Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 19, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | ASTEC INDUSTRIES INC | ||
Entity Central Index Key | 0000792987 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Ex Transition Period | false | ||
Entity Public Float | $ 1,345,595,000 | ||
Entity Common Stock, Shares Outstanding | 22,518,019 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 25,821 | $ 62,280 |
Investments | 1,946 | 1,624 |
Trade receivables, net | 130,569 | 114,786 |
Other receivables | 3,409 | 5,166 |
Inventories | 355,944 | 391,379 |
Prepaid income taxes | 24,459 | 12,556 |
Prepaid expenses and other | 18,843 | 15,178 |
Total current assets | 560,991 | 602,969 |
Property and equipment, net | 192,448 | 190,396 |
Investments | 14,890 | 14,553 |
Goodwill | 32,748 | 45,732 |
Intangible assets, net | 25,370 | 30,952 |
Deferred tax assets | 27,490 | 2,576 |
Other long-term assets | 1,520 | 2,401 |
Total assets | 855,457 | 889,579 |
Current liabilities: | ||
Current maturities of long-term debt | 413 | 2,469 |
Accounts payable | 70,614 | 60,417 |
Customer deposits | 48,069 | 49,381 |
Accrued product warranty | 10,928 | 15,410 |
Accrued payroll and related liabilities | 24,126 | 23,297 |
Accrued loss reserves | 1,832 | 2,504 |
Other accrued liabilities | 33,249 | 25,668 |
Total current liabilities | 189,231 | 179,146 |
Long-term debt | 59,709 | 1,575 |
Deferred income tax liabilities | 1,020 | 1,509 |
Other long-term liabilities | 20,207 | 20,584 |
Total liabilities | 270,167 | 202,814 |
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 - 22,513 in 2018 and 23,070 in 2017 | 4,503 | 4,614 |
Additional paid-in capital | 120,601 | 141,931 |
Accumulated other comprehensive loss | (33,883) | (24,243) |
Company shares held by SERP, at cost | (1,886) | (1,960) |
Retained earnings | 495,245 | 565,330 |
Shareholders' equity | 584,580 | 685,672 |
Non-controlling interest | 710 | 1,093 |
Total equity | 585,290 | 686,765 |
Total liabilities and equity | $ 855,457 | $ 889,579 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
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) | 22,513 | 23,070 |
Common stock, shares outstanding (in shares) | 22,513 | 23,070 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | |||
Net sales | $ 1,171,599 | $ 1,184,739 | $ 1,147,431 |
Cost of sales | 1,035,833 | 941,610 | 882,162 |
Gross profit | 135,766 | 243,129 | 265,269 |
Selling, general and administrative expenses | 180,795 | 160,775 | 153,145 |
Research and development expenses | 28,332 | 26,817 | 24,969 |
Restructuring and asset impairment charges | 13,060 | 0 | 0 |
Income (loss) from operations | (86,421) | 55,537 | 87,155 |
Other income: | |||
Interest expense | (1,045) | (840) | (1,395) |
Interest income | 952 | 1,302 | 806 |
Other income | 536 | 1,218 | 529 |
Income (loss) before income taxes | (85,978) | 57,217 | 87,095 |
Income tax provision (benefit) | (25,234) | 19,627 | 32,107 |
Net income (loss) | (60,744) | 37,590 | 54,988 |
Net loss attributable to non-controlling interest | 295 | 205 | 171 |
Net income (loss) attributable to controlling interest | $ (60,449) | $ 37,795 | $ 55,159 |
Net income (loss) attributable to controlling interest: | |||
Basic (in dollars per share) | $ (2.64) | $ 1.64 | $ 2.40 |
Diluted (in dollars per share) | $ (2.64) | $ 1.63 | $ 2.38 |
Weighted average number of common shares outstanding: | |||
Basic (in shares) | 22,902 | 23,025 | 22,992 |
Diluted (in shares) | 22,902 | 23,184 | 23,142 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) [Abstract] | |||
Net income (loss) | $ (60,744) | $ 37,590 | $ 54,988 |
Other comprehensive income (loss): | |||
Change in unrecognized pension and post-retirement benefit costs | (162) | 689 | (80) |
Tax (expense) benefit on change in unrecognized pension and post-retirement benefit costs | 38 | (69) | 29 |
Foreign currency translation adjustments | (9,516) | 6,699 | (2,420) |
Tax expense on foreign currency translation adjustments | 0 | 0 | (5,527) |
Other comprehensive income (loss) | (9,640) | 7,319 | (7,998) |
Comprehensive loss attributable to non-controlling interest | 439 | 232 | 137 |
Comprehensive income (loss) attributable to controlling interest | $ (69,945) | $ 45,141 | $ 47,127 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash Flows from Operating Activities | |||
Net income (loss) | $ (60,744) | $ 37,590 | $ 54,988 |
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities: | |||
Depreciation | 22,411 | 21,312 | 20,818 |
Amortization | 5,502 | 4,490 | 3,995 |
Provision for doubtful accounts | 223 | 482 | 280 |
Provision for warranties | 13,219 | 16,725 | 18,912 |
Deferred compensation provision (benefit) | (1,554) | (574) | 1,742 |
Deferred income tax benefit | (25,385) | (291) | (3,521) |
Gain on disposition of fixed assets | (71) | (388) | (224) |
Stock-based compensation | 2,182 | 3,142 | 2,936 |
Restructuring and asset impairment charges | 13,060 | 0 | 0 |
Distributions to SERP participants | (767) | (206) | (532) |
Change in operating assets and liabilities, net of effects of acquisitions: | |||
Sale (purchase) of trading securities, net | (758) | 473 | (1,873) |
Trade and other receivables | (16,189) | (7,749) | (4,895) |
Inventories | 30,757 | (19,618) | 30,839 |
Prepaid expenses | (11,943) | (5,181) | 4,846 |
Other assets | (3,698) | (779) | 2,069 |
Accounts payable | 9,843 | 630 | 8,836 |
Customer deposits | (522) | 9,379 | (762) |
Accrued product warranty | (17,539) | (14,642) | (15,125) |
Income taxes payable | 3,683 | (597) | 181 |
Accrued retirement benefit costs | (1,100) | 45 | (50) |
Accrued loss reserves | (125) | 122 | 229 |
Other accrued liabilities | 8,887 | (1,118) | 11,142 |
Other | 843 | (1,366) | (25) |
Net cash provided (used) by operating activities | (29,785) | 41,881 | 134,806 |
Cash Flows from Investing Activities | |||
Business acquisition, net of cash acquired | 0 | (26,443) | (39,764) |
Proceeds from sale of property and equipment | 375 | 480 | 614 |
Expenditures for property and equipment | (27,440) | (20,046) | (27,367) |
Sale (purchase) of investments | (360) | (891) | 290 |
Net cash used by investing activities | (27,425) | (46,900) | (66,227) |
Cash Flows from Financing Activities | |||
Payment of dividends | (9,625) | (9,226) | (9,217) |
Borrowings under bank loans | 148,504 | 0 | 5,973 |
Repayment of bank loans | (91,964) | (7,242) | (5,903) |
Purchase of shares of subsidiaries | (28) | (106) | (696) |
Sale (purchase) of Company shares by SERP, net | 377 | 289 | (153) |
Withholding tax paid upon vesting of restricted stock units | (432) | (507) | (1,024) |
Repurchase of Company stock | (24,138) | 0 | 0 |
Net cash provided (used) by financing activities | 22,694 | (16,792) | (11,020) |
Effect of exchange rates on cash | (1,943) | 1,720 | (250) |
Increase (decrease) in cash and cash equivalents | (36,459) | (20,091) | 57,309 |
Cash and cash equivalents, beginning of year | 62,280 | 82,371 | 25,062 |
Cash and cash equivalents, end of year | 25,821 | 62,280 | 82,371 |
Cash paid during the year for: | |||
Interest | 856 | 588 | 1,407 |
Income taxes, net of refunds | $ 8,523 | $ 26,917 | $ 28,455 |
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 Loss [Member] | Company Shares Held by SERP [Member] | Retained Earnings [Member] | Non-Controlling Interest [Member] | Total |
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 | ||||||
Net income (loss) | 55,159 | (171) | 54,988 | ||||
Dividends | 9 | (9,226) | (9,217) | ||||
Other comprehensive income (loss) | (7,998) | (7,998) | |||||
Change in ownership percentage of subsidiary | (1,322) | (1,322) | |||||
Stock-based compensation | $ 1 | 2,935 | 2,936 | ||||
Stock-based compensation (in shares) | 5 | ||||||
RSU vesting | $ 10 | (10) | 0 | ||||
RSU vesting (in shares) | 53 | ||||||
Withholding tax on vested RSUs | (1,024) | (1,024) | |||||
Sale of Company stock held by SERP, net | 27 | (180) | (153) | ||||
Other | 718 | 718 | |||||
Balance at Dec. 31, 2016 | $ 4,609 | 139,970 | (31,562) | (1,958) | 536,771 | 1,011 | 648,841 |
Balance (in shares) at Dec. 31, 2016 | 23,046 | ||||||
Cumulative effect of adopting ASU No. 2016-09 | 150 | (95) | 55 | ||||
Net income (loss) | 37,795 | (205) | 37,590 | ||||
Dividends | 10 | (9,236) | (9,226) | ||||
Other comprehensive income (loss) | 7,319 | 7,319 | |||||
Change in ownership percentage of subsidiary | (43) | (43) | |||||
Stock-based compensation | 2,172 | 2,172 | |||||
Stock-based compensation (in shares) | 1 | ||||||
RSU vesting | $ 5 | (5) | 0 | ||||
RSU vesting (in shares) | 23 | ||||||
Withholding tax on vested RSUs | (507) | (507) | |||||
Sale of Company stock held by SERP, net | 291 | (2) | 289 | ||||
Other | 330 | 330 | |||||
Balance at Dec. 31, 2017 | $ 4,614 | 141,931 | (24,243) | (1,960) | 565,330 | 1,093 | $ 686,765 |
Balance (in shares) at Dec. 31, 2017 | 23,070 | 23,070 | |||||
Net income (loss) | (60,449) | (295) | $ (60,744) | ||||
Dividends | 11 | (9,636) | (9,625) | ||||
Other comprehensive income (loss) | (9,640) | (9,640) | |||||
Change in ownership percentage of subsidiary | (159) | (159) | |||||
Stock-based compensation | 2,815 | 2,815 | |||||
Stock-based compensation (in shares) | 2 | ||||||
RSU vesting | $ 5 | (5) | 0 | ||||
RSU vesting (in shares) | 23 | ||||||
Withholding tax on vested RSUs | (432) | (432) | |||||
Sale of Company stock held by SERP, net | 303 | 74 | 377 | ||||
Repurchase of Company stock | $ (116) | (24,022) | (24,138) | ||||
Repurchase of Company stock (in shares) | (582) | ||||||
Other | 71 | 71 | |||||
Balance at Dec. 31, 2018 | $ 4,503 | $ 120,601 | $ (33,883) | $ (1,886) | $ 495,245 | $ 710 | $ 585,290 |
Balance (in shares) at Dec. 31, 2018 | 22,513 | 22,513 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CONSOLIDATED STATEMENTS OF EQUITY [Abstract] | |||
Common stock dividends (in dollars per share) | $ 0.42 | $ 0.40 | $ 0.40 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
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. (93% owned) Astec, Inc. Astec Insurance Company Astec Industries LatAm SpA 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 (99% owned) Peterson Pacific Corp. Power Flame Incorporated RexCon, Inc. 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, 2018 and 2017 are classified as Level 1 or Level 2, as summarized in Note 3, Fair Value Measurements. Cash and Cash Equivalents Investments Accounts Receivable Allowance for Doubtful Accounts Year Ended December 31 2018 2017 2016 Allowance balance, beginning of year $ 1,716 $ 1,511 $ 1,837 Provision 223 482 280 Write offs (696 ) (308 ) (560 ) Other (59 ) 31 (46 ) Allowance balance, end of year $ 1,184 $ 1,716 $ 1,511 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 net realizable value determined on each separate unit. Each unit of rental equipment is valued at the lower of original manufacturing, acquired or trade-in cost or net realizable value. Inventories are valued at the lower of cost (first-in, first-out) or net realizable value, 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 the net realizable 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 as follows: dealer network and customer relationships: 8-19 years; trade names: 15 years; other: 5-19 years. Goodwill 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. Other factors used in evaluating the fair value of a reporting unit could include deterioration in the general economy, fluctuations in foreign exchange, deterioration in the industry or markets in which the reporting unit operates, an increased competitive market, a regulatory or political development in the market, increases in raw materials, labor costs or other factors that have a negative effect on earnings and cash flows, a decline in actual or budgeted earnings and cash flows, or entity specific changes in management, key personnel, strategy or customer base. If the fair value of a reporting unit is found to be less than its book value, the company will record an impairment loss equal to the excess, if any, of the book value over the fair value. 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 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. Determining the 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. 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. 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 Depending on the terms of the arrangement with the customer, recognition of a portion of the consideration received may be deferred and recorded as a contract liability if we have to satisfy a future obligation, such as to provide installation assistance, service work to be performed in the future without charge, floor plan interest to be reimbursed to our dealer customers, payments for extended warranties, for annual rebates given to certain high volume customers or for obligations for future estimated returns to be allowed based upon historical trends. Certain contracts include terms and conditions pursuant to which the Company recognizes revenues upon the completion of production, and the equipment 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, which transfers control of the equipment, 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 had one large pellet plant sale on which revenue was recorded over time based upon the ratio of costs incurred to estimated total costs. Penalties were accounted for as a reduction in sales. Service and Equipment Installation Revenue – Purchasers of certain of the Company’s equipment often contract with the Company to provide installation services. Installation is typically separately priced in the contract based upon observable market prices for stand-alone performance obligations or a cost plus margin approach when one is not available. The Company may also provide future services on equipment sold at the customer’s request, which may be for equipment repairs after the warranty period expires. Service is billed on a cost plus margin approach or at a standard rate per hour. Used Equipment Sales - Used equipment is obtained by trade-in on new equipment sales, as a separate purchase in the open market or from the Company’s equipment rental business. Revenues from the sale of used equipment are recognized upon transfer of control to the customer at agreed upon pricing. Freight Revenue – Under a practical expedient allowed under ASU 2014-09, the Company records revenues earned for shipping and handling as revenue at the time of shipment, regardless of whether or not it is identified as a separate performance obligation. The cost of shipping and handling is classified as cost of goods sold concurrently. Other Revenues – Miscellaneous revenues and offsets not associated with one of the above classifications include rental revenues, extended warranty revenues, early pay discounts and floor plan interest reimbursements. 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 (loss) 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 Earnings Per Share The following table sets forth a reconciliation of the number of shares used in the computation of basic and diluted earnings (loss) per share: Year Ended December 31 2018 2017 2016 Denominator: Denominator for basic earnings (loss) per share 22,902 23,025 22,992 Effect of dilutive securities: Restricted stock units -- 96 85 Supplemental executive retirement plan -- 63 65 Denominator for diluted earnings (loss) per share 22,902 23,184 23,142 Derivatives and Hedging Activities Business Combinations Subsequent Events Review Recent Accounting Pronouncements In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments - Overall (Subtopic 825-10)”, which requires, among other things, equity investments with readily determinable fair values, except those accounted for under the equity method of accounting or those that result in consolidation of the investee, to be measured at fair value with changes in fair value recognized in net income. The new standard was further clarified by the issuance of ASU No. 2018-03, “Technical Corrections and Improvements to Financial Instruments – Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities” in February 2018. The standards are effective for public companies in fiscal years beginning after December 15, 2017, and the Company adopted the standard effective January 1, 2018. The adoption of these standards did not have a material impact on the Company's financial position, results of operations or cash flows. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”, which significantly changes the accounting for operating leases by lessees. The accounting applied by lessors is largely unchanged from that applied under previous guidance. The new guidance establishes a right-of-use (“ROU”) model and requires lessees to recognize lease assets and lease liabilities in the balance sheet, initially measured at the present value of the lease payments, for leases which were classified as operating leases under previous guidance. Lease cost included in the statement of operations will be calculated so that the cost of the lease is allocated over the lease term, generally on a straight-line basis. The Company has made an accounting policy election to exclude leases with a term of 12 months or less from the requirement to record related assets and liabilities. Certain provisions of ASU No. 2016-02 were later modified or clarified by the issuance of ASU 2018-11, “Leases (Topic 842): Targeted Improvements” and ASU 2018-10, “Codification Improvements to Topic 842, Leases”. A modified retrospective transition approach is required by the ASU and its provisions must be applied to all leases existing at the date of initial application. An entity may choose to use either (1) the standard’s effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. The new standards are effective for public companies for fiscal years beginning after December 15, 2018. The Company adopted the new standards effective January 1, 2019 using the effective date as the date of initial application. Consequently, financial information will not be updated and the disclosures required under the new standards will not be provided for periods before January 1, 2019. The standards provide a number of optional practical expedients in transition which the Company is continuing to evaluate. The Company does not expect the adoption of these standards to have a material impact on its results of operations or cash flows; however, the Company continues to evaluate the impact the adoption of the new standards will have on its financial position. While the Company continues to assess all of the effects of adoption, it currently believes the most significant effects relate to the recognition of new ROU assets and lease liabilities on its consolidated balance sheet for its operating leases and new disclosures about its leasing activities. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments”. The standard changes how credit losses are measured for most financial assets and certain other instruments that currently are not measured through net income. The standard will require an expected loss model for instruments measured at amortized cost as opposed to the current incurred loss approach. In valuing available for sale debt securities, allowances will be required to be recorded, rather than the current approach of reducing the carrying amount, for other than temporary impairments. A cumulative adjustment to retained earnings is to be recorded as of the beginning of the period of adoption to reflect the impact of applying the provisions of the standard. The standard is effective for public companies for periods beginning after December 15, 2019 and the Company expects to adopt the new standard as of January 1, 2020. The Company has not yet determined what impact, if any, the adoption of this new standard will have on the Company's financial position, results of operations or cash flows. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force)” which clarifies how certain cash receipts and cash payments should be presented on the statement of cash flows. The statement also addresses how the predominance principle should be applied when cash payments have aspects of more than one class of cash flows. In October 2016, the FASB issued ASU No. 2016-16, “Income Taxes (Topic 740), Intra-Entity Transfers of Assets Other Than Inventory” which requires companies to account for the income tax effects of intercompany sales and transfers of assets other than inventory, such as intangible assets, when the transfer occurs. This is a change from previous guidance, which required companies to defer the income tax effects of intercompany transfers of assets until the asset has been sold to an outside party or otherwise recognized by being depreciated, amortized, or impaired. The new guidance requires companies to defer the income tax effects of only intercompany transfers of inventory. The standard is effective for public companies in fiscal years beginning after December 15, 2017. In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805), Clarifying the Definition of a Business,” which provides additional guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The standard is effective for public companies for annual or interim periods beginning after December 15, 2017. The Company adopted the new standard effective January 1, 2018. The application of this standard did not have a material impact on the Company’s financial position, results of operations or cash flows. In August 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging (Topic 815), Targeted Improvements to Hedging Activities”, to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. The new guidance is effective for public companies for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years with early adoption permitted in any interim period after its issuance. The Company adopted the new standard effective January 1, 2019. The Company does not expect the application of this standard to have a material impact on its financial position, results of operations or cash flows. In February 2018, the FASB issued ASU No. 2018-02, “Income Statement – Reporting Comprehensive Income (Topic 220), Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”, which permits companies to reclassify tax effects stranded in accumulated other comprehensive income (“OCI”) as a result of tax reform impacting tax rates or other items, such as changing from a worldwide tax system to a territorial system, from OCI to retained earnings. Other tax effects stranded in OCI due to other reasons, such as prior changes in tax laws or changes in valuation allowances, may not be reclassified. Additional disclosures will also be required upon adoption of the new standard. The new standard is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company adopted this new standard effective January 1, 2019. The Company does not expect the adoption of this standard to have a material impact on its financial position, results of operations or cash flows. In March 2018, the FASB issued ASU No. 2018-05 “Income Taxes (Topic 740), amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (SEC Update)”, which addresses the accounting and disclosures around the enactment of the Tax Cuts and Jobs Act and the Securities and Exchange Commission’s Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”). The Company adopted this new standard in the first quarter of 2018. See Note 14, Income Taxes, for the disclosures related to this amended guidance. In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement” which aims to improve the overall usefulness of disclosures to financial statement users and reduce unnecessary costs to companies when preparing fair value measurement disclosures. The standard is effective for annual and interim periods beginning after December 15, 2019 with early adoption permitted. The Company expects to adopt this new standard effective January 1, 2020. The Company does not expect the adoption of this new standard to have a material impact on its financial position, results of operations or cash flows. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventories [Abstract] | |
Inventories | 2. Inventories Inventories consist of the following: December 31 2018 2017 Raw materials and parts $ 173,919 $ 146,144 Work-in-process 69,718 129,441 Finished goods 89,152 94,571 Used equipment 23,155 21,223 Total $ 355,944 $ 391,379 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
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 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, 2018 and 2017 are level 1 and level 2 in the fair value hierarchy: December 31, 2018 Level 1 Level 2 Total Financial Assets: Trading equity securities: SERP money market fund $ 229 $ -- $ 229 SERP mutual funds 4,755 -- 4,755 Preferred stocks 248 -- 248 Trading debt securities: Corporate bonds 5,398 -- 5,398 Municipal bonds -- 1,546 1,546 Floating rate notes 1,300 -- 1,300 U.S. Treasury bills 2,210 -- 2,210 Asset-backed securities -- 442 442 Other -- 708 708 Derivative financial instruments -- 333 333 Total financial assets $ 14,140 $ 3,029 $ 17,169 Financial Liabilities: SERP liabilities $ -- $ 6,641 $ 6,641 Total financial liabilities $ -- $ 6,641 $ 6,641 December 31, 2017 Level 1 Level 2 Total Financial Assets: Trading equity securities: SERP money market fund $ 124 $ -- $ 124 SERP mutual funds 4,839 -- 4,839 Preferred stocks 364 -- 364 Trading debt securities: Corporate bonds 5,661 -- 5,661 Municipal bonds -- 1,912 1,912 Floating rate notes 753 -- 753 U.S. Treasury bills 1,030 -- 1,030 Asset-backed securities -- 526 526 Other -- 968 968 Total financial assets $ 12,771 $ 3,406 $ 16,177 Financial Liabilities: SERP liabilities $ -- $ 8,552 $ 8,552 Derivative financial instruments -- 112 112 Total financial liabilities $ -- $ 8,664 $ 8,664 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. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 Trading equity securities $ 5,546 $ 50 $ 365 $ 5,231 Trading debt securities 11,817 55 267 11,605 Total $ 17,363 $ 105 $ 632 $ 16,836 December 31, 2017 Trading equity securities $ 4,964 $ 394 $ 31 $ 5,327 Trading debt securities 10,971 58 179 10,850 Total $ 15,935 $ 452 $ 210 $ 16,177 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. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2018 | |
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. Goodwill impairment is the excess of the carrying amount of a reporting unit (that includes goodwill) over its fair value. Impairment is limited to the carrying amount of goodwill allocated to the reporting unit. The Company estimated the fair value of its reporting units as of December 31, 2018 based upon a combination of discounted cash flows and market approaches. Weighted average cost of capital assumptions used in the calculations ranged from 23.9% to 25.8% and terminal growth rate of 3% was also assumed. The sum of the reporting units valuations determined by the Company was reconciled to the Company’s overall market capitalization. The valuations performed in the fourth quarter of 2018 indicated impairment in the amount of $11,190 in two of the Company’s reporting units in the Energy Group. The valuations performed in 2017 and 2016 indicated no impairment of goodwill. In addition, as part of a business unit restructuring, additional goodwill of $955 was written off. The changes in the carrying amount of goodwill and accumulated impairment losses by reporting segment during the years ended December 31, 2018 and 2017 are as follows: Infrastructure Group Aggregate and Mining Group Energy Group Total Balance, December 31, 2016: Goodwill $ 10,758 $ 31,920 $ 19,369 $ 62,047 Accumulated impairment (2,310 ) (12,196 ) (6,737 ) (21,243 ) Net 8,448 19,724 12,632 40,804 Acquisition -- -- 3,488 3,488 Foreign currency translation 125 1,315 -- 1,440 Balance, December 31, 2017: Goodwill 10,883 33,235 22,857 66,975 Accumulated impairment losses (2,310 ) (12,196 ) (6,737 ) (21,243 ) Net 8,573 21,039 16,120 45,732 Restructuring write off (955 ) -- -- (955 ) Foreign currency translation (49 ) (790 ) -- (839 ) Impairment -- -- (11,190 ) (11,190 ) Balance, December 31, 2018: Goodwill 9,879 32,445 22,857 65,181 Accumulated impairment (2,310 ) (12,196 ) (17,927 ) (32,433 ) Net $ 7,569 $ 20,249 $ 4,930 $ 32,748 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Intangible Assets [Abstract] | |
Intangible Assets | 6. Intangible Assets Intangible assets consisted of the following at December 31, 2018 and 2017: 2018 2017 Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Dealer network and customer relationships $ 30,909 $ 14,472 $ 16,437 $ 31,376 $ 10,856 $ 20,520 Trade names 9,536 2,509 7,027 9,650 1,914 7,736 Other 6,618 4,712 1,906 6,821 4,125 2,696 Total $ 47,063 $ 21,693 $ 25,370 $ 47,847 $ 16,895 $ 30,952 Amortization expense on intangible assets was $5,125, $4,064 and $3,562 for 2018, 2017 and 2016, respectively. Intangible asset amortization expense is expected to be $3,944, $3,511, $3,118, $2,660 and $2,178 in the years ending December 31, 2019, 2020, 2021, 2022 and 2023, respectively, and $9,959 thereafter. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property and Equipment [Abstract] | |
Property and Equipment | 7. Property and Equipment Property and equipment at cost, less accumulated depreciation, is as follows: December 31 2018 2017 Land $ 15,774 $ 15,568 Building and land improvements 145,913 143,339 Construction in progress 10,410 10,680 Manufacturing and office equipment 260,420 244,324 Aviation equipment 14,424 14,227 Less accumulated depreciation (254,493 ) (237,742 ) Total $ 192,448 $ 190,396 Depreciation expense was $22,411, $21,312 and $20,818 for the years ended December 31, 2018, 2017 and 2016, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2018 | |
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 $3,618, $3,211 and $2,792 for the years ended December 31, 2018, 2017 and 2016, respectively. Minimum rental commitments for all noncancelable operating leases at December 31, 2018 are as follows: 2019 $ 1,992 2020 1,100 2021 388 2022 144 2023 66 Thereafter 12 $ 3,702 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt [Abstract] | |
Debt | 9. Debt On April 12, 2017, the Company and certain of its subsidiaries entered into an amended and restated credit agreement whereby the lender 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 $30,000. As of December 31, 2018, outstanding borrowings under the agreement totaled $58,778, which are included in long-term debt in the accompanying consolidated balance sheets. No amounts were outstanding at December 31, 2017 under the agreement. Letters of credit totaling $11,044, including $3,200 of letters of credit issued to banks in Brazil to secure the local debt of Astec do Brasil Fabricacao de Equipamentos Ltda. (“Astec Brazil”), were outstanding under the credit facility as of December 31, 2018, resulting in additional borrowing ability of $30,178 under the credit facility. The credit agreement has a five-year term expiring in April 2022. 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 3.27% as of December 31, 2018. The unused facility fee is 0.125%. Interest only payments are due monthly. The amended and restated credit agreement contains certain financial covenants, including provisions concerning required levels of annual net income and minimum tangible net worth. In February 2019, the $100,000 amended and restated credit agreement discussed above was again amended to increase the unsecured line of credit to a maximum of $150,000 and to extend the maturity date of the agreement to December 29, 2023. Upon disposition of the Georgia wood pellet plant, the Company is required to apply the proceeds, if any, as a payment against any outstanding balance on the line of credit. Other significant terms were left unchanged. The Company’s South African subsidiary, Osborn Engineered Products SA (Pty) Ltd (“Osborn”), has a credit facility of $6,600 with a South African bank to finance short-term working capital needs, as well as to cover performance letters of credit, advance payment and retention guarantees. As of December 31, 2018 and 2017, Osborn had no outstanding borrowings but had $397 in performance, advance payment and retention guarantees outstanding under the facility at December 31, 2018. The facility has been guaranteed by Astec Industries, Inc., but is otherwise unsecured. A 0.75% unused facility fee is charged if less than 50% of the facility is utilized. As of December 31, 2018, Osborn had available credit under the facility of $6,203. The interest rate is 0.25% less than the South Africa prime rate, resulting in a rate of 10.0% as of December 31, 2018. The Company's Brazilian subsidiary has outstanding working capital loans totaling $1,207 and $3,402 from Brazilian banks with interest rates ranging from 10.4% to 11.0% at December 31, 2018 and 2017, respectively. The loans’ maturity dates ranging from January 2019 to April 2024 and are secured by Astec Brazil’s manufacturing facility and also by letters of credit totaling $3,200 issued by Astec Industries, Inc. Additionally, Astec Brazil has various five-year equipment financing loans outstanding with Brazilian banks in the aggregate of $137 and $642 as of December 31, 2018 and 2017, respectively, that have interest rates ranging from 3.5% to 16.3%. These equipment loans have maturity dates ranging from January 2019 to April 2020. Astec Brazil's loans are included in the accompanying consolidated balance sheets as current maturities of long-term debt of $413 and long-term debt of $931 as of December 31, 2018. Long-term debt maturities are expected to be $413, $217, $214, $58,992 and $214 in the years ending December 31, 2019, 2020, 2021, 2022 and 2023, respectively, and $72 thereafter. |
Product Warranty Reserves
Product Warranty Reserves | 12 Months Ended |
Dec. 31, 2018 | |
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 2018, 2017 and 2016 are as follows: 2018 2017 2016 Reserve balance, beginning of year $ 15,410 $ 13,156 $ 9,100 Warranty liabilities accrued 13,219 16,725 18,912 Warranty liabilities settled (17,539 ) (14,642 ) (15,125 ) Other (162 ) 171 269 Reserve balance, end of year $ 10,928 $ 15,410 $ 13,156 |
Accrued Loss Reserves
Accrued Loss Reserves | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 were $8 , , , , |
Pension and Retirement Plans
Pension and Retirement Plans | 12 Months Ended |
Dec. 31, 2018 | |
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 2018 2017 Change in benefit obligation Benefit obligation, beginning of year $ 16,916 $ 16,104 Interest cost 578 630 Actuarial (gain)/loss (1,021 ) 867 Benefits paid (732 ) (685 ) Benefit obligation, end of year 15,741 16,916 Accumulated benefit obligation 15,741 16,916 Change in plan assets Fair value of plan assets, beginning of year 14,717 13,241 Actual gain/(loss) on plan assets (909 ) 1,746 Employer contribution 1,376 415 Benefits paid (732 ) (685 ) Fair value of plan assets, end of year 14,452 14,717 Funded status, end of year $ (1,289 ) $ (2,199 ) Amounts recognized in the consolidated balance sheets Noncurrent liabilities $ (1,289 ) $ (2,199 ) Net amount recognized $ (1,289 ) $ (2,199 ) Amounts recognized in accumulated other comprehensive loss consist of Net loss $ 5,687 $ 5,463 Net amount recognized $ 5,687 $ 5,463 Weighted average assumptions used to determine benefit obligations as of December 31 Discount rate 4.10 % 3.50 % Expected return on plan assets 6.00 % 6.25 % 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 Asset Category 2018 2017 2018 & 2017 Target Allocation Ranges Equity securities 46.9 % 49.4 % 40 - 65 % Debt securities 46.2 % 43.2 % 30 - 50 % Cash and equivalents 6.9 % 7.4 % 0 - 15 % Total 100.0 % 100.0 % Net periodic benefit cost for 2018, 2017 and 2016 included the following components: Pension Benefits 2018 2017 2016 Components of net periodic benefit cost Interest cost $ 578 $ 630 $ 650 Expected return on plan assets (802 ) (720 ) (782 ) Amortization of actuarial loss 465 530 480 Net periodic benefit cost 241 440 348 Other changes in plan assets and benefit obligations recognized in other comprehensive income Net actuarial (gain) loss for the year 690 (159 ) 533 Amortization of net loss (465 ) (530 ) (480 ) Total recognized in other comprehensive income 225 (689 ) 53 Total recognized in net periodic benefit cost and other comprehensive income $ 466 $ (249 ) $ 401 Weighted average assumptions used to determine net periodic benefit cost for years ended December 31 Discount rate 3.50 % 4.00 % 4.28 % Expected return on plan assets 6.25 % 6.25 % 7.00 % No contributions are expected to be funded by the Company during 2019. Amounts in accumulated other comprehensive loss expected to be recognized in net periodic benefit cost in 2019 for the amortization of a net loss is $520. The following estimated future benefit payments are expected in the years indicated: Pension Benefits 2019 $ 840 2020 870 2021 910 2022 920 2023 940 2024 - 2028 4,920 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 $7,451, $7,182 and $5,943 in 2018, 2017 and 2016, 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, 2018 December 31, 2017 Cost Market Cost Market Company stock $ 1,886 $ 1,658 $ 1,960 $ 3,589 Equity securities 5,262 4,983 4,589 4,963 Total $ 7,148 $ 6,641 $ 6,549 $ 8,552 At the end of each quarter, the Company 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 operations 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 income of $1,556 and $575 in 2018 and 2017, respectively, and expense of $1,742 in 2016, 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, 2018 | |
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 , ,0 . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes [Abstract] | |
Income Taxes | 14. Income Taxes For financial reporting purposes, income (loss) before income taxes includes the following components: Year Ended December 31 2018 2017 2016 United States $ (86,874 ) $ 55,980 $ 87,326 Foreign 896 1,237 (231 ) Income (loss) before income taxes $ (85,978 ) $ 57,217 $ 87,095 The provision (benefit) for income taxes consists of the following: Year Ended December 31 2018 2017 2016 Current provision (benefit): Federal $ (3,995 ) $ 16,178 $ 30,623 State 892 2,866 4,098 Foreign 3,254 874 907 Total current provision 151 19,918 35,628 Deferred provision (benefit): Federal (19,142 ) 107 (2,653 ) State (5,788 ) (455 ) (1,213 ) Foreign (455 ) 57 345 Total deferred benefit (25,385 ) (291 ) (3,521 ) Total provision (benefit): Federal (23,137 ) 16,285 27,970 State (4,896 ) 2,411 2,885 Foreign 2,799 931 1,252 Total income tax provision (benefit) $ (25,234 ) $ 19,627 $ 32,107 The Company’s income tax provision (benefit) is computed based on the domestic and foreign federal statutory rates and the average state statutory rates, net of related federal benefit. The provision (benefit) for income taxes differs from the amount computed by applying the statutory federal income tax rate to income (loss) before income taxes. A reconciliation of the provision (benefit) for income taxes at the statutory federal income tax rate to the amount provided is as follows: Year Ended December 31 2018 2017 2016 Tax expense (benefit) at the statutory federal income tax rate $ (18,055 ) $ 20,026 $ 30,483 Domestic production activity deduction -- (1,661 ) (1,641 ) State income tax, net of federal income tax (2,976 ) 1,520 1,876 Research and development tax credits (4,660 ) (922 ) (785 ) FIN 48 impact 1,856 124 (240 ) Liquidation of subsidiary (1,403 ) -- -- Valuation allowance impact 978 1,585 1,638 U.S. tax reform impact (193 ) (505 ) -- Other items (781 ) (540 ) 776 Total income tax provision (benefit) $ (25,234 ) $ 19,627 $ 32,107 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 2018 2017 Deferred tax assets: Inventory reserves $ 4,513 $ 4,287 Warranty reserves 2,275 3,560 Bad debt reserves 182 299 State tax loss carryforwards 7,265 2,710 Accrued vacation 1,612 1,712 SERP 364 367 Deferred compensation 881 1,293 Restricted stock units 1,728 1,664 Goodwill 2,157 -- Pension and post-employment benefits 1,536 1,448 Outside basis difference 4,496 -- Federal net operating loss 15,655 -- Foreign net operating losses 5,069 6,310 Other 5,025 2,478 Valuation allowances (8,540 ) (8,318 ) Total deferred tax assets 44,218 17,810 Deferred tax liabilities: Property and equipment 16,156 14,562 Intangibles 541 769 Goodwill -- 654 Pension 1,051 758 Total deferred tax liabilities 17,748 16,743 Total net deferred assets $ 26,470 $ 1,067 As of December 31, 2018, the Company has a federal net operating loss carryforward of $74,548 from year 2018. The Company expects to utilize the 2018 federal net operating loss against earnings in future years. As of December 31, 2018, the Company has state net operating loss carryforwards of $261,673 and foreign net operating loss carryforwards of approximately $16,759, which will be available to offset future taxable income. If not used, these carryforwards will expire between 2019 and 2030. 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 2018, the valuation allowance on these carryforwards was increased by $978 due to the unrealizable portion of certain entities’ state and foreign net operating loss carryforwards. The Company has also determined that the recovery of certain other deferred tax assets is realizable. The valuation allowance for these deferred tax assets was decreased by $756 during 2018. The following table represents a roll forward of the deferred tax asset valuation allowance for the years ended December 31, 2018, 2017 and 2016: Year Ended December 31 2018 2017 2016 Allowance balance, beginning of year $ 8,318 $ 8,280 $ 8,065 Provision 978 1,585 1,639 Write-offs -- (1,862 ) (289 ) Other (756 ) 315 (1,135 ) Allowance balance, end of year $ 8,540 $ 8,318 $ 8,280 Undistributed earnings of the Company’s Canadian subsidiary, Breaker Technology Ltd. (“BTL”), South African subsidiary, Osborn Engineered Products SA, (Pty), Ltd. (“Osborn”), Australian subsidiary, Astec Australia Pty, Ltd. (“Astec Australia”), and Northern Ireland subsidiary, Telestack Limited (“Telestack”), are considered to be indefinitely reinvested; accordingly, no provision for U.S. federal and state income taxes has been provided thereon. As of December 31, 2018, the cumulative amounts of undistributed GAAP earnings for BTL, Osborn, Astec Australia and Telestack are $7,789, $29,800, $490 and $1,477, respectively. A portion of these amounts may be subject to taxation under the one-time transition tax included in the Tax Cuts and Jobs Act of 2017. Based upon the provisions in the Tax Cuts and Jobs Act of 2017, any future qualified dividends out of these amounts will not be subject to U.S. income taxes. However, upon any future inclusion as Subpart F income or capital gains, the Company would be subject to additional U.S. income taxes (subject to an adjustment for foreign tax credits). Upon any repatriation, withholding taxes due to the foreign jurisdictions may have to be paid. At this time, it is not practicable to determine the amount of the unrecognized deferred tax liability for temporary differences related to investments in foreign subsidiaries. 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 2014. 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 2013. The Company has a liability for unrecognized tax benefits of $2,048 and $365 (excluding accrued interest and penalties) as of December 31, 2018 and 2017, respectively. The Company recognizes interest and penalties accrued related to unrecognized tax benefits in tax expense. The Company recognized tax benefits of $66 and $22 in 2018 and 2017, respectively, for penalties and interest related to amounts that were settled for less than previously accrued. The net total amount of unrecognized tax benefits that, if recognized, would affect the Company’s effective tax rate is $2,243 and $370 at December 31, 2018 and 2017, 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 2018 2017 2016 Balance, beginning of year $ 365 $ 238 $ 603 Additions for tax positions taken in current year 1,722 127 235 Reductions due to lapse of statutes of limitations (39 ) -- (16 ) Decreases related to settlements with tax authorities -- -- (584 ) Balance, end of year $ 2,048 $ 365 $ 238 The December 31, 2018 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. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a federal corporate tax rate decrease from 35% to 21% for tax years beginning after December 31, 2017, the transition of U.S international taxation from a worldwide tax system to a territorial system and a one-time transition tax on the mandatory deemed repatriation of foreign earnings. The Company’s fourth quarter 2017 provision for income taxes was reduced by $1,056, (comprised of a $1,548 reduction in income tax expense recorded in connection with the remeasurement of deferred tax assets and liabilities and $492 of additional income tax expense recorded in connection with the transition tax on the mandatory deemed repatriation of foreign earnings) due to applying the provisions of the Tax Act. On December 22, 2017, Staff Accounting Bulletin No. 118 ("SAB 118") was issued to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. In accordance with SAB 118, the Company determined that the $492 additional 2017 income tax expense was a provisional amount and constituted a reasonable estimate at December 31, 2017, based upon the best information then available. The final impact was $1,727 and differed from the provisional amount due to, among other things, additional analysis, changes in interpretations and assumptions the Company made, additional regulatory guidance issued and actions the Company took as a result of the Tax Act. The subsequent adjustment, $1,235, is included in 2018 income tax expense. While the Tax Act provides for a territorial tax system beginning in 2018, it includes two new U.S. tax base erosion provisions, the global intangible low-taxed income (“GILTI”) provisions and the base-erosion and anti-abuse tax (“BEAT”) provisions. The GILTI provisions require the Company to include, in its U.S. income tax return, foreign subsidiary earnings in excess of an allowable return on the foreign subsidiary’s tangible assets. The Company has elected to account for GILTI tax in the period in which it is incurred, and therefore, has recorded tax benefits of $545 in its consolidated financial statements for the year ended December 31, 2018. The BEAT provisions in the Tax Act eliminates the deduction of certain base-erosion payments made to related foreign corporations, and impose a minimum tax, if greater than regular tax. The Company does not expect to be subject to this tax, and therefore, has not included any tax impacts of BEAT in its consolidated financial statements for the year ended December 31, 2018. The changes to existing U.S. tax laws as a result of the Tax Act, which we believe have the most significant impact on the Company’s federal income taxes are as follows: Reduction of the U.S. Corporate Income Tax Rate: Transition Tax on Foreign Earnings: Repeal of Domestic Production Activities Deduction: |
Contingent Matters
Contingent Matters | 12 Months Ended |
Dec. 31, 2018 | |
Contingent Matters [Abstract] | |
Contingent Matters | 15. Contingent Matters Certain customers have financed purchases of Company products through arrangements in which the Company is contingently liable for customer debt of $2,247 at December 31, 2018. These arrangements expire at various dates through July 2021 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 $1,183 related to these guarantees as of December 31, 2018. In addition, the Company is contingently liable under letters of credit issued by a lender totaling $11,044 as of December 31, 2018, including $3,200 of letters of credit guaranteeing certain Astec Brazil bank debt. The outstanding letters of credit expire at various dates through October 2020. As of December 31, 2018, the Company’s foreign subsidiaries are contingently liable for a total of $2,016 in performance letters of credit, advance payments and retention guarantees. The maximum potential amount of future payments under these letters of credit and guarantees for which the Company could be liable is $13,060 as of December 31, 2018. The Company manufactured its first wood pellet plant for a customer under a Company-financed arrangement whereby the Company deferred the recognition of revenue as payment under the arrangement was not assured. The original customer is attempting to obtain financing to purchase the plant at a reduced price; however, the Company believes the ultimate consummation of the sale to this customer is uncertain. After considering the uncertainty of completing the sale to the existing customer; the lack of success in attempting to market the plant to other pellet plant operators; the cost of repossessing the plant; and the Company’s decision to exit the pellet plant business line, the pellet plant inventory’s net realizable value has been written down to zero. The Company and certain of its current and former executive officers have been named as defendants in a putative shareholder class action lawsuit filed on February 1, 2019, in the United States District Court for the Eastern District of Tennessee. The action is styled City of Taylor General Employees Retirement System v. Astec Industries, Inc., et al., Case No. 1:19-cv-00024-PLR-CHS. The complaint generally alleges that the defendants violated the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Rule 10b-5 promulgated thereunder by making allegedly false and misleading statements and that the individual defendants are control person under Section 20(a) of the Exchange Act. The complaint was filed on behalf of shareholders who purchased shares of the Company’s stock between July 26, 2016 and October 22, 2018 and seeks monetary damages on behalf of the purported class. We dispute these allegations and intend to defend this lawsuit vigorously. The Company is unable to estimate the possible loss or range of loss at this time. 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. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | 16. Shareholders’ Equity The Company rewards key members of management with restricted stock units (“RSUs”) each year based upon the financial performance of the Company and its subsidiaries. Under the terms of the Company’s shareholder-approved 2011 Incentive Plan, up to 700 shares of newly-issued Company stock is available for awards. Awards granted in 2016 and prior vest at the end of five years from the date of grant, or at the time a recipient retires after reaching age 65, if earlier , , , , . Compensation expense of $2,032, $2,978 and $2,426 was recorded in the years ended December 31, 2018, 2017 and 2016, respectively, to reflect the fair value of RSUs granted (or anticipated to be granted for 2018 performance) amortized over the portion of the vesting period occurring during the period. Related income tax benefits of $528, $1,132 and $934 were recorded in 2018, 2017 and 2016, respectively. Based upon the grant date fair value of RSUs, it is anticipated that $3,022 of additional compensation costs will be recognized in future periods through 2022 for RSUs earned through December 31, 2018. The weighted average period over which this additional compensation cost will be expensed is 1.8 years. RSUs do not participate in Company - Changes in restricted stock units during the year ended December 31, 2018 are as follows: 2018 Weighted Average Unvested restricted stock units, beginning of year 161 $ 53.09 Units granted 61 58.45 Units forfeited (25 ) 50.84 Units vested (32 ) 45.79 Unvested restricted stock units, end of year 165 56.82 The grant date fair value of the restricted stock units granted during 2018, 2017 and 2016 was $3,553, $5,399 and $1,946, respectively. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2018 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | 17. Revenue Recognition As discussed in Note 1, Summary of Significant Accounting Policies, the Company adopted the provisions of ASU No. 2014-09, “Revenue from Contracts with Customers” and its related amendments effective January 1, 2018. The adoption of this standard did not have a material impact on the timing or amounts of revenues recognized by the Company, and, as such, no cumulative effect adjustment was recorded as of the adoption of the standard. The following table disaggregates the Company’s revenue by major source for the period ended December 31, 2018 (excluding intercompany sales): Infrastructure Group Aggregate and Mining Group Energy Group Total Net Sales - Domestic: Equipment sales $ 296,974 $ 220,015 $ 178,584 $ 695,573 Pellet plant agreement sale reduction (75,315 ) -- -- (75,315 ) Parts and component sales 119,823 71,862 42,666 234,351 Service and equipment installation revenue 10,822 1,844 6,355 19,021 Used equipment sales 8,098 3,127 4,358 15,583 Freight revenue 12,502 6,265 5,896 24,663 Other 1,022 (741 ) 1,657 1,938 Total domestic revenue 373,926 302,372 239,516 915,814 Net Sales - International: Equipment sales 43,516 98,604 24,308 166,428 Parts and component sales 19,215 44,609 10,528 74,352 Service and equipment installation revenue 3,152 1,069 390 4,611 Used equipment sales 1,693 2,948 908 5,549 Freight revenue 1,043 3,266 417 4,726 Other (256 ) 296 79 119 Total international revenue 68,363 150,792 36,630 255,785 Total net sales $ 442,289 $ 453,164 $ 276,146 $ 1,171,599 Revenue is recognized when obligations under the terms of a contract are satisfied and generally occurs with the transfer of control of the product or services at a point in time. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. See Note 1, Summary of Significant Accounting Policies, for further information regarding the types and timing of the Company’s revenue transactions. Contract assets and liabilities, excluding customer deposits, are immaterial at December 31, 2018. The Company had a pellet plant sale which was accounted for over time using the ratio of costs incurred to estimated total costs. Pellet plant sales recognized under the over-time method in 2018 for production activities were not significant. Penalties are accounted for as a reduction in net sales. During July 2018, the Company entered into an agreement with its pellet plant customer due to unresolved issues which inhibited the plant’s ability to meet contractual provisions by the date required in the Company’s sales contract with its customer. Under the terms of the pellet plant agreement, the Company paid its customer $68,000. Considering this payment and other provisions of the pellet plant agreement, including the forgiveness of $7,315 of accounts receivable due from the customer, a $75,315 reduction in sales was recorded in 2018. |
Operations by Industry Segment
Operations by Industry Segment and Geographic Area | 12 Months Ended |
Dec. 31, 2018 | |
Operations by Industry Segment and Geographic Area [Abstract] | |
Operations by Industry Segment and Geographic Area | 18. 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 2018 Infrastructure Group Aggregate and Mining Group Energy Group Corporate Total Revenues from external customers $ 442,289 $ 453,164 $ 276,146 $ -- $ 1,171,599 Intersegment revenues 21,568 16,603 17,578 -- 55,749 Restructuring and asset impairment charges 1,870 -- 11,190 -- 13,060 Interest expense 10 384 17 634 1,045 Depreciation and amortization 8,424 9,383 9,149 957 27,913 Income taxes 880 2,349 306 (28,769 ) (25,234 ) Profit (loss) (112,954 ) 45,464 3,070 1,586 (62,834 ) Assets 536,744 590,512 309,397 367,211 1,803,864 Capital expenditures 14,823 8,731 4,580 769 28,903 Segment information for 2017 Infrastructure Aggregate and Mining Group Energy Group Corporate Total Revenues from external customers $ 553,691 $ 403,720 $ 227,328 $ -- $ 1,184,739 Intersegment revenues 25,965 16,209 24,877 -- 67,051 Interest expense 49 634 9 148 840 Depreciation and amortization 7,581 9,363 7,904 954 25,802 Income taxes 1,318 462 491 17,356 19,627 Profit (loss) 26,641 35,748 16,219 (40,963 ) 37,645 Assets 666,651 558,684 304,158 390,300 1,919,793 Capital expenditures 7,424 9,194 3,540 604 20,762 Segment information for 2016 Infrastructure Aggregate and Mining Group Energy Group Corporate Total Revenues from external customers $ 608,908 $ 359,760 $ 178,763 $ -- $ 1,147,431 Intersegment revenues 16,957 35,031 24,946 -- 76,934 Interest expense 31 948 4 412 1,395 Depreciation and amortization 7,205 10,033 6,655 920 24,813 Income taxes 3,033 664 437 27,973 32,107 Profit (loss) 71,482 34,877 4,145 (55,992 ) 54,512 Assets 657,225 518,351 271,121 417,351 1,864,048 Capital expenditures 14,451 7,437 5,018 178 27,084 The totals of segment information for all reportable segments reconciles to consolidated totals as follows: 2018 2017 2016 Net income attributable to controlling interest Total profit (loss) for reportable segments $ (64,420 ) $ 78,608 $ 110,504 Corporate expenses, net 1,586 (40,963 ) (55,992 ) Net loss attributable to non-controlling interest 295 205 171 Recapture (elimination) of intersegment profit 2,090 (55 ) 476 Total consolidated net income (loss) attributable to controlling interest $ (60,449 ) $ 37,795 $ 55,159 Assets Total assets for reportable segments $ 1,436,653 $ 1,529,493 $ 1,446,697 Corporate assets 367,211 390,300 417,351 Elimination of intercompany profit in inventory (4,986 ) (7,075 ) (7,020 ) Elimination of intercompany receivables (664,914 ) (717,873 ) (688,369 ) Elimination of investment in subsidiaries (300,709 ) (303,209 ) (272,766 ) Other 22,202 (2,057 ) (52,292 ) Total consolidated assets $ 855,457 $ 889,579 $ 843,601 Sales into major geographic regions were as follows: Year Ended December 31 2018 2017 2016 United States $ 915,814 $ 932,294 $ 941,273 Canada 61,582 65,509 37,539 Africa 45,613 36,847 31,557 Australia and Oceania 38,645 40,201 29,948 South America (excluding Brazil) 30,081 18,562 28,204 Other European Countries 25,985 18,679 19,198 Mexico 9,632 8,508 13,489 Russia 9,571 13,609 3,185 Middle East 7,877 4,881 3,403 Brazil 6,292 10,478 4,300 Other Asian Countries 5,472 10,286 6,926 Japan and Korea 3,649 4,760 10,825 China 2,765 6,113 4,595 Post-Soviet States (excluding Russia) 2,730 5,951 3,293 Central America (excluding Mexico) 2,706 2,929 5,904 West Indies 1,494 3,421 2,994 India 957 1,026 318 Other 734 685 480 Total foreign 255,785 252,445 206,158 Total consolidated sales $ 1,171,599 $ 1,184,739 $ 1,147,431 Long-lived assets by major geographic region are as follows: December 31 2018 2017 United States $ 162,775 $ 158,683 Brazil 8,866 11,114 Northern Ireland 7,641 6,342 South Africa 4,682 5,684 Australia 4,624 4,532 Canada 3,480 2,893 Germany 345 1,148 Chile 35 -- Total foreign 29,673 31,713 Total $ 192,448 $ 190,396 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | 19. Accumulated Other Comprehensive Loss The after-tax components comprising accumulated other comprehensive loss is summarized below: December 31 2018 2017 Foreign currency translation adjustment $ (30,656 ) $ (21,140 ) Unrecognized pension and post-retirement benefit cost, net of tax of $2,230 and $2,192, respectively (3,227 ) (3,103 ) Accumulated other comprehensive loss $ (33,883 ) $ (24,243 ) See Note 12, Pension and Retirement Plans, for discussion of the amounts recognized in accumulated other comprehensive loss related to the Company’s Kolberg-Pioneer, Inc. defined pension plan. |
Other Income
Other Income | 12 Months Ended |
Dec. 31, 2018 | |
Other Income [Abstract] | |
Other Income | 20. Other Income Other income consists of the following: Year Ended December 31 2018 2017 2016 Investment loss $ (228 ) $ (96 ) $ (276 ) Licensing fees -- 651 546 Other 764 663 259 Total $ 536 $ 1,218 $ 529 |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Business Combinations | 21. Business Combinations In October, 2017, the Company acquired substantially all of the assets and liabilities of RexCon LLC (“RexCon”) for a total purchase price of $26,443. The purchase price was paid in cash with $3,000 deposited into escrow for a period of time not to exceed 18 months pending final resolution of certain post-closing adjustments and any indemnification claims. The Company’s allocation of the purchase price includes the recognition of $3,488 of goodwill and $7,778 of other intangible assets consisting of non-compete agreements (5-year useful life), technology (19-year useful life), trade names (15-year useful life), and customer relationships (18-year useful life). The revenues and results of operations of RexCon were not significant in relation to the Company’s consolidated financial statements for the period ended December 31, 2017 and would not have been material on a proforma basis to any earlier period. RexCon’s operating results are included in the Company’s Energy Group beginning in the fourth quarter of 2017. The Company determined that the full $3,488 of goodwill that was acquired in the acquisition was impaired in the fourth quarter of 2018. RexCon, located in Burlington, Wisconsin was founded in 2003 through an asset acquisition with the original company founded over 100 years ago. RexCon is a manufacturer of high-quality stationary and portable, central mix and ready mix concrete batch plants, concrete mixers and concrete paving equipment. RexCon specializes in providing portable, high-production concrete equipment to contractors and producers worldwide in a totally integrated turnkey production system, including customized site layout and design engineering, batch plants, mixers, water heaters and chillers, ice production and delivery systems, material handling conveyors, gensets and power distribution, cement silos and screws, central dust collection, aggregate heating and cooling systems, batch automation controls and batch office trailers. In August 2016, the Company acquired substantially all of the assets and certain liabilities of Power Flame Incorporated (“Power Flame”) for a total purchase price of $39,765. The purchase price was paid in cash with $4,000 deposited into escrow for a period of time not to exceed two years pending final resolution of certain post-closing adjustments and any indemnification claims. The Company’s allocation of the purchase price resulted in the recognition of $12,632 of goodwill and $17,990 of other intangible assets consisting of technology (19 year useful life), trade names (15 year useful life) and customer relationships (18 year useful life). The revenues and results of operations of Power Flame were not significant in relation to the Company’s consolidated financial statements for the period ended December 31, 2016 and would not have been material on a proforma basis to any earlier period. Power Flame’s operating results are included in the Energy Group beginning in the third quarter of 2016. The Company determined that an amount equal to $7,702 of the goodwill that was acquired in the acquisition was impaired in the fourth quarter of 2018. Power Flame, located in Parsons, Kansas, began operations in 1948 and manufactures and sells gas, oil and combination gas/oil and low NOx burners with outputs ranging from 400 thousand BTU’s per hour to 120 million BTU’s per hour as well as combustion control systems designed for commercial, industrial and process heating applications. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Astec Australia Pty Ltd Astec do Brasil Fabricacao de Equipamentos Ltda. (93% owned) Astec, Inc. Astec Insurance Company Astec Industries LatAm SpA 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 (99% owned) Peterson Pacific Corp. Power Flame Incorporated RexCon, Inc. 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, 2018 and 2017 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 |
Accounts Receivable | Accounts Receivable |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts Year Ended December 31 2018 2017 2016 Allowance balance, beginning of year $ 1,716 $ 1,511 $ 1,837 Provision 223 482 280 Write offs (696 ) (308 ) (560 ) Other (59 ) 31 (46 ) Allowance balance, end of year $ 1,184 $ 1,716 $ 1,511 |
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 net realizable value determined on each separate unit. Each unit of rental equipment is valued at the lower of original manufacturing, acquired or trade-in cost or net realizable value. Inventories are valued at the lower of cost (first-in, first-out) or net realizable value, 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 the net realizable 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 as follows: dealer network and customer relationships: 8-19 years; trade names: 15 years; other: 5-19 years. Goodwill 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. Other factors used in evaluating the fair value of a reporting unit could include deterioration in the general economy, fluctuations in foreign exchange, deterioration in the industry or markets in which the reporting unit operates, an increased competitive market, a regulatory or political development in the market, increases in raw materials, labor costs or other factors that have a negative effect on earnings and cash flows, a decline in actual or budgeted earnings and cash flows, or entity specific changes in management, key personnel, strategy or customer base. If the fair value of a reporting unit is found to be less than its book value, the company will record an impairment loss equal to the excess, if any, of the book value over the fair value. 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 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. Determining the 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. 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. 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 Depending on the terms of the arrangement with the customer, recognition of a portion of the consideration received may be deferred and recorded as a contract liability if we have to satisfy a future obligation, such as to provide installation assistance, service work to be performed in the future without charge, floor plan interest to be reimbursed to our dealer customers, payments for extended warranties, for annual rebates given to certain high volume customers or for obligations for future estimated returns to be allowed based upon historical trends. Certain contracts include terms and conditions pursuant to which the Company recognizes revenues upon the completion of production, and the equipment 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, which transfers control of the equipment, 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 had one large pellet plant sale on which revenue was recorded over time based upon the ratio of costs incurred to estimated total costs. Penalties were accounted for as a reduction in sales. Service and Equipment Installation Revenue – Purchasers of certain of the Company’s equipment often contract with the Company to provide installation services. Installation is typically separately priced in the contract based upon observable market prices for stand-alone performance obligations or a cost plus margin approach when one is not available. The Company may also provide future services on equipment sold at the customer’s request, which may be for equipment repairs after the warranty period expires. Service is billed on a cost plus margin approach or at a standard rate per hour. Used Equipment Sales - Used equipment is obtained by trade-in on new equipment sales, as a separate purchase in the open market or from the Company’s equipment rental business. Revenues from the sale of used equipment are recognized upon transfer of control to the customer at agreed upon pricing. Freight Revenue – Under a practical expedient allowed under ASU 2014-09, the Company records revenues earned for shipping and handling as revenue at the time of shipment, regardless of whether or not it is identified as a separate performance obligation. The cost of shipping and handling is classified as cost of goods sold concurrently. Other Revenues – Miscellaneous revenues and offsets not associated with one of the above classifications include rental revenues, extended warranty revenues, early pay discounts and floor plan interest reimbursements. |
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 (loss) 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 |
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 (loss) per share: Year Ended December 31 2018 2017 2016 Denominator: Denominator for basic earnings (loss) per share 22,902 23,025 22,992 Effect of dilutive securities: Restricted stock units -- 96 85 Supplemental executive retirement plan -- 63 65 Denominator for diluted earnings (loss) per share 22,902 23,184 23,142 |
Derivatives and Hedging Activities | Derivatives and Hedging Activities |
Business Combinations | Business Combinations |
Subsequent Events Review | Subsequent Events Review |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments - Overall (Subtopic 825-10)”, which requires, among other things, equity investments with readily determinable fair values, except those accounted for under the equity method of accounting or those that result in consolidation of the investee, to be measured at fair value with changes in fair value recognized in net income. The new standard was further clarified by the issuance of ASU No. 2018-03, “Technical Corrections and Improvements to Financial Instruments – Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities” in February 2018. The standards are effective for public companies in fiscal years beginning after December 15, 2017, and the Company adopted the standard effective January 1, 2018. The adoption of these standards did not have a material impact on the Company's financial position, results of operations or cash flows. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”, which significantly changes the accounting for operating leases by lessees. The accounting applied by lessors is largely unchanged from that applied under previous guidance. The new guidance establishes a right-of-use (“ROU”) model and requires lessees to recognize lease assets and lease liabilities in the balance sheet, initially measured at the present value of the lease payments, for leases which were classified as operating leases under previous guidance. Lease cost included in the statement of operations will be calculated so that the cost of the lease is allocated over the lease term, generally on a straight-line basis. The Company has made an accounting policy election to exclude leases with a term of 12 months or less from the requirement to record related assets and liabilities. Certain provisions of ASU No. 2016-02 were later modified or clarified by the issuance of ASU 2018-11, “Leases (Topic 842): Targeted Improvements” and ASU 2018-10, “Codification Improvements to Topic 842, Leases”. A modified retrospective transition approach is required by the ASU and its provisions must be applied to all leases existing at the date of initial application. An entity may choose to use either (1) the standard’s effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. The new standards are effective for public companies for fiscal years beginning after December 15, 2018. The Company adopted the new standards effective January 1, 2019 using the effective date as the date of initial application. Consequently, financial information will not be updated and the disclosures required under the new standards will not be provided for periods before January 1, 2019. The standards provide a number of optional practical expedients in transition which the Company is continuing to evaluate. The Company does not expect the adoption of these standards to have a material impact on its results of operations or cash flows; however, the Company continues to evaluate the impact the adoption of the new standards will have on its financial position. While the Company continues to assess all of the effects of adoption, it currently believes the most significant effects relate to the recognition of new ROU assets and lease liabilities on its consolidated balance sheet for its operating leases and new disclosures about its leasing activities. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments”. The standard changes how credit losses are measured for most financial assets and certain other instruments that currently are not measured through net income. The standard will require an expected loss model for instruments measured at amortized cost as opposed to the current incurred loss approach. In valuing available for sale debt securities, allowances will be required to be recorded, rather than the current approach of reducing the carrying amount, for other than temporary impairments. A cumulative adjustment to retained earnings is to be recorded as of the beginning of the period of adoption to reflect the impact of applying the provisions of the standard. The standard is effective for public companies for periods beginning after December 15, 2019 and the Company expects to adopt the new standard as of January 1, 2020. The Company has not yet determined what impact, if any, the adoption of this new standard will have on the Company's financial position, results of operations or cash flows. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force)” which clarifies how certain cash receipts and cash payments should be presented on the statement of cash flows. The statement also addresses how the predominance principle should be applied when cash payments have aspects of more than one class of cash flows. In October 2016, the FASB issued ASU No. 2016-16, “Income Taxes (Topic 740), Intra-Entity Transfers of Assets Other Than Inventory” which requires companies to account for the income tax effects of intercompany sales and transfers of assets other than inventory, such as intangible assets, when the transfer occurs. This is a change from previous guidance, which required companies to defer the income tax effects of intercompany transfers of assets until the asset has been sold to an outside party or otherwise recognized by being depreciated, amortized, or impaired. The new guidance requires companies to defer the income tax effects of only intercompany transfers of inventory. The standard is effective for public companies in fiscal years beginning after December 15, 2017. In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805), Clarifying the Definition of a Business,” which provides additional guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The standard is effective for public companies for annual or interim periods beginning after December 15, 2017. The Company adopted the new standard effective January 1, 2018. The application of this standard did not have a material impact on the Company’s financial position, results of operations or cash flows. In August 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging (Topic 815), Targeted Improvements to Hedging Activities”, to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. The new guidance is effective for public companies for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years with early adoption permitted in any interim period after its issuance. The Company adopted the new standard effective January 1, 2019. The Company does not expect the application of this standard to have a material impact on its financial position, results of operations or cash flows. In February 2018, the FASB issued ASU No. 2018-02, “Income Statement – Reporting Comprehensive Income (Topic 220), Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”, which permits companies to reclassify tax effects stranded in accumulated other comprehensive income (“OCI”) as a result of tax reform impacting tax rates or other items, such as changing from a worldwide tax system to a territorial system, from OCI to retained earnings. Other tax effects stranded in OCI due to other reasons, such as prior changes in tax laws or changes in valuation allowances, may not be reclassified. Additional disclosures will also be required upon adoption of the new standard. The new standard is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company adopted this new standard effective January 1, 2019. The Company does not expect the adoption of this standard to have a material impact on its financial position, results of operations or cash flows. In March 2018, the FASB issued ASU No. 2018-05 “Income Taxes (Topic 740), amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (SEC Update)”, which addresses the accounting and disclosures around the enactment of the Tax Cuts and Jobs Act and the Securities and Exchange Commission’s Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”). The Company adopted this new standard in the first quarter of 2018. See Note 14, Income Taxes, for the disclosures related to this amended guidance. In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement” which aims to improve the overall usefulness of disclosures to financial statement users and reduce unnecessary costs to companies when preparing fair value measurement disclosures. The standard is effective for annual and interim periods beginning after December 15, 2019 with early adoption permitted. The Company expects to adopt this new standard effective January 1, 2020. The Company does not expect the adoption of this new standard to have a material impact on its financial position, results of operations or cash flows. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Allowance for Doubtful Accounts | The following table represents a rollforward of the allowance for doubtful accounts for the years ended December 31, 2018, 2017 and 2016: Year Ended December 31 2018 2017 2016 Allowance balance, beginning of year $ 1,716 $ 1,511 $ 1,837 Provision 223 482 280 Write offs (696 ) (308 ) (560 ) Other (59 ) 31 (46 ) Allowance balance, end of year $ 1,184 $ 1,716 $ 1,511 |
Computation of Earnings (Loss) Per Share | The following table sets forth a reconciliation of the number of shares used in the computation of basic and diluted earnings (loss) per share: Year Ended December 31 2018 2017 2016 Denominator: Denominator for basic earnings (loss) per share 22,902 23,025 22,992 Effect of dilutive securities: Restricted stock units -- 96 85 Supplemental executive retirement plan -- 63 65 Denominator for diluted earnings (loss) per share 22,902 23,184 23,142 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventories [Abstract] | |
Inventories | Inventories consist of the following: December 31 2018 2017 Raw materials and parts $ 173,919 $ 146,144 Work-in-process 69,718 129,441 Finished goods 89,152 94,571 Used equipment 23,155 21,223 Total $ 355,944 $ 391,379 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Measurements [Abstract] | |
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, 2018 and 2017 are level 1 and level 2 in the fair value hierarchy: December 31, 2018 Level 1 Level 2 Total Financial Assets: Trading equity securities: SERP money market fund $ 229 $ -- $ 229 SERP mutual funds 4,755 -- 4,755 Preferred stocks 248 -- 248 Trading debt securities: Corporate bonds 5,398 -- 5,398 Municipal bonds -- 1,546 1,546 Floating rate notes 1,300 -- 1,300 U.S. Treasury bills 2,210 -- 2,210 Asset-backed securities -- 442 442 Other -- 708 708 Derivative financial instruments -- 333 333 Total financial assets $ 14,140 $ 3,029 $ 17,169 Financial Liabilities: SERP liabilities $ -- $ 6,641 $ 6,641 Total financial liabilities $ -- $ 6,641 $ 6,641 December 31, 2017 Level 1 Level 2 Total Financial Assets: Trading equity securities: SERP money market fund $ 124 $ -- $ 124 SERP mutual funds 4,839 -- 4,839 Preferred stocks 364 -- 364 Trading debt securities: Corporate bonds 5,661 -- 5,661 Municipal bonds -- 1,912 1,912 Floating rate notes 753 -- 753 U.S. Treasury bills 1,030 -- 1,030 Asset-backed securities -- 526 526 Other -- 968 968 Total financial assets $ 12,771 $ 3,406 $ 16,177 Financial Liabilities: SERP liabilities $ -- $ 8,552 $ 8,552 Derivative financial instruments -- 112 112 Total financial liabilities $ -- $ 8,664 $ 8,664 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments [Abstract] | |
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, 2018 Trading equity securities $ 5,546 $ 50 $ 365 $ 5,231 Trading debt securities 11,817 55 267 11,605 Total $ 17,363 $ 105 $ 632 $ 16,836 December 31, 2017 Trading equity securities $ 4,964 $ 394 $ 31 $ 5,327 Trading debt securities 10,971 58 179 10,850 Total $ 15,935 $ 452 $ 210 $ 16,177 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill [Abstract] | |
Goodwill by Reporting Segment | The changes in the carrying amount of goodwill and accumulated impairment losses by reporting segment during the years ended December 31, 2018 and 2017 are as follows: Infrastructure Group Aggregate and Mining Group Energy Group Total Balance, December 31, 2016: Goodwill $ 10,758 $ 31,920 $ 19,369 $ 62,047 Accumulated impairment (2,310 ) (12,196 ) (6,737 ) (21,243 ) Net 8,448 19,724 12,632 40,804 Acquisition -- -- 3,488 3,488 Foreign currency translation 125 1,315 -- 1,440 Balance, December 31, 2017: Goodwill 10,883 33,235 22,857 66,975 Accumulated impairment losses (2,310 ) (12,196 ) (6,737 ) (21,243 ) Net 8,573 21,039 16,120 45,732 Restructuring write off (955 ) -- -- (955 ) Foreign currency translation (49 ) (790 ) -- (839 ) Impairment -- -- (11,190 ) (11,190 ) Balance, December 31, 2018: Goodwill 9,879 32,445 22,857 65,181 Accumulated impairment (2,310 ) (12,196 ) (17,927 ) (32,433 ) Net $ 7,569 $ 20,249 $ 4,930 $ 32,748 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Intangible Assets [Abstract] | |
Intangible Assets | Intangible assets consisted of the following at December 31, 2018 and 2017: 2018 2017 Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Dealer network and customer relationships $ 30,909 $ 14,472 $ 16,437 $ 31,376 $ 10,856 $ 20,520 Trade names 9,536 2,509 7,027 9,650 1,914 7,736 Other 6,618 4,712 1,906 6,821 4,125 2,696 Total $ 47,063 $ 21,693 $ 25,370 $ 47,847 $ 16,895 $ 30,952 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property and Equipment [Abstract] | |
Property and Equipment | Property and equipment at cost, less accumulated depreciation, is as follows: December 31 2018 2017 Land $ 15,774 $ 15,568 Building and land improvements 145,913 143,339 Construction in progress 10,410 10,680 Manufacturing and office equipment 260,420 244,324 Aviation equipment 14,424 14,227 Less accumulated depreciation (254,493 ) (237,742 ) Total $ 192,448 $ 190,396 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Minimum Rental Commitments for Non-Cancelable Operating Leases | Minimum rental commitments for all noncancelable operating leases at December 31, 2018 are as follows: 2019 $ 1,992 2020 1,100 2021 388 2022 144 2023 66 Thereafter 12 $ 3,702 |
Product Warranty Reserves (Tabl
Product Warranty Reserves (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Product Warranty Reserves [Abstract] | |
Product Warranty Reserves | Changes in the Company’s product warranty liability during 2018, 2017 and 2016 are as follows: 2018 2017 2016 Reserve balance, beginning of year $ 15,410 $ 13,156 $ 9,100 Warranty liabilities accrued 13,219 16,725 18,912 Warranty liabilities settled (17,539 ) (14,642 ) (15,125 ) Other (162 ) 171 269 Reserve balance, end of year $ 10,928 $ 15,410 $ 13,156 |
Pension and Retirement Plans (T
Pension and Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Pension and Retirement Plans [Abstract] | |
Benefit Obligations, Plan Assets and Funded Status of Plans | The following provides information regarding benefit obligations, plan assets and the funded status of the plan: Pension Benefits 2018 2017 Change in benefit obligation Benefit obligation, beginning of year $ 16,916 $ 16,104 Interest cost 578 630 Actuarial (gain)/loss (1,021 ) 867 Benefits paid (732 ) (685 ) Benefit obligation, end of year 15,741 16,916 Accumulated benefit obligation 15,741 16,916 Change in plan assets Fair value of plan assets, beginning of year 14,717 13,241 Actual gain/(loss) on plan assets (909 ) 1,746 Employer contribution 1,376 415 Benefits paid (732 ) (685 ) Fair value of plan assets, end of year 14,452 14,717 Funded status, end of year $ (1,289 ) $ (2,199 ) |
Amounts Recognized in Balance Sheet | Amounts recognized in the consolidated balance sheets Noncurrent liabilities $ (1,289 ) $ (2,199 ) Net amount recognized $ (1,289 ) $ (2,199 ) |
Amounts Recognized in Other Comprehensive Loss | Amounts recognized in accumulated other comprehensive loss consist of Net loss $ 5,687 $ 5,463 Net amount recognized $ 5,687 $ 5,463 |
Weighted Average Assumptions Used | Weighted average assumptions used to determine benefit obligations as of December 31 Discount rate 4.10 % 3.50 % Expected return on plan assets 6.00 % 6.25 % Rate of compensation increase N/A N/A |
Allocation of Pension Plan Assets and Target Allocation Range of Assets | The allocation of assets within the mutual fund as of December 31 and the target asset allocation ranges by asset category are as follows: Actual Allocation Asset Category 2018 2017 2018 & 2017 Target Allocation Ranges Equity securities 46.9 % 49.4 % 40 - 65 % Debt securities 46.2 % 43.2 % 30 - 50 % Cash and equivalents 6.9 % 7.4 % 0 - 15 % Total 100.0 % 100.0 % |
Net Periodic Benefit Cost | Net periodic benefit cost for 2018, 2017 and 2016 included the following components: Pension Benefits 2018 2017 2016 Components of net periodic benefit cost Interest cost $ 578 $ 630 $ 650 Expected return on plan assets (802 ) (720 ) (782 ) Amortization of actuarial loss 465 530 480 Net periodic benefit cost 241 440 348 Other changes in plan assets and benefit obligations recognized in other comprehensive income Net actuarial (gain) loss for the year 690 (159 ) 533 Amortization of net loss (465 ) (530 ) (480 ) Total recognized in other comprehensive income 225 (689 ) 53 Total recognized in net periodic benefit cost and other comprehensive income $ 466 $ (249 ) $ 401 Weighted average assumptions used to determine net periodic benefit cost for years ended December 31 Discount rate 3.50 % 4.00 % 4.28 % Expected return on plan assets 6.25 % 6.25 % 7.00 % |
Estimated Future Benefit Payments | The following estimated future benefit payments are expected in the years indicated: Pension Benefits 2019 $ 840 2020 870 2021 910 2022 920 2023 940 2024 - 2028 4,920 |
Assets of SERP | Assets of the SERP consist of the following: December 31, 2018 December 31, 2017 Cost Market Cost Market Company stock $ 1,886 $ 1,658 $ 1,960 $ 3,589 Equity securities 5,262 4,983 4,589 4,963 Total $ 7,148 $ 6,641 $ 6,549 $ 8,552 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes [Abstract] | |
Income (Loss) Before Income Taxes | For financial reporting purposes, income (loss) before income taxes includes the following components: Year Ended December 31 2018 2017 2016 United States $ (86,874 ) $ 55,980 $ 87,326 Foreign 896 1,237 (231 ) Income (loss) before income taxes $ (85,978 ) $ 57,217 $ 87,095 |
Provision (Benefit) for Income Tax | The provision (benefit) for income taxes consists of the following: Year Ended December 31 2018 2017 2016 Current provision (benefit): Federal $ (3,995 ) $ 16,178 $ 30,623 State 892 2,866 4,098 Foreign 3,254 874 907 Total current provision 151 19,918 35,628 Deferred provision (benefit): Federal (19,142 ) 107 (2,653 ) State (5,788 ) (455 ) (1,213 ) Foreign (455 ) 57 345 Total deferred benefit (25,385 ) (291 ) (3,521 ) Total provision (benefit): Federal (23,137 ) 16,285 27,970 State (4,896 ) 2,411 2,885 Foreign 2,799 931 1,252 Total income tax provision (benefit) $ (25,234 ) $ 19,627 $ 32,107 |
Reconciliation of Provision for Income Taxes at Statutory Federal Income Tax Rate | A reconciliation of the provision (benefit) for income taxes at the statutory federal income tax rate to the amount provided is as follows: Year Ended December 31 2018 2017 2016 Tax expense (benefit) at the statutory federal income tax rate $ (18,055 ) $ 20,026 $ 30,483 Domestic production activity deduction -- (1,661 ) (1,641 ) State income tax, net of federal income tax (2,976 ) 1,520 1,876 Research and development tax credits (4,660 ) (922 ) (785 ) FIN 48 impact 1,856 124 (240 ) Liquidation of subsidiary (1,403 ) -- -- Valuation allowance impact 978 1,585 1,638 U.S. tax reform impact (193 ) (505 ) -- Other items (781 ) (540 ) 776 Total income tax provision (benefit) $ (25,234 ) $ 19,627 $ 32,107 |
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 2018 2017 Deferred tax assets: Inventory reserves $ 4,513 $ 4,287 Warranty reserves 2,275 3,560 Bad debt reserves 182 299 State tax loss carryforwards 7,265 2,710 Accrued vacation 1,612 1,712 SERP 364 367 Deferred compensation 881 1,293 Restricted stock units 1,728 1,664 Goodwill 2,157 -- Pension and post-employment benefits 1,536 1,448 Outside basis difference 4,496 -- Federal net operating loss 15,655 -- Foreign net operating losses 5,069 6,310 Other 5,025 2,478 Valuation allowances (8,540 ) (8,318 ) Total deferred tax assets 44,218 17,810 Deferred tax liabilities: Property and equipment 16,156 14,562 Intangibles 541 769 Goodwill -- 654 Pension 1,051 758 Total deferred tax liabilities 17,748 16,743 Total net deferred assets $ 26,470 $ 1,067 |
Rollforward of Deferred Tax Assets Valuation Allowance | The following table represents a roll forward of the deferred tax asset valuation allowance for the years ended December 31, 2018, 2017 and 2016: Year Ended December 31 2018 2017 2016 Allowance balance, beginning of year $ 8,318 $ 8,280 $ 8,065 Provision 978 1,585 1,639 Write-offs -- (1,862 ) (289 ) Other (756 ) 315 (1,135 ) Allowance balance, end of year $ 8,540 $ 8,318 $ 8,280 |
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 2018 2017 2016 Balance, beginning of year $ 365 $ 238 $ 603 Additions for tax positions taken in current year 1,722 127 235 Reductions due to lapse of statutes of limitations (39 ) -- (16 ) Decreases related to settlements with tax authorities -- -- (584 ) Balance, end of year $ 2,048 $ 365 $ 238 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Shareholders' Equity [Abstract] | |
Changes in Restricted Stock Units | Changes in restricted stock units during the year ended December 31, 2018 are as follows: 2018 Weighted Average Unvested restricted stock units, beginning of year 161 $ 53.09 Units granted 61 58.45 Units forfeited (25 ) 50.84 Units vested (32 ) 45.79 Unvested restricted stock units, end of year 165 56.82 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue | The following table disaggregates the Company’s revenue by major source for the period ended December 31, 2018 (excluding intercompany sales): Infrastructure Group Aggregate and Mining Group Energy Group Total Net Sales - Domestic: Equipment sales $ 296,974 $ 220,015 $ 178,584 $ 695,573 Pellet plant agreement sale reduction (75,315 ) -- -- (75,315 ) Parts and component sales 119,823 71,862 42,666 234,351 Service and equipment installation revenue 10,822 1,844 6,355 19,021 Used equipment sales 8,098 3,127 4,358 15,583 Freight revenue 12,502 6,265 5,896 24,663 Other 1,022 (741 ) 1,657 1,938 Total domestic revenue 373,926 302,372 239,516 915,814 Net Sales - International: Equipment sales 43,516 98,604 24,308 166,428 Parts and component sales 19,215 44,609 10,528 74,352 Service and equipment installation revenue 3,152 1,069 390 4,611 Used equipment sales 1,693 2,948 908 5,549 Freight revenue 1,043 3,266 417 4,726 Other (256 ) 296 79 119 Total international revenue 68,363 150,792 36,630 255,785 Total net sales $ 442,289 $ 453,164 $ 276,146 $ 1,171,599 |
Operations by Industry Segmen_2
Operations by Industry Segment and Geographic Area (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Operations by Industry Segment and Geographic Area [Abstract] | |
Segment Information | Intersegment sales and transfers are valued at prices comparable to those for unrelated parties. Segment information for 2018 Infrastructure Group Aggregate and Mining Group Energy Group Corporate Total Revenues from external customers $ 442,289 $ 453,164 $ 276,146 $ -- $ 1,171,599 Intersegment revenues 21,568 16,603 17,578 -- 55,749 Restructuring and asset impairment charges 1,870 -- 11,190 -- 13,060 Interest expense 10 384 17 634 1,045 Depreciation and amortization 8,424 9,383 9,149 957 27,913 Income taxes 880 2,349 306 (28,769 ) (25,234 ) Profit (loss) (112,954 ) 45,464 3,070 1,586 (62,834 ) Assets 536,744 590,512 309,397 367,211 1,803,864 Capital expenditures 14,823 8,731 4,580 769 28,903 Segment information for 2017 Infrastructure Aggregate and Mining Group Energy Group Corporate Total Revenues from external customers $ 553,691 $ 403,720 $ 227,328 $ -- $ 1,184,739 Intersegment revenues 25,965 16,209 24,877 -- 67,051 Interest expense 49 634 9 148 840 Depreciation and amortization 7,581 9,363 7,904 954 25,802 Income taxes 1,318 462 491 17,356 19,627 Profit (loss) 26,641 35,748 16,219 (40,963 ) 37,645 Assets 666,651 558,684 304,158 390,300 1,919,793 Capital expenditures 7,424 9,194 3,540 604 20,762 Segment information for 2016 Infrastructure Aggregate and Mining Group Energy Group Corporate Total Revenues from external customers $ 608,908 $ 359,760 $ 178,763 $ -- $ 1,147,431 Intersegment revenues 16,957 35,031 24,946 -- 76,934 Interest expense 31 948 4 412 1,395 Depreciation and amortization 7,205 10,033 6,655 920 24,813 Income taxes 3,033 664 437 27,973 32,107 Profit (loss) 71,482 34,877 4,145 (55,992 ) 54,512 Assets 657,225 518,351 271,121 417,351 1,864,048 Capital expenditures 14,451 7,437 5,018 178 27,084 |
Totals 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: 2018 2017 2016 Net income attributable to controlling interest Total profit (loss) for reportable segments $ (64,420 ) $ 78,608 $ 110,504 Corporate expenses, net 1,586 (40,963 ) (55,992 ) Net loss attributable to non-controlling interest 295 205 171 Recapture (elimination) of intersegment profit 2,090 (55 ) 476 Total consolidated net income (loss) attributable to controlling interest $ (60,449 ) $ 37,795 $ 55,159 |
Reconciliation of Assets from Segment to Consolidated Totals | Assets Total assets for reportable segments $ 1,436,653 $ 1,529,493 $ 1,446,697 Corporate assets 367,211 390,300 417,351 Elimination of intercompany profit in inventory (4,986 ) (7,075 ) (7,020 ) Elimination of intercompany receivables (664,914 ) (717,873 ) (688,369 ) Elimination of investment in subsidiaries (300,709 ) (303,209 ) (272,766 ) Other 22,202 (2,057 ) (52,292 ) Total consolidated assets $ 855,457 $ 889,579 $ 843,601 |
Sales into Major Geographic Regions | Sales into major geographic regions were as follows: Year Ended December 31 2018 2017 2016 United States $ 915,814 $ 932,294 $ 941,273 Canada 61,582 65,509 37,539 Africa 45,613 36,847 31,557 Australia and Oceania 38,645 40,201 29,948 South America (excluding Brazil) 30,081 18,562 28,204 Other European Countries 25,985 18,679 19,198 Mexico 9,632 8,508 13,489 Russia 9,571 13,609 3,185 Middle East 7,877 4,881 3,403 Brazil 6,292 10,478 4,300 Other Asian Countries 5,472 10,286 6,926 Japan and Korea 3,649 4,760 10,825 China 2,765 6,113 4,595 Post-Soviet States (excluding Russia) 2,730 5,951 3,293 Central America (excluding Mexico) 2,706 2,929 5,904 West Indies 1,494 3,421 2,994 India 957 1,026 318 Other 734 685 480 Total foreign 255,785 252,445 206,158 Total consolidated sales $ 1,171,599 $ 1,184,739 $ 1,147,431 |
Long-Lived Assets by Major Geographic Region | Long-lived assets by major geographic region are as follows: December 31 2018 2017 United States $ 162,775 $ 158,683 Brazil 8,866 11,114 Northern Ireland 7,641 6,342 South Africa 4,682 5,684 Australia 4,624 4,532 Canada 3,480 2,893 Germany 345 1,148 Chile 35 -- Total foreign 29,673 31,713 Total $ 192,448 $ 190,396 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The after-tax components comprising accumulated other comprehensive loss is summarized below: December 31 2018 2017 Foreign currency translation adjustment $ (30,656 ) $ (21,140 ) Unrecognized pension and post-retirement benefit cost, net of tax of $2,230 and $2,192, respectively (3,227 ) (3,103 ) Accumulated other comprehensive loss $ (33,883 ) $ (24,243 ) |
Other Income (Tables)
Other Income (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Income [Abstract] | |
Other Income | Other income consists of the following: Year Ended December 31 2018 2017 2016 Investment loss $ (228 ) $ (96 ) $ (276 ) Licensing fees -- 651 546 Other 764 663 259 Total $ 536 $ 1,218 $ 529 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Foreign Currency Translation [Abstract] | |||
Foreign currency transaction gains and (losses), net | $ 539 | $ 431 | $ (246) |
Allowance for doubtful accounts [Roll Forward] | |||
Allowance balance, beginning of year | 1,716 | 1,511 | 1,837 |
Provision | 223 | 482 | 280 |
Write offs | (696) | (308) | (560) |
Other | (59) | 31 | (46) |
Allowance balance, end of year | 1,184 | 1,716 | 1,511 |
Advertising Expense [Abstract] | |||
Advertising costs | $ 4,136 | $ 3,793 | $ 4,045 |
Denominator [Abstract] | |||
Denominator for basic earnings (loss) per share (in shares) | 22,902 | 23,025 | 22,992 |
Effect of dilutive securities [Abstract] | |||
Restricted stock units (in shares) | 0 | 96 | 85 |
Supplemental executive retirement plan (in shares) | 0 | 63 | 65 |
Denominator for diluted earnings (loss) per share (in shares) | 22,902 | 23,184 | 23,142 |
Minimum [Member] | |||
Product Warranty Reserve [Abstract] | |||
Product warranty reserve term | 3 months | ||
Maximum [Member] | |||
Product Warranty Reserve [Abstract] | |||
Product warranty reserve term | 2 years | ||
Airplanes [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 | ||
Astec do Brasil Fabricacao de Equipamentos LTDA [Member] | |||
Basis of Presentation [Abstract] | |||
Consolidation Less Than Wholly Owned Subsidiary Parent Ownership Percentage | 93.00% | ||
Osborn Engineered Products [Member] | |||
Basis of Presentation [Abstract] | |||
Consolidation Less Than Wholly Owned Subsidiary Parent Ownership Percentage | 99.00% | ||
General Liability Insurance [Member] | |||
Self-Insurance Reserves [Abstract] | |||
Amount captive is liable per occurrence of claims | $ 1,000 | ||
Workers' Compensation Insurance [Member] | |||
Self-Insurance Reserves [Abstract] | |||
Amount captive is liable per occurrence of claims | $ 350 | ||
Dealer Network and Customer Relationships [Member] | Minimum [Member] | |||
Estimated useful lives of definite lived intangible assets [Abstract] | |||
Estimated useful lives of intangible assets | 8 years | ||
Dealer Network and Customer Relationships [Member] | Maximum [Member] | |||
Estimated useful lives of definite lived intangible assets [Abstract] | |||
Estimated useful lives of intangible assets | 19 years | ||
Trade Names [Member] | |||
Estimated useful lives of definite lived intangible assets [Abstract] | |||
Estimated useful lives of intangible assets | 15 years | ||
Other [Member] | Minimum [Member] | |||
Estimated useful lives of definite lived intangible assets [Abstract] | |||
Estimated useful lives of intangible assets | 5 years | ||
Other [Member] | Maximum [Member] | |||
Estimated useful lives of definite lived intangible assets [Abstract] | |||
Estimated useful lives of intangible assets | 19 years |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Inventories [Abstract] | ||
Raw materials and parts | $ 173,919 | $ 146,144 |
Work-in-process | 69,718 | 129,441 |
Finished goods | 89,152 | 94,571 |
Used equipment | 23,155 | 21,223 |
Total | $ 355,944 | $ 391,379 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financial Assets [Abstract] | ||
Trading equity securities | $ 5,231 | $ 5,327 |
Trading debt securities | 11,605 | 10,850 |
Measured at Fair Value on a Recurring Basis [Member] | ||
Financial Assets [Abstract] | ||
Total financial assets | 17,169 | 16,177 |
Financial Liabilities [Abstract] | ||
SERP liabilities | 6,641 | 8,552 |
Derivative financial instruments | 112 | |
Total financial liabilities | 6,641 | 8,664 |
Measured at Fair Value on a Recurring Basis [Member] | Corporate Bonds [Member] | ||
Financial Assets [Abstract] | ||
Trading debt securities | 5,398 | 5,661 |
Measured at Fair Value on a Recurring Basis [Member] | Municipal Bonds [Member] | ||
Financial Assets [Abstract] | ||
Trading debt securities | 1,546 | 1,912 |
Measured at Fair Value on a Recurring Basis [Member] | Floating Rate Notes [Member] | ||
Financial Assets [Abstract] | ||
Trading debt securities | 1,300 | 753 |
Measured at Fair Value on a Recurring Basis [Member] | U.S. Treasury Bills [Member] | ||
Financial Assets [Abstract] | ||
Trading debt securities | 2,210 | 1,030 |
Measured at Fair Value on a Recurring Basis [Member] | Asset-Backed Securities [Member] | ||
Financial Assets [Abstract] | ||
Trading debt securities | 442 | 526 |
Measured at Fair Value on a Recurring Basis [Member] | Other [Member] | ||
Financial Assets [Abstract] | ||
Trading debt securities | 708 | 968 |
Measured at Fair Value on a Recurring Basis [Member] | Derivative Financial Instuments [Member] | ||
Financial Assets [Abstract] | ||
Trading debt securities | 333 | |
Measured at Fair Value on a Recurring Basis [Member] | Preferred Stocks [Member] | ||
Financial Assets [Abstract] | ||
Trading equity securities | 248 | 364 |
Measured at Fair Value on a Recurring Basis [Member] | Supplemental Employee Retirement Plan [Member] | Money Market Fund [Member] | ||
Financial Assets [Abstract] | ||
Trading equity securities | 229 | 124 |
Measured at Fair Value on a Recurring Basis [Member] | Supplemental Employee Retirement Plan [Member] | Mutual Funds [Member] | ||
Financial Assets [Abstract] | ||
Trading equity securities | 4,755 | 4,839 |
Measured at Fair Value on a Recurring Basis [Member] | Level 1 [Member] | ||
Financial Assets [Abstract] | ||
Total financial assets | 14,140 | 12,771 |
Financial Liabilities [Abstract] | ||
SERP liabilities | 0 | 0 |
Derivative financial instruments | 0 | |
Total financial liabilities | 0 | 0 |
Measured at Fair Value on a Recurring Basis [Member] | Level 1 [Member] | Corporate Bonds [Member] | ||
Financial Assets [Abstract] | ||
Trading debt securities | 5,398 | 5,661 |
Measured at Fair Value on a Recurring Basis [Member] | Level 1 [Member] | Municipal Bonds [Member] | ||
Financial Assets [Abstract] | ||
Trading debt securities | 0 | 0 |
Measured at Fair Value on a Recurring Basis [Member] | Level 1 [Member] | Floating Rate Notes [Member] | ||
Financial Assets [Abstract] | ||
Trading debt securities | 1,300 | 753 |
Measured at Fair Value on a Recurring Basis [Member] | Level 1 [Member] | U.S. Treasury Bills [Member] | ||
Financial Assets [Abstract] | ||
Trading debt securities | 2,210 | 1,030 |
Measured at Fair Value on a Recurring Basis [Member] | Level 1 [Member] | Asset-Backed Securities [Member] | ||
Financial Assets [Abstract] | ||
Trading debt securities | 0 | 0 |
Measured at Fair Value on a Recurring Basis [Member] | Level 1 [Member] | Other [Member] | ||
Financial Assets [Abstract] | ||
Trading debt securities | 0 | 0 |
Measured at Fair Value on a Recurring Basis [Member] | Level 1 [Member] | Derivative Financial Instuments [Member] | ||
Financial Assets [Abstract] | ||
Trading debt securities | 0 | |
Measured at Fair Value on a Recurring Basis [Member] | Level 1 [Member] | Preferred Stocks [Member] | ||
Financial Assets [Abstract] | ||
Trading equity securities | 248 | 364 |
Measured at Fair Value on a Recurring Basis [Member] | Level 1 [Member] | Supplemental Employee Retirement Plan [Member] | Money Market Fund [Member] | ||
Financial Assets [Abstract] | ||
Trading equity securities | 229 | 124 |
Measured at Fair Value on a Recurring Basis [Member] | Level 1 [Member] | Supplemental Employee Retirement Plan [Member] | Mutual Funds [Member] | ||
Financial Assets [Abstract] | ||
Trading equity securities | 4,755 | 4,839 |
Measured at Fair Value on a Recurring Basis [Member] | Level 2 [Member] | ||
Financial Assets [Abstract] | ||
Total financial assets | 3,029 | 3,406 |
Financial Liabilities [Abstract] | ||
SERP liabilities | 6,641 | 8,552 |
Derivative financial instruments | 112 | |
Total financial liabilities | 6,641 | 8,664 |
Measured at Fair Value on a Recurring Basis [Member] | Level 2 [Member] | Corporate Bonds [Member] | ||
Financial Assets [Abstract] | ||
Trading debt securities | 0 | 0 |
Measured at Fair Value on a Recurring Basis [Member] | Level 2 [Member] | Municipal Bonds [Member] | ||
Financial Assets [Abstract] | ||
Trading debt securities | 1,546 | 1,912 |
Measured at Fair Value on a Recurring Basis [Member] | Level 2 [Member] | Floating Rate Notes [Member] | ||
Financial Assets [Abstract] | ||
Trading debt securities | 0 | 0 |
Measured at Fair Value on a Recurring Basis [Member] | Level 2 [Member] | U.S. Treasury Bills [Member] | ||
Financial Assets [Abstract] | ||
Trading debt securities | 0 | 0 |
Measured at Fair Value on a Recurring Basis [Member] | Level 2 [Member] | Asset-Backed Securities [Member] | ||
Financial Assets [Abstract] | ||
Trading debt securities | 442 | 526 |
Measured at Fair Value on a Recurring Basis [Member] | Level 2 [Member] | Other [Member] | ||
Financial Assets [Abstract] | ||
Trading debt securities | 708 | 968 |
Measured at Fair Value on a Recurring Basis [Member] | Level 2 [Member] | Derivative Financial Instuments [Member] | ||
Financial Assets [Abstract] | ||
Trading debt securities | 333 | |
Measured at Fair Value on a Recurring Basis [Member] | Level 2 [Member] | Preferred Stocks [Member] | ||
Financial Assets [Abstract] | ||
Trading equity securities | 0 | 0 |
Measured at Fair Value on a Recurring Basis [Member] | Level 2 [Member] | Supplemental Employee Retirement Plan [Member] | Money Market Fund [Member] | ||
Financial Assets [Abstract] | ||
Trading equity securities | 0 | 0 |
Measured at Fair Value on a Recurring Basis [Member] | Level 2 [Member] | Supplemental Employee Retirement Plan [Member] | Mutual Funds [Member] | ||
Financial Assets [Abstract] | ||
Trading equity securities | $ 0 | $ 0 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Securities, Trading, and Equity Securities [Abstract] | ||
Trading equity securities, Amortized cost | $ 5,546 | $ 4,964 |
Trading equity securities, Gross unrealized gains | 50 | 394 |
Trading equity securities, Gross unrealized losses | 365 | 31 |
Trading equity securities, Fair value (net carrying value) | 5,231 | 5,327 |
Trading debt securities, Amortized cost | 11,817 | 10,971 |
Trading debt securities, Gross unrealized gains | 55 | 58 |
Trading debt securities, Gross unrealized losses | 267 | 179 |
Trading debt securities, Fair value (net carrying value) | 11,605 | 10,850 |
Total trading equity and debt securities, Amortized cost | 17,363 | 15,935 |
Total trading equity and debt securities, Gross unrealized gains | 105 | 452 |
Total trading equity and debt securities, Gross unrealized losses | 632 | 210 |
Total trading equity and debt securities, Fair value (net carrying value) | $ 16,836 | $ 16,177 |
Goodwill (Details)
Goodwill (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)Reportingunit | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Goodwill [Abstract] | |||
Weighted terminal growth assumed | 3.00% | ||
Goodwill [Abstract] | |||
Goodwill | $ 65,181 | $ 66,975 | $ 62,047 |
Accumulated impairment | (32,433) | (21,243) | (21,243) |
Net | 32,748 | 45,732 | 40,804 |
Restructuring write off | (955) | ||
Acquisition | 3,488 | ||
Foreign currency translation | (839) | 1,440 | |
Impairment | $ (11,190) | 0 | 0 |
Minimum [Member] | |||
Goodwill [Abstract] | |||
Weighted average cost of capital assumptions | 23.90% | ||
Maximum [Member] | |||
Goodwill [Abstract] | |||
Weighted average cost of capital assumptions | 25.80% | ||
Infrastructure Group [Member] | |||
Goodwill [Abstract] | |||
Goodwill | $ 9,879 | 10,883 | 10,758 |
Accumulated impairment | (2,310) | (2,310) | (2,310) |
Net | 7,569 | 8,573 | 8,448 |
Restructuring write off | (955) | ||
Acquisition | 0 | ||
Foreign currency translation | (49) | 125 | |
Impairment | 0 | ||
Aggregate and Mining Group [Member] | |||
Goodwill [Abstract] | |||
Goodwill | 32,445 | 33,235 | 31,920 |
Accumulated impairment | (12,196) | (12,196) | (12,196) |
Net | 20,249 | 21,039 | 19,724 |
Restructuring write off | 0 | ||
Acquisition | 0 | ||
Foreign currency translation | (790) | 1,315 | |
Impairment | $ 0 | ||
Energy Group [Member] | |||
Goodwill [Abstract] | |||
Number of reporting units with impairment | Reportingunit | 2 | ||
Goodwill | $ 22,857 | 22,857 | 19,369 |
Accumulated impairment | (17,927) | (6,737) | (6,737) |
Net | 4,930 | 16,120 | $ 12,632 |
Restructuring write off | 0 | ||
Acquisition | 3,488 | ||
Foreign currency translation | 0 | $ 0 | |
Impairment | $ (11,190) |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Intangible Assets [Abstract] | |||
Amortization expense on intangible assets | $ 5,125 | $ 4,064 | $ 3,562 |
Intangible assets [Abstract] | |||
Gross Carrying Value | 47,063 | 47,847 | |
Accumulated Amortization | 21,693 | 16,895 | |
Net Carrying Value | 25,370 | 30,952 | |
Expected amortization expense over the next five years [Abstract] | |||
2019 | 3,944 | ||
2020 | 3,511 | ||
2021 | 3,118 | ||
2022 | 2,660 | ||
2023 | 2,178 | ||
Thereafter | 9,959 | ||
Dealer Network and Customer Relationships [Member] | |||
Intangible assets [Abstract] | |||
Gross Carrying Value | 30,909 | 31,376 | |
Accumulated Amortization | 14,472 | 10,856 | |
Net Carrying Value | 16,437 | 20,520 | |
Trade Names [Member] | |||
Intangible assets [Abstract] | |||
Gross Carrying Value | 9,536 | 9,650 | |
Accumulated Amortization | 2,509 | 1,914 | |
Net Carrying Value | 7,027 | 7,736 | |
Other [Member] | |||
Intangible assets [Abstract] | |||
Gross Carrying Value | 6,618 | 6,821 | |
Accumulated Amortization | 4,712 | 4,125 | |
Net Carrying Value | $ 1,906 | $ 2,696 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment, Net [Abstract] | |||
Accumulated depreciation | $ (254,493) | $ (237,742) | |
Total | 192,448 | 190,396 | |
Depreciation expense | 22,411 | 21,312 | $ 20,818 |
Land [Member] | |||
Property, Plant and Equipment, Net [Abstract] | |||
Property and equipment, gross | 15,774 | 15,568 | |
Building and Land Improvements [Member] | |||
Property, Plant and Equipment, Net [Abstract] | |||
Property and equipment, gross | 145,913 | 143,339 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment, Net [Abstract] | |||
Property and equipment, gross | 10,410 | 10,680 | |
Manufacturing and Office Equipment [Member] | |||
Property, Plant and Equipment, Net [Abstract] | |||
Property and equipment, gross | 260,420 | 244,324 | |
Aviation Equipment [Member] | |||
Property, Plant and Equipment, Net [Abstract] | |||
Property and equipment, gross | $ 14,424 | $ 14,227 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Leases [Abstract] | |||
Rental expense charged to operations under operating leases | $ 3,618 | $ 3,211 | $ 2,792 |
Minimum rental commitments for all noncancelable operating leases [Abstract] | |||
2019 | 1,992 | ||
2020 | 1,100 | ||
2021 | 388 | ||
2022 | 144 | ||
2023 | 66 | ||
Thereafter | 12 | ||
Total | $ 3,702 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | Feb. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt [Abstract] | |||
Current maturities of long-term debt | $ 413 | $ 2,469 | |
Long-term debt | 59,709 | 1,575 | |
Long-term debt maturities [Abstract] | |||
2019 | 413 | ||
2020 | 217 | ||
2021 | 214 | ||
2022 | 58,992 | ||
2023 | 214 | ||
Thereafter | 72 | ||
Maximum [Member] | |||
Line of Credit Facility [Abstract] | |||
Amount of letters of credit outstanding | 13,060 | ||
Osborn [Member] | |||
Line of Credit Facility [Abstract] | |||
Amount of credit facility | 6,600 | ||
Borrowing outstanding | 0 | 0 | |
Performance bank guarantee, subsidiary obligations to fulfill contracts | $ 397 | ||
Unused facility fee as a percentage of line of credit | 0.75% | ||
Under utilized facility resulting in unused facility fee | 50.00% | ||
Available credit under the facility | $ 6,203 | ||
Interest rate at period end | 10.00% | ||
Astec Brazil Working Capital Loans [Member] | |||
Debt [Abstract] | |||
Loan amount | $ 1,207 | 3,402 | |
Astec Brazil Working Capital Loans [Member] | Minimum [Member] | |||
Debt [Abstract] | |||
Debt instrument, interest rate | 10.40% | ||
Debt instrument, maturity date | Jan. 31, 2019 | ||
Astec Brazil Working Capital Loans [Member] | Maximum [Member] | |||
Debt [Abstract] | |||
Debt instrument, interest rate | 11.00% | ||
Debt instrument, maturity date | Apr. 30, 2024 | ||
Astec Brazil Equipment Financing [Member] | |||
Line of Credit Facility [Abstract] | |||
Term loan | 5 years | ||
Debt [Abstract] | |||
Loan amount | $ 137 | 642 | |
Astec Brazil Equipment Financing [Member] | Minimum [Member] | |||
Debt [Abstract] | |||
Debt instrument, interest rate | 3.50% | ||
Debt instrument, maturity date | Jan. 31, 2019 | ||
Astec Brazil Equipment Financing [Member] | Maximum [Member] | |||
Debt [Abstract] | |||
Debt instrument, interest rate | 16.30% | ||
Debt instrument, maturity date | Apr. 30, 2020 | ||
Astec Brazil Working Capital Loans and Equipment Financing [Member] | |||
Debt [Abstract] | |||
Current maturities of long-term debt | $ 413 | ||
Long-term debt | $ 931 | ||
South African Prime Rate [Member] | Osborn [Member] | |||
Debt [Abstract] | |||
Differential rate (less than prime rate) | 0.25% | ||
Line of Credit [Member] | |||
Line of Credit Facility [Abstract] | |||
Amount of letters of credit outstanding | $ 11,044 | ||
Term loan | 5 years | ||
Maturity date | Apr. 30, 2022 | ||
Borrowing outstanding | $ 58,778 | $ 0 | |
Line of credit, additional borrowing capacity | $ 30,178 | ||
Interest rate at period end | 3.27% | ||
Line of Credit [Member] | Subsequent Event [Member] | |||
Line of Credit Facility [Abstract] | |||
Maturity date | Dec. 29, 2023 | ||
Line of Credit [Member] | Maximum [Member] | |||
Line of Credit Facility [Abstract] | |||
Amount of credit facility | $ 100,000 | ||
Sub-limit for letters of credit | 30,000 | ||
Line of Credit [Member] | Maximum [Member] | Subsequent Event [Member] | |||
Line of Credit Facility [Abstract] | |||
Amount of credit facility | $ 150,000 | ||
Line of Credit [Member] | Astec Brazil [Member] | |||
Line of Credit Facility [Abstract] | |||
Contingent liabilities for letters of credit issued on behalf of foreign subsidiaries | $ 3,200 | ||
Line of Credit [Member] | LIBOR [Member] | |||
Line of Credit Facility [Abstract] | |||
Term of variable rate | 1 month | ||
Additional rate over base, percentage | 0.75% | ||
Unused facility fee as a percentage of line of credit | 0.125% |
Product Warranty Reserves (Deta
Product Warranty Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Product warranty reserves [Roll Forward] | |||
Reserve balance, beginning of year | $ 15,410 | $ 13,156 | $ 9,100 |
Warranty liabilities accrued | 13,219 | 16,725 | 18,912 |
Warranty liabilities settled | (17,539) | (14,642) | (15,125) |
Other | (162) | 171 | 269 |
Reserve balance, end of year | $ 10,928 | $ 15,410 | $ 13,156 |
Minimum [Member] | |||
Standard Product Warranty Disclosure [Abstract] | |||
Product warranty reserve term | 3 months | ||
Maximum [Member] | |||
Standard Product Warranty Disclosure [Abstract] | |||
Product warranty reserve term | 2 years |
Accrued Loss Reserves (Details)
Accrued Loss Reserves (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accrued Loss Reserves [Abstract] | ||
Total accrued loss reserves | $ 8,261 | $ 8,119 |
Accrued loss reserves included in other long-term liabilities | $ 6,429 | $ 5,615 |
Pension and Retirement Plans (D
Pension and Retirement Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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 | 46.90% | 49.40% | |
Equity Securities [Member] | Minimum [Member] | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Target plan asset allocations | 40.00% | 40.00% | |
Equity Securities [Member] | Maximum [Member] | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Target plan asset allocations | 65.00% | 65.00% | |
Debt Securities [Member] | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Actual allocations | 46.20% | 43.20% | |
Debt Securities [Member] | Minimum [Member] | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Target plan asset allocations | 30.00% | 30.00% | |
Debt Securities [Member] | Maximum [Member] | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Target plan asset allocations | 50.00% | 50.00% | |
Cash and Equivalents [Member] | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Actual allocations | 6.90% | 7.40% | |
Cash and Equivalents [Member] | Minimum [Member] | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Target plan asset allocations | 0.00% | 0.00% | |
Cash and Equivalents [Member] | Maximum [Member] | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Target plan asset allocations | 15.00% | 15.00% | |
Pension Benefits [Member] | |||
Change in benefit obligation [Roll forward] | |||
Benefit obligation, beginning of year | $ 16,916 | $ 16,104 | |
Interest cost | 578 | 630 | $ 650 |
Actuarial (gain)/loss | (1,021) | 867 | |
Benefits paid | (732) | (685) | |
Benefit obligation, end of year | 15,741 | 16,916 | 16,104 |
Accumulated benefit obligation | 15,741 | 16,916 | |
Change in plan assets [Roll forward] | |||
Fair value of plan assets, beginning of year | 14,717 | 13,241 | |
Actual gain/(loss) on plan assets | (909) | 1,746 | |
Employer contribution | 1,376 | 415 | |
Benefits paid | (732) | (685) | |
Fair value of plan assets, end of year | 14,452 | 14,717 | 13,241 |
Funded status, end of year | (1,289) | (2,199) | |
Amounts recognized in the consolidated balance sheets [Abstract] | |||
Noncurrent liabilities | (1,289) | (2,199) | |
Net amount recognized | (1,289) | (2,199) | |
Amounts recognized in accumulated other comprehensive loss consist of [Abstract] | |||
Net loss | 5,687 | 5,463 | |
Net amount recognized | $ 5,687 | $ 5,463 | |
Weighted average assumptions used to determine benefit obligations as of December 31 [Abstract] | |||
Discount rate | 4.10% | 3.50% | |
Expected return on plan assets | 6.00% | 6.25% | |
Rate of compensation increase | |||
Components of net periodic benefit cost [Abstract] | |||
Interest cost | $ 578 | $ 630 | 650 |
Expected return on plan assets | (802) | (720) | (782) |
Amortization of actuarial loss | 465 | 530 | 480 |
Net periodic benefit cost | 241 | 440 | 348 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income [Abstract] | |||
Net actuarial (gain) loss for the year | 690 | (159) | 533 |
Amortization of net loss | (465) | (530) | (480) |
Total recognized in other comprehensive income | 225 | (689) | 53 |
Total recognized in net periodic benefit cost and other comprehensive income | $ 466 | $ (249) | $ 401 |
Weighted average assumptions used to determine net periodic benefit cost for years ended December 31 [Abstract] | |||
Discount rate | 3.50% | 4.00% | 4.28% |
Expected return on plan assets | 6.25% | 6.25% | 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 | (520) | ||
Estimated future benefit payments [Abstract] | |||
2019 | 840 | ||
2020 | 870 | ||
2021 | 910 | ||
2022 | 920 | ||
2023 | 940 | ||
2024 - 2028 | $ 4,920 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Assets [Abstract] | |||
Company's 401(K) contributions for the year | $ 7,451 | $ 7,182 | $ 5,943 |
SERP [Member] | |||
Defined Benefit Plan Assets [Abstract] | |||
Income expense due to change in the fair market value of Company stock held in the SERP | 1,556 | 575 | $ (1,742) |
Cost [Member] | |||
Defined Benefit Plan Assets [Abstract] | |||
Plan Assets | 7,148 | 6,549 | |
Cost [Member] | Company Stock [Member] | |||
Defined Benefit Plan Assets [Abstract] | |||
Plan Assets | 1,886 | 1,960 | |
Cost [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Assets [Abstract] | |||
Plan Assets | 5,262 | 4,589 | |
Market [Member] | |||
Defined Benefit Plan Assets [Abstract] | |||
Plan Assets | 6,641 | 8,552 | |
Market [Member] | Company Stock [Member] | |||
Defined Benefit Plan Assets [Abstract] | |||
Plan Assets | 1,658 | 3,589 | |
Market [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Assets [Abstract] | |||
Plan Assets | $ 4,983 | $ 4,963 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Other Current Assets [Member] | ||
Summary of Derivative Instruments [Abstract] | ||
Derivative assets | $ 333 | |
Other Current Liabilities [Member] | ||
Summary of Derivative Instruments [Abstract] | ||
Derivative liabilities | $ 112 | |
Foreign Exchange Contract [Member] | ||
Summary of Derivative Instruments [Abstract] | ||
Average notional amount | $ 11,082 |
Derivative Financial Instrume_3
Derivative Financial Instruments, Gain (Loss) recognized in income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Cost of Sales [Member] | |||
Gain (loss) on derivative financial instruments recognized in income, net [Abstract] | |||
Gain/(loss) of derivative financial instruments recognized in income, net | $ 1,147 | $ (663) | $ (336) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income before income taxes [Abstract] | ||||||
United States | $ (86,874) | $ 55,980 | $ 87,326 | |||
Foreign | 896 | 1,237 | (231) | |||
Income (loss) before income taxes | (85,978) | 57,217 | 87,095 | |||
Current provision (benefit) [Abstract] | ||||||
Federal | (3,995) | 16,178 | 30,623 | |||
State | 892 | 2,866 | 4,098 | |||
Foreign | 3,254 | 874 | 907 | |||
Total current provision | 151 | 19,918 | 35,628 | |||
Deferred provision (benefit) [Abstract] | ||||||
Federal | (19,142) | 107 | (2,653) | |||
State | (5,788) | (455) | (1,213) | |||
Foreign | (455) | 57 | 345 | |||
Total deferred benefit | (25,385) | (291) | (3,521) | |||
Total provision (benefit) [Abstract] | ||||||
Federal | (23,137) | 16,285 | 27,970 | |||
State | (4,896) | 2,411 | 2,885 | |||
Foreign | 2,799 | 931 | 1,252 | |||
Total income tax provision (benefit) | (25,234) | 19,627 | 32,107 | |||
Reconciliation of provision for income taxes [Abstract] | ||||||
Tax expense (benefit) at the statutory federal income tax rate | (18,055) | 20,026 | 30,483 | |||
Domestic production activity deduction | 0 | (1,661) | (1,641) | |||
State income tax, net of federal income tax | (2,976) | 1,520 | 1,876 | |||
Research and development tax credits | (4,660) | (922) | (785) | |||
FIN 48 impact | 1,856 | 124 | (240) | |||
Liquidation of subsidiary | (1,403) | 0 | 0 | |||
Valuation allowance impact | 978 | 1,585 | 1,638 | |||
U.S. tax reform impact | (193) | (505) | 0 | |||
Other items | (781) | (540) | 776 | |||
Total income tax provision (benefit) | (25,234) | 19,627 | 32,107 | |||
Deferred tax assets [Abstract] | ||||||
Inventory reserves | $ 4,513 | $ 4,287 | ||||
Warranty reserves | 2,275 | 3,560 | ||||
Bad debt reserves | 182 | 299 | ||||
State tax loss carryforwards | 7,265 | 2,710 | ||||
Accrued vacation | 1,612 | 1,712 | ||||
SERP | 364 | 367 | ||||
Deferred compensation | 881 | 1,293 | ||||
Restricted stock units | 1,728 | 1,664 | ||||
Goodwill | 2,157 | 0 | ||||
Pension and post-employment benefits | 1,536 | 1,448 | ||||
Outside basis differences | 4,496 | 0 | ||||
Federal net operating loss | 15,655 | 0 | ||||
Foreign net operating losses | 5,069 | 6,310 | ||||
Other | 5,025 | 2,478 | ||||
Valuation allowances | $ (8,318) | (8,540) | (8,318) | (8,280) | (8,540) | (8,318) |
Total deferred tax assets | 44,218 | 17,810 | ||||
Deferred tax liabilities [Abstract] | ||||||
Property and equipment | 16,156 | 14,562 | ||||
Intangibles | 541 | 769 | ||||
Goodwill | 0 | 654 | ||||
Pension | 1,051 | 758 | ||||
Total deferred tax liabilities | 17,748 | 16,743 | ||||
Total net deferred assets | 26,470 | 1,067 | ||||
Operating Loss Carryforwards [Abstract] | ||||||
Recognized tax benefits related to penalties and interest settled for less than previously accrued | 66 | 22 | ||||
Unrecognized tax benefits, if recognized that would effect the effective rate | 2,243 | $ 370 | ||||
Deferred Tax Asset Valuation Allowance [Roll Forward] | ||||||
Allowance balance, beginning of year | 8,318 | 8,280 | 8,065 | |||
Provision | 978 | 1,585 | 1,639 | |||
Write-offs | 0 | (1,862) | (289) | |||
Other | (756) | 315 | (1,135) | |||
Allowance balance, end of year | 8,318 | 8,540 | 8,318 | 8,280 | ||
Reconciliation on unrecognized tax benefits [Roll forward] | ||||||
Balance, beginning of year | 365 | 238 | 603 | |||
Additions for tax positions taken in current year | 1,722 | 127 | 235 | |||
Reductions due to lapse of statutes of limitations | (39) | 0 | (16) | |||
Decreases related to settlements with tax authorities | 0 | 0 | (584) | |||
Balance, end of year | 365 | $ 2,048 | $ 365 | $ 238 | ||
Federal Income Taxes [Abstract] | ||||||
Federal corporate tax rate | 21.00% | 35.00% | ||||
Provision of income tax expense (benefit) | (1,056) | |||||
Income tax provision attributable to global intangible low taxed income | $ 545 | |||||
Income tax expense (benefit) | (1,548) | 1,235 | ||||
Transition tax | $ 492 | 1,727 | ||||
Breaker Technology, Ltd. [Member] | ||||||
Operating Loss Carryforwards [Abstract] | ||||||
Undistributed earnings of foreign subsidiaries | 7,789 | |||||
Osborn Engineered Products [Member] | ||||||
Operating Loss Carryforwards [Abstract] | ||||||
Undistributed earnings of foreign subsidiaries | 29,800 | |||||
Astec Australia [Member] | ||||||
Operating Loss Carryforwards [Abstract] | ||||||
Undistributed earnings of foreign subsidiaries | 490 | |||||
Telestack Limited [Member] | ||||||
Operating Loss Carryforwards [Abstract] | ||||||
Undistributed earnings of foreign subsidiaries | 1,477 | |||||
Internal Revenue Service (IRS) [Member] | ||||||
Operating Loss Carryforwards [Abstract] | ||||||
Increase in valuation allowance on operating loss carryforwards | 978 | |||||
Decrease in other deferred tax assets valuation allowance | $ (756) | |||||
Internal Revenue Service (IRS) [Member] | Minimum [Member] | ||||||
Operating Loss Carryforwards [Abstract] | ||||||
Operating loss carryforwards, expiration date | Dec. 31, 2019 | |||||
Internal Revenue Service (IRS) [Member] | Maximum [Member] | ||||||
Operating Loss Carryforwards [Abstract] | ||||||
Operating loss carryforwards, expiration date | Dec. 31, 2030 | |||||
U.S. Federal [Member] | ||||||
Operating Loss Carryforwards [Abstract] | ||||||
Net operating loss carryforwards | 74,548 | |||||
State [Member] | ||||||
Operating Loss Carryforwards [Abstract] | ||||||
Net operating loss carryforwards | 261,673 | |||||
Foreign Tax Authority [Member] | ||||||
Operating Loss Carryforwards [Abstract] | ||||||
Net operating loss carryforwards | $ 16,759 |
Contingent Matters (Details)
Contingent Matters (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Contingent Matters [Abstract] | |
Liability recorded related to guarantees | $ 1,183 |
Loss Contingency, Estimate [Abstract] | |
Contingent liability for customer debt | $ 2,247 |
Maximum maturity date of customer debt | Jul. 31, 2021 |
Pellet Plant [Member] | |
Loss Contingency, Estimate [Abstract] | |
Pellet plant inventory net realizable value | $ 0 |
Maximum [Member] | |
Loss Contingency, Estimate [Abstract] | |
Contingent liabilities for letters of credit | 13,060 |
Letter of Credit Lender [Member] | |
Loss Contingency, Estimate [Abstract] | |
Contingent liabilities for letters of credit | $ 11,044 |
Letter of Credit Lender [Member] | Maximum [Member] | |
Loss Contingency, Estimate [Abstract] | |
Letter of credit expiration date | Oct. 31, 2020 |
Astec Brazil Working Capital Loans [Member] | |
Loss Contingency, Estimate [Abstract] | |
Contingent liabilities for letters of credit issued on behalf of foreign subsidiaries | $ 3,200 |
Performance Letters of Credit [Member] | |
Loss Contingency, Estimate [Abstract] | |
Contingent liabilities for letters of credit issued on behalf of foreign subsidiaries | $ 2,016 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restricted stock units under the 2006 and 2011 Incentive Plan [Abstract] | |||
Maximum shares granted to employees (in shares) | 700 | ||
Vesting period | 5 years | ||
Awards granted in February 2017 and after | 3 years | ||
Vesting date fair value of vested restricted stock units during the period | $ 1,869 | $ 1,991 | $ 3,289 |
Increase in tax benefit | 67 | 290 | 220 |
Compensation expense | 2,032 | 2,978 | 2,426 |
Income tax benefits | 528 | $ 1,132 | 934 |
Anticipated additional compensation costs to be recognized in future periods | $ 3,022 | ||
Maximum date compensation costs will be recognized in future periods | Dec. 31, 2022 | ||
Weighted average period over which additional compensation cost will be expensed | 1 year 9 months 18 days | ||
Restricted stock units [Roll Forward] | |||
Unvested restricted stock units, beginning of year (in shares) | 161 | ||
Units granted (in shares) | 61 | ||
Units forfeited (in shares) | (25) | ||
Units vested (in shares) | (32) | ||
Unvested restricted stock units, end of year (in shares) | 165 | 161 | |
Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted average grant date fair value, beginning balance (in dollars per share) | $ 53.09 | ||
Weighted average grant date fair value, granted (in dollars per share) | 58.45 | ||
Weighted average grant date fair value, forfeited (in dollars per share) | 50.84 | ||
Weighted average grant date fair value, vested (in dollars per share) | 45.79 | ||
Weighted average grant date fair value, ending balance (in dollars per share) | $ 56.82 | $ 53.09 | |
Grant date fair value of restricted stock units granted | $ 3,553 | $ 5,399 | $ 1,946 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | Jul. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disaggregation of Revenue [Abstract] | ||||
Net sales | $ 1,171,599 | $ 1,184,739 | $ 1,147,431 | |
Pellet Plant [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Amount paid to customer | $ 68,000 | |||
Forgiveness of accounts receivable | $ 7,315 | |||
United States [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 915,814 | |||
United States [Member] | Equipment Sales [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 695,573 | |||
United States [Member] | Pellet Plant Agreement Sale Reduction [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | (75,315) | |||
United States [Member] | Parts and Component Sales [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 234,351 | |||
United States [Member] | Service and Equipment Installation Revenue [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 19,021 | |||
United States [Member] | Used Equipment Sales [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 15,583 | |||
United States [Member] | Freight Revenue [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 24,663 | |||
United States [Member] | Other [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 1,938 | |||
International [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 255,785 | |||
International [Member] | Equipment Sales [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 166,428 | |||
International [Member] | Parts and Component Sales [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 74,352 | |||
International [Member] | Service and Equipment Installation Revenue [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 4,611 | |||
International [Member] | Used Equipment Sales [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 5,549 | |||
International [Member] | Freight Revenue [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 4,726 | |||
International [Member] | Other [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 119 | |||
Infrastructure Group [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 442,289 | |||
Infrastructure Group [Member] | Pellet Plant Agreement Sale Reduction [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | (75,315) | |||
Infrastructure Group [Member] | United States [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 373,926 | |||
Infrastructure Group [Member] | United States [Member] | Equipment Sales [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 296,974 | |||
Infrastructure Group [Member] | United States [Member] | Pellet Plant Agreement Sale Reduction [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | (75,315) | |||
Infrastructure Group [Member] | United States [Member] | Parts and Component Sales [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 119,823 | |||
Infrastructure Group [Member] | United States [Member] | Service and Equipment Installation Revenue [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 10,822 | |||
Infrastructure Group [Member] | United States [Member] | Used Equipment Sales [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 8,098 | |||
Infrastructure Group [Member] | United States [Member] | Freight Revenue [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 12,502 | |||
Infrastructure Group [Member] | United States [Member] | Other [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 1,022 | |||
Infrastructure Group [Member] | International [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 68,363 | |||
Infrastructure Group [Member] | International [Member] | Equipment Sales [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 43,516 | |||
Infrastructure Group [Member] | International [Member] | Parts and Component Sales [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 19,215 | |||
Infrastructure Group [Member] | International [Member] | Service and Equipment Installation Revenue [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 3,152 | |||
Infrastructure Group [Member] | International [Member] | Used Equipment Sales [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 1,693 | |||
Infrastructure Group [Member] | International [Member] | Freight Revenue [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 1,043 | |||
Infrastructure Group [Member] | International [Member] | Other [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | (256) | |||
Aggregate and Mining Group [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 453,164 | |||
Aggregate and Mining Group [Member] | United States [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 302,372 | |||
Aggregate and Mining Group [Member] | United States [Member] | Equipment Sales [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 220,015 | |||
Aggregate and Mining Group [Member] | United States [Member] | Pellet Plant Agreement Sale Reduction [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 0 | |||
Aggregate and Mining Group [Member] | United States [Member] | Parts and Component Sales [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 71,862 | |||
Aggregate and Mining Group [Member] | United States [Member] | Service and Equipment Installation Revenue [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 1,844 | |||
Aggregate and Mining Group [Member] | United States [Member] | Used Equipment Sales [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 3,127 | |||
Aggregate and Mining Group [Member] | United States [Member] | Freight Revenue [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 6,265 | |||
Aggregate and Mining Group [Member] | United States [Member] | Other [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | (741) | |||
Aggregate and Mining Group [Member] | International [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 150,792 | |||
Aggregate and Mining Group [Member] | International [Member] | Equipment Sales [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 98,604 | |||
Aggregate and Mining Group [Member] | International [Member] | Parts and Component Sales [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 44,609 | |||
Aggregate and Mining Group [Member] | International [Member] | Service and Equipment Installation Revenue [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 1,069 | |||
Aggregate and Mining Group [Member] | International [Member] | Used Equipment Sales [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 2,948 | |||
Aggregate and Mining Group [Member] | International [Member] | Freight Revenue [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 3,266 | |||
Aggregate and Mining Group [Member] | International [Member] | Other [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 296 | |||
Energy Group [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 276,146 | |||
Energy Group [Member] | United States [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 239,516 | |||
Energy Group [Member] | United States [Member] | Equipment Sales [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 178,584 | |||
Energy Group [Member] | United States [Member] | Pellet Plant Agreement Sale Reduction [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 0 | |||
Energy Group [Member] | United States [Member] | Parts and Component Sales [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 42,666 | |||
Energy Group [Member] | United States [Member] | Service and Equipment Installation Revenue [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 6,355 | |||
Energy Group [Member] | United States [Member] | Used Equipment Sales [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 4,358 | |||
Energy Group [Member] | United States [Member] | Freight Revenue [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 5,896 | |||
Energy Group [Member] | United States [Member] | Other [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 1,657 | |||
Energy Group [Member] | International [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 36,630 | |||
Energy Group [Member] | International [Member] | Equipment Sales [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 24,308 | |||
Energy Group [Member] | International [Member] | Parts and Component Sales [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 10,528 | |||
Energy Group [Member] | International [Member] | Service and Equipment Installation Revenue [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 390 | |||
Energy Group [Member] | International [Member] | Used Equipment Sales [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 908 | |||
Energy Group [Member] | International [Member] | Freight Revenue [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 417 | |||
Energy Group [Member] | International [Member] | Other [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | $ 79 |
Operations by Industry Segmen_3
Operations by Industry Segment and Geographic Area (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)SegmentBusinessunit | Dec. 31, 2017USD ($)Customer | Dec. 31, 2016USD ($) | |
Operations by Industry Segment and Geographic Area [Abstract] | |||
Number of reportable segments | Segment | 3 | ||
Sales [Abstract] | |||
Revenues | $ 1,171,599 | $ 1,184,739 | $ 1,147,431 |
Restructuring and asset impairment charges | 13,060 | 0 | 0 |
Interest expense | 1,045 | 840 | 1,395 |
Depreciation and amortization | 27,913 | 25,802 | 24,813 |
Income taxes | (25,234) | 19,627 | 32,107 |
Profit (loss) | (62,834) | 37,645 | 54,512 |
Assets | 1,803,864 | 1,919,793 | 1,864,048 |
Capital expenditures | 28,903 | 20,762 | 27,084 |
Net income attributable to controlling interest [Abstract] | |||
Net loss attributable to non-controlling interest | 295 | 205 | 171 |
Net income (loss) attributable to controlling interest | (60,449) | 37,795 | 55,159 |
Assets [Abstract] | |||
Total assets | $ 855,457 | $ 889,579 | $ 843,601 |
Infrastructure Group [Member] | |||
Segment reporting, disclosure and reportable segments revenues and profits [Abstract] | |||
Number of business units | Businessunit | 5 | ||
Number of business units which design, engineer, manufacture and market product lines | Businessunit | 3 | ||
Number of business units that operate as Company-owned dealers | Businessunit | 2 | ||
Number of major customers | Customer | 1 | ||
Sales [Abstract] | |||
Revenues | $ 442,289 | ||
Infrastructure Group [Member] | Pellet Plant Agreement Sale Reduction [Member] | |||
Sales [Abstract] | |||
Revenues | $ (75,315) | ||
Infrastructure Group [Member] | Pellet Plant [Member] | Revenue [Member] | |||
Segment reporting, disclosure and reportable segments revenues and profits [Abstract] | |||
Revenue percentage of total company sales | 0.70% | 11.80% | |
Sales [Abstract] | |||
Revenues | $ 7,987 | $ 135,187 | |
Aggregate and Mining Group [Member] | |||
Segment reporting, disclosure and reportable segments revenues and profits [Abstract] | |||
Number of business units | Businessunit | 8 | ||
Sales [Abstract] | |||
Revenues | $ 453,164 | ||
Energy Group [Member] | |||
Segment reporting, disclosure and reportable segments revenues and profits [Abstract] | |||
Number of business units | Businessunit | 6 | ||
Sales [Abstract] | |||
Revenues | $ 276,146 | ||
Reportable Segments [Member] | |||
Net income attributable to controlling interest [Abstract] | |||
Total profit (loss) | (64,420) | 78,608 | 110,504 |
Assets [Abstract] | |||
Total assets | 1,436,653 | 1,529,493 | 1,446,697 |
Reportable Segments [Member] | Infrastructure Group [Member] | |||
Sales [Abstract] | |||
Revenues | 442,289 | 553,691 | 608,908 |
Restructuring and asset impairment charges | 1,870 | ||
Interest expense | 10 | 49 | 31 |
Depreciation and amortization | 8,424 | 7,581 | 7,205 |
Income taxes | 880 | 1,318 | 3,033 |
Profit (loss) | (112,954) | 26,641 | 71,482 |
Assets | 536,744 | 666,651 | 657,225 |
Capital expenditures | 14,823 | 7,424 | 14,451 |
Reportable Segments [Member] | Aggregate and Mining Group [Member] | |||
Sales [Abstract] | |||
Revenues | 453,164 | 403,720 | 359,760 |
Restructuring and asset impairment charges | 0 | ||
Interest expense | 384 | 634 | 948 |
Depreciation and amortization | 9,383 | 9,363 | 10,033 |
Income taxes | 2,349 | 462 | 664 |
Profit (loss) | 45,464 | 35,748 | 34,877 |
Assets | 590,512 | 558,684 | 518,351 |
Capital expenditures | 8,731 | 9,194 | 7,437 |
Reportable Segments [Member] | Energy Group [Member] | |||
Sales [Abstract] | |||
Revenues | 276,146 | 227,328 | 178,763 |
Restructuring and asset impairment charges | 11,190 | ||
Interest expense | 17 | 9 | 4 |
Depreciation and amortization | 9,149 | 7,904 | 6,655 |
Income taxes | 306 | 491 | 437 |
Profit (loss) | 3,070 | 16,219 | 4,145 |
Assets | 309,397 | 304,158 | 271,121 |
Capital expenditures | 4,580 | 3,540 | 5,018 |
Reportable Segments [Member] | Corporate [Member] | |||
Sales [Abstract] | |||
Revenues | 0 | 0 | 0 |
Restructuring and asset impairment charges | 0 | ||
Interest expense | 634 | 148 | 412 |
Depreciation and amortization | 957 | 954 | 920 |
Income taxes | (28,769) | 17,356 | 27,973 |
Profit (loss) | 1,586 | (40,963) | (55,992) |
Assets | 367,211 | 390,300 | 417,351 |
Capital expenditures | 769 | 604 | 178 |
Corporate, Non-Segment [Member] | |||
Net income attributable to controlling interest [Abstract] | |||
Total profit (loss) | 1,586 | (40,963) | (55,992) |
Assets [Abstract] | |||
Total assets | 367,211 | 390,300 | 417,351 |
Segment Reconciling Items [Member] | |||
Assets [Abstract] | |||
Elimination of investment in subsidiaries | (300,709) | (303,209) | (272,766) |
Other | 22,202 | (2,057) | (52,292) |
Intersegment Eliminations [Member] | |||
Sales [Abstract] | |||
Revenues | 55,749 | 67,051 | 76,934 |
Net income attributable to controlling interest [Abstract] | |||
Total profit (loss) | 2,090 | (55) | 476 |
Assets [Abstract] | |||
Elimination of intercompany profit in inventory | (4,986) | (7,075) | (7,020) |
Elimination of intercompany receivables | (664,914) | (717,873) | (688,369) |
Intersegment Eliminations [Member] | Infrastructure Group [Member] | |||
Sales [Abstract] | |||
Revenues | 21,568 | 25,965 | 16,957 |
Intersegment Eliminations [Member] | Aggregate and Mining Group [Member] | |||
Sales [Abstract] | |||
Revenues | 16,603 | 16,209 | 35,031 |
Intersegment Eliminations [Member] | Energy Group [Member] | |||
Sales [Abstract] | |||
Revenues | 17,578 | 24,877 | 24,946 |
Intersegment Eliminations [Member] | Corporate [Member] | |||
Sales [Abstract] | |||
Revenues | $ 0 | $ 0 | $ 0 |
Operations by Industry Segmen_4
Operations by Industry Segment and Geographic Area, External Customers and Long-Lived Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Geographic Areas, Sales and Long-lived Assets [Abstract] | |||
Revenues | $ 1,171,599 | $ 1,184,739 | $ 1,147,431 |
Long-lived assets by geographic region | 192,448 | 190,396 | |
United States [Member] | |||
Geographic Areas, Sales and Long-lived Assets [Abstract] | |||
Revenues | 915,814 | ||
Reportable Geographical Components [Member] | United States [Member] | |||
Geographic Areas, Sales and Long-lived Assets [Abstract] | |||
Revenues | 915,814 | 932,294 | 941,273 |
Long-lived assets by geographic region | 162,775 | 158,683 | |
Reportable Geographical Components [Member] | Canada [Member] | |||
Geographic Areas, Sales and Long-lived Assets [Abstract] | |||
Revenues | 61,582 | 65,509 | 37,539 |
Long-lived assets by geographic region | 3,480 | 2,893 | |
Reportable Geographical Components [Member] | Africa [Member] | |||
Geographic Areas, Sales and Long-lived Assets [Abstract] | |||
Revenues | 45,613 | 36,847 | 31,557 |
Reportable Geographical Components [Member] | Australia and Oceana [Member] | |||
Geographic Areas, Sales and Long-lived Assets [Abstract] | |||
Revenues | 38,645 | 40,201 | 29,948 |
Reportable Geographical Components [Member] | South America (excluding Brazil) [Member] | |||
Geographic Areas, Sales and Long-lived Assets [Abstract] | |||
Revenues | 30,081 | 18,562 | 28,204 |
Reportable Geographical Components [Member] | Other European Countries [Member] | |||
Geographic Areas, Sales and Long-lived Assets [Abstract] | |||
Revenues | 25,985 | 18,679 | 19,198 |
Reportable Geographical Components [Member] | Mexico [Member] | |||
Geographic Areas, Sales and Long-lived Assets [Abstract] | |||
Revenues | 9,632 | 8,508 | 13,489 |
Reportable Geographical Components [Member] | Russia [Member] | |||
Geographic Areas, Sales and Long-lived Assets [Abstract] | |||
Revenues | 9,571 | 13,609 | 3,185 |
Reportable Geographical Components [Member] | Middle East [Member] | |||
Geographic Areas, Sales and Long-lived Assets [Abstract] | |||
Revenues | 7,877 | 4,881 | 3,403 |
Reportable Geographical Components [Member] | Brazil [Member] | |||
Geographic Areas, Sales and Long-lived Assets [Abstract] | |||
Revenues | 6,292 | 10,478 | 4,300 |
Long-lived assets by geographic region | 8,866 | 11,114 | |
Reportable Geographical Components [Member] | Other Asian Countries [Member] | |||
Geographic Areas, Sales and Long-lived Assets [Abstract] | |||
Revenues | 5,472 | 10,286 | 6,926 |
Reportable Geographical Components [Member] | Japan and Korea [Member] | |||
Geographic Areas, Sales and Long-lived Assets [Abstract] | |||
Revenues | 3,649 | 4,760 | 10,825 |
Reportable Geographical Components [Member] | China [Member] | |||
Geographic Areas, Sales and Long-lived Assets [Abstract] | |||
Revenues | 2,765 | 6,113 | 4,595 |
Reportable Geographical Components [Member] | Post-Soviet States (excluding Russia) [Member] | |||
Geographic Areas, Sales and Long-lived Assets [Abstract] | |||
Revenues | 2,730 | 5,951 | 3,293 |
Reportable Geographical Components [Member] | Central America (excluding Mexico) [Member] | |||
Geographic Areas, Sales and Long-lived Assets [Abstract] | |||
Revenues | 2,706 | 2,929 | 5,904 |
Reportable Geographical Components [Member] | West Indies [Member] | |||
Geographic Areas, Sales and Long-lived Assets [Abstract] | |||
Revenues | 1,494 | 3,421 | 2,994 |
Reportable Geographical Components [Member] | India [Member] | |||
Geographic Areas, Sales and Long-lived Assets [Abstract] | |||
Revenues | 957 | 1,026 | 318 |
Reportable Geographical Components [Member] | Other Foreign Countries [Member] | |||
Geographic Areas, Sales and Long-lived Assets [Abstract] | |||
Revenues | 734 | 685 | 480 |
Reportable Geographical Components [Member] | Northern Ireland [Member] | |||
Geographic Areas, Sales and Long-lived Assets [Abstract] | |||
Long-lived assets by geographic region | 7,641 | 6,342 | |
Reportable Geographical Components [Member] | South Africa [Member] | |||
Geographic Areas, Sales and Long-lived Assets [Abstract] | |||
Long-lived assets by geographic region | 4,682 | 5,684 | |
Reportable Geographical Components [Member] | Australia [Member] | |||
Geographic Areas, Sales and Long-lived Assets [Abstract] | |||
Long-lived assets by geographic region | 4,624 | 4,532 | |
Reportable Geographical Components [Member] | Germany [Member] | |||
Geographic Areas, Sales and Long-lived Assets [Abstract] | |||
Long-lived assets by geographic region | 345 | 1,148 | |
Reportable Geographical Components [Member] | Chile [Member] | |||
Geographic Areas, Sales and Long-lived Assets [Abstract] | |||
Long-lived assets by geographic region | 35 | 0 | |
Reportable Geographical Components [Member] | Total Foreign [Member] | |||
Geographic Areas, Sales and Long-lived Assets [Abstract] | |||
Revenues | 255,785 | 252,445 | $ 206,158 |
Long-lived assets by geographic region | $ 29,673 | $ 31,713 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
After Tax components of accumulated comprehensive loss [Abstract] | ||
Foreign currency translation adjustment | $ (30,656) | $ (21,140) |
Unrecognized pension and post-retirement benefit cost, net of tax of $2,230 and $2,192, respectively | (3,227) | (3,103) |
Accumulated other comprehensive loss | (33,883) | (24,243) |
Unrecognized pension and post-retirement benefit cost, tax | $ 2,230 | $ 2,192 |
Other Income (Details)
Other Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Income [Abstract] | |||
Investment loss | $ (228) | $ (96) | $ (276) |
Licensing fees | 0 | 651 | 546 |
Other | 764 | 663 | 259 |
Total | $ 536 | $ 1,218 | $ 529 |
Business Combinations (Details)
Business Combinations (Details) BTU in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Oct. 31, 2017USD ($) | Aug. 31, 2016USD ($) | Dec. 31, 2018USD ($)BTU | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Business Acquisition [Abstract] | |||||
Goodwill | $ 32,748 | $ 45,732 | $ 40,804 | ||
Goodwill impaired | $ 11,190 | $ 0 | $ 0 | ||
Trade Names [Member] | |||||
Business Acquisition [Abstract] | |||||
Useful life of intangible assets | 15 years | ||||
RexCon Inc. [Member] | |||||
Business Acquisition [Abstract] | |||||
Date of acquisition | Oct. 1, 2017 | ||||
Cash purchase price | $ 26,443 | ||||
Amount held in escrow | 3,000 | ||||
Goodwill | 3,488 | ||||
Other intangible assets | $ 7,778 | ||||
Goodwill impaired | $ 3,488 | ||||
RexCon Inc. [Member] | Maximum [Member] | |||||
Business Acquisition [Abstract] | |||||
Period of time for amount held in escrow | 18 months | ||||
RexCon Inc. [Member] | Noncompete agreements [Member] | |||||
Business Acquisition [Abstract] | |||||
Useful life of intangible assets | 5 years | ||||
RexCon Inc. [Member] | Technology [Member] | |||||
Business Acquisition [Abstract] | |||||
Useful life of intangible assets | 19 years | ||||
RexCon Inc. [Member] | Trade Names [Member] | |||||
Business Acquisition [Abstract] | |||||
Useful life of intangible assets | 15 years | ||||
RexCon Inc. [Member] | Customer Relationships [Member] | |||||
Business Acquisition [Abstract] | |||||
Useful life of intangible assets | 18 years | ||||
Power Flame Incorporated [Member] | |||||
Business Acquisition [Abstract] | |||||
Date of acquisition | Aug. 1, 2016 | ||||
Cash purchase price | $ 39,765 | ||||
Amount held in escrow | 4,000 | ||||
Goodwill | 12,632 | ||||
Other intangible assets | $ 17,990 | ||||
Goodwill impaired | $ 7,702 | ||||
Power Flame Incorporated [Member] | Minimum [Member] | |||||
Business Acquisition [Abstract] | |||||
Hourly output of gas oil and low NOx burners | BTU | 400 | ||||
Power Flame Incorporated [Member] | Maximum [Member] | |||||
Business Acquisition [Abstract] | |||||
Period of time for amount held in escrow | 2 years | ||||
Hourly output of gas oil and low NOx burners | BTU | 120,000 | ||||
Power Flame Incorporated [Member] | Technology [Member] | |||||
Business Acquisition [Abstract] | |||||
Useful life of intangible assets | 19 years | ||||
Power Flame Incorporated [Member] | Trade Names [Member] | |||||
Business Acquisition [Abstract] | |||||
Useful life of intangible assets | 15 years | ||||
Power Flame Incorporated [Member] | Customer Relationships [Member] | |||||
Business Acquisition [Abstract] | |||||
Useful life of intangible assets | 18 years |