Company: ASTE
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0000792987-25-000029
Chunk: 62

Company: ASTEC INDUSTRIES INC
Filing Date: 2025-04-29
Form: 10-Q
Item: Part I, Item 8
Chunk 62
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Excluding Mexico)0.4 0.7 Other0.6 0.5 Total foreign55.6 66.0 Total net sales$329.4 $309.2 

Note 10. 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 $31.0 million, of which $3.7 million and $27.3 million were included in "Prepaid expenses and other assets" and "Other long-term assets," respectively, in the Consolidated Balance Sheets as of March 31, 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 $6.4 million and $5.5 million as of March 31, 2025 and December 31, 2024, respectively.

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Costs associated with these strategic transformation programs are presented below:Three Months Ended March 31,(in millions)20252024Strategic transformation programsSelling, general and administrative expenses$6.9 $6.4 Cost of sales0.1 0.1 Total costs related to strategic transformation initiatives$7.0 $6.5 Amortization of capitalized implementation costs (1)$0.9 $0.7 (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 Company reports asset impairment charges, excluding goodwill impairment, and gains or losses