Company: ASTE
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0000792987-25-000064
Chunk: 85

Company: ASTEC INDUSTRIES INC
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 8
Chunk 85
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$1,009.8 $946.1 

Note 13. Strategic Transformation, Restructuring and Other Asset Gains, net

The Company's strategic transformation program includes the ongoing multi-year phased implementation of a standardized enterprise resource planning ("ERP"), which is replacing much of the existing disparate core financial systems. The upgraded ERP will initially convert internal operations, manufacturing, finance, human capital resources management and customer relationship systems to cloud-based platforms. An implementation of this scale is a major financial undertaking and requires substantial time and attention of management and key employees.Net capitalized implementation costs associated with the ERP implementation totaled $29.1 million, of which $3.7 million and $25.4 million were included in "Prepaid expenses and other assets" and "Other long-term assets," respectively, in the Consolidated Balance Sheets as of September 30, 2025. Net capitalized implementation costs totaled $31.9 million, of which $3.7 million and $28.2 million were included in "Prepaid expenses and other assets" and "Other long-term assets," respectively, in the Consolidated Balance Sheets as of December 31, 2024. Accumulated amortization associated with these capitalized implementation costs totaled $8.3 million and $5.5 million as of September 30, 2025 and December 31, 2024, respectively.

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Costs associated with these strategic transformation programs are presented below:Three Months Ended September 30,Nine Months Ended September 30,(in millions)2025202420252024Strategic transformation programsSelling, general and administrative expenses$5.2 $8.6 $15.5 $26.0 Cost of sales— 0.1 0.1 0.4 Total costs related to strategic transformation initiatives$5.2 $8.7 $15.6 $26.4 Amortization of capitalized implementation costs (1)$0.9 $1.0 $2.8 $2.7 (1) Amortization of capitalized implementation costs is recorded in "Selling, general and administrative expenses" in the Consolidated Statements of Operations.In addition, the Company periodically sells or disposes of its assets in the normal course of its business operations as they are no longer needed or used and may incur gains or losses on these disposals. Certain of the costs associated with these decisions are separately identified as restructuring. The