Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 04, 2022 | Jun. 30, 2021 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 152,963,013 | ||
Documents Incorporated by Reference | Portions of the Company's Proxy Statement for its 2022 annual meeting of stockholders are incorporated herein by reference in Part III of this Form 10-K. | ||
Entity Central Index Key | 0001709164 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Shares Outstanding Class A | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding (in shares) | 9,925,290 | ||
Shares Outstanding Class B | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding (in shares) | 3,994,396 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | Ernst & Young LLP |
Auditor Location | Cleveland, Ohio |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Revenue | $ 658,394 | $ 603,713 | $ 611,786 |
Cost of sales | 521,892 | 465,059 | 483,234 |
Gross profit | 136,502 | 138,654 | 128,552 |
Selling, general and administrative expenses | 104,763 | 99,990 | 100,381 |
Amortization of intangible assets | 200 | 1,249 | 1,377 |
Operating profit (loss) | 31,539 | 37,415 | 26,794 |
Interest expense, net | 2,854 | 1,998 | 2,975 |
Other expense (income), net | (272) | 1,685 | (358) |
Income (loss) from continuing operations before income taxes | 28,957 | 33,732 | 24,177 |
Income tax expense (benefit) | 7,651 | 9,665 | 9,084 |
Net income (loss) from continuing operations | 21,306 | 24,067 | 15,093 |
Income (loss) from discontinued operations, net of tax | 0 | 22,191 | (28,600) |
Net income (loss) | $ 21,306 | $ 46,258 | $ (13,507) |
Basic earnings (loss) per share: | |||
Continuing operations (in dollars per share) | $ 1.54 | $ 1.76 | $ 1.10 |
Discontinued operations (in dollars per share) | 0 | 1.62 | (2.09) |
Basic earnings (loss) per share (in dollars per share) | 1.54 | 3.39 | (0.99) |
Diluted earnings (loss) per share: | |||
Continuing operations (in dollars per share) | 1.53 | 1.76 | 1.10 |
Discontinued operations (in dollars per share) | 0 | 1.62 | (2.09) |
Diluted earnings (loss) per share (in dollars per share) | $ 1.53 | $ 3.37 | $ (0.99) |
Basic weighted average shares outstanding (in shares) | 13,880,000 | 13,657,000 | 13,690,000 |
Diluted weighted average shares outstanding (in shares) | 13,930,000 | 13,712,000 | 13,726,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 21,306 | $ 46,258 | $ (13,507) |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustment | 726 | 1,481 | 510 |
Loss on long-term intra-entity foreign currency transactions | (828) | (3,035) | (79) |
Cash flow hedging activity | 320 | (540) | (1,569) |
Reclassification of hedging activities into earnings | 386 | (463) | 349 |
Pension plan adjustment | 2,210 | 630 | 1,410 |
Reclassification of pension adjustments into earnings | 419 | 583 | 348 |
Total other comprehensive income (loss), net of tax | 3,233 | (1,344) | 969 |
Comprehensive income (loss) | $ 24,539 | $ 44,914 | $ (12,538) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 1,125 | $ 2,415 |
Trade receivables, net | 119,580 | 144,797 |
Inventory | 183,382 | 173,962 |
Prepaid expenses and other current assets | 14,273 | 15,118 |
Total current assets | 318,360 | 336,292 |
Property, plant and equipment, net | 30,485 | 23,490 |
Goodwill | 6,253 | 6,253 |
Other intangible assets, net | 1,692 | 1,892 |
Deferred tax assets | 4,006 | 6,965 |
Deferred costs | 18,703 | 13,449 |
Other non-current assets | 3,005 | 2,827 |
Total assets | 382,504 | 391,168 |
Current liabilities | ||
Accounts payable | 131,912 | 152,054 |
Accounts payable to NACCO Industries, Inc. | 0 | 505 |
Accrued compensation | 11,719 | 15,981 |
Accrued product returns | 6,429 | 6,853 |
Other current liabilities | 14,116 | 23,677 |
Total current liabilities | 164,176 | 199,070 |
Revolving credit agreements | 96,837 | 98,360 |
Other long-term liabilities | 19,212 | 13,633 |
Total liabilities | 280,225 | 311,063 |
Stockholders’ equity | ||
Preferred stock, par value $0.01 per share | 0 | 0 |
Capital in excess of par value | 61,586 | 58,485 |
Treasury stock | (5,960) | (5,960) |
Retained earnings | 60,753 | 44,915 |
Accumulated other comprehensive loss | (14,243) | (17,476) |
Total stockholders’ equity | 102,279 | 80,105 |
Total liabilities and stockholders' equity | 382,504 | 391,168 |
Class A Common stock, par value $0.01 per share; 10,267 and 10,006 shares issued as of December 31, 2021 and 2020, respectively | ||
Stockholders’ equity | ||
Common stock | 103 | 100 |
Class B Common stock, par value $0.01 per share, convertible into Class A on a one-for-one basis; 4,000 and 4,045 shares issued as of December 31, 2021 and 2020, respectively | ||
Stockholders’ equity | ||
Common stock | $ 40 | $ 41 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) shares in Thousands | Dec. 31, 2021$ / sharesshares | Dec. 31, 2020$ / sharesshares |
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Class A Common Stock | ||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares, issued (in shares) | shares | 10,267 | 10,006 |
Class B Common Stock | ||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares, issued (in shares) | shares | 4,000 | 4,045 |
Common stock, convertible conversion ratio | 1 | 1 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating activities | |||
Net income (loss) from continuing operations | $ 21,306 | $ 24,067 | $ 15,093 |
Adjustments to reconcile net income (loss) from continuing operations to net cash provided by (used for) operating activities: | |||
Depreciation and amortization | 4,913 | 3,907 | 4,002 |
Deferred income taxes | 2,110 | (1,431) | 1,487 |
Stock compensation expense | 3,237 | 3,978 | 2,797 |
Other | 1,025 | 2,055 | 616 |
Net changes in operating assets and liabilities: | |||
Affiliate payable | (505) | 9 | (1,920) |
Trade receivables | 27,631 | (41,314) | (22,769) |
Inventory | (9,077) | (65,808) | 13,674 |
Other assets | (4,729) | (550) | 1,127 |
Accounts payable | (20,037) | 40,215 | (7,043) |
Other liabilities | (8,017) | 6,938 | (6,842) |
Net cash provided (used for) by operating activities from continuing operations | 17,857 | (27,934) | 222 |
Investing activities | |||
Expenditures for property, plant and equipment | (11,844) | (3,312) | (4,122) |
Other | 0 | (500) | 0 |
Net cash (used for) provided by investing activities from continuing operations | (11,844) | (3,812) | (4,122) |
Financing activities | |||
Net additions (reductions) to revolving credit agreements | (1,550) | 39,761 | 11,873 |
Purchase of treasury stock | 0 | 0 | (5,960) |
Cash dividends paid | (5,468) | (5,053) | (4,851) |
Financing fees paid | (114) | (528) | 0 |
Other financing | (134) | 0 | 0 |
Net cash (used for) provided by financing activities from continuing operations | (7,266) | 34,180 | 1,062 |
Cash flows from discontinued operations | |||
Net cash provided by (used for) operating activities from discontinued operations | 0 | (6,193) | 3,953 |
Net cash provided by (used for) investing activities from discontinued operations | 0 | 6 | 585 |
Net cash provided by (used for) financing activities from discontinued operations | 0 | 0 | (103) |
Cash (used for) provided by discontinued operations | 0 | (6,187) | 4,435 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (33) | 25 | (785) |
Cash, cash equivalents and restricted cash | |||
Increase (decrease) for the period from continuing operations | (1,286) | 2,459 | (3,623) |
Balance at the beginning of the year | 3,436 | 7,164 | 6,352 |
Balance at the end of the year | 2,150 | 3,436 | 7,164 |
Continuing operations: | |||
Cash and cash equivalents | 1,125 | 2,415 | 2,142 |
Restricted cash included in prepaid expenses and other current assets | 48 | 208 | 0 |
Restricted cash included in other non-current assets | 977 | 813 | 0 |
Cash and cash equivalents of discontinued operations | 0 | 0 | 5,022 |
Total cash, cash equivalents, and restricted cash | $ 2,150 | $ 3,436 | $ 7,164 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common StockClass A Common Stock | Common StockClass B Common Stock | Capital in Excess of Par Value | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Balance, beginning of period at Dec. 31, 2018 | $ 56,818 | $ 93 | $ 44 | $ 51,714 | $ 0 | $ 22,068 | $ (17,101) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (13,507) | (13,507) | |||||
Issuance of common stock, net of conversions | 0 | 5 | (3) | (2) | |||
Purchase of treasury stock | (5,960) | (5,960) | |||||
Stock compensation expense | 2,797 | 2,797 | |||||
Cash dividends | (4,851) | (4,851) | |||||
Other comprehensive income (loss) | 272 | 272 | |||||
Reclassification adjustment to net income (loss) | 697 | 697 | |||||
Balance, end of period at Dec. 31, 2019 | 36,266 | 98 | 41 | 54,509 | (5,960) | 3,710 | (16,132) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 46,258 | 46,258 | |||||
Issuance of common stock, net of conversions | 0 | 2 | 0 | (2) | |||
Stock compensation expense | 3,978 | 3,978 | |||||
Cash dividends | (5,053) | (5,053) | |||||
Other comprehensive income (loss) | (1,464) | (1,464) | |||||
Reclassification adjustment to net income (loss) | 120 | 120 | |||||
Balance, end of period at Dec. 31, 2020 | 80,105 | 100 | 41 | 58,485 | (5,960) | 44,915 | (17,476) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 21,306 | 21,306 | |||||
Issuance of common stock, net of conversions | 0 | 3 | (1) | (2) | |||
Stock compensation expense | 3,103 | 3,103 | |||||
Cash dividends | (5,468) | (5,468) | |||||
Other comprehensive income (loss) | 2,428 | 2,428 | |||||
Reclassification adjustment to net income (loss) | 805 | 805 | |||||
Balance, end of period at Dec. 31, 2021 | $ 102,279 | $ 103 | $ 40 | $ 61,586 | $ (5,960) | $ 60,753 | $ (14,243) |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Common stock dividends (in dollars per share) | $ 0.395 | $ 0.37 | $ 0.355 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies | Nature of Operations and Summary of Significant Accounting Policies Nature of Operations Hamilton Beach Brands Holding Company (“Hamilton Beach Holding” or the “Company”) is a holding company and operates through its wholly-owned subsidiary Hamilton Beach Brands, Inc. (“HBB”). The Company also 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 only material assets held by Hamilton Beach Brands Holding Company are its investments in its consolidated subsidiary. Substantially all of its cash flows are provided by dividends paid or distributions made by its subsidiary. Hamilton Beach Brands Holding Company has not guaranteed any obligations of its subsidiary. HBB is a leading designer, marketer, and distributor of branded, small electric household and specialty housewares appliances, as well as commercial products for restaurants, bars, and hotels. HBB operates in the consumer, commercial and specialty small appliance markets. On September 29, 2017, NACCO Industries, Inc. ("NACCO"), Hamilton Beach Holding's former parent company, spun-off the Company to NACCO stockholders. In the spin-off, NACCO stockholders, in addition to retaining their shares of NACCO common stock, received one share of Hamilton Beach Brands Holding Company Class A common stock ("Class A Common") and one share of Hamilton Beach Brands Holding Company Class B common stock ("Class B Common") for each share of NACCO Class A or Class B common stock. In accordance with applicable authoritative accounting guidance, the Company accounted for the spin-off from NACCO based on the historical carrying value of assets and liabilities. NACCO did not receive any proceeds from the spin-off. Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements include the financial statements of the Company and have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Intercompany balances and transactions have been eliminated. Segment Information As of December 31, 2021, HBB is the Company’s single reportable operating segment. This is supported by the operational structure of HBB which is designed and managed to share resources across the entire suite of products offered by the business. Such resources include research and development, product design, marketing, operations, and administrative functions. The Company's chief operating decision maker does not regularly review financial information for individual product categories, sales channels, or geographic regions that would allow decisions to be made about allocation of resources or performance. Since the Company operates in one reportable segment, all required financial segment information can be found in the consolidated financial statements. Discontinued Operations A component of an entity that is disposed of by sale or abandonment is reported as discontinued operations if the transaction represents a strategic shift that will have a major effect on an entity's operations and financial results. The results of discontinued operations are aggregated and presented separately in the Consolidated Statements of Operations. There are no assets and liabilities of discontinued operations as of December 31, 2021 and 2020. KC’s cash flows are reflected as cash flows from discontinued operations within the Company’s Consolidated Statements of Cash Flows for each period presented. Amounts presented in discontinued operations have been derived from our consolidated financial statements and accounting records using the historical basis of assets, liabilities, and historical results of KC. The discontinued operations exclude general corporate allocations. Use of Estimates The preparation of financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses and disclosure of contingent assets and liabilities (if any). Actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents include cash in banks and highly liquid investments with original maturities of three months or less. Trade Receivables Allowances for doubtful accounts are maintained against trade receivables for estimated losses resulting from the inability of customers to make required payments. These allowances are based on both recent trends of certain customers estimated to be a greater credit risk as well as general trends of the entire customer pool. Accounts are written off against the allowance when it becomes evident collection will not occur. HBB maintains significant trade receivables balances with several large retail customers. At December 31, 2021 and 2020, receivables from HBB’s five largest customers represented 61% and 66%, respectively, of HBB's net trade receivables. HBB’s significant credit concentration is uncollateralized; however, historically, minimal credit losses have been incurred. Transfer of Financial Assets HBB has entered into an arrangement with a financial institution to sell certain U.S. trade receivables on a non-recourse basis. HBB utilizes this arrangement as an integral part of financing working capital. Under the terms of the agreement, HBB 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, HBB derecognized $140.7 million, $162.4 million, and $162.7 million of trade receivables during 2021, 2020 and 2019, respectively. The losses incurred on sold receivables in the consolidated results of operations for the years ended December 31, 2021, 2020, and 2019 were not material. The Company does not carry any servicing assets or liabilities. Cash proceeds from this arrangement are reflected as operating activities. Inventory Inventory is stated at the lower of cost or net realizable value with cost determined under the first-in, first-out (“FIFO”) method. Adjustments to the carrying value are recorded for estimated obsolescence or excess inventory equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. Assets Held for Sale During the fourth quarter of 2020, the Company committed to a plan to sell its Brazilian subsidiary and determined that it met all of the criteria to classify the assets and liabilities of this business as held for sale. 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, the Company is no longer committed to selling the subsidiary. The carrying amounts of the assets were reclassified to held and used during the second quarter of 2021. The disposal group had $1.9 million of accumulated other comprehensive losses at December 31, 2021, which will be recognized in net income upon substantial liquidation of the Brazilian subsidiary which is expected to occur in the first half of 2022. Property, Plant and Equipment Property, plant and equipment are measured at cost less accumulated depreciation, amortization and accumulated impairment losses. Depreciation and amortization are recorded generally using the straight-line method over the estimated useful lives of the assets. Estimated lives for buildings are up to 40 years, and for machinery, equipment and furniture and fixtures range from three The Company evaluates long-lived assets for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets to be held and used is measured by a comparison of the carrying amount of the asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount exceeds the fair value of the asset. Fair value is estimated at the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Goodwill and Intangible Assets Goodwill represents the excess of the purchase price of acquisitions over the estimated fair value of the net assets acquired. Goodwill is not amortized but evaluated at least annually for impairment. The Company conducts its annual test for impairment as of October 1 of each year and it may be conducted more frequently if changes in circumstances or the occurrence of events indicates that a potential impairment exists. Using a qualitative assessment in the current year, the Company determined that it was more-likely-than-not that the goodwill was not impaired and a quantitative test for impairment was not required. Intangible assets with finite lives are amortized over their estimated useful lives, which represent the period over which the asset is expected to contribute directly or indirectly to future cash flows. Intangible assets with finite lives are reviewed for impairment whenever events and circumstances indicate the carrying value of such assets may not be recoverable and exceed their fair value. If an impairment loss exists, the carrying amount of the intangible asset is adjusted to a new cost basis. The new cost basis is amortized over the remaining useful life of the asset. No impairment has been recognized for identifiable intangible assets or goodwill for any period presented. Environmental Liabilities HBB and environmental consultants are investigating or remediating historical environmental contamination at some current and former sites operated by HBB or by businesses it acquired. Liabilities for environmental matters are recorded in the period when it is determined to be probable and reasonably estimable that the Company will incur costs. When only a range of amounts is reasonably estimable and no amount within the range is more probable than another, the Company records the low end of the range. Environmental liabilities are recorded on an undiscounted basis and associated expense is recorded in selling, general, and administrative expenses. When recovery of a portion of an environmental liability is probable, such amounts are recognized as a reduction to selling, general, and administrative expenses and included in prepaid expenses and other current assets (current portion) and other non-current assets until settled. Revenue Recognition Revenue is recognized when control of the promised goods or services is transferred to the Company's customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Sales taxes are excluded from revenue. At contract inception, the Company assesses the goods and services promised in its contracts with customers and identifies a performance obligation for each promised good or service that is distinct. The Company has elected to account for shipping and handling activities performed after a customer obtains control of the goods as activities to fulfill the promise to transfer the goods, and therefore these activities are not assessed as a separate service to customers. The amount of revenue recognized varies primarily with price concessions and changes in returns. The Company offers price concessions to its customers for incentive offerings, special pricing agreements, price competition, promotions or other volume-based arrangements. The Company determines whether price concessions offered to its customers are a reduction of the transaction price and revenue or are advertising expense, depending on whether the Company receives a distinct good or service from our customers and, if so, whether the Company can reasonably estimate the fair value of that distinct good or service. The Company evaluated such agreements with our customers and determined they should be accounted for as variable consideration. To estimate variable consideration, the Company applies both the expected value method and most likely amount method based on the form of variable consideration, according to which method would provide the better prediction. The expected value method involves a probability weighted determination of the expected amount, whereas the most likely amount method identifies the single most likely outcome in a range of possible amounts. Product Development Costs Expenses associated with the development of new products and changes to existing products are charged to expense as incurred. These costs, included in selling, general and administrative expenses, amounted to $8.6 million, $10.0 million, and $12.1 million in 2021, 2020, and 2019, respectively. Foreign Currency Assets and liabilities of foreign operations are translated into U.S. dollars at the fiscal year-end exchange rate. Revenue and expenses of all foreign operations are translated using average monthly exchange rates prevailing during the year. The related translation adjustments, including translation on long-term intra-entity foreign currency transactions, are recorded as a separate component of stockholders’ equity. Financial Instruments Financial instruments held by the Company include cash and cash equivalents, trade receivables, accounts payable, revolving credit agreements, interest rate swap agreements and forward foreign currency exchange contracts. The Company does not hold or issue financial instruments or derivative financial instruments for trading purposes. Interest rate swap agreements and forward foreign currency exchange contracts held by the Company have been designated as hedges of forecasted cash flows. The Company holds these derivative contracts with high-quality financial institutions and limits the amount of credit exposure to any one institution. The Company does not currently hold any nonderivative instruments designated as hedges or any derivatives designated as fair value hedges. The Company uses forward foreign currency exchange contracts to partially reduce risks related to transactions denominated in foreign currencies. The Company offsets fair value amounts related to foreign currency exchange contracts executed with the same counterparty. These contracts hedge firm commitments and forecasted transactions relating to cash flows associated with sales and purchases denominated in currencies other than the subsidiaries’ functional currencies. Changes in the fair value of forward foreign currency exchange contracts that are effective as hedges are recorded in accumulated other comprehensive income (loss) (“AOCI”). Deferred gains or losses are reclassified from AOCI to the Consolidated Statements of Operations in the same period as the gains or losses from the underlying transactions are recorded and are generally recognized in cost of sales. The Company uses interest rate swap agreements to partially reduce risks related to floating rate financing agreements that are subject to changes in the market rate of interest. Terms of the interest rate swap agreements require the Company to receive a variable interest rate and pay a fixed interest rate. The Company’s interest rate swap agreements and its variable rate financings are predominately based upon LIBOR (London Interbank Offered Rate). For cash flow hedges, the Company formally assesses, both at inception and on a quarterly basis thereafter, whether the designated derivative instrument is highly effective in offsetting changes in cash flows of the hedged item. Changes in the fair value of interest rate swap agreements that are effective as hedges are recorded in AOCI. Deferred gains or losses are reclassified from AOCI to the Consolidated Statements of Operations in the same period as the gains or losses from the underlying transactions are recorded and are generally recognized in interest expense, net. The Company discontinues hedge accounting prospectively when the derivative is not highly effective as a hedge, the underlying hedged transaction is no longer probable, or the hedging instrument expires, is sold, terminated or exercised. The Company periodically enters into foreign currency exchange contracts that do not meet the criteria for hedge accounting. These derivatives are used to reduce the Company’s exposure to foreign currency risk related to forecasted purchase or sales transactions or forecasted intercompany cash payments or settlements. Gains and losses on these derivatives are included in other expense, net. Cash flows from hedging activities are reported in the Consolidated Statements of Cash Flows in the same classification as the hedged item, generally as a component of cash flows from operations. Fair Value Measurements The Company defines the fair value measurement of its financial assets and liabilities as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. Described below are the three levels of inputs that may be used to measure fair value: Level 1 - Quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities. Level 2 - Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. Level 3 - Unobservable inputs are used when little or no market data is available. The hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The classification of fair value measurements within the hierarchy is based upon the lowest level of input that is significant to the measurement. Stock Compensation Pursuant to the Executive Long-Term Equity Incentive Plan (the "Executive Plan") established in September 2017, and amended and restated in March 2020, the Company grants shares of Class A Common, subject to transfer restrictions, as a means of retaining and rewarding selected employees for long-term performance. Shares awarded under the Executive Plan are fully vested and entitle the stockholder to all rights of common stock ownership except that shares may not be assigned, pledged or otherwise transferred during the restriction period. In general, the restriction period ends after three five The Company also has a stock compensation plan for non-employee directors of the Company under which a portion of the annual retainer for each non-employee director is paid in transfer-restricted shares of Class A Common. For the year ended December 31, 2021 , $105,000 ($150,000 for the Chairman ) of the non-employee director's annual retainer of $167,000 ($250,000 for the Chairman) wa s paid in transfer-restricted shares of Class A Common. For the year ended December 31, 2020, $100,000 ($150,000 for the Chairman) of the non-employee director's annual retainer of $162,000 ($250,000 for the Chairman) was paid in transfer-restricted shares of Class A Common. Shares awarded under the plan are fully vested and entitle the stockholder to all rights of common stock ownership exce pt that shares may not be assigned, pledged or otherwise transferred during the restriction period. In general, the transfer restriction period ends at the earliest of (i) ten years after the Quarter Date with respect to which such Required Shares were issued or transferred, (ii) the date of the director's death or date the director terminates service as a director due to permanent disability, (ii i) five years (or earlier with the approval of the Board of Directors) after the director's date of retirement from the Board of Directors, or (iv) the date the director has both retired from the Board of Directors and has reached age 7 0. Pursuant to this plan, the Company issued 57,735, 74,337, and 50,237 shares in the years ended December 31, 2021, 2020 and 2019, respectively. I n addition to the mandatory retainer fee received in transfer-restricted stock, directors may elect to receive shares of Class A Common in lieu of cash for up to 100% of the balance of their ann ual retainer, committee retainer and any committee chairman's fees. These voluntary shares are not subject to any restrictions. Total shares issued under voluntary elections were 1,768 and 2,343 in 2021 and 2020. No shares were issued under voluntary elections in 2019. After the issuance of these shares, there were 283,869 shares of Class A Common available for issuance under this plan. Stock compensation expense related to these awards was $1.1 million, $1.1 million, and $1.2 million for the years ended December 31, 2021, 2020 and 2019, respectively. Stock compensation expense represents fair value based on the market price of the shares of Class A Common on the grant date. Treasury Stock The Company records the aggregate purchase price of treasury stock at cost and includes treasury stock as a reduction to stockholders' equity. Income Taxes Tax law requires certain items to be included in the tax return at different times than the items are reflected in the financial statements. Some of these differences are permanent, such as expenses that are not deductible for tax purposes, and some differences are temporary, reversing over time, such as depreciation expense. These temporary differences create deferred tax assets and liabilities using currently enacted tax rates. The objective of accounting for income taxes is to recognize the amount of taxes payable or refundable for the current year, and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in the financial statements or tax returns. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the provision for income taxes in the period that includes the enactment date. The Company is required to estimate the timing of the recognition of deferred tax assets and liabilities, make assumptions about the future deductibility of deferred tax assets and assess deferred tax liabilities based on enacted law and tax rates for the appropriate tax jurisdictions to determine the amount of such deferred tax assets and liabilities. Changes in the calculated deferred tax assets and liabilities may occur in certain circumstances, including statutory income tax rate changes, statutory tax law changes, or changes in the Company's structure or tax status. The Company's tax assets, liabilities, and tax expense are supported by historical earnings and losses and the Company's best estimates and assumptions of future earnings by jurisdiction. The Company assesses whether a valuation allowance should be established against the Company's deferred tax assets based on consideration of all available evidence, both positive and negative, using a more likely than not standard. This assessment considers, among other matters, scheduled reversals of deferred tax liabilities, projected future taxable income, tax-planning strategies, and results of recent operations. The assumptions about future taxable income require significant judgment and are consistent with the plans and estimates the Company is using to manage the underlying businesses. When the Company determines, based on all available evidence, that it is more likely than not that deferred tax assets will not be realized, a valuation allowance is established. Recently Issued Accounting Standards The Company is an emerging growth company and has elected not to opt out of the extended transition period for complying with new or revised accounting standards, which means that when a standard is issued or revised and it has different application dates for public or nonpublic entities, the Company can adopt the new or revised standard at the time nonpublic entities adopt the new or revised standard. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)," which requires an entity to recognize assets and liabilities for the rights and obligations created by leased assets. For nonpublic entities, the amendments are effective for fiscal years beginning after December 15, 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. The Company expects to record additional material assets and corresponding liabilities related to operating leases in the statement of financial position. 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 and smaller reporting companies, 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 beginning January 1, 2023 and subsequent interim periods 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
Discontinued Operations | 12 Months Ended |
Dec. 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 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. Neither Hamilton Beach Brands Holding Company nor HBB 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: Year Ended December 31 2020 2019 Revenue $ 631 $ 100,860 Cost of sales — 62,927 Gross profit 631 37,933 Selling, general and administrative expenses 1,346 54,047 Adjustment of lease termination liability (1) (16,457) 15,186 Adjustment of other current liabilities (2) (6,608) — Operating profit (loss) 22,350 (31,300) Interest expense — 583 Other expense, net 88 26 Income (loss) from discontinued operations before income taxes 22,262 (31,909) Income tax expense (benefit) 71 (3,309) Income (loss) from discontinued operations, net of tax $ 22,191 $ (28,600) (1) For the year ended December 31, 2020, 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 dissolution of KC, there were no assets or liabilities associated with KC as of December 31, 2021 and 2020. Neither Hamilton Beach Brands Holding Company nor HBB has guaranteed any obligations of KC. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net Property, plant and equipment, net includes the following: December 31 2021 2020 Land $ 226 $ 226 Furniture and fixtures 11,485 10,957 Building and improvements 9,737 10,145 Machinery and equipment 32,392 33,601 Internal-use capitalized software 14,615 15,582 Construction in progress, including internal-use capitalized software not yet in service 1,240 1,214 Property, plant and equipment, at cost 69,695 71,725 Less allowances for depreciation and amortization 39,210 48,235 $ 30,485 $ 23,490 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets other than goodwill, which are subject to amortization, consist of the following: Gross Carrying Accumulated Net Balance at December 31, 2021 Trademarks $ 3,100 $ (1,408) $ 1,692 $ 3,100 $ (1,408) $ 1,692 Balance at December 31, 2020 Customer relationships $ 5,760 $ (5,760) $ — Trademarks 3,100 (1,208) 1,892 Other intangibles 1,240 (1,240) — $ 10,100 $ (8,208) $ 1,892 Amortization expense for intangible assets was $0.2 million in 2021 and $1.2 million in 2020. Expected annual amortization expense of intangible assets for the next five years is $0.2 million. The remaining useful life of the trademark intangible asset is approximately 8.5 years. |
Current and Long-Term Financing
Current and Long-Term Financing | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Current and Long-Term Financing | Current and Long-Term Financing Financing arrangements exist at the subsidiary level. Hamilton Beach Brands Holding Company has not guaranteed any borrowings of its subsidiary. The following table summarizes HBB's available and outstanding borrowings: December 31 2021 2020 Total outstanding borrowings for continuing operations: Revolving credit agreements $ 96,837 $ 98,360 Total outstanding borrowings $ 96,837 $ 98,360 Total available borrowings, net of limitations, under revolving credit agreements $ 149,015 $ 123,277 Unused available borrowings $ 52,178 $ 24,917 Weighted average stated interest rate on total borrowings 2.18 % 2.51 % Weighted average effective interest rate on total borrowings (including interest rate swap agreements) 3.38 % 2.88 % Including swap settlements, interest paid on total debt was $2.8 million, $2.1 million, and $3.1 million during 2021 , 2020 , and 2019, respectively. Interest capitalized was $0.1 million in 2021, $0.3 million in 2020 and $0.4 million in 2019. On September 17, 2021, HBB entered into Amendment No. 10 to its 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”). Among other changes, the Amendment increased the credit facility from $125 million to $150 million, amended the pricing grid and increased the eligible inventory included in the borrowing base. Under the Amendment, dividends to Hamilton Beach Brands Holding Company are not to exceed $7.0 million during any calendar year to the extent that for the thirty days prior to the dividend payment date, and after giving effect to the dividend payment, HBB maintains excess availability of not less than $18.0 million. Dividends to Hamilton Beach Brands Holding Company are discretionary to the extent that for the thirty days prior to the dividend payment date, and after giving effect to the dividend payment, HBB maintains excess avail ability of not less than $30 million. In addition, the Amendment provides mechanics relating to the transition away from LIBOR as a benchmark interest rate and the replacement of LIBOR with a replacement or alternative benchmark interest rate. The Company expects to continue to borrow against the facility and make voluntary repayments within the next twelve months. Repayment of the credit facility is due on June 30, 2025, therefore all borrowings are classified as long-term debt as of December 31, 2021. The obligations under the HBB Facility are secured by substantially all of HBB's assets. The HBB Facility also requires HBB to achieve a minimum fixed charge coverage ratio in certain circumstances, as defined in the HBB Facility. At December 31, 2021, HBB was in compliance with all financial covenants in the HBB Facility. The maximum availability under the HBB Facility is governed by a borrowing base derived from advance rates against eligible trade receivables, inven tory and trademarks of the borrowers, as defined in the HBB Facility. Borrowings bear interest at a floating rate, which can be a base rate, LIBOR, or bankers' acceptance rate, as defined in the HBB Facility, plus an applicable margin. The applicable margins, effective December 31, 2021, for base rate loans and LIBOR loans denominated in U.S. dollars were 0.00% and 1.75%, respectively. The applicable margins, effective December 31, 2021, for base rate loans and bankers' acceptance loans denominated in Canadian dollars were 0.00% and 1.75%, respectively. The HBB Facility also requires a fee of 0.25% per annum on the unused commitment. The margins and unused commitment fee under the HBB Facility are subject to quarterly adjustment based on average excess availability. To reduce the exposure to changes in the market rate of interest, HBB has entered into interest rate swap agreements for a portion of the HBB Facility. Terms of the interest rate swap agreements require HBB to receive a variable interest rate and pay a fixed interest rate. HBB has interest rate swaps with notional values totaling $25.0 million at December 31, 2021 at an average fixed interest rate of 1.7%. HBB also entered into delayed-start interest rate swaps during the second and third quarter of 2021. These swaps have notional values totaling $75.0 million as of December 31, 2021, with an average fixed interest rate of 1.2%. |
Fair Value Disclosure
Fair Value Disclosure | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosure | Fair Value Disclosure Recurring Fair Value Measurements The Company measures its derivatives at fair value using significant observable inputs, which is Level 2 as defined in the fair value hierarchy. The Company uses a present value technique that incorporates the LIBOR swap curve, foreign currency spot rates and foreign currency forward rates to value its derivatives, including its interest rate swap agreements and foreign currency exchange contracts, and also incorporates the effect of its subsidiary and counterparty credit risk into the valuation. Other Fair Value Measurement Disclosures The carrying amounts of cash and cash equivalents, 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. The fair value of assets held for sale at December 31, 2020, classified as Level 3, were determined using a market approach based on market participant inputs. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Foreign Currency Derivatives HBB held forward foreign currency exchange contracts with total notional amounts of $15.1 million and $12.3 million at December 31, 2021, and 2020, respectively, denominated primarily in Canadian dollars and Mexican pesos. The fair value of these contracts approximated a receivable of less than $0.1 million at December 31, 2021 and a payable of $0.5 million at December 31, 2020. Forward foreign currency exchange contracts that qualify for hedge accounting are used to hedge transactions expected to occur within the next twelve months. The mark-to-market effect of forward foreign currency exchange contracts that are considered effective as hedges has been included in AOCI. Interest Rate Derivatives HBB has interest rate swaps that hedge interest payments on its one-month LIBOR borrowings. All swaps have been designated as cash flow hedges. The following table summarizes the notional amounts, related rates and remaining terms of interest rate swap agreements for HBB at December 31, in millions: Notional Amount Average Fixed Rate Remaining Term at 2021 2020 2021 2020 December 31, 2021 Interest rate swaps $ 25.0 $ 25.0 1.7 % 1.7 % Extending to January 2024 Delayed start interest rate swaps $ 75.0 $ — 1.2 % — % Extending to January 2029 The fair value of HBB's interest rate swap agreements was a payable of $0.9 million at December 31, 2021 and a payable of $1.2 million at December 31, 2020. The mark-to-market effect of interest rate swap agreements that are considered effective as hedges has been included in AOCI. The interest rate swap agreements held by HBB on December 31, 2021 are expected to continue to be effective as hedges. The following table summarizes the fair value of derivative instruments at December 31, as recorded in the Consolidated Balance Sheets: Asset Derivatives Liability Derivatives Balance sheet location 2021 2020 Balance sheet location 2021 2020 Interest rate swap agreements Current Prepaid expenses and other current assets $ — $ — Other current liabilities $ 216 $ 380 Long-term Other non-current assets — — Other long-term liabilities 655 779 Foreign currency exchange contracts Current Prepaid expenses and other current assets 73 — Other current liabilities 41 518 Total derivatives $ 73 $ — $ 912 $ 1,677 |
Leasing Arrangements
Leasing Arrangements | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leasing Arrangements | Leasing Arrangements HBB leases certain office and warehouse facilities as well as machinery and equipment under noncancellable operating leases that expire at various dates through 2034. Future minimum operating lease payments at December 31, 2021 are: Operating 2022 $ 7,619 2023 7,929 2024 7,765 2025 5,887 2026 5,404 Subsequent to 2026 38,592 Total minimum lease payments $ 73,196 Rental expense from continuing operations net of sublease rental income for all operating leases was $9.0 million in 2021, $6.2 million in 2020 and $5.6 million 2019. |
Stockholders' Equity and Earnin
Stockholders' Equity and Earnings Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Stockholders' Equity and Earnings Per Share | Stockholders' Equity and Earnings Per Share Capital Stock The authorized capital stock of Hamilton Beach Brands Holding Company consists of Class A Common, Class B Common and one series of Preferred stock. Voting, dividend, conversion and liquidation rights of the Preferred stock are established by the Board upon issuance of such Preferred stock. Hamilton Beach Brands Holding Company Class A Common is traded on the New York Stock Exchange under the ticker symbol “HBB.” Because of transfer restrictions on Class B Common, no trading market has developed, or is expected to develop, for the Class B Common. Subject to the rights of the holders of any series of preferred stock, each share of Class A Common will entitle the holder of the share to one vote on all matters submitted to stockholders, and each share of the Company's Class B Common will entitle the holder of the share to ten votes on all such matters. Subject to the rights of the preferred stockholders, each share of Class A Common and Class B Common will be equal in respect of rights to dividends, except that in the case of dividends payable in stock, only Class A Common will be distributed with respect to Class A Common and only Class B Common will be distributed with respect to Class B Common. As the liquidation and dividend rights are identical, any distribution of earnings would be allocated to Class A and Class B stockholders on a proportionate basis, and accordingly the net income per share for each class of common stock is identical. The following table sets forth the Company's authorized capital stock information: December 31 2021 2020 Preferred stock, par value $0.01 per share Preferred stock authorized 5,000 5,000 Preferred stock outstanding — — Class A Common stock, par value $0.01 per share Class A Common authorized 70,000 70,000 Class A Common issued (1)(2) 10,267 10,006 Treasury Stock 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 authorized 30,000 30,000 Class B Common issued (1) 4,000 4,045 (1) Class B Common converted to Class A Common were 45 shares during 2021 and 31 shares 2020. (2) The Company issued Class A Common of 216 during 2021 and 170 during 2020 related to the Company's stock compensation plan. Stock Repurchase Program In May 2018, the Company approved a stock repurchase program for the purchase of up to $25.0 million of the Company's Class A Common outstanding through December 31, 2019. On November 5, 2019, the Company's Board adopted a new stock repurchase program for the purchase of up to $25.0 million of the Company's Class A Common outstanding starting January 1, 2020 and ending December 31, 2021. During the year ended December 31, 2019, the Company repurchased 364,893 shares for an aggregate purchase price of $6.0 million. There were no share repurchases during the years ended December 31, 2021 and 2020. On February 22, 2022, the Company's Board approved a stock repurchase program for the purchase of up to $25 million of the Company's Class A Common outstanding starting February 22, 2022 and ending December 31, 2023. Accumulated Other Comprehensive Income (Loss) The following table summarizes changes in accumulated other comprehensive income (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, 2019 $ (8,652) $ 879 $ (9,328) $ (17,101) Other comprehensive income (loss) 481 (2,199) 1,882 164 Reclassification adjustment to net income (loss) — 490 727 1,217 Tax effects (50) 489 (851) (412) Balance, December 31, 2019 $ (8,221) $ (341) $ (7,570) $ (16,132) Other comprehensive income (loss) (896) (718) 844 (770) Reclassification adjustment to net income (loss) — (642) 701 59 Tax effects (658) 357 (332) (633) Balance, December 31, 2020 $ (9,775) $ (1,344) $ (6,357) $ (17,476) Other comprehensive income (loss) (181) 418 2,970 3,207 Reclassification adjustment to net income (loss) — 557 654 1,211 Tax effects 79 (269) (995) (1,185) Balance, December 31, 2021 $ (9,877) $ (638) $ (3,728) $ (14,243) Earnings per share The weighted average number of shares of Class A Common and Class B Common outstanding used to calculate basic and diluted earnings (loss) per share were as follows: 2021 2020 2019 Basic weighted average shares outstanding 13,880 13,657 13,690 Dilutive effect of share-based compensation awards 50 55 36 Diluted weighted average shares outstanding 13,930 13,712 13,726 Basic earnings (loss) per share: Continuing operations $ 1.54 $ 1.76 $ 1.10 Discontinued operations — 1.62 (2.09) Basic and diluted earnings (loss) per share $ 1.54 $ 3.39 $ (0.99) Diluted earnings (loss) per share: Continuing operations $ 1.53 $ 1.76 $ 1.10 Discontinued operations — 1.62 (2.09) Diluted earnings (loss) per share $ 1.53 $ 3.37 $ (0.99) |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [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 price concessions and changes in returns. The Company offers price concessions to our customers for incentive offerings, special pricing agreements, price competition, promotions or other volume-based arrangements. The Company 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 is 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 presents the HBB's revenue on a disaggregated basis for the year ending: Year Ended December 31 2021 2020 2019 Consumer products $ 612,795 $ 568,685 $ 559,279 Commercial products 40,978 30,066 48,028 Licensing 4,621 4,962 4,479 Total revenues $ 658,394 $ 603,713 $ 611,786 Walmart Inc. and its global subsidiaries accounted for approximately 28%, 35%, and 33% of HBB’s revenue in 2021, 2020, and 2019, respectively. Amazon.com, Inc. and its subsidiaries accounted for approximately 22%, 16%, and 14% of the HBB's revenue in 2021, 2020, and 2019 respectively. HBB’s five largest customers accounted for approximately 61%, 64%, and 58% of the HBB’s revenue in 2021, 2020, and 2019, respectively. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Hamilton Beach Holding and its subsidiary are involved in various legal and regulatory proceedings and claims that have arisen in the ordinary course of business, including product liability, patent infringement, asbestos related claims, environmental and other claims. Although it is difficult to predict the ultimate outcome of these proceedings and claims, the Company believes the ultimate disposition of these matters will not have a material adverse effect on the financial condition, results of operation or cash flows of the Company. Any costs that the Company 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. Proceedings and claims asserted against the Company or its subsidiary 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. 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. Environmental matters HBB is investigating or remediating historical environmental contamination at some current and former sites operated by HBB or by businesses it acquired. Based on the current stage of the investigation or remediation at each known site, HBB estimates the total investigation and remediation costs and the period of assessment and remediation activity required for each site. The estimate of future investigation and remediation costs is primarily based on variables associated with site clean-up, including, but not limited to, physical characteristics of the site, the nature and extent of the contamination and applicable regulatory programs and remediation standards. No assessment can fully characterize all subsurface conditions at a site. There is no assurance that additional assessment and remediation efforts will not result in adjustments to estimated remediation costs or the time frame for remediation at these sites. HBB's estimates of investigation and remediation costs may change if it discovers contamination at additional sites or additional contamination at known sites, if the effectiveness of its current remediation efforts change, if applicable federal or state regulations change or if HBB's estimate of the time required to remediate the sites changes. HBB's revised estimates may differ materially from original estimates. At December 31, 2021 and December 31, 2020, HBB had accrued undiscounted obligations of $3.4 million and $3.1 million respectively, for environmental investigation and remediation activities. The increase in the amount accrued at December 31, 2021 compared to December 31, 2020 is due to a change in the expected type and extent of investigation and remediation activities associated with one of the sites. HBB estimates that it is reasonably possible that it may incur additional expenses in the range of zero to $1.6 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 December 31, 2021, the receivable has been collected and $1.0 million is restricted cash. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income (loss) from continuing operations before income taxes and the income tax expense (benefit) for the years ended December 31, are as follows: 2021 2020 2019 Income (loss) from continuing operations before income taxes Domestic $ 27,187 $ 31,140 $ 24,835 Foreign 1,770 2,592 (658) $ 28,957 $ 33,732 $ 24,177 Income tax expense (benefit) within continuing operations Current income tax expense (benefit): Federal $ 2,520 $ 7,006 $ 2,966 State 1,015 1,877 1,106 Foreign 2,006 2,213 3,525 Total current 5,541 11,096 7,597 Deferred income tax expense (benefit): Federal 1,815 (924) 856 State 556 (325) 1,676 Foreign (261) (182) (1,045) Total deferred 2,110 (1,431) 1,487 $ 7,651 $ 9,665 $ 9,084 The Company made $6.4 million and $1.9 million federal income tax payments during 2021 and 2019, respectively, to the IRS and to NACCO as a member of the consolidated income tax return for periods prior to spin off. No federal income tax payments were made during 2020. The Company made foreign and state income tax payments of $2.6 million, $2.9 million, and $3.6 million during 2021, 2020, and 2019, respectively. No income tax refunds were received in 2021. Income tax refunds totaled $1.0 million in 2020 and $0.1 million in 2019. A reconciliation of the federal statutory and effective income tax rate for the years ended December 31, is as follows: 2021 2020 2019 $ % $ % $ % Income (loss) from continuing operations before income taxes $ 28,957 $ 33,732 $ 24,177 Statutory taxes at 21% $ 6,081 21.0 % $ 7,092 21.0 % $ 5,077 21.0 % State and local income taxes 1,357 4.7 % 1,136 3.4 % 1,031 4.3 % Valuation allowances 297 1.0 % 614 1.8 % 2,190 9.1 % Other non-deductible expenses 579 2.0 % 415 1.2 % 253 1.0 % Credits (681) (2.4) % (700) (2.1) % (1,195) (4.9) % Effect of foreign operations (399) (1.4) % 120 0.4 % (606) (2.5) % Loss on Kitchen Collection dissolution — — % 616 1.8 % — — % Unrecognized tax benefits 687 2.4 % 708 2.1 % 2,719 11.2 % Other, net (270) (0.9) % (336) (1.0) % (385) (1.6) % Income tax provision $ 7,651 26.4 % $ 9,665 28.7 % $ 9,084 37.6 % A detailed summary of the total deferred tax assets and liabilities in the Company's Consolidated Balance Sheets resulting from differences in the book and tax basis of assets and liabilities follows: December 31 2021 2020 Deferred tax assets Tax carryforwards $ 2,841 $ 3,002 Inventory 2,084 2,114 Accrued expenses and reserves 7,338 4,436 Other employee benefits 2,852 4,700 Other 1,046 2,374 Total deferred tax assets 16,161 16,626 Less: Valuation allowances (2,095) (2,102) 14,066 14,524 Deferred tax liabilities Inventory 550 1,099 Accrued pension benefits 4,119 3,262 Depreciation and amortization 5,355 3,198 Total deferred tax liabilities 10,024 7,559 Net deferred tax asset $ 4,042 $ 6,965 As of December 31, 2021 and 2020, respectively, HBB maintained valuation allowances with respect to certain deferred tax assets relating primarily to operating losses in certain non-U.S. jurisdictions that HBB believes are not likely to be realized. The following table summarizes the tax carryforwards and associated carryforward periods and related valuation allowances where the Company has determined that realization is uncertain: December 31, 2021 Net deferred tax Valuation Carryforwards Non-U.S. net operating loss $ 2,841 $ 1,399 2022 - Indefinite December 31, 2020 Net deferred tax Valuation Carryforwards Non-U.S. net operating loss $ 3,002 $ 1,363 2021 - Indefinite Based upon the review of historical earnings and the relevant expiration of carryforwards, the Company believes the valuation allowances are appropriate and does not expect to release valuation allowances within the next twelve months that would have a significant effect on the Company’s financial position or results of operations. As of December 31, 2021, the cumulative unremitted earnings of the Company's foreign subsidiaries are approximately $12.5 million. The Company has recorded the tax impact for the unremitted earnings as allowed under the Tax Cuts and Jobs Act (the "Tax Act"), a portion of which is classified in other long-term liabilities as the Company has elected to make payments over eight years. The Company continues to conclude all material entities’ foreign earnings will be indefinitely reinvested in its foreign operations and will remain offshore in order to meet the capital and business needs outside of the U.S. As a result, the Company does not provide a deferred tax liability with respect to the cumulative unremitted earnings. It is not practicable to determine the deferred tax liability associated with these undistributed earnings due to the availability of foreign tax credits. The Company made an accounting policy election to account for the global intangible low-tax income as a current period expense when incurred. The Company recognizes any tax impacts of global intangible low-taxed income (GILTI) as period costs similar to other special deductions, and not as deferred taxes for basis differences. The following is a reconciliation of the Company's total gross unrecognized tax benefits, defined as the aggregate tax effect of differences between tax return positions and the benefits recognized in the financial statements for the years ended December 31, 2021, 2020, and 2019. Approximately $3.8 million, $4.0 million, and $3.0 million of these gross amounts as of December 31, 2021, 2020, and 2019, respectively, relate to permanent items that, if recognized, would impact the effective income tax rate. This amount differs from the gross unrecognized tax benefits presented in the table below due to the decrease in U.S. federal income taxes which would occur upon the recognition of the state tax benefits included herein. 2021 2020 2019 Balance at January 1 $ 4,114 $ 4,266 $ 1,576 Additions (reductions) based on tax positions related to prior years (110) (116) 97 Additions based on tax positions related to the current year 40 130 2,593 Reductions for lapse of statute of limitations — (166) — Reductions due to settlements with taxing authorities (189) — — Balance at December 31 $ 3,855 $ 4,114 $ 4,266 The Company records interest and penalties on uncertain tax positions as a component of the income tax provision. The Company recognized expense of $1.1 million, $0.7 million, and $0.1 million related to interest and penalties as of December 31, 2021, 2020 and 2019, respectively. The total amount of interest and penalties accrued was $1.9 million, $0.7 million, and $0.1 million as of December 31, 2021, 2020 and 2019, respectively. In general, the Company operates in taxing jurisdictions that provide a statute of limitations period ranging from three to five years for the taxing authorities to review the applicable tax filings. The examination of NACCO's 2013-2016 U.S. federal tax returns is ongoing, and exam years from 2017 onwards remain open for federal tax returns. The Company is generally open for examination of state and foreign jurisdictions for the tax year 2016 and beyond. In addition, the Company does not have any material taxing jurisdictions in which the statute of limitations has been extended beyond the applicable time frame allowed by law. |
Retirement Benefit Plans
Retirement Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Retirement Benefit Plans | Retirement Benefit Plans Defined Benefit Plans The Company maintains two defined benefit pension plans that provide benefits based on years of service and average compensation during certain periods. The Company's U.S. plan was frozen, effective December 31, 1996, for participation and benefit accrual purposes (except cash balance interest credits required by law). Similarly, the Company’s non-U.S. plan was frozen, effective December 31, 2008. The assumptions used in accounting for the defined benefit plans were as follows for the years ended December 31: 2021 2020 2019 U.S. Plan Discount rate for pension benefit obligation 2.46 % 1.87 % 2.88 % Discount rate for net periodic benefit (income) expense 1.87 % 2.88 % 4.00 % Expected long-term rate of return on assets for net periodic pension (income) expense 7.25 % 7.50 % 7.50 % Non-U.S. Plan Discount rate for pension benefit obligation 2.90 % 2.38 % 2.96 % Discount rate for net periodic benefit (income) expense 2.38 % 2.96 % 3.50 % Expected long-term rate of return on assets for net periodic pension (income) expense 4.75 % 5.00 % 5.50 % Set forth below is a detail of the net periodic pension (income) expense, included in other expense (income), net for the defined benefit plans for the years ended December 31: 2021 2020 2019 U.S. Plan Interest cost $ 338 $ 527 $ 727 Expected return on plan assets (2,033) (2,011) (1,987) Amortization of actuarial loss 591 631 561 Net periodic pension (income) expense $ (1,104) $ (853) $ (699) Non-U.S. Plan Interest cost $ 118 $ 128 $ 144 Expected return on plan assets (260) (253) (263) Amortization of actuarial loss 63 70 72 Net periodic pension (income) expense $ (79) $ (55) $ (47) Set forth below is the detail of other changes in plan assets and benefit obligations recognized in other comprehensive loss (income) for the years ended December 31: 2021 2020 2019 U.S. Plan Current year actuarial loss (gain) $ (2,228) $ (1,080) $ (1,727) Amortization of actuarial loss (591) (631) (561) Total recognized in other comprehensive loss (income) $ (2,819) $ (1,711) $ (2,288) Non-U.S. Plan Current year actuarial loss (gain) $ (742) $ 236 $ (155) Amortization of actuarial loss (63) (70) (72) Total recognized in other comprehensive loss (income) $ (805) $ 166 $ (227) The following table sets forth the changes in the benefit obligation and the plan assets during the year and the funded status of the defined benefit plans at December 31: 2021 2020 U.S. Non-U.S. U.S. Plan Non-U.S. Change in benefit obligation Projected benefit obligation at beginning of year $ 18,978 $ 5,000 $ 19,374 $ 4,570 Interest cost 338 118 527 128 Actuarial (gain) loss (649) (309) 972 399 Benefits paid (1,663) (228) (1,895) (205) Foreign currency exchange rate changes — 26 — 108 Projected benefit obligation at end of year $ 17,004 $ 4,607 $ 18,978 $ 5,000 Accumulated benefit obligation at end of year $ 17,004 $ 4,607 $ 18,978 $ 5,000 Change in plan assets Fair value of plan assets at beginning of year $ 31,070 $ 5,497 $ 28,900 $ 5,350 Actual return on plan assets 3,612 676 4,065 428 Benefits paid (1,663) (228) (1,895) (205) Foreign currency exchange rate changes — (173) — (76) Fair value of plan assets at end of year $ 33,019 $ 5,772 $ 31,070 $ 5,497 Funded status at end of year $ 16,015 $ 1,165 $ 12,092 $ 497 Amounts recognized in the balance sheets consist of: Non-current assets $ 16,015 $ 1,165 $ 12,092 $ 497 Components of accumulated other comprehensive loss consist of: Actuarial loss $ (4,610) $ (419) $ (7,429) $ (1,224) Deferred taxes 1,179 122 1,901 395 $ (3,431) $ (297) $ (5,528) $ (829) The actuarial loss included in accumulated other comprehensive loss expected to be recognized in net periodic pension (income) expense in 2022 is $0.4 million. The Company recognizes as a component of benefit cost (income), as of the measurement date, any unrecognized actuarial net gains or losses that exceed 10% of the larger of the projected benefit obligations or the plan assets, defined as the "corridor." Amounts outside the corridor are amortized over the average expected remaining lifetime of inactive participants for the pension plans. The gain (loss) amounts recognized in AOCI are not expected to be fully recognized until the plan is terminated or as settlements occur, which would trigger accelerated recognition. The Company's policy is to make contributions to fund its pension plans within the range allowed by applicable regulations. The Company does not expect to contribute to its U.S. and non-U.S. pension plans in 2022. Pension benefit payments are made from assets of the pension plans. Future pension benefit payments expected to be paid from assets of the pension plans are: U.S. Plan Non-U.S. Plan 2022 $ 1,753 $ 239 2023 1,672 247 2024 1,550 255 2025 1,453 261 2026 1,339 273 2027-2031 5,228 1,312 $ 12,995 $ 2,587 The expected long-term rate of return on defined benefit plan assets reflects the Company's expectations of long-term rates of return on funds invested to provide for benefits included in the projected benefit obligations. In establishing the expected long-term rate of return assumption for plan assets, the Company considers the historical rates of return over a period of time that is consistent with the long-term nature of the underlying obligations of these plans as well as a forward-looking rate of return. The historical and forward-looking rates of return for each of the asset classes used to determine the Company's estimated rate of return assumption were based upon the rates of return earned or expected to be earned by investments in the equivalent benchmark market indices for each of the asset classes. Expected returns for U.S. pension plans are based on a calculated market-related value for U.S. pension plan assets. Under this methodology, asset gains and losses resulting from actual returns that differ from the Company's expected returns are recognized in the market-related value of assets ratably over three years. Expected returns for non-U.S. pension plans are based on fair market value for non-U.S. pension plan assets. The pension plans maintain investment policies that, among other things, establish a portfolio asset allocation methodology with percentage allocation bands for individual asset classes. The investment policies provide that investments are reallocated between asset classes as balances exceed or fall below the appropriate allocation bands. The following is the actual allocation percentage and target allocation percentage for the U.S. pension plan assets at December 31: 2021 Actual Allocation 2020 Actual Allocation Target Allocation U.S. equity securities 48.3 % 45.5 % 36.0% - 54.0% Non-U.S. equity securities 19.8 % 20.3 % 16.0% - 24.0% Fixed income securities 31.3 % 33.8 % 30.0% - 40.0% Money market 0.6 % 0.4 % 0.0% - 10.0% The following is the actual allocation percentage and target allocation percentage for the Non-U.S. pension plan assets at December 31: 2021 Actual Allocation 2020 Actual Allocation Target Allocation Canadian equity securities 34.2 % 29.5 % 25.0% - 35.0% Non-Canadian equity securities 38.3 % 34.4 % 25.0% - 35.0% Fixed income securities 27.5 % 36.1 % 30.0% - 50.0% Money market — % — % 0.0% - 5.0% The fair value of each major category of the Company's U.S. pension plan assets are valued using quoted market prices in active markets for identical assets, or Level 1 in the fair value hierarchy. The fair value of each major category of the Company's Non-U.S. pension plan assets are valued using observable inputs, either directly or indirectly, other than quoted market prices in active markets for identical assets. Following are the values as of December 31: U.S. Plan Non-U.S. Plan 2021 2020 2021 2020 U.S. equity securities $ 15,957 $ 14,113 $ 1,325 $ 1,064 Non-U.S. equity securities 6,535 6,321 2,857 2,445 Fixed income securities 10,330 10,510 1,590 1,988 Money market 197 126 — — Total $ 33,019 $ 31,070 $ 5,772 $ 5,497 Defined Contribution Plans HBB maintains a defined contribution (401(k)) plan for substantially all U.S. employees and similar plans for employees outside of the U.S. The Company's U.S. plan provides employer safe harbor contributions based on plan provisions and both defined contribution retirement plans provide for a separate employer contribution. These plans permit additional profit-sharing contributions, determined annually, that are based on a formula that includes (i) the effect of actual operating profit results compared with targeted operating profit results and (ii) the age and/or compensation of the participants. Total costs, including Company contributions, for these plans were $5.0 million in 2021, $5.1 million in 2020 and $5.0 million in 2019. |
Data by Geographic Region
Data by Geographic Region | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Data by Geographic Region | Data by Geographic Region Revenue and property, plant and equipment related to continuing operations outside the U.S., based on customer and asset location, are as follows: U.S. Other Consolidated 2021 Revenue from unaffiliated customers $ 524,093 $ 134,301 $ 658,394 Property, plant and equipment, net $ 26,604 $ 3,881 $ 30,485 2020 Revenue from unaffiliated customers $ 493,573 $ 110,140 $ 603,713 Property, plant and equipment, net $ 18,021 $ 5,469 $ 23,490 2019 Revenue from unaffiliated customers $ 463,608 $ 148,178 $ 611,786 Property, plant and equipment, net $ 16,828 $ 5,496 $ 22,324 No single country outside of the U.S. comprised 10% or more of HBB's revenue from unaffiliated customers. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS HAMILTON BEACH BRANDS HOLDING COMPANY YEAR ENDED DECEMBER 31, 2021, 2020, AND 2019 Additions Description Balance at Beginning of Period Charged to Charged to Deductions Balance at (In thousands) 2021 Reserves deducted from asset accounts: Allowance for doubtful accounts $ 1,144 $ (179) $ — $ (71) (A) $ 1,036 Deferred tax valuation allowances $ 2,102 $ 170 — $ 177 (C) $ 2,095 2020 Reserves deducted from asset accounts: Allowance for doubtful accounts $ 1,023 $ 412 $ — $ 291 (A) $ 1,144 Deferred tax valuation allowances $ 7,625 $ 614 $ — $ 6,137 (C,D) $ 2,102 2019 Reserves deducted from asset accounts: Allowance for doubtful accounts $ 713 $ 309 $ — $ (1) (A) $ 1,023 Deferred tax valuation allowances $ 1,162 $ 6,502 $ — $ 39 (C) $ 7,625 (A) Write-offs, net of recoveries and foreign exchange rate adjustments. (B) Balances which are not required to be presented and those which are immaterial have been omitted. (C) Foreign exchange rate adjustments and utilization of foreign entity losses. (D) Utilization of Kitchen Collection losses. |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying consolidated financial statements include the financial statements of the Company and have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). |
Principles of Consolidation | Intercompany balances and transactions have been eliminated. |
Segment Information | Segment Information As of December 31, 2021, HBB is the Company’s single reportable operating segment. This is supported by the operational structure of HBB which is designed and managed to share resources across the entire suite of products offered by the business. Such resources include research and development, product design, marketing, operations, and administrative functions. The Company's chief operating decision maker does not regularly review financial information for individual product categories, sales channels, or geographic regions that would allow decisions to be made about allocation of resources or performance. Since the Company operates in one reportable segment, all required financial segment information can be found in the consolidated financial statements. |
Discontinued Operations | Discontinued Operations A component of an entity that is disposed of by sale or abandonment is reported as discontinued operations if the transaction represents a strategic shift that will have a major effect on an entity's operations and financial results. The results of discontinued operations are aggregated and presented separately in the Consolidated Statements of Operations. There are no assets and liabilities of discontinued operations as of December 31, 2021 and 2020. KC’s cash flows are reflected as cash flows from discontinued operations within the Company’s Consolidated Statements of Cash Flows for each period presented. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses and disclosure of contingent assets and liabilities (if any). Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash in banks and highly liquid investments with original maturities of three months or less. |
Trade Receivable | Trade Receivables Allowances for doubtful accounts are maintained against trade receivables for estimated losses resulting from the inability of customers to make required payments. These allowances are based on both recent trends of certain customers estimated to be a greater credit risk as well as general trends of the entire customer pool. Accounts are written off against the allowance when it becomes evident collection will not occur. |
Transfer of Financial Assets | Transfer of Financial Assets HBB has entered into an arrangement with a financial institution to sell certain U.S. trade receivables on a non-recourse basis. HBB utilizes this arrangement as an integral part of financing working capital. Under the terms of the agreement, HBB 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, HBB derecognized $140.7 million, $162.4 million, and $162.7 million of trade receivables during 2021, 2020 and 2019, respectively. The losses incurred on sold receivables in the consolidated results of operations for the years ended December 31, 2021, 2020, and 2019 were not material. The Company does not carry any servicing assets or liabilities. Cash proceeds from this arrangement are reflected as operating activities. |
Inventory | Inventory Inventory is stated at the lower of cost or net realizable value with cost determined under the first-in, first-out (“FIFO”) method. Adjustments to the carrying value are recorded for estimated obsolescence or excess inventory equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. |
Assets Held for Sale | Assets Held for SaleDuring the fourth quarter of 2020, the Company committed to a plan to sell its Brazilian subsidiary and determined that it met all of the criteria to classify the assets and liabilities of this business as held for sale. 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, the Company is no longer committed to selling the subsidiary. The carrying amounts of the assets were reclassified to held and used during the second quarter of 2021. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are measured at cost less accumulated depreciation, amortization and accumulated impairment losses. Depreciation and amortization are recorded generally using the straight-line method over the estimated useful lives of the assets. Estimated lives for buildings are up to 40 years, and for machinery, equipment and furniture and fixtures range from three |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill represents the excess of the purchase price of acquisitions over the estimated fair value of the net assets acquired. Goodwill is not amortized but evaluated at least annually for impairment. The Company conducts its annual test for impairment as of October 1 of each year and it may be conducted more frequently if changes in circumstances or the occurrence of events indicates that a potential impairment exists. Using a qualitative assessment in the current year, the Company determined that it was more-likely-than-not that the goodwill was not impaired and a quantitative test for impairment was not required. Intangible assets with finite lives are amortized over their estimated useful lives, which represent the period over which the asset is expected to contribute directly or indirectly to future cash flows. Intangible assets with finite lives are reviewed for impairment whenever events and circumstances indicate the carrying value of such assets may not be recoverable and exceed their fair value. If an impairment loss exists, the carrying amount of the intangible asset is adjusted to a new cost basis. The new cost basis is amortized over the remaining useful life of the asset. |
Environmental Liabilities | Environmental Liabilities HBB and environmental consultants are investigating or remediating historical environmental contamination at some current and former sites operated by HBB or by businesses it acquired. Liabilities for environmental matters are recorded in the period when it is determined to be probable and reasonably estimable that the Company will incur costs. When only a range of amounts is reasonably estimable and no amount within the range is more probable than another, the Company records the low end of the range. Environmental liabilities are recorded on an undiscounted basis and associated expense is recorded in selling, general, and administrative expenses. When recovery of a portion of an environmental liability is probable, such amounts are recognized as a reduction to selling, general, and administrative expenses and included in prepaid expenses and other current assets (current portion) and other non-current assets until settled. |
Revenue Recognition | Revenue Recognition Revenue is recognized when control of the promised goods or services is transferred to the Company's customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Sales taxes are excluded from revenue. At contract inception, the Company assesses the goods and services promised in its contracts with customers and identifies a performance obligation for each promised good or service that is distinct. The Company has elected to account for shipping and handling activities performed after a customer obtains control of the goods as activities to fulfill the promise to transfer the goods, and therefore these activities are not assessed as a separate service to customers. The amount of revenue recognized varies primarily with price concessions and changes in returns. The Company offers price concessions to its customers for incentive offerings, special pricing agreements, price competition, promotions or other volume-based arrangements. The Company determines whether price concessions offered to its customers are a reduction of the transaction price and revenue or are advertising expense, depending on whether the Company receives a distinct good or service from our customers and, if so, whether the Company can reasonably estimate the fair value of that distinct good or service. The Company evaluated such agreements with our customers and determined they should be accounted for as variable consideration. To estimate variable consideration, the Company applies both the expected value method and most likely amount method based on the form of variable consideration, according to which method would provide the better prediction. The expected value method involves a probability weighted determination of the expected amount, whereas the most likely amount method identifies the single most likely outcome in a range of possible amounts. |
Product Development Costs | Product Development CostsExpenses associated with the development of new products and changes to existing products are charged to expense as incurred. |
Foreign Currency | Foreign Currency Assets and liabilities of foreign operations are translated into U.S. dollars at the fiscal year-end exchange rate. Revenue and expenses of all foreign operations are translated using average monthly exchange rates prevailing during the year. The related translation adjustments, including translation on long-term intra-entity foreign currency transactions, are recorded as a separate component of stockholders’ equity. |
Financial Instruments | Financial Instruments Financial instruments held by the Company include cash and cash equivalents, trade receivables, accounts payable, revolving credit agreements, interest rate swap agreements and forward foreign currency exchange contracts. The Company does not hold or issue financial instruments or derivative financial instruments for trading purposes. Interest rate swap agreements and forward foreign currency exchange contracts held by the Company have been designated as hedges of forecasted cash flows. The Company holds these derivative contracts with high-quality financial institutions and limits the amount of credit exposure to any one institution. The Company does not currently hold any nonderivative instruments designated as hedges or any derivatives designated as fair value hedges. The Company uses forward foreign currency exchange contracts to partially reduce risks related to transactions denominated in foreign currencies. The Company offsets fair value amounts related to foreign currency exchange contracts executed with the same counterparty. These contracts hedge firm commitments and forecasted transactions relating to cash flows associated with sales and purchases denominated in currencies other than the subsidiaries’ functional currencies. Changes in the fair value of forward foreign currency exchange contracts that are effective as hedges are recorded in accumulated other comprehensive income (loss) (“AOCI”). Deferred gains or losses are reclassified from AOCI to the Consolidated Statements of Operations in the same period as the gains or losses from the underlying transactions are recorded and are generally recognized in cost of sales. The Company uses interest rate swap agreements to partially reduce risks related to floating rate financing agreements that are subject to changes in the market rate of interest. Terms of the interest rate swap agreements require the Company to receive a variable interest rate and pay a fixed interest rate. The Company’s interest rate swap agreements and its variable rate financings are predominately based upon LIBOR (London Interbank Offered Rate). For cash flow hedges, the Company formally assesses, both at inception and on a quarterly basis thereafter, whether the designated derivative instrument is highly effective in offsetting changes in cash flows of the hedged item. Changes in the fair value of interest rate swap agreements that are effective as hedges are recorded in AOCI. Deferred gains or losses are reclassified from AOCI to the Consolidated Statements of Operations in the same period as the gains or losses from the underlying transactions are recorded and are generally recognized in interest expense, net. The Company discontinues hedge accounting prospectively when the derivative is not highly effective as a hedge, the underlying hedged transaction is no longer probable, or the hedging instrument expires, is sold, terminated or exercised. The Company periodically enters into foreign currency exchange contracts that do not meet the criteria for hedge accounting. These derivatives are used to reduce the Company’s exposure to foreign currency risk related to forecasted purchase or sales transactions or forecasted intercompany cash payments or settlements. Gains and losses on these derivatives are included in other expense, net. Cash flows from hedging activities are reported in the Consolidated Statements of Cash Flows in the same classification as the hedged item, generally as a component of cash flows from operations. |
Fair Value Measurements | Fair Value Measurements The Company defines the fair value measurement of its financial assets and liabilities as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. Described below are the three levels of inputs that may be used to measure fair value: Level 1 - Quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities. Level 2 - Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. Level 3 - Unobservable inputs are used when little or no market data is available. The hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The classification of fair value measurements within the hierarchy is based upon the lowest level of input that is significant to the measurement. |
Stock Compensation | Stock Compensation Pursuant to the Executive Long-Term Equity Incentive Plan (the "Executive Plan") established in September 2017, and amended and restated in March 2020, the Company grants shares of Class A Common, subject to transfer restrictions, as a means of retaining and rewarding selected employees for long-term performance. Shares awarded under the Executive Plan are fully vested and entitle the stockholder to all rights of common stock ownership except that shares may not be assigned, pledged or otherwise transferred during the restriction period. In general, the restriction period ends after three five The Company also has a stock compensation plan for non-employee directors of the Company under which a portion of the annual retainer for each non-employee director is paid in transfer-restricted shares of Class A Common. For the year ended December 31, 2021 , $105,000 ($150,000 for the Chairman ) of the non-employee director's annual retainer of $167,000 ($250,000 for the Chairman) wa s paid in transfer-restricted shares of Class A Common. For the year ended December 31, 2020, $100,000 ($150,000 for the Chairman) of the non-employee director's annual retainer of $162,000 ($250,000 for the Chairman) was paid in transfer-restricted shares of Class A Common. Shares awarded under the plan are fully vested and entitle the stockholder to all rights of common stock ownership exce pt that shares may not be assigned, pledged or otherwise transferred during the restriction period. In general, the transfer restriction period ends at the earliest of (i) ten years after the Quarter Date with respect to which such Required Shares were issued or transferred, (ii) the date of the director's death or date the director terminates service as a director due to permanent disability, (ii i) five years (or earlier with the approval of the Board of Directors) after the director's date of retirement from the Board of Directors, or (iv) the date the director has both retired from the Board of Directors and has reached age 7 0. Pursuant to this plan, the Company issued 57,735, 74,337, and 50,237 shares in the years ended December 31, 2021, 2020 and 2019, respectively. I n addition to the mandatory retainer fee received in transfer-restricted stock, directors may elect to receive shares of Class A Common in lieu of cash for up to 100% of the balance of their ann ual retainer, committee retainer and any committee chairman's fees. These voluntary shares are not subject to any restrictions. Total shares issued under voluntary elections were 1,768 and 2,343 in 2021 and 2020. No shares were issued under voluntary elections in 2019. After the issuance of these shares, there were 283,869 shares of Class A Common available for issuance under this plan. Stock compensation expense related to these awards was $1.1 million, $1.1 million, and $1.2 million for the years ended December 31, 2021, 2020 and 2019, respectively. Stock compensation expense represents fair value based on the market price of the shares of Class A Common on the grant date. |
Treasury Stock | Treasury StockThe Company records the aggregate purchase price of treasury stock at cost and includes treasury stock as a reduction to stockholders' equity. |
Income Taxes | Income Taxes Tax law requires certain items to be included in the tax return at different times than the items are reflected in the financial statements. Some of these differences are permanent, such as expenses that are not deductible for tax purposes, and some differences are temporary, reversing over time, such as depreciation expense. These temporary differences create deferred tax assets and liabilities using currently enacted tax rates. The objective of accounting for income taxes is to recognize the amount of taxes payable or refundable for the current year, and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in the financial statements or tax returns. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the provision for income taxes in the period that includes the enactment date. The Company is required to estimate the timing of the recognition of deferred tax assets and liabilities, make assumptions about the future deductibility of deferred tax assets and assess deferred tax liabilities based on enacted law and tax rates for the appropriate tax jurisdictions to determine the amount of such deferred tax assets and liabilities. Changes in the calculated deferred tax assets and liabilities may occur in certain circumstances, including statutory income tax rate changes, statutory tax law changes, or changes in the Company's structure or tax status. The Company's tax assets, liabilities, and tax expense are supported by historical earnings and losses and the Company's best estimates and assumptions of future earnings by jurisdiction. The Company assesses whether a valuation allowance should be established against the Company's deferred tax assets based on consideration of all available evidence, both positive and negative, using a more likely than not standard. This assessment considers, among other matters, scheduled reversals of deferred tax liabilities, projected future taxable income, tax-planning strategies, and results of recent operations. The assumptions about future taxable income require significant judgment and are consistent with the plans and estimates the Company is using to manage the underlying businesses. When the Company determines, based on all available evidence, that it is more likely than not that deferred tax assets will not be realized, a valuation allowance is established. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards The Company is an emerging growth company and has elected not to opt out of the extended transition period for complying with new or revised accounting standards, which means that when a standard is issued or revised and it has different application dates for public or nonpublic entities, the Company can adopt the new or revised standard at the time nonpublic entities adopt the new or revised standard. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)," which requires an entity to recognize assets and liabilities for the rights and obligations created by leased assets. For nonpublic entities, the amendments are effective for fiscal years beginning after December 15, 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. The Company expects to record additional material assets and corresponding liabilities related to operating leases in the statement of financial position. 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 and smaller reporting companies, 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 beginning January 1, 2023 and subsequent interim periods 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) | 12 Months Ended |
Dec. 31, 2021 | |
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: Year Ended December 31 2020 2019 Revenue $ 631 $ 100,860 Cost of sales — 62,927 Gross profit 631 37,933 Selling, general and administrative expenses 1,346 54,047 Adjustment of lease termination liability (1) (16,457) 15,186 Adjustment of other current liabilities (2) (6,608) — Operating profit (loss) 22,350 (31,300) Interest expense — 583 Other expense, net 88 26 Income (loss) from discontinued operations before income taxes 22,262 (31,909) Income tax expense (benefit) 71 (3,309) Income (loss) from discontinued operations, net of tax $ 22,191 $ (28,600) (1) For the year ended December 31, 2020, represents an adjustment to the lease termination obligation based on the final distribution of KC's remaining assets on April 3, 2020. |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment, net includes the following: December 31 2021 2020 Land $ 226 $ 226 Furniture and fixtures 11,485 10,957 Building and improvements 9,737 10,145 Machinery and equipment 32,392 33,601 Internal-use capitalized software 14,615 15,582 Construction in progress, including internal-use capitalized software not yet in service 1,240 1,214 Property, plant and equipment, at cost 69,695 71,725 Less allowances for depreciation and amortization 39,210 48,235 $ 30,485 $ 23,490 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Intangible assets other than goodwill, which are subject to amortization, consist of the following: Gross Carrying Accumulated Net Balance at December 31, 2021 Trademarks $ 3,100 $ (1,408) $ 1,692 $ 3,100 $ (1,408) $ 1,692 Balance at December 31, 2020 Customer relationships $ 5,760 $ (5,760) $ — Trademarks 3,100 (1,208) 1,892 Other intangibles 1,240 (1,240) — $ 10,100 $ (8,208) $ 1,892 |
Current and Long-Term Financi_2
Current and Long-Term Financing (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table summarizes HBB's available and outstanding borrowings: December 31 2021 2020 Total outstanding borrowings for continuing operations: Revolving credit agreements $ 96,837 $ 98,360 Total outstanding borrowings $ 96,837 $ 98,360 Total available borrowings, net of limitations, under revolving credit agreements $ 149,015 $ 123,277 Unused available borrowings $ 52,178 $ 24,917 Weighted average stated interest rate on total borrowings 2.18 % 2.51 % Weighted average effective interest rate on total borrowings (including interest rate swap agreements) 3.38 % 2.88 % |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Derivatives | The following table summarizes the notional amounts, related rates and remaining terms of interest rate swap agreements for HBB at December 31, in millions: Notional Amount Average Fixed Rate Remaining Term at 2021 2020 2021 2020 December 31, 2021 Interest rate swaps $ 25.0 $ 25.0 1.7 % 1.7 % Extending to January 2024 Delayed start interest rate swaps $ 75.0 $ — 1.2 % — % Extending to January 2029 |
Schedule of the Fair Value of Derivative Instruments Recorded in the Consolidated Balance Sheets | The following table summarizes the fair value of derivative instruments at December 31, as recorded in the Consolidated Balance Sheets: Asset Derivatives Liability Derivatives Balance sheet location 2021 2020 Balance sheet location 2021 2020 Interest rate swap agreements Current Prepaid expenses and other current assets $ — $ — Other current liabilities $ 216 $ 380 Long-term Other non-current assets — — Other long-term liabilities 655 779 Foreign currency exchange contracts Current Prepaid expenses and other current assets 73 — Other current liabilities 41 518 Total derivatives $ 73 $ — $ 912 $ 1,677 |
Leasing Arrangements (Tables)
Leasing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Future Minimum Operating Lease Payments | Future minimum operating lease payments at December 31, 2021 are: Operating 2022 $ 7,619 2023 7,929 2024 7,765 2025 5,887 2026 5,404 Subsequent to 2026 38,592 Total minimum lease payments $ 73,196 |
Stockholders' Equity and Earn_2
Stockholders' Equity and Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of Stock by Class | The following table sets forth the Company's authorized capital stock information: December 31 2021 2020 Preferred stock, par value $0.01 per share Preferred stock authorized 5,000 5,000 Preferred stock outstanding — — Class A Common stock, par value $0.01 per share Class A Common authorized 70,000 70,000 Class A Common issued (1)(2) 10,267 10,006 Treasury Stock 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 authorized 30,000 30,000 Class B Common issued (1) 4,000 4,045 (1) Class B Common converted to Class A Common were 45 shares during 2021 and 31 shares 2020. (2) The Company issued Class A Common of 216 during 2021 and 170 during 2020 related to the Company's stock compensation plan. |
Reclassification out of Accumulated Other Comprehensive Income | The following table summarizes changes in accumulated other comprehensive income (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, 2019 $ (8,652) $ 879 $ (9,328) $ (17,101) Other comprehensive income (loss) 481 (2,199) 1,882 164 Reclassification adjustment to net income (loss) — 490 727 1,217 Tax effects (50) 489 (851) (412) Balance, December 31, 2019 $ (8,221) $ (341) $ (7,570) $ (16,132) Other comprehensive income (loss) (896) (718) 844 (770) Reclassification adjustment to net income (loss) — (642) 701 59 Tax effects (658) 357 (332) (633) Balance, December 31, 2020 $ (9,775) $ (1,344) $ (6,357) $ (17,476) Other comprehensive income (loss) (181) 418 2,970 3,207 Reclassification adjustment to net income (loss) — 557 654 1,211 Tax effects 79 (269) (995) (1,185) Balance, December 31, 2021 $ (9,877) $ (638) $ (3,728) $ (14,243) |
Schedule of Earnings (Loss) Per Share | The weighted average number of shares of Class A Common and Class B Common outstanding used to calculate basic and diluted earnings (loss) per share were as follows: 2021 2020 2019 Basic weighted average shares outstanding 13,880 13,657 13,690 Dilutive effect of share-based compensation awards 50 55 36 Diluted weighted average shares outstanding 13,930 13,712 13,726 Basic earnings (loss) per share: Continuing operations $ 1.54 $ 1.76 $ 1.10 Discontinued operations — 1.62 (2.09) Basic and diluted earnings (loss) per share $ 1.54 $ 3.39 $ (0.99) Diluted earnings (loss) per share: Continuing operations $ 1.53 $ 1.76 $ 1.10 Discontinued operations — 1.62 (2.09) Diluted earnings (loss) per share $ 1.53 $ 3.37 $ (0.99) |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents the HBB's revenue on a disaggregated basis for the year ending: Year Ended December 31 2021 2020 2019 Consumer products $ 612,795 $ 568,685 $ 559,279 Commercial products 40,978 30,066 48,028 Licensing 4,621 4,962 4,479 Total revenues $ 658,394 $ 603,713 $ 611,786 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense | The components of income (loss) from continuing operations before income taxes and the income tax expense (benefit) for the years ended December 31, are as follows: 2021 2020 2019 Income (loss) from continuing operations before income taxes Domestic $ 27,187 $ 31,140 $ 24,835 Foreign 1,770 2,592 (658) $ 28,957 $ 33,732 $ 24,177 Income tax expense (benefit) within continuing operations Current income tax expense (benefit): Federal $ 2,520 $ 7,006 $ 2,966 State 1,015 1,877 1,106 Foreign 2,006 2,213 3,525 Total current 5,541 11,096 7,597 Deferred income tax expense (benefit): Federal 1,815 (924) 856 State 556 (325) 1,676 Foreign (261) (182) (1,045) Total deferred 2,110 (1,431) 1,487 $ 7,651 $ 9,665 $ 9,084 |
Effective Income Tax Rate Reconciliation | A reconciliation of the federal statutory and effective income tax rate for the years ended December 31, is as follows: 2021 2020 2019 $ % $ % $ % Income (loss) from continuing operations before income taxes $ 28,957 $ 33,732 $ 24,177 Statutory taxes at 21% $ 6,081 21.0 % $ 7,092 21.0 % $ 5,077 21.0 % State and local income taxes 1,357 4.7 % 1,136 3.4 % 1,031 4.3 % Valuation allowances 297 1.0 % 614 1.8 % 2,190 9.1 % Other non-deductible expenses 579 2.0 % 415 1.2 % 253 1.0 % Credits (681) (2.4) % (700) (2.1) % (1,195) (4.9) % Effect of foreign operations (399) (1.4) % 120 0.4 % (606) (2.5) % Loss on Kitchen Collection dissolution — — % 616 1.8 % — — % Unrecognized tax benefits 687 2.4 % 708 2.1 % 2,719 11.2 % Other, net (270) (0.9) % (336) (1.0) % (385) (1.6) % Income tax provision $ 7,651 26.4 % $ 9,665 28.7 % $ 9,084 37.6 % |
Deferred Tax Assets and Liabilities | A detailed summary of the total deferred tax assets and liabilities in the Company's Consolidated Balance Sheets resulting from differences in the book and tax basis of assets and liabilities follows: December 31 2021 2020 Deferred tax assets Tax carryforwards $ 2,841 $ 3,002 Inventory 2,084 2,114 Accrued expenses and reserves 7,338 4,436 Other employee benefits 2,852 4,700 Other 1,046 2,374 Total deferred tax assets 16,161 16,626 Less: Valuation allowances (2,095) (2,102) 14,066 14,524 Deferred tax liabilities Inventory 550 1,099 Accrued pension benefits 4,119 3,262 Depreciation and amortization 5,355 3,198 Total deferred tax liabilities 10,024 7,559 Net deferred tax asset $ 4,042 $ 6,965 |
Summary of Tax Credit Carryforwards | The following table summarizes the tax carryforwards and associated carryforward periods and related valuation allowances where the Company has determined that realization is uncertain: December 31, 2021 Net deferred tax Valuation Carryforwards Non-U.S. net operating loss $ 2,841 $ 1,399 2022 - Indefinite December 31, 2020 Net deferred tax Valuation Carryforwards Non-U.S. net operating loss $ 3,002 $ 1,363 2021 - Indefinite |
Unrecognized Tax Benefits Roll Forward | The following is a reconciliation of the Company's total gross unrecognized tax benefits, defined as the aggregate tax effect of differences between tax return positions and the benefits recognized in the financial statements for the years ended December 31, 2021, 2020, and 2019. Approximately $3.8 million, $4.0 million, and $3.0 million of these gross amounts as of December 31, 2021, 2020, and 2019, respectively, relate to permanent items that, if recognized, would impact the effective income tax rate. This amount differs from the gross unrecognized tax benefits presented in the table below due to the decrease in U.S. federal income taxes which would occur upon the recognition of the state tax benefits included herein. 2021 2020 2019 Balance at January 1 $ 4,114 $ 4,266 $ 1,576 Additions (reductions) based on tax positions related to prior years (110) (116) 97 Additions based on tax positions related to the current year 40 130 2,593 Reductions for lapse of statute of limitations — (166) — Reductions due to settlements with taxing authorities (189) — — Balance at December 31 $ 3,855 $ 4,114 $ 4,266 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Assumptions Used in Accounting for the Defined Benefit Plan | The assumptions used in accounting for the defined benefit plans were as follows for the years ended December 31: 2021 2020 2019 U.S. Plan Discount rate for pension benefit obligation 2.46 % 1.87 % 2.88 % Discount rate for net periodic benefit (income) expense 1.87 % 2.88 % 4.00 % Expected long-term rate of return on assets for net periodic pension (income) expense 7.25 % 7.50 % 7.50 % Non-U.S. Plan Discount rate for pension benefit obligation 2.90 % 2.38 % 2.96 % Discount rate for net periodic benefit (income) expense 2.38 % 2.96 % 3.50 % Expected long-term rate of return on assets for net periodic pension (income) expense 4.75 % 5.00 % 5.50 % |
Net Periodic Benefit Income and Expense for the Defined Benefit Plan | Set forth below is a detail of the net periodic pension (income) expense, included in other expense (income), net for the defined benefit plans for the years ended December 31: 2021 2020 2019 U.S. Plan Interest cost $ 338 $ 527 $ 727 Expected return on plan assets (2,033) (2,011) (1,987) Amortization of actuarial loss 591 631 561 Net periodic pension (income) expense $ (1,104) $ (853) $ (699) Non-U.S. Plan Interest cost $ 118 $ 128 $ 144 Expected return on plan assets (260) (253) (263) Amortization of actuarial loss 63 70 72 Net periodic pension (income) expense $ (79) $ (55) $ (47) |
Changes in Plan Assets and Benefit Obligations Recognized in Comprehensive Income (Loss) | Set forth below is the detail of other changes in plan assets and benefit obligations recognized in other comprehensive loss (income) for the years ended December 31: 2021 2020 2019 U.S. Plan Current year actuarial loss (gain) $ (2,228) $ (1,080) $ (1,727) Amortization of actuarial loss (591) (631) (561) Total recognized in other comprehensive loss (income) $ (2,819) $ (1,711) $ (2,288) Non-U.S. Plan Current year actuarial loss (gain) $ (742) $ 236 $ (155) Amortization of actuarial loss (63) (70) (72) Total recognized in other comprehensive loss (income) $ (805) $ 166 $ (227) |
Changes in Benefit Obligations during the year and Funded Status of Defined Benefit Plan | The following table sets forth the changes in the benefit obligation and the plan assets during the year and the funded status of the defined benefit plans at December 31: 2021 2020 U.S. Non-U.S. U.S. Plan Non-U.S. Change in benefit obligation Projected benefit obligation at beginning of year $ 18,978 $ 5,000 $ 19,374 $ 4,570 Interest cost 338 118 527 128 Actuarial (gain) loss (649) (309) 972 399 Benefits paid (1,663) (228) (1,895) (205) Foreign currency exchange rate changes — 26 — 108 Projected benefit obligation at end of year $ 17,004 $ 4,607 $ 18,978 $ 5,000 Accumulated benefit obligation at end of year $ 17,004 $ 4,607 $ 18,978 $ 5,000 Change in plan assets Fair value of plan assets at beginning of year $ 31,070 $ 5,497 $ 28,900 $ 5,350 Actual return on plan assets 3,612 676 4,065 428 Benefits paid (1,663) (228) (1,895) (205) Foreign currency exchange rate changes — (173) — (76) Fair value of plan assets at end of year $ 33,019 $ 5,772 $ 31,070 $ 5,497 Funded status at end of year $ 16,015 $ 1,165 $ 12,092 $ 497 Amounts recognized in the balance sheets consist of: Non-current assets $ 16,015 $ 1,165 $ 12,092 $ 497 Components of accumulated other comprehensive loss consist of: Actuarial loss $ (4,610) $ (419) $ (7,429) $ (1,224) Deferred taxes 1,179 122 1,901 395 $ (3,431) $ (297) $ (5,528) $ (829) |
Future Benefit Payments | Future pension benefit payments expected to be paid from assets of the pension plans are: U.S. Plan Non-U.S. Plan 2022 $ 1,753 $ 239 2023 1,672 247 2024 1,550 255 2025 1,453 261 2026 1,339 273 2027-2031 5,228 1,312 $ 12,995 $ 2,587 |
Actual and Target Allocation Percentage for Pension Plan Assets | The following is the actual allocation percentage and target allocation percentage for the U.S. pension plan assets at December 31: 2021 Actual Allocation 2020 Actual Allocation Target Allocation U.S. equity securities 48.3 % 45.5 % 36.0% - 54.0% Non-U.S. equity securities 19.8 % 20.3 % 16.0% - 24.0% Fixed income securities 31.3 % 33.8 % 30.0% - 40.0% Money market 0.6 % 0.4 % 0.0% - 10.0% The following is the actual allocation percentage and target allocation percentage for the Non-U.S. pension plan assets at December 31: 2021 Actual Allocation 2020 Actual Allocation Target Allocation Canadian equity securities 34.2 % 29.5 % 25.0% - 35.0% Non-Canadian equity securities 38.3 % 34.4 % 25.0% - 35.0% Fixed income securities 27.5 % 36.1 % 30.0% - 50.0% Money market — % — % 0.0% - 5.0% |
Fair Value of Pension Plan Assets | Following are the values as of December 31: U.S. Plan Non-U.S. Plan 2021 2020 2021 2020 U.S. equity securities $ 15,957 $ 14,113 $ 1,325 $ 1,064 Non-U.S. equity securities 6,535 6,321 2,857 2,445 Fixed income securities 10,330 10,510 1,590 1,988 Money market 197 126 — — Total $ 33,019 $ 31,070 $ 5,772 $ 5,497 |
Data by Geographic Region (Tabl
Data by Geographic Region (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Revenue from External Customers and Long-Lived Assets, by Geographical Areas | Revenue and property, plant and equipment related to continuing operations outside the U.S., based on customer and asset location, are as follows: U.S. Other Consolidated 2021 Revenue from unaffiliated customers $ 524,093 $ 134,301 $ 658,394 Property, plant and equipment, net $ 26,604 $ 3,881 $ 30,485 2020 Revenue from unaffiliated customers $ 493,573 $ 110,140 $ 603,713 Property, plant and equipment, net $ 18,021 $ 5,469 $ 23,490 2019 Revenue from unaffiliated customers $ 463,608 $ 148,178 $ 611,786 Property, plant and equipment, net $ 16,828 $ 5,496 $ 22,324 |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies (Nature of Operations) (Details) | Sep. 29, 2017 |
Shares Outstanding Class A | |
Class of Stock [Line Items] | |
Spinoff ratio | 1 |
Shares Outstanding Class B | |
Class of Stock [Line Items] | |
Spinoff ratio | 1 |
Nature of Operations and Summ_4
Nature of Operations and Summary of Significant Accounting Policies (Segment Information) (Details) | 12 Months Ended |
Dec. 31, 2021segment | |
Accounting Policies [Abstract] | |
Number of reportable segments | 1 |
Number of operating segments | 1 |
Nature of Operations and Summ_5
Nature of Operations and Summary of Significant Accounting Policies (Trade Receivables) (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Consolidated net accounts receivable | Customer Concentration Risk | Five largest customers | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk percentage | 61.00% | 66.00% |
Nature of Operations and Summ_6
Nature of Operations and Summary of Significant Accounting Policies (Transfer of Financial Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | |||
Accounts receivable derecognized | $ 140.7 | $ 162.4 | $ 162.7 |
Nature of Operations and Summ_7
Nature of Operations and Summary of Significant Accounting Policies (Assets Held for Sale) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Accumulated other comprehensive loss | $ 14,243 | $ 17,476 |
Disposal Group, Held-for-sale, Not Discontinued Operations | Brazilian Subsidiary | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Accumulated other comprehensive loss | $ 1,900 |
Nature of Operations and Summ_8
Nature of Operations and Summary of Significant Accounting Policies (Property, Plant and Equipment, Net) (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Useful life | 40 years |
Machinery, equipment, furniture, and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Machinery, equipment, furniture, and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 7 years |
Nature of Operations and Summ_9
Nature of Operations and Summary of Significant Accounting Policies (Goodwill and Intangible Assets) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||
Goodwill and intangible asset impairment | $ 0 | $ 0 | $ 0 |
Nature of Operations and Sum_10
Nature of Operations and Summary of Significant Accounting Policies (Product Development Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||
Product development costs | $ 8.6 | $ 10 | $ 12.1 |
Nature of Operations and Sum_11
Nature of Operations and Summary of Significant Accounting Policies (Stock Compensation) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Director | Share-based Payment Arrangement, Nonemployee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 167 | $ 162 | ||
Board of Directors Chairman | Share-based Payment Arrangement, Nonemployee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 250 | $ 250 | ||
Restricted Stock | Share-based Payment Arrangement, Nonemployee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares issued during the period | 57,735 | 74,337 | 50,237 | |
Number of shares available for grant (in shares) | 283,869 | |||
Share-based compensation expense | $ 1,100 | $ 1,100 | $ 1,200 | |
Election to receive common shares in lieu of cash, maximum percentage of annual retainer | 100.00% | |||
Restricted Stock | Director | Share-based Payment Arrangement, Nonemployee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 105 | 100 | ||
Restricted Stock | Board of Directors Chairman | Share-based Payment Arrangement, Nonemployee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 150 | $ 150 | ||
Restricted Stock, Voluntary Elections | Share-based Payment Arrangement, Nonemployee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares issued during the period | 1,768 | 2,343 | 0 | |
Executive Plan | Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restriction period from retirement date, participant's death or permanent disability | 3 years | |||
Number of shares issued during the period | 158,272 | 94,898 | 118,688 | |
Number of shares available for grant (in shares) | 272,630 | |||
Share-based compensation expense | $ 2,100 | $ 2,900 | $ 1,600 | |
Restriction Period One | Restricted Stock | Share-based Payment Arrangement, Nonemployee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restriction period from award date | 10 years | |||
Restriction Period One | Executive Plan | Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restriction period from award date | 3 years | |||
Restriction Period Two | Restricted Stock | Share-based Payment Arrangement, Nonemployee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restriction period from award date | 5 years | |||
Restriction Period Two | Executive Plan | Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restriction period from award date | 5 years | |||
Restriction Period Three | Executive Plan | Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restriction period from award date | 10 years |
Discontinued Operations (Income
Discontinued Operations (Income Statement Disclosures) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Income (loss) from discontinued operations, net of tax | $ 0 | $ 22,191 | $ (28,600) |
KC | Discontinued Operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Revenue | 631 | 100,860 | |
Cost of sales | 0 | 62,927 | |
Gross profit | 631 | 37,933 | |
Selling, general and administrative expenses | 1,346 | 54,047 | |
Adjustment of lease termination liability | (16,457) | 15,186 | |
Adjustment of other current liabilities | (6,608) | 0 | |
Operating profit (loss) | 22,350 | (31,300) | |
Interest expense | 0 | 583 | |
Other expense, net | 88 | 26 | |
Income (loss) from discontinued operations before income taxes | 22,262 | (31,909) | |
Income tax expense (benefit) | 71 | (3,309) | |
Income (loss) from discontinued operations, net of tax | $ 22,191 | $ (28,600) |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | $ 69,695 | $ 71,725 | |
Less allowances for depreciation and amortization | 39,210 | 48,235 | |
Property, plant and equipment, net | 30,485 | 23,490 | $ 22,324 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | 226 | 226 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | 11,485 | 10,957 | |
Building and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | 9,737 | 10,145 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | 32,392 | 33,601 | |
Internal-use capitalized software | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | 14,615 | 15,582 | |
Construction in progress, including internal-use capitalized software not yet in service | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | $ 1,240 | $ 1,214 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets, Net [Abstract] | |||
Gross Carrying Amount | $ 3,100 | $ 10,100 | |
Accumulated Amortization | (1,408) | (8,208) | |
Net Balance | 1,692 | 1,892 | |
Amortization of intangible assets | 200 | 1,249 | $ 1,377 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2022 | 200 | ||
2023 | 200 | ||
2024 | 200 | ||
2025 | 200 | ||
2026 | $ 200 | ||
Intangible assets, weighted average amortization period | 8 years 6 months | ||
Customer relationships | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Gross Carrying Amount | 5,760 | ||
Accumulated Amortization | (5,760) | ||
Net Balance | 0 | ||
Trademarks | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Gross Carrying Amount | $ 3,100 | 3,100 | |
Accumulated Amortization | (1,408) | (1,208) | |
Net Balance | $ 1,692 | 1,892 | |
Other intangibles | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Gross Carrying Amount | 1,240 | ||
Accumulated Amortization | (1,240) | ||
Net Balance | $ 0 |
Current and Long-Term Financi_3
Current and Long-Term Financing (Debt Schedule) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
Revolving credit agreements | $ 96,837 | $ 98,360 |
Total outstanding borrowings | 96,837 | 98,360 |
Total available borrowings, net of limitations, under revolving credit agreements | 149,015 | 123,277 |
Unused available borrowings | $ 52,178 | $ 24,917 |
Weighted average stated interest rate on total borrowings | 2.18% | 2.51% |
Weighted average effective interest rate on total borrowings (including interest rate swap agreements) | 3.38% | 2.88% |
Current and Long-Term Financi_4
Current and Long-Term Financing (Narrative) (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 17, 2021 | Sep. 16, 2021 | |
Line of Credit Facility [Line Items] | |||||
Interest paid | $ 2,800,000 | $ 2,100,000 | $ 3,100,000 | ||
Interest capitalized | 100,000 | 300,000 | $ 400,000 | ||
Line of credit facility, maximum borrowing capacity | $ 150,000,000 | $ 125,000,000 | |||
Dividend restriction from closing date | $ 7,000,000 | ||||
Dividend restriction period following closing date of credit facility | 30 days | ||||
Dividend restriction credit facility excess availability requirement | $ 18,000,000 | ||||
Dividend restriction credit facility excess availability requirement | $ 30,000,000 | ||||
Line of credit facility, unused capacity, commitment fee percentage | 0.25% | ||||
Interest rate swaps | |||||
Line of Credit Facility [Line Items] | |||||
Notional amount | $ 25,000,000 | $ 25,000,000 | |||
Average fixed rate | 1.70% | 1.70% | |||
Delayed start interest rate swaps | |||||
Line of Credit Facility [Line Items] | |||||
Notional amount | $ 75,000,000 | $ 0 | |||
Average fixed rate | 1.20% | 0.00% | |||
US Dollar | Base Rate | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 0.00% | ||||
US Dollar | LIBOR Rate | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 1.75% | ||||
Canadian Dollar | Base Rate | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 0.00% | ||||
Canadian Dollar | LIBOR Rate | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 1.75% |
Fair Value Disclosure (Details)
Fair Value Disclosure (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Level 3 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Transfer into Level 3 related to assets held for sale | $ 3.4 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Foreign currency exchange contracts | ||
Derivative [Line Items] | ||
Notional amount | $ 15.1 | $ 12.3 |
Fair value of foreign currency exchange contracts | 0.1 | (0.5) |
Interest rate swap agreements | ||
Derivative [Line Items] | ||
Interest rate swap agreement net payable | $ 0.9 | $ 1.2 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Schedule of Interest Rate Derivatives) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | $ 25 | $ 25 |
Average Fixed Rate | 1.70% | 1.70% |
Delayed start interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | $ 75 | $ 0 |
Average Fixed Rate | 1.20% | 0.00% |
Derivative Financial Instrume_5
Derivative Financial Instruments (Fair Value of Derivative Instruments as Recorded in Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Asset Derivatives | ||
Total derivatives, asset derivatives | $ 73 | $ 0 |
Liability Derivatives | ||
Total derivatives, liability derivatives | 912 | 1,677 |
Prepaid expenses and other current assets | ||
Asset Derivatives | ||
Interest rate swap agreements, asset derivatives | 0 | 0 |
Foreign currency exchange contracts, asset derivatives | 73 | 0 |
Other current liabilities | ||
Liability Derivatives | ||
Interest rate swap agreements, liability derivatives | 216 | 380 |
Foreign currency exchange contracts, liability derivatives | 41 | 518 |
Other non-current assets | ||
Asset Derivatives | ||
Interest rate swap agreements, asset derivatives | 0 | 0 |
Other long-term liabilities | ||
Liability Derivatives | ||
Interest rate swap agreements, liability derivatives | $ 655 | $ 779 |
Leasing Arrangements - Future M
Leasing Arrangements - Future Minimum Operating Lease Payments (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Operating Leases | |
2022 | $ 7,619 |
2023 | 7,929 |
2024 | 7,765 |
2025 | 5,887 |
2026 | 5,404 |
Subsequent to 2026 | 38,592 |
Total minimum lease payments | $ 73,196 |
Leasing Arrangements - Narrativ
Leasing Arrangements - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Rental expense for all operating leases | $ 9 | $ 6.2 | $ 5.6 |
Stockholders' Equity and Earn_3
Stockholders' Equity and Earnings Per Share (Narrative) (Details) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2021voteshares | Dec. 31, 2020shares | Dec. 31, 2019USD ($)shares | Feb. 22, 2022shares | Nov. 05, 2019shares | May 31, 2018shares | |
Class of Stock [Line Items] | ||||||
Shares repurchased (in shares) | 0 | 0 | 364,893 | |||
Shares repurchase price | $ | $ 5,960 | |||||
Class A Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Number of votes per share | vote | 1 | |||||
Approved repurchase amount (up to) | 25,000,000 | 25,000,000 | ||||
Class A Common Stock | Subsequent Event | ||||||
Class of Stock [Line Items] | ||||||
Approved repurchase amount (up to) | 25,000,000 | |||||
Class B Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Number of votes per share | vote | 10 |
Stockholders' Equity and Earn_4
Stockholders' Equity and Earnings Per Share (Authorized Capital Stock) (Details) shares in Thousands | 12 Months Ended | |
Dec. 31, 2021$ / sharesshares | Dec. 31, 2020$ / sharesshares | |
Class of Stock [Line Items] | ||
Preferred stock, par value (in usd per share) | $ / shares | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 5,000 | 5,000 |
Preferred stock outstanding (in shares) | 0 | 0 |
Treasury Stock (in shares) | 365 | 365 |
Shares Outstanding Class A | ||
Class of Stock [Line Items] | ||
Common stock, par value (in usd per share) | $ / shares | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 70,000 | 70,000 |
Common stock, shares, issued (in shares) | 10,267 | 10,006 |
Common stock issued during period (in shares) | 216 | 170 |
Shares Outstanding Class B | ||
Class of Stock [Line Items] | ||
Common stock, par value (in usd per share) | $ / shares | $ 0.01 | $ 0.01 |
Common stock, convertible conversion ratio | 1 | 1 |
Common stock, shares authorized (in shares) | 30,000 | 30,000 |
Common stock, shares, issued (in shares) | 4,000 | 4,045 |
Class B Common converted to Class A Common (in shares) | 45 | 31 |
Stockholders' Equity and Earn_5
Stockholders' Equity and Earnings Per Share (Reclassification out of AOCI) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 80,105 | ||
Other comprehensive income (loss) | 3,207 | $ (770) | $ 164 |
Reclassification adjustment to net income (loss) | 1,211 | 59 | 1,217 |
Tax effects | (1,185) | (633) | (412) |
Ending balance | 102,279 | 80,105 | |
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (17,476) | (16,132) | (17,101) |
Ending balance | (14,243) | (17,476) | (16,132) |
Foreign Currency | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (9,775) | (8,221) | (8,652) |
Other comprehensive income (loss) | (181) | (896) | 481 |
Reclassification adjustment to net income (loss) | 0 | 0 | 0 |
Tax effects | 79 | (658) | (50) |
Ending balance | (9,877) | (9,775) | (8,221) |
Deferred Gain (Loss) on Cash Flow Hedging | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (1,344) | (341) | 879 |
Other comprehensive income (loss) | 418 | (718) | (2,199) |
Reclassification adjustment to net income (loss) | 557 | (642) | 490 |
Tax effects | (269) | 357 | 489 |
Ending balance | (638) | (1,344) | (341) |
Pension Plan Adjustment | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (6,357) | (7,570) | (9,328) |
Other comprehensive income (loss) | 2,970 | 844 | 1,882 |
Reclassification adjustment to net income (loss) | 654 | 701 | 727 |
Tax effects | (995) | (332) | (851) |
Ending balance | $ (3,728) | $ (6,357) | $ (7,570) |
Stockholders' Equity and Earn_6
Stockholders' Equity and Earnings Per Share (Weighted Average Number of Shares Outstanding Reconciliation) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | |||
Basic weighted average shares outstanding (in shares) | 13,880,000 | 13,657,000 | 13,690,000 |
Dilutive effect of share-based compensation awards (in shares) | 50,000 | 55,000 | 36,000 |
Diluted weighted average shares outstanding (in shares) | 13,930,000 | 13,712,000 | 13,726,000 |
Basic earnings (loss) per share: | |||
Continuing operations (in dollars per share) | $ 1.54 | $ 1.76 | $ 1.10 |
Discontinued operations (in dollars per share) | 0 | 1.62 | (2.09) |
Basic earnings (loss) per share (in dollars per share) | 1.54 | 3.39 | (0.99) |
Diluted earnings (loss) per share: | |||
Continuing operations (in dollars per share) | 1.53 | 1.76 | 1.10 |
Discontinued operations (in dollars per share) | 0 | 1.62 | (2.09) |
Diluted earnings (loss) per share (in dollars per share) | $ 1.53 | $ 3.37 | $ (0.99) |
Revenue - Narrative (Details)
Revenue - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Electric Appliances | Maximum | |||
Disaggregation of Revenue [Line Items] | |||
Warranty term | 10 years | ||
Product and Service, Other | Minimum | |||
Disaggregation of Revenue [Line Items] | |||
Warranty term | 1 year | ||
Product and Service, Other | Maximum | |||
Disaggregation of Revenue [Line Items] | |||
Warranty term | 3 years | ||
Wal-Mart | Sales Revenue, Net | Customer Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 28.00% | 35.00% | 33.00% |
Amazon | Sales Revenue, Net | Customer Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 22.00% | 16.00% | 14.00% |
Five largest customers | Sales Revenue, Net | Customer Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 61.00% | 64.00% | 58.00% |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 658,394 | $ 603,713 | $ 611,786 |
Consumer products | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 612,795 | 568,685 | 559,279 |
Commercial products | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 40,978 | 30,066 | 48,028 |
Licensing | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 4,621 | $ 4,962 | $ 4,479 |
Contingencies (Details)
Contingencies (Details) | 1 Months Ended | 12 Months Ended | |||
Apr. 30, 2020USD ($) | Feb. 29, 2020USD ($)lease | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Loss Contingencies [Line Items] | |||||
Number of leases allegedly breached | lease | 49 | ||||
Amount of final judgement | $ 8,100,000 | ||||
Amount awarded to plaintiff | $ 300,000 | ||||
Accrual for environmental investigation and remediation activities | $ 3,400,000 | $ 3,100,000 | |||
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 | ||||
Maximum | |||||
Loss Contingencies [Line Items] | |||||
Estimate of additional expenses | $ 1,600,000 |
Income Taxes (Income Before Inc
Income Taxes (Income Before Income Taxes and Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income (loss) from continuing operations before income taxes | |||
Domestic | $ 27,187 | $ 31,140 | $ 24,835 |
Foreign | 1,770 | 2,592 | (658) |
Income (loss) from continuing operations before income taxes | 28,957 | 33,732 | 24,177 |
Current income tax expense (benefit): | |||
Federal | 2,520 | 7,006 | 2,966 |
State | 1,015 | 1,877 | 1,106 |
Foreign | 2,006 | 2,213 | 3,525 |
Total current | 5,541 | 11,096 | 7,597 |
Deferred income tax expense (benefit): | |||
Federal | 1,815 | (924) | 856 |
State | 556 | (325) | 1,676 |
Foreign | (261) | (182) | (1,045) |
Total deferred | 2,110 | (1,431) | 1,487 |
Income tax provision | $ 7,651 | $ 9,665 | $ 9,084 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Contingency [Line Items] | |||
Income tax refunds | $ 0 | $ 1,000,000 | $ 100,000 |
Cumulative unremitted earnings of foreign subsidiaries | 12,500,000 | ||
Unrecognized tax benefits, permanent items | 3,800,000 | 4,000,000 | 3,000,000 |
Unrecognized tax benefits, income tax penalties and interest expense | 1,100,000 | 700,000 | 100,000 |
Income tax examination, penalties and interest accrued | 1,900,000 | 700,000 | 100,000 |
Federal | |||
Income Tax Contingency [Line Items] | |||
Income tax payments | 6,400,000 | 0 | 1,900,000 |
Foreign and State | |||
Income Tax Contingency [Line Items] | |||
Income tax payments | $ 2,600,000 | $ 2,900,000 | $ 3,600,000 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of the Federal Statutory and Effective Income Tax Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income (loss) from continuing operations before income taxes | $ 28,957 | $ 33,732 | $ 24,177 |
Amount | |||
Statutory taxes at 21% | 6,081 | 7,092 | 5,077 |
State and local income taxes | 1,357 | 1,136 | 1,031 |
Valuation allowances | 297 | 614 | 2,190 |
Other non-deductible expenses | 579 | 415 | 253 |
Credits | (681) | (700) | (1,195) |
Effect of foreign operations | (399) | 120 | (606) |
Loss on Kitchen Collection dissolution | 0 | 616 | 0 |
Unrecognized tax benefits | 687 | 708 | 2,719 |
Other, net | (270) | (336) | (385) |
Income tax provision | $ 7,651 | $ 9,665 | $ 9,084 |
Percent | |||
Statutory taxes at 21% | 21.00% | 21.00% | 21.00% |
State and local income taxes | 4.70% | 3.40% | 4.30% |
Valuation allowances | 1.00% | 1.80% | 9.10% |
Other non-deductible expenses | 2.00% | 1.20% | 1.00% |
Credits | (2.40%) | (2.10%) | (4.90%) |
Effect of foreign operations | (1.40%) | 0.40% | (2.50%) |
Loss on Kitchen Collection dissolution | 0.00% | 1.80% | 0.00% |
Unrecognized tax benefits | 2.40% | 2.10% | 11.20% |
Other, net | (0.90%) | (1.00%) | (1.60%) |
Income tax provision | 26.40% | 28.70% | 37.60% |
Income Taxes (Summary of the To
Income Taxes (Summary of the Total Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets | ||
Tax carryforwards | $ 2,841 | $ 3,002 |
Inventory | 2,084 | 2,114 |
Accrued expenses and reserves | 7,338 | 4,436 |
Other employee benefits | 2,852 | 4,700 |
Other | 1,046 | 2,374 |
Total deferred tax assets | 16,161 | 16,626 |
Less: Valuation allowances | (2,095) | (2,102) |
Deferred tax assets, net of valuation allowance | 14,066 | 14,524 |
Deferred tax liabilities | ||
Inventory | 550 | 1,099 |
Accrued pension benefits | 4,119 | 3,262 |
Depreciation and amortization | 5,355 | 3,198 |
Total deferred tax liabilities | 10,024 | 7,559 |
Net deferred tax asset | $ 4,042 | $ 6,965 |
Income Taxes (Summary of Operat
Income Taxes (Summary of Operating Loss Carryforwards and Tax Credit Carryforwards) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
Net deferred tax asset, Non-U.S. net operating loss | $ 2,841 | $ 3,002 |
Valuation allowance, Non-U.S. net operating loss | $ 1,399 | $ 1,363 |
Income Taxes (Gross Unrecognize
Income Taxes (Gross Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Balance at beginning of period | $ 4,114 | $ 4,266 | $ 1,576 |
Additions (reductions) based on tax positions related to prior years | (110) | (116) | 97 |
Additions based on tax positions related to the current year | 40 | 130 | 2,593 |
Reductions for lapse of statute of limitations | 0 | (166) | 0 |
Reductions due to settlements with taxing authorities | (189) | 0 | 0 |
Balance at end of period | $ 3,855 | $ 4,114 | $ 4,266 |
Retirement Benefit Plans (Narra
Retirement Benefit Plans (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)plan | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Retirement Benefits [Abstract] | |||
Number of defined benefit pension plans | plan | 2 | ||
Actuarial loss included in accumulated other comprehensive income (loss) expected to be recognized in net periodic benefit cost, before tax | $ 0.4 | ||
Defined contribution plan, total costs | $ 5 | $ 5.1 | $ 5 |
Retirement Benefit Plans (Assum
Retirement Benefit Plans (Assumptions Used in Accounting for Defined Benefit Plans) (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
U.S. Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate for pension benefit obligation | 2.46% | 1.87% | 2.88% |
Discount rate for net periodic benefit (income) expense | 1.87% | 2.88% | 4.00% |
Expected long-term rate of return on assets for net periodic pension (income) expense | 7.25% | 7.50% | 7.50% |
Non-U.S. Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate for pension benefit obligation | 2.90% | 2.38% | 2.96% |
Discount rate for net periodic benefit (income) expense | 2.38% | 2.96% | 3.50% |
Expected long-term rate of return on assets for net periodic pension (income) expense | 4.75% | 5.00% | 5.50% |
Retirement Benefit Plans (Net P
Retirement Benefit Plans (Net Periodic Pension Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
U.S. Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | $ 338 | $ 527 | $ 727 |
Expected return on plan assets | (2,033) | (2,011) | (1,987) |
Amortization of actuarial loss | 591 | 631 | 561 |
Net periodic pension (income) expense | (1,104) | (853) | (699) |
Non-U.S. Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | 118 | 128 | 144 |
Expected return on plan assets | (260) | (253) | (263) |
Amortization of actuarial loss | 63 | 70 | 72 |
Net periodic pension (income) expense | $ (79) | $ (55) | $ (47) |
Retirement Benefit Plans (Other
Retirement Benefit Plans (Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
U.S. Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current year actuarial loss (gain) | $ (2,228) | $ (1,080) | $ (1,727) |
Amortization of actuarial loss | (591) | (631) | (561) |
Total recognized in other comprehensive loss (income) | (2,819) | (1,711) | (2,288) |
Non-U.S. Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current year actuarial loss (gain) | (742) | 236 | (155) |
Amortization of actuarial loss | (63) | (70) | (72) |
Total recognized in other comprehensive loss (income) | $ (805) | $ 166 | $ (227) |
Retirement Benefit Plans (Oblig
Retirement Benefit Plans (Obligation and Funded Status) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
U.S. Plan | |||
Change in benefit obligation | |||
Projected benefit obligation at beginning of year | $ 18,978 | $ 19,374 | |
Interest cost | 338 | 527 | $ 727 |
Actuarial (gain) loss | (649) | 972 | |
Benefits paid | (1,663) | (1,895) | |
Foreign currency exchange rate changes | 0 | 0 | |
Projected benefit obligation at end of year | 17,004 | 18,978 | 19,374 |
Accumulated benefit obligation at end of year | 17,004 | 18,978 | |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 31,070 | 28,900 | |
Actual return on plan assets | 3,612 | 4,065 | |
Benefits paid | (1,663) | (1,895) | |
Foreign currency exchange rate changes | 0 | 0 | |
Fair value of plan assets at end of year | 33,019 | 31,070 | 28,900 |
Funded status at end of year | 16,015 | 12,092 | |
Amounts recognized in the balance sheets consist of: | |||
Non-current assets | 16,015 | 12,092 | |
Components of accumulated other comprehensive loss consist of: | |||
Actuarial loss | (4,610) | (7,429) | |
Deferred taxes | 1,179 | 1,901 | |
Accumulated other comprehensive (loss) income | (3,431) | (5,528) | |
Non-U.S. Plan | |||
Change in benefit obligation | |||
Projected benefit obligation at beginning of year | 5,000 | 4,570 | |
Interest cost | 118 | 128 | 144 |
Actuarial (gain) loss | (309) | 399 | |
Benefits paid | (228) | (205) | |
Foreign currency exchange rate changes | 26 | 108 | |
Projected benefit obligation at end of year | 4,607 | 5,000 | 4,570 |
Accumulated benefit obligation at end of year | 4,607 | 5,000 | |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 5,497 | 5,350 | |
Actual return on plan assets | 676 | 428 | |
Benefits paid | (228) | (205) | |
Foreign currency exchange rate changes | (173) | (76) | |
Fair value of plan assets at end of year | 5,772 | 5,497 | $ 5,350 |
Funded status at end of year | 1,165 | 497 | |
Amounts recognized in the balance sheets consist of: | |||
Non-current assets | 1,165 | 497 | |
Components of accumulated other comprehensive loss consist of: | |||
Actuarial loss | (419) | (1,224) | |
Deferred taxes | 122 | 395 | |
Accumulated other comprehensive (loss) income | $ (297) | $ (829) |
Retirement Benefit Plans (Sched
Retirement Benefit Plans (Schedule of Expected Benefit Payments) (Details) $ in Thousands | Dec. 31, 2021USD ($) |
U.S. Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | $ 1,753 |
2023 | 1,672 |
2024 | 1,550 |
2025 | 1,453 |
2026 | 1,339 |
2027-2031 | 5,228 |
Total | 12,995 |
Non-U.S. Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | 239 |
2023 | 247 |
2024 | 255 |
2025 | 261 |
2026 | 273 |
2027-2031 | 1,312 |
Total | $ 2,587 |
Retirement Benefit Plans (Actua
Retirement Benefit Plans (Actual and Target Allocation Percentage for Pension Plan Assets) (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
U.S. Plan | U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 48.30% | 45.50% |
U.S. Plan | Non-U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 19.80% | 20.30% |
U.S. Plan | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 31.30% | 33.80% |
U.S. Plan | Money market | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 0.60% | 0.40% |
U.S. Plan | Minimum | U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 36.00% | |
U.S. Plan | Minimum | Non-U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 16.00% | |
U.S. Plan | Minimum | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 30.00% | |
U.S. Plan | Minimum | Money market | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 0.00% | |
U.S. Plan | Maximum | U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 54.00% | |
U.S. Plan | Maximum | Non-U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 24.00% | |
U.S. Plan | Maximum | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 40.00% | |
U.S. Plan | Maximum | Money market | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 10.00% | |
Non-U.S. Plan | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 27.50% | 36.10% |
Non-U.S. Plan | Canadian equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 34.20% | 29.50% |
Non-U.S. Plan | Non-Canadian equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 38.30% | 34.40% |
Non-U.S. Plan | Money market | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 0.00% | 0.00% |
Non-U.S. Plan | Minimum | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 30.00% | |
Non-U.S. Plan | Minimum | Canadian equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 25.00% | |
Non-U.S. Plan | Minimum | Non-Canadian equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 25.00% | |
Non-U.S. Plan | Minimum | Money market | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 0.00% | |
Non-U.S. Plan | Maximum | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 50.00% | |
Non-U.S. Plan | Maximum | Canadian equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 35.00% | |
Non-U.S. Plan | Maximum | Non-Canadian equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 35.00% | |
Non-U.S. Plan | Maximum | Money market | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 5.00% |
Retirement Benefit Plans (Fair
Retirement Benefit Plans (Fair Value Hierarchy) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
U.S. Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of each major category of U.S. plan assets | $ 33,019 | $ 31,070 |
U.S. Plan | U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of each major category of U.S. plan assets | 15,957 | 14,113 |
U.S. Plan | Non-U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of each major category of U.S. plan assets | 6,535 | 6,321 |
U.S. Plan | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of each major category of U.S. plan assets | 10,330 | 10,510 |
U.S. Plan | Money market | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of each major category of U.S. plan assets | 197 | 126 |
Non-U.S. Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of each major category of U.S. plan assets | 5,772 | 5,497 |
Non-U.S. Plan | U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of each major category of U.S. plan assets | 1,325 | 1,064 |
Non-U.S. Plan | Non-U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of each major category of U.S. plan assets | 2,857 | 2,445 |
Non-U.S. Plan | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of each major category of U.S. plan assets | 1,590 | 1,988 |
Non-U.S. Plan | Money market | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of each major category of U.S. plan assets | $ 0 | $ 0 |
Data by Geographic Region (Deta
Data by Geographic Region (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from unaffiliated customers | $ 658,394 | $ 603,713 | $ 611,786 |
Property, plant and equipment, net | 30,485 | 23,490 | 22,324 |
U.S. | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from unaffiliated customers | 524,093 | 493,573 | 463,608 |
Property, plant and equipment, net | 26,604 | 18,021 | 16,828 |
Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from unaffiliated customers | 134,301 | 110,140 | 148,178 |
Property, plant and equipment, net | $ 3,881 | $ 5,469 | $ 5,496 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for doubtful accounts | |||
Valuation allowances and reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 1,144 | $ 1,023 | $ 713 |
Charged to Costs and Expenses | (179) | 412 | 309 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | (71) | 291 | (1) |
Balance at End of Period | 1,036 | 1,144 | 1,023 |
Deferred tax valuation allowances | |||
Valuation allowances and reserves [Roll Forward] | |||
Balance at Beginning of Period | 2,102 | 7,625 | 1,162 |
Charged to Costs and Expenses | 170 | 614 | 6,502 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 177 | 6,137 | 39 |
Balance at End of Period | $ 2,095 | $ 2,102 | $ 7,625 |