Hamilton Beach Brands Holding (HBB) 10-Q 5 May 21 2021 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2021	Apr. 30, 2020
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2021
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	2021
Document Fiscal Period Focus	Q1
Amendment Flag	false
Shares Outstanding Class A
Entity Information [Line Items]
Shares Outstanding (in shares)		9,845,038
Class B Common stock
Entity Information [Line Items]
Shares Outstanding (in shares)		4,029,355

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020
Current assets
Cash and cash equivalents	$ 1,375	$ 2,415	$ 2,078
Trade receivables, net	107,934	144,797	69,569
Inventory	163,831	173,962	89,986
Prepaid expenses and other current assets	13,770	15,118	16,427
Current assets of discontinued operations	0	0	324
Total current assets	286,910	336,292	178,384
Property, plant and equipment, net	24,252	23,490	22,465
Goodwill	6,253	6,253	6,253
Other intangible assets, net	1,842	1,892	2,818
Deferred income taxes	3,416	6,965	5,128
Deferred costs	13,960	13,449	11,172
Other non-current assets	2,708	2,827	2,150
Total assets	339,341	391,168	228,370
Current liabilities
Accounts payable	102,725	152,054	61,578
Accounts payable to NACCO Industries, Inc.	10	505	496
Revolving credit agreements	0	0	34,547
Accrued compensation	10,894	15,981	8,126
Accrued product returns	5,860	6,853	7,536
Other current liabilities	18,465	23,677	14,098
Current liabilities of discontinued operations	0	0	1,099
Total current liabilities	137,954	199,070	127,480
Revolving credit agreements	102,555	98,360	35,000
Other long-term liabilities	16,133	13,633	12,494
Total liabilities	256,642	311,063	174,974
Stockholders' equity
Capital in excess of par value	59,456	58,485	55,062
Treasury stock	(5,960)	(5,960)	(5,960)
Retained earnings	46,489	44,915	23,996
Accumulated other comprehensive loss	(17,429)	(17,476)	(19,842)
Total stockholders' equity	82,699	80,105	53,396
Total liabilities and stockholders' equity	339,341	391,168	228,370
Class A Common stock
Stockholders' equity
Common stock	102	100	99
Class B Common stock
Stockholders' equity
Common stock	$ 41	$ 41	$ 41

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income Statement [Abstract]
Revenue	$ 149,249	$ 120,846
Cost of sales	117,556	95,806
Gross profit	31,693	25,040
Selling, general and administrative expenses	26,379	24,213
Amortization of intangible assets	50	324
Operating profit	5,264	503
Interest expense, net	720	603
Other expense, net	171	1,702
Income (loss) from continuing operations before income taxes	4,373	(1,802)
Income tax expense (benefit)	1,497	(448)
Net income (loss) from continuing operations	2,876	(1,354)
Income from discontinued operations, net of tax	0	22,866
Net income	$ 2,876	$ 21,512
Basic and diluted earnings (loss) per share:
Continuing operations, basic (in dollars per share)	$ 0.21	$ (0.10)
Continuing operations, diluted (in dollars per share)	0.21	(0.10)
Discontinued operations, basic (in dollars per share)	0	1.68
Discontinued operations, diluted (in dollars per share)	0	1.68
Basic earnings (loss) per share (in dollars per share)	0.21	1.58
Diluted earnings (loss) per share (in dollars per share)	$ 0.21	$ 1.58
Basic weighted average shares outstanding (in shares)	13,855,000	13,625,000
Diluted weighted average shares outstanding (in shares)	13,874,000	13,625,000

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 2,876	$ 21,512
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment	678	1,057
(Loss) gain on long-term intra-entity foreign currency transactions	(1,033)	(4,910)
Cash flow hedging activity	164	(162)
Reclassification of hedging activities into earnings	125	110
Reclassification of pension adjustments into earnings	113	195
Total other comprehensive income (loss), net of tax	47	(3,710)
Comprehensive income	$ 2,923	$ 17,802

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Operating activities
Net income (loss) from continuing operations	$ 2,876	$ (1,354)
Adjustments to reconcile net income (loss) from continuing operations to net cash used for operating activities:
Depreciation and amortization	896	792
Deferred income taxes	3,702	1,182
Stock compensation expense	1,107	555
Other	405	343
Net changes in operating assets and liabilities:
Affiliate payable	(495)	0
Trade receivables	36,853	34,811
Inventory	9,774	17,047
Other assets	926	(5,637)
Accounts payable	(49,152)	(49,550)
Other liabilities	(8,781)	(8,231)
Net cash provided by (used for) operating activities from continuing operations	(1,889)	(10,042)
Investing activities
Expenditures for property, plant and equipment	(1,746)	(625)
Net cash provided by (used for) investing activities from continuing operations	(1,746)	(625)
Financing activities
Net additions to revolving credit agreements	4,129	11,102
Cash dividends paid	(1,302)	(1,226)
Other financing	(134)	0
Net cash provided by (used for) financing activities from continuing operations	2,693	9,876
Cash flows from discontinued operations
Net cash provided by (used for) operating activities from discontinued operations	0	(4,968)
Net cash provided by (used for) investing activities from discontinued operations	0	6
Net cash provided by (used for) financing activities from discontinued operations	0	0
Cash provided by (used for) discontinued operations	0	(4,962)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(85)	1,376
Cash, cash equivalents and restricted cash
Increase (decrease) for the period from continuing operations	(1,027)	585
Decrease for the period from discontinued operations	0	(4,962)
Balance at the beginning of the period	3,436	7,164
Balance at the end of the period	2,409	2,787
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract]
Total cash, cash equivalents, and restricted cash	$ 2,409	$ 2,787

Consolidated Statements of Chan

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, 2019	$ 36,266	$ 54,509	$ (5,960)	$ 3,710	$ (16,132)	$ 98	$ 41
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	21,512			21,512
Issuance of common stock, net of conversions	0	(1)				1
Share-based compensation expense	554	554
Cash dividends	(1,226)			(1,226)
Other comprehensive income (loss)	(4,015)				(4,015)
Reclassification adjustment to net income (loss)	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, 2020	80,105	58,485	(5,960)	44,915	(17,476)	100	41
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	2,876			2,876
Issuance of common stock, net of conversions	0	(2)				2
Share-based compensation expense	973	973
Cash dividends	(1,302)			(1,302)
Other comprehensive income (loss)	(191)				(191)
Reclassification adjustment to net income (loss)	238				238
Balance, end of period at Mar. 31, 2021	$ 82,699	$ 59,456	$ (5,960)	$ 46,489	$ (17,429)	$ 102	$ 41

Consolidated Statements of Ch_2

Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Statement of Stockholders' Equity [Abstract]
Cash dividends (in dollars per share)	$ 0.095	$ 0.09

Basis of Presentation and Recen

Basis of Presentation and Recently Issued Accounting Standards	3 Months Ended
	Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Recently Issued Accounting Standards	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 a wide range of branded, small electric household and specialty housewares appliances, as well as commercial products for restaurants, fast food chains, bars, and hotels. HBB operates in the consumer, commercial and specialty small 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 2 for further information on discontinued operations. The financial statements have been prepared in accordance with US generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and notes required by US 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 for the year ended December 31, 2020. Operating results for the three months ended March 31, 2021 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. 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, 2021, 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, 2022 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. In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” The new accounting rules reduce complexity by removing specific exceptions to general principles related to intraperiod tax allocations, ownership changes in foreign investments, and interim period income tax accounting for year-to-date losses that exceed anticipated losses. The new accounting rules also simplify accounting for franchise taxes that are partially based on income, transactions with a government that result in a step up in the tax basis of goodwill, separate financial statements of legal entities that are not subject to tax, and enacted changes in tax laws in interim periods. The new accounting rules will be effective for the Company for its year ending December 31, 2022. The Company is currently in the process of evaluating the impact of adoption of the new accounting rules on the Company’s financial condition, results of operations, cash flows and disclosures. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The new accounting rules provide optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform. The amendments in this standard can be applied anytime between the first quarter of 2020 and the fourth quarter of 2022. The Company is currently in the process of evaluating the impact of adoption of the new rules on the Company’s financial condition, results of operations, cash flows and disclosures. Assets Held for Sale During the fourth quarter of 2020, the Company committed to a plan to sell our Brazilian subsidiary and determined that we met all of the criteria to classify the assets and liabilities of this business as held for sale. The carrying amounts of the major classes of assets that are classified as held for sale as of March 31, 2021 are as follows: $1.6 million of trade receivables, net, and $0.5 million of inventory. As of March 31, 2021, the total of these amounts are included in the prepaid expenses and other current assets line item on the Consolidated Balance Sheet. The carrying value of the disposal group approximates the fair value, which we determined based on the expected sales price. In April 2021, the Company made the decision to wind down the Brazilian subsidiary and enter into a licensing agreement with a third party to service the Brazilian market. As a result, we are no longer committed to selling the subsidiary. The carrying amounts of the assets will be reclassified to held and used during the second quarter of 2021. The disposal group had $2.5 million of accumulated other comprehensive losses at March 31, 2021, which will be recognized in net income upon substantial liquidation of the Brazilian subsidiary which we expect to occur in the back half of 2021.

Discontinued Operations

Discontinued Operations	3 Months Ended
	Mar. 31, 2021
Discontinued Operations and Disposal Groups [Abstract]
Discontinued Operations	Discontinued Operations On October 10, 2019, the Board approved the wind down of KC's retail operations. 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. 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 2020 Revenue $ 631 Cost of sales — Gross profit 631 Selling, general and administrative expenses 1,047 Adjustment of lease termination liability (1) (16,457) Adjustment of other current liabilities (2) (6,608) Operating income 22,649 Income from discontinued operations before income taxes 22,649 Income tax benefit (217) Income from discontinued operations, net of tax $ 22,866 (1) Represents an adjustment to the lease termination obligation based on the final distribution of KC's remaining assets on April 3, 2020. (2) Represents an adjustment to the carrying value of substantially all of the other current liabilities based on the final distribution of KC's remaining assets on April 3, 2020. Due to the deconsolidation of KC on April 3, 2020, there are no assets or liabilities associated with KC as of March 31, 2021 and December 31, 2020. The major classes of KC's assets and liabilities included as part of discontinued operations as of March 31, 2020 are as follows: MARCH 31 Assets Cash and cash equivalents $ 145 Prepaid expenses and other current assets 179 Current assets of discontinued operations $ 324 Liabilities Accounts payable $ 63 Lease termination liability 791 Other current liabilities 245 Current liabilities of discontinued operations $ 1,099 Neither Hamilton Beach Brands Holding Company nor HBB has guaranteed any obligations of KC.

Transfer of Financial Assets

Transfer of Financial Assets	3 Months Ended
	Mar. 31, 2021
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 US 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 $29.8 million and $36.5 million of trade receivables during the three months ending March 31, 2021 and 2020, respectively, and $162.4 million during the year ending December 31, 2020. The loss incurred on sold receivables in the consolidated results of operations for the three months ended March 31, 2021 and 2020 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 Consolidated Statements of Cash Flows.

Fair Value Disclosure

Fair Value Disclosure	3 Months Ended
	Mar. 31, 2021
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 MARCH 31 DECEMBER 31 MARCH 31 Assets: Interest rate swap agreements Current Prepaid expenses and other current assets $ — $ — $ — Foreign currency exchange contracts Current Prepaid expenses and other current assets — — 767 $ — $ — $ 767 Liabilities: Interest rate swap agreements Current Other current liabilities $ 333 $ 380 $ 362 Long-term Other long-term liabilities 591 779 818 Foreign currency exchange contracts Current Other current liabilities 249 518 — $ 1,173 $ 1,677 $ 1,180 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 value of the revolving credit agreement, including book overdrafts, which approximate book value, was 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	3 Months Ended
	Mar. 31, 2021
Equity [Abstract]
Stockholders' Equity	Stockholders' Equity Capital Stock The following table sets forth the Company's authorized capital stock information: MARCH 31 DECEMBER 31 MARCH 31 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) 10,186 10,006 9,917 Treasury Stock 365 365 365 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) 4,037 4,045 4,074 (1) Class B Common converted to Class A Common were 8 and 3 shares during the three months ending March 31, 2021 and 2020, respectively. (2) The Company issued Class A Common shares of 172 and 108 during the three months ending March 31, 2021 and 2020, 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 Balance, January 1, 2021 $ (9,775) $ (1,344) $ (6,357) $ (17,476) Other comprehensive income (loss) (276) 222 — (54) Reclassification adjustment to net income (loss) — 182 156 338 Tax effects (79) (115) (43) (237) Balance, March 31, 2021 $ (10,130) $ (1,055) $ (6,244) $ (17,429) Balance, January 1, 2020 $ (8,221) $ (341) $ (7,570) $ (16,132) Other comprehensive income (loss) (4,985) (171) — (5,156) Reclassification adjustment to net income (loss) — 154 239 393 Tax effects 1,132 (35) (44) 1,053 Balance, March 31, 2020 $ (12,074) $ (393) $ (7,375) $ (19,842)

Revenue

Revenue	3 Months Ended
	Mar. 31, 2021
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, which includes an estimate for variable consideration. 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 HBB products are not sold with a general right of return. However, based on historical experience, a portion of products sold are estimated to be returned due to reasons such as product failure and excess inventory stocked by the customer, which, subject to certain terms and conditions, HBB will agree to accept. Product returns, customer programs and incentive offerings, including special pricing agreements, price competition, promotions, and other volume-based incentives are accounted for as variable consideration. A description of revenue sources and performance obligations for HBB are as follows: Consumer and Commercial product revenue Transactions with both consumer and commercial 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. Consumer product revenue consists 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. A majority of this revenue is in North America. Commercial product revenue consists of sales of products for restaurants, fast-food chains, bars and hotels. Approximately one-half of our commercial sales are in the U.S. and the other half is in markets across the globe. License revenue 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, trade names, 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). The following table sets forth Company's revenue on a disaggregated basis for the three months ended March 31: THREE MONTHS ENDED 2021 2020 Type of good or service: Consumer products $ 139,513 $ 109,717 Commercial products 8,593 9,918 Licensing 1,143 1,211 Total revenues $ 149,249 $ 120,846

Contingencies

Contingencies	3 Months Ended
	Mar. 31, 2021
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. 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 for the period in which the ruling occurs, or in future periods. 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. 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. In August 2020, the court entered an order awarding the plaintiff additional sales posttrial and interest on the damages award through July 31, 2020 and continuing interest in a de minimis amount until the judgment is satisfied. As of March 31, 2021, the accrual for the contingent loss is $3.1 million. HBB continues to vigorously pursue the appeal of the judgment and adverse lower court rulings with the US 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. Hamilton Beach Brands Holding Company (HBBHC) 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. 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. 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.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesThe effective tax rate on income from continuing operations was 34.2% and 24.9% for the three months ended March 31, 2021 and 2020, respectively. The effective tax rate was higher for the three months ended March 31, 2021 due to the inclusion of $0.4 million related to interest and penalties on unrecognized tax benefits as a discrete expense item.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2021
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsOn April 9, 2021, the Company entered into Amendment No. 9 to the Amended and Restated Credit Agreement by and among Wells Fargo Bank, National Association, as Administrative Agent, the Lenders that are Parties thereto as the Lenders, Hamilton Beach Brands, Inc., as Parent and U.S. Borrower, and Hamilton Beach Brands Canada, Inc., as Canadian Borrower (the “Amendment”). Due to the highly seasonal nature of the Company’s primary markets, Amendment No. 8 dated November 23, 2020 provided for increases in advance rates used to determine the borrowing base during periods of the second half of the calendar year. Amendment No. 9 increases the credit facility from $125 million to $140 million for a period of sixty days from its effective date to provide similar flexibility as demand for small kitchen appliances is expected to remain strong in the first half of 2021. The Amendment did not result in any other changes to the terms or due date of the credit facility.

Basis of Presentation and Rec_2

Basis of Presentation and Recently Issued Accounting Standards (Policies)	3 Months Ended
	Mar. 31, 2021
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 a wide range of branded, small electric household and specialty housewares appliances, as well as commercial products for restaurants, fast food chains, bars, and hotels. HBB operates in the consumer, commercial and specialty small 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 2 for further information on discontinued operations. The financial statements have been prepared in accordance with US generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and notes required by US 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 for the year ended December 31, 2020. Operating results for the three months ended March 31, 2021 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.
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, 2021, 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, 2022 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. In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” The new accounting rules reduce complexity by removing specific exceptions to general principles related to intraperiod tax allocations, ownership changes in foreign investments, and interim period income tax accounting for year-to-date losses that exceed anticipated losses. The new accounting rules also simplify accounting for franchise taxes that are partially based on income, transactions with a government that result in a step up in the tax basis of goodwill, separate financial statements of legal entities that are not subject to tax, and enacted changes in tax laws in interim periods. The new accounting rules will be effective for the Company for its year ending December 31, 2022. The Company is currently in the process of evaluating the impact of adoption of the new accounting rules on the Company’s financial condition, results of operations, cash flows and disclosures. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The new accounting rules provide optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform. The amendments in this standard can be applied anytime between the first quarter of 2020 and the fourth quarter of 2022. The Company is currently in the process of evaluating the impact of adoption of the new rules on the Company’s financial condition, results of operations, cash flows and disclosures.

Discontinued Operations (Tables

Discontinued Operations (Tables)	3 Months Ended
	Mar. 31, 2021
Discontinued Operations and Disposal Groups [Abstract]
Schedule of Discontinued Operations	The major line items constituting the income (loss) from discontinued operations, net of tax are as follows: THREE MONTHS ENDED 2020 Revenue $ 631 Cost of sales — Gross profit 631 Selling, general and administrative expenses 1,047 Adjustment of lease termination liability (1) (16,457) Adjustment of other current liabilities (2) (6,608) Operating income 22,649 Income from discontinued operations before income taxes 22,649 Income tax benefit (217) Income from discontinued operations, net of tax $ 22,866 (1) Represents an adjustment to the lease termination obligation based on the final distribution of KC's remaining assets on April 3, 2020. (2) Represents an adjustment to the carrying value of substantially all of the other current liabilities based on the final distribution of KC's remaining assets on April 3, 2020. MARCH 31 Assets Cash and cash equivalents $ 145 Prepaid expenses and other current assets 179 Current assets of discontinued operations $ 324 Liabilities Accounts payable $ 63 Lease termination liability 791 Other current liabilities 245 Current liabilities of discontinued operations $ 1,099

Fair Value Disclosure (Tables)

Fair Value Disclosure (Tables)	3 Months Ended
	Mar. 31, 2021
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 MARCH 31 DECEMBER 31 MARCH 31 Assets: Interest rate swap agreements Current Prepaid expenses and other current assets $ — $ — $ — Foreign currency exchange contracts Current Prepaid expenses and other current assets — — 767 $ — $ — $ 767 Liabilities: Interest rate swap agreements Current Other current liabilities $ 333 $ 380 $ 362 Long-term Other long-term liabilities 591 779 818 Foreign currency exchange contracts Current Other current liabilities 249 518 — $ 1,173 $ 1,677 $ 1,180

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2021
Equity [Abstract]
Schedule of Capital Stock	The following table sets forth the Company's authorized capital stock information: MARCH 31 DECEMBER 31 MARCH 31 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) 10,186 10,006 9,917 Treasury Stock 365 365 365 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) 4,037 4,045 4,074 (1) Class B Common converted to Class A Common were 8 and 3 shares during the three months ending March 31, 2021 and 2020, respectively.
Schedule of Accumulated Other Comprehensive Loss	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 Balance, January 1, 2021 $ (9,775) $ (1,344) $ (6,357) $ (17,476) Other comprehensive income (loss) (276) 222 — (54) Reclassification adjustment to net income (loss) — 182 156 338 Tax effects (79) (115) (43) (237) Balance, March 31, 2021 $ (10,130) $ (1,055) $ (6,244) $ (17,429) Balance, January 1, 2020 $ (8,221) $ (341) $ (7,570) $ (16,132) Other comprehensive income (loss) (4,985) (171) — (5,156) Reclassification adjustment to net income (loss) — 154 239 393 Tax effects 1,132 (35) (44) 1,053 Balance, March 31, 2020 $ (12,074) $ (393) $ (7,375) $ (19,842)

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Mar. 31, 2021
Revenue Recognition and Deferred Revenue [Abstract]
Schedule of Disaggregation of Revenue	The following table sets forth Company's revenue on a disaggregated basis for the three months ended March 31: THREE MONTHS ENDED 2021 2020 Type of good or service: Consumer products $ 139,513 $ 109,717 Commercial products 8,593 9,918 Licensing 1,143 1,211 Total revenues $ 149,249 $ 120,846

Basis of Presentation and Rec_3

Basis of Presentation and Recently Issued Accounting Standards (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020
Debt Instrument [Line Items]
Accumulated other comprehensive loss	$ 17,429	$ 17,476	$ 19,842
Disposal Group, Held-for-sale, Not Discontinued Operations | Brazilian Subsidiary
Debt Instrument [Line Items]
Trade receivables, net	1,600
Inventory	500
Accumulated other comprehensive loss	$ 2,500

Discontinued Operations - Incom

Discontinued Operations - Income Statement Disclosures (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income from discontinued operations, net of tax	$ 0	$ 22,866
KC | Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenue		631
Cost of sales		0
Gross profit		631
Selling, general and administrative expenses		1,047
Adjustment of lease termination liability		(16,457)
Adjustment of other current liabilities		(6,608)
Operating income		22,649
Income from discontinued operations before income taxes		22,649
Income tax benefit		(217)
Income from discontinued operations, net of tax		$ 22,866

Discontinued Operations - Balan

Discontinued Operations - Balance Sheet Disclosures (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020
Assets
Cash and cash equivalents	$ 0		$ 145
Current assets of discontinued operations	0	$ 0	324
Liabilities
Current liabilities of discontinued operations	$ 0	$ 0	1,099
KC | Discontinued Operations
Assets
Cash and cash equivalents			145
Prepaid expenses and other current assets			179
Current assets of discontinued operations			324
Liabilities
Accounts payable			63
Lease termination liability			791
Other current liabilities			245
Current liabilities of discontinued operations			$ 1,099

Transfer of Financial Assets (D

Transfer of Financial Assets (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Transfers and Servicing [Abstract]
Accounts receivable derecognized	$ 29.8	$ 36.5	$ 162.4

Fair Value Disclosure (Details)

Fair Value Disclosure (Details) - Fair value measurements, recurring - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020
Assets:
Assets at fair value	$ 0	$ 0	$ 767
Liabilities:
Liabilities at fair value	1,173	1,677	1,180
Prepaid expenses and other current assets
Assets:
Interest rate swap agreements	0	0	0
Foreign currency exchange contracts	0	0	767
Other current liabilities
Liabilities:
Interest rate swap agreements	333	380	362
Foreign currency exchange contracts	249	518	0
Other long-term liabilities
Liabilities:
Interest rate swap agreements	$ 591	$ 779	$ 818

Stockholders' Equity - Schedule

Stockholders' Equity - Schedule of Capital Stock (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2021$ / sharesshares	Mar. 31, 2020$ / sharesshares	Dec. 31, 2020$ / sharesshares
Class of Stock [Line Items]
Preferred stock, par value (in dollars per share) | $ / shares	$ 0.01	$ 0.01	$ 0.01
Preferred stock authorized (in shares)	5,000,000	5,000,000	5,000,000
Preferred stock outstanding (in shares)	0	0	0
Class A Common stock
Class of Stock [Line Items]
Common stock, par value (in dollars per share) | $ / shares	$ 0.01	$ 0.01	$ 0.01
Common stock authorized (in shares)	70,000,000	70,000,000	70,000,000
Common stock issued (in shares)	10,186,000	9,917,000	10,006,000
Treasury Stock (in shares)	365,000	365,000	365,000
Class A Common shares issued (in shares)	172,000	108,000
Class B Common stock
Class of Stock [Line Items]
Common stock, par value (in dollars per share) | $ / shares	$ 0.01	$ 0.01	$ 0.01
Common stock, convertible conversion ratio	1	1	1
Common stock authorized (in shares)	30,000,000	30,000,000	30,000,000
Common stock issued (in shares)	4,037,000	4,074,000	4,045,000
Class B Common converted to Class A Common (in shares)	8,000	3,000

Stockholders' Equity - Accumula

Stockholders' Equity - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 80,105
Other comprehensive income (loss)	(54)	$ (5,156)
Reclassification adjustment to net income (loss)	338	393
Tax effects	(237)	1,053
Ending balance	82,699	53,396
Foreign Currency
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(9,775)	(8,221)
Other comprehensive income (loss)	(276)	(4,985)
Reclassification adjustment to net income (loss)	0	0
Tax effects	(79)	1,132
Ending balance	(10,130)	(12,074)
Deferred Gain (Loss) on Cash Flow Hedging
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(1,344)	(341)
Other comprehensive income (loss)	222	(171)
Reclassification adjustment to net income (loss)	182	154
Tax effects	(115)	(35)
Ending balance	(1,055)	(393)
Pension Plan Adjustment
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(6,357)	(7,570)
Other comprehensive income (loss)	0	0
Reclassification adjustment to net income (loss)	156	239
Tax effects	(43)	(44)
Ending balance	(6,244)	(7,375)
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(17,476)	(16,132)
Ending balance	$ (17,429)	$ (19,842)

Revenue (Details)

Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Disaggregation of Revenue [Line Items]
Revenue	$ 149,249	$ 120,846
Commercial products
Disaggregation of Revenue [Line Items]
Revenue	8,593	9,918
HBB
Disaggregation of Revenue [Line Items]
Revenue	149,249	120,846
HBB | Consumer products
Disaggregation of Revenue [Line Items]
Revenue	139,513	109,717
HBB | Licensing
Disaggregation of Revenue [Line Items]
Revenue	$ 1,143	$ 1,211
Maximum | Electric appliances
Disaggregation of Revenue [Line Items]
Warranty term	10 years
Maximum | Product and Service, Other
Disaggregation of Revenue [Line Items]
Warranty term	3 years
Minimum | Product and Service, Other
Disaggregation of Revenue [Line Items]
Warranty term	1 year

Contingencies (Details)

Contingencies (Details)	May 03, 2019USD ($)	Apr. 30, 2020USD ($)	Feb. 29, 2020USD ($)lease	Mar. 31, 2021USD ($)	Dec. 31, 2020USD ($)	Mar. 31, 2020USD ($)
Loss Contingencies [Line Items]
Amount awarded to plaintiff	$ 3,200,000	$ 300,000
Accrual for contingent product infringement litigation costs				$ 3,100,000
Number of leases allegedly breached | lease			49
Amount of final judgment			$ 8,100,000
Accrual for environmental investigation and remediation activities				3,100,000	$ 3,100,000	$ 4,200,000
Minimum
Loss Contingencies [Line Items]
Estimate of additional expenses				0
Maximum
Loss Contingencies [Line Items]
Estimate of additional expenses				$ 1,700,000

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Effective income tax rate reconciliation, percent	34.20%	24.90%
Effective income tax rate reconciliation, income tax penalties and interest expense	$ 0.4

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event - USD ($)	Apr. 09, 2021	Apr. 08, 2021
Subsequent Event [Line Items]
Line of credit facility, maximum borrowing capacity	$ 140,000,000	$ 125,000,000
Line of credit facility, accordion feature, term	60 days

Uncategorized Items - hbb-20210

Label	Element	Value
Restricted Cash and Cash Equivalents, Noncurrent	us-gaap_RestrictedCashAndCashEquivalentsNoncurrent	$ 378,000
Restricted Cash and Cash Equivalents, Noncurrent	us-gaap_RestrictedCashAndCashEquivalentsNoncurrent	824,000
Restricted Cash and Cash Equivalents, Current	us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue	210,000
Restricted Cash and Cash Equivalents, Current	us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue	$ 186,000