Segment Information

3 Months Ended

Mar. 31, 2016

Segment Information [Abstract]

Segment Information

Note 11.  Segment Information

The Company has three reportable segments, each of which is comprised of multiple business units that offer similar products and services and meet the requirements for aggregation. A brief description of each segment is as follows:

Infrastructure Group - This segment consists of five business units, three of which design, engineer, manufacture and market a complete line of portable, stationary and relocatable hot-mix asphalt plants, wood pellet plants, asphalt pavers, material transfer vehicles, milling machines and paver screeds. The other two business units in this segment primarily operate as Company-owned dealers in the foreign countries in which they are domiciled.  These two business units sell, service and install products produced by the manufacturing subsidiaries of the Company, and a majority of their sales are to customers in the infrastructure industry.  The principal purchasers of the products produced by this group are asphalt producers, highway and heavy equipment contractors, wood pellet processors and foreign and domestic governmental agencies.

Aggregate and Mining Group - This segment consists of eight business units that design, engineer, manufacture and market a complete line of jaw crushers, cone crushers, horizontal shaft impactors, vertical shaft impactors, material handling, roll rock crushers and stationary rockbreaker systems, vibrating feeders and high frequency vibrating screens, conveyors, inclined, vertical and horizontal screens and sand classifying and washing equipment. The principal purchasers of products produced by this group are distributors, open mine operators, quarry operators, port and inland terminal operators, highway and heavy equipment contractors and foreign and domestic governmental agencies.

Energy Group - This segment consisted of five business units through May 2015 that design, engineer, manufacture and market a complete line of drilling rigs for the oil and gas, geothermal and water well industries, high pressure diesel pump trailers for fracking and cleaning oil and gas wells, a variety of industrial heaters to fit a broad range of applications including heating equipment for refineries, oil sands and energy related processing, heat transfer processing equipment, thermal fluid storage tanks, waste heat recovery equipment, whole-tree pulpwood and biomass chippers and horizontal grinders. The principal purchasers of products produced by this group are oil, gas and water well drilling industry contractors, processors of oil, gas and biomass for energy production and contractors in the construction and demolition recycling markets.  Effective May 31, 2015, the Company’s Astec Underground, Inc. business unit in Loudon, Tennessee ceased operations and responsibility for its product lines was transferred to the Company’s GEFCO, Inc. subsidiary in Enid, Oklahoma.  The Loudon facility was sold in October 2015.

Corporate - This category consists of business units that do not meet the requirements for separate disclosure as an operating segment or inclusion in one of the other reporting segments and includes the Company's parent company, Astec Industries, Inc., and Astec Insurance Company, a Company-owned captive insurance company. The Company evaluates performance and allocates resources to its operating segments based on profit or loss from operations before U.S. federal income taxes and corporate overhead and thus these costs are included in the Corporate category.

The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. Intersegment sales and transfers are valued at prices comparable to those for unrelated parties.

Segment Information:

	Three Months Ended March 31, 2016
	Infrastructure Group			Aggregateand Mining Group			Energy Group			Corporate			Total
Net sales to external   customers	$	153,114		$	92,488		$	33,119		$	-		$	278,721
Intersegment sales		3,173			4,851			3,466			-			11,490
Gross profit (loss)		39,837			25,148			7,082			(111	)		71,956
Gross profit percent		26.0	%		27.2	%		21.4	%		-			25.8	%
Segment profit (loss)	$	21,863		$	9,538		$	(192	)	$	(14,226	)	$	16,983

	Three Months Ended March 31, 2015
	Infrastructure Group			Aggregateand Mining Group			Energy Group			Corporate			Total
Net sales to external   customers	$	135,045		$	106,412		$	47,291		$	-		$	288,748
Intersegment sales		5,104			10,684			7,477			-			23,265
Gross profit		30,946			25,972			9,119			8			66,045
Gross profit percent		22.9	%		24.4	%		19.3	%		-			22.9	%
Segment profit (loss)	$	15,511		$	11,594		$	163		$	(11,965	)	$	15,303

A reconciliation of total segment profits to the Company’s consolidated totals is as follows:

	Three Months Ended March 31,
	2016			2015
Total segment profits	$	16,983		$	15,303
Recapture (elimination) of intersegment profit		695			(386	)
Net income		17,678			14,917
Net loss attributable to non-controlling   interest in subsidiaries		(65	)		(188	)
Net income attributable to controlling interest	$	17,743		$	15,105