The only material assets held by Hamilton Beach Brands Holding CompanyWe are its investments in its consolidated subsidiaries. Substantially all of its cash flows are provided by dividends paid or distributions made by its subsidiaries. Hamilton Beach Brands Holding Company has not guaranteed any obligations of its subsidiaries.

Sales in North America are generated predominantly by a network of inside sales employees to mass merchandisers, ecommerce retailers, national department stores, variety store chains, drug store chains, specialty home retailers, distributors, restaurants, bars, hotels and other retail outlets. Walmart Inc. and its global subsidiaries (“Walmart”) accounted for approximately 35%27%, 33%26% and 33%28% of the HBB’sour revenue in 2020, 20192023, 2022 and 2018,2021, respectively. Amazon.com, Inc. and its subsidiaries (“Amazon.com”) accounted for approximately 16%24%, 14%23% and 10%22% of the HBB'sour revenue in 2020, 20192023, 2022 and 2018,2021, respectively. HBB’sOur five largest customers accounted for approximately 64%, 58%,61% and 53%61% of HBB’sour revenue for the years ended December 31, 2020, 20192023, 2022 and 2018,2021, respectively.

Our warranty program to the consumer consists generally of an assurance-type limited warranty lasting for varying periods of up to ten years for electric appliances, with the majority of products having a warranty of one to three years. There is no guarantee to the consumer as HBBwe may repair or replace, at itsour option, those products returned under warranty.

We incurred $10.0$12.4 million, $12.1$11.8 million and $11.0$8.6 million in 2020, 20192023, 2022 and 2018,2021, respectively, in expenses on product design and development activities.

Our products are suppliedproduced to itsour specifications by third-party suppliers. HBB doesWe do not maintain long-term purchase contracts with suppliers and operatesoperate mainly on a purchase order basis. HBB generally negotiatesWe negotiate the purchases from itsour foreign suppliers in U.S. dollars.

During 2020, HBB2023, we purchased substantially all of itsour finished products from suppliers in China. HBB purchases itsWe purchase our inventory from approximately 6360 suppliers, one of which represented more than 10% of purchases during the year ended December 31, 2020. HBB believes2023. We believe the loss of any one supplier would not have a long-term material adverse effect on itsour business because there are adequate supplier choices available that can meet HBB’sour production and quality requirements. However, the loss of a supplier could, in the short term, adversely affect HBB’sour business until alternative supply arrangements are secured.

The principal raw materials used by HBB’sour third-party suppliers to manufacture itsour products are plastic, glass, steel, copper, aluminum and packaging materials. HBB believesWe believe adequate quantities of raw materials are available from various suppliers.

We believe the principal areas of competition with respect to itsour products are product design and innovation, quality, price, product features, supply chain excellence, merchandising, promotion and warranty. HBB competesWe compete with many manufacturers and distributors of housewares products. As brick and mortarbrick-and-mortar retailers generally purchase a limited selection of branded, small electric appliances, HBB competeswe compete with other suppliers for retail shelf space. In the ecommerce channel, HBBwe must compete with a broad list of competitors for brand reputation through compelling content, strong ratings and reviews from consumers.

To meet these competitive challenges, the Company haswe have focused on continued innovation in itsour leading brands as well as expanding into new categories using existing core competencies. HBB’sOur presence in a significant number of housewares product categories across various price points allows the Companyus to meet the needs of a wide range of retailers and consumers. Based on publicly available information about the industry, HBB believes it iswe are one of the largest full-line distributors and marketers of small electric household and specialty housewares appliances in North America, including the U.S., Canada, Mexico and Latin America, based on key product categories. Hamilton Beach® is the #1 small kitchen appliance brand in the US,U.S., in brick-and-mortar and ecommerce channels, based on units sold. To a lesser degree, our retail product lines compete outside of North America. Our commercial products compete globally and have generated a strong position in these markets.

In addition, electrical appliances are subject to various mandatory and voluntary standards, including requirements in some jurisdictions that products be listed by Underwriters’ Laboratories, Inc. (“UL”) or other similar recognized laboratories. HBB also uses Intertek Testing Services for certification and testing of compliance with UL standards, as well as other national and industry specific standards. HBB endeavorsWe endeavor to have itsdesign our products designed to meet the certification requirements of, and to be certified in, each of the jurisdictions in which they are sold.

The strength of the economy in the U.S., and to a lesser degree in Canada and Mexico, has a significant impact on HBB’sour performance. Weakness in consumer confidence and poor financial performance by mass merchandisers, ecommerce retailers, warehouse clubs, department stores or any of HBB’sour other customers could result in reduced revenue and profitability. A general slowdown in the consumer sector could result in additional pricing and marketing support pressures on HBB.the Company. Additionally, in periods of uncertain economic conditions, such as inflation, rising interest rates, recessions or economic slowdowns, our customers may purchase less of our products as they manage their inventory levels to adjust to changes in consumers’ spending habits in response to such economic conditions. These circumstances could adversely impact our revenue and profitability.

If HBBwe were to lose, or experience a significant decline in business from any major customer, or if any major customers were to go bankrupt, HBBwe might be unable to find alternate distribution outlets.

The small electric household, specialty housewares appliances and commercial appliance industry does not have substantial entry barriers. As a result, HBB competeswe compete with many manufacturers and distributors of housewares products. Additional competitors may also enter this market and cause competition to intensify. For example, some of HBB’sour customers have expressed interest in sourcing, or expanding the extent of sourcing, small electric household and commercial appliances directly from manufacturers in Asia. We believe competition is based upon several factors, including product design and innovation, quality, price, product features, merchandising, promotion and warranty. If HBB failswe fail to compete effectively with these manufacturers and distributors, itwe could lose market share and experience a decrease in revenue, which would adversely affect our results of operations.

 

HBBWe also competescompete with established companies, a number of which have substantially greater facilities, personnel, financial and other resources. In addition, HBB competeswe compete with its ownour retail customers, who use their own private label brands, and importers and foreign manufacturers of unbranded products. Some competitors may be willing to reduce prices and accept lower profit margins to compete. As a result of this competition, HBBwe could lose market share and revenue.

Traditional brick-and-mortar retail channels have experienced low growth or declines in recent years, while the ecommerce channel has experienced significant growth. Consumer shopping preferences have shifted, and may continue to shift in the future, to distribution channels other than traditional brick-and-mortar retail channels. Success in the ecommerce channel requires providing products at the right price, products that earn strong ratings and reviews and meaningful engagement with online shoppers. HBB hasconsumers. We have invested in industry leadingindustry-leading selling and marketing capabilities, while maintaining itsour presence in traditional brick-and-mortar retail channels. However, if we are not successful in developing and utilizing ecommerce channels that future consumers may prefer, we may experience a loss in market share and decreased revenue and profitability.

Sales of HBBour products are related to consumer spending, including general economic conditions affecting disposable consumer income such as unemployment rates, business conditions, inflation rates, interest rates, levels of consumer confidence, energy prices, mortgage rates, the level of consumer debt and taxation. Declines in consumer spending or a shift in consumer spending away from small electric household and specialty housewares appliances may significantly reduce demand for our products and reduce orders from retailers for our products, which could lead to increased inventories. Additionally, this may result in lower sales volume, higher price concessions and lower gross margins.

In addition, the retail market for small electric household and specialty housewares appliances areis highly seasonal in nature. Accordingly, HBBwe generally recognizesrecognize a substantial portion of our revenue in the second half of the year as sales increase significantly with the fall holiday-selling season. Accordingly, quarter-to-quarter comparisons of our past operating results of HBB are meaningful only when comparing equivalent time periods, if at all. Any economic downturn, decrease in consumer spending or shift in consumer spending away from small electric household and specialty housewares appliances may significantly reduce revenue and profitability.

The ongoing global COVID-19 pandemicOur business has resulted in governments around the world implementing stringent measures to help control the spread of the virus, including business shutdownspast been, and limitations, travel restrictions, border closings, restrictions on public gatherings and shelter-in-place restrictions. This has negatively impacted the global economy, disrupted financial markets and resulted in increased unemployment levels, all of which have negatively impacted various industries. The continued spread of COVID-19 and efforts to contain the virus could:

HBB isWe are dependent on third-party suppliers for the manufacturing and distribution of our products. Our ability to select reliable suppliers that provide timely deliveries of quality products will impact our success in meeting customer demand. Any supplier'ssupplier’s inability to timely deliver products that meet desired specifications or any unanticipated changes in suppliers could be disruptive and costly. Any significant failure by HBB to obtain quality products, in sufficient quantities, on a timely basis, and at an affordable cost or any significant delays or interruptions of supply would have a material adverse effect on our revenue and profitability. As certain suppliers are primarily based in China, international operations areOur supply chain is subject to additional risks including, among others:

The foregoing factors could have a material adverse effect on our ability to maintain or increase the supply of products, which may result in material increases in our expenses and decreases in our revenue and profitability.

In some cases, we use a single supplier to meet customers’ demands depends,source a single product. An unforeseen disruption in part, onthe supplier’s operations could impact our ability to obtain the timely and adequate shipment of our products. Certain transportation industry vendors may experience capacity constraints duedeliver products to increases in volume. For example, in the third and fourth quarters of 2020, congestion in several areas of the supply chain, including the supply chain from China to our distribution facility as well as certain customers' ability to send in equipment to pick up or receive goods due to congestion at their facilities, impacted our ability to ship inventorycustomers in a timely manner and resulted in increased freight charges. If our transportation industry vendors become capacity constrained, then weto meet demand. We may have to identify new vendors or explore alternative order fulfillment methods to ensure we have sufficient shipping capabilities. We have experienced and may continue to experience significant delays while locating a new supplier, if able to at all, which could result in shippinghigher costs. Additionally, our reliance on a single supplier with respect to certain products could limit our negotiating leverage with such supplier.

Retailers may adjust their purchasing patterns to reduce the amount of inventory they carry to more closely match consumers’ spending habits. If our larger customers tighten their inventory on hand and do not provide us with sufficient lead time to react, we may be subject to excess or obsolete inventory, additional storage costs and/or missed sales. Without sufficient lead time, we may not be able to meet retailers demands as we are dependent on third-party suppliers for the manufacturing and distribution of our products and, therefore, must make purchases well in advance to customers and incur additional costsdeliver products to establish alternative shipping sourcesour customers. Additionally, if existing vendorswe are unable to sufficiently handlesource inventory at the correct levels in time with our shipping volume. customers’ orders, we could lose sales and experience a reduction in revenue.

Cyber-attacksOur information technology systems, some of which are becoming more sophisticated and includedependent on services provided by third parties, may be vulnerable to damage, interruption or shutdown due to any number of causes outside of our control such as catastrophic events, natural disasters, fires, power outages, systems failures, telecommunications failures, employee error or malfeasance, security breaches, computer viruses or other malicious codes, attacks to gainransomware, unauthorized access to data,attempts, denial of service attacks, phishing, hacking and other security breaches that could lead tocyberattacks. Additionally, the loss of valuable business data, misappropriation of our consumers’ or employees’ personal information, or a disruption of our critical systems. The Audit Review Committee of the Company is regularly briefed on cybersecurity matters, however despite our security efforts, if unauthorizedincrease in hybrid working where employees, including third-party employees, access does occur, we could become the subject of regulatory action or litigation from our customers, employees, suppliers, and shareholders, which could damage our reputation, require significant expenditures of capital, and cause us to lose business and revenue. Additionally, unauthorized access could also cause interruptions in our operations and might require us to spend significant management time and other resources investigating the event and dealing with local and federal law enforcement.

There is a major undertaking from a financial, management and personnel perspective. The implementation, integration and successful operation of the ERP system may prove to be more difficult, costly, or time consuming than expected, and there can be no assurance that this systemthe measures we have taken to protect our information systems will be beneficial toprevent or limit the extent anticipated. Any disruptions, delaysimpact of a future cyber incident. While we have not experienced any material impacts from a cyber attack, any one or deficiencies in the implementation, integration or operation of our new ERP systemmore future cyber attacks could cause information, including data related to customer orders, to be lost or delayed. Suchhave a loss or delay could reduce demand and cause our sales and/or profitability to decline. In addition, any significant disruption, delay or deficiency in the design and implementation of the ERP system could adversely affect our ability to process orders, ship products, send invoices and track payments, fulfill contractual obligations or otherwise operate our business. For example, shipping challenges from the implementation, integration and operation of the ERP system resulted in a significant order backlog during the third quarter of 2020. Any additional disruptions, delays or deficiencies in the implementation, integration or operation of our new ERP system could adversely affectmaterial adverse effect on our financial position,condition and results of operations and cash flows in addition to the effectiveness of our internal controls over financial reporting.operations.

The Company is subject to certain laws, rules and regulations enacted to protect businesses and personal data (“Privacy Laws”), which may include the General Data Protection Regulation (“GDPR”) and the California Consumer Privacy Act, (“CCPA”), as well as industry self-regulatory codes that create new compliance obligations. The administration, enforcement and regulation of Privacy Laws are quickly evolving and subject to changes in interpretation. Future changes in Privacy Laws may require the Company to incur additional and unexpected expenses and may subject the Company to additional compliance risk. Any failure to comply with Privacy Laws could have a material adverse impact on our financial condition and results of operations.

HBB’sOur credit facility contains covenants and other restrictions that, among other things, require HBBus to satisfy certain financial tests, maintain certain financial ratios and restrict HBB’sour ability to incur additional indebtedness. The restrictions and covenants in HBB’sour credit facility, and other future financing arrangements may limit HBB’sour ability to respond to market conditions, provide for capital investment needs, pay dividends or take advantage of business opportunities by limiting the amount of additional borrowings HBBwe may incur. Additionally, our exposure to rising interest rates subjects us to increased debt obligations with respect to existing floating rate debt during periods where such rates are in effect.

Because HBB haswe have employees, property and business operations outside of the U.S., HBB iswe are subject to the laws and the court systems of many jurisdictions. HBBWe may become subject to claims outside the U.S. for violations or alleged violations of laws with respect to theour current or future foreign operations of HBB.operations. In addition, these laws may be changed or new laws may be enacted in the future. International litigation is often expensive, time-consuming and distracting. As a result, any of these risks could significantly reduce HBB’sour profitability and itsour ability to operate itsour businesses effectively.

HBB isWe are subject to laws and regulations relating to the protection of the environment, including those governing the

HBBWe could, under some circumstances, also be held financially liable for or suffer other adverse effects due to environmental violations or contamination caused by prior owners of businesses HBB haswe have acquired. In certain circumstances, HBB’sour financial liability for cleanup costs takes into account agreements with an unrelated third party. HBB’sOur liability for these costs could increase if the unrelated third party does not, or cannot, perform its obligations under those agreements. In addition, under some of the agreements through which HBB haswe have sold real estate, HBB haswe have retained responsibility for certain contingent environmental liabilities arising from pre-closing operations. These liabilities may not arise, if at all, until years after HBBwe sold these operations and could require us to incur significant additional expenses, which could materially adversely affect HBB’sour results of operations and financial condition.

HBB facesWe face exposure to product liability claims if one of our products is alleged to have caused property damage, bodily injury or other adverse effects up to a defined self-insured loss limit per claim and maintainsmaintain product liability insurance for claims above this self-insured level. If a product liability claim is brought against HBB,us, our revenue and profitability could be affected adversely as a result of negative publicity related to the claim, costs associated with any replacement of the product or expenses related to defending these claims. This could be true even if the claims themselves are ultimately settled for immaterial amounts. In addition, HBBwe may not be able to maintain product liability insurance on terms acceptable to HBBus in the future. If the number of product liability claims HBB experienceswe experience exceeds historical amounts, if HBB iswe are unable to maintain product liability insurance or if HBB’sour product liability claims exceed the amount of our insurance coverage, HBB’sour results of operations and financial condition could be affected adversely.

We are subject to many statutes, ordinances, rules and regulations in the U.S. and elsewhere that, if violated by HBBus or itsour affiliates, partners or vendors, could have a material adverse effect on HBB’sour business. HBB isFor example, we are required to comply with the U.S. Foreign Corrupt Practices Act (“FCPA”) and similar anti-bribery, anti-corruption and anti-kickback laws adopted in many of the countries in which HBB doeswe do business which prohibit HBBthe Company from engaging in bribery or making other prohibited payments to foreign officials for the purpose of obtaining or retaining business and also require maintenance of adequate record-keeping and internal accounting practices to accurately reflect transactions. Under the FCPA, companies operating in the U.S. may be held liable for actions taken by their strategic or local partners or representatives. If HBB doeswe do not properly implement and maintain practices and controls with respect to compliance with applicable anti-corruption, anti-bribery and anti-kickback laws, or if HBB failswe fail to enforce those practices and controls properly, HBBwe may be held responsible for their actions and may become subject to regulatory sanctions, including administrative costs related to governmental and internal investigations, civil and criminal penalties, injunctions and restrictions on HBB’sour business and capital raising activities, any of which could materially and adversely affect HBB’sour business, results of operations and financial condition.

TheOver the past several years, the U.S. government has taken a number of trade actions that impact or could impact our operations, including imposing tariffs on certain goods imported into the United States. In addition, several governments, including the European Union, China and India, have imposed tariffs on certain goods imported from the United States. As the majority of our products are imported into the United States from China, many of our product lines are subject to the tariffs imposed under Section 301 of USU.S. trade law that have been applied to separate lists of Chinese goods imported into the United States.States, beginning during the Trump Administration and continuing in the Biden Administration. The Section 301 tariffs on goods covered by lists 1, 2, 3 and 4a affect approximately 25% of our total HBB purchases on an annualized basis. On December 13, 2019, the United States Trade Representative (USTR) announced a “Phase One” agreement with China pursuant to which the U.S. government agreed to suspend the 15% tariffs on List 4b products. On January 15, 2020, USTR issued a Federal Register notice reducing the rate of Section 301 tariffs on List 4a products to 7.5%, effective February 14, 2020. A number of lawsuits and other legal challenges with respect to the Section 301 tariff actions could result in changes to the tariffs, andTo date, the Biden Administration reportedly will be considering whetherhas effectively maintained and has continued to continue, amend, or revokedefend and to enforce these particular trade actions. We are continually evaluating the impact of the current and any possible new tariffs on our supply chain, costs, sales and profitability and are considering strategies to mitigate such impact, including reviewing sourcing options, filing requests for exclusion from the tariffs for certain product lines and working with our suppliers and customers. We can provide no assurance that any strategies we implement to mitigate the impact of such tariffs or other trade actions will be successful. Given the uncertainty regarding the scope and duration of these trade actions by the U.S. government or other countries, as well as the potential for additional trade actions, the impact on our operations and results remains uncertain.

None.

The information required by this Item 3 is set forth in Note 11 "Contingencies"10 “Contingencies” included in our Financial Statements and Supplementary Data contained in Part IV of this Form 10-K and is hereby incorporated herein by reference to such information.

    

None.

Our Class A Common is traded on the New York Stock Exchange under the ticker symbol “HBB.” Because of transfer restrictions, no trading market has developed, or is expected to develop, for the Company'sour Class B Common. The Class B Common is convertible into Class A Common on a one-for-one basis.

In May 2018, the CompanyNovember 2023, our Board approved a stock repurchase program for the purchase of up to $25.0$25 million of the Company'sour Class A Common Stock outstanding throughstarting January 1, 2024 and ending December 31, 2019. On November 5, 2019, the Company's2025. Our previously authorized share buyback program was approved by our Board adopted a new stock repurchase programin February 2022 for the purchase of up to $25.0$25 million of the Company'sour Class A Common Stock outstanding starting January 1, 2020February 22, 2022 and ending December 31, 2021. 2023.

During the yearyears ended December 31, 2019, the Company2023 and 2022, we repurchased 364,893250,772 and 261,049 shares for an aggregate purchase price of $6.0 million.$3.1 million and $3.0 million, respectively. There were no share repurchases during the years ended December 31, 2020 and 2018.

The Company'sOur discussion and analysis of itsour financial condition and results of operations are based upon the Company'sour consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”)(GAAP). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses and disclosure of contingent assets and liabilities (if any). Actual results could differ from those estimates.

The Company believesWe believe the following critical accounting policies affect itsour more significant judgments and estimates used in the preparation of itsour consolidated financial statements.

To estimate variable consideration, the Company applieswe apply both the expected value method and most likely amount method based on the form of variable consideration, according to which method would provide the better prediction. The expected value method involves a probability weighted determination of the expected amount, whereas the most likely amount method identifies the single most likely outcome in a range of possible amounts.

The Company monitors itsWe monitor our estimates of variable consideration, which includes returns and price concessions, and periodically makesmake adjustments to the carrying amounts as appropriate. During 2020,2023, there were no material adjustments to the aforesaid estimates and the Company'sour past results of operations have not been materially affected by a change in these estimates. Although there can be no assurances, the Company iswe are not aware of any circumstances that would be reasonably likely to materially change these estimates in the future.

TheFor the Non-U.S. Plan, the expected long-term rate of return on defined benefit plan assets reflects management’sour expectations of long-term rates of return on funds invested to provide for benefits included in the projected benefit obligations. In establishing the expected long-term rate of return assumption for plan assets, the Company considerswe consider the historical rates of return over a period of time that is consistent with the long-term nature of the underlying obligations of these plans as well as a forward-looking rate of return. The historical and forward-looking rates of return for each of the asset classesare used to determine the Company'sour estimated rate of return assumption are based upon the rates of return earned or expected to be earned by investments in the equivalent benchmark market indices for each of the asset classes.assumption.

Expected returns for the U.S. pension plan are based on a calculated market-related value for U.S. pension plan assets. Under this methodology, asset gains and losses resulting from actual returns that differ from the Company's expected returns which are recognized ratably in the market-related value of assets over three years. Expected returns for the non-U.S. pension plan are based on fair market value for non-U.S. pension plan assets. Under this methodology, asset gains and losses resulting from actual returns that differ from our expected returns which are recognized ratably in the market-related value of assets over three years.

The basis for the selection of the discount rate for each plan is determined by matching the timing of the payment of the expected obligations under the defined benefit plans against the corresponding yield of high-quality corporate bonds of equivalent maturities.

Changes to the estimate of any of these factors could result in a material change to the Company'sour pension obligation causing a related increase or decrease in reported net operating results in the period of change in the estimate. Because the 20202023 assumptions are used to calculate 20212024 pension expense amounts, a one percentage-point change in the expected long-term rate of return on plan assets would result in a change in pension expense for 20212024 of approximately $0.3 million for the plans. A one percentage-point change in the discount rate would result in a change in pension expense for 2021 by2024 of less than $0.1 million. A one percentage-point increase in the discount rate would have lowered the plans’ projected benefit obligation as of the end of 20202023 by approximately $1.7$1.0 million; while a one percentage-point decrease in the discount rate would have raised the plans’ projected benefit obligation as of the end of 20202023 by approximately $2.0$1.1 million.

TheOur results of operations for Hamilton Beach Holding were as follows for the years ended December 31:

The resultsCompany has an agreement with a third-party administrator to provide an accounts payable tracking system which facilitates a participating supplier’s ability to monitor and voluntarily elect to sell payment obligations owed by the Company to the designated third-party financial institution. Participating suppliers can sell one or more of operations for Hamilton Beach Holding werethe Company’s payment obligations at their sole discretion. The Company has no economic interest in a supplier’s decision to sell one or more of its payment obligations. The Company’s rights and obligations with respect to such payment obligations, including amounts due and scheduled payment terms, are not impacted by suppliers’ decisions to sell amounts under these arrangements. The agreement has a limit of $60.0 million in payment obligations ($85.0 million during peak season from August to January). There is no requirement to provide assets pledged as follows forsecurity or other forms of guarantees under the years endedagreement. The Company pays the third-party administrator based upon the original payment terms negotiated with participating suppliers. The payment of these obligations by the Company is included in cash used in operating activities in the Consolidated Statement of Cash Flows. As of December 31:

To reduce the exposure to changes in the market rate of interest, HBB haswe have entered into interest rate swap agreements for a portion of the HBB Facility. Terms of the interest rate swap agreements require HBBus to receive a variable interest rate and pay a fixed interest rate. HBB has interest rate swaps with notional values totaling $25.0 million at December 31, 2020 at an average fixed interest rate of 1.66%.

The HBB Facility includes restrictive covenants, which, among other things, limit the payment of dividends, to Hamilton Beach Holding, subject to achieving availability thresholds. Under Amendment No. 8 to the HBB Facility, dividends to Hamilton Beach HoldingDividends are not to exceed $6.0$7.0 million during any calendar year to the extent that for the thirty days prior to the dividend payment date, and after giving effect to the dividend payment, HBB maintains excess availability of not less than $15.0at least $18.0 million. Dividends to Hamilton Beach HoldingDividend amounts are discretionary to the extent that for the thirty days prior to the dividend payment date, and after giving effect to the dividend payment, HBB maintains excess availability of not less than $25.0at least $30.0 million. The HBB Facility also requires HBB to achieve a minimum fixed charge coverage ratio in certain circumstances, as defined in the HBB Facility. AtAs of December 31, 2020, HBB was2023, we were in compliance with all financial covenants in the HBB Facility.

Following is a table which summarizes the contractual obligations of Hamilton Beach Holding as of December 31, 2020:2023:

HBB'sOur purchase and other obligations are primarily for accounts payable, open purchase orders and accrued payroll and incentive compensation.

An event of default, as defined in the HBB Facility and in HBB'sour operating and finance lease agreements, could cause an acceleration of the payment schedule. No such event of default for HBBus has occurred or is anticipated to occur.

Pension funding can vary significantly each year due to plan amendments, changes inGiven the market valuefunded status of plan assets, legislation and the Company’s decisions to contribute above the minimum regulatory funding requirements. As a result,two defined benefit pension funding has not been included in the table above. HBB doesplans, we do not expect to contribute to itsthe pension plans in 2021.2024. Pension benefit payments are made from assets of the pension plans.