Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 03, 2023 | Jun. 30, 2022 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
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 | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 84,623,678 | ||
Documents Incorporated by Reference | Portions of the Company's Proxy Statement for its 2023 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 | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Shares Outstanding Class A | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 10,274,263 | ||
Shares Outstanding Class B | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 3,629,264 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
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 ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Revenue | $ 640,949 | $ 658,394 | $ 603,713 |
Cost of sales | 511,835 | 521,892 | 465,059 |
Gross profit | 129,114 | 136,502 | 138,654 |
Selling, general and administrative expenses | 90,120 | 104,763 | 99,990 |
Amortization of intangible assets | 200 | 200 | 1,249 |
Operating profit (loss) | 38,794 | 31,539 | 37,415 |
Interest expense, net | 4,589 | 2,854 | 1,998 |
Other expense (income), net | 1,776 | (272) | 1,685 |
Income (loss) from continuing operations before income taxes | 32,429 | 28,957 | 33,732 |
Income tax expense (benefit) | 7,162 | 7,651 | 9,665 |
Net income (loss) from continuing operations | 25,267 | 21,306 | 24,067 |
Income (loss) from discontinued operations, net of tax | 0 | 0 | 22,191 |
Net income (loss) | $ 25,267 | $ 21,306 | $ 46,258 |
Basic earnings (loss) per share: | |||
Continuing operations (in dollars per share) | $ 1.81 | $ 1.54 | $ 1.76 |
Discontinued operations (in dollars per share) | 0 | 0 | 1.62 |
Basic earnings (loss) per share (in dollars per share) | 1.81 | 1.54 | 3.39 |
Diluted earnings (loss) per share: | |||
Continuing operations (in dollars per share) | 1.81 | 1.53 | 1.76 |
Discontinued operations (in dollars per share) | 0 | 0 | 1.62 |
Diluted earnings (loss) per share (in dollars per share) | $ 1.81 | $ 1.53 | $ 3.37 |
Basic weighted average shares outstanding (in shares) | 13,970 | 13,880 | 13,657 |
Diluted weighted average shares outstanding (in shares) | 13,996 | 13,930 | 13,712 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 25,267 | $ 21,306 | $ 46,258 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustment | (2,997) | 726 | 1,481 |
Gain (loss) on long-term intra-entity foreign currency transactions | 1,865 | (828) | (3,035) |
Cash flow hedging activity | 4,450 | 320 | (540) |
Reclassification of foreign currency adjustments into earnings | 2,085 | 0 | 0 |
Reclassification of hedging activities into earnings | 346 | 386 | (463) |
Pension plan adjustment | (4,053) | 2,210 | 630 |
Reclassification of pension adjustments into earnings | 629 | 419 | 583 |
Total other comprehensive income (loss), net of tax | 2,325 | 3,233 | (1,344) |
Comprehensive income (loss) | $ 27,592 | $ 24,539 | $ 44,914 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 928 | $ 1,125 |
Trade receivables, net | 115,135 | 119,580 |
Inventory | 156,038 | 183,382 |
Prepaid expenses and other current assets | 12,643 | 14,273 |
Total current assets | 284,744 | 318,360 |
Property, plant and equipment, net | 27,830 | 30,485 |
Right-of-use lease assets | 44,000 | 0 |
Goodwill | 6,253 | 6,253 |
Other intangible assets, net | 1,492 | 1,692 |
Deferred tax assets | 3,117 | 4,006 |
Deferred costs | 14,348 | 18,703 |
Other non-current assets | 7,166 | 3,005 |
Total assets | 388,950 | 382,504 |
Current liabilities | ||
Accounts payable | 61,759 | 131,912 |
Accrued compensation | 11,310 | 11,719 |
Accrued product returns | 6,474 | 6,429 |
Lease liabilities | 5,875 | 0 |
Other current liabilities | 16,150 | 14,116 |
Total current liabilities | 101,568 | 164,176 |
Revolving credit agreements | 110,895 | 96,837 |
Lease liabilities, non-current | 46,801 | 0 |
Other long-term liabilities | 5,152 | 19,212 |
Total liabilities | 264,416 | 280,225 |
Stockholders’ equity | ||
Preferred stock, par value $0.01 per share | 0 | 0 |
Capital in excess of par value | 65,008 | 61,586 |
Treasury stock | (8,939) | (5,960) |
Retained earnings | 80,238 | 60,753 |
Accumulated other comprehensive loss | (11,918) | (14,243) |
Total stockholders’ equity | 124,534 | 102,279 |
Total liabilities and stockholders' equity | 388,950 | 382,504 |
Class A Common stock, par value $0.01 per share; 10,663 and 10,267 shares issued as of December 31, 2022 and 2021, respectively | ||
Stockholders’ equity | ||
Common stock | 107 | 103 |
Class B Common stock, par value $0.01 per share, convertible into Class A on a one-for-one basis; 3,844 and 4,000 shares issued as of December 31, 2022 and 2021, respectively | ||
Stockholders’ equity | ||
Common stock | $ 38 | $ 40 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) shares in Thousands | Dec. 31, 2022 $ / shares shares | Dec. 31, 2021 $ / shares shares |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares, issued (in shares) | shares | 10,663 | 10,267 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares, issued (in shares) | shares | 3,844 | 4,000 |
Common stock, convertible conversion ratio | 1 | 1 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating activities | |||
Net income (loss) from continuing operations | $ 25,267 | $ 21,306 | $ 24,067 |
Adjustments to reconcile net income (loss) from continuing operations to net cash provided by (used for) operating activities: | |||
Depreciation and amortization | 4,883 | 4,913 | 3,907 |
Deferred income taxes | 372 | 2,110 | (1,431) |
Stock compensation expense | 3,424 | 3,237 | 3,978 |
Brazil foreign currency loss | 2,085 | 0 | 0 |
Other | (129) | 1,025 | 2,055 |
Net changes in operating assets and liabilities: | |||
Affiliate payable | 0 | (505) | 9 |
Trade receivables | 4,532 | 27,631 | (41,314) |
Inventory | 26,399 | (9,077) | (65,808) |
Other assets | 6,274 | (4,729) | (550) |
Accounts payable | (69,911) | (20,037) | 40,215 |
Other liabilities | (6,614) | (8,017) | 6,938 |
Net cash provided (used for) by operating activities from continuing operations | (3,418) | 17,857 | (27,934) |
Investing activities | |||
Expenditures for property, plant and equipment | (2,279) | (11,844) | (3,312) |
Other | 0 | 0 | (500) |
Net cash (used for) provided by investing activities from continuing operations | (2,279) | (11,844) | (3,812) |
Financing activities | |||
Net additions (reductions) to revolving credit agreements | 14,383 | (1,550) | 39,761 |
Purchase of treasury stock | (2,979) | 0 | 0 |
Cash dividends paid | (5,782) | (5,468) | (5,053) |
Financing fees paid | (47) | (114) | (528) |
Other financing | 0 | (134) | 0 |
Net cash (used for) provided by financing activities from continuing operations | 5,575 | (7,266) | 34,180 |
Cash flows from discontinued operations | |||
Net cash provided by (used for) operating activities from discontinued operations | 0 | 0 | (6,193) |
Net cash provided by (used for) investing activities from discontinued operations | 0 | 0 | 6 |
Cash (used for) provided by discontinued operations | 0 | 0 | (6,187) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (123) | (33) | 25 |
Cash, cash equivalents and restricted cash | |||
Increase (decrease) for the period from continuing operations | (245) | (1,286) | 2,459 |
Increase (decrease) for the year from discontinued operations | 0 | 0 | (6,187) |
Balance at the beginning of the year | 2,150 | 3,436 | 7,164 |
Balance at the end of the year | 1,905 | 2,150 | 3,436 |
Reconciliation of cash, cash equivalents and restricted cash | |||
Cash and cash equivalents | 928 | 1,125 | 2,415 |
Restricted cash included in prepaid expenses and other current assets | 62 | 48 | 208 |
Restricted cash included in other non-current assets | 915 | 977 | 813 |
Total cash, cash equivalents, and restricted cash | $ 1,905 | $ 2,150 | $ 3,436 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common Stock Class A Common Stock | Common Stock Class B Common Stock | Capital in Excess of Par Value | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance 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 | (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 | |||||
Ending balance 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 | |||||
Ending balance at Dec. 31, 2021 | 102,279 | 103 | 40 | 61,586 | (5,960) | 60,753 | (14,243) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 25,267 | 25,267 | |||||
Issuance of common stock, net of conversions | 0 | 4 | (2) | (2) | |||
Purchase of treasury stock | (2,979) | (2,979) | |||||
Stock compensation expense | 3,424 | 3,424 | |||||
Cash dividends | (5,782) | (5,782) | |||||
Other comprehensive income (loss) | (735) | (735) | |||||
Reclassification adjustment to net income (loss) | 3,060 | 3,060 | |||||
Ending balance at Dec. 31, 2022 | $ 124,534 | $ 107 | $ 38 | $ 65,008 | $ (8,939) | $ 80,238 | $ (11,918) |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Common stock dividends (in dollars per share) | $ 0.415 | $ 0.395 | $ 0.37 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022, HBB is the Company’s single reportable operating segment. The Company’s reportable segment is determined based on (i) financial information reviewed by the chief operating decision maker ("CODM") (ii) operational structure of HBB which is designed and managed to share resources across the entire suite of products offered by the business, and (iii) the basis upon which the CODM makes resource allocation decisions. 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, 2022 and 2021. 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, 2022 and 2021, receivables from HBB’s five largest customers represented 73% and 61%, 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 $118.5 million, $140.7 million , and $162.4 million of trade receivables during 2022, 2021 and 2020, respectively. The losses incurred on sold receivables in the consolidated results of operations for the years ended December 31, 2022, 2021, and 2020 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. The carrying amounts of the assets were reclassified to held and used during the second quarter of 2021. During the first quarter of 2022, the criteria for substantially complete liquidation were met, and $2.1 million of accumulated other comprehensive losses were released into other expense (income), net in the consolidated results of operations during the three months ended March 31, 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 $11.8 million, $8.6 million, and $10.0 million in 2022, 2021, and 2020, 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 SOFR (Secured Overnight Financing 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 2022, 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, 2022 , $110,000 ($150,000 for the Chairman ) of the non-employee director's annual retainer of $175,000 ($250,000 for the Chairman) wa s 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) 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 90,223, 57,735, and 74,337 shares in the years ended December 31, 2022, 2021 and 2020, 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. There were no shares issued under voluntary elections in 2022. Total shares issued under voluntary elections were 1,768 and 2,343 in 2021 and 2020, respectively. After the issuance of these shares, there were 193,646 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 $1.1 million for the years ended December 31, 2022, 2021 and 2020, respectively. Stock compensation expense represents fair value based on the market price of the shares of Class A Common on the grant date. Leases The Company adopted Topic 842 on January 1, 2022. The Company determines whether an arrangement is a lease at inception, considering whether the contract conveys a right to control the use of the identified asset for a period of time in exchange for consideration. Leases are classified as operating or finance leases at the commencement date of the lease. Operating leases are included in Right-of-use lease assets, Lease liabilities, and Lease liabilities, non-current on the Consolidated Balance Sheets. Right-of-use lease assets and lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. Lease liabilities are classified between current and non-current liabilities based on their contractual payment terms. The right-of-use lease asset includes prepaid rent and reflects the unamortized balance of lease incentives. The Company’s leases may include renewal options, and the renewal option is included in the lease term if it is concluded that it is reasonably certain that we will exercise that option. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company has operating leases for real estate, equipment, and production specific tooling assets used by our third-party suppliers. The Company does not have finance leases. The Company has elected not to record short-term leases with initial terms of twelve months or less in our Consolidated Balance Sheets. Lease expense for operating leases is recognized on a straight-line basis over the lease term. Variable lease payments that do not depend on an index or a rate, such as the Company’s proportionate share of actual costs for utilities, common area maintenance, insurance, and property taxes, are excluded from the measurement of the lease liability, unless subject to fixed minimum requirements, and are recognized as variable lease cost when the obligation for that payment is incurred. The Company combines lease and non-lease components as a single component for all asset classes. Lease expense is classified as cost of sales or selling, general and administrative expenses in our Consolidated Statements of Operations based on the use of the leased item. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. Our estimated incremental borrowing rate reflects a secured rate based on recent debt issuances, our estimated credit rating, lease term, as well as publicly available data for instruments with similar characteristics. 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. Insurance Recovery In the first quarter of 2022, the Company recognized $10.0 million of insurance recovery associated with unauthorized transactions by former employees at our Mexican subsidiaries, which were identified in the quarter ended March 31, 2020. The Company maintains fidelity insurance and filed a claim to recover losses incurred up to the policy maximum of $10.0 million. The insurance recovery was received during the second quarter of 2022, and the benefit was recognized as a reduction to selling, general and administrative expenses in our Consolidated Statement of Operations during the first quarter of 2022. Accounting Standards Adopted 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. During the third quarter of 2022, the Company adopted certain optional expedients provided under Topic 848 that permit its hedging relationships to continue without de-designation upon changes due to reference rate reform. The adoption of this guidance resulted in no material impact to the Company’s consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, "Leases, (Topic 842)" which was subsequently amended when FASB issued: ASU 2018-01, "Land Easement Practical Expedient for Transition to Topic 842"; ASU 2018-10, "Codification Improvements to Topic 842"; ASU 2018-11, "Targeted Improvements". Topic 842 modifies lease accounting by requiring lessees to recognize lease right-of-use assets and liabilities for operating leases and disclosing key information about leasing arrangements. The Company adopted Topic 842 utilizing the effective date transition method, which does not require restatement of prior periods, on January 1, 2022 and as part of the process made the following permitted accounting policy elections: a. The package of practical expedients, which allowed the Company not to reassess prior conclusions reached related to lease existence, lease classification, and initial direct costs. b. The Company will not recognize right-of-use assets or lease liabilities for leases with a stated term of 12 months or less. c. The Company will not separate non-lease components from lease components for all asset classes. d. The Company did not elect the hindsight practical expedient for any of the asset classes. Upon adoption, the Company recorded $44.0 million of right-of-use lease assets and $52.5 million of lease liabilities within the Consolidated Balance Sheet. The adoption of the standard did not have a material impact to the Consolidated Statements of Operations or Cash Flows. 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 Company adopted ASU 2019-12 for the fiscal year ended December 31, 2022 and the adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. Recently Issued Accounting Standards 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 2016-13 for its year beginning January 1, 2023 and subsequent interim periods. Although the assessment is ongoing, the Company does not expect the adoption of this guidance to have a material impact on the Company’s financial condition, results of operations or cash flows. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2022 | |
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 Revenue $ 631 Cost of sales — Gross profit 631 Selling, general and administrative expenses 1,346 Adjustment of lease termination liability (1) (16,457) Adjustment of other current liabilities (2) (6,608) Operating profit (loss) 22,350 Interest expense — Other expense, net 88 Income (loss) from discontinued operations before income taxes 22,262 Income tax expense (benefit) 71 Income (loss) from discontinued operations, net of tax $ 22,191 (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. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2022 | |
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 2022 2021 Land $ 226 $ 226 Furniture and fixtures 11,617 11,485 Building and improvements 9,713 9,737 Machinery and equipment 32,660 32,392 Internal-use capitalized software 14,921 14,615 Construction in progress, including internal-use capitalized software not yet in service 959 1,240 Property, plant and equipment, at cost 70,096 69,695 Less allowances for depreciation and amortization 42,266 39,210 $ 27,830 $ 30,485 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 Trademarks $ 3,100 $ (1,608) $ 1,492 $ 3,100 $ (1,608) $ 1,492 Balance at December 31, 2021 Trademarks 3,100 (1,408) 1,692 $ 3,100 $ (1,408) $ 1,692 Amortization expense for intangible assets was $0.2 million i n 2022 and 2021. 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 7.5 years. |
Current and Long-Term Financing
Current and Long-Term Financing | 12 Months Ended |
Dec. 31, 2022 | |
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 2022 2021 Total outstanding borrowings for continuing operations: Revolving credit agreements $ 110,895 $ 96,837 Total outstanding borrowings $ 110,895 $ 96,837 Total available borrowings, net of limitations, under revolving credit agreements $ 149,227 $ 149,015 Unused available borrowings $ 38,332 $ 52,178 Weighted average stated interest rate on total borrowings 3.80 % 2.18 % Weighted average effective interest rate on total borrowings (including interest rate swap agreements) 3.49 % 3.38 % Including swap settlements, interest paid on total debt was $4.5 million, $2.8 million, and $2.1 million during 2022 , 2021 , and 2020, respectively. Interest capitalized was not material in 2022, 2021 and 2020. HBB has a $150 million senior secured floating-rate revolving credit facility (the “HBB Facility”) that expires in June 2025. Repayment of the credit facility is due on June 30, 2025, therefore all borrowings are classified as long-term debt as of December 31, 2022. 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. As of December 31, 2022, 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, SOFR, or bankers' acceptance rate, as defined in the HBB Facility, plus an applicable margin. The applicable margins, effective December 31, 2022, for base rate loans and SOFR loans denominated in U.S. dollars were 0.00% and 2.05%, respectively. The applicable margins, effective December 31, 2022, for base rate loans and bankers' acceptance loans denominated in Canadian dollars were 0.00% and 2.05%, 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 $50.0 million at December 31, 2022 at an average fixed interest rate of 0.9%. HBB also entered into delayed-start interest rate swaps during 2021. These swaps have notional values totaling $50.0 million as of December 31, 2022, with an average fixed interest rate of 1.6%. |
Fair Value Disclosure
Fair Value Disclosure | 12 Months Ended |
Dec. 31, 2022 | |
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 SOFR 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. There were no transfers into or out of Levels 1 or 2 during the years ended December 31, 2022 and 2021. There was one transfer into Level 3 related to the $3.4 million of assets held for sale during the year ended December 31, 2020. These assets were transferred out of Level 3 during the year ended December 31, 2021. There were no transfers into or out of Level 3 during the year ended December 31, 2022. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
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 $11.3 million and $15.1 million at December 31, 2022, and 2021, respectively, denominated primarily in Canadian dollars and Mexican pesos. The fair value of these contracts approximated a receivable of $0.1 million at December 31, 2022 and a receivable of less than $0.1 million at December 31, 2021. 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 SOFR 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 2022 2021 2022 2021 December 31, 2022 Interest rate swaps $ 50.0 $ 25.0 0.9 % 1.7 % Extending to January 2024 Delayed start interest rate swaps $ 50.0 $ 75.0 1.6 % 1.2 % Extending to January 2029 The fair value of HBB's interest rate swap agreements was a receivable of $5.4 million at December 31, 2022 and a payable of $0.9 million at December 31, 2021. 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, 2022 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 2022 2021 Balance sheet location 2022 2021 Interest rate swap agreements Current Prepaid expenses and other current assets $ 837 $ — Other current liabilities $ — $ 216 Long-term Other non-current assets 4,539 — Other long-term liabilities — 655 Foreign currency exchange contracts Current Prepaid expenses and other current assets 174 73 Other current liabilities 101 41 Total derivatives $ 5,550 $ 73 $ 101 $ 912 |
Leasing Arrangements
Leasing Arrangements | 12 Months Ended |
Dec. 31, 2022 | |
Lessee Disclosure [Abstract] | |
Leasing Arrangements | Leasing Arrangements On January 1, 2022, the Company adopted ASU 2016-02, "Leases (Topic 842)", which at commencement of the Company’s operating leases, requires recognition of right-of-use assets and corresponding liabilities based on the present value of future lease payments over the lease term. Some of the Company’s leases, primarily those for real estate assets, may contain both lease and non-lease components, the Company has elected to combine and account for lease and non-lease components as a single lease component. Leases with an initial term of 12 months or less are not recorded in the Consolidated Balance Sheets and lease expense for these leases are recognized on a straight-line basis over the lease term. The Company does not have any finance leases. The Company’s leases have remaining lease terms of one month to 12 years, some of which include options to extend the leases for up to 5 years. The renewal option is included in the lease term if it is concluded that it is reasonably certain that we will exercise that option. The assets associated with the Company’s operating leases primarily consist of real estate and equipment. Real estate leases are comprised of warehouses, corporate headquarters and sales offices. Equipment leases include office and warehouse equipment as well as Company specific tooling used by third-party suppliers in the production process. Payments under these lease arrangements may be fixed or variable. Lease costs associated with fixed payments on the Company’s operating leases were $7.8 million for the year ended December 31, 2022. Variable lease costs, which are primarily related to production specific tooling assets provided by third-party suppliers, are included in product purchases which consisted of $357.6 million for the year ended December 31, 2022. Short-term lease costs for the year ended December 31, 2022 were $0.8 million. The following table presents supplemental cash flow and non-cash information related to leases: December 31 2022 Cash paid for amounts included in the measurement of lease liabilities – operating cash flows from leases $ 7,750 Right-of-use assets obtained in exchange for lease obligations – non-cash activity $ 5,430 The following table reconciles the undiscounted future lease payments for operating leases to the operating lease liabilities recorded in the Consolidated Balance Sheet at December 31, 2022: Undiscounted Future Operating Lease Payments 2023 $ 8,265 2024 8,010 2025 6,235 2026 5,701 2027 5,509 Thereafter 33,232 Total lease payments 66,952 Less: impact of discounting 14,276 Present value of lease payments $ 52,676 The weighted average remaining lease term and discount rate related to the Company’s lease liabilities as of December 31, 2022 is 9.7 years and 4.8% respectively. The discount rates used to present value the operating lease liabilities are based on estimates of the Company’s incremental borrowing rate. As of December 31, 2022, the Company did not have any additional material operating or finance leases that had not yet commenced. Future minimum operating lease payments at December 31, 2021 were: 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 and $6.2 million in 2020. |
Stockholders' Equity and Earnin
Stockholders' Equity and Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
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 2022 2021 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) 10,663 10,267 Treasury Stock 626 365 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) 3,844 4,000 (1) Class B Common converted to Class A Common were 156 shares during 2022 and 45 shares 2021. (2) The Company issued Class A Common of 240 during 2022 and 216 during 2021 related to the Company's stock compensation plan. Stock Repurchase Program In February 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. During the year ended December 31, 2022, the Company repurchased 261,049 shares for an aggregate purchase price of $3.0 million. There were no share repurchases during the years ended December 31, 2021 and 2020. 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, 2020 $ (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) Other comprehensive income (loss) (865) 5,950 (5,444) (359) Reclassification adjustment to net income (loss) 1,267 478 851 2,596 Tax effects 551 (1,632) 1,169 88 Balance, December 31, 2022 $ (8,924) $ 4,158 $ (7,152) $ (11,918) 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: 2022 2021 2020 Basic weighted average shares outstanding 13,970 13,880 13,657 Dilutive effect of share-based compensation awards 26 50 55 Diluted weighted average shares outstanding 13,996 13,930 13,712 Basic earnings (loss) per share: Continuing operations $ 1.81 $ 1.54 $ 1.76 Discontinued operations — — 1.62 Basic and diluted earnings (loss) per share $ 1.81 $ 1.54 $ 3.39 Diluted earnings (loss) per share: Continuing operations $ 1.81 $ 1.53 $ 1.76 Discontinued operations — — 1.62 Diluted earnings (loss) per share $ 1.81 $ 1.53 $ 3.37 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2022 | |
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 a 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, logos and/or products (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 2022 2021 2020 Consumer products $ 573,898 $ 612,795 $ 568,685 Commercial products 61,455 40,978 30,066 Licensing 5,596 4,621 4,962 Total revenues $ 640,949 $ 658,394 $ 603,713 Walmart Inc. and its global subsidiaries accounted for approximately 26%, 28%, and 35% of HBB’s revenue in 2022, 2021, and 2020, respectively. Amazon.com, Inc. and its subsidiaries accounted for approximately 23%, 22%, and 16% of HBB's revenue in 2022, 2021, and 2020 respectively. HBB’s five largest customers accounted for approximately 61%, 61%, and 64% of HBB’s revenue in 2022, 2021, and 2020, respectively. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
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 was previously a defendant in a lawsuit seeking to hold the Company liable for the unsatisfied portion of an agreed final judgment that plaintiff obtained against KC related to KC’s discontinuing operations during the term of various store leases. Plaintiff voluntarily dismissed its lawsuit in the fourth quarter of 2022 without any settlement or payment by the Company. 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. accrued undiscounted obligations |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
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: 2022 2021 2020 Income (loss) from continuing operations before income taxes Domestic $ 34,400 $ 27,187 $ 31,140 Foreign (1,971) 1,770 2,592 $ 32,429 $ 28,957 $ 33,732 Income tax expense (benefit) within continuing operations Current income tax expense (benefit): Federal $ 6,297 $ 2,520 $ 7,006 State 2,463 1,015 1,877 Foreign (1,970) 2,006 2,213 Total current 6,790 5,541 11,096 Deferred income tax expense (benefit): Federal (669) 1,815 (924) State (153) 556 (325) Foreign 1,194 (261) (182) Total deferred 372 2,110 (1,431) $ 7,162 $ 7,651 $ 9,665 The Company made $5.3 million and $6.4 million federal income tax payments during 2022 and 2021, respectively, to the IRS. No federal income tax payments were made during 2020. The Company made foreign and state income tax payments of $4.0 million, $2.6 million, and $2.9 million during 2022, 2021, and 2020, respectively. Income tax refunds totaled $0.5 million in 2022 and $1.0 million in 2020. No income tax refunds were received in 2021. A reconciliation of the federal statutory and effective income tax rate for the years ended December 31 is as follows: 2022 2021 2020 $ % $ % $ % Income (loss) from continuing operations before income taxes $ 32,429 $ 28,957 $ 33,732 Statutory taxes at 21% $ 6,810 21.0 % $ 6,081 21.0 % $ 7,092 21.0 % State and local income taxes 1,850 5.7 % 1,357 4.7 % 1,136 3.4 % Valuation allowances 642 2.0 % 297 1.0 % 614 1.8 % Other non-deductible expenses 384 1.2 % 579 2.0 % 415 1.2 % Credits (900) (2.8) % (681) (2.4) % (700) (2.1) % Effect of foreign operations (526) (1.6) % (399) (1.4) % 120 0.4 % Loss on Kitchen Collection dissolution — — % — — % 616 1.8 % Unrecognized tax benefits (1,179) (3.6) % 687 2.4 % 708 2.1 % Other, net 81 0.2 % (270) (0.9) % (336) (1.0) % Income tax provision $ 7,162 22.1 % $ 7,651 26.4 % $ 9,665 28.7 % 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 2022 2021 Deferred tax assets Tax carryforwards $ 2,195 $ 2,841 Inventory 1,216 2,084 Accrued expenses and reserves 3,846 7,338 Other employee benefits 2,835 2,852 Other 1,155 1,046 Total deferred tax assets 11,247 16,161 Less: Valuation allowances (2,153) (2,095) 9,094 14,066 Deferred tax liabilities Inventory — 550 Accrued pension benefits 3,130 4,119 Depreciation and amortization 2,847 5,355 Total deferred tax liabilities 5,977 10,024 Net deferred tax asset $ 3,117 $ 4,042 As of December 31, 2022 and 2021, 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, 2022 Net deferred tax Valuation Carryforwards Non-U.S. net operating loss $ 1,923 $ 1,923 2023 - Indefinite December 31, 2021 Net deferred tax Valuation Carryforwards Non-U.S. net operating loss $ 2,841 $ 1,399 2022 - 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, 2022, the cumulative unremitted earnings of the Company's foreign subsidiaries are approximately $20.1 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 and the complexity of the rules governing the utilization of such credits under the new rules under the Tax Act. 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, 2022, 2021, and 2020. Approximately $0.2 million, $3.8 million, and $4.0 million of these gross amounts as of December 31, 2022, 2021, and 2020, 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. The balances in the table below as of December 31, 2020 and December 31, 2021 include unrecognized tax benefits, including interest and penalties, related to an unresolved Mexico tax matter. The interest and penalties on these unrecognized tax benefits were reversed during the second quarter of 2022 due to a change in the Company's position on the matter. 2022 2021 2020 Balance at January 1 $ 3,855 $ 4,114 $ 4,266 Additions (reductions) based on tax positions related to prior years (3,476) (110) (116) Additions based on tax positions related to the current year 71 40 130 Reductions for lapse of statute of limitations (194) — (166) Reductions due to settlements with taxing authorities — (189) — Balance at December 31 $ 256 $ 3,855 $ 4,114 The Company records interest and penalties on uncertain tax positions as a component of the income tax provision. The Company recognized income of $1.5 million related to the reversal of interest and penalties as of December 31, 2022 and expense of $1.1 million and $0.7 million related to interest and penalties as of December 31, 2021 and 2020, respectively. The total amount of interest and penalties accrued was $1.9 million and $0.7 million as of December 31, 2021 and 2020, respectively. There were no accruals for interest and penalties as of December 31, 2022. |
Retirement Benefit Plans
Retirement Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
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. During the second quarter of 2022, the Board of Directors of HBB approved the termination of the Company's U.S. defined benefit pension plan (the "Plan") with an effective date of September 30, 2022. The Plan was previously frozen, effective December 31, 1996, for participation and benefit accrual purposes (except cash balance interest credits required by law). The Company has started the process to terminate and settle the Plan, which could take up to an estimated 24 months to complete. Benefit obligations under the Plan will be settled through a combination of lump sum payments to eligible plan participants and the purchase of a group annuity contract, under which future benefit obligations will be transferred to a third-party insurance company. We currently expect that all surplus assets remaining after the Plan termination will be transferred to a qualified replacement plan. The weighted-average assumptions used in accounting for the defined benefit plans were as follows for the years ended December 31: 2022 2021 2020 U.S. Plan Discount rate for pension benefit obligation 5.34 % 2.46 % 1.87 % Discount rate for net periodic benefit (income) expense 3.22 % 1.87 % 2.88 % Expected long-term rate of return on assets for net periodic pension (income) expense 6.44 % 7.25 % 7.50 % Non-U.S. Plan Discount rate for pension benefit obligation 5.15 % 2.90 % 2.38 % Discount rate for net periodic benefit (income) expense 2.90 % 2.38 % 2.96 % Expected long-term rate of return on assets for net periodic pension (income) expense 4.75 % 4.75 % 5.00 % In the third quarter of 2022, the Company remeasured the Plan which was triggered by the level of lump sum distributions from the Plans' assets exceeding the Plan's service and interest cost threshold. The discount rate for net periodic benefit (income) expense used during the period January 1, 2022 to September 30, 2022 was 2.46%. Due to the remeasurement in the third quarter, the discount rate used for the settlement charge and for the net periodic benefit (income) expense for the period October 1, 2022 to December 31, 2022 period was 5.49%. A discount rate of 5.34% was used for the fourth quarter 2022 settlement charge. The expected long-term rate of return on assets used for the net periodic benefit (income) expense used during the period January 1, 2022 to September 30, 2022 was 7.25%. The expected long-term rate of return on assets used for the net periodic benefit (income) expense for the period October 1, 2022 to December 31, 2022 period was 4.00%. For determining our U.S. plan and non-U.S. plan 2023 pension net periodic benefit (income) expense, our expected rate of return assumptions are 4.0% and 6.0%, respectively. 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: 2022 2021 2020 U.S. Plan Interest cost $ 478 $ 338 $ 527 Expected return on plan assets (1,820) (2,033) (2,011) Amortization of actuarial loss 520 591 631 Settlement loss 347 — — Net periodic pension (income) expense $ (475) $ (1,104) $ (853) Non-U.S. Plan Interest cost $ 127 $ 118 $ 128 Expected return on plan assets (261) (260) (253) Amortization of actuarial loss (gain) (16) 63 70 Net periodic pension (income) expense $ (150) $ (79) $ (55) 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: 2022 2021 2020 U.S. Plan Current year actuarial loss (gain) $ 5,558 $ (2,228) $ (1,080) Settlement loss (347) — — Amortization of actuarial loss (520) (591) (631) Total recognized in other comprehensive loss (income) $ 4,691 $ (2,819) $ (1,711) Non-U.S. Plan Current year actuarial loss (gain) $ (114) $ (742) $ 236 Amortization of actuarial (loss) gain 16 (63) (70) Total recognized in other comprehensive loss (income) $ (98) $ (805) $ 166 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: 2022 2021 U.S. Non-U.S. U.S. Plan Non-U.S. Change in benefit obligation Projected benefit obligation at beginning of year $ 17,004 $ 4,607 $ 18,978 $ 5,000 Interest cost 478 127 338 118 Actuarial (gain) loss (952) (979) (649) (309) Benefits paid (1,497) (265) (1,663) (228) Settlements (538) — — — Foreign currency exchange rate changes — (252) — 26 Projected benefit obligation at end of year $ 14,495 $ 3,238 $ 17,004 $ 4,607 Accumulated benefit obligation at end of year $ 14,495 $ 3,238 $ 17,004 $ 4,607 Change in plan assets Fair value of plan assets at beginning of year $ 33,019 $ 5,772 $ 31,070 $ 5,497 Actual return on plan assets (4,690) (598) 3,612 676 Benefits paid (1,497) (265) (1,663) (228) Settlements (538) — — — Other — (178) — — Foreign currency exchange rate changes — (330) — (173) Fair value of plan assets at end of year $ 26,294 $ 4,401 $ 33,019 $ 5,772 Funded status at end of year $ 11,799 $ 1,163 $ 16,015 $ 1,165 Amounts recognized in the balance sheets consist of: Deferred costs $ 11,799 $ 1,163 $ 16,015 $ 1,165 Components of accumulated other comprehensive loss consist of: Actuarial loss $ (9,301) $ (321) $ (4,610) $ (419) Deferred taxes 2,378 92 1,179 122 $ (6,923) $ (229) $ (3,431) $ (297) During 2022, the Company recognized a pre-tax pension settlement loss in Other expense (income), net of $0.3 million, triggered by the level of lump sum distributions from the Plans' assets exceeding the Plan's service and interest cost threshold. The actuarial loss included in accumulated other comprehensive loss expected to be recognized in net periodic pension (income) expense in 2023 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 2023. Pension benefit payments are made from assets of the pension plans. Given the Company's plan to terminate the Plan, the below reflects the timing and value of the estimated benefit payments for lump sums expected to be paid out to participants and the amount expected to be paid for annuity contracts in anticipation of terminating the plan. Future pension benefit payments expected to be paid from assets of the pension plans are: U.S. Plan Non-U.S. Plan 2023 $ 3,795 $ 223 2024 11,375 231 2025 — 238 2026 — 246 2027 — 257 2028-2032 — 1,226 $ 15,170 $ 2,421 Historically, the Company employed a total return on investment approach whereby a mix of equities and fixed income investments were used to maximize the long-term return of plan assets for a prudent level of risk. In light of the Plan termination process, volatility in the market, and the Plan's funding status, the Plan transferred a significant portion of its assets to lower risk investments in 2022 to move towards a liability driven investing strategy whereby the assets are primarily fixed income investments. The fixed income investments that were chosen under this strategy, while not precisely the same, are meant to parallel the investments selected in determining the discount rate used to calculate the Company’s pension liability. For the Non-U.S. Plan, 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 are 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: 2022 Actual Allocation 2021 Actual Allocation Target Allocation U.S. equity securities — % 48.3 % 0.0% - 5.0% Non-U.S. equity securities — % 19.8 % 0.0% - 5.0% Fixed income securities 95.9 % 31.3 % 95.0% - 100.0% Money market 4.1 % 0.6 % 0.0% - 5.0% The following is the actual allocation percentage and target allocation percentage for the Non-U.S. pension plan assets at December 31: 2022 Actual Allocation 2021 Actual Allocation Target Allocation Canadian equity securities 40.0 % 34.2 % 25.0% - 35.0% Non-Canadian equity securities 40.6 % 38.3 % 25.0% - 35.0% Fixed income securities 19.4 % 27.5 % 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 2022 2021 2022 2021 U.S. equity securities $ — $ 15,957 $ 1,060 $ 1,325 Non-U.S. equity securities — 6,535 2,488 2,857 Fixed income securities 25,213 10,330 853 1,590 Money market 1,081 197 — — Total $ 26,294 $ 33,019 $ 4,401 $ 5,772 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 $5.2 million in 2022, $5.0 million in 2021 and $5.1 million in 2020. |
Data by Geographic Region
Data by Geographic Region | 12 Months Ended |
Dec. 31, 2022 | |
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 2022 Revenue from unaffiliated customers $ 504,449 $ 136,500 $ 640,949 Property, plant and equipment, net $ 24,207 $ 3,623 $ 27,830 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 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, 2022 | |
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, 2022, 2021, AND 2020 Additions Description Balance at Beginning of Period Charged to Charged to Deductions Balance at (In thousands) 2022 Reserves deducted from asset accounts: Allowance for doubtful accounts $ 1,036 $ (79) $ — $ — (A) $ 957 Deferred tax valuation allowances $ 2,095 $ 568 — $ 510 (C) $ 2,153 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 (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, 2022 | |
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, 2022, HBB is the Company’s single reportable operating segment. The Company’s reportable segment is determined based on (i) financial information reviewed by the chief operating decision maker ("CODM") (ii) operational structure of HBB which is designed and managed to share resources across the entire suite of products offered by the business, and (iii) the basis upon which the CODM makes resource allocation decisions. 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, 2022 and 2021. 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 Receivables | 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 $118.5 million, $140.7 million , and $162.4 million of trade receivables during 2022, 2021 and 2020, respectively. The losses incurred on sold receivables in the consolidated results of operations for the years ended December 31, 2022, 2021, and 2020 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 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. The carrying amounts of the assets were reclassified to held and used during the second quarter of 2021. During the first quarter of 2022, the criteria for substantially complete liquidation were met, and $2.1 million of accumulated other comprehensive losses were released into other expense (income), net in the consolidated results of operations during the three months ended March 31, 2022. |
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 SOFR (Secured Overnight Financing 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 2022, 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, 2022 , $110,000 ($150,000 for the Chairman ) of the non-employee director's annual retainer of $175,000 ($250,000 for the Chairman) wa s 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) 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 90,223, 57,735, and 74,337 shares in the years ended December 31, 2022, 2021 and 2020, 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. There were no shares issued under voluntary elections in 2022. Total shares issued under voluntary elections were 1,768 and 2,343 in 2021 and 2020, respectively. After the issuance of these shares, there were 193,646 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 $1.1 million for the years ended December 31, 2022, 2021 and 2020, respectively. Stock compensation expense represents fair value based on the market price of the shares of Class A Common on the grant date. |
Leases | Leases The Company adopted Topic 842 on January 1, 2022. The Company determines whether an arrangement is a lease at inception, considering whether the contract conveys a right to control the use of the identified asset for a period of time in exchange for consideration. Leases are classified as operating or finance leases at the commencement date of the lease. Operating leases are included in Right-of-use lease assets, Lease liabilities, and Lease liabilities, non-current on the Consolidated Balance Sheets. Right-of-use lease assets and lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. Lease liabilities are classified between current and non-current liabilities based on their contractual payment terms. The right-of-use lease asset includes prepaid rent and reflects the unamortized balance of lease incentives. The Company’s leases may include renewal options, and the renewal option is included in the lease term if it is concluded that it is reasonably certain that we will exercise that option. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company has operating leases for real estate, equipment, and production specific tooling assets used by our third-party suppliers. The Company does not have finance leases. The Company has elected not to record short-term leases with initial terms of twelve months or less in our Consolidated Balance Sheets. Lease expense for operating leases is recognized on a straight-line basis over the lease term. Variable lease payments that do not depend on an index or a rate, such as the Company’s proportionate share of actual costs for utilities, common area maintenance, insurance, and property taxes, are excluded from the measurement of the lease liability, unless subject to fixed minimum requirements, and are recognized as variable lease cost when the obligation for that payment is incurred. The Company combines lease and non-lease components as a single component for all asset classes. Lease expense is classified as cost of sales or selling, general and administrative expenses in our Consolidated Statements of Operations based on the use of the leased item. |
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. |
Accounting Standards Adopted and Recently Issued Accounting Standards | Accounting Standards Adopted 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. During the third quarter of 2022, the Company adopted certain optional expedients provided under Topic 848 that permit its hedging relationships to continue without de-designation upon changes due to reference rate reform. The adoption of this guidance resulted in no material impact to the Company’s consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, "Leases, (Topic 842)" which was subsequently amended when FASB issued: ASU 2018-01, "Land Easement Practical Expedient for Transition to Topic 842"; ASU 2018-10, "Codification Improvements to Topic 842"; ASU 2018-11, "Targeted Improvements". Topic 842 modifies lease accounting by requiring lessees to recognize lease right-of-use assets and liabilities for operating leases and disclosing key information about leasing arrangements. The Company adopted Topic 842 utilizing the effective date transition method, which does not require restatement of prior periods, on January 1, 2022 and as part of the process made the following permitted accounting policy elections: a. The package of practical expedients, which allowed the Company not to reassess prior conclusions reached related to lease existence, lease classification, and initial direct costs. b. The Company will not recognize right-of-use assets or lease liabilities for leases with a stated term of 12 months or less. c. The Company will not separate non-lease components from lease components for all asset classes. d. The Company did not elect the hindsight practical expedient for any of the asset classes. Upon adoption, the Company recorded $44.0 million of right-of-use lease assets and $52.5 million of lease liabilities within the Consolidated Balance Sheet. The adoption of the standard did not have a material impact to the Consolidated Statements of Operations or Cash Flows. 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 Company adopted ASU 2019-12 for the fiscal year ended December 31, 2022 and the adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. Recently Issued Accounting Standards 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 2016-13 for its year beginning January 1, 2023 and subsequent interim periods. Although the assessment is ongoing, the Company does not expect the adoption of this guidance to have a material impact on the Company’s financial condition, results of operations or cash flows. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 Revenue $ 631 Cost of sales — Gross profit 631 Selling, general and administrative expenses 1,346 Adjustment of lease termination liability (1) (16,457) Adjustment of other current liabilities (2) (6,608) Operating profit (loss) 22,350 Interest expense — Other expense, net 88 Income (loss) from discontinued operations before income taxes 22,262 Income tax expense (benefit) 71 Income (loss) from discontinued operations, net of tax $ 22,191 (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, 2022 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment, net includes the following: December 31 2022 2021 Land $ 226 $ 226 Furniture and fixtures 11,617 11,485 Building and improvements 9,713 9,737 Machinery and equipment 32,660 32,392 Internal-use capitalized software 14,921 14,615 Construction in progress, including internal-use capitalized software not yet in service 959 1,240 Property, plant and equipment, at cost 70,096 69,695 Less allowances for depreciation and amortization 42,266 39,210 $ 27,830 $ 30,485 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 Trademarks $ 3,100 $ (1,608) $ 1,492 $ 3,100 $ (1,608) $ 1,492 Balance at December 31, 2021 Trademarks 3,100 (1,408) 1,692 $ 3,100 $ (1,408) $ 1,692 |
Current and Long-Term Financi_2
Current and Long-Term Financing (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table summarizes HBB's available and outstanding borrowings: December 31 2022 2021 Total outstanding borrowings for continuing operations: Revolving credit agreements $ 110,895 $ 96,837 Total outstanding borrowings $ 110,895 $ 96,837 Total available borrowings, net of limitations, under revolving credit agreements $ 149,227 $ 149,015 Unused available borrowings $ 38,332 $ 52,178 Weighted average stated interest rate on total borrowings 3.80 % 2.18 % Weighted average effective interest rate on total borrowings (including interest rate swap agreements) 3.49 % 3.38 % |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 2022 2021 2022 2021 December 31, 2022 Interest rate swaps $ 50.0 $ 25.0 0.9 % 1.7 % Extending to January 2024 Delayed start interest rate swaps $ 50.0 $ 75.0 1.6 % 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 2022 2021 Balance sheet location 2022 2021 Interest rate swap agreements Current Prepaid expenses and other current assets $ 837 $ — Other current liabilities $ — $ 216 Long-term Other non-current assets 4,539 — Other long-term liabilities — 655 Foreign currency exchange contracts Current Prepaid expenses and other current assets 174 73 Other current liabilities 101 41 Total derivatives $ 5,550 $ 73 $ 101 $ 912 |
Leasing Arrangements (Tables)
Leasing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Lessee Disclosure [Abstract] | |
Summary of Supplemental Cash Flow and Non-cash Information | The following table presents supplemental cash flow and non-cash information related to leases: December 31 2022 Cash paid for amounts included in the measurement of lease liabilities – operating cash flows from leases $ 7,750 Right-of-use assets obtained in exchange for lease obligations – non-cash activity $ 5,430 |
Future Lease Payments for Operating Leases | The following table reconciles the undiscounted future lease payments for operating leases to the operating lease liabilities recorded in the Consolidated Balance Sheet at December 31, 2022: Undiscounted Future Operating Lease Payments 2023 $ 8,265 2024 8,010 2025 6,235 2026 5,701 2027 5,509 Thereafter 33,232 Total lease payments 66,952 Less: impact of discounting 14,276 Present value of lease payments $ 52,676 Future minimum operating lease payments at December 31, 2021 were: 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, 2022 | |
Equity [Abstract] | |
Schedule of Stock by Class | The following table sets forth the Company's authorized capital stock information: December 31 2022 2021 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) 10,663 10,267 Treasury Stock 626 365 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) 3,844 4,000 (1) Class B Common converted to Class A Common were 156 shares during 2022 and 45 shares 2021. (2) The Company issued Class A Common of 240 during 2022 and 216 during 2021 related to the Company's stock compensation plan. |
Reclassification out of 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, 2020 $ (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) Other comprehensive income (loss) (865) 5,950 (5,444) (359) Reclassification adjustment to net income (loss) 1,267 478 851 2,596 Tax effects 551 (1,632) 1,169 88 Balance, December 31, 2022 $ (8,924) $ 4,158 $ (7,152) $ (11,918) |
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: 2022 2021 2020 Basic weighted average shares outstanding 13,970 13,880 13,657 Dilutive effect of share-based compensation awards 26 50 55 Diluted weighted average shares outstanding 13,996 13,930 13,712 Basic earnings (loss) per share: Continuing operations $ 1.81 $ 1.54 $ 1.76 Discontinued operations — — 1.62 Basic and diluted earnings (loss) per share $ 1.81 $ 1.54 $ 3.39 Diluted earnings (loss) per share: Continuing operations $ 1.81 $ 1.53 $ 1.76 Discontinued operations — — 1.62 Diluted earnings (loss) per share $ 1.81 $ 1.53 $ 3.37 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 2022 2021 2020 Consumer products $ 573,898 $ 612,795 $ 568,685 Commercial products 61,455 40,978 30,066 Licensing 5,596 4,621 4,962 Total revenues $ 640,949 $ 658,394 $ 603,713 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense (Benefit) | 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: 2022 2021 2020 Income (loss) from continuing operations before income taxes Domestic $ 34,400 $ 27,187 $ 31,140 Foreign (1,971) 1,770 2,592 $ 32,429 $ 28,957 $ 33,732 Income tax expense (benefit) within continuing operations Current income tax expense (benefit): Federal $ 6,297 $ 2,520 $ 7,006 State 2,463 1,015 1,877 Foreign (1,970) 2,006 2,213 Total current 6,790 5,541 11,096 Deferred income tax expense (benefit): Federal (669) 1,815 (924) State (153) 556 (325) Foreign 1,194 (261) (182) Total deferred 372 2,110 (1,431) $ 7,162 $ 7,651 $ 9,665 |
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: 2022 2021 2020 $ % $ % $ % Income (loss) from continuing operations before income taxes $ 32,429 $ 28,957 $ 33,732 Statutory taxes at 21% $ 6,810 21.0 % $ 6,081 21.0 % $ 7,092 21.0 % State and local income taxes 1,850 5.7 % 1,357 4.7 % 1,136 3.4 % Valuation allowances 642 2.0 % 297 1.0 % 614 1.8 % Other non-deductible expenses 384 1.2 % 579 2.0 % 415 1.2 % Credits (900) (2.8) % (681) (2.4) % (700) (2.1) % Effect of foreign operations (526) (1.6) % (399) (1.4) % 120 0.4 % Loss on Kitchen Collection dissolution — — % — — % 616 1.8 % Unrecognized tax benefits (1,179) (3.6) % 687 2.4 % 708 2.1 % Other, net 81 0.2 % (270) (0.9) % (336) (1.0) % Income tax provision $ 7,162 22.1 % $ 7,651 26.4 % $ 9,665 28.7 % |
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 2022 2021 Deferred tax assets Tax carryforwards $ 2,195 $ 2,841 Inventory 1,216 2,084 Accrued expenses and reserves 3,846 7,338 Other employee benefits 2,835 2,852 Other 1,155 1,046 Total deferred tax assets 11,247 16,161 Less: Valuation allowances (2,153) (2,095) 9,094 14,066 Deferred tax liabilities Inventory — 550 Accrued pension benefits 3,130 4,119 Depreciation and amortization 2,847 5,355 Total deferred tax liabilities 5,977 10,024 Net deferred tax asset $ 3,117 $ 4,042 |
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, 2022 Net deferred tax Valuation Carryforwards Non-U.S. net operating loss $ 1,923 $ 1,923 2023 - Indefinite December 31, 2021 Net deferred tax Valuation Carryforwards Non-U.S. net operating loss $ 2,841 $ 1,399 2022 - 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, 2022, 2021, and 2020. Approximately $0.2 million, $3.8 million, and $4.0 million of these gross amounts as of December 31, 2022, 2021, and 2020, 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. The balances in the table below as of December 31, 2020 and December 31, 2021 include unrecognized tax benefits, including interest and penalties, related to an unresolved Mexico tax matter. The interest and penalties on these unrecognized tax benefits were reversed during the second quarter of 2022 due to a change in the Company's position on the matter. 2022 2021 2020 Balance at January 1 $ 3,855 $ 4,114 $ 4,266 Additions (reductions) based on tax positions related to prior years (3,476) (110) (116) Additions based on tax positions related to the current year 71 40 130 Reductions for lapse of statute of limitations (194) — (166) Reductions due to settlements with taxing authorities — (189) — Balance at December 31 $ 256 $ 3,855 $ 4,114 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Assumptions Used in Accounting for the Defined Benefit Plan | The weighted-average assumptions used in accounting for the defined benefit plans were as follows for the years ended December 31: 2022 2021 2020 U.S. Plan Discount rate for pension benefit obligation 5.34 % 2.46 % 1.87 % Discount rate for net periodic benefit (income) expense 3.22 % 1.87 % 2.88 % Expected long-term rate of return on assets for net periodic pension (income) expense 6.44 % 7.25 % 7.50 % Non-U.S. Plan Discount rate for pension benefit obligation 5.15 % 2.90 % 2.38 % Discount rate for net periodic benefit (income) expense 2.90 % 2.38 % 2.96 % Expected long-term rate of return on assets for net periodic pension (income) expense 4.75 % 4.75 % 5.00 % |
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: 2022 2021 2020 U.S. Plan Interest cost $ 478 $ 338 $ 527 Expected return on plan assets (1,820) (2,033) (2,011) Amortization of actuarial loss 520 591 631 Settlement loss 347 — — Net periodic pension (income) expense $ (475) $ (1,104) $ (853) Non-U.S. Plan Interest cost $ 127 $ 118 $ 128 Expected return on plan assets (261) (260) (253) Amortization of actuarial loss (gain) (16) 63 70 Net periodic pension (income) expense $ (150) $ (79) $ (55) |
Changes in Plan Assets and Benefit Obligations Recognized in Comprehensive Loss (Income) | 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: 2022 2021 2020 U.S. Plan Current year actuarial loss (gain) $ 5,558 $ (2,228) $ (1,080) Settlement loss (347) — — Amortization of actuarial loss (520) (591) (631) Total recognized in other comprehensive loss (income) $ 4,691 $ (2,819) $ (1,711) Non-U.S. Plan Current year actuarial loss (gain) $ (114) $ (742) $ 236 Amortization of actuarial (loss) gain 16 (63) (70) Total recognized in other comprehensive loss (income) $ (98) $ (805) $ 166 |
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: 2022 2021 U.S. Non-U.S. U.S. Plan Non-U.S. Change in benefit obligation Projected benefit obligation at beginning of year $ 17,004 $ 4,607 $ 18,978 $ 5,000 Interest cost 478 127 338 118 Actuarial (gain) loss (952) (979) (649) (309) Benefits paid (1,497) (265) (1,663) (228) Settlements (538) — — — Foreign currency exchange rate changes — (252) — 26 Projected benefit obligation at end of year $ 14,495 $ 3,238 $ 17,004 $ 4,607 Accumulated benefit obligation at end of year $ 14,495 $ 3,238 $ 17,004 $ 4,607 Change in plan assets Fair value of plan assets at beginning of year $ 33,019 $ 5,772 $ 31,070 $ 5,497 Actual return on plan assets (4,690) (598) 3,612 676 Benefits paid (1,497) (265) (1,663) (228) Settlements (538) — — — Other — (178) — — Foreign currency exchange rate changes — (330) — (173) Fair value of plan assets at end of year $ 26,294 $ 4,401 $ 33,019 $ 5,772 Funded status at end of year $ 11,799 $ 1,163 $ 16,015 $ 1,165 Amounts recognized in the balance sheets consist of: Deferred costs $ 11,799 $ 1,163 $ 16,015 $ 1,165 Components of accumulated other comprehensive loss consist of: Actuarial loss $ (9,301) $ (321) $ (4,610) $ (419) Deferred taxes 2,378 92 1,179 122 $ (6,923) $ (229) $ (3,431) $ (297) |
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 2023 $ 3,795 $ 223 2024 11,375 231 2025 — 238 2026 — 246 2027 — 257 2028-2032 — 1,226 $ 15,170 $ 2,421 |
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: 2022 Actual Allocation 2021 Actual Allocation Target Allocation U.S. equity securities — % 48.3 % 0.0% - 5.0% Non-U.S. equity securities — % 19.8 % 0.0% - 5.0% Fixed income securities 95.9 % 31.3 % 95.0% - 100.0% Money market 4.1 % 0.6 % 0.0% - 5.0% The following is the actual allocation percentage and target allocation percentage for the Non-U.S. pension plan assets at December 31: 2022 Actual Allocation 2021 Actual Allocation Target Allocation Canadian equity securities 40.0 % 34.2 % 25.0% - 35.0% Non-Canadian equity securities 40.6 % 38.3 % 25.0% - 35.0% Fixed income securities 19.4 % 27.5 % 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 2022 2021 2022 2021 U.S. equity securities $ — $ 15,957 $ 1,060 $ 1,325 Non-U.S. equity securities — 6,535 2,488 2,857 Fixed income securities 25,213 10,330 853 1,590 Money market 1,081 197 — — Total $ 26,294 $ 33,019 $ 4,401 $ 5,772 |
Data by Geographic Region (Tabl
Data by Geographic Region (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 2022 Revenue from unaffiliated customers $ 504,449 $ 136,500 $ 640,949 Property, plant and equipment, net $ 24,207 $ 3,623 $ 27,830 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 |
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, 2022 segment | |
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, 2022 | Dec. 31, 2021 | |
Consolidated net accounts receivable | Customer Concentration Risk | Five largest customers | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk percentage | 73% | 61% |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | |||
Accounts receivable derecognized | $ 118.5 | $ 140.7 | $ 162.4 |
Nature of Operations and Summ_7
Nature of Operations and Summary of Significant Accounting Policies (Assets Held for Sale) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||||
Accumulated other comprehensive loss | $ 2,100 | $ 2,085 | $ 0 | $ 0 |
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, 2022 | |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | |||
Product development costs | $ 11.8 | $ 8.6 | $ 10 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Director | Share-based Payment Arrangement, Nonemployee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 175 | $ 167 | ||
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 (in shares) | 90,223 | 57,735 | 74,337 | |
Number of shares available for grant (in shares) | 193,646 | |||
Share-based compensation expense | $ 1,100 | $ 1,100 | $ 1,100 | |
Election to receive common shares in lieu of cash, maximum percentage of annual retainer | 100% | |||
Restricted Stock | Director | Share-based Payment Arrangement, Nonemployee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 110 | 105 | ||
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 (in shares) | 0 | 1,768 | 2,343 | |
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 (in shares) | 150,062 | 158,272 | 94,898 | |
Number of shares available for grant (in shares) | 722,568 | |||
Share-based compensation expense | $ 2,300 | $ 2,100 | $ 2,900 | |
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 |
Nature of Operations and Sum_12
Nature of Operations and Summary of Significant Accounting Policies (Insurance Recovery) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022 USD ($) | |
Accounting Policies [Abstract] | |
Insurance recoveries | $ 10 |
Fidelity insurance, loss recovery, policy maximum | $ 10 |
Nature of Operations and Sum_13
Nature of Operations and Summary of Significant Accounting Policies (Accounting Standards Adopted) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jan. 01, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | |||
Right-of-use assets | $ 44,000 | $ 44,000 | $ 0 |
Operating Lease, Liability | $ 52,676 | $ 52,500 |
Discontinued Operations (Income
Discontinued Operations (Income Statement Disclosures) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Income (loss) from discontinued operations, net of tax | $ 0 | $ 0 | $ 22,191 |
KC | Discontinued Operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Revenue | 631 | ||
Cost of sales | 0 | ||
Gross profit | 631 | ||
Selling, general and administrative expenses | 1,346 | ||
Adjustment of lease termination liability | (16,457) | ||
Adjustment of other current liabilities | (6,608) | ||
Operating profit (loss) | 22,350 | ||
Interest expense | 0 | ||
Other expense, net | 88 | ||
Income (loss) from discontinued operations before income taxes | 22,262 | ||
Income tax expense (benefit) | 71 | ||
Income (loss) from discontinued operations, net of tax | $ 22,191 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | $ 70,096 | $ 69,695 | |
Less allowances for depreciation and amortization | 42,266 | 39,210 | |
Property, plant and equipment, net | 27,830 | 30,485 | $ 23,490 |
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 | 11,617 | 11,485 | |
Building and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | 9,713 | 9,737 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | 32,660 | 32,392 | |
Internal-use capitalized software | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | 14,921 | 14,615 | |
Construction in progress, including internal-use capitalized software not yet in service | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | $ 959 | $ 1,240 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets, Net [Abstract] | |||
Gross Carrying Amount | $ 3,100 | $ 3,100 | |
Accumulated Amortization | (1,608) | (1,408) | |
Net Balance | 1,492 | 1,692 | |
Amortization of intangible assets | 200 | 200 | $ 1,249 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2023 | 200 | ||
2024 | 200 | ||
2025 | 200 | ||
2026 | 200 | ||
2027 | $ 200 | ||
Intangible assets, weighted average amortization period | 7 years 6 months | ||
Trademarks | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Gross Carrying Amount | $ 3,100 | 3,100 | |
Accumulated Amortization | (1,608) | (1,408) | |
Net Balance | $ 1,492 | $ 1,692 |
Current and Long-Term Financi_3
Current and Long-Term Financing (Debt Schedule) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
Revolving credit agreements | $ 110,895 | $ 96,837 |
Total outstanding borrowings | 110,895 | 96,837 |
Total available borrowings, net of limitations, under revolving credit agreements | 149,227 | 149,015 |
Unused available borrowings | $ 38,332 | $ 52,178 |
Weighted average stated interest rate on total borrowings | 3.80% | 2.18% |
Weighted average effective interest rate on total borrowings (including interest rate swap agreements) | 3.49% | 3.38% |
Current and Long-Term Financi_4
Current and Long-Term Financing (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Aug. 15, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Line of Credit Facility [Line Items] | ||||
Interest paid | $ 4,500,000 | $ 2,800,000 | $ 2,100,000 | |
Interest capitalized | $ 0 | 0 | $ 0 | |
Line of credit facility, maximum borrowing capacity | $ 150,000,000 | |||
Line of credit facility, unused capacity, commitment fee percentage (in percent) | 0.25% | |||
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 | |||
Interest rate swaps | ||||
Line of Credit Facility [Line Items] | ||||
Notional amount | $ 50,000,000 | $ 25,000,000 | ||
Average fixed rate | 0.90% | 1.70% | ||
Delayed start interest rate swaps | ||||
Line of Credit Facility [Line Items] | ||||
Notional amount | $ 50,000,000 | $ 75,000,000 | ||
Average fixed rate | 1.60% | 1.20% | ||
US Dollar | Base Rate | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate (in percent) | 0% | |||
US Dollar | SOFR | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate (in percent) | 2.05% | |||
Canadian Dollar | Base Rate | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate (in percent) | 0% | |||
Canadian Dollar | SOFR | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate (in percent) | 2.05% |
Fair Value Disclosure (Details)
Fair Value Disclosure (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |||
Transfer into Level 3 related to assets held for sale | $ 0 | $ 3.4 | |
Transfer out of Level 3 related to assets held for sale | $ 0 | $ 3.4 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Foreign currency exchange contracts | ||
Derivative [Line Items] | ||
Notional amount | $ 11.3 | $ 15.1 |
Fair value of foreign currency exchange contracts | 0.1 | 0.1 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | 50 | 25 |
Interest rate swap agreements receivable | $ 5.4 | |
Interest rate swap agreement net payable | $ 0.9 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Schedule of Interest Rate Derivatives) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | $ 50 | $ 25 |
Average Fixed Rate | 0.90% | 1.70% |
Delayed start interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | $ 50 | $ 75 |
Average Fixed Rate | 1.60% | 1.20% |
Derivative Financial Instrume_5
Derivative Financial Instruments (Fair Value of Derivative Instruments as Recorded in Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Asset Derivatives | ||
Total derivatives, asset derivatives | $ 5,550 | $ 73 |
Liability Derivatives | ||
Total derivatives, liability derivatives | 101 | 912 |
Prepaid expenses and other current assets | ||
Asset Derivatives | ||
Interest rate swap agreements, asset derivatives | 837 | 0 |
Foreign currency exchange contracts, asset derivatives | 174 | 73 |
Other current liabilities | ||
Liability Derivatives | ||
Interest rate swap agreements, liability derivatives | 0 | 216 |
Foreign currency exchange contracts, liability derivatives | 101 | 41 |
Other non-current assets | ||
Asset Derivatives | ||
Interest rate swap agreements, asset derivatives | 4,539 | 0 |
Other long-term liabilities | ||
Liability Derivatives | ||
Interest rate swap agreements, liability derivatives | $ 0 | $ 655 |
Leasing Arrangements (Narrative
Leasing Arrangements (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |||
Lease cost for operating leases | $ 7.8 | ||
Variable lease costs | 357.6 | ||
Short-term lease costs | $ 0.8 | ||
Weighted average remaining lease term | 9 years 8 months 12 days | ||
Weighted average discount rate | 4.80% | ||
Rental expense for all operating leases | $ 9 | $ 6.2 | |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease terms | 1 month | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease terms | 12 years |
Leasing Arrangements (Supplemen
Leasing Arrangements (Supplemental Cash Flow and Non-cash Information) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Lessee Disclosure [Abstract] | |
Cash paid for amounts included in the measurement of lease liabilities – operating cash flows from leases | $ 7,750 |
Right-of-use assets obtained in exchange for lease obligations – non-cash activity | $ 5,430 |
Leasing Arrangements (Undiscoun
Leasing Arrangements (Undiscounted Future Lease Payments for Operating Leases) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jan. 01, 2022 |
Undiscounted Future Operating Lease Payments | ||
2023 | $ 8,265 | |
2024 | 8,010 | |
2025 | 6,235 | |
2026 | 5,701 | |
2027 | 5,509 | |
Thereafter | 33,232 | |
Total lease payments | 66,952 | |
Less: impact of discounting | 14,276 | |
Present value of lease payments | $ 52,676 | $ 52,500 |
Leasing Arrangements (Future Mi
Leasing Arrangements (Future Minimum Operating Lease Payments) (Details) $ in Thousands | Dec. 31, 2021 USD ($) |
Lessee Disclosure [Abstract] | |
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_3
Stockholders' Equity and Earnings Per Share (Narrative) (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 USD ($) vote shares | Dec. 31, 2021 shares | Dec. 31, 2020 shares | Feb. 22, 2022 shares | |
Class of Stock [Line Items] | ||||
Shares repurchased (in shares) | shares | 261,049 | 0 | 0 | |
Shares repurchase price | $ | $ 2,979 | |||
Class A Common Stock | ||||
Class of Stock [Line Items] | ||||
Number of votes per share | vote | 1 | |||
Approved repurchase amount (up to) | shares | 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, 2022 $ / shares shares | Dec. 31, 2021 $ / shares shares | |
Class of Stock [Line Items] | ||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 |
Preferred stock authorized (in shares) | 5,000 | 5,000 |
Preferred stock outstanding (in shares) | 0 | 0 |
Class A Common Stock | ||
Class of Stock [Line Items] | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 70,000 | 70,000 |
Common stock issued (in shares) | 10,663 | 10,267 |
Treasury Stock (in shares) | 626 | 365 |
Common stock issued during period (in shares) | 240 | 216 |
Class B Common Stock | ||
Class of Stock [Line Items] | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 |
Common stock, convertible conversion ratio | 1 | 1 |
Common stock authorized (in shares) | 30,000 | 30,000 |
Common stock issued (in shares) | 3,844 | 4,000 |
Class B Common converted to Class A Common (in shares) | 156 | 45 |
Stockholders' Equity and Earn_5
Stockholders' Equity and Earnings Per Share (Reclassification out of AOCI) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 102,279 | $ 80,105 | $ 36,266 |
Other comprehensive income (loss) | (359) | 3,207 | (770) |
Reclassification adjustment to net income (loss) | 2,596 | 1,211 | 59 |
Tax effects | 88 | (1,185) | (633) |
Ending balance | 124,534 | 102,279 | 80,105 |
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (14,243) | (17,476) | (16,132) |
Ending balance | (11,918) | (14,243) | (17,476) |
Foreign Currency | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (9,877) | (9,775) | (8,221) |
Other comprehensive income (loss) | (865) | (181) | (896) |
Reclassification adjustment to net income (loss) | 1,267 | 0 | 0 |
Tax effects | 551 | 79 | (658) |
Ending balance | (8,924) | (9,877) | (9,775) |
Deferred Gain (Loss) on Cash Flow Hedging | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (638) | (1,344) | (341) |
Other comprehensive income (loss) | 5,950 | 418 | (718) |
Reclassification adjustment to net income (loss) | 478 | 557 | (642) |
Tax effects | (1,632) | (269) | 357 |
Ending balance | 4,158 | (638) | (1,344) |
Pension Plan Adjustment | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (3,728) | (6,357) | (7,570) |
Other comprehensive income (loss) | (5,444) | 2,970 | 844 |
Reclassification adjustment to net income (loss) | 851 | 654 | 701 |
Tax effects | 1,169 | (995) | (332) |
Ending balance | $ (7,152) | $ (3,728) | $ (6,357) |
Stockholders' Equity and Earn_6
Stockholders' Equity and Earnings Per Share (Weighted Average Number of Shares Outstanding Reconciliation) (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | |||
Basic weighted average shares outstanding (in shares) | 13,970 | 13,880 | 13,657 |
Dilutive effect of share-based compensation awards (in shares) | 26 | 50 | 55 |
Diluted weighted average shares outstanding (in shares) | 13,996 | 13,930 | 13,712 |
Basic earnings (loss) per share: | |||
Continuing operations (in dollars per share) | $ 1.81 | $ 1.54 | $ 1.76 |
Discontinued operations (in dollars per share) | 0 | 0 | 1.62 |
Basic earnings (loss) per share (in dollars per share) | 1.81 | 1.54 | 3.39 |
Diluted earnings (loss) per share: | |||
Continuing operations (in dollars per share) | 1.81 | 1.53 | 1.76 |
Discontinued operations (in dollars per share) | 0 | 0 | 1.62 |
Diluted earnings (loss) per share (in dollars per share) | $ 1.81 | $ 1.53 | $ 3.37 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Sales Revenue, Net | Customer Concentration Risk | Wal-Mart | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 26% | 28% | 35% |
Sales Revenue, Net | Customer Concentration Risk | Amazon | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 23% | 22% | 16% |
Sales Revenue, Net | Customer Concentration Risk | Five largest customers | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 61% | 61% | 64% |
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 |
Revenue (Disaggregation of Reve
Revenue (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 640,949 | $ 658,394 | $ 603,713 |
Consumer products | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 573,898 | 612,795 | 568,685 |
Commercial products | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 61,455 | 40,978 | 30,066 |
Licensing | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 5,596 | $ 4,621 | $ 4,962 |
Contingencies (Details)
Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Loss Contingencies [Line Items] | ||
Accrual for environmental investigation and remediation activities | $ 3.2 | $ 3.4 |
Portion of loss contingency proceeds representing restricted cash | 1 | |
Asset associated with reimbursement of costs | $ 1.2 | |
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration] | Other current liabilities, Other long-term liabilities | Other current liabilities, Other long-term liabilities |
Minimum | ||
Loss Contingencies [Line Items] | ||
Estimate of additional expenses | $ 0 | |
Maximum | ||
Loss Contingencies [Line Items] | ||
Estimate of additional expenses | $ 1.5 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income (loss) from continuing operations before income taxes | |||
Domestic | $ 34,400 | $ 27,187 | $ 31,140 |
Foreign | (1,971) | 1,770 | 2,592 |
Income (loss) from continuing operations before income taxes | 32,429 | 28,957 | 33,732 |
Current income tax expense (benefit): | |||
Federal | 6,297 | 2,520 | 7,006 |
State | 2,463 | 1,015 | 1,877 |
Foreign | (1,970) | 2,006 | 2,213 |
Total current | 6,790 | 5,541 | 11,096 |
Deferred income tax expense (benefit): | |||
Federal | (669) | 1,815 | (924) |
State | (153) | 556 | (325) |
Foreign | 1,194 | (261) | (182) |
Total deferred | 372 | 2,110 | (1,431) |
Income tax provision | $ 7,162 | $ 7,651 | $ 9,665 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Contingency [Line Items] | |||
Income tax refunds | $ 0.5 | $ 0 | $ 1 |
Cumulative unremitted earnings of foreign subsidiaries | 20.1 | ||
Unrecognized tax benefits, permanent items | 0.2 | 3.8 | 4 |
Unrecognized tax benefits, income tax penalties and interest expense | (1.5) | 1.1 | 0.7 |
Income tax examination, penalties and interest accrued | 0 | 1.9 | 0.7 |
Federal | |||
Income Tax Contingency [Line Items] | |||
Income tax payments | 5.3 | 6.4 | 0 |
Foreign and State | |||
Income Tax Contingency [Line Items] | |||
Income tax payments | $ 4 | $ 2.6 | $ 2.9 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income (loss) from continuing operations before income taxes | $ 32,429 | $ 28,957 | $ 33,732 |
Amount | |||
Statutory taxes at 21% | 6,810 | 6,081 | 7,092 |
State and local income taxes | 1,850 | 1,357 | 1,136 |
Valuation allowances | 642 | 297 | 614 |
Other non-deductible expenses | 384 | 579 | 415 |
Credits | (900) | (681) | (700) |
Effect of foreign operations | (526) | (399) | 120 |
Loss on Kitchen Collection dissolution | 0 | 0 | 616 |
Unrecognized tax benefits | (1,179) | 687 | 708 |
Other, net | 81 | (270) | (336) |
Income tax provision | $ 7,162 | $ 7,651 | $ 9,665 |
Percent | |||
Statutory taxes (in percent) | 21% | 21% | 21% |
State and local income taxes (in percent) | 5.70% | 4.70% | 3.40% |
Valuation allowances (in percent) | 2% | 1% | 1.80% |
Other non-deductible expenses (in percent) | 1.20% | 2% | 1.20% |
Credits (in percent) | (2.80%) | (2.40%) | (2.10%) |
Effect of foreign operations (in percent) | (1.60%) | (1.40%) | 0.40% |
Loss on Kitchen Collection dissolution (in percent) | 0% | 0% | 1.80% |
Unrecognized tax benefits (in percent) | (3.60%) | 2.40% | 2.10% |
Other, net (in percent) | 0.20% | (0.90%) | (1.00%) |
Income tax provision (in percent) | 22.10% | 26.40% | 28.70% |
Income Taxes (Summary of the To
Income Taxes (Summary of the Total Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets | ||
Tax carryforwards | $ 2,195 | $ 2,841 |
Inventory | 1,216 | 2,084 |
Accrued expenses and reserves | 3,846 | 7,338 |
Other employee benefits | 2,835 | 2,852 |
Other | 1,155 | 1,046 |
Total deferred tax assets | 11,247 | 16,161 |
Less: Valuation allowances | (2,153) | (2,095) |
Deferred tax assets, net of valuation allowance | 9,094 | 14,066 |
Deferred tax liabilities | ||
Inventory | 0 | 550 |
Accrued pension benefits | 3,130 | 4,119 |
Depreciation and amortization | 2,847 | 5,355 |
Total deferred tax liabilities | 5,977 | 10,024 |
Net deferred tax asset | $ 3,117 | $ 4,042 |
Income Taxes (Summary of Operat
Income Taxes (Summary of Operating Loss Carryforwards and Tax Credit Carryforwards) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Loss Carryforwards [Line Items] | ||
Net deferred tax asset | $ 2,195 | $ 2,841 |
Non-U.S. | ||
Operating Loss Carryforwards [Line Items] | ||
Net deferred tax asset | 1,923 | 2,841 |
Valuation allowance | $ 1,923 | $ 1,399 |
Income Taxes (Gross Unrecognize
Income Taxes (Gross Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Balance at beginning of period | $ 3,855 | $ 4,114 | $ 4,266 |
Additions (reductions) based on tax positions related to prior years | (3,476) | (110) | (116) |
Additions based on tax positions related to the current year | 71 | 40 | 130 |
Reductions for lapse of statute of limitations | (194) | 0 | (166) |
Reductions due to settlements with taxing authorities | 0 | (189) | 0 |
Balance at end of period | $ 256 | $ 3,855 | $ 4,114 |
Retirement Benefit Plans (Narra
Retirement Benefit Plans (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 USD ($) plan | Sep. 30, 2022 | Dec. 31, 2022 USD ($) plan | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Number of defined benefit pension plans | plan | 2 | 2 | |||
Termination and settlement period | 24 months | ||||
Discount rate for net periodic benefit (income) expense | 5.49% | 2.46% | |||
Discount rate for pension benefit obligation | 5.34% | 5.34% | |||
Expected long-term rate of return on assets used for the net periodic benefit (income) expense | 4% | 7.25% | |||
Defined contribution plan, total costs | $ 5,200 | $ 5,000 | $ 5,100 | ||
U.S. Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Discount rate for net periodic benefit (income) expense | 3.22% | 1.87% | 2.88% | ||
Discount rate for pension benefit obligation | 5.34% | 5.34% | 2.46% | 1.87% | |
Expected long-term rate of return on assets used for the net periodic benefit (income) expense | 6.44% | 7.25% | 7.50% | ||
Pension net periodic benefit (income) expense, expected rate of return assumptions | 4% | 4% | |||
Pre-tax pension settlement loss | $ 347 | $ 0 | $ 0 | ||
Non-U.S. Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Discount rate for net periodic benefit (income) expense | 2.90% | 2.38% | 2.96% | ||
Discount rate for pension benefit obligation | 5.15% | 5.15% | 2.90% | 2.38% | |
Expected long-term rate of return on assets used for the net periodic benefit (income) expense | 4.75% | 4.75% | 5% | ||
Pension net periodic benefit (income) expense, expected rate of return assumptions | 6% | 6% | |||
Pension Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Pre-tax pension settlement loss | $ 300 | ||||
Actuarial loss included in accumulated other comprehensive income loss expected to be recognized in net periodic pension (income) expense in next fiscal year | $ 400 | $ 400 |
Retirement Benefit Plans (Assum
Retirement Benefit Plans (Assumptions Used in Accounting for Defined Benefit Plans) (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Discount rate for pension benefit obligation | 5.34% | 5.34% | |||
Discount rate for net periodic benefit (income) expense | 5.49% | 2.46% | |||
Expected long-term rate of return on assets for net periodic pension (income) expense | 4% | 7.25% | |||
U.S. Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Discount rate for pension benefit obligation | 5.34% | 5.34% | 2.46% | 1.87% | |
Discount rate for net periodic benefit (income) expense | 3.22% | 1.87% | 2.88% | ||
Expected long-term rate of return on assets for net periodic pension (income) expense | 6.44% | 7.25% | 7.50% | ||
Non-U.S. Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Discount rate for pension benefit obligation | 5.15% | 5.15% | 2.90% | 2.38% | |
Discount rate for net periodic benefit (income) expense | 2.90% | 2.38% | 2.96% | ||
Expected long-term rate of return on assets for net periodic pension (income) expense | 4.75% | 4.75% | 5% |
Retirement Benefit Plans (Net P
Retirement Benefit Plans (Net Periodic Pension Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
U.S. Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | $ 478 | $ 338 | $ 527 |
Expected return on plan assets | (1,820) | (2,033) | (2,011) |
Amortization of actuarial loss (gain) | 520 | 591 | 631 |
Settlement loss | 347 | 0 | 0 |
Net periodic pension (income) expense | (475) | (1,104) | (853) |
Non-U.S. Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | 127 | 118 | 128 |
Expected return on plan assets | (261) | (260) | (253) |
Amortization of actuarial loss (gain) | (16) | 63 | 70 |
Net periodic pension (income) expense | $ (150) | $ (79) | $ (55) |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
U.S. Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current year actuarial loss (gain) | $ 5,558 | $ (2,228) | $ (1,080) |
Settlement loss | (347) | 0 | 0 |
Amortization of actuarial (loss) gain | (520) | (591) | (631) |
Total recognized in other comprehensive loss (income) | 4,691 | (2,819) | (1,711) |
Non-U.S. Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current year actuarial loss (gain) | (114) | (742) | 236 |
Amortization of actuarial (loss) gain | 16 | (63) | (70) |
Total recognized in other comprehensive loss (income) | $ (98) | $ (805) | $ 166 |
Retirement Benefit Plans (Oblig
Retirement Benefit Plans (Obligation and Funded Status) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
U.S. Plan | |||
Change in benefit obligation | |||
Projected benefit obligation at beginning of year | $ 17,004 | $ 18,978 | |
Interest cost | 478 | 338 | $ 527 |
Actuarial (gain) loss | (952) | (649) | |
Benefits paid | (1,497) | (1,663) | |
Settlements | (538) | 0 | |
Foreign currency exchange rate changes | 0 | 0 | |
Projected benefit obligation at end of year | 14,495 | 17,004 | 18,978 |
Accumulated benefit obligation at end of year | 14,495 | 17,004 | |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 33,019 | 31,070 | |
Actual return on plan assets | (4,690) | 3,612 | |
Benefits paid | (1,497) | (1,663) | |
Settlements | (538) | 0 | |
Other | 0 | 0 | |
Foreign currency exchange rate changes | 0 | 0 | |
Fair value of plan assets at end of year | 26,294 | 33,019 | 31,070 |
Funded status at end of year | 11,799 | 16,015 | |
Amounts recognized in the balance sheets consist of: | |||
Deferred costs | 11,799 | 16,015 | |
Components of accumulated other comprehensive loss consist of: | |||
Actuarial loss | (9,301) | (4,610) | |
Deferred taxes | 2,378 | 1,179 | |
Accumulated other comprehensive (loss) income | (6,923) | (3,431) | |
Non-U.S. Plan | |||
Change in benefit obligation | |||
Projected benefit obligation at beginning of year | 4,607 | 5,000 | |
Interest cost | 127 | 118 | 128 |
Actuarial (gain) loss | (979) | (309) | |
Benefits paid | (265) | (228) | |
Settlements | 0 | 0 | |
Foreign currency exchange rate changes | (252) | 26 | |
Projected benefit obligation at end of year | 3,238 | 4,607 | 5,000 |
Accumulated benefit obligation at end of year | 3,238 | 4,607 | |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 5,772 | 5,497 | |
Actual return on plan assets | (598) | 676 | |
Benefits paid | (265) | (228) | |
Settlements | 0 | 0 | |
Other | (178) | 0 | |
Foreign currency exchange rate changes | (330) | (173) | |
Fair value of plan assets at end of year | 4,401 | 5,772 | $ 5,497 |
Funded status at end of year | 1,163 | 1,165 | |
Amounts recognized in the balance sheets consist of: | |||
Deferred costs | 1,163 | 1,165 | |
Components of accumulated other comprehensive loss consist of: | |||
Actuarial loss | (321) | (419) | |
Deferred taxes | 92 | 122 | |
Accumulated other comprehensive (loss) income | $ (229) | $ (297) |
Retirement Benefit Plans (Sched
Retirement Benefit Plans (Schedule of Expected Benefit Payments) (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
U.S. Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | $ 3,795 |
2024 | 11,375 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
2028-2032 | 0 |
Total | 15,170 |
Non-U.S. Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | 223 |
2024 | 231 |
2025 | 238 |
2026 | 246 |
2027 | 257 |
2028-2032 | 1,226 |
Total | $ 2,421 |
Retirement Benefit Plans (Actua
Retirement Benefit Plans (Actual and Target Allocation Percentage for Pension Plan Assets) (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
U.S. Plan | U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 0% | 48.30% |
U.S. Plan | Non-U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 0% | 19.80% |
U.S. Plan | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 95.90% | 31.30% |
U.S. Plan | Money market | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 4.10% | 0.60% |
U.S. Plan | Minimum | U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 0% | |
U.S. Plan | Minimum | Non-U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 0% | |
U.S. Plan | Minimum | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 95% | |
U.S. Plan | Minimum | Money market | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 0% | |
U.S. Plan | Maximum | U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 5% | |
U.S. Plan | Maximum | Non-U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 5% | |
U.S. Plan | Maximum | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 100% | |
U.S. Plan | Maximum | Money market | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 5% | |
Non-U.S. Plan | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 19.40% | 27.50% |
Non-U.S. Plan | Money market | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 0% | 0% |
Non-U.S. Plan | Canadian equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 40% | 34.20% |
Non-U.S. Plan | Non-Canadian equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 40.60% | 38.30% |
Non-U.S. Plan | Minimum | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 30% | |
Non-U.S. Plan | Minimum | Money market | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 0% | |
Non-U.S. Plan | Minimum | Canadian equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 25% | |
Non-U.S. Plan | Minimum | Non-Canadian equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 25% | |
Non-U.S. Plan | Maximum | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 50% | |
Non-U.S. Plan | Maximum | Money market | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 5% | |
Non-U.S. Plan | Maximum | Canadian equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 35% | |
Non-U.S. Plan | Maximum | Non-Canadian equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 35% |
Retirement Benefit Plans (Fair
Retirement Benefit Plans (Fair Value Hierarchy) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 26,294 | $ 33,019 | $ 31,070 |
U.S. | U.S. equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 15,957 | |
U.S. | Non-U.S. equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 6,535 | |
U.S. | Fixed income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 25,213 | 10,330 | |
U.S. | Money market | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,081 | 197 | |
Non-U.S. Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4,401 | 5,772 | $ 5,497 |
Non-U.S. Plan | U.S. equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,060 | 1,325 | |
Non-U.S. Plan | Non-U.S. equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,488 | 2,857 | |
Non-U.S. Plan | Fixed income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 853 | 1,590 | |
Non-U.S. Plan | Money market | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 |
Data by Geographic Region (Deta
Data by Geographic Region (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from unaffiliated customers | $ 640,949 | $ 658,394 | $ 603,713 |
Property, plant and equipment, net | 27,830 | 30,485 | 23,490 |
U.S. | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from unaffiliated customers | 504,449 | 524,093 | 493,573 |
Property, plant and equipment, net | 24,207 | 26,604 | 18,021 |
Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from unaffiliated customers | 136,500 | 134,301 | 110,140 |
Property, plant and equipment, net | $ 3,623 | $ 3,881 | $ 5,469 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Allowance for doubtful accounts | |||
Valuation allowances and reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 1,036 | $ 1,144 | $ 1,023 |
Charged to Costs and Expenses | (79) | (179) | 412 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 0 | (71) | 291 |
Balance at End of Period | 957 | 1,036 | 1,144 |
Deferred tax valuation allowances | |||
Valuation allowances and reserves [Roll Forward] | |||
Balance at Beginning of Period | 2,095 | 2,102 | 7,625 |
Charged to Costs and Expenses | 568 | 170 | 614 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 510 | 177 | 6,137 |
Balance at End of Period | $ 2,153 | $ 2,095 | $ 2,102 |