Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 09, 2016 | Jun. 30, 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 | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 945,735,000 | ||
Entity Common Stock, Shares Outstanding | 22,988,374 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 25,062 | $ 13,023 |
Investments | 1,539 | 1,916 |
Trade receivables, net | 98,865 | 105,743 |
Notes and other receivables | 3,132 | 1,558 |
Inventories | 384,776 | 387,835 |
Prepaid expenses | 26,521 | 17,933 |
Deferred income tax assets | 0 | 14,817 |
Other current assets | 1,902 | 7,166 |
Total current assets | 541,797 | 549,991 |
Property and equipment, net | 170,206 | 187,610 |
Investments | 11,540 | 11,393 |
Goodwill | 30,835 | 31,995 |
Intangible assets, net | 13,577 | 17,272 |
Deferred income tax assets | 6,195 | 531 |
Other long-term assets | 3,203 | 3,473 |
Total assets | 777,353 | 802,265 |
Current liabilities: | ||
Short-term debt | 0 | 2,814 |
Current maturities of long-term debt | 4,528 | 1,027 |
Accounts payable | 48,385 | 60,987 |
Customer deposits | 40,082 | 45,086 |
Accrued product warranty | 9,100 | 10,032 |
Accrued payroll and related liabilities | 17,375 | 17,265 |
Accrued loss reserves | 2,838 | 3,050 |
Other accrued liabilities | 19,704 | 20,868 |
Total current liabilities | 142,012 | 161,129 |
Long-term debt | 5,154 | 7,061 |
Deferred income tax liabilities | 2,348 | 16,836 |
Other long-term liabilities | 17,981 | 21,087 |
Total liabilities | 167,495 | 206,113 |
Equity: | ||
Preferred stock - authorized 4,000 shares of $1.00 par value; none issued | 0 | 0 |
Common stock - authorized 40,000 shares of $0.20 par value; issued and outstanding - 22,988 in 2015 and 22,930 in 2014 | 4,598 | 4,586 |
Additional paid-in capital | 137,883 | 135,887 |
Accumulated other comprehensive loss | (23,564) | (12,915) |
Company shares held by SERP, at cost | (1,778) | (2,929) |
Retained earnings | 490,933 | 467,337 |
Shareholders' equity | 608,072 | 591,966 |
Non-controlling interest | 1,786 | 4,186 |
Total equity | 609,858 | 596,152 |
Total liabilities and equity | $ 777,353 | $ 802,265 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
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) | 22,988 | 22,930 |
Common stock, shares outstanding (in shares) | 22,988 | 22,930 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CONSOLIDATED STATEMENTS OF INCOME [Abstract] | |||
Net sales | $ 983,157 | $ 975,595 | $ 932,998 |
Cost of sales | 764,314 | 760,279 | 725,879 |
Gross profit | 218,843 | 215,316 | 207,119 |
Selling, general and administrative expenses | 145,180 | 141,490 | 133,337 |
Research and development expenses | 23,676 | 22,129 | 18,101 |
Income from operations | 49,987 | 51,697 | 55,681 |
Other income: | |||
Interest expense | 1,611 | 720 | 423 |
Interest income | 542 | 1,422 | 1,047 |
Other income (expense), net | 3,055 | 1,207 | 1,937 |
Income before income taxes | 51,973 | 53,606 | 58,242 |
Income taxes | 20,007 | 19,400 | 19,028 |
Net income | 31,966 | 34,206 | 39,214 |
Net income (loss) attributable to non-controlling interest | (831) | (252) | 172 |
Net income attributable to controlling interest | $ 32,797 | $ 34,458 | $ 39,042 |
Net income attributable to controlling interest: | |||
Basic (in dollars per share) | $ 1.43 | $ 1.51 | $ 1.72 |
Diluted (in dollars per share) | $ 1.42 | $ 1.49 | $ 1.69 |
Weighted average number of common shares outstanding: | |||
Basic (in shares) | 22,934 | 22,819 | 22,749 |
Diluted (in shares) | 23,120 | 23,105 | 23,081 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | |||
Net income | $ 31,966 | $ 34,206 | $ 39,214 |
Other comprehensive loss: | |||
Change in unrecognized pension and post-retirement benefit costs | (178) | (1,820) | 2,742 |
Tax (expense) benefit on change in unrecognized pension and post-retirement benefit costs | 36 | 699 | (974) |
Foreign currency translation adjustments | (13,848) | (7,670) | (8,821) |
Tax benefit on foreign currency translation adjustments | 3,341 | 770 | 1,657 |
Other comprehensive loss | (10,649) | (8,021) | (5,396) |
Comprehensive loss attributable to non-controlling interest | (1,603) | (565) | (236) |
Comprehensive income attributable to controlling interest | $ 22,920 | $ 26,750 | $ 34,054 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash Flows from Operating Activities | |||
Net income | $ 31,966 | $ 34,206 | $ 39,214 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 20,744 | 21,343 | 20,966 |
Amortization | 3,334 | 3,033 | 1,299 |
Provision for doubtful accounts | 18 | 1,011 | 629 |
Provision for warranties | 13,743 | 12,796 | 12,199 |
Deferred compensation provision | 241 | 74 | 601 |
Deferred income tax benefit | (2,559) | (2,544) | (2,220) |
Gain on disposition of fixed assets | (529) | (306) | (163) |
Tax expense (benefit) from stock incentive plans | (345) | (586) | 8 |
Stock-based compensation | 1,250 | 1,200 | 1,461 |
Distributions to SERP participants | (2,986) | 0 | 0 |
Change in operating assets and liabilities: | |||
Sale (purchase) of trading securities, net | (405) | 118 | (1,350) |
Trade and other receivables | 3,163 | (6,924) | (8,849) |
Inventories | (6,499) | (41,933) | (36,561) |
Prepaid expenses | (3,016) | (3,989) | (5,433) |
Other assets | (968) | (4,763) | (3,215) |
Accounts payable | (11,409) | 10,755 | 1,028 |
Customer deposits | (3,697) | 5,483 | (5,436) |
Accrued product warranty | (14,177) | (15,563) | (10,163) |
Income taxes payable | (4,093) | (1,136) | (823) |
Accrued retirement benefit costs | 24 | (201) | (324) |
Accrued loss reserves | 103 | 305 | 199 |
Other accrued liabilities | 3,576 | 3,289 | 1,085 |
Other | 3,387 | 3,195 | 1,709 |
Net cash provided by operating activities | 30,866 | 18,863 | 5,861 |
Cash Flows from Investing Activities | |||
Business acquisitions, net of cash acquired | 178 | (34,965) | 0 |
Proceeds from sale of property and equipment | 10,054 | 743 | 424 |
Expenditures for property and equipment | (21,202) | (24,851) | (27,673) |
Sale (purchase) of investments | 378 | 16,249 | (15,000) |
Net cash used by investing activities | (10,592) | (42,824) | (42,249) |
Cash Flows from Financing Activities | |||
Payment of dividends | (9,193) | (9,167) | (6,856) |
Borrowings under bank loans | 106,034 | 113,547 | 0 |
Repayment of bank loans | (104,567) | (103,188) | 0 |
Proceeds from issuance of common stock | 72 | 282 | 112 |
Tax (expense) benefit from stock option exercise | 345 | 586 | (8) |
Sale (purchase) of shares of subsidiaries, net | (653) | 1,428 | 735 |
Sale (purchase) of company shares by SERP, net | 2,084 | (95) | 213 |
Withholding tax paid upon vesting of restricted stock units | (600) | (953) | (782) |
Proceeds from cash surrender value of life insurance | 416 | 0 | 0 |
Net cash provided (used) by financing activities | (6,062) | 2,440 | (6,586) |
Effect of exchange rates on cash | (2,173) | (1,020) | (2,391) |
Increase (decrease) in cash and cash equivalents | 12,039 | (22,541) | (45,365) |
Cash and cash equivalents, beginning of year | 13,023 | 35,564 | 80,929 |
Cash and cash equivalents, end of year | 25,062 | 13,023 | 35,564 |
Cash paid during the year for: | |||
Interest | 1,651 | 476 | 229 |
Income taxes, net of refunds | $ 29,573 | $ 23,027 | $ 20,331 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Thousands, $ in Thousands | 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 |
Balance at Dec. 31, 2012 | $ 4,560 | $ 133,809 | $ 502 | $ (2,855) | $ 409,874 | $ 1,644 | $ 547,534 |
Balance (in shares) at Dec. 31, 2012 | 22,799 | ||||||
Net income | 39,042 | 172 | 39,214 | ||||
Quarterly 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 of Company stock held by SERP, net | 144 | 69 | 213 | ||||
Balance at Dec. 31, 2013 | $ 4,572 | 134,730 | (4,894) | (2,786) | 442,054 | 3,635 | 577,311 |
Balance (in shares) at Dec. 31, 2013 | 22,859 | ||||||
Net income | 34,458 | (252) | 34,206 | ||||
Quarterly 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 of Company stock held by SERP, net | 48 | (143) | (95) | ||||
Balance at Dec. 31, 2014 | $ 4,586 | 135,887 | (12,915) | (2,929) | 467,337 | 4,186 | $ 596,152 |
Balance (in shares) at Dec. 31, 2014 | 22,930 | 22,930 | |||||
Net income | 32,797 | (831) | $ 31,966 | ||||
Quarterly dividends | 8 | (9,201) | (9,193) | ||||
Other comprehensive loss | (10,649) | (772) | (11,421) | ||||
Change in ownership percentage of subsidiary | (663) | (663) | |||||
Stock-based compensation | $ 1 | 1,249 | 1,250 | ||||
Stock-based compensation (in shares) | 4 | ||||||
Exercise of stock options and RSU vesting, including tax benefit | $ 11 | 406 | 417 | ||||
Exercise of stock options and RSU vesting, including tax benefit (in shares) | 54 | ||||||
Withholding tax on vested RSUs | (600) | (600) | |||||
Sale of Company stock held by SERP, net | 933 | 1,151 | 2,084 | ||||
Other | (134) | (134) | |||||
Balance at Dec. 31, 2015 | $ 4,598 | $ 137,883 | $ (23,564) | $ (1,778) | $ 490,933 | $ 1,786 | $ 609,858 |
Balance (in shares) at Dec. 31, 2015 | 22,988 | 22,988 |
CONSOLIDATED STATEMENTS OF EQU8
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 3 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | |
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 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Basis of Presentation 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. 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 Peterson Pacific Corp. (96% owned) Roadtec, Inc. Telestack Limited Telsmith, Inc. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates Foreign Currency Translation Fair Value of Financial Instruments 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, 2015 and 2014 are classified as Level 1 or Level 2, as summarized in Note 3, Fair Value Measurements. Cash and Cash Equivalents Investments Concentration of Credit Risk Allowance for Doubtful Accounts Year Ended December 31 2015 2014 2013 Allowance balance, beginning of year $ 2,248 $ 1,708 $ 2,143 Provision 18 1,011 629 Write offs (357 ) (465 ) (1,042 ) Other (72 ) (6 ) (22 ) Allowance balance, end of year $ 1,837 $ 2,248 $ 1,708 Inventories Raw material inventory is comprised of purchased steel and other purchased items for use in the manufacturing process or held for sale for the 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 equipment 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. 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 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 Goodwill and Other Intangible Assets 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 is recorded when the carrying value of the definite lived intangible asset is not recoverable by the future undiscounted cash flows expected to be 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. 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 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 the fair value of the consolidated Company, calculated 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 Self-Insurance Reserves For general liability claims, the captive is liable for the first $1,000 per occurrence and $3,000 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 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 has certain sales accounted for as multiple-element arrangements, whereby 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, the Company uses third-party evidence of selling price or the Company’s best estimate of the selling price for the deliverables. 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 Income Taxes 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 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 may be required. Pension and Retirement Plans 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 is in the final stages of implementing a similar RSU plan using available shares under the existing, shareholder approved, 2011 Incentive Plan, for performance during 2016 through 2018. Earnings Per Share The following table sets forth a reconciliation of the number of shares used in the computation of basic and diluted earnings per share: Year Ended December 31 2015 2014 2013 Denominator: Denominator for basic earnings per share 22,934 22,819 22,749 Effect of dilutive securities: Employee stock options and restricted stock units 123 176 218 Supplemental executive retirement plan 63 110 114 Denominator for diluted earnings per share 23,120 23,105 23,081 Antidilutive options were not included in the diluted earnings per share computation for the years presented. The number of antidilutive options in the three years ended December 31, 2015 was not material. Derivatives and Hedging Activities Shipping and Handling Fees and Cost Business Combinations Subsequent Events Review Immaterial Correction of Error - The accompanying financial statements have been adjusted to reflect a $3,200 reduction of retained earnings as of December 31, 2014, 2013 and 2012 and a $3,200 reduction in prepaid expenses as of December 31, 2014. The error had no impact on the Company’s results of operations or net cash flows for the years ended December 31, 2015, 2014 or 2013. Recent Accounting Pronouncements – In May 2014, the Financial Accounting Standards Board (‘FASB”) issued Accounting Standards Update (“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, as amended, 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. In November 2015, the FASB issued ASU No. 2015-17, “Balance Sheet Classification of Deferred Taxes”, which requires all companies to classify deferred tax assets and liabilities as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amounts. Also, companies will no longer allocate valuation allowances between current and noncurrent deferred tax assets because those allowances also will be classified as noncurrent. The standard is effective for public entities for annual periods beginning on or after December 15, 2016 with early adoption permitted. The Company’s prospective adoption of this standard for the year ended December 31, 2015 did not have a significant impact on the Company’s financial position. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventories [Abstract] | |
Inventories | 2. Inventories Inventories consist of the following: December 31 2015 2014 Raw materials and parts $ 141,967 $ 149,171 Work-in-process 113,859 105,163 Finished goods 104,879 102,235 Used equipment 24,071 31,266 Total $ 384,776 $ 387,835 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
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, 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, 2015 and 2014 are level 1 and level 2 in the fair value hierarchy: As indicated in the tables below, the Company has determined that its financial assets and liabilities at December 31, 2015 and 2014 are level 1 and level 2 in the fair value hierarchy: December 31, 2015 Level 1 Level 2 Level 3 Total Financial Assets: Trading equity securities: SERP money market fund $ 445 $ -- $ -- $ 445 SERP mutual funds 2,864 -- -- 2,864 Preferred stocks 742 -- -- 742 Trading debt securities: Corporate bonds 3,756 141 -- 3,897 Municipal bonds -- 1,811 -- 1,811 Floating rate notes 84 -- -- 84 U.S. Treasury bills 404 -- -- 404 Savings bonds 77 -- -- 77 Other government bonds -- 2,755 -- 2,755 Derivative financial instruments -- 1,265 -- 1,265 Total financial assets $ 8,372 $ 5,972 $ -- $ 14,344 Financial Liabilities: SERP liabilities $ -- $ 5,869 $ -- $ 5,869 Total financial liabilities $ -- $ 5,869 $ -- $ 5,869 December 31, 2014 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 bills 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 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, $292 of investments included in Level 2 at December 31, 2014 were transferred to Level 1 at December 31, 2015. In addition, due to decreased trading activity, $141 of investments included in Level 1 at December 31, 2014 were transferred to Level 2 at December 31, 2015. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2015 | |
Investments [Abstract] | |
Investments | 4. Investments The Company’s trading securities consist of the following: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Net Carrying Amount) December 31, 2015 Trading equity securities $ 4,160 $ 79 $ 188 $ 4,05 Trading debt securities 9,263 37 272 9,028 Total $ 13,423 $ 116 $ 460 $ 13,079 December 31, 2014 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 Trading equity investments 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 losses of $429 and $17 in 2015 and 2014, respectively and a gain of $175 in 2013. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2015 | |
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 2015, 2014 and 2013 indicated no impairment of goodwill. The changes in the carrying amount of goodwill by reporting segment during the years ended December 31, 2015 and 2014 are as follows: Infrastructure Group Aggregate and Mining Group Energy Group Corporate Total 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 Purchase price adjustment -- (178 ) -- -- (178 ) Foreign currency translation (103 ) (879 ) -- -- (982 ) Balance, December 31, 2015 $ 8,481 $ 22,354 $ -- $ -- $ 30,835 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Intangible Assets [Abstract] | |
Long-lived and Intangible Assets | 6. Intangible Assets Intangible assets consisted of the following at December 31, 2015 and 2014: 2015 2014 Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Dealer network and customer relationships $ 13,111 $ 5,552 $ 7,559 $ 13,600 $ 4,245 $ 9,355 Trade names 4,857 956 3,901 4,984 645 4,339 Other 4,966 2,849 2,117 5,471 1,893 3,578 Total $ 22,934 $ 9,357 $ 13,577 $ 24,055 $ 6,783 $ 17,272 Amortization expense on intangible assets was $2,953, $2,735 and $1,066 for 2015, 2014 and 2013, respectively. Intangible asset amortization expense is expected to be $2,148, $2,012, $1,751, $1,223 and $1,140 in the years ending December 31, 2016, 2017, 2018, 2019 and 2020, respectively, and $5,303 thereafter. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property and Equipment [Abstract] | |
Property and Equipment | 7. Property and Equipment Property and equipment consist of the following: December 31 2015 2014 Land $ 12,628 $ 14,024 Building and land improvements 132,353 146,266 Manufacturing and office equipment 214,545 235,623 Aviation equipment 14,151 13,698 Less accumulated depreciation (203,471 ) (222,001 ) Total $ 170,206 $ 187,610 Depreciation expense was $20,744, $21,343 and $20,966 for the years ended December 31, 2015, 2014 and 2013, respectively. In October 2015, the Company recorded the sale of its Astec Underground facility for a net sales price of $9,599. The cost of closing the facility totaled $1,500, with $999 recorded in cost of sales and $501 in selling, general and administrative expenses in the year ended December 31, 2015. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2015 | |
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 $2,786, $2,544 and $2,436 for the years ended December 31, 2015, 2014 and 2013, respectively. Minimum rental commitments for all noncancelable operating leases at December 31, 2015 are as follows: 2016 $ 1,670 2017 1,433 2018 535 2019 393 2020 280 Thereafter 131 $ 4,442 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
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. There were no outstanding revolving or term loan borrowings under the credit facility at December 31, 2015 or 2014. Letters of credit totaling $17,684 were outstanding under the credit facility as of December 31, 2015, resulting in additional borrowing ability of $82,316 on the credit facility as of December 31, 2015. 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, resulting in a rate of 1.18% at December 31, 2015. 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, 2015. The Company’s South African subsidiary, Osborn Engineered Products SA (Pty) Ltd (“Osborn”), has a bank overdraft facility of $6,123 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, 2015, Osborn had $686 in retention guarantees outstanding under the facility. The facility is guaranteed by Astec Industries, Inc. The overdraft’s 0.75% unused facility fee is waived if 50% or more of the facility is utilized. As of December 31, 2015, Osborn had available credit under the facility of $5,437. The interest rate is 0.25% less than the South Africa prime rate, resulting in a rate of 9.50% as of December 31, 2015. The Company's Brazilian subsidiary, Astec do Brasil Fabricacao de Equipamentos Ltda. ("Astec Brazil"), has outstanding working capital loans totaling $8,281 from a Brazilian bank with interest rates ranging from 10.4% to 20.8%. The loans have maturity dates ranging from December 2016 to April 2024 and are secured by letters of credit totaling $8,674 issued by Astec Industries, Inc. Additionally, Astec Brazil has various five-year equipment financing loans outstanding with other Brazilian banks in the aggregate of $1,401 as of December 31, 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 current maturities of long-term debt of $4,528 and long-term debt of $5,154 as of December 31, 2015. Long-term debt maturities are expected to be $4,528, $2,556, $1,326, $346 and $215 in the years ending December 31, 2016, 2017, 2018, 2019 and 2020, respectively, and $711 thereafter. |
Product Warranty Reserves
Product Warranty Reserves | 12 Months Ended |
Dec. 31, 2015 | |
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 2015, 2014 and 2013 are as follows: 2015 2014 2013 Reserve balance, beginning of year $ 10,032 $ 12,716 $ 11,052 Warranty liabilities accrued 13,743 12,796 12,199 Warranty liabilities settled (14,177 ) (15,563 ) (10,171 ) Other (498 ) 83 (364 ) Reserve balance, end of year $ 9,100 $ 10,032 $ 12,716 |
Accrued Loss Reserves
Accrued Loss Reserves | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 were $7,663 and $7,562 at December 31, 2014, of which $4,825 and $4,512 was included in other long-term liabilities at December 31, 2015 and 2014, respectively. |
Pension and Retirement Plans
Pension and Retirement Plans | 12 Months Ended |
Dec. 31, 2015 | |
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 at least the minimum annual contributions required by applicable regulations. The Company’s investment strategy for the plan is to earn a rate of return 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 2015 2014 Change in benefit obligation Benefit obligation, beginning of year $ 15,986 $ 13,815 Interest cost 596 620 Actuarial (gain)/loss (417 ) 2,118 Benefits paid (600 ) (567 ) Benefit obligation, end of year 15,565 15,986 Accumulated benefit obligation $ 15,565 $ 15,986 Change in plan assets Fair value of plan assets, beginning of year $ 13,283 $ 12,693 Actual gain/(loss) on plan assets (279 ) 819 Employer contribution 284 338 Benefits paid (600 ) (567 ) Fair value of plan assets, end of year 12,688 13,283 Funded status, end of year $ (2,877 ) $ (2,703 ) Amounts recognized in the consolidated balance sheets Noncurrent liabilities $ (2,877 ) $ (2,703 ) Net amount recognized $ (2,877 ) $ (2,703 ) Amounts recognized in accumulated other comprehensive income consist of Net loss $ 6,098 $ 5,896 Net amount recognized $ 6,098 $ 5,896 Weighted average assumptions used to determine benefit obligations as of December 31 Discount rate 4.28 % 3.81 % Expected return on plan assets 7.00 % 7.00 % 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 December 31 and the target asset allocation ranges by asset category are as follows: Actual Allocation 2015 & 2014 Target Asset Category 2015 2014 Allocation Ranges Equity securities 66.0% 65.6% 53 - 73% Debt securities 30.7% 30.1% 21 - 41% Money market funds 3.3% 4.3% 0 - 15% Total 100.0% 100.0% Net periodic benefit cost for 2015, 2014 and 2013 included the following components: Pension Benefits 2015 2014 2013 Components of net periodic benefit cost Interest cost $ 596 $ 620 $ 561 Expected return on plan assets (840 ) (816 ) (693 ) Amortization of actuarial loss 500 295 536 Net periodic benefit cost $ 256 $ 99 $ 404 Other changes in plan assets and benefit obligations recognized in other comprehensive income Net actuarial (gain)/loss for the year $ 702 $ 2,115 $ (2,109 ) Amortization of net loss (500 ) (295 ) (536 ) Total recognized in other comprehensive income 202 1,820 (2,645 ) Total recognized in net periodic benefit cost and other comprehensive income $ 458 $ 1,919 $ (2,241 ) Weighted average assumptions used to determine net periodic benefit cost for years ended December 31 Discount rate 3.81 % 4.60 % 3.82 % Expected return on plan assets 7.00 % 7.00 % 7.00 % No contributions are expected to be funded by the Company during 2016. Amounts in accumulated other comprehensive income expected to be recognized in net periodic benefit cost in 2016 for the amortization of a net loss is $480. The following estimated future benefit payments are expected in the years indicated: Pension Benefits 2016 $ 730 2017 730 2018 790 2019 840 2020 870 2021 - 2025 4,670 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 $5,292, $5,134 and $4,941 in 2015, 2014 and 2013, respectively. The Company maintains a 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: December 31, 2015 December 31, 2014 Cost Market Cost Market Company stock $ 1,778 $ 2,560 $ 2,929 $ 4,401 Equity securities 3,402 3,309 3,368 3,727 Total $ 5,180 $ 5,869 $ 6,297 $ 8,128 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 $241, $74 and $601 in 2015, 2014 and 2013, respectively, related to the change in the fair value of the Company stock held in the SERP. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
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 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 derivative financial instruments for trading purposes. The average U.S. dollar equivalent notional amount of outstanding foreign currency exchange contracts was $12,561 during 2015. At December 31, 2015, the Company reported $935 of derivative assets in other current assets, $330 of derivative assets in other long-term assets and $22 of derivative liabilities in other current liabilities. The Company reported $434 of derivative assets in other current assets and $113 of derivative assets in other long-term assets at December 31, 2014. The Company recognized, as a component of cost of sales, net gains on the change in fair value of derivative instruments of $606, $438 and $1,061 for the years ended December 31, 2015, 2014 and 2013, respectively. There were no derivatives that were designated as hedges at December 31, 2015 or 2014. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | 14. Income Taxes For financial reporting purposes, income before income taxes includes the following components: Year Ended December 31 2015 2014 2013 United States $ 57,846 $ 57,651 $ 53,315 Foreign (5,873 ) (4,045 ) 4,927 Income before income taxes $ 51,973 $ 53,606 $ 58,242 The provision for income taxes consists of the following: Year Ended December 31 2015 2014 2013 Current provision (benefit): Federal $ 19,758 $ 18,713 $ 16,239 State 2,553 2,992 2,785 Foreign 255 243 2,664 Total current provision 22,566 21,948 21,688 Deferred benefit: Federal (1,183 ) (1,627 ) (885 ) State (275 ) (222 ) (923 ) Foreign (1,101 ) (699 ) (852 ) Total deferred benefit (2,559 ) (2,548 ) (2,660 ) Total provision (benefit): Federal 18,575 17,086 15,354 State 2,278 2,770 1,862 Foreign (846 ) (456 ) 1,812 Total tax provision $ 20,007 $ 19,400 $ 19,028 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 2015 2014 2013 Tax at the statutory federal income tax rate $ 18,191 $ 18,762 $ 20,385 Qualified production activity deduction (1,174 ) (1,360 ) (1,395 ) State income tax, net of federal income tax 1,386 1,727 1,105 Other permanent differences 393 840 464 Research and development tax credits (291 ) (1,323 ) (2,054 ) Change in valuation allowance 2,036 1,675 810 Other items (534 ) (921 ) (287 ) Total tax provision $ 20,007 $ 19,400 $ 19,028 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: December 31 2015 2014 Deferred tax assets: Inventory reserves $ 6,696 $ 6,539 Warranty reserves 2,774 2,988 Bad debt reserves 409 598 State tax loss carryforwards 3,006 2,377 Accrued vacation 2,055 2,060 SERP 275 1,231 Deferred compensation 1,328 1,255 Restricted stock units 1,893 2,256 Foreign exchange gains/losses 4,549 3,111 Pension and post-employment benefits 2,232 2,197 Foreign deferred tax assets 2,773 3,311 Foreign net operating losses 5,134 3,168 Other 3,460 3,267 Valuation allowances (8,065 ) (6,029 ) Total deferred tax assets 28,519 28,329 Deferred tax liabilities: Property and equipment 17,616 19,394 Amortization 1,019 1,087 Goodwill 1,917 2,014 Pension 1,305 1,313 Foreign tax rate differential -- 2,236 Foreign deferred tax liabilities 2,815 3,820 Total deferred tax liabilities 24,672 29,864 Total net deferred assets (liabilities) $ 3,847 $ (1,535 ) In accordance with ASU No. 2015-17 Topic 740-10-65-4, the Company has prospectively adopted the early application of ASU No. 2015-17, thereby classifying all deferred taxes as noncurrent assets and noncurrent liabilities as of December 31, 2015. The reason for the change is to simplify the reporting of all deferred tax assets and liabilities on the balance sheet. The prior periods were not retrospectively adjusted. As of December 31, 2015, the Company has state net operating loss carryforwards of $66,501, foreign net operating loss carryforwards of approximately $16,062, and state tax credit carryforwards of $864 for tax purposes, which will be available to offset future taxable income. If not used, these carryforwards will expire between 2016 and 2029. 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 2015, the valuation allowance on these carryforwards was increased by $2,111 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 $75 during 2015. 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 any future repatriation of their earnings, in the form of dividends or otherwise, the Company would be subject to additional U.S. income taxes (subject to an adjustment for foreign tax credits) and withholding taxes due to Canada and may have to be paid. The cumulative amount of Breaker Technology, Ltd.’s unrecovered basis difference is $9,300 as of December 31, 2015. The cumulative amount of Telestack Limited’s unrecovered basis difference is $1,000 as of December 31, 2015. 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 2013. 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 2008. The Company has a liability for unrecognized tax benefits of $603 and $2,585 (excluding accrued interest and penalties) as of December 31, 2015 and 2014, respectively. The Company recognizes interest and penalties accrued related to unrecognized tax benefits in tax expense. The Company recognized tax benefits of $123 and $107 in 2015 and 2014, 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 $618 and $2,722 at December 31, 2015 and 2014, 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: Year Ended December 31 2015 2014 2013 Balance, beginning of year $ 2,585 $ 1,933 $ 2,095 Additions for tax positions related to the current year 206 127 102 Additions for tax positions related to prior years 549 525 128 Reductions due to lapse of statutes of limitations (162 ) -- (149 ) Decreases related to settlements with tax authorities (2,575 ) -- (243 ) Balance, end of year $ 603 $ 2,585 $ 1,933 The December 31, 2015 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, 2015 | |
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 $1,881 at December 31, 2015. These arrangements expire at various dates through February 2019 and 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 $133 related to these guarantees as of December 31, 2015. In addition, the Company is contingently liable under letters of credit issued by Wells Fargo totaling $17,684 as of December 31, 2015, 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, 2015, Osborn is contingently liable for a total of $686 in retention guarantees. As of December 31, 2015, Astec Australia is contingently liable for a total of $18 in performance bank guarantees. As of December 31, 2015, Telestack is contingently liable for a total of $618 in performance bond, advance payment and performance guarantees. The maximum potential amount of future payments under these letters of credit and guarantees for which the Company could be liable is $19,006 as of December 31, 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. 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, 2015 | |
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. RSUs awarded under the Company’s 2006 and 2011 Incentive Plans were granted shortly after the end of each year from 2006 through 2015 based upon the performance of the Company and its individual subsidiaries, with additional RSU’s granted based upon cumulative five-year performance. 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 2015, 2014 and 2013 was $2,785, $3,045 and $2,405, respectively. The grant date tax benefit was increased (reduced) by $336, $470 and $(77), respectively, upon the vesting of RSUs in 2015, 2014 and 2013. Compensation expense of $1,019, $961 and $1,231 was recorded in the years ended December 31, 2015, 2014 and 2013, respectively, to reflect the fair value of RSUs granted (or anticipated to be granted for annual and five-year ended 2015 performance) less estimated forfeitures, amortized over the portion of the vesting period occurring during the period. Related income tax benefits of $362, $348 and $417 were recorded in 2015, 2014 and 2013, respectively. Based upon the grant date fair value of RSUs, it is anticipated that $2,016 of additional compensation costs will be recognized in future periods through 2021 for RSUs earned through December 31, 2015. The weighted average period over which this additional compensation cost will be expensed is 4.0 years. RSUs do not participate in Company paid dividends. Changes in restricted stock units during the year ended December 31, 2015 are as follows: 2015 Weighted Average Grant Date Fair Value Unvested restricted stock units, beginning of year 197 $ 33.54 Units granted 22 42.77 Units forfeited (6 ) 39.63 Units vested (66 ) 28.70 Unvested restricted stock units, end of year 147 36.83 The grant date fair value of the restricted stock units granted during 2015, 2014 and 2013 was $937, $561 and $763, respectively. |
Operations by Industry Segment
Operations by Industry Segment and Geographic Area | 12 Months Ended |
Dec. 31, 2015 | |
Operations by Industry Segment and Geographic Area [Abstract] | |
Operations by Industry Segment and Geographic Area | 17. Operations by Industry Segment and Geographic Area 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 for 2015 Infrastructure Group Aggregate and Mining Group Energy Group Corporate Total Revenues from external customers $ 428,737 $ 370,813 $ 183,607 $ -- $ 983,157 Intersegment revenues 22,947 28,701 16,010 -- 67,658 Interest expense 258 1,005 10 338 1,611 Depreciation and amortization 6,907 10,719 5,553 899 24,078 Income taxes 1,224 764 (129 ) 18,148 20,007 Profit (loss) 33,890 30,690 3,609 (36,623 ) 31,566 Assets 567,936 496,089 256,978 306,511 1,627,514 Capital expenditures 8,043 8,807 4,049 389 21,288 Segment information for 2014 Infrastructure Group Aggregate and Mining Group Energy Group Corporate Total 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 539,794 494,428 244,003 302,082 1,580,307 Capital expenditures 5,375 16,169 2,875 413 24,832 Segment information for 2013 Infrastructure Group Aggregate and Mining Group Energy Group Corporate Total 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 The totals of segment information for all reportable segments reconciles to consolidated totals as follows: 2015 2014 2013 Net income attributable to controlling interest Total profit for reportable segments $ 68,189 $ 72,693 $ 69,850 Corporate expenses, net (36,623 ) (35,270 ) (30,367 ) Net (income) loss attributable to non-controlling interest 831 252 (172 ) Recapture (elimination) of intersegment profit 400 (3,217 ) (269 ) Total consolidated net income attributable to controlling interest $ 32,797 $ 34,458 $ 39,042 Assets Total assets for reportable segments $ 1,321,003 $ 1,278,225 $ 1,153,785 Corporate assets 306,511 302,082 315,560 Elimination of intercompany profit in inventory (7,496 ) (7,896 ) (4,679 ) Elimination of intercompany receivables (583,834 ) (515,625 ) (482,768 ) Elimination of investment in subsidiaries (223,500 ) (227,051 ) (195,199 ) Other eliminations (35,331 ) (27,470 ) (37,408 ) Total consolidated assets $ 777,353 $ 802,265 $ 749,291 Sales into major geographic regions were as follows: Year Ended December 31 2015 2014 2013 United States $ 722,287 $ 654,230 $ 599,054 Canada 54,321 61,898 70,991 Africa 45,671 47,940 62,911 South America (excluding Brazil) 32,454 49,797 33,526 Australia and Oceania 29,995 34,772 47,505 Other European Countries 23,867 12,365 15,428 Middle East 18,995 13,327 6,699 Other Asian Countries 9,513 17,018 5,836 Russia 8,466 25,589 17,440 Brazil 8,376 12,869 11,620 Post-Soviet States (excluding Russia) 8,345 8,245 25,849 Mexico 6,990 9,993 15,917 Central America (excluding Mexico) 4,404 9,275 5,620 Japan and Korea 3,574 4,377 1,749 India 2,706 1,743 3,672 West Indies 1,532 4,478 5,294 China 1,330 7,451 3,857 Other 331 228 30 Total foreign 260,870 321,365 333,944 Total consolidated sales $ 983,157 $ 975,595 $ 932,998 Long-lived assets by major geographic region are as follows: December 31 2015 2014 United States $ 141,727 $ 150,425 Brazil 9,780 14,798 South Africa 5,116 7,295 Australia 4,351 5,111 Northern Ireland 5,116 5,065 Canada 2,987 3,592 Germany 1,129 1,324 Total foreign 28,479 37,185 Total $ 170,206 $ 187,610 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | 18. Accumulated Other Comprehensive Loss The balance of related after-tax components comprising accumulated other comprehensive loss is summarized below: December 31 2015 2014 Foreign currency translation adjustment $ (19,891 ) $ (9,384 ) Unrecognized pension and post-retirement benefit cost, net of tax of $2,232 and $2,197, respectively (3,673 ) (3,531 ) Accumulated other comprehensive loss $ (23,564 ) $ (12,915 ) 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, 2015 | |
Other Income (Expense) - Net [Abstract] | |
Other Income (Expense) - Net | 19. Other Income (Expense) - Net Other income (expense), net consists of the following: Year Ended December 31 2015 2014 2013 Investment income (loss) $ (381 ) $ 64 $ 853 Licensing fees 641 831 764 Income from life insurance policies 1,204 -- -- Other 1,591 312 320 Total $ 3,055 $ 1,207 $ 1,937 |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Business Combinations | 20. Business Combinations 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 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. 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. |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation 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. 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 Peterson Pacific Corp. (96% owned) Roadtec, Inc. Telestack Limited Telsmith, Inc. All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates |
Foreign Currency Translation | Foreign Currency Translation |
Fair Value of Financial Instruments | Fair Value of Financial Instruments 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, 2015 and 2014 are classified as Level 1 or Level 2, as summarized in Note 3, Fair Value Measurements. |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Investments | Investments |
Concentration of Credit Risk | Concentration of Credit Risk |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts Year Ended December 31 2015 2014 2013 Allowance balance, beginning of year $ 2,248 $ 1,708 $ 2,143 Provision 18 1,011 629 Write offs (357 ) (465 ) (1,042 ) Other (72 ) (6 ) (22 ) Allowance balance, end of year $ 1,837 $ 2,248 $ 1,708 |
Inventories | Inventories Raw material inventory is comprised of purchased steel and other purchased items for use in the manufacturing process or held for sale for the 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 equipment 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. 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 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 |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets 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 is recorded when the carrying value of the definite lived intangible asset is not recoverable by the future undiscounted cash flows expected to be 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. 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 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 the fair value of the consolidated Company, calculated 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 |
Self-Insurance Reserves | Self-Insurance Reserves For general liability claims, the captive is liable for the first $1,000 per occurrence and $3,000 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 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 has certain sales accounted for as multiple-element arrangements, whereby 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, the Company uses third-party evidence of selling price or the Company’s best estimate of the selling price for the deliverables. 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 |
Income Taxes | Income Taxes 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 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 may be required. |
Pension and Retirement Plans | Pension and Retirement Plans 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 is in the final stages of implementing a similar RSU plan using available shares under the existing, shareholder approved, 2011 Incentive Plan, for performance during 2016 through 2018. |
Earnings Per Share | Earnings Per Share The following table sets forth a reconciliation of the number of shares used in the computation of basic and diluted earnings per share: Year Ended December 31 2015 2014 2013 Denominator: Denominator for basic earnings per share 22,934 22,819 22,749 Effect of dilutive securities: Employee stock options and restricted stock units 123 176 218 Supplemental executive retirement plan 63 110 114 Denominator for diluted earnings per share 23,120 23,105 23,081 Antidilutive options were not included in the diluted earnings per share computation for the years presented. The number of antidilutive options in the three years ended December 31, 2015 was not material. |
Derivatives and Hedging Activities | Derivatives and Hedging Activities |
Shipping and Handling Fees and Cost | Shipping and Handling Fees and Cost |
Business Combinations | Business Combinations |
Subsequent Events Review | Subsequent Events Review Immaterial Correction of Error - The accompanying financial statements have been adjusted to reflect a $3,200 reduction of retained earnings as of December 31, 2014, 2013 and 2012 and a $3,200 reduction in prepaid expenses as of December 31, 2014. The error had no impact on the Company’s results of operations or net cash flows for the years ended December 31, 2015, 2014 or 2013. |
Immaterial Correction of Errors | Immaterial Correction of Error - The accompanying financial statements have been adjusted to reflect a $3,200 reduction of retained earnings as of December 31, 2014, 2013 and 2012 and a $3,200 reduction in prepaid expenses as of December 31, 2014. The error had no impact on the Company’s results of operations or net cash flows for the years ended December 31, 2015, 2014 or 2013. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements – In May 2014, the Financial Accounting Standards Board (‘FASB”) issued Accounting Standards Update (“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, as amended, 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. In November 2015, the FASB issued ASU No. 2015-17, “Balance Sheet Classification of Deferred Taxes”, which requires all companies to classify deferred tax assets and liabilities as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amounts. Also, companies will no longer allocate valuation allowances between current and noncurrent deferred tax assets because those allowances also will be classified as noncurrent. The standard is effective for public entities for annual periods beginning on or after December 15, 2016 with early adoption permitted. The Company’s prospective adoption of this standard for the year ended December 31, 2015 did not have a significant impact on the Company’s financial position. |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015, 2014 and 2013: Year Ended December 31 2015 2014 2013 Allowance balance, beginning of year $ 2,248 $ 1,708 $ 2,143 Provision 18 1,011 629 Write offs (357 ) (465 ) (1,042 ) Other (72 ) (6 ) (22 ) Allowance balance, end of year $ 1,837 $ 2,248 $ 1,708 |
Computation of earnings per share | The following table sets forth a reconciliation of the number of shares used in the computation of basic and diluted earnings per share: Year Ended December 31 2015 2014 2013 Denominator: Denominator for basic earnings per share 22,934 22,819 22,749 Effect of dilutive securities: Employee stock options and restricted stock units 123 176 218 Supplemental executive retirement plan 63 110 114 Denominator for diluted earnings per share 23,120 23,105 23,081 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventories [Abstract] | |
Inventories | Inventories consist of the following: December 31 2015 2014 Raw materials and parts $ 141,967 $ 149,171 Work-in-process 113,859 105,163 Finished goods 104,879 102,235 Used equipment 24,071 31,266 Total $ 384,776 $ 387,835 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 and 2014 are level 1 and level 2 in the fair value hierarchy: December 31, 2015 Level 1 Level 2 Level 3 Total Financial Assets: Trading equity securities: SERP money market fund $ 445 $ -- $ -- $ 445 SERP mutual funds 2,864 -- -- 2,864 Preferred stocks 742 -- -- 742 Trading debt securities: Corporate bonds 3,756 141 -- 3,897 Municipal bonds -- 1,811 -- 1,811 Floating rate notes 84 -- -- 84 U.S. Treasury bills 404 -- -- 404 Savings bonds 77 -- -- 77 Other government bonds -- 2,755 -- 2,755 Derivative financial instruments -- 1,265 -- 1,265 Total financial assets $ 8,372 $ 5,972 $ -- $ 14,344 Financial Liabilities: SERP liabilities $ -- $ 5,869 $ -- $ 5,869 Total financial liabilities $ -- $ 5,869 $ -- $ 5,869 December 31, 2014 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 bills 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 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments [Abstract] | |
Schedule of trading securities | The Company’s trading securities consist of the following: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Net Carrying Amount) December 31, 2015 Trading equity securities $ 4,160 $ 79 $ 188 $ 4,05 Trading debt securities 9,263 37 272 9,028 Total $ 13,423 $ 116 $ 460 $ 13,079 December 31, 2014 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 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 and 2014 are as follows: Infrastructure Group Aggregate and Mining Group Energy Group Corporate Total 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 Purchase price adjustment -- (178 ) -- -- (178 ) Foreign currency translation (103 ) (879 ) -- -- (982 ) Balance, December 31, 2015 $ 8,481 $ 22,354 $ -- $ -- $ 30,835 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Intangible Assets [Abstract] | |
Schedule of intangible assets | 2015 2014 Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Dealer network and customer relationships $ 13,111 $ 5,552 $ 7,559 $ 13,600 $ 4,245 $ 9,355 Trade names 4,857 956 3,901 4,984 645 4,339 Other 4,966 2,849 2,117 5,471 1,893 3,578 Total $ 22,934 $ 9,357 $ 13,577 $ 24,055 $ 6,783 $ 17,272 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property and Equipment [Abstract] | |
Property and equipment | Property and equipment consist of the following: December 31 2015 2014 Land $ 12,628 $ 14,024 Building and land improvements 132,353 146,266 Manufacturing and office equipment 214,545 235,623 Aviation equipment 14,151 13,698 Less accumulated depreciation (203,471 ) (222,001 ) Total $ 170,206 $ 187,610 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Minimum rental commitments for non-cancelable operating leases | Minimum rental commitments for all noncancelable operating leases at December 31, 2015 are as follows: 2016 $ 1,670 2017 1,433 2018 535 2019 393 2020 280 Thereafter 131 $ 4,442 |
Product Warranty Reserves (Tabl
Product Warranty Reserves (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Product Warranty Reserves [Abstract] | |
Product warranty reserves | Changes in the Company’s product warranty liability during 2015, 2014 and 2013 are as follows: 2015 2014 2013 Reserve balance, beginning of year $ 10,032 $ 12,716 $ 11,052 Warranty liabilities accrued 13,743 12,796 12,199 Warranty liabilities settled (14,177 ) (15,563 ) (10,171 ) Other (498 ) 83 (364 ) Reserve balance, end of year $ 9,100 $ 10,032 $ 12,716 |
Pension and Retirement Plans (T
Pension and Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 2015 2014 Change in benefit obligation Benefit obligation, beginning of year $ 15,986 $ 13,815 Interest cost 596 620 Actuarial (gain)/loss (417 ) 2,118 Benefits paid (600 ) (567 ) Benefit obligation, end of year 15,565 15,986 Accumulated benefit obligation $ 15,565 $ 15,986 Change in plan assets Fair value of plan assets, beginning of year $ 13,283 $ 12,693 Actual gain/(loss) on plan assets (279 ) 819 Employer contribution 284 338 Benefits paid (600 ) (567 ) Fair value of plan assets, end of year 12,688 13,283 Funded status, end of year $ (2,877 ) $ (2,703 ) Amounts recognized in the consolidated balance sheets Noncurrent liabilities $ (2,877 ) $ (2,703 ) Net amount recognized $ (2,877 ) $ (2,703 ) Amounts recognized in accumulated other comprehensive income consist of Net loss $ 6,098 $ 5,896 Net amount recognized $ 6,098 $ 5,896 Weighted average assumptions used to determine benefit obligations as of December 31 Discount rate 4.28 % 3.81 % Expected return on plan assets 7.00 % 7.00 % Rate of compensation increase N/A N/A |
Allocation of pension plan assets and target allocation range of assets | Actual Allocation 2015 & 2014 Target Asset Category 2015 2014 Allocation Ranges Equity securities 66.0% 65.6% 53 - 73% Debt securities 30.7% 30.1% 21 - 41% Money market funds 3.3% 4.3% 0 - 15% Total 100.0% 100.0% |
Periodic benefit costs for defined benefit plans | Net periodic benefit cost for 2015, 2014 and 2013 included the following components: Pension Benefits 2015 2014 2013 Components of net periodic benefit cost Interest cost $ 596 $ 620 $ 561 Expected return on plan assets (840 ) (816 ) (693 ) Amortization of actuarial loss 500 295 536 Net periodic benefit cost $ 256 $ 99 $ 404 Other changes in plan assets and benefit obligations recognized in other comprehensive income Net actuarial (gain)/loss for the year $ 702 $ 2,115 $ (2,109 ) Amortization of net loss (500 ) (295 ) (536 ) Total recognized in other comprehensive income 202 1,820 (2,645 ) Total recognized in net periodic benefit cost and other comprehensive income $ 458 $ 1,919 $ (2,241 ) Weighted average assumptions used to determine net periodic benefit cost for years ended December 31 Discount rate 3.81 % 4.60 % 3.82 % Expected return on plan assets 7.00 % 7.00 % 7.00 % |
Summary of estimated future benefit payments | The following estimated future benefit payments are expected in the years indicated: Pension Benefits 2016 $ 730 2017 730 2018 790 2019 840 2020 870 2021 - 2025 4,670 |
Assets of the supplemental executive retirement plan | Assets of the SERP consist of the following: December 31, 2015 December 31, 2014 Cost Market Cost Market Company stock $ 1,778 $ 2,560 $ 2,929 $ 4,401 Equity securities 3,402 3,309 3,368 3,727 Total $ 5,180 $ 5,869 $ 6,297 $ 8,128 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Income before income taxes | For financial reporting purposes, income before income taxes includes the following components: Year Ended December 31 2015 2014 2013 United States $ 57,846 $ 57,651 $ 53,315 Foreign (5,873 ) (4,045 ) 4,927 Income before income taxes $ 51,973 $ 53,606 $ 58,242 |
Provision for income tax | The provision for income taxes consists of the following: Year Ended December 31 2015 2014 2013 Current provision (benefit): Federal $ 19,758 $ 18,713 $ 16,239 State 2,553 2,992 2,785 Foreign 255 243 2,664 Total current provision 22,566 21,948 21,688 Deferred benefit: Federal (1,183 ) (1,627 ) (885 ) State (275 ) (222 ) (923 ) Foreign (1,101 ) (699 ) (852 ) Total deferred benefit (2,559 ) (2,548 ) (2,660 ) Total provision (benefit): Federal 18,575 17,086 15,354 State 2,278 2,770 1,862 Foreign (846 ) (456 ) 1,812 Total tax provision $ 20,007 $ 19,400 $ 19,028 |
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 2015 2014 2013 Tax at the statutory federal income tax rate $ 18,191 $ 18,762 $ 20,385 Qualified production activity deduction (1,174 ) (1,360 ) (1,395 ) State income tax, net of federal income tax 1,386 1,727 1,105 Other permanent differences 393 840 464 Research and development tax credits (291 ) (1,323 ) (2,054 ) Change in valuation allowance 2,036 1,675 810 Other items (534 ) (921 ) (287 ) Total tax provision $ 20,007 $ 19,400 $ 19,028 |
Significant components of company's deferred tax assets and liabilities | Significant components of the Company’s deferred tax assets and liabilities are as follows: December 31 2015 2014 Deferred tax assets: Inventory reserves $ 6,696 $ 6,539 Warranty reserves 2,774 2,988 Bad debt reserves 409 598 State tax loss carryforwards 3,006 2,377 Accrued vacation 2,055 2,060 SERP 275 1,231 Deferred compensation 1,328 1,255 Restricted stock units 1,893 2,256 Foreign exchange gains/losses 4,549 3,111 Pension and post-employment benefits 2,232 2,197 Foreign deferred tax assets 2,773 3,311 Foreign net operating losses 5,134 3,168 Other 3,460 3,267 Valuation allowances (8,065 ) (6,029 ) Total deferred tax assets 28,519 28,329 Deferred tax liabilities: Property and equipment 17,616 19,394 Amortization 1,019 1,087 Goodwill 1,917 2,014 Pension 1,305 1,313 Foreign tax rate differential -- 2,236 Foreign deferred tax liabilities 2,815 3,820 Total deferred tax liabilities 24,672 29,864 Total net deferred assets (liabilities) $ 3,847 $ (1,535 ) |
Reconciliation of unrecognized tax benefit | A reconciliation of the beginning and ending unrecognized tax benefits excluding interest and penalties is as follows: Year Ended December 31 2015 2014 2013 Balance, beginning of year $ 2,585 $ 1,933 $ 2,095 Additions for tax positions related to the current year 206 127 102 Additions for tax positions related to prior years 549 525 128 Reductions due to lapse of statutes of limitations (162 ) -- (149 ) Decreases related to settlements with tax authorities (2,575 ) -- (243 ) Balance, end of year $ 603 $ 2,585 $ 1,933 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Shareholders' Equity [Abstract] | |
Changes in restricted stock units | Changes in restricted stock units during the year ended December 31, 2015 are as follows: 2015 Weighted Average Grant Date Fair Value Unvested restricted stock units, beginning of year 197 $ 33.54 Units granted 22 42.77 Units forfeited (6 ) 39.63 Units vested (66 ) 28.70 Unvested restricted stock units, end of year 147 36.83 |
Operations by Industry Segmen42
Operations by Industry Segment and Geographic Area (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 2015 Infrastructure Group Aggregate and Mining Group Energy Group Corporate Total Revenues from external customers $ 428,737 $ 370,813 $ 183,607 $ -- $ 983,157 Intersegment revenues 22,947 28,701 16,010 -- 67,658 Interest expense 258 1,005 10 338 1,611 Depreciation and amortization 6,907 10,719 5,553 899 24,078 Income taxes 1,224 764 (129 ) 18,148 20,007 Profit (loss) 33,890 30,690 3,609 (36,623 ) 31,566 Assets 567,936 496,089 256,978 306,511 1,627,514 Capital expenditures 8,043 8,807 4,049 389 21,288 Segment information for 2014 Infrastructure Group Aggregate and Mining Group Energy Group Corporate Total 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 539,794 494,428 244,003 302,082 1,580,307 Capital expenditures 5,375 16,169 2,875 413 24,832 Segment information for 2013 Infrastructure Group Aggregate and Mining Group Energy Group Corporate Total 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 |
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: 2015 2014 2013 Net income attributable to controlling interest Total profit for reportable segments $ 68,189 $ 72,693 $ 69,850 Corporate expenses, net (36,623 ) (35,270 ) (30,367 ) Net (income) loss attributable to non-controlling interest 831 252 (172 ) Recapture (elimination) of intersegment profit 400 (3,217 ) (269 ) Total consolidated net income attributable to controlling interest $ 32,797 $ 34,458 $ 39,042 Assets Total assets for reportable segments $ 1,321,003 $ 1,278,225 $ 1,153,785 Corporate assets 306,511 302,082 315,560 Elimination of intercompany profit in inventory (7,496 ) (7,896 ) (4,679 ) Elimination of intercompany receivables (583,834 ) (515,625 ) (482,768 ) Elimination of investment in subsidiaries (223,500 ) (227,051 ) (195,199 ) Other eliminations (35,331 ) (27,470 ) (37,408 ) Total consolidated assets $ 777,353 $ 802,265 $ 749,291 |
Sales into major geographic regions | Sales into major geographic regions were as follows: Year Ended December 31 2015 2014 2013 United States $ 722,287 $ 654,230 $ 599,054 Canada 54,321 61,898 70,991 Africa 45,671 47,940 62,911 South America (excluding Brazil) 32,454 49,797 33,526 Australia and Oceania 29,995 34,772 47,505 Other European Countries 23,867 12,365 15,428 Middle East 18,995 13,327 6,699 Other Asian Countries 9,513 17,018 5,836 Russia 8,466 25,589 17,440 Brazil 8,376 12,869 11,620 Post-Soviet States (excluding Russia) 8,345 8,245 25,849 Mexico 6,990 9,993 15,917 Central America (excluding Mexico) 4,404 9,275 5,620 Japan and Korea 3,574 4,377 1,749 India 2,706 1,743 3,672 West Indies 1,532 4,478 5,294 China 1,330 7,451 3,857 Other 331 228 30 Total foreign 260,870 321,365 333,944 Total consolidated sales $ 983,157 $ 975,595 $ 932,998 |
Long-lived assets by major geographic region | Long-lived assets by major geographic region are as follows: December 31 2015 2014 United States $ 141,727 $ 150,425 Brazil 9,780 14,798 South Africa 5,116 7,295 Australia 4,351 5,111 Northern Ireland 5,116 5,065 Canada 2,987 3,592 Germany 1,129 1,324 Total foreign 28,479 37,185 Total $ 170,206 $ 187,610 |
Accumulated Other Comprehensi43
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Components of accumulated other comprehensive loss | The balance of related after-tax components comprising accumulated other comprehensive loss is summarized below: December 31 2015 2014 Foreign currency translation adjustment $ (19,891 ) $ (9,384 ) Unrecognized pension and post-retirement benefit cost, net of tax of $2,232 and $2,197, respectively (3,673 ) (3,531 ) Accumulated other comprehensive loss $ (23,564 ) $ (12,915 ) |
Other Income (Expense) Net (Tab
Other Income (Expense) Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Income (Expense) - Net [Abstract] | |
Schedule of other income (expense), net | Other income (expense), net consists of the following: Year Ended December 31 2015 2014 2013 Investment income (loss) $ (381 ) $ 64 $ 853 Licensing fees 641 831 764 Income from life insurance policies 1,204 -- -- Other 1,591 312 320 Total $ 3,055 $ 1,207 $ 1,937 |
Summary of Significant Accoun45
Summary of Significant Accounting Policies (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Foreign Currency Translation [Abstract] | |||
Foreign currency transaction gains and (losses), net | $ (1,377) | $ (1,971) | $ (522) |
Cash and Cash Equivalents [Abstract] | |||
Maximum time period for liquid investments to be considered cash equivalents | 3 months | ||
Allowance for doubtful accounts [Roll Forward] | |||
Allowance balance, beginning of year | $ 2,248 | 1,708 | 2,143 |
Provision for doubtful accounts | 18 | 1,011 | 629 |
Write offs | (357) | (465) | (1,042) |
Other | (72) | (6) | (22) |
Allowance balance, end of year | 1,837 | 2,248 | 1,708 |
Advertising Expense [Abstract] | |||
Advertising costs | $ 4,231 | $ 3,657 | $ 3,770 |
Product Warranty Reserve [Abstract] | |||
Product warranty reserve term, minimum | 3 months | ||
Standard product warranty term, maximum | 2 years | ||
Denominator [Abstract] | |||
Denominator for basic earnings per share (in shares) | 22,934 | 22,819 | 22,749 |
Effect of dilutive securities [Abstract] | |||
Employee stock options and restricted stock units (in shares) | 123 | 176 | 218 |
Supplemental executive retirement plan (in shares) | 63 | 110 | 114 |
Denominator for diluted earnings per share (in shares) | 23,120 | 23,105 | 23,081 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Retained earnings | $ 490,933 | $ 467,337 | |
Prepaid expenses | $ 26,521 | 17,933 | |
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 | 96.00% | ||
Astec do Brasil Fabricacao de Equipamentos LTDA [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Percentage ownership of subsidiary | 78.00% | ||
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 | 3,000 | ||
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 | ||
Restatement Adjustment [Member] | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Retained earnings | (3,200) | $ (3,200) | $ (3,200) |
Prepaid expenses | $ (3,200) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Inventories [Abstract] | ||
Raw materials and parts | $ 141,967 | $ 149,171 |
Work-in-process | 113,859 | 105,163 |
Finished goods | 104,879 | 102,235 |
Used equipment | 24,071 | 31,266 |
Total | $ 384,776 | $ 387,835 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments included in Level 2 were transferred to Level 1 | $ 292 | |
Investments included in Level 1 were transferred to Level 2 | 141 | |
Measured at Fair Value on a Recurring Basis [Member] | ||
Financial Assets [Abstract] | ||
Derivative financial instruments | 1,265 | $ 547 |
Total financial assets | 14,344 | 13,856 |
Financial Liabilities [Abstract] | ||
SERP liabilities | 5,869 | 8,128 |
Total financial liabilities | 5,869 | 8,128 |
Measured at Fair Value on a Recurring Basis [Member] | SERP Money Market Fund [Member] | ||
Financial Assets [Abstract] | ||
Investments | 445 | 532 |
Measured at Fair Value on a Recurring Basis [Member] | SERP Mutual Funds [Member] | ||
Financial Assets [Abstract] | ||
Investments | 2,864 | 3,195 |
Measured at Fair Value on a Recurring Basis [Member] | Preferred Stocks [Member] | ||
Financial Assets [Abstract] | ||
Investments | 742 | 973 |
Measured at Fair Value on a Recurring Basis [Member] | Corporate Bonds [Member] | ||
Financial Assets [Abstract] | ||
Investments | 3,897 | 4,009 |
Measured at Fair Value on a Recurring Basis [Member] | Municipal Bonds [Member] | ||
Financial Assets [Abstract] | ||
Investments | 1,811 | 2,060 |
Measured at Fair Value on a Recurring Basis [Member] | Floating Rate Notes [Member] | ||
Financial Assets [Abstract] | ||
Investments | 84 | 422 |
Measured at Fair Value on a Recurring Basis [Member] | US Treasury Bills [Member] | ||
Financial Assets [Abstract] | ||
Investments | 404 | 622 |
Measured at Fair Value on a Recurring Basis [Member] | Saving Bonds [Member] | ||
Financial Assets [Abstract] | ||
Investments | 77 | |
Measured at Fair Value on a Recurring Basis [Member] | Other Government Bonds [Member] | ||
Financial Assets [Abstract] | ||
Investments | 2,755 | 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 | 8,372 | 8,247 |
Financial Liabilities [Abstract] | ||
SERP liabilities | 0 | 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 | 445 | 532 |
Measured at Fair Value on a Recurring Basis [Member] | Level 1 [Member] | SERP Mutual Funds [Member] | ||
Financial Assets [Abstract] | ||
Investments | 2,864 | 3,195 |
Measured at Fair Value on a Recurring Basis [Member] | Level 1 [Member] | Preferred Stocks [Member] | ||
Financial Assets [Abstract] | ||
Investments | 742 | 973 |
Measured at Fair Value on a Recurring Basis [Member] | Level 1 [Member] | Corporate Bonds [Member] | ||
Financial Assets [Abstract] | ||
Investments | 3,756 | 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 | 84 | 100 |
Measured at Fair Value on a Recurring Basis [Member] | Level 1 [Member] | US Treasury Bills [Member] | ||
Financial Assets [Abstract] | ||
Investments | 404 | 622 |
Measured at Fair Value on a Recurring Basis [Member] | Level 1 [Member] | Saving Bonds [Member] | ||
Financial Assets [Abstract] | ||
Investments | 77 | |
Measured at Fair Value on a Recurring Basis [Member] | Level 1 [Member] | Other Government Bonds [Member] | ||
Financial Assets [Abstract] | ||
Investments | 0 | 0 |
Measured at Fair Value on a Recurring Basis [Member] | Level 2 [Member] | ||
Financial Assets [Abstract] | ||
Derivative financial instruments | 1,265 | 547 |
Total financial assets | 5,972 | 5,609 |
Financial Liabilities [Abstract] | ||
SERP liabilities | 5,869 | 8,128 |
Total financial liabilities | 5,869 | 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 | 141 | 1,184 |
Measured at Fair Value on a Recurring Basis [Member] | Level 2 [Member] | Municipal Bonds [Member] | ||
Financial Assets [Abstract] | ||
Investments | 1,811 | 2,060 |
Measured at Fair Value on a Recurring Basis [Member] | Level 2 [Member] | Floating Rate Notes [Member] | ||
Financial Assets [Abstract] | ||
Investments | 0 | 322 |
Measured at Fair Value on a Recurring Basis [Member] | Level 2 [Member] | US Treasury Bills [Member] | ||
Financial Assets [Abstract] | ||
Investments | 0 | 0 |
Measured at Fair Value on a Recurring Basis [Member] | Level 2 [Member] | Saving Bonds [Member] | ||
Financial Assets [Abstract] | ||
Investments | 0 | |
Measured at Fair Value on a Recurring Basis [Member] | Level 2 [Member] | Other Government Bonds [Member] | ||
Financial Assets [Abstract] | ||
Investments | 2,755 | 1,496 |
Measured at Fair Value on a Recurring Basis [Member] | Level 3 [Member] | ||
Financial Assets [Abstract] | ||
Derivative financial instruments | 0 | 0 |
Total financial assets | 0 | 0 |
Financial Liabilities [Abstract] | ||
SERP liabilities | 0 | 0 |
Total financial liabilities | 0 | 0 |
Measured at Fair Value on a Recurring Basis [Member] | Level 3 [Member] | SERP Money Market Fund [Member] | ||
Financial Assets [Abstract] | ||
Investments | 0 | 0 |
Measured at Fair Value on a Recurring Basis [Member] | Level 3 [Member] | SERP Mutual Funds [Member] | ||
Financial Assets [Abstract] | ||
Investments | 0 | 0 |
Measured at Fair Value on a Recurring Basis [Member] | Level 3 [Member] | Preferred Stocks [Member] | ||
Financial Assets [Abstract] | ||
Investments | 0 | 0 |
Measured at Fair Value on a Recurring Basis [Member] | Level 3 [Member] | Corporate Bonds [Member] | ||
Financial Assets [Abstract] | ||
Investments | 0 | 0 |
Measured at Fair Value on a Recurring Basis [Member] | Level 3 [Member] | Municipal Bonds [Member] | ||
Financial Assets [Abstract] | ||
Investments | 0 | 0 |
Measured at Fair Value on a Recurring Basis [Member] | Level 3 [Member] | Floating Rate Notes [Member] | ||
Financial Assets [Abstract] | ||
Investments | 0 | 0 |
Measured at Fair Value on a Recurring Basis [Member] | Level 3 [Member] | US Treasury Bills [Member] | ||
Financial Assets [Abstract] | ||
Investments | 0 | 0 |
Measured at Fair Value on a Recurring Basis [Member] | Level 3 [Member] | Saving Bonds [Member] | ||
Financial Assets [Abstract] | ||
Investments | 0 | |
Measured at Fair Value on a Recurring Basis [Member] | Level 3 [Member] | Other Government Bonds [Member] | ||
Financial Assets [Abstract] | ||
Investments | $ 0 | $ 0 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized Cost | $ 13,423 | $ 12,908 | |
Gross Unrealized Gains | 116 | 481 | |
Gross Unrealized Losses | 460 | 80 | |
Fair Value (Net Carrying Amount) | 13,079 | 13,309 | |
Net unrealized gains or (losses) on investments | (429) | (17) | $ 175 |
Trading Equity Securities [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized Cost | 4,160 | 4,335 | |
Gross Unrealized Gains | 79 | 374 | |
Gross Unrealized Losses | 188 | 9 | |
Fair Value (Net Carrying Amount) | 4,051 | 4,700 | |
Trading Debt Securities [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized Cost | 9,263 | 8,573 | |
Gross Unrealized Gains | 37 | 107 | |
Gross Unrealized Losses | 272 | 71 | |
Fair Value (Net Carrying Amount) | $ 9,028 | $ 8,609 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Roll Forward] | ||
Beginning Balance | $ 31,995 | $ 15,057 |
Acquisition | 18,256 | |
Purchase price adjustment | (178) | |
Foreign currency translation | (982) | (1,318) |
Ending Balance | 30,835 | 31,995 |
Infrastructure Group [Member] | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 8,584 | 8,719 |
Acquisition | 0 | |
Purchase price adjustment | 0 | |
Foreign currency translation | (103) | (135) |
Ending Balance | 8,481 | 8,584 |
Aggregate and Mining Group [Member] | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 23,411 | 6,338 |
Acquisition | 18,256 | |
Purchase price adjustment | (178) | |
Foreign currency translation | (879) | (1,183) |
Ending Balance | 22,354 | 23,411 |
Energy Group [Member] | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 0 | 0 |
Acquisition | 0 | |
Purchase price adjustment | 0 | |
Foreign currency translation | 0 | 0 |
Ending Balance | 0 | 0 |
Corporate [Member] | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 0 | 0 |
Acquisition | 0 | |
Purchase price adjustment | 0 | |
Foreign currency translation | 0 | 0 |
Ending Balance | $ 0 | $ 0 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Intangible Assets [Abstract] | |||
Amortization expense on intangible assets | $ 2,953 | $ 2,735 | $ 1,066 |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Value | 22,934 | 24,055 | |
Accumulated Amortization | 9,357 | 6,783 | |
Net Carrying Value | 13,577 | 17,272 | |
Expected amortization expense over the next five years [Abstract] | |||
2,016 | 2,148 | ||
2,017 | 2,012 | ||
2,018 | 1,751 | ||
2,019 | 1,223 | ||
2,020 | 1,140 | ||
Thereafter | 5,303 | ||
Dealer Network and Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Value | 13,111 | 13,600 | |
Accumulated Amortization | 5,552 | 4,245 | |
Net Carrying Value | 7,559 | 9,355 | |
Trade Names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Value | 4,857 | 4,984 | |
Accumulated Amortization | 956 | 645 | |
Net Carrying Value | 3,901 | 4,339 | |
Other [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Value | 4,966 | 5,471 | |
Accumulated Amortization | 2,849 | 1,893 | |
Net Carrying Value | $ 2,117 | $ 3,578 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 31, 2015 | |
Property, Plant and Equipment [Line Items] | ||||
Accumulated depreciation | $ (203,471) | $ (222,001) | ||
Total | 170,206 | 187,610 | ||
Depreciation expense | 20,744 | 21,343 | $ 20,966 | |
Land [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 12,628 | 14,024 | ||
Building and Land Improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 132,353 | 146,266 | ||
Manufacturing and Office Equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 214,545 | 235,623 | ||
Aviation Equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 14,151 | $ 13,698 | ||
Loudon Facility [Member] | ||||
Long Lived Assets Held-for-sale [Line Items] | ||||
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 | |||
Land and Building [Member] | ||||
Long Lived Assets Held-for-sale [Line Items] | ||||
Net sales price of facility | $ 9,599 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Leases [Abstract] | |||
Rental expense charged to operations under operating leases | $ 2,786 | $ 2,544 | $ 2,436 |
Minimum rental commitments for all noncancelable operating leases [Abstract] | |||
2,016 | 1,670 | ||
2,017 | 1,433 | ||
2,018 | 535 | ||
2,019 | 393 | ||
2,020 | 280 | ||
Thereafter | 131 | ||
Total | $ 4,442 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Astec Brazil's loans [Abstract] | ||
Current maturities of long-term debt | $ 4,528 | $ 1,027 |
Wells Fargo [Member] | ||
Line of Credit Facility [Line Items] | ||
Term of credit facility | 5 years | |
Contingent liabilities for letters of credit issued on behalf of foreign subsidiaries | $ 17,684 | |
Line of credit, additional borrowing capacity | 82,316 | |
Loan amount | $ 0 | |
Interest rate description | daily one-month LIBOR rate plus a 0.75% margin | |
Interest rate at period end | 1.18% | |
Wells Fargo [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Amount of credit facility | $ 100,000 | |
Sub-limit for letters of credit | $ 25,000 | |
Wells Fargo [Member] | LIBOR [Member] | ||
Line of Credit Facility [Line Items] | ||
Additional rate over base, percentage | 0.75% | |
Unused facility fee as a percentage of line of credit | 0.175% | |
Equipment Financing Loans [Member] | Astec Brazil [Member] | ||
Line of Credit Facility [Line Items] | ||
Loan amount | $ 1,401 | |
Osborn [Member] | ||
Line of Credit Facility [Line Items] | ||
Amount of credit facility | $ 6,123 | |
Unused facility fee as a percentage of line of credit | 0.75% | |
Performance bank guarantee, subsidiary obligations to fulfill contracts | $ 686 | |
Under utilized facility resulting in unused facility fee | 50.00% | |
Available credit under the facility | $ 5,437 | |
Interest rate at period end | 9.50% | |
Osborn [Member] | South American Prime Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis Spread on Variable Rate | (0.25%) | |
Astec Brazil [Member] | Equipment Financing Loans [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Maturity date | Sep. 30, 2018 | |
Astec Brazil [Member] | Equipment Financing Loans [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Maturity date | Apr. 30, 2020 | |
Astec Brazil Working Capital Loans [Member] | ||
Line of Credit Facility [Line Items] | ||
Borrowing outstanding | $ 8,281 | |
Astec Brazil's loans [Abstract] | ||
2,016 | 4,528 | |
2,017 | 2,556 | |
2,018 | 1,326 | |
2,019 | 346 | |
2,020 | 215 | |
Thereafter | $ 711 | |
Astec Brazil Working Capital Loans [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Maturity date | Dec. 31, 2016 | |
Interest rate at period end | 10.40% | |
Astec Brazil Working Capital Loans [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Maturity date | Apr. 30, 2024 | |
Interest rate at period end | 20.80% | |
Astec Brazil Working Capital Loans [Member] | Wells Fargo [Member] | ||
Line of Credit Facility [Line Items] | ||
Maturity date | Apr. 30, 2017 | |
Astec Brazil Working Capital Loans [Member] | Aztec Wells Fargo partially guarantee [Member] | ||
Line of Credit Facility [Line Items] | ||
Contingent liabilities for letters of credit issued on behalf of foreign subsidiaries | $ 8,674 | |
Astec Brazil Equipment Financing [Member] | ||
Line of Credit Facility [Line Items] | ||
Term of credit facility | 5 years | |
Minimum interest rate | 3.50% | |
Maximum interest rate | 16.30% | |
Astec Brazil Working Capital Loans and Equipment Financing [Member] | ||
Astec Brazil's loans [Abstract] | ||
Current maturities of long-term debt | $ 4,528 | |
Long-term debt, current and non-current maturities | $ 5,154 |
Product Warranty Reserves (Deta
Product Warranty Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
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 | $ 10,032 | $ 12,716 | $ 11,052 |
Warranty liabilities accrued | 13,743 | 12,796 | 12,199 |
Warranty liabilities settled | (14,177) | (15,563) | (10,171) |
Other | (498) | 83 | (364) |
Reserve balance, end of year | $ 9,100 | $ 10,032 | $ 12,716 |
Accrued Loss Reserves (Details)
Accrued Loss Reserves (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accrued Loss Reserves [Abstract] | ||
Total accrued loss reserves | $ 7,663 | $ 7,562 |
Accrued loss reserves included in other long-term liabilities | $ 4,825 | $ 4,512 |
Pension and Retirement Plans (D
Pension and Retirement Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Actual allocations | 100.00% | 100.00% | |
Equity Securities [Member] | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Actual allocations | 66.00% | 65.60% | |
Target Plan Asset Allocations, Minimum | 53.00% | 53.00% | |
Target Plan Asset Allocations, Maximum | 73.00% | 73.00% | |
Debt Securities [Member] | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Actual allocations | 30.70% | 30.10% | |
Target Plan Asset Allocations, Minimum | 21.00% | 21.00% | |
Target Plan Asset Allocations, Maximum | 41.00% | 41.00% | |
Money Market Funds [Member] | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Actual allocations | 3.30% | 4.30% | |
Target Plan Asset Allocations, Minimum | 0.00% | 0.00% | |
Target Plan Asset Allocations, Maximum | 15.00% | 15.00% | |
Pension Benefits [Member] | |||
Change in benefit obligation [Roll forward] | |||
Benefit obligation, beginning of year | $ 15,986 | $ 13,815 | |
Interest cost | 596 | 620 | $ 561 |
Actuarial (gain)/loss | (417) | 2,118 | |
Benefits paid | (600) | (567) | |
Benefit obligation, end of year | 15,565 | 15,986 | 13,815 |
Accumulated benefit obligation | 15,565 | 15,986 | |
Change in plan assets [Roll forward] | |||
Fair value of plan assets, beginning of year | 13,283 | 12,693 | |
Actual gain/(loss) on plan assets | (279) | 819 | |
Employer contribution | 284 | 338 | |
Benefits paid | (600) | (567) | |
Fair value of plan assets, end of year | 12,688 | 13,283 | 12,693 |
Funded status, end of year | (2,877) | (2,703) | |
Amounts recognized in the consolidated balance sheets [Abstract] | |||
Noncurrent liabilities | (2,877) | (2,703) | |
Net amount recognized | (2,877) | (2,703) | |
Amounts recognized in accumulated other comprehensive income consist of [Abstract] | |||
Net loss | 6,098 | 5,896 | |
Net amount recognized | $ 6,098 | $ 5,896 | |
Weighted average assumptions used to determine benefit obligations as of December 31 [Abstract] | |||
Discount rate | 4.28% | 3.81% | |
Expected return on plan assets | 7.00% | 7.00% | |
Rate of compensation increase | |||
Components of net periodic benefit cost [Abstract] | |||
Interest cost | $ 596 | $ 620 | 561 |
Expected return on plan assets | (840) | (816) | (693) |
Amortization of actuarial loss | 500 | 295 | 536 |
Net periodic benefit cost | 256 | 99 | 404 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income [Abstract] | |||
Net actuarial (gain)/loss for the year | 702 | 2,115 | (2,109) |
Amortization of net loss | (500) | (295) | (536) |
Total recognized in other comprehensive income | 202 | 1,820 | (2,645) |
Total recognized in net periodic benefit cost and other comprehensive income | $ 458 | $ 1,919 | $ (2,241) |
Weighted average assumptions used to determine net periodic benefit cost for years ended December 31 [Abstract] | |||
Discount rate | 3.81% | 4.60% | 3.82% |
Expected return on plan assets | 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 | (480) | ||
Estimated future benefit payments [Abstract] | |||
2,016 | 730 | ||
2,017 | 730 | ||
2,018 | 790 | ||
2,019 | 840 | ||
2,020 | 870 | ||
2021 - 2025 | $ 4,670 |
Pension and Retirement Plans, D
Pension and Retirement Plans, Deferred Compensation Arrangement with Individual, Postretirement Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Company's 401(K) contributions for the year | $ 5,292 | $ 5,134 | $ 4,941 |
SERP [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Change in the fair market value of Company stock held in the SERP | 241 | 74 | $ 601 |
Cost [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Plan Assets | 5,180 | 6,297 | |
Cost [Member] | Company Stock [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Plan Assets | 1,778 | 2,929 | |
Cost [Member] | Equity Securities [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Plan Assets | 3,402 | 3,368 | |
Market [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Plan Assets | 5,869 | 8,128 | |
Market [Member] | Company Stock [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Plan Assets | 2,560 | 4,401 | |
Market [Member] | Equity Securities [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Plan Assets | $ 3,309 | $ 3,727 |
Derivative Financial Instrume58
Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 935 | $ 434 |
Other Noncurrent Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 330 | $ 113 |
Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 22 | |
Foreign Exchange Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Average notional amount | $ 12,561 |
Derivative Financial Instrume59
Derivative Financial Instruments, Gain (Loss) recognized in income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
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 | $ 606 | $ 438 | $ 1,061 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income before income taxes [Abstract] | |||
United States | $ 57,846 | $ 57,651 | $ 53,315 |
Foreign | (5,873) | (4,045) | 4,927 |
Income before income taxes | 51,973 | 53,606 | 58,242 |
Current provision (benefit) [Abstract] | |||
Federal | 19,758 | 18,713 | 16,239 |
State | 2,553 | 2,992 | 2,785 |
Foreign | 255 | 243 | 2,664 |
Total current provision | 22,566 | 21,948 | 21,688 |
Deferred benefit [Abstract] | |||
Federal | (1,183) | (1,627) | (885) |
State | (275) | (222) | (923) |
Foreign | (1,101) | (699) | (852) |
Total deferred benefit | (2,559) | (2,548) | (2,660) |
Total provision (benefit) [Abstract] | |||
Federal | 18,575 | 17,086 | 15,354 |
State | 2,278 | 2,770 | 1,862 |
Foreign | (846) | (456) | 1,812 |
Total tax provision | 20,007 | 19,400 | 19,028 |
Reconciliation of provision for income taxes [Abstract] | |||
Tax at the statutory federal income tax rate | 18,191 | 18,762 | 20,385 |
Qualified production activity deduction | (1,174) | (1,360) | (1,395) |
State income tax, net of federal income tax | 1,386 | 1,727 | 1,105 |
Other permanent differences | 393 | 840 | 464 |
Research and development tax credits | (291) | (1,323) | (2,054) |
Change in valuation allowance | 2,036 | 1,675 | 810 |
Other items | (534) | (921) | (287) |
Total tax provision | 20,007 | 19,400 | 19,028 |
Deferred tax assets [Abstract] | |||
Inventory reserves | 6,696 | 6,539 | |
Warranty reserves | 2,774 | 2,988 | |
Bad debt reserves | 409 | 598 | |
State tax loss carryforwards | 3,006 | 2,377 | |
Accrued vacation | 2,055 | 2,060 | |
SERP | 275 | 1,231 | |
Deferred compensation | 1,328 | 1,255 | |
Restricted stock units | 1,893 | 2,256 | |
Foreign exchange gains/losses | 4,549 | 3,111 | |
Pension and post-employment benefits | 2,232 | 2,197 | |
Foreign deferred tax assets | 2,773 | 3,311 | |
Foreign net operating losses | 5,134 | 3,168 | |
Other | 3,460 | 3,267 | |
Valuation allowances | (8,065) | (6,029) | |
Total deferred tax assets | 28,519 | 28,329 | |
Deferred tax liabilities [Abstract] | |||
Property and equipment | 17,616 | 19,394 | |
Amortization | 1,019 | 1,087 | |
Goodwill | 1,917 | 2,014 | |
Pension | 1,305 | 1,313 | |
Foreign tax rate differential | 0 | 2,236 | |
Foreign deferred tax liabilities | 2,815 | 3,820 | |
Total deferred tax liabilities | 24,672 | 29,864 | |
Total net deferred assets (liabilities) | 3,847 | (1,535) | |
Operating Loss Carryforwards [Line Items] | |||
Recognized tax benefits related to penalties and interest settled for less than previously accrued | 123 | 107 | |
Unrecognized tax benefits, if recognized that would effect the effective rate | $ 618 | 2,722 | |
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 | $ 2,585 | 1,933 | 2,095 |
Additions for tax positions related to the current year | 206 | 127 | 102 |
Additions for tax positions related to prior years | 549 | 525 | 128 |
Reductions due to lapse of statutes of limitations | (162) | 0 | (149) |
Decreases related to settlements with tax authorities | (2,575) | 0 | (243) |
Balance, end of year | 603 | $ 2,585 | $ 1,933 |
Breaker Technology, Ltd. [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Undistributed earnings of foreign subsidiaries | 9,300 | ||
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 | 2,111 | ||
Increase in other deferred tax assets valuation allowance | $ (75) | ||
Internal Revenue Service (IRS) [Member] | Minimum [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards, Expiration Dates | Dec. 31, 2015 | ||
Internal Revenue Service (IRS) [Member] | Maximum [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards, Expiration Dates | Dec. 31, 2029 | ||
U.S. Federal [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Period of exemption from income tax examination | 2,013 | ||
State [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | $ 66,501 | ||
Tax credit carryforward | $ 864 | ||
Period of exemption from income tax examination | 2,008 | ||
Foreign Tax Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | $ 16,062 | ||
Period of exemption from income tax examination | 2,008 |
Contingent Matters (Details)
Contingent Matters (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)Party | |
Contingent Matters [Abstract] | |
Liability recorded related to guarantees | $ 133 |
Guarantor Obligations [Line Items] | |
Contingent liabilities for letters of credit | 19,006 |
Contingent liability for customer debt | $ 1,881 |
Maximum maturity date of customer debt | Feb. 28, 2019 |
Number of parties involved in EPA cleanup | Party | 300 |
Aztec Wells Fargo partially guarantee [Member] | |
Guarantor Obligations [Line Items] | |
Contingent liabilities for letters of credit issued on behalf of foreign subsidiaries | $ 17,684 |
Letter of Credit Wells Fargo [Member] | |
Guarantor Obligations [Line Items] | |
Contingent liabilities for letters of credit | $ 17,684 |
Line of credit facility, maximum expiration date | Nov. 30, 2017 |
Astec Brazil Working Capital Loans [Member] | Aztec Wells Fargo partially guarantee [Member] | |
Guarantor Obligations [Line Items] | |
Contingent liabilities for letters of credit issued on behalf of foreign subsidiaries | $ 8,674 |
Letters of Credit Osborn [Member] | |
Guarantor Obligations [Line Items] | |
Performance bank guarantee, subsidiary obligations to fulfill contracts | 686 |
Letters of Credit Astec Australia [Member] | |
Guarantor Obligations [Line Items] | |
Performance bank guarantee, subsidiary obligations to fulfill contracts | 18 |
Letters of Credit Telestack [Member] | |
Guarantor Obligations [Line Items] | |
Performance bank guarantee, subsidiary obligations to fulfill contracts | $ 618 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - Restricted Stock Units (RSUs) [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restricted stock units under the 2006 and 2011 Incentive Plan [Abstract] | |||
Award vesting period | 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 | $ 2,785 | $ 3,045 | $ 2,405 |
Increase (decrease) in tax benefit | 336 | 470 | (77) |
Compensation expense | 1,019 | 961 | 1,231 |
Income tax benefits | 362 | 348 | 417 |
Anticipated additional compensation costs to be recognized in future periods | $ 2,016 | ||
Weighted average period over which additional compensation cost will be expensed | 4 years | ||
Grant date fair value of restricted stock units granted | $ 937 | $ 561 | $ 763 |
Restricted stock units [Roll Forward] | |||
Unvested restricted stock units, beginning of year (in shares) | 197 | ||
Units granted (in shares) | 22 | ||
Units forfeited (in shares) | (6) | ||
Units vested (in shares) | (66) | ||
Unvested restricted stock units, end of year (in shares) | 147 | 197 | |
Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted average grant date fair value, beginning balance (in dollars per share) | $ 33.54 | ||
Weighted average grant date fair value, granted (in dollars per share) | 42.77 | ||
Weighted average grant date fair value, forfeited (in dollars per share) | 39.63 | ||
Weighted average grant date fair value, vested (in dollars per share) | 28.70 | ||
Weighted average grant date fair value, ending balance (in dollars per share) | $ 36.83 | $ 33.54 |
Operations by Industry Segmen63
Operations by Industry Segment and Geographic Area (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)SegmentBusinessunit | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Operations by Industry Segment and Geographic Area [Abstract] | |||
Number of reportable segments | Segment | 3 | ||
Sales [Abstract] | |||
Total consolidated sales | $ 983,157 | $ 975,595 | $ 932,998 |
Interest expense | 1,611 | 720 | 423 |
Depreciation and amortization | 24,078 | 24,376 | 22,265 |
Income taxes | 20,007 | 19,400 | 19,028 |
Profit (loss) | 31,566 | 37,423 | 39,483 |
Assets | 1,627,514 | 1,580,307 | 1,469,345 |
Capital expenditures | 21,288 | 24,832 | 27,673 |
Net income attributable to controlling interest [Abstract] | |||
Net (income) loss attributable to non-controlling interest | 831 | 252 | (172) |
Total consolidated net income attributable to controlling interest | 32,797 | 34,458 | 39,042 |
Assets [Abstract] | |||
Total assets | 777,353 | 802,265 | 749,291 |
Elimination of Intercompany Profit in Inventory [Member] | |||
Assets [Abstract] | |||
Total assets | (7,496) | (7,896) | (4,679) |
Elimination of Intercompany Receivables [Member] | |||
Assets [Abstract] | |||
Total assets | (583,834) | (515,625) | (482,768) |
Elimination of Investment in Subsidiaries [Member] | |||
Assets [Abstract] | |||
Total assets | $ (223,500) | (227,051) | (195,199) |
Infrastructure Group [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of business units | Businessunit | 5 | ||
Energy Group [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of business units | Businessunit | 4 | ||
Corporate Group [Member] | |||
Assets [Abstract] | |||
Total assets | $ 306,511 | 302,082 | 315,560 |
Aggregate and Mining Group [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of business units | Businessunit | 8 | ||
All Others [Member] | |||
Net income attributable to controlling interest [Abstract] | |||
Total profit (other losses) | $ (36,623) | (35,270) | (30,367) |
Reportable Segments [Member] | |||
Net income attributable to controlling interest [Abstract] | |||
Total profit (other losses) | 68,189 | 72,693 | 69,850 |
Assets [Abstract] | |||
Total assets | 1,321,003 | 1,278,225 | 1,153,785 |
Reportable Segments [Member] | Infrastructure Group [Member] | |||
Sales [Abstract] | |||
Total consolidated sales | 428,737 | 386,356 | 398,399 |
Interest expense | 258 | 31 | 13 |
Depreciation and amortization | 6,907 | 7,045 | 7,417 |
Income taxes | 1,224 | 1,365 | 1,567 |
Profit (loss) | 33,890 | 29,477 | 32,814 |
Assets | 567,936 | 539,794 | 502,831 |
Capital expenditures | 8,043 | 5,375 | 6,214 |
Reportable Segments [Member] | Energy Group [Member] | |||
Sales [Abstract] | |||
Total consolidated sales | 183,607 | 204,356 | 184,085 |
Interest expense | 10 | 11 | 4 |
Depreciation and amortization | 5,553 | 6,358 | 6,114 |
Income taxes | (129) | 348 | 46 |
Profit (loss) | 3,609 | 10,316 | 4,005 |
Assets | 256,978 | 244,003 | 223,389 |
Capital expenditures | 4,049 | 2,875 | 5,510 |
Reportable Segments [Member] | Corporate Group [Member] | |||
Sales [Abstract] | |||
Total consolidated sales | 0 | 0 | 0 |
Interest expense | 338 | 215 | 394 |
Depreciation and amortization | 899 | 853 | 828 |
Income taxes | 18,148 | 16,452 | 14,773 |
Profit (loss) | (36,623) | (35,270) | (30,367) |
Assets | 306,511 | 302,082 | 315,560 |
Capital expenditures | 389 | 413 | 300 |
Reportable Segments [Member] | Aggregate and Mining Group [Member] | |||
Sales [Abstract] | |||
Total consolidated sales | 370,813 | 384,883 | 350,514 |
Interest expense | 1,005 | 463 | 12 |
Depreciation and amortization | 10,719 | 10,120 | 7,906 |
Income taxes | 764 | 1,235 | 2,642 |
Profit (loss) | 30,690 | 32,900 | 33,031 |
Assets | 496,089 | 494,428 | 427,565 |
Capital expenditures | 8,807 | 16,169 | 15,649 |
Intersegment Eliminations [Member] | |||
Sales [Abstract] | |||
Total consolidated sales | 67,658 | 77,218 | 79,974 |
Net income attributable to controlling interest [Abstract] | |||
Total profit (other losses) | 400 | (3,217) | (269) |
Assets [Abstract] | |||
Total assets | (35,331) | (27,470) | (37,408) |
Intersegment Eliminations [Member] | Infrastructure Group [Member] | |||
Sales [Abstract] | |||
Total consolidated sales | 22,947 | 26,661 | 21,682 |
Intersegment Eliminations [Member] | Energy Group [Member] | |||
Sales [Abstract] | |||
Total consolidated sales | 16,010 | 17,548 | 12,857 |
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 | $ 28,701 | $ 33,009 | $ 45,435 |
Design Engineer Manufacture Market [Member] | Infrastructure Group [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of business units | Businessunit | 3 | ||
Company-owned Dealer [Member] | Infrastructure Group [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of business units | Businessunit | 2 |
Operations by Industry Segmen64
Operations by Industry Segment and Geographic Area, External Customers and Long-Lived Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total consolidated sales | $ 983,157 | $ 975,595 | $ 932,998 |
Long-lived assets by geographic region | 170,206 | 187,610 | |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total consolidated sales | 722,287 | 654,230 | 599,054 |
Long-lived assets by geographic region | 141,727 | 150,425 | |
Germany [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets by geographic region | 1,129 | 1,324 | |
Canada [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total consolidated sales | 54,321 | 61,898 | 70,991 |
Long-lived assets by geographic region | 2,987 | 3,592 | |
Australia [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets by geographic region | 4,351 | 5,111 | |
Africa [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total consolidated sales | 45,671 | 47,940 | 62,911 |
Australia and Oceana [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total consolidated sales | 29,995 | 34,772 | 47,505 |
South America (excluding Brazil) [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total consolidated sales | 32,454 | 49,797 | 33,526 |
Post-Soviet States (excluding Russia) [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total consolidated sales | 8,345 | 8,245 | 25,849 |
Russia [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total consolidated sales | 8,466 | 25,589 | 17,440 |
Mexico [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total consolidated sales | 6,990 | 9,993 | 15,917 |
Northern Ireland [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets by geographic region | 5,116 | 5,065 | |
Other European Countries [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total consolidated sales | 23,867 | 12,365 | 15,428 |
Brazil [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total consolidated sales | 8,376 | 12,869 | 11,620 |
Long-lived assets by geographic region | 9,780 | 14,798 | |
Middle East [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total consolidated sales | 18,995 | 13,327 | 6,699 |
Other Asian Countries [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total consolidated sales | 9,513 | 17,018 | 5,836 |
Central America (excluding Mexico) [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total consolidated sales | 4,404 | 9,275 | 5,620 |
West Indies [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total consolidated sales | 1,532 | 4,478 | 5,294 |
China [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total consolidated sales | 1,330 | 7,451 | 3,857 |
India [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total consolidated sales | 2,706 | 1,743 | 3,672 |
Japan and Korea [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total consolidated sales | 3,574 | 4,377 | 1,749 |
Other Foreign Countries [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total consolidated sales | 331 | 228 | 30 |
Total Foreign [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total consolidated sales | 260,870 | 321,365 | $ 333,944 |
Long-lived assets by geographic region | 28,479 | 37,185 | |
South Africa [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets by geographic region | $ 5,116 | $ 7,295 |
Accumulated Other Comprehensi65
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
After Tax components of accumulated comprehensive income [Abstract] | ||
Foreign currency translation adjustment | $ (19,891) | $ (9,384) |
Unrecognized pension and post-retirement benefit cost, net of tax of $2,232 and $2,197, respectively | (3,673) | (3,531) |
Accumulated other comprehensive loss | (23,564) | (12,915) |
Unrecognized pension and post-retirement benefit cost, tax | $ 2,232 | $ 2,197 |
Other Income (Expense) Net (Det
Other Income (Expense) Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Income (Expense) - Net [Abstract] | |||
Investment income (loss) | $ (381) | $ 64 | $ 853 |
Licensing fees | 641 | 831 | 764 |
Income from life insurance policies | 1,204 | 0 | 0 |
Other | 1,591 | 312 | 320 |
Total | $ 3,055 | $ 1,207 | $ 1,937 |
Business Combinations (Details)
Business Combinations (Details) - USD ($) $ in Thousands | Apr. 02, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 30,835 | $ 31,995 | $ 15,057 | |
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 | |||
Telestack Limited [Member] | ||||
Business Acquisition [Line Items] | ||||
Date of acquisition | Apr. 1, 2014 | |||
Percentages of stock acquired | 100.00% | |||
Cash purchase price | $ 36,183 | |||
Amount held in escrow | $ 2,500 | |||
Period of time for amount held in escrow | 1 year | |||
Decrease in purchase price | $ (178) | |||
Goodwill | 18,078 | |||
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 |