Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 27, 2017 | |
Entity Information [Line Items] | ||
Entity Registrant Name | NACCO INDUSTRIES INC | |
Entity Central Index Key | 789,933 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Shares Outstanding Class A | ||
Entity Information [Line Items] | ||
Shares Outstanding (in shares) | 5,276,050 | |
Shares Outstanding Class B | ||
Entity Information [Line Items] | ||
Shares Outstanding (in shares) | 1,570,148 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 93,938 | $ 69,308 |
Accounts receivable, net | 9,070 | 13,389 |
Accounts receivable from affiliates | 22,964 | 7,404 |
Inventories, net | 30,580 | 28,927 |
Assets held for sale | 1,373 | 2,016 |
Prepaid expenses and other | 6,323 | 8,273 |
Current assets of discontinued operations | 0 | 252,415 |
Total current assets | 164,248 | 381,732 |
Property, plant and equipment, net | 116,336 | 115,106 |
Intangibles, net | 44,036 | 45,678 |
Deferred income taxes | 7,145 | 10,876 |
Investments in unconsolidated subsidiaries | 27,281 | 31,054 |
Deferred costs | 3,163 | 2,069 |
Other non-current assets | 22,740 | 23,089 |
Long-term assets of discontinued operations | 0 | 58,417 |
Total assets | 384,949 | 668,021 |
LIABILITIES AND EQUITY | ||
Accounts payable | 8,466 | 6,995 |
Accounts payable to affiliates | 3,228 | 3,565 |
Current maturities of long-term debt | 1,168 | 1,744 |
Accrued payroll | 12,400 | 15,482 |
Asset retirement obligations | 3,555 | 3,843 |
Accrued income taxes | 3,442 | 0 |
Other current liabilities | 10,964 | 9,954 |
Current liabilities of discontinued operations | 0 | 180,245 |
Total current liabilities | 43,223 | 221,828 |
Long-term debt | 57,573 | 94,295 |
Asset retirement obligations | 39,482 | 38,262 |
Pension and other postretirement obligations | 12,924 | 14,271 |
Deferred compensation | 13,571 | 13,578 |
Other long-term liabilities | 11,113 | 9,737 |
Long-term liabilities of discontinued operations | 0 | 55,757 |
Total liabilities | 177,886 | 447,728 |
Common stock: | ||
Capital in excess of par value | 2,219 | 0 |
Retained earnings | 207,447 | 239,441 |
Accumulated other comprehensive loss | (9,449) | (25,927) |
Total stockholders' equity | 207,063 | 220,293 |
Total liabilities and equity | 384,949 | 668,021 |
Shares Outstanding Class A | ||
Common stock: | ||
Common stock | 5,276 | 5,208 |
Shares Outstanding Class B | ||
Common stock: | ||
Common stock | $ 1,570 | $ 1,571 |
Unaudited Condensed Consolidat3
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) | Sep. 30, 2017$ / sharesshares | Dec. 31, 2016$ / sharesshares |
Shares Outstanding Class A | ||
Common stock, par value (in dollars per share) | $ / shares | $ 1 | $ 1 |
Common stock, shares outstanding (in shares) | shares | 5,276,050 | 5,207,955 |
Shares Outstanding Class B | ||
Common stock, par value (in dollars per share) | $ / shares | $ 1 | $ 1 |
Common stock, convertible conversion ratio | 1 | 1 |
Common stock, shares outstanding (in shares) | shares | 1,570,148 | 1,570,915 |
Unaudited Condensed Consolidat4
Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||||
Revenues | $ 21,941 | $ 32,402 | $ 78,341 | $ 85,778 |
Cost of sales | 19,466 | 30,755 | 66,711 | 75,926 |
Gross profit | 2,475 | 1,647 | 11,630 | 9,852 |
Earnings of unconsolidated mines | 16,197 | 15,102 | 44,627 | 40,785 |
Operating expenses | ||||
Selling, general and administrative expenses | 11,723 | 10,765 | 31,809 | 30,786 |
Centennial asset impairment charge | 0 | 17,443 | 0 | 17,443 |
(Gain) loss on sale of assets | (475) | 502 | (3,500) | 1,424 |
Amortization of intangible assets | 435 | 818 | 1,641 | 1,936 |
Operating expenses | 11,683 | 29,528 | 29,950 | 51,589 |
Operating profit (loss) | 6,989 | (12,779) | 26,307 | (952) |
Other expense (income) | ||||
Interest expense | 946 | 1,036 | 2,806 | 3,182 |
Income from other unconsolidated affiliates | (313) | (307) | (932) | (913) |
Closed mine obligations | 336 | 223 | 1,071 | 948 |
Other, net, including interest income | 64 | (10) | 15 | 2,229 |
Other (income) expense | 1,033 | 942 | 2,960 | 5,446 |
Income (loss) from continuing operations before income tax provision (benefit) | 5,956 | (13,721) | 23,347 | (6,398) |
Income tax provision (benefit) from continuing operations | 2,625 | (11,589) | 4,564 | (13,970) |
Income (loss) from continuing operations | 3,331 | (2,132) | 18,783 | 7,572 |
Discontinued operations, net of tax expense of $236 and $2,655 in the three and nine months ended September 30, 2017, respectively, and net of tax expense of $11,044 and $12,966 in the three and nine months ended September 30, 2016, respectively. | 5,067 | 1,691 | 1,381 | (2,096) |
Net income (loss) | $ 8,398 | $ (441) | $ 20,164 | $ 5,476 |
Basic earnings (loss) per share: | ||||
Continuing operations (in dollars per share) | $ 0.49 | $ (0.31) | $ 2.75 | $ 1.11 |
Discontinued operations (in dollars per share) | 0.74 | 0.25 | 0.20 | (0.31) |
Basic earnings per share (in dollars per share) | 1.23 | (0.06) | 2.95 | 0.80 |
Diluted earnings (loss) per share: | ||||
Continuing operations (in dollars per share) | 0.49 | (0.31) | 2.74 | 1.10 |
Discontinued operations (in dollars per share) | 0.74 | 0.25 | 0.20 | (0.30) |
Diluted earnings per share (in dollars per share) | 1.23 | (0.06) | 2.94 | 0.80 |
Dividends per share (in dollars per share) | $ 0.2725 | $ 0.2675 | $ 0.8125 | $ 0.7975 |
Basic weighted average shares outstanding (in shares) | 6,839 | 6,786 | 6,825 | 6,831 |
Diluted weighted average shares outstanding (in shares) | 6,866 | 6,786 | 6,854 | 6,858 |
Unaudited Condensed Consolidat5
Unaudited Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||||
Tax effect of discontinued operations | $ 236 | $ 11,044 | $ 2,655 | $ 12,966 |
Unaudited Condensed Consolidat6
Unaudited Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 8,398 | $ (441) | $ 20,164 | $ 5,476 |
Foreign currency translation adjustment | (18) | (517) | 1,725 | (1,335) |
Deferred gain on available for sale securities | 78 | 134 | 542 | 298 |
Current period cash flow hedging activity, net of $1,310 and $941 tax expense in the three and nine months ended September 30, 2017, and $169 tax expense and $819 tax benefit in the three and nine months ended September 30, 2016, respectively. | 2,402 | 340 | 1,543 | (1,541) |
Reclassification of hedging activities into earnings, net of $1,344 and $1,255 tax expense in the three and nine months ended September 30, 2017, respectively, and $149 and $254 tax benefit in the three and nine months ended September 30, 2016, respectively. | (2,509) | 312 | (2,369) | 420 |
Reclassification of pension and postretirement adjustments into earnings, net of $38 and $228 tax benefit in the three and nine months ended September 30, 2017, and $88 and $271 tax benefit in the three and nine months ended September 30, 2016, respectively. | 191 | 166 | 515 | 468 |
Total other comprehensive income (loss) | 144 | 435 | 1,956 | (1,690) |
Comprehensive income (loss) | $ 8,542 | $ (6) | $ 22,120 | $ 3,786 |
Unaudited Condensed Consolidat7
Unaudited Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Current period cash flow hedging activity, tax expense (benefit) | $ 1,310 | $ 169 | $ 941 | $ (819) |
Reclassification of hedging activities into earnings, tax expense (benefit) | 1,344 | (149) | 1,255 | (254) |
Reclassification of pension and postretirement adjustments into earnings, tax expense (benefit) | $ (38) | $ (88) | $ (228) | $ (271) |
Unaudited Condensed Consolidat8
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Operating activities | ||
Net income (loss) | $ 20,164 | $ 5,476 |
Income (loss) from discontinued operations | 1,381 | (2,096) |
Income from continuing operations | 18,783 | 7,572 |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 9,580 | 9,870 |
Amortization of deferred financing fees | 387 | 278 |
Centennial asset impairment charge | 0 | 17,443 |
Deferred income taxes | 3,731 | 14,858 |
Other | 610 | 506 |
Working capital changes: | ||
Affiliates receivable/payable | 513 | 5,892 |
Accounts receivable | (2,792) | (9,840) |
Inventories | (1,693) | 5,860 |
Other current assets | (100) | 984 |
Accounts payable | 2,289 | (638) |
Income taxes receivable/payable | 5,594 | (20,966) |
Other current liabilities | (2,084) | (10,525) |
Net cash provided by operating activities of continuing operations | 34,818 | 21,294 |
Net cash (used for) provided by operating activities of discontinued operations | (7,700) | 24,864 |
Net cash provided by (used for) operating activities | 27,118 | 46,158 |
Investing activities | ||
Expenditures for property, plant and equipment | (9,211) | (7,297) |
Proceeds from the sale of property, plant and equipment | 2,006 | 4,281 |
Other | 901 | (2,587) |
Net cash used for investing activities of continuing operations | (6,304) | (5,603) |
Net cash used for investing activities of discontinued operations | (4,345) | (4,326) |
Net cash used for investing activities | (10,649) | (9,929) |
Financing activities | ||
Reductions of long-term debt | (35,008) | (1,389) |
Cash dividends paid | (5,552) | (5,450) |
Cash dividends received from Hamilton Beach Brands Holding Co. (See Note 10) | 38,000 | 10,000 |
Purchase of treasury shares | 0 | (6,044) |
Other | (1,324) | (3) |
Net cash used for financing activities of continuing operations | (3,884) | (2,886) |
Net cash provided by (used for) financing activities of discontinued operations | 3,747 | (41,472) |
Net cash used for financing activities | (137) | (44,358) |
Effect of exchange rate changes on cash of continuing operations | 0 | 0 |
Effect of exchange rate changes on cash of discontinued operations | 71 | (104) |
Cash and cash equivalents | ||
Total increase (decrease) for the period | 16,403 | (8,233) |
Net decrease related to discontinued operations | 8,227 | 11,395 |
Balance at the beginning of the period | 69,308 | 35,701 |
Balance at the end of the period | $ 93,938 | $ 38,863 |
Unaudited Condensed Consolidat9
Unaudited Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Total Stockholders' Equity | Common StockShares Outstanding Class A | Common StockShares Outstanding Class B | Capital in Excess of Par Value | Retained Earnings | Foreign Currency Translation Adjustment | Deferred Gain (Loss) on Available for Sale Securities | Deferred Gain (Loss) on Cash Flow Hedging | Pension and Postretirement Plan Adjustment |
Balance, beginning of period at Dec. 31, 2015 | $ 201,138 | $ 5,265 | $ 1,572 | $ 0 | $ 217,745 | $ (5,455) | $ 1,480 | $ (112) | $ (19,357) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock-based compensation | 2,878 | 48 | 2,830 | |||||||
Conversion of Class B to Class A shares | 0 | 1 | (1) | |||||||
Purchase of treasury shares | (6,044) | (109) | (2,830) | (3,105) | ||||||
Net income (loss) | $ 5,476 | 5,476 | 5,476 | |||||||
Cash dividends on Class A and Class B common stock | (5,450) | (5,450) | ||||||||
Current period other comprehensive income (loss) | (2,578) | (1,335) | 298 | (1,541) | ||||||
Reclassification adjustment to net income | 888 | 420 | 468 | |||||||
Balance, end of period at Sep. 30, 2016 | 196,308 | 5,205 | 1,571 | 0 | 214,666 | (6,790) | 1,778 | (1,233) | (18,889) | |
Balance, beginning of period at Dec. 31, 2016 | 220,293 | 5,208 | 1,571 | 0 | 239,441 | (7,533) | 1,893 | 393 | (20,680) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock-based compensation | 2,286 | 67 | 2,219 | |||||||
Conversion of Class B to Class A shares | 0 | 1 | (1) | |||||||
Net income (loss) | $ 20,164 | 20,164 | 20,164 | |||||||
Cash dividends on Class A and Class B common stock | (5,552) | (5,552) | ||||||||
Current period other comprehensive income (loss) | 3,810 | 1,725 | 542 | 1,543 | ||||||
Reclassification adjustment to net income | (1,854) | (2,369) | 515 | |||||||
Hamilton Beach Brands Holding Company stock dividend (See Note 10) | (32,084) | (46,606) | 5,808 | 433 | 8,281 | |||||
Balance, end of period at Sep. 30, 2017 | $ 207,063 | $ 5,276 | $ 1,570 | $ 2,219 | $ 207,447 | $ 0 | $ 2,435 | $ 0 | $ (11,884) |
Unaudited Condensed Consolida10
Unaudited Condensed Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends on common stock (in dollars per share) | $ 0.8125 | $ 0.7975 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Basis of Presentation | Nature of Operations and Basis of Presentation Nature of Operations The accompanying Unaudited Condensed Consolidated Financial Statements include the accounts of NACCO Industries, Inc. (the “parent company” or “NACCO”) and its wholly owned subsidiaries (collectively, “NACCO Industries, Inc. and Subsidiaries” or the “Company”). Intercompany accounts and transactions are eliminated in consolidation. The Company's primary operating subsidiary operates in the mining industry. The North American Coal Corporation and its affiliated companies (collectively, “NACoal”) mine coal primarily for use in power generation and provide value-added services for natural resource companies. On September 29, 2017, the Company spun-off Hamilton Beach Brands Holding Company ("HBBHC"), a former wholly owned subsidiary. HBBHC is an operating holding company for two separate businesses: consumer, commercial and specialty small appliances (Hamilton Beach Brands, Inc. or "HBB") and specialty retail (The Kitchen Collection, LLC or "KC"). The financial position, results of operations and cash flows of HBBHC are reflected as discontinued operations for all periods presented through the date of the spin-off. See Note 10 to the Unaudited Condensed Consolidated Financial Statements for further details regarding the spin-off. NACoal has the following operating coal mining subsidiaries: Bisti Fuels Company, LLC ("Bisti"), Caddo Creek Resources Company, LLC (“Caddo Creek”), Camino Real Fuels, LLC (“Camino Real”), The Coteau Properties Company (“Coteau”), Coyote Creek Mining Company, LLC (“Coyote Creek”), Demery Resources Company, LLC (“Demery”), The Falkirk Mining Company (“Falkirk”), Liberty Fuels Company, LLC (“Liberty”), Mississippi Lignite Mining Company (“MLMC”) and The Sabine Mining Company (“Sabine”). All of the operating coal mining subsidiaries other than MLMC are unconsolidated (collectively the "Unconsolidated Mines"). The Unconsolidated Mines were formed to develop, construct and/or operate surface coal mines under long-term contracts and are capitalized primarily with debt financing provided by or supported by their respective customers, and without recourse to NACCO and NACoal. The contracts with the customers of the Unconsolidated Mines provide for reimbursement to the company at a price based on actual costs plus an agreed upon pre-tax profit per ton of coal sold or actual costs plus an agreed upon fee per btu of heating value delivered. The fees earned at each mine adjust over time in line with various indices which reflect general U.S. inflation rates. Although NACoal owns 100% of the equity and manages the daily operations of the Unconsolidated Mines, the Company has determined that the equity capital provided by NACoal is not sufficient to adequately finance the ongoing activities or absorb any expected losses without additional support from the customers. The customers have a controlling financial interest and have the power to direct the activities that most significantly affect the economic performance of the entities. As a result, NACoal is not the primary beneficiary and therefore does not consolidate these entities' financial position or results of operations. The income taxes resulting from operations of the Unconsolidated Mines are solely the responsibility of the Company. The pre-tax income from the Unconsolidated Mines is reported on the line “Earnings of unconsolidated mines” in the Consolidated Statements of Operations, with related taxes included in the provision for income taxes. The Company has included the pre-tax earnings of the Unconsolidated Mines above operating profit as they are an integral component of the Company's business and operating results. MLMC is a consolidated entity because NACoal pays all operating costs and provides the capital for the mine. MLMC sells coal to its customer at a contractually agreed upon price which adjusts monthly, primarily based on changes in the level of established indices which reflect general U.S. inflation rates. Centennial Natural Resources, LLC ("Centennial"), which ceased coal production in the fourth quarter of 2015, is also a consolidated entity. NACoal provides value-added mining services for independently owned limerock quarries through its North American Mining ("NAM") division. NAM is reimbursed by its customers based on actual costs plus a management fee. The financial results for NAM are included in consolidated mining operations or unconsolidated mining operations based on each NAM entity's structure. NACoal also provides coal handling, processing and drying services for a number of customers. For example, NoDak Energy Services, LLC ("NoDak") operates and maintains a coal processing facility for a customer's power plant. The pre-tax income from NoDak is reported on the line "Income from other unconsolidated affiliates" in the "Other (income) expense" section of the Consolidated Statements of Operations, with the related income taxes included in the provision for income taxes. North American Coal Royalty Company, a consolidated entity, provides surface and mineral acquisition and lease maintenance services related to the Company's operations. All of the unconsolidated subsidiaries are accounted for under the equity method. See Note 6 for further discussion. Basis of Presentation These financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position of the Company at September 30, 2017 and the results of its operations, comprehensive income (loss), cash flows and changes in equity for the nine months ended September 30, 2017 and 2016 have been included. These Unaudited Condensed Consolidated 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, 2016 . The balance sheet at December 31, 2016 has been derived from the audited financial statements at that date but does not include all of the information or notes required by U.S. GAAP for complete financial statements. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 9 Months Ended |
Sep. 30, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Accounting Standards Not Yet Adopted In May 2014, the FASB codified ASC 606, "Revenue Recognition - Revenue from Contracts with Customers," which supersedes most current revenue recognition guidance, including industry-specific guidance, and requires an entity to recognize revenue in an amount that reflects the consideration to which the entity expects to be entitled in exchange for transferring goods or services to customers and provide additional disclosures. As amended, the effective date for public entities is annual reporting periods beginning after December 15, 2017 and interim periods therein. The Company anticipates adopting the new revenue guidance effective January 1, 2018 using the modified retrospective method with the cumulative effect of initially applying the standard recognized as an adjustment to equity. The Company has developed a project plan with respect to its implementation of this standard, including identification of revenue streams and review of contracts and procedures curr ently in place. The Company is in the process of completing its review of customer contracts at its NACoal subsidiary, including the contracts for the Company’s Unconsolidated Mines, and finalizing its conclusions on a variety of specific contractual terms. These include identification of additional performance obligations, specifically during the pre- and post-coal production periods, variable compensation considerations and the timing of recognition of royalty revenue. While the revenue of the Unconsolidated Mines is not consolidated within the Company’s financial statements, any change in the amount or timing of revenue recognition at the Unconsolidated Mines could have an impact on the company’s recognition of earnings from the unconsolidated mines. The Company is also in the process of identifying and implementing any necessary changes to processes and controls to meet the standard's updated reporting and disclosure requirements. The Company continues to assess the potential impact of the standard and has not yet reached a conclusion as to how the adoption of the standard will impact the Company's financial position, results of operations or cash flows. The adoption of this guidance will result in increased disclosures to help users of financial statements understand the nature, amount and timing of revenue and cash flows arising from contracts. In January 2016, the FASB issued ASU No. 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities," which modifies how entities measure equity investments and present changes in the fair value of financial liabilities; simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; changes presentation and disclosure requirements; and clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is evaluating the impact that this new guidance will have on the Company’s financial position, results of operations, cash flows and related disclosures. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are summarized as follows: SEPTEMBER 30 DECEMBER 31 Coal $ 14,695 $ 13,137 Mining supplies 15,885 15,790 Total inventories $ 30,580 $ 28,927 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Stock Repurchase Program: On May 10, 2016, the Company's Board of Directors approved a stock repurchase program (the "2016 Stock Repurchase Program") providing for the purchase of up to $50 million of the Company's Class A Common Stock outstanding through December 31, 2017. The Company’s previous $60 million stock repurchase program, announced in December 2013, was completed in October 2015. The timing and amount of any repurchases under the 2016 Stock Repurchase Program are determined at the discretion of the Company's management based on a number of factors, including the availability of capital, other capital allocation alternatives and market conditions for the Company's Class A Common Stock. The 2016 Stock Repurchase Program does not require the Company to acquire any specific number of shares. It may be modified, suspended, extended or terminated by the Company at any time without prior notice and may be executed through open market purchases, privately negotiated transactions or otherwise. All or part of the repurchases under the 2016 Stock Repurchase Program may be implemented under a Rule 10b5-1 trading plan, which would allow repurchases under pre-set terms at times when the Company might otherwise be prevented from doing so. During the three and nine months ended September 30, 2017 , the Company did no t repurchase any shares of Class A Common Stock and approximately $44 million is still available to be repurchased under the 2016 Stock Repurchase Program. |
Fair Value Disclosure
Fair Value Disclosure | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosure | Fair Value Disclosure Recurring Fair Value Measurements : The following table presents the Company's assets and liabilities accounted for at fair value on a recurring basis: Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Active Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs Description Date (Level 1) (Level 2) (Level 3) September 30, 2017 Assets: Available for sale securities $ 8,715 $ 8,715 $ — $ — $ 8,715 $ 8,715 $ — $ — Liabilities: Interest rate swap agreements $ 3 $ — $ 3 $ — $ 3 $ — $ 3 $ — December 31, 2016 Assets: Available for sale securities $ 7,882 $ 7,882 $ — $ — $ 7,882 $ 7,882 $ — $ — Liabilities: Interest rate swap agreements $ 339 $ — $ 339 $ — $ 339 $ — $ 339 $ — Bellaire Corporation (“Bellaire”) is a non-operating subsidiary of the Company with legacy liabilities relating to closed mining operations, primarily former Eastern U.S. underground coal mining operations. In connection with Bellaire's normal permit renewal with the Pennsylvania Department of Environmental Protection ("DEP"), Bellaire established a $5.0 million mine water treatment trust (the "Mine Water Treatment Trust") to provide a financial assurance mechanism to assure the long-term treatment of post-mining discharges. Bellaire's Mine Water Treatment Trust invests in available for sale securities that are reported at fair value based upon quoted market prices in active markets for identical assets; therefore, they are classified as Level 1 within the fair value hierarchy. The Company uses significant other observable inputs to value derivative instruments used to hedge interest rate risk; therefore, they are classified within Level 2 of the valuation hierarchy. The fair value for these contracts is determined based on current interest rates. There were no transfers into or out of Levels 1, 2 or 3 during the three and nine months ended September 30, 2017 and 2016 . |
Unconsolidated Subsidiaries
Unconsolidated Subsidiaries | 9 Months Ended |
Sep. 30, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Unconsolidated Subsidiaries | Unconsolidated Subsidiaries NACoal's wholly owned unconsolidated subsidiaries each meet the definition of a variable interest entity. See Note 1 for a discussion of these entities. The investment in the unconsolidated subsidiaries and related tax positions totaled $27.3 million and $31.1 million at September 30, 2017 and December 31, 2016 , respectively. The Company's maximum risk of loss relating to these entities is limited to its invested capital, which was $17.8 million and $4.6 million at September 30, 2017 and December 31, 2016 , respectively. NACoal is a party to certain guarantees related to Coyote Creek. Under certain circumstances of default or termination of Coyote Creek’s Lignite Sales Agreement (“LSA”), NACoal would be obligated for payment of a "make-whole" amount to Coyote Creek’s third-party lenders. The “make-whole” amount is based on the excess, if any, of the discounted value of the remaining scheduled debt payments over the principal amount. In addition, in the event Coyote Creek’s LSA is terminated on or after January 1, 2024 by Coyote Creek’s customers, NACoal is obligated to purchase Coyote Creek’s dragline and rolling stock for the then net book value of those assets. To date, no payments have been required from NACoal since the inception of these guarantees. The Company believes that the likelihood of NACoal’s future performance under the guarantees is remote, and no amounts related to these guarantees have been recorded. Summarized financial information for the unconsolidated subsidiaries is as follows: THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 2017 2016 2017 2016 Revenues $ 203,134 $ 178,009 $ 571,862 $ 483,360 Gross profit $ 23,126 $ 21,367 $ 64,981 $ 59,788 Income before income taxes $ 16,602 $ 14,755 $ 45,928 $ 41,122 |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Various legal and regulatory proceedings and claims have been or may be asserted against NACCO and certain subsidiaries relating to the conduct of their businesses, including asbestos-related claims and other claims. These proceedings and claims are incidental to the ordinary course of business of the Company. Management believes that it has meritorious defenses and will vigorously defend the Company in these actions. Any costs that management estimates will be paid as a result of these claims are accrued when the liability is considered probable and the amount can be reasonably estimated. If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the minimum of the range is accrued. The Company does not accrue liabilities when the likelihood that the liability has been incurred is probable but the amount cannot be reasonably estimated or when the liability is believed to be only reasonably possible or remote. For contingencies where an unfavorable outcome is probable or reasonably possible and which are material, the Company discloses the nature of the contingency and, in some circumstances, an estimate of the possible loss. These matters are subject to inherent uncertainties, and unfavorable rulings could occur. If an unfavorable ruling were to occur, there exists the possibility of an adverse impact on the Company’s financial position, results of operations and cash flows of the period in which the ruling occurs, or in future periods. |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments Two of the Company’s former segments, HBB and KC, were spun-off on September 29, 2017. See Note 1 for a discussion of the Company's industry and the spin-off. There were no changes to the composition of the remaining segments, NACoal and NACCO and Other. NACCO's non-operating segment, NACCO and Other, includes the accounts of the parent company and Bellaire. Financial information for each of NACCO's reportable segments is presented in the following table: THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 2017 2016 2017 2016 Revenues NACoal $ 21,941 $ 32,402 $ 78,341 $ 85,778 Total $ 21,941 $ 32,402 $ 78,341 $ 85,778 Operating profit (loss) NACoal $ 8,925 $ (10,912 ) $ 31,127 $ 3,653 NACCO and Other (1,936 ) (1,867 ) (4,820 ) (4,605 ) Total $ 6,989 $ (12,779 ) $ 26,307 $ (952 ) |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes A reconciliation of the income tax provision (benefit) based on the U.S. federal statutory rate of 35% to the effective income tax rate is as follows: THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 2017 2016 2017 2016 Income (loss) before income tax provision (benefit) $ 5,956 $ (13,721 ) $ 23,347 $ (6,398 ) Statutory taxes (benefit) at 35.0% $ 2,085 $ (4,802 ) $ 8,171 $ (2,239 ) Percentage depletion (1,033 ) (7,889 ) (5,531 ) (12,034 ) State and local income taxes 119 (758 ) 187 (788 ) Domestic production deduction (75 ) (628 ) (371 ) (666 ) Non-deductible expenses (469 ) 991 168 1,701 Valuation allowances 1,923 1,673 1,692 1,690 Uncertain tax positions 7 190 55 (2,015 ) Other, net 68 (366 ) 193 381 Income tax provision (benefit) $ 2,625 $ (11,589 ) $ 4,564 $ (13,970 ) Effective income tax rate 44.1 % 84.5 % 19.5 % 218.3 % The effective income tax rates for the three and nine months ended September 30, 2017 include discrete income tax expense of $1.9 million and $1.6 million , respectively, primarily due to the establishment of a valuation allowance on deferred tax assets. The valuation allowance was established because the Company expects to be subject to Alternative Minimum Tax ("AMT") beginning in 2018 due to the change in the mix of earnings as a result of the spin-off of Hamilton Beach Holding. As a result of being subject to AMT beginning in 2018, the Company remeasured its deferred tax assets and liabilities using the AMT rate that is expected to apply to taxable income in future years in which those tax assets and liabilities are expected to be realized or settled. |
Other Events and Transactions
Other Events and Transactions | 9 Months Ended |
Sep. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Other Events and Transactions | Other Events and Transactions HBBHC Spin-Off: On September 29, 2017, the Company spun-off HBBHC, a former wholly owned subsidiary. To complete the spin-off, the Company distributed one share of HBBHC Class A common stock and one share of HBBHC Class B common stock to NACCO stockholders for each share of NACCO Class A common stock or Class B common stock owned. The Company accounted for the spin-off based on the historical carrying value of HBBHC. On September 28, 2017, prior to the spin-off, HBBHC paid NACCO a one-time $35.0 million cash dividend. This payment was in addition to $3.0 million in dividends HBBHC paid to NACCO from January 1, 2017 to June 30, 2017. In connection with the spin-off of HBBHC, the Company and HBBHC entered into a Transition Services Agreement ("TSA"). Under the terms of the TSA, the Company will provide various services to HBBHC on a transitional basis, as needed, for varying periods after the spin-off date. None of the transition services are expected to exceed one year. NACCO expects to receive net aggregate fees of approximately $1.0 million over the term of the TSA from HBBHC. As a result of the spin-off, the financial position, results of operations and cash flows of HBBHC are reflected as discontinued operations through the date of the spin-off in the Unaudited Condensed Consolidated Financial Statements. In connection with the spin-off of HBBHC, NACCO and Other recognized non-deductible expenses directly attributable to the spin-off of $1.7 million and $2.8 million for the three and nine months ended September 30, 2017, respectively, which are reflected as discontinued operations in the Unaudited Condensed Consolidated Financial Statements. Discontinued operations includes the following results of HBBHC for the three and nine months ended September 30, 2017 and 2016: THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 2017 2016 2017 2016 HBBHC Operating Statement Data: Revenues $ 181,713 $ 188,390 $ 474,971 $ 486,442 Cost of goods sold 133,586 138,329 353,436 364,052 Gross profit 48,127 50,061 121,535 122,390 Operating expenses (a) 40,697 36,583 114,379 110,117 Operating profit 7,430 13,478 7,156 12,273 Interest expense 423 286 1,300 1,115 Other expense, net 40 457 (939 ) 288 Income before income taxes 6,967 12,735 6,795 10,870 Income tax expense 2,708 4,003 2,655 3,323 HBBHC net income $ 4,259 $ 8,732 $ 4,140 $ 7,547 NACCO expenses related to the spin-off 1,664 — 2,759 — NACCO discontinued operations income tax expense (benefit) adjustments (2,472 ) 7,041 — 9,643 NACCO discontinued operations $ 5,067 $ 1,691 $ 1,381 $ (2,096 ) (a) HBBHC's operating profit includes the recognition of $2.5 million of expenses related to the spin-off in the three and nine months ended September 30, 2017. Centennial asset impairment charge: Centennial ceased coal production in the fourth quarter of 2015 and the Company began actively marketing Centennial's mine machinery and equipment. The Company classified these assets as held for sale during the fourth quarter of 2015 when management approved and committed to a formal plan of sale. The coal land and real estate did not meet the held-for-sale criteria and remained within property, plant and equipment as a long-lived asset. As a result of various unfavorable conditions, including but not limited to weakness in the U.S. and global coal markets and certain asset-specific factors, the Company determined the carrying value of Centennial's coal land and real estate were not recoverable. The Company also conducted a review of the carrying value of Centennial's mine machinery and equipment classified as assets held for sale. The fair values of these assets were calculated using a combination of a market and income approach and reduced the carrying value of coal land and real estate to zero and assets held for sale to approximately $5.0 million . The Company recognized an aggregate impairment charge of $17.4 million during the third quarter of 2016. The asset impairment charge was recorded as "Centennial asset impairment charge" in the Unaudited Condensed Consolidated Statement of Operations for the three and nine months ended September 30, 2016. |
Nature of Operations and Basi21
Nature of Operations and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations The accompanying Unaudited Condensed Consolidated Financial Statements include the accounts of NACCO Industries, Inc. (the “parent company” or “NACCO”) and its wholly owned subsidiaries (collectively, “NACCO Industries, Inc. and Subsidiaries” or the “Company”). Intercompany accounts and transactions are eliminated in consolidation. The Company's primary operating subsidiary operates in the mining industry. The North American Coal Corporation and its affiliated companies (collectively, “NACoal”) mine coal primarily for use in power generation and provide value-added services for natural resource companies. On September 29, 2017, the Company spun-off Hamilton Beach Brands Holding Company ("HBBHC"), a former wholly owned subsidiary. HBBHC is an operating holding company for two separate businesses: consumer, commercial and specialty small appliances (Hamilton Beach Brands, Inc. or "HBB") and specialty retail (The Kitchen Collection, LLC or "KC"). The financial position, results of operations and cash flows of HBBHC are reflected as discontinued operations for all periods presented through the date of the spin-off. See Note 10 to the Unaudited Condensed Consolidated Financial Statements for further details regarding the spin-off. NACoal has the following operating coal mining subsidiaries: Bisti Fuels Company, LLC ("Bisti"), Caddo Creek Resources Company, LLC (“Caddo Creek”), Camino Real Fuels, LLC (“Camino Real”), The Coteau Properties Company (“Coteau”), Coyote Creek Mining Company, LLC (“Coyote Creek”), Demery Resources Company, LLC (“Demery”), The Falkirk Mining Company (“Falkirk”), Liberty Fuels Company, LLC (“Liberty”), Mississippi Lignite Mining Company (“MLMC”) and The Sabine Mining Company (“Sabine”). All of the operating coal mining subsidiaries other than MLMC are unconsolidated (collectively the "Unconsolidated Mines"). The Unconsolidated Mines were formed to develop, construct and/or operate surface coal mines under long-term contracts and are capitalized primarily with debt financing provided by or supported by their respective customers, and without recourse to NACCO and NACoal. The contracts with the customers of the Unconsolidated Mines provide for reimbursement to the company at a price based on actual costs plus an agreed upon pre-tax profit per ton of coal sold or actual costs plus an agreed upon fee per btu of heating value delivered. The fees earned at each mine adjust over time in line with various indices which reflect general U.S. inflation rates. Although NACoal owns 100% of the equity and manages the daily operations of the Unconsolidated Mines, the Company has determined that the equity capital provided by NACoal is not sufficient to adequately finance the ongoing activities or absorb any expected losses without additional support from the customers. The customers have a controlling financial interest and have the power to direct the activities that most significantly affect the economic performance of the entities. As a result, NACoal is not the primary beneficiary and therefore does not consolidate these entities' financial position or results of operations. The income taxes resulting from operations of the Unconsolidated Mines are solely the responsibility of the Company. The pre-tax income from the Unconsolidated Mines is reported on the line “Earnings of unconsolidated mines” in the Consolidated Statements of Operations, with related taxes included in the provision for income taxes. The Company has included the pre-tax earnings of the Unconsolidated Mines above operating profit as they are an integral component of the Company's business and operating results. MLMC is a consolidated entity because NACoal pays all operating costs and provides the capital for the mine. MLMC sells coal to its customer at a contractually agreed upon price which adjusts monthly, primarily based on changes in the level of established indices which reflect general U.S. inflation rates. Centennial Natural Resources, LLC ("Centennial"), which ceased coal production in the fourth quarter of 2015, is also a consolidated entity. NACoal provides value-added mining services for independently owned limerock quarries through its North American Mining ("NAM") division. NAM is reimbursed by its customers based on actual costs plus a management fee. The financial results for NAM are included in consolidated mining operations or unconsolidated mining operations based on each NAM entity's structure. NACoal also provides coal handling, processing and drying services for a number of customers. For example, NoDak Energy Services, LLC ("NoDak") operates and maintains a coal processing facility for a customer's power plant. The pre-tax income from NoDak is reported on the line "Income from other unconsolidated affiliates" in the "Other (income) expense" section of the Consolidated Statements of Operations, with the related income taxes included in the provision for income taxes. North American Coal Royalty Company, a consolidated entity, provides surface and mineral acquisition and lease maintenance services related to the Company's operations. All of the unconsolidated subsidiaries are accounted for under the equity method. |
Basis of Presentation | Basis of Presentation These financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position of the Company at September 30, 2017 and the results of its operations, comprehensive income (loss), cash flows and changes in equity for the nine months ended September 30, 2017 and 2016 have been included. These Unaudited Condensed Consolidated 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, 2016 . The balance sheet at December 31, 2016 has been derived from the audited financial statements at that date but does not include all of the information or notes required by U.S. GAAP for complete financial statements. |
Accounting Standards Not Yet Adopted | Accounting Standards Not Yet Adopted In May 2014, the FASB codified ASC 606, "Revenue Recognition - Revenue from Contracts with Customers," which supersedes most current revenue recognition guidance, including industry-specific guidance, and requires an entity to recognize revenue in an amount that reflects the consideration to which the entity expects to be entitled in exchange for transferring goods or services to customers and provide additional disclosures. As amended, the effective date for public entities is annual reporting periods beginning after December 15, 2017 and interim periods therein. The Company anticipates adopting the new revenue guidance effective January 1, 2018 using the modified retrospective method with the cumulative effect of initially applying the standard recognized as an adjustment to equity. The Company has developed a project plan with respect to its implementation of this standard, including identification of revenue streams and review of contracts and procedures curr ently in place. The Company is in the process of completing its review of customer contracts at its NACoal subsidiary, including the contracts for the Company’s Unconsolidated Mines, and finalizing its conclusions on a variety of specific contractual terms. These include identification of additional performance obligations, specifically during the pre- and post-coal production periods, variable compensation considerations and the timing of recognition of royalty revenue. While the revenue of the Unconsolidated Mines is not consolidated within the Company’s financial statements, any change in the amount or timing of revenue recognition at the Unconsolidated Mines could have an impact on the company’s recognition of earnings from the unconsolidated mines. The Company is also in the process of identifying and implementing any necessary changes to processes and controls to meet the standard's updated reporting and disclosure requirements. The Company continues to assess the potential impact of the standard and has not yet reached a conclusion as to how the adoption of the standard will impact the Company's financial position, results of operations or cash flows. The adoption of this guidance will result in increased disclosures to help users of financial statements understand the nature, amount and timing of revenue and cash flows arising from contracts. In January 2016, the FASB issued ASU No. 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities," which modifies how entities measure equity investments and present changes in the fair value of financial liabilities; simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; changes presentation and disclosure requirements; and clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is evaluating the impact that this new guidance will have on the Company’s financial position, results of operations, cash flows and related disclosures. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories are summarized as follows: SEPTEMBER 30 DECEMBER 31 Coal $ 14,695 $ 13,137 Mining supplies 15,885 15,790 Total inventories $ 30,580 $ 28,927 |
Fair Value Disclosure (Tables)
Fair Value Disclosure (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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: Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Active Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs Description Date (Level 1) (Level 2) (Level 3) September 30, 2017 Assets: Available for sale securities $ 8,715 $ 8,715 $ — $ — $ 8,715 $ 8,715 $ — $ — Liabilities: Interest rate swap agreements $ 3 $ — $ 3 $ — $ 3 $ — $ 3 $ — December 31, 2016 Assets: Available for sale securities $ 7,882 $ 7,882 $ — $ — $ 7,882 $ 7,882 $ — $ — Liabilities: Interest rate swap agreements $ 339 $ — $ 339 $ — $ 339 $ — $ 339 $ — |
Unconsolidated Subsidiaries (Ta
Unconsolidated Subsidiaries (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Financial Information for Unconsolidated Subsidiaries | Summarized financial information for the unconsolidated subsidiaries is as follows: THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 2017 2016 2017 2016 Revenues $ 203,134 $ 178,009 $ 571,862 $ 483,360 Gross profit $ 23,126 $ 21,367 $ 64,981 $ 59,788 Income before income taxes $ 16,602 $ 14,755 $ 45,928 $ 41,122 |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting Information | Financial information for each of NACCO's reportable segments is presented in the following table: THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 2017 2016 2017 2016 Revenues NACoal $ 21,941 $ 32,402 $ 78,341 $ 85,778 Total $ 21,941 $ 32,402 $ 78,341 $ 85,778 Operating profit (loss) NACoal $ 8,925 $ (10,912 ) $ 31,127 $ 3,653 NACCO and Other (1,936 ) (1,867 ) (4,820 ) (4,605 ) Total $ 6,989 $ (12,779 ) $ 26,307 $ (952 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Income Tax Provision (Benefit) | A reconciliation of the income tax provision (benefit) based on the U.S. federal statutory rate of 35% to the effective income tax rate is as follows: THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 2017 2016 2017 2016 Income (loss) before income tax provision (benefit) $ 5,956 $ (13,721 ) $ 23,347 $ (6,398 ) Statutory taxes (benefit) at 35.0% $ 2,085 $ (4,802 ) $ 8,171 $ (2,239 ) Percentage depletion (1,033 ) (7,889 ) (5,531 ) (12,034 ) State and local income taxes 119 (758 ) 187 (788 ) Domestic production deduction (75 ) (628 ) (371 ) (666 ) Non-deductible expenses (469 ) 991 168 1,701 Valuation allowances 1,923 1,673 1,692 1,690 Uncertain tax positions 7 190 55 (2,015 ) Other, net 68 (366 ) 193 381 Income tax provision (benefit) $ 2,625 $ (11,589 ) $ 4,564 $ (13,970 ) Effective income tax rate 44.1 % 84.5 % 19.5 % 218.3 % |
Other Events and Transactions (
Other Events and Transactions (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operation Results | Discontinued operations includes the following results of HBBHC for the three and nine months ended September 30, 2017 and 2016: THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 2017 2016 2017 2016 HBBHC Operating Statement Data: Revenues $ 181,713 $ 188,390 $ 474,971 $ 486,442 Cost of goods sold 133,586 138,329 353,436 364,052 Gross profit 48,127 50,061 121,535 122,390 Operating expenses (a) 40,697 36,583 114,379 110,117 Operating profit 7,430 13,478 7,156 12,273 Interest expense 423 286 1,300 1,115 Other expense, net 40 457 (939 ) 288 Income before income taxes 6,967 12,735 6,795 10,870 Income tax expense 2,708 4,003 2,655 3,323 HBBHC net income $ 4,259 $ 8,732 $ 4,140 $ 7,547 NACCO expenses related to the spin-off 1,664 — 2,759 — NACCO discontinued operations income tax expense (benefit) adjustments (2,472 ) 7,041 — 9,643 NACCO discontinued operations $ 5,067 $ 1,691 $ 1,381 $ (2,096 ) (a) HBBHC's operating profit includes the recognition of $2.5 million of expenses related to the spin-off in the three and nine months ended September 30, 2017. |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Coal | $ 14,695 | $ 13,137 |
Mining supplies | 15,885 | 15,790 |
Total inventories | $ 30,580 | $ 28,927 |
Stockholders' Equity Stockholde
Stockholders' Equity Stockholders' Equity (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2017 | May 10, 2016 | Oct. 31, 2015 | |
2016 Stock Repurchase Program | ||||
Class of Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 50,000,000 | |||
Amount available to be repurchased | $ 44,000,000 | $ 44,000,000 | ||
2013 Stock Repurchase Program | ||||
Class of Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 60,000,000 | |||
Shares Outstanding Class A | 2016 Stock Repurchase Program | ||||
Class of Stock [Line Items] | ||||
Shares repurchased (in shares) | 0 | 0 |
Fair Value Disclosure (On a Rec
Fair Value Disclosure (On a Recurring Basis) (Details) - Fair value measurements, recurring - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Level 1 | ||
Assets: | ||
Available for sale securities | $ 8,715 | $ 7,882 |
Assets at fair value | 8,715 | 7,882 |
Liabilities: | ||
Interest rate swap agreements | 0 | 0 |
Liabilities at fair value | 0 | 0 |
Level 2 | ||
Assets: | ||
Available for sale securities | 0 | 0 |
Assets at fair value | 0 | 0 |
Liabilities: | ||
Interest rate swap agreements | 3 | 339 |
Liabilities at fair value | 3 | 339 |
Level 3 | ||
Assets: | ||
Available for sale securities | 0 | 0 |
Assets at fair value | 0 | 0 |
Liabilities: | ||
Interest rate swap agreements | 0 | 0 |
Liabilities at fair value | 0 | 0 |
Total | ||
Assets: | ||
Available for sale securities | 8,715 | 7,882 |
Assets at fair value | 8,715 | 7,882 |
Liabilities: | ||
Interest rate swap agreements | 3 | 339 |
Liabilities at fair value | $ 3 | $ 339 |
Fair Value Disclosure (Narrativ
Fair Value Disclosure (Narrative) (Details) - Level 1 - Fair value measurements, recurring - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mine Water Treatment Trust | $ 8,715 | $ 7,882 |
Bellaire Corporation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mine Water Treatment Trust | $ 5,000 |
Unconsolidated Subsidiaries (Na
Unconsolidated Subsidiaries (Narrative) (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated subsidiaries and related tax positions | $ 27,281,000 | $ 31,054,000 |
Variable interest entity, reporting entity involvement, maximum risk of loss | 17,800,000 | 4,600,000 |
Other noncurrent assets | ||
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated subsidiaries and related tax positions | $ 27,300,000 | $ 31,100,000 |
Unconsolidated Subsidiaries (Sc
Unconsolidated Subsidiaries (Schedule) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Variable Interest Entity [Line Items] | ||||
Revenues | $ 21,941 | $ 32,402 | $ 78,341 | $ 85,778 |
Gross profit | 2,475 | 1,647 | 11,630 | 9,852 |
Variable interest entity, not primary beneficiary | ||||
Variable Interest Entity [Line Items] | ||||
Revenues | 203,134 | 178,009 | 571,862 | 483,360 |
Gross profit | 23,126 | 21,367 | 64,981 | 59,788 |
Income before income taxes | $ 16,602 | $ 14,755 | $ 45,928 | $ 41,122 |
Business Segments (Details)
Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 21,941 | $ 32,402 | $ 78,341 | $ 85,778 |
Operating profit (loss) | 6,989 | (12,779) | 26,307 | (952) |
Operating segments | NACoal | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 21,941 | 32,402 | 78,341 | 85,778 |
Operating profit (loss) | 8,925 | (10,912) | 31,127 | 3,653 |
Operating segments | NACCO and Other | ||||
Segment Reporting Information [Line Items] | ||||
Operating profit (loss) | $ (1,936) | $ (1,867) | $ (4,820) | $ (4,605) |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Income Tax Provision/(Benefit)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Income (loss) before income tax provision (benefit) | $ 5,956 | $ (13,721) | $ 23,347 | $ (6,398) |
Statutory taxes (benefit) at 35.0% | 2,085 | (4,802) | 8,171 | (2,239) |
Percentage depletion | (1,033) | (7,889) | (5,531) | (12,034) |
State and local income taxes | 119 | (758) | 187 | (788) |
Domestic production deduction | (75) | (628) | (371) | (666) |
Non-deductible expenses | (469) | 991 | 168 | 1,701 |
Valuation allowances | 1,923 | 1,673 | 1,692 | 1,690 |
Uncertain tax positions | 7 | 190 | 55 | (2,015) |
Other, net | 68 | (366) | 193 | 381 |
Income tax provision (benefit) | $ 2,625 | $ (11,589) | $ 4,564 | $ (13,970) |
Effective income tax rate | 44.10% | 84.50% | 19.50% | 218.30% |
Income Taxes Income Taxes (Narr
Income Taxes Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
U.S. federal statutory rate | 35.00% | 35.00% | 35.00% | 35.00% |
Discrete income tax expense | $ 1.9 | $ 1.6 |
Other Events and Transactions37
Other Events and Transactions (Narrative) (Details) - USD ($) $ in Thousands | Sep. 29, 2017 | Sep. 28, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Cash dividends received from Hamilton Beach Brands Holdings Co. | $ 38,000 | $ 10,000 | |||||
Aggregate impairment charge | $ 0 | $ 17,443 | 0 | 17,443 | |||
HBBHC | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Cash dividends received from Hamilton Beach Brands Holdings Co. | $ 35,000 | $ 3,000 | |||||
Net aggregate fees over term of TSA | $ 1,000 | ||||||
Non-deductible expenses | 1,700 | 2,800 | |||||
Centennial | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Fair value of assets held-for-sale | $ 5,000 | 5,000 | |||||
Aggregate impairment charge | $ 17,400 | ||||||
Spin-off | HBBHC | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Expenses related to spin-off | $ 2,500 | $ 2,500 |
Other Events and Transactions38
Other Events and Transactions (Discontinued Operation Results) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income tax expense | $ 236 | $ 11,044 | $ 2,655 | $ 12,966 |
Income (loss) from discontinued operations | 5,067 | 1,691 | 1,381 | (2,096) |
HBBHC | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Operating expenses (a) | 1,700 | 2,800 | ||
Spinoff | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income (loss) from discontinued operations | 5,067 | 1,691 | 1,381 | (2,096) |
Spinoff | HBBHC | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenues | 181,713 | 188,390 | 474,971 | 486,442 |
Cost of goods sold | 133,586 | 138,329 | 353,436 | 364,052 |
Gross profit | 48,127 | 50,061 | 121,535 | 122,390 |
Operating expenses (a) | 40,697 | 36,583 | 114,379 | 110,117 |
Operating profit | 7,430 | 13,478 | 7,156 | 12,273 |
Interest expense | 423 | 286 | 1,300 | 1,115 |
Other expense, net | 40 | 457 | (939) | 288 |
Income before income taxes | 6,967 | 12,735 | 6,795 | 10,870 |
Income tax expense | 2,708 | 4,003 | 2,655 | 3,323 |
HBBHC net income | 4,259 | 8,732 | 4,140 | 7,547 |
NACCO expenses related to the spin-off | 1,664 | 0 | 2,759 | 0 |
NACCO discontinued operations income tax expense (benefit) adjustments | $ (2,472) | $ 7,041 | $ 0 | $ 9,643 |