Hamilton Beach Brands Holding (HBB) 10-Q 3 May 23 2023 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2023	Apr. 28, 2023
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	001-38214
Entity Registrant Name	HAMILTON BEACH BRANDS HOLDING COMPANY
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	31-1236686
Entity Address, Address Line One	4421 WATERFRONT DR.
Entity Address, City or Town	GLEN ALLEN
Entity Address, State or Province	VA
Entity Address, Postal Zip Code	23060
City Area Code	(804)
Local Phone Number	273-9777
Title of 12(b) Security	Class A Common Stock, Par Value $0.01 Per Share
Trading Symbol	HBB
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001709164
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false
Class A Common stock
Entity Information [Line Items]
Shares Outstanding (in shares)		10,467,586
Class B Common stock
Entity Information [Line Items]
Shares Outstanding (in shares)		3,628,766

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022
Current assets
Cash and cash equivalents	$ 2,218	$ 928	$ 1,022
Trade receivables, net	90,310	115,135	104,230
Inventory	131,542	156,038	195,555
Prepaid expenses and other current assets	11,618	12,643	25,639
Total current assets	235,688	284,744	326,446
Property, plant and equipment, net	27,216	27,830	29,555
Right-of-use lease assets	42,652	44,000	46,165
Goodwill	6,253	6,253	6,253
Other intangible assets, net	1,442	1,492	1,642
Deferred income taxes	3,047	3,117	3,221
Deferred costs	14,371	14,348	19,085
Other non-current assets	5,938	7,166	4,298
Total assets	336,607	388,950	436,665
Current liabilities
Accounts payable	51,261	61,759	103,367
Accrued compensation	13,464	11,310	13,709
Accrued product returns	5,551	6,474	5,094
Lease liabilities	5,918	5,875	5,105
Other current liabilities	12,072	16,150	16,229
Total current liabilities	88,266	101,568	143,504
Revolving credit agreements	79,333	110,895	119,302
Lease liabilities, non-current	45,317	46,801	49,673
Other long-term liabilities	5,262	5,152	11,028
Total liabilities	218,178	264,416	323,507
Stockholders' equity
Capital in excess of par value	65,803	65,008	62,349
Treasury stock	(8,939)	(8,939)	(5,960)
Retained earnings	74,001	80,238	66,534
Accumulated other comprehensive loss	(12,583)	(11,918)	(9,909)
Total stockholders' equity	118,429	124,534	113,158
Total liabilities and stockholders' equity	336,607	388,950	436,665
Class A Common stock
Stockholders' equity
Common stock	111	107	105
Class B Common stock
Stockholders' equity
Common stock	$ 36	$ 38	$ 39

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Revenue	$ 128,252	$ 146,351
Cost of sales	107,342	118,121
Gross profit	20,910	28,230
Selling, general and administrative expenses	25,919	15,433
Amortization of intangible assets	50	50
Operating profit (loss)	(5,059)	12,747
Interest expense, net	1,269	733
Other expense (income), net	16	1,466
Income (loss) before income taxes	(6,344)	10,548
Income tax expense (benefit)	(1,567)	3,375
Net income (loss)	$ (4,777)	$ 7,173
Basic earnings (loss) per share (in dollars per share)	$ (0.34)	$ 0.51
Diluted earnings (loss) per share (in dollars per share)	$ (0.34)	$ 0.51
Basic weighted average shares outstanding (in shares)	14,073	14,061
Diluted weighted average shares outstanding (in shares)	14,073	14,092

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (4,777)	$ 7,173
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment	69	(1,190)
(Loss) gain on long-term intra-entity foreign currency transactions	452	1,458
Cash flow hedging activity	(1,437)	2,053
Reclassification of foreign currency adjustments into earnings	0	2,085
Reclassification of hedging activities into earnings	187	(97)
Reclassification of pension adjustments into earnings	64	25
Total other comprehensive income (loss), net of tax	(665)	4,334
Comprehensive income (loss)	$ (5,442)	$ 11,507

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Operating activities
Net income (loss)	$ (4,777)	$ 7,173
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization	1,004	1,154
Deferred income taxes	0	(555)
Stock compensation expense	797	764
Brazil foreign currency loss	0	2,085
Other	(220)	121
Net changes in operating assets and liabilities:
Trade receivables	25,292	15,547
Inventory	25,030	(12,069)
Other assets	1,082	(8,924)
Accounts payable	(10,392)	(28,349)
Other liabilities	(2,942)	2,298
Net cash provided by (used for) operating activities	34,874	(20,755)
Investing activities
Expenditures for property, plant and equipment	(464)	(406)
Other	(150)	0
Net cash provided by (used for) investing activities	(614)	(406)
Financing activities
Net additions (reductions) to revolving credit agreements	(31,567)	22,406
Cash dividends paid	(1,460)	(1,392)
Net cash provided by (used for) financing activities	(33,027)	21,014
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	57	74
Cash, cash equivalents and restricted cash
Increase (decrease) for the period	1,290	(73)
Balance at the beginning of the period	1,905	2,150
Balance at the end of the period	3,195	2,077
Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents	2,218	1,022
Restricted cash included in prepaid expenses and other current assets	62	64
Restricted cash included in other non-current assets	915	991
Total cash, cash equivalents, and restricted cash	$ 3,195	$ 2,077

Consolidated Statements of Chan

Consolidated Statements of Changes in Equity - USD ($) $ in Thousands	Total	Capital in Excess of Par Value	Treasury Stock	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Class A Common stock Common Stock	Class B Common stock Common Stock
Beginning balance at Dec. 31, 2021	$ 102,279	$ 61,586	$ (5,960)	$ 60,753	$ (14,243)	$ 103	$ 40
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	7,173			7,173
Issuance of common stock, net of conversions	0	(1)				2	(1)
Share-based compensation expense	764	764
Cash dividends	(1,392)			(1,392)
Other comprehensive income (loss), net of tax	2,321				2,321
Reclassification adjustment to net income (loss)	2,013				2,013
Ending balance at Mar. 31, 2022	113,158	62,349	(5,960)	66,534	(9,909)	105	39
Beginning balance at Dec. 31, 2022	124,534	65,008	(8,939)	80,238	(11,918)	107	38
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(4,777)			(4,777)
Issuance of common stock, net of conversions	0	(2)				4	(2)
Share-based compensation expense	797	797
Cash dividends	(1,460)			(1,460)
Other comprehensive income (loss), net of tax	(916)				(916)
Reclassification adjustment to net income (loss)	251				251
Ending balance at Mar. 31, 2023	$ 118,429	$ 65,803	$ (8,939)	$ 74,001	$ (12,583)	$ 111	$ 36

Consolidated Statements of Ch_2

Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Stockholders' Equity [Abstract]
Cash dividends (in dollars per share)	$ 0.105	$ 0.10

Basis of Presentation and Recen

Basis of Presentation and Recently Issued Accounting Standards	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Recently Issued Accounting Standards	Basis of Presentation and Recently Issued Accounting Standards Basis of Presentation Hamilton Beach Brands Holding Company is a holding company and operates through its wholly-owned subsidiary, Hamilton Beach Brands, Inc. (“HBB”) (collectively “Hamilton Beach Holding” or the “Company”). HBB is a leading designer, marketer, and distributor of a wide range of branded small electric household and specialty housewares appliances, as well as commercial products for restaurants, fast food chains, bars, and hotels. HBB operates in the consumer, commercial and specialty small appliance markets. The financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments of a normal recurring nature considered necessary for a fair presentation have been included. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022. Operating results for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the remainder of the year due to the highly seasonal nature of the Company's primary markets. A majority of revenue and operating profit typically occurs in the second half of the calendar year when sales of products to retailers and consumers historically increase significantly for the fall holiday-selling season. Accounting Standards Adopted In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326)," which requires an entity to recognize and present financial assets at the net amount expected to be collected. This guidance replaces the current incurred loss impairment methodology for recognizing credit losses for financial assets and requires consideration of a broader range of reasonable and supportable information for estimating credit losses. The Company considers a combination of factors, such as historical losses, the aging of trade receivables, customers’ financial strength, credit standing and payment and default history in determining the appropriate estimate of expected credit losses. The Company adopted ASU 2016-13 and related amendments for the fiscal year beginning January 1, 2023 and the adoption of this guidance did not have a material impact on the Company’s financial condition, results of operations or cash flows. In September 2022, the FASB issued ASU 2022-04, “Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations.” The new accounting rules create certain disclosure requirements for a buyer in a supplier finance program. The new accounting rules require qualitative and quantitative disclosures including key terms of the program, balance sheet presentation of related amounts, and the obligation amount the buyer has confirmed as valid to the finance provider, including a rollforward of the obligation. Only the amount of the obligation outstanding is required to be disclosed in interim periods. The accounting rules do not impact the recognition, measurement, or financial statement presentation of supplier finance program obligations. The Company adopted this guidance in the first quarter of 2023. The new accounting rules did not have an impact on our financial condition, results of operations or cash flows. The Company included a new disclosure in accordance with the new accounting rules. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)," which requires an entity to recognize assets and liabilities for the rights and obligations created by leased assets. The Company previously qualified as an emerging growth company and elected to use the extended transition period for complying with new and revised financial accounting standards. The amendments were effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. On January 1, 2022, the Company adopted Topic 842. The impacts of the adoption were reflected in the Annual Report on Form 10-K for the year ended December 31, 2022. The Company lost the emerging growth company status as of December 31, 2022, the last day of the fiscal year following the fifth anniversary of our spin-off from NACCO Industries, Inc. The Consolidated Balance Sheet as of March 31, 2022 and the Consolidated Statement of Cash Flows for the three months ended March 31, 2022 have been revised to reflect the Company's adoption of Topic 842 on January 1, 2022. U.S. Pension Plan Termination In the second quarter of 2022, the Company began the process of terminating its U.S. defined benefit pension plan (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. The Plan continues to be overfunded and t he Company expects that there will be no further required minimum contributions to the Plan. We currently expect that all surplus assets remaining after the Plan termination will be transferred to a qualified replacement plan. The deferred loss within Accumulated Other Comprehensive Income will be fully recognized when the plan is terminated or as settlements occur, which would trigger accelerated recognition. Accounts payable - Supplier Finance Program

Transfer of Financial Assets

Transfer of Financial Assets	3 Months Ended
	Mar. 31, 2023
Transfers and Servicing [Abstract]
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 $29.7 million and $27.6 million of trade receivables during the three months ending March 31, 2023 and March 31, 2022, respectively, and $118.5 million during the year ending December 31, 2022. The loss incurred on sold receivables in the consolidated results of operations for the three months ended March 31, 2023 and 2022 was not material. The Company does not carry any servicing assets or liabilities. Cash proceeds from this arrangement are reflected as operating activities in the Consolidated Statements of Cash Flows.

Fair Value Disclosure

Fair Value Disclosure	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Fair Value Disclosure	Fair Value Disclosure The following table presents the Company's assets and liabilities accounted for at fair value on a recurring basis: Description Balance Sheet Location MARCH 31 DECEMBER 31 MARCH 31 Assets: Interest rate swap agreements Current Prepaid expenses and other current assets $ 1,064 $ 837 $ 400 Long-term Other non-current assets 3,168 4,539 1,656 Foreign currency exchange contracts Current Prepaid expenses and other current assets 49 174 — $ 4,281 $ 5,550 $ 2,056 Liabilities: Interest rate swap agreements Current Other current liabilities $ — $ — $ — Long-term Other long-term liabilities — — — Foreign currency exchange contracts Current Other current liabilities 357 101 383 $ 357 $ 101 $ 383 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 value of the revolving credit agreement, including book overdrafts, which approximate book value, was determined using current rates offered for similar obligations taking into account subsidiary credit risk, which is Level 2 as defined in the fair value hierarchy. There were no transfers into or out of Levels 1, 2, or 3 during the three months ended March 31, 2023.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Stockholders' Equity	Stockholders' Equity Capital Stock The following table sets forth the Company's authorized capital stock information: MARCH 31 DECEMBER 31 MARCH 31 Preferred stock, par value $0.01 per share Preferred stock authorized 5,000 5,000 5,000 Preferred stock outstanding — — — Class A Common stock, par value $0.01 per share Class A Common authorized 70,000 70,000 70,000 Class A Common issued (1)(2) 11,070 10,663 10,566 Treasury Stock 626 626 365 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 30,000 Class B Common issued (1) 3,629 3,844 3,869 (1) Class B Common converted to Class A Common were 215 and 131 shares during the three months ending March 31, 2023 and 2022, respectively. (2) The Company issued Class A Common of 192 and 168 shares during the three months ending March 31, 2023 and 2022, respectively. 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. There were no share repurchases during the three months ended March 31, 2023 or 2022. During the year ended December 31, 2022, the Company repurchased 261,049 shares for an aggregate purchase price of $3.0 million. Accumulated Other Comprehensive Loss: The following table summarizes changes in accumulated other comprehensive loss by component and related tax effects for periods shown: Foreign Currency Deferred Gain (Loss) on Cash Flow Hedging Pension Plan Adjustment Total Balance, January 1, 2023 $ (8,924) $ 4,158 $ (7,152) $ (11,918) Other comprehensive income (loss) 715 (1,881) — (1,166) Reclassification adjustment to net income (loss) — 252 87 339 Tax effects (194) 379 (23) 162 Balance, March 31, 2023 $ (8,403) $ 2,908 $ (7,088) $ (12,583) Balance, January 1, 2022 $ (9,877) $ (638) $ (3,728) $ (14,243) Other comprehensive income (loss) 359 2,691 — 3,050 Reclassification adjustment to net income (loss) 1,267 (126) 50 1,191 Tax effects 727 (609) (25) 93 Balance, March 31, 2022 $ (7,524) $ 1,318 $ (3,703) $ (9,909)

Revenue

Revenue	3 Months Ended
	Mar. 31, 2023
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 sets forth Company's revenue on a disaggregated basis for the three months ended March 31: THREE MONTHS ENDED 2023 2022 Type of good or service: Consumer products $ 113,432 $ 129,760 Commercial products 13,404 15,080 Licensing 1,416 1,511 Total revenues $ 128,252 $ 146,351

Contingencies

Contingencies	3 Months Ended
	Mar. 31, 2023
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. Environmental matters HBB is investigating or remediating historical environmental contamination at some current and former sites operated by HBB or by businesses it acquired. Based on the current stage of the investigation or remediation at each known site, HBB estimates the total investigation and remediation costs and the period of assessment and remediation activity required for each site. The estimate of future investigation and remediation costs is primarily based on variables associated with site clean-up, including, but not limited to, physical characteristics of the site, the nature and extent of the contamination and applicable regulatory programs and remediation standards. No assessment can fully characterize all subsurface conditions at a site. There is no assurance that additional assessment and remediation efforts will not result in adjustments to estimated remediation costs or the time frame for remediation at these sites. HBB's estimates of investigation and remediation costs may change if it discovers contamination at additional sites or additional contamination at known sites, if the effectiveness of its current remediation efforts change, if applicable federal or state regulations change or if HBB's estimate of the time required to remediate the sites changes. HBB's revised estimates may differ materially from original estimates. At March 31, 2023, December 31, 2022, and March 31, 2022, HBB had accrued undiscounted obligations of $3.3 million, $3.2 million and $3.4 million respectively, for environmental investigation and remediation activities. HBB estimates that it is reasonably possible that it may incur additional expenses in the range of zero to $1.5 million related to the environmental investigation and remediation at these sites. As of March 31, 2023, HBB has $1.0 million, classified as restricted cash, associated with reimbursement of environmental investigation and remediation costs from a responsible party in exchange for release from all future obligations for one site. Additionally, HBB has a $1.2 million asset associated with the reimbursement of costs associated with two sites.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company's provision for income taxes for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items, if any, that arise during the period. Each quarter, the Company updates its estimate of the annual effective tax rate, and if the estimated annual effective tax rate changes, the Company makes a cumulative adjustment in such period. The effective tax rate on loss was 24.7% for the three months ended March 31, 2023, and 32.0% on income for the three months ended March 31, 2022. The effective tax rate for the three months ended March 31, 2022 was unfavorably impacted by interest and penalties on unrecognized tax benefits and a valuation allowance on certain foreign deferred tax assets related to the Brazil liquidation as discrete expense items that did not recur in 2023.

Basis of Presentation and Rec_2

Basis of Presentation and Recently Issued Accounting Standards (Policies)	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation Hamilton Beach Brands Holding Company is a holding company and operates through its wholly-owned subsidiary, Hamilton Beach Brands, Inc. (“HBB”) (collectively “Hamilton Beach Holding” or the “Company”). HBB is a leading designer, marketer, and distributor of a wide range of branded small electric household and specialty housewares appliances, as well as commercial products for restaurants, fast food chains, bars, and hotels. HBB operates in the consumer, commercial and specialty small appliance markets. The financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments of a normal recurring nature considered necessary for a fair presentation have been included. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022. Operating results for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the remainder of the year due to the highly seasonal nature of the Company's primary markets. A majority of revenue and operating profit typically occurs in the second half of the calendar year when sales of products to retailers and consumers historically increase significantly for the fall holiday-selling season.
Accounting Standards Adopted	Accounting Standards Adopted In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326)," which requires an entity to recognize and present financial assets at the net amount expected to be collected. This guidance replaces the current incurred loss impairment methodology for recognizing credit losses for financial assets and requires consideration of a broader range of reasonable and supportable information for estimating credit losses. The Company considers a combination of factors, such as historical losses, the aging of trade receivables, customers’ financial strength, credit standing and payment and default history in determining the appropriate estimate of expected credit losses. The Company adopted ASU 2016-13 and related amendments for the fiscal year beginning January 1, 2023 and the adoption of this guidance did not have a material impact on the Company’s financial condition, results of operations or cash flows. In September 2022, the FASB issued ASU 2022-04, “Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations.” The new accounting rules create certain disclosure requirements for a buyer in a supplier finance program. The new accounting rules require qualitative and quantitative disclosures including key terms of the program, balance sheet presentation of related amounts, and the obligation amount the buyer has confirmed as valid to the finance provider, including a rollforward of the obligation. Only the amount of the obligation outstanding is required to be disclosed in interim periods. The accounting rules do not impact the recognition, measurement, or financial statement presentation of supplier finance program obligations. The Company adopted this guidance in the first quarter of 2023. The new accounting rules did not have an impact on our financial condition, results of operations or cash flows. The Company included a new disclosure in accordance with the new accounting rules. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)," which requires an entity to recognize assets and liabilities for the rights and obligations created by leased assets. The Company previously qualified as an emerging growth company and elected to use the extended transition period for complying with new and revised financial accounting standards. The amendments were effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. On January 1, 2022, the Company adopted Topic 842. The impacts of the adoption were reflected in the Annual Report on Form 10-K for the year ended December 31, 2022. The Company lost the emerging growth company status as of December 31, 2022, the last day of the fiscal year following the fifth anniversary of our spin-off from NACCO Industries, Inc. The Consolidated Balance Sheet as of March 31, 2022 and the Consolidated Statement of Cash Flows for the three months ended March 31, 2022 have been revised to reflect the Company's adoption of Topic 842 on January 1, 2022.

Fair Value Disclosure (Tables)

Fair Value Disclosure (Tables)	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	The following table presents the Company's assets and liabilities accounted for at fair value on a recurring basis: Description Balance Sheet Location MARCH 31 DECEMBER 31 MARCH 31 Assets: Interest rate swap agreements Current Prepaid expenses and other current assets $ 1,064 $ 837 $ 400 Long-term Other non-current assets 3,168 4,539 1,656 Foreign currency exchange contracts Current Prepaid expenses and other current assets 49 174 — $ 4,281 $ 5,550 $ 2,056 Liabilities: Interest rate swap agreements Current Other current liabilities $ — $ — $ — Long-term Other long-term liabilities — — — Foreign currency exchange contracts Current Other current liabilities 357 101 383 $ 357 $ 101 $ 383

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Schedule of Capital Stock	The following table sets forth the Company's authorized capital stock information: MARCH 31 DECEMBER 31 MARCH 31 Preferred stock, par value $0.01 per share Preferred stock authorized 5,000 5,000 5,000 Preferred stock outstanding — — — Class A Common stock, par value $0.01 per share Class A Common authorized 70,000 70,000 70,000 Class A Common issued (1)(2) 11,070 10,663 10,566 Treasury Stock 626 626 365 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 30,000 Class B Common issued (1) 3,629 3,844 3,869 (1) Class B Common converted to Class A Common were 215 and 131 shares during the three months ending March 31, 2023 and 2022, respectively.
Schedule of Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss: The following table summarizes changes in accumulated other comprehensive loss by component and related tax effects for periods shown: Foreign Currency Deferred Gain (Loss) on Cash Flow Hedging Pension Plan Adjustment Total Balance, January 1, 2023 $ (8,924) $ 4,158 $ (7,152) $ (11,918) Other comprehensive income (loss) 715 (1,881) — (1,166) Reclassification adjustment to net income (loss) — 252 87 339 Tax effects (194) 379 (23) 162 Balance, March 31, 2023 $ (8,403) $ 2,908 $ (7,088) $ (12,583) Balance, January 1, 2022 $ (9,877) $ (638) $ (3,728) $ (14,243) Other comprehensive income (loss) 359 2,691 — 3,050 Reclassification adjustment to net income (loss) 1,267 (126) 50 1,191 Tax effects 727 (609) (25) 93 Balance, March 31, 2022 $ (7,524) $ 1,318 $ (3,703) $ (9,909)

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregation of Revenue	The following table sets forth Company's revenue on a disaggregated basis for the three months ended March 31: THREE MONTHS ENDED 2023 2022 Type of good or service: Consumer products $ 113,432 $ 129,760 Commercial products 13,404 15,080 Licensing 1,416 1,511 Total revenues $ 128,252 $ 146,351

Basis of Presentation and Rec_3

Basis of Presentation and Recently Issued Accounting Standards (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022
Defined Benefit Plan Disclosure [Line Items]
Outstanding payment obligations	$ 30.4	$ 23.3	$ 40.2
United States | Pension Plan
Defined Benefit Plan Disclosure [Line Items]
Maximum termination and settlement period	24 months

Transfer of Financial Assets (D

Transfer of Financial Assets (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Transfers and Servicing [Abstract]
Accounts receivable derecognized	$ 29.7	$ 27.6	$ 118.5

Fair Value Disclosure (Details)

Fair Value Disclosure (Details) - Fair value measurements, recurring - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022
Assets:
Assets at fair value	$ 4,281	$ 5,550	$ 2,056
Liabilities:
Liabilities at fair value	357	101	383
Prepaid expenses and other current assets
Assets:
Interest rate swap agreements	1,064	837	400
Foreign currency exchange contracts	49	174	0
Other non-current assets
Assets:
Interest rate swap agreements	3,168	4,539	1,656
Other current liabilities
Liabilities:
Interest rate swap agreements	0	0	0
Foreign currency exchange contracts	357	101	383
Other long-term liabilities
Liabilities:
Interest rate swap agreements	$ 0	$ 0	$ 0

Stockholders' Equity - Schedule

Stockholders' Equity - Schedule of Capital Stock (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2023 $ / shares shares	Mar. 31, 2022 $ / shares shares	Dec. 31, 2022 $ / shares shares
Class of Stock [Line Items]
Preferred stock, par value (in dollars per share) | $ / shares	$ 0.01	$ 0.01	$ 0.01
Preferred stock authorized (in shares)	5,000,000	5,000,000	5,000,000
Preferred stock outstanding (in shares)	0	0	0
Treasury Stock (in shares)	0	0	261,049
Class A Common stock
Class of Stock [Line Items]
Common stock, par value (in dollars per share) | $ / shares	$ 0.01	$ 0.01	$ 0.01
Common stock authorized (in shares)	70,000,000	70,000,000	70,000,000
Common stock issued (in shares)	11,070,000	10,566,000	10,663,000
Treasury Stock (in shares)	626,000	365,000	626,000
Class A Common shares issued (in shares)	192,000	168,000
Class B Common stock
Class of Stock [Line Items]
Common stock, par value (in dollars per share) | $ / shares	$ 0.01	$ 0.01	$ 0.01
Common stock, convertible conversion ratio	1	1	1
Common stock authorized (in shares)	30,000,000	30,000,000	30,000,000
Common stock issued (in shares)	3,629,000	3,869,000	3,844,000
Class B Common converted to Class A Common (in shares)	215,000	131,000

Stockholders' Equity - Stock Re

Stockholders' Equity - Stock Repurchase Program (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Feb. 28, 2022
Class of Stock [Line Items]
Treasury stock, shares, acquired	0	0	261,049
Treasury stock, value, acquired, cost method			$ 3
Shares Outstanding Class A
Class of Stock [Line Items]
Stock repurchase program, number of shares authorized to be repurchased				25,000,000
Treasury stock, shares, acquired	626,000	365,000	626,000

Stockholders' Equity - Accumula

Stockholders' Equity - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 124,534	$ 102,279
Other comprehensive income (loss)	(1,166)	3,050
Reclassification adjustment to net income (loss)	339	1,191
Tax effects	162	93
Ending balance	118,429	113,158
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(11,918)	(14,243)
Ending balance	(12,583)	(9,909)
Foreign Currency
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(8,924)	(9,877)
Other comprehensive income (loss)	715	359
Reclassification adjustment to net income (loss)	0	1,267
Tax effects	(194)	727
Ending balance	(8,403)	(7,524)
Deferred Gain (Loss) on Cash Flow Hedging
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	4,158	(638)
Other comprehensive income (loss)	(1,881)	2,691
Reclassification adjustment to net income (loss)	252	(126)
Tax effects	379	(609)
Ending balance	2,908	1,318
Pension Plan Adjustment
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(7,152)	(3,728)
Other comprehensive income (loss)	0	0
Reclassification adjustment to net income (loss)	87	50
Tax effects	(23)	(25)
Ending balance	$ (7,088)	$ (3,703)

Revenue (Details)

Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Revenue	$ 128,252	$ 146,351
Consumer products
Disaggregation of Revenue [Line Items]
Revenue	113,432	129,760
Commercial products
Disaggregation of Revenue [Line Items]
Revenue	$ 13,404	15,080
Commercial products | Geographic Concentration Risk | Revenue from Contract with Customer Benchmark | United States
Disaggregation of Revenue [Line Items]
Concentration risk, percentage	50%
Commercial products | Geographic Concentration Risk | Revenue from Contract with Customer Benchmark | Non-US
Disaggregation of Revenue [Line Items]
Concentration risk, percentage	50%
Licensing
Disaggregation of Revenue [Line Items]
Revenue	$ 1,416	$ 1,511
Minimum | Other products
Disaggregation of Revenue [Line Items]
Warranty term	1 year
Maximum | Electric appliances
Disaggregation of Revenue [Line Items]
Warranty term	10 years
Maximum | Other products
Disaggregation of Revenue [Line Items]
Warranty term	3 years
Maximum | Consumer products
Disaggregation of Revenue [Line Items]
Revenue contract duration	1 year
Maximum | Commercial products
Disaggregation of Revenue [Line Items]
Revenue contract duration	1 year

Contingencies (Details)

Contingencies (Details) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($) numberOfSites	Dec. 31, 2022 USD ($)	Mar. 31, 2022 USD ($)
Loss Contingencies [Line Items]
Accrual for environmental investigation and remediation activities	$ 3.3	$ 3.2	$ 3.4
Portion of loss contingency proceeds representing restricted cash	1
Asset associated with reimbursement of costs	$ 1.2
Loss Contingency, Number Of Sites Associated With Cost Reimbursement | numberOfSites	2
Minimum
Loss Contingencies [Line Items]
Estimate of additional expenses	$ 0
Maximum
Loss Contingencies [Line Items]
Estimate of additional expenses	$ 1.5

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Effective income tax rate reconciliation, percent	24.70%	32%