Company: ASTE
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0000792987-25-000064
Chunk: 15

Company: ASTEC INDUSTRIES INC
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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 primary drivers of the projected cash flows in the discounted cash flow fair value model. Cost of capital was also determined to be a significant assumption as it is the discount rate used to calculate the current fair value of those projected cash flows. The Company calculates the discount rate based on a market-participant, risk-adjusted weighted average cost of capital, which considers industry specific rates of return on debt and equity capital for a target industry capital structure, adjusted for risks associated with business size, geography and other factors specific to the reporting unit. A change in the discount rate, as a result of a change in economic conditions or otherwise, could result in the carrying value of the reporting unit exceeding its fair value. For the guideline public company method, significant assumptions relate to the selection of appropriate guideline companies and related valuation multiples used in the market analysis. Based on the quantitative impairment test, the Company determined 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.The Company completed the Acquisition during the three months ended September 30, 2025, which increased goodwill $85.1 million.The changes in the carrying amount of goodwill and accumulated impairment losses by reporting segment during the nine months ended September 30, 2025 and the year ended December 31, 2024 are as follows:(in millions)Infrastructure SolutionsMaterials SolutionsTotalBalance, December 31, 2023:Goodwill$48.0 $32.3 $80.3 Accumulated impairment losses(21.8)(12.2)(34.0)Net$26.2 $20.1 $46.3 2024 Activity:Foreign currency translation$(1.2)$0.1 $(1.1)Impairment— (20.2)(20.2)Total 2024 activity$(1.2)$(20.1)$(21.3)Balance, December 31, 2024:Goodwill$46.8 $32.2 $79.0 Accumulated impairment(21.8)(32.2)(54.0)Net$25.0 $— $25.0 2025 Activity:Foreign currency translation$0.6 $(0.