Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 31, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-38214 | |
Entity Registrant Name | HAMILTON BEACH BRANDS HOLDING COMPANY | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 31-1236686 | |
Entity Address, Address Line One | 4421 WATERFRONT DR. | |
Entity Address, City or Town | GLEN ALLEN | |
Entity Address, State or Province | VA | |
Entity Address, Postal Zip Code | 23060 | |
City Area Code | (804) | |
Local Phone Number | 273-9777 | |
Title of 12(b) Security | Class A Common Stock, Par Value $0.01 Per Share | |
Trading Symbol | HBB | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001709164 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Shares Outstanding Class A | ||
Entity Information [Line Items] | ||
Shares Outstanding (in shares) | 9,607,226 | |
Shares Outstanding Class B | ||
Entity Information [Line Items] | ||
Shares Outstanding (in shares) | 4,062,372 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Current assets | |||
Cash and cash equivalents | $ 1,616 | $ 2,142 | $ 1,029 |
Trade receivables, net | 85,209 | 108,381 | 86,268 |
Inventory | 90,572 | 109,806 | 121,472 |
Prepaid expenses and other current assets | 13,358 | 11,345 | 16,412 |
Current assets of discontinued operations | 0 | 5,383 | 21,255 |
Total current assets | 190,755 | 237,057 | 246,436 |
Property, plant and equipment, net | 23,064 | 22,324 | 21,649 |
Goodwill | 6,253 | 6,253 | 6,253 |
Other intangible assets, net | 2,494 | 3,141 | 3,828 |
Deferred income taxes | 5,830 | 6,248 | 3,754 |
Deferred costs | 11,532 | 10,941 | 8,564 |
Other non-current assets | 2,673 | 2,085 | 1,984 |
Non-current assets of discontinued operations | 0 | 614 | 4,420 |
Total assets | 242,601 | 288,663 | 296,888 |
Current liabilities | |||
Accounts payable | 92,282 | 111,348 | 86,199 |
Accounts payable to NACCO Industries, Inc. | 496 | 496 | 220 |
Revolving credit agreements | 41,785 | 23,497 | 51,505 |
Accrued compensation | 11,362 | 15,027 | 11,725 |
Accrued product returns | 7,383 | 8,697 | 8,224 |
Other current liabilities | 15,242 | 12,534 | 21,382 |
Current liabilities of discontinued operations | 0 | 29,723 | 20,048 |
Total current liabilities | 168,550 | 201,322 | 199,303 |
Revolving credit agreements | 0 | 35,000 | 30,000 |
Other long-term liabilities | 12,499 | 16,075 | 14,699 |
Non-current liabilities of discontinued operations | 0 | 0 | 3,697 |
Total liabilities | 181,049 | 252,397 | 247,699 |
Stockholders' equity | |||
Capital in excess of par value | 56,325 | 54,509 | 53,342 |
Treasury stock | (5,960) | (5,960) | (2,334) |
Retained earnings | 30,528 | 3,710 | 15,646 |
Accumulated other comprehensive loss | (19,481) | (16,132) | (17,604) |
Total stockholders' equity | 61,552 | 36,266 | 49,189 |
Total liabilities and stockholders' equity | 242,601 | 288,663 | 296,888 |
Class A Common Stock | |||
Stockholders' equity | |||
Common stock | 99 | 98 | 95 |
Class B Common Stock | |||
Stockholders' equity | |||
Common stock | $ 41 | $ 41 | 44 |
Capital in excess of par value | 53,342 | ||
Treasury stock | $ (2,334) |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Statement [Abstract] | ||||||
Revenue | $ 138,297 | $ 131,065 | $ 259,143 | $ 257,707 | ||
Cost of sales | 103,043 | 102,558 | 198,849 | 202,498 | ||
Gross profit | 35,254 | 28,507 | 60,294 | 55,209 | ||
Selling, general and administrative expenses | 24,035 | 24,976 | 48,248 | 51,222 | ||
Amortization of intangible assets | 324 | 346 | 648 | 691 | ||
Operating profit | 10,895 | 3,185 | 11,398 | 3,296 | ||
Interest expense, net | 366 | 789 | 969 | 1,452 | ||
Other expense (income), net | (193) | (132) | 1,509 | (329) | ||
Income (loss) from continuing operations before income taxes | 10,722 | 2,528 | 8,920 | 2,173 | ||
Income tax expense (benefit) | 2,657 | 630 | 2,209 | 937 | ||
Net income (loss) from continuing operations | 8,065 | 1,898 | 6,711 | 1,236 | ||
Income (loss) from discontinued operations, net of tax | (305) | (2,516) | 22,561 | (5,239) | ||
Net income (loss) | $ 7,760 | $ 21,512 | $ (618) | $ (3,385) | $ 29,272 | $ (4,003) |
Earnings Per Share, Basic and Diluted [Abstract] | ||||||
Basic and diluted earnings (loss) per share, continuing operations (in usd per share) | $ 0.59 | $ 0.14 | $ 0.49 | $ 0.09 | ||
Basic and diluted earnings (loss) per share, discontinued operations (in usd per share) | (0.02) | (0.18) | 1.65 | (0.38) | ||
Basic and diluted earnings (loss) per share (in usd per share) | $ 0.57 | $ (0.04) | $ 2.14 | $ (0.29) | ||
Basic weighted average shares outstanding (in shares) | 13,644,000 | 13,813,000 | 13,635,000 | 13,800,000 | ||
Diluted weighted average shares outstanding (in shares) | 13,670,000 | 13,826,000 | 13,657,000 | 13,813,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||||
Net income (loss) | $ 7,760 | $ 21,512 | $ (618) | $ (3,385) | $ 29,272 | $ (4,003) |
Foreign currency translation adjustment | 488 | 113 | 1,545 | 327 | ||
(Loss) gain on long-term intra-entity foreign currency transactions | 31 | 121 | (4,879) | 136 | ||
Cash flow hedging activity | 137 | (877) | (25) | (1,299) | ||
Reclassification of hedging activities into earnings | (392) | 144 | (282) | 146 | ||
Reclassification of pension adjustments into earnings | 97 | 102 | 292 | 186 | ||
Total other comprehensive loss, net of tax | 361 | (397) | (3,349) | (504) | ||
Comprehensive income (loss) | $ 8,121 | $ (1,015) | $ 25,923 | $ (4,507) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | Jun. 30, 2020 | Jun. 30, 2019 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract] | ||
Cash and cash equivalents | $ 1,616 | $ 1,029 |
Restricted cash included in prepaid expenses and other current assets | 194 | 0 |
Restricted cash included in other non-current assets | 760 | 0 |
Cash and cash equivalents of discontinued operations | 0 | 102 |
Total cash, cash equivalents, and restricted cash | $ 2,570 | $ 1,131 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Capital in Excess of Par Value | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Class A Common StockCommon Stock | Class B Common StockCommon Stock |
Balance, beginning of period at Dec. 31, 2018 | $ 56,818 | $ 51,714 | $ 0 | $ 22,068 | $ (17,101) | $ 93 | $ 44 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (3,385) | (3,385) | |||||
Issuance of common stock, net of conversions | 1 | (1) | 2 | ||||
Share-based compensation expense | 807 | 807 | |||||
Cash dividends on Class A Common and Class B Common | (1,177) | (1,177) | |||||
Other comprehensive income (loss) | (192) | (192) | |||||
Reclassification adjustment to net income | 86 | 86 | |||||
Balance, end of period at Mar. 31, 2019 | 52,958 | 52,520 | 0 | 17,506 | (17,207) | 95 | 44 |
Balance, beginning of period at Dec. 31, 2018 | 56,818 | 51,714 | 0 | 22,068 | (17,101) | 93 | 44 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (4,003) | (4,003) | |||||
Issuance of common stock, net of conversions | 1 | (1) | 2 | ||||
Purchase of treasury stock | 2,334 | 2,334 | |||||
Share-based compensation expense | 1,629 | 1,629 | |||||
Other comprehensive income (loss) | (835) | (835) | |||||
Reclassification adjustment to net income | 332 | 332 | |||||
Balance, end of period at Jun. 30, 2019 | 49,189 | 53,342 | (2,334) | 15,646 | (17,604) | 95 | 44 |
Balance, beginning of period at Mar. 31, 2019 | 52,958 | 52,520 | 0 | 17,506 | (17,207) | 95 | 44 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (618) | (618) | |||||
Purchase of treasury stock | (2,334) | (2,334) | |||||
Share-based compensation expense | 822 | 822 | |||||
Cash dividends on Class A Common and Class B Common | (1,242) | (1,242) | |||||
Other comprehensive income (loss) | (643) | (643) | |||||
Reclassification adjustment to net income | 246 | 246 | |||||
Balance, end of period at Jun. 30, 2019 | 49,189 | 53,342 | (2,334) | 15,646 | (17,604) | 95 | 44 |
Balance, beginning of period at Dec. 31, 2019 | 36,266 | 54,509 | (5,960) | 3,710 | (16,132) | 98 | 41 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 21,512 | 21,512 | |||||
Issuance of common stock, net of conversions | 0 | (1) | 1 | ||||
Share-based compensation expense | 554 | 554 | |||||
Cash dividends on Class A Common and Class B Common | (1,226) | (1,226) | |||||
Other comprehensive income (loss) | (4,015) | (4,015) | |||||
Reclassification adjustment to net income | 305 | 305 | |||||
Balance, end of period at Mar. 31, 2020 | 53,396 | 55,062 | (5,960) | 23,996 | (19,842) | 99 | 41 |
Balance, beginning of period at Dec. 31, 2019 | 36,266 | 54,509 | (5,960) | 3,710 | (16,132) | 98 | 41 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 29,272 | ||||||
Balance, end of period at Jun. 30, 2020 | 61,552 | 56,325 | (5,960) | 30,528 | (19,481) | 99 | 41 |
Balance, beginning of period at Mar. 31, 2020 | 53,396 | 55,062 | (5,960) | 23,996 | (19,842) | 99 | 41 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 7,760 | 7,760 | |||||
Share-based compensation expense | 1,263 | 1,263 | |||||
Cash dividends on Class A Common and Class B Common | (1,228) | (1,228) | |||||
Other comprehensive income (loss) | 656 | 656 | |||||
Reclassification adjustment to net income | (295) | (295) | |||||
Balance, end of period at Jun. 30, 2020 | $ 61,552 | $ 56,325 | $ (5,960) | $ 30,528 | $ (19,481) | $ 99 | $ 41 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||||
Cash Dividends on Class A Common and Class B Common per share (in usd per share) | $ 0.085 | $ 0.09 | $ 0.09 | $ 0.085 | $ 0.085 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation and Recently Issued Accounting Standards Basis of Presentation Hamilton Beach Brands Holding Company is a holding company and operates through its wholly-owned subsidiary, Hamilton Beach Brands, Inc. (“HBB”) (collectively “Hamilton Beach Holding” or the “Company”). HBB is a leading designer, marketer, and distributor of branded, small electric household and specialty housewares appliances, as well as commercial products for restaurants, fast food chains, bars, and hotels. HBB participates in the consumer, commercial and specialty small kitchen appliance markets. The Company previously operated through its other wholly-owned subsidiary, The Kitchen Collection, LLC ("KC"), which is reported as discontinued operations in all periods presented herein. KC completed its dissolution on April 3, 2020 with a pro-rata distribution of its remaining assets to creditors, at which time the KC legal entity ceased to exist. See Note 3 for further information on discontinued operations. The financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments of a normal recurring nature considered necessary for a fair presentation have been included. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K/A for the year ended December 31, 2019. Operating results for the six months ended June 30, 2020 are not necessarily indicative of the results that may be expected for the remainder of the year due to the highly seasonal nature of our primary markets. A majority of revenue and operating profit typically occurs in the second half of the calendar year when sales of our products to retailers and consumers historically increase significantly for the fall holiday-selling season. HBB maintains a $115.0 million senior secured floating-rate revolving credit facility (the “HBB Facility”) that expires on June 30, 2021, within one year after the issuance of these financial statements. Given the market conditions including unfavorable pricing terms, HBB has not yet completed its refinancing of the HBB Facility and accordingly, all amounts outstanding have been classified as current liabilities. HBB has approved and begun the refinancing process, which is considered customary. Based on the current status of the refinancing and HBB’s history of successfully refinancing its debt, HBB believes that it is probable that the HBB Facility will be refinanced before its maturity. HBB believes funds available from cash on hand, the HBB Facility and operating cash flows will provide sufficient liquidity to meet its operating needs and commitments arising during the next twelve months. 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 currently effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption is permitted. The Company is planning to adopt ASU 2016-02 when required 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 June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326)," which requires an entity to recognize credit losses as an allowance rather than as a write-down. For nonpublic entities, the amendments are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. The Company is planning to adopt ASU 2016-03 for its year ending December 31, 2023 and is currently evaluating to what extent ASU 2016-13 will affect the Company's financial position, results of operations, cash flows and related disclosures. |
Restatement of Previously Issue
Restatement of Previously Issued Financial Statements | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Restatement of Previously Issued Financial Statements | Restatement of Previously Issued Financial Statements During the quarter ended March 31, 2020, the Company discovered certain accounting irregularities at its Mexican subsidiaries. The Company’s Audit Review Committee commenced an internal investigation, with the assistance of outside counsel and other third party experts. As a result of this investigation, the Company, along with the Audit Review Committee and its third party experts, concluded that certain former employees of one of the Company’s Mexican subsidiaries engaged in unauthorized transactions with the Company’s Mexican subsidiaries that resulted in expenditures being deferred on the balance sheet beyond the period for which the costs pertained. As a result, the Company recorded a non-cash write-off for certain amounts included in the Company’s historical consolidated financial statements in trade receivables and prepaid expenses and other current assets, among other corrections, related to these transactions, and restated its consolidated financial statements as of December 31, 2019 and 2018, and for the years ended December 31, 2019, 2018 and 2017 and each of the quarters during the years ended December 31, 2019 and 2018 on Form 10-K/A for the year ended December 31, 2019. During the course of the investigation, certain expenses at the Company's Mexican subsidiaries were found to be incorrectly classified within the consolidated statement of operations and have also been corrected in the restatement. These misstatements are described in restatement reference (a) through (d) below. The restatement also includes corrections for other errors previously identified as immaterial, individually and in the aggregate, to our consolidated financial statements. Description of Misstatements (a) Write-off of Assets: Certain former employees of one of the Company's Mexican subsidiaries engaged in unauthorized transactions with the Company’s Mexican subsidiaries and vendors in which the employees had an interest. In doing so, expenditures were deferred on the balance sheet beyond the period for which the costs pertained. The amounts were recorded as trade receivables, prepaid expenses and other current assets, and reductions in accrued liabilities. The amounts have been written off to selling, general and administrative expenses. Where these write-offs caused prepaid assets and other current assets balance to become a liability, the balance has been reclassed from prepaid expenses and other assets to other current liabilities. (b) Reversal of Revenue: Certain former employees of one of our Mexican subsidiaries engaged in sales activities to customers in which the employees had an interest. The Company concluded that these unauthorized transactions did not meet the criteria for revenue recognition at the time of sale and the revenue has been reversed. (c) Correction of misclassification of Selling and Marketing Expenses: Certain former employees of one of the Mexican subsidiaries engaged a third-party, in which the employees had an interest, to perform selling and marketing activities on behalf of the Mexican subsidiaries. Amounts paid for the selling and marketing activities had previously been treated as variable consideration and reflected as a reduction to revenue; however, the amounts should be reflected as selling, general and administrative expenses. (d) Correction for the timing of recognition of customer price concessions: Customer price concessions at our Mexican subsidiaries were not accrued timely in order to obscure the increased expenses due to unauthorized transactions as described above. (e) Tax adjustments for corrections: The tax impacts of the corrections have been recorded. (f) Correction of other immaterial errors. Restatement Tables The restatement tables below present a reconciliation from the previously reported to the restated values as of and for the three and six months ended June 30, 2019 and as of December 31, 2019. The values as previously reported were derived from our Quarterly Report on Form 10-Q for the quarter ended June 30, 2019 filed on July 31, 2019 and from our Annual Report on Form 10-K for the fiscal year ended December 31, 2019 filed on February 26, 2020. Additionally, in the fourth quarter of 2019, KC met the requirements to be reported as a discontinued operation. The following consolidated financial tables present a reconciliation to reflect KC as a discontinued operation for all periods presented and are labeled "Recast". See Note 3, Discontinued Operations for more information. CONDENSED CONSOLIDATED BALANCE SHEETS December 31, 2019 As Previously Reported Restatement Impacts Restatement Reference As Restated (In thousands) Assets Current assets Cash and cash equivalents $ 2,142 $ — $ 2,142 Trade receivables, net 113,781 (5,400 ) a,b,d 108,381 Inventory 109,621 185 f 109,806 Prepaid expenses and other current assets 23,102 (11,757 ) a,b,f 11,345 Current assets of discontinued operations 5,383 — 5,383 Total current assets 254,029 (16,972 ) 237,057 Property, plant and equipment, net 22,324 — 22,324 Goodwill 6,253 — 6,253 Other intangible assets, net 3,141 — 3,141 Deferred income taxes 3,853 2,395 e 6,248 Deferred costs 10,941 — 10,941 Other non-current assets 2,085 — 2,085 Non-current assets of discontinued operations 614 — 614 Total assets $ 303,240 $ (14,577 ) $ 288,663 Liabilities and stockholders' equity Current liabilities Accounts payable $ 111,117 $ 231 f $ 111,348 Accounts payable to NACCO Industries, Inc. 496 — 496 Revolving credit agreements 23,497 — 23,497 Accrued compensation 14,277 750 f 15,027 Accrued product returns 8,697 — 8,697 Other current liabilities 12,873 (339 ) a,e 12,534 Current liabilities of discontinued operations 29,723 — 29,723 Total current liabilities 200,680 642 201,322 Revolving credit agreements 35,000 — 35,000 Other long-term liabilities 12,501 3,574 e 16,075 Total liabilities 248,181 4,216 252,397 Stockholders’ equity Preferred stock, par value $0.01 per share — — — Class A Common stock, par value $0.01 per share; 9,805 shares issued as of December 31, 2019 98 — 98 Class B Common stock, par value $0.01 per share, convertible into Class A on a one-for-one basis; 4,076 shares issued as of December 31, 2019 41 — 41 Capital in excess of par value 54,344 165 f 54,509 Treasury stock (5,960 ) — (5,960 ) Retained earnings 22,524 (18,814 ) a,b,d,e,f 3,710 Accumulated other comprehensive loss (15,988 ) (144 ) a,b,d,e (16,132 ) Total stockholders’ equity 55,059 (18,793 ) 36,266 Total liabilities and stockholders' equity $ 303,240 $ (14,577 ) $ 288,663 (a) Write-off of Assets: The correction of these misstatements resulted in a decrease to trade receivables of $2.5 million , a reduction to prepaid expenses and other current assets of $12.4 million , and an increase to other current liabilities of $0.9 million (b) Reversal of Revenue: The correction of these misstatements resulted in a decrease to trade receivables of $1.3 million and an increase to prepaid expenses and other current assets of $0.2 million (d) Correction for the timing of recognition of customer price concessions: The correction of these misstatements resulted in a decrease to trade receivables of $1.6 million (e) Tax adjustments for corrections: The correction of these misstatements resulted in an increase to deferred income taxes of $2.4 million , a decrease to other current liabilities of $1.2 million , and an increase to other long-term liabilities of $3.6 million (f) Correction of other immaterial errors: The correction of these misstatements resulted in an increase to prepaid expenses and other current assets of $0.5 million , an increase to inventory of $0.2 million , an increase to accounts payable of $0.2 million , an increase to accrued compensation of $0.7 million , and an increase to capital in excess of par of $0.2 million CONDENSED CONSOLIDATED BALANCE SHEETS ` June 30, 2019 As Previously Reported Restatement Impacts Restatement Reference As Restated Recasting Impacts As Restated and Recast (In thousands) Assets Current assets Cash and cash equivalents $ 1,131 $ — $ 1,131 $ (102 ) $ 1,029 Trade receivables, net 89,579 (2,446 ) a,f 87,133 (865 ) 86,268 Inventory 140,817 — 140,817 (19,345 ) 121,472 Prepaid expenses and other current assets 24,078 (6,723 ) a 17,355 (943 ) 16,412 Current assets of discontinued operations — — — 21,255 21,255 Total current assets 255,605 (9,169 ) 246,436 — 246,436 Property, plant and equipment, net 23,204 — 23,204 (1,555 ) 21,649 Goodwill 6,253 — 6,253 — 6,253 Other intangible assets, net 3,828 — 3,828 — 3,828 Deferred income taxes 6,169 318 e 6,487 (2,733 ) 3,754 Deferred costs 8,683 — 8,683 (119 ) 8,564 Other non-current assets 1,997 — 1,997 (13 ) 1,984 Non-current assets of discontinued operations — — — 4,420 4,420 Total assets $ 305,739 $ (8,851 ) $ 296,888 $ — $ 296,888 Liabilities and stockholders' equity Current liabilities Accounts payable $ 91,737 $ — $ 91,737 $ (5,538 ) $ 86,199 Accounts payable to NACCO Industries, Inc. 220 — 220 — 220 Revolving credit agreements 58,955 — 58,955 (7,450 ) 51,505 Accrued compensation 12,091 387 f 12,478 (753 ) 11,725 Accrued product returns 8,224 — 8,224 — 8,224 Other current liabilities 27,930 (241 ) a,d,e,f 27,689 (6,307 ) 21,382 Current liabilities of discontinued operations — — — 20,048 20,048 Total current liabilities 199,157 146 199,303 — 199,303 Revolving credit agreements 32,000 — 32,000 (2,000 ) 30,000 Other long-term liabilities 15,485 911 e 16,396 (1,697 ) 14,699 Non-current liabilities of discontinued operations — — — 3,697 3,697 Total liabilities 246,642 1,057 247,699 — 247,699 Stockholders’ equity Class A Common stock 95 — 95 — 95 Class B Common stock 44 — 44 — 44 Capital in excess of par value 53,342 — 53,342 — 53,342 Treasury stock (2,334 ) — (2,334 ) — (2,334 ) Retained earnings 25,773 (10,127 ) a,d,e,f 15,646 — 15,646 Accumulated other comprehensive loss (17,823 ) 219 a,d (17,604 ) — (17,604 ) Total stockholders’ equity 59,097 (9,908 ) 49,189 — 49,189 Total liabilities and stockholders' equity $ 305,739 $ (8,851 ) $ 296,888 $ — $ 296,888 (a) Write-off of Assets: The correction of these misstatements resulted in a decrease to trade receivables of $1.3 million , a reduction to prepaid expenses and other current assets of $6.7 million , and an increase in other current liabilities of $1.4 million (d) Correction for the timing of recognition of customer price concessions: The correction of these misstatements resulted in an increase to other current liabilities of $0.2 million (e) Tax adjustments for corrections: The correction of these misstatements resulted in an increase to deferred income taxes of $0.3 million , a decrease to other current liabilities of $0.4 million , and an increase to other long-term liabilities of $0.9 million (f) Correction of other immaterial errors: The correction of these misstatements resulted in a decrease to trade receivables of $1.1 million , an increase to accrued compensation of $0.4 million , and a decrease to other current liabilities of $1.4 million CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS For the Three Months Ended June 30, 2019 As Previously Reported Restatement Impacts Restatement References As Restated Recasting Impacts As Restated and Recast (In thousands) Revenue $ 148,427 $ 921 c $ 149,348 $ (18,283 ) $ 131,065 Cost of sales 112,770 — 112,770 (10,212 ) 102,558 Gross profit 35,657 921 36,578 (8,071 ) 28,507 Selling, general and administrative expenses 35,617 594 a,c 36,211 (11,235 ) 24,976 Amortization of intangible assets 346 — 346 — 346 Operating profit (loss) (306 ) 327 21 3,164 3,185 Interest expense, net 904 — 904 (115 ) 789 Other expense (income), net (126 ) — (126 ) (6 ) (132 ) Income (loss) from continuing operations before income taxes (1,084 ) 327 (757 ) 3,285 2,528 Income tax expense (benefit) (140 ) 1 (139 ) 769 630 Net income (loss) from continuing operations (944 ) 326 (618 ) 2,516 1,898 Loss from discontinued operations, net of tax — — — (2,516 ) (2,516 ) Net income (loss) $ (944 ) $ 326 $ (618 ) $ — $ (618 ) Basic and diluted earnings (loss) per share: Continuing operations $ (0.07 ) $ 0.03 $ (0.04 ) $ 0.18 $ 0.14 Discontinued operations — — — (0.18 ) (0.18 ) Basic and diluted earnings (loss) per share $ (0.07 ) $ 0.03 $ (0.04 ) $ — $ (0.04 ) Basic weighted average shares outstanding 13,813 — 13,813 — 13,813 Diluted weighted average shares outstanding 13,813 — 13,813 13 13,826 (a) Write-off of Assets: The correction of these misstatements resulted in a decrease to selling, general and administrative ("SG&A") expense of $0.3 million (c) Correction of misclassification of Selling and Marketing Expenses: The correction of these misstatements resulted in an increase to revenue and an increase to SG&A expense of $0.9 million CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS For the Six Months Ended June 30, 2019 As Previously Reported Restatement Impacts Restatement References As Restated Recasting Impacts As Restated and Recast (In thousands) Revenue $ 293,804 $ 1,439 c,f $ 295,243 $ (37,536 ) $ 257,707 Cost of sales 223,424 (65 ) f 223,359 (20,861 ) 202,498 Gross profit 70,380 1,504 71,884 (16,675 ) 55,209 Selling, general and administrative expenses 72,124 2,566 a,c,f 74,690 (23,468 ) 51,222 Amortization of intangible assets 691 — 691 — 691 Operating profit (loss) (2,435 ) (1,062 ) (3,497 ) 6,793 3,296 Interest expense, net 1,650 — 1,650 (198 ) 1,452 Other expense (income), net (458 ) 144 f (314 ) (15 ) (329 ) Income (loss) from continuing operations before income taxes (3,627 ) (1,206 ) (4,833 ) 7,006 2,173 Income tax expense (benefit) (922 ) 92 e (830 ) 1,767 937 Net income (loss) from continuing operations (2,705 ) (1,298 ) (4,003 ) 5,239 1,236 Loss from discontinued operations, net of tax — — — (5,239 ) (5,239 ) Net loss $ (2,705 ) $ (1,298 ) $ (4,003 ) $ — $ (4,003 ) Basic and diluted earnings (loss) per share: Continuing operations $ (0.20 ) $ (0.09 ) $ (0.29 ) $ 0.38 $ 0.09 Discontinued operations — — — (0.38 ) (0.38 ) Basic and diluted earnings (loss) per share $ (0.20 ) $ (0.09 ) $ (0.29 ) $ — $ (0.29 ) Basic weighted average shares outstanding 13,800 — 13,800 — 13,800 Diluted weighted average shares outstanding 13,800 — 13,800 13 13,813 (a) Write-off of Assets: The correction of these misstatements resulted in an increase to selling, general and administrative ("SG&A") expense of $1.1 million (c) Correction of misclassification of Selling and Marketing Expenses: The correction of these misstatements resulted in an increase to revenue and an increase to SG&A expense of $1.3 million (e) Tax adjustments for corrections: The correction of these misstatements resulted in an increase to income tax expense of $0.1 million (f) Correction of other immaterial errors: The correction of these misstatements resulted in an increase to revenue of $0.1 million , a decrease to cost of sales of $0.1 million , an increase to SG&A of $0.2 million , and an increase to other expense of $0.1 million CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) For the Three Months Ended June 30, 2019 As Previously Reported Restatement Impacts As Restated (In thousands) Net income (loss) $ (944 ) $ 326 $ (618 ) Other comprehensive income (loss), net of tax: Foreign currency translation adjustment 226 (113 ) 113 Gain on long-term intra-entity foreign currency transactions 121 — 121 Cash flow hedging activity (877 ) — (877 ) Reclassification of hedging activities into earnings 144 — 144 Pension plan adjustment — — — Reclassification of pension adjustments into earnings 102 — 102 Total other comprehensive loss, net of tax (284 ) (113 ) (397 ) Comprehensive income (loss) $ (1,228 ) $ 213 $ (1,015 ) See description of the net income (loss) impacts in the consolidated statement of operations for the three months ended June 30, 2019 section above. The decrease to foreign currency translation adjustments is the result of the translation impacts of restatements in the write-off of assets, reversal of revenue and timing of recognition of customer pricing concessions categories. The increases to the reclassification of pension adjustments are from the correction of other immaterial errors. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) For the Six Months Ended June 30, 2019 As Previously Reported Restatement Impacts As Restated (In thousands) Net income (loss) $ (2,705 ) $ (1,298 ) $ (4,003 ) Other comprehensive income (loss), net of tax: Foreign currency translation adjustment 556 (229 ) 327 Gain on long-term intra-entity foreign currency transactions 136 — 136 Cash flow hedging activity (1,443 ) 144 (1,299 ) Reclassification of hedging activities into earnings 146 — 146 Pension plan adjustment — — — Reclassification of pension adjustments into earnings 92 94 186 Total other comprehensive loss, net of tax (513 ) 9 (504 ) Comprehensive income (loss) $ (3,218 ) $ (1,289 ) $ (4,507 ) See description of the net income (loss) impacts in the consolidated statement of operations for the six months ended June 30, 2019 section above. The decrease to foreign currency translation adjustments is the result of the translation impacts of restatements in the write-off of assets and timing of recognition of customer pricing concessions categories. The increase to cash flow hedging and the reclassification of pension adjustments is from the correction of other immaterial errors. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS June 30, 2019 As Previously Reported Restatement Impacts As Restated Recasting Impacts As Restated and Recast Operating activities Net income (loss) from continuing operations $ (2,705 ) $ (1,298 ) $ (4,003 ) $ 5,239 $ 1,236 Adjustments to reconcile net income from continuing operations to net cash provided by operating activities: Depreciation and amortization 2,153 — 2,153 (312 ) 1,841 Deferred income taxes 1,800 57 1,857 43 1,900 Stock compensation expense 1,629 — 1,629 — 1,629 Other 117 (11 ) 106 (29 ) 77 Net changes in operating assets and liabilities: Affiliate payable (2,199 ) (1 ) (2,200 ) 5 (2,195 ) Trade receivables 13,956 (128 ) 13,828 (906 ) 12,922 Inventory 4,375 210 4,585 (2,649 ) 1,936 Other assets (133 ) (214 ) (347 ) (1,255 ) (1,602 ) Accounts payable (41,259 ) (9 ) (41,268 ) 8,166 (33,102 ) Other liabilities (19,841 ) 1,412 (18,429 ) 2,141 (16,288 ) Net cash provided by (used for) operating activities from continuing operations (42,107 ) 18 (42,089 ) 10,443 (31,646 ) Investing activities Expenditures for property, plant and equipment (2,091 ) — (2,091 ) 119 (1,972 ) Other 36 — 36 (36 ) — Net cash used for investing activities from continuing operations (2,055 ) — (2,055 ) 83 (1,972 ) Financing activities Net additions (reductions) to revolving credit agreements 44,302 — 44,302 (9,450 ) 34,852 Purchase of treasury stock (2,334 ) — (2,334 ) — (2,334 ) Cash dividends paid (2,419 ) — (2,419 ) — (2,419 ) Net cash provided by (used for) financing activities from continuing operations 39,549 — 39,549 (9,450 ) 30,099 Cash flows from discontinued operations Net cash used for operating activities from discontinued operations — — — (10,443 ) (10,443 ) Net cash used for investing activities from discontinued operations — — — (83 ) (83 ) Net cash used for financing activities from discontinued operations — — — 9,450 9,450 Cash provided by (used for) discontinued operations — — — (1,076 ) (1,076 ) Effect of exchange rate changes on cash (608 ) (18 ) (626 ) — (626 ) Cash and Cash Equivalents (Decrease) increase for the year from continuing operations (5,221 ) — (5,221 ) 1,076 (4,145 ) Increase (decrease) for the year from discontinued operations — — — (1,076 ) (1,076 ) Balance at the beginning of the year 6,352 — 6,352 — 6,352 Balance at the end of the period $ 1,131 $ — $ 1,131 $ — $ 1,131 See description of the net income (loss) impacts in the consolidated statement of operations for the six months ended June 30, 2019 section above. CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY Class A common stock Class B common stock Capital in excess of par value Treasury stock Retained earnings Accumulated other comprehensive income (loss) Total stockholders' equity As Previously Reported Balance, January 1, 2019 $ 93 $ 44 $ 51,714 $ — $ 30,897 $ (17,310 ) $ 65,438 Net loss — — — — (2,705 ) — (2,705 ) Issuance of common stock, net of conversions 2 — (1 ) — — — 1 Purchase of treasury stock — — — (2,334 ) — — (2,334 ) Share-based compensation expense — — 1,629 — — — 1,629 Cash dividends, $0.085 per share — — — — (2,419 ) — (2,419 ) Other comprehensive loss — — — — — (751 ) (751 ) Reclassification adjustment to net loss — — — — — 238 238 Balance, June 30, 2019 $ 95 $ 44 $ 53,342 $ (2,334 ) $ 25,773 $ (17,823 ) $ 59,097 Restatement Impacts Balance, January 1, 2019 $ — $ — $ — $ — $ (8,829 ) $ 209 $ (8,620 ) Net loss — — — — (1,298 ) — (1,298 ) Issuance of common stock, net of conversions — — — — — — — Purchase of treasury stock — — — — — — — Share-based compensation expense — — — — — — — Cash dividends, $0.085 per share — — — — — — — Other comprehensive loss — — — — — (85 ) (85 ) Reclassification adjustment to net loss — — — — — 94 94 Balance, June 30, 2019 $ — $ — $ — $ — $ (10,127 ) $ 218 $ (9,909 ) As Restated Balance, January 1, 2019 $ 93 $ 44 $ 51,714 $ — $ 22,068 $ (17,101 ) $ 56,818 Net loss — — — — (4,003 ) — (4,003 ) Issuance of common stock, net of conversions 2 — (1 ) — — — 1 Purchase of treasury stock — — — (2,334 ) — — (2,334 ) Share-based compensation expense — — 1,629 — — — 1,629 Cash dividends, $0.085 per share — — — — (2,419 ) — (2,419 ) Other comprehensive loss — — — — — (835 ) (835 ) Reclassification adjustment to net loss — — — — — 332 332 Balance, June 30, 2019 $ 95 $ 44 $ 53,342 $ (2,334 ) $ 15,646 $ (17,604 ) $ 49,189 See description of the net income and other comprehensive income (loss) impacts in the consolidated statement of operations and consolidated statement of comprehensive income (loss) for the six months ended June 30, 2019 sections above. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations On October 10, 2019, the Board approved the wind down of KC's retail operation due to further deterioration in foot traffic which lowered the Company's outlook for the prospect of a future return to profitability. By December 31, 2019, all retail stores were closed and operations ceased. Accordingly, KC is reported as discontinued operations in all periods presented. KC completed its dissolution on April 3, 2020 with a pro-rata distribution of its remaining assets to creditors, at which time the KC legal entity ceased to exist and was no longer consolidated by the Company. During the three months ended June 30, 2020 KC was deconsolidated. Neither Hamilton Beach Brands Holding Company nor Hamilton Beach Brands, Inc. received a distribution. KC’s operating results are reflected as discontinued operations for all periods presented. The major line items constituting the income (loss) from discontinued operations, net of tax are as follows: THREE MONTHS ENDED June 30, SIX MONTHS ENDED June 30, 2020 2019 2020 2019 (In thousands) Revenue $ — $ 18,283 631 37,536 Cost of sales — 10,212 — 20,861 Gross profit — 8,071 631 16,675 Selling, general and administrative expenses 299 11,235 1,346 23,468 Adjustment of lease termination liability (1) — — (16,457 ) — Adjustment of other current liabilities (2) — — (6,608 ) — Operating income (loss) (299 ) (3,164 ) 22,350 (6,793 ) Interest expense — 115 198 Other expense, net 88 6 88 15 Income (loss) from discontinued operations before income taxes (387 ) (3,285 ) 22,262 (7,006 ) Income tax benefit (82 ) (769 ) (299 ) (1,767 ) Income (loss) from discontinued operations, net of tax $ (305 ) $ (2,516 ) $ 22,561 $ (5,239 ) (1) Represents an adjustment to the estimated timing and amount of estimated cash flows underlying the lease termination obligation at March 31, 2020, calculated based on the final distribution of KC's remaining assets on April 3, 2020. The lease termination obligation is measured at fair value using significant observable inputs, which is Level 2 as defined in the fair value hierarchy. (2) Represents an adjustment to the carrying value of substantially all of the other current liabilities at March 31, 2020, calculated based on the final distribution of KC's remaining assets on April 3, 2020. KC’s assets and liabilities are reflected as assets and liabilities of discontinued operations for the year ended December 31, 2019 and the six months ended June 30, 2019. Due to the deconsolidation of KC, there were no assets or liabilities associated with KC as of June 30, 2020. The major classes of assets and liabilities included as part of discontinued operations are as follows: DECEMBER 31 JUNE 30 Assets Cash and cash equivalents $ 5,022 $ 102 Inventory — 19,345 Prepaid expenses and other current assets 361 1,808 Current assets of discontinued operations $ 5,383 $ 21,255 Property, plant and equipment, net — 1,555 Deferred income taxes $ 614 $ 2,733 Other non-current assets — 132 Non-current assets of discontinued operations $ 614 $ 4,420 Liabilities Accounts payable $ 4,594 $ 5,538 Revolving credit agreement — 7,450 Lease termination liability 17,248 — Other current liabilities 7,881 7,060 Current liabilities of discontinued operations $ 29,723 $ 20,048 Other long-term liabilities — 3,697 Non-current liabilities of discontinued operations $ — $ 3,697 Neither Hamilton Beach Brands Holding Company nor HBB has guaranteed any obligations of KC. |
Transfer of Financial Assets
Transfer of Financial Assets | 6 Months Ended |
Jun. 30, 2020 | |
Transfers and Servicing [Abstract] | |
Transfer of financial assets | Transfer of Financial Assets The Company has entered into an arrangement with a financial institution to sell certain U.S. trade receivables 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 trade receivables because the agreement transfers effective control over and risk related to the receivables to the buyer. Under this arrangement, the Company derecognized $ 38.7 million and $75.2 million of trade receivables during the three and six months ending June 30, 2020, respectively, $ 33.4 million and $67.9 million of trade receivables during the three and six months ending June 30, 2019 , respectively, and $ 162.7 million during the year ending December 31, 2019 . The loss incurred on sold receivables in the consolidated results of operations for the six months ended June 30, 2020 and 2019 was not material. The Company does not carry any servicing assets or liabilities. Cash proceeds from this arrangement are reflected as operating activities in the Condensed Consolidated Statements of Cash Flows. |
Fair Value Disclosure
Fair Value Disclosure | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosure | Fair Value Disclosure The following table presents the Company's assets and liabilities accounted for at fair value on a recurring basis: Description Balance Sheet Location JUNE 30 DECEMBER 31 JUNE 30 Assets: Interest rate swap agreements Current Prepaid expenses and other current assets $ — $ — $ 69 Foreign currency exchange contracts Current Prepaid expenses and other current assets 39 — — $ 39 $ — $ 69 Liabilities: Interest rate swap agreements Current Other current liabilities $ 390 $ 21 $ — Long-term Other long-term liabilities 948 61 51 Foreign currency exchange contracts Current Other current liabilities — 308 357 $ 1,338 $ 390 $ 408 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, trade receivables 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, which approximate book value, 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. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Capital Stock The following table sets forth the Company's authorized capital stock information: JUNE 30 DECEMBER 31 JUNE 30 (In thousands) Preferred stock, par value $0.01 per share Preferred stock authorized 5,000 5,000 5,000 Preferred stock outstanding — — — Class A Common stock, par value $0.01 per share Class A Common stock authorized 70,000 70,000 70,000 Class A Common issued (1)(2) 9,946 9,805 9,469 Treasury Stock 365 365 130 Class B Common stock, par value $0.01 per share, convertible into Class A on a one-for-one basis Class B Common stock authorized 30,000 30,000 30,000 Class B Common issued (1) 4,063 4,076 4,383 (1) Class B Common converted to Class A Common were 10 and 13 shares during the three and six months ending June 30, 2020 , respectively, and 2 and 39 during the three and six months ending June 30, 2019 , respectively. (2) The Company issued Class A Common shares of 20 and 128 during the three and six months ending June 30, 2020 , respectively, and 10 and 139 during the three and six months ending June 30, 2019 , respectively. Accumulated Other Comprehensive Loss: The following table summarizes changes in accumulated other comprehensive loss by component and related tax effects for periods shown: Foreign Currency Deferred Gain (Loss) on Cash Flow Hedging Pension Plan Adjustment Total As Restated Balance, January 1, 2020 $ (8,221 ) $ (341 ) $ (7,570 ) $ (16,132 ) Other comprehensive loss (4,985 ) (171 ) — (5,156 ) Reclassification adjustment to net loss — 154 239 393 Tax effects 1,132 (35 ) (44 ) 1,053 Balance, March 31, 2020 $ (12,074 ) $ (393 ) $ (7,375 ) $ (19,842 ) Other comprehensive income (loss) 742 137 — 879 Reclassification adjustment to net income (loss) — (489 ) 140 (349 ) Tax effects (223 ) 97 (43 ) (169 ) Balance, June 30, 2020 $ (11,555 ) $ (648 ) $ (7,278 ) $ (19,481 ) As Restated Balance, January 1, 2019 $ (8,652 ) $ 879 $ (9,328 ) $ (17,101 ) Other comprehensive income (loss) 246 (631 ) — (385 ) Reclassification adjustment to net income (loss) — 4 45 49 Tax effects (17 ) 207 39 229 As Restated Balance, March 31, 2019 $ (8,423 ) $ 459 $ (9,244 ) $ (17,208 ) Other comprehensive income (loss) 248 (1,198 ) — (950 ) Reclassification adjustment to net income (loss) — 202 142 344 Tax effects (13 ) 263 (40 ) 210 As Restated Balance, June 30, 2019 $ (8,188 ) $ (274 ) $ (9,142 ) $ (17,604 ) |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2020 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue | Revenue 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. A description of the performance obligations for HBB is as follows: • Product revenue - Product revenue consist of sales of small electric household and specialty housewares appliances to traditional brick and mortar and ecommerce 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 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 revenue recognized varies primarily with changes in returns. In addition, the Company offers price concessions to our customers for incentive offerings, special pricing agreements, price competition, promotions or other volume-based arrangements. We evaluated such agreements with our customers and determined returns and price concessions should be accounted for as variable consideration. As of December 31, 2019, we have determined that customer price concessions recorded as a reduction of revenue, certain of which were previously recorded in other current liabilities, meet all of the criteria specified in ASC 210-20, "Balance Sheet Offsetting". Accordingly, amounts related to such arrangements have now been classified as a reduction of trade receivables (prior periods have not been adjusted as all the criteria in ASC 210-20 had not previously been met). • License revenues - From time to time, the Company enters into exclusive and non-exclusive licensing agreements which grant the right to use certain of HBB’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, patents, trade dress, and/or logos (the “Licensed IP”). In exchange for granting the right to use the Licensed IP, HBB 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. HBB recognizes revenue at the later of when the subsequent sales occur or satisfying the performance obligation (over time). 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. The following table sets forth Company's revenue on a disaggregated basis for the three and six months ended June 30: THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, As Restated and Recast As Restated and Recast 2020 2019 2020 2019 Type of good or service: Products $ 136,816 $ 129,820 $ 256,451 $ 255,381 Licensing 1,481 1,245 2,692 2,326 Total revenues $ 138,297 $ 131,065 $ 259,143 $ 257,707 |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Various legal and regulatory proceedings and claims have been or may be asserted against Hamilton Beach Brands Holdings Company and certain subsidiaries relating to the conduct of its 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. On May 3, 2019, the jury returned its verdict finding that the Company had infringed certain patents of the plaintiff and, as a result, awarded the plaintiff damages in the amount of $3.2 million . Accordingly, the Company recorded $3.2 million expense in selling, general and administrative expenses during the second quarter of 2019 for the contingent loss. The Company filed post-trial motions challenging the jury verdict of infringement and the award of damages and the plaintiff filed motions seeking interest, post-trial accounting, injunctive relief, and attorneys’ fees. On May 2, 2020, the Company’s motion for judgment as a matter of law for non-infringement of certain claims of one of the patents in the case was granted. Since May 2, 2020, the court has also issued orders denying plaintiff’s motion for attorney’s fees and reducing plaintiff’s award by $0.9 million . Accordingly, the Company reduced the estimated contingent loss by $0.9 million during the first quarter of 2020. On July 16, 2020, the Court issued a narrow injunction prohibiting the sale of a particular line of mixing machines used in limited applications and denied plaintiff’s motion for an injunction with respect to all other HBB machines alleged to have infringed plaintiff’s patents. HBB has filed a Notice of Appeal with the U.S. Court of Appeals for the Federal Circuit, as HBB maintains it does not infringe any valid patent claim and the damages award is not supported by the evidence. On July 28, 2020, the Federal Circuit granted HBB's motion to stay the injunction pending the appeal. Hamilton Beach Brands Holding Company is a defendant in a legal proceeding instituted in February 2020 in which the plaintiff seeks to hold the Company liable for the unsatisfied portion of an agreed final judgment that plaintiff obtained against KC related to KC’s failure to continue to operate forty-nine stores during the term of the store leases. All KC stores were closed by December 31, 2019 and on January 23, 2020 a Certificate of Dissolution of Ohio Limited Liability Company was filed with the Ohio Secretary of State, effective as of January 21, 2020. In February 2020, KC agreed to the entry of a final judgment in favor of the plaintiff in the amount of $8.1 million and in April 2020 the plaintiff received $0.3 million in the final distribution of KC assets to KC creditors. The Company believes that the plaintiff’s claims are without merit and will vigorously defend against plaintiff’s claims. On May 21, 2020 an owner of HBBHC class A common stock filed a class action complaint against HBBHC and the Company’s Chief Executive and Chief Financial officers in the U.S. District Court for the Eastern District of New York. The complaint asserts claims under Sections 10(b) and 20 of the Securities Exchange Act on behalf of a putative class of investors who acquired HBBHC common stock between February 27, 2020 and May 8, 2020. The claims pertain to the accounting irregularities involving a Mexican subsidiary of the Company that were announced in the Form 12b-25 filed by the Company on May 8, 2020. The Company believes that the claims are without merit and will vigorously defend against the claims. 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 June 30, 2020 , December 31, 2019 , and June 30, 2019 , HBB had accrued undiscounted obligations of $ 4.2 million, $ 4.4 million and $ 4.6 million respectively, for environmental investigation and remediation activities. HBB estimates that it is reasonably possible that it may incur additional expenses in the range of zero to $3.9 million related to the environmental investigation and remediation at these sites. Additionally, the Company recorded a $1.5 million receivable as of December 31, 2019 related to a probable recovery of environmental investigation and remediation costs associated with one of the sites from a responsible party in exchange for release from all future obligations by that party. As of June 30, 2020, the receivable has been collected and $1.0 million is restricted cash. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Hamilton Beach Brands Holding Company is a holding company and operates through its wholly-owned subsidiary, Hamilton Beach Brands, Inc. (“HBB”) (collectively “Hamilton Beach Holding” or the “Company”). HBB is a leading designer, marketer, and distributor of branded, small electric household and specialty housewares appliances, as well as commercial products for restaurants, fast food chains, bars, and hotels. HBB participates in the consumer, commercial and specialty small kitchen appliance markets. The Company previously operated through its other wholly-owned subsidiary, The Kitchen Collection, LLC ("KC"), which is reported as discontinued operations in all periods presented herein. KC completed its dissolution on April 3, 2020 with a pro-rata distribution of its remaining assets to creditors, at which time the KC legal entity ceased to exist. See Note 3 for further information on discontinued operations. The financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments of a normal recurring nature considered necessary for a fair presentation have been included. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K/A for the year ended December 31, 2019. Operating results for the six months ended June 30, 2020 are not necessarily indicative of the results that may be expected for the remainder of the year due to the highly seasonal nature of our primary markets. A majority of revenue and operating profit typically occurs in the second half of the calendar year when sales of our products to retailers and consumers historically increase significantly for the fall holiday-selling season. HBB maintains a $115.0 million senior secured floating-rate revolving credit facility (the “HBB Facility”) that expires on June 30, 2021, within one year after the issuance of these financial statements. Given the market conditions including unfavorable pricing terms, HBB has not yet completed its refinancing of the HBB Facility and accordingly, all amounts outstanding have been classified as current liabilities. HBB has approved and begun the refinancing process, which is considered customary. Based on the current status of the refinancing and HBB’s history of successfully refinancing its debt, HBB believes that it is probable that the HBB Facility will be refinanced before its maturity. HBB believes funds available from cash on hand, the HBB Facility and operating cash flows will provide sufficient liquidity to meet its operating needs and commitments arising during the next twelve months. |
Accounting Standards Not Yet Adopted | 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 currently effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption is permitted. The Company is planning to adopt ASU 2016-02 when required 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 June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326)," which requires an entity to recognize credit losses as an allowance rather than as a write-down. For nonpublic entities, the amendments are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. The Company is planning to adopt ASU 2016-03 for its year ending December 31, 2023 and is currently evaluating to what extent ASU 2016-13 will affect the Company's financial position, results of operations, cash flows and related disclosures. |
Restatement of Previously Iss_2
Restatement of Previously Issued Financial Statements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS For the Three Months Ended June 30, 2019 As Previously Reported Restatement Impacts Restatement References As Restated Recasting Impacts As Restated and Recast (In thousands) Revenue $ 148,427 $ 921 c $ 149,348 $ (18,283 ) $ 131,065 Cost of sales 112,770 — 112,770 (10,212 ) 102,558 Gross profit 35,657 921 36,578 (8,071 ) 28,507 Selling, general and administrative expenses 35,617 594 a,c 36,211 (11,235 ) 24,976 Amortization of intangible assets 346 — 346 — 346 Operating profit (loss) (306 ) 327 21 3,164 3,185 Interest expense, net 904 — 904 (115 ) 789 Other expense (income), net (126 ) — (126 ) (6 ) (132 ) Income (loss) from continuing operations before income taxes (1,084 ) 327 (757 ) 3,285 2,528 Income tax expense (benefit) (140 ) 1 (139 ) 769 630 Net income (loss) from continuing operations (944 ) 326 (618 ) 2,516 1,898 Loss from discontinued operations, net of tax — — — (2,516 ) (2,516 ) Net income (loss) $ (944 ) $ 326 $ (618 ) $ — $ (618 ) Basic and diluted earnings (loss) per share: Continuing operations $ (0.07 ) $ 0.03 $ (0.04 ) $ 0.18 $ 0.14 Discontinued operations — — — (0.18 ) (0.18 ) Basic and diluted earnings (loss) per share $ (0.07 ) $ 0.03 $ (0.04 ) $ — $ (0.04 ) Basic weighted average shares outstanding 13,813 — 13,813 — 13,813 Diluted weighted average shares outstanding 13,813 — 13,813 13 13,826 CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY Class A common stock Class B common stock Capital in excess of par value Treasury stock Retained earnings Accumulated other comprehensive income (loss) Total stockholders' equity As Previously Reported Balance, January 1, 2019 $ 93 $ 44 $ 51,714 $ — $ 30,897 $ (17,310 ) $ 65,438 Net loss — — — — (2,705 ) — (2,705 ) Issuance of common stock, net of conversions 2 — (1 ) — — — 1 Purchase of treasury stock — — — (2,334 ) — — (2,334 ) Share-based compensation expense — — 1,629 — — — 1,629 Cash dividends, $0.085 per share — — — — (2,419 ) — (2,419 ) Other comprehensive loss — — — — — (751 ) (751 ) Reclassification adjustment to net loss — — — — — 238 238 Balance, June 30, 2019 $ 95 $ 44 $ 53,342 $ (2,334 ) $ 25,773 $ (17,823 ) $ 59,097 Restatement Impacts Balance, January 1, 2019 $ — $ — $ — $ — $ (8,829 ) $ 209 $ (8,620 ) Net loss — — — — (1,298 ) — (1,298 ) Issuance of common stock, net of conversions — — — — — — — Purchase of treasury stock — — — — — — — Share-based compensation expense — — — — — — — Cash dividends, $0.085 per share — — — — — — — Other comprehensive loss — — — — — (85 ) (85 ) Reclassification adjustment to net loss — — — — — 94 94 Balance, June 30, 2019 $ — $ — $ — $ — $ (10,127 ) $ 218 $ (9,909 ) As Restated Balance, January 1, 2019 $ 93 $ 44 $ 51,714 $ — $ 22,068 $ (17,101 ) $ 56,818 Net loss — — — — (4,003 ) — (4,003 ) Issuance of common stock, net of conversions 2 — (1 ) — — — 1 Purchase of treasury stock — — — (2,334 ) — — (2,334 ) Share-based compensation expense — — 1,629 — — — 1,629 Cash dividends, $0.085 per share — — — — (2,419 ) — (2,419 ) Other comprehensive loss — — — — — (835 ) (835 ) Reclassification adjustment to net loss — — — — — 332 332 Balance, June 30, 2019 $ 95 $ 44 $ 53,342 $ (2,334 ) $ 15,646 $ (17,604 ) $ 49,189 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS June 30, 2019 As Previously Reported Restatement Impacts As Restated Recasting Impacts As Restated and Recast Operating activities Net income (loss) from continuing operations $ (2,705 ) $ (1,298 ) $ (4,003 ) $ 5,239 $ 1,236 Adjustments to reconcile net income from continuing operations to net cash provided by operating activities: Depreciation and amortization 2,153 — 2,153 (312 ) 1,841 Deferred income taxes 1,800 57 1,857 43 1,900 Stock compensation expense 1,629 — 1,629 — 1,629 Other 117 (11 ) 106 (29 ) 77 Net changes in operating assets and liabilities: Affiliate payable (2,199 ) (1 ) (2,200 ) 5 (2,195 ) Trade receivables 13,956 (128 ) 13,828 (906 ) 12,922 Inventory 4,375 210 4,585 (2,649 ) 1,936 Other assets (133 ) (214 ) (347 ) (1,255 ) (1,602 ) Accounts payable (41,259 ) (9 ) (41,268 ) 8,166 (33,102 ) Other liabilities (19,841 ) 1,412 (18,429 ) 2,141 (16,288 ) Net cash provided by (used for) operating activities from continuing operations (42,107 ) 18 (42,089 ) 10,443 (31,646 ) Investing activities Expenditures for property, plant and equipment (2,091 ) — (2,091 ) 119 (1,972 ) Other 36 — 36 (36 ) — Net cash used for investing activities from continuing operations (2,055 ) — (2,055 ) 83 (1,972 ) Financing activities Net additions (reductions) to revolving credit agreements 44,302 — 44,302 (9,450 ) 34,852 Purchase of treasury stock (2,334 ) — (2,334 ) — (2,334 ) Cash dividends paid (2,419 ) — (2,419 ) — (2,419 ) Net cash provided by (used for) financing activities from continuing operations 39,549 — 39,549 (9,450 ) 30,099 Cash flows from discontinued operations Net cash used for operating activities from discontinued operations — — — (10,443 ) (10,443 ) Net cash used for investing activities from discontinued operations — — — (83 ) (83 ) Net cash used for financing activities from discontinued operations — — — 9,450 9,450 Cash provided by (used for) discontinued operations — — — (1,076 ) (1,076 ) Effect of exchange rate changes on cash (608 ) (18 ) (626 ) — (626 ) Cash and Cash Equivalents (Decrease) increase for the year from continuing operations (5,221 ) — (5,221 ) 1,076 (4,145 ) Increase (decrease) for the year from discontinued operations — — — (1,076 ) (1,076 ) Balance at the beginning of the year 6,352 — 6,352 — 6,352 Balance at the end of the period $ 1,131 $ — $ 1,131 $ — $ 1,131 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS For the Six Months Ended June 30, 2019 As Previously Reported Restatement Impacts Restatement References As Restated Recasting Impacts As Restated and Recast (In thousands) Revenue $ 293,804 $ 1,439 c,f $ 295,243 $ (37,536 ) $ 257,707 Cost of sales 223,424 (65 ) f 223,359 (20,861 ) 202,498 Gross profit 70,380 1,504 71,884 (16,675 ) 55,209 Selling, general and administrative expenses 72,124 2,566 a,c,f 74,690 (23,468 ) 51,222 Amortization of intangible assets 691 — 691 — 691 Operating profit (loss) (2,435 ) (1,062 ) (3,497 ) 6,793 3,296 Interest expense, net 1,650 — 1,650 (198 ) 1,452 Other expense (income), net (458 ) 144 f (314 ) (15 ) (329 ) Income (loss) from continuing operations before income taxes (3,627 ) (1,206 ) (4,833 ) 7,006 2,173 Income tax expense (benefit) (922 ) 92 e (830 ) 1,767 937 Net income (loss) from continuing operations (2,705 ) (1,298 ) (4,003 ) 5,239 1,236 Loss from discontinued operations, net of tax — — — (5,239 ) (5,239 ) Net loss $ (2,705 ) $ (1,298 ) $ (4,003 ) $ — $ (4,003 ) Basic and diluted earnings (loss) per share: Continuing operations $ (0.20 ) $ (0.09 ) $ (0.29 ) $ 0.38 $ 0.09 Discontinued operations — — — (0.38 ) (0.38 ) Basic and diluted earnings (loss) per share $ (0.20 ) $ (0.09 ) $ (0.29 ) $ — $ (0.29 ) Basic weighted average shares outstanding 13,800 — 13,800 — 13,800 Diluted weighted average shares outstanding 13,800 — 13,800 13 13,813 CONDENSED CONSOLIDATED BALANCE SHEETS December 31, 2019 As Previously Reported Restatement Impacts Restatement Reference As Restated (In thousands) Assets Current assets Cash and cash equivalents $ 2,142 $ — $ 2,142 Trade receivables, net 113,781 (5,400 ) a,b,d 108,381 Inventory 109,621 185 f 109,806 Prepaid expenses and other current assets 23,102 (11,757 ) a,b,f 11,345 Current assets of discontinued operations 5,383 — 5,383 Total current assets 254,029 (16,972 ) 237,057 Property, plant and equipment, net 22,324 — 22,324 Goodwill 6,253 — 6,253 Other intangible assets, net 3,141 — 3,141 Deferred income taxes 3,853 2,395 e 6,248 Deferred costs 10,941 — 10,941 Other non-current assets 2,085 — 2,085 Non-current assets of discontinued operations 614 — 614 Total assets $ 303,240 $ (14,577 ) $ 288,663 Liabilities and stockholders' equity Current liabilities Accounts payable $ 111,117 $ 231 f $ 111,348 Accounts payable to NACCO Industries, Inc. 496 — 496 Revolving credit agreements 23,497 — 23,497 Accrued compensation 14,277 750 f 15,027 Accrued product returns 8,697 — 8,697 Other current liabilities 12,873 (339 ) a,e 12,534 Current liabilities of discontinued operations 29,723 — 29,723 Total current liabilities 200,680 642 201,322 Revolving credit agreements 35,000 — 35,000 Other long-term liabilities 12,501 3,574 e 16,075 Total liabilities 248,181 4,216 252,397 Stockholders’ equity Preferred stock, par value $0.01 per share — — — Class A Common stock, par value $0.01 per share; 9,805 shares issued as of December 31, 2019 98 — 98 Class B Common stock, par value $0.01 per share, convertible into Class A on a one-for-one basis; 4,076 shares issued as of December 31, 2019 41 — 41 Capital in excess of par value 54,344 165 f 54,509 Treasury stock (5,960 ) — (5,960 ) Retained earnings 22,524 (18,814 ) a,b,d,e,f 3,710 Accumulated other comprehensive loss (15,988 ) (144 ) a,b,d,e (16,132 ) Total stockholders’ equity 55,059 (18,793 ) 36,266 Total liabilities and stockholders' equity $ 303,240 $ (14,577 ) $ 288,663 CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) For the Six Months Ended June 30, 2019 As Previously Reported Restatement Impacts As Restated (In thousands) Net income (loss) $ (2,705 ) $ (1,298 ) $ (4,003 ) Other comprehensive income (loss), net of tax: Foreign currency translation adjustment 556 (229 ) 327 Gain on long-term intra-entity foreign currency transactions 136 — 136 Cash flow hedging activity (1,443 ) 144 (1,299 ) Reclassification of hedging activities into earnings 146 — 146 Pension plan adjustment — — — Reclassification of pension adjustments into earnings 92 94 186 Total other comprehensive loss, net of tax (513 ) 9 (504 ) Comprehensive income (loss) $ (3,218 ) $ (1,289 ) $ (4,507 ) CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) For the Three Months Ended June 30, 2019 As Previously Reported Restatement Impacts As Restated (In thousands) Net income (loss) $ (944 ) $ 326 $ (618 ) Other comprehensive income (loss), net of tax: Foreign currency translation adjustment 226 (113 ) 113 Gain on long-term intra-entity foreign currency transactions 121 — 121 Cash flow hedging activity (877 ) — (877 ) Reclassification of hedging activities into earnings 144 — 144 Pension plan adjustment — — — Reclassification of pension adjustments into earnings 102 — 102 Total other comprehensive loss, net of tax (284 ) (113 ) (397 ) Comprehensive income (loss) $ (1,228 ) $ 213 $ (1,015 ) CONDENSED CONSOLIDATED BALANCE SHEETS ` June 30, 2019 As Previously Reported Restatement Impacts Restatement Reference As Restated Recasting Impacts As Restated and Recast (In thousands) Assets Current assets Cash and cash equivalents $ 1,131 $ — $ 1,131 $ (102 ) $ 1,029 Trade receivables, net 89,579 (2,446 ) a,f 87,133 (865 ) 86,268 Inventory 140,817 — 140,817 (19,345 ) 121,472 Prepaid expenses and other current assets 24,078 (6,723 ) a 17,355 (943 ) 16,412 Current assets of discontinued operations — — — 21,255 21,255 Total current assets 255,605 (9,169 ) 246,436 — 246,436 Property, plant and equipment, net 23,204 — 23,204 (1,555 ) 21,649 Goodwill 6,253 — 6,253 — 6,253 Other intangible assets, net 3,828 — 3,828 — 3,828 Deferred income taxes 6,169 318 e 6,487 (2,733 ) 3,754 Deferred costs 8,683 — 8,683 (119 ) 8,564 Other non-current assets 1,997 — 1,997 (13 ) 1,984 Non-current assets of discontinued operations — — — 4,420 4,420 Total assets $ 305,739 $ (8,851 ) $ 296,888 $ — $ 296,888 Liabilities and stockholders' equity Current liabilities Accounts payable $ 91,737 $ — $ 91,737 $ (5,538 ) $ 86,199 Accounts payable to NACCO Industries, Inc. 220 — 220 — 220 Revolving credit agreements 58,955 — 58,955 (7,450 ) 51,505 Accrued compensation 12,091 387 f 12,478 (753 ) 11,725 Accrued product returns 8,224 — 8,224 — 8,224 Other current liabilities 27,930 (241 ) a,d,e,f 27,689 (6,307 ) 21,382 Current liabilities of discontinued operations — — — 20,048 20,048 Total current liabilities 199,157 146 199,303 — 199,303 Revolving credit agreements 32,000 — 32,000 (2,000 ) 30,000 Other long-term liabilities 15,485 911 e 16,396 (1,697 ) 14,699 Non-current liabilities of discontinued operations — — — 3,697 3,697 Total liabilities 246,642 1,057 247,699 — 247,699 Stockholders’ equity Class A Common stock 95 — 95 — 95 Class B Common stock 44 — 44 — 44 Capital in excess of par value 53,342 — 53,342 — 53,342 Treasury stock (2,334 ) — (2,334 ) — (2,334 ) Retained earnings 25,773 (10,127 ) a,d,e,f 15,646 — 15,646 Accumulated other comprehensive loss (17,823 ) 219 a,d (17,604 ) — (17,604 ) Total stockholders’ equity 59,097 (9,908 ) 49,189 — 49,189 Total liabilities and stockholders' equity $ 305,739 $ (8,851 ) $ 296,888 $ — $ 296,888 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | The major line items constituting the income (loss) from discontinued operations, net of tax are as follows: THREE MONTHS ENDED June 30, SIX MONTHS ENDED June 30, 2020 2019 2020 2019 (In thousands) Revenue $ — $ 18,283 631 37,536 Cost of sales — 10,212 — 20,861 Gross profit — 8,071 631 16,675 Selling, general and administrative expenses 299 11,235 1,346 23,468 Adjustment of lease termination liability (1) — — (16,457 ) — Adjustment of other current liabilities (2) — — (6,608 ) — Operating income (loss) (299 ) (3,164 ) 22,350 (6,793 ) Interest expense — 115 198 Other expense, net 88 6 88 15 Income (loss) from discontinued operations before income taxes (387 ) (3,285 ) 22,262 (7,006 ) Income tax benefit (82 ) (769 ) (299 ) (1,767 ) Income (loss) from discontinued operations, net of tax $ (305 ) $ (2,516 ) $ 22,561 $ (5,239 ) (1) Represents an adjustment to the estimated timing and amount of estimated cash flows underlying the lease termination obligation at March 31, 2020, calculated based on the final distribution of KC's remaining assets on April 3, 2020. The lease termination obligation is measured at fair value using significant observable inputs, which is Level 2 as defined in the fair value hierarchy. (2) Represents an adjustment to the carrying value of substantially all of the other current liabilities at March 31, 2020, calculated based on the final distribution of KC's remaining assets on April 3, 2020. DECEMBER 31 JUNE 30 Assets Cash and cash equivalents $ 5,022 $ 102 Inventory — 19,345 Prepaid expenses and other current assets 361 1,808 Current assets of discontinued operations $ 5,383 $ 21,255 Property, plant and equipment, net — 1,555 Deferred income taxes $ 614 $ 2,733 Other non-current assets — 132 Non-current assets of discontinued operations $ 614 $ 4,420 Liabilities Accounts payable $ 4,594 $ 5,538 Revolving credit agreement — 7,450 Lease termination liability 17,248 — Other current liabilities 7,881 7,060 Current liabilities of discontinued operations $ 29,723 $ 20,048 Other long-term liabilities — 3,697 Non-current liabilities of discontinued operations $ — $ 3,697 |
Fair Value Disclosure (Tables)
Fair Value Disclosure (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents the Company's assets and liabilities accounted for at fair value on a recurring basis: Description Balance Sheet Location JUNE 30 DECEMBER 31 JUNE 30 Assets: Interest rate swap agreements Current Prepaid expenses and other current assets $ — $ — $ 69 Foreign currency exchange contracts Current Prepaid expenses and other current assets 39 — — $ 39 $ — $ 69 Liabilities: Interest rate swap agreements Current Other current liabilities $ 390 $ 21 $ — Long-term Other long-term liabilities 948 61 51 Foreign currency exchange contracts Current Other current liabilities — 308 357 $ 1,338 $ 390 $ 408 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Schedule of Capital Stock | JUNE 30 DECEMBER 31 JUNE 30 (In thousands) Preferred stock, par value $0.01 per share Preferred stock authorized 5,000 5,000 5,000 Preferred stock outstanding — — — Class A Common stock, par value $0.01 per share Class A Common stock authorized 70,000 70,000 70,000 Class A Common issued (1)(2) 9,946 9,805 9,469 Treasury Stock 365 365 130 Class B Common stock, par value $0.01 per share, convertible into Class A on a one-for-one basis Class B Common stock authorized 30,000 30,000 30,000 Class B Common issued (1) 4,063 4,076 4,383 (1) Class B Common converted to Class A Common were 10 and 13 shares during the three and six months ending June 30, 2020 , respectively, and 2 and 39 during the three and six months ending June 30, 2019 , respectively. (2) The Company issued Class A Common shares of 20 and 128 during the three and six months ending June 30, 2020 , respectively, and 10 and 139 during the three and six months ending June 30, 2019 , respectively. |
Schedule of Accumulated Other Comprehensive Income (Loss) Reclassifications | Accumulated Other Comprehensive Loss: The following table summarizes changes in accumulated other comprehensive loss by component and related tax effects for periods shown: Foreign Currency Deferred Gain (Loss) on Cash Flow Hedging Pension Plan Adjustment Total As Restated Balance, January 1, 2020 $ (8,221 ) $ (341 ) $ (7,570 ) $ (16,132 ) Other comprehensive loss (4,985 ) (171 ) — (5,156 ) Reclassification adjustment to net loss — 154 239 393 Tax effects 1,132 (35 ) (44 ) 1,053 Balance, March 31, 2020 $ (12,074 ) $ (393 ) $ (7,375 ) $ (19,842 ) Other comprehensive income (loss) 742 137 — 879 Reclassification adjustment to net income (loss) — (489 ) 140 (349 ) Tax effects (223 ) 97 (43 ) (169 ) Balance, June 30, 2020 $ (11,555 ) $ (648 ) $ (7,278 ) $ (19,481 ) As Restated Balance, January 1, 2019 $ (8,652 ) $ 879 $ (9,328 ) $ (17,101 ) Other comprehensive income (loss) 246 (631 ) — (385 ) Reclassification adjustment to net income (loss) — 4 45 49 Tax effects (17 ) 207 39 229 As Restated Balance, March 31, 2019 $ (8,423 ) $ 459 $ (9,244 ) $ (17,208 ) Other comprehensive income (loss) 248 (1,198 ) — (950 ) Reclassification adjustment to net income (loss) — 202 142 344 Tax effects (13 ) 263 (40 ) 210 As Restated Balance, June 30, 2019 $ (8,188 ) $ (274 ) $ (9,142 ) $ (17,604 ) |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Disaggregation of Revenue | The following table sets forth Company's revenue on a disaggregated basis for the three and six months ended June 30: THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, As Restated and Recast As Restated and Recast 2020 2019 2020 2019 Type of good or service: Products $ 136,816 $ 129,820 $ 256,451 $ 255,381 Licensing 1,481 1,245 2,692 2,326 Total revenues $ 138,297 $ 131,065 $ 259,143 $ 257,707 |
Basis of Presentation Basis of
Basis of Presentation Basis of Presentation (Details) $ in Millions | Mar. 31, 2020USD ($) |
HBB | |
Debt Instrument [Line Items] | |
Senior secured floating-rate revolving credit facility | $ 115 |
Restatement of Previously Iss_3
Restatement of Previously Issued Financial Statements - Balance Sheets (Details) $ / shares in Units, shares in Thousands, $ in Thousands | Jun. 30, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Jun. 30, 2019USD ($)$ / sharesshares |
Current assets | |||
Cash and cash equivalents | $ 1,616 | $ 2,142 | $ 1,029 |
Trade receivables, net | 85,209 | 108,381 | 86,268 |
Inventory | 90,572 | 109,806 | 121,472 |
Prepaid expenses and other current assets | 13,358 | 11,345 | 16,412 |
Current assets of discontinued operations | 0 | 5,383 | 21,255 |
Total current assets | 190,755 | 237,057 | 246,436 |
Property, plant and equipment, net | 23,064 | 22,324 | 21,649 |
Goodwill | 6,253 | 6,253 | 6,253 |
Other intangible assets, net | 2,494 | 3,141 | 3,828 |
Deferred income taxes | 5,830 | 6,248 | 3,754 |
Deferred costs | 11,532 | 10,941 | 8,564 |
Other non-current assets | 2,673 | 2,085 | 1,984 |
Non-current assets of discontinued operations | 0 | 614 | 4,420 |
Total assets | 242,601 | 288,663 | 296,888 |
Current liabilities | |||
Accounts payable | 92,282 | 111,348 | 86,199 |
Accounts payable to NACCO Industries, Inc. | 496 | 496 | 220 |
Revolving credit agreements | 41,785 | 23,497 | 51,505 |
Accrued compensation | 11,362 | 15,027 | 11,725 |
Accrued product returns | 7,383 | 8,697 | 8,224 |
Other current liabilities | 15,242 | 12,534 | 21,382 |
Current liabilities of discontinued operations | 0 | 29,723 | 20,048 |
Total current liabilities | 168,550 | 201,322 | 199,303 |
Revolving credit agreements | 0 | 35,000 | 30,000 |
Other long-term liabilities | 12,499 | 16,075 | 14,699 |
Total liabilities | 181,049 | 252,397 | 247,699 |
Stockholders' equity | |||
Preferred stock, par value $0.01 per share | 0 | ||
Capital in excess of par value | 56,325 | 54,509 | 53,342 |
Treasury stock | (5,960) | (5,960) | (2,334) |
Retained earnings | 30,528 | 3,710 | 15,646 |
Accumulated other comprehensive loss | (19,481) | (16,132) | (17,604) |
Total stockholders' equity | 61,552 | 36,266 | 49,189 |
Total liabilities and stockholders' equity | $ 242,601 | $ 288,663 | $ 296,888 |
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 |
Non-current liabilities of discontinued operations | $ 0 | $ 0 | $ 3,697 |
Class A Common Stock | |||
Stockholders' equity | |||
Common stock | $ 99 | $ 98 | $ 95 |
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares issued (in shares) | shares | 9,946 | 9,805 | 9,469 |
Class B Common Stock | |||
Stockholders' equity | |||
Common stock | $ 41 | $ 41 | $ 44 |
Capital in excess of par value | 53,342 | ||
Treasury stock | $ (2,334) | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares issued (in shares) | shares | 4,063 | 4,076 | 4,383 |
Common stock, convertible conversion ratio | 1 | 1 | 1 |
As Previously Reported | |||
Current assets | |||
Cash and cash equivalents | $ 2,142 | $ 1,131 | |
Trade receivables, net | 113,781 | 89,579 | |
Inventory | 109,621 | 140,817 | |
Prepaid expenses and other current assets | 23,102 | 24,078 | |
Current assets of discontinued operations | 5,383 | 0 | |
Total current assets | 254,029 | 255,605 | |
Property, plant and equipment, net | 22,324 | 23,204 | |
Goodwill | 6,253 | 6,253 | |
Other intangible assets, net | 3,141 | 3,828 | |
Deferred income taxes | 3,853 | 6,169 | |
Deferred costs | 10,941 | 8,683 | |
Other non-current assets | 2,085 | 1,997 | |
Non-current assets of discontinued operations | 614 | 0 | |
Total assets | 303,240 | 305,739 | |
Current liabilities | |||
Accounts payable | 111,117 | 91,737 | |
Accounts payable to NACCO Industries, Inc. | 496 | 220 | |
Revolving credit agreements | 23,497 | 58,955 | |
Accrued compensation | 14,277 | 12,091 | |
Accrued product returns | 8,697 | 8,224 | |
Other current liabilities | 12,873 | 27,930 | |
Current liabilities of discontinued operations | 29,723 | 0 | |
Total current liabilities | 200,680 | 199,157 | |
Revolving credit agreements | 35,000 | 32,000 | |
Other long-term liabilities | 12,501 | 15,485 | |
Total liabilities | 248,181 | 246,642 | |
Stockholders' equity | |||
Preferred stock, par value $0.01 per share | 0 | ||
Capital in excess of par value | 54,344 | ||
Treasury stock | (5,960) | ||
Retained earnings | 22,524 | 25,773 | |
Accumulated other comprehensive loss | (15,988) | (17,823) | |
Total stockholders' equity | 55,059 | 59,097 | |
Total liabilities and stockholders' equity | $ 303,240 | 305,739 | |
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | ||
Non-current liabilities of discontinued operations | 0 | ||
As Previously Reported | Class A Common Stock | |||
Stockholders' equity | |||
Common stock | $ 98 | 95 | |
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | ||
Common stock, shares issued (in shares) | shares | 9,805 | ||
As Previously Reported | Class B Common Stock | |||
Stockholders' equity | |||
Common stock | $ 41 | 44 | |
Capital in excess of par value | 53,342 | ||
Treasury stock | (2,334) | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | ||
Common stock, shares issued (in shares) | shares | 4,076 | ||
Common stock, convertible conversion ratio | 1 | ||
Restatement Impacts | |||
Current assets | |||
Cash and cash equivalents | $ 0 | 0 | |
Trade receivables, net | (5,400) | (2,446) | |
Inventory | 185 | 0 | |
Prepaid expenses and other current assets | (11,757) | (6,723) | |
Current assets of discontinued operations | 0 | 0 | |
Total current assets | (16,972) | (9,169) | |
Property, plant and equipment, net | 0 | 0 | |
Goodwill | 0 | 0 | |
Other intangible assets, net | 0 | 0 | |
Deferred income taxes | 2,395 | 318 | |
Deferred costs | 0 | 0 | |
Other non-current assets | 0 | 0 | |
Non-current assets of discontinued operations | 0 | 0 | |
Total assets | (14,577) | (8,851) | |
Current liabilities | |||
Accounts payable | 231 | 0 | |
Accounts payable to NACCO Industries, Inc. | 0 | 0 | |
Revolving credit agreements | 0 | 0 | |
Accrued compensation | 750 | 387 | |
Accrued product returns | 0 | 0 | |
Other current liabilities | (339) | (241) | |
Current liabilities of discontinued operations | 0 | 0 | |
Total current liabilities | 642 | 146 | |
Revolving credit agreements | 0 | 0 | |
Other long-term liabilities | 3,574 | 911 | |
Total liabilities | 4,216 | 1,057 | |
Stockholders' equity | |||
Preferred stock, par value $0.01 per share | 0 | ||
Capital in excess of par value | 165 | ||
Treasury stock | 0 | ||
Retained earnings | (18,814) | (10,127) | |
Accumulated other comprehensive loss | (144) | 219 | |
Total stockholders' equity | (18,793) | (9,908) | |
Total liabilities and stockholders' equity | $ (14,577) | (8,851) | |
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | ||
Non-current liabilities of discontinued operations | 0 | ||
Restatement Impacts | Class A Common Stock | |||
Stockholders' equity | |||
Common stock | $ 0 | 0 | |
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | ||
Common stock, shares issued (in shares) | shares | 9,805 | ||
Restatement Impacts | Class B Common Stock | |||
Stockholders' equity | |||
Common stock | $ 0 | 0 | |
Capital in excess of par value | 0 | ||
Treasury stock | 0 | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | ||
Common stock, shares issued (in shares) | shares | 4,076 | ||
Common stock, convertible conversion ratio | 1 | ||
As Restated | |||
Current assets | |||
Cash and cash equivalents | 1,131 | ||
Trade receivables, net | 87,133 | ||
Inventory | 140,817 | ||
Prepaid expenses and other current assets | 17,355 | ||
Current assets of discontinued operations | 0 | ||
Total current assets | 246,436 | ||
Property, plant and equipment, net | 23,204 | ||
Goodwill | 6,253 | ||
Other intangible assets, net | 3,828 | ||
Deferred income taxes | 6,487 | ||
Deferred costs | 8,683 | ||
Other non-current assets | 1,997 | ||
Non-current assets of discontinued operations | 0 | ||
Total assets | 296,888 | ||
Current liabilities | |||
Accounts payable | 91,737 | ||
Accounts payable to NACCO Industries, Inc. | 220 | ||
Revolving credit agreements | 58,955 | ||
Accrued compensation | 12,478 | ||
Accrued product returns | 8,224 | ||
Other current liabilities | 27,689 | ||
Current liabilities of discontinued operations | 0 | ||
Total current liabilities | 199,303 | ||
Revolving credit agreements | 32,000 | ||
Other long-term liabilities | 16,396 | ||
Total liabilities | 247,699 | ||
Stockholders' equity | |||
Retained earnings | 15,646 | ||
Accumulated other comprehensive loss | (17,604) | ||
Total stockholders' equity | 49,189 | ||
Total liabilities and stockholders' equity | 296,888 | ||
Non-current liabilities of discontinued operations | 0 | ||
As Restated | Class A Common Stock | |||
Stockholders' equity | |||
Common stock | 95 | ||
As Restated | Class B Common Stock | |||
Stockholders' equity | |||
Common stock | 44 | ||
Capital in excess of par value | 53,342 | ||
Treasury stock | (2,334) | ||
Recasting Impacts | |||
Current assets | |||
Cash and cash equivalents | (102) | ||
Trade receivables, net | (865) | ||
Inventory | (19,345) | ||
Prepaid expenses and other current assets | (943) | ||
Current assets of discontinued operations | 21,255 | ||
Total current assets | 0 | ||
Property, plant and equipment, net | (1,555) | ||
Goodwill | 0 | ||
Other intangible assets, net | 0 | ||
Deferred income taxes | (2,733) | ||
Deferred costs | (119) | ||
Other non-current assets | (13) | ||
Non-current assets of discontinued operations | 4,420 | ||
Total assets | 0 | ||
Current liabilities | |||
Accounts payable | (5,538) | ||
Accounts payable to NACCO Industries, Inc. | 0 | ||
Revolving credit agreements | (7,450) | ||
Accrued compensation | (753) | ||
Accrued product returns | 0 | ||
Other current liabilities | (6,307) | ||
Current liabilities of discontinued operations | 20,048 | ||
Total current liabilities | 0 | ||
Revolving credit agreements | (2,000) | ||
Other long-term liabilities | (1,697) | ||
Total liabilities | 0 | ||
Stockholders' equity | |||
Retained earnings | 0 | ||
Accumulated other comprehensive loss | 0 | ||
Total stockholders' equity | 0 | ||
Total liabilities and stockholders' equity | 0 | ||
Non-current liabilities of discontinued operations | 3,697 | ||
Recasting Impacts | Class A Common Stock | |||
Stockholders' equity | |||
Common stock | 0 | ||
Recasting Impacts | Class B Common Stock | |||
Stockholders' equity | |||
Common stock | 0 | ||
Capital in excess of par value | 0 | ||
Treasury stock | $ 0 |
Restatement of Previously Iss_4
Restatement of Previously Issued Financial Statements - Balance Sheets (Additional Information) (Details) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Increase (decrease) in inventories | $ (17,222) | $ (1,936) | |||
Increase (decrease) in accounts payable | $ (18,871) | (33,102) | |||
Increase (decrease) in selling, general, and administrative expenses | $ (900) | ||||
Restatement Impacts | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Increase (decrease) in inventories | (210) | ||||
Increase (decrease) in accounts payable | (9) | ||||
Write-off of Assets | Restatement Impacts | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Increase (decrease) in trade receivables | $ (1,300) | $ (2,500) | |||
Increase (decrease) in prepaid expenses and other current assets | (6,700) | (12,400) | |||
Increase (decrease) in other current liabilities | 1,400 | 900 | |||
Increase (decrease) in selling, general, and administrative expenses | (300) | 1,100 | |||
Correction for timing and recognition of customer price concessions | Restatement Impacts | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Increase (decrease) in trade receivables | (1,600) | ||||
Increase (decrease) in other current liabilities | 200 | ||||
Reversal of Revenue | Restatement Impacts | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Increase (decrease) in trade receivables | (1,300) | ||||
Increase (decrease) in prepaid expenses and other current assets | 200 | ||||
Tax adjustments related to adjustments | Restatement Impacts | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Increase (decrease) in deferred income taxes | 300 | 2,400 | |||
Increase (decrease) in other current liabilities | (400) | (1,200) | |||
Increase (decrease) in other noncurrent liabilities | 900 | 3,600 | |||
Increase (decrease) to income tax expense | 100 | ||||
Correction of other immaterial errors | Restatement Impacts | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Increase (decrease) in trade receivables | (1,100) | ||||
Increase (decrease) in prepaid expenses and other current assets | 500 | ||||
Increase (decrease) in other current liabilities | (1,400) | ||||
Increase (decrease) in inventories | 200 | ||||
Increase (decrease) in accounts payable | 200 | ||||
Increase (decrease) in accrued compensation | $ 400 | 700 | |||
Increase (decrease) to capital in excess of par | $ 200 | ||||
Increase (decrease) in selling, general, and administrative expenses | 200 | ||||
Increase (decrease) in revenue | 100 | ||||
Increase (decrease) to cost of sales | (100) | ||||
Increase (decrease) in other expense | $ (100) |
Restatement of Previously Iss_5
Restatement of Previously Issued Financial Statements - Statements of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Revenue | $ 138,297 | $ 131,065 | $ 259,143 | $ 257,707 | ||
Cost of sales | 103,043 | 102,558 | 198,849 | 202,498 | ||
Gross profit | 35,254 | 28,507 | 60,294 | 55,209 | ||
Selling, general and administrative expenses | 24,035 | 24,976 | 48,248 | 51,222 | ||
Amortization of intangible assets | 324 | 346 | 648 | 691 | ||
Operating profit | 10,895 | 3,185 | 11,398 | 3,296 | ||
Interest expense, net | 366 | 789 | 969 | 1,452 | ||
Other expense (income), net | (193) | (132) | 1,509 | (329) | ||
Income (loss) from continuing operations before income taxes | 10,722 | 2,528 | 8,920 | 2,173 | ||
Income tax expense (benefit) | 2,657 | 630 | 2,209 | 937 | ||
Net income (loss) from continuing operations | 8,065 | 1,898 | 6,711 | 1,236 | ||
Income (loss) from discontinued operations, net of tax | (305) | (2,516) | 22,561 | (5,239) | ||
Net income (loss) | $ 7,760 | $ 21,512 | $ (618) | $ (3,385) | $ 29,272 | $ (4,003) |
Earnings Per Share, Basic and Diluted [Abstract] | ||||||
Basic and diluted earnings (loss) per share, continuing operations (in usd per share) | $ 0.59 | $ 0.14 | $ 0.49 | $ 0.09 | ||
Basic and diluted earnings (loss) per share, discontinued operations (in usd per share) | (0.02) | (0.18) | 1.65 | (0.38) | ||
Basic and diluted earnings per share (in dollars per share) | $ 0.57 | $ (0.04) | $ 2.14 | $ (0.29) | ||
Basic weighted average shares outstanding (in shares) | 13,644,000 | 13,813,000 | 13,635,000 | 13,800,000 | ||
Diluted weighted average shares outstanding (in shares) | 13,670,000 | 13,826,000 | 13,657,000 | 13,813,000 | ||
As Previously Reported | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Revenue | $ 148,427 | $ 293,804 | ||||
Cost of sales | 112,770 | 223,424 | ||||
Gross profit | 35,657 | 70,380 | ||||
Selling, general and administrative expenses | 35,617 | 72,124 | ||||
Amortization of intangible assets | 346 | 691 | ||||
Operating profit | (306) | (2,435) | ||||
Interest expense, net | 904 | 1,650 | ||||
Other expense (income), net | (126) | (458) | ||||
Income (loss) from continuing operations before income taxes | (1,084) | (3,627) | ||||
Income tax expense (benefit) | (140) | (922) | ||||
Net income (loss) from continuing operations | (944) | (2,705) | ||||
Income (loss) from discontinued operations, net of tax | 0 | 0 | ||||
Net income (loss) | $ (944) | $ (2,705) | ||||
Earnings Per Share, Basic and Diluted [Abstract] | ||||||
Basic and diluted earnings (loss) per share, continuing operations (in usd per share) | $ (0.07) | $ (0.20) | ||||
Basic and diluted earnings (loss) per share, discontinued operations (in usd per share) | 0 | 0 | ||||
Basic and diluted earnings per share (in dollars per share) | $ (0.07) | $ (0.20) | ||||
Basic weighted average shares outstanding (in shares) | 13,813,000 | 13,800,000 | ||||
Diluted weighted average shares outstanding (in shares) | 13,813,000 | 13,800,000 | ||||
Restatement Impacts | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Revenue | $ 921 | $ 1,439 | ||||
Cost of sales | 0 | (65) | ||||
Gross profit | 921 | 1,504 | ||||
Selling, general and administrative expenses | 594 | 2,566 | ||||
Amortization of intangible assets | 0 | 0 | ||||
Operating profit | 327 | (1,062) | ||||
Interest expense, net | 0 | 0 | ||||
Other expense (income), net | 0 | 144 | ||||
Income (loss) from continuing operations before income taxes | 327 | (1,206) | ||||
Income tax expense (benefit) | 1 | 92 | ||||
Net income (loss) from continuing operations | 326 | (1,298) | ||||
Income (loss) from discontinued operations, net of tax | 0 | 0 | ||||
Net income (loss) | $ 326 | $ (1,298) | ||||
Earnings Per Share, Basic and Diluted [Abstract] | ||||||
Basic and diluted earnings (loss) per share, continuing operations (in usd per share) | $ 0.03 | $ (0.09) | ||||
Basic and diluted earnings (loss) per share, discontinued operations (in usd per share) | 0 | 0 | ||||
Basic and diluted earnings per share (in dollars per share) | $ 0.03 | $ (0.09) | ||||
Basic weighted average shares outstanding (in shares) | 0 | 0 | ||||
Diluted weighted average shares outstanding (in shares) | 0 | 0 | ||||
As Restated | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Revenue | $ 149,348 | $ 295,243 | ||||
Cost of sales | 112,770 | 223,359 | ||||
Gross profit | 36,578 | 71,884 | ||||
Selling, general and administrative expenses | 36,211 | 74,690 | ||||
Amortization of intangible assets | 346 | 691 | ||||
Operating profit | 21 | (3,497) | ||||
Interest expense, net | 904 | 1,650 | ||||
Other expense (income), net | (126) | (314) | ||||
Income (loss) from continuing operations before income taxes | (757) | (4,833) | ||||
Income tax expense (benefit) | (139) | (830) | ||||
Net income (loss) from continuing operations | (618) | (4,003) | ||||
Income (loss) from discontinued operations, net of tax | 0 | 0 | ||||
Net income (loss) | $ (618) | $ (4,003) | ||||
Earnings Per Share, Basic and Diluted [Abstract] | ||||||
Basic and diluted earnings (loss) per share, continuing operations (in usd per share) | $ (0.04) | $ (0.29) | ||||
Basic and diluted earnings (loss) per share, discontinued operations (in usd per share) | 0 | 0 | ||||
Basic and diluted earnings per share (in dollars per share) | $ (0.04) | $ (0.29) | ||||
Basic weighted average shares outstanding (in shares) | 13,813,000 | 13,800,000 | ||||
Diluted weighted average shares outstanding (in shares) | 13,813,000 | 13,800,000 | ||||
Recasting Impacts | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Revenue | $ (18,283) | $ (37,536) | ||||
Cost of sales | (10,212) | (20,861) | ||||
Gross profit | (8,071) | (16,675) | ||||
Selling, general and administrative expenses | (11,235) | (23,468) | ||||
Amortization of intangible assets | 0 | 0 | ||||
Operating profit | 3,164 | 6,793 | ||||
Interest expense, net | (115) | (198) | ||||
Other expense (income), net | (6) | (15) | ||||
Income (loss) from continuing operations before income taxes | 3,285 | 7,006 | ||||
Income tax expense (benefit) | 769 | 1,767 | ||||
Net income (loss) from continuing operations | 2,516 | 5,239 | ||||
Income (loss) from discontinued operations, net of tax | (2,516) | (5,239) | ||||
Net income (loss) | $ 0 | $ 0 | ||||
Earnings Per Share, Basic and Diluted [Abstract] | ||||||
Basic and diluted earnings (loss) per share, continuing operations (in usd per share) | $ 0.18 | $ 0.38 | ||||
Basic and diluted earnings (loss) per share, discontinued operations (in usd per share) | (0.18) | (0.38) | ||||
Basic and diluted earnings per share (in dollars per share) | $ 0 | $ 0 | ||||
Basic weighted average shares outstanding (in shares) | 0 | 0 | ||||
Diluted weighted average shares outstanding (in shares) | 13,000 | 13,000 |
Restatement of Previously Iss_6
Restatement of Previously Issued Financial Statements - Statements of Operations (Additional Information) (Details) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2019 | Jun. 30, 2019 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Increase (decrease) in selling, general, and administrative expenses | $ (0.9) | ||
Write-off of Assets | Restatement Impacts | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Increase (decrease) in selling, general, and administrative expenses | $ (0.3) | $ 1.1 | |
Correction of misclassification of selling and marketing expenses | Restatement Impacts | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Increase (decrease) in selling, general, and administrative expenses | $ 0.9 | 1.3 | |
Tax adjustments related to adjustments | Restatement Impacts | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Increase (decrease) to income tax expense | 0.1 | ||
Correction of other immaterial errors | Restatement Impacts | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Increase (decrease) to cost of sales | (0.1) | ||
Increase (decrease) in other expense | (0.1) | ||
Increase (decrease) in revenue | 0.1 | ||
Increase (decrease) in selling, general, and administrative expenses | $ 0.2 |
Restatement of Previously Iss_7
Restatement of Previously Issued Financial Statements - Statements of Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Net income (loss) | $ 7,760 | $ 21,512 | $ (618) | $ (3,385) | $ 29,272 | $ (4,003) |
Foreign currency translation adjustment | 488 | 113 | 1,545 | 327 | ||
(Loss) gain on long-term intra-entity foreign currency transactions | 31 | 121 | (4,879) | 136 | ||
Cash flow hedging activity | 137 | (877) | (25) | (1,299) | ||
Reclassification of hedging activities into earnings | (392) | 144 | (282) | 146 | ||
Pension plan adjustment | 0 | 0 | ||||
Reclassification of pension adjustments into earnings | 97 | 102 | 292 | 186 | ||
Total other comprehensive loss, net of tax | 361 | (397) | (3,349) | (504) | ||
Comprehensive income (loss) | $ 8,121 | (1,015) | $ 25,923 | (4,507) | ||
As Previously Reported | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Net income (loss) | (944) | (2,705) | ||||
Foreign currency translation adjustment | 226 | 556 | ||||
(Loss) gain on long-term intra-entity foreign currency transactions | 121 | 136 | ||||
Cash flow hedging activity | (877) | (1,443) | ||||
Reclassification of hedging activities into earnings | 144 | 146 | ||||
Pension plan adjustment | 0 | 0 | ||||
Reclassification of pension adjustments into earnings | 102 | 92 | ||||
Total other comprehensive loss, net of tax | (284) | (513) | ||||
Comprehensive income (loss) | (1,228) | (3,218) | ||||
Restatement Impacts | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Net income (loss) | 326 | (1,298) | ||||
Foreign currency translation adjustment | (113) | (229) | ||||
(Loss) gain on long-term intra-entity foreign currency transactions | 0 | 0 | ||||
Cash flow hedging activity | 0 | 144 | ||||
Reclassification of hedging activities into earnings | 0 | 0 | ||||
Pension plan adjustment | 0 | 0 | ||||
Reclassification of pension adjustments into earnings | 0 | 94 | ||||
Total other comprehensive loss, net of tax | (113) | 9 | ||||
Comprehensive income (loss) | $ 213 | $ (1,289) |
Restatement of Previously Iss_8
Restatement of Previously Issued Financial Statements - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Operating activities | |||||
Net income (loss) from continuing operations | $ 8,065 | $ 1,898 | $ 6,711 | $ 1,236 | |
Adjustments to reconcile net income (loss) from continuing operations to net cash used for operating activities: | |||||
Depreciation and amortization | 1,486 | 1,841 | |||
Deferred income taxes | 1,037 | 1,900 | |||
Stock compensation expense | 1,817 | 1,629 | |||
Other | 116 | 77 | |||
Net changes in operating assets and liabilities: | |||||
Affiliate payable | 0 | (2,195) | |||
Trade receivables | 19,079 | 12,922 | |||
Inventory | 17,222 | 1,936 | |||
Other assets | (1,462) | (1,602) | |||
Accounts payable | (18,871) | (33,102) | |||
Other liabilities | (5,383) | (16,288) | |||
Net cash provided by (used for) operating activities from continuing operations | 21,752 | (31,646) | |||
Investing activities | |||||
Expenditures for property, plant and equipment | (1,592) | (1,972) | |||
Other | (500) | 0 | |||
Net cash used for investing activities from continuing operations | (2,092) | (1,972) | |||
Financing activities | |||||
Net additions (reductions) to revolving credit agreements | (16,692) | 34,852 | |||
Purchase of treasury stock | 0 | (2,334) | |||
Cash dividends paid | (2,454) | (2,419) | |||
Net cash provided by (used for) financing activities from continuing operations | (19,146) | 30,099 | |||
Cash flows from discontinued operations | |||||
Net cash used for operating activities from discontinued operations | (6,193) | (10,443) | |||
Net cash provided by investing activities from discontinued operations | 6 | (83) | |||
Net cash provided by financing activities from discontinued operations | 0 | 9,450 | |||
Cash used for discontinued operations | (6,187) | (1,076) | |||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 1,079 | (626) | |||
Cash, cash equivalents and restricted cash | |||||
(Decrease) increase for the year from continuing operations | 1,593 | (4,145) | |||
Increase (decrease) for the year from discontinued operations | (6,187) | (1,076) | |||
Balance at the beginning of the period | 7,164 | 6,352 | $ 6,352 | ||
Balance at the end of the period | $ 2,570 | 1,131 | $ 2,570 | 1,131 | 7,164 |
As Previously Reported | |||||
Operating activities | |||||
Net income (loss) from continuing operations | (944) | (2,705) | |||
Adjustments to reconcile net income (loss) from continuing operations to net cash used for operating activities: | |||||
Depreciation and amortization | 2,153 | ||||
Deferred income taxes | 1,800 | ||||
Stock compensation expense | 1,629 | ||||
Other | 117 | ||||
Net changes in operating assets and liabilities: | |||||
Affiliate payable | (2,199) | ||||
Trade receivables | 13,956 | ||||
Inventory | 4,375 | ||||
Other assets | (133) | ||||
Accounts payable | (41,259) | ||||
Other liabilities | (19,841) | ||||
Net cash provided by (used for) operating activities from continuing operations | (42,107) | ||||
Investing activities | |||||
Expenditures for property, plant and equipment | (2,091) | ||||
Other | 36 | ||||
Net cash used for investing activities from continuing operations | (2,055) | ||||
Financing activities | |||||
Net additions (reductions) to revolving credit agreements | 44,302 | ||||
Purchase of treasury stock | (2,334) | ||||
Cash dividends paid | (2,419) | ||||
Net cash provided by (used for) financing activities from continuing operations | 39,549 | ||||
Cash flows from discontinued operations | |||||
Net cash used for operating activities from discontinued operations | 0 | ||||
Net cash provided by investing activities from discontinued operations | 0 | ||||
Net cash provided by financing activities from discontinued operations | 0 | ||||
Cash used for discontinued operations | 0 | ||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (608) | ||||
Cash, cash equivalents and restricted cash | |||||
(Decrease) increase for the year from continuing operations | (5,221) | ||||
Increase (decrease) for the year from discontinued operations | 0 | ||||
Balance at the beginning of the period | 6,352 | 6,352 | |||
Balance at the end of the period | 1,131 | 1,131 | |||
Restatement Impacts | |||||
Operating activities | |||||
Net income (loss) from continuing operations | 326 | (1,298) | |||
Adjustments to reconcile net income (loss) from continuing operations to net cash used for operating activities: | |||||
Depreciation and amortization | 0 | ||||
Deferred income taxes | 57 | ||||
Stock compensation expense | 0 | ||||
Other | (11) | ||||
Net changes in operating assets and liabilities: | |||||
Affiliate payable | (1) | ||||
Trade receivables | (128) | ||||
Inventory | 210 | ||||
Other assets | (214) | ||||
Accounts payable | (9) | ||||
Other liabilities | 1,412 | ||||
Net cash provided by (used for) operating activities from continuing operations | 18 | ||||
Investing activities | |||||
Expenditures for property, plant and equipment | 0 | ||||
Other | 0 | ||||
Net cash used for investing activities from continuing operations | 0 | ||||
Financing activities | |||||
Net additions (reductions) to revolving credit agreements | 0 | ||||
Purchase of treasury stock | 0 | ||||
Cash dividends paid | 0 | ||||
Net cash provided by (used for) financing activities from continuing operations | 0 | ||||
Cash flows from discontinued operations | |||||
Net cash used for operating activities from discontinued operations | 0 | ||||
Net cash provided by investing activities from discontinued operations | 0 | ||||
Net cash provided by financing activities from discontinued operations | 0 | ||||
Cash used for discontinued operations | 0 | ||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (18) | ||||
Cash, cash equivalents and restricted cash | |||||
(Decrease) increase for the year from continuing operations | 0 | ||||
Increase (decrease) for the year from discontinued operations | 0 | ||||
Balance at the beginning of the period | 0 | 0 | |||
Balance at the end of the period | 0 | 0 | |||
As Restated | |||||
Operating activities | |||||
Net income (loss) from continuing operations | (618) | (4,003) | |||
Adjustments to reconcile net income (loss) from continuing operations to net cash used for operating activities: | |||||
Depreciation and amortization | 2,153 | ||||
Deferred income taxes | 1,857 | ||||
Stock compensation expense | 1,629 | ||||
Other | 106 | ||||
Net changes in operating assets and liabilities: | |||||
Affiliate payable | (2,200) | ||||
Trade receivables | 13,828 | ||||
Inventory | 4,585 | ||||
Other assets | (347) | ||||
Accounts payable | (41,268) | ||||
Other liabilities | (18,429) | ||||
Net cash provided by (used for) operating activities from continuing operations | (42,089) | ||||
Investing activities | |||||
Expenditures for property, plant and equipment | (2,091) | ||||
Other | 36 | ||||
Net cash used for investing activities from continuing operations | (2,055) | ||||
Financing activities | |||||
Net additions (reductions) to revolving credit agreements | 44,302 | ||||
Purchase of treasury stock | (2,334) | ||||
Cash dividends paid | (2,419) | ||||
Net cash provided by (used for) financing activities from continuing operations | 39,549 | ||||
Cash flows from discontinued operations | |||||
Net cash used for operating activities from discontinued operations | 0 | ||||
Net cash provided by investing activities from discontinued operations | 0 | ||||
Net cash provided by financing activities from discontinued operations | 0 | ||||
Cash used for discontinued operations | 0 | ||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (626) | ||||
Cash, cash equivalents and restricted cash | |||||
(Decrease) increase for the year from continuing operations | (5,221) | ||||
Increase (decrease) for the year from discontinued operations | 0 | ||||
Balance at the beginning of the period | 6,352 | 6,352 | |||
Balance at the end of the period | 1,131 | 1,131 | |||
Recasting Impacts | |||||
Operating activities | |||||
Net income (loss) from continuing operations | 2,516 | 5,239 | |||
Adjustments to reconcile net income (loss) from continuing operations to net cash used for operating activities: | |||||
Depreciation and amortization | (312) | ||||
Deferred income taxes | 43 | ||||
Stock compensation expense | 0 | ||||
Other | (29) | ||||
Net changes in operating assets and liabilities: | |||||
Affiliate payable | 5 | ||||
Trade receivables | (906) | ||||
Inventory | (2,649) | ||||
Other assets | (1,255) | ||||
Accounts payable | 8,166 | ||||
Other liabilities | 2,141 | ||||
Net cash provided by (used for) operating activities from continuing operations | 10,443 | ||||
Investing activities | |||||
Expenditures for property, plant and equipment | 119 | ||||
Other | (36) | ||||
Net cash used for investing activities from continuing operations | 83 | ||||
Financing activities | |||||
Net additions (reductions) to revolving credit agreements | (9,450) | ||||
Purchase of treasury stock | 0 | ||||
Cash dividends paid | 0 | ||||
Net cash provided by (used for) financing activities from continuing operations | (9,450) | ||||
Cash flows from discontinued operations | |||||
Net cash used for operating activities from discontinued operations | (10,443) | ||||
Net cash provided by investing activities from discontinued operations | (83) | ||||
Net cash provided by financing activities from discontinued operations | 9,450 | ||||
Cash used for discontinued operations | (1,076) | ||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 0 | ||||
Cash, cash equivalents and restricted cash | |||||
(Decrease) increase for the year from continuing operations | 1,076 | ||||
Increase (decrease) for the year from discontinued operations | (1,076) | ||||
Balance at the beginning of the period | 0 | $ 0 | |||
Balance at the end of the period | $ 0 | $ 0 |
Restatement of Previously Iss_9
Restatement of Previously Issued Financial Statements - Statements of Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Balance, beginning of period | $ 53,396 | $ 36,266 | $ 52,958 | $ 56,818 | $ 36,266 | $ 56,818 |
Net income (loss) | 7,760 | 21,512 | (618) | (3,385) | 29,272 | (4,003) |
Issuance of common stock, net of conversions | 0 | 1 | 1 | |||
Stock Repurchased During Period, Value | 2,334 | (2,334) | ||||
Share-based compensation expense | 1,263 | 554 | 822 | 807 | 1,629 | |
Cash dividends | (1,228) | (1,226) | (1,242) | (1,177) | ||
Other comprehensive loss | 656 | (4,015) | (643) | (192) | (835) | |
Reclassification adjustment to net income | (295) | 305 | 246 | 86 | 332 | |
Balance, end of period | $ 61,552 | $ 53,396 | $ 49,189 | $ 52,958 | 61,552 | $ 49,189 |
Cash Dividends on Class A Common and Class B Common per share (in usd per share) | $ 0.085 | $ 0.09 | $ 0.09 | $ 0.085 | $ 0.085 | |
As Previously Reported | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Balance, beginning of period | $ 65,438 | $ 65,438 | ||||
Net income (loss) | $ (944) | (2,705) | ||||
Issuance of common stock, net of conversions | 1 | |||||
Stock Repurchased During Period, Value | (2,334) | |||||
Share-based compensation expense | 1,629 | |||||
Other comprehensive loss | (751) | |||||
Reclassification adjustment to net income | 238 | |||||
Balance, end of period | 59,097 | $ 59,097 | ||||
Cash Dividends on Class A Common and Class B Common per share (in usd per share) | $ 0.085 | |||||
Restatement Impacts | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Balance, beginning of period | (8,620) | $ (8,620) | ||||
Net income (loss) | 326 | (1,298) | ||||
Other comprehensive loss | (85) | |||||
Reclassification adjustment to net income | 94 | |||||
Balance, end of period | (9,909) | $ (9,909) | ||||
Cash Dividends on Class A Common and Class B Common per share (in usd per share) | $ 0.085 | |||||
Capital in Excess of Par Value | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Balance, beginning of period | $ 55,062 | $ 54,509 | 52,520 | 51,714 | 54,509 | $ 51,714 |
Issuance of common stock, net of conversions | (1) | (1) | (1) | |||
Share-based compensation expense | 1,263 | 554 | 822 | 807 | 1,629 | |
Balance, end of period | 56,325 | 55,062 | 53,342 | 52,520 | 56,325 | 53,342 |
Capital in Excess of Par Value | As Previously Reported | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Balance, beginning of period | 51,714 | 51,714 | ||||
Issuance of common stock, net of conversions | (1) | |||||
Share-based compensation expense | 1,629 | |||||
Balance, end of period | 53,342 | 53,342 | ||||
Capital in Excess of Par Value | Restatement Impacts | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Balance, beginning of period | 0 | 0 | ||||
Balance, end of period | 0 | 0 | ||||
Treasury Stock | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Balance, beginning of period | (5,960) | (5,960) | 0 | 0 | (5,960) | 0 |
Stock Repurchased During Period, Value | 2,334 | (2,334) | ||||
Balance, end of period | (5,960) | (5,960) | (2,334) | 0 | (5,960) | (2,334) |
Treasury Stock | As Previously Reported | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Stock Repurchased During Period, Value | (2,334) | |||||
Balance, end of period | (2,334) | (2,334) | ||||
Treasury Stock | Restatement Impacts | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Balance, beginning of period | 0 | 0 | ||||
Balance, end of period | 0 | 0 | ||||
Retained Earnings | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Balance, beginning of period | 23,996 | 3,710 | 17,506 | 22,068 | 3,710 | 22,068 |
Net income (loss) | 7,760 | 21,512 | (618) | (3,385) | (4,003) | |
Cash dividends | (1,228) | (1,226) | (1,242) | (1,177) | ||
Balance, end of period | 30,528 | 23,996 | 15,646 | 17,506 | 30,528 | 15,646 |
Retained Earnings | As Previously Reported | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Balance, beginning of period | 30,897 | 30,897 | ||||
Net income (loss) | (2,705) | |||||
Balance, end of period | 25,773 | 25,773 | ||||
Retained Earnings | Restatement Impacts | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Balance, beginning of period | (8,829) | (8,829) | ||||
Net income (loss) | (1,298) | |||||
Balance, end of period | (10,127) | (10,127) | ||||
Accumulated Other Comprehensive Income (Loss) | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Balance, beginning of period | (19,842) | (16,132) | (17,207) | (17,101) | (16,132) | (17,101) |
Other comprehensive loss | 656 | (4,015) | (643) | (192) | (835) | |
Reclassification adjustment to net income | (295) | 305 | 246 | 86 | 332 | |
Balance, end of period | (19,481) | (19,842) | (17,604) | (17,207) | (19,481) | (17,604) |
Accumulated Other Comprehensive Income (Loss) | As Previously Reported | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Balance, beginning of period | (17,310) | (17,310) | ||||
Other comprehensive loss | (751) | |||||
Reclassification adjustment to net income | 238 | |||||
Balance, end of period | (17,823) | (17,823) | ||||
Accumulated Other Comprehensive Income (Loss) | Restatement Impacts | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Balance, beginning of period | 209 | 209 | ||||
Other comprehensive loss | (85) | |||||
Reclassification adjustment to net income | 94 | |||||
Balance, end of period | 218 | 218 | ||||
Class A Common Stock | Common Stock | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Balance, beginning of period | 99 | 98 | 95 | 93 | 98 | 93 |
Issuance of common stock, net of conversions | 1 | 2 | 2 | |||
Balance, end of period | 99 | 99 | 95 | 95 | 99 | 95 |
Class A Common Stock | Common Stock | As Previously Reported | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Balance, beginning of period | 93 | 93 | ||||
Issuance of common stock, net of conversions | 2 | |||||
Balance, end of period | 95 | 95 | ||||
Class A Common Stock | Common Stock | Restatement Impacts | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Balance, beginning of period | 0 | 0 | ||||
Balance, end of period | 0 | 0 | ||||
Class B Common Stock | Common Stock | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Balance, beginning of period | 41 | 41 | 44 | 44 | 41 | 44 |
Balance, end of period | $ 41 | $ 41 | 44 | 44 | $ 41 | 44 |
Class B Common Stock | Common Stock | As Previously Reported | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Balance, beginning of period | 44 | 44 | ||||
Balance, end of period | 44 | 44 | ||||
Class B Common Stock | Common Stock | Restatement Impacts | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Balance, beginning of period | $ 0 | 0 | ||||
Balance, end of period | $ 0 | 0 | ||||
Common Class A and B | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Cash dividends | (2,419) | |||||
Common Class A and B | As Previously Reported | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Cash dividends | (2,419) | |||||
Common Class A and B | Retained Earnings | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Cash dividends | (2,419) | |||||
Common Class A and B | Retained Earnings | As Previously Reported | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Cash dividends | $ (2,419) |
Transfer of Financial Assets (D
Transfer of Financial Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Transfers and Servicing [Abstract] | |||||
Accounts receivable derecognized | $ 38.7 | $ 33.4 | $ 75.2 | $ 67.9 | $ 162.7 |
- Income Statement Disclosures
- Income Statement Disclosures (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loss from discontinued operations, net of tax | $ (305) | $ (2,516) | $ 22,561 | $ (5,239) |
KC | Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenue | 0 | 18,283 | 631 | 37,536 |
Cost of sales | 0 | 10,212 | 0 | 20,861 |
Gross profit | 0 | 8,071 | 631 | 16,675 |
Selling, general and administrative expenses | 299 | 11,235 | 1,346 | 23,468 |
Adjustment of lease termination liability | 0 | 0 | (16,457) | 0 |
Adjustment of other current liabilities | 0 | 0 | (6,608) | 0 |
Operating loss | (299) | (3,164) | 22,350 | (6,793) |
Interest expense | 0 | 115 | 198 | |
Other expense, net | 88 | 6 | 88 | 15 |
Loss from discontinued operations before income taxes | (387) | (3,285) | 22,262 | (7,006) |
Income tax benefit | (82) | (769) | (299) | (1,767) |
Loss from discontinued operations, net of tax | $ (305) | $ (2,516) | $ 22,561 | $ (5,239) |
- Balance Sheet Disclosures (De
- Balance Sheet Disclosures (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Assets | |||
Cash and cash equivalents from discontinued operations | $ 0 | $ 102 | |
Current assets of discontinued operations | 0 | $ 5,383 | 21,255 |
Non-current assets of discontinued operations | 0 | 614 | 4,420 |
Liabilities | |||
Current liabilities of discontinued operations | 0 | 29,723 | 20,048 |
Non-current liabilities of discontinued operations | $ 0 | 0 | 3,697 |
KC | Discontinued Operations | |||
Assets | |||
Cash and cash equivalents from discontinued operations | 5,022 | 102 | |
Inventory | 0 | 19,345 | |
Prepaid expenses and other current assets | 361 | 1,808 | |
Current assets of discontinued operations | 5,383 | 21,255 | |
Property, plant and equipment, net | 0 | 1,555 | |
Deferred income taxes | 614 | 2,733 | |
Other non-current assets | 0 | 132 | |
Non-current assets of discontinued operations | 614 | 4,420 | |
Liabilities | |||
Accounts payable | 4,594 | 5,538 | |
Revolving credit agreements | 0 | 7,450 | |
Lease termination liability | 17,248 | 0 | |
Other current liabilities | 7,881 | 7,060 | |
Current liabilities of discontinued operations | 29,723 | 20,048 | |
Other long-term liabilities | 0 | 3,697 | |
Non-current liabilities of discontinued operations | $ 0 | $ 3,697 |
Fair Value Disclosure (Details)
Fair Value Disclosure (Details) - Fair value measurements, recurring - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Assets: | |||
Assets at fair value | $ 39 | $ 0 | $ 69 |
Liabilities: | |||
Liabilities at fair value | 1,338 | 390 | 408 |
Prepaid expenses and other current assets | |||
Assets: | |||
Interest rate swap agreements | 0 | 0 | 69 |
Foreign currency exchange contracts | 39 | 0 | 0 |
Other current liabilities | |||
Liabilities: | |||
Interest rate swap agreements | 390 | 21 | 0 |
Foreign currency exchange contracts | 0 | 308 | 357 |
Other long-term liabilities | |||
Liabilities: | |||
Interest rate swap agreements | $ 948 | $ 61 | $ 51 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Capital Stock (Details) shares in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020$ / sharesshares | Jun. 30, 2019$ / sharesshares | Jun. 30, 2020$ / sharesshares | Jun. 30, 2019$ / sharesshares | Dec. 31, 2019$ / sharesshares | |
Class of Stock [Line Items] | |||||
Preferred stock, shares authorized (in shares) | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 | 0 | 0 | 0 |
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 |
Class A Common Stock | |||||
Class of Stock [Line Items] | |||||
Common stock, shares authorized (in shares) | 70,000 | 70,000 | 70,000 | 70,000 | 70,000 |
Common stock, shares issued (in shares) | 9,946 | 9,469 | 9,946 | 9,469 | 9,805 |
Treasury Stock (in shares) | 365 | 130 | 365 | ||
Class A Common shares issued (in shares) | 20 | 10 | 128 | 139 | |
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 |
Shares Outstanding Class B | |||||
Class of Stock [Line Items] | |||||
Common stock, shares authorized (in shares) | 30,000 | 30,000 | 30,000 | 30,000 | 30,000 |
Common stock, shares issued (in shares) | 4,063 | 4,383 | 4,063 | 4,383 | 4,076 |
Class B Common converted to Class A Common (in shares) | 10 | 2 | 13 | 39 | |
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, convertible conversion ratio | 1 | 1 | 1 | 1 | 1 |
Stockholders' Equity - Accumula
Stockholders' Equity - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 36,266 | |||
Other comprehensive loss | $ 879 | (5,156) | $ (950) | $ (385) |
Reclassification adjustment to net loss | (349) | 393 | 344 | 49 |
Tax effects | (169) | 1,053 | 210 | 229 |
Ending balance | 61,552 | 49,189 | ||
Foreign Currency | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (12,074) | (8,221) | (8,423) | (8,652) |
Other comprehensive loss | 742 | (4,985) | 248 | 246 |
Reclassification adjustment to net loss | 0 | 0 | 0 | 0 |
Tax effects | (223) | 1,132 | (13) | (17) |
Ending balance | (11,555) | (12,074) | (8,188) | (8,423) |
Deferred Gain (Loss) on Cash Flow Hedging | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (393) | (341) | 459 | 879 |
Other comprehensive loss | 137 | (171) | (1,198) | (631) |
Reclassification adjustment to net loss | (489) | 154 | 202 | 4 |
Tax effects | 97 | (35) | 263 | 207 |
Ending balance | (648) | (393) | (274) | 459 |
Pension Plan Adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (7,375) | (7,570) | (9,244) | (9,328) |
Other comprehensive loss | 0 | 0 | 0 | 0 |
Reclassification adjustment to net loss | 140 | 239 | 142 | 45 |
Tax effects | (43) | (44) | (40) | 39 |
Ending balance | (7,278) | (7,375) | (9,142) | (9,244) |
Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (19,842) | (16,132) | (17,208) | (17,101) |
Ending balance | $ (19,481) | $ (19,842) | $ (17,604) | $ (17,208) |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 138,297 | $ 131,065 | $ 259,143 | $ 257,707 |
HBB | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 138,297 | 131,065 | 259,143 | 257,707 |
HBB | Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 136,816 | 129,820 | 256,451 | 255,381 |
HBB | Licensing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 1,481 | $ 1,245 | $ 2,692 | $ 2,326 |
Maximum | ||||
Disaggregation of Revenue [Line Items] | ||||
Warranty term | 3 years | |||
Maximum | Electric appliances | ||||
Disaggregation of Revenue [Line Items] | ||||
Warranty term | 10 years | |||
Minimum | ||||
Disaggregation of Revenue [Line Items] | ||||
Warranty term | 1 year |
Contingencies (Details)
Contingencies (Details) - USD ($) | May 03, 2019 | Apr. 30, 2020 | Feb. 29, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Dec. 31, 2019 |
Loss Contingencies [Line Items] | ||||||||
Amount awarded to plaintiff | $ 3,200,000 | $ 300,000 | $ 3,200,000 | |||||
Reduction in award | $ 900,000 | |||||||
Reduction in estimated contingent loss | $ 900,000 | |||||||
Amount of final judgment | $ 8,100,000 | |||||||
Accrual for environmental investigation and remediation activities | 4,200,000 | $ 4,600,000 | $ 4,200,000 | $ 4,400,000 | ||||
Loss contingency receivable | $ 1,500,000 | |||||||
Portion of loss contingency proceeds representing restricted cash | 1,000,000 | |||||||
Minimum | ||||||||
Loss Contingencies [Line Items] | ||||||||
Estimate of additional expenses | 0 | 0 | ||||||
Maximum | ||||||||
Loss Contingencies [Line Items] | ||||||||
Estimate of additional expenses | $ 3,900,000 | $ 3,900,000 |