Hamilton Beach Brands Holding (HBB) 10-Q 7 May 24 2024 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2024	May 03, 2024
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
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	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false
Class A Common stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		10,534,277
Class B Common stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		3,611,746

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023
Current assets
Cash and cash equivalents	$ 26,279	$ 15,370	$ 2,218
Trade receivables, net	89,596	135,434	90,310
Inventory	133,523	126,554	131,542
Prepaid expenses and other current assets	12,893	9,457	11,618
Total current assets	262,291	286,815	235,688
Property, plant and equipment, net	36,851	27,401	27,216
Right-of-use lease assets	37,848	39,423	42,652
Goodwill	6,253	6,253	6,253
Other intangible assets, net	2,375	1,292	1,442
Deferred income taxes	2,410	2,581	3,047
Deferred costs	14,550	14,613	14,371
Other non-current assets	6,372	6,324	5,938
Total assets	368,950	384,702	336,607
Current liabilities
Accounts payable	96,579	99,704	51,261
Accrued compensation	5,701	14,948	13,464
Accrued product returns	6,135	6,232	5,551
Lease liabilities	6,086	6,155	5,918
Other current liabilities	11,693	12,549	12,072
Total current liabilities	126,194	139,588	88,266
Revolving credit agreements	50,000	50,000	79,333
Lease liabilities, non-current	41,009	41,937	45,317
Other long-term liabilities	6,340	5,910	5,262
Total liabilities	223,543	237,435	218,178
Stockholders’ equity
Preferred stock, par value $0.01 per share	0	0	0
Capital in excess of par value	72,303	70,401	65,803
Treasury stock	(12,567)	(12,013)	(8,939)
Retained earnings	96,705	99,398	74,001
Accumulated other comprehensive loss	(11,184)	(10,667)	(12,583)
Total stockholders’ equity	145,407	147,267	118,429
Total liabilities and stockholders’ equity	368,950	384,702	336,607
Class A Common stock
Stockholders’ equity
Common stock	114	112	111
Class B Common stock
Stockholders’ equity
Common stock	$ 36	$ 36	$ 36

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Statement [Abstract]
Revenue	$ 128,277	$ 128,252
Cost of sales	98,223	107,342
Gross profit	30,054	20,910
Selling, general and administrative expenses	30,947	25,919
Amortization of intangible assets	50	50
Operating profit (loss)	(943)	(5,059)
Interest expense, net	156	1,269
Other expense (income), net	173	16
Income (loss) before income taxes	(1,272)	(6,344)
Income tax expense (benefit)	(110)	(1,567)
Net income (loss)	$ (1,162)	$ (4,777)
Basic earnings (loss) per share (in dollars per share)	$ (0.08)	$ (0.34)
Diluted earnings (loss) per share (in dollars per share)	$ (0.08)	$ (0.34)
Basic weighted average shares outstanding (in shares)	14,162	14,073
Diluted weighted average shares outstanding (in shares)	14,162	14,073

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (1,162)	$ (4,777)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment	(1,097)	69
(Loss) gain on long-term intra-entity foreign currency transactions	0	452
Cash flow hedging activity	37	(1,437)
Reclassification of hedging activities into earnings	472	187
Reclassification of pension adjustments into earnings	71	64
Total other comprehensive income (loss), net of tax	(517)	(665)
Comprehensive income (loss)	$ (1,679)	$ (5,442)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Operating activities
Net income (loss)	$ (1,162)	$ (4,777)
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization	1,188	1,004
Stock compensation expense	1,904	797
Other	1,255	(220)
Net changes in operating assets and liabilities:
Trade receivables	46,236	25,292
Inventory	(9,614)	25,030
Other assets	(3,074)	1,082
Accounts payable	(3,102)	(10,392)
Other liabilities	(13,930)	(2,942)
Net cash provided by (used for) operating activities	19,701	34,874
Investing activities
Expenditures for property, plant and equipment	(942)	(464)
Acquisition of business, net of cash acquired	(7,412)	0
Issuance of secured loan	(600)	0
Repayment of secured loan	2,205	0
Other	0	(150)
Net cash provided by (used for) investing activities	(6,749)	(614)
Financing activities
Net additions (reductions) to revolving credit agreements	0	(31,567)
Cash dividends paid	(1,531)	(1,460)
Purchase of treasury stock	(554)	0
Net cash provided by (used for) financing activities	(2,085)	(33,027)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(2)	57
Cash, cash equivalents and restricted cash
Increase (decrease) for the period	10,865	1,290
Balance at the beginning of the period	16,379	1,905
Balance at the end of the period	27,244	3,195
Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents	26,279	2,218
Restricted cash included in prepaid expenses and other current assets	51	62
Restricted cash included in other non-current assets	914	915
Total cash, cash equivalents and restricted cash	$ 27,244	$ 3,195

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN 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, 2022	$ 124,534	$ 107	$ 38	$ 65,008	$ (8,939)	$ 80,238	$ (11,918)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(4,777)					(4,777)
Issuance of common stock, net of conversions	0	4	(2)	(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	111	36	65,803	(8,939)	74,001	(12,583)
Beginning balance at Dec. 31, 2023	147,267	112	36	70,401	(12,013)	99,398	(10,667)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(1,162)					(1,162)
Purchase of treasury stock	(554)				(554)
Issuance of common stock, net of conversions	0	2		(2)
Share-based compensation expense	1,904			1,904
Cash dividends	(1,531)					(1,531)
Other comprehensive income (loss), net of tax	(1,060)						(1,060)
Reclassification adjustment to net income (loss)	543						543
Ending balance at Mar. 31, 2024	$ 145,407	$ 114	$ 36	$ 72,303	$ (12,567)	$ 96,705	$ (11,184)

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Stockholders' Equity [Abstract]
Cash dividends (in dollars per share)	$ 0.11	$ 0.105

Basis of Presentation and Recen

Basis of Presentation and Recently Issued Accounting Standards	3 Months Ended
	Mar. 31, 2024
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 Throughout this Quarterly Report on Form 10-Q and the notes to unaudited consolidated financial statements, references to “Hamilton Beach Holding”, “the Company”, “we”, “us” and “our” and similar references are to Hamilton Beach Brands Holding Company and its subsidiaries on a consolidated basis unless otherwise noted or as the context otherwise requires. Hamilton Beach Brands Holding Company is a holding company and operates through its indirect, wholly owned subsidiary, Hamilton Beach Brands, Inc., a Delaware corporation (“HBB”). HBB is the Company’s single reportable segment. We are 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, and are a provider of connected devices and software for healthcare management. 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, 2023. Operating results for the three months ended March 31, 2024 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 Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which updates reportable segment disclosure requirements on an annual and interim basis. The amendments are effective for the annual period ending December 31, 2024, and the interim periods thereafter. Early adoption is permitted. Updates should be applied retrospectively to all prior periods presented in the financial statements. Adoption of this ASU may result in additional disclosure, but it will not impact the Company’s consolidated financial position, results of operations or cash flows. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which enhances income tax disclosure requirements primarily involving more detailed disclosure for income taxes paid and the effective tax rate reconciliation. The amendments are effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied prospectively but retrospective application is permitted. Adoption of this ASU may result in additional disclosure, but it will not impact the Company’s consolidated financial position, results of operations or cash flows. U.S. Pension Plan Termination During 2022, the Board approved the termination of our U.S. defined benefit pension plan (the “Plan”) with an effective date of September 30, 2022. The termination process is still ongoing and is expected to be completed in 2024. 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 Company currently expects that all surplus assets remaining after the Plan termination will be transferred to a qualified replacement plan. The surplus assets as of December 31, 2023 were $12.2 million. The deferred loss of $6.6 million as of March 31, 2024 within Accumulated Other Comprehensive Income will be recognized fully when the plan is terminated or as settlements occur, which would trigger accelerated recognition. Accounts payable - Supplier Finance Program Accounts payable

Transfer of Financial Assets

Transfer of Financial Assets	3 Months Ended
	Mar. 31, 2024
Transfers and Servicing [Abstract]
Transfer of Financial Assets	Transfer of Financial Assets The Company has entered into an arrangement with a financial institution to sell certain U.S. trade receivables on a non-recourse basis. Under the terms of the agreement, the Company receives cash proceeds and retains no rights or interest and has no obligations with respect to the sold receivables. These transactions, which are accounted for as sold receivables, result in a reduction in trade receivables because the agreement transfers effective control over and risk related to the receivables to the buyer. Under this arrangement, the Company derecognized $30.1 million and $29.7 million of trade receivables during the three months ending March 31, 2024 and March 31, 2023, respectively, and $128.7 million during the year ending December 31, 2023. The loss incurred on sold receivables in the consolidated results of operations for the three months ended March 31, 2024 and 2023 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, 2024
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 $ 1,120 $ 511 $ 1,064 Long-term Other non-current assets 3,579 3,501 3,168 Foreign currency exchange contracts Current Prepaid expenses and other current assets — — 49 $ 4,699 $ 4,012 $ 4,281 Liabilities: Foreign currency exchange contracts Current Other current liabilities 607 538 357 $ 607 $ 538 $ 357 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 Secured Overnight Financing Rate (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. The Company also incorporates the effect of HBB 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 HBB’s $150.0 million senior secured floating-rate revolving credit facility (the “HBB Facility”), including book overdrafts, which approximate book value, was determined using current rates offered for similar obligations taking into account HBB’s 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, 2024.

Stockholders_ Equity

Stockholders’ Equity	3 Months Ended
	Mar. 31, 2024
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) 11,427 11,161 11,070 Treasury Stock (3) 907 877 626 Class B Common stock, par value $0.01 per share, convertible into Class A Common stock on a one-for-one basis Class B Common authorized 30,000 30,000 30,000 Class B Common issued (1) 3,612 3,616 3,629 (1) Class B Common converted to Class A Common were 4 and 215 shares during the three months ending March 31, 2024 and 2023, respectively. (2) The Company issued Class A Common of 262 and 192 shares during the three months ending March 31, 2024 and 2023, respectively. (3) On March 5, 2024, a total of 30 mandatory cashless-exercise-award shares of Class A Common were surrendered to the Company by the participants of our Executive Long-Term Equity Incentive Compensation Plan (the “Incentive Plan”) in order to satisfy the participants’ tax withholding obligations with respect to shares of Class A Common awarded under the Incentive Plan on March 5, 2024. Stock Repurchase Program: In November 2023, 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 January 1, 2024 and ending December 31, 2025. This program replaced the previous stock repurchase plan that started February 22, 2022 and ended December 31, 2023. There were no share repurchases during the three months ended March 31, 2024 or 2023. During the year ended December 31, 2023, the Company repurchased 250,772 shares for an aggregate purchase price of $3.1 million. As of March 31, 2024, the Company had $25.0 million remaining authorized for repurchase. 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, 2024 $ (6,412) $ 2,424 $ (6,679) $ (10,667) Other comprehensive income (loss) (1,097) 29 — (1,068) Reclassification adjustment to net income (loss) — 647 94 741 Tax effects — (167) (23) (190) Balance, March 31, 2024 $ (7,509) $ 2,933 $ (6,608) $ (11,184) 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)

Revenue

Revenue	3 Months Ended
	Mar. 31, 2024
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. The Company’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 The Company’s products are not sold with a general right of return. Subject to certain terms and conditions, however, the Company will agree to accept a portion of products sold that, based on historical experience, are estimated to be returned for reasons such as product failure and excess inventory stocked by the customer. 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 the Company 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 a 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 a Company 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 its customers for incentive offerings, special pricing agreements, price competition, promotions or other volume-based arrangements. The Company evaluated such agreements with its 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 the Company’s 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 the Company’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, the Company 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. The Company recognizes revenue at the later of when the subsequent sales occur or when the performance obligation is satisfied over time. Additionally, the Company enters into agreements which grant the right to use software for healthcare management. The Company receives a license payment which is recognized when the performance obligation is satisfied over time. Lease revenue The Company leases connected devices to specialty pharmacy networks and pharmaceutical companies and is accounted for under Accounting Standards Codification 842, Leases as operating leases. The following table sets forth Company’s revenue on a disaggregated basis for the three months ended March 31: THREE MONTHS ENDED 2024 2023 Type of good or service: Consumer products $ 112,750 $ 113,432 Commercial products 13,453 13,404 Licensing 1,615 1,416 Leasing 459 — Total revenues $ 128,277 $ 128,252

Contingencies

Contingencies	3 Months Ended
	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Contingencies The Company is 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 of such costs 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 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 and on the results of operations and cash flows for the period in which the ruling occurs, or in future periods. Environmental matters The Company is investigating or remediating historical environmental contamination at some current and former sites operated by the Company or by businesses it acquired. Based on the current stage of the investigation or remediation at each known site, the Company 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. The Company’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 the Company’s estimate of the time required to remediate the sites changes. The Company’s current estimates may differ materially from original estimates. As of March 31, 2024, December 31, 2023 and March 31, 2023, the Company had accrued undiscounted obligations of $3.3 million, $3.4 million and $3.3 million, respectively, for environmental investigation and remediation activities. The Company 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, 2024, the Company 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, the Company 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, 2024
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.

Acquisitions

Acquisitions	3 Months Ended
	Mar. 31, 2024
Business Combination and Asset Acquisition [Abstract]
Acquisitions	Acquisitions On February 2, 2024, we completed the acquisition of HealthBeacon, a medical technology firm and strategic partner of the Company, for €6.9 million (approximately $7.5 million). The transaction was funded with cash on hand. The acquisition of HealthBeacon was accounted for as a business combination using the acquisition method of accounting. The results of operations for HealthBeacon are included in the accompanying Consolidated Statements of Operations from the acquisition date (February 2, 2024) until March 31, 2024. HealthBeacon had $0.6 million in revenue and $1.1 million in operating loss that was included in our consolidated financial statements for the three months ended March 31, 2024. Pro forma financial information has not been presented, as revenue and expenses related to the acquisition do not have a material impact on the Company’s unaudited consolidated financial statements. The determination and allocation of purchase price consideration is based on preliminary estimates of fair value; such estimates and assumptions are subject to change within the measurement period (up to one year from the acquisition date). As of March 31, 2024, the purchase price allocation for HealthBeacon is preliminary as we assess and gather additional information regarding the fair value of the assets acquired and liabilities assumed as of the acquisition date, primarily in the relation to the valuations of property and equipment and intangible assets as well as certain working capital related accounts. These differences could have a material impact on our results of operations and financial position During the three months ended March 31, 2024, we incurred transaction costs of approximately $1.0 million, which are included in Selling, general, and administrative expenses. The following table presents the preliminary value of assets acquired and liabilities assumed and will be finalized pending completion of purchase accounting matters: Preliminary Fair Values as of Cash and cash equivalents $ 147 Current assets 1,452 Property, plant and equipment, net 7,449 Other intangible assets, net 1,133 Total assets acquired 10,181 Liabilities, current 2,006 Liabilities, non-current 616 Total liabilities acquired 2,622 Purchase Price $ 7,559

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net income (loss)	$ (1,162)	$ (4,777)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Basis of Presentation and Rec_2

Basis of Presentation and Recently Issued Accounting Standards (Policies)	3 Months Ended
	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation Throughout this Quarterly Report on Form 10-Q and the notes to unaudited consolidated financial statements, references to “Hamilton Beach Holding”, “the Company”, “we”, “us” and “our” and similar references are to Hamilton Beach Brands Holding Company and its subsidiaries on a consolidated basis unless otherwise noted or as the context otherwise requires. Hamilton Beach Brands Holding Company is a holding company and operates through its indirect, wholly owned subsidiary, Hamilton Beach Brands, Inc., a Delaware corporation (“HBB”). HBB is the Company’s single reportable segment. We are 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, and are a provider of connected devices and software for healthcare management. 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, 2023. Operating results for the three months ended March 31, 2024 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 Not Yet Adopted	Accounting Standards Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which updates reportable segment disclosure requirements on an annual and interim basis. The amendments are effective for the annual period ending December 31, 2024, and the interim periods thereafter. Early adoption is permitted. Updates should be applied retrospectively to all prior periods presented in the financial statements. Adoption of this ASU may result in additional disclosure, but it will not impact the Company’s consolidated financial position, results of operations or cash flows. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which enhances income tax disclosure requirements primarily involving more detailed disclosure for income taxes paid and the effective tax rate reconciliation. The amendments are effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied prospectively but retrospective application is permitted. Adoption of this ASU may result in additional disclosure, but it will not impact the Company’s consolidated financial position, results of operations or cash flows.
Accounts payable - Supplier Finance Program	Accounts payable - Supplier Finance Program

Fair Value Disclosure (Tables)

Fair Value Disclosure (Tables)	3 Months Ended
	Mar. 31, 2024
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 $ 1,120 $ 511 $ 1,064 Long-term Other non-current assets 3,579 3,501 3,168 Foreign currency exchange contracts Current Prepaid expenses and other current assets — — 49 $ 4,699 $ 4,012 $ 4,281 Liabilities: Foreign currency exchange contracts Current Other current liabilities 607 538 357 $ 607 $ 538 $ 357

Stockholders_ Equity (Tables)

Stockholders’ Equity (Tables)	3 Months Ended
	Mar. 31, 2024
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) 11,427 11,161 11,070 Treasury Stock (3) 907 877 626 Class B Common stock, par value $0.01 per share, convertible into Class A Common stock on a one-for-one basis Class B Common authorized 30,000 30,000 30,000 Class B Common issued (1) 3,612 3,616 3,629 (1) Class B Common converted to Class A Common were 4 and 215 shares during the three months ending March 31, 2024 and 2023, respectively. (2) The Company issued Class A Common of 262 and 192 shares during the three months ending March 31, 2024 and 2023, respectively. (3) On March 5, 2024, a total of 30 mandatory cashless-exercise-award shares of Class A Common were surrendered to the Company by the participants of our Executive Long-Term Equity Incentive Compensation Plan (the “Incentive Plan”) in order to satisfy the participants’ tax withholding obligations with respect to shares of Class A Common awarded under the Incentive Plan on March 5, 2024.
Schedule of 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, 2024 $ (6,412) $ 2,424 $ (6,679) $ (10,667) Other comprehensive income (loss) (1,097) 29 — (1,068) Reclassification adjustment to net income (loss) — 647 94 741 Tax effects — (167) (23) (190) Balance, March 31, 2024 $ (7,509) $ 2,933 $ (6,608) $ (11,184) 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)

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Mar. 31, 2024
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 2024 2023 Type of good or service: Consumer products $ 112,750 $ 113,432 Commercial products 13,453 13,404 Licensing 1,615 1,416 Leasing 459 — Total revenues $ 128,277 $ 128,252

Acquisitions (Tables)

Acquisitions (Tables)	3 Months Ended
	Mar. 31, 2024
Business Combination and Asset Acquisition [Abstract]
Schedule of Preliminary Assets Acquired and Liabilities Assumed	The following table presents the preliminary value of assets acquired and liabilities assumed and will be finalized pending completion of purchase accounting matters: Preliminary Fair Values as of Cash and cash equivalents $ 147 Current assets 1,452 Property, plant and equipment, net 7,449 Other intangible assets, net 1,133 Total assets acquired 10,181 Liabilities, current 2,006 Liabilities, non-current 616 Total liabilities acquired 2,622 Purchase Price $ 7,559

Basis of Presentation and Rec_3

Basis of Presentation and Recently Issued Accounting Standards (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Basis of Presentation and Policies [Line Items]
Surplus assets			$ 12.2
Deferred loss within Accumulated Other Comprehensive Income	$ 6.6
Limit on payment obligations	60
Outstanding payment obligations, current	$ 54.8	$ 30.4	$ 55
Supplier Finance Program, Obligation, Current, Statement of Financial Position [Extensible Enumeration]	Accounts payable	Accounts payable	Accounts payable
Supplier finance program, obligation, settlement	$ 46.1	$ 30.3	$ 48.9
Maximum
Basis of Presentation and Policies [Line Items]
Limit on payment obligations	$ 85

Transfer of Financial Assets (D

Transfer of Financial Assets (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Transfers and Servicing [Abstract]
Accounts receivable derecognized	$ 30.1	$ 29.7	$ 128.7
Loss on sale of accounts receivable	$ 0	$ 0

Fair Value Disclosure (Details)

Fair Value Disclosure (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023
Letter of Credit | HBB Facility
Liabilities:
Line of credit facility, maximum borrowing capacity	$ 150,000
Fair value measurements, recurring
Assets:
Assets at fair value	4,699	$ 4,012	$ 4,281
Liabilities:
Liabilities at fair value	607	538	357
Fair value measurements, recurring | Prepaid expenses and other current assets
Assets:
Interest rate swap agreements	1,120	511	1,064
Foreign currency exchange contracts	0	0	49
Fair value measurements, recurring | Other non-current assets
Assets:
Interest rate swap agreements	3,579	3,501	3,168
Fair value measurements, recurring | Other current liabilities
Liabilities:
Foreign currency exchange contracts	$ 607	$ 538	$ 357

Stockholders_ Equity - Schedule

Stockholders’ Equity - Schedule of Capital Stock (Details) shares in Thousands		3 Months Ended
	Mar. 05, 2024 shares	Mar. 31, 2024 $ / shares shares	Mar. 31, 2023 $ / shares shares	Dec. 31, 2023 $ / 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	5,000	5,000
Preferred stock outstanding (in shares)		0	0	0
Class A Common stock
Class of Stock [Line Items]
Common stock, par value (in dollars per share) | $ / shares		$ 0.01	$ 0.01	$ 0.01
Common stock authorized (in shares)		70,000	70,000	70,000
Common stock issued (in shares)		11,427	11,070	11,161
Treasury Stock (in shares)		907	626	877
Class A common shares issued (in shares)		262	192
Class A Common stock | Incentive Plan
Class of Stock [Line Items]
Number of shares surrendered to satisfy tax withholding obligation	30
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	30,000	30,000
Common stock issued (in shares)		3,612	3,629	3,616
Class B common converted to Class A common (in shares)		4	215

Stockholders_ Equity - Stock Re

Stockholders’ Equity - Stock Repurchase Program (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023	Nov. 30, 2023
Class of Stock [Line Items]
Stock repurchased (in shares)	0	0	250,772
Aggregate purchase price			$ 3.1
Remaining authorized repurchase amount	$ 25
Shares Outstanding Class A
Class of Stock [Line Items]
Stock repurchase program, number of shares authorized to be repurchased (in shares)				25,000,000

Stockholders_ Equity - Schedu_2

Stockholders’ Equity - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 147,267	$ 124,534
Other comprehensive income (loss)	(1,068)	(1,166)
Reclassification adjustment to net income (loss)	741	339
Tax effects	(190)	162
Ending balance	145,407	118,429
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(10,667)	(11,918)
Ending balance	(11,184)	(12,583)
Foreign Currency
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(6,412)	(8,924)
Other comprehensive income (loss)	(1,097)	715
Reclassification adjustment to net income (loss)	0	0
Tax effects	0	(194)
Ending balance	(7,509)	(8,403)
Deferred Gain (Loss) on Cash Flow Hedging
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	2,424	4,158
Other comprehensive income (loss)	29	(1,881)
Reclassification adjustment to net income (loss)	647	252
Tax effects	(167)	379
Ending balance	2,933	2,908
Pension Plan Adjustment
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(6,679)	(7,152)
Other comprehensive income (loss)	0	0
Reclassification adjustment to net income (loss)	94	87
Tax effects	(23)	(23)
Ending balance	$ (6,608)	$ (7,088)

Revenue (Narrative) (Details)

Revenue (Narrative) (Details)	3 Months Ended
	Mar. 31, 2024
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%
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
Minimum | Other products
Disaggregation of Revenue [Line Items]
Warranty term	1 year

Revenue (Disaggregation of Reve

Revenue (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Leasing	$ 459	$ 0
Total revenues	128,277	128,252
Consumer products
Disaggregation of Revenue [Line Items]
Revenue	112,750	113,432
Commercial products
Disaggregation of Revenue [Line Items]
Revenue	13,453	13,404
Licensing
Disaggregation of Revenue [Line Items]
Revenue	$ 1,615	$ 1,416

Contingencies (Details)

Contingencies (Details) $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($) numberOfSite	Dec. 31, 2023 USD ($)	Mar. 31, 2023 USD ($)
Loss Contingencies [Line Items]
Accrual for environmental investigation and remediation activities	$ 3.3	$ 3.4	$ 3.3
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 | numberOfSite	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, 2024	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Effective tax rate on income, percent	8.60%	24.70%

Acquisitions - Narrative (Detai

Acquisitions - Narrative (Details) - HealthBeacon € in Millions, $ in Millions			3 Months Ended
	Feb. 02, 2024 EUR (€)	Feb. 02, 2024 USD ($)	Mar. 31, 2024 USD ($)
Asset Acquisition [Line Items]
Business combination, consideration transferred	€ 6.9	$ 7.5
Revenues			$ 0.6
Operating profit (loss)			(1.1)
Transaction costs			$ 1

Acquisitions - Schedule of Prel

Acquisitions - Schedule of Preliminary Assets Acquired and Liabilities Assumed (Details) - HealthBeacon $ in Thousands	Feb. 02, 2024 USD ($)
Asset Acquisition [Line Items]
Cash and cash equivalents	$ 147
Current assets	1,452
Property, plant and equipment, net	7,449
Other intangible assets, net	1,133
Total assets acquired	10,181
Liabilities, current	2,006
Liabilities, non-current	616
Total liabilities acquired	2,622
Purchase Price	$ 7,559