NACCO INDUSTRIES, INC.

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					PAGE
PART I.
			Item 1.	BUSINESS	1
			Item 1A.	RISK FACTORS	1727
			Item 1B.	UNRESOLVED STAFF COMMENTS	2237
			Item 2.	PROPERTIES	2237
			Item 3.	LEGAL PROCEEDINGS	2237
			Item 4.	MINE SAFETY DISCLOSURES	2237
	~~Item 4A.~~	~~EXECUTIVE OFFICERS OF THE REGISTRANT~~	22
PART II.
			Item 5.	MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES	2538
			Item 6.	SELECTED FINANCIAL DATA	2538
			Item 7.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	2639
			Item 7A.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	3955
			Item 8.	FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA	3955
			Item 9.	CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE	3955
			Item 9A.	CONTROLS AND PROCEDURES	3955
			Item 9B.	OTHER INFORMATION	3955
PART III.
			Item 10.	DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE	4056
			Item 11.	EXECUTIVE COMPENSATION	4056
			Item 12.	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS	4056
			Item 13.	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE	4056
			Item 14.	PRINCIPAL ACCOUNTANT FEES AND SERVICES	4056
PART IV.
			Item 15.	EXHIBITS AND FINANCIAL STATEMENT SCHEDULES	4157
SIGNATURES					4762
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA					F-~~F-1~~1

PART I

Item 1. BUSINESS

General

NACCO Industries, Inc. (“® (“NACCO” or the “Company”) ~~is the public holding company for The~~, through a portfolio of mining and natural resources businesses, operates under three business segments: Coal Mining, North American Mining ("NAMining") and Minerals Management. The Coal ~~Corporation. The North American Coal Corporation and its affiliated companies (collectively, “NACoal”) operate~~Mining segment operates surface coal mines ~~that supply coal primarily to~~under long-term contracts with power generation companies ~~under long-term contracts,~~ and ~~provide~~an activated carbon producer pursuant to a service-based business model. The NAMining segment provides value-added contract mining and other ~~value-added~~services for producers of aggregates, lithium and other minerals. The Minerals Management segment acquires and promotes the development of oil, gas and coal mineral interests, generating income primarily from royalty-based lease payments from third parties. In addition, the Company has a business providing stream and wetland mitigation solutions.

The Company has items not directly attributable to a reportable segment which are not included as part of the measurement of segment operating profit, which are primarily administrative costs related to public company reporting requirements at the parent company and the financial results of Mitigation Resources of North America® (“MRNA”) and Bellaire Corporation (“Bellaire”). MRNA generates and sells stream and wetland mitigation credits (known as mitigation banking) and provides services to ~~natural resource companies. In addition, its North American Mining ("NAM") business operates~~those engaged in permittee-responsible stream and ~~maintains draglines and other equipment under contracts with sellers of aggregates. NACoal’s service-based business model aligns its operating goals with customers’ objectives.~~ wetland mitigation. Bellaire manages the Company’s long-term liabilities related to former Eastern U.S. underground mining activities.

Additional information relating to financial and operating data on a segment basis (including NACCO and Other) is set forth under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in Part II of this Form 10-K and in Note 15 to the Consolidated Financial Statements contained in this Form 10-K.

NACCO was incorporated as a Delaware corporation in 1986 in connection with the formation of a holding company structure for a predecessor corporation organized in 1913. ~~As of December 31, 2018, the Company and its subsidiaries had approximately 2,400 employees, including approximately 2,000 employees at the Company’s unconsolidated mining operations.~~

The Company ~~makes~~has continued to operate as an essential business during the COVID-19 pandemic because it supports critical infrastructure industries. The extent to which COVID-19 impacts the Company going forward will depend on numerous factors and future developments that remain uncertain.

Business Strategy

The Company is leveraging its ~~annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K,~~core mining and ~~any amendments~~natural resources management skills to develop a strong and diverse portfolio of affiliated businesses operating in the mining and natural resources industries while maintaining a conservative capital structure. Diversified strategic growth is the key to enhancing net income as well as increasing free cash flow available to continue to reinvest in and expand the businesses.

NAMining continues to expand the scope of its business development activities to grow and diversify by targeting geographically diverse customers who require a broad range of minerals and materials. NAMining also continues to leverage the Company’s core mining skills to expand the range of contract mining services provided, in addition to providing comprehensive mining services to operate entire mines when appropriate, such as the long-term mining contract with Lithium Americas to provide mining services for its Thacker Pass lithium project in Nevada.

The Company’s efforts to grow and diversify the Minerals Management segment include acquiring additional mineral interests or similar investments in the energy industry. Once mineral and royalty interests have been acquired, the Minerals Management segment will benefit from the continued development of its mineral properties without the need for investment of additional capital. This business model can deliver higher average operating margins over the life of a reserve than traditional oil and gas companies that bear the cost of exploration, production and/or development.

MRNA creates and sells stream and wetland mitigation credits and provides services to those ~~reports available, free~~engaged in permittee-responsible mitigation. This business offers opportunity for growth and diversification in an industry where the Company has substantial knowledge and expertise. MRNA has achieved impressive initial growth and is positioned for additional growth.

One of ~~charge, through~~the Company’s core strategies is to pursue activities which can provide resiliency to its ~~website, www.nacco.com,~~existing coal mining

operations. The Company works to drive down coal production costs and maximize efficiencies and operating capacity at mine locations to help customers with management fee contracts be more competitive. These activities benefit both customers and the Company's Coal Mining segment, as ~~soon~~fuel cost is a significant driver for power plant dispatch. Increased power plant dispatch results in increased demand for coal by the Coal Mining segment's customers.

The Company evaluates opportunities to expand its coal mining business, but opportunities are few. Low natural gas prices and growth in renewable energy sources, such as ~~reasonably practicable after such material~~wind and solar, are likely to continue to unfavorably affect the amount of electricity dispatched from coal-fired power plants. The political and regulatory environment is ~~electronically filed~~not receptive to development of new coal-fired power generation projects which would create opportunities to build and operate new coal mines. However, the Company would consider opportunities where it can apply its management fee business model to assume operation of existing

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surface coal mining operations in the United States. Outright acquisitions of existing coal mines or mining companies with exposure to fluctuating coal commodity markets, or ~~furnished~~structures that would create significant leverage, are outside the Company’s area of focus.

In all of its business endeavors, the Company continues to maintain the highest levels of customer service and operational excellence, with an unwavering focus on safety, environmental stewardship and people.

Business Developments

During 2020, the Minerals Management segment acquired mineral interests for approximately 65.5 thousand gross acres and 1.2 thousand net royalty acres in the Permian Basin in Texas for a total purchase price of approximately $14.2 million. The acquired interests align with the Company’s strategy of selectively acquiring mineral interests with a balance of near-term cash flow yields and long-term growth potential, in oil-rich basins offering diversification from the Company’s legacy mineral interests in predominately natural gas-rich basins.

The Sabine Mining Company (“Sabine”) operates the Sabine Mine in Texas. All production from Sabine is delivered to Southwestern Electric Power Company's (“SWEPCO”) Henry W. Pirkey Plant (the “Pirkey Plant”). SWEPCO is an American Electric Power (“AEP”) company. On November 5, 2020, AEP announced it intends to retire the Pirkey Plant in 2023 in order to comply with the U.S. Environmental Protection Agency’s Coal Combustion Residuals rule. The Sabine Mine delivered 1.9 million and 2.6 million tons to the ~~Securities~~Pirkey Plant in 2020 and ~~Exchange Commission~~2019, respectively. During 2020, SWEPCO reduced its expected future annual delivery requirements to be between 1.4 million and 1.7 million tons. The Sabine Mine contributed $3.9 million and $4.6 million to NACCO’s Earnings from Unconsolidated Operations during 2020 and 2019, respectively.

The Coteau Properties Company (“~~SEC”~~Coteau”) operates the Freedom Mine in North Dakota. All coal production from the Freedom Mine is delivered to Basin Electric Power Cooperative (“Basin Electric”). Basin Electric utilizes the coal at the Great Plains Synfuels Plant (the “Synfuels Plant”), Antelope Valley Station and Leland Olds Station. The Synfuels Plant is a coal gasification plant that manufactures synthetic natural gas and produces fertilizers, solvents, phenol, carbon dioxide, and other chemical products for sale. On November 5, 2020, Basin Electric informed its employees and Coteau that it is considering changes that may result in modifications to its Synfuels Plant that could potentially reduce or eliminate coal requirements at the Synfuels Plant beginning in 2026. Basin Electric indicated that if it decides to proceed with any changes that could reduce or eliminate the use of coal, the feedstock change is not expected to occur before 2026. As a result, coal deliveries to the Synfuels Plant are expected to continue until at least 2026.

~~Significant Events~~

~~During 2018, 2017 and 2016, NACoal expanded its NAM business by adding several new customers.~~

On September ~~29, 2017,~~30, 2020, Caddo Creek Resources Company, LLC's (“Caddo Creek's”) customer, a division of Cabot Corporation, entered into a long-term supply agreement with a subsidiary of Advanced Emissions Solutions (“AES”) as well as an agreement for the ~~Company spun-off Hamilton Beach Brands Holding Company ("HBBHC"~~sale of the Marshall Mine, operated by Caddo Creek, to a subsidiary of AES. AES announced its intent to close the Marshall Mine. Caddo Creek entered into a contract with a subsidiary of AES to perform the required mine reclamation. The Marshall Mine delivered 0.1 million and 0.2 million tons during 2020 and 2019, respectively.

The contract mining agreement between Camino Real Fuels, LLC (“Camino Real”) and its customer, Dos Republicas Coal Partnership (“DRCP”), ~~a former wholly owned subsidiary. As~~terminated effective July 1, 2020 as a result of the ~~spin-off, NACCO stockholders received one share~~unexpected termination by Comisión Federal de Electricidad (“CFE”) of ~~HBBHC Class A common stock and one share~~its coal supply contract with an affiliate of ~~HBBHC Class B common stock for each share of NACCO Class A or Class B common stock owned on the record date for the spin-off.~~DRCP. The ~~financial position, results of operations and cash flows of HBBHC are reflected as discontinued operations for all periods presented through the date~~termination of the ~~spin-off.~~ contract between CFE and DRCP eliminated DRCP’s need for coal from Camino Real's Eagle Pass Mine, and resulted in mine closure. Mine reclamation is the responsibility of DRCP. Camino Real has no legal obligation to perform mine reclamation. The Eagle Pass Mine delivered 0.3 million and 1.6 million tons during 2020 and 2019, respectively.

On ~~September 28, 2017, prior~~May 7, 2020, Great River Energy ("GRE"), Falkirk Mine's customer, announced its intent to retire the ~~spin-off, HBBHC paid NACCO a one-time $35.0 million cash dividend. This payment was~~Coal Creek Station power plant in ~~addition~~the second half of 2022 and modify the Spiritwood Station power plant to ~~$3.0 million~~be fueled by natural gas. As noted in ~~dividends HBBHC paid~~the announcement, GRE is willing to ~~NACCO from January 1, 2017~~consider opportunities to ~~June 30, 2017.~~

On June 28, 2017, Southern Company and its subsidiary, Mississippi Power, suspended operations involving the coal gasifier portion of the Kemper County energy facility. Liberty Fuels Company, LLC ("Liberty"), an unconsolidated mining operation, wassell Coal Creek Station. Falkirk Mine is the sole supplier of lignite coal to ~~fuel the gasifier~~Coal Creek Station pursuant to a long-term contract under ~~its contract with Mississippi Power. Liberty ceased all mining and delivery~~which Falkirk also supplies approximately 0.3 million tons of lignite coal per year to Spiritwood Station. Falkirk delivered a total of 7.2 million and 7.4 million tons of lignite coal and contributed $16.1 million and $15.9 million to NACCO’s Earnings from Unconsolidated Operations during 2020 and 2019, respectively.

In 2019, NAMining, through a new subsidiary, Sawtooth Mining, entered into a mining agreement to serve as exclusive contract miner for the Thacker Pass lithium project in ~~2017~~northern Nevada. The Thacker Pass Project is 100% owned by Lithium Nevada Corp, a subsidiary of Lithium Americas Corp. Lithium Nevada plans to develop a lithium production facility near what is believed to be the largest known lithium deposit in the United States. Sawtooth Mining will provide comprehensive mining services similar to the Company's typical scope of work in the Coal Mining segment. The mining agreement provides that

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Lithium Nevada will reimburse Sawtooth Mining for its operating and ~~commenced~~ mine reclamation ~~in 2018.~~costs, and pay Sawtooth Mining a management fee per metric ton of lithium delivered during the 20-year contract term commencing with receipt of construction and operating permits by Lithium Nevada.

~~On January 1, 2017, Bisti Fuels Company, LLC ("Bisti"), an unconsolidated mining operation, became the contract miner at Navajo Transitional Energy Company's ("NTEC's") Navajo Mine.~~Coal Mining Segment

Centennial Natural Resources, LLC ("Centennial") ceased active mining operations at the end of 2015. During 2016 and 2017, the Company's NACoal subsidiary recorded non-cash impairment charges of $17.4 million and $1.0 million, respectively. The ~~carrying value of coal land and real estate and the assets held for sale were zero~~Coal Mining segment, operating as ~~of December 31, 2017.~~

North American Coal

~~General~~

~~NACoal~~ Corporation® ("NACoal"), operates surface coal mines ~~that supply coal primarily to~~under long-term contracts with power generation companies ~~under long-term contracts,~~ and ~~provides other value-added services~~an activated carbon producer pursuant to ~~natural resource companies. In addition, its NAM~~a service-based business ~~operates and maintains draglines and other equipment under contracts with sellers of aggregates.~~

model. Coal is surface-mined ~~from NACoal's mines~~ in North Dakota, Texas, Mississippi, Louisiana and on the Navajo Nation in New Mexico. ~~NACoal has~~Each mine is fully integrated with its customer's operations.

During 2020, the ~~following~~Company's operating coal ~~mining subsidiaries:~~mines were: Bisti Fuels Company, LLC (“Bisti”), Caddo Creek, ~~Resources Company, LLC (“Caddo Creek”),~~ Camino Real, ~~Fuels, LLC (“Camino Real”), The~~ Coteau, ~~Properties Company (“Coteau”),~~ Coyote Creek

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Mining Company, LLC (“Coyote Creek”), Demery Resources Company, LLC (“Demery”), ~~The~~ Falkirk, ~~Mining Company (“Falkirk”),~~ Mississippi Lignite Mining Company (“MLMC”) and ~~The Sabine Mining Company (“Sabine”). Liberty ceased all mining and delivery of lignite in 2017 and commenced mine reclamation in 2018.~~Sabine.

Coteau, Coyote, Falkirk, MLMC and Sabine supply lignite coal for power generation. Bisti ~~and Camino Real supply sub-bituminous~~supplies sub-bituminous coal for power generation. ~~Caddo Creek and~~ Demery ~~supply~~supplies lignite coal for the production of activated carbon. Each of these mines deliver their coal production to adjacent or nearby power plants, synfuels plants or an activated carbon processing ~~facilities~~facility under long-term supply contracts. ~~With the exception of Camino Real, each~~Each mine is the exclusive supplier of coal to its customers' facilities. MLMC’s coal supply contract contains a take or pay provision; all other coal supply contracts are requirements contracts under which earnings can fluctuate. In addition, certain coal supply contracts can be terminated early, which would result in a reduction to future earnings.

~~All of the~~At all operating coal ~~mining subsidiaries~~mines other than MLMC, the Company is paid a management fee per ton of coal or heating unit (MMBtu) delivered. Each contract specifies the indices and mechanics by which fees change over time, generally in line with broad measures of U.S. inflation. The customers are ~~unconsolidated. The unconsolidated~~responsible for funding all mine operating costs, including final mine reclamation, and directly or indirectly providing all of the capital required to build and operate the mine. This contract structure eliminates exposure to spot coal ~~mining subsidiaries were formed to develop, construct and/or operate surface coal mines under long-term contracts and are capitalized primarily~~market price fluctuations while providing cash flow with minimal capital investment. Other than at Coyote Creek, debt financing provided by or supported by ~~their respective~~the customers ~~and~~is without recourse to NACCO and NACoal. See Note 17 to the Consolidated Financial Statements in this Form 10-K for further discussion of Coyote Creek's guarantees.

All operating coal mines other than MLMC meet the definition of a variable interest entity (“VIE”). In each case, NACCO is not the primary beneficiary of the VIE as it does not exercise financial control; therefore, NACCO does not consolidate the results of these operations within its financial statements. Instead, these contracts are accounted for as equity method investments. The income before income taxes associated with these VIEs is reported as Earnings of unconsolidated operations on the Consolidated Statements of Operations, and the Company’s investment is reported on the line Investments in Unconsolidated Subsidiaries in the Consolidated Balance Sheets. The mines that meet the definition of a VIE are referred to collectively as the “Unconsolidated Subsidiaries.” For tax purposes, the Unconsolidated Subsidiaries are included within the NACCO consolidated ~~entity because NACoal pays~~U.S. tax return; therefore, the income tax expense line on the Consolidated Statements of Operations includes income taxes related to these entities. See Note 17 to the Consolidated Financial Statements in this Form 10-K for further information on the Unconsolidated Subsidiaries.

The MLMC contract is the only operating coal contract in which the Company is responsible for all operating costs, capital requirements and ~~provides the capital for the mine.~~final mine reclamation; therefore, MLMC is consolidated within NACCO’s financial statements. MLMC sells coal to its customer at a contractually agreed-upon price which adjusts monthly, primarily based on changes in the level of established indices which reflect general U.S. inflation rates. ~~MLMC's~~Profitability at MLMC is affected by customer ~~KMRC RH, LLC until April 30, 2016~~demand for coal and Choctaw Generation Limited Partnership, LLLP subsequent to April 30, 2016, accounted for approximately 60%, 60% and 69% of NACoal's revenues for the years ended December 31, 2018, 2017 and 2016, respectively. Centennial, which ceased coal production at the end of 2015, is also a consolidated entity.

NAM primarily provides value-added services for independently owned limestone quarries and is generally reimbursed by its customers based on production costs plus a management fee per unit of limestone delivered. NAM's largest customer, Cemex Construction Materials of Florida, LLC ("Cemex"), accounted for approximately 20%, 18% and 16% of NACoal's revenues for the year ended December 31, 2018, 2017 and 2016, respectively. The financial results for NAM are includedchanges in the ~~consolidated mining operations or unconsolidated mining operations based on each entity's structure.~~indices that determine sales price and actual costs incurred. As diesel fuel is heavily weighted among the indices used to determine the coal sales price, the persistence of low diesel fuel prices can negatively affect earnings at MLMC.

MLMC delivers coal to the Red Hills Power Plant in Ackerman, Mississippi. The Red Hills Power Plant supplies electricity to the Tennessee Valley Authority ("TVA") under a long-term Power Purchase Agreement ("PPA"). MLMC’s contract with its customer runs through 2032. TVA’s power portfolio includes coal, nuclear, hydroelectric, natural gas and renewables. The decision of which power plants to dispatch is determined by TVA.

The ~~contracts with~~coal reserves at Coteau, Falkirk, Coyote, MLMC and Centennial Natural Resources ("Centennial") are owned or controlled by the ~~customers of~~Company. The coal reserves at all other mines are owned or controlled by the unconsolidated subsidiaries eliminate exposure to spot coal and aggregates market price fluctuations and are based on a "management fee" approach, whereby compensation includes reimbursement of all operating costs, plus a fee based on the amount of coal or limestone delivered. The fees earned adjust over time in line with various indices which reflect general U.S. inflation rates.

NACoal also provides coal handling, processing and drying services for a number of customers. For example, NoDak Energy Services, LLC ("NoDak") operates and maintains a coal processing facility for a customer's power plant. North American Coal Royalty Company ("NACRC") provides surface and mineral acquisition and lease maintenance services related to the Company's operations and owns the mineral rights of various properties throughout the U.S.

~~NACoal's total~~respective mine’s customer. Total coal reserves approximate 1.9 billion tons (including the unconsolidated coal mining subsidiaries), with approximately ~~1.0~~0.7 billion tons committed to customers pursuant to long-term contracts. At

The Company performs contemporaneous reclamation activities at each mine in the normal course of operations. Under all of the Unconsolidated Subsidiaries’ contracts, the customer has the obligation to fund final mine reclamation activities. Under

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certain contracts, the Unconsolidated Subsidiary holds the mine permit and is therefore responsible for final mine reclamation activities. To the extent the Unconsolidated Subsidiary performs such final reclamation, it is compensated for providing those services in addition to receiving reimbursement from customers for costs incurred.

NAMining Segment

The NAMining segment provides value-added contract mining and other services for producers of aggregates, lithium and other minerals. The segment is a primary platform for the Company’s growth and diversification of mining activities outside of the coal industry. NAMining provides contract mining services for independently owned mines and quarries, creating value for its customers by performing the mining aspects of its customers’ operations. This allows customers to focus on their areas of expertise: materials handling and processing, product sales and distribution. NAMining operates primarily at limestone quarries in Florida, but is focused on expanding outside of Florida and into mining materials other than limestone. In addition, NAMining will serve as exclusive contract miner for the Thacker Pass lithium project in northern Nevada.

NAMining utilizes both fixed price and management fee contract structures. Certain of the entities within the NAMining segment are VIEs and are accounted for under the equity method as Unconsolidated Subsidiaries. See Note 17 to the Consolidated Financial Statements in this Form 10-K for further information on the Unconsolidated Subsidiaries.

Minerals Management Segment

The Minerals Management segment derives income primarily by leasing its royalty and mineral interests to third-party exploration and production companies, and, to a lesser extent, other mining companies, granting them the rights to explore, develop, mine, produce, market and sell gas, oil, and coal in exchange for royalty payments based on the lessees' sales of those minerals.

During 2020, the Minerals Management segment acquired mineral interests in the Permian Basin in Texas and intends to make future acquisitions of mineral and royalty interests that meet the Company’s acquisition criteria as part of its growth strategy. The acquisition criteria includes building a blended portfolio of mineral and royalty interests (i) with new wells anticipated to come online within one to two years of investment, (ii) in areas with forecasted future development within five years after acquisition, or (iii) with existing producing wells further along the decline curve that will generate stable cash flow. In addition, acquisitions should extend the geographic footprint to diversify across multiple basins with a preliminary focus on the more oil-rich Permian and Williston basins and a secondary focus on other diversifying basins to increase regional exposure. While the current focus is on the acquisition of mineral and royalty interests, the Company would also consider investments in overriding royalty interests, non-participating royalty interests or non-operated working interests under certain circumstances.The current acquisition strategy does not contemplate any near-term working interest investments in which the Company would act as the operator.

Total consideration for the 2020 acquisitions of mineral and royalty interests was $14.2 million, of which $12.0 million closed in December ~~31, 2018, NACoal's operating mines consisted both~~2020, $2.0 million closed in November 2020 and $0.2 million closed in August 2020. The acquisitions include 65.5 thousand gross acres and 1.2 thousand net royalty acres. The Company did not acquire any mineral interests in 2019. Including the 2020 acquisitions, total mineral and royalty interests include approximately 109.2 thousand gross acres and 58.1 thousand net royalty acres.

The Company’s legacy royalty and mineral interests are located in Ohio (Utica and Marcellus shale natural gas), Louisiana (Haynesville shale and Cotton Valley formation natural gas), Texas (Cotton Valley and Austin Chalk formation natural gas), Mississippi (coal), Pennsylvania (coal, coalbed methane and Marcellus shale natural gas), Alabama (coal, coalbed methane and natural gas) and North Dakota (coal, oil and natural gas). The majority of ~~mines where~~ the Company’s legacy reserves were acquired ~~(whether~~as part of its historical coal mining operations.

The Minerals Management segment owns royalty interests, mineral interests, nonparticipating royalty interests, and overriding royalty interests.

•Royalty Interest. Royalty interests generally result when the owner of a mineral interest leases the underlying minerals to an exploration and production company pursuant to an oil and gas lease. Typically, the resulting royalty interest is a cost-free percentage of production revenues for minerals extracted from the acreage. Holders of royalty interests are generally not responsible for capital expenditures or lease operating expenses, but may be responsible for certain post-production expenses, and typically have no environmental liability. Royalty interests expire upon the expiration of the oil and gas lease.

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•Mineral Interest. Mineral interests are perpetual rights of the owner to explore, develop, exploit, mine, and/or produce any or all of the minerals lying below the surface of the property. The holder of a mineral interest has the right to lease the minerals to an exploration and production company.Upon the execution of an oil and gas lease, the lessee (the exploration and production company) becomes the working interest owner and the lessor (the mineral interest owner) has a royalty interest.

•Non-Participating Royalty Interest (“NPRIs”). NPRI is an interest in ~~fee~~oil and gas production which is created from the mineral estate. The NPRI is expense-free, bearing no operational costs of production. The term “non-participating” indicates that the interest owner does not share in the bonus, rentals from a lease, nor the right to participate in the execution of oil and gas leases.

•Overriding Royalty Interest (“ORRIs”). ORRIs are created by carving out the right to receive royalties from a working interest. Like royalty interests, ORRIs do not confer an obligation to make capital expenditures or ~~through leases)~~pay for lease operating expenses and ~~developed by NACoal,~~have limited environmental liability, however ORRIs may be calculated net of post-production expenses, depending on how the ORRI is structured. ORRIs that are carved out of working interests are linked to the same underlying oil and gas lease that created the working interest, and therefore, such ORRIs are typically subject to expiration upon the expiration or termination of the oil and gas lease.

The Company may own more than one type of mineral and royalty interest in the same tract of land. For example, where the Company owns an ORRI in a lease on the same tract of land in which it owns a mineral interest, the ORRI in that tract will relate to the same gross acres as ~~well~~the mineral interest in that tract.

The Minerals Management segment will benefit from the continued development of its mineral properties without the need for investment of additional capital once mineral and royalty interests have been acquired. The Minerals Management segment does not have any investments under which it would be required to bear the cost of exploration, production or development.

As an owner of royalty and mineral interests, the Company’s access to information concerning activity and operations of its royalty and mineral interests is limited. The Company does not have information that would be available to a company with oil and natural gas operations because detailed information is not generally available to owners of royalty and mineral interests. Consequently, the exact number of wells producing from or drilling on the Company’s mineral interests at a given point in time is not determinable. The following table sets forth information about Company’s best estimate of the number of gross and net productive wells as ~~mines where reserves~~of December 31, 2020:


	Gross	Net
Oil	279	0.2
Natural Gas	408	26.5
Total	687	26.7

Gross wells are the total wells in which an interest is owned.

Net wells are the sum of the fractional interest owned in gross wells.

The majority of the Company’s producing mineral and royalty interest acreage is, or ~~leased by~~in the future, can be pooled with third-party acreage to form pooled units. Pooling proportionately reduces the Company’s royalty interest in wells drilled in a pooled unit, and it proportionately increases the number of wells in which the Company has such reduced royalty interest.

Customers

The principal customers of the ~~mines and developed by NACoal.~~

The contracts under which certain of the unconsolidated subsidiaries operate provide that, under certain conditions, including default, the customer(s) involved may elect or be obligated to acquire the assets (subject to the liabilities) or the capital stock of the NACoal mining subsidiary for an amount effectively equal to book value. NACoal does not know of any conditions of default that currently exist.

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~~Sales, Marketing and Operations~~

~~The principal coal customers of NACoal~~Coal Mining segment are electric utilities, an independent power provider ~~producers~~and a producer of activated ~~carbon and a synfuels plant.~~ carbon.

The ~~total coal severed by mine (in millions~~principal customers of ~~tons)~~the NAMining segment are limestone producers. In addition, NAMining will serve as exclusive contract miner for the Thacker Pass lithium project in northern Nevada.

The Minerals Management segment generates income primarily from royalty-based lease payments from oil, gas and to a lesser extent, coal producers. The pricing of oil, gas and coal sales is primarily determined by supply and demand in the marketplace

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and can fluctuate considerably. As a royalty owner and non-operator, the Company has limited access to timely information, involvement, and operational control over the volumes of oil, gas and coal produced and sold and the terms and conditions on which such volumes are marketed and sold.

In 2020, two ~~years~~customers individually accounted for more than 10% of consolidated revenue. In 2019, two customers and an oil and gas lessee individually accounted for more than 10% of consolidated revenue. The following represents the revenue attributable to each of these entities as a percentage of consolidated revenue for those years:


	Percentage of Consolidated Revenue
Segment	2020		2019
Coal Mining customer	55	%	48	%
NAMining customer	19	%	21	%
Minerals Management lessee	less than 10%		12	%

The loss of either of these customers or the lessee could have a material adverse effect on the results of operations attributable to the applicable segment and on the Company's consolidated results of operations.

In addition to the customers listed above, the Company has certain subsidiaries that meet the definition of a VIE; therefore, NACCO does not consolidate the results of these operations within its financial statements. Instead, these contracts are accounted for as equity method investments. For the year ended December 31, 2020, the Coal Mining segment derived approximately 60% of the Earnings of Unconsolidated Operations from two customers, Basin Electric and GRE. GRE announced its intent to close Coal Creek station in 2022. The loss of either of these contracts could have a material adverse effect on the Earnings of Unconsolidated Operations of the Coal Mining segment and a material adverse effect on the Company's Consolidated Statements of Operations.

Competition

The Company's coal mines are ~~as follows:~~

2018 2017
Unconsolidated Mines
Coteau 14.2
14.7
Falkirk 8.2
7.2
Sabine 3.5
3.8
Bisti 3.4
3.7
Camino Real 2.2
2.4
Coyote Creek 2.5
2.1
Other 0.4
0.8
Consolidated Mines
Mississippi Lignite Mining Company 2.9
2.4
Total tons severed 37.3
37.1

~~Seasonality~~

~~NACoal has experienced limited variability in its results due~~directly adjacent to the ~~effect~~customer’s property, with economical delivery methods that include conveyor belt delivery systems linked to the customer’s facilities or short-haul rail systems. All of ~~seasonality; however, variations~~the mines in ~~coal demand can occur~~the Coal Mining segment are the most economical suppliers to each of their respective customers as a result of transportation advantages over competitors. In addition, the ~~timing of planned or unplanned outage days at NACoal's~~ customers' ~~facilities. Variations in~~facilities were specifically designed to use the coal demand can also occur as a result of changes in market prices of competing fuels such as natural gas, wind and solar power and demand for electricity, which can fluctuate based on changes in weather patterns.being mined.

~~Competition~~

The coal industry competes with other sources of energy, particularly oil, gas, hydro-electric power and nuclear power. In addition, it competes with subsidized sources of energy, primarily wind and solar. Among the factors that affect competition are the price and availability of oil and natural gas, environmental and related political considerations, the time and expenditures required to develop new energy sources, the cost of transportation, the cost of compliance with governmental regulations, the impact of federal and state energy policies, ~~and~~ the impact of subsidies on renewable ~~pricing.~~pricing and the Company's customers' dispatch decisions, which may take into account carbon dioxide emissions. The ability of ~~NACoal~~the Coal Mining Segment to maintain comparable levels of coal production at existing facilities and to market and develop its reserves will depend upon the interaction of these factors.

Electricity generating units are chosen to run primarily based on operating costs, of which fuel costs account for the largest share. Sustained low natural gas prices have resulted in an increase in electricity generated from natural gas leading to a decline in the use of coal-fired capacity in the United States. Natural gas-fired power plants have the most potential to continue to displace coal-fired electric baseload power generation in the near term. There also continues to be an increase in the amount of electricity generated by wind and solar. As an example, the Company estimates wind capacity in North Dakota has increased over 60% since 2015 to approximately 3,600 megawatts and wind developers have expressed an interest in building more than 3,000 megawatts of additional wind generation in North Dakota over the next several years. Federal and state mandates for increased use of electricity derived from renewable energy sources have also negatively affected demand for coal. Such mandates, combined with other incentives to use renewable energy sources, such as tax credits, make alternative fuel sources competitive with coal. The Taxpayer Certainty and Disaster Tax Relief Act of 2020 extended the production tax credit (“PTC”) under Section 45 of the Internal Revenue Code and the investment tax credit (“ITC”) under Section 48 of the Code. The PTC for wind was extended at the current phase-out level (60% of the otherwise allowable credits) for facilities where construction begins in 2021. The ITC for solar was extended at 26% for energy property where construction begins in 2021-2022 and at 22% where construction begins in 2023-2025. Solar energy property placed in service after December 31, 2025 receives only a 10% ITC.

Certain of the Coal Mining segment's customers continue to invest in efficiency and environmental upgrades to their facilities. Because the Coal Mining segment's customers’ power plants are competitive suppliers of electricity in their respective dispatch

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areas relative to other coal-fired generating units in those dispatch areas, the Company considers its surface coal mining operations to be well positioned relative to most other mines servicing coal-fired generating units.

Based on industry information, ~~NACoal~~the Company believes it was one of the ~~ten~~five largest coal producers in the U.S. in ~~2018~~2020 based on total coal tons produced.

~~Employees~~

NAMining faces competition from aggregates producers which choose to self-perform mining operations and from other mining companies.

In the Minerals Management segment, the oil and gas industry is intensely competitive; the Company primarily competes with companies and investors for the acquisition of oil and gas properties, some of which have greater resources and who may be able to pay more for productive oil and natural gas properties or to define, evaluate, bid for and purchase a greater number of properties than the Company’s financial or human resources permit. Additionally, many of the Minerals Management segment's competitors are, or are affiliated with, operators that engage in the exploration and production of their oil and gas properties, which allows them to acquire larger assets that include operated properties. Larger or more integrated competitors may be able to absorb the burden of existing, and any changes to, federal, state and local laws and regulations more easily than the Company can, which would adversely affect its competitive position. The integrated competitors may also have a better understanding of when minerals they acquire will be developed, as they are often the developer. The Minerals Management segment’s ability to acquire additional properties in the future will be dependent upon its ability to evaluate and select suitable properties and to consummate transactions in a highly competitive environment. In addition, because the Company has fewer financial and human resources than many companies in the oil and gas industry, the Company may be at a disadvantage in bidding for oil and natural gas properties.

Seasonality

The Company has experienced limited variability in its results due to the effect of seasonality; however, variations in coal demand can occur as a result of the timing and duration of planned or unplanned outages at customers' facilities. Variations in coal demand can also occur as a result of changes in market prices of competing fuels such as natural gas, wind and solar power and demand for electricity, which can fluctuate based on changes in weather patterns. The NAMining segment extracts a significant amount of the annual limestone produced in Florida. The Florida construction industry can be affected by the cyclicality of the economy, seasonal weather conditions and pandemics, all of which can result in variations in limestone demand.

In the Minerals Management segment, oil and natural gas wells have high initial production rates and follow a natural decline before settling into relatively stable, long-term production. Decline rates can vary due to factors like well depth, well length, formation pressure, and facility design. In addition to the natural production decline curve, royalty income can fluctuate favorably or unfavorably in response to a number of factors outside of the Company's control, including the number of wells being operated by third parties, fluctuations in commodity prices (primarily oil and natural gas), fluctuations in production rates associated with operator decisions, regulatory risks, the Company's lessees' willingness and ability to incur well-development and other operating costs, and changes in the availability and continuing development of infrastructure.

Human Capital

As of December 31, ~~2018, NACoal~~2020, the Company and its subsidiaries had approximately ~~2,400~~2,000 employees, including approximately ~~2,000~~1,500 employees at the Company’s unconsolidated mining operations, of which ~~approximately 255~~261 are represented by a union at Bisti. ~~NACoal~~NACCO believes ~~its current labor~~it has good relations with both union and non-union employees.

NACCO believes its employees are ~~satisfactory.~~critical to its success and invests in its employees by offering a competitive total rewards package that includes a combination of salaries and wages, health and wellness benefits, retirement benefits and educational benefits. The Company provides employee wages that are competitive and consistent with employee positions, skill levels, experience, knowledge and geographic location. The Company recognizes the sustainability of its culture and success is strengthened when employees are respected, motivated and engaged. The Company works to match employees with assignments to capitalize on the skills, talents and potential of each employee. The Company believes in hiring, engaging, developing and promoting people who are fully able to meet the demands of each position, regardless of race, color, religion, gender, sexual orientation, gender identity, national origin, age, veteran status or disability. Employee safety in the workplace is one of the Company’s core values. Hazards in the workplace are actively identified and management tracks incidents so remedial actions can be taken to improve workplace safety. The Company supports its local communities and is committed to helping them remain safe, healthy and resilient. The Company's past activities include corporate donations, volunteerism and education.

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Available Information

The Company makes its annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and any amendments to those reports available, free of charge, through its website, www.nacco.com, as soon as reasonably practicable after such material is electronically filed with, or furnished to, the Securities and Exchange Commission (“SEC”). The content of the Company's website is not incorporated by reference into this Form 10-K or in any other report or document filed with the SEC, and any reference to the Company's website is intended to be inactive textual references only.

Under Rule 12b-2 of the Exchange Act, the Company qualifies as a “smaller reporting company” because its public float as of the last business day of the Company’s most recently completed second quarter was less than $250 million. For as long as the Company remains a “smaller reporting company,” it may take advantage of certain exemptions from the SEC’s reporting requirements that are otherwise applicable to public companies that are not smaller reporting companies.

SEC Industry Guide 7 Information

The following map shows the Coal Mining segment's locations:

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The location, mine type, reserve data, coal quality characteristics, sales tonnage and contract expiration date for the ~~mines operated by NACoal~~Coal Mining segment were as follows:

COAL MINING OPERATIONS ON AN “AS RECEIVED” BASIS


		2018										2017											2020															2019
		Proven and Probable Reserves (a)(b)																					Proven and Probable Reserves (a)(b)
		Committed Under Contract	Uncommitted	Total	Tons Delivered (Millions)	Owned Reserves (%)			Leased Reserves (%)			Total Committed and Uncommitted (Millions of Tons)			Tons Delivered (Millions)		Contract Expires						Committed Under Contract			Uncommitted		Total		Tons Delivered (Millions)		Owned Reserves (%)			Leased Reserves (%)			Total Committed and Uncommitted (Millions of Tons)		Tons Delivered (Millions)		Contract Expires
Mine/Reserve	Type of Mine	(Millions of Tons)						Mine/Reserve			Type of Mine			(Millions of Tons)
Unconsolidated Mines																									Unconsolidated Mines
Freedom Mine (c)- The Coteau Properties Company	Surface Lignite	444.5	—	444.5	14.2		3	%		97	%		452.2			14.7			2022	(d)	Freedom Mine (c)- The Coteau Properties Company	Surface Lignite		438.0			—		438.0		12.6		3	%		97	%		432.8		13.5		2022		(d)
Falkirk Mine (c)- The Falkirk Mining Company	Surface Lignite	373.6	—	373.6	8.4	1	%		99	%		374.3			7.2		2045
South Hallsville No. 1 Mine (c)- The Sabine Mining Company	Surface Lignite	(e)	(e)	(e)	3.8	(e)			(e)			(e)			3.6		2035
Five Forks Mine (c)- Demery Resources Company, LLC	Surface Lignite	(e)	(e)	(e)	0.2	(e)			(e)			(e)			0.4		2030
Marshall Mine (c)- Caddo Creek Resources Company, LLC	Surface Lignite	(e)	(e)	(e)	0.2	(e)			(e)			(e)			0.2		2044
Eagle Pass Mine (c)- Camino Real Fuels, LLC	Surface Bituminous	(e)	(e)	(e)	2.1	(e)			(e)			(e)			2.4		2021
Liberty Mine (c)(f)- Liberty Fuels Company, LLC	Surface Lignite	(e)	(e)	(e)	—	(e)			(e)			(e)			0.4		2028	(f)
Falkirk Mine (c)(e)- The Falkirk Mining Company																			Falkirk Mine (c)(e)- The Falkirk Mining Company		Surface Lignite		12.0			358.6		370.6		7.2		1	%		99	%		375.7		7.4		2045		(e)
South Hallsville No. 1 Mine (c)(f)(g)- The Sabine Mining Company																			South Hallsville No. 1 Mine (c)(f)(g)- The Sabine Mining Company		Surface Lignite		3.4			97.3		100.7		1.9		(f)(g)			(f)(g)			102.6		2.6		2035		(g)
Five Forks Mine (c)(f)- Demery Resources Company, LLC																			Five Forks Mine (c)(f)- Demery Resources Company, LLC		Surface Lignite		4.9			—		4.9		0.2		(f)			(f)			4.9		0.1		2030
Marshall Mine (c)(f)(h)- Caddo Creek Resources Company, LLC																			Marshall Mine (c)(f)(h)- Caddo Creek Resources Company, LLC		Surface Lignite		(h)			(h)		(h)		0.1		(f)(h)			(f)(h)			19.2		0.2		(h)
Eagle Pass Mine (c)(f)(i)- Camino Real Fuels, LLC																			Eagle Pass Mine (c)(f)(i)- Camino Real Fuels, LLC		Surface Bituminous		(i)			(i)		(i)		0.3		(f)(i)			(f)(i)			15.6		1.5		(i)
Coyote Creek Mine (c)- Coyote Creek Mining Company, LLC	Surface Lignite	72.2	—	72.2	2.5	0	%		100	%		74.9			2.2		2040		Coyote Creek Mine (c)- Coyote Creek Mining Company, LLC		Surface Lignite		72.4			—		72.4		2.0		0	%		100	%		69.6		1.7		2040
Navajo Mine (c)- Bisti Fuels Company	Surface Sub-bituminous	(e)	(e)	(e)	4.1	(e)			(e)			(e)			3.7		2031
Navajo Mine (c)(j)- Bisti Fuels Company																			Navajo Mine (c)(j)- Bisti Fuels Company		Surface Sub-bituminous		(j)			(j)		(j)		4.2		(j)			(j)			(j)		5.0		2031
Consolidated Mines																			Consolidated Mines
Red Hills Mine- Mississippi Lignite Mining Company	Surface Lignite	105.8	125.5	231.3	3.0	33	%		67	%		234.4			2.4		2032		Red Hills Mine- Mississippi Lignite Mining Company		Surface Lignite		161.0			76.3		237.3		2.5		44	%		56	%		240.0		2.6		2032
Centennial Natural Resources	Surface Bituminous	—	50.0	50.0	—	30	%		70	%		51.4			—		(g)		Centennial Natural Resources		Surface Bituminous		17.0			—		17.0		—		40	%		60	%		43.0		—		(k)
Total Developed		996.1	175.5	1,171.6	38.5							1,187.2			37.2				Total Developed				708.7			532.2		1,240.9		31.0								1,303.4		34.6
Undeveloped Mines															.				Undeveloped Mines
North Dakota		—	243.7	243.7	—				100	%		243.7			—				North Dakota				—			221.4		221.4		—					100	%		243.9		—
Texas		—	222.5	222.5	—				100	%		222.5			—				Texas				—			210.3		210.3		—					100	%		222.5		—
Eastern (h)		—	41.0	41.0	—				100	%		15.3			—
Eastern (l)																			Eastern (l)				—			41.0		41.0		—					100	%		41.0		—
Mississippi		—	187.8	187.8	—				100	%		187.8			—				Mississippi				—			188.2		188.2		—					100	%		188.2		—
Total Undeveloped		—	695.0	695.0	—							669.3			—				Total Undeveloped				—			660.9		660.9		—								695.6		—
Total Developed/Undeveloped		996.1	870.5	1,866.6								1,856.5							Total Developed/Undeveloped				708.7			1,193.1		1,901.8										1,999.0

Average Coal Quality (As received)
Mine/Reserve Type of Mine
Coal Formation or
Coal Seam(s)

Average Seam
Thickness (feet)

Average
Depth (feet)
BTUs/lb
Sulfur
(%)

Ash
(%)
Moisture (%)
Unconsolidated Mines
Freedom Mine (c)-
The Coteau Properties Company Surface Lignite Beulah-Zap Seam 18
130
6,700
0.90 % 9 % 36 %
Falkirk Mine (c)-
The Falkirk Mining Company Surface Lignite
Hagel A&B, Tavis
Creek Seams
8
90
6,200
0.62 % 11 % 38 %
South Hallsville No. 1 Mine (c)-
The Sabine Mining Company Surface Lignite (e) (e)
(e)
(e)
(e)
(e)
(e)
Five Forks Mine (c)-
Demery Resources Company, LLC Surface Lignite (e) (e)
(e)
(e)
(e)
(e)
(e)
Marshall Mine (c)-
Caddo Creek Resources Company, LLC Surface Lignite (e) (e)
(e)
(e)
(e)
(e)
(e)
Eagle Pass Mine (c)-
Camino Real Fuels, LLC Surface Bituminous (e) (e)
(e)
(e)
(e)
(e)
(e)
Liberty Mine (c)(f)-
Liberty Fuels Company, LLC Surface Lignite (e) (e)
(e)
(e)
(e)
(e)
(e)
Coyote Creek Mine (c)-
Coyote Creek Mining Company, LLC Surface Lignite Beulah-Zap Seam 10
95
6,900
0.98 % 8 % 36 %
Navajo Mine (c)- Bisti Fuels Company Surface
Sub-bituminous (e) (e)
(e)
(e)
(e)
(e)
(e)
Consolidated Mines
Red Hills Mine-
Mississippi Lignite Mining Company Surface Lignite C, D, E, F, G, H Seams 3.6
150
5,200
0.60 % 14 % 43 %
Centennial Natural Resources Surface Bituminous Black Creek, New Castle, Mary Lee, Jefferson, American, Nickel Plate, Pratt Seams 1.75
178
13,226
2.00 % 10 % 4 %
Undeveloped Mines
North Dakota —
Fort Union Formation 13
130
6,500
0.8 % 8 % 38 %
Texas —
Wilcox Formation 5
120
6,800
1.0 % 16 % 30 %
Eastern —
Freeport & Kittanning Seams 4
400
12,070
3.3 % 12 % 3 %
Mississippi —
Wilcox Formation 5
130
5,200
0.6 % 13 % 44 %


~~(a)~~	Committed and uncommitted tons represent in-place estimates. The projected extraction loss is approximately 10% of the proven and probable reserves, except with respect to the Eastern Undeveloped Mines, in which case the projected extraction loss is approximately 50% of the proven and probable reserves.

~~(b)~~

NACoal’s reserve estimates are generally based on the entire drill hole database for each reserve, which was used to develop a geologic computer model using triangulation methods and inverse distance to the second power as an interpolator for NACoal's reserves. As such, all reserves are considered proven (measured) within NACoal’s reserve estimate. None of NACoal’s coal reserves have been reviewed by independent experts.


~~(c)~~	~~The contracts for these mines require the customer to cover the cost of the ongoing replacement and upkeep of the plant and equipment of the mine.~~


~~(d)~~	~~Although the term of the existing coal sales agreement terminates in 2022, the term may be extended for three additional periods of five years, or until 2037, at the option of Coteau.~~


~~(e)~~	~~The reserves are owned and controlled by the customer and, therefore, have not been listed in the table.~~


~~(f)~~	Liberty ceased all mining and delivery of lignite in 2017 and commenced mine reclamation in 2018. The contract term is expected to expire upon the completion of mine reclamation, currently anticipated to occur by 2028.


~~(g)~~	~~Centennial ceased active mining operations at the end of 2015.~~


~~(h)~~	The proven and probable reserves included in the table do not include coal that is leased to others. NACoal had 71.4 million tons and 99.1 million tons in 2018 and 2017, respectively, of Eastern Undeveloped Mines with leased coal committed under contract.

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(f)These reserves are owned or controlled by customers. The Company conducts activities to extract these customer-owned and controlled reserves pursuant to long-term service contracts.

(g)On November 5, 2020, AEP, Sabine Mine's customer, announced its intent to retire the Pirkey Plant in 2023 in order to comply with the U.S. Environmental Protection Agency’s Coal Combustion Residuals rule.

(h)On September 30, 2020, a division of Cabot Corporation, Marshall Mine's customer, entered into an agreement for the sale of the Marshall Mine to a subsidiary of AES. AES announced its intent to close the Marshall Mine. Caddo Creek entered into a contract with a subsidiary of AES to perform the required mine reclamation.

~~Table~~(i)The contract mining agreement between Camino Real and its customer, DRCP, terminated effective July 1, 2020 and resulted in the closure of ~~Contents~~Camino Real's Eagle Pass Mine.

(j)These reserves are owned or controlled by Bisti's customer and it controls proven and probable reserve data. Bisti’s customer declined to allow us to include the proven and probable reserve data in this Form 10-K. The Company conducts activities to extract these customer-owned and controlled reserves pursuant to a long-term service contract.

(k)Centennial ceased active mining operations at the end of 2015.

(l)The proven and probable reserves included in the table do not include coal that is leased to others. The Company had 69.0 million tons and 70.0 million tons in 2020 and 2019, respectively, of Eastern Undeveloped Mines with leased coal committed under contract.

Unconsolidated Mines

Freedom Mine — The Coteau Properties Company

The Freedom Mine generally produces between ~~13.5~~12.5 million and ~~14.5~~13.5 million tons of lignite coal annually. The mine started delivering coal in 1983. All production from the mine is delivered to Dakota Coal Company, a wholly owned subsidiary of Basin ~~Electric Power Cooperative.~~Electric. Dakota Coal Company then sells the coal to the ~~Great Plains~~ Synfuels Plant, Antelope Valley Station and Leland Olds Station, all of which are operated by affiliates of Basin Electric. The Synfuels Plant is a coal gasification plant that manufactures synthetic natural gas and produces fertilizers, solvents, phenol, carbon dioxide, and other chemical products for sale.

On November 5, 2020, Basin Electric ~~Power Cooperative.~~informed its employees and Coteau that it is considering changes that may result in modifications to its Synfuels Plant that could potentially reduce or eliminate coal requirements at the Synfuels Plant beginning in 2026. Basin Electric indicated that if it decides to proceed with any changes that could reduce or eliminate the use of coal, the feedstock change is not expected to occur before 2026. As a result, coal deliveries to the Synfuels Plant are expected to continue until at least 2026.

The Freedom Mine, operated by Coteau, is located approximately 90 miles northwest of Bismarck, North Dakota. The main entrance to the Freedom Mine is accessed by means of a paved road and is located on County Road 15. Coteau holds ~~292~~381 leases granting the right to mine approximately ~~32,884~~34,715 acres of coal interests and the right to utilize approximately ~~22,456~~23,575 acres of surface interests. In addition, Coteau owns in fee ~~33,365~~33,525 acres of surface interests and 4,107 acres of coal interests. Substantially all of the leases held by Coteau were acquired in the early 1970s and have been replaced with new leases or have lease terms for a period sufficient to meet Coteau’s contractual production requirements.

The reserves are located in Mercer County, North Dakota, starting approximately two miles north of Beulah, North Dakota. The center of the basin is located near the city of Williston, North Dakota, approximately 100 miles northwest of the Freedom Mine. The economically mineable coal in the reserve occurs in the Sentinel Butte Formation, and is overlain by the Coleharbor Formation. The Coleharbor Formation unconformably overlies the Sentinel Butte Formation. It includes all of the unconsolidated sediments resulting from deposition during glacial and interglacial periods. Lithologic types include gravel, sand, silt, clay and till. The modified glacial channels are in-filled with gravels, sands, silts and clays overlain by till. The coarser gravel and sand beds are generally limited to near the bottom of the channel fill. The general stratigraphic sequence in the upland portions of the reserve area consists of till, silty sands and clayey silts.

Falkirk Mine — The Falkirk Mining Company

The Falkirk Mine ~~generally produces between 7 million and 8 million tons of lignite~~started delivering coal ~~annually~~in 1978 primarily for the Coal Creek Station, an electric power generating station owned by ~~Great River Energy. The mine started delivering coal in 1978. Commencing in the second half of~~GRE. In 2014, Falkirk began delivering coal to Spiritwood Station, another electric power generating station owned by ~~Great River Energy. Annual deliveries~~GRE.

On May 7, 2020, GRE announced its intent to retire the Coal Creek Station power plant in the second half of 2022 and modify the Spiritwood Station ~~have averaged~~power plant to be fueled by natural gas. The Falkirk Mine delivered 7.2 million and 7.4 million tons of lignite coal, primarily for the Coal Creek Station, during 2020 and 2019, respectively. The terms of the contract between ~~200,000~~the Company and ~~400,000 tons.~~GRE specify that GRE is responsible for all costs related to mine closure, including but not limited to, final mine reclamation costs, post-retirement medical benefits and pension costs with respect to Falkirk employees.

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The Falkirk Mine, operated by Falkirk, is located approximately 50 miles north of Bismarck, North Dakota on a paved access road off U.S. Highway 83. Falkirk holds ~~304~~311 leases granting the right to mine approximately ~~44,800~~43,084 acres of coal interests and the right to utilize approximately ~~23,670~~24,061 acres of surface interests. In addition, Falkirk owns in fee ~~39,447~~41,275 acres of surface interests and ~~1,270~~1,789 acres of coal interests. Substantially all of the leases held by Falkirk were acquired in the early 1970s with initial terms that have been further extended by the continuation of mining operations.

The reserves are located in McLean County, North Dakota, from approximately nine miles northwest of the town of Washburn, North Dakota to four miles north of the town of Underwood, North Dakota. Structurally, the area is located on an intercratonic basin containing a thick sequence of sedimentary rocks. The economically mineable coals in the reserve occur in the Sentinel Butte Formation and the Bullion Creek Formation and are unconformably overlain by the Coleharbor Formation. The Sentinel Butte Formation conformably overlies the Bullion Creek Formation. The general stratigraphic sequence in the upland portions of the reserve area (Sentinel Butte Formation) consists of till, silty sands and clayey silts, main hagel lignite bed, silty clay, lower lignite of the hagel lignite interval and silty clays. Beneath the Tavis Creek, there is a repeating sequence of silty to sand clays with generally thin lignite beds.

South Hallsville No. 1 Mine — The Sabine Mining Company

The South Hallsville No. 1 Mine ~~generally produces between 3 million and 4 million tons of lignite coal annually. The mine~~ started delivering coal in 1985. All production from the mine is delivered to Southwestern Electric Power Company's ("SWEPCO") Henry W. Pirkey ~~Plant.~~Plant (the "Pirkey Plant"). SWEPCO is an American Electric Power (“AEP”) company.

On November 5, 2020, AEP announced it intends to retire the Pirkey Plant in 2023 in order to comply with the U.S. Environmental Protection Agency’s Coal Combustion Residuals rule. The South Hallsville No. 1 Mine delivered 1.9 million and 2.6 million tons to the Pirkey Plant in 2020 and 2019, respectively. During the third quarter of 2020, SWEPCO reduced its expected future annual delivery requirements to be between 1.4 million and 1.7 million tons. The terms of the contract between the Company and SWEPCO specify that SWEPCO is responsible for all costs related to mine closure, including but not limited to, final mine reclamation costs, post-retirement medical benefits and pension costs with respect to Sabine employees.

The South Hallsville No. 1 Mine, operated by Sabine, is located approximately 150 miles east of Dallas, Texas on FM 968. The entrance to the mine is by means of a paved road. Sabine has no title, claim, lease or option to acquire any of the reserves at the South Hallsville No. 1 Mine. Southwestern Electric Power Company controls all of the reserves within the South Hallsville No. 1 Mine.

Five Forks Mine — Demery Resources Company, LLC

The Five Forks Mine, operated by Demery, began delivering coal in 2012 and is located approximately three miles north of Creston, Louisiana on State Highway 153. Access to the Five Forks Mine is by means of a paved road. Demery has no title,

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claim, lease or option to acquire any of the reserves at the Five Forks Mine. Demery's customer, Five Forks Mining, LLC, controls all of the reserves within the Five Forks Mine.

Marshall Mine — Caddo Creek Resources Company, LLC

On September 30, 2020, Caddo Creek's customer, a division of Cabot Corporation, entered into a long-term supply agreement with a subsidiary of AES as well as an agreement for the sale of the Marshall Mine to a subsidiary of AES. AES announced its intent to close the Marshall Mine. Caddo Creek entered into a contract with a subsidiary of AES to perform the required mine reclamation. The Marshall Mine ~~operated by Caddo Creek, began delivering coal in 2014~~delivered 0.1 million and is located approximately ten miles south of Marshall, Texas on FM-1186. Access to the Marshall Mine is by means of a paved road. Caddo Creek has no title, claim, lease or option to acquire any of the reserves at the Marshall Mine. Marshall Mine, LLC controls all of the reserves within the Marshall Mine.0.2 million tons during 2020 and 2019, respectively.

Eagle Pass Mine — Camino Real Fuels, LLC

The Eagle Pass Mine, operated by Camino Real, began delivering coal in 2015 to Camino Real's customer, Dos Republicas Coal ~~Partnership.~~Partnership ("DRCP"). The contract mining agreement between Camino Real and DRCP terminated effective July 1, 2020 as a result of the unexpected termination by Comisión Federal de Electricidad (“CFE”) of its coal supply contract with an affiliate of DRCP. The termination of the contract between CFE and DRCP eliminated DRCP’s need for coal from Camino Real's Eagle Pass Mine, and resulted in mine closure. Mine reclamation is the responsibility of DRCP. Camino Real has no legal obligation to perform mine reclamation. The Eagle Pass Mine ~~produces between 1.5~~delivered 0.3 million and ~~2.5~~1.6 million tons ~~of bituminous coal annually.~~

Eagle Pass Mine is located approximately six miles north of Eagle Pass, Texas on State Highway 1588. Access to the Eagle Pass Mine is by means of a paved road. Camino Real has no title, claim, lease or option to acquire any of the reserves at the Eagle Pass Mine. Dos Republicas Coal Partnership controls all of the reserves within the Eagle Pass Mine.

~~Liberty Mine — Liberty Fuels Company, LLC~~

~~In 2017, Southern Company~~during 2020 and its subsidiary, Mississippi Power, suspended operations involving the coal gasifier portion of the Kemper County energy facility. Liberty was the sole supplier of coal to fuel the gasifier under its contract with Mississippi Power. In the first quarter of 2018, Mississippi Power instructed Liberty to permanently cease all mining and delivery of lignite and to commence mine reclamation. The terms of the contract specify that Mississippi Power is responsible for all mine closure costs. Under the contract, Liberty is specified as the contractor to complete final mine closure and receives compensation for these services.

The Liberty Mine is located approximately 20 miles north of Meridian, Mississippi off State Highway 493. With the exception of nine leases granting the right to mine 25.9 acres of coal interests and the right to utilize 25.9 acres of surface interests, Liberty has no title, claim, lease or option to acquire any of the reserves at the Liberty Mine, which are controlled by Mississippi Power.2019, respectively.

Coyote Creek Mine - Coyote Creek Mining Company, LLC

In ~~the second quarter of~~ 2016, the Coyote Creek Mine began delivering coal to the Coyote Station owned by Otter Tail Power Company, Northern Municipal Power Agency, Montana-Dakota Utilities Company and Northwestern Corporation. The Coyote Creek Mine generally produces approximately ~~1.8~~1.5 million to 2.5 million tons of lignite coal annually when Coyote Station is operating at anticipated levels.

Table of Contents

The Coyote Creek Mine is located approximately 70 miles northwest of Bismarck, North Dakota. The main entrance to the Coyote Creek Mine is accessed by means of a four-mile paved road extending west off of State Highway 49. Coyote Creek holds a sublease to 8586 leases granting the right to mine approximately ~~7,809~~8,129 acres of coal interests and the right to utilize approximately 15,168 acres of surface interests. In addition, Coyote Creek Mine owns in fee 160 acres of surface interests and has four easements to conduct coal mining operations on approximately 352 acres.

The reserves are located in Mercer County, North Dakota, starting approximately six miles southwest of Beulah, North Dakota. The center of the basin is located near the city of Williston, North Dakota, approximately 110 miles northwest of the Coyote Creek Mine. The economically mineable coal in the reserve occurs in the Sentinel Butte Formation, and is overlain by the Coleharbor Formation. The Coleharbor Formation unconformably overlies the Sentinel Butte Formation. It includes all of the unconsolidated sediments resulting from deposition during glacial and interglacial periods. Lithologic types include gravel, sand silt, clay and till. The modified glacial channels are in-filled with gravels, sands, silts and clays overlain by till. The coarser gravel and sand beds are generally limited to near the bottom of the channel fill. The general stratigraphic sequence in the upland portions of the reserve area consists of till, silty sands and clayey silts.

~~Table of Contents~~

Navajo Mine - Bisti Fuels Company, LLC

~~In January 2017,~~ Bisti ~~became~~has been the contract miner at ~~NTEC's existing mine and anticipates making annual coal deliveries of~~Navajo Transitional Energy Company's ("NTEC's") Navajo Mine since 2017. Bisti generally delivers approximately 5.0 million tons ~~when~~of sub-bituminus coal to the Four Corners Power Plant when the plant is operating at anticipated ~~levels, which is currently anticipated to occur in 2019.~~levels.

The Navajo Mine ~~operated by Bisti,~~ is located approximately 25 miles southwest of Farmington, New Mexico, off Indian Service Road 3005, and is on the Navajo Nation. Access to the Navajo Mine is by means of a paved road. Bisti has no title, claim, lease or option to acquire any of the reserves at Navajo Mine. NTEC, a wholly-owned limited liability company of The Navajo Nation, controls all of the reserves within the Navajo Mine.

Consolidated Mines

Red Hills Mine — Mississippi Lignite Mining Company

The Red Hills Mine generally produces between 2 million and 3 million tons of lignite coal annually. The Red Hills Mine started delivering coal in 2000. All production from the mine is delivered to its customer's Red Hills Power Plant.

The Red Hills Mine, operated by MLMC, is located approximately 120 miles northeast of Jackson, Mississippi. The entrance to the mine is by means of a paved road located approximately one mile west of Highway 9. MLMC owns in fee approximately ~~6,448~~7,061 acres of surface interest and ~~3,908~~4,162 acres of coal interests. MLMC holds leases granting the right to mine approximately ~~6,445~~5,953 acres of coal interests and the right to utilize approximately ~~5,868~~5,850 acres of surface interests. MLMC holds subleases under which it has the right to mine approximately ~~1,054~~1,541 acres of coal interests. The majority of the leases held by MLMC were originally acquired during the mid-1970s to the early 1980s with terms extending 50 years, many of which can be further extended by the continuation of mining operations.

The lignite deposits of the Gulf Coast are found primarily in a narrow band of strata that outcrops/subcrops along the margin of the Mississippi Embayment. The potentially exploitable tertiary lignites in Mississippi are found in the Wilcox Group. The outcropping Wilcox is composed predominately of non-marine sediments deposited on a broad flat plain.

Centennial Natural Resources

Centennial ceased active mining operations at the end of 2015. Centennial and its affiliate, ~~NACRC,~~North American Coal Royalty Company, own in fee approximately ~~5,648~~5,602 acres of coal interests and approximately ~~2,331~~2,323 acres of surface interests in Alabama. Centennial holds leases in Alabama granting the right to mine approximately ~~7,874~~3,907 acres of coal interests and the right to utilize approximately ~~9,479~~4,698 acres of surface interests. The majority of the leases held by Centennial were originally acquired between 2000 and 2012 with terms that can be extended by the continuation of mining activities.

~~North American Coal Royalty Company~~

No operating mines currently exist on the undeveloped coal reserves in Alabama, Mississippi, North Dakota, Ohio, Pennsylvania and Texas. NACRC receives certain royalty payments based on the sale of oil and natural gas, primarily in Louisiana and Ohio, and, to a lesser extent, for coal located in Alabama, Mississippi, North Dakota and Pennsylvania, primarily extracted by third parties.

913

2018 2017 Change
Financing activities:
Net reductions to long-term debt and revolving credit agreements $ (46,729 ) $ (36,047 ) $ (10,682 )
Cash dividends paid (4,578 ) (6,682 ) 2,104
Cash dividends received from HBBHC —
38,000
(38,000 )
Other (1,271 ) (1,324 ) 53
Net cash used for financing activities of continuing operations $ (52,578 ) $ (6,053 ) $ (46,525 )

The change in net cash used for financing activities of continuing operations was primarily from reductions in the cash dividends received from HBBHC and the repayment of borrowings on NACoal's revolving credit facility during 2018 compared with 2017. On September 28, 2017, prior to the spin-off, HBBHC paid NACCO a one-time $35.0 million cash dividend. This payment was in addition to $3.0 million in dividends HBBHC paid to NACCO in the first six months of 2017.

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~~Item 7.~~	~~MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS~~

Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

NACCO INDUSTRIES, INC. AND SUBSIDIARIES

(Tabular Amounts in Thousands, Except Per Share and Percentage Data)

The change in net cash provided by financing activities was primarily due to increased borrowings during 2020 compared with 2019.

Financing Activities

Financing arrangements are obtained and maintained at the subsidiary level. NACCO has not guaranteed any borrowings of NACoal. The borrowing agreements at NACoal allow for the payment to NACCO of dividends and advances under certain circumstances. Dividends (to the extent permitted by NACoal's borrowing agreement) and management fees are the primary sources of cash for NACCO and enable the Company to pay dividends to stockholders.

The Company believes funds available from cash on hand, the NACoal Facility and operating cash flows will provide sufficient liquidity to meet its operating needs and commitments arising during the next twelve months and until the expiration of the NACoal Facility.

NACoal has an unsecured revolving line of credit of up to $150.0 million (the “NACoal Facility”) that expires in August 2022. Borrowings outstanding under the NACoal Facility were ~~$4.0~~$30.0 million at December 31, ~~2018.~~2020. At December 31, ~~2018,~~2020, the excess availability under the NACoal Facility was ~~$144.5~~$117.0 million, which reflects a reduction for outstanding letters of credit of ~~$1.5~~$3.0 million.

The NACoal Facility has performance-based pricing, which sets interest rates based upon NACoal achieving various levels of debt to EBITDA ratios, as defined in the NACoal Facility. Borrowings bear interest at a floating rate plus a margin based on the level of debt to EBITDA ratio achieved. The applicable margins, effective December 31, ~~2018,~~2020, for base rate and LIBOR loans were 0.75% and 1.75%, respectively. The NACoal Facility has a commitment fee which is based upon achieving various levels of debt to EBITDA ratios. The commitment fee was 0.30% on the unused commitment at December 31, ~~2018.~~2020. The weighted average interest rate applicable to the NACoal Facility at December 31, ~~2018~~2020 was ~~4.28%~~1.88% including the floating rate margin.

The NACoal Facility contains restrictive covenants, which require, among other things, NACoal to maintain a maximum debt to EBITDA ratio of 3.00 to 1.00 and an interest coverage ratio of not less than 4.00 to 1.00. The NACoal Facility provides the ability to make loans, dividends and advances to NACCO, with some restrictions based on maintaining a maximum debt to EBITDA ratio of 2.00 to 1.00, or if greater than 2.00 to 1.00, a Fixed Charge Coverage Ratio of 1.10 to 1.00, in conjunction with maintaining unused availability thresholds of borrowing capacity, as defined in the NACoal Facility, of $15.0 million. At December 31, ~~2018,~~2020, NACoal was in compliance with all financial covenants in the NACoal Facility.

~~Capital Expenditures~~

~~Following is a table which summarizes actual and planned capital expenditures (in millions):~~

Planned Actual Actual
2019 2018 2017
NACCO $ 22.6
$ 20.9
$ 15.7

Planned expenditures for 2019 primarily include land, mine machinery and equipment at MLMC and draglines and mine machinery and equipment at NAM. These expenditures are expected to be funded from internally generated funds and bank borrowings. Capital expenditures for 2018 and 2017 are discussed above under Cash Flows.

~~Table of Contents~~


~~Item 7.~~	~~MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS~~

~~NACCO INDUSTRIES, INC. AND SUBSIDIARIES~~

~~(Tabular Amounts in Thousands, Except Per Share and Percentage Data)~~

~~Capital Structure~~

~~NACCO's consolidated capital structure is presented below:~~

December 31
2018 2017 Change
Cash and cash equivalents $ 85,257
$ 101,600
$ (16,343 )
Other net tangible assets
156,703
153,791
2,912
Intangible assets, net 40,516
43,554
(3,038 )
Net assets 282,476
298,945
(16,469 )
Total debt (11,021 ) (58,146 ) 47,125
Closed mine obligations (20,751 ) (21,351 ) 600
Total equity $ 250,704
$ 219,448
$ 31,256
Debt to total capitalization 4 % 21 % (17 )%

The decrease in net assets was the result of the change in cash and cash equivalents, primarily due to a reduction in borrowings on NACoal's revolving credit facility during 2018, payments of dividends to shareholders and stock repurchases, and the amortization of intangible assets during 2018.

~~Contractual Obligations, Contingent Liabilities and Commitments~~

~~Following is a table which summarizes the contractual obligations of the Company as of December 31, 2018:~~

Payments Due by Period
Contractual Obligations Total 2019 2020 2021 2022 2023 Thereafter
NACoal Facility $ 4,000
$ 4,000
$ —
$ —
$ —
$ —
$ —
Variable interest payments on NACoal Facility 86
86
—
—
—
—
—
Other debt 8,929
567
567
567
567
567
6,094
Other interest 106
29
29
29
19
—
—
Capital lease obligations, including principal and interest 458
437
21
—
—
—
—
Operating leases 21,387
2,387
2,174
2,092
2,116
1,659
10,959
Purchase and other obligations 42,101
42,101
—
—
—
—
—
Total contractual cash obligations $ 77,067
$ 49,607
$ 2,791
$ 2,688
$ 2,702
$ 2,226
$ 17,053

An event of default, as defined in the NACoal Facility and the Company’s lease agreements, could cause an acceleration of the payment schedule. No such event of default has occurred or is anticipated to occur.

NACoal’s variable interest payments are calculated based upon NACoal’s anticipated payment schedule and the December 31, ~~2018~~2020 base rate and applicable margins, as defined in the NACoal Facility. A 1/8% increase in the base rate would increase NACoal’s estimated total annual interest payments on the NACoal Facility by less than $0.1 million.

Expenditures for property, plant and equipment and mineral interests

Following is a table which summarizes actual and planned expenditures (in millions):


	Planned		Actual		Actual
	2021		2020		2019
NACCO	$	46.6	$	44.4	$	24.7

Planned expenditures for 2021 are expected to be approximately $46 million, primarily consisting of $27 million in the Coal Mining segment, $10 million in the Minerals Management segment and $9 million in the NAMining segment.

In ~~February 2016,~~ the ~~FASB issued ASU 2016-02, “Leases (Topic 842)," which is codified~~Coal Mining segment, elevated levels of expected capital expenditures through 2021 are primarily related to spending at MLMC as it develops a new mine area. In the Minerals Management segment, expected expenditures in ASC 842, Leases (“ASC 842”) and supersedes current lease guidance in ASC 840. ASC 842 requires a lessee to recognize a right-of-use asset and a corresponding lease liability for substantially all leases beginning January 1, 2019 for NACCO. See Note 2 to the Consolidated Financial Statements in this Form 10-K for further discussion of the Company's adoption of Topic 842.

~~The purchase and other obligations~~2021 are primarily for ~~accounts payable, open purchase orders~~the acquisition of mineral interests. In the NAMining segment, expected capital expenditures in 2021 are primarily for the acquisition, relocation and ~~accrued payroll and incentive compensation.~~refurbishment of draglines.

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~~Item 7.~~	~~MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS~~

Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

NACCO INDUSTRIES, INC. AND SUBSIDIARIES

(Tabular Amounts in Thousands, Except Per Share and Percentage Data)

Expenditures are expected to be funded from internally generated funds and/or bank borrowings.

Capital Structure

NACCO's consolidated capital structure is presented below:


	December 31
	2020			2019			Change
Cash and cash equivalents	$	88,450		$	122,892		$	(34,442)
Other net tangible assets	244,907			174,465			70,442
Intangible assets, net	35,330			37,902			(2,572)
Net assets	368,687			335,259			33,428
Total debt	(46,465)			(24,943)			(21,522)
Closed mine obligations	(21,598)			(20,924)			(674)
Total equity	$	300,624		$	289,392		$	11,232
Debt to total capitalization	13		%	8		%	5		%

The increase in other net tangible assets was primarily due to increases in Property, plant and equipment as well as payments made for deferred compensation and accrued incentive compensation during 2020.

Contractual Obligations, Contingent Liabilities and Commitments

NACCO adopted ASU 2016-02, “Leases (Topic 842)," on January 1, 2019. ASC 842 required a lessee to recognize a right-of-use asset and a corresponding lease liability for substantially all leases. See Note 10 to the Consolidated Financial Statements in this Form 10-K for further information on the Company's leases.

Pension and postretirement funding can vary significantly each year due to plan amendments, changes in the market value of plan assets, legislation and the Company’s decisions to contribute above the minimum regulatory funding requirements. ~~As a result, pension and postretirement funding has not been included in the table above.~~ The Company does not expect to contribute to its pension plan in ~~2019.~~2021. NACCO maintains one supplemental retirement plan that pays monthly benefits to participants directly out of corporate funds and expects to pay benefits of approximately ~~$0.6~~$0.5 million in ~~2019~~2021 and approximately $0.5 million per year from ~~2020~~2022 through ~~2028.~~2030. Benefit payments beyond that time cannot currently be estimated. All other pension benefit payments are made from assets of the pension plan. NACCO also expects to make payments related to its other postretirement plans of approximately $0.2 million per year from ~~2019~~2021 through ~~2028.~~2030. Benefit payments beyond that time cannot currently be estimated.

Not included in the table above, the Company has a long-term liability of approximately $1.2 million for unrecognized tax benefits, including interest and penalties, as of December 31, 2018. At this time, the Company is unable to make a reasonable estimate of the timing of payments due to, among other factors, the uncertainty of the timing and outcome of its tax audits.

NACCO has asset retirement ~~obligations that are not included in the table above due to the uncertainty of the timing of payments to settle this liability.~~obligations. See Note 7 to the Consolidated Financial Statements in this Form 10-K for further discussion of the Company's asset retirement obligations.

NACCO has unrecognized tax benefits, including interest and penalties. See Note 13 to the Consolidated Financial Statements in this Form 10-K for further discussion of the Company's income taxes.

NACoal is a party to certain guarantees related to Coyote ~~Creek that are not included in the table above as the~~Creek. The Company believes that the likelihood of NACoal’s future performance under the guarantees is remote, and no amounts related to these guarantees have been recorded. See Note 17 to the Consolidated Financial Statements in this Form 10-K for further discussion of the Company's guarantees.

Also not included in the table above, NACCO's Board of Directors approved the termination of certain nonqualified deferred compensation plans during 2018. As a result, NACCO expects to distribute the December 31, 2018 account balances of $12.9 million in 2020.

~~Off Balance Sheet Arrangements~~

~~The Company has not entered into any off balance sheet financing arrangements, other than operating leases, which are disclosed in the contractual obligations table above.~~

ENVIRONMENTAL MATTERS

The Company is affected by the regulations of numerous agencies, particularly the Federal Office of Surface Mining, the U.S. Environmental Protection Agency, the U.S. Army Corps of Engineers and associated state regulatory authorities. In addition, ~~NACoal and Bellaire~~the Company closely ~~monitor~~monitors proposed legislation and regulation concerning SMCRA, CAA, ~~CPP,~~ACE, CWA, RCRA, CERCLA and other regulatory actions.

Compliance with these increasingly stringent regulations could result in higher expenditures for both capital improvements and operating costs. The Company’s policies stress environmental responsibility and compliance with these regulations. Based

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Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

NACCO INDUSTRIES, INC. AND SUBSIDIARIES

(Tabular Amounts in Thousands, Except Per Share and Percentage Data)

on current information, management does not expect compliance with these regulations to have a material adverse effect on the Company’s financial condition or results of operations. See Item 1 in Part I of this Form 10-K for further discussion of these matters.

~~THE NORTH AMERICAN~~ SEGMENT RESULTS

COAL ~~CORPORATION~~MINING SEGMENT

~~NACoal operates surface mines that~~FINANCIAL REVIEW

Tons of coal delivered by the Coal Mining segment were as follows for the years ended December 31 (in millions):


	2020	2019







Unconsolidated mines	28.5	32.0

Consolidated mines	2.5	2.6
Total tons delivered	31.0	34.6

Total coal reserves were as follows at December 31:


	2020(1)	2019(1)
	(in billions of tons)
Unconsolidated mines	1.0	1.0
Consolidated mines	0.9	1.0
Total coal reserves	1.9	2.0

(1)Amount includes 0.1 billion of coal reserves owned or controlled by customers as of both December 31, 2020 and December 31, 2019. The Company conducts activities to extract these customer-owned and controlled reserves.

The results of operations for the Coal Mining segment were as follows for the years ended December 31:


	2020		2019
Revenues	$	72,088	$	68,701
Cost of sales	70,452		65,430
Gross profit	1,636		3,271
Earnings of unconsolidated operations(a)	56,584		60,678
Selling, general and administrative expenses	30,216		27,394
Amortization of intangible assets	2,572		2,614
Gain on sale of assets	(4)		(179)
Operating profit	$	25,436	$	34,120

(a) See Note 17 to the Consolidated Financial Statements in this Form 10-K for a discussion of the Company's unconsolidated subsidiaries, including summarized financial information.

2020 Compared with 2019

Revenues increased 4.9% in 2020 compared with 2019 primarily due to an increase in price per ton attributable to reimbursable costs at MLMC. The sales price at MLMC is index-based and includes adjustments for coal quality and reimbursable costs.

Also contributing to the increase is reclamation revenue from Caddo Creek. On September 30, 2020, Caddo Creek's customer, a division of Cabot Corporation, entered into a long-term supply coal primarily to power generation companies under long-term contracts, and provides other value-added services to natural resource companies. In addition, its NAM business operates and maintains draglines and other equipment under contractsagreement with ~~sellers~~a subsidiary of ~~aggregates.~~

~~Coal is surface mined from NACoal's mines in North Dakota, Texas, Mississippi, Louisiana and on~~Advanced Emissions Solutions (“AES”) as well as an agreement for the ~~Navajo Nation in New Mexico. NACoal has~~sale of the ~~following operating coal mining subsidiaries: Bisti Fuels Company, LLC ("Bisti"),~~Marshall Mine, operated by Caddo Creek, Resources Company, LLC (“Caddo Creek”), Camino Real Fuels, LLC (“Camino Real”), The Coteau Properties Company (“Coteau”), Coyote Creek Mining Company, LLC (“Coyote Creek”), Demery Resources Company, LLC (“Demery”), The Falkirk Mining Company (“Falkirk”), Mississippi Lignite Mining Company (“MLMC”) and The Sabine Mining Company

to a subsidiary of

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~~Item 7.~~	~~MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS~~

Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

NACCO INDUSTRIES, INC. AND SUBSIDIARIES

(Tabular Amounts in Thousands, Except Per Share and Percentage Data)

AES. AES announced its intent to close the Marshall Mine. Caddo Creek entered into a contract with a subsidiary of AES to perform the required mine reclamation. As a result of these changes, Caddo Creek financial results are now consolidated within the Coal Mining segment.

~~(“Sabine”). Liberty Fuels Company, LLC ("Liberty") ceased all mining~~

The following table identifies the components of change in operating profit for 2020 compared with 2019:


	Operating Profit
2019	$	34,120
Increase (decrease) from:
Earnings of unconsolidated operations	(4,094)
MLMC 's inventory impairment charge	(1,973)
Gross profit, excluding revisions to Centennial's asset retirement obligation and MLMC's inventory impairment charge	(1,741)
Voluntary separation program ("VSP") charge	(1,475)
Selling, general and administrative expenses, excluding VSP charge	(1,347)
Net gain on sale of assets	(175)
Revisions to Centennial's asset retirement obligation	2,079
Amortization of intangibles	42
2020	$	25,436

Operating profit decreased $8.7 million in 2020 compared with 2019. The change in operating profit was primarily due to:

•A decrease in earnings of unconsolidated operations, mainly due to a reduction in tons delivered as a result of decreases in customer demand and ~~delivery of lignite in 2017 and commenced mine reclamation in 2018.~~

~~All~~the termination of the ~~operating coal~~Camino Real contract mining ~~subsidiaries other than~~agreement during 2020.

•A $2.0 million inventory impairment charge at MLMC ~~are unconsolidated (collectively~~as mining costs exceeded net realizable value.

•A reduction in gross profit due to wind-down and employee-related expenses at Camino Real.

•During the ~~"Unconsolidated Mines"). Centennial Natural Resources, LLC ("Centennial"), which ceased coal production at~~fourth quarter of 2020, the ~~end~~Company implemented a voluntary separation program for employees who met certain age and service requirements to reduce overall headcount. As a result of ~~2015, is also~~this program, the Coal Mining segment recorded a ~~consolidated entity.~~

~~NAM primarily provides value-added services for independently owned limestone quarries and is reimbursed by its customers based on production costs plus a management fee per unit~~charge of ~~limestone delivered. The financial results for NAM are included in the consolidated mining operations or unconsolidated mining operations based on each entity's structure.~~

NACoal also provides coal handling, processing and drying services for a number of customers. For example, NoDak Energy Services, LLC ("NoDak"), operates and maintains a coal processing facility for a customer's power plant. North American Coal Royalty Company ("NACRC") provides surface and mineral acquisition and lease maintenance services$1.5 million related to one-time termination benefits.

•An increase in selling, general and administrative expenses due to a $1.1 million asset impairment charge, higher professional fees, outside service fees and insurance costs, partially offset by lower employee-related expenses.

•The favorable net change in Centennial's asset retirement obligation is attributable to the ~~Company's operations and owns~~ absence of a $2.5 million unfavorable revision that occurred during 2019, partially offset by a $0.4 million unfavorable revision that occurred during 2020. See Note 7 to the ~~mineral rights of various properties throughout the U.S.~~

~~See “Item 1. Business — A. North American Coal — General" on page 1~~Consolidated Financial Statements in this Form 10-K for further discussion of ~~NACoal's subsidiaries.~~the Company's asset retirement obligations.

~~FINANCIAL REVIEW~~

~~Tons of coal delivered by NACoal’s operating mines were as follows for the years ended~~ ~~December 31~~ ~~(in millions):~~

2018 2017
Coteau 14.2
14.7
Falkirk 8.4
7.2
Sabine 3.8
3.6
Bisti 4.1
3.7
Camino Real 2.1
2.4
Coyote Creek 2.5
2.2
Other 0.4
1.0
Unconsolidated mines 35.5
34.8
MLMC 3.0
2.4
Consolidated mines 3.0
2.4
Total tons delivered 38.5
37.2

~~Cubic yards of limestone delivered by NAM were as follows for the years ended December 31 (in millions):~~

2018 2017
Unconsolidated operations 5.4
2.0
Consolidated operations 30.0
28.0
Total yards delivered 35.4
30.0

~~Total coal reserves were as follows at December 31:~~

2018 2017
(in billions of tons)
Unconsolidated mines 0.9
0.9
Consolidated mines 1.0
1.0
Total coal reserves 1.9
1.9

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~~Item 7.~~	~~MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS~~

Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

NACCO INDUSTRIES, INC. AND SUBSIDIARIES

(Tabular Amounts in Thousands, Except Per Share and Percentage Data)

NORTH AMERICAN MINING ("NAMining") SEGMENT

~~Operating Results~~

~~The results~~FINANCIAL REVIEW

Tons of ~~operations for NACoal~~limestone delivered by the NAMining segment were as follows for the years ended December 31 (in millions):

2018 2017
Revenue - consolidated mines $ 117,869
$ 92,008
Revenue - royalty and other 17,506
12,770
Total revenues 135,375
104,778
Cost of sales - consolidated mines 102,922
85,657
Cost of sales - royalty and other 2,116
1,923
Total cost of sales 105,038
87,580
Gross profit 30,337
17,198
Earnings of unconsolidated operations (a) 64,994
61,361
Selling, general and administrative expenses 42,901
40,393
Centennial asset impairment charge —
982
Amortization of intangibles 3,038
2,123
Gain on sale of assets (892 ) (4,616 )
Operating profit 50,284
39,677
Interest expense 1,996
3,440
Other income, net, including income from other unconsolidated affiliates (1,259 ) (994 )
Income before income tax expense $ 49,547
$ 37,231


	2020	2019
Unconsolidated operations	9.4	8.3
Consolidated operations	36.5	36.4
Total tons delivered	45.9	44.7

^{The results of operations for the NAMining segment were as follows for the years ended December 31:}


	2020		2019
Revenues	$	42,392	$	42,823
Cost of sales	39,266		41,698
Gross profit	3,126		1,125
Earnings of unconsolidated operations(a)	3,619		3,205
Selling, general and administrative expenses	5,138		4,921
Gain on sale of assets	(265)		(27)
Operating profit (loss)	$	1,872	$	(564)

(a) See Note 17 to the Consolidated Financial Statements in this Form 10-K for a discussion of the Company's unconsolidated subsidiaries, including summarized financial information.

~~2018~~2020 Compared with ~~2017~~2019

~~The following table identifies the components of change~~

Revenues decreased 1.0% in ~~revenues for~~ ~~2018~~2020 compared with ~~2017~~:

Revenues
2017 $ 104,778
Increase (decrease) from:
Consolidated operations 23,389
Royalty 4,219
MLMC contractual settlements 2,989
2018 $ 135,375

~~Revenues increased 29.2% in 2018 compared with 2017~~2019, primarily due to ~~an increase in tons delivered at MLMC as a result of increased customer requirements during 2018 compared with 2017 and higher~~lower reimbursed costs, ~~at NAM's consolidated operations. Reimbursed costs~~which have an offsetting amount in cost of goods sold and have no impact on operating profit. ~~Higher royalty revenues also contributed~~The decrease was partially offset by favorable changes in the mix of customer requirements and work related to the ~~increase as third parties operated more wells~~Thacker Pass lithium project.

The following table identifies the components of change in ~~Ohio during 2018~~operating profit (loss) for 2020 compared with ~~2017,~~2019.


	Operating Profit (Loss)
2019	$	(564)
Increase (decrease) from:
Gross profit	2,001
Earnings of unconsolidated operations	414
Net gain on sale of assets	238
Selling, general and administrative expenses	(217)
2020	$	1,872

NAMining reported operating profit of $1.9 million in 2020 compared with an operating loss of $0.6 million in 2019. The change is primarily due to ~~extract~~an increase in gross profit and in earnings of unconsolidated operations. Both variances are due to changes in the ~~Company's natural gas assets. MLMC's contractual settlements relate to resolution~~mix of ~~its customer’s tonnage-related payment obligations and coal pricing adjustments.~~customer requirements.

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~~Item 7.~~	~~MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS~~

Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

NACCO INDUSTRIES, INC. AND SUBSIDIARIES

(Tabular Amounts in Thousands, Except Per Share and Percentage Data)

MINERALS MANAGEMENT SEGMENT

FINANCIAL REVIEW

The ~~following table identifies~~results of operations for the ~~components of change in~~Minerals Management segment were as follows for the years ended December 31:


	2020		2019
Revenues	$	14,721	$	30,119
Cost of sales	2,342		3,465
Gross profit	12,379		26,654
Selling, general and administrative expenses	8,886		933

Operating profit	$	3,493	$	25,721

2020 Compared with 2019

Revenues and operating profit ~~for~~ ~~2018~~decreased in 2020 compared with ~~2017~~.

Operating Profit
2017 $ 39,677
Increase (decrease) from:
Royalty 4,155
Earnings of unconsolidated operations 3,633
Consolidated operations, excluding Centennial 3,065
MLMC contractual settlements 2,989
Centennial operations 1,853
Centennial asset impairment charge 982
Other 162
Net gain on sale of assets (3,724 )
Selling, general and administrative expenses (2,508 )
2018 $ 50,284

~~Operating profit increased $10.6 million in 2018 compared with 2017 primarily due to higher~~2019 as 2019 included significant royalty income ~~an increase~~generated by a large number of new gas wells put into commission in ~~earnings of unconsolidated operations and improved results at the consolidated mines, principally MLMC. Royalty income increased~~Ohio during 2018 ~~compared with 2017 primarily due to an increase in the number of~~and early 2019. These wells are operated by third parties to extract natural gas from the Company's Ohio Utica shale mineral reserves. Since new wells have high initial production rates and follow a natural ~~gas assets~~decline before settling into relatively stable, long-term production, royalty income in ~~Ohio. The increase~~2020 decreased substantially from 2019 levels. Lower commodity prices in the earnings of the unconsolidated operations was mainly due to an increase in coal tons delivered, higher compensation at Liberty during the mine reclamation period and the receipt of business interruption insurance proceeds at Bisti related to its customers plant outage in the first half of 2018. The increase in operating profit at the consolidated mines was primarily due to an increase in MLMC's customer requirements, which resulted in a reduction in the cost per ton of coal delivered, as well as receipt of contractual settlements related to resolution of its customer’s tonnage-related payment obligations and coal pricing adjustments.

~~A reduction in Centennial's operating expenses and the absence of an asset impairment charge~~2020 compared with 2019 also contributed to the ~~increase~~reduction in revenues and operating ~~profit in 2018 compared with 2017. See Note 9 to the Consolidated Financial Statements for further discussion of Centennial's 2017 asset impairment charge.~~

These increases were partially offset by a decrease in the net gain on sale of assets, primarily due to a $2.3 million gain on the sale of a dragline at Centennial in 2017, and an increase in selling, general and administrative expenses.profit. The increase in selling, general and administrative expenses is due to ~~higher employee-related expenses, professional fees~~a $7.3 million asset impairment charge during 2020. The Company regularly performs reviews of potential future development projects and ~~additional business~~identified certain undeveloped properties where market conditions related to any future development ~~costs.~~deteriorated during 2020.As a result, the Company wrote-off certain capitalized leasehold costs and prepaid royalties related to legacy coal interests in 2020.

~~Income before income tax expense increased by $12.3~~

UNALLOCATED ITEMS AND ELIMINATIONS

FINANCIAL REVIEW

Unallocated Items and Eliminations were as follows for the years ended December 31:


	2020		2019
Operating loss	$	(17,353)	$	(20,457)

2020 Compared with 2019

The $3.1 million ~~primarily due to the $10.6 million improvement~~decrease in operating ~~profit. In addition to the increase in operating profit, interest expense decreased by $1.4 million~~loss during 2020 compared with 2019 was primarily due to lower ~~average borrowings under NACoal's revolving credit facility during 2018 compared with 2017.~~employee-related expenses.

During the fourth quarter of 2020, the Company implemented a voluntary separation program for employees who met certain age and service requirements to reduce overall headcount. As a result of this program, the 2020 operating loss includes a charge of $0.3 million related to one-time termination benefits.

NACCO Industries, Inc. Outlook

Coal Mining Outlook - 2021

In 2021, the Company expects coal deliveries to be comparable to 2020 based on current expectations of customer requirements.

Coal Mining operating profit in 2021 is expected to decrease significantly from 2020. This decrease is primarily attributable to substantially lower earnings expected at MLMC and reduced earnings at the unconsolidated Coal Mining operations. MLMC

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~~Item 7.~~	~~MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS~~

Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

NACCO INDUSTRIES, INC. AND SUBSIDIARIES

(Tabular Amounts in Thousands, Except Per Share and Percentage Data)

~~NACCO AND OTHER~~

NACCO and Other includes the parent company operations and Bellaire Corporation ("Bellaire"), a non-operating subsidiary of NACCO. Although Bellaire’s operations are immaterial, it has long-term liabilities related to closed mines, primarily from former Eastern U.S. underground coal mining activities.

~~FINANCIAL REVIEW~~

~~Operating Results~~

~~The results of operations at NACCO and Other were as follows for the years ended~~ ~~December 31~~:

2018 2017
Operating loss $ (6,660 ) $ (6,863 )
Other expense (income)
Interest income (646 ) (19 )
Closed mine obligation 1,297
1,590
Other, net 73
(305 )
Loss before income tax expense (benefit) $ (7,384 ) $ (8,129 )

~~2018 Compared~~earnings are expected to be lower as a result of an anticipated increase in the cost per ton of coal delivered in 2021 compared with ~~2017~~

2020, due in part to an increase in depreciation expense associated with development of a new mine area. The ~~following table identifies~~anticipated reduction in earnings at the ~~components~~unconsolidated Coal Mining operations is expected to be mainly driven by a reduction in fee-based earnings at the Liberty Mine, as the scope of ~~change~~final mine reclamation activities is reduced. Lower operating profit is expected to be partially offset by a decrease in operating ~~loss for 2018 compared with 2017.~~

Operating Loss
2017 $ (6,863 )
Increase (decrease) from:
Selling, general and administrative expenses 5,013
Transition Services Agreement ("TSA") 290
Management fees (4,586 )
Net gain on sale of assets (514 )
2018 $ (6,660 )

~~NACCO and Other's operating loss decreased $0.2 million in 2018 compared with 2017. The reduction in the operating loss was~~expenses primarily due to lower employee-related ~~expenses,~~costs resulting from the 2020 voluntary separation program partially offset by higher insurance expense.

Changes in customer power plant dispatch, including changes related to natural gas price fluctuations and the continued increase in renewable generation, particularly wind, could reduce customer demand below anticipated levels, which could further unfavorably affect the Company’s 2021 outlook.

In May 2020, GRE, Falkirk Mine's customer and the Company's second largest customer, announced its intent to retire the Coal Creek Station power plant in the second half of 2022. GRE is willing to consider opportunities to sell Coal Creek Station, and NACCO is actively engaged in the exploration of options that could, if successful, allow for transfer of ownership of the power plant to one or more third parties, which would preserve jobs at both Coal Creek Station and the Falkirk Mine. Falkirk Mine is the sole supplier of lignite coal to Coal Creek Station pursuant to a ~~reduction~~long-term contract. The terms of the contract between the Company and GRE specify that GRE is responsible for all costs related to mine closure, including but not limited to, final mine reclamation costs, post-retirement medical benefits and pension costs with respect to Falkirk employees. This closure is not expected to affect 2021 results.

The owner of the power plant served by the Company's Sabine Mine in ~~management fees charged~~Texas intends to retire the power plant in 2023. The Sabine Mine contributed approximately $3.9 million to Earnings from Unconsolidated Operations in 2020. The terms of the contract between the Company and the customer specify that the customer is responsible for all costs related to mine closure, including but not limited to, final mine reclamation costs, post-retirement medical benefits and pension costs with respect to Sabine employees.

The closure of the power plants that are served by the Falkirk and Sabine Mines would have a material adverse effect on the future Earnings of unconsolidated operations of the Coal Mining segment and on the long-term earnings and cash flows of NACCO.

Capital expenditures are expected to be approximately $27 million in 2021. The elevated levels of capital expenditures in the Coal Mining segment from 2019 through 2021 relate to the ~~subsidiaries. The management fees charged~~development of a new mine area at MLMC. These increased capital expenditures will result in higher depreciation that will unfavorably affect operating profit in future periods. Capital expenditures for MLMC are expected to ~~NACoal represent an allocation of corporate overhead~~return to lower levels beginning in 2022 and continue through 2032, the end of the ~~parent company. Prior~~current contract term.

NAMining Outlook

In 2021, NAMining expects full year operating profit to ~~the spin-off~~increase moderately over 2020 with its existing customer contracts. NAMining is pursuing a number of ~~HBBHC, NACCO received management fees from HBBHC of $3.1~~growth initiatives that if successful would be accretive to future earnings.

Capital expenditures are expected to be approximately $9 million for the 2021 full year ~~ended December 31, 2017.~~primarily for the acquisition, relocation and refurbishment of draglines.

In ~~connection with the spin-off of HBBHC, the Company and HBBHC~~2019, NAMining's subsidiary, Sawtooth Mining, LLC, entered into a ~~Transition Services Agreement ("TSA")~~mining agreement to serve as the exclusive contract miner for the Thacker Pass lithium project in northern Nevada, owned by Lithium Nevada Corp., a subsidiary of Lithium Americas Corp. (TSX: LAC) (NYSE: LAC). ~~Under~~In January 2021, Thacker Pass received a Record of Decision from the ~~terms~~U.S. Bureau of Land Management for the Thacker Pass project following the completion of the ~~TSA,~~National Environmental Policy Act Process. This decision represents an important milestone in the development and the permitting of the Thacker Pass project. More permitting decisions are expected later in 2021 with production expected to begin in the second half of 2022.

Minerals Management Outlook

The Minerals Management segment derives income from royalty-based leases under which lessees make payments to the Company ~~provides various services~~based on their sale of natural gas and, to ~~HBBHC on~~ a ~~transitional basis, as needed, for varying periods after~~lesser extent, oil, natural gas liquids and coal, extracted primarily by third parties. Excluding the ~~spin-off date. As~~impact of ~~December 31, 2018~~ the ~~transition services are materially complete. NACCO received fees of $0.5~~$6.7 million ~~and $0.2 million for the years ended December 31, 2018 and December 31, 2017, respectively, recorded as a reduction to selling, general and administrative expenses.~~

~~Loss before income taxes decreased $0.7 million due to the factors affecting~~write-off taken in 2020, operating profit ~~and an increase in interest income earned on invested cash.~~

~~NACCO Industries, Inc. Outlook - 2019~~

~~In 2019, NACCO expects consolidated income before income tax to increase compared with 2018 and expects an effective income tax rate~~ in the ~~range of 13% to 15%. The actual effective income tax rate could be affected by changes from current~~

Minerals Management

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~~Item 7.~~	~~MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS~~

Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

NACCO INDUSTRIES, INC. AND SUBSIDIARIES

(Tabular Amounts in Thousands, Except Per Share and Percentage Data)

~~estimates in the mix of earnings between entities that benefit from percentage depletion and those that do not, as well as the potential effect of discrete items.~~

Income before income tax in 2018 includes $3.0 million in contractual settlements at MLMC and $2.8 million in favorable adjustments to Centennial mine reclamation liabilities. Excluding these favorable 2018 items, 2019 income before income taxsegment is expected to ~~increase significantly compared with the prior year~~be down substantially in 2021 from 2020. This decrease is primarily related to a reduction in royalty income from existing Ohio mineral and royalty assets as a result of ~~improved results at MLMC~~expected lower natural gas prices, fewer expected new wells in Ohio, lower commodity prices and ~~higher royalty income.~~

~~MLMC sells lignite at contractually agreed upon prices which are subject to changes~~the natural production decline that occurs early in the ~~level~~life of ~~established indices over time. Anticipated changes to these indices are expected to result in an increase in revenue during 2019. In addition,~~ a well. Another sustained decline in ~~diesel~~natural gas prices is expected to reduce the cost per ton delivered in 2019 compared with 2018. These factors are expected to contribute to an increase in MLMC's pre-tax income. If these anticipated changes do not occur or if customer demand does not remain as strong as expected at MLMC, it could unfavorably affect ~~NACoal's 2019 earnings expectations significantly.~~the Company’s outlook.

~~NACRC derives income from royalty-based leases under which the lessee makes payments~~Decline rates for individual wells can vary due to ~~the Company based on the lessee's sale of natural gas~~factors like well depth, well length, formation pressure and ~~to a lesser extent, oil and coal, extracted primarily by third parties. The Company experienced significant increases in~~facility design. In addition, royalty income in both 2017 and 2018 compared with prior years, primarily due to the number of gas wells being developed and operated by third parties to extract the Company's Ohio Utica shale oil and gas assets. Royalty income is expected to increase in 2019 compared with 2018 based on the number of wells currently in development and operating in Ohio. Royalty income can fluctuate favorably or unfavorably in response to a number of factors outside of the Company's control, including the number of wells being operated by third parties, fluctuations in commodity prices (primarily natural gas), ~~declining~~fluctuations in production rates associated with operator decisions, regulatory risks, the Company's lessees' willingness and ability to incur well-development and other operating costs, and changes in the availability and continuing development of infrastructure.

~~Income~~In 2020, the Minerals Management segment acquired mineral and royalty interests for approximately 65.5 thousand gross acres and 1.2 thousand net royalty acres in the Permian Basin in Texas for a total purchase price of approximately $14.2 million. The acquired interests align with the Company’s strategy of selectively acquiring mineral and royalty interests with a balance of near-term cash flow yields and long-term growth potential, in oil-rich basins offering diversification from the ~~unconsolidated mining operations~~Company’s legacy mineral interests in ~~2019~~predominately natural gas-rich basins. Including the 2020 acquisitions, total mineral and royalty interests include approximately 109.2 thousand gross acres and 58.1 thousand net royalty acres. Minerals Management is ~~expected to be comparable to 2018. An anticipated increase~~targeting additional investments in ~~deliveries at Bisti~~mineral and ~~at NAM's unconsolidated aggregates mining operations~~royalty interests of approximately $10 million in 2021. These investments are expected to be accretive to earnings, but each investment's contribution to earnings is dependent on the characteristics of each investment, including the size and type of interests acquired and the stage and timing of mineral development.

Consolidated 2021 Outlook

While the Company expects consolidated net income in 2021 to decrease significantly from 2020, management still continues to view the long-term business outlook positively because of a strong pipeline of potential new projects. The COVID-19 pandemic slowed certain business development initiatives in 2020, but the outlook for growth in the NAMining and Minerals Management segments and in the Company's Mitigation Resources of North America® business remains strong. Excluding the favorable impact of potential business development activities, the Company expects substantially lower pre-tax earnings as a result of lower operating profit, an anticipated increase in interest expense and a reduction in interest income. These lower pre-tax results are expected to be partially offset by an ~~anticipated reduction~~increase in ~~coal tons delivered~~the benefit from income taxes primarily due to the benefit from percentage depletion at certain of the ~~Falkirk, Sabine~~Company's mining operations. Pre-tax income and ~~Coyote Creek mines. NAM added new aggregates contracts in 2018 that~~net income are expected to ~~contribute~~be higher in the second half of 2021 than in the first half of 2021, primarily due to current expectations on the ~~increase~~timing of customer requirements in the Coal Mining segment.

In light of ongoing regulatory, economic and public opinion challenges facing the coal-fired power generation industry, the Company commenced a voluntary separation program for certain corporate employees in the 2020 fourth quarter. The program was substantially completed by December 31, 2020. Estimated net benefits from this voluntary separation program are expected to be between $1.5 and $2.5 million annually beginning in 2021. As a result of this program and natural attrition, the number of headquarters employees was reduced by approximately 25%.

The Company’s cash flow before financing activities varies with changes in customer demand, particularly in the Coal Mining segment, as well as changes in earnings ~~from~~of the ~~unconsolidated mining operations~~Minerals Management segment, working capital changes, capital expenditures, investments in royalty and mineral interests and changes in income taxes, as well as other factors. Cash flow before financing activities in 2020 included a significant use of cash related to changes in working capital, capital expenditures and the acquisition of mineral royalty interests. The Company anticipates positive cash flow before financing activities in 2021 but at a level still below the cash generated in 2019.

~~Capital~~ Consolidated capital expenditures are expected to be approximately ~~$23~~$46 million in ~~2019 compared with $20.9 million~~2021.

Significant uncertainties remain regarding the COVID-19 pandemic. The extent to which COVID-19 impacts the Company going forward will depend on numerous factors, including but not limited to the extent of new outbreaks, the extent to which additional stay-at-home orders may be imposed, the nature of the government public health guidelines and the public's adherence to those guidelines, the success of businesses reopening fully, the timing for proven treatments and the availability of vaccines for COVID-19. While the Company's existing mining operations to date have not been materially affected by the

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Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

NACCO INDUSTRIES, INC. AND SUBSIDIARIES

(Tabular Amounts in ~~2018~~Thousands, Except Per Share and ~~$15.7 million~~Percentage Data)

pandemic, future developments, which are highly uncertain and unpredictable, could significantly and rapidly cause a deterioration in ~~2017. MLMC’s mine plan requires moving into~~the Company’s results, supply chain channels and customer demand.

Growth and Diversification

The Company is pursuing growth and diversification by strategically leveraging its core mining and natural resources management skills to build a strong portfolio of affiliated businesses.

NAMining is pursuing growth and diversification by expanding the scope of its business development activities to include potential customers who require a broad range of minerals and materials and by leveraging the Company’s core mining skills to expand the range of contract mining services it provides. In addition, NAMining is pursuing opportunities to provide comprehensive mining services to operate entire mines when appropriate, as is the case at the new ~~mine area~~lithium project in Nevada.

The Minerals Management segment continues its efforts to grow and diversify by pursuing acquisitions of additional mineral and royalty interests in the United States, in what the Company believes is a buyer-friendly market. Once mineral and royalty interests have been acquired, the Minerals Management segment will benefit from the continued development of its mineral properties without additional capital investment. This business model can deliver higher average operating margins over the life of a reserve than traditional oil and gas companies that bear the cost of exploration, production and/or development.

MRNA continues to expand its business, which ~~will require increased capital expenditures~~creates and sells stream and wetland mitigation credits and provides services to those engaged in ~~2019~~permittee-responsible mitigation. This business offers opportunity for growth and ~~2020. The increase in capital expenditures will result~~diversification in an ~~increase~~industry where the Company has substantial knowledge and expertise and a strong reputation. The MRNA business has achieved several successes and is positioned for additional growth.

The Company also continues to pursue activities which can strengthen the resiliency of its existing coal mining operations. The Company remains focused on managing coal production costs and maximizing efficiencies and operating capacity at mine locations to help customers with management fee contracts be more competitive. These activities benefit both customers and the Company's Coal Mining segment, as fuel cost is a significant driver for power plant dispatch. Increased power plant dispatch results in ~~depreciation in future years that will affect operating profit at that mine. Even with~~increased demand for coal by the ~~increased capital expenditures in 2019, cash flow before financing activities is expected to increase significantly over 2018.~~ Coal Mining segment's customers.

The Company continues to ~~evaluate~~look for opportunities to expand its ~~core~~ coal mining business ~~however~~where it can apply its management fee business model to assume operation of existing surface coal mining operations in the United States. However, opportunities are ~~likely to be limited. Continued low~~very limited in the current environment. Low natural gas prices and growth in renewable energy sources, such as wind and solar, ~~could~~are likely to continue to unfavorably affect the amount of electricity ~~attributable to~~dispatched from coal-fired power ~~plants over~~plants. In addition, the ~~longer term. The~~ political and regulatory environment is not ~~generally~~ receptive to development of new coal-fired power generation projects which would create opportunities to build and operate new coal mines. However, the Company does continue to seek out and pursue opportunities where it can apply its management fee business model to replace legacy operators of existing surface coal mining operations in the United States. Outright acquisitions of existing coal mines or mining companies with exposure to fluctuating coal commodity markets, or structures that would create significant leverage, are outside the Company’s area of focus.

One of the Company’s core strategies involves activities to protect the Company’s existing coal mining operations. The Company works to drive down coal production costs and maximize efficiency and operating capacity at mine locations to help customers with management fee contracts be more competitive. This benefits both customers and NACoal, as fuel cost is the major driver for power plant dispatch. Increased power plant dispatch drives increased demand for coal by NACoal’s customers.

The Company ~~also believes~~is committed to maintaining a conservative capital structure while it grows and diversifies without unnecessary risk, which will allow for strategic growth and ~~diversification can come from pursuing opportunities~~increased free cash flow to ~~leverage skills honed~~re-invest in and expand the Company’s core mining operations and utilizing the Company’s unique, service-based, management-fee business model, when possible. The Company continues to pursue non-coal mining opportunities principally through its NAM business. NAM has

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~~Item 7.~~	~~MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS~~

~~NACCO INDUSTRIES, INC. AND SUBSIDIARIES~~

~~(Tabular Amounts in Thousands, Except Per Share and Percentage Data)~~

served as a strong growth platform by focusing on the operation and maintenance of draglines for limestone producers. NAM will continue to pursue growth in dragline operation and maintenance, while expanding the scope of work provided to customers and focusing on mining a broader range of aggregates and other minerals. In addition, the Company launched a new business called Mitigation Resources of North America to create and sell stream and wetland mitigation credits and provide services to those engaged in permittee-responsible mitigation.businesses. The Company also continues to maintain the highest levels of customer service and operational excellence, with an unwavering focus on ~~increasing royalty income, principally related to its Ohio Utica shale assets.~~safety and environmental stewardship.

RECENTLY ISSUED ACCOUNTING STANDARDS

See Note 2 to the Consolidated Financial Statements in this Form 10-K for a description of recently issued accounting standards, if any, including actual and expected dates of adoption and effects to the Company's Consolidated Financial Statements.

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Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

NACCO INDUSTRIES, INC. AND SUBSIDIARIES

(Tabular Amounts in Thousands, Except Per Share and Percentage Data)

FORWARD-LOOKING STATEMENTS

The statements contained in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere throughout this Annual Report on Form 10-K that are not historical facts are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are made subject to certain risks and uncertainties, which could cause actual results to differ materially from those presented. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Among the factors that could cause plans, actions and results to differ materially from current expectations are, without limitation: (1) changes to or termination of a long-term mining contract, or a customer default under a contract, (2) the impact of the COVID-19 pandemic, (3) a significant reduction in purchases by the Company's customers, including changes in coal consumption patterns of U.S. electric power generators, or changes in the power industry that would affect demand for the Company's coal and other mineral reserves, (4) changes in tax laws or regulatory requirements, including changes in mining or power plant emission regulations and health, safety or environmental legislation, ~~(2)~~(5) the ability of the Company to access credit in the current economic environment, or obtain financing at reasonable rates, or at all, as a result of current market sentiment for fossil fuels, (6) failure to obtain adequate insurance coverages at reasonable rates, (7) changes in costs related to geological and geotechnical conditions, repairs and maintenance, new equipment and replacement parts, fuel or other similar items, ~~(3)~~(8) regulatory actions, changes in mining permit requirements or delays in obtaining mining permits that could affect deliveries to customers, ~~(4)~~(9) weather conditions, extended power plant outages, liquidity events or other events that would change the level of customers' coal or aggregates requirements, ~~(5)~~(10) weather or equipment problems that could affect deliveries to customers, ~~(6) changes in the power industry that would affect demand for NACoal's reserves, (7)~~(11) failure or delays by the Company's lessees in achieving expected production of natural gas and other hydrocarbons; the availability and cost of transportation and processing services in the areas where the Company's oil and gas reserves are located; federal and state legislative and regulatory initiatives relating to hydraulic fracturing; and the ability of lessees to obtain capital or financing needed for well development operations ~~(8)~~and leasing and development of oil and gas reserves on federal lands, (12) changes in the costs to reclaim ~~NACoal~~ mining areas, ~~(9)~~(13) costs to pursue and develop new mining and value-added service opportunities, ~~(10) changes to or termination of a long-term mining contract, or a customer default under a contract, (11)~~(14) delays or reductions in coal or aggregates deliveries, ~~at NACoal's or NAM's operations, (12)~~(15) changes in the prices of hydrocarbons, particularly diesel fuel, natural gas and oil, (16) the ability to successfully evaluate investments and ~~(13) increased competition,~~achieve intended financial results in new business and growth initiatives, (17) the effects of receiving low sustainability scores which could result in the exclusion of the Company's securities from consideration by certain investment funds, and (18) disruptions from natural or human causes, including ~~consolidation within~~severe weather, accidents, fires, earthquakes and terrorist acts, any of which could result in suspension of operations or harm to people or the ~~industry.~~environment.

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Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As a “smaller reporting company” as defined by Rule 12b-2 of the Securities Exchange Act of 1934, the Company is not required to provide this information.

Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The information required by this Item 8 is set forth in the Financial Statements and Supplementary Data contained in Part IV of this Form 10-K and is hereby incorporated herein by reference to such information.

Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

There were no disagreements with accountants on accounting and financial disclosure for the two-year period ended December 31, ~~2018~~2020 that require disclosure pursuant to this Item 9.

Item 9A. CONTROLS AND PROCEDURES

Evaluation of disclosure controls and procedures: An evaluation was carried out under the supervision and with the participation of the Company's management, including the principal executive officer and the principal financial officer, of the effectiveness of the Company's disclosure controls and procedures as of the end of the period covered by this report. Based on that evaluation, these officers have concluded that the Company's disclosure controls and procedures are effective.

Management's report on internal control over financial reporting: Management is responsible for establishing and maintaining adequate internal control over financial reporting. Under the supervision and with the participation of management, including the principal executive officer and principal financial officer, the Company conducted an evaluation of the effectiveness of internal control over financial reporting based on the framework in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework). Based on this evaluation under the framework, management concluded that the Company's internal control over financial reporting was effective as of December 31, ~~2018~~.2020. The Company's effectiveness of internal control over financial reporting as of December 31, ~~2018~~2020 has been audited by Ernst & Young LLP, an independent registered public accounting firm, as stated in its report, which is included in Item 15 of this Form 10-K and incorporated herein by reference.

Changes in internal control: There have been no changes in the Company's internal control over financial reporting, that occurred during the fourth quarter of ~~2018,~~2020, that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

Item 9B. OTHER INFORMATION

None.

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PART III

Item 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

Information with respect to Directors of the Company will be set forth in the ~~2019~~2021 Proxy Statement under the subheadings “Part III — Proposals To Be Voted On At The ~~2019~~2021 Annual Meeting — Proposal 1 — Election of Directors, ,”” which information is incorporated herein by reference.

Information with respect to the audit review committee and the audit review committee financial expert will be set forth in the ~~2019~~2021 Proxy Statement under the subheading “Part I — Corporate Governance Information — Directors' Meetings and Committees,” which information is incorporated herein by reference.

Information with respect to compliance with Section 16(a) of the Securities Exchange Act of 1934 by the Company's Directors, executive officers and holders of more than ten percent of the Company's equity securities will be set forth in the ~~2019~~2021 Proxy Statement under the subheading “Part IV — Other Important Information — Delinquent Section 16(a) ~~Beneficial Ownership Reporting Compliance,~~Reports,” which information is incorporated herein by reference.

~~Information regarding the executive officers of the Company is included in this Form 10-K as Item 4A of Part I as permitted by Instruction 3 to Item 401(b) of Regulation S-K.~~

The Company has adopted a code of business conduct and ethics applicable to all Company personnel, including the principal executive officer, principal financial officer, principal accounting officer or controller, or other persons performing similar functions. The code of business conduct and ethics, entitled the “Code of Corporate Conduct,” is posted on the Company's website at www.nacco.com under “Corporate Governance.” If the Company makes any amendments to or grants any waivers from the code of business conduct and ethics which are required to be disclosed pursuant to the Securities and Exchange Act of 1934, the Company will make such disclosure on the NACCO website.

Item 11. EXECUTIVE COMPENSATION

Information with respect to executive compensation will be set forth in the ~~2019~~2021 Proxy Statement under the headings “Part II — Executive Compensation Information” and “Part III — Proposals To Be Voted On At The ~~2019~~2021 Annual Meeting — Proposal 1 — Election of Directors,” which information is incorporated herein by reference.

Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

Information with respect to security ownership of certain beneficial owners and management will be set forth in the ~~2019~~2021 Proxy Statement under the subheading ~~“ Part~~“Part IV — Other Important Information — Beneficial Ownership of Class A Common and Class B Common,” which information is incorporated herein by reference.

Information with respect to compensation plans (including individual compensation arrangements) under which equity securities are authorized for issuance will be set forth in the ~~2019~~2021 Proxy Statement under the subheading “Part IV — Other Important Information — Equity Compensation Plan Information," which information is incorporated herein by reference.

Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

Information with respect to certain relationships and related transactions will be set forth in the ~~2019~~2021 Proxy Statement under the subheadings “Part I — Corporate Governance Information — Review and Approval of Related-Person Transactions,” which information is incorporated herein by reference.

Item 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

Information with respect to principal accountant fees and services will be set forth in the ~~2019~~2021 Proxy Statement under the heading “Part III — Proposals To Be Voted On At The ~~2019~~2021 Annual Meeting — Proposal 54 — Ratification of the Appointment of Company's Independent Registered Public Accounting Firm,” which information is incorporated herein by reference.

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PART IV

Item 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

(a) (1) and (2) The response to Item 15(a)(1) and (2) is set forth beginning at page F-1 of this Form 10-K.

(b) Financial Statement Schedules — The response to Item 15(c) is set forth beginning at page ~~F-34~~F-39 of this Form 10-K.



Exhibit Number						Exhibit Description
(3) Articles of Incorporation and By-laws.
3.1(i)						Restated Certificate of Incorporation of the Company is incorporated herein by reference to Exhibit 3(i) to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 1992, Commission File Number 1-9172.
3.1(ii)						Amended and Restated By-laws of the Company are incorporated herein by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K, filed by the Company on December 18, 2014, Commission File Number 1-9172.

(4) Instruments defining the rights of security holders, including indentures.
4.1						The Company by this filing agrees, upon request, to file with the Securities and Exchange Commission the instruments defining the rights of holders of long-term debt of the Company and its subsidiaries where the total amount of securities authorized thereunder does not exceed 10% of the total assets of the Company and its subsidiaries on a consolidated basis.
4.2						The Mortgage and Security Agreement, dated April 8, 1976, between The Falkirk Mining Company (as Mortgagor) and Cooperative Power Association and United Power Association (collectively, as Mortgagee) is incorporated herein by reference to Exhibit 4(ii) to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 1992, Commission File Number 1-9172.
4.3						Amendment No. 1 to the Mortgage and Security Agreement, dated as of December 15, 1993, between Falkirk Mining Company (as Mortgagor) and Cooperative Power Association and United Power Association (collectively, as Mortgagee) is incorporated herein by reference to Exhibit 4(iii) to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 1997, Commission File Number 1-9172.
4.4						Amended and Restated Stockholders' Agreement, dated as of September 29, 2017, among NACCO Industries, Inc., the other signatories thereto and NACCO Industries, Inc., as depository, is incorporated by reference to Exhibit 10.4 to the Company's Current Report on Form 8-K, filed by the Company on October 5, 2017, Commission File Number 1-9172.
4.5**4.5						Amendment to Amended and Restated Stockholders' Agreement, dated as of February 14, 2019, among NACCO Industries, Inc., the other signatories thereto and NACCO Industries, Inc., as depository, is incorporated by reference to Exhibit 4.5 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2018, Commission File Number 1-9172.
4.6						Second Amendment to Amended and Restated Stockholders' Agreement, dated as of February 12, 2021, by and among the Depository, NACCO Industries, Inc., the new Participating Stockholders identified on the signature pages thereto and the Participating Stockholders under the Amended and Restated Stockholders' Agreement, dated as of September 29, 2017, as amended, is incorporated by reference to Exhibit 60 of the Company's General statement of acquisition of beneficial ownership on Form SC 13D, filed on February 12, 2021 , Commission File Number 1-9172.
4.7						Description of Securities is incorporated herein by reference to Exhibit 4.6 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2019, Commission File Number 1-9172.

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Exhibit Number		Exhibit Description
(10) Material contracts
10.1*		NACCO Industries, Inc. Supplemental Executive Long-Term Incentive Bonus Plan (Amended and Restated March 1, 2012) is incorporated herein by reference to Appendix B to NACCO's Definitive Proxy Statement, filed by NACCO on March 16, 2012, Commission File Number 1-9172.
10.2*		NACCO Industries, Inc. Executive Long-Term Incentive Compensation Plan (Amended and Restated March 1, ~~2017)~~2019) is incorporated herein ~~by reference to Appendix A to NACCO's Definitive Proxy Statement, filed by the Company on March 27, 2017, Commission File Number 1-9172.~~
10.3*	NACCO Industries, Inc. Non-Employee Directors' Equity Compensation Plan (Amended and Restated May 9, 2017) is incorporated herein by reference to Appendix B to NACCO's Definitive Proxy Statement, filed by the Company on March 27, 2017, Commission File Number 1-9172.
10.4*	~~NACCO Industries, Inc. Executive Excess Retirement Plan (Effective as of September 28, 2012) is incorporated~~ by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K, filed by the Company on ~~September 17, 2012,~~May 8, 2019, Commission File Number 1-9172.
10.510.3		~~Amendment No. 1 to~~ NACCO Industries, Inc. ~~Executive Excess Retirement~~Non-Employee Directors' Equity Compensation Plan ~~(Effective as of September 28, 2012)~~(Amended and Restated May 8, 2019) is incorporated herein by reference to Exhibit ~~10.2~~10.1 to the Company's Current Report on Form 8-K, filed by the Company on ~~September 20, 2017,~~May 8, 2019, Commission File Number ~~I-9172.~~1-9172.
10.610.4		Form of Award Agreement for the NACCO Industries, Inc. Supplemental Executive Long-Term Incentive Bonus Plan is incorporated by reference to Exhibit 10.8 to the Company's Current Report on Form 8-K, filed by the Company on September 17, 2012, Commission File Number 1-9172.
10.710.5		Form of Cashless Exercise Award Agreement for the NACCO Industries, Inc. Executive Long-Term Incentive Compensation Plan is incorporated herein by reference to Exhibit ~~10.1~~10.9 to the ~~Quarterly~~Company's Annual Report on Form ~~10-Q, filed by~~10-K for the ~~Company on August 1, 2017,~~fiscal year ended December 31, 2019, Commission File Number 1-9172.
10.810.6		Form of Non-Cashless Exercise Award Agreement for the NACCO Industries, Inc. Executive Long-Term Incentive Compensation Plan is incorporated herein by reference to Exhibit ~~10.2~~10.10 to the ~~Quarterly~~Company's Annual Report on Form ~~10-Q, filed by~~10-K for the ~~Company on August 1, 2017,~~fiscal year ended December 31, 2019, Commission File Number 1-9172.
~~10.9~~10.7		Separation Agreement, dated as of September 29, 2017, between NACCO Industries, Inc. and Hamilton Beach Brands Holding Company, is incorporated by reference to Exhibit 10.1 of Hamilton Beach Brands Holding Company's Current Report on Form 8-K, filed on October 4, 2017, Commission File Number 1-9172.
~~10.10~~10.8		Tax Allocation Agreement, dated as of September 29, 2017, between NACCO Industries, Inc. and Hamilton Beach Brands Holding Company, is incorporated by reference to Exhibit 10.3 of Hamilton Beach Brands Holding Company's Current Report on Form 8-K, filed on October 4, 2017, Commission File Number 1-9172.
~~10.11~~10.9		Consulting Agreement, dated as of September 29, 2017, between NACCO Industries, Inc. and Alfred M. Rankin, Jr., is incorporated by reference to Exhibit 10.5 of NACCO Industries, Inc.'s Current Report on Form 8-K, filed on October 5, 2017, Commission File Number 1-9172.
~~10.12~~10.10		Amendment to Consulting Agreement, dated as of December 15, 2020, between NACCO Industries, Inc. and Alfred M. Rankin, Jr., is incorporated by reference to Exhibit 10.1 of NACCO Industries, Inc.'s Current Report on Form 8-K, filed on December 15, 2020, Commission File Number 1-9172.
10.11		Transfer Restriction Agreement, dated as of September 29, 2017, by and among the Issuer, NACCO and the signatories thereto, is incorporated by reference to Exhibit 2 of Hamilton Beach Brands Holding Company's General statement of acquisition of beneficial ownership on Form SC 13D, filed on October 6, 2017, Commission File Number 1-9172.
~~10.13~~10.12*		~~Transition Services Agreement, dated as of September 29, 2017, between~~ NACCO Industries, Inc. and Hamilton Beach Brands Holding Company, is incorporated by reference to Exhibit 10.2 of Hamilton Beach Brands Holding Company's Current Report on Form 8-K, filed on October 4, 2017, Commission File Number 1-9172.
10.14**	~~Amendment No. 1 to the Transition Services Agreement, dated~~Short-Term Incentive Compensation Plan (Effective as of ~~September 29, 2018,~~March 1, 2019) is incorporated herein by reference to Exhibit ~~10.14~~10.1 to the Company's ~~Annual Report on Form 10-K for the fiscal year ended December 31, 2018, Commission File Number 1-9172.~~
10.15**	Amendment No. 2 to the Transition Services Agreement, dated as of December 18, 2018, is incorporated herein by reference to Exhibit 10.15 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2018, Commission File Number 1-9172.
10.16*	NACCO Industries, Inc. Annual Incentive Compensation Plan (Effective as of September 28, 2012) is incorporated herin by reference to Appendix A to NACCO's Definitive Proxy Statement, filed by the Company on March 22, 2013, Commission File Number 1-9172.

~~Table of Contents~~



~~Exhibit Number~~	~~Exhibit Description~~
10.17*	~~The Retirement Benefit Plan for Alfred M. Rankin, Jr. (Amended and Restated Effective as of January 1, 2014) is incorporated herein by reference to Exhibit 10.2 to the Company’s Quarterly~~Current Report on Form 8-K, filed by the Company on February ~~14, 2014,~~13, 2019, Commission File Number 1-9172.
10.18* 10.13*		NACCO Industries, Inc. Unfunded Benefit Plan (Amended and Restated Effective as of January 1, 2014) is incorporated herein by reference to Exhibit 10.3 to the Company’s Quarterly Report on Form 8-K, filed by the Company on February 14, 2014, Commission File Number 1-9172.
10.19*	The North American Coal Corporation Supplemental Retirement Benefit Plan (Amended and Restated as of January 1, 2008) is incorporated herein by reference to Exhibit 10.12 to the Company’s Current Report on Form 8-K, filed by the Company on December 19, 2007, Commission File Number 1-9172.
10.2010.14		The North American Coal Corporation Long-Term Incentive Compensation Plan (Effective as of January 1, 2016) is is incorporated herein by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed by the Company on May 11, 2016, Commission File Number 1-9172.
10.21*	Amendment No. 1 to The North America Coal Corporation Supplemental Retirement Benefit Plan (Amended and Restated as of January 1, 2008) is incorporated herein by reference to Exhibit 10.41 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2009, Commission File Number 1-9172.
10.2210.15		The North American Coal Corporation Annual Incentive Compensation Plan (Amended and Restated Effective March 1, 2015) is incorporated herein by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K, filed by the Company on May 18, 2015, Commission File Number 1-9172.
10.2310.16		Amendment No. 2 to The North American Coal Corporation Supplemental Retirement Benefit Plan (Amended and Restated as of January 1, 2008) is incorporated herein by reference to Exhibit 10.40 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2010, Commission File Number 1-9172.
~~10.24~~10.17		Coteau Lignite Sales Agreement by and between The Coteau Properties Company and Dakota Coal Company, dated as of January 1, 1990, is incorporated herein by reference to Exhibit 10.11 to the Company’s Quarterly Report on Form 10-Q/A, filed by the Company on March 20, 2013, Commission File Number 1-9172.+
~~10.25~~10.18		First Amendment to Coteau Lignite Sales Agreement by and between The Coteau Properties Company and Dakota Coal Company, dated as of June 1, 1994, is incorporated herein by reference to Exhibit 10.12 to the Company’s Quarterly Report on Form 10-Q/A, filed by the Company on March 20, 2013, Commission File Number 1-9172.+

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~~10.26~~Exhibit Number						Exhibit Description
10.19						Second Amendment to Coteau Lignite Sales Agreement by and between The Coteau Properties Company and Dakota Coal Company, dated as of January 1, 1997, is incorporated herein by reference to Exhibit 10.13 to the Company’s Quarterly Report on Form 10-Q/A, filed by the Company on March 20, 2013, Commission File Number 1-9172.+
~~10.27~~10.20						Option and Put Agreement by and among The North American Coal Corporation, Dakota Coal Company and the State of North Dakota, dated as of January 1, 1990, is incorporated herein by reference to Exhibit 10.14 to the Company’s Quarterly Report on Form 10-Q/A, filed by the Company on March 20, 2013, Commission File Number 1-9172.
~~10.28~~10.21						First Amendment to the Option and Put Agreement by and among The North American Coal Corporation, Dakota Coal Company and the State of North Dakota, dated as of June 1, 1994, is incorporated herein by reference to Exhibit 10.15 to the Company’s Quarterly Report on Form 10-Q/A, filed by the Company on March 20, 2013, Commission File Number 1-9172.
~~10.29~~10.22						Lignite Sales Agreement by and between Mississippi Lignite Mining Company and Choctaw Generation Limited Partnership, dated as of April 1, 1998, is incorporated herein by reference to Exhibit 10.16 to the Company’s Quarterly Report on Form 10-Q/A, filed by the Company on March 20, 2013, Commission File Number 1-9172.+
~~10.30~~10.23						First Amendment to Lignite Sales Agreement by and between Mississippi Lignite Mining Company and Choctaw Generation Limited Partnership, dated as of August 30, 2016, is incorporated herein by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q, filed by the Company on November 1, 2016, Commission File Number 1-9172.+
~~10.31~~10.24						Pay Scale Agreement by and between Mississippi Lignite Mining Company and Choctaw Generation Limited Partnership, dated as of September 29, 2005, is incorporated herein by reference to Exhibit 10.17 to the Company’s Quarterly Report on Form 10-Q/A, filed by the Company on March 20, 2013, Commission File Number 1-9172.
~~10.32~~10.25						Consent and Agreement by and among Mississippi Lignite Mining Company, Choctaw Generation Limited Partnership, SE Choctaw L.L.C. and Citibank, N.A., dated as of December 20, 2002, is incorporated herein by reference to Exhibit 10.29 to the Company’s Quarterly Report on Form 10-Q/A, filed by the Company on March 20, 2013, Commission File Number 1-9172.

~~Table of Contents~~


10.26
~~Exhibit Number~~	~~Exhibit Description~~
10.33**	Amendment No. 1 to Lignite Sales Agreement, Settlement Agreement and Release by and between Mississippi Lignite Mining Company and Choctaw Generation Limited Partnership, LLLP, dated as of November 16, 2018, is incorporated herein by reference to Exhibit 10.33 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2018, Commission File Number 1-9172.
~~10.34~~10.27		Second Restatement of Coal Sales Agreement by and between The Falkirk Mining Company and Great River Energy, dated as of January 1, 2007, is incorporated herein by reference to Exhibit 10.18 to the Company’s Quarterly Report on Form 10-Q/A, filed by the Company on March 20, 2013, Commission File Number 1-9172.+
~~10.35~~10.28		Amendment No. 1 to Second Restatement of Coal Sales Agreement, by and between The Falkirk Mining Company and Great River Energy, dated as of January 21, 2011, is incorporated herein by reference to Exhibit 10.19 to the Company’s Quarterly Report on Form 10-Q/A, filed by the Company on March 20, 2013, Commission File Number 1-9172.
~~10.36~~10.29		Amendment No. 2 to Second Restatement of Coal Sales Agreement, by and between The Falkirk Mining Company and Great River Energy, dated as of March 1, 2014, is incorporated herein by reference to Exhibit 10.52 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2013, Commission File Number 1-9172.
10.37**10.30		Amendment No. 3 to Second Restatement of Coal Sales Agreement, by and between The Falkirk Mining Company and Great River Energy, dated as of January 1, 2019, is incorporated herein by reference to Exhibit 10.37 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2018, Commission File Number 1-9172.
~~10.38~~10.31		Restatement of Option Agreement by and among The Falkirk Mining Company, Cooperative Power Association, United Power Association, and the State of North Dakota, dated as of January 1, 1997, is incorporated herein by reference to Exhibit 10.20 to the Company’s Quarterly Report on Form 10-Q/A, filed by the Company on March 20, 2013, Commission File Number 1-9172.
~~10.39~~10.32		Third Restatement of Lignite Mining Agreement by and between The Sabine Mining Company and Southwestern Electric Power Company, dated as of January 1, 2008, is incorporated herein by reference to Exhibit 10.21 to the Company’s Quarterly Report on Form 10-Q/A, filed by the Company on March 20, 2013, Commission File Number 1-9172.+
~~10.40~~10.33		Amendment No. 1 to Third Restatement of Lignite Mining Agreement by and between The Sabine Mining Company and Southwestern Electric Power Company, dated as of October 18, 2013 is incorporated herein by reference to Exhibit 10.43 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2014, Commission File Number 1-9172.

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~~10.41~~Exhibit Number						Exhibit Description
10.34						Option Agreement by and among The North American Coal Corporation, Southwestern Electric Power Company and Longview National Bank, dated as of January 15, 1981, is incorporated herein by reference to Exhibit 10.22 to the Company’s Quarterly Report on Form 10-Q/A, filed by the Company on March 20, 2013, Commission File Number 1-9172.
~~10.42~~10.35						Addendum to Option Agreement, by and among The North American Coal Corporation, Southwestern Electric Power Company and Longview National Bank, dated as of January 15, 1981 is incorporated herein by reference to Exhibit 10.23 to the Company’s Quarterly Report on Form 10-Q/A, filed by the Company on March 20, 2013, Commission File Number 1-9172.
~~10.43~~10.36						Amendment to Option Agreement, by and among The North American Coal Corporation, Southwestern Electric Power Company and Longview National Bank, dated as of December 2, 1996, is incorporated herein by reference to Exhibit 10.24 to the Company’s Quarterly Report on Form 10-Q/A, filed by the Company on March 20, 2013, Commission File Number 1-9172.
~~10.44~~10.37						Second Amendment to Option Agreement, by and among The North American Coal Corporation, Southwestern Electric Power Company and Regions Bank, dated as of January 1, 2008, is incorporated herein by reference to Exhibit 10.25 to the Company’s Quarterly Report on Form 10-Q/A, filed by the Company on March 20, 2013, Commission File Number 1-9172.
~~10.45~~10.38						Agreement by and among The North American Coal Corporation, Southwestern Electric Power Company, Texas Commerce Bank-Longview, Nortex Mining Company and The Sabine Mining Company, dated as of June 30, 1988, is incorporated herein by reference to Exhibit 10.26 to the Company’s Quarterly Report on Form 10-Q/A, filed by the Company on March 20, 2013, Commission File Number 1-9172.
~~10.46~~10.39						Lignite Sales Agreement between Coyote Creek Mining Company, L.L.C. and Otter Tail Power Company, Northern Municipal Power Agency, Montana-Dakota Utilities Co. and Northwestern Corporation dated as of October 10, 2012 is incorporated herein by reference to Exhibit 10.58 to the Company’s Annual Report on Form 10-K, filed by the Company on March 6, 2013, Commission File Number 1-9172.++

~~Table of Contents~~


10.40
~~Exhibit Number~~	~~Exhibit Description~~
~~10.47~~	First Amendment to Lignite Sales Agreement, dated as of January 30, 2014, between Coyote Creek Mining Company, L.L.C. and Otter Tail Power Company, Northern Municipal Power Agency, Montana-Dakota Utilities Co., a division of MDU Resources Group, Inc. and NorthWestern Corporation is incorporated herein by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 8-K, filed by the Company on January 30, 2014, Commission File Number 1-9172.
~~10.48~~10.41		Second Amendment to Lignite Sales Agreement, dated as of March 16, 2015, between Coyote Creek Mining Company, L.L.C. and Otter Tail Power Company, Northern Municipal Power Agency, Montana-Dakota Utilities Co., a division of MDU Resources Group, Inc., and NorthWestern Corporation is incorporated herein by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q, filed by the Company on May 5, 2015, Commission File Number 1-9172.
10.4910.42		Amendment No. 3 to The North American Coal Corporation Supplemental Retirement Benefit Plan (Amended and Restated as of January 1, 2008) is incorporated herein by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q, filed by the Company on October 30, 2013, Commission File Number 1-9172.
10.5010.43		Amendment No. 4 to The North American Coal Corporation Supplemental Retirement Benefit Plan (Amended and Restated as of January 1, 2008) is incorporated herein by reference to Exhibit 10.54 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2014, Commission File Number 1-9172.
10.5110.44		Amendment No. 5 to The North American Coal Corporation Supplemental Retirement Benefit Plan (Amended and Restated as of January 1, 2008) is incorporated herein by reference to Exhibit 10.57 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2015, Commission File Number I-9172.
10.5210.45		Amendment No. 6 to The North American Coal Corporation Supplemental Retirement Benefit Plan (Amended and Restated as of January 1, 2008) is incorporated herein by reference to Exhibit 10.52 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2016, Commission File Number I-9172.
~~10.53~~10.46		Agreement, dated as of March 16, 2015, among The North American Coal Corporation, Otter Tail Power Company, Northern Municipal Power Agency, Montana-Dakota Utilities Co., a division of MDU Resources Group, Inc. and Northwestern Corporation is incorporated herein by reference to Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q, filed by the Company on May 5, 2015, Commission File Number 1-9172.
~~10.54~~10.47		The North American Coal Corporation Excess Retirement Plan (Amended and Restated Effective January 1, ~~2016)~~2020) is incorporated herein by reference to Exhibit ~~10.60~~10.1 to the Company's ~~Annual~~Current Report on Form ~~10-K for~~8-K, filed by the ~~fiscal year ended~~Company on December ~~31, 2015,~~18, 2019, Commission File Number 1-9172.
~~10.55~~10.48		Amended and Restated Credit Agreement by and among The North American Coal Corporation and the Lenders party thereto and KeyBank National Association as Syndication Agent, PNC Bank National Association as Administrative Agent and KeyBanc Capital Markets Inc. and PNC Capital Markets LLC as Joint Lead Arrangers and Joint Bookrunners, dated as of August 11, 2017 is incorporated herein by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K, filed by the Company on August 15, 2017, Commission File Number 1-9172.

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(21) Subsidiaries. A list of the subsidiaries of the Company is attached hereto as Exhibit 21.

(23) Consents of experts and counsel.



23.1						Consents of experts and counsel.

(24) Powers of Attorney.



24.1		A copy of a power of attorney for John S. Dalrymple is attached hereto as Exhibit 24.1.
24.2		A copy of a power of attorney for John P. Jumper is attached hereto as Exhibit 24.2.
24.3		A copy of a power of attorney for Dennis W. LaBarre is attached hereto as Exhibit 24.3.
24.4		~~A copy of a power of attorney for Timothy K. Light is attached hereto as Exhibit 24.4.~~
~~24.5~~	A copy of a power of attorney for Michael S. Miller is attached hereto as Exhibit ~~24.5.~~24.4 .
~~24.6~~24.5		A copy of a power of attorney for Richard de J. Osborne is attached hereto as Exhibit ~~24.6.~~24.5 .
~~24.7~~24.6		A copy of a power of attorney for Alfred M. Rankin, Jr. is attached hereto as Exhibit ~~24.7.~~24.6 .
~~24.8~~24.7		A copy of a power of attorney for Matthew M. Rankin is attached hereto as Exhibit ~~24.8.~~24.7 .
~~24.9~~24.8		A copy of a power of attorney for Roger F. Rankin is attached hereto as Exhibit 24.8 .
24.9		A copy of a power of attorney for Lori J. Robinson is attached hereto as Exhibit 24.9 .
24.10		A copy of a power of attorney for Robert S. Shapard is attached hereto as Exhibit 24.10.
24.11		A copy of a power of attorney for Britton T. Taplin is attached hereto as Exhibit ~~24.9.~~24.1
~~24.10~~	~~A copy of a power of attorney for David B.H. Williams is attached hereto as Exhibit 24.10.~~1 .

~~Table of Contents~~

(31) Rule 13a-14(a)/15d-14(a) Certifications.



31(i)(1)		Certification of J.C. Butler, Jr. pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act is attached hereto as Exhibit 31(i)(1).
31(i)(2)		Certification of Elizabeth I. Loveman pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act is attached hereto as Exhibit 31(i)(2).
(32)		Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, signed and dated by J.C. Butler, Jr. and Elizabeth I. Loveman.
(95)		Mine Safety Disclosure Exhibit is attached hereto as Exhibit 95.
~~(99)~~	Other exhibits not otherwise required to be filed. Audited Combined Financial Statements for The Unconsolidated Mines of the North American Coal Corporation, dated December 31, 2018 and 2017 with Report of Independent Auditors is attached hereto as Exhibit 99.**

~~101.SCH~~	~~XBRL Taxonomy Extension Schema Document~~
~~101.CAL~~	~~XBRL Taxonomy Extension Calculation Linkbase Document~~
~~101.DEF~~	~~XBRL Taxonomy Extension Definition Linkbase Document~~
~~101.LAB~~	~~XBRL Taxonomy Extension Label Linkbase Document~~
~~101.PRE~~	~~XBRL Taxonomy Extension Presentation Linkbase Document~~



*101.INS						Inline XBRL Instance Document
101.SCH						Inline XBRL Taxonomy Extension Schema Document
101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB						Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase Document
104						Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)


*		Management contract or compensation plan or arrangement required to be filed as an exhibit pursuant to Item15(b) of this Annual Report on Form 10-K.

**		Filed herewith.

+		Portions of Exhibit have been omitted and filed separately with the Securities and Exchange Commission in reliance on Rule 24b-2 and an Order from the Commission granting the Company's request for confidential treatment dated March 27, 2013. Portions for which confidential treatment has been granted have been marked with three asterisks [***] and a footnote indicating "Confidential treatment requested".

++		Portions of Exhibit have been omitted and filed separately with the Securities and Exchange Commission in reliance on Rule 24b-2 and an Order from the Commission granting the Company's request for confidential treatment dated April 2, 2013. Portions for which confidential treatment has been granted have been marked with three asterisks [***] and a footnote indicating "Confidential treatment requested".

~~+++~~	Portions of Exhibit have been omitted and filed separately with the Securities and Exchange Commission in reliance on Rule 24b-2 and an Order from the Commission granting the Company's request for confidential treatment dated June 17, 2013. Portions for which confidential treatment has been granted have been marked with three asterisks [***] and a footnote indicating "Confidential treatment requested".

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

NACCO Industries, Inc.

By:

/s/ Elizabeth I. Loveman

Elizabeth I. Loveman

Vice President and Controller

(principal financial and accounting officer)

March ~~6, 2019~~3, 2021

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Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.



/s/ J.C. Butler, Jr.					President and Chief Executive Officer (principal executive officer)		March ~~6, 2019~~3, 2021
J.C. Butler, Jr.

/s/ Elizabeth I. Loveman					Vice President and Controller (principal financial and accounting officer)		March ~~6, 2019~~3, 2021
Elizabeth I. Loveman

*John S. Dalrymple					Director		March ~~6, 2019~~3, 2021
John S. Dalrymple

* John P. Jumper					Director		March ~~6, 2019~~3, 2021
John P. Jumper

*Timothy K. Light			~~Director~~	~~March 6, 2019~~
~~Timothy K. Light~~

* Dennis W. LaBarre			Director			March ~~6, 2019~~3, 2021
Dennis W. LaBarre

* Michael S. Miller					Director		March ~~6, 2019~~3, 2021
Michael S. Miller

* Richard de J. Osborne					Director		March ~~6, 2019~~3, 2021
Richard de J. Osborne

* Alfred M. Rankin, Jr.					Director		March ~~6, 2019~~3, 2021
Alfred M. Rankin, Jr.

* Matthew M. Rankin					Director		March ~~6, 2019~~3, 2021
Matthew M. Rankin

* Roger F. Rankin					Director		March 3, 2021
Roger F. Rankin

*Lori J. Robinson					Director		March 3, 2021
Lori J. Robinson

*Robert S. Shapard					Director		March 3, 2021
Robert S. Shapard

* Britton T. Taplin					Director		March ~~6, 2019~~3, 2021
Britton T. Taplin

* David B. H. Williams	~~Director~~	~~March 6, 2019~~
~~David B. H. Williams~~

* Elizabeth I. Loveman, by signing her name hereto, does hereby sign this Form 10-K on behalf of each of the above named and designated directors of the Company pursuant to a Power of Attorney executed by such persons and filed with the Securities and Exchange Commission.



/s/ Elizabeth I. Loveman						March ~~6, 2019~~3, 2021
Elizabeth I. Loveman, Attorney-in-Fact

Table of Contents

ANNUAL REPORT ON FORM 10-K

ITEM 8, ITEM 15(a)(1) AND (2), AND ITEM 15(c)

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

LIST OF FINANCIAL STATEMENTS AND FINANCIAL STATEMENT SCHEDULES

FINANCIAL STATEMENTS

FINANCIAL STATEMENT SCHEDULES

YEAR ENDED DECEMBER 31, ~~2018~~2020

NACCO INDUSTRIES, INC.

CLEVELAND, OHIO

F-1

Table of Contents

FORM 10-K

ITEM 15(a)(1) AND (2)

NACCO INDUSTRIES, INC. AND SUBSIDIARIES

LIST OF FINANCIAL STATEMENTS AND FINANCIAL STATEMENT SCHEDULES

The following consolidated financial statements of NACCO Industries, Inc. and Subsidiaries are incorporated by reference in Item 8:



Report of Ernst & Young LLP, Independent Registered Public Accounting Firm — For each of the two years in the period ended December 31, ~~2018.~~2020.			F-~~F-3~~3
Report of Ernst & Young LLP, Independent Registered Public Accounting Firm on Internal Control ~~over~~Over Financial Reporting — As of December 31, ~~2018.~~2020.			F-~~F-4~~5
Consolidated Statements of Operations			F-~~F-5~~6
Consolidated Statements of Comprehensive Income (Loss)			F-~~F-6~~7
Consolidated Balance Sheets			F-~~F-7~~8
Consolidated Statements of Cash Flows			F-~~F-8~~9
Consolidated Statements of Equity			F-~~F-9~~10
Notes to Consolidated Financial Statements			F-~~F-10~~11

The following consolidated financial statement schedules of NACCO Industries, Inc. and Subsidiaries are included in Item 15(c):



Schedule I — Condensed Financial Information of the Parent
Schedule II — Valuation and Qualifying Accounts

All other schedules for which provision is made in the applicable accounting regulation of the SEC are not required under the related instructions or are inapplicable, and therefore have been omitted.

F-2

Table of Contents

Report of Independent Registered Public Accounting Firm

To the Stockholders and Board of Directors ~~and Stockholders~~ of NACCO Industries, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of NACCO Industries, Inc. and Subsidiaries (the Company) as of December 31, ~~2018~~2020 and ~~2017,~~2019, the related consolidated statements of operations, comprehensive income (loss), equity and cash flows for ~~each of~~ the ~~two~~ years ~~in the period~~then ended, ~~December 31, 2018,~~ and the related notes and the financial statement schedules listed in the Index at Item 15(a) (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, ~~2018~~2020 and ~~2017,~~2019, and the results of its operations and its cash flows for ~~each of~~ the ~~two~~ years ~~in the period~~then ended, ~~December 31, 2018,~~ in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, ~~2018,~~2020, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated March ~~6, 2019~~3, 2021 expressed an unqualified opinion thereon.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit review committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the account or disclosure to which it relates.

F-3

Table of Contents

Asset Retirement Obligations Liability



~~/s/ Ernst & Young LLP~~Description of the Matter			At December 31, 2020, the Company’s aggregate asset retirement obligations were approximately $41.7 million. As discussed in Note 7 to consolidated financial statements, the Company’s obligations associated with the retirement of long-lived assets are recognized at fair value at the time the legal obligations are incurred. Upon initial recognition of a liability, a corresponding amount is capitalized as part of the carrying value of the related long-lived asset. The Company reviewed its asset retirement obligations at each mine site and made necessary adjustments for permit changes and for revisions of estimates of the timing and extent of reclamation activities and cost estimates. Management’s estimate involves a high degree of subjectivity and auditing the significant assumptions utilized by management in estimating the fair value of the liability requires judgement. In particular, the obligation’s fair value is determined using a discounted cash flow technique and is based upon mining permit requirements and various assumptions including credit adjusted risk-free-rates, estimates of disturbed acreage, life of the mine, estimated reclamation costs, the application of various environmental laws and regulations and assumptions regarding equipment productivity.
How We Addressed the Matter in Our Audit			We obtained an understanding, evaluated and tested the design and operating effectiveness of the controls surrounding the Company’s processes to determine the fair value of the asset retirement obligations. This included controls related to estimating the future cash expenditures to reclaim each mine site and other key assumptions underlying the calculation of the obligation. To test the asset retirement obligation, our audit procedures included, among other things, evaluating the methodology used, the significant assumptions referenced above, and the underlying data used by the Company. We evaluated the credit-adjusted risk-free rate applied to calculate the net present value of the obligation as compared to observable market data. We involved our mine reclamation specialists to assist in testing the significant assumptions. Specifically, we evaluated the estimates of the life of mines the Company used in calculating its significant reclamation obligations based on the known mineral reserves and expected production, and consideration of the estimate of disturbed acreage through inspection of permits, approved site restoration plans and restoration area schematics. We assessed the identification of reclamation activities by the Company’s mine engineers by comparison to environmental laws and regulations and the likely cost of the reclamation activities as determined by the Company’s mine engineers compared with historical amounts, published pricing data and other publicly available information. We recalculated the reclamation obligations using management’s model.

/s/ Ernst & Young LLP

We have served as the Company’s auditor since 2002.

Cleveland, Ohio

March ~~6, 2019~~3, 2021

~~F-3~~

F-4

Table of Contents

Report of Independent Registered Public Accounting Firm

To the Stockholders and Board of Directors ~~and Stockholders~~ of NACCO Industries, Inc.

Opinion on Internal Control ~~over~~Over Financial Reporting

We have audited NACCO Industries, Inc. and Subsidiaries’internal control over financial reporting as of December 31, ~~2018,~~2020, based on criteria established in Internal ~~Control-Integrated~~Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) ~~(the~~(the COSO criteria). In our opinion, NACCO Industries, Inc. and Subsidiaries (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, ~~2018,~~2020, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the ~~2018~~2020 consolidated financial statements of the Company and our report dated March ~~6, 2019~~3, 2021 expressed an unqualified opinion thereon.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s report on internal control over financial reporting in Item 9A. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

~~/s/ Ernst & Young LLP~~

/s/ Ernst & Young LLP

Cleveland, Ohio

March ~~6, 2019~~3, 2021

~~F-4~~

F-5

Table of Contents

NACCO INDUSTRIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

Year Ended December 31
2018 2017
(In thousands, except per share data)
Revenue - consolidated mines $ 117,869
$ 92,008
Revenue - royalty and other 17,506
12,770
Total revenues 135,375
104,778
Cost of sales - consolidated mines 102,922
85,657
Cost of sales - royalty and other 2,485
2,202
Total cost of sales 105,407
87,859
Gross profit 29,968
16,919
Earnings of unconsolidated operations 64,994
61,361
Operating expenses
Selling, general and administrative expenses 49,192
47,491
Centennial asset impairment charge —
982
Amortization of intangible assets 3,038
2,123
Gain on sale of assets (892 ) (5,130 )
51,338
45,466
Operating profit 43,624
32,814
Other expense (income)
Interest expense 1,998
3,440
Income from other unconsolidated affiliates (1,276 ) (1,246 )
Closed mine obligations 1,297
1,590
Other, net, including interest income (558 ) (72 )
1,461
3,712
Income from continuing operations before income tax provision 42,163
29,102
Income tax provision from continuing operations 7,378
639
Income from continuing operations 34,785
28,463
Discontinued operations, net of tax expense of $2,162 in 2017 —
1,874
Net income $ 34,785
$ 30,337

Basic earnings per share:
Continuing operations $ 5.02
$ 4.17
Discontinued operations —
0.27
Basic earnings per share $ 5.02
$ 4.44

Diluted earnings per share:
Continuing operations $ 5.00
$ 4.14
Discontinued operations —
0.27
Diluted earnings per share $ 5.00
$ 4.41

Basic weighted average shares outstanding 6,924
6,830
Diluted weighted average shares outstanding 6,960
6,873


	Year Ended December 31
	2020		2019
	(In thousands, except per share data)
Revenues	$	128,432	$	140,990
Cost of sales	111,463		109,862
Gross profit	16,969		31,128
Earnings of unconsolidated operations	60,203		63,883
Operating expenses
Selling, general and administrative expenses	53,062		53,783
Amortization of intangible assets	2,572		2,614
Gain on sale of assets	(269)		(206)
Asset impairment charges	8,359		0
	63,724		56,191
Operating profit	13,448		38,820
Other (income) expense
Interest expense	1,354		872
Interest income	(1,200)		(3,616)
Income from other unconsolidated affiliates	(239)		(1,300)
Closed mine obligations	1,641		1,537
Gain on equity securities	(1,226)		(1,545)
Other, net	(1,140)		(527)
	(810)		(4,579)
Income before income tax (benefit) provision	14,258		43,399
Income tax (benefit) provision	(535)		3,767
Net income	$	14,793	$	39,632

Earnings per share:
Basic earnings per share	$	2.11	$	5.68
Diluted earnings per share	$	2.10	$	5.66

Basic weighted average shares outstanding	7,026		6,974
Diluted weighted average shares outstanding	7,057		7,007

See notes to ~~consolidated financial statements.~~

the Consolidated Financial Statements.

~~F-5~~

F-6

Table of Contents

NACCO INDUSTRIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Year Ended December 31
2018 2017
(In thousands)
Net income $ 34,785
$ 30,337
Other comprehensive income (loss)
Foreign currency translation adjustment —
1,725
Deferred gain on available for sale securities, net of tax —
834
Current period cash flow hedging activity, net of $941 tax expense in 2017 —
1,543
Reclassification of hedging activities into earnings, net of $1,255 tax expense in 2017 —
(2,369 )
Current period pension and postretirement plan adjustment, net of $14 tax benefit in 2018 and net of $440 tax expense in 2017, respectively (301 ) 749
Reclassification of pension and postretirement adjustments into earnings, net of $85 and $363 tax benefit in 2018 and 2017, respectively 489
582
Total other comprehensive income 188
3,064
Comprehensive income $ 34,973
$ 33,401


	Year Ended December 31
	2020		2019
	(In thousands)
Net income	$	14,793	$	39,632
Other comprehensive income
Current period pension and postretirement plan adjustment, net of $213 tax benefit and $226 tax expense in 2020 and 2019, respectively	(697)		758
Pension settlement, net of $202 tax benefit in 2019	0		671
Reclassification of pension and postretirement adjustments into earnings, net of $129 and $90 tax benefit in 2020 and 2019, respectively	435		845
Total other comprehensive income	(262)		2,274
Comprehensive income	$	14,531	$	41,906

See notes to ~~consolidated financial statements.~~the Consolidated Financial Statements.

~~F-6~~

F-7

Table of Contents

NACCO INDUSTRIES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS


	December 31							December 31
	2018			2017				2020		2019
	(In thousands, except share data)							(In thousands, except share data)
ASSETS							ASSETS
Current assets							Current assets
Cash and cash equivalents	$	85,257		$	101,600		Cash and cash equivalents	$	88,450	$	122,892
Trade accounts receivable, net of allowances of $1,523 in 2018 and 2017	20,817			14,611
Trade accounts receivable							Trade accounts receivable	18,894		15,444
Accounts receivable from affiliates	7,999			19,919			Accounts receivable from affiliates	4,764		6,411
Inventories	31,209			30,015			Inventories	47,551		40,465
Assets held for sale	4,330			—
Refundable federal income taxes							Refundable federal income taxes	17,615		8,928
Prepaid expenses and other	14,562			10,843			Prepaid expenses and other	10,872		6,528
Total current assets	164,174			176,988			Total current assets	188,146		200,668
Property, plant and equipment, net	124,554			120,068			Property, plant and equipment, net	172,417		138,061
Intangibles, net	40,516			43,554			Intangibles, net	35,330		37,902
Deferred income taxes	—			5,962

Investment in unconsolidated subsidiaries	20,091			16,335			Investment in unconsolidated subsidiaries	28,978		24,611
Deferred costs	3,244			3,582

Operating lease right-of-use assets							Operating lease right-of-use assets	10,324		11,398
Other non-current assets	24,412			23,063			Other non-current assets	40,984		32,133
Total assets	$	376,991		$	389,552		Total assets	$	476,179	$	444,773
LIABILITIES AND EQUITY							LIABILITIES AND EQUITY
Current liabilities							Current liabilities
Accounts payable	$	7,746		$	7,575		Accounts payable	$	5,522	$	9,374
Accounts payable to affiliates	1,653			1,925			Accounts payable to affiliates	125		577
Revolving credit agreements	4,000			15,000			Revolving credit agreements	20,000		7,000
Current maturities of long-term debt	654			1,125			Current maturities of long-term debt	2,112		795
Asset retirement obligations	1,826			3,092			Asset retirement obligations	1,844		2,285
Accrued payroll	19,853			17,204			Accrued payroll	14,430		19,583
Deferred compensation							Deferred compensation	0		13,465

Other current liabilities	6,516			8,055			Other current liabilities	8,224		8,887
Total current liabilities	42,248			53,976			Total current liabilities	52,257		61,966
Long-term debt	6,367			42,021			Long-term debt	24,353		17,148
Operating lease liabilities							Operating lease liabilities	11,196		12,448
Asset retirement obligations	35,877			37,005			Asset retirement obligations	39,888		34,574
Pension and other postretirement obligations	10,429			11,827			Pension and other postretirement obligations	8,838		8,807
Deferred income taxes	2,846			—			Deferred income taxes	17,550		12,338
Deferred compensation	12,939			12,939
Liability for uncertain tax positions							Liability for uncertain tax positions	9,413		1,912
Other long-term liabilities	15,581			12,336			Other long-term liabilities	12,060		6,188
Total liabilities	126,287			170,104			Total liabilities	175,555		155,381
Stockholders’ equity							Stockholders’ equity
Common stock:							Common stock:
Class A, par value $1 per share, 5,352,590 shares outstanding (2017 - 5,282,106 shares outstanding)	5,352			5,282
Class B, par value $1 per share, convertible into Class A on a one-for-one basis, 1,568,810 shares outstanding (2017 - 1,570,146 shares outstanding)	1,569			1,570
Class A, par value $1 per share, 5,489,615 shares outstanding (2019 - 5,397,458 shares outstanding)							Class A, par value $1 per share, 5,489,615 shares outstanding (2019 - 5,397,458 shares outstanding)	5,490		5,397
Class B, par value $1 per share, convertible into Class A on a 1-for-one basis, 1,568,210 shares outstanding (2019 - 1,568,670 shares outstanding)							Class B, par value $1 per share, convertible into Class A on a 1-for-one basis, 1,568,210 shares outstanding (2019 - 1,568,670 shares outstanding)	1,568		1,569
Capital in excess of par value	7,042			4,447			Capital in excess of par value	10,895		8,911
Retained earnings	250,352			216,490			Retained earnings	294,270		284,852
Accumulated other comprehensive loss	(13,611		)	(8,341		)	Accumulated other comprehensive loss	(11,599)		(11,337)
Total stockholders’ equity	250,704			219,448			Total stockholders’ equity	300,624		289,392
Total liabilities and equity	$	376,991		$	389,552		Total liabilities and equity	$	476,179	$	444,773



(Mark One)
þ☑	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the fiscal year ended	December 31, ~~2018~~2020



~~Quarry~~Location Name	Location	~~Quarry Owner~~Customer	Year ~~NACoal~~NACCO Started ~~Dragline~~ Operations
White Rock ~~Quarry~~ — North	Miami	WRQ	1995
Krome ~~Quarry~~	Miami	Cemex	2003
Alico ~~Quarry~~	Ft. Myers	Cemex	2004
FEC ~~Quarry~~	Miami	Cemex	2005
~~White Rock Quarry — South~~SCL	Miami	~~WRQ~~Cemex	~~2005~~2006
~~SCL Quarry~~Card Sound	~~Miami~~Florida City	Cemex	~~2006~~2009
Central State Aggregates ~~Quarry~~	Zephyrhills	McDonald Group	2016
Mid Coast Aggregates ~~Quarry~~	Sumter County	McDonald Group	2016
West Florida Aggregates ~~Quarry~~	Hernando County	McDonald Group	2016
St. Catherine ~~Quarry~~	Sumter County	Cemex	2016
Center Hill ~~Quarry~~	Sumter County	Cemex	2016
Inglis ~~Quarry~~	Crystal River	Cemex	2016
Titan Corkscrew ~~Quarry~~	Ft. Myers	Titan America	2017
Palm Beach Aggregates ~~Quarry~~	Loxahatchee	Palm Beach Aggregates	2017
Perry ~~Quarry~~	Lamont	Martin Marietta	2018
SDI Aggregates ~~Quarry~~	Florida City	Blue Water Industries	2018
Queensfield ~~Mine~~	King William County, VA	King William Sand and Gravel Company, Inc.	2018
County Line	Pasco County	K&M Pasco 130 Holdings, LLC	2019
Newberry	Alachua County	Argos USA, LLC	2019
Titan Pennsuco	Miami	Titan America	2020


Location	Mining Method	Total Historical Cost of Mine Property, Plant and Equipment (excluding Coal Land, Real Estate and Construction in Progress), Net of Applicable Accumulated Amortization, Depreciation and Impairment
		(in millions)
Unconsolidated Mining Operations
Freedom Mine — The Coteau Properties Company	Dragline operation with 3 draglines	$	81.5
Falkirk Mine — The Falkirk Mining Company	Dragline operation with 4 draglines	$	157.6
South Hallsville No. 1 Mine — The Sabine Mining Company	Dragline operation with 4 draglines	$	110.5
Five Forks Mine — Demery Resources Company, LLC	Truck-shovel operation	$	—
Coyote Creek Mine — Coyote Creek Mining Company, LLC	Dragline operation with 1 dragline	$	140.9
Navajo Mine — Bisti Fuels Company, LLC	Dragline operation with 2 draglines	$	—

Consolidated Mining Operations
Red Hills Mine — Mississippi Lignite Mining Company	Dragline operation with 1 dragline	$	63.6
Marshall Mine — Caddo Creek Resources Company, LLC	N/A	$	—
Eagle Pass Mine — Camino Real Fuels, LLC	N/A	$	—
NAMining	(a)	$	12.0
Other	N/A	$	1.2



~~Name~~	~~Age~~	~~Current Position~~	~~Other Positions~~

~~J.C. Butler, Jr.~~	58	~~President and Chief Executive Officer of NACCO (from September 2017) and President and Chief Executive Officer of NACoal (from July 2015)~~	From prior to 2014 to September 2017, Senior Vice President - Finance, Treasurer and Chief Administrative Officer of NACCO. From prior to 2014 to September 2017, Assistant Secretary of HBB and KC. From July 2014 to July 2015, Senior Vice President - Project Development, Administration and Mississippi Operations of NACoal. From prior to 2014 to June 2014, Senior Vice President - Project Development and Administration of NACoal.

~~Elizabeth I. Loveman~~	49	~~Vice President and Controller (from March 2014) and Principal Financial Officer (from June 2014)~~	~~From prior to 2014 to March 2014, Director of Financial Reporting of NACCO.~~

~~John D. Neumann~~	43	~~Vice President, General Counsel and Secretary of NACCO, Vice President, General Counsel and Secretary of NACoal (from prior to 2014)~~	~~From prior to 2014 to September 2017, Assistant Secretary of HBB and KC.~~

~~Miles B. Haberer~~	52	Associate General Counsel of NACCO (from prior to 2014), Associate General Counsel, Assistant Secretary of NACoal (from prior to 2014) and President, North American Coal Royalty Company (an NACoal subsidiary) (from September 2015)	~~From prior to 2014 to September 2015, Director-Land of NACoal. From prior to 2014 to September 2015, Assistant Secretary of NACCO.~~

~~Jesse L. Adkins~~	36	~~Associate Counsel and Assistant Secretary of NACCO, Associate Counsel and Assistant Secretary of NACoal (from prior to 2014)~~

~~Sarah E. Fry~~	43	~~Associate General Counsel and Assistant Secretary of NACCO (from May 2017), Associate General Counsel and Assistant Secretary of NACoal (from May 2017),~~	From January 2015 to April 2017, Senior Counsel, Locke Lord (law firm). From March 2014 to December 2014, Partner, Culhane Meadows (law firm). From prior to 2014 to March 2014, Associate, Conner and Winters (law firm).

~~Thomas A. Maxwell~~	41	~~Vice President - Financial Planning and Analysis and~~ ~~Treasurer (from September 2017)~~	~~From September 2015 to September 2017, Director of Financial Planning and Analysis and Assistant Treasurer.~~ ~~From January 2014 to September 2015, Senior Manager, Finance and Assistant Treasurer. From prior to 2014 to January 2014, Manager of Financial Planning and Analysis.~~



~~Name~~	~~Age~~	~~Current Position~~	~~Other Positions~~

~~Eric A. Dale~~	44	~~Treasurer and Senior Director, Financial Planning and Analysis, of NACoal (from January 2017)~~	~~From prior to 2014 to November 2016, Vice President of Financial Planning and Analysis at Westmoreland Coal Company.~~

~~Carroll L. Dewing~~	62	~~Vice President - Operations of NACoal (from January 2017)~~	~~From prior to 2014 to December 2016, President, The Coteau Properties Company (an NACoal subsidiary).~~ From July 2014 to December 2016, Vice President - North Dakota, Texas and Florida Operations, Human Resources and External Affairs of NACoal. From prior to 2014 to July 2014, Director - Northern Operations of NACoal.

~~Andrew B. Hart~~	40	~~Assistant Controller of NACoal (from November 2017)~~	~~From prior to 2014 to October 2017, Assistant Controller at Rowan Companies, plc.~~

~~LaVern K. Lund~~	46	~~Vice President - Business Development (from May 2017)~~	~~From prior to 2014 to April 2017, President of Liberty.~~

~~John R. Pokorny~~	63	~~Controller of NACoal (from prior to 2014)~~

~~J. Patrick Sullivan, Jr.~~	60	~~Vice President and Chief Financial Officer of NACoal (from prior to 2014)~~

~~Harry B. Tipton, III~~	61	~~Vice President - Engineering of NACoal (from July 2016)~~	From July 2015 to June 2016, Vice President - Engineering, and Alabama, Louisiana and Mississippi Operations of NACoal. From July 2014 to June 2015, Vice President - Engineering, and Alabama and Louisiana Operations of NACoal. From prior to 2014 to June 2014, Vice President - Engineering, and Alabama, Louisiana and Mississippi Operations of NACoal.



¨☐						TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


					Average Coal Quality (As received)
Mine/Reserve	Type of Mine	Coal Formation or Coal Seam(s)	Average Seam Thickness (feet)	Average Depth (feet)	BTUs/lb	Sulfur (%)		Ash (%)		Moisture (%)
Unconsolidated Mines
Freedom Mine (c)- The Coteau Properties Company	Surface Lignite	Beulah-Zap Seam	16	100	6,700	0.90	%	9	%	36	%
Falkirk Mine (c)- The Falkirk Mining Company	Surface Lignite	Hagel A&B, Tavis Creek, Kinneman Creek Seams	8	115	6,200	0.62	%	11	%	38	%
South Hallsville No. 1 Mine (c)(f)- The Sabine Mining Company	Surface Lignite	Wilcox Formation	3	85	6,448	0.79	%	18.2	%	32	%
Five Forks Mine (c)(f)- Demery Resources Company, LLC	Surface Lignite	Wilcox Formation I Seam	4.4	44	7,033	0.44	%	7.8	%	37	%
Marshall Mine (c)(f)(h)- Caddo Creek Resources Company, LLC	Surface Lignite	(h)	(h)	(h)	(h)	(h)		(h)		(h)
Eagle Pass Mine (c)(f)(i)- Camino Real Fuels, LLC	Surface Bituminous	(i)	(i)	(i)	(i)	(i)		(i)		(i)
Coyote Creek Mine (c)- Coyote Creek Mining Company, LLC	Surface Lignite	Beulah-Zap Seam	10	95	6,900	0.93	%	9	%	35	%
Navajo Mine (c)(j)- Bisti Fuels Company	Surface Sub-bituminous	(j)	(j)	(j)	(j)	(j)		(j)		(j)
Consolidated Mines
Red Hills Mine- Mississippi Lignite Mining Company	Surface Lignite	C, D, E, F, G, H Seams	3.4	150	5,100	0.60	%	15	%	43	%
Centennial Natural Resources	Surface Bituminous	Black Creek, New Castle, Mary Lee, Jefferson, American, Nickel Plate, Pratt Seams	1.75	178	13,226	2.00	%	10	%	4	%
Undeveloped Mines
North Dakota	—	Fort Union Formation	13	130	6,500	0.8	%	8	%	38	%
Texas	—	Wilcox Formation	5	120	6,800	1.0	%	16	%	30	%
Eastern	—	Freeport & Kittanning Seams	4	400	12,070	3.3	%	12	%	3	%
Mississippi	—	Wilcox Formation	5	130	5,200	0.6	%	13	%	44	%



Mine	Total Historical Cost of Mine Property, Plant and Equipment (excluding Coal Land, Real Estate and Construction in Progress), Net of Applicable Accumulated Amortization, Depreciation and Impairment
	(in millions)
Unconsolidated Mining Operations
Freedom Mine — The Coteau Properties Company	$	194.0
Falkirk Mine — The Falkirk Mining Company	$	78.8
South Hallsville No. 1 Mine — The Sabine Mining Company	$	145.6
Five Forks Mine — Demery Resources Company, LLC	$	—
Marshall Mine — Caddo Creek Resources Company, LLC	$	—
Eagle Pass Mine — Camino Real Fuels, LLC	$	—
Liberty Mine — Liberty Fuels Company, LLC	$	—
Coyote Creek Mine — Coyote Creek Mining Company, LLC	$	159.3
Navajo Mine — Bisti Fuels Company, LLC	$	—
North American Mining Operations	$	—
Consolidated Mining Operations
Red Hills Mine — Mississippi Lignite Mining Company	$	54.8
North American Mining Operations	$	10.0
Other	$	1.2



Issuer Purchases of Equity Securities ⁽¹⁾
Period	(a) Total Number of Shares Purchased	(b) Average Price Paid per Share		(c) Total Number of Shares Purchased as Part of the Publicly Announced Program	(d) Maximum Number of Shares (or Approximate Dollar Value) that May Yet Be Purchased Under the Program⁽¹⁾
Month #1 (October 1 to 31, 2018)	—	$	—	—	$	24,660,631
Month #2 (November 1 to 30, 2018)	5,255	$	35.00	5,255	$	24,476,706
Month #3 (December 1 to 31, 2018)	23,425	$	32.89	23,425	$	23,706,258
Total	28,680	$	33.28	28,680	$	23,706,258


Issuer Purchases of Equity Securities (1)
Period	~~In February 2018, the Company established a stock repurchase program allowing for the purchase~~(a) Total Number of ~~up to $25.0 million~~Shares Purchased	(b) Average Price Paid per Share		(c) Total Number of Shares Purchased as Part of the ~~Company's Class A Common Stock outstanding through~~ Publicly Announced Program	(d) Maximum Number of Shares (or Approximate Dollar Value) that May Yet Be Purchased Under the Program (1)
October 1 to 31, 2020	—	$	—	—	$	22,659,516
November 1 to 30, 2020	—	$	—	—	$	22,659,516
December 1 to 31, ~~2019. See Note 12 to the Consolidated Financial Statements contained elsewhere in this Form 10-K for a discussion of the Company's stock repurchase program.~~2020	—	$	—	—	$	22,659,516
Total	—	$	—	—	$	22,659,516


	2020			2019
Revenues:
Coal Mining	$	72,088		$	68,701
NAMining	42,392			42,823
Minerals Management	14,721			30,119
Unallocated Items	2,133			790
Eliminations	(2,902)			(1,443)
Total revenue	$	128,432		$	140,990
Operating profit (loss):
Coal Mining	$	25,436		$	34,120
NAMining	1,872			(564)
Minerals Management	3,493			25,721
Unallocated Items	(17,256)			(20,713)
Eliminations	(97)			256
Total operating profit	$	13,448		$	38,820
Interest expense	1,354			872
Interest income	(1,200)			(3,616)
Income from other unconsolidated affiliates	(239)			(1,300)
Closed mine obligations	1,641			1,537
Gain on equity securities	(1,226)			(1,545)
Other, net	(1,140)			(527)
Other income, net	(810)			(4,579)
Income before income tax (benefit) provision	14,258			43,399
Income tax (benefit) provision	(535)			3,767
Net income	$	14,793		$	39,632

Effective income tax rate	(3.8)		%	8.7		%



	2018			2017
NACoal operating profit	$	50,284		$	39,677
NACCO and Other operating loss	(6,660		)	(6,863		)
Operating profit	43,624			32,814
Interest expense	1,998			3,440
Income from other unconsolidated affiliates	(1,276		)	(1,246		)
Closed mine obligations	1,297			1,590
Other, net, including interest income	(558		)	(72		)
Other expense, net	1,461			3,712
Income before income tax provision	42,163			29,102
Income tax provision	7,378			639
Income from continuing operations, net of tax	$	34,785		$	28,463
Discontinued operations, net of tax	—			1,874
Net income	$	34,785		$	30,337

Effective income tax rate from continuing operations	17.5		%	2.2		%



	Payments Due by Period
Contractual Obligations	Total		2019		2020		2021		2022		2023		Thereafter
NACoal Facility	$	4,000	$	4,000	$	—	$	—	$	—	$	—	$	—
Variable interest payments on NACoal Facility	86		86		—		—		—		—		—
Other debt	8,929		567		567		567		567		567		6,094
Other interest	106		29		29		29		19		—		—
Capital lease obligations, including principal and interest	458		437		21		—		—		—		—
Operating leases	21,387		2,387		2,174		2,092		2,116		1,659		10,959
Purchase and other obligations	42,101		42,101		—		—		—		—		—
Total contractual cash obligations	$	77,067	$	49,607	$	2,791	$	2,688	$	2,702	$	2,226	$	17,053



	2018	2017
Coteau	14.2	14.7
Falkirk	8.4	7.2
Sabine	3.8	3.6
Bisti	4.1	3.7
Camino Real	2.1	2.4
Coyote Creek	2.5	2.2
Other	0.4	1.0
Unconsolidated mines	35.5	34.8
MLMC	3.0	2.4
Consolidated mines	3.0	2.4
Total tons delivered	38.5	37.2



	2018			2017
Revenue - consolidated mines	$	117,869		$	92,008
Revenue - royalty and other	17,506			12,770
Total revenues	135,375			104,778
Cost of sales - consolidated mines	102,922			85,657
Cost of sales - royalty and other	2,116			1,923
Total cost of sales	105,038			87,580
Gross profit	30,337			17,198
Earnings of unconsolidated operations (a)	64,994			61,361
Selling, general and administrative expenses	42,901			40,393
Centennial asset impairment charge	—			982
Amortization of intangibles	3,038			2,123
Gain on sale of assets	(892		)	(4,616		)
Operating profit	50,284			39,677
Interest expense	1,996			3,440
Other income, net, including income from other unconsolidated affiliates	(1,259		)	(994		)
Income before income tax expense	$	49,547		$	37,231


																																		Class A Common Stock		Class B Common Stock		Capital in Excess of Par Value		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total Stockholders' Equity
														Accumulated Other Comprehensive Income (Loss)																				(In thousands, except per share data)
	Class A Common Stock			Class B Common Stock			Capital in Excess of Par Value			Retained Earnings			Foreign Currency Translation Adjustment				Deferred Gain (Loss) on Available for Sale Securities				Deferred Gain (Loss) on Cash Flow Hedging				Pension and Postretirement Plan Adjustment				Total Stockholders' Equity
	(In thousands, except per share data)
Balance, January 1, 2017	$	5,208		$	1,571		$	—		$	239,441			$	(7,533	)		$	1,893			$	393			$	(20,680	)		$	220,293
Balance, January 1, 2019																																	Balance, January 1, 2019	$	5,352	$	1,569	$	7,042	$	250,352	$	(13,611)	$	250,704
Stock-based compensation	73			—			4,447			—				—				—				—				—				4,520			Stock-based compensation	117		—		4,807		—		—		4,924
Conversion of Class B to Class A shares	1			(1		)	—			—				—				—				—				—				—
Purchase of treasury shares																																	Purchase of treasury shares	(72)		—		(2,938)		—		—		(3,010)
Net income	—			—			—			30,337				—				—				—				—				30,337			Net income	—		—		—		39,632		—		39,632
Cash dividends on Class A and Class B common stock: $0.9775 per share	—			—			—			(6,682		)		—				—				—				—				(6,682		)
Cash dividends on Class A and Class B common stock: $0.7350 per share																																	Cash dividends on Class A and Class B common stock: $0.7350 per share	—		—		—		(5,132)		—		(5,132)
Current period other comprehensive income, net of tax	—			—			—			—				1,725				834				1,543				749				4,851			Current period other comprehensive income, net of tax	—		—		—		—		758		758
Pension settlement, net of tax																																	Pension settlement, net of tax	—		—		—		—		671		671
Reclassification adjustment to net income, net of tax	—			—			—			—				—				—				(2,369		)		582				(1,787		)	Reclassification adjustment to net income, net of tax	—		—		—		—		845		845
Hamilton Beach Brands Holding Company stock dividend (See Note 3)	$	—		$	—		$	—		$	(46,606	)		5,808				$	—			$	433			$	8,281			(32,084		)
Balance, December 31, 2017	$	5,282		$	1,570		$	4,447		$	216,490			$	—			$	2,727			$	—			$	(11,068	)		$	219,448
ASC 606 adoption (See Note 2)	—			—			—			(1,963		)		—				—				—				—				(1,963		)
ASU 2016-01 adoption (See Note 2)	—			—			—			2,727				—				(2,727		)		—				—				—
ASU 2018-02 adoption (See Note 2)	—			—			—			2,891				—				—				—				(2,731		)		160
Balance, December 31, 2019																																	Balance, December 31, 2019	$	5,397	$	1,569	$	8,911	$	284,852	$	(11,337)	$	289,392
Stock-based compensation	108			—			3,850			—				—				—				—				—				3,958			Stock-based compensation	124		—		2,954		—		—		3,078
Purchase of treasury shares	(39		)	—			(1,255		)	—				—				—				—				—				(1,294		)	Purchase of treasury shares	(32)		—		(970)		—		—		(1,002)
Conversion of Class B to Class A shares	1			(1		)	—			—				—				—				—				—				—			Conversion of Class B to Class A shares	1		(1)		—		—		—		0
Net income	—			—			—			34,785				—				—				—				—				34,785			Net income	—		—		—		14,793		—		14,793
Cash dividends on Class A and Class B common stock: $0.6600 per share	—			—			—			(4,578		)		—				—				—				—				(4,578		)
Cash dividends on Class A and Class B common stock: $0.7675 per share																																	Cash dividends on Class A and Class B common stock: $0.7675 per share	—		—		—		(5,375)		—		(5,375)
Current period other comprehensive income, net of tax	—			—			—			—				—				—				—				(301		)		(301		)	Current period other comprehensive income, net of tax	—		—		—		—		(697)		(697)
Reclassification adjustment to net income, net of tax	—			—			—			—				—				—				—				489				489			Reclassification adjustment to net income, net of tax	—		—		—		—		435		435
Balance, December 31, 2018	$	5,352		$	1,569		$	7,042		$	250,352			$	—			$	—			$	—			$	(13,611	)		$	250,704
Balance, December 31, 2020																																	Balance, December 31, 2020	$	5,490	$	1,568	$	10,895	$	294,270	$	(11,599)	$	300,624


Major Goods/Service Lines	2020		2019
Coal Mining	$	72,088	$	68,701
NAMining	42,392		42,823
Minerals Management	14,721		30,119
Unallocated Items	2,133		790
Eliminations	(2,902)		(1,443)
Total revenues	$	128,432	$	140,990

Timing of Revenue Recognition
Goods transferred at a point in time	$	68,073	$	66,102
Services transferred over time	60,359		74,888
Total revenues	$	128,432	$	140,990



	YEAR ENDED
	DECEMBER 31
Major Goods/Service Lines	2018		2017 ⁽¹⁾
Consolidated operations - long-term contracts	$	117,869	$	92,008
Royalty	17,506		12,770
Total revenues	$	135,375	$	104,778

Timing of Revenue Recognition
Goods transferred at a point in time	$	78,849	$	60,594
Services transferred over time	56,526		44,184
Total revenues	$	135,375	$	104,778


	Contract balances
	Trade accounts receivable, net		Long-term asset		Contract liability (current)		Contract liability (long-term)
Balance at January 1, 2020	$	15,444	$	1,977	$	944	$	2,153
Balance at December 31, 2020	18,894		4,984		941		3,626
Increase (decrease)	$	3,450	$	3,007	$	(3)	$	1,473


	Gross Carrying Amount		Accumulated Amortization		Net Balance
Balance at December 31, 2020
Coal supply agreement	$	84,200	$	(48,870)	$	35,330

Balance at December 31, 2019
Coal supply agreement	$	84,200	$	(46,298)	$	37,902



HBBHC Operating Statement Data:
Revenues	$	474,971
Cost of goods sold	353,436
Gross profit	121,535
Operating expenses ^(a)	114,379
Operating profit	7,156
Interest expense	1,300
Other expense, net	(939		)
Income before income taxes	6,795
Income tax expense	2,655
HBBHC net income	$	4,140

NACCO expenses related to the spin-off	2,759
NACCO discontinued operations income tax expense (benefit) adjustments	(493		)
NACCO discontinued operations, net of tax	$	1,874



	NACCO Consolidated
Balance at January 1, 2017	$	42,105
Liabilities incurred during the period	277
Liabilities settled during the period	(2,430		)
Accretion expense	2,749
Revision of estimated cash flows	(2,604		)
Balance at December 31, 2017	$	40,097
Liabilities incurred during the period	189
Liabilities settled during the period	(1,667		)
Accretion expense	2,579
Revision of estimated cash flows	(3,495		)
Balance at December 31, 2018	$	37,703


2019	4,225
2020	237
2021	250		2021	20,924
2022	263		2022	10,956
2023	277		2023	990
2024			2024	1,025
2025			2025	1,061
Thereafter	5,319		Thereafter	10,041
	$	10,571		$	44,997


			Fair Value Measurements at Reporting Date Using
			Quoted Prices in				Significant
			Active Markets for		Significant Other		Unobservable
			Identical Assets		Observable Inputs		Inputs
Description	December 31, 2020		(Level 1)		(Level 2)		(Level 3)
Assets:
Equity securities	$	13,164	$	13,164	$	0	$	0

	$	13,164	$	13,164	$	0	$	0


Description	Location	DECEMBER 31 2020		DECEMBER 31 2019
Assets
Operating	Operating lease right-of-use assets	$	10,324	$	11,398
Finance	Property, plant and equipment, net (a)	1,478		544


Liabilities
Current
Operating	Other current liabilities	$	1,457	$	1,318
Finance	Current maturities of long-term debt	1,188		558
Noncurrent
Operating	Operating lease liabilities	$	11,196	$	12,448
Finance	Long-term debt	280		85


						Finance Leases		Operating Leases		Total
	Capital Leases		Operating Leases
2019	$	437	$	2,387
2020	21		2,174
2021	—		2,092		2021	$	1,229	$	2,260	$	3,489
2022	—		2,116		2022	124		2,181		2,305
2023	—		1,659		2023	102		1,705		1,807
Subsequent to 2023	—		10,959
2024					2024	63		1,661		1,724
2025					2025	7		1,469		1,476
Subsequent to 2025					Subsequent to 2025	0		7,952		7,952
Total minimum lease payments	458		$	21,387	Total minimum lease payments	1,525		17,228		$	18,753
Amounts representing interest	8				Amounts representing interest	57		4,575
Present value of net minimum lease payments	450				Present value of net minimum lease payments	$	1,468	$	12,653
Current maturities	429
Long-term capital lease obligation	$	21


Lease term and discount rate	2020		2019
Weighted average remaining lease term (years)
Operating	8.92		9.63
Finance	1.38		0.75

Weighted average discount rate
Operating	7.00	%	6.99	%
Finance	4.11	%	5.95	%


Cash paid for amounts included in the measurement of lease liabilities	2020		2019
Operating cash flows from operating leases	$	2,223	$	2,299
Operating cash flows from finance leases	19		18
Financing cash flows from finance leases	623		534



	Amount reclassified from AOCI
Details about AOCI components	2018			2017			Location of loss (gain) reclassified from AOCI into income
Loss (gain) on cash flow hedging
Foreign exchange contracts	$	—		$	(158	)	Cost of sales
Interest rate contracts	—			(3,466		)	Interest expense
	—			(3,624		)	Total before income tax expense
Tax effect	—			1,255			Income tax expense (benefit)
	$	—		$	(2,369	)	Net of tax

Pension and postretirement plan
Actuarial loss	$	580		$	955		^(a)
Prior-service credit	(6		)	(10		)	^(a)
	574			945			Total before income tax expense
Tax effect	(85		)	(363		)	Income tax benefit
	$	489		$	582		Net of tax

Total reclassifications for the period	$	489		$	(1,787	)	Net of tax



	2018			2017
Income from continuing operations before income tax provision	$	42,163		$	29,102
Statutory taxes at 21.0% and 35.0%, respectively	$	8,854		$	10,186
State and local income taxes	1,241			493
Valuation allowances	640			(1,453		)
Non-deductible expenses	663			224
Percentage depletion	(4,199		)	(6,253		)
R&D and other federal credits	(37		)	301
Effect of the TCJA	—			(3,132		)
Other, net	216			273
Income tax provision from continuing operations	$	7,378		$	639
Effective income tax rate from continuing operations	17.5		%	2.2		%



	December 31, 2018
	Net deferred tax asset		Valuation allowance		Carryforwards expire during:
Non-U.S. net operating loss	$	2,340	$	2,340	2024-2026
State losses	16,624		13,182		2019-2038
Research credit	1,198		—		2034-2038
Alternative minimum tax credit	2,310		—		(1)
Total	$	22,472	$	15,522


	December 31, 2019
	Net deferred tax asset		Valuation allowance		Carryforwards expire during:
State net operating loss	$	16,531	$	13,668	2020-2039
Federal research credit	1,455		0		2034-2038
Federal foreign tax credit	463		463		2029
Alternative minimum tax ("AMT") credit	1,596		0		(1)
Total	$	20,045	$	14,131



	December 31, 2017
	Net deferred tax asset		Valuation allowance		Carryforwards expire during:
Non-U.S. net operating loss	$	1,438	$	1,438	2024-2025
State losses	16,948		13,054		2018-2037
Research credit	1,870		—		2034-2037
Alternative minimum tax credit	5,335		—		(1)
Total	$	25,591	$	14,492


2019	$	2,475
2020	2,560
2021	2,669		2021	$	2,631
2022	2,760		2022	2,600
2023	2,819		2023	2,676
2024 - 2028	14,232
2024			2024	2,695
2025			2025	2,666
2026 - 2030			2026 - 2030	12,866
	$	27,515		$	26,134


	2018 Actual Allocation		2017 Actual Allocation		Target Allocation Range		2020 Actual Allocation		2019 Actual Allocation		Target Allocation Range
U.S. equity securities	42.4	%	47.2	%	36.0% - 54.0%	U.S. equity securities	45.4	%	45.1	%	36.0% - 54.0%
Non-U.S. equity securities	19.4	%	21.1	%	16.0% - 24.0%	Non-U.S. equity securities	20.3	%	20.0	%	16.0% - 24.0%
Fixed income securities	37.7	%	31.4	%	30.0% - 40.0%	Fixed income securities	33.9	%	34.4	%	30.0% - 40.0%
Money market	0.5	%	0.3	%	0.0% - 10.0%	Money market	0.4	%	0.5	%	0.0% - 10.0%