Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 01, 2019 | Jun. 30, 2018 | |
Entity Information [Line Items] | |||
Entity Registrant Name | HAMILTON BEACH BRANDS HOLDING COMPANY | ||
Entity Central Index Key | 1,709,164 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Entity Shell Company | false | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 200,368,889 | ||
Shares Outstanding Class A | |||
Entity Information [Line Items] | |||
Shares Outstanding | 9,426,344 | ||
Shares Outstanding Class B | |||
Entity Information [Line Items] | |||
Shares Outstanding | 4,415,535 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Total revenues | $ 743,179 | $ 740,749 | $ 745,357 |
Cost of sales | 554,167 | 546,928 | 551,586 |
Gross profit | 189,012 | 193,821 | 193,771 |
Selling, general and administrative expenses | 155,312 | 154,305 | 149,016 |
Amortization of intangible assets | 1,381 | 1,381 | 1,381 |
Operating profit | 32,319 | 38,135 | 43,374 |
Interest expense, net | 3,277 | 1,830 | 1,374 |
Other expense, net | 1,013 | 228 | 837 |
Income before income taxes | 28,029 | 36,077 | 41,163 |
Income tax provision | 6,245 | 18,172 | 14,984 |
Net income | $ 21,784 | $ 17,905 | $ 26,179 |
Basic earnings per share (in dollars per share) | $ 1.59 | $ 1.31 | $ 1.91 |
Basic weighted average shares outstanding (in shares) | 13,699 | 13,673 | 13,673 |
Diluted weighted average shares outstanding (in shares) | 13,731 | 13,685 | 13,673 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 21,784 | $ 17,905 | $ 26,179 |
Foreign currency translation adjustment | (159) | 689 | (2,078) |
Loss on long-term intra-entity foreign currency transactions, net of $83 tax benefit in 2018 | (1,006) | 0 | 0 |
Current period cash flow hedging activity, net of $74 tax expense in 2018, $293 tax benefit in 2017, and $152 tax expense in 2016 | 244 | (749) | 168 |
Reclassification of hedging activities into earnings, net of $60, $275, and $67 tax benefit in 2018, 2017, and 2016, respectively | 153 | 641 | 105 |
Current period pension plan adjustment, net of $663 tax benefit in 2018, $936 tax expense in 2017, and $176 tax benefit in 2016 | (1,920) | 1,510 | (385) |
Reclassification of pension adjustments into earnings, net of $173, $205, $195 tax benefit in 2018, 2017, and 2016, respectively | 650 | 306 | 313 |
Total other comprehensive (loss) income | (2,038) | 2,397 | (1,877) |
Comprehensive income | $ 19,746 | $ 20,302 | $ 24,302 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Loss on long-term intra-entity foreign currency transactions, tax benefit | $ 83 | ||
Current period cash flow hedging activity, tax (benefit) expense | 74 | $ (293) | $ 152 |
Reclassification of hedging activities into earnings, tax (benefit) expense | (60) | (275) | (67) |
Current period pension and postretirement plan adjustment, tax expense (benefit) | (663) | 936 | (176) |
Reclassification of pension and post retirement adjustments into earnings, tax benefit | $ (173) | $ (205) | $ (195) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 6,352 | $ 10,906 |
Accounts receivable, net | 112,137 | 114,100 |
Inventories | 144,691 | 134,744 |
Prepaid expenses and other current assets | 14,969 | 8,835 |
Total Current assets | 278,149 | 268,585 |
Property, plant and equipment, net | 22,630 | 19,083 |
Goodwill | 6,253 | 6,253 |
Other intangible assets, net | 4,519 | 5,900 |
Deferred income taxes | 8,163 | 12,825 |
Deferred costs | 8,012 | 10,466 |
Other non-current assets | 2,701 | 3,121 |
Total Assets | 330,427 | 326,233 |
Current liabilities | ||
Accounts payable | 132,968 | 143,012 |
Accounts payable to NACCO Industries, Inc. | 2,419 | 9,189 |
Revolving credit agreements | 11,624 | 31,346 |
Accrued payroll | 17,023 | 17,302 |
Accrued product returns | 10,941 | 0 |
Accrued cooperative advertising | 10,314 | 11,418 |
Other current liabilities | 21,612 | 18,679 |
Total Current liabilities | 206,901 | 230,946 |
Revolving credit agreements | 35,000 | 20,000 |
Other long-term liabilities | 23,088 | 28,879 |
Total Liabilities | 264,989 | 279,825 |
Stockholders’ equity | ||
Preferred stock, par value $0.01 per share, 5 million shares authorized, no shares outstanding as of December 31, 2018 and 2017 | 0 | 0 |
Capital in excess of par value | 51,714 | 47,773 |
Retained earnings | 30,897 | 12,603 |
Accumulated other comprehensive loss | (17,310) | (14,104) |
Total Stockholders’ equity | 65,438 | 46,408 |
Total Liabilities and Stockholders' equity | 330,427 | 326,233 |
Class A, par value $0.01 per share, 70 million shares authorized; 9,291,122 and 8,865,207 shares outstanding as of December 31, 2018 and 2017, respectively | ||
Stockholders’ equity | ||
Common stock | 93 | 88 |
Class B, par value $0.01 per share, convertible into Class A on a one-for-one basis, 30 million shares authorized; 4,421,644 and 4,808,225 shares outstanding as of December 31, 2018 and 2017, respectively | ||
Stockholders’ equity | ||
Common stock | $ 44 | $ 48 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) | Dec. 31, 2018$ / sharesshares | Dec. 31, 2017$ / sharesshares |
Preferred stock, par value (in usd per share) | $ / shares | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Class A Common Stock | ||
Common stock, par value (in usd per share) | $ / shares | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 70,000,000 | 70,000,000 |
Common stock, shares outstanding (in shares) | 9,291,122 | 8,865,207 |
Class B Common Stock | ||
Common stock, par value (in usd per share) | $ / shares | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares outstanding (in shares) | 4,421,644 | 4,808,225 |
Common stock, convertible conversion ratio | 1 | 1 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Activities | |||
Net income | $ 21,784 | $ 17,905 | $ 26,179 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 5,309 | 5,611 | 6,226 |
Deferred income taxes | 4,947 | 3,942 | 1,787 |
Share-based compensation expense | 3,618 | 323 | 0 |
Other | 1,485 | (941) | (727) |
Net changes in operating assets and liabilities | |||
Affiliate payable | (6,770) | (516) | 992 |
Accounts receivable | 11,761 | (10,026) | (1,747) |
Inventories | (11,051) | (6,329) | (1,806) |
Other current assets | (5,378) | (247) | (707) |
Accounts payable | (10,004) | 21,759 | 26,890 |
Other liabilities | (3,877) | 1,959 | 5,476 |
Net cash provided by operating activities | 11,824 | 33,440 | 62,563 |
Investing Activities | |||
Expenditures for property, plant and equipment | (8,076) | (7,374) | (6,002) |
Other | 12 | 21 | 77 |
Net cash used for investing activities | (8,064) | (7,353) | (5,925) |
Financing Activities | |||
Net (reductions) additions to revolving credit agreements | (4,597) | 12,630 | (19,651) |
Cash dividends to NACCO Industries, Inc. | 0 | (38,000) | (42,000) |
Other | 0 | (70) | (186) |
Net cash used for financing activities | (9,255) | (26,602) | (61,837) |
Effect of exchange rate changes on cash | 941 | 81 | (259) |
Cash and Cash Equivalents | |||
Decrease for the year | (4,554) | (434) | (5,458) |
Balance at the beginning of the year | 10,906 | 11,340 | 16,798 |
Balance at the end of the year | 6,352 | 10,906 | 11,340 |
Common Class A and B | |||
Financing Activities | |||
Cash dividends to NACCO Industries, Inc. | $ (4,658) | $ (1,162) | $ 0 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common Class A and B | Total Stockholders' Equity | Total Stockholders' EquityCommon Class A and B | Common StockClass A Common Stock | Common StockClass B Common Stock | Capital in Excess of Par Value | Retained Earnings | Retained EarningsCommon Class A and B | Foreign Currency Translation Adjustment | Deferred Gain (Loss) on Cash Flow Hedging | Pension Plan Adjustment |
Balance, beginning of period at Dec. 31, 2015 | $ 82,966 | $ 0 | $ 0 | $ 75,031 | $ 22,559 | $ (6,545) | $ 343 | $ (8,422) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | $ 26,179 | 26,179 | 26,179 | |||||||||
Cash dividends | (42,000) | (42,000) | ||||||||||
Current period other comprehensive (loss) income | (2,295) | (2,078) | 168 | (385) | ||||||||
Reclassification adjustment to net income | 418 | 105 | 313 | |||||||||
Balance, end of period at Dec. 31, 2016 | 65,268 | 0 | 0 | 75,031 | 6,738 | (8,623) | 616 | (8,494) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 17,905 | 17,905 | 17,905 | |||||||||
Issuance of common stock, net of conversions | 0 | 88 | 48 | (136) | ||||||||
Cash dividends | $ (1,162) | (38,000) | (27,122) | (10,878) | $ (1,162) | |||||||
Current period other comprehensive (loss) income | 1,450 | 689 | (749) | 1,510 | ||||||||
Reclassification adjustment to net income | 947 | 641 | 306 | |||||||||
Balance, end of period at Dec. 31, 2017 | 46,408 | 88 | 48 | 47,773 | 12,603 | (7,934) | 508 | (6,678) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 21,784 | 21,784 | 21,784 | |||||||||
Issuance of common stock, net of conversions | 324 | 5 | (4) | 323 | ||||||||
Share-based compensation expense | $ 3,618 | 3,618 | ||||||||||
Cash dividends | $ (4,658) | $ (4,658) | ||||||||||
Reclassification due to adoption of ASU 2018-02 | 0 | 1,168 | 118 | (1,286) | ||||||||
Current period other comprehensive (loss) income | (2,841) | (1,165) | 244 | (1,920) | ||||||||
Reclassification adjustment to net income | 803 | 153 | 650 | |||||||||
Balance, end of period at Dec. 31, 2018 | $ 65,438 | $ 93 | $ 44 | $ 51,714 | $ 30,897 | $ (9,099) | $ 1,023 | $ (9,234) |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Common stock dividends (in dollars per share) | $ 0.34 | $ 0.085 |
Principles of Consolidation and
Principles of Consolidation and Nature of Operations | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation and Nature of Operations | Principles of Consolidation and Nature of Operations The accompanying consolidated financial statements include the accounts of Hamilton Beach Brands Holding Company and its wholly-owned subsidiaries ("Hamilton Beach Holding” or the “Company”) which have been prepared in accordance with Accounting Principles Generally Accepted in the United States (“GAAP”). The Company manages its subsidiaries primarily by reportable segment, which are Hamilton Beach Brands, Inc. (“HBB”) and The Kitchen Collection, LLC ("KC"). The Company includes the required intercompany eliminations between its reportable segments. Costs incurred as a stand-alone public entity are allocated to the HBB segment. The only material assets held by Hamilton Beach Brands Holding Company are its investments in consolidated subsidiaries. Substantially all of its cash flows are provided by dividends paid or distributions made by its subsidiaries. HBB is a leading designer, marketer and distributor of branded, small electric household and specialty housewares appliances, as well as commercial products for restaurants, bars and hotels. KC is a national specialty retailer of kitchenware in outlet and traditional malls throughout the United States ("U.S."). On September 29, 2017, NACCO Industries, Inc. ("NACCO"), Hamilton Beach Holding's former parent company, spun-off the Company to NACCO stockholders. In the spin-off, NACCO stockholders, in addition to retaining their shares of NACCO common stock, received one share of Hamilton Beach Brands Holding Company Class A common stock ("Class A Common") and one share of Hamilton Beach Brands Holding Company Class B common stock ("Class B Common") for each share of NACCO Class A or Class B common stock. In accordance with applicable authoritative accounting guidance, the Company accounted for the spin-off from NACCO based on the historical carrying value of assets and liabilities. As a result of the distribution of one share of Hamilton Beach Brands Holding Company Class A common stock and one share of Hamilton Beach Brands Holding Company Class B common stock for each share of NACCO Class A or NACCO Class B common stock, the earnings per share amounts for the Company for periods prior to the spin-off have been calculated based upon the number of shares distributed in the spin-off. NACCO did not receive any proceeds from the spin-off. Prior period interest income amounts have been reclassified from other expense, net to interest expense, net to conform to the current period presentation. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Use of Estimates: The preparation of financial statements in conformity with GAAP 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. Cash and Cash Equivalents: Cash and cash equivalents include cash in banks and highly liquid investments with original maturities of three months or less. Accounts Receivable: Allowances for doubtful accounts are maintained against accounts receivable for estimated losses resulting from the inability of customers to make required payments. These allowances are based on both recent trends of certain customers estimated to be a greater credit risk as well as general trends of the entire customer pool. Accounts are written off against the allowance when it becomes evident collection will not occur. HBB maintains significant accounts receivable balances with several large retail customers. At December 31, 2018 and 2017, receivables from HBB’s five largest customers represented 51% and 62% , respectively, of the Company’s consolidated net accounts receivable. HBB’s significant credit concentration is uncollateralized; however, historically minimal credit losses have been incurred. Transfer of Financial Assets: T he Company has entered into an arrangement with a financial institution to sell certain U.S. accounts receivable on a non-recourse basis. The Company utilizes this arrangement as an integral part of financing working capital. Under the terms of the agreement, the Company receives cash proceeds and retains no rights or interest and has no obligations with respect to the sold receivables. These transactions are accounted for as sold receivables which result in a reduction in accounts receivable because the agreement transfers effective control over and risk related to the receivables to the buyer. Under this arrangement, the Company derecognized $165.4 million , $164.0 million , and $149.3 million of accounts receivable during 2018, 2017 and 2016, respectively. The loss incurred on sold receivables in the consolidated results of operations for the years ended December 31, 2018, 2017, and 2016 was not material. The Company does not carry any servicing assets or liabilities. Cash proceeds from this arrangement are reflected as operating activities. Inventories: Inventories are stated at the lower of cost or net realizable value. The first-in, first-out (“FIFO”) method is used to value HBB's inventory and KC inventories are valued using the retail inventory method. Adjustments to the carrying value are recorded for estimated obsolescence or excess inventory equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. At KC, retail mark-downs are incorporated into KC’s retail method of accounting for cost of sales. Property, Plant and Equipment: Property, plant and equipment are measured at cost less accumulated depreciation, amortization and accumulated impairment losses. Depreciation and amortization are recorded generally using the straight-line method over the estimated useful lives of the assets. Estimated lives for buildings are up to 40 years, and for machinery, equipment and furniture and fixtures range from three to seven years. Leasehold improvements are depreciated over the shorter of the estimated useful life or the term of the lease. The units-of-production method is used to amortize certain tooling for sourced products. Costs incurred to develop software for internal use are capitalized and amortized over the estimated useful life of the software. Gains or losses from the sale of assets are included in selling, general and administrative expenses. Repairs and maintenance are charged to expense as incurred. Interest is capitalized for qualifying long-term capital asset projects as a part of the historical cost of acquiring the asset. The Company evaluates long-lived assets for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets to be held and used is measured by a comparison of the carrying amount of the asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount exceeds the fair value of the asset. Fair value is estimated at the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Goodwill and Intangible Assets: Goodwill represents the excess of the purchase price of all acquisitions over the estimated fair value of the net assets acquired. Goodwill is not amortized but evaluated at least annually for impairment. The Company conducts its annual test for impairment as of October 1 of each year and may be conducted more frequently if changes in circumstances or the occurrence of events indicates that a potential impairment exists. Using a qualitative assessment in the current year, the Company determined that it was not more-likely-than-not that the goodwill was impaired and a quantitative test for impairment was not required. Intangible assets with finite lives are amortized over their estimated useful lives, which represent the period over which the asset is expected to contribute directly or indirectly to future cash flows. Intangible assets with finite lives are reviewed for impairment whenever events and circumstances indicate the carrying value of such assets may not be recoverable and exceed their fair value. If an impairment loss exists, the carrying amount of the intangible asset is adjusted to a new cost basis. The new cost basis is amortized over the remaining useful life of the asset. No impairment has been recognized for identifiable intangible assets or goodwill for any period presented. Environmental Liabilities: HBB and environmental consultants are investigating or remediating historical environmental contamination at some current and former sites operated by HBB or by businesses it acquired. Liabilities for environmental matters are recorded in the period when it is determined to be probable and reasonably estimable that the Company will incur costs. When only a range of amounts is reasonably estimable and no amount within the range is more probable than another, the Company records the low end of the range. Environmental liabilities are recorded on an undiscounted basis and recorded in selling, general, and administrative expenses. As a portion of environmental remediation liabilities are expected to be recoverable through state agencies, such amounts are recognized as a reduction to selling, general, and administrative expenses and included in prepaid expenses and other current assets (current portion) and other non-current assets until settled. Revenue Recognition: Revenue is recognized when control of the promised goods or services is transferred to the Company's customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Sales taxes are excluded from revenue. At contract inception, the Company assesses the goods and services promised in its contracts with customers and identifies a performance obligation for each promised good or service that is distinct. The Company has elected to account for shipping and handling activities performed after a customer obtains control of the goods as activities to fulfill the promise to transfer the goods, and therefore these activities are not assessed as a separate service to customers. The amount of consideration received and revenue recognized varies with changes in returns and consideration paid to customers for incentives and advertising arrangements. To estimate variable consideration, the Company applies 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. Product Development Costs: Expenses associated with the development of new products and changes to existing products are charged to expense as incurred. These costs, included in selling, general and administrative expenses, amounted to $11.0 million , $10.4 million , and $9.7 million in 2018, 2017, and 2016, respectively. Foreign Currency: Assets and liabilities of foreign operations are translated into U.S. dollars at the fiscal year-end exchange rate. Revenue and expenses of all foreign operations are translated using average monthly exchange rates prevailing during the year. The related translation adjustments, including translation on long-term intra-entity foreign currency transactions, are recorded as a separate component of stockholders’ equity. Financial Instruments: Financial instruments held by the Company include cash and cash equivalents, accounts receivable, accounts payable, revolving credit agreements, interest rate swap agreements and forward foreign currency exchange contracts. The Company does not hold or issue financial instruments or derivative financial instruments for trading purposes. Interest rate swap agreements and forward foreign currency exchange contracts held by the Company have been designated as hedges of forecasted cash flows. The Company holds these derivative contracts with high-quality financial institutions and limits the amount of credit exposure to any one institution. The Company does not currently hold any nonderivative instruments designated as hedges or any derivatives designated as fair value hedges. The Company uses forward foreign currency exchange contracts to partially reduce risks related to transactions denominated in foreign currencies. The Company offsets fair value amounts related to foreign currency exchange contracts executed with the same counterparty. These contracts hedge firm commitments and forecasted transactions relating to cash flows associated with sales and purchases denominated in currencies other than the subsidiaries’ functional currencies. Changes in the fair value of forward foreign currency exchange contracts that are effective as hedges are recorded in accumulated other comprehensive income (loss) (“AOCI”). Deferred gains or losses are reclassified from AOCI to the Consolidated Statements of Operations in the same period as the gains or losses from the underlying transactions are recorded and are generally recognized in cost of sales. The ineffective portion of derivatives that are classified as hedges is immediately recognized in earnings and generally recognized in cost of sales. The Company uses interest rate swap agreements to partially reduce risks related to floating rate financing agreements that are subject to changes in the market rate of interest. Terms of the interest rate swap agreements require the Company to receive a variable interest rate and pay a fixed interest rate. The Company’s interest rate swap agreements and its variable rate financings are predominately based upon LIBOR (London Interbank Offered Rate). Changes in the fair value of interest rate swap agreements that are effective as hedges are recorded in AOCI. Deferred gains or losses are reclassified from AOCI to the Consolidated Statements of Operations in the same period as the gains or losses from the underlying transactions are recorded and are generally recognized in interest expense, net. The ineffective portion of derivatives that are classified as hedges is immediately recognized in earnings and included in interest expense, net. The Company periodically enters into foreign currency exchange contracts that do not meet the criteria for hedge accounting. These derivatives are used to reduce the Company’s exposure to foreign currency risk related to forecasted purchase or sales transactions or forecasted intercompany cash payments or settlements. Gains and losses on these derivatives are included in other expense, net. Cash flows from hedging activities are reported in the Consolidated Statements of Cash Flows in the same classification as the hedged item, generally as a component of cash flows from operations. Fair Value Measurements: The Company defines the fair value measurement of its financial assets and liabilities as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. Described below are the three levels of inputs that may be used to measure fair value: Level 1 - Quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities. Level 2 - Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. Level 3 - Unobservable inputs are used when little or no market data is available. The hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The classification of fair value measurements within the hierarchy is based upon the lowest level of input that is significant to the measurement. Share-based Compensation : Pursuant to the Executive Long-Term Equity Incentive Plan (the "Executive Plan") established in September 2017, the Company grants shares of Hamilton Beach Brands Holding Company Class A Common, subject to transfer restrictions, as a means of retaining and rewarding selected employees for long-term performance. Shares awarded under the Executive Plan are fully vested and entitle the stockholder to all rights of common stock ownership except that shares may not be assigned, pledged or otherwise transferred during the restriction period. In general, the restriction period ends after three , five or ten years from the award date or at the earliest of (i) three years after the participant's retirement date, or (ii) the participant's death or permanent disability. The Company issued 5,512 shares in the year ended December 31, 2018. No shares were issued in the year ended December 31, 2017 under the Executive Plan. Share-based compensation expense related to the Executive Plan was $2.7 million and $0.2 million for the years ended December 31, 2018 and 2017, respectively, and was based on the fair value of Hamilton Beach Brands Holding Company Class A Common on the grant date. Income Taxes: Tax law requires certain items to be included in the tax return at different times than the items are reflected in the financial statements. Some of these differences are permanent, such as expenses that are not deductible for tax purposes, and some differences are temporary, reversing over time, such as depreciation expense. These temporary differences create deferred tax assets and liabilities using currently enacted tax rates. The objective of accounting for income taxes is to recognize the amount of taxes payable or refundable for the current year, and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in the financial statements or tax returns. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the provision for income taxes in the period that includes the enactment date. Management is required to estimate the timing of the recognition of deferred tax assets and liabilities, make assumptions about the future deductibility of deferred tax assets and assess deferred tax liabilities based on enacted law and tax rates for the appropriate tax jurisdictions to determine the amount of such deferred tax assets and liabilities. Changes in the calculated deferred tax assets and liabilities may occur in certain circumstances, including statutory income tax rate changes, statutory tax law changes, or changes in the Company's structure or tax status. The Company's tax assets, liabilities, and tax expense are supported by historical earnings and losses and the Company's best estimates and assumptions of future earnings. The Company assesses whether a valuation allowance should be established against the Company's deferred tax assets based on consideration of all available evidence, both positive and negative, using a more likely than not standard. This assessment considers, among other matters, scheduled reversals of deferred tax liabilities, projected future taxable income, tax-planning strategies, and results of recent operations. The assumptions about future taxable income require significant judgment and are consistent with the plans and estimates the Company is using to manage the underlying businesses. When the Company determines, based on all available evidence, that it is more likely than not that deferred tax assets will not be realized, a valuation allowance is established. Accounting Standards Adopted In May 2014, the FASB codified in ASC 606, "Revenue Recognition - Revenue from Contracts with Customers" ("ASC 606"), which supersedes ASC 605, "Revenue Recognition" ("ASC 605"), including industry-specific guidance, and requires an entity to recognize revenue in an amount that reflects the consideration to which the entity expects to be entitled in exchange for transferring goods or services to customers and provide additional disclosures. The Company has adopted the guidance for all contracts at the date of initial application of January 1, 2018. The amount and timing of revenue recognition is not materially impacted by the new standard, thus no cumulative adjustment was recognized upon adoption. The classification of accrued product returns, which is now reported as a liability on the consolidated balance sheet, was previously classified as an allowance against accounts receivable. In February 2018, the FASB issued ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220)". The guidance in ASU 2018-02 allows an entity to elect to reclassify the stranded tax effects related to the Tax Cuts and Jobs Act (the "Tax Act") of 2017 from accumulated other comprehensive income ("AOCI") into retained earnings. The Company elected to early adopt ASU 2018-02 as of January 1, 2018. As a result of adopting this standard, the Company reclassified $1.2 million from AOCI to retained earnings. Accounting Standards Not Yet Adopted: The Company is an emerging growth company and has elected not to opt out of the extended transition period for complying with new or revised accounting standards, which means that when a standard is issued or revised and it has different application dates for public or nonpublic entities, the Company can adopt the new or revised standard at the time nonpublic entities adopt the new or revised standard. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)," which requires an entity to recognize assets and liabilities for the rights and obligations created by leased assets. For nonpublic entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company is planning to adopt ASU 2016-02 for its year ending December 31, 2020 and is currently evaluating to what extent ASU 2016-02 will affect the Company's financial position, results of operations, cash flows and related disclosures. In March 2017, the FASB issued ASU 2017-07, "Compensation - Retirement Benefits (Topic 715)," which amends the requirements in U.S. GAAP related to the income statement presentation of the components of net periodic benefit cost for an entity's sponsored defined benefit pension and other post-retirement plans. For nonpublic entities, the amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company is planning to adopt ASU 2017-07 in the first quarter of 2019 and does not expect application of this ASU to have a material impact on the Company's financial position, results of operations, cash flows and related disclosures. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are summarized as follows: December 31 2018 2017 Sourced inventories - HBB $ 122,697 $ 111,493 Retail inventories - KC 21,994 23,251 Total inventories $ 144,691 $ 134,744 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue A description of the performance obligations for each segment is as follows: Hamilton Beach Brands • Product revenue - Product revenue consist of sales of small electric household and specialty housewares appliances to traditional brick and mortar and e-commerce retailers, distributors and directly to the end consumer as well as sales of commercial products for restaurants, bars and hotels. Transactions with these customers generally originate upon the receipt of a purchase order from the customer, which in some cases are governed by master sales agreements, specifying product(s) that the customer desires. Contracts for product revenue generally have an original duration of one year or less, and payment terms are generally standard and based on customer creditworthiness. Revenue from product sales is recognized at the point in time when control transfers to the customer, which is either when product is shipped from the Company's facility, or delivered to customers, depending on the shipping terms. The amount of consideration received and revenue recognized varies with changes in incentives, returns and consideration paid to customers for advertising arrangements. • License revenues - From time to time, the Company enters into exclusive and non-exclusive licensing agreements which grant the right to use certain of the Company’s intellectual property (IP) in connection with designing, manufacturing, distributing, advertising, promoting and selling the licensees’ products during the term of the agreement. The IP that is licensed generally consists of trademarks, tradenames, trade dress, and/or logos (the “Licensed IP”). In exchange for granting the right to use the Licensed IP, the Company receives a royalty payment, which is a function of (1) the total net sales of products that use the Licensed IP and (2) the royalty percentage that is stated in the licensing agreement. The Company recognizes revenue at the later of when the subsequent sales occur or satisfying the performance obligation (over time). Kitchen Collection • Product revenue - KC sells a variety of kitchenware products from a number of highly recognizable name brands to individual consumers. Products are predominantly sold through brick and mortar retail stores whereby customers come into KC stores, explore the assortment of merchandise available for sale, select various products that they desire to purchase, bring those products to the sales register and pay the cashier the agreed-upon price using either cash, check or credit card. Once the sale is complete, a receipt is generated and provided to the customer as proof of purchase. Therefore, the sales process is both originated and completed simultaneously at the point of sale. Revenue from product sales is recognized at the point in time when control transfers to the customer, which occurs when the products are scanned at the sales register. The amount of consideration received and revenue recognized varies with changes in returns. HBB’s 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 customer as HBB may repair or replace, at its option, those products returned under warranty. Accordingly, the Company determined that no separate performance obligation exists. HBB products are not sold with a general right of return. However, based on historical experience, a portion of HBB and KC products sold are estimated to be returned due to reasons such as buyer remorse, duplicate gifts received, product failure and excess inventory stocked by the customer, which, subject to certain terms and conditions, the Company will agree to accept. Product returns, customer programs and incentive offerings, including special pricing agreements, price competition, promotions, and other volume-based incentives are accounted for as variable consideration. The following table presents the Company's revenue on a disaggregated basis for the year ending: December 31, 2018 HBB KC Consolidated (1) Type of good or service: Products $ 630,112 $ 113,469 $ 739,520 Licensing 3,659 — 3,659 Total revenues $ 633,771 $ 113,469 $ 743,179 (1) Includes the required intercompany eliminations between HBB and KC. Wal-Mart Inc. and its subsidiaries accounted for approximately 33% of HBB’s revenue in 2018, 2017 , and 2016 . Amazon.com, Inc. and its subsidiaries accounted for approximately 11% , 12% , and 10% of HBB's revenue in 2018 , 2017, and 2016 respectively. HBB’s five largest customers accounted for approximately 54% , 55% , and 54% of HBB’s revenue for the years ended December 31, 2018 , 2017 , and 2016, respectively. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net Property, plant and equipment, net includes the following: December 31 2018 2017 Land $ 226 $ 226 Furniture and fixtures 27,682 28,676 Building and improvements 15,856 14,109 Machinery and equipment 33,303 33,411 Construction in progress, including internal use capitalized software 10,684 8,388 Property, plant and equipment, at cost 87,751 84,810 Less allowances for depreciation and amortization 65,121 65,727 $ 22,630 $ 19,083 Total depreciation and amortization expense on property, plant and equipment was $3.9 million , $4.2 million , and $4.8 million during 2018 , 2017 , and 2016, respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets other than goodwill, which are subject to amortization, consist of the following: Gross Carrying Accumulated Net Balance at December 31, 2018 HBB: Customer relationships $ 5,760 $ (3,880 ) $ 1,880 Trademarks 3,100 (808 ) 2,292 Other intangibles 1,240 (893 ) 347 $ 10,100 $ (5,581 ) $ 4,519 Balance at December 31, 2017 HBB: Customer relationships $ 5,760 $ (2,920 ) $ 2,840 Trademarks 3,100 (608 ) 2,492 Other intangibles 1,240 (672 ) 568 $ 10,100 $ (4,200 ) $ 5,900 Amortization expense for intangible assets was $1.4 million in 2018 , 2017 and 2016. Expected annual amortization expense of HBB's intangible assets for the next five years is $1.4 million in 2019, $1.2 million in 2020, and $0.2 million in 2021, 2022, and 2023. The weighted average amortization period for HBB's intangible assets is approximately 8.9 years. |
Current and Long-Term Financing
Current and Long-Term Financing | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Current and Long-Term Financing | Current and Long-Term Financing Financing arrangements exist at the subsidiary level. Hamilton Beach Brands Holding Company has not guaranteed any borrowings of its subsidiaries. The following table summarizes the Company's available and outstanding borrowings: December 31 2018 2017 Total outstanding borrowings: Revolving credit agreements — HBB $ 45,733 $ 51,346 Book overdrafts — HBB 891 — Total debt outstanding $ 46,624 $ 51,346 Current portion of borrowings outstanding - HBB $ 11,624 $ 31,346 Long-term portion of borrowings outstanding - HBB 35,000 20,000 $ 46,624 $ 51,346 Total available borrowings, net of limitations, under revolving credit agreements: HBB $ 114,669 $ 111,078 KC 13,595 13,589 $ 128,264 $ 124,667 Unused revolving credit agreements: HBB $ 68,936 $ 59,732 KC 13,595 13,589 $ 82,531 $ 73,321 Weighted average stated interest rate on total borrowings - HBB 4.12 % 3.82 % Weighted average effective interest rate on total borrowings (including interest rate swap - HBB agreements) 3.45 % 3.83 % Including swap settlements, interest paid on total debt was $3.1 million , $1.6 million , and $1.4 million during 2018 , 2017 , and 2016, respectively. Interest capitalized was $0.3 million in 2018 , $0.2 million in 2017 and less than $0.1 million 2016. HBB: HBB has a $115.0 million senior secured floating-rate revolving credit facility (the “HBB Facility”) that expires in June 2021, at which time borrowings outstanding are required to be repaid. The current portion of borrowings outstanding represents expected voluntary repayments to be made in 2019. The obligations under the HBB Facility are secured by substantially all of HBB's assets. The approximate book value of HBB's assets held as collateral under the HBB Facility was $294.3 million as of December 31, 2018 . The maximum availability under the HBB Facility is governed by a borrowing base derived from advance rates against eligible accounts receivable, inventory and trademarks of the borrowers, as defined in the HBB Facility. Adjustments to reserves booked against these assets, including inventory reserves, will change the eligible borrowing base and thereby impact the liquidity provided by the HBB Facility. A portion of the availability is denominated in Canadian dollars to provide funding to HBB's Canadian subsidiary. Borrowings bear interest at a floating rate, which can be a base rate, LIBOR or bankers' acceptance rate, as defined in the HBB Facility, plus an applicable margin. The applicable margins, as of December 31, 2018 , for base rate loans and LIBOR loans denominated in U.S. dollars were 0.00% and 1.75% , respectively. The applicable margins, as of December 31, 2018 , for base rate loans and bankers' acceptance loans denominated in Canadian dollars were 0.00% and 1.75% , respectively. The HBB Facility also requires a fee of 0.25% per annum on the unused commitment. The margins and unused commitment fee under the HBB Facility are subject to quarterly adjustment based on average excess availability. The HBB Facility includes restrictive covenants, which, among other things, limit the payment of dividends to Hamilton Beach Brands Holding Company, subject to achieving availability thresholds. Dividends to Hamilton Beach Brands Holding Company are not to exceed $5.0 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 $15.0 million . Dividends to Hamilton Beach Brands Holding Company 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 $25.0 million . The HBB Facility also requires HBB to achieve a minimum fixed charge coverage ratio in certain circumstances, as defined in the HBB Facility. At December 31, 2018, HBB was in compliance with all financial covenants in the HBB Facility. KC: KC has a $20.0 million secured revolving line of credit that expires in October 2022 (the “KC Facility”). The obligations under the KC Facility are secured by substantially all assets of KC. The approximate book value of KC's assets held as collateral under the KC Facility was $34.2 million as of December 31, 2018. The maximum availability under the KC Facility is derived from a borrowing base formula using KC's eligible inventory and eligible credit card accounts receivable, as defined in the KC Facility. Borrowings bear interest at a floating rate plus a margin based on the excess availability under the agreement, as defined in the KC Facility, which can be either a base rate plus a margin of 0.75% or LIBOR plus a margin of 1.75% as of December 31, 2018. The KC Facility also requires a fee of 0.25% per annum on the unused commitment. The KC Facility allows for the payment of dividends to Hamilton Beach Brands Holding Company, subject to certain restrictions based on availability and meeting a fixed charge coverage ratio as described in the KC Facility. Dividends are limited to (i) $6.0 million in any twelve -month period, so long as KC has excess availability, as defined in the KC Facility, of at least $5.0 million after giving effect to such payment and maintaining a minimum fixed charge coverage ratio of 1.1 to 1.0, as defined in the KC Facility; (ii) $2.0 million in any twelve -month period, so long as KC has excess availability, as defined in the KC Facility, of at least $5.0 million after giving effect to such payment and (iii) in such amounts as determined by KC, so long as KC has excess availability under the KC Facility of $10.0 million after giving effect to such payment. At December 31, 2018, KC was in compliance with all financial covenants in the KC Facility. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Foreign Currency Derivatives : HBB held forward foreign currency exchange contracts with total notional amounts of $13.0 million and $11.7 million at December 31, 2018 , and 2017 , respectively, denominated primarily in Canadian dollars and Mexican pesos. The fair value of these contracts approximated a net receivable of $0.1 million and $0.2 million at December 31, 2018 and 2017 , respectively. Forward foreign currency exchange contracts that qualify for hedge accounting are used to hedge transactions expected to occur within the next twelve months. The mark-to-market effect of forward foreign currency exchange contracts that are considered effective as hedges has been included in AOCI. Interest Rate Derivatives : HBB has interest rate swaps that hedge interest payments on its one-month LIBOR borrowings. All swaps have been designated as cash flow hedges. The following table summarizes the notional amounts, related rates and remaining terms of active and delayed interest rate swap agreements at December 31 in millions: Notional Amount Average Fixed Rate Remaining Term at 2018 2017 2018 2017 December 31, 2018 HBB - Interest rate swaps $ 20.0 $ 20.0 1.4 % 1.4 % Extending to January 2020 HBB - Interest rate swaps $ 15.0 $ 15.0 1.6 % 1.6 % Extending to January 2024 HBB - Delayed start interest rate swaps $ 10.0 $ 10.0 1.7 % 1.7 % Extending to January 2024 The fair value of HBB's interest rate swap agreements was a receivable of $1.1 million and $0.9 million at December 31, 2018 and 2017, respectively. The mark-to-market effect of interest rate swap agreements that are considered effective as hedges has been included in AOCI. The interest rate swap agreements held by HBB on December 31, 2018 are expected to continue to be effective as hedges. The following table summarizes the fair value of derivative instruments at December 31 as recorded in the Consolidated Balance Sheets: Asset Derivatives Liability Derivatives Balance sheet location 2018 2017 Balance sheet location 2018 2017 Derivatives designated as hedging instruments Interest rate swap agreements Current Prepaid expenses and other current assets $ 349 $ 109 Other current liabilities $ — $ — Long-term Other non-current assets 710 785 Other long-term liabilities — — Foreign currency exchange contracts Current Prepaid expenses and other current assets 231 245 Other current liabilities 87 93 Total derivatives $ 1,290 $ 1,139 $ 87 $ 93 |
Fair Value Disclosure
Fair Value Disclosure | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosure | Fair Value Disclosure Recurring Fair Value Measurements : The Company measures its derivatives at fair value using significant observable inputs, which is Level 2 as defined in the fair value hierarchy. The Company uses a present value technique that incorporates the LIBOR swap curve, foreign currency spot rates and foreign currency forward rates to value its derivatives, including its interest rate swap agreements and foreign currency exchange contracts, and also incorporates the effect of its subsidiary and counterparty credit risk into the valuation. Other Fair Value Measurement Disclosures: The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to the short-term maturities of these instruments. The fair values of revolving credit agreements, including book overdrafts, were determined using current rates offered for similar obligations taking into account subsidiary credit risk, which is Level 2 as defined in the fair value hierarchy. At December 31, 2018 and 2017, both the fair value and the carrying value of revolving credit agreements, including book overdrafts, was $46.6 million and $51.3 million , respectively. There were no transfers into or out of Levels 1, 2 or 3 during the years ended December 31, 2018 and 2017. |
Leasing Arrangements
Leasing Arrangements | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Leasing Arrangements | Leasing Arrangements The Company leases certain office and warehouse facilities, retail stores and machinery and equipment under noncancellable operating leases that expire at various dates through 2034. Many leases include renewal and/or fair value purchase options. Future minimum operating lease payments at December 31, 2018 are: Operating Leases 2019 $ 20,705 2020 14,092 2021 8,863 2022 5,376 2023 3,660 Subsequent to 2023 21,911 Total minimum lease payments $ 74,607 Rental expense, net of sublease rental income for all operating leases, is reported in selling, general and administrative expenses and was $23.6 million , $25.0 million , and $25.9 million in 2018 , 2017 , and 2016, respectively. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Various legal and regulatory proceedings and claims have been or may be asserted against Hamilton Beach Holding and certain subsidiaries relating to the conduct of their businesses, including product liability, patent infringement, asbestos related claims, environmental and other claims. These proceedings and claims are incidental to the ordinary course of business of the Company. Management believes that it has meritorious defenses and will vigorously defend the Company in these actions. Any costs that management estimates will be paid as a result of these claims are accrued when the liability is considered probable and the amount can be reasonably estimated. If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the minimum of the range is accrued. The Company does not accrue liabilities when the likelihood that the liability has been incurred is probable but the amount cannot be reasonably estimated or when the liability is believed to be only reasonably possible or remote. For contingencies where an unfavorable outcome is probable or reasonably possible and which are material, the Company discloses the nature of the contingency and, in some circumstances, an estimate of the possible loss. HBB is a defendant in a legal proceeding in which the plaintiff alleges that certain HBB products infringe the plaintiff's patents. The Company believes that its products do not infringe on any of the patents claimed by the plaintiff, and that the claims asserted are without merit. The Company is vigorously defending itself against these allegations, and has and will continue to challenge the claims. The Company believes the likelihood of loss is not probable and therefore no liability has been recorded for the claims as of December 31, 2018 and 2017. An estimate of the possible loss or range of loss cannot be determined because the claims, amount claimed, facts or legal status are not sufficiently developed or advanced in order to make such a determination. While the Company cannot estimate the loss or range of loss at this time, the Company does not believe that the outcome of this proceeding would be material to its financial position, results of operations or cash flows. These matters are subject to inherent uncertainties, and unfavorable rulings could occur. If an unfavorable ruling were to occur, there exists the possibility of an adverse impact on the Company’s financial position, results of operations and cash flows of the period in which the ruling occurs, or in future periods. Environmental matters HBB is investigating or remediating historical environmental contamination at some current and former sites operated by HBB or by businesses it acquired. Based on the current stage of the investigation or remediation at each known site, HBB estimates the total investigation and remediation costs and the period of assessment and remediation activity required for each site. The estimate of future investigation and remediation costs is primarily based on variables associated with site clean-up, including, but not limited to, physical characteristics of the site, the nature and extent of the contamination and applicable regulatory programs and remediation standards. No assessment can fully characterize all subsurface conditions at a site. There is no assurance that additional assessment and remediation efforts will not result in adjustments to estimated remediation costs or the time frame for remediation at these sites. HBB's estimates of investigation and remediation costs may change if it discovers contamination at additional sites or additional contamination at known sites, if the effectiveness of its current remediation efforts change, if applicable federal or state regulations change or if HBB's estimate of the time required to remediate the sites changes. HBB's revised estimates may differ materially from original estimates. At December 31, 2018 and 2017, HBB had accrued undiscounted obligations of $8.2 million and $8.9 million , respectively, for environmental investigation and remediation activities at these sites. |
Stockholders' Equity and Earnin
Stockholders' Equity and Earnings Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity and Earnings Per Share | Stockholders' Equity and Earnings Per Share Capital Stock: The authorized capital stock of the Company consists of Class A Common, Class B Common and one series of Preferred stock. Voting, dividend, conversion and liquidation rights of the Preferred stock is established by the Board upon issuance of such preferred stock. Hamilton Beach Brands Holding Company Class A Common is traded on the New York Stock Exchange under the ticker symbol “HBB.” Because of transfer restrictions on Class B Common, no trading market has developed, or is expected to develop, for the Class B Common. Subject to the rights of the holders of any series of preferred stock, each share of Class A Common will entitle the holder of the share to one vote on all matters submitted to stockholders, and each share of the Company's Class B Common will entitle the holder of the share to ten votes on all such matters. Subject to the rights of the preferred stockholders, each share of Class A Common and Class B Common will be equal in respect of rights to dividends, except that in the case of dividends payable in stock, only Class A Common will be distributed with respect to Class A Common and only Class B Common will be distributed with respect to Class B Common. As the liquidation and dividend rights are identical, any distribution of earnings would be allocated to Class A and Class B stockholders on a proportionate basis, and accordingly the net income per share for each class of common stock is identical. Class B Common converted to Class A Common were 386,581 and 2,028,491 shares, respectively, during the periods ended December 31, 2018 and 2017. Share-based Compensation: See Note 2 for a discussion of the Executive Plan. Stock Repurchase Program : On May 15, 2018, the Company's Board approved the repurchase of up to $25 million of outstanding Class A Common through December 31, 2019. The timing and amount of any repurchases will be determined at the discretion of the Company's management based on a number of factors, including the availability of capital, other capital allocation alternatives and market conditions for Class A Common. As of December 31, 2018, the Company had no repurchases under this program. Amounts Reclassified out of Accumulated Other Comprehensive Income: The following table summarizes the amounts reclassified out of AOCI and recognized in the Consolidated Statements of Operations: Amount reclassified from AOCI Details about AOCI components 2018 2017 2016 Location of loss (gain) reclassified from AOCI into income Loss (gain) on cash flow hedging Foreign exchange contracts $ 32 $ 853 $ (11 ) Cost of sales Interest rate contracts 181 63 183 Interest expense, net 213 916 172 Total before income tax benefit Tax effect (60 ) (275 ) (67 ) Income tax benefit $ 153 $ 641 $ 105 Net of tax Pension plan Actuarial loss $ 823 $ 511 $ 508 (a) Tax effect (173 ) (205 ) (195 ) Income tax benefit $ 650 $ 306 $ 313 Net of tax Total reclassifications for the period $ 803 $ 947 $ 418 Net of tax (a) These AOCI components are included in the computation of pension expense. See Note 14 for a discussion of the Company's pension expense. Earnings per share: Basic income per common share has been computed by dividing net income by the weighted-average number of shares of the Company’s common stock outstanding. Diluted income per common share adjusts common stock outstanding for the effect of all potentially dilutive shares. The weighted average number of shares of Class A Common and Class B Common outstanding used to calculate basic and diluted earnings per share were as follows: 2018 2017 2016 Basic weighted average shares outstanding (1) 13,699 13,673 13,673 Dilutive effect of share-based compensation awards 32 12 — Diluted weighted average shares outstanding (1) 13,731 13,685 13,673 Basic and diluted earnings per share (1) $ 1.59 $ 1.31 $ 1.91 (1) On September 29, 2017, NACCO, Hamilton Beach Holding's former parent company, spun-off the Company to NACCO stockholders. The basic and diluted earnings per share amounts for the Company have been calculated based upon the number of shares distributed in the spin-off for all periods prior to the spin-off. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income before income taxes and the income tax provision for the years ended December 31 are as follows: 2018 2017 2016 Income before income taxes Domestic $ 23,737 $ 31,328 $ 39,136 Foreign 4,292 4,749 2,027 $ 28,029 $ 36,077 $ 41,163 Income tax provision Current income tax provision: Federal $ (634 ) $ 11,484 $ 12,140 State 539 1,381 501 Foreign 1,393 1,365 556 Total current 1,298 14,230 13,197 Deferred income tax provision (benefit): Federal 4,911 4,122 1,458 State (40 ) (437 ) 239 Foreign 76 257 90 Total deferred 4,947 3,942 1,787 $ 6,245 $ 18,172 $ 14,984 The Company made federal income tax payments of $8.3 million , $9.9 million , and $11.0 million during 2018, 2017, and 2016, respectively, to the IRS and to NACCO as a member of the consolidated income tax return for periods prior to spin off. The Company made foreign and state income tax payments of $2.6 million , $1.9 million , and $2.8 million during 2018, 2017, and 2016, respectively. During the same periods, income tax refunds totaled $0.1 million in 2018 and $0.6 million in 2016. There were no tax refunds in 2017. A reconciliation of the federal statutory and effective income tax rate for the years ended December 31 is as follows: 2018 2017 2016 Income before income taxes $ 28,029 $ 36,077 $ 41,163 Statutory taxes at 21.0% (35.0% in 2017 and prior) $ 5,886 $ 12,627 $ 14,407 State and local income taxes 330 901 1,019 Other non-deductible expenses 597 411 414 Credits (398 ) (445 ) (211 ) Valuation allowances 231 369 170 Provisional effect of the Tax Act — 4,654 — Non-deductible spin-related costs — 540 — Other, net (401 ) (885 ) (815 ) Income tax provision $ 6,245 $ 18,172 $ 14,984 Effective income tax rate 22.3 % 50.4 % 36.4 % A detailed summary of the total deferred tax assets and liabilities in the Company's Consolidated Balance Sheets resulting from differences in the book and tax basis of assets and liabilities follows: December 31 2018 2017 Deferred tax assets Tax carryforwards $ 2,293 $ 5,034 Inventories 147 207 Depreciation and amortization — 716 Accrued expenses and reserves 5,962 6,929 Other employee benefits 2,747 3,238 Other 1,178 696 Total deferred tax assets 12,327 16,820 Less: Valuation allowance 1,300 1,916 11,027 14,904 Deferred tax liabilities Accrued pension benefits 1,854 2,079 Depreciation and amortization 1,010 — Total deferred tax liabilities 2,864 2,079 Net deferred tax asset $ 8,163 $ 12,825 The following table summarizes the tax carryforwards and associated carryforward periods and related valuation allowances where the Company has determined that realization is uncertain: December 31, 2018 Net deferred tax asset Valuation allowance Carryforwards expire during: Non-U.S. net operating loss 990 990 2019 - Indefinite State losses 1,303 — 2020 - 2036 Total $ 2,293 $ 990 December 31, 2017 Net deferred tax asset Valuation allowance Carryforwards expire during: Alternative minimum tax credit $ 2,429 $ — (1) Non-U.S. net operating loss 1,658 1,658 2018 - Indefinite State losses 1,198 — 2020 - 2035 Total $ 5,285 $ 1,658 (1) The Tax Act repealed the corporate alternative minimum tax for tax years beginning after December 31, 2017. These credits are fully utilized in 2018 based on estimated income taxes. The Company has a valuation allowance for certain foreign deferred tax assets. Based upon the review of historical earnings and the relevant expiration of carryforwards, the Company believes the valuation allowances are appropriate and does not expect to release valuation allowances within the next twelve months that would have a significant effect on the Company’s financial position or results of operations. On December 22, 2017, the U.S. federal government enacted the Tax Act, which significantly revised U.S. tax law. The Tax Act has positively impacted the Company’s effective income tax rate due to the reduction of the U.S. federal corporate tax rate from 35% to 21%, effective January 1, 2018. Subsequent to the enactment of the Tax Act, the SEC staff issued Staff Accounting Bulletin 118 (“SAB 118”), which provided a measurement period of up to one year after the enactment date for companies to finalize the recognition of the income tax effects of the Tax Act. As a result of the Tax Act and pursuant to SAB 118, the Company recorded a provisional net tax charge of $4.7 million in the year ending December 31, 2017. Included in the 2017 amount was is $4.1 million for the remeasurement of U.S. deferred tax assets and liabilities resulting from the reduction in the U.S. federal corporate tax rate from 35% to 21%, $0.4 million related to executive compensation that may not be deductible when paid in future periods, and $0.2 million related to the net estimated income tax on deemed repatriation of foreign earnings. The Company computed the provisional income tax charge based on information available during 2017. As of December 31, 2018, the Company completed the accounting for the income tax effects of the Tax Act which resulted in no adjustments to the provisional amounts recorded at December 31, 2017. The Company made an accounting policy election to account for the global intangible low-tax income ("GILTI"), as a current period expense when incurred. As of December 31, 2018, the cumulative unremitted earnings of the Company's foreign subsidiaries were approximately $23.6 million . The Company expects to pay the one-time transition tax related to unremitted earnings of $0.5 million over 8 years. The Company continues to conclude all material entities’ foreign earnings will be indefinitely reinvested in its foreign operations and will remain offshore in order to meet the capital and business needs outside of the U.S. As a result, the Company does not provide a deferred tax liability with respect to the cumulative unremitted earnings. It is not practicable to determine the deferred tax liability associated with these undistributed earnings due to the availability of foreign tax credits and the complexity of the rules governing the utilization of such credits under the new rules under the Tax Act. The following is a reconciliation of the Company's total gross unrecognized tax benefits, defined as the aggregate tax effect of differences between tax return positions and the benefits recognized in the financial statements for the years ended December 31, 2018, 2017, and 2016. Approximately $0.3 million , $0.6 million , and $0.4 million of these gross amounts as of December 31, 2018, 2017, and 2016, respectively, relate to permanent items that, if recognized, would impact the effective income tax rate. This amount differs from the gross unrecognized tax benefits presented in the table below due to the decrease in U.S. federal income taxes which would occur upon the recognition of the state tax benefits included herein. 2018 2017 2016 Balance at January 1 $ 881 $ 671 $ 1,199 Additions based on tax positions related to prior years 90 — 167 Additions based on tax positions related to the current year — 210 165 Reductions due to settlements with taxing authorities (506 ) — (860 ) Balance at December 31 $ 465 $ 881 $ 671 The Company records interest and penalties on uncertain tax positions as a component of the income tax provision. The Company recorded immaterial amounts of interest and penalties as of December 31, 2018 and 2017, respectively. The Company expects the amount of unrecognized tax benefits will change within the next 12 months; however, the change in unrecognized tax benefits, which is reasonably possible within the next 12 months, is not expected to have a significant effect on the Company's financial position, results of operations or cash flows. In general, the Company operates in taxing jurisdictions that provide a statute of limitations period ranging from three to five years for the taxing authorities to review the applicable tax filings. The examination of NACCO's 2013-2016 U.S. federal tax returns is ongoing. In addition, the Company does not have any material taxing jurisdictions in which the statute of limitations has been extended beyond the applicable time frame allowed by law. |
Retirement Benefit Plans
Retirement Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Retirement Benefit Plans | Retirement Benefit Plans Defined Benefit Plans: The Company maintains two defined benefit pension plans that provide benefits based on years of service and average compensation during certain periods. The assumptions used in accounting for the defined benefit plans were as follows for the years ended December 31 : 2018 2017 2016 U.S. Plan Discount rate for pension benefit obligation 4.00 % 3.30 % 3.60 % Discount rate for net periodic benefit cost 3.30 % 3.60 % 3.70 % Expected long-term rate of return on assets for net periodic benefit income 7.50 % 7.50 % 7.50 % Non-U.S. Plan Discount rate for pension benefit obligation 3.50 % 3.25 % 3.75 % Discount rate for net periodic benefit cost 3.50 % 3.75 % 4.00 % Expected long-term rate of return on assets for net periodic benefit (income) expense 5.50 % 5.50 % 5.50 % Set forth below is a detail of the net periodic pension income for the defined benefit plans for the years ended December 31 : 2018 2017 2016 U.S. Plan Interest cost $ 681 $ 811 $ 875 Expected return on plan assets (2,047 ) (2,074 ) (2,071 ) Amortization of actuarial loss 623 501 495 Net periodic pension income $ (743 ) $ (762 ) $ (701 ) Non-U.S. Plan Interest cost $ 142 $ 153 $ 144 Expected return on plan assets (286 ) (264 ) (248 ) Amortization of actuarial loss 200 10 13 Net periodic pension loss (income) $ 56 $ (101 ) $ (91 ) Set forth below is the detail of other changes in plan assets and benefit obligations recognized in other comprehensive loss (income) for the years ended December 31 : 2018 2017 2016 U.S. Plan Current year actuarial loss (gain) $ 2,347 $ (2,506 ) $ 243 Amortization of actuarial loss (623 ) (501 ) (495 ) Total recognized in other comprehensive loss (income) $ 1,724 $ (3,007 ) $ (252 ) Non-U.S. Plan Current year actuarial loss $ 236 $ 60 $ 318 Amortization of actuarial loss (200 ) (10 ) (13 ) Total recognized in other comprehensive loss $ 36 $ 50 $ 305 The following table sets forth the changes in the benefit obligation and the plan assets during the year and the funded status of the defined benefit plans at December 31 : 2018 2017 U.S. Plan Non-U.S. Plan U.S. Plan Non-U.S. Plan Change in benefit obligation Projected benefit obligation at beginning of year $ 21,716 $ 4,604 $ 23,651 $ 4,021 Interest cost 681 142 811 153 Actuarial (gain) loss (1,278 ) (148 ) (521 ) 291 Benefits paid (1,988 ) (151 ) (2,225 ) (153 ) Foreign currency exchange rate changes — (363 ) — 292 Projected benefit obligation at end of year $ 19,131 $ 4,084 $ 21,716 $ 4,604 Accumulated benefit obligation at end of year $ 19,131 $ 4,084 $ 21,716 $ 4,604 Change in plan assets Fair value of plan assets at beginning of year $ 29,237 $ 5,456 $ 27,402 $ 4,712 Actual return on plan assets (1,578 ) (111 ) 4,060 497 Employer contributions — — — 55 Benefits paid (1,988 ) (151 ) (2,225 ) (153 ) Foreign currency exchange rate changes — (450 ) — 345 Fair value of plan assets at end of year $ 25,671 $ 4,744 $ 29,237 $ 5,456 Funded status at end of year $ 6,540 $ 660 $ 7,521 $ 852 Amounts recognized in the balance sheets consist of: Non-current assets $ 6,540 $ 660 $ 7,521 $ 852 Components of accumulated other comprehensive loss consist of: Actuarial loss $ (11,427 ) $ (1,225 ) $ (9,703 ) $ (1,033 ) Deferred taxes and other 2,933 485 3,687 371 $ (8,494 ) $ (740 ) $ (6,016 ) $ (662 ) The actuarial loss included in accumulated other comprehensive loss expected to be recognized in net periodic pension income in 2019 is $0.6 million . The Company recognizes as a component of benefit cost (income), as of the measurement date, any unrecognized actuarial net gains or losses that exceed 10% of the larger of the projected benefit obligations or the plan assets, defined as the "corridor." Amounts outside the corridor are amortized over the average expected remaining lifetime of inactive participants for the pension plans. The gain (loss) amounts recognized in AOCI are not expected to be fully recognized until the plan is terminated or as settlements occur, which would trigger accelerated recognition. The Company's policy is to make contributions to fund its pension plans within the range allowed by applicable regulations. The Company does not expect to contribute to its U.S. and non-U.S. pension plans in 2019 . Pension benefit payments are made from assets of the pension plans. Future pension benefit payments expected to be paid from assets of the pension plans are: U.S. Plan Non-U.S. Plan 2019 $ 1,929 $ 174 2020 2,131 184 2021 1,847 196 2022 1,771 234 2023 1,721 231 2024 - 2028 6,772 1,210 $ 16,171 $ 2,229 The expected long-term rate of return on defined benefit plan assets reflects management's 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 considers 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 classes used to determine the Company's estimated rate of return assumption were 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. Expected returns for U.S. pension plans 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 are recognized in the market-related value of assets ratably over three years. Expected returns for Non-U.S. pension plans are based on fair market value for Non-U.S. pension plan assets. The pension plans maintain investment policies that, among other things, establish a portfolio asset allocation methodology with percentage allocation bands for individual asset classes. The investment policies provide that investments are reallocated between asset classes as balances exceed or fall below the appropriate allocation bands. The following is the actual allocation percentage and target allocation percentage for the U.S. pension plan assets at December 31: 2018 2017 Target Allocation Range U.S. equity securities 43.8 % 45.8 % 36.0% - 54.0% Non-U.S. equity securities 19.3 % 20.5 % 16.0% - 24.0% Fixed income securities 36.4 % 32.9 % 30.0% - 40.0% Money market 0.5 % 0.8 % 0.0% - 10.0% The following is the actual allocation percentage and target allocation percentage for the Non-U.S. pension plan assets at December 31: 2018 2017 Target Allocation Range Canadian equity securities 29.5 % 33.6 % 25.0% - 35.0% Non-Canadian equity securities 29.9 % 34.3 % 25.0% - 35.0% Fixed income securities 40.6 % 32.1 % 30.0% - 50.0% Cash and cash equivalents — % — % 0.0% - 5.0% The fair value of each major category of the Company's U.S. pension plan assets are valued using quoted market prices in active markets for identical assets, or Level 1 in the fair value hierarchy. The fair value of each major category of the Company's Non-U.S. pension plan assets are valued using observable inputs, either directly or indirectly, other than quoted market prices in active markets for identical assets. Following are the values as of December 31 : U.S. Plan Non-U.S. Plan 2018 2017 2018 2017 U.S. equity securities $ 11,251 $ 13,402 $ 735 $ 952 Non-U.S. equity securities 4,930 5,993 2,081 2,750 Fixed income securities 9,350 9,622 1,928 1,754 Money market 140 220 — — Total $ 25,671 $ 29,237 $ 4,744 $ 5,456 Defined Contribution Plans: HBB and KC maintain defined contribution (401(k)) plans for substantially all U.S. employees and similar plans for employees outside of the U.S. The Company provides employer matching (or safe harbor) contributions based on plan provisions. The defined contribution retirement plans also provide for an additional minimum employer contribution. Certain plans also permit additional contributions whereby the applicable company’s contribution to participants is determined annually based on a formula that includes the effect of actual operating results compared with targeted operating results and the age and/or compensation of the participants. Total costs, including Company contributions, for these plans were $5.3 million in 2018 and 2017 , and $5.2 million in 2016. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments As described in Note 2 , the Company's reportable segments include HBB and KC. The accounting policies of the reportable segments are the same as the Company as described in Note 2. The line “Eliminations” in the revenue section eliminates revenue from HBB sales to KC. Intercompany revenue is based on current market prices of similar third-party transactions. The line “Not allocated” in the total assets section primarily represents federal tax receivables and credit carryforwards. 2018 2017 2016 Revenue HBB $ 633,771 $ 615,071 $ 605,170 KC 113,469 128,520 144,351 Eliminations (4,061 ) (2,842 ) (4,164 ) Total $ 743,179 $ 740,749 $ 745,357 Operating profit (loss) HBB $ 39,569 $ 41,487 $ 43,033 KC (7,316 ) (3,418 ) 376 Eliminations 66 66 (35 ) Total $ 32,319 $ 38,135 $ 43,374 2018 2017 2016 Total assets HBB $ 294,278 $ 281,004 KC 34,202 43,361 Not allocated 1,947 1,868 Total $ 330,427 $ 326,233 Depreciation and amortization HBB $ 4,277 $ 4,072 $ 4,681 KC 1,032 1,539 1,545 Total $ 5,309 $ 5,611 $ 6,226 Capital expenditures HBB $ 7,759 $ 6,198 $ 4,814 KC 317 1,176 1,188 Total $ 8,076 $ 7,374 $ 6,002 Data By Geographic Region Revenue and property, plant and equipment related to operations outside the U.S., based on customer and asset location, are as follows: U.S. Other Consolidated 2018 Revenue from unaffiliated customers $ 603,294 $ 139,885 $ 743,179 Property, plant and equipment, net $ 17,132 $ 5,498 $ 22,630 2017 Revenue from unaffiliated customers $ 608,490 $ 132,259 $ 740,749 Property, plant and equipment, net $ 14,078 $ 5,005 $ 19,083 2016 Revenue from unaffiliated customers $ 626,367 $ 118,990 $ 745,357 Property, plant and equipment, net $ 10,861 $ 5,082 $ 15,943 No single country outside of the U.S. comprised 10% or more of the Company's revenue from unaffiliated customers. |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | Quarterly Results of Operations (Unaudited) A summary of the unaudited results of operations for the year ended December 31 is as follows: 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Revenue HBB $ 125,414 $ 135,869 $ 172,464 $ 200,024 KC 22,100 22,762 25,884 42,723 Eliminations (881 ) (690 ) (1,447 ) (1,043 ) 146,633 157,941 196,901 241,704 Gross profit 37,793 40,853 50,351 60,015 Operating profit (loss) HBB 3,993 4,399 13,446 17,731 KC (4,304 ) (3,834 ) (2,407 ) 3,229 Eliminations (26 ) 28 (36 ) 100 (337 ) 593 11,003 21,060 Net income (loss) (418 ) (874 ) 8,044 15,032 Basic earnings (loss) per share $ (0.03 ) $ (0.06 ) $ 0.59 $ 1.10 Diluted earnings (loss) per share $ (0.03 ) $ (0.06 ) $ 0.59 $ 1.09 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Revenue HBB $ 114,154 $ 127,574 $ 153,592 $ 219,751 KC 26,665 25,868 28,644 47,343 Eliminations (537 ) (466 ) (523 ) (1,316 ) 140,282 152,976 181,713 265,778 Gross profit (1) 34,577 38,831 48,127 72,286 Operating profit (loss) HBB 782 5,164 9,001 26,540 KC (3,279 ) (3,008 ) (1,581 ) 4,450 Eliminations 59 8 10 (11 ) (2,438 ) 2,164 7,430 30,979 Net income (loss) (1,358 ) 1,239 4,259 13,765 Basic earnings (loss) per share (2) $ (0.10 ) $ 0.09 $ 0.31 $ 1.01 Diluted earnings (loss) per share (2) $ (0.10 ) $ 0.09 $ 0.31 $ 1.01 (1) The significant increase in gross profit in the fourth quarters of 2018 and 2017 compared with the prior quarters of 2018 and 2017 is primarily due to the seasonal nature of our businesses. (2) As a result of the distribution of one share of Hamilton Beach Brands Holding Company Class A Common and one share of Hamilton Beach Brands Holding Company Class B Common for each share of NACCO Class A or NACCO Class B common stock, the earnings per share amounts for the Company for periods prior to the spin-off have been calculated based upon the number of shares distributed in the spin-off. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions In connection with the spin-off of Hamilton Beach Holding, the Company and NACCO entered into a Transition Services Agreement ("TSA"). In the second half of 2018, the Company amended the TSA agreement extending the terms through February 28, 2019. Under the terms of the TSA, NACCO continues to provide various services to Hamilton Beach Holding on a transitional basis. Hamilton Beach Holding paid $0.5 million and $0.2 million in total fees to NACCO under the TSA during 2018 and 2017, respectively. Prior to the spin-off, NACCO charged management fees to the Company for services provided by NACCO. NACCO management fees are included in selling, general and administrative expenses and were $3.0 million in the first nine months of 2017 and $4.1 million for the year ended December 31, 2016. NACCO management fees were based upon estimated parent company resources devoted to providing centralized services and stewardship activities and were allocated among all NACCO subsidiaries based upon the relative size and complexity of each subsidiary. The Company believes the assumptions and allocation methods underlying the consolidated financial statements are based on a reasonable reflection of the use of services provided to or the benefit received by Hamilton Beach Holding during the periods presented relative to the total costs incurred by NACCO. However, the amounts recorded for these allocations are not necessarily representative of the amount that would have been reflected in the consolidated financial statements had the Company been an entity that operated independently of NACCO. Hyster-Yale Materials Handling, Inc. (“Hyster-Yale”) is a former subsidiary of NACCO that was spun-off to stockholders in 2012. In the ordinary course of business, HBB and KC lease or buy Hyster-Yale lift trucks. The terms may not be comparable to terms that would be obtained in a transaction between unaffiliated parties. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS HAMILTON BEACH BRANDS HOLDING COMPANY YEAR ENDED DECEMBER 31, 2018 , 2017 , AND 2016 Additions Description Balance at Beginning of Period Charged to Costs and Expenses Charged to Other Accounts — Describe Deductions — Describe Balance at End of Period (C) (In thousands) 2018 Reserves deducted from asset accounts: Allowance for doubtful accounts $ 1,177 $ 11 $ — $ 475 (A) $ 713 Deferred tax valuation allowances $ 1,916 $ — $ — $ 616 (D) $ 1,300 2017 Reserves deducted from asset accounts: Allowance for doubtful accounts $ 862 $ 405 $ — $ 90 (A) $ 1,177 Allowance for discounts, adjustments and returns $ 14,650 $ 21,358 $ — $ 21,844 (B) $ 14,164 Deferred tax valuation allowances $ 1,614 $ 302 $ — $ — $ 1,916 2016 Reserves deducted from asset accounts: Allowance for doubtful accounts $ 864 $ 46 $ — $ 48 (A) $ 862 Allowance for discounts, adjustments and returns $ 17,397 $ 21,692 $ 241 $ 24,680 (B) $ 14,650 Deferred tax valuation allowances $ 1,290 $ 324 $ — $ — $ 1,614 (A) Write-offs, net of recoveries. (B) Payments and customer deductions for product returns, discounts and allowances. (C) Balances which are not required to be presented and those which are immaterial have been omitted. (D) Foreign exchange rate adjustments and utilization of foreign entity losses. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates: The preparation of financial statements in conformity with GAAP 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. |
Cash and Cash Equivalents | Cash and Cash Equivalents: Cash and cash equivalents include cash in banks and highly liquid investments with original maturities of three months or less. |
Accounts Receivable | Accounts Receivable: Allowances for doubtful accounts are maintained against accounts receivable for estimated losses resulting from the inability of customers to make required payments. These allowances are based on both recent trends of certain customers estimated to be a greater credit risk as well as general trends of the entire customer pool. Accounts are written off against the allowance when it becomes evident collection will not occur. |
Transfer of Financial Assets | Transfer of Financial Assets: T he Company has entered into an arrangement with a financial institution to sell certain U.S. accounts receivable on a non-recourse basis. The Company utilizes this arrangement as an integral part of financing working capital. Under the terms of the agreement, the Company receives cash proceeds and retains no rights or interest and has no obligations with respect to the sold receivables. These transactions are accounted for as sold receivables which result in a reduction in accounts receivable because the agreement transfers effective control over and risk related to the receivables to the buyer. |
Inventories | Inventories: Inventories are stated at the lower of cost or net realizable value. The first-in, first-out (“FIFO”) method is used to value HBB's inventory and KC inventories are valued using the retail inventory method. Adjustments to the carrying value are recorded for estimated obsolescence or excess inventory equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. At KC, retail mark-downs are incorporated into KC’s retail method of accounting for cost of sales. |
Property, Plant and Equipment | Property, Plant and Equipment: Property, plant and equipment are measured at cost less accumulated depreciation, amortization and accumulated impairment losses. Depreciation and amortization are recorded generally using the straight-line method over the estimated useful lives of the assets. Estimated lives for buildings are up to 40 years, and for machinery, equipment and furniture and fixtures range from three to seven years. Leasehold improvements are depreciated over the shorter of the estimated useful life or the term of the lease. The units-of-production method is used to amortize certain tooling for sourced products. Costs incurred to develop software for internal use are capitalized and amortized over the estimated useful life of the software. Gains or losses from the sale of assets are included in selling, general and administrative expenses. Repairs and maintenance are charged to expense as incurred. Interest is capitalized for qualifying long-term capital asset projects as a part of the historical cost of acquiring the asset. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets: Goodwill represents the excess of the purchase price of all acquisitions over the estimated fair value of the net assets acquired. Goodwill is not amortized but evaluated at least annually for impairment. The Company conducts its annual test for impairment as of October 1 of each year and may be conducted more frequently if changes in circumstances or the occurrence of events indicates that a potential impairment exists. Using a qualitative assessment in the current year, the Company determined that it was not more-likely-than-not that the goodwill was impaired and a quantitative test for impairment was not required. Intangible assets with finite lives are amortized over their estimated useful lives, which represent the period over which the asset is expected to contribute directly or indirectly to future cash flows. Intangible assets with finite lives are reviewed for impairment whenever events and circumstances indicate the carrying value of such assets may not be recoverable and exceed their fair value. If an impairment loss exists, the carrying amount of the intangible asset is adjusted to a new cost basis. The new cost basis is amortized over the remaining useful life of the asset. |
Environmental Liabilities | Environmental Liabilities: HBB and environmental consultants are investigating or remediating historical environmental contamination at some current and former sites operated by HBB or by businesses it acquired. Liabilities for environmental matters are recorded in the period when it is determined to be probable and reasonably estimable that the Company will incur costs. When only a range of amounts is reasonably estimable and no amount within the range is more probable than another, the Company records the low end of the range. Environmental liabilities are recorded on an undiscounted basis and recorded in selling, general, and administrative expenses. As a portion of environmental remediation liabilities are expected to be recoverable through state agencies, such amounts are recognized as a reduction to selling, general, and administrative expenses and included in prepaid expenses and other current assets (current portion) and other non-current assets until settled. |
Revenue Recognition | Revenue Recognition: Revenue is recognized when control of the promised goods or services is transferred to the Company's customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Sales taxes are excluded from revenue. At contract inception, the Company assesses the goods and services promised in its contracts with customers and identifies a performance obligation for each promised good or service that is distinct. The Company has elected to account for shipping and handling activities performed after a customer obtains control of the goods as activities to fulfill the promise to transfer the goods, and therefore these activities are not assessed as a separate service to customers. The amount of consideration received and revenue recognized varies with changes in returns and consideration paid to customers for incentives and advertising arrangements. To estimate variable consideration, the Company applies 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. |
Product Development Costs | Product Development Costs: Expenses associated with the development of new products and changes to existing products are charged to expense as incurred. |
Foreign Currency | Foreign Currency: Assets and liabilities of foreign operations are translated into U.S. dollars at the fiscal year-end exchange rate. Revenue and expenses of all foreign operations are translated using average monthly exchange rates prevailing during the year. The related translation adjustments, including translation on long-term intra-entity foreign currency transactions, are recorded as a separate component of stockholders’ equity. |
Financial Instruments | Financial Instruments: Financial instruments held by the Company include cash and cash equivalents, accounts receivable, accounts payable, revolving credit agreements, interest rate swap agreements and forward foreign currency exchange contracts. The Company does not hold or issue financial instruments or derivative financial instruments for trading purposes. Interest rate swap agreements and forward foreign currency exchange contracts held by the Company have been designated as hedges of forecasted cash flows. The Company holds these derivative contracts with high-quality financial institutions and limits the amount of credit exposure to any one institution. The Company does not currently hold any nonderivative instruments designated as hedges or any derivatives designated as fair value hedges. The Company uses forward foreign currency exchange contracts to partially reduce risks related to transactions denominated in foreign currencies. The Company offsets fair value amounts related to foreign currency exchange contracts executed with the same counterparty. These contracts hedge firm commitments and forecasted transactions relating to cash flows associated with sales and purchases denominated in currencies other than the subsidiaries’ functional currencies. Changes in the fair value of forward foreign currency exchange contracts that are effective as hedges are recorded in accumulated other comprehensive income (loss) (“AOCI”). Deferred gains or losses are reclassified from AOCI to the Consolidated Statements of Operations in the same period as the gains or losses from the underlying transactions are recorded and are generally recognized in cost of sales. The ineffective portion of derivatives that are classified as hedges is immediately recognized in earnings and generally recognized in cost of sales. The Company uses interest rate swap agreements to partially reduce risks related to floating rate financing agreements that are subject to changes in the market rate of interest. Terms of the interest rate swap agreements require the Company to receive a variable interest rate and pay a fixed interest rate. The Company’s interest rate swap agreements and its variable rate financings are predominately based upon LIBOR (London Interbank Offered Rate). Changes in the fair value of interest rate swap agreements that are effective as hedges are recorded in AOCI. Deferred gains or losses are reclassified from AOCI to the Consolidated Statements of Operations in the same period as the gains or losses from the underlying transactions are recorded and are generally recognized in interest expense, net. The ineffective portion of derivatives that are classified as hedges is immediately recognized in earnings and included in interest expense, net. The Company periodically enters into foreign currency exchange contracts that do not meet the criteria for hedge accounting. These derivatives are used to reduce the Company’s exposure to foreign currency risk related to forecasted purchase or sales transactions or forecasted intercompany cash payments or settlements. Gains and losses on these derivatives are included in other expense, net. Cash flows from hedging activities are reported in the Consolidated Statements of Cash Flows in the same classification as the hedged item, generally as a component of cash flows from operations. |
Fair Value Measurements | Fair Value Measurements: The Company defines the fair value measurement of its financial assets and liabilities as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. Described below are the three levels of inputs that may be used to measure fair value: Level 1 - Quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities. Level 2 - Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. Level 3 - Unobservable inputs are used when little or no market data is available. The hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The classification of fair value measurements within the hierarchy is based upon the lowest level of input that is significant to the measurement. |
Share-based Compensation | Share-based Compensation : Pursuant to the Executive Long-Term Equity Incentive Plan (the "Executive Plan") established in September 2017, the Company grants shares of Hamilton Beach Brands Holding Company Class A Common, subject to transfer restrictions, as a means of retaining and rewarding selected employees for long-term performance. Shares awarded under the Executive Plan are fully vested and entitle the stockholder to all rights of common stock ownership except that shares may not be assigned, pledged or otherwise transferred during the restriction period. In general, the restriction period ends after three , five or ten years from the award date or at the earliest of (i) three years after the participant's retirement date, or (ii) the participant's death or permanent disability. The Company issued 5,512 shares in the year ended December 31, 2018. No shares were issued in the year ended December 31, 2017 under the Executive Plan. Share-based compensation expense related to the Executive Plan was $2.7 million and $0.2 million for the years ended December 31, 2018 and 2017, respectively, and was based on the fair value of Hamilton Beach Brands Holding Company Class A Common on the grant date. |
Income Taxes | Income Taxes: Tax law requires certain items to be included in the tax return at different times than the items are reflected in the financial statements. Some of these differences are permanent, such as expenses that are not deductible for tax purposes, and some differences are temporary, reversing over time, such as depreciation expense. These temporary differences create deferred tax assets and liabilities using currently enacted tax rates. The objective of accounting for income taxes is to recognize the amount of taxes payable or refundable for the current year, and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in the financial statements or tax returns. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the provision for income taxes in the period that includes the enactment date. Management is required to estimate the timing of the recognition of deferred tax assets and liabilities, make assumptions about the future deductibility of deferred tax assets and assess deferred tax liabilities based on enacted law and tax rates for the appropriate tax jurisdictions to determine the amount of such deferred tax assets and liabilities. Changes in the calculated deferred tax assets and liabilities may occur in certain circumstances, including statutory income tax rate changes, statutory tax law changes, or changes in the Company's structure or tax status. The Company's tax assets, liabilities, and tax expense are supported by historical earnings and losses and the Company's best estimates and assumptions of future earnings. The Company assesses whether a valuation allowance should be established against the Company's deferred tax assets based on consideration of all available evidence, both positive and negative, using a more likely than not standard. This assessment considers, among other matters, scheduled reversals of deferred tax liabilities, projected future taxable income, tax-planning strategies, and results of recent operations. The assumptions about future taxable income require significant judgment and are consistent with the plans and estimates the Company is using to manage the underlying businesses. When the Company determines, based on all available evidence, that it is more likely than not that deferred tax assets will not be realized, a valuation allowance is established. |
Accounting Standards Adopted | Accounting Standards Adopted In May 2014, the FASB codified in ASC 606, "Revenue Recognition - Revenue from Contracts with Customers" ("ASC 606"), which supersedes ASC 605, "Revenue Recognition" ("ASC 605"), including industry-specific guidance, and requires an entity to recognize revenue in an amount that reflects the consideration to which the entity expects to be entitled in exchange for transferring goods or services to customers and provide additional disclosures. The Company has adopted the guidance for all contracts at the date of initial application of January 1, 2018. The amount and timing of revenue recognition is not materially impacted by the new standard, thus no cumulative adjustment was recognized upon adoption. The classification of accrued product returns, which is now reported as a liability on the consolidated balance sheet, was previously classified as an allowance against accounts receivable. In February 2018, the FASB issued ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220)". The guidance in ASU 2018-02 allows an entity to elect to reclassify the stranded tax effects related to the Tax Cuts and Jobs Act (the "Tax Act") of 2017 from accumulated other comprehensive income ("AOCI") into retained earnings. The Company elected to early adopt ASU 2018-02 as of January 1, 2018. As a result of adopting this standard, the Company reclassified $1.2 million from AOCI to retained earnings. Accounting Standards Not Yet Adopted: The Company is an emerging growth company and has elected not to opt out of the extended transition period for complying with new or revised accounting standards, which means that when a standard is issued or revised and it has different application dates for public or nonpublic entities, the Company can adopt the new or revised standard at the time nonpublic entities adopt the new or revised standard. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)," which requires an entity to recognize assets and liabilities for the rights and obligations created by leased assets. For nonpublic entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company is planning to adopt ASU 2016-02 for its year ending December 31, 2020 and is currently evaluating to what extent ASU 2016-02 will affect the Company's financial position, results of operations, cash flows and related disclosures. In March 2017, the FASB issued ASU 2017-07, "Compensation - Retirement Benefits (Topic 715)," which amends the requirements in U.S. GAAP related to the income statement presentation of the components of net periodic benefit cost for an entity's sponsored defined benefit pension and other post-retirement plans. For nonpublic entities, the amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company is planning to adopt ASU 2017-07 in the first quarter of 2019 and does not expect application of this ASU to have a material impact on the Company's financial position, results of operations, cash flows and related disclosures. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories are summarized as follows: December 31 2018 2017 Sourced inventories - HBB $ 122,697 $ 111,493 Retail inventories - KC 21,994 23,251 Total inventories $ 144,691 $ 134,744 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents the Company's revenue on a disaggregated basis for the year ending: December 31, 2018 HBB KC Consolidated (1) Type of good or service: Products $ 630,112 $ 113,469 $ 739,520 Licensing 3,659 — 3,659 Total revenues $ 633,771 $ 113,469 $ 743,179 (1) Includes the required intercompany eliminations between HBB and KC. |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment, net includes the following: December 31 2018 2017 Land $ 226 $ 226 Furniture and fixtures 27,682 28,676 Building and improvements 15,856 14,109 Machinery and equipment 33,303 33,411 Construction in progress, including internal use capitalized software 10,684 8,388 Property, plant and equipment, at cost 87,751 84,810 Less allowances for depreciation and amortization 65,121 65,727 $ 22,630 $ 19,083 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Intangible assets other than goodwill, which are subject to amortization, consist of the following: Gross Carrying Accumulated Net Balance at December 31, 2018 HBB: Customer relationships $ 5,760 $ (3,880 ) $ 1,880 Trademarks 3,100 (808 ) 2,292 Other intangibles 1,240 (893 ) 347 $ 10,100 $ (5,581 ) $ 4,519 Balance at December 31, 2017 HBB: Customer relationships $ 5,760 $ (2,920 ) $ 2,840 Trademarks 3,100 (608 ) 2,492 Other intangibles 1,240 (672 ) 568 $ 10,100 $ (4,200 ) $ 5,900 |
Current and Long-Term Financi_2
Current and Long-Term Financing (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table summarizes the Company's available and outstanding borrowings: December 31 2018 2017 Total outstanding borrowings: Revolving credit agreements — HBB $ 45,733 $ 51,346 Book overdrafts — HBB 891 — Total debt outstanding $ 46,624 $ 51,346 Current portion of borrowings outstanding - HBB $ 11,624 $ 31,346 Long-term portion of borrowings outstanding - HBB 35,000 20,000 $ 46,624 $ 51,346 Total available borrowings, net of limitations, under revolving credit agreements: HBB $ 114,669 $ 111,078 KC 13,595 13,589 $ 128,264 $ 124,667 Unused revolving credit agreements: HBB $ 68,936 $ 59,732 KC 13,595 13,589 $ 82,531 $ 73,321 Weighted average stated interest rate on total borrowings - HBB 4.12 % 3.82 % Weighted average effective interest rate on total borrowings (including interest rate swap - HBB agreements) 3.45 % 3.83 % |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Derivatives | The following table summarizes the notional amounts, related rates and remaining terms of active and delayed interest rate swap agreements at December 31 in millions: Notional Amount Average Fixed Rate Remaining Term at 2018 2017 2018 2017 December 31, 2018 HBB - Interest rate swaps $ 20.0 $ 20.0 1.4 % 1.4 % Extending to January 2020 HBB - Interest rate swaps $ 15.0 $ 15.0 1.6 % 1.6 % Extending to January 2024 HBB - Delayed start interest rate swaps $ 10.0 $ 10.0 1.7 % 1.7 % Extending to January 2024 |
Schedule of the Fair Value of Derivative Instruments Recorded in the Consolidated Balance Sheets | The following table summarizes the fair value of derivative instruments at December 31 as recorded in the Consolidated Balance Sheets: Asset Derivatives Liability Derivatives Balance sheet location 2018 2017 Balance sheet location 2018 2017 Derivatives designated as hedging instruments Interest rate swap agreements Current Prepaid expenses and other current assets $ 349 $ 109 Other current liabilities $ — $ — Long-term Other non-current assets 710 785 Other long-term liabilities — — Foreign currency exchange contracts Current Prepaid expenses and other current assets 231 245 Other current liabilities 87 93 Total derivatives $ 1,290 $ 1,139 $ 87 $ 93 |
Leasing Arrangements (Tables)
Leasing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Future Minimum Operating Lease Payments | Future minimum operating lease payments at December 31, 2018 are: Operating Leases 2019 $ 20,705 2020 14,092 2021 8,863 2022 5,376 2023 3,660 Subsequent to 2023 21,911 Total minimum lease payments $ 74,607 |
Stockholders' Equity and Earn_2
Stockholders' Equity and Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Reclassification out of Accumulated Other Comprehensive Income | The following table summarizes the amounts reclassified out of AOCI and recognized in the Consolidated Statements of Operations: Amount reclassified from AOCI Details about AOCI components 2018 2017 2016 Location of loss (gain) reclassified from AOCI into income Loss (gain) on cash flow hedging Foreign exchange contracts $ 32 $ 853 $ (11 ) Cost of sales Interest rate contracts 181 63 183 Interest expense, net 213 916 172 Total before income tax benefit Tax effect (60 ) (275 ) (67 ) Income tax benefit $ 153 $ 641 $ 105 Net of tax Pension plan Actuarial loss $ 823 $ 511 $ 508 (a) Tax effect (173 ) (205 ) (195 ) Income tax benefit $ 650 $ 306 $ 313 Net of tax Total reclassifications for the period $ 803 $ 947 $ 418 Net of tax (a) These AOCI components are included in the computation of pension expense. See Note 14 for a discussion of the Company's pension expense. |
Schedule of Earnings Per Share | The weighted average number of shares of Class A Common and Class B Common outstanding used to calculate basic and diluted earnings per share were as follows: 2018 2017 2016 Basic weighted average shares outstanding (1) 13,699 13,673 13,673 Dilutive effect of share-based compensation awards 32 12 — Diluted weighted average shares outstanding (1) 13,731 13,685 13,673 Basic and diluted earnings per share (1) $ 1.59 $ 1.31 $ 1.91 (1) On September 29, 2017, NACCO, Hamilton Beach Holding's former parent company, spun-off the Company to NACCO stockholders. The basic and diluted earnings per share amounts for the Company have been calculated based upon the number of shares distributed in the spin-off for all periods prior to the spin-off. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense (Benefit) | The components of income before income taxes and the income tax provision for the years ended December 31 are as follows: 2018 2017 2016 Income before income taxes Domestic $ 23,737 $ 31,328 $ 39,136 Foreign 4,292 4,749 2,027 $ 28,029 $ 36,077 $ 41,163 Income tax provision Current income tax provision: Federal $ (634 ) $ 11,484 $ 12,140 State 539 1,381 501 Foreign 1,393 1,365 556 Total current 1,298 14,230 13,197 Deferred income tax provision (benefit): Federal 4,911 4,122 1,458 State (40 ) (437 ) 239 Foreign 76 257 90 Total deferred 4,947 3,942 1,787 $ 6,245 $ 18,172 $ 14,984 |
Effective Income Tax Rate Reconciliation | A reconciliation of the federal statutory and effective income tax rate for the years ended December 31 is as follows: 2018 2017 2016 Income before income taxes $ 28,029 $ 36,077 $ 41,163 Statutory taxes at 21.0% (35.0% in 2017 and prior) $ 5,886 $ 12,627 $ 14,407 State and local income taxes 330 901 1,019 Other non-deductible expenses 597 411 414 Credits (398 ) (445 ) (211 ) Valuation allowances 231 369 170 Provisional effect of the Tax Act — 4,654 — Non-deductible spin-related costs — 540 — Other, net (401 ) (885 ) (815 ) Income tax provision $ 6,245 $ 18,172 $ 14,984 Effective income tax rate 22.3 % 50.4 % 36.4 % |
Deferred Tax Assets and Liabilities | A detailed summary of the total deferred tax assets and liabilities in the Company's Consolidated Balance Sheets resulting from differences in the book and tax basis of assets and liabilities follows: December 31 2018 2017 Deferred tax assets Tax carryforwards $ 2,293 $ 5,034 Inventories 147 207 Depreciation and amortization — 716 Accrued expenses and reserves 5,962 6,929 Other employee benefits 2,747 3,238 Other 1,178 696 Total deferred tax assets 12,327 16,820 Less: Valuation allowance 1,300 1,916 11,027 14,904 Deferred tax liabilities Accrued pension benefits 1,854 2,079 Depreciation and amortization 1,010 — Total deferred tax liabilities 2,864 2,079 Net deferred tax asset $ 8,163 $ 12,825 |
Summary of Tax Credit Carryforwards | The following table summarizes the tax carryforwards and associated carryforward periods and related valuation allowances where the Company has determined that realization is uncertain: December 31, 2018 Net deferred tax asset Valuation allowance Carryforwards expire during: Non-U.S. net operating loss 990 990 2019 - Indefinite State losses 1,303 — 2020 - 2036 Total $ 2,293 $ 990 December 31, 2017 Net deferred tax asset Valuation allowance Carryforwards expire during: Alternative minimum tax credit $ 2,429 $ — (1) Non-U.S. net operating loss 1,658 1,658 2018 - Indefinite State losses 1,198 — 2020 - 2035 Total $ 5,285 $ 1,658 (1) The Tax Act repealed the corporate alternative minimum tax for tax years beginning after December 31, 2017. These credits are fully utilized in 2018 based on estimated income taxes. |
Unrecognized Tax Benefits Roll Forward | The following is a reconciliation of the Company's total gross unrecognized tax benefits, defined as the aggregate tax effect of differences between tax return positions and the benefits recognized in the financial statements for the years ended December 31, 2018, 2017, and 2016. Approximately $0.3 million , $0.6 million , and $0.4 million of these gross amounts as of December 31, 2018, 2017, and 2016, respectively, relate to permanent items that, if recognized, would impact the effective income tax rate. This amount differs from the gross unrecognized tax benefits presented in the table below due to the decrease in U.S. federal income taxes which would occur upon the recognition of the state tax benefits included herein. 2018 2017 2016 Balance at January 1 $ 881 $ 671 $ 1,199 Additions based on tax positions related to prior years 90 — 167 Additions based on tax positions related to the current year — 210 165 Reductions due to settlements with taxing authorities (506 ) — (860 ) Balance at December 31 $ 465 $ 881 $ 671 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Assumptions used in accounting for the defined benefit plan | The assumptions used in accounting for the defined benefit plans were as follows for the years ended December 31 : 2018 2017 2016 U.S. Plan Discount rate for pension benefit obligation 4.00 % 3.30 % 3.60 % Discount rate for net periodic benefit cost 3.30 % 3.60 % 3.70 % Expected long-term rate of return on assets for net periodic benefit income 7.50 % 7.50 % 7.50 % Non-U.S. Plan Discount rate for pension benefit obligation 3.50 % 3.25 % 3.75 % Discount rate for net periodic benefit cost 3.50 % 3.75 % 4.00 % Expected long-term rate of return on assets for net periodic benefit (income) expense 5.50 % 5.50 % 5.50 % |
Net periodic benefit income and expense for the defined benefit plan | Set forth below is a detail of the net periodic pension income for the defined benefit plans for the years ended December 31 : 2018 2017 2016 U.S. Plan Interest cost $ 681 $ 811 $ 875 Expected return on plan assets (2,047 ) (2,074 ) (2,071 ) Amortization of actuarial loss 623 501 495 Net periodic pension income $ (743 ) $ (762 ) $ (701 ) Non-U.S. Plan Interest cost $ 142 $ 153 $ 144 Expected return on plan assets (286 ) (264 ) (248 ) Amortization of actuarial loss 200 10 13 Net periodic pension loss (income) $ 56 $ (101 ) $ (91 ) |
Changes in plan assets and benefit obligations recognized in comprehensive income (loss) | Set forth below is the detail of other changes in plan assets and benefit obligations recognized in other comprehensive loss (income) for the years ended December 31 : 2018 2017 2016 U.S. Plan Current year actuarial loss (gain) $ 2,347 $ (2,506 ) $ 243 Amortization of actuarial loss (623 ) (501 ) (495 ) Total recognized in other comprehensive loss (income) $ 1,724 $ (3,007 ) $ (252 ) Non-U.S. Plan Current year actuarial loss $ 236 $ 60 $ 318 Amortization of actuarial loss (200 ) (10 ) (13 ) Total recognized in other comprehensive loss $ 36 $ 50 $ 305 |
Changes in benefit obligations during the year and funded status of defined benefit plan | The following table sets forth the changes in the benefit obligation and the plan assets during the year and the funded status of the defined benefit plans at December 31 : 2018 2017 U.S. Plan Non-U.S. Plan U.S. Plan Non-U.S. Plan Change in benefit obligation Projected benefit obligation at beginning of year $ 21,716 $ 4,604 $ 23,651 $ 4,021 Interest cost 681 142 811 153 Actuarial (gain) loss (1,278 ) (148 ) (521 ) 291 Benefits paid (1,988 ) (151 ) (2,225 ) (153 ) Foreign currency exchange rate changes — (363 ) — 292 Projected benefit obligation at end of year $ 19,131 $ 4,084 $ 21,716 $ 4,604 Accumulated benefit obligation at end of year $ 19,131 $ 4,084 $ 21,716 $ 4,604 Change in plan assets Fair value of plan assets at beginning of year $ 29,237 $ 5,456 $ 27,402 $ 4,712 Actual return on plan assets (1,578 ) (111 ) 4,060 497 Employer contributions — — — 55 Benefits paid (1,988 ) (151 ) (2,225 ) (153 ) Foreign currency exchange rate changes — (450 ) — 345 Fair value of plan assets at end of year $ 25,671 $ 4,744 $ 29,237 $ 5,456 Funded status at end of year $ 6,540 $ 660 $ 7,521 $ 852 Amounts recognized in the balance sheets consist of: Non-current assets $ 6,540 $ 660 $ 7,521 $ 852 Components of accumulated other comprehensive loss consist of: Actuarial loss $ (11,427 ) $ (1,225 ) $ (9,703 ) $ (1,033 ) Deferred taxes and other 2,933 485 3,687 371 $ (8,494 ) $ (740 ) $ (6,016 ) $ (662 ) |
Future benefit payments | Future pension benefit payments expected to be paid from assets of the pension plans are: U.S. Plan Non-U.S. Plan 2019 $ 1,929 $ 174 2020 2,131 184 2021 1,847 196 2022 1,771 234 2023 1,721 231 2024 - 2028 6,772 1,210 $ 16,171 $ 2,229 |
Actual allocation percentage and target allocation percentage for pension plan assets | The following is the actual allocation percentage and target allocation percentage for the U.S. pension plan assets at December 31: 2018 2017 Target Allocation Range U.S. equity securities 43.8 % 45.8 % 36.0% - 54.0% Non-U.S. equity securities 19.3 % 20.5 % 16.0% - 24.0% Fixed income securities 36.4 % 32.9 % 30.0% - 40.0% Money market 0.5 % 0.8 % 0.0% - 10.0% The following is the actual allocation percentage and target allocation percentage for the Non-U.S. pension plan assets at December 31: 2018 2017 Target Allocation Range Canadian equity securities 29.5 % 33.6 % 25.0% - 35.0% Non-Canadian equity securities 29.9 % 34.3 % 25.0% - 35.0% Fixed income securities 40.6 % 32.1 % 30.0% - 50.0% Cash and cash equivalents — % — % 0.0% - 5.0% |
Fair value of pension plan assets | Following are the values as of December 31 : U.S. Plan Non-U.S. Plan 2018 2017 2018 2017 U.S. equity securities $ 11,251 $ 13,402 $ 735 $ 952 Non-U.S. equity securities 4,930 5,993 2,081 2,750 Fixed income securities 9,350 9,622 1,928 1,754 Money market 140 220 — — Total $ 25,671 $ 29,237 $ 4,744 $ 5,456 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting Information | 2018 2017 2016 Revenue HBB $ 633,771 $ 615,071 $ 605,170 KC 113,469 128,520 144,351 Eliminations (4,061 ) (2,842 ) (4,164 ) Total $ 743,179 $ 740,749 $ 745,357 Operating profit (loss) HBB $ 39,569 $ 41,487 $ 43,033 KC (7,316 ) (3,418 ) 376 Eliminations 66 66 (35 ) Total $ 32,319 $ 38,135 $ 43,374 2018 2017 2016 Total assets HBB $ 294,278 $ 281,004 KC 34,202 43,361 Not allocated 1,947 1,868 Total $ 330,427 $ 326,233 Depreciation and amortization HBB $ 4,277 $ 4,072 $ 4,681 KC 1,032 1,539 1,545 Total $ 5,309 $ 5,611 $ 6,226 Capital expenditures HBB $ 7,759 $ 6,198 $ 4,814 KC 317 1,176 1,188 Total $ 8,076 $ 7,374 $ 6,002 |
Revenue From External Customers and Long-Lived Assets, by Geographical Areas | U.S. Other Consolidated 2018 Revenue from unaffiliated customers $ 603,294 $ 139,885 $ 743,179 Property, plant and equipment, net $ 17,132 $ 5,498 $ 22,630 2017 Revenue from unaffiliated customers $ 608,490 $ 132,259 $ 740,749 Property, plant and equipment, net $ 14,078 $ 5,005 $ 19,083 2016 Revenue from unaffiliated customers $ 626,367 $ 118,990 $ 745,357 Property, plant and equipment, net $ 10,861 $ 5,082 $ 15,943 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | A summary of the unaudited results of operations for the year ended December 31 is as follows: 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Revenue HBB $ 125,414 $ 135,869 $ 172,464 $ 200,024 KC 22,100 22,762 25,884 42,723 Eliminations (881 ) (690 ) (1,447 ) (1,043 ) 146,633 157,941 196,901 241,704 Gross profit 37,793 40,853 50,351 60,015 Operating profit (loss) HBB 3,993 4,399 13,446 17,731 KC (4,304 ) (3,834 ) (2,407 ) 3,229 Eliminations (26 ) 28 (36 ) 100 (337 ) 593 11,003 21,060 Net income (loss) (418 ) (874 ) 8,044 15,032 Basic earnings (loss) per share $ (0.03 ) $ (0.06 ) $ 0.59 $ 1.10 Diluted earnings (loss) per share $ (0.03 ) $ (0.06 ) $ 0.59 $ 1.09 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Revenue HBB $ 114,154 $ 127,574 $ 153,592 $ 219,751 KC 26,665 25,868 28,644 47,343 Eliminations (537 ) (466 ) (523 ) (1,316 ) 140,282 152,976 181,713 265,778 Gross profit (1) 34,577 38,831 48,127 72,286 Operating profit (loss) HBB 782 5,164 9,001 26,540 KC (3,279 ) (3,008 ) (1,581 ) 4,450 Eliminations 59 8 10 (11 ) (2,438 ) 2,164 7,430 30,979 Net income (loss) (1,358 ) 1,239 4,259 13,765 Basic earnings (loss) per share (2) $ (0.10 ) $ 0.09 $ 0.31 $ 1.01 Diluted earnings (loss) per share (2) $ (0.10 ) $ 0.09 $ 0.31 $ 1.01 (1) The significant increase in gross profit in the fourth quarters of 2018 and 2017 compared with the prior quarters of 2018 and 2017 is primarily due to the seasonal nature of our businesses. (2) As a result of the distribution of one share of Hamilton Beach Brands Holding Company Class A Common and one share of Hamilton Beach Brands Holding Company Class B Common for each share of NACCO Class A or NACCO Class B common stock, the earnings per share amounts for the Company for periods prior to the spin-off have been calculated based upon the number of shares distributed in the spin-off. |
Principles of Consolidation a_2
Principles of Consolidation and Nature of Operations (Details) | Sep. 29, 2017shares |
Class A Common Stock | |
Class of Stock [Line Items] | |
Common stock issued during period (in shares) | 1 |
Class B Common Stock | |
Class of Stock [Line Items] | |
Common stock issued during period (in shares) | 1 |
Significant Accounting Polici_3
Significant Accounting Policies Significant Accounting Policies (Accounts Receivable) (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidated net accounts receivable | Customer Concentration Risk | Five largest customers | HBB | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk (percent) | 51.00% | 62.00% |
Significant Accounting Polici_4
Significant Accounting Policies Significant Accounting Policies (Transfer of Financial Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | |||
Accounts receivable derecognized | $ 165.4 | $ 164 | $ 149.3 |
Significant Accounting Polici_5
Significant Accounting Policies Significant Accounting Policies (Property, Plant and Equipment, Net) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Useful life | 40 years |
Machinery | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Machinery | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 7 years |
Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 7 years |
Furniture and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 7 years |
Significant Accounting Polici_6
Significant Accounting Policies (Product Development Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Product development costs | $ 11 | $ 10.4 | $ 9.7 |
Significant Accounting Polici_7
Significant Accounting Policies Significant Accounting Policies (Share-based Compensation) (Details) - Executive Plan - Performance Shares - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restriction period from retirement date, particpant's death or permanent disability | 3 years | ||
Number of shares issued during the period | 5,512 | 0 | |
Share-based compensation expense | $ 2.7 | $ 0.2 | |
Restriction Period One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restriction period from award date | 3 years | ||
Restriction Period Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restriction period from award date | 5 years | ||
Restriction Period Three | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restriction period from award date | 10 years |
Significant Accounting Polici_8
Significant Accounting Policies Significant Accounting Policies (Accounting Standards Adopted) (Details) $ in Millions | Jan. 01, 2018USD ($) |
Accounting Policies [Abstract] | |
Reclassified from AOCI to retained earnings | $ 1.2 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Sourced inventories - HBB | $ 122,697 | $ 111,493 |
Retail inventories - KC | 21,994 | 23,251 |
Total inventories | $ 144,691 | $ 134,744 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 743,179 | $ 740,749 | $ 745,357 |
Products | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 739,520 | ||
Licensing | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 3,659 | ||
HBB | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 633,771 | ||
HBB | Products | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 630,112 | ||
HBB | Licensing | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 3,659 | ||
KC | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 113,469 | ||
KC | Products | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 113,469 | ||
KC | Licensing | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 0 | ||
Revenue | Customer Concentration Risk | Wal-Mart, Inc. | HBB | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk (percent) | 33.00% | 32.00% | 32.00% |
Revenue | Customer Concentration Risk | Amazon.com, Inc. | HBB | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk (percent) | 11.00% | 12.00% | 10.00% |
Revenue | Customer Concentration Risk | Five largest customers | HBB | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk (percent) | 54.00% | 55.00% | 54.00% |
Maximum | Electric Appliances | |||
Disaggregation of Revenue [Line Items] | |||
Warranty term | 10 years | ||
Maximum | Majority of Other Products | |||
Disaggregation of Revenue [Line Items] | |||
Warranty term | 3 years | ||
Minimum | Majority of Other Products | |||
Disaggregation of Revenue [Line Items] | |||
Warranty term | 1 year |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | $ 87,751 | $ 84,810 | |
Less allowances for depreciation and amortization | 65,121 | 65,727 | |
Property, plant and equipment, net | 22,630 | 19,083 | $ 15,943 |
Depreciation and amortization expense | 3,900 | 4,200 | $ 4,800 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | 226 | 226 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | 27,682 | 28,676 | |
Building and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | 15,856 | 14,109 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | 33,303 | 33,411 | |
Construction in progress, including internal use capitalized software | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | $ 10,684 | $ 8,388 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets, Net [Abstract] | |||
Net Balance | $ 4,519 | $ 5,900 | |
Amortization of intangible assets | 1,381 | 1,381 | $ 1,381 |
HBB | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Gross Carrying Amount | 10,100 | 10,100 | |
Accumulated Amortization | (5,581) | (4,200) | |
Net Balance | 4,519 | 5,900 | |
Expected annual amortization expense, 2019 | 1,400 | ||
Expected annual amortization expense, 2020 | 1,200 | ||
Expected annual amortization expense, 2021 | 200 | ||
Expected annual amortization expense, 2022 | 200 | ||
Expected annual amortization expense, 2023 | $ 200 | ||
Intangible assets, weighted average amortization period | 8 years 10 months 24 days | ||
HBB | Customer relationships | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Gross Carrying Amount | $ 5,760 | 5,760 | |
Accumulated Amortization | (3,880) | (2,920) | |
Net Balance | 1,880 | 2,840 | |
HBB | Trademarks | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Gross Carrying Amount | 3,100 | 3,100 | |
Accumulated Amortization | (808) | (608) | |
Net Balance | 2,292 | 2,492 | |
HBB | Other intangibles | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Gross Carrying Amount | 1,240 | 1,240 | |
Accumulated Amortization | (893) | (672) | |
Net Balance | $ 347 | $ 568 |
Current and Long-Term Financi_3
Current and Long-Term Financing (Debt Schedule) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Total debt outstanding | $ 46,624 | $ 51,346 |
Long-term portion of borrowings outstanding | 35,000 | 20,000 |
Total available borrowings, net of limitations, under revolving credit agreements | 128,264 | 124,667 |
Unused revolving credit agreements | 82,531 | 73,321 |
HBB | ||
Debt Instrument [Line Items] | ||
Total outstanding borrowings | 45,733 | 51,346 |
Other debt | 891 | 0 |
Current portion of borrowings outstanding | 11,624 | 31,346 |
Long-term portion of borrowings outstanding | 35,000 | 20,000 |
Current portion and long-term portion of borrowings outstanding | 46,624 | 51,346 |
Total available borrowings, net of limitations, under revolving credit agreements | 114,669 | 111,078 |
Unused revolving credit agreements | $ 68,936 | $ 59,732 |
Weighted average stated interest rate on total borrowings | 4.12% | 3.82% |
Weighted average effective interest rate on total borrowings (including interest rate swap agreements) | 3.45% | 3.83% |
KC | ||
Debt Instrument [Line Items] | ||
Total available borrowings, net of limitations, under revolving credit agreements | $ 13,595 | $ 13,589 |
Unused revolving credit agreements | $ 13,595 | $ 13,589 |
Current and Long-Term Financi_4
Current and Long-Term Financing (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Line of Credit Facility [Line Items] | |||
Interest paid | $ 3,100,000 | $ 1,600,000 | $ 1,400,000 |
Interest capitalized | 300,000 | 200,000 | 100,000 |
Assets held as collateral | 330,427,000 | 326,233,000 | |
HBB | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 115,000,000 | ||
Line of credit facility, unused capacity, commitment fee percentage | 0.25% | ||
Dividend restriction from closing date | $ 5,000,000 | ||
Dividend restriction period following closing date of credit facility | 30 days | ||
Dividend restriction credit facility excess availability requirement | $ 15,000,000 | ||
Dividend restriction credit facility excess availability requirement as defined within the agreement | $ 25,000,000 | ||
HBB | Base Rate | US Dollar | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 0.00% | ||
HBB | Base Rate | Canadian Dollar | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 0.00% | ||
HBB | LIBOR Rate | US Dollar | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.75% | ||
HBB | LIBOR Rate | Canadian Dollar | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.75% | ||
KC | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 20,000,000 | ||
Line of credit facility, unused capacity, commitment fee percentage | 0.25% | ||
Dividend restriction from closing date | $ 2,000,000 | ||
Dividend restriction period following closing date of credit facility | 12 months | ||
Dividend restriction credit facility excess availability requirement | $ 5,000,000 | ||
Dividend restriction credit facility excess availability requirement as defined within the agreement | 10,000,000 | ||
Dividend restriction from closing date including minimum fixed charge coverage ratio | $ 6,000,000 | ||
Debt instrument, minimum fixed charge coverage ratio | 1.1 | ||
KC | Base Rate | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 0.75% | ||
KC | LIBOR Rate | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.75% | ||
Operating Segments | HBB | |||
Line of Credit Facility [Line Items] | |||
Assets held as collateral | $ 294,278,000 | 281,004,000 | |
Operating Segments | KC | |||
Line of Credit Facility [Line Items] | |||
Assets held as collateral | $ 34,202,000 | $ 43,361,000 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Narrative) (Details) $ in Millions | Dec. 31, 2018CAD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017CAD ($) | Dec. 31, 2017USD ($) |
Foreign currency exchange contracts | ||||
Derivative [Line Items] | ||||
Notional amount of foreign currency derivatives (in CAD) | $ 13 | $ 11.7 | ||
Net receivable approximated by fair value of contracts | $ 100,000 | $ 200,000 | ||
Interest rate swap agreements | HBB | ||||
Derivative [Line Items] | ||||
Notional amount of foreign currency derivatives (in CAD) | 20,000,000 | 20,000,000 | ||
Interest rate swap agreement net receivable | $ 1,100,000 | $ 900,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Schedule of Interest Rate Derivatives) (Details) - HBB - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Interest Rate Swaps, Extending to January 2020 | ||
Derivative [Line Items] | ||
Notional Amount | $ 20,000,000 | $ 20,000,000 |
Average Fixed Rate | 1.40% | 1.40% |
Interest Rate Swaps, Extending to January 2024 | ||
Derivative [Line Items] | ||
Notional Amount | $ 15,000,000 | $ 15,000,000 |
Average Fixed Rate | 1.60% | 1.60% |
Delayed Start Interest Rate Swaps, Extending to January 2024 | ||
Derivative [Line Items] | ||
Notional Amount | $ 10,000,000 | $ 10,000,000 |
Average Fixed Rate | 1.70% | 1.70% |
Derivative Financial Instrume_5
Derivative Financial Instruments (Fair Value of Derivative Instruments as Recorded in Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Total derivatives, asset derivatives | $ 1,290 | $ 1,139 |
Total derivatives, liability derivatives | 87 | 93 |
Designated as hedging instrument | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate swap agreements, asset derivatives | 349 | 109 |
Foreign currency exchange contracts, asset derivatives | 231 | 245 |
Designated as hedging instrument | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate swap agreements, liability derivatives | 0 | 0 |
Foreign currency exchange contracts, liability derivatives | 87 | 93 |
Designated as hedging instrument | Other non-current assets | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate swap agreements, asset derivatives | 710 | 785 |
Designated as hedging instrument | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate swap agreements, liability derivatives | $ 0 | $ 0 |
Fair Value Disclosure (Details)
Fair Value Disclosure (Details) - Revolving credit agreements - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Line of Credit Facility [Line Items] | ||
Fair value | $ 46.6 | $ 51.3 |
Carrying value | $ 46.6 | $ 51.3 |
Leasing Arrangements (Details)
Leasing Arrangements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Leases | |||
2,019 | $ 20,705 | ||
2,020 | 14,092 | ||
2,021 | 8,863 | ||
2,022 | 5,376 | ||
2,023 | 3,660 | ||
Subsequent to 2023 | 21,911 | ||
Total minimum lease payments | 74,607 | ||
Rental expense for all operating leases | $ 23,600 | $ 25,000 | $ 25,900 |
Contingencies (Details)
Contingencies (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Commitments and Contingencies Disclosure [Abstract] | ||
Accrued undiscounted obligations for environmental investigation and remediation activities | $ 8.2 | $ 8.9 |
Stockholders' Equity and Earn_3
Stockholders' Equity and Earnings Per Share Stockholders' Equity and Earnings Per Share (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2018voteshares | May 15, 2018shares | Dec. 31, 2017shares | |
Class A Common Stock | |||
Class of Stock [Line Items] | |||
Number of votes | vote | 1 | ||
Class B Common converted to Class A Common (in shares) | shares | 386,581 | 2,028,491 | |
Class B Common Stock | |||
Class of Stock [Line Items] | |||
Number of votes | vote | 10 | ||
Stock Repurchase Program | Class A Common Stock | |||
Class of Stock [Line Items] | |||
Approved repurchase amount (up to) (in shares) | shares | 25,000,000 |
Stockholders' Equity and Earn_4
Stockholders' Equity and Earnings Per Share (Reclassification out of AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Cost of sales | $ 554,167 | $ 546,928 | $ 551,586 | ||||||||
Interest expense, net | 3,277 | 1,830 | 1,374 | ||||||||
Income before income taxes | 28,029 | 36,077 | 41,163 | ||||||||
Income tax benefit | (6,245) | (18,172) | (14,984) | ||||||||
Net income | $ 8,044 | $ (874) | $ (418) | $ 13,765 | $ 4,259 | $ 1,239 | $ (1,358) | 21,784 | 17,905 | 26,179 | |
Loss (gain) on cash flow hedging | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total reclassifications for the period | (153) | (641) | (105) | ||||||||
Pension plan | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total reclassifications for the period | (650) | (306) | (313) | ||||||||
Reclassification out of accumulated other comprehensive income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total reclassifications for the period | 803 | 947 | 418 | ||||||||
Reclassification out of accumulated other comprehensive income | Loss (gain) on cash flow hedging | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Income before income taxes | 213 | 916 | 172 | ||||||||
Income tax benefit | (60) | (275) | (67) | ||||||||
Net income | 153 | 641 | 105 | ||||||||
Reclassification out of accumulated other comprehensive income | Loss (gain) on cash flow hedging | Foreign currency exchange contracts | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Cost of sales | 32 | 853 | (11) | ||||||||
Reclassification out of accumulated other comprehensive income | Loss (gain) on cash flow hedging | Interest rate contract | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Interest expense, net | 181 | 63 | 183 | ||||||||
Reclassification out of accumulated other comprehensive income | Pension plan | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Income tax benefit | (173) | (205) | (195) | ||||||||
Net income | 650 | 306 | 313 | ||||||||
Reclassification out of accumulated other comprehensive income | Actuarial loss | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Pension plan | $ 823 | $ 511 | $ 508 |
Stockholders' Equity and Earn_5
Stockholders' Equity and Earnings Per Share (Weighted Average Number of Shares Outstanding Reconciliation) (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Equity [Abstract] | |||
Basic weighted average shares outstanding (in shares) | 13,699 | 13,673 | 13,673 |
Dilutive effect of share-based compensation awards (in shares) | 32 | 12 | 0 |
Diluted weighted average shares outstanding (in shares) | 13,731 | 13,685 | 13,673 |
Basic and diluted earnings per share (in dollars per share) | $ 1.59 | $ 1.31 | $ 1.91 |
Income Taxes (Income Before Inc
Income Taxes (Income Before Income Taxes and Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income before income taxes | |||
Domestic | $ 23,737 | $ 31,328 | $ 39,136 |
Foreign | 4,292 | 4,749 | 2,027 |
Total | 28,029 | 36,077 | 41,163 |
Current income tax provision: | |||
Federal | (634) | 11,484 | 12,140 |
State | 539 | 1,381 | 501 |
Foreign | 1,393 | 1,365 | 556 |
Total current | 1,298 | 14,230 | 13,197 |
Deferred income tax provision (benefit): | |||
Federal | 4,911 | 4,122 | 1,458 |
State | (40) | (437) | 239 |
Foreign | 76 | 257 | 90 |
Total deferred | 4,947 | 3,942 | 1,787 |
Income tax provision | $ 6,245 | $ 18,172 | $ 14,984 |
Income Taxes (Textual) (Details
Income Taxes (Textual) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Contingency [Line Items] | |||
Income tax refunds | $ 100,000 | $ 0 | $ 600,000 |
Tax Cuts and Jobs Act of 2017, provisional income tax charge | 4,700,000 | ||
Provisional income tax change for remeasurement of deferred tax balances | 4,100,000 | ||
Provisional income tax charge related to nondeductible executive compensation expense | 400,000 | ||
Provisional income tax change related to deemed repatriation of foreign earnings, net | 200,000 | ||
Provisional income tax change related to deemed repatriation of foreign earnings | 500,000 | ||
Permanent items | 300,000 | 600,000 | 400,000 |
Undistributed Earnings of Foreign Subsidiaries | 23,600,000 | ||
Federal | |||
Income Tax Contingency [Line Items] | |||
Income tax payments | 8,300,000 | 9,900,000 | 11,000,000 |
Foreign and State | |||
Income Tax Contingency [Line Items] | |||
Income tax payments | $ 2,600,000 | $ 1,900,000 | $ 2,800,000 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of the Federal Statutory and Effective Income Tax Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Income before income taxes | $ 28,029 | $ 36,077 | $ 41,163 |
Statutory taxes at 21.0% (35.0% in 2017 and prior) | 5,886 | 12,627 | 14,407 |
State and local income taxes | 330 | 901 | 1,019 |
Other non-deductible expenses | 597 | 411 | 414 |
Credits | (398) | (445) | (211) |
Valuation allowances | 231 | 369 | 170 |
Provisional effect of the Tax Act | 0 | 4,654 | 0 |
Non-deductible spin-related costs | 0 | 540 | 0 |
Other, net | (401) | (885) | (815) |
Income tax provision | $ 6,245 | $ 18,172 | $ 14,984 |
Effective income tax rate | 22.30% | 50.40% | 36.40% |
Statutory tax rate | 21.00% | 35.00% | 35.00% |
Income Taxes (Summary of the To
Income Taxes (Summary of the Total Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets | ||
Tax carryforwards | $ 2,293 | $ 5,034 |
Inventories | 147 | 207 |
Depreciation and amortization | 0 | 716 |
Accrued expenses and reserves | 5,962 | 6,929 |
Other employee benefits | 2,747 | 3,238 |
Other | 1,178 | 696 |
Total deferred tax assets | 12,327 | 16,820 |
Less: Valuation allowance | 1,300 | 1,916 |
Deferred tax assets, net of valuation allowance | 11,027 | 14,904 |
Deferred tax liabilities | ||
Accrued pension benefits | 1,854 | 2,079 |
Depreciation and amortization | 1,010 | 0 |
Total deferred tax liabilities | 2,864 | 2,079 |
Net deferred tax asset | $ 8,163 | $ 12,825 |
Income Taxes (Summary of Operat
Income Taxes (Summary of Operating Loss Carryforwards and Tax Credit Carryforwards) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Operating Loss Carryforwards [Line Items] | ||
Net deferred tax asset, net operating loss | $ 2,293 | $ 5,034 |
Net deferred tax asset, state losses | 1,198 | |
Total net deferred tax asset | 2,293 | 5,285 |
Valuation allowance, state losses | 0 | |
Total valuation allowance | 990 | 1,658 |
Foreign tax authority | ||
Operating Loss Carryforwards [Line Items] | ||
Net deferred tax asset, net operating loss | 990 | 2,429 |
Valuation allowance, net operating loss | 990 | 0 |
State and local jurisdiction | ||
Operating Loss Carryforwards [Line Items] | ||
Net deferred tax asset, net operating loss | 1,303 | 1,658 |
Valuation allowance, net operating loss | $ 0 | $ 1,658 |
Income Taxes (Gross Unrecognize
Income Taxes (Gross Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Balance at beginning of period | $ 881 | $ 671 | $ 1,199 |
Additions based on tax positions related to prior years | 90 | 0 | 167 |
Additions based on tax positions related to the current year | 0 | 210 | 165 |
Reductions due to settlements with taxing authorities | (506) | 0 | (860) |
Balance at end of period | $ 465 | $ 881 | $ 671 |
Retirement Benefit Plans (Assum
Retirement Benefit Plans (Assumptions Used in Accounting for Defined Benefit Plans) (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
U.S. Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate for pension benefit obligation | 4.00% | 3.30% | 3.60% |
Discount rate for net periodic benefit cost | 3.30% | 3.60% | 3.70% |
Expected long-term rate of return on assets for net periodic benefit income | 7.50% | 7.50% | 7.50% |
Non-U.S. Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate for pension benefit obligation | 3.50% | 3.25% | 3.75% |
Discount rate for net periodic benefit cost | 3.50% | 3.75% | 4.00% |
Expected long-term rate of return on assets for net periodic benefit income | 5.50% | 5.50% | 5.50% |
Retirement Benefit Plans (Net P
Retirement Benefit Plans (Net Periodic Pension Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
U.S. Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | $ 681 | $ 811 | $ 875 |
Expected return on plan assets | (2,047) | (2,074) | (2,071) |
Amortization of actuarial loss | 623 | 501 | 495 |
Net periodic pension loss (income) | (743) | (762) | (701) |
Non-U.S. Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | 142 | 153 | 144 |
Expected return on plan assets | (286) | (264) | (248) |
Amortization of actuarial loss | 200 | 10 | 13 |
Net periodic pension loss (income) | $ 56 | $ (101) | $ (91) |
Retirement Benefit Plans (Other
Retirement Benefit Plans (Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
U.S. Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current year actuarial loss | $ 2,347 | $ (2,506) | $ 243 |
Amortization of actuarial loss | (623) | (501) | (495) |
Total recognized in other comprehensive loss | 1,724 | (3,007) | (252) |
Non-U.S. Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current year actuarial loss | 236 | 60 | 318 |
Amortization of actuarial loss | (200) | (10) | (13) |
Total recognized in other comprehensive loss | $ 36 | $ 50 | $ 305 |
Retirement Benefit Plans (Oblig
Retirement Benefit Plans (Obligation and Funded Status) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
U.S. Plan | |||
Change in benefit obligation | |||
Projected benefit obligation at beginning of year | $ 21,716 | $ 23,651 | |
Interest cost | 681 | 811 | $ 875 |
Actuarial (gain) loss | (1,278) | (521) | |
Benefits paid | (1,988) | (2,225) | |
Foreign currency exchange rate changes | 0 | 0 | |
Projected benefit obligation at end of year | 19,131 | 21,716 | 23,651 |
Accumulated benefit obligation at end of year | 19,131 | 21,716 | |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 29,237 | 27,402 | |
Actual return on plan assets | (1,578) | 4,060 | |
Employer contributions | 0 | 0 | |
Benefits paid | (1,988) | (2,225) | |
Foreign currency exchange rate changes | 0 | 0 | |
Fair value of plan assets at end of year | 25,671 | 29,237 | 27,402 |
Funded status at end of year | 6,540 | 7,521 | |
Amounts recognized in the balance sheets consist of: | |||
Non-current assets | 6,540 | 7,521 | |
Components of accumulated other comprehensive loss consist of: | |||
Actuarial loss | (11,427) | (9,703) | |
Deferred taxes and other | 2,933 | 3,687 | |
Accumulated other comprehensive (loss) income | (8,494) | (6,016) | |
Non-U.S. Plan | |||
Change in benefit obligation | |||
Projected benefit obligation at beginning of year | 4,604 | 4,021 | |
Interest cost | 142 | 153 | 144 |
Actuarial (gain) loss | (148) | 291 | |
Benefits paid | (151) | (153) | |
Foreign currency exchange rate changes | (363) | 292 | |
Projected benefit obligation at end of year | 4,084 | 4,604 | 4,021 |
Accumulated benefit obligation at end of year | 4,084 | 4,604 | |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 5,456 | 4,712 | |
Actual return on plan assets | (111) | 497 | |
Employer contributions | 0 | 55 | |
Benefits paid | (151) | (153) | |
Foreign currency exchange rate changes | (450) | 345 | |
Fair value of plan assets at end of year | 4,744 | 5,456 | $ 4,712 |
Funded status at end of year | 660 | 852 | |
Amounts recognized in the balance sheets consist of: | |||
Non-current assets | 660 | 852 | |
Components of accumulated other comprehensive loss consist of: | |||
Actuarial loss | (1,225) | (1,033) | |
Deferred taxes and other | 485 | 371 | |
Accumulated other comprehensive (loss) income | $ (740) | $ (662) |
Retirement Benefit Plans (Narra
Retirement Benefit Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Actuarial loss included in accumulated other comprehensive income (loss) expected to be recognized in net periodic benefit cost, before tax | $ 0.6 | ||
Defined contribution plan, total costs | $ 5.3 | $ 5.3 | $ 5.2 |
Retirement Benefit Plans (Sched
Retirement Benefit Plans (Schedule of Expected Benefit Payments) (Details) $ in Millions | Dec. 31, 2018USD ($) |
U.S. Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | $ 1,929 |
2,020 | 2,131 |
2,021 | 1,847 |
2,022 | 1,771 |
2,023 | 1,721 |
2024 - 2028 | 6,772 |
Total | 16,171 |
Non-U.S. Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | 174 |
2,020 | 184 |
2,021 | 196 |
2,022 | 234 |
2,023 | 231 |
2024 - 2028 | 1,210 |
Total | $ 2,229 |
Retirement Benefit Plans (Actua
Retirement Benefit Plans (Actual Allocation Percentage and Target Allocation Percentage for the U.S. Pension Plan Assets) (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
U.S. Plan | U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 43.80% | 45.80% |
U.S. Plan | Non-U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 19.30% | 20.50% |
U.S. Plan | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 36.40% | 32.90% |
U.S. Plan | Money market | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 0.50% | 0.80% |
U.S. Plan | Minimum | U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocations range | 0.36 | |
U.S. Plan | Minimum | Non-U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocations range | 0.16 | |
U.S. Plan | Minimum | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocations range | 0.3 | |
U.S. Plan | Minimum | Money market | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocations range | 0 | |
U.S. Plan | Maximum | U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocations range | 0.54 | |
U.S. Plan | Maximum | Non-U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocations range | 0.24 | |
U.S. Plan | Maximum | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocations range | 0.4 | |
U.S. Plan | Maximum | Money market | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocations range | 0.1 | |
Non-U.S. Plan | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 40.60% | 32.10% |
Non-U.S. Plan | Canadian equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 29.50% | 33.60% |
Non-U.S. Plan | Non-Canadian equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 29.90% | 34.30% |
Non-U.S. Plan | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 0.00% | 0.00% |
Non-U.S. Plan | Minimum | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocations range | 0.3 | |
Non-U.S. Plan | Minimum | Canadian equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocations range | 0.25 | |
Non-U.S. Plan | Minimum | Non-Canadian equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocations range | 0.25 | |
Non-U.S. Plan | Minimum | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocations range | 0 | |
Non-U.S. Plan | Maximum | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocations range | 0.5 | |
Non-U.S. Plan | Maximum | Canadian equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocations range | 0.35 | |
Non-U.S. Plan | Maximum | Non-Canadian equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocations range | 0.35 | |
Non-U.S. Plan | Maximum | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocations range | 0.05 |
Retirement Benefit Plans (Fair
Retirement Benefit Plans (Fair Value Hierarchy) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
U.S. Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of each major category of U.S. plan assets | $ 25,671 | $ 29,237 |
U.S. Plan | U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of each major category of U.S. plan assets | 11,251 | 13,402 |
U.S. Plan | Non-U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of each major category of U.S. plan assets | 4,930 | 5,993 |
U.S. Plan | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of each major category of U.S. plan assets | 9,350 | 9,622 |
U.S. Plan | Money market | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of each major category of U.S. plan assets | 140 | 220 |
Non-U.S. Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of each major category of U.S. plan assets | 4,744 | 5,456 |
Non-U.S. Plan | U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of each major category of U.S. plan assets | 735 | 952 |
Non-U.S. Plan | Non-U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of each major category of U.S. plan assets | 2,081 | 2,750 |
Non-U.S. Plan | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of each major category of U.S. plan assets | 1,928 | 1,754 |
Non-U.S. Plan | Money market | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of each major category of U.S. plan assets | $ 0 | $ 0 |
Business Segments (Statements o
Business Segments (Statements of Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 241,704 | $ 196,901 | $ 157,941 | $ 146,633 | $ 265,778 | $ 181,713 | $ 152,976 | $ 140,282 | $ 743,179 | $ 740,749 | $ 745,357 |
Total revenues | 743,179 | 740,749 | 745,357 | ||||||||
Operating profit (loss) | 21,060 | 11,003 | 593 | (337) | 30,979 | 7,430 | 2,164 | (2,438) | 32,319 | 38,135 | 43,374 |
HBB | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 633,771 | ||||||||||
KC | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 113,469 | ||||||||||
Operating Segments | HBB | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 200,024 | 172,464 | 135,869 | 125,414 | 219,751 | 153,592 | 127,574 | 114,154 | 633,771 | 615,071 | 605,170 |
Operating profit (loss) | 17,731 | 13,446 | 4,399 | 3,993 | 26,540 | 9,001 | 5,164 | 782 | 39,569 | 41,487 | 43,033 |
Operating Segments | KC | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 42,723 | 25,884 | 22,762 | 22,100 | 47,343 | 28,644 | 25,868 | 26,665 | 128,520 | 144,351 | |
Operating profit (loss) | 3,229 | (2,407) | (3,834) | (4,304) | 4,450 | (1,581) | (3,008) | (3,279) | (7,316) | (3,418) | 376 |
Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | (1,043) | (1,447) | (690) | (881) | (1,316) | (523) | (466) | (537) | (4,061) | (2,842) | (4,164) |
Operating profit (loss) | $ 100 | $ (36) | $ 28 | $ (26) | $ (11) | $ 10 | $ 8 | $ 59 | $ 66 | $ 66 | $ (35) |
Business Segments (Balance Shee
Business Segments (Balance Sheets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Total assets | $ 330,427 | $ 326,233 | |
Depreciation and amortization | 5,309 | 5,611 | 6,226 |
Capital expenditures, excluding acquisitions of business | 8,076 | 7,374 | 6,002 |
Operating Segments | HBB | |||
Segment Reporting Information [Line Items] | |||
Total assets | 294,278 | 281,004 | |
Depreciation and amortization | 4,277 | 4,072 | 4,681 |
Capital expenditures, excluding acquisitions of business | 7,759 | 6,198 | 4,814 |
Operating Segments | KC | |||
Segment Reporting Information [Line Items] | |||
Total assets | 34,202 | 43,361 | |
Depreciation and amortization | 1,032 | 1,539 | 1,545 |
Capital expenditures, excluding acquisitions of business | 317 | 1,176 | 1,188 |
Not allocated | |||
Segment Reporting Information [Line Items] | |||
Total assets | $ 1,947 | $ 1,868 |
Business Segments (Data by Geog
Business Segments (Data by Geographic Region) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $ 241,704 | $ 196,901 | $ 157,941 | $ 146,633 | $ 265,778 | $ 181,713 | $ 152,976 | $ 140,282 | $ 743,179 | $ 740,749 | $ 745,357 |
Property, plant and equipment, net | 22,630 | 19,083 | 22,630 | 19,083 | 15,943 | ||||||
U.S. | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 603,294 | 608,490 | 626,367 | ||||||||
Property, plant and equipment, net | 17,132 | 14,078 | 17,132 | 14,078 | 10,861 | ||||||
Other | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 139,885 | 132,259 | 118,990 | ||||||||
Property, plant and equipment, net | $ 5,498 | $ 5,005 | $ 5,498 | $ 5,005 | $ 5,082 |
Quarterly Results of Operatio_3
Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 241,704 | $ 196,901 | $ 157,941 | $ 146,633 | $ 265,778 | $ 181,713 | $ 152,976 | $ 140,282 | $ 743,179 | $ 740,749 | $ 745,357 |
Gross profit | 60,015 | 50,351 | 40,853 | 37,793 | 72,286 | 48,127 | 38,831 | 34,577 | 189,012 | 193,821 | 193,771 |
Operating profit (loss) | 21,060 | 11,003 | 593 | (337) | 30,979 | 7,430 | 2,164 | (2,438) | 32,319 | 38,135 | 43,374 |
Net income | $ 8,044 | $ (874) | $ (418) | $ 13,765 | $ 4,259 | $ 1,239 | $ (1,358) | $ 21,784 | $ 17,905 | $ 26,179 | |
Basic earnings (loss) per share (in dollars per share) | $ 1.10 | $ 0.59 | $ (0.06) | $ (0.03) | $ 1.01 | $ 0.31 | $ 0.09 | $ (0.10) | $ 1.59 | $ 1.31 | $ 1.91 |
Diluted earnings (loss) per share (in dollars per share) | $ 1.09 | $ 0.59 | $ (0.06) | $ (0.03) | $ 1.01 | $ 0.31 | $ 0.09 | $ (0.10) | |||
Operating Segments | HBB | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 200,024 | $ 172,464 | $ 135,869 | $ 125,414 | $ 219,751 | $ 153,592 | $ 127,574 | $ 114,154 | $ 633,771 | $ 615,071 | $ 605,170 |
Operating profit (loss) | 17,731 | 13,446 | 4,399 | 3,993 | 26,540 | 9,001 | 5,164 | 782 | 39,569 | 41,487 | 43,033 |
Operating Segments | KC | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 42,723 | 25,884 | 22,762 | 22,100 | 47,343 | 28,644 | 25,868 | 26,665 | 128,520 | 144,351 | |
Operating profit (loss) | 3,229 | (2,407) | (3,834) | (4,304) | 4,450 | (1,581) | (3,008) | (3,279) | (7,316) | (3,418) | 376 |
Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | (1,043) | (1,447) | (690) | (881) | (1,316) | (523) | (466) | (537) | (4,061) | (2,842) | (4,164) |
Operating profit (loss) | $ 100 | $ (36) | $ 28 | $ (26) | $ (11) | $ 10 | $ 8 | $ 59 | $ 66 | $ 66 | $ (35) |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
NACCO | ||||
Related Party Transaction [Line Items] | ||||
Management fees | $ 3 | $ 0.5 | $ 0.2 | $ 4.1 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for doubtful accounts | |||
Valuation allowances and reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 1,177 | $ 862 | $ 864 |
Charged to Costs and Expenses | 11 | 405 | 46 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 475 | 90 | 48 |
Balance at End of Period | 713 | 1,177 | 862 |
Allowance for discounts, adjustments and returns | |||
Valuation allowances and reserves [Roll Forward] | |||
Balance at Beginning of Period | 14,164 | 14,650 | 17,397 |
Charged to Costs and Expenses | 21,358 | 21,692 | |
Charged to Other Accounts | 0 | 241 | |
Deductions | 21,844 | 24,680 | |
Balance at End of Period | 14,164 | 14,650 | |
Deferred tax valuation allowances | |||
Valuation allowances and reserves [Roll Forward] | |||
Balance at Beginning of Period | 1,916 | 1,614 | 1,290 |
Charged to Costs and Expenses | 0 | 302 | 324 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 616 | 0 | 0 |
Balance at End of Period | $ 1,300 | $ 1,916 | $ 1,614 |