Company: ASTE
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0000792987-25-000047
Chunk: 13

Company: ASTEC INDUSTRIES INC
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 13
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 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 $4.6 million were included in "Other long-term liabilities" in the Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024, respectively.

Note 7. Income Taxes

For the three months ended June 30, 2025, the Company recorded income tax expense of $5.8 million, reflecting a 25.7% effective tax rate, compared to $0.3 million for the three months ended June 30, 2024, reflecting a (2.2)% effective tax rate. The income tax expense for the three months ended June 30, 2025 was higher compared to the same period in 2024 primarily due to higher pretax book income and changes in the relative weighting of jurisdictional income and loss, partially offset by a net nondeductible goodwill impairment incurred in 2024.For the six months ended June 30, 2025, the Company recorded income tax expense of $11.2 million, reflecting a 26.5% effective tax rate, compared to $1.7 million for the six months ended June 30, 2024, reflecting a (18.9)% effective tax rate. The income tax expense for the six months ended June 30, 2025 was higher compared to the same period in 2024 primarily due to higher pretax book income and changes in the