Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 25, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | ASTEC INDUSTRIES INC | |
Entity Central Index Key | 792,987 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 22,987,338 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 13,985 | $ 13,023 |
Investments | 1,834 | 1,916 |
Trade receivables | 103,629 | 105,743 |
Other receivables | 1,597 | 1,558 |
Inventories | 384,531 | 387,835 |
Prepaid expenses and other | 34,161 | 28,299 |
Deferred income tax assets | 16,237 | 14,817 |
Total current assets | 555,974 | 553,191 |
Property and equipment, net | 170,508 | 187,610 |
Investments | 11,814 | 11,393 |
Goodwill | 31,280 | 31,995 |
Other long-term assets | 17,711 | 21,276 |
Total assets | 787,287 | 805,465 |
Current liabilities: | ||
Short-term debt and current maturities of long-term debt | 4,819 | 3,841 |
Accounts payable | 46,406 | 60,987 |
Income taxes payable | 881 | 2,418 |
Accrued product warranty | 10,064 | 10,032 |
Customer deposits | 32,563 | 45,086 |
Accrued payroll and related liabilities | 19,893 | 17,265 |
Accrued loss reserves | 3,037 | 3,050 |
Other current liabilities | 20,311 | 18,450 |
Total current liabilities | 137,974 | 161,129 |
Long-term debt | 4,394 | 7,061 |
Deferred income tax liabilities | 13,194 | 16,836 |
Other long-term liabilities | 19,331 | 21,087 |
Total liabilities | 174,893 | 206,113 |
Shareholders' equity | 610,392 | 595,166 |
Non-controlling interest | 2,002 | 4,186 |
Total equity | 612,394 | 599,352 |
Total liabilities and equity | $ 787,287 | $ 805,465 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Condensed Consolidated Statements of Income (unaudited) [Abstract] | ||||
Net sales | $ 211,350 | $ 220,157 | $ 768,141 | $ 736,086 |
Cost of sales | 166,212 | 176,896 | 594,724 | 573,890 |
Gross profit | 45,138 | 43,261 | 173,417 | 162,196 |
Selling, general, administrative and engineering expenses | 41,023 | 38,867 | 128,136 | 122,539 |
Income from operations | 4,115 | 4,394 | 45,281 | 39,657 |
Interest expense | 505 | 193 | 1,222 | 375 |
Other income, net of expenses | 510 | 710 | 2,543 | 2,254 |
Income from operations before income taxes | 4,120 | 4,911 | 46,602 | 41,536 |
Income taxes | 2,162 | 3,145 | 18,070 | 15,734 |
Net income | 1,958 | 1,766 | 28,532 | 25,802 |
Net loss attributable to non-controlling interest | (334) | (150) | (669) | (156) |
Net income attributable to controlling interest | $ 2,292 | $ 1,916 | $ 29,201 | $ 25,958 |
Net income attributable to controlling interest | ||||
Basic (in dollars per share) | $ 0.10 | $ 0.08 | $ 1.27 | $ 1.14 |
Diluted (in dollars per share) | $ 0.10 | $ 0.08 | $ 1.26 | $ 1.12 |
Weighted average number of common shares outstanding: | ||||
Basic (in shares) | 22,943 | 22,830 | 22,930 | 22,813 |
Diluted (in shares) | 23,121 | 23,109 | 23,118 | 23,103 |
Dividends declared per common share (in dollars per share) | $ 0.10 | $ 0.10 | $ 0.30 | $ 0.30 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) [Abstract] | ||||
Net income | $ 1,958 | $ 1,766 | $ 28,532 | $ 25,802 |
Other comprehensive income: | ||||
Change in unrecognized pension and post-retirement benefit costs | 0 | 0 | 28 | 0 |
Income tax (provision) benefit on change in unrecognized pension and post-retirement benefit costs | (30) | 13 | (21) | (3) |
Foreign currency translation adjustments | (7,003) | (5,602) | (10,721) | (3,475) |
Income tax benefit on foreign currency translation adjustments | 868 | 484 | 808 | 547 |
Other comprehensive loss | (6,165) | (5,105) | (9,906) | (2,931) |
Comprehensive income (loss) | (4,207) | (3,339) | 18,626 | 22,871 |
Comprehensive loss attributable to non-controlling interest | (607) | (472) | (1,285) | (281) |
Comprehensive income (loss) attributable to controlling interest | $ (3,600) | $ (2,867) | $ 19,911 | $ 23,152 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 28,532 | $ 25,802 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 18,042 | 18,149 |
Provision (benefit) for doubtful accounts | (161) | 418 |
Provision for warranties | 11,723 | 12,436 |
Deferred compensation provision | (206) | (243) |
Stock-based compensation | 951 | 972 |
Tax benefit from stock incentive plans | (348) | (585) |
Deferred income tax benefit | (3,959) | (4,124) |
Gain on disposition of fixed assets | (234) | (164) |
Distributions to SERP participants | (2,649) | 0 |
Change in operating assets and liabilities: | ||
(Purchase) sale of trading securities, net | (698) | (434) |
Trade and other receivables | 2,504 | (8,432) |
Inventories | 3,628 | (19,456) |
Prepaid expenses | 4,080 | 667 |
Other assets | (247) | (3,294) |
Accounts payable | (14,581) | 1,855 |
Accrued product warranty | (11,499) | (12,051) |
Customer deposits | (12,523) | (1,178) |
Prepaid and income taxes payable, net | (1,792) | 250 |
Other | 1,581 | 2,257 |
Net cash provided by operating activities | 22,144 | 12,845 |
Cash flows from investing activities: | ||
Expenditures for property and equipment | (15,483) | (18,445) |
Business acquisition, net of cash acquired | 178 | (34,965) |
Sale of investments | 113 | 16,249 |
Proceeds from life insurance cash surrender value | 416 | 0 |
Proceeds from sale of property and equipment | 378 | 551 |
Net cash used by investing activities | (14,398) | (36,610) |
Cash flows from financing activities: | ||
Payment of dividends | (6,893) | (6,874) |
Borrowings under bank loans | 3,661 | 7,782 |
Repayments of bank loans | (3,507) | 0 |
Tax benefit from stock issued under incentive plans | 348 | 585 |
Sale (purchase) of Company shares held by SERP, net | 2,053 | (99) |
Withholding tax paid upon vesting of restricted stock units | (600) | (953) |
Proceeds from exercise of stock options | 72 | 282 |
Sale (purchase) of subsidiaries shares to/from minority shareholders, net | (653) | 1,585 |
Net cash provided (used) by financing activities | (5,519) | 2,308 |
Effect of exchange rates on cash | (1,265) | (287) |
Net increase (decrease) in cash and cash equivalents | 962 | (21,744) |
Cash and cash equivalents, beginning of period | 13,023 | 35,564 |
Cash and cash equivalents, end of period | $ 13,985 | $ 13,820 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Equity (unaudited) - 9 months ended Sep. 30, 2015 - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Company Shares Held by SERP [Member] | Retained Earnings [Member] | Non-controlling Interest [Member] | Total |
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 | ||||||
Net income | $ 0 | 0 | 0 | 0 | 29,201 | (669) | 28,532 |
Other comprehensive loss | 0 | 0 | (9,906) | 0 | 0 | (616) | (10,522) |
Dividends declared | 0 | 6 | 0 | 0 | (6,899) | 0 | (6,893) |
Stock-based compensation | $ 1 | 950 | 0 | 0 | 0 | 0 | 951 |
Stock-based compensation (in shares) | 5 | ||||||
Change in ownership of subsidiary | $ 0 | 0 | 0 | 0 | 0 | (837) | (837) |
Stock issued under incentive plans | $ 10 | 410 | 0 | 0 | 0 | 0 | 420 |
Stock issued under incentive plans (in shares) | 52 | ||||||
Withholding tax paid upon vesting of RSUs | $ 0 | (600) | 0 | 0 | 0 | 0 | (600) |
SERP transactions, net | 0 | 930 | 0 | 1,123 | 0 | 0 | 2,053 |
Other | 0 | 0 | 0 | 0 | 0 | (62) | (62) |
Balance at Sep. 30, 2015 | $ 4,597 | $ 137,583 | $ (22,821) | $ (1,806) | $ 492,839 | $ 2,002 | $ 612,394 |
Balance (in shares) at Sep. 30, 2015 | 22,987 |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 1. Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X promulgated under the Securities Act of 1933. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine-month periods ended September 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. It is suggested that these unaudited condensed consolidated financial statements be read in conjunction with the financial statements and the notes thereto included in the Astec Industries, Inc. Annual Report on Form 10-K for the year ended December 31, 2014. The unaudited condensed consolidated balance sheet as of December 31, 2014 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. Dollar and share amounts shown are in thousands, except per share amounts, unless otherwise specified. Recent Accounting Pronouncements In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 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’s adoption of this standard effective January 1, 2015 did not have a significant impact on the Company’s financial position or results of operations. In May 2014, the FASB issued ASU 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, 2017. The Company plans to adopt the new standard effective January 1, 2018. 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. In July 2015, the FASB issued ASU No. 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory,” which changes the measurement basis for inventory from the lower of cost or market to lower of cost and net realizable value and also eliminates the requirement for companies to consider replacement cost or net realizable value less an approximate normal profit margin when determining the recorded value of inventory. The standard is effective for public companies in fiscal years beginning after December 15, 2016, and the Company expects to adopt the 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. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings per Share [Abstract] | |
Earnings per Share | Note 2. Earnings per Share Basic earnings per share are determined by dividing earnings by the weighted average number of common shares outstanding during each period. Diluted earnings per share include the potential dilutive effect of options, restricted stock units and shares held in the Company’s Supplemental Executive Retirement Plan. The following table sets forth the computation of net income attributable to controlling interest and the number of basic and diluted shares used in the computation of earnings per share: Three Months Ended Nine Months Ended 2015 2014 2015 2014 Numerator: Net income attributable to controlling interest $ 2,292 $ 1,916 $ 29,201 $ 25,958 Denominator: Denominator for basic earnings per share 22,943 22,830 22,930 22,813 Effect of dilutive securities: Employee stock options and restricted stock units 114 167 124 180 Supplemental Executive Retirement Plan 64 112 64 110 Denominator for diluted earnings per share 23,121 23,109 23,118 23,103 Antidilutive options are not included in the diluted earnings per share computation. The number of antidilutive options in the three and nine-month periods ended September 30, 2015 and 2014 were not material. |
Receivables
Receivables | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Receivables | Note 3. Receivables Receivables are net of allowances for doubtful accounts of $1,788 and $2,248 as of September 30, 2015 and December 31, 2014, respectively. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2015 | |
Inventories [Abstract] | |
Inventories | Note 4. Inventories Inventories consist of the following: September 30, December 31, Raw materials and parts $ 145,429 $ 149,171 Work-in-process 95,946 105,163 Finished goods 113,771 102,235 Used equipment 29,385 31,266 Total $ 384,531 $ 387,835 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 the Company's competitors, the condition of the Company's 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 the Company sells. 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 any valuation write-downs 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 | 9 Months Ended |
Sep. 30, 2015 | |
Property and Equipment [Abstract] | |
Property and Equipment | Note 5. Property and Equipment Property and equipment is stated at cost, less accumulated depreciation of $213,648 and $222,001 as of September 30, 2015 and December 31, 2014, respectively. During the second quarter of 2015, the Company closed its Astec Underground facility in Loudon Tennessee and relocated (or disposed of) the majority of its non-real estate fixed assets to other Company facilities. The book value of the Loudon facility ($9,248) is classified as held for sale at September 30, 2015 and is included in other current assets in the accompanying condensed consolidated balance sheet as of September 30, 2015. The Company closed on the sale of the facility in October 2015 and collected the $9,599 net sales price. The costs of closing the facility totaling $1,500 were recorded in cost of sales ($999) and selling, general and administrative expenses ($501) in the accompanying condensed consolidated statement of income in the first six months of 2015. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note 6. 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 obligations of the Company associated with the financial assets held in the SERP also constitute a liability of the Company for financial reporting purposes and are included in other long-term liabilities in the accompanying balance sheets. The Company’s subsidiaries also occasionally enter into foreign currency exchange contracts to mitigate exposure to fluctuations in currency exchange rates. The carrying amount of cash and cash equivalents, trade receivables, other receivables, revolving debt and accounts payable approximates their 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. Financial assets and liabilities are categorized 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 Level 3 - Inputs reflect management’s best estimate of what market participants would use in pricing As indicated in the tables below (which excludes the Company’s pension assets), the Company has determined that all of its financial assets and liabilities as of September 30, 2015 and December 31, 2014 are level 1 and level 2 in the fair value hierarchy as defined above: September 30, 2015 Level 1 Level 2 Total Financial Assets: Trading equity securities: SERP money market fund $ 691 $ - $ 691 SERP mutual funds 2,726 2,726 Preferred stocks 743 743 Trading debt securities: Corporate bonds 2,212 2,819 5,031 Municipal bonds - 1,593 1,593 Floating rate notes - 307 307 Asset backed securities - 860 860 Other 75 1,622 1,697 Derivative financial instruments - 2,068 2,068 Total financial assets $ 6,447 $ 9,269 $ 15,716 Financial Liabilities: SERP liabilities $ - $ 5,560 $ 5,560 Derivative financial instruments - 25 25 Total financial liabilities $ - $ 5,585 $ 5,585 December 31, 2014 Level 1 Level 2 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 bills 622 - 622 Other - 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 The Company reevaluates the volume of trading activity for each of its investments at the end of each quarter and adjusts the level within the fair value hierarchy as needed. Six corporate bond investments with a combined September 30, 2015 market value of $1,141 changed from Level 1 in the hierarchy at December 31, 2014 to Level 2 at September 30, 2015 due to a reduction in trading activity. The trading equity investments noted above are valued at their fair value based on their quoted market prices, and the 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 with the assistance of a nationally recognized third party pricing service. Additionally, a significant portion of the SERP’s investments in trading equity securities are in money market and mutual funds. As these money market and mutual funds are held in a SERP, they are also included in the Company’s liability under its SERP. Trading debt securities are comprised 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 held as of September 30, 2015 and December 31, 2014 amounted to net losses of $144 and $17, respectively. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt [Abstract] | |
Debt | Note 7. Debt On April 12, 2012, the Company and certain of its subsidiaries entered into an amended and restated credit agreement 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. During the three and nine-month periods ended September 30, 2015, the highest amount of outstanding borrowings at any time under the facility was $5,542 and $7,871, respectively. The $1,251 outstanding borrowings under the facility, which are included in short-term debt and current maturities of long-term debt in the accompanying condensed balance sheet at September 30, 2015, were paid off in early October 2015. As of December 31, 2014, there were no outstanding borrowings under the line of credit facility. Letters of credit totaling $14,461, including $8,674 of letters of credit issued to banks in Brazil to secure the local debt of Astec do Brasil Fabricacao de Equipamentos Ltda. (“Astec Brazil”), were outstanding under the credit facility as of September 30, 2015, resulting in additional borrowing ability of $84,288 under the credit facility. The credit 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, resulting in a rate of 0.95% as of September 30, 2015. The unused facility fee is 0.175%. Interest only payments are due monthly. The amended and restated 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 September 30, 2015. The Company’s South African subsidiary, Osborn Engineered Products SA (Pty) Ltd (“Osborn”), has a credit facility of $6,874 with a South African bank to finance short-term working capital needs, as well as to cover performance letters of credit, advance payment and retention guarantees. As of September 30, 2015, Osborn had no borrowings outstanding under the facility but did have $1,118 in performance, advance payment and retention guarantees outstanding under the facility. The facility has been guaranteed by Astec Industries, Inc., but is otherwise unsecured. A 0.75% unused facility fee is charged if less than 50% of the facility is utilized. As of September 30, 2015, Osborn had available credit under the facility of $5,756. The interest rate is 0.25% less than the South Africa prime rate, resulting in a rate of 9.25% as of September 30, 2015. The Company’s Brazilian subsidiary, Astec Brazil, has outstanding working capital loans totaling $6,512 from three Brazilian banks with interest rates ranging from 10.3% to 20.3%. The loans’ maturity dates range from December 2016 to April 2024 and the debts are secured by Astec Brazil’s manufacturing facility and also by letters of credit totaling $8,674 issued by Astec Industries, Inc. Additionally, Astec Brazil has various 5-year equipment financing loans outstanding with two Brazilian banks in the aggregate of $1,450 as of September 30, 2015 that have interest rates ranging from 3.5% to 16.3%. These equipment loans have maturity dates ranging from September 2018 to April 2020. Astec Brazil’s loans are included in the accompanying balance sheets as short-term debt and current maturities of long-term debt ($3,568) and long-term debt ($4,394). |
Product Warranty Reserves
Product Warranty Reserves | 9 Months Ended |
Sep. 30, 2015 | |
Product Warranty Reserves [Abstract] | |
Product Warranty Reserves | Note 8. Product Warranty Reserves The Company warrants its products against manufacturing defects and performance to specified standards. The warranty period and performance standards vary by market and uses of its products, but generally range from three months to one year or up to a specified number of hours of operation. The Company estimates the costs that may be incurred under its warranties and records a liability at the time product sales are recorded. The product warranty liability is primarily based on historical claim rates, nature of claims and the associated cost. Changes in the Company’s product warranty liability for the three and nine-month periods ended September 30, 2015 and 2014 are as follows: Three Months Ended Nine Months Ended 2015 2014 2015 2014 Reserve balance, beginning of the period $ 10,761 $ 14,102 $ 10,032 $ 12,716 Warranty liabilities accrued 3,261 4,304 11,723 12,436 Warranty liabilities settled (3,828 ) (4,804 ) (11,499 ) (12,051 ) Other (130 ) (198 ) (192 ) 303 Reserve balance, end of the period $ 10,064 $ 13,404 $ 10,064 $ 13,404 |
Accrued Loss Reserves
Accrued Loss Reserves | 9 Months Ended |
Sep. 30, 2015 | |
Accrued Loss Reserves [Abstract] | |
Accrued Loss Reserves | Note 9. Accrued Loss Reserves The Company records reserves for losses related to known workers’ compensation and general liability claims that have been incurred but not yet paid or are estimated to have been incurred but not yet reported to the Company. The undiscounted reserves are actuarially determined based on the Company’s evaluation of the type and severity of individual claims and historical information, primarily its own claims experience, along with assumptions about future events. Changes in assumptions, as well as changes in actual experience, could cause these estimates to change in the future. Total accrued loss reserves were $8,382 as of September 30, 2015 and $7,562 as of December 31, 2014, of which $5,345 and $4,512 were included in other long-term liabilities as of September 30, 2015 and December 31, 2014, respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | Note 10. Income Taxes The Company’s effective income tax rate was 52.5% and 64.0% for the three-month periods ended September 30, 2015 and 2014, respectively. The Company’s effective income tax rate was 38.8% and 37.9% for the nine-month periods ended September 30, 2015 and 2014, respectively. The Company’s effective tax rate for the nine months ended September 30, 2015 includes the effect of state income taxes and other discrete items but did not include benefits for the research and development credit given that legislation extending the research and development credit to 2015 has not been enacted by Congress. The Company’s effective tax rate for the nine months ended September 30, 2014 also did not include a benefit for the research and development tax credit given that Congress had not enacted legislation extending the credit to 2014 as of September 30, 2014. The Company's recorded liability for uncertain tax positions as of September 30, 2015 has decreased by approximately $711 as compared to December 31, 2014 as the result of a tax audit settlement related to tax year 2010. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2015 | |
Segment Information [Abstract] | |
Segment Information | Note 11. Segment Information The Company 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 Aggregate and Mining Group Energy Group Corporate 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: Three Months Ended September 30, 2015 Infrastructure Aggregate Energy Corporate Total Net sales to external $ 85,625 $ 80,549 $ 45,176 $ - $ 211,350 Intersegment sales 5,839 4,604 1,122 - 11,565 Gross profit 16,104 19,226 9,794 14 45,138 Gross profit percent 18.8 % 23.9 % 21.7 % - 21.4 % Segment profit (loss) $ 2,116 $ 3,790 $ 1,941 $ (6,853 ) $ 994 Nine Months Ended September 30, 2015 Infrastructure Aggregate Energy Group Corporate Total Net sales to external $ 336,768 $ 285,790 $ 145,583 $ - $ 768,141 Intersegment sales 17,633 19,223 13,965 - 50,821 Gross profit 74,292 70,182 28,912 31 173,417 Gross profit percent 22.1 % 24.6 % 19.9 % - 22.6 % Segment profit (loss) $ 29,472 $ 25,441 $ 2,805 $ (29,154 ) $ 28,564 Three Months Ended September 30, 2014 Infrastructure Aggregate Energy Corporate Total Net sales to external $ 78,698 $ 88,177 $ 53,282 $ - $ 220,157 Intersegment sales 8,685 5,948 4,819 - 19,452 Gross profit 11,367 21,604 10,277 13 43,261 Gross profit percent 14.4 % 24.5 % 19.3 % - 19.7 % Segment profit (loss) $ 520 $ 6,806 $ 2,789 $ (7,137 ) $ 2,978 Nine Months Ended September 30, 2014 Infrastructure Aggregate Energy Group Corporate Total Net sales to external $ 296,074 $ 287,976 $ 152,036 $ - $ 736,086 Intersegment sales 20,619 23,043 12,273 - 55,935 Gross profit 59,135 70,722 32,309 30 162,196 Gross profit percent 20.0 % 24.6 % 21.3 % - 22.0 % Segment profit (loss) $ 21,124 $ 27,065 $ 7,659 $ (27,578 ) $ 28,270 A reconciliation of total segment profits to the Company’s consolidated totals is as follows: Three Months Ended Nine Months Ended 2015 2014 2015 2014 Total segment profits $ 994 $ 2,978 $ 28,564 $ 28,270 Recapture (elimination) of intersegment profit 964 (1,212 ) (32 ) (2,468 ) Net income 1,958 1,766 28,532 25,802 Net loss attributable to non-controlling (334 ) (150 ) (669 ) (156 ) Net income attributable to controlling interest $ 2,292 $ 1,916 $ 29,201 $ 25,958 |
Contingent Matters
Contingent Matters | 9 Months Ended |
Sep. 30, 2015 | |
Contingent Matters [Abstract] | |
Contingent Matters | Note 12. Contingent Matters Certain customers have financed purchases of Company products through arrangements in which the Company is contingently liable for customer debt of $2,108 as of September 30, 2015. The maximum potential amount of future payments for which the Company would be liable was equal to $2,108 as of September 30, 2015. 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 $168 related to these guarantees as of September 30, 2015. In addition, the Company is contingently liable under letters of credit issued by Wells Fargo totaling $14,461 as of September 30, 2015, including $8,674 of letters of credit that guarantee certain Astec Brazil bank debt. The outstanding letters of credit expire at various dates through November 2017. As of September 30, 2015, Osborn is contingently liable for a total of $1,118 in performance letters of credit, advance payments and retention guarantees. As of September 30, 2015, Astec Australia is contingently liable for a total of $18 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 $15,597 as of September 30, 2015. 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. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2015 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | Note 13. 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 the annual financial performance of the Company and its subsidiaries. Each five-year plan allows up to 700 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. A total of 66 and 75 RSUs vested during the nine-month periods ended September 30, 2015 and 2014, respectively. The Company withheld 14 and 23 shares due to statutory payroll tax withholding requirements upon the vesting of the RSUs in the first nine months of 2015 and 2014, respectively, and used Company funds to remit the related required minimum withholding taxes to the various tax authorities. The vesting date fair value of the RSUs that vested during the first nine months of 2015 and 2014 was $2,785 and $3,045, respectively. Compensation expense of $38 and $222 was recorded in the three-month periods ended September 30, 2015 and 2014, respectively, to reflect the fair value of RSUs granted (or anticipated to be granted for 2015 and cumulative five-year performance) less estimated forfeitures, amortized over the portion of the vesting period occurring during the periods. Compensation expense of $778 and $791 was recorded in the nine-month periods ended September 30, 2015 and 2014, respectively, to reflect the fair value of RSUs granted (or anticipated to be granted for 2015 and cumulative five-year performance) less estimated forfeitures, amortized over the portion of the vesting period occurring during the periods. |
Other Income, Net of Expenses
Other Income, Net of Expenses | 9 Months Ended |
Sep. 30, 2015 | |
Other Income, Net of Expenses [Abstract] | |
Other Income, net of expenses | Note 14. Other Income, Net of Expenses Other income, net of expenses for the three and nine-month periods ended September 30, 2015 and 2014 is presented below: Three Months Ended Nine Months Ended 2015 2014 2015 2014 Interest income $ 128 $ 447 $ 392 $ 1,167 Income from life insurance policies - - 1,204 - Gain (loss) on investments (72 ) (86 ) (204 ) 120 License fee income 250 323 616 780 Other 204 26 535 187 Total $ 510 $ 710 $ 2,543 $ 2,254 |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Financial Instruments [Abstract] | |
Derivative Financial Instruments | Note 15. Derivative Financial Instruments The Company is exposed to certain risks related 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 balance sheet 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 financial instruments for trading purposes. The average U.S. dollar equivalent notional amount of outstanding foreign currency exchange contracts was $11,809 during the nine-month period ended September 30, 2015. The Company reported $1,658 of derivative assets in other current assets, $410 of derivative assets in other long-term assets and $25 of derivative liabilities in other long-term liabilities at September 30, 2015. 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 recognized, as a component of cost of sales, net gains of $419 and $713 on the changes in fair value of derivative financial instruments in the three-month periods ended September 30, 2015 and 2014, respectively. In the nine-month periods ended September 30, 2015 and 2014, the Company recognized, as a component of cost of sales, net gains of $1,227 and $157, respectively. There were no derivatives that were designated as hedges at September 30, 2015. |
Business Acquisition
Business Acquisition | 9 Months Ended |
Sep. 30, 2015 | |
Business Acquisition [Abstract] | |
Business Acquisition | Note 16. Business Acquisition 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 was subject to certain post-closing adjustments. The post-closing adjustments were finalized during the first quarter of 2015 resulting in a decrease in the purchase price of $178. The adjusted purchase price allocation recorded includes the recognition of $18,078 of goodwill and $14,445 of other intangible assets, based on the foreign exchange rate as of the acquisition date, 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). 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 three or nine-month periods ended September 30, 2015 or the nine-month period ending 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. |
Significant Accounting Polici23
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X promulgated under the Securities Act of 1933. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine-month periods ended September 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. It is suggested that these unaudited condensed consolidated financial statements be read in conjunction with the financial statements and the notes thereto included in the Astec Industries, Inc. Annual Report on Form 10-K for the year ended December 31, 2014. The unaudited condensed consolidated balance sheet as of December 31, 2014 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. Dollar and share amounts shown are in thousands, except per share amounts, unless otherwise specified. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 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’s adoption of this standard effective January 1, 2015 did not have a significant impact on the Company’s financial position or results of operations. In May 2014, the FASB issued ASU 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, 2017. The Company plans to adopt the new standard effective January 1, 2018. 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. In July 2015, the FASB issued ASU No. 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory,” which changes the measurement basis for inventory from the lower of cost or market to lower of cost and net realizable value and also eliminates the requirement for companies to consider replacement cost or net realizable value less an approximate normal profit margin when determining the recorded value of inventory. The standard is effective for public companies in fiscal years beginning after December 15, 2016, and the Company expects to adopt the 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. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings per Share [Abstract] | |
Computation of earnings per share | The following table sets forth the computation of net income attributable to controlling interest and the number of basic and diluted shares used in the computation of earnings per share: Three Months Ended Nine Months Ended 2015 2014 2015 2014 Numerator: Net income attributable to controlling interest $ 2,292 $ 1,916 $ 29,201 $ 25,958 Denominator: Denominator for basic earnings per share 22,943 22,830 22,930 22,813 Effect of dilutive securities: Employee stock options and restricted stock units 114 167 124 180 Supplemental Executive Retirement Plan 64 112 64 110 Denominator for diluted earnings per share 23,121 23,109 23,118 23,103 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Inventories [Abstract] | |
Inventories | Inventories consist of the following: September 30, December 31, Raw materials and parts $ 145,429 $ 149,171 Work-in-process 95,946 105,163 Finished goods 113,771 102,235 Used equipment 29,385 31,266 Total $ 384,531 $ 387,835 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Measurements [Abstract] | |
Schedule of financial assets and liabilities, at fair value | As indicated in the tables below (which excludes the Company’s pension assets), the Company has determined that all of its financial assets and liabilities as of September 30, 2015 and December 31, 2014 are level 1 and level 2 in the fair value hierarchy as defined above: September 30, 2015 Level 1 Level 2 Total Financial Assets: Trading equity securities: SERP money market fund $ 691 $ - $ 691 SERP mutual funds 2,726 2,726 Preferred stocks 743 743 Trading debt securities: Corporate bonds 2,212 2,819 5,031 Municipal bonds - 1,593 1,593 Floating rate notes - 307 307 Asset backed securities - 860 860 Other 75 1,622 1,697 Derivative financial instruments - 2,068 2,068 Total financial assets $ 6,447 $ 9,269 $ 15,716 Financial Liabilities: SERP liabilities $ - $ 5,560 $ 5,560 Derivative financial instruments - 25 25 Total financial liabilities $ - $ 5,585 $ 5,585 December 31, 2014 Level 1 Level 2 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 bills 622 - 622 Other - 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 |
Product Warranty Reserves (Tabl
Product Warranty Reserves (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Product Warranty Reserves [Abstract] | |
Product warranty reserves | Changes in the Company’s product warranty liability for the three and nine-month periods ended September 30, 2015 and 2014 are as follows: Three Months Ended Nine Months Ended 2015 2014 2015 2014 Reserve balance, beginning of the period $ 10,761 $ 14,102 $ 10,032 $ 12,716 Warranty liabilities accrued 3,261 4,304 11,723 12,436 Warranty liabilities settled (3,828 ) (4,804 ) (11,499 ) (12,051 ) Other (130 ) (198 ) (192 ) 303 Reserve balance, end of the period $ 10,064 $ 13,404 $ 10,064 $ 13,404 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Information [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: Three Months Ended September 30, 2015 Infrastructure Aggregate Energy Corporate Total Net sales to external $ 85,625 $ 80,549 $ 45,176 $ - $ 211,350 Intersegment sales 5,839 4,604 1,122 - 11,565 Gross profit 16,104 19,226 9,794 14 45,138 Gross profit percent 18.8 % 23.9 % 21.7 % - 21.4 % Segment profit (loss) $ 2,116 $ 3,790 $ 1,941 $ (6,853 ) $ 994 Nine Months Ended September 30, 2015 Infrastructure Aggregate Energy Group Corporate Total Net sales to external $ 336,768 $ 285,790 $ 145,583 $ - $ 768,141 Intersegment sales 17,633 19,223 13,965 - 50,821 Gross profit 74,292 70,182 28,912 31 173,417 Gross profit percent 22.1 % 24.6 % 19.9 % - 22.6 % Segment profit (loss) $ 29,472 $ 25,441 $ 2,805 $ (29,154 ) $ 28,564 Three Months Ended September 30, 2014 Infrastructure Aggregate Energy Corporate Total Net sales to external $ 78,698 $ 88,177 $ 53,282 $ - $ 220,157 Intersegment sales 8,685 5,948 4,819 - 19,452 Gross profit 11,367 21,604 10,277 13 43,261 Gross profit percent 14.4 % 24.5 % 19.3 % - 19.7 % Segment profit (loss) $ 520 $ 6,806 $ 2,789 $ (7,137 ) $ 2,978 Nine Months Ended September 30, 2014 Infrastructure Aggregate Energy Group Corporate Total Net sales to external $ 296,074 $ 287,976 $ 152,036 $ - $ 736,086 Intersegment sales 20,619 23,043 12,273 - 55,935 Gross profit 59,135 70,722 32,309 30 162,196 Gross profit percent 20.0 % 24.6 % 21.3 % - 22.0 % Segment profit (loss) $ 21,124 $ 27,065 $ 7,659 $ (27,578 ) $ 28,270 |
Schedule of segment profits to the Company's consolidated totals | A reconciliation of total segment profits to the Company’s consolidated totals is as follows: Three Months Ended Nine Months Ended 2015 2014 2015 2014 Total segment profits $ 994 $ 2,978 $ 28,564 $ 28,270 Recapture (elimination) of intersegment profit 964 (1,212 ) (32 ) (2,468 ) Net income 1,958 1,766 28,532 25,802 Net loss attributable to non-controlling (334 ) (150 ) (669 ) (156 ) Net income attributable to controlling interest $ 2,292 $ 1,916 $ 29,201 $ 25,958 |
Other Income, Net of Expenses (
Other Income, Net of Expenses (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Other Income, Net of Expenses [Abstract] | |
Schedule of other income, net of expenses | Other income, net of expenses for the three and nine-month periods ended September 30, 2015 and 2014 is presented below: Three Months Ended Nine Months Ended 2015 2014 2015 2014 Interest income $ 128 $ 447 $ 392 $ 1,167 Income from life insurance policies - - 1,204 - Gain (loss) on investments (72 ) (86 ) (204 ) 120 License fee income 250 323 616 780 Other 204 26 535 187 Total $ 510 $ 710 $ 2,543 $ 2,254 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Numerator [Abstract] | ||||
Net income attributable to controlling interest | $ 2,292 | $ 1,916 | $ 29,201 | $ 25,958 |
Denominator [Abstract] | ||||
Denominator for basic earnings per share (in shares) | 22,943 | 22,830 | 22,930 | 22,813 |
Effect of dilutive securities [Abstract] | ||||
Employee stock options and restricted stock units (in shares) | 114 | 167 | 124 | 180 |
Supplemental Executive Retirement Plan (in shares) | 64 | 112 | 64 | 110 |
Denominator for diluted earnings per share (in shares) | 23,121 | 23,109 | 23,118 | 23,103 |
Receivables (Details)
Receivables (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Receivables [Abstract] | ||
Allowances for doubtful accounts | $ 1,788 | $ 2,248 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Inventories [Abstract] | ||
Raw materials and parts | $ 145,429 | $ 149,171 |
Work-in-process | 95,946 | 105,163 |
Finished goods | 113,771 | 102,235 |
Used equipment | 29,385 | 31,266 |
Total | $ 384,531 | $ 387,835 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2015 | Oct. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | |
Property and Equipment [Abstract] | ||||
Accumulated depreciation | $ 213,648 | $ 222,001 | ||
Loudon Facility [Member] | ||||
Long Lived Assets Held-for-sale [Line Items] | ||||
Carrying value of the assets reclassified as held for sale | $ 9,248 | |||
Costs related to facility closing | $ 1,500 | |||
Loudon Facility [Member] | Cost of Sales [Member] | ||||
Long Lived Assets Held-for-sale [Line Items] | ||||
Costs related to facility closing | 999 | |||
Loudon Facility [Member] | Selling, General and Administrative Expenses [Member] | ||||
Long Lived Assets Held-for-sale [Line Items] | ||||
Costs related to facility closing | $ 501 | |||
Loudon Facility [Member] | Subsequent Event [Member] | ||||
Long Lived Assets Held-for-sale [Line Items] | ||||
Net sales price of facility | $ 9,599 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 30, 2015USD ($)Investment | Dec. 31, 2014USD ($) | |
Financial Liabilities [Abstract] | ||
Corporate bond investments | Investment | 6 | |
Investments included in Level 1 were transferred to Level 2 | $ 1,141 | |
Net unrealized losses incurred | (144) | $ (17) |
Measured at Fair Value on a Recurring Basis [Member] | ||
Financial Assets [Abstract] | ||
Derivative financial instruments | 2,068 | 547 |
Total financial assets | 15,716 | 13,856 |
Financial Liabilities [Abstract] | ||
SERP liabilities | 5,560 | 8,128 |
Derivative financial instruments | 25 | |
Total financial liabilities | 5,585 | 8,128 |
Measured at Fair Value on a Recurring Basis [Member] | SERP Money Market Fund [Member] | ||
Financial Assets [Abstract] | ||
Investments | 691 | 532 |
Measured at Fair Value on a Recurring Basis [Member] | SERP Mutual Funds [Member] | ||
Financial Assets [Abstract] | ||
Investments | 2,726 | 3,195 |
Measured at Fair Value on a Recurring Basis [Member] | Preferred Stocks [Member] | ||
Financial Assets [Abstract] | ||
Investments | 743 | 973 |
Measured at Fair Value on a Recurring Basis [Member] | Corporate Bonds [Member] | ||
Financial Assets [Abstract] | ||
Investments | 5,031 | 4,009 |
Measured at Fair Value on a Recurring Basis [Member] | Municipal Bonds [Member] | ||
Financial Assets [Abstract] | ||
Investments | 1,593 | 2,060 |
Measured at Fair Value on a Recurring Basis [Member] | Floating Rate Notes [Member] | ||
Financial Assets [Abstract] | ||
Investments | 307 | 422 |
Measured at Fair Value on a Recurring Basis [Member] | US Treasury Bills [Member] | ||
Financial Assets [Abstract] | ||
Investments | 622 | |
Measured at Fair Value on a Recurring Basis [Member] | Asset Backed Securities [Member] | ||
Financial Assets [Abstract] | ||
Investments | 860 | |
Measured at Fair Value on a Recurring Basis [Member] | Other [Member] | ||
Financial Assets [Abstract] | ||
Investments | 1,697 | 1,496 |
Measured at Fair Value on a Recurring Basis [Member] | Level 1 [Member] | ||
Financial Assets [Abstract] | ||
Derivative financial instruments | 0 | 0 |
Total financial assets | 6,447 | 8,247 |
Financial Liabilities [Abstract] | ||
SERP liabilities | 0 | 0 |
Derivative financial instruments | 0 | |
Total financial liabilities | 0 | 0 |
Measured at Fair Value on a Recurring Basis [Member] | Level 1 [Member] | SERP Money Market Fund [Member] | ||
Financial Assets [Abstract] | ||
Investments | 691 | 532 |
Measured at Fair Value on a Recurring Basis [Member] | Level 1 [Member] | SERP Mutual Funds [Member] | ||
Financial Assets [Abstract] | ||
Investments | 2,726 | 3,195 |
Measured at Fair Value on a Recurring Basis [Member] | Level 1 [Member] | Preferred Stocks [Member] | ||
Financial Assets [Abstract] | ||
Investments | 743 | 973 |
Measured at Fair Value on a Recurring Basis [Member] | Level 1 [Member] | Corporate Bonds [Member] | ||
Financial Assets [Abstract] | ||
Investments | 2,212 | 2,825 |
Measured at Fair Value on a Recurring Basis [Member] | Level 1 [Member] | Municipal Bonds [Member] | ||
Financial Assets [Abstract] | ||
Investments | 0 | 0 |
Measured at Fair Value on a Recurring Basis [Member] | Level 1 [Member] | Floating Rate Notes [Member] | ||
Financial Assets [Abstract] | ||
Investments | 0 | 100 |
Measured at Fair Value on a Recurring Basis [Member] | Level 1 [Member] | US Treasury Bills [Member] | ||
Financial Assets [Abstract] | ||
Investments | 622 | |
Measured at Fair Value on a Recurring Basis [Member] | Level 1 [Member] | Asset Backed Securities [Member] | ||
Financial Assets [Abstract] | ||
Investments | 0 | |
Measured at Fair Value on a Recurring Basis [Member] | Level 1 [Member] | Other [Member] | ||
Financial Assets [Abstract] | ||
Investments | 75 | 0 |
Measured at Fair Value on a Recurring Basis [Member] | Level 2 [Member] | ||
Financial Assets [Abstract] | ||
Derivative financial instruments | 2,068 | 547 |
Total financial assets | 9,269 | 5,609 |
Financial Liabilities [Abstract] | ||
SERP liabilities | 5,560 | 8,128 |
Derivative financial instruments | 25 | |
Total financial liabilities | 5,585 | 8,128 |
Measured at Fair Value on a Recurring Basis [Member] | Level 2 [Member] | SERP Money Market Fund [Member] | ||
Financial Assets [Abstract] | ||
Investments | 0 | 0 |
Measured at Fair Value on a Recurring Basis [Member] | Level 2 [Member] | SERP Mutual Funds [Member] | ||
Financial Assets [Abstract] | ||
Investments | 0 | 0 |
Measured at Fair Value on a Recurring Basis [Member] | Level 2 [Member] | Preferred Stocks [Member] | ||
Financial Assets [Abstract] | ||
Investments | 0 | 0 |
Measured at Fair Value on a Recurring Basis [Member] | Level 2 [Member] | Corporate Bonds [Member] | ||
Financial Assets [Abstract] | ||
Investments | 2,819 | 1,184 |
Measured at Fair Value on a Recurring Basis [Member] | Level 2 [Member] | Municipal Bonds [Member] | ||
Financial Assets [Abstract] | ||
Investments | 1,593 | 2,060 |
Measured at Fair Value on a Recurring Basis [Member] | Level 2 [Member] | Floating Rate Notes [Member] | ||
Financial Assets [Abstract] | ||
Investments | 307 | 322 |
Measured at Fair Value on a Recurring Basis [Member] | Level 2 [Member] | US Treasury Bills [Member] | ||
Financial Assets [Abstract] | ||
Investments | 0 | |
Measured at Fair Value on a Recurring Basis [Member] | Level 2 [Member] | Asset Backed Securities [Member] | ||
Financial Assets [Abstract] | ||
Investments | 860 | |
Measured at Fair Value on a Recurring Basis [Member] | Level 2 [Member] | Other [Member] | ||
Financial Assets [Abstract] | ||
Investments | $ 1,622 | $ 1,496 |
Debt (Details)
Debt (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2015USD ($) | Sep. 30, 2015USD ($)Banks | Dec. 31, 2014USD ($) | |
Osborn [Member] | |||
Debt [Line Items] | |||
Amount of credit facility | $ 6,874 | $ 6,874 | |
Borrowings outstanding | $ 0 | $ 0 | |
Unused facility fee as a percentage of line of credit | 0.75% | 0.75% | |
Under utilized facility resulting in unused facility fee | 50.00% | 50.00% | |
Performance guarantees | $ 1,118 | $ 1,118 | |
Available credit under the facility | $ 5,756 | $ 5,756 | |
Interest rate at period end | 9.25% | 9.25% | |
Astec Brazil Working Capital Loans [Member] | |||
Debt [Line Items] | |||
Borrowings outstanding | $ 6,512 | $ 6,512 | |
Number of banks with outstanding working capital loans | Banks | 3 | ||
Astec Brazil Working Capital Loans [Member] | Minimum [Member] | |||
Debt [Line Items] | |||
Maturity date | Dec. 31, 2016 | ||
Interest rate at period end | 10.30% | 10.30% | |
Astec Brazil Working Capital Loans [Member] | Maximum [Member] | |||
Debt [Line Items] | |||
Maturity date | Apr. 30, 2024 | ||
Interest rate at period end | 20.30% | 20.30% | |
Astec Brazil Equipment Financing [Member] | |||
Debt [Line Items] | |||
Term loan | 5 years | ||
Number of banks with outstanding working capital loans | Banks | 2 | ||
Minimum interest rate | 3.50% | ||
Maximum interest rate | 16.30% | ||
Astec Brazil Working Capital Loans and Equipment Financing [Member] | |||
Debt [Line Items] | |||
Current maturities of long-term debt | $ 3,568 | $ 3,568 | |
Long-term debt | $ 4,394 | $ 4,394 | |
South American Prime Rate [Member] | Osborn [Member] | |||
Debt [Line Items] | |||
Basis spread on variable rate | (0.25%) | (0.25%) | |
Wells Fargo [Member] | |||
Debt [Line Items] | |||
Amount of credit facility | $ 100,000 | $ 100,000 | |
Sub-limit for letters of credit | 25,000 | 25,000 | |
Highest amount of outstanding borrowings | 5,542 | 7,871 | |
Borrowings outstanding | 1,251 | 1,251 | $ 0 |
Contingent liabilities for letters of credit issued on behalf of foreign subsidiaries | 14,461 | 14,461 | |
Line of credit, additional borrowing capacity | $ 84,288 | $ 84,288 | |
Term loan | 5 years | ||
Maturity date | Apr. 30, 2017 | ||
Interest rate description | daily one month LIBOR rate plus a 0.75% margin | ||
Interest rate at period end | 0.95% | 0.95% | |
Wells Fargo [Member] | Astec Brazil Working Capital Loans [Member] | |||
Debt [Line Items] | |||
Contingent liabilities for letters of credit issued on behalf of foreign subsidiaries | $ 8,674 | $ 8,674 | |
Wells Fargo [Member] | LIBOR [Member] | |||
Debt [Line Items] | |||
Additional rate over base, percentage | 0.75% | ||
Unused facility fee as a percentage of line of credit | 0.175% | 0.175% | |
Equipment Financing Loans [Member] | Astec Brazil [Member] | |||
Debt [Line Items] | |||
Borrowings outstanding | $ 1,450 | $ 1,450 | |
Equipment Financing Loans [Member] | Astec Brazil [Member] | Minimum [Member] | |||
Debt [Line Items] | |||
Maturity date | Sep. 30, 2018 | ||
Equipment Financing Loans [Member] | Astec Brazil [Member] | Maximum [Member] | |||
Debt [Line Items] | |||
Maturity date | Apr. 30, 2020 |
Product Warranty Reserves (Deta
Product Warranty Reserves (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Product Warranty Reserves [Abstract] | ||||
Product warranty reserve term, minimum | 3 months | |||
Standard product warranty term, maximum | 1 year | |||
Product warranty reserves [Roll Forward] | ||||
Reserve balance, beginning of the period | $ 10,761 | $ 14,102 | $ 10,032 | $ 12,716 |
Warranty liabilities accrued | 3,261 | 4,304 | 11,723 | 12,436 |
Warranty liabilities settled | (3,828) | (4,804) | (11,499) | (12,051) |
Other | (130) | (198) | (192) | 303 |
Reserve balance, end of the period | $ 10,064 | $ 13,404 | $ 10,064 | $ 13,404 |
Accrued Loss Reserves (Details)
Accrued Loss Reserves (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Accrued Loss Reserves [Abstract] | ||
Total accrued loss reserves | $ 8,382 | $ 7,562 |
Accrued loss reserves included in other long-term liabilities | $ 5,345 | $ 4,512 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Taxes [Abstract] | ||||
Effective income tax rate | 52.50% | 64.00% | 38.80% | 37.90% |
Tax Year 2010 [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Decrease in reserve for uncertain tax positions | $ (711) |
Segment Information, Segment In
Segment Information, Segment Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)SegmentUnit | Sep. 30, 2014USD ($) | |
Segment Information [Abstract] | ||||
Number of reportable segments | Segment | 3 | |||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 211,350 | $ 220,157 | $ 768,141 | $ 736,086 |
Gross profit | $ 45,138 | $ 43,261 | $ 173,417 | $ 162,196 |
Gross profit percent | 21.40% | 19.70% | 22.60% | 22.00% |
Segment profit (loss) | $ 1,958 | $ 1,766 | $ 28,532 | $ 25,802 |
Infrastructure Group [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Number of business units | Unit | 5 | |||
Number of business units that design, engineer, manufacture and market | Unit | 3 | |||
Number of business units that operate as Company-owned dealers in foreign countries | Unit | 2 | |||
Aggregate and Mining Group [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Number of business units that design, engineer, manufacture and market | Unit | 8 | |||
Energy Group [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Number of business units that design, engineer, manufacture and market | Unit | 5 | |||
Reportable Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment profit (loss) | 994 | 2,978 | $ 28,564 | 28,270 |
Reportable Segments [Member] | Infrastructure Group [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 85,625 | 78,698 | 336,768 | 296,074 |
Gross profit | $ 16,104 | $ 11,367 | $ 74,292 | $ 59,135 |
Gross profit percent | 18.80% | 14.40% | 22.10% | 20.00% |
Segment profit (loss) | $ 2,116 | $ 520 | $ 29,472 | $ 21,124 |
Reportable Segments [Member] | Aggregate and Mining Group [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 80,549 | 88,177 | 285,790 | 287,976 |
Gross profit | $ 19,226 | $ 21,604 | $ 70,182 | $ 70,722 |
Gross profit percent | 23.90% | 24.50% | 24.60% | 24.60% |
Segment profit (loss) | $ 3,790 | $ 6,806 | $ 25,441 | $ 27,065 |
Reportable Segments [Member] | Energy Group [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 45,176 | 53,282 | 145,583 | 152,036 |
Gross profit | $ 9,794 | $ 10,277 | $ 28,912 | $ 32,309 |
Gross profit percent | 21.70% | 19.30% | 19.90% | 21.30% |
Segment profit (loss) | $ 1,941 | $ 2,789 | $ 2,805 | $ 7,659 |
Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 11,565 | 19,452 | 50,821 | 55,935 |
Segment profit (loss) | 964 | (1,212) | (32) | (2,468) |
Intersegment Eliminations [Member] | Infrastructure Group [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 5,839 | 8,685 | 17,633 | 20,619 |
Intersegment Eliminations [Member] | Aggregate and Mining Group [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 4,604 | 5,948 | 19,223 | 23,043 |
Intersegment Eliminations [Member] | Energy Group [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,122 | 4,819 | 13,965 | 12,273 |
Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Gross profit | $ 14 | $ 13 | $ 31 | $ 30 |
Gross profit percent | 0.00% | 0.00% | 0.00% | 0.00% |
Segment profit (loss) | $ (6,853) | $ (7,137) | $ (29,154) | $ (27,578) |
Segment Information, Reconcilia
Segment Information, Reconciliation of Total Segment Profits to Consolidated Totals (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Reconciliation of total segment profits to the Company's consolidated totals [Abstract] | ||||
Net income | $ 1,958 | $ 1,766 | $ 28,532 | $ 25,802 |
Net loss attributable to non-controlling interest in subsidiaries | (334) | (150) | (669) | (156) |
Net income attributable to controlling interest | 2,292 | 1,916 | 29,201 | 25,958 |
Reportable Segments [Member] | ||||
Reconciliation of total segment profits to the Company's consolidated totals [Abstract] | ||||
Net income | 994 | 2,978 | 28,564 | 28,270 |
Intersegment Eliminations [Member] | ||||
Reconciliation of total segment profits to the Company's consolidated totals [Abstract] | ||||
Net income | $ 964 | $ (1,212) | $ (32) | $ (2,468) |
Contingent Matters (Details)
Contingent Matters (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($)Party | |
Contingent Matters [Abstract] | |
Contingent liability for customer debt | $ 2,108 |
Maximum potential amount of future payments for customer debt | 2,108 |
Liability recorded related to guarantees | 168 |
Guarantor Obligations [Line Items] | |
Contingent liabilities for letters of credit | $ 15,597 |
Number of parties involved in EPA cleanup | Party | 300 |
Letter of Credit Wells Fargo [Member] | |
Guarantor Obligations [Line Items] | |
Contingent liabilities for letters of credit | $ 14,461 |
Outstanding letters of credit, maximum expiration date | Nov. 30, 2017 |
Letters of Credit Osborn [Member] | |
Guarantor Obligations [Line Items] | |
Performance bank guarantee of subsidiary | $ 1,118 |
Letters of Credit Astec Australia [Member] | |
Guarantor Obligations [Line Items] | |
Performance bank guarantee of subsidiary | 18 |
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) - Restricted Stock Units (RSUs) [Member] - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Restricted stock units under the 2006 and 2011 Incentive Plan [Abstract] | ||||
Maximum shares granted to employees (in shares) | 700 | 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 | |||
Restricted Stock Units vested (in shares) | 66 | 75 | ||
Shares withheld upon vesting (in shares) | 14 | 23 | ||
Fair value of vested Restricted Stock Units | $ 2,785 | $ 3,045 | ||
Compensation expense for 2006 and 2011 incentive plans | $ 38 | $ 222 | $ 778 | $ 791 |
Term of compensation plan | 5 years | |||
2006 Incentive Plan [Member] | ||||
Restricted stock units under the 2006 and 2011 Incentive Plan [Abstract] | ||||
Award vesting period | 5 years | |||
2011 Incentive Plan [Member] | ||||
Restricted stock units under the 2006 and 2011 Incentive Plan [Abstract] | ||||
Award vesting period | 5 years |
Other Income, Net of Expenses43
Other Income, Net of Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Other Income, Net of Expenses [Abstract] | ||||
Interest income | $ 128 | $ 447 | $ 392 | $ 1,167 |
Income from life insurance policies | 0 | 0 | 1,204 | 0 |
Gain (loss) on investments | (72) | (86) | (204) | 120 |
License fee income | 250 | 323 | 616 | 780 |
Other | 204 | 26 | 535 | 187 |
Total | $ 510 | $ 710 | $ 2,543 | $ 2,254 |
Derivative Financial Instrume44
Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 1,658 | $ 434 |
Other Noncurrent Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 410 | $ 113 |
Other Noncurrent Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 25 | |
Foreign Exchange Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Average notional amount | $ 11,809 |
Derivative Financial Instrume45
Derivative Financial Instruments, Gain (Loss) recognized in income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Cost of Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain of derivative financial instruments recognized in income, net | $ 419 | $ 713 | $ 1,227 | $ 157 |
Business Acquisition (Details)
Business Acquisition (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | ||
Goodwill | $ 31,280 | $ 31,995 |
Telestack Limited [Member] | ||
Business Acquisition [Line Items] | ||
Date of acquisition | Apr. 1, 2014 | |
Percentages of stock acquired of Telestack Limited | 100.00% | |
Total purchase price | $ 36,183 | |
Decrease in purchase price | (178) | |
Purchase price deposited in escrow | $ 2,500 | |
Period of time for amount held in escrow | 1 year | |
Goodwill | $ 18,078 | |
Other intangibles 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 |