Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 03, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-11595 | |
Entity Registrant Name | ASTEC INDUSTRIES, INC. | |
Entity Incorporation, State or Country Code | TN | |
Entity Tax Identification Number | 62-0873631 | |
Entity Address, Address Line One | 1725 Shepherd Road | |
Entity Address, City or Town | Chattanooga | |
Entity Address, State or Province | TN | |
Entity Address, Postal Zip Code | 37421 | |
City Area Code | 423 | |
Local Phone Number | 899-5898 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | ASTE | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 22,609,332 | |
Entity Central Index Key | 0000792987 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 108,529 | $ 48,857 |
Investments | 3,746 | 1,547 |
Trade receivables and contract assets, net | 127,160 | 120,271 |
Other receivables | 5,673 | 4,576 |
Inventories | 261,481 | 294,536 |
Prepaid and refundable income taxes | 13,274 | 15,234 |
Assets held for sale | 1,213 | 3,084 |
Prepaid expenses and other assets | 12,082 | 18,199 |
Total current assets | 533,158 | 506,304 |
Property and equipment, net | 182,817 | 190,363 |
Investments | 14,355 | 16,104 |
Goodwill | 36,410 | 33,176 |
Intangible assets, net | 32,294 | 23,536 |
Deferred income tax assets | 11,361 | 24,696 |
Other long-term assets | 9,260 | 6,319 |
Total assets | 819,655 | 800,498 |
Current liabilities: | ||
Current maturities of long-term debt | 147 | 209 |
Short-term debt | 404 | 1,130 |
Accounts payable | 53,141 | 57,162 |
Customer deposits | 27,747 | 42,874 |
Accrued product warranty | 10,512 | 10,261 |
Accrued payroll and related liabilities | 26,683 | 24,718 |
Accrued loss reserves | 2,386 | 2,299 |
Other current liabilities | 40,219 | 34,114 |
Total current liabilities | 161,239 | 172,767 |
Long-term debt | 380 | 690 |
Deferred income tax liabilities | 1,572 | 896 |
Other long-term liabilities | 33,181 | 23,658 |
Total liabilities | 196,372 | 198,011 |
Shareholders’ equity | 622,901 | 601,949 |
Non-controlling interest | 382 | 538 |
Total equity | 623,283 | 602,487 |
Total liabilities and equity | $ 819,655 | $ 800,498 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Net sales | $ 231,404 | $ 255,807 | $ 785,551 | $ 886,389 |
Cost of sales | 180,967 | 203,947 | 601,478 | 674,362 |
Gross profit | 50,437 | 51,860 | 184,073 | 212,027 |
Selling, general, administrative and engineering expenses | 48,828 | 47,643 | 147,757 | 158,594 |
Restructuring and asset impairment charges | 2,417 | 875 | 11,122 | 1,431 |
(Loss) income from operations | (808) | 3,342 | 25,194 | 52,002 |
Interest expense | (96) | (167) | (253) | (1,299) |
Other income, net of expenses | 1,349 | 412 | 2,017 | 1,252 |
Income from operations before income taxes | 445 | 3,587 | 26,958 | 51,955 |
Income tax (benefit) provision | (1,242) | 632 | (4,517) | 11,420 |
Net income | 1,687 | 2,955 | 31,475 | 40,535 |
Net (income) loss attributable to non-controlling interest | (39) | 55 | 75 | 127 |
Net income attributable to controlling interest | $ 1,648 | $ 3,010 | $ 31,550 | $ 40,662 |
Net income attributable to controlling interest: | ||||
Basic (in dollars per share) | $ 0.07 | $ 0.13 | $ 1.40 | $ 1.81 |
Diluted (in dollars per share) | $ 0.07 | $ 0.13 | $ 1.38 | $ 1.79 |
Weighted average number of common shares outstanding: | ||||
Basic (in shares) | 22,615 | 22,523 | 22,593 | 22,510 |
Diluted (in shares) | 22,946 | 22,684 | 22,838 | 22,666 |
Dividends declared per common share (in dollars per share) | $ 0.11 | $ 0.11 | $ 0.33 | $ 0.33 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,687 | $ 2,955 | $ 31,475 | $ 40,535 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 506 | (3,524) | (8,293) | (2,671) |
Other comprehensive income (loss) | 506 | (3,524) | (8,293) | (2,671) |
Comprehensive income (loss) | 2,193 | (569) | 23,182 | 37,864 |
Comprehensive (income) loss attributable to non-controlling interest | (80) | 105 | 171 | 167 |
Comprehensive income (loss) attributable to controlling interest | $ 2,113 | $ (464) | $ 23,353 | $ 38,031 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 31,475 | $ 40,535 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 19,370 | 19,698 |
Provision for doubtful accounts | 559 | 1,086 |
Provision for warranties | 7,094 | 7,020 |
Deferred compensation expense | 503 | 74 |
Stock-based compensation | 4,814 | 2,118 |
Deferred income tax provision | 14,012 | 9,193 |
(Gain) loss on disposition of fixed assets | (826) | 309 |
Asset impairment charge | 4,146 | 0 |
Distributions to SERP participants | (1,234) | (2,067) |
Change in operating assets and liabilities, net of effects of acquisitions: | ||
(Purchase) sale of trading securities, net | (534) | 883 |
Trade and other receivables | (1,964) | 18,150 |
Inventories | 43,170 | (1,261) |
Prepaid expenses and other assets | 5,805 | 849 |
Accounts payable | (7,952) | (8,899) |
Accrued and payroll related expenses | 1,009 | 0 |
Accrued product warranty | (7,328) | (8,004) |
Customer deposits | (17,966) | (4,247) |
Prepaid, refundable and income taxes payable, net | 8,604 | 8,964 |
Other | 553 | (226) |
Net cash provided by operating activities | 103,310 | 84,175 |
Cash flows from investing activities: | ||
Business acquisitions, net of cash acquired | (28,252) | 0 |
Expenditures for property and equipment | (10,934) | (17,924) |
Proceeds from sale of property and equipment | 2,881 | 268 |
Proceeds from sale of assets held for sale | 3,084 | 0 |
Other | 285 | 1,407 |
Net cash used by investing activities | (32,936) | (16,249) |
Cash flows from financing activities: | ||
Payment of dividends | (7,457) | (7,436) |
Borrowings under bank loans | 175 | 164,850 |
Repayments of bank loans | (518) | (223,984) |
Payments to Noncontrolling Interests | 0 | (16) |
Sale of Company shares held by SERP | 214 | 192 |
Withholding tax paid upon vesting of restricted stock units | (739) | (312) |
Net cash used by financing activities | (8,325) | (66,706) |
Effect of exchange rates on cash | (2,377) | (752) |
Net change in cash and cash equivalents | 59,672 | 468 |
Cash and cash equivalents, beginning of period | 48,857 | 25,821 |
Cash and cash equivalents, end of period | $ 108,529 | $ 26,289 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity (unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in- Capital | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive LossCumulative Effect, Period of Adoption, Adjustment | Company Shares Held by SERP | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Non-controlling Interest |
Balance at Dec. 31, 2018 | $ 585,290 | $ 0 | $ 4,503 | $ 120,601 | $ (33,883) | $ (721) | $ (1,886) | $ 495,245 | $ 721 | $ 710 |
Balance (in shares) at Dec. 31, 2018 | 22,513 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 40,535 | 40,662 | (127) | |||||||
Other comprehensive income | (2,671) | (2,631) | (40) | |||||||
Dividends declared and paid | (7,436) | 9 | (7,445) | 0 | ||||||
Stock-based compensation | 2,014 | 2,014 | ||||||||
Stock-based compensation (in shares) | (2) | |||||||||
RSU vesting | 0 | $ 6 | (6) | |||||||
RSU vesting (in shares) | 31 | |||||||||
Withholding tax paid upon vesting of RSUs | (312) | (312) | ||||||||
SERP transactions, net | 192 | 67 | 125 | |||||||
Other | (19) | (8) | (1) | (10) | ||||||
Change in ownership percentage of subsidiary | (9) | |||||||||
Balance at Sep. 30, 2019 | $ 617,584 | $ 4,509 | 122,373 | (37,243) | (1,761) | 529,182 | 524 | |||
Balance (in shares) at Sep. 30, 2019 | 22,546 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201802Member | |||||||||
Balance at Dec. 31, 2018 | $ 585,290 | $ 0 | $ 4,503 | 120,601 | (33,883) | $ (721) | (1,886) | 495,245 | $ 721 | 710 |
Balance (in shares) at Dec. 31, 2018 | 22,513 | |||||||||
Balance at Dec. 31, 2019 | $ 602,487 | $ 4,510 | 122,613 | (31,803) | (1,714) | 508,343 | 538 | |||
Balance (in shares) at Dec. 31, 2019 | 22,551 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201802Member | |||||||||
Balance at Jun. 30, 2019 | $ 620,608 | $ 4,506 | 122,285 | (33,751) | (1,716) | 528,655 | 629 | |||
Balance (in shares) at Jun. 30, 2019 | 22,531 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 2,955 | 3,010 | (55) | |||||||
Other comprehensive income | (3,524) | (3,474) | (50) | |||||||
Dividends declared and paid | (2,480) | 3 | (2,483) | |||||||
Stock-based compensation | 241 | 241 | ||||||||
Stock-based compensation (in shares) | 0 | |||||||||
RSU vesting | 0 | $ 3 | (3) | |||||||
RSU vesting (in shares) | 15 | |||||||||
Withholding tax paid upon vesting of RSUs | (152) | (152) | ||||||||
SERP transactions, net | (46) | (1) | (45) | |||||||
Other | (18) | (18) | 0 | |||||||
Balance at Sep. 30, 2019 | 617,584 | $ 4,509 | 122,373 | (37,243) | (1,761) | 529,182 | 524 | |||
Balance (in shares) at Sep. 30, 2019 | 22,546 | |||||||||
Balance at Dec. 31, 2019 | 602,487 | $ 4,510 | 122,613 | (31,803) | (1,714) | 508,343 | 538 | |||
Balance (in shares) at Dec. 31, 2019 | 22,551 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 31,475 | 31,550 | (75) | |||||||
Other comprehensive income | (8,293) | (8,197) | (96) | |||||||
Dividends declared and paid | (7,457) | 7 | (7,464) | |||||||
Stock-based compensation | 5,579 | 5,579 | ||||||||
Stock-based compensation (in shares) | 0 | |||||||||
RSU vesting | 0 | $ 11 | (11) | |||||||
RSU vesting (in shares) | 56 | |||||||||
Withholding tax paid upon vesting of RSUs | (739) | (739) | ||||||||
SERP transactions, net | 214 | 39 | 175 | |||||||
Other | 17 | 0 | 15 | |||||||
Balance at Sep. 30, 2020 | 623,283 | $ 4,521 | 127,488 | (40,000) | (1,537) | 532,429 | 382 | |||
Balance (in shares) at Sep. 30, 2020 | 22,607 | |||||||||
Balance at Jun. 30, 2020 | 621,824 | $ 4,520 | 125,841 | (40,465) | (1,625) | 533,268 | 285 | |||
Balance (in shares) at Jun. 30, 2020 | 22,603 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 1,687 | 1,648 | 39 | |||||||
Other comprehensive income | 506 | 465 | 41 | |||||||
Dividends declared and paid | (2,487) | 0 | (2,487) | |||||||
Stock-based compensation | 1,819 | 1,819 | ||||||||
Stock-based compensation (in shares) | (1) | |||||||||
RSU vesting | 0 | $ 1 | (1) | |||||||
RSU vesting (in shares) | 5 | |||||||||
Withholding tax paid upon vesting of RSUs | (174) | (174) | ||||||||
SERP transactions, net | 89 | 3 | 86 | |||||||
Other | 19 | 0 | 17 | |||||||
Balance at Sep. 30, 2020 | $ 623,283 | $ 4,521 | $ 127,488 | $ (40,000) | $ (1,537) | $ 532,429 | $ 382 | |||
Balance (in shares) at Sep. 30, 2020 | 22,607 |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X promulgated under the Securities Exchange Act of 1934. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. U.S. GAAP requires us to make estimates based on assumptions about current and, for some estimates, future economic and market conditions which affect reported amounts and related disclosures in our financial statements. Although our current estimates contemplate current and expected future conditions, as applicable, it is reasonably possible that actual conditions could differ from our expectations, which could materially affect our results of operations and financial position. In particular, a number of estimates have been and will continue to be affected by the ongoing novel coronavirus pandemic (“COVID-19”). The severity, magnitude and duration, as well as the economic consequences of COVID-19, are uncertain, rapidly changing and difficult to predict. As a result, our accounting estimates and assumptions may change over time in response to COVID-19. Such changes could result in future impairments of goodwill, intangibles, long-lived assets and investment securities and incremental credit losses on receivables, among other issues. Operating results for the three and nine-month periods ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. It is suggested that these unaudited condensed consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Astec Industries, Inc. Annual Report on Form 10-K for the year ended December 31, 2019. The unaudited condensed consolidated balance sheet as of December 31, 2019 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The Company's sales and profit results were impacted in the third quarter of September 30, 2020 due mainly to COVID-19. Determining the extent of variances and fluctuations from COVID-19 has been difficult because there have been no easily discernible trends or patterns to the Company's business. However, the Company expects that its results of operations in the fourth quarter of 2020 may reflect an increase in the severity of the impact of the effects of COVID-19, as well as negative impacts to subsequent periods. The Company continues to monitor the effects of COVID-19 on its reported sales and profit results and has taken steps to ensure employee and visitor safety, adequate liquidity and business continuity during this pandemic. Certain reclassifications in amounts previously reported have been made to conform to current presentation. Recent Accounting Pronouncements 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 requires 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 adopted the new standard as of January 1, 2020. As the Company’s credit losses are typically minimal, the adoption of this new standard did not have a significant impact on the Company's financial position, results of operations or cash flows and no cumulative adjustment to retained earnings was necessary. In February 2018, the FASB issued ASU No. 2018-02 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 adopted this new standard effective January 1, 2020. The adoption of this new standard did not have a material impact on its financial position, results of operations, cash flows or disclosures. In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes”, which eliminates certain exceptions related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The new standard is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years with early adoption permitted in interim or annual periods if the Company has not yet issued financial statements. If the Company elects to early adopt the amendments in an interim period, it should reflect any adjustments as of the beginning of the annual period that includes the interim period and must adopt all amendments in the same period applying all guidance prospectively, except for certain amendments. The Company has not determined the impact of the statement’s provision on its financial position, results of operations or cash flows. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848)”, which provides optional guidance for a limited period of time to ease the potential burden in accounting (or the recognizing the effects of) reference rate reform on financial reporting. This was in response to stakeholders raising certain operational challenges likely to arise in accounting for contract modifications and hedge accounting because of reference rate reform. Some of those challenges relate to the significant volume of contracts and other arrangements, such as debt agreements, lease agreements, and derivative instruments, which will be modified to replace references to discontinued rates with references to replacement rates. For accounting purposes, such contract modifications are required to be evaluated in determining whether the modifications result in the establishment of new contracts or the continuation of existing contracts. Stakeholders indicated that due to the significant volume of affected contracts and other arrangements, together with a compressed time frame for making contract modifications, the application of existing accounting standards on assessing modifications versus extinguishments could be costly and burdensome. In addition, stakeholders indicated that financial reporting results should reflect the intended continuation of such contracts and arrangements during the period of the market-wide transition to alternative reference rates. This new standard is effective for annual and interim periods beginning after December 31, 2022. The Company has yet to determine what effects, if any, this will have on their debt instrument. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per ShareBasic earnings per share is determined by dividing earnings by the weighted average number of common shares outstanding during each period. Diluted earnings per share includes the potential dilutive effect of performance stock units, restricted stock units and shares held in the Company’s Supplemental Executive Retirement Plan. The following table sets forth net income attributable to controlling interest and the number of basic and diluted shares used in the computation of earnings per share: Three Months Ended Nine Months Ended (in thousands, except per share amounts) 2020 2019 2020 2019 Numerator: Net income attributable to controlling interest $ 1,648 $ 3,010 $ 31,550 $ 40,662 Denominator: Denominator for basic earnings per share 22,615 22,523 22,593 22,510 Effect of dilutive securities: Restricted stock units 287 112 198 107 Supplemental Executive Retirement Plan 44 49 47 49 Denominator for diluted earnings per share 22,946 22,684 22,838 22,666 |
Trade Receivables and Contract
Trade Receivables and Contract Assets, net | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Trade Receivables and Contract Assets, net | Trade Receivables and Contract Assets, netTrade receivables and contract assets are net of allowances for credit losses of $2.0 million and $1.4 million as of September 30, 2020 and December 31, 2019, respectively. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following: (in thousands) September 30, 2020 December 31, 2019 Raw materials and parts $ 163,241 $ 160,872 Work-in-process 56,437 61,287 Finished goods 36,377 53,650 Used equipment 5,426 18,727 Total $ 261,481 $ 294,536 Raw materials and parts are 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 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 consist of completed equipment manufactured for sale to customers. Used equipment 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, 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 adjustment 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 Company’s equipment or parts. 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 | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and EquipmentProperty and equipment is stated at cost, less accumulated depreciation of $269.7 million and $267.7 million as of September 30, 2020 and December 31, 2019, respectively. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company has various financial instruments that must be measured at fair value on a recurring basis, including marketable debt and equity securities held by Astec Insurance Company (“Astec Insurance”), the Company’s captive insurance company; marketable equity securities held in an unqualified Supplemental Executive Retirement Plan (“SERP”); and a money market fund held by a foreign subsidiary. The obligations of the Company associated with the financial assets held in the SERP also constitute a liability of the Company for financial reporting purposes and are included in other long-term liabilities in the accompanying unaudited condensed consolidated balance sheets. The Company’s subsidiaries also occasionally enter into foreign currency exchange contracts to mitigate exposure to fluctuations in currency exchange rates. The carrying amount of cash and cash equivalents, trade receivables and contract assets, other receivables, accounts payable, short-term debt and long-term debt approximates their fair value because of their short-term nature and/or interest rates associated with the instruments. Investments are carried at their fair value based on quoted market prices for identical or similar assets or, where no quoted prices exist, other observable inputs for the asset. The fair values of foreign currency exchange contracts are based on quotations from various banks for similar instruments using models with market based inputs. Financial assets and liabilities are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The inputs used to measure the fair value are identified in the following hierarchy: Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 - Unadjusted quoted prices in active markets for similar assets or liabilities; or unadjusted 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. The Company reevaluates the volume of trading activity for each of its investments at the end of each quarter and adjusts the level within the fair value hierarchy as needed. As indicated in the tables below (which excludes the Company’s pension assets), the Company has determined that all of its financial assets and liabilities as of September 30, 2020 and December 31, 2019 are Level 1 and Level 2 in the fair value hierarchy as defined above: September 30, 2020 (in thousands) Level 1 Level 2 Total Financial Assets: Trading equity securities: SERP money market fund $ 387 $ — $ 387 SERP mutual funds 3,988 — 3,988 Preferred stocks 284 — 284 Trading debt securities: Corporate bonds 4,972 — 4,972 Municipal bonds — 1,141 1,141 Floating rate notes 376 — 376 U.S. government securities 1,771 — 1,771 Asset backed securities — 2,236 2,236 Other 200 2,746 2,946 Total financial assets $ 11,978 $ 6,123 $ 18,101 Financial Liabilities: Derivative financial instruments $ — $ 402 $ 402 SERP liabilities — 6,721 6,721 Total financial liabilities $ — $ 7,123 $ 7,123 December 31, 2019 (in thousands) Level 1 Level 2 Total Financial Assets: Trading equity securities: SERP money market fund $ 208 $ — $ 208 SERP mutual funds 4,419 — 4,419 Preferred stocks 282 — 282 Trading debt securities: Corporate bonds 5,117 — 5,117 Municipal bonds — 1,154 1,154 Floating rate notes 535 — 535 U.S. government securities 2,035 — 2,035 Asset backed securities — 2,316 2,316 Other 473 1,112 1,585 Derivative financial instruments — 4 4 Total financial assets $ 13,069 $ 4,586 $ 17,655 Financial Liabilities: Derivative financial instruments $ — $ 49 $ 49 SERP liabilities — 6,645 6,645 Total financial liabilities $ — $ 6,694 $ 6,694 The trading equity securities noted above are valued at their fair value based on their quoted market prices, and the 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 with the assistance of a nationally recognized third-party pricing service. Additionally, a significant portion of the SERP’s investments in trading equity securities are in money market and mutual funds. As these money market and mutual funds are held in a SERP, they are also included in the Company’s liability under its SERP. Trading debt securities are comprised of marketable debt securities held by Astec Insurance. Astec Insurance has an investment strategy that focuses on providing regular and predictable interest income from a diversified portfolio of high-quality fixed income securities. The Company has $85.1 million in a government money market fund at September 30, 2020, which is included in cash and cash equivalents in the accompanying unaudited condensed consolidated balance sheet. |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The Company tests goodwill and indefinite-lived intangible assets for impairment annually, as of October 31, or more frequently should circumstances change or events occur that would more likely than not reduce the fair value of a reporting unit below its carrying value. In the first quarter of 2020, as part of the Company’s ongoing assessment to consider whether events or circumstances had occurred that could more likely than not reduce the fair value of a reporting unit below its carrying value, the Company performed an interim goodwill impairment test as of March 31, 2020 over the mobile asphalt equipment reporting unit. Based on the results of this testing, the Company recorded a $1.6 million pre-tax non-cash impairment charge (in the Infrastructure Solutions segment) to fully impair the mobile asphalt equipment reporting unit’s goodwill in the first quarter of 2020. This charge was included along with other restructuring and asset impairment charges in the accompanying unaudited condensed statement of income for nine months ended September 30, 2020. No impairment was recorded during the three months ended September 30, 2020. The only other change to goodwill from values reported as of December 31, 2019 was the goodwill acquired as part of the BMH Systems acquisition (see Note 8 ) and the impact of foreign exchange rate changes on certain goodwill in the Materials Solutions segment during the nine months ended September 30, 2020. The carrying value of goodwill at September 30, 2020 and December 31, 2019 was $36.4 million and $33.2 million, respectively . |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions CON-E-CO Acquisition - The Company entered into a Stock Purchase Agreement, dated as of July 20, 2020, by and between Oshkosh Corporation for the purchase of the CON-E-CO concrete equipment company in Nebraska. The purchase price was $13.8 million, after adjustments, and was paid in cash. The Company's preliminary allocation of the purchase price resulted in the recognition of $3.9 million of intangible assets primarily consisting of customer relationships (8 year life) and trade name (15 year life). Significant inputs and assumptions used in determining the fair values of these intangible assets include management's forecasts of future revenues, earnings and cash flows, a discount rate based on the median weighted average cost of capital of the Company and select market competitors, and proportion of intangible assets acquired in relation to tangible assets. The acquisition provides the Company with a full-line concrete batch plant manufacturer, which will strengthen the Infrastructure Solutions segment. Results of operations have been consolidated from the date of acquisition. The following table summarizes the preliminary allocations of the total purchase price: (in thousands) Amount Cash $ 69 Accounts receivable 2,282 Inventories 8,128 Other assets 6,635 Intangible assets 3,879 Total assets acquired 20,993 Accounts payable and other (4,316) Advance customer deposits (2,839) Total liabilities assumed (7,155) Total purchase price $ 13,838 BMH Systems Acquisition - The Company entered into a Share Purchase Agreement, dated as of August 3, 2020, by and between BMH Systems ("St. Bruno") - for the purchase of the concrete equipment company in Montreal, Canada. The purchase price was $15.7 million, after adjustments, and was paid in cash. The Company's preliminary allocation of the purchase price resulted in the recognition of $5.3 million of goodwill and $6.8 million of other intangible assets primarily consisting of customer relationships (9 year life) and of trade name (15 year life). Significant inputs and assumptions used in determining the fair values of these intangible assets include management's forecasts of future revenues, earnings and cash flows, a discount rate based on the median weighted average cost of capital of the Company and select market competitors, and proportion of intangible assets acquired in relation to tangible assets. The acquisition provides the Company with a full-line concrete batch plant manufacturer, which will strengthen the Infrastructure Solutions segment. Results of operations have been consolidated from the date of acquisition. The goodwill is not expected to be deductible for income tax purposes. The following table summarizes the preliminary allocations of the total purchase price: (in thousands) Amount Cash $ 1,217 Accounts receivable 4,176 Inventories 1,986 Goodwill 5,258 Other assets 6,020 Intangible assets 6,822 Total assets acquired 25,479 Total liabilities assumed (9,779) Total purchase price $ 15,700 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt In February 2019, the Company and certain of its subsidiaries amended their 2012 amended and restated credit agreement whereby the lender increased the Company's unsecured line of credit to $150.0 million, including a sub-limit for letters of credit of up to $30.0 million and extended the maturity date to December 29, 2023. Other significant terms were left unchanged. There were no borrowings outstanding under the agreement as of September 30, 2020, December 31, 2019 or at any time during the nine months ended September 30, 2020. Letters of credit totaling $8.6 million, including $3.2 million of letters of credit issued to banks in Brazil to secure the local debt of Astec do Brasil Fabricacao de Equipamentos Ltda. (“Astec Brazil”), were outstanding under the credit facility as of September 30, 2020. Additional borrowing available under the credit facility was $141.4 million as of September 30, 2020. Borrowings under the agreement are subject to an interest rate equal to the daily one-month LIBOR rate plus a 0.75% margin. The unused facility fee is 0.125%. The amended and restated credit agreement contains certain financial covenants, including provisions concerning required levels of annual net income and minimum tangible net worth. The Company’s South African subsidiary, Osborn Engineered Products SA (Pty) Ltd (“Johannesburg”), has a credit facility of $5.6 million with a South African bank to finance short-term working capital needs, as well as to cover performance letters of credit, advance payment and retention guarantees. As of September 30, 2020, Johannesburg had no outstanding borrowings but had $0.8 million in performance, advance payment and retention guarantees outstanding under the facility. The facility has been guaranteed by Astec Industries, Inc., but is otherwise unsecured. A 0.75% unused facility fee is charged if less than 50% of the facility is utilized. As of September 30, 2020, Johannesburg had available credit under the facility of $4.8 million. The interest rate is 0.25% less than the South Africa prime rate. The Company’s Brazilian subsidiary, Astec do Brasil Fabricacao de Equipamentos Ltda. (“Belo Horizonte”), had a $0.5 million and $0.9 million working capital loan outstanding as of September 30, 2020 and December 31, 2019, respectively, from a Brazilian bank with an interest rate of 10.4%. The loan’s final monthly payment is due in April 2024 and the debt is secured by Belo Horizonte’s manufacturing facility. Belo Horizonte’s debt is included in the accompanying unaudited condensed consolidated balance sheets as current maturities of long-term debt ($0.1 million and $0.2 million) and long-term debt ($0.4 million and $0.7 million) as of September 30, 2020 and December 31, 2019, respectively. Additionally, as of September 30, 2020 and December 31, 2019, respectively, Belo Horizonte had $0.4 million and $1.1 million outstanding under order anticipation agreements with a local bank with maturity dates through September 2020, which are included as short-term debt in the accompanying unaudited condensed consolidated balance sheets. These loans are drawn under credit facilities with local Brazilian banks secured by letters of credit totaling $3.2 million issued by Astec Industries, Inc. The Company’s U.K. subsidiary, Telestack Limited (“Omagh”), has a credit facility from a U.K. bank but had no working capital loans outstanding as of September 30, 2020 and December 31, 2019. The $3.1 million credit facility size is scheduled to decrease to $0.3 million on December 31, 2020 and Omagh is currently working with the bank on an extension of the current facility size. This credit facility is guaranteed by the parent, Astec Industries, Inc., and secured by certain Omagh assets. When cash drawings against this credit facility occur they are included in the accompanying unaudited condensed consolidated balance sheets as short-term debt. Additionally, as of September 30, 2020 and December 31, 2019, respectively, Omagh had $1.3 million and $1.2 million outstanding under performance bonds and advance payment guarantees with the same U.K. bank with maturity dates through March 2021, which are contingent liabilities. The Company’s Australian subsidiary, Astec Australia Pty Ltd (“Australia”), has credit facilities of $2.5 million with an Australian bank to finance short-term working capital needs, as well as to cover performance letters of credit, advance payment and retention guarantees. As of September 30, 2020, Australia had no outstanding cash borrowings but had $0.3 million in performance, advance payment and retention guarantees outstanding under the facilities which are contingent liabilities. The facilities are secured by certain Australia assets. A 1.35% unused facility fee is charged on the entire $1.6 million portion which is a short-term working capital facility. As of September 30, 2020, Australia had available credit under the short-term working capital facility of $1.6 million. The interest rate is the Westpac Business One Loan Rate without a margin. The Company’s Canadian subsidiary, St. Bruno, has credit facilities in the total amount of $1.1 million from a Canadian Bank and had a working capital loan of $0.3 million outstanding as of September 30, 2020. This credit facility is guaranteed by the parent, Astec Industries, Inc., and secured by certain St. Bruno assets. When cash drawings against this credit facility occur, they incur interest expense charged at the banks prime rate plus 0.80% and are included in the accompanying unaudited condensed consolidated balance sheets as short-term debt. Additionally, St. Bruno had no performance bonds and advance payment guarantees with the same Canadian bank as of September 30, 2020. |
Product Warranty Reserves
Product Warranty Reserves | 9 Months Ended |
Sep. 30, 2020 | |
Product Warranties Disclosures [Abstract] | |
Product Warranty Reserves | Product Warranty Reserves The Company warrants its products against manufacturing defects and performance to specified standards. The warranty period and performance standards vary by market and uses of its products, but generally range from three months to 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 product warranty liability is primarily based on historical claim rates, nature of claims and the associated cost. Changes in the Company’s product warranty liability for the three and nine-month periods ended September 30, 2020 and 2019 are as follows: Three Months Ended Nine Months Ended (in thousands) 2020 2019 2020 2019 Reserve balance, beginning of the period $ 10,691 $ 10,117 $ 10,261 $ 10,928 Warranty liabilities accrued 1,957 2,524 7,094 7,020 Warranty liabilities settled (2,790) (2,717) (7,328) (8,004) Other 654 68 485 48 Reserve balance, end of the period $ 10,512 $ 9,992 $ 10,512 $ 9,992 |
Accrued Loss Reserves
Accrued Loss Reserves | 9 Months Ended |
Sep. 30, 2020 | |
Accrued Loss Reserves [Abstract] | |
Accrued Loss Reserves | Accrued Loss ReservesThe Company records reserves for losses related to known workers’ compensation and general liability claims that have been incurred but not yet paid or are estimated to have been incurred but not yet reported to the Company. The undiscounted reserves are actuarially determined based on the Company’s evaluation of the type and severity of individual claims and historical information, primarily its own claims experience, along with assumptions about future events. Changes in assumptions, as well as changes in actual experience, could cause these estimates to change in the future. Total accrued loss reserves were $7.0 million and $6.8 million as of September 30, 2020 and December 31, 2019, respectively, of which $4.6 million and $4.5 million were included in other long-term liabilities in the accompanying unaudited condensed consolidated balance sheets as of September 30, 2020 and December 31, 2019, respectively. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | LeasesThe Company leases certain real estate, computer systems, material handling equipment, offices, automobiles and other equipment. The Company determines if a contract is a lease (or contains an embedded lease) at the inception of the agreement. The Company adopted ASU No. 2016-2, Leases, on January 1, 2019 using the effective date method. Upon adoption, right-of-use (“ROU”) assets totaling $5.0 million were recorded on the Company’s consolidated balance sheet. Incremental borrowing rates used in the calculation of the ROU asset, when not apparent in the lease agreements, were estimated based upon secured borrowing rates quoted by the Company’s banks for loans of various lengths ranging from one year to 20 years. Operating leases with original maturities less than one year in duration were excluded. The calculation of the ROU asset considered lease agreement provisions concerning termination, extensions, end of lease purchase and whether or not those provisions were reasonably certain of being exercised. Certain agreements contain lease and non-lease components, which are accounted for separately. No cumulative effect adjustment was necessary at the time of adoption. Based upon a contract review and related calculations, none of the Company’s leases were deemed to be financing leases. Other information concerning the Company’s operating leases accounted for under leasing guidelines and the related expense, assets and liabilities follow: Three Months Ended (in thousands) September 30, 2020 September 30, 2019 Operating lease expense $ 608 $ 657 Cash paid for operating leases included in operating cash flows 655 697 Nine Months Ended (in thousands) September 30, 2020 September 30, 2019 Operating lease expense $ 1,773 $ 1,907 Cash paid for operating leases included in operating cash flows 1,889 2,037 (in thousands) September 30, 2020 December 31, 2019 Operating lease right-of-use asset $ 6,568 $ 3,853 Operating lease short-term liability included in other current liabilities 2,043 1,846 Operating lease long-term liability included in other long-term liabilities 4,511 2,020 Weighted average remaining lease term (in years) 6.54 4.66 Weighted average discount rate used in calculating right-of-use asset 3.72 % 3.56 % |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesThe Company's combined effective income tax rates were (279.1)% and 17.6% for the three month periods ended September 30, 2020 and 2019, respectively. The Company's combined effective tax rates were (16.8)% and 22.0% for the nine month periods ended September 30, 2020 and 2019, respectively. The Company's effective tax rate for September 30, 2020 includes the effect of state income taxes, a benefit for federal and state research and development credits, a net benefit for international provisions of U.S. tax reform that became effective in 2018, and various discrete items with the largest being a benefit for the NOL carryback noted below. The Company's recorded liability for uncertain tax positions as of September 30, 2020 has increased by approximately $1.5 million as compared to December 31, 2019 due to exposure related to federal and state credits, plus additional taxes and interest on existing reserves. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (“CARES”) Act was enacted and signed into law. Certain provisions of the CARES Act impact the 2020 income tax provision computations of the Company and are reflected in the period ended September 30, 2020. The CARES Act contains modifications to Net Operating Loss (“NOL”) carryback provisions, which will allow the Company to carryback its 2018 NOL recorded at a 21% statutory tax rate to prior tax years. This carryback to tax years with a higher statutory rate (35)% results in a net discrete tax benefit of $9.5 million for the 2020 year-to-date period. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition: The following tables disaggregate our revenue by major source for the three and nine-month periods ended September 30, 2020 and 2019 (excluding intercompany sales): Three Months Ended September 30, 2020 (in thousands) Infrastructure Materials Total Net Sales-Domestic: Equipment sales $ 73,594 $ 32,806 $ 106,400 Parts and component sales 39,641 18,560 58,201 Service and equipment installation revenue 4,920 322 5,242 Used equipment sales 3,358 290 3,648 Freight revenue 5,198 1,273 6,471 Other 1,665 (331) 1,334 Total domestic revenue 128,376 52,920 181,296 Net Sales-International: Equipment sales 13,620 17,316 30,936 Parts and component sales 7,136 8,788 15,924 Service and equipment installation revenue 568 140 708 Used equipment sales 924 678 1,602 Freight revenue 331 418 749 Other 141 48 189 Total international revenue 22,720 27,388 50,108 Total net sales $ 151,096 $ 80,308 $ 231,404 Nine Months Ended September 30, 2020 (in thousands) Infrastructure Materials Total Net Sales-Domestic: Equipment sales $ 278,653 $ 117,346 $ 395,999 Parts and component sales 128,142 54,775 182,917 Service and equipment installation revenue 17,863 1,147 19,010 Used equipment sales 17,666 703 18,369 Freight revenue 15,824 3,995 19,819 Other 1,535 (952) 583 Total domestic revenue 459,683 177,014 636,697 Net Sales-International: Equipment sales 48,609 44,192 92,801 Parts and component sales 21,372 24,934 46,306 Service and equipment installation revenue 2,078 855 2,933 Used equipment sales 2,344 1,709 4,053 Freight revenue 1,275 1,007 2,282 Other 204 275 479 Total international revenue 75,882 72,972 148,854 Total net sales $ 535,565 $ 249,986 $ 785,551 Three Months Ended September 30, 2019 (in thousands) Infrastructure Materials Total Net Sales-Domestic: Equipment sales $ 87,478 $ 32,569 $ 120,047 Pellet plant sales — — — Parts and component sales 35,170 19,592 54,762 Service and equipment installation revenue 3,893 2,399 6,292 Used equipment sales 2,374 232 2,606 Freight revenue 4,539 1,603 6,142 Other 458 (524) (66) Total domestic revenue 133,912 55,871 189,783 Net Sales-International: Equipment sales 14,605 28,988 43,593 Parts and component sales 5,491 12,792 18,283 Service and equipment installation revenue 1,376 183 1,559 Used equipment sales 520 1,116 1,636 Freight revenue 125 633 758 Other 161 34 195 Total international revenue 22,278 43,746 66,024 Total net sales $ 156,190 $ 99,617 $ 255,807 Nine Months Ended September 30, 2019 (in thousands) Infrastructure Materials Total Net Sales-Domestic: Equipment sales $ 312,906 $ 134,660 $ 447,566 Pellet plant sales 20,000 — 20,000 Parts and component sales 125,530 57,673 183,203 Service and equipment installation revenue 15,102 5,456 20,558 Used equipment sales 8,527 645 9,172 Freight revenue 14,646 4,999 19,645 Other 1,187 (2,506) (1,319) Total domestic revenue 497,898 200,927 698,825 Net Sales-International: Equipment sales 46,454 72,453 118,907 Parts and component sales 22,117 34,408 56,525 Service and equipment installation revenue 4,861 883 5,744 Used equipment sales 821 1,953 2,774 Freight revenue 1,044 2,064 3,108 Other 209 297 506 Total international revenue 75,506 112,058 187,564 Total net sales $ 573,404 $ 312,985 $ 886,389 Sales into major geographic regions were as follows: Three Months Ended Nine Months Ended (in thousands) 2020 2019 2020 2019 United States $ 181,296 $ 189,783 $ 636,697 $ 698,825 Canada 12,089 19,157 39,749 56,170 Australia 6,809 10,067 18,144 26,037 Africa 7,141 11,491 17,939 27,408 South America 11,499 7,274 31,460 21,908 Europe 7,623 11,840 21,829 31,312 Central America 284 (114) 2,591 6,038 China, Japan & Korea 2,168 1,244 6,215 3,824 Asia (excl. China, Japan & Korea) 306 1,413 1,900 6,360 West Indies 1,140 4,084 5,952 5,651 Middle East 1,049 397 3,064 2,173 Other — (829) 11 683 Total foreign 50,108 66,024 148,854 187,564 Total consolidated sales $ 231,404 $ 255,807 $ 785,551 $ 886,389 Revenue is generally 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. The Company generally obtains purchase authorizations from its customers for a specified amount of products at a specified price with specific delivery terms. A significant portion of the Company’s equipment sales represents equipment produced in the Company’s manufacturing facilities under short-term contracts for a customer’s project or equipment designed to meet a customer’s requirements. Most of the equipment sold by the Company is based on standard configurations, some of which are modified to meet customer’s needs or specifications. The Company provides customers with technical design and performance specifications and typically performs pre-shipment testing, when feasible, to ensure the equipment performs according to the customer’s need, regardless of whether the Company provides installation services in addition to selling the equipment. Significant down payments are required on many equipment orders with other terms allowing for payment shortly after shipment, typically 30 days. Taxes assessed by a governmental authority that are directly imposed on revenue-producing transactions between the Company and its customers, such as sales, use, value-added and some excise taxes, are excluded from revenue. Expected warranty costs for our standard warranties are expensed at the time the related revenue is recognized. Costs of obtaining sales contracts with an expected duration of one year or less are expensed as incurred. As contracts are typically fulfilled within one year from the date of the contract, revenue adjustments for a potential financing component or the costs to obtain the contract are not made. As of September 30, 2020, the Company had contract assets of $1.3 million and contract liabilities of $7.1 million, including $3.7 million of deferred revenue related to extended warranties. As of December 31, 2019, the Company had contract assets of $4.7 million, primarily related to billings on one large ($7.2 million) order in the Infrastructure Solutions segment, and contract liabilities of $6.5 million, including $3.5 million of deferred revenue related to extended warranties. 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. 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 No. 2014-9, 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 primarily include rental revenues, extended warranty revenues, early pay discounts and floor plan interest reimbursements. The Company currently monitors credit levels and financial conditions of customers on a continuing basis. After considering historical trends for uncollectible accounts, current economic conditions and specific customer recent payment history and financial stability, each business unit records an allowance for doubtful accounts at a level which management believes is sufficient to cover all probable future credit losses as of the balance sheet date. The current policy for calculating the reserve uses the rolling twelve-month bad debt write-offs, net of recoveries, divided by the rolling twelve-month average accounts receivable balance. The Company believes the twelve-month “look-back” is most representative of current credit worthiness of the customer. After adjustments for credit balances, that percentage is then applied to the current month end accounts receivable balance to arrive at the amount to reserve. Once the reserve is calculated, each business unit reviews their accounts receivable for any known customer accounts that should be added to the reserve based on their expectation of future economic conditions that might impact the customer, which would currently include the impact of COVID-19. At a minimum, the reserve balance should equal the calculated amount before specifically reserved items and other credit loss adjustments. Thus, each business unit records their accounts receivable at an amount expected to be collected and, therefore, incorporates expected credit losses. Amounts are deemed past due when they exceed the payment terms agreed to by the customer in the sales contract. Past due amounts are charged off when reasonable collection efforts have been exhausted and the amounts are deemed uncollectible by management. The majority of the Company’s receivables within the scope of this topic are related to equipment that requires significant down payment with other terms allowing for payment shortly after shipment, typically 30 days, which the Company believes is very short term in nature. The significant down payment requirement leads to lower write-offs because it requires an upfront commitment by customers and they ultimately don’t want to lose their upfront investment. The 30-day payment requirement after shipment allows us to quickly assess where a customer stands on their account and lets us begin collection efforts. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information During the first quarter of 2020, the Company completed an internal reorganization of its reportable segments from three to two reportable segments (plus Corporate) and such segments are organized, operated and managed based on the products and services offered by the business units included in each segment. Amounts previously reported under the previous segment structure have been restated to conform to the new segment structure. A brief description of each of the Company’s segments is as follows: Infrastructure Solutions - The Infrastructure Solutions segment is comprised of 15 business units. These business units include Astec, Inc. (“CHA-Jerome Ave”), Roadtec, Inc. (“CHA-Manufacturers Rd”), BMH Systems ("St. Bruno"), CON-E-CO ("Blair"), Carlson Paving Products, Inc. (“Tacoma”), Heatec, Inc. (“CHA-Wilson Rd”), CEI Enterprises, Inc. (“Albuquerque”), GEFCO, Inc. ("Enid"), Peterson Pacific Corp. (“EUG-Airport Rd”), Power Flame Incorporated (“Parsons”), RexCon, Inc. (“Burlington”), Astec Mobile Machinery GmbH (“AMM”), Astec Australia Pty Ltd (“Australia”), Astec LatAm (“LatAm”), and Astec Thailand (“Thailand”). Products designed, engineered, manufactured and marketed by this segment include a complete line of asphalt plants and their related components, asphalt pavers, screeds, milling machines, material transfer vehicles, stabilizers and related ancillary equipment, concrete plants, water well drilling rigs, wood chippers, wood grinders, heaters, commercial burners and industrial burners. The principal purchasers of the segment’s products are asphalt producers, highway and heavy equipment contractors, foreign and domestic governmental agencies, processors of oil, gas and biomass for energy production, ready mix concrete producers and contractors in the construction and demolition recycling markets. In 2018, the Company decided to close and cease operations at AMM, located in Germany, and its land and buildings were sold in January 2020. In late 2019, the Company announced the closing of its Albuquerque site due to market conditions and underutilization of the manufacturing facility. Responsibilities for manufacturing and marketing of Albuquerque product lines were transferred to other Company facilities within the Infrastructure Solutions segment in late 2019 and early 2020. The Albuquerque site was closed as of March 31, 2020 and its land and buildings were sold in the third quarter of 2020. In late 2019, the Company impaired and discontinued Enid’s oil and gas product lines and sold the remaining assets in the third quarter of 2020. Subsequent to September 30, 2020, the Company sold the remaining assets related to Enid's remaining water well line of business (see Note 21 for more information). The Company is also currently marketing its Enid production facilities. Materials Solutions – The Materials Solutions segment is comprised of 10 business units which are focused on designing and manufacturing heavy processing equipment, as well as servicing and supplying parts for the aggregate, metallic mining, recycling, ports and bulk handling markets. These business units are Telsmith, Inc. (“Mequon”), Kolberg-Pioneer, Inc. (“Yankton”), Astec Mobile Screens, Inc. (“Sterling”), Johnson Crushers International, Inc. (“EUG-Franklin Blvd”), Breaker Technology Ltd/Breaker Technology, Inc. (“Thornbury”), Osborn Engineered Products, SA (Pty) Ltd (“Johannesburg”), Astec do Brasil Fabricacao de Equipamentos Ltda. (“Belo Horizonte”), Telestack Limited (“Omagh”), Astec India (“India”) and Astec AME (“AME”). The principal purchasers of products produced by this segment are distributors, open mine operators, quarry operators, port and inland terminal operators, highway and heavy equipment contractors and foreign and domestic governmental agencies. The Company is currently in the process of closing its Mequon site and relocating those operations to other business units. Corporate - This category consists of business units that do not meet the requirements for separate disclosure as an operating segment or inclusion in one of the other reporting segments and includes the Company’s parent company and Astec Insurance Company (“Astec Insurance”), a captive insurance company. Certain start-up costs related to foreign sales offices are also included in Corporate’s operating results. The Company evaluates performance and allocates resources to its operating segments based on profit or loss from operations before U.S. federal income taxes, state deferred taxes and corporate overhead and, thus, these costs are included in the Corporate category. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. Intersegment sales and transfers are valued at prices comparable to those for unrelated parties. Segment Information: Three Months Ended September 30, 2020 (in thousands) Infrastructure Solutions Materials Solutions Corporate Total Net sales to external customers $ 151,096 $ 80,308 $ — $ 231,404 Intersegment sales 6,695 11,671 — 18,366 Gross profit 29,645 20,692 100 50,437 Gross profit percent 19.6 % 25.8 % — % 21.8 % Segment profit (loss) $ 6,266 $ 7,205 $ (11,712) $ 1,759 Nine Months Ended September 30, 2020 (in thousands) Infrastructure Solutions Materials Solutions Corporate Total Net sales to external customers $ 535,565 $ 249,986 $ — $ 785,551 Intersegment sales 24,976 26,767 — 51,743 Gross profit 120,857 62,911 305 184,073 Gross profit percent 22.6 % 25.2 % — % 23.4 % Segment profit (loss) $ 37,701 $ 21,709 $ (28,240) $ 31,170 Three Months Ended September 30, 2019 (in thousands) Infrastructure Materials Corporate Total Net sales to external customers $ 156,190 $ 99,617 $ — $ 255,807 Intersegment sales 6,385 4,842 — 11,227 Gross profit 30,952 20,837 71 51,860 Gross profit percent 19.8 % 20.9 % — % 20.3 % Segment profit (loss) $ 3,889 $ 5,803 $ (6,947) $ 2,745 Nine Months Ended September 30, 2019 (in thousands) Infrastructure Solutions Materials Solutions Corporate Total Net sales to external customers $ 573,404 $ 312,985 $ — $ 886,389 Intersegment sales 22,421 15,381 — 37,802 Gross profit 140,004 71,876 147 212,027 Gross profit percent 24.4 % 23.0 % — % 23.9 % Segment profit (loss) $ 48,885 $ 22,969 $ (32,418) $ 39,436 A reconciliation of total segment profit to the Company’s consolidated totals is as follows: Three Months Ended Nine Months Ended (in thousands) 2020 2019 2020 2019 Total profit shown above $ 1,759 $ 2,745 $ 31,170 $ 39,436 Recapture (elimination) of intersegment profit (72) 210 305 1,099 Net income 1,687 2,955 31,475 40,535 Net (income) loss attributable to non-controlling interest in subsidiaries (39) 55 75 127 Net income attributable to controlling interest $ 1,648 $ 3,010 $ 31,550 $ 40,662 |
Contingent Matters
Contingent Matters | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent Matters | Contingent MattersCertain customers have financed purchases of Company products through arrangements in which the Company is contingently liable for customer debt of $3.5 million and $1.5 million at September 30, 2020 and December 31, 2019, respectively. These arrangements expire at various dates through December 2023 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. Additionally, the Company is also potentially liable for 1.75% of the unpaid balance, determined as of December 31 of the prior year, on certain past customer equipment purchases that were financed by an outside finance company (the maximum exposure for the Company in 2020 is $0.6 million). The Company has recorded a liability of $1.3 million related to these guarantees as of September 30, 2020. The Company reviews off balance sheet guarantees individually, and at the loss pool level based on one agreement. Prior history is considered in regard to the Company having to perform on any off balance sheet guarantees, as well as future projections of individual customer credit worthiness. During the three and nine months ended September 30, 2020, the Company considered the implications of COVID-19 in regard to assessing credit losses related to off balance sheet guarantees. In addition, the Company is contingently liable under letters of credit issued by a domestic lender totaling $8.6 million as of September 30, 2020, including $3.2 million of letters of credit guaranteeing certain Astec Brazil bank debt. The outstanding letters of credit expire at various dates through June 2023. As of September 30, 2020, the Company’s foreign subsidiaries are contingently liable for a total of $2.4 million in performance letters of credit, advance payments and retention guarantees. The maximum potential amount of future payments under all global letters of credit and guarantees for which the Company could be liable is $11.0 million as of September 30, 2020. The Company and certain of its former executive officers have been named as defendants in a putative shareholder class action lawsuit filed on February 1, 2019, as amended on August 26, 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-TRM-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. The Company disputes these allegations and intends to defend this lawsuit vigorously and has filed a motion to dismiss the lawsuit on October 25, 2019 which is pending. The Company has accrued a $0.6 million liability as of September 30, 2020. The Company's GEFCO subsidiary has been named a defendant in a lawsuit originally filed on August 16, 2018 with an amended complaint filed on January 25, 2019, in the United States District Court for the Western District of Oklahoma. The action is styled VenVer S.A. and Americas Coil Tubing LLP v. GEFCO, Inc., Case No. CIV-18-790-SLP. The complaint alleges breaches of warranty and other similar claims regarding equipment sold by GEFCO in 2013. In addition to seeking a rescission of the purchase contract, the plaintiffs seek special and consequential damages. The purchase contract contains an exclusion of consequential damages. The original purchase price of the equipment was approximately $8.5 million. GEFCO disputes the plaintiffs' allegations and is vigorously defending the lawsuit. On July 7, 2020, the plaintiffs filed a separate lawsuit directly against Astec Industries, Inc. Besides a new claim based on fraudulent transfer, the allegations essentially mirror the GEFCO suit. Astec Industries, Inc. is vigorously defending that suit as well. The matter is set for mediation on November 17, 2020. The Company is unable to determine whether or not a future loss will be incurred due to this litigation or estimate a range of loss, if any, 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. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
Share-Based Compensation | Share-Based Compensation Under the Company’s long-term incentive plans, key members of management may be issued restricted stock units (“RSUs”) each year based upon the financial performance of the Company and its subsidiaries. The number of RSUs granted to employees each year is determined based upon the performance of individual subsidiaries and consolidated financial performance. Generally, for RSUs granted through 2016, each award will 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. Awards granted in 2017 and 2018 will vest at the end of three years from the date of grant or at the time a recipient retires after reaching age 65, if earlier. Awards granted in 2019 and thereafter will vest ratably, at the end of each year from the date of grant, over a three-year period. Awards granted through February 2020 were granted based upon past performance and were typically granted each year, shortly after the end of the year. Beginning in March 2020, the incentive plan was modified to award a combination of RSUs and Performance Stock Units (“PSUs”) which are granted in March each year based upon performance targets for the next three years, as approved by the Company’s board of directors. 50% percent of the awards granted are time based vesting RSUs and the other 50% percent are performance based awards granted at the plan’s targeted performance. The actual number of PSUs ultimately vesting can vary from zero to 200% of target, based upon the Company performance. Additional RSUs are granted to the Company’s outside directors under the Company’s Non-Employee Directors Compensation Plan with a one-year vesting period. During the nine months ended September 30, 2020 and 2019, the grant date fair value of the RSUs granted based upon past performance was $2.7 million and $2.8 million, respectively. During the nine months ended September 30, 2020, the grant date fair value of the PSUs granted based upon targeted future performance and RSUs granted to our non-employee directors was $3.4 million and $1.0 million, respectively. The following table presents the stock plan activity for the nine months ended September 30, 2020 for RSUs: 2020 Units Weighted Average Grant Date Fair Value Outstanding January 1, 200,811 $ 41.52 Granted 95,821 29.16 Vested (10,563) 30.18 Forfeited (7,277) 43.88 Outstanding, September 30, 278,792 $ 37.64 The following table presents the stock plan activity for the nine months ended September 30, 2020 for PSUs: 2020 Units Weighted Average Grant Date Fair Value Outstanding January 1, — $ — Granted 95,796 35.32 Vested (1,298) 34.66 Forfeited (740) 34.66 Outstanding, September 30, 93,758 $ 35.34 |
Other Income, Net of Expenses
Other Income, Net of Expenses | 9 Months Ended |
Sep. 30, 2020 | |
Other Income and Expenses [Abstract] | |
Other Income, Net of Expenses | Other Income, Net of Expenses Other income, net of expenses for the three and nine-month periods ended September 30, 2020 and 2019 are presented below: Three Months Ended Nine Months Ended (in thousands) 2020 2019 2020 2019 Interest income $ 195 $ 369 $ 613 $ 938 Gain on investments (29) 17 78 215 Other 1,183 26 1,326 99 Total $ 1,349 $ 412 $ 2,017 $ 1,252 |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial InstrumentsThe Company is exposed to certain risks related to its ongoing business operations. The primary risk managed by using derivative instruments is foreign currency risk. From time to time, the Company’s foreign subsidiaries enter into foreign currency exchange contracts to mitigate exposure to fluctuations in currency exchange rates. The fair value of the derivative financial instruments is recorded on the Company’s unaudited condensed consolidated balance sheets and is adjusted to fair value at each measurement date. The changes in fair value are recognized in the accompanying unaudited condensed consolidated statements of income in the current period. The Company does not engage in speculative transactions nor does it hold or issue financial instruments for trading purposes. The U.S. dollar equivalent notional amount of outstanding foreign currency exchange contracts was $8.6 million during the nine-month period ended September 30, 2020. The Company reported $0.4 million of derivative liabilities in other current liabilities at September 30, 2020. At December 31, 2019, the Company reported $4 thousand of derivative assets in other current assets and $49 thousand of derivative liabilities in other current liabilities.The Company recognized, as a component of cost of sales, a net loss of $0.4 million and a net gain of $0.4 million on the changes in fair value of derivative financial instruments in the three-month periods ended September 30, 2020 and 2019, respectively. The Company recognized, as a component of cost of sales, net gain of $0.7 million and net gain of $0.4 million on the changes in fair value of derivative financial instruments in the nine-month periods ended September 30, 2020 and 2019, respectively. There were no derivatives that were designated as hedges at September 30, 2020. |
Restructuring and Asset Impairm
Restructuring and Asset Impairment Charges | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring, Settlement and Impairment Provisions [Abstract] | |
Restructuring and Asset Impairment Charges | Restructuring and Asset Impairment Charges In late 2019, the Company began the process of restructuring and right-sizing in conjunction with its overall strategic transformation. Restructuring and asset impairment charges for the three and nine-month periods ended September 30, 2020 are presented below ( in thousands ): Three Months Ended Nine Months Ended Impairment (recovery) of Company planes and costs associated with repairs $ (272) $ 2,340 Goodwill impairment related to mobile asphalt equipment operations — 1,646 Closing operations at the Mequon site and moving operations - principally severance 418 1,807 Exiting the oil and gas business at the Enid site 232 483 Severance pay associated with workforce reductions at multiple sites 2,115 3,327 Closing operations at the Albuquerque site, moving operations and sale of land and building (296) 797 Final stages of closing AMM operations in Germany 7 292 Abandoned projects and other restructuring charges 213 430 Restructuring and asset impairment charges $ 2,417 $ 11,122 Restructuring and asset impairment charges for the three and nine months ended September 30, 2019 were $0.9 million and $1.4 million, respectively. The $0.9 million of restructuring charges for the three months ended September 30, 2019 are comprised of $0.4 million of costs related to the closing of AMM and $0.5 million of costs related to the exiting of the wood pellet plant line of business (primarily employee severance pay). The $1.4 million of restructuring charges for the nine months ended September 30, 2019 are comprised of $0.9 million of costs related to the closing of AMM and $0.5 million of costs related to the exiting of the wood pellet plant line of business (primarily employee severance pay). Restructuring charges accrued, but not paid, were not significant as of September 30, 2020 and December 31, 2019. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On October 5, 2020, the Company closed a transaction with BAUER Equipment America, Inc. This transaction was for the sale of water well assets of the Company's Enid business unit, which included equipment, inventories and intangible assets. The purchase price for this transaction was approximately $7.5 million. No gain or loss occurred upon consummation. On November 2, 2020, the Company closed a transaction pursuant to which it purchased certain assets of Grathwol Automation, LLC ("Grathwol"). Grathwol is engaged in the business of developing and providing advanced telematics and remote diagnostics for construction equipment and related products and services. The Company has not yet completed their business combination purchase price analysis. The Company expects goodwill, if any, to be nondeductible for income tax purposes. The results of operations will be included from the date of acquisition. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X promulgated under the Securities Exchange Act of 1934. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. U.S. GAAP requires us to make estimates based on assumptions about current and, for some estimates, future economic and market conditions which affect reported amounts and related disclosures in our financial statements. Although our current estimates contemplate current and expected future conditions, as applicable, it is reasonably possible that actual conditions could differ from our expectations, which could materially affect our results of operations and financial position. In particular, a number of estimates have been and will continue to be affected by the ongoing novel coronavirus pandemic (“COVID-19”). The severity, magnitude and duration, as well as the economic consequences of COVID-19, are uncertain, rapidly changing and difficult to predict. As a result, our accounting estimates and assumptions may change over time in response to COVID-19. Such changes could result in future impairments of goodwill, intangibles, long-lived assets and investment securities and incremental credit losses on receivables, among other issues. Operating results for the three and nine-month periods ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. It is suggested that these unaudited condensed consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Astec Industries, Inc. Annual Report on Form 10-K for the year ended December 31, 2019. The unaudited condensed consolidated balance sheet as of December 31, 2019 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The Company's sales and profit results were impacted in the third quarter of September 30, 2020 due mainly to COVID-19. Determining the extent of variances and fluctuations from COVID-19 has been difficult because there have been no easily discernible trends or patterns to the Company's business. However, the Company expects that its results of operations in the fourth quarter of 2020 may reflect an increase in the severity of the impact of the effects of COVID-19, as well as negative impacts to subsequent periods. The Company continues to monitor the effects of COVID-19 on its reported sales and profit results and has taken steps to ensure employee and visitor safety, adequate liquidity and business continuity during this pandemic. Certain reclassifications in amounts previously reported have been made to conform to current presentation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements 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 requires 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 adopted the new standard as of January 1, 2020. As the Company’s credit losses are typically minimal, the adoption of this new standard did not have a significant impact on the Company's financial position, results of operations or cash flows and no cumulative adjustment to retained earnings was necessary. In February 2018, the FASB issued ASU No. 2018-02 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 adopted this new standard effective January 1, 2020. The adoption of this new standard did not have a material impact on its financial position, results of operations, cash flows or disclosures. In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes”, which eliminates certain exceptions related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The new standard is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years with early adoption permitted in interim or annual periods if the Company has not yet issued financial statements. If the Company elects to early adopt the amendments in an interim period, it should reflect any adjustments as of the beginning of the annual period that includes the interim period and must adopt all amendments in the same period applying all guidance prospectively, except for certain amendments. The Company has not determined the impact of the statement’s provision on its financial position, results of operations or cash flows. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848)”, which provides optional guidance for a limited period of time to ease the potential burden in accounting (or the recognizing the effects of) reference rate reform on financial reporting. This was in response to stakeholders raising certain operational challenges likely to arise in accounting for contract modifications and hedge accounting because of reference rate reform. Some of those challenges relate to the significant volume of contracts and other arrangements, such as debt agreements, lease agreements, and derivative instruments, which will be modified to replace references to discontinued rates with references to replacement rates. For accounting purposes, such contract modifications are required to be evaluated in determining whether the modifications result in the establishment of new contracts or the continuation of existing contracts. Stakeholders indicated that due to the significant volume of affected contracts and other arrangements, together with a compressed time frame for making contract modifications, the application of existing accounting standards on assessing modifications versus extinguishments could be costly and burdensome. In addition, stakeholders indicated that financial reporting results should reflect the intended continuation of such contracts and arrangements during the period of the market-wide transition to alternative reference rates. This new standard is effective for annual and interim periods beginning after December 31, 2022. The Company has yet to determine what effects, if any, this will have on their debt instrument. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Earnings Per Share | The following table sets forth net income attributable to controlling interest and the number of basic and diluted shares used in the computation of earnings per share: Three Months Ended Nine Months Ended (in thousands, except per share amounts) 2020 2019 2020 2019 Numerator: Net income attributable to controlling interest $ 1,648 $ 3,010 $ 31,550 $ 40,662 Denominator: Denominator for basic earnings per share 22,615 22,523 22,593 22,510 Effect of dilutive securities: Restricted stock units 287 112 198 107 Supplemental Executive Retirement Plan 44 49 47 49 Denominator for diluted earnings per share 22,946 22,684 22,838 22,666 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | Inventories consist of the following: (in thousands) September 30, 2020 December 31, 2019 Raw materials and parts $ 163,241 $ 160,872 Work-in-process 56,437 61,287 Finished goods 36,377 53,650 Used equipment 5,426 18,727 Total $ 261,481 $ 294,536 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The Company reevaluates the volume of trading activity for each of its investments at the end of each quarter and adjusts the level within the fair value hierarchy as needed. As indicated in the tables below (which excludes the Company’s pension assets), the Company has determined that all of its financial assets and liabilities as of September 30, 2020 and December 31, 2019 are Level 1 and Level 2 in the fair value hierarchy as defined above: September 30, 2020 (in thousands) Level 1 Level 2 Total Financial Assets: Trading equity securities: SERP money market fund $ 387 $ — $ 387 SERP mutual funds 3,988 — 3,988 Preferred stocks 284 — 284 Trading debt securities: Corporate bonds 4,972 — 4,972 Municipal bonds — 1,141 1,141 Floating rate notes 376 — 376 U.S. government securities 1,771 — 1,771 Asset backed securities — 2,236 2,236 Other 200 2,746 2,946 Total financial assets $ 11,978 $ 6,123 $ 18,101 Financial Liabilities: Derivative financial instruments $ — $ 402 $ 402 SERP liabilities — 6,721 6,721 Total financial liabilities $ — $ 7,123 $ 7,123 December 31, 2019 (in thousands) Level 1 Level 2 Total Financial Assets: Trading equity securities: SERP money market fund $ 208 $ — $ 208 SERP mutual funds 4,419 — 4,419 Preferred stocks 282 — 282 Trading debt securities: Corporate bonds 5,117 — 5,117 Municipal bonds — 1,154 1,154 Floating rate notes 535 — 535 U.S. government securities 2,035 — 2,035 Asset backed securities — 2,316 2,316 Other 473 1,112 1,585 Derivative financial instruments — 4 4 Total financial assets $ 13,069 $ 4,586 $ 17,655 Financial Liabilities: Derivative financial instruments $ — $ 49 $ 49 SERP liabilities — 6,645 6,645 Total financial liabilities $ — $ 6,694 $ 6,694 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary allocations of the total purchase price: (in thousands) Amount Cash $ 69 Accounts receivable 2,282 Inventories 8,128 Other assets 6,635 Intangible assets 3,879 Total assets acquired 20,993 Accounts payable and other (4,316) Advance customer deposits (2,839) Total liabilities assumed (7,155) Total purchase price $ 13,838 (in thousands) Amount Cash $ 1,217 Accounts receivable 4,176 Inventories 1,986 Goodwill 5,258 Other assets 6,020 Intangible assets 6,822 Total assets acquired 25,479 Total liabilities assumed (9,779) Total purchase price $ 15,700 |
Product Warranty Reserves (Tabl
Product Warranty Reserves (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Product Warranty Liability | Changes in the Company’s product warranty liability for the three and nine-month periods ended September 30, 2020 and 2019 are as follows: Three Months Ended Nine Months Ended (in thousands) 2020 2019 2020 2019 Reserve balance, beginning of the period $ 10,691 $ 10,117 $ 10,261 $ 10,928 Warranty liabilities accrued 1,957 2,524 7,094 7,020 Warranty liabilities settled (2,790) (2,717) (7,328) (8,004) Other 654 68 485 48 Reserve balance, end of the period $ 10,512 $ 9,992 $ 10,512 $ 9,992 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Lease, Cost | Other information concerning the Company’s operating leases accounted for under leasing guidelines and the related expense, assets and liabilities follow: Three Months Ended (in thousands) September 30, 2020 September 30, 2019 Operating lease expense $ 608 $ 657 Cash paid for operating leases included in operating cash flows 655 697 Nine Months Ended (in thousands) September 30, 2020 September 30, 2019 Operating lease expense $ 1,773 $ 1,907 Cash paid for operating leases included in operating cash flows 1,889 2,037 |
Assets and Liabilities | (in thousands) September 30, 2020 December 31, 2019 Operating lease right-of-use asset $ 6,568 $ 3,853 Operating lease short-term liability included in other current liabilities 2,043 1,846 Operating lease long-term liability included in other long-term liabilities 4,511 2,020 Weighted average remaining lease term (in years) 6.54 4.66 Weighted average discount rate used in calculating right-of-use asset 3.72 % 3.56 % |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables disaggregate our revenue by major source for the three and nine-month periods ended September 30, 2020 and 2019 (excluding intercompany sales): Three Months Ended September 30, 2020 (in thousands) Infrastructure Materials Total Net Sales-Domestic: Equipment sales $ 73,594 $ 32,806 $ 106,400 Parts and component sales 39,641 18,560 58,201 Service and equipment installation revenue 4,920 322 5,242 Used equipment sales 3,358 290 3,648 Freight revenue 5,198 1,273 6,471 Other 1,665 (331) 1,334 Total domestic revenue 128,376 52,920 181,296 Net Sales-International: Equipment sales 13,620 17,316 30,936 Parts and component sales 7,136 8,788 15,924 Service and equipment installation revenue 568 140 708 Used equipment sales 924 678 1,602 Freight revenue 331 418 749 Other 141 48 189 Total international revenue 22,720 27,388 50,108 Total net sales $ 151,096 $ 80,308 $ 231,404 Nine Months Ended September 30, 2020 (in thousands) Infrastructure Materials Total Net Sales-Domestic: Equipment sales $ 278,653 $ 117,346 $ 395,999 Parts and component sales 128,142 54,775 182,917 Service and equipment installation revenue 17,863 1,147 19,010 Used equipment sales 17,666 703 18,369 Freight revenue 15,824 3,995 19,819 Other 1,535 (952) 583 Total domestic revenue 459,683 177,014 636,697 Net Sales-International: Equipment sales 48,609 44,192 92,801 Parts and component sales 21,372 24,934 46,306 Service and equipment installation revenue 2,078 855 2,933 Used equipment sales 2,344 1,709 4,053 Freight revenue 1,275 1,007 2,282 Other 204 275 479 Total international revenue 75,882 72,972 148,854 Total net sales $ 535,565 $ 249,986 $ 785,551 Three Months Ended September 30, 2019 (in thousands) Infrastructure Materials Total Net Sales-Domestic: Equipment sales $ 87,478 $ 32,569 $ 120,047 Pellet plant sales — — — Parts and component sales 35,170 19,592 54,762 Service and equipment installation revenue 3,893 2,399 6,292 Used equipment sales 2,374 232 2,606 Freight revenue 4,539 1,603 6,142 Other 458 (524) (66) Total domestic revenue 133,912 55,871 189,783 Net Sales-International: Equipment sales 14,605 28,988 43,593 Parts and component sales 5,491 12,792 18,283 Service and equipment installation revenue 1,376 183 1,559 Used equipment sales 520 1,116 1,636 Freight revenue 125 633 758 Other 161 34 195 Total international revenue 22,278 43,746 66,024 Total net sales $ 156,190 $ 99,617 $ 255,807 Nine Months Ended September 30, 2019 (in thousands) Infrastructure Materials Total Net Sales-Domestic: Equipment sales $ 312,906 $ 134,660 $ 447,566 Pellet plant sales 20,000 — 20,000 Parts and component sales 125,530 57,673 183,203 Service and equipment installation revenue 15,102 5,456 20,558 Used equipment sales 8,527 645 9,172 Freight revenue 14,646 4,999 19,645 Other 1,187 (2,506) (1,319) Total domestic revenue 497,898 200,927 698,825 Net Sales-International: Equipment sales 46,454 72,453 118,907 Parts and component sales 22,117 34,408 56,525 Service and equipment installation revenue 4,861 883 5,744 Used equipment sales 821 1,953 2,774 Freight revenue 1,044 2,064 3,108 Other 209 297 506 Total international revenue 75,506 112,058 187,564 Total net sales $ 573,404 $ 312,985 $ 886,389 |
Revenue from External Customers by Geographic Areas | Sales into major geographic regions were as follows: Three Months Ended Nine Months Ended (in thousands) 2020 2019 2020 2019 United States $ 181,296 $ 189,783 $ 636,697 $ 698,825 Canada 12,089 19,157 39,749 56,170 Australia 6,809 10,067 18,144 26,037 Africa 7,141 11,491 17,939 27,408 South America 11,499 7,274 31,460 21,908 Europe 7,623 11,840 21,829 31,312 Central America 284 (114) 2,591 6,038 China, Japan & Korea 2,168 1,244 6,215 3,824 Asia (excl. China, Japan & Korea) 306 1,413 1,900 6,360 West Indies 1,140 4,084 5,952 5,651 Middle East 1,049 397 3,064 2,173 Other — (829) 11 683 Total foreign 50,108 66,024 148,854 187,564 Total consolidated sales $ 231,404 $ 255,807 $ 785,551 $ 886,389 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. Intersegment sales and transfers are valued at prices comparable to those for unrelated parties. Segment Information: Three Months Ended September 30, 2020 (in thousands) Infrastructure Solutions Materials Solutions Corporate Total Net sales to external customers $ 151,096 $ 80,308 $ — $ 231,404 Intersegment sales 6,695 11,671 — 18,366 Gross profit 29,645 20,692 100 50,437 Gross profit percent 19.6 % 25.8 % — % 21.8 % Segment profit (loss) $ 6,266 $ 7,205 $ (11,712) $ 1,759 Nine Months Ended September 30, 2020 (in thousands) Infrastructure Solutions Materials Solutions Corporate Total Net sales to external customers $ 535,565 $ 249,986 $ — $ 785,551 Intersegment sales 24,976 26,767 — 51,743 Gross profit 120,857 62,911 305 184,073 Gross profit percent 22.6 % 25.2 % — % 23.4 % Segment profit (loss) $ 37,701 $ 21,709 $ (28,240) $ 31,170 Three Months Ended September 30, 2019 (in thousands) Infrastructure Materials Corporate Total Net sales to external customers $ 156,190 $ 99,617 $ — $ 255,807 Intersegment sales 6,385 4,842 — 11,227 Gross profit 30,952 20,837 71 51,860 Gross profit percent 19.8 % 20.9 % — % 20.3 % Segment profit (loss) $ 3,889 $ 5,803 $ (6,947) $ 2,745 Nine Months Ended September 30, 2019 (in thousands) Infrastructure Solutions Materials Solutions Corporate Total Net sales to external customers $ 573,404 $ 312,985 $ — $ 886,389 Intersegment sales 22,421 15,381 — 37,802 Gross profit 140,004 71,876 147 212,027 Gross profit percent 24.4 % 23.0 % — % 23.9 % Segment profit (loss) $ 48,885 $ 22,969 $ (32,418) $ 39,436 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | A reconciliation of total segment profit to the Company’s consolidated totals is as follows: Three Months Ended Nine Months Ended (in thousands) 2020 2019 2020 2019 Total profit shown above $ 1,759 $ 2,745 $ 31,170 $ 39,436 Recapture (elimination) of intersegment profit (72) 210 305 1,099 Net income 1,687 2,955 31,475 40,535 Net (income) loss attributable to non-controlling interest in subsidiaries (39) 55 75 127 Net income attributable to controlling interest $ 1,648 $ 3,010 $ 31,550 $ 40,662 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Unvested Restricted Stock Units Roll Forward | The following table presents the stock plan activity for the nine months ended September 30, 2020 for RSUs: 2020 Units Weighted Average Grant Date Fair Value Outstanding January 1, 200,811 $ 41.52 Granted 95,821 29.16 Vested (10,563) 30.18 Forfeited (7,277) 43.88 Outstanding, September 30, 278,792 $ 37.64 The following table presents the stock plan activity for the nine months ended September 30, 2020 for PSUs: 2020 Units Weighted Average Grant Date Fair Value Outstanding January 1, — $ — Granted 95,796 35.32 Vested (1,298) 34.66 Forfeited (740) 34.66 Outstanding, September 30, 93,758 $ 35.34 |
Other Income, Net of Expenses (
Other Income, Net of Expenses (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income (Expense) | Other income, net of expenses for the three and nine-month periods ended September 30, 2020 and 2019 are presented below: Three Months Ended Nine Months Ended (in thousands) 2020 2019 2020 2019 Interest income $ 195 $ 369 $ 613 $ 938 Gain on investments (29) 17 78 215 Other 1,183 26 1,326 99 Total $ 1,349 $ 412 $ 2,017 $ 1,252 |
Restructuring and Related Activ
Restructuring and Related Activities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | Restructuring and asset impairment charges for the three and nine-month periods ended September 30, 2020 are presented below ( in thousands ): Three Months Ended Nine Months Ended Impairment (recovery) of Company planes and costs associated with repairs $ (272) $ 2,340 Goodwill impairment related to mobile asphalt equipment operations — 1,646 Closing operations at the Mequon site and moving operations - principally severance 418 1,807 Exiting the oil and gas business at the Enid site 232 483 Severance pay associated with workforce reductions at multiple sites 2,115 3,327 Closing operations at the Albuquerque site, moving operations and sale of land and building (296) 797 Final stages of closing AMM operations in Germany 7 292 Abandoned projects and other restructuring charges 213 430 Restructuring and asset impairment charges $ 2,417 $ 11,122 |
Significant Accounting Polici_3
Significant Accounting Policies (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201802Member | us-gaap:AccountingStandardsUpdate201802Member |
Accumulated Other Comprehensive Loss | Cumulative Effect, Period of Adoption, Adjustment | ||
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ||
Reclassification of stranded tax effects related to TCJA | $ 0.7 | |
Retained Earnings | Cumulative Effect, Period of Adoption, Adjustment | ||
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ||
Reclassification of stranded tax effects related to TCJA | $ 0.7 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Numerator: | ||||
Net income attributable to controlling interest | $ 1,648 | $ 3,010 | $ 31,550 | $ 40,662 |
Denominator: | ||||
Denominator for basic earnings per share (in shares) | 22,615 | 22,523 | 22,593 | 22,510 |
Effect of dilutive securities: | ||||
Restricted stock units (in shares) | 287 | 112 | 198 | 107 |
Supplemental executive retirement plan (in shares) | 44 | 49 | 47 | 49 |
Denominator for diluted earnings per share (in shares) | 22,946 | 22,684 | 22,838 | 22,666 |
Trade Receivables and Contrac_2
Trade Receivables and Contract Assets, net (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
Allowance for credit loss | $ 2 | $ 1.4 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials and parts | $ 163,241 | $ 160,872 |
Work-in-process | 56,437 | 61,287 |
Finished goods | 36,377 | 53,650 |
Used equipment | 5,426 | 18,727 |
Total | $ 261,481 | $ 294,536 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Abstract] | ||
Accumulated depreciation | $ 269.7 | $ 267.7 |
Fair Value Measurements Schedul
Fair Value Measurements Schedule of Fair Value, Assets and Liabilities Measure on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financial Liabilities: | ||
Derivative financial instruments | $ 400 | |
Fair Value, Recurring | ||
Financial Assets: | ||
Derivative assets | $ 4 | |
Total financial assets | 18,101 | 17,655 |
Financial Liabilities: | ||
Derivative financial instruments | 402 | 49 |
SERP liabilities | 6,721 | 6,645 |
Total financial liabilities | 7,123 | 6,694 |
Fair Value, Recurring | Corporate bonds | ||
Financial Assets: | ||
Trading debt securities | 4,972 | 5,117 |
Fair Value, Recurring | Municipal bonds | ||
Financial Assets: | ||
Trading debt securities | 1,141 | 1,154 |
Fair Value, Recurring | Floating rate notes | ||
Financial Assets: | ||
Trading debt securities | 376 | 535 |
Fair Value, Recurring | U.S. government securities | ||
Financial Assets: | ||
Trading debt securities | 1,771 | 2,035 |
Fair Value, Recurring | Asset backed securities | ||
Financial Assets: | ||
Trading debt securities | 2,236 | 2,316 |
Fair Value, Recurring | Other | ||
Financial Assets: | ||
Trading debt securities | 2,946 | 1,585 |
Fair Value, Recurring | Preferred stocks | ||
Financial Assets: | ||
Trading equity securities | 284 | 282 |
Fair Value, Recurring | Supplemental Employee Retirement Plan | Money Market Funds | ||
Financial Assets: | ||
Trading equity securities | 387 | 208 |
Fair Value, Recurring | Supplemental Employee Retirement Plan | Mutual Fund | ||
Financial Assets: | ||
Trading equity securities | 3,988 | 4,419 |
Fair Value, Recurring | Level 1 | ||
Financial Assets: | ||
Derivative assets | 0 | |
Total financial assets | 11,978 | 13,069 |
Financial Liabilities: | ||
Derivative financial instruments | 0 | 0 |
SERP liabilities | 0 | 0 |
Total financial liabilities | 0 | 0 |
Fair Value, Recurring | Level 1 | Corporate bonds | ||
Financial Assets: | ||
Trading debt securities | 4,972 | 5,117 |
Fair Value, Recurring | Level 1 | Municipal bonds | ||
Financial Assets: | ||
Trading debt securities | 0 | 0 |
Fair Value, Recurring | Level 1 | Floating rate notes | ||
Financial Assets: | ||
Trading debt securities | 376 | 535 |
Fair Value, Recurring | Level 1 | U.S. government securities | ||
Financial Assets: | ||
Trading debt securities | 1,771 | 2,035 |
Fair Value, Recurring | Level 1 | Asset backed securities | ||
Financial Assets: | ||
Trading debt securities | 0 | 0 |
Fair Value, Recurring | Level 1 | Other | ||
Financial Assets: | ||
Trading debt securities | 200 | 473 |
Fair Value, Recurring | Level 1 | Preferred stocks | ||
Financial Assets: | ||
Trading equity securities | 284 | 282 |
Fair Value, Recurring | Level 1 | Supplemental Employee Retirement Plan | Money Market Funds | ||
Financial Assets: | ||
Trading equity securities | 387 | 208 |
Fair Value, Recurring | Level 1 | Supplemental Employee Retirement Plan | Mutual Fund | ||
Financial Assets: | ||
Trading equity securities | 3,988 | 4,419 |
Fair Value, Recurring | Level 2 | ||
Financial Assets: | ||
Derivative assets | 4 | |
Total financial assets | 6,123 | 4,586 |
Financial Liabilities: | ||
Derivative financial instruments | 402 | 49 |
SERP liabilities | 6,721 | 6,645 |
Total financial liabilities | 7,123 | 6,694 |
Fair Value, Recurring | Level 2 | Corporate bonds | ||
Financial Assets: | ||
Trading debt securities | 0 | 0 |
Fair Value, Recurring | Level 2 | Municipal bonds | ||
Financial Assets: | ||
Trading debt securities | 1,141 | 1,154 |
Fair Value, Recurring | Level 2 | Floating rate notes | ||
Financial Assets: | ||
Trading debt securities | 0 | 0 |
Fair Value, Recurring | Level 2 | U.S. government securities | ||
Financial Assets: | ||
Trading debt securities | 0 | 0 |
Fair Value, Recurring | Level 2 | Asset backed securities | ||
Financial Assets: | ||
Trading debt securities | 2,236 | 2,316 |
Fair Value, Recurring | Level 2 | Other | ||
Financial Assets: | ||
Trading debt securities | 2,746 | 1,112 |
Fair Value, Recurring | Level 2 | Preferred stocks | ||
Financial Assets: | ||
Trading equity securities | 0 | 0 |
Fair Value, Recurring | Level 2 | Supplemental Employee Retirement Plan | Money Market Funds | ||
Financial Assets: | ||
Trading equity securities | 0 | 0 |
Fair Value, Recurring | Level 2 | Supplemental Employee Retirement Plan | Mutual Fund | ||
Financial Assets: | ||
Trading equity securities | $ 0 | $ 0 |
Fair Value Measurements Narrati
Fair Value Measurements Narrative (Details) $ in Millions | Sep. 30, 2020USD ($) |
Fair Value, Recurring | Money Market Funds | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash and cash equivalents | $ 85.1 |
Goodwill (Details)
Goodwill (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill impairment charges | $ 0 | $ 1,600,000 | |
Goodwill | $ 36,410,000 | $ 36,410,000 | $ 33,176,000 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Thousands | Aug. 03, 2020 | Jul. 20, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 36,410 | $ 33,176 | ||
Con-e-Co | ||||
Business Acquisition [Line Items] | ||||
Consideration transferred | $ 13,800 | |||
Intangible assets | $ 3,879 | |||
Con-e-Co | Customer Relationships | ||||
Business Acquisition [Line Items] | ||||
Acquired finite-lived intangible assets, weighted average useful life | 8 years | |||
Con-e-Co | Trade Names | ||||
Business Acquisition [Line Items] | ||||
Acquired finite-lived intangible assets, weighted average useful life | 15 years | |||
BMH Systems | ||||
Business Acquisition [Line Items] | ||||
Consideration transferred | $ 15,700 | |||
Intangible assets | 6,822 | |||
Goodwill | $ 5,258 | |||
BMH Systems | Customer Relationships | ||||
Business Acquisition [Line Items] | ||||
Acquired finite-lived intangible assets, weighted average useful life | 9 years | |||
BMH Systems | Trade Names | ||||
Business Acquisition [Line Items] | ||||
Acquired finite-lived intangible assets, weighted average useful life | 15 years |
Acquisitions - Con-e-Co Purchas
Acquisitions - Con-e-Co Purchase Price Allocation (Details) - Con-e-Co $ in Thousands | Jul. 20, 2020USD ($) |
Business Acquisition [Line Items] | |
Cash | $ 69 |
Accounts receivable | 2,282 |
Inventories | 8,128 |
Other assets | 6,635 |
Intangible assets | 3,879 |
Total assets acquired | 20,993 |
Accounts payable and other | (4,316) |
Advance customer deposits | (2,839) |
Total liabilities assumed | (7,155) |
Total purchase price | $ 13,838 |
Acquisitions - BMH Systems Purc
Acquisitions - BMH Systems Purchase Price Allocation (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Aug. 03, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | |||
Goodwill | $ 36,410 | $ 33,176 | |
BMH Systems | |||
Business Acquisition [Line Items] | |||
Cash | $ 1,217 | ||
Accounts receivable | 4,176 | ||
Inventories | 1,986 | ||
Goodwill | 5,258 | ||
Other assets | 6,020 | ||
Intangible assets | 6,822 | ||
Total assets acquired | 25,479 | ||
Total liabilities assumed | (9,779) | ||
Total purchase price | $ 15,700 |
Debt (Details)
Debt (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Feb. 01, 2019 | |
Debt [Abstract] | ||||
Current maturities of long-term debt | $ 147,000 | $ 147,000 | $ 209,000 | |
Long-term debt | 380,000 | 380,000 | 690,000 | |
Short-term debt | 404,000 | 404,000 | 1,130,000 | |
Maximum | ||||
Line of Credit Facility [Abstract] | ||||
Amount of letters of credit outstanding | 11,000,000 | 11,000,000 | ||
Osborn | ||||
Line of Credit Facility [Abstract] | ||||
Line of credit facility, maximum borrowing capacity | 5,600,000 | 5,600,000 | ||
Borrowings outstanding | $ 0 | 0 | ||
Unused facility fee as a percentage of line of credit | 0.75% | |||
Performance bank guarantee, subsidiary obligation to fulfill contracts | $ 800,000 | 800,000 | ||
Under utilized facility resulting in unused facility fee | 50.00% | |||
Line of credit facility, remaining borrowing capacity | $ 4,800,000 | $ 4,800,000 | ||
Debt instrument, basis spread on variable rate | 0.25% | |||
Astec Brazil | ||||
Line of Credit Facility [Abstract] | ||||
Debt instrument, maturity date | Sep. 30, 2020 | |||
Debt [Abstract] | ||||
Short-term debt | 400,000 | $ 400,000 | 1,100,000 | |
Astec Brazil Working Capital Loans | ||||
Line of Credit Facility [Abstract] | ||||
Debt instrument, maturity date | Apr. 30, 2024 | |||
Debt [Abstract] | ||||
Loans payable | $ 500,000 | $ 500,000 | 900,000 | |
Debt instrument, interest rate | 10.40% | 10.40% | ||
Astec Brazil Working Capital Loans and Equipment Financing | ||||
Debt [Abstract] | ||||
Current maturities of long-term debt | $ 100,000 | $ 100,000 | 200,000 | |
Long-term debt | 400,000 | 400,000 | 700,000 | |
Telestack | ||||
Line of Credit Facility [Abstract] | ||||
Line of credit facility, maximum borrowing capacity | 3,100,000 | 3,100,000 | ||
Line of credit facility, future decrease | 300,000 | 300,000 | ||
Debt [Abstract] | ||||
Short-term debt | 1,300,000 | 1,300,000 | 1,200,000 | |
Astec Australia | ||||
Line of Credit Facility [Abstract] | ||||
Line of credit facility, maximum borrowing capacity | 2,500,000 | 2,500,000 | ||
Borrowings outstanding | 0 | 0 | ||
Performance bank guarantee, subsidiary obligation to fulfill contracts | 300,000 | 300,000 | ||
Current borrowing capacity | 1,600,000 | 1,600,000 | ||
St. Bruno | ||||
Line of Credit Facility [Abstract] | ||||
Borrowings outstanding | 1,100,000 | 1,100,000 | ||
Debt [Abstract] | ||||
Loans payable | 300,000 | 300,000 | ||
Wells Fargo | ||||
Line of Credit Facility [Abstract] | ||||
Line of credit facility, maximum borrowing capacity | $ 150,000,000 | |||
Borrowings outstanding | 0 | 0 | $ 0 | |
Amount of letters of credit outstanding | 8,600,000 | 8,600,000 | ||
Line of credit, additional borrowing capacity | 141,400,000 | $ 141,400,000 | ||
Debt [Abstract] | ||||
Line of credit facility, expiration date | Dec. 29, 2023 | |||
Wells Fargo | Maximum | ||||
Line of Credit Facility [Abstract] | ||||
Sub-limit for letters of credit | $ 30,000,000 | |||
Wells Fargo | Astec Brazil Working Capital Loans | ||||
Line of Credit Facility [Abstract] | ||||
Contingent liabilities for letters of credit issued on behalf of foreign subsidiaries | $ 3,200,000 | $ 3,200,000 | ||
Wells Fargo | London Interbank Offered Rate (LIBOR) | ||||
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% | |||
Wells Fargo | London Interbank Offered Rate (LIBOR) | Astec Australia | ||||
Line of Credit Facility [Abstract] | ||||
Unused facility fee as a percentage of line of credit | 1.35% | |||
Wells Fargo | Prime Rate | St. Bruno | ||||
Line of Credit Facility [Abstract] | ||||
Debt instrument, basis spread on variable rate | 0.80% |
Product Warranty Reserves (Deta
Product Warranty Reserves (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||||
Reserve balance, beginning of the period | $ 10,691 | $ 10,117 | $ 10,261 | $ 10,928 |
Warranty liabilities accrued | 1,957 | 2,524 | 7,094 | 7,020 |
Warranty liabilities settled | (2,790) | (2,717) | (7,328) | (8,004) |
Other | 654 | 68 | 485 | 48 |
Reserve balance, end of the period | $ 10,512 | $ 9,992 | $ 10,512 | $ 9,992 |
Minimum | ||||
Standard Product Warranty Disclosure [Abstract] | ||||
Standard Product Warranty Description | three months | |||
Maximum | ||||
Standard Product Warranty Disclosure [Abstract] | ||||
Standard Product Warranty Description | two years |
Accrued Loss Reserves (Details)
Accrued Loss Reserves (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Accrued Loss Reserves [Abstract] | ||
Liability for claims and claims adjustment expense | $ 7 | $ 6.8 |
Self insurance reserve, noncurrent | $ 4.6 | $ 4.5 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Jan. 01, 2019 | |
Lease, Cost [Abstract] | ||||||
Operating lease expense | $ 608 | $ 657 | $ 1,773 | $ 1,907 | ||
Cash paid for operating leases included in operating cash flows | 655 | $ 697 | 1,889 | $ 2,037 | ||
Assets and Liabilities, Lessee [Abstract] | ||||||
Operating lease right-of-use asset | $ 6,568 | $ 6,568 | $ 3,853 | |||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent | us-gaap:OtherLiabilitiesCurrent | ||||
Operating lease short-term liability included in other current liabilities | $ 2,043 | $ 2,043 | 1,846 | |||
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent | ||||
Operating lease long-term liability included in other long-term liabilities | $ 4,511 | $ 4,511 | $ 2,020 | |||
Weighted average remaining lease term (in years) | 6 years 6 months 14 days | 6 years 6 months 14 days | 4 years 7 months 28 days | |||
Weighted average discount rate used in calculating right-of-use asset | 3.72% | 3.72% | 3.56% | |||
Cumulative Effect, Period of Adoption, Adjustment | ||||||
Assets and Liabilities, Lessee [Abstract] | ||||||
Operating lease right-of-use asset | $ 5,000 | |||||
Minimum | ||||||
Lessee, Operating Lease, Description [Abstract] | ||||||
Secured borrowing term | 1 year | |||||
Maximum | ||||||
Lessee, Operating Lease, Description [Abstract] | ||||||
Secured borrowing term | 20 years |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||||||
Effective income tax rate reconciliation, percent | 279.10% | (17.60%) | 16.80% | (22.00%) | (21.00%) | (35.00%) |
Liability for uncertain tax positions increased | $ 1,500 | |||||
Income tax (expense) benefit, continuing operations, government grants | 9,500 | |||||
Effective income tax rate reconciliation, tax credit, research, amount | $ 1,400 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Disaggregation of Revenue [Abstract] | |||||
Net sales | $ 231,404 | $ 255,807 | $ 785,551 | $ 886,389 | |
Contract assets | 1,300 | 1,300 | $ 4,700 | ||
Contract liabilities | 7,100 | 7,100 | 6,500 | ||
Extended Warranty Revenue | |||||
Disaggregation of Revenue [Abstract] | |||||
Deferred revenue | 3,700 | 3,700 | 3,500 | ||
United States | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 181,296 | 189,783 | 636,697 | 698,825 | |
United States | Equipment sales | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 106,400 | 120,047 | 395,999 | 447,566 | |
United States | Pellet plant sales | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 0 | 20,000 | |||
United States | Parts and component sales | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 58,201 | 54,762 | 182,917 | 183,203 | |
United States | Service and equipment installation revenue | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 5,242 | 6,292 | 19,010 | 20,558 | |
United States | Used equipment sales | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 3,648 | 2,606 | 18,369 | 9,172 | |
United States | Freight revenue | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 6,471 | 6,142 | 19,819 | 19,645 | |
United States | Other | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 1,334 | (66) | 583 | (1,319) | |
Canada | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 12,089 | 19,157 | 39,749 | 56,170 | |
Australia | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 6,809 | 10,067 | 18,144 | 26,037 | |
Africa | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 7,141 | 11,491 | 17,939 | 27,408 | |
South America | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 11,499 | 7,274 | 31,460 | 21,908 | |
Europe | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 7,623 | 11,840 | 21,829 | 31,312 | |
Central America | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 284 | (114) | 2,591 | 6,038 | |
International | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 50,108 | 66,024 | 148,854 | 187,564 | |
International | Equipment sales | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 30,936 | 43,593 | 92,801 | 118,907 | |
International | Parts and component sales | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 15,924 | 18,283 | 46,306 | 56,525 | |
International | Service and equipment installation revenue | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 708 | 1,559 | 2,933 | 5,744 | |
International | Used equipment sales | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 1,602 | 1,636 | 4,053 | 2,774 | |
International | Freight revenue | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 749 | 758 | 2,282 | 3,108 | |
International | Other | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 189 | 195 | 479 | 506 | |
China, Japan & Korea | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 2,168 | 1,244 | 6,215 | 3,824 | |
Asia (excl. China, Japan & Korea) | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 306 | 1,413 | 1,900 | 6,360 | |
West Indies | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 1,140 | 4,084 | 5,952 | 5,651 | |
Middle East | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 1,049 | 397 | 3,064 | 2,173 | |
Other | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 0 | (829) | 11 | 683 | |
Total foreign | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 50,108 | 66,024 | 148,854 | 187,564 | |
Infrastructure Solutions | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 151,096 | 156,190 | 535,565 | 573,404 | |
Infrastructure Solutions | One Large Order | |||||
Disaggregation of Revenue [Abstract] | |||||
Contract assets | $ 7,200 | ||||
Infrastructure Solutions | United States | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 128,376 | 133,912 | 459,683 | 497,898 | |
Infrastructure Solutions | United States | Equipment sales | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 73,594 | 87,478 | 278,653 | 312,906 | |
Infrastructure Solutions | United States | Pellet plant sales | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 0 | 20,000 | |||
Infrastructure Solutions | United States | Parts and component sales | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 39,641 | 35,170 | 128,142 | 125,530 | |
Infrastructure Solutions | United States | Service and equipment installation revenue | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 4,920 | 3,893 | 17,863 | 15,102 | |
Infrastructure Solutions | United States | Used equipment sales | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 3,358 | 2,374 | 17,666 | 8,527 | |
Infrastructure Solutions | United States | Freight revenue | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 5,198 | 4,539 | 15,824 | 14,646 | |
Infrastructure Solutions | United States | Other | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 1,665 | 458 | 1,535 | 1,187 | |
Infrastructure Solutions | International | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 22,720 | 22,278 | 75,882 | 75,506 | |
Infrastructure Solutions | International | Equipment sales | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 13,620 | 14,605 | 48,609 | 46,454 | |
Infrastructure Solutions | International | Parts and component sales | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 7,136 | 5,491 | 21,372 | 22,117 | |
Infrastructure Solutions | International | Service and equipment installation revenue | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 568 | 1,376 | 2,078 | 4,861 | |
Infrastructure Solutions | International | Used equipment sales | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 924 | 520 | 2,344 | 821 | |
Infrastructure Solutions | International | Freight revenue | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 331 | 125 | 1,275 | 1,044 | |
Infrastructure Solutions | International | Other | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 141 | 161 | 204 | 209 | |
Materials Solutions | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 80,308 | 99,617 | 249,986 | 312,985 | |
Materials Solutions | United States | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 52,920 | 55,871 | 177,014 | 200,927 | |
Materials Solutions | United States | Equipment sales | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 32,806 | 32,569 | 117,346 | 134,660 | |
Materials Solutions | United States | Pellet plant sales | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 0 | 0 | |||
Materials Solutions | United States | Parts and component sales | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 18,560 | 19,592 | 54,775 | 57,673 | |
Materials Solutions | United States | Service and equipment installation revenue | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 322 | 2,399 | 1,147 | 5,456 | |
Materials Solutions | United States | Used equipment sales | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 290 | 232 | 703 | 645 | |
Materials Solutions | United States | Freight revenue | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 1,273 | 1,603 | 3,995 | 4,999 | |
Materials Solutions | United States | Other | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | (331) | (524) | (952) | (2,506) | |
Materials Solutions | International | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 27,388 | 43,746 | 72,972 | 112,058 | |
Materials Solutions | International | Equipment sales | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 17,316 | 28,988 | 44,192 | 72,453 | |
Materials Solutions | International | Parts and component sales | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 8,788 | 12,792 | 24,934 | 34,408 | |
Materials Solutions | International | Service and equipment installation revenue | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 140 | 183 | 855 | 883 | |
Materials Solutions | International | Used equipment sales | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 678 | 1,116 | 1,709 | 1,953 | |
Materials Solutions | International | Freight revenue | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 418 | 633 | 1,007 | 2,064 | |
Materials Solutions | International | Other | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | $ 48 | $ 34 | $ 275 | $ 297 |
Segment Information, Segment In
Segment Information, Segment Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020USD ($) | Jun. 30, 2020segment | Mar. 31, 2020segment | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)business | Sep. 30, 2019USD ($) | |
Segment Reporting [Abstract] | ||||||
Number of reportable segments | segment | 2 | 3 | ||||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ||||||
Net sales | $ 231,404 | $ 255,807 | $ 785,551 | $ 886,389 | ||
Gross profit | 50,437 | 51,860 | 184,073 | 212,027 | ||
Net income | 1,687 | 2,955 | $ 31,475 | 40,535 | ||
Infrastructure Solutions | ||||||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ||||||
Number of business units | business | 15 | |||||
Net sales | 151,096 | 156,190 | $ 535,565 | 573,404 | ||
Materials Solutions | ||||||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ||||||
Number of business units | business | 10 | |||||
Net sales | 80,308 | 99,617 | $ 249,986 | 312,985 | ||
Corporate | ||||||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ||||||
Net sales | 0 | 0 | ||||
Gross profit | $ 71 | $ 147 | ||||
Gross profit percent | 0.00% | 0.00% | ||||
Net income | $ (6,947) | $ (32,418) | ||||
Operating Segments | ||||||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ||||||
Net sales | 231,404 | 255,807 | 785,551 | 886,389 | ||
Gross profit | $ 50,437 | $ 51,860 | $ 184,073 | $ 212,027 | ||
Gross profit percent | 21.80% | 20.30% | 23.40% | 23.90% | ||
Net income | $ 1,759 | $ 2,745 | $ 31,170 | $ 39,436 | ||
Operating Segments | Infrastructure Solutions | ||||||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ||||||
Net sales | 151,096 | 156,190 | 535,565 | 573,404 | ||
Gross profit | $ 29,645 | $ 30,952 | $ 120,857 | $ 140,004 | ||
Gross profit percent | 19.60% | 19.80% | 22.60% | 24.40% | ||
Net income | $ 6,266 | $ 3,889 | $ 37,701 | $ 48,885 | ||
Operating Segments | Materials Solutions | ||||||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ||||||
Net sales | 80,308 | 99,617 | 249,986 | 312,985 | ||
Gross profit | $ 20,692 | $ 20,837 | $ 62,911 | $ 71,876 | ||
Gross profit percent | 25.80% | 20.90% | 25.20% | 23.00% | ||
Net income | $ 7,205 | $ 5,803 | $ 21,709 | $ 22,969 | ||
Operating Segments | Corporate | ||||||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ||||||
Net sales | 0 | 0 | ||||
Gross profit | $ 100 | $ 305 | ||||
Gross profit percent | 0.00% | 0.00% | ||||
Net income | $ (11,712) | $ (28,240) | ||||
Intersegment Eliminations | ||||||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ||||||
Net sales | 18,366 | 11,227 | 51,743 | 37,802 | ||
Net income | (72) | 210 | 305 | 1,099 | ||
Intersegment Eliminations | Infrastructure Solutions | ||||||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ||||||
Net sales | 6,695 | 6,385 | 24,976 | 22,421 | ||
Intersegment Eliminations | Materials Solutions | ||||||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ||||||
Net sales | 11,671 | 4,842 | 26,767 | 15,381 | ||
Intersegment Eliminations | Corporate | ||||||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ||||||
Net sales | $ 0 | $ 0 | $ 0 | $ 0 |
Segment Information, Reconcilia
Segment Information, Reconciliation of Total Segment Profits to Consolidated Totals (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reconciliation [Abstract] | ||||
Net income | $ 1,687 | $ 2,955 | $ 31,475 | $ 40,535 |
Net (income) loss attributable to non-controlling interest in subsidiaries | (39) | 55 | 75 | 127 |
Net income attributable to controlling interest | 1,648 | 3,010 | 31,550 | 40,662 |
Operating Segments | ||||
Segment Reconciliation [Abstract] | ||||
Net income | 1,759 | 2,745 | 31,170 | 39,436 |
Intersegment Eliminations | ||||
Segment Reconciliation [Abstract] | ||||
Net income | $ (72) | $ 210 | $ 305 | $ 1,099 |
Contingent Matters (Details)
Contingent Matters (Details) - USD ($) $ in Millions | Aug. 16, 2018 | Sep. 30, 2020 | Dec. 31, 2019 |
Loss Contingency [Abstract] | |||
Contractual obligation | $ 3.5 | $ 1.5 | |
Percentage of potential contingent liability on unpaid balance | 1.75% | ||
Maximum exposure | $ 0.6 | ||
Loss contingency accrual | $ 1.3 | ||
Maximum maturity date of customer debt | Dec. 31, 2023 | ||
Pending Litigation | |||
Loss Contingency [Abstract] | |||
Loss contingency accrual | $ 0.6 | ||
Loss contingency, damages sought, value | $ 8.5 | ||
Maximum | |||
Loss Contingency [Abstract] | |||
Amount of letters of credit outstanding | 11 | ||
Letter of Credit Lender | |||
Loss Contingency [Abstract] | |||
Amount of letters of credit outstanding | 8.6 | ||
Astec Brazil Working Capital Loans | |||
Loss Contingency [Abstract] | |||
Contingent liabilities for letters of credit issued on behalf of foreign subsidiaries | $ 3.2 | ||
Letter of Credit | Maximum | |||
Loss Contingency [Abstract] | |||
Letter of credit expiration date | Apr. 30, 2021 | ||
Performance Guarantee | |||
Loss Contingency [Abstract] | |||
Contingent liabilities for letters of credit issued on behalf of foreign subsidiaries | $ 2.4 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($)age | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | |
Restricted Stock Units (RSUs) | ||||
Restricted stock units under the long-term Incentive Plans [Abstract] | ||||
Vesting period | 5 years | |||
Retirement age | age | 65 | |||
Vesting period for awards granted in 2019 and thereafter | 3 years | |||
Awards granted for time based vesting percentage | 50.00% | |||
Grant date fair value of restricted stock units granted | $ 2.7 | $ 2.8 | ||
Anticipated additional compensation costs to be recognized in future period | $ 3.4 | 3.4 | ||
Stock based compensation expense | 1.6 | $ 0.2 | $ 4.1 | $ 1.6 |
Restricted Stock Units (RSUs) | Non-Employee Directors Compensation Plan | ||||
Restricted stock units under the long-term Incentive Plans [Abstract] | ||||
Vesting period | 1 year | |||
Anticipated additional compensation costs to be recognized in future period | $ 1 | $ 1 | ||
Performance Shares | ||||
Restricted stock units under the long-term Incentive Plans [Abstract] | ||||
Award granted for target based performance percentage | 50.00% | |||
Performance Shares | Minimum | ||||
Restricted stock units under the long-term Incentive Plans [Abstract] | ||||
Actual shares vesting percentage | 0.00% | |||
Performance Shares | Maximum | ||||
Restricted stock units under the long-term Incentive Plans [Abstract] | ||||
Actual shares vesting percentage | 200.00% |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Plan Activity (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Outstanding January 1 (in shares) | 200,811 | |
Granted (in shares) | 95,821 | |
Vested (in shares) | (10,563) | |
Forfeited (in shares) | (7,277) | |
Outstanding June 30 (in shares) | 200,811 | 278,792 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Outstanding January 1 (in usd per share) | $ 41.52 | |
Granted (in usd per share) | 29.16 | |
Vested (in usd per share) | 30.18 | |
Forfeited (in usd per share) | 43.88 | |
Outstanding June 30 (in usd per share) | $ 37.64 | |
Phantom Share Units (PSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Outstanding January 1 (in shares) | 0 | |
Granted (in shares) | 95,796 | |
Vested (in shares) | (1,298) | |
Forfeited (in shares) | (740) | |
Outstanding June 30 (in shares) | 0 | 93,758 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Outstanding January 1 (in usd per share) | $ 0 | |
Granted (in usd per share) | 35.32 | |
Vested (in usd per share) | 34.66 | |
Forfeited (in usd per share) | 34.66 | |
Outstanding June 30 (in usd per share) | $ 35.34 |
Other Income, Net of Expenses_2
Other Income, Net of Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | ||||
Interest income | $ 195 | $ 369 | $ 613 | $ 938 |
Gain on investments | (29) | 17 | 78 | 215 |
Other | 1,183 | 26 | 1,326 | 99 |
Total | $ 1,349 | $ 412 | $ 2,017 | $ 1,252 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Summary of Derivative Instruments [Abstract] | ||
Derivative liabilities | $ 400 | |
Other Current Assets | ||
Summary of Derivative Instruments [Abstract] | ||
Derivative assets | $ 4 | |
Other Current Liabilities | ||
Summary of Derivative Instruments [Abstract] | ||
Derivative liabilities | $ 49 | |
Foreign Exchange Contract | ||
Summary of Derivative Instruments [Abstract] | ||
Average notional amount | $ 8,600 |
Derivative Financial Instrume_3
Derivative Financial Instruments, Gain recognized in income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Not Designated as Hedging Instrument | Foreign Exchange Contract | Cost of Sales | ||||
Gains on derivative financial instruments recognized in income, net [Abstract] | ||||
Net gains (loss) on derivative financial instruments recognized in income, net | $ (0.4) | $ 0.4 | $ 0.7 | $ 0.4 |
Restructuring and Asset Impai_2
Restructuring and Asset Impairment Charges - Restructuring Costs (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Impairment (recovery) of Company planes and costs associated with repairs | $ (272,000) | $ 2,340,000 | ||
Goodwill impairment related to mobile asphalt equipment operations | 0 | 1,600,000 | ||
Severance pay associated with workforce reductions at multiple sites | 2,115,000 | 3,327,000 | ||
Restructuring and asset impairment charges | 2,417,000 | $ 875,000 | 11,122,000 | $ 1,431,000 |
Mobile Asphalt Equipment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Goodwill impairment related to mobile asphalt equipment operations | 0 | 1,646,000 | ||
AMM Operations | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Business Exit Costs | 7,000 | 292,000 | ||
Facility Closing | Mequon Site Closing | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs | 418,000 | 1,807,000 | ||
Facility Closing | Albuquerque Site Closing | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs | (296,000) | 797,000 | ||
Facility Closing | Enid Site Closing | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Business Exit Costs | 232,000 | 483,000 | ||
Other Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Business Exit Costs | $ 213,000 | $ 430,000 |
Restructuring and Asset Impai_3
Restructuring and Asset Impairment Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
AMM Operations | ||||
Restructuring and Asset Impairment Charges [Abstract] | ||||
Business Exit Costs | $ 7 | $ 292 | ||
Wood Pellet Plant [Member] | ||||
Restructuring and Asset Impairment Charges [Abstract] | ||||
Business Exit Costs | $ 500 | $ 500 | ||
Facility Closing | ||||
Restructuring and Asset Impairment Charges [Abstract] | ||||
Restructuring charges | 900 | 1,400 | ||
Facility Closing | AMM Operations | ||||
Restructuring and Asset Impairment Charges [Abstract] | ||||
Restructuring charges | $ 400 | $ 900 |
Subsequent Event (Details)
Subsequent Event (Details) $ in Millions | Oct. 05, 2020USD ($) |
Bauer Equipment America, Inc | Subsequent Event | |
Subsequent Event [Line Items] | |
Consideration transferred | $ 7.5 |