Company: ASTE
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0000792987-25-000064
Chunk: 14

Company: ASTEC INDUSTRIES INC
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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$6.8 $6.8 Total financial liabilities$— $6.8 $6.8 December 31, 2024(in millions)Level 1Level 2TotalFinancial assets:Trading equity securities:Deferred compensation programs' mutual funds$5.1 $— $5.1 Preferred stocks0.3 — 0.3 Equity funds0.6 — 0.6 Trading debt securities:Corporate bonds3.2 — 3.2 Agency bonds— 1.5 1.5 U.S. government securities2.4 — 2.4 Asset-backed securities— 7.1 7.1 Exchange traded funds0.8 — 0.8 Mortgage backed securities— 0.4 0.4 Other0.2 0.3 0.5 Total financial assets$12.6 $9.3 $21.9 Financial liabilities:Deferred compensation programs' liabilities$— $6.1 $6.1 Total financial liabilities$— $6.1 $6.1 

Note 5. Goodwill

The Company tests goodwill for impairment annually on October 1, 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 between annual impairment tests. During the second quarter of 2024, the Company identified that indicators of goodwill impairment were present due to macroeconomic conditions at the time, including declines in the Company's publicly quoted share price and increased interest rates, as well as lower than expected operating results. These factors indicated that one or more of the Company's reporting 

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units may have fallen below their carrying amounts. Management elected to perform a qualitative assessment on all reporting units, and the Company concluded that a further quantitative analysis was required for the Materials Solutions reporting unit.The Company determined the fair value of the Materials Solutions reporting unit using an equally weighted combination of the discounted cash flow method, a form of the income approach, and the guideline public company method, a form of the market approach. The significant assumptions used under the discounted cash flow method are projected net sales, projected earnings before interest, tax, depreciation and amortization ("EBITDA"), terminal growth rates, and the cost of capital. Projected net sales, projected EBITDA and terminal growth rates were determined to be significant assumptions because they are