | 2013 | ||||||||
Foreign currency translation adjustment | $ | (9,384 | ) | $ | (2,484 | ) | |||
Unrecognized pension and post-retirement benefit cost, net of tax of $2,197 and $1,498, respectively | (3,531 | ) | (2,410 | ) | |||||
Accumulated other comprehensive loss | $ | (12,915 | ) | $ | (4,894 | ) |
Other_Income_Expense_Net_Table
Other Income (Expense) Net (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Other Income (Expense) - Net [Abstract] | |||||||||||||
Schedule of other income, net of expenses | Other income (expense), net from continuing operations consists of the following: | ||||||||||||
Year Ended December 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Investment income | $ | 64 | $ | 853 | $ | 116 | |||||||
Licensing fees | 831 | 764 | 1,211 | ||||||||||
Other | 312 | 320 | 456 | ||||||||||
Total | $ | 1,207 | $ | 1,937 | $ | 1,783 |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Discontinued Operations [Abstract] | |||||
Schedule of results of operations and the gain on the sale of Augers are presented as discontinued operations | The results of operations and the gain on the sale of Augers are presented as discontinued operations for 2012. Summarized financial information for Augers is below: | ||||
2012 | |||||
Revenues | $ | 53,619 | |||
Discontinued operations | |||||
Operating income before tax | $ | 5,218 | |||
Income tax provision | 1,817 | ||||
Income from operations | 3,401 | ||||
Gain on sale of subsidiary | |||||
Gain on sale of subsidiary before tax | 5,357 | ||||
Income tax provision | 1,979 | ||||
Gain on sale of subsidiary | 3,378 | ||||
Income from discontinued operations | $ | 6,779 | |||
The carrying amounts of the major classes of assets and liabilities disposed on November 30, 2012 were as follows: | |||||
2012 | |||||
Assets | |||||
Cash | $ | 636 | |||
Receivables | 5,334 | ||||
Inventories | 26,568 | ||||
Prepaid and other assets | 430 | ||||
Property and equipment, net | 13,500 | ||||
Other assets | 465 | ||||
Total assets | 46,933 | ||||
Liabilities | |||||
Accounts payable | 2,518 | ||||
Other liabilities | 6,484 | ||||
Total liabilities | 9,002 | ||||
Net assets disposed | $ | 37,931 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Foreign Currency Translation [Abstract] | |||
Foreign currency transaction gains and (losses), net | ($1,971) | ($522) | $867 |
Cash and Cash Equivalents [Abstract] | |||
Maximum time period for liquid investments to be considered cash equivalents | 3 months | ||
Allowance for doubtful accounts [Roll Forward] | |||
Reserve balance, beginning of year | 1,708 | 2,143 | 2,398 |
Provision | 1,011 | 629 | 759 |
Write offs | -465 | -1,042 | -764 |
Other | -6 | -22 | -250 |
Reserve balance, end of year | 2,248 | 1,708 | 2,143 |
Estimated useful lives of definite lived intangible assets [Abstract] | |||
Years since last impairment evaluation | 1 year | 4 years | |
Advertising Expense [Abstract] | |||
Advertising costs | 3,657 | 3,770 | 4,223 |
Product Warranty Reserve [Abstract] | |||
Product warranty reserve term, minimum | 3 months | ||
Standard product warranty term, maximum | 2 years | ||
Stock-based Compensation [Abstract] | |||
Number of years RSU's can be earned based upon cumulative performance | 5 years | ||
Numerator [Abstract] | |||
Net income from continuing operations | 34,206 | 39,214 | 34,210 |
Net income (loss) attributable to non-controlling interests | -252 | 172 | 161 |
Net income attributable to controlling interest from continuing operations | 34,458 | 39,042 | 34,049 |
Denominator [Abstract] | |||
Denominator for basic earnings per share (in shares) | 22,819 | 22,749 | 22,680 |
Effect of dilutive securities [Abstract] | |||
Employee stock options and restricted stock units (in shares) | 176 | 218 | 262 |
Supplemental executive retirement plan (in shares) | 110 | 114 | 109 |
Denominator for diluted earnings per share (in shares) | 23,105 | 23,081 | 23,051 |
General Liability Insurance [Member] | |||
Self-Insurance Reserves [Abstract] | |||
Amount captive is liable per occurrence of claims | 1,000 | ||
Amount captive is liable per year in the aggregate | 2,000 | ||
Workers' Compensation Insurance [Member] | |||
Self-Insurance Reserves [Abstract] | |||
Amount captive is liable per occurrence of claims | 350 | ||
Amount captive is liable per year in the aggregate | $1,000 | ||
Minimum [Member] | |||
Estimated useful lives of definite lived intangible assets [Abstract] | |||
Estimated useful lives of intangible assets | 3 years | ||
Maximum [Member] | |||
Estimated useful lives of definite lived intangible assets [Abstract] | |||
Estimated useful lives of intangible assets | 15 years | ||
Aviation Equipment [Member] | |||
Useful Lives [Abstract] | |||
Estimated useful lives of assets | 20 years | ||
Buildings [Member] | |||
Useful Lives [Abstract] | |||
Estimated useful lives of assets | 40 years | ||
Equipment [Member] | Minimum [Member] | |||
Useful Lives [Abstract] | |||
Estimated useful lives of assets | 3 years | ||
Equipment [Member] | Maximum [Member] | |||
Useful Lives [Abstract] | |||
Estimated useful lives of assets | 10 years | ||
Osborn Engineered Products [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Percentage ownership of subsidiary (in hundredths) | 93.00% | ||
Astec do Brasil Fabricacao de Equipamentos LTDA [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Percentage ownership of subsidiary (in hundredths) | 78.00% |
Inventories_Details
Inventories (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventories [Abstract] | ||
Raw materials and parts | $149,171 | $139,372 |
Work-in-process | 105,163 | 74,663 |
Finished goods | 102,235 | 99,812 |
Used equipment | 31,266 | 28,466 |
Total | $387,835 | $342,313 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Trading equity securities [Abstract] | ||
SERP money market fund | $532 | $783 |
SERP mutual funds | 3,195 | 2,813 |
Preferred stocks | 973 | 1,170 |
Short-term investments in mutual funds | 16,073 | |
Trading debt securities [Abstract] | ||
Corporate bonds | 4,009 | 4,851 |
Municipal bonds | 2,060 | 1,908 |
Floating rate notes | 422 | 549 |
U.S. Treasury bill | 622 | 250 |
Other government bonds | 1,496 | 864 |
Derivative financial instruments | 547 | 452 |
Total financial assets | 13,856 | 29,713 |
Financial Liabilities [Abstract] | ||
SERP liabilities | 8,128 | 7,828 |
Total financial liabilities | 8,128 | 7,828 |
Investments included in Level 2 were transferred to Level 1 | 164 | |
Level 1 [Member] | ||
Trading equity securities [Abstract] | ||
SERP money market fund | 532 | 783 |
SERP mutual funds | 3,195 | 2,813 |
Preferred stocks | 973 | 1,170 |
Short-term investments in mutual funds | 16,073 | |
Trading debt securities [Abstract] | ||
Corporate bonds | 2,825 | 3,696 |
Municipal bonds | 0 | 0 |
Floating rate notes | 100 | 103 |
U.S. Treasury bill | 622 | 250 |
Other government bonds | 0 | 0 |
Derivative financial instruments | 0 | 0 |
Total financial assets | 8,247 | 24,888 |
Financial Liabilities [Abstract] | ||
SERP liabilities | 0 | 0 |
Total financial liabilities | 0 | 0 |
Level 2 [Member] | ||
Trading equity securities [Abstract] | ||
SERP money market fund | 0 | 0 |
SERP mutual funds | 0 | 0 |
Preferred stocks | 0 | 0 |
Short-term investments in mutual funds | 0 | |
Trading debt securities [Abstract] | ||
Corporate bonds | 1,184 | 1,155 |
Municipal bonds | 2,060 | 1,908 |
Floating rate notes | 322 | 446 |
U.S. Treasury bill | 0 | 0 |
Other government bonds | 1,496 | 864 |
Derivative financial instruments | 547 | 452 |
Total financial assets | 5,609 | 4,825 |
Financial Liabilities [Abstract] | ||
SERP liabilities | 8,128 | 7,828 |
Total financial liabilities | 8,128 | 7,828 |
Level 3 [Member] | ||
Trading equity securities [Abstract] | ||
SERP money market fund | 0 | 0 |
SERP mutual funds | 0 | 0 |
Preferred stocks | 0 | 0 |
Short-term investments in mutual funds | 0 | |
Trading debt securities [Abstract] | ||
Corporate bonds | 0 | 0 |
Municipal bonds | 0 | 0 |
Floating rate notes | 0 | 0 |
U.S. Treasury bill | 0 | 0 |
Other government bonds | 0 | 0 |
Derivative financial instruments | 0 | 0 |
Total financial assets | 0 | 0 |
Financial Liabilities [Abstract] | ||
SERP liabilities | 0 | 0 |
Total financial liabilities | $0 | $0 |
Investments_Details
Investments (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized Cost | $12,908 | $27,796 | |
Gross Unrealized Gains | 481 | 1,633 | |
Gross Unrealized Losses | 80 | 168 | |
Fair Value (Net Carrying Amount) | 13,309 | 29,261 | |
Net unrealized gains or (losses) on investments | -17 | 175 | 173 |
Trading equity securities [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized Cost | 4,335 | 19,411 | |
Gross Unrealized Gains | 374 | 1,459 | |
Gross Unrealized Losses | 9 | 31 | |
Fair Value (Net Carrying Amount) | 4,700 | 20,839 | |
Trading debt securities [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized Cost | 8,573 | 8,385 | |
Gross Unrealized Gains | 107 | 174 | |
Gross Unrealized Losses | 71 | 137 | |
Fair Value (Net Carrying Amount) | $8,609 | $8,422 |
Goodwill_Details
Goodwill (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill [Roll Forward] | ||
Beginning Balance | $15,057 | $15,011 |
Foreign currency translation | -1,318 | 46 |
Acquisition | 18,256 | |
Ending Balance | 31,995 | 15,057 |
Infrastructure Group [Member] | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 8,719 | 8,673 |
Foreign currency translation | -135 | 46 |
Acquisition | 0 | |
Ending Balance | 8,584 | 8,719 |
Aggregate and Mining Group [Member] | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 6,338 | 6,338 |
Foreign currency translation | -1,183 | 0 |
Acquisition | 18,256 | |
Ending Balance | 23,411 | 6,338 |
Energy Group [Member] | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 0 | 0 |
Foreign currency translation | 0 | 0 |
Acquisition | 0 | |
Ending Balance | 0 | 0 |
Corporate [Member] | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 0 | 0 |
Foreign currency translation | 0 | 0 |
Acquisition | 0 | |
Ending Balance | $0 | $0 |
Longlived_and_Intangible_Asset2
Long-lived and Intangible Assets (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Amortization expense on intangible assets | $2,735 | $1,066 | $1,855 |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Value | 24,055 | 10,788 | |
Accumulated Amortization | -6,783 | -4,245 | |
Net Carrying Value | 17,272 | 6,543 | |
Expected amortization expense over the next five years [Abstract] | |||
2015 | 3,152 | ||
2016 | 2,863 | ||
2017 | 2,466 | ||
2018 | 2,241 | ||
2019 | 1,589 | ||
Thereafter | 4,961 | ||
Dealer Network and Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Value | 13,600 | 6,678 | |
Accumulated Amortization | -4,245 | -3,019 | |
Net Carrying Value | 9,355 | 3,659 | |
Trade Names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Value | 4,984 | 2,575 | |
Accumulated Amortization | -645 | -353 | |
Net Carrying Value | 4,339 | 2,222 | |
Other [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Value | 5,471 | 1,535 | |
Accumulated Amortization | -1,893 | -873 | |
Net Carrying Value | $3,578 | $662 |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Accumulated depreciation | ($222,001) | ($207,986) | |
Total | 187,610 | 184,520 | |
Depreciation expense | 21,343 | 20,966 | 20,945 |
Loudon [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Value of land & building which intends to sell | 9,209 | ||
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 14,024 | 13,952 | |
Building and Land Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 146,266 | 136,000 | |
Manufacturing and Office Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 235,623 | 227,641 | |
Aviation Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $13,698 | $14,913 |
Leases_Details
Leases (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Leases [Abstract] | |||
Rental expense charged to operations under operating leases | $2,544 | $2,436 | $2,753 |
Minimum rental commitments for all noncancelable operating leases [Abstract] | |||
2015 | 1,463 | ||
2016 | 1,274 | ||
2017 | 434 | ||
2018 | 102 | ||
2019 | 25 | ||
Thereafter | 0 | ||
Total | $3,298 |
Debt_Details
Debt (Details) | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | USD ($) | Equipment Financing Loans [Member] | Astec Brazil [Member] | Astec Brazil [Member] | Astec Brazil [Member] | Astec Brazil [Member] | Astec Brazil [Member] | Wells Fargo [Member] | Osborn [Member] | Osborn [Member] |
USD ($) | USD ($) | Minimum [Member] | Maximum [Member] | Equipment Financing Loans [Member] | Equipment Financing Loans [Member] | USD ($) | USD ($) | ZAR | ||
Minimum [Member] | Maximum [Member] | |||||||||
Debt [Line Items] | ||||||||||
Amount of credit facility | $100,000 | $8,227 | 95,000 | |||||||
Sub-limit for letters of credit | 25,000 | |||||||||
Term of credit facility | 5 years | 5 years | ||||||||
Maturity date | 31-May-16 | 30-Sep-17 | 31-Jan-19 | 30-Sep-19 | 30-Apr-17 | |||||
Original terms of credit facility | 100,000 | |||||||||
Contingent liabilities for letters of credit issued on behalf of foreign subsidiaries | 8,674 | 12,645 | 0 | |||||||
Line of credit, additional borrowing capacity | 87,355 | |||||||||
Loan amount | 2,430 | 5,658 | 0 | 2,814 | ||||||
Interest rate description | daily one-month LIBOR rate plus a 0.75% margin | |||||||||
Additional rate over base, percentage (in hundredths) | 0.75% | |||||||||
Unused facility fee as a percentage of line of credit (in hundredths) | 0.18% | |||||||||
Performance bank guarantee, subsidiary obligations to fulfill contracts | 487 | |||||||||
Available credit under the facility | 4,926 | |||||||||
Basis Spread on Variable Rate | -0.25% | -0.25% | ||||||||
Interest rate South Africa (in hundredths) | 9.00% | 9.00% | ||||||||
Outstanding working capital loans | 5,658 | |||||||||
Outstanding working capital loans, interest rate (in hundredths) | 12.50% | |||||||||
Minimum interest rate (in hundredths) | 3.50% | |||||||||
Maximum interest rate (in hundredths) | 6.00% | |||||||||
Short-term debt | 1,027 | 2,814 | ||||||||
Long-term debt, current and non-current maturities | 7,061 | |||||||||
Long-term debt maturities - twelve months | 1,027 | |||||||||
Long-term debt maturities - two years | 4,783 | |||||||||
Long-term debt maturities - three years | 1,018 | |||||||||
Long-term debt maturities - four years | 988 | |||||||||
Long-term debt maturities - five years | 199 | |||||||||
Long-term debt maturities - thereafter | $73 |
Product_Warranty_Reserves_Deta
Product Warranty Reserves (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Product Warranty Reserves [Abstract] | |||
Product warranty reserve term, minimum | 3 months | ||
Standard product warranty term, maximum | 2 years | ||
Product warranty reserves [Roll Forward] | |||
Reserve balance, beginning of year | $12,716 | $11,052 | $12,663 |
Warranty liabilities accrued | 12,796 | 12,199 | 11,152 |
Warranty liabilities settled | -15,563 | -10,171 | -11,022 |
Other | 83 | -364 | -1,741 |
Reserve balance, end of year | $10,032 | $12,716 | $11,052 |
Accrued_Loss_Reserves_Details
Accrued Loss Reserves (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accrued Loss Reserves [Abstract] | ||
Total accrued loss reserves | $7,562 | $7,344 |
Accrued loss reserves included in other long-term liabilities | $4,512 | $4,016 |
Pension_and_Retirement_Plans_D
Pension and Retirement Plans (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Actual allocations (in hundredths) | 100.00% | 100.00% | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Company's 401(K) contributions for the year | $5,134 | $4,941 | $5,099 |
SERP [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Change in the fair market value of Company stock held in the SERP | 552 | 601 | 115 |
Cost [Member] | SERP [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Plan Assets | 6,297 | 6,027 | |
Cost [Member] | Company Stock [Member] | SERP [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Plan Assets | 2,929 | 2,786 | |
Cost [Member] | Equity Securities [Member] | SERP [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Plan Assets | 3,368 | 3,241 | |
Market [Member] | SERP [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Plan Assets | 8,128 | 7,828 | |
Market [Member] | Company Stock [Member] | SERP [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Plan Assets | 4,401 | 4,232 | |
Market [Member] | Equity Securities [Member] | SERP [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Plan Assets | 3,727 | 3,596 | |
Equity Securities [Member] | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Actual allocations (in hundredths) | 65.60% | 65.40% | |
Target Plan Asset Allocations, Minimum (in hundredths) | 53.00% | 53.00% | |
Target Plan Asset Allocations, Maximum (in hundredths) | 73.00% | 73.00% | |
Debt Securities [Member] | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Actual allocations (in hundredths) | 30.10% | 27.80% | |
Target Plan Asset Allocations, Minimum (in hundredths) | 21.00% | 21.00% | |
Target Plan Asset Allocations, Maximum (in hundredths) | 41.00% | 41.00% | |
Money Market Funds [Member] | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Actual allocations (in hundredths) | 4.30% | 6.80% | |
Target Plan Asset Allocations, Minimum (in hundredths) | 0.00% | 0.00% | |
Target Plan Asset Allocations, Maximum (in hundredths) | 15.00% | 15.00% | |
Pension Benefits [Member] | |||
Change in benefit obligation [Roll forward] | |||
Benefit obligation, beginning of year | 13,815 | 14,958 | |
Interest cost | 620 | 561 | 599 |
Actuarial (gain)/loss | 2,118 | -1,178 | |
Benefits paid | -567 | -526 | |
Benefit obligation, end of year | 15,986 | 13,815 | 14,958 |
Accumulated benefit obligation | 15,986 | 13,815 | |
Change in plan assets [Roll forward] | |||
Fair value of plan assets, beginning of year (Level 1) | 12,693 | 10,784 | |
Actual gain on plan assets | 819 | 1,624 | |
Employer contribution | 338 | 811 | |
Benefits paid | -567 | -526 | |
Fair value of plan assets, end of year (Level 1) | 13,283 | 12,693 | 10,784 |
Funded status, end of year | -2,703 | -1,122 | |
Amounts recognized in the consolidated balance sheets [Abstract] | |||
Noncurrent liabilities | -2,703 | -1,122 | |
Net amount recognized | -2,703 | -1,122 | |
Amounts recognized in accumulated other comprehensive income consist of [Abstract] | |||
Net loss | 5,896 | 4,076 | |
Net amount recognized | 5,896 | 4,076 | |
Weighted average assumptions used to determine benefit obligations as of December 31 [Abstract] | |||
Discount rate (in hundredths) | 3.81% | 4.60% | |
Expected return on plan assets (in hundredths) | 7.00% | 7.00% | |
Rate of compensation increase (in hundredths) | |||
Components of net periodic benefit cost [Abstract] | |||
Interest cost | 620 | 561 | 599 |
Expected return on plan assets | -816 | -693 | -648 |
Amortization of actuarial loss | 295 | 536 | 502 |
Net periodic benefit cost | 99 | 404 | 453 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income [Abstract] | |||
Net actuarial (gain)/loss for the year | 2,115 | -2,109 | 656 |
Amortization of net loss | -295 | -536 | -502 |
Total recognized in other comprehensive income | 1,820 | -2,645 | 154 |
Total recognized in net periodic benefit cost and other comprehensive income | 1,919 | -2,241 | 607 |
Weighted average assumptions used to determine net periodic benefit cost for years ended December 31 [Abstract] | |||
Discount rate (in hundredths) | 4.60% | 3.82% | 4.46% |
Expected return on plan assets (in hundredths) | 7.00% | 7.00% | 7.00% |
Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract] | |||
Company's expectation to contribute to the plans during the next year | 0 | ||
Future amortization of a net loss in pension benefits in next year | 500 | ||
Estimated future benefit payments [Abstract] | |||
2015 | 710 | ||
2016 | 760 | ||
2017 | 800 | ||
2018 | 830 | ||
2019 | 860 | ||
2020 - 2024 | $4,500 |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Derivative Financial Instruments [Abstract] | ||
Average notional amount | $10,328 | |
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 547 | 452 |
Foreign Exchange Contract [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 434 | 452 |
Foreign Exchange Contract [Member] | Other Noncurrent Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $113 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments, Gain (Loss) recognized in income (Details) (Not Designated as Hedging Instrument [Member], Foreign Exchange Contract [Member], Cost of Sales [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Cost of Sales [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain/(loss) of derivative financial instruments recognized in income, net | $438 | $1,061 | ($594) |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income before income taxes [Abstract] | |||
United States | $57,651 | $53,315 | $47,400 |
Foreign | -4,045 | 4,927 | 6,297 |
Income from continuing operations before income taxes | 53,606 | 58,242 | 53,697 |
Current provision [Abstract] | |||
Federal | 18,713 | 16,239 | 9,637 |
State | 2,992 | 2,785 | 2,096 |
Foreign | 243 | 2,664 | 1,996 |
Total current provision | 21,948 | 21,688 | 13,729 |
Deferred provision (benefit) [Abstract] | |||
Federal | -1,627 | -885 | 6,135 |
State | -222 | -923 | -768 |
Foreign | -699 | -852 | 391 |
Total deferred provision (benefit) | -2,548 | -2,660 | 5,758 |
Total provision (benefit) [Abstract] | |||
Federal | 17,086 | 15,354 | 15,772 |
State | 2,770 | 1,862 | 1,328 |
Foreign | -456 | 1,812 | 2,387 |
Income tax provision on continued operations | 19,400 | 19,028 | 19,487 |
Income tax provision on discontinued operations | 0 | 0 | 3,796 |
Total tax provision | 19,400 | 19,028 | 23,283 |
Reconciliation of provision for income taxes [Abstract] | |||
Tax at the statutory federal income tax rate | 18,762 | 20,385 | 18,794 |
Qualified production activity deduction | -1,360 | -1,395 | -958 |
State income tax, net of federal income tax | 1,727 | 1,105 | 758 |
Other permanent differences | 840 | 464 | 360 |
Research and development tax credits | -1,323 | -2,054 | -419 |
Change in valuation allowance | 1,675 | 810 | 1,034 |
Other items | -921 | -287 | -82 |
Income tax provision on continued operations | 19,400 | 19,028 | 19,487 |
Income tax provision on discontinued operations | 0 | 0 | 3,796 |
Total tax provision | 19,400 | 19,028 | 23,283 |
Deferred tax assets [Abstract] | |||
Inventory reserves | 6,539 | 6,340 | |
Warranty reserves | 2,988 | 3,558 | |
Bad debt reserves | 598 | 636 | |
State tax loss carryforwards | 2,377 | 2,100 | |
Accrued vacation | 2,060 | 1,805 | |
SERP | 1,231 | 1,245 | |
Deferred compensation | 1,255 | 1,226 | |
Restricted stock units | 2,256 | 2,601 | |
Foreign exchange gains/losses | 3,111 | 2,345 | |
Pension and post-employment benefits | 2,197 | 1,498 | |
Foreign deferred tax assets | 3,311 | 3,642 | |
Foreign net operating losses | 3,168 | 1,561 | |
Other | 3,267 | 2,708 | |
Valuation allowances | -6,029 | -4,354 | |
Total deferred tax assets | 28,329 | 26,911 | |
Deferred tax liabilities [Abstract] | |||
Property and equipment | 19,394 | 19,711 | |
Amortization | 1,087 | 1,200 | |
Goodwill | 2,014 | 2,012 | |
Pension | 1,313 | 1,132 | |
Foreign tax rate differential | 2,236 | 3,681 | |
Foreign deferred tax liabilities | 3,820 | 1,227 | |
Total deferred tax liabilities | 29,864 | 28,963 | |
Total net deferred liabilities | -1,535 | -2,052 | |
Operating Loss Carryforwards [Line Items] | |||
Recognized tax benefits related to penalties and interest settled for less than previously accrued | 107 | 101 | |
Liability for unrecognized tax benefits, | 2,585 | 1,933 | 2,095 |
Unrecognized tax benefits, if recognized that would effect the effective rate | 2,722 | 1,954 | |
Period company does not expect significant increase or decrease to total amount of unrecognized tax benefits | 12 months | ||
Reconciliation on unrecognized tax benefits [Roll forward] | |||
Balance, beginning of year | 1,933 | 2,095 | 1,682 |
Additions for tax positions related to the current year | 127 | 102 | 396 |
Additions for tax positions related to prior years | 525 | 128 | 90 |
Reductions due to lapse of statutes of limitations | 0 | -149 | -73 |
Decreases related to settlements with tax authorities | 0 | -243 | 0 |
Balance, end of year | 2,585 | 1,933 | 2,095 |
Breaker Technology, Ltd. [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Undistributed earnings of foreign subsidiaries | 8,900 | ||
Telestack Limited [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Undistributed earnings of foreign subsidiaries | 1,000 | ||
Internal Revenue Service (IRS) [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Increase in valuation allowance on operating loss carryforwards | 1,720 | ||
Increase in other deferred tax assets valuation allowance | -45 | ||
Internal Revenue Service (IRS) [Member] | Minimum [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards, Expiration Dates | 1-Jan-15 | ||
Internal Revenue Service (IRS) [Member] | Maximum [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards, Expiration Dates | 31-Dec-28 | ||
U.S. Federal [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Period of exemption from income tax examination | 2010 | ||
State [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | 56,116 | ||
Tax credit carryforward | 1,161 | ||
Period of exemption from income tax examination | 2007 | ||
Foreign Tax Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | $10,482 | ||
Period of exemption from income tax examination | 2007 |
Contingent_Matters_Details
Contingent Matters (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Contingent Matters [Abstract] | ||
Contingent liability for customer debt | $2,419 | $693 |
Maximum potential amount of future payments for customer debt | 2,419 | |
Liability recorded related to guarantees | 101 | |
Guarantor Obligations [Line Items] | ||
Contingent liabilities for letters of credit | 13,155 | |
Number of parties involved in EPA cleanup | 300 | |
Letter of Credit Wells Fargo [Member] | ||
Guarantor Obligations [Line Items] | ||
Contingent liabilities for letters of credit | 12,645 | |
Line of credit facility, maximum expiration date | 30-Nov-17 | |
Letters of Credit Osborn [Member] | ||
Guarantor Obligations [Line Items] | ||
Performance bank guarantee, subsidiary obligations to fulfill contracts | 487 | |
Letters of Credit Astec Australia [Member] | ||
Guarantor Obligations [Line Items] | ||
Performance bank guarantee, subsidiary obligations to fulfill contracts | 23 | |
Letters of Credit Astec Brazil [Member] | ||
Guarantor Obligations [Line Items] | ||
Contingent liabilities for letters of credit issued on behalf of foreign subsidiaries | $8,674 |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Shareholders protection right agreement [Abstract] | |||
Common stock, par value (in dollars per shares) | $0.20 | $0.20 | |
Unit of series A participating preferred stock a right is entitled to purchase | one one-hundredth | ||
Par value of series A participating preferred stock, (in dollars per share) | $1 | $1 | |
Purchase price of series A participating stock (in dollars per shares) | $72 | ||
Number of business days when rights will separate from Common Stock (in days) | 10 days | ||
Percentage of beneficial ownership of outstanding shares that will cause right to separate from common stock (in hundredths) | 15.00% | ||
Percentage of tender offer or exchange offer of outstanding shares that will cause the right to separate from common stock (in hundredths) | 15.00% | ||
Number of business days following announcement of an acquiring person when the board may terminate the rights (in days) | 10 days | ||
Current market value of common stock that each right can purchase | Twice the Unit purchase price | ||
Restricted Stock Units (RSUs) [Member] | |||
Restricted stock units under the 2006 and 2011 Incentive Plan [Abstract] | |||
Award vesting period (in years) | 5 years | ||
Maximum shares granted to employees (in shares) | 700 | ||
Terms for stock vesting if earlier than five years | Each award vests at the end of five years from the date of grant, or at the time a recipient retires after reaching age 65, if earlier | ||
Fair value of vested RSU's | $3,045 | $2,405 | $2,719 |
Reduction in tax benefit | 470 | 77 | 67 |
Compensation expense | 961 | 1,231 | 1,054 |
Income tax benefits | 348 | 417 | 387 |
Anticipated additional compensation costs to be recognized in future periods | 2,217 | ||
Weighted average period over which additional compensation cost will be expensed (in years) | 3 years 9 months 18 days | ||
Grant date fair value of restricted stock units granted | $561 | $763 | $1,303 |
Restricted stock units [Roll Forward] | |||
Unvested restricted stock units, beginning of year (in shares) | 262 | ||
Restricted stock units granted (in shares) | 14 | ||
Restricted stock units forfeited (in shares) | -4 | ||
Restricted stock units vested (in shares) | -75 | ||
Unvested restricted stock units, end of year (in shares) | 197 | 262 | |
Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted average grant date fair value, beginning balance (in dollars per share) | $30.54 | ||
Weighted average grant date fair value, granted (in dollars per share) | $40.52 | ||
Weighted average grant date fair value, forfeited (in dollars per share) | $32.65 | ||
Weighted average grant date fair value, vested (in dollars per share) | $24.38 | ||
Weighted average grant date fair value, ending balance (in dollars per share) | $33.54 | $30.54 |
Operations_by_Industry_Segment2
Operations by Industry Segment and Geographic Area (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment | |||
Operations by Industry Segment and Geographic Area [Abstract] | |||
Number of reportable segments | 3 | ||
Sales [Abstract] | |||
Total consolidated sales | $975,595 | $932,998 | $936,273 |
Interest expense | 720 | 423 | 339 |
Depreciation and amortization | 24,376 | 22,265 | 20,935 |
Income taxes | 19,400 | 19,028 | 19,487 |
Profit (loss) | 37,423 | 39,483 | 34,729 |
Assets | 1,583,507 | 1,469,345 | 1,420,562 |
Capital expenditures | 24,832 | 27,673 | 26,018 |
Net income attributable to controlling interest [Abstract] | |||
Net (income) loss attributable to non-controlling interest | 252 | -172 | -161 |
Income from discontinued operations, net of tax | 0 | 0 | 3,401 |
Gain on sale of subsidiary, net of tax | 0 | 0 | 3,378 |
Total consolidated net income attributable to controlling interest | 34,458 | 39,042 | 40,828 |
Assets [Abstract] | |||
Total assets | 805,465 | 749,291 | 728,783 |
Interest expense [Abstract] | |||
Total consolidated interest expense | 720 | 423 | 339 |
Depreciation and amortization [Abstract] | |||
Depreciation from discontinued operations | 0 | 0 | 2,113 |
Total consolidated depreciation and amortization | 24,376 | 22,265 | 23,048 |
Elimination of Intercompany Profit in Inventory [Member] | |||
Assets [Abstract] | |||
Total assets | -7,896 | -4,679 | -4,410 |
Elimination of Intercompany Receivables [Member] | |||
Assets [Abstract] | |||
Total assets | -515,625 | -482,768 | -469,254 |
Elimination of Investment in Subsidiaries [Member] | |||
Assets [Abstract] | |||
Total assets | -227,051 | -195,199 | -186,556 |
Infrastructure Group [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of business units | 5 | ||
Energy Group [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of business units | 5 | ||
Corporate Group [Member] | |||
Sales [Abstract] | |||
Interest expense | 215 | 394 | 164 |
Assets [Abstract] | |||
Total assets | 305,282 | 315,560 | 321,753 |
Interest expense [Abstract] | |||
Total consolidated interest expense | 215 | 394 | 164 |
Aggregate and Mining Group [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of business units | 8 | ||
All Others [Member] | |||
Net income attributable to controlling interest [Abstract] | |||
Total profit (other losses) | -35,270 | -30,367 | -33,023 |
Depreciation and amortization [Abstract] | |||
Total consolidated depreciation and amortization | 853 | 828 | 780 |
Capital expenditures [Abstract] | |||
Total consolidated capital expenditures | 413 | 300 | 164 |
Reportable Segments [Member] | |||
Sales [Abstract] | |||
Interest expense | 505 | 29 | 175 |
Net income attributable to controlling interest [Abstract] | |||
Total profit (other losses) | 72,693 | 69,850 | 67,752 |
Assets [Abstract] | |||
Total assets | 1,278,225 | 1,153,785 | 1,098,809 |
Interest expense [Abstract] | |||
Total consolidated interest expense | 505 | 29 | 175 |
Depreciation and amortization [Abstract] | |||
Total consolidated depreciation and amortization | 23,523 | 21,437 | 20,155 |
Capital expenditures [Abstract] | |||
Total consolidated capital expenditures | 24,419 | 27,373 | 25,854 |
Reportable Segments [Member] | Infrastructure Group [Member] | |||
Sales [Abstract] | |||
Total consolidated sales | 386,356 | 398,399 | 390,753 |
Interest expense | 31 | 13 | 143 |
Depreciation and amortization | 7,045 | 7,417 | 7,454 |
Income taxes | 1,365 | 1,567 | 718 |
Profit (loss) | 29,477 | 32,814 | 26,916 |
Assets | 539,794 | 502,831 | 478,621 |
Capital expenditures | 5,375 | 6,214 | 6,874 |
Interest expense [Abstract] | |||
Total consolidated interest expense | 31 | 13 | 143 |
Reportable Segments [Member] | Energy Group [Member] | |||
Sales [Abstract] | |||
Total consolidated sales | 204,356 | 184,085 | 190,092 |
Interest expense | 11 | 4 | 0 |
Depreciation and amortization | 6,358 | 6,114 | 5,320 |
Income taxes | 348 | 46 | 175 |
Profit (loss) | 10,316 | 4,005 | 6,149 |
Assets | 244,003 | 223,389 | 220,356 |
Capital expenditures | 2,875 | 5,510 | 9,604 |
Interest expense [Abstract] | |||
Total consolidated interest expense | 11 | 4 | 0 |
Reportable Segments [Member] | Corporate Group [Member] | |||
Sales [Abstract] | |||
Total consolidated sales | 0 | 0 | 0 |
Interest expense | 215 | 394 | 164 |
Depreciation and amortization | 853 | 828 | 780 |
Income taxes | 16,452 | 14,773 | 17,012 |
Profit (loss) | -35,270 | -30,367 | -33,023 |
Assets | 305,282 | 315,560 | 321,753 |
Capital expenditures | 413 | 300 | 164 |
Interest expense [Abstract] | |||
Total consolidated interest expense | 215 | 394 | 164 |
Reportable Segments [Member] | Aggregate and Mining Group [Member] | |||
Sales [Abstract] | |||
Total consolidated sales | 384,883 | 350,514 | 355,428 |
Interest expense | 463 | 12 | 32 |
Depreciation and amortization | 10,120 | 7,906 | 7,381 |
Income taxes | 1,235 | 2,642 | 1,582 |
Profit (loss) | 32,900 | 33,031 | 34,687 |
Assets | 494,428 | 427,565 | 399,832 |
Capital expenditures | 16,169 | 15,649 | 9,376 |
Interest expense [Abstract] | |||
Total consolidated interest expense | 463 | 12 | 32 |
Intersegment Eliminations [Member] | |||
Sales [Abstract] | |||
Total consolidated sales | 77,218 | 79,974 | 74,803 |
Net income attributable to controlling interest [Abstract] | |||
Total profit (other losses) | -3,217 | -269 | -519 |
Assets [Abstract] | |||
Total assets | -27,470 | -37,408 | -31,559 |
Intersegment Eliminations [Member] | Infrastructure Group [Member] | |||
Sales [Abstract] | |||
Total consolidated sales | 26,661 | 21,682 | 29,651 |
Intersegment Eliminations [Member] | Energy Group [Member] | |||
Sales [Abstract] | |||
Total consolidated sales | 17,548 | 12,857 | 19,376 |
Intersegment Eliminations [Member] | Corporate Group [Member] | |||
Sales [Abstract] | |||
Total consolidated sales | 0 | 0 | 0 |
Intersegment Eliminations [Member] | Aggregate and Mining Group [Member] | |||
Sales [Abstract] | |||
Total consolidated sales | $33,009 | $45,435 | $25,776 |
Design Engineer Manufacture Market [Member] | Infrastructure Group [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of business units | 3 | ||
Company-owned Dealer [Member] | Infrastructure Group [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of business units | 2 |
Operations_by_Industry_Segment3
Operations by Industry Segment and Geographic Area, External Customers and Long-Lived Assets (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total consolidated sales | $975,595 | $932,998 | $936,273 |
Long-lived assets by geographic region | 187,610 | 184,520 | |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total consolidated sales | 654,230 | 599,054 | 572,522 |
Long-lived assets by geographic region | 150,425 | 156,927 | |
Germany [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets by geographic region | 1,324 | 1,541 | |
Canada [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total consolidated sales | 61,898 | 70,991 | 79,554 |
Long-lived assets by geographic region | 3,592 | 4,145 | |
Australia [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets by geographic region | 5,111 | 5,680 | |
Africa [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total consolidated sales | 47,940 | 62,911 | 60,811 |
Australia and Oceana [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total consolidated sales | 34,772 | 47,505 | 62,683 |
South America (excluding Brazil) [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total consolidated sales | 49,797 | 33,526 | 38,049 |
Post-Soviet States (excluding Russia) [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total consolidated sales | 8,245 | 25,849 | 11,533 |
Russia [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total consolidated sales | 25,589 | 17,440 | 14,641 |
Mexico [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total consolidated sales | 9,993 | 15,917 | 23,084 |
Northern Ireland [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets by geographic region | 5,065 | 0 | |
Other European Countries [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total consolidated sales | 12,365 | 15,428 | 20,249 |
Brazil [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total consolidated sales | 12,869 | 11,620 | 15,675 |
Long-lived assets by geographic region | 14,798 | 9,024 | |
Middle East [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total consolidated sales | 13,327 | 6,699 | 6,705 |
Other Asian Countries [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total consolidated sales | 17,018 | 5,836 | 8,315 |
Central America (excluding Mexico) [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total consolidated sales | 9,275 | 5,620 | 6,843 |
West Indies [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total consolidated sales | 4,478 | 5,294 | 2,765 |
China [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total consolidated sales | 7,451 | 3,857 | 6,687 |
India [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total consolidated sales | 1,743 | 3,672 | 4,648 |
Japan and Korea [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total consolidated sales | 4,377 | 1,749 | 1,509 |
Other Foreign Countries [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total consolidated sales | 228 | 30 | 0 |
Total Foreign [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total consolidated sales | 321,365 | 333,944 | 363,751 |
Long-lived assets by geographic region | 37,185 | 27,593 | |
South Africa [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets by geographic region | $7,295 | $7,203 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
After Tax components of accumulated comprehensive income [Abstract] | ||
Foreign currency translation adjustment | ($9,384) | ($2,484) |
Unrecognized pension and post-retirement benefit cost, net of tax of $2,197 and $1,498, respectively | -3,531 | -2,410 |
Accumulated other comprehensive loss | -12,915 | -4,894 |
Unrecognized pension and post-retirement benefit cost, tax | $2,197 | $1,498 |
Other_Income_Expense_Net_Detai
Other Income (Expense) Net (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Income (Expense) - Net [Abstract] | |||
Interest income | $64 | $853 | $116 |
Licensing fees | 831 | 764 | 1,211 |
Other | 312 | 320 | 456 |
Total | $1,207 | $1,937 | $1,783 |
Business_Combinations_Details
Business Combinations (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 02, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Business Acquisition [Line Items] | ||||
Amount held in escrow | $2,500 | $2,500 | ||
Goodwill | 31,995 | 15,057 | 15,011 | |
Minimum [Member] | ||||
Business Acquisition [Line Items] | ||||
Useful life of intangible assets | 3 years | |||
Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Useful life of intangible assets | 15 years | |||
Astec Brazil [Member] | ||||
Business Acquisition [Line Items] | ||||
Initial Investment | 13,505 | |||
Newly constructed facility (in square foot) | 132,400 | |||
Expected employees at full capacity (in number of employees) | 120 | |||
Astec Brazil [Member] | Brazilian joint venture [Member] | ||||
Business Acquisition [Line Items] | ||||
Expected ownership percentage (in hundredth) | 75.00% | |||
MDE [Member] | ||||
Business Acquisition [Line Items] | ||||
Expected ownership percentage (in hundredth) | 25.00% | |||
Telestack Limited [Member] | ||||
Business Acquisition [Line Items] | ||||
Percentages of stock acquired (in hundredths) | 100.00% | |||
Cash purchase price | 36,183 | |||
Period of time for amount held in escrow | 1 year | |||
Goodwill | 18,256 | |||
Other intangible assets | $14,445 | |||
Telestack Limited [Member] | Trade Names [Member] | ||||
Business Acquisition [Line Items] | ||||
Useful life of intangible assets | 15 years | |||
Telestack Limited [Member] | Patents [Member] | Minimum [Member] | ||||
Business Acquisition [Line Items] | ||||
Useful life of intangible assets | 5 years | |||
Telestack Limited [Member] | Patents [Member] | Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Useful life of intangible assets | 10 years | |||
Telestack Limited [Member] | Noncompete agreements [Member] | ||||
Business Acquisition [Line Items] | ||||
Useful life of intangible assets | 3 years | |||
Telestack Limited [Member] | Customer relationships [Member] | ||||
Business Acquisition [Line Items] | ||||
Useful life of intangible assets | 11 years |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 30, 2012 |
Discontinued operations [Abstract] | ||||
Income from operations | $0 | $0 | $3,401 | |
Gain on sale of subsidiary [Abstract] | ||||
Gain on sale of subsidiary | 0 | 0 | 3,378 | |
Income from discontinued operations | 0 | 0 | 6,779 | |
American Augers, Inc. [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from sale of Augers | 42,940 | |||
Post closing adjustment | 499 | 288 | ||
Discontinued operation, summarized financial information [Abstract] | ||||
Revenues | 53,619 | |||
Discontinued operations [Abstract] | ||||
Operating income (loss) before tax | 5,218 | |||
Income tax provision (benefit) | 1,817 | |||
Income from operations | 3,401 | |||
Gain on sale of subsidiary [Abstract] | ||||
Gain on sale of subisidiary before tax | 5,357 | |||
Income tax provision | 1,979 | |||
Gain on sale of subsidiary | 3,378 | |||
Income from discontinued operations | 6,779 | |||
Assets [Abstract] | ||||
Cash | 636 | |||
Receivables | 5,334 | |||
Inventories | 26,568 | |||
Prepaid and other assets | 430 | |||
Property and equipment, net | 13,500 | |||
Other assets | 465 | |||
Total assets | 46,933 | |||
Liabilities [Abstract] | ||||
Accounts payable | 2,518 | |||
Other liabilities | 6,484 | |||
Total liabilities | 9,002 | |||
Net assets disposed | $37,931 |