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Segment Information
 6 Months Ended
Jun. 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, also referred to herein as the Infrastructure Solutions Group, is comprised of 13 business units. These business units include Astec, Inc. (“CHA-Jerome Ave”), Roadtec, Inc. (“CHA-Manufacturers Rd”), 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 group 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 June 30, 2020 and its land and buildings are currently accounted for as held for sale. In late 2019, the Company impaired and discontinued Enid’s oil and gas product lines and is in the process of disposing of the related oil and gas inventory. The Company is also currently marketing its Enid production facilities and remaining water well product line of the business for sale.
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 group 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 June 30, 2020
(in thousands)
Infrastructure
Solutions
Materials
Solutions
Corporate
Total
Net sales to external customers
$181,851  $83,448  $—  $265,299  
Intersegment sales
12,340  6,822  —  19,162  
Gross profit38,290  21,214  111  59,615  
Gross profit percent21.1 %25.4 %— %22.5 %
Segment profit (loss)$14,215  $8,469  $(13,605) $9,079  
Six Months Ended June 30, 2020
(in thousands)Infrastructure SolutionsMaterials SolutionsCorporateTotal
Net sales to external customers$384,469  $169,678  $—  $554,147  
Intersegment sales18,281  15,096  —  33,377  
Gross profit91,213  42,219  204  133,636  
Gross profit percent23.7 %24.9 %— %24.1 %
Segment profit (loss)$31,435  $14,504  $(16,528) $29,411  
Three Months Ended June 30, 2019
(in thousands)Infrastructure
Solutions		Materials
Solutions		CorporateTotal
Net sales to external customers$197,965  $106,837  $—  $304,802  
Intersegment sales6,944  5,782  —  12,726  
Gross profit57,743  25,493  81  83,317  
Gross profit percent29.2 %23.9 %— %27.3 %
Segment profit (loss)$26,926  $8,489  $(12,563) $22,852  
Six Months Ended June 30, 2019
(in thousands)Infrastructure SolutionsMaterials SolutionsCorporateTotal
Net sales to external customers$417,214  $213,368  $—  $630,582  
Intersegment sales16,036  10,539  —  26,575  
Gross profit109,053  51,038  76  160,167  
Gross profit percent26.1 %23.9 %— %25.4 %
Segment profit (loss)$44,996  $17,166  $(25,471) $36,691  
A reconciliation of total segment profit to the Company’s consolidated totals is as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
(in thousands)2020201920202019
Total profit shown above$9,079  $22,852  $29,411  $36,691  
Recapture of intersegment profit226  509  377  888  
Net income9,305  23,361  29,788  37,579  
Net (income) loss attributable to non-controlling interest in subsidiaries(47) 16  114  72  
Net income attributable to controlling interest$9,258  $23,377  $29,902  $37,651