Company: ASTE
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0000792987-25-000047
Chunk: 75

Company: ASTEC INDUSTRIES INC
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 8
Chunk 75
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 that the carrying value of the Materials Solutions reporting unit exceeded its fair value as of June 30, 2024. As a result, the Company recognized a pretax non-cash goodwill impairment charge of $20.2 million in "Goodwill impairment" in the Consolidated Statements of Operations to fully impair the goodwill allocated to the Materials Solutions reporting unit.

Note 5. 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 

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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 costs.Changes in the Company's product warranty liability for the three and six month periods ended June 30, 2025 and 2024 are as follows:Three Months Ended June 30,Six Months Ended June 30,(in millions)2025202420252024Reserve balance, beginning of the period$17.8 $16.2 $16.1 $16.5 Warranty liabilities accrued6.1 4.5 12.3 8.7 Warranty liabilities settled(5.1)(5.2)(9.7)(9.7)Other0.1 (0.1)0.2 (0.1)Reserve balance, end of the period$18.9 $15.4 $18.9 $15.4 

Note 6. Accrued Loss Reserves

The Company accrues reserves for losses related to known workers' compensation and general liability claims that have been incurred but not yet paid or are estimated to have been incurred but not yet reported to the Company. The undiscounted reserves are actuarially determined based on the Company's evaluation of the type and severity of individual claims and historical information, primarily its own 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 $6.4 million and $6.3 million as of June 30, 2025 and December 31, 2024, respectively, of which $4.8 million and $4