ASTEC INDUSTRIES INCASTE
ASTEC INDUSTRIES INC Fair Value Disclosure
Fair Value Measurements
The Company has various financial instruments that must be measured at fair value on a recurring basis, including marketable debt and equity securities held by Astec Insurance and marketable equity securities held in the Company's deferred compensation programs. The Company's deferred compensation programs ("DCP") include a non-qualified Supplemental Executive Retirement Plan ("SERP") and a separate non-qualified Deferred Compensation Plan. Although the DCP investments are allocated to individual participants, and investment decisions are made solely by those participants, they are non-qualified plans. Consequently, the Company owns the assets and the related offsetting liability for disbursement until such time as a participant makes a qualifying withdrawal. The DCP assets and related offsetting liabilities are recorded in non-current "Investments" and "Other long-term liabilities", respectively, in the Consolidated Balance Sheets. The Company's subsidiaries also occasionally enter into foreign currency exchange contracts to mitigate exposure to fluctuations in currency exchange rates.
The carrying amount of cash, cash equivalents and restricted cash, trade receivables and contract assets, other receivables, accounts payable, short-term debt and long-term debt approximates their fair value because of their short-term nature and/or interest rates associated with the instruments. Investments are carried at their fair value based on quoted market prices for identical or similar assets or, where no quoted prices exist, other observable inputs for the asset. The fair values of foreign currency exchange contracts are based on quotations from various banks for similar instruments using models with market-based inputs.
Financial assets and liabilities are categorized based on the level of judgment associated with the inputs used to measure their fair value. The inputs used to measure the fair value are identified in the following hierarchy:
| Level 1 - | Unadjusted quoted prices in active markets for identical assets or liabilities. | |||||||
| Level 2 - | Unadjusted quoted prices in active markets for similar assets or liabilities; or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs other than quoted prices that are observable for the asset or liability. | |||||||
| Level 3 - | Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. | |||||||
As indicated in the tables below, the Company has determined that all of its financial assets and liabilities as of December 31, 2025 and 2024 are Level 1 and Level 2 in the fair value hierarchy as defined above:
| December 31, 2025 | ||||||||||||||||||||
| (in millions) | Level 1 | Level 2 | Total | |||||||||||||||||
| Financial assets: | ||||||||||||||||||||
| Trading equity securities: | ||||||||||||||||||||
| Deferred compensation programs' mutual funds | $ | 5.9 | $ | — | $ | 5.9 | ||||||||||||||
| Preferred stocks | 0.3 | — | 0.3 | |||||||||||||||||
| Equity funds | 0.6 | — | 0.6 | |||||||||||||||||
| Trading debt securities: | ||||||||||||||||||||
| Corporate bonds | 3.6 | — | 3.6 | |||||||||||||||||
| Agency bonds | — | 0.9 | 0.9 | |||||||||||||||||
| U.S. government securities | 2.4 | — | 2.4 | |||||||||||||||||
| Asset-backed securities | — | 8.5 | 8.5 | |||||||||||||||||
| Exchange traded funds | 0.4 | — | 0.4 | |||||||||||||||||
| Mortgage backed securities | — | 0.3 | 0.3 | |||||||||||||||||
| Other | — | 0.3 | 0.3 | |||||||||||||||||
| Total financial assets | $ | 13.2 | $ | 10.0 | $ | 23.2 | ||||||||||||||
| Financial liabilities: | ||||||||||||||||||||
| Deferred compensation programs' liabilities | $ | — | $ | 6.7 | $ | 6.7 | ||||||||||||||
| Total financial liabilities | $ | — | $ | 6.7 | $ | 6.7 | ||||||||||||||
| December 31, 2024 | ||||||||||||||||||||
| (in millions) | Level 1 | Level 2 | Total | |||||||||||||||||
| Financial assets: | ||||||||||||||||||||
| Trading equity securities: | ||||||||||||||||||||
| Deferred compensation programs' mutual funds | $ | 5.1 | $ | — | $ | 5.1 | ||||||||||||||
| Preferred stocks | 0.3 | — | 0.3 | |||||||||||||||||
| Equity funds | 0.6 | — | 0.6 | |||||||||||||||||
| Trading debt securities: | ||||||||||||||||||||
| Corporate bonds | 3.2 | — | 3.2 | |||||||||||||||||
| Agency bonds | — | 1.5 | 1.5 | |||||||||||||||||
| U.S. government securities | 2.4 | — | 2.4 | |||||||||||||||||
| Asset-backed securities | — | 7.1 | 7.1 | |||||||||||||||||
| Exchange traded funds | 0.8 | — | 0.8 | |||||||||||||||||
| Mortgage backed securities | — | 0.4 | 0.4 | |||||||||||||||||
| Other | 0.2 | 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 | ||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Mar 17, 2020 | |
| 2018 | Mar 18, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Mar 1, 2017 | |
| 2015 | Feb 29, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.