Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 23, 2018 | Jun. 30, 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-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 300,826,762 | ||
Shares Outstanding Class A | |||
Entity Information [Line Items] | |||
Shares Outstanding | 5,362,773 | ||
Shares Outstanding Class B | |||
Entity Information [Line Items] | |||
Shares Outstanding | 1,570,146 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Revenue - consolidated mines | $ 92,008 | $ 104,953 | $ 140,317 |
Revenue - royalty and other | 12,770 | 6,128 | 7,681 |
Total revenues | 104,778 | 111,081 | 147,998 |
Cost of sales - consolidated mines | 85,657 | 96,374 | 156,092 |
Cost of sales - royalty and other | 2,202 | 2,625 | 3,138 |
Total cost of sales | 87,859 | 98,999 | 159,230 |
Gross profit (loss) | 16,919 | 12,082 | (11,232) |
Earnings of unconsolidated mines | 61,361 | 55,238 | 48,432 |
Operating expenses | |||
Selling, general and administrative expenses | 47,491 | 48,863 | 40,105 |
Centennial asset impairment charge | 982 | 17,443 | 0 |
Amortization of intangible assets | 2,123 | 2,503 | 2,606 |
(Gain) loss on sale of assets | (5,130) | 170 | (1,784) |
Operating Expenses | 45,466 | 68,979 | 40,927 |
Operating profit (loss) | 32,814 | (1,659) | (3,727) |
Other expense (income) | |||
Interest expense | 3,440 | 4,318 | 4,962 |
Income from other unconsolidated affiliates | (1,246) | (1,221) | (2,040) |
Closed mine obligations | 1,590 | (214) | 919 |
Other, net, including interest income | (72) | 2,151 | (331) |
Other (income) expense | 3,712 | 5,034 | 3,510 |
Income (loss) from continuing operations before income tax provision (benefit) | 29,102 | (6,693) | (7,237) |
Income tax provision (benefit) from continuing operations | 639 | (9,649) | (9,510) |
Income from continuing operations | 28,463 | 2,956 | 2,273 |
Discontinued operations, net of tax expense of $2,162, $14,512 and $12,325 in 2017, 2016 and 2015, respectively | 1,874 | 26,651 | 19,711 |
Net income | $ 30,337 | $ 29,607 | $ 21,984 |
Basic earnings per share: | |||
Continuing operations (USD per share) | $ 4.17 | $ 0.43 | $ 0.32 |
Discontinued operations (USD per share) | 0.27 | 3.91 | 2.82 |
Basic earnings per share (USD per share) | 4.44 | 4.34 | 3.14 |
Diluted earnings per share: | |||
Continuing operations (USD per share) | 4.14 | 0.43 | 0.32 |
Discontinued operations (USD per share) | 0.27 | 3.89 | 2.81 |
Diluted earnings per share (USD per share) | $ 4.41 | $ 4.32 | $ 3.13 |
Basic weighted average shares outstanding (in shares) | 6,830 | 6,818 | 7,001 |
Diluted weighted average shares outstanding (in shares) | 6,873 | 6,854 | 7,022 |
Consolidated Statements of Ope3
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Discontinued operations, net of tax expense of $2,162, $14,512 and $12,325 in 2017, 2016 and 2015, respectively | $ 2,162 | $ 14,512 | $ 12,325 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||||||||||
Net income | $ 10,172 | $ 8,398 | $ 6,789 | $ 4,978 | $ 24,131 | $ (441) | $ 3,115 | $ 2,802 | $ 30,337 | $ 29,607 | $ 21,984 |
Other comprehensive income (loss) | |||||||||||
Foreign currency translation adjustment | 1,725 | (2,078) | (2,756) | ||||||||
Deferred gain on available for sale securities, net of tax | 834 | 413 | 17 | ||||||||
Current period cash flow hedging activity, net of $941 tax expense in 2017, $73 tax benefit in 2016 and $357 tax benefit in 2015 | 1,543 | (252) | (577) | ||||||||
Reclassification of hedging activities into earnings, net of $1,255 tax expense in 2017, $419 tax benefit in 2016 and $191 tax benefit in 2015 | (2,369) | 757 | 409 | ||||||||
Current period pension and postretirement plan adjustment, net of $440 tax expense in 2017, $1,098 tax benefit in 2016 and $1,222 tax benefit in 2015 | 749 | (2,011) | (1,204) | ||||||||
Reclassification of pension and postretirement adjustments into earnings, net of $363 tax benefit in 2017, $408 tax benefit in 2016 and $420 tax benefit in 2015 | 582 | 688 | 856 | ||||||||
Total other comprehensive income (loss) | 3,064 | (2,483) | (3,255) | ||||||||
Comprehensive income | $ 33,401 | $ 27,124 | $ 18,729 |
Consolidated Statements of Com5
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Current period cash flow hedging activity, tax benefit | $ 941 | $ (73) | $ (357) |
Reclassification of hedging activities into earnings, tax benefit | 1,255 | (419) | (191) |
Current period pension and postretirement plan adjustment, tax benefit | 440 | (1,098) | (1,222) |
Reclassification of pension and post retirement adjustments into earnings, tax benefit | $ (363) | $ (408) | $ (420) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 101,600 | $ 69,308 |
Accounts receivable, net of allowances of $1,523 in 2017 and 2016 | 17,468 | 13,389 |
Accounts receivable from affiliates | 19,919 | 7,404 |
Inventories, net | 30,015 | 28,927 |
Assets held for sale | 0 | 2,016 |
Prepaid expenses and other | 7,986 | 8,273 |
Current assets of discontinued operations | 0 | 252,415 |
Total current assets | 176,988 | 381,732 |
Property, plant and equipment, net | 120,068 | 115,106 |
Intangibles, net | 43,554 | 45,678 |
Deferred income taxes | 5,962 | 10,876 |
Investment in unconsolidated subsidiaries | 16,335 | 31,054 |
Deferred costs | 3,582 | 2,069 |
Other non-current assets | 23,063 | 23,089 |
Long-term assets of discontinued operations | 0 | 58,417 |
Total assets | 389,552 | 668,021 |
Current liabilities | ||
Accounts payable | 7,575 | 6,995 |
Accounts payable to affiliates | 1,925 | 3,565 |
Revolving credit agreements | 15,000 | 0 |
Asset retirement obligations | 3,092 | 3,843 |
Current maturities of long-term debt | 1,125 | 1,744 |
Accrued payroll | 17,204 | 15,482 |
Other current liabilities | 8,055 | 9,954 |
Current liabilities of discontinued operations | 0 | 180,245 |
Total current liabilities | 53,976 | 221,828 |
Long-term debt | 42,021 | 94,295 |
Asset retirement obligations | 37,005 | 38,262 |
Pension and other postretirement obligations | 11,827 | 14,271 |
Deferred compensation | 12,939 | 13,578 |
Other long-term liabilities | 12,336 | 9,737 |
Long-term liabilities of discontinued operations | 0 | 55,757 |
Total liabilities | 170,104 | 447,728 |
Common stock: | ||
Capital in excess of par value | 4,447 | 0 |
Retained earnings | 216,490 | 239,441 |
Accumulated other comprehensive loss | (8,341) | (25,927) |
Total stockholders’ equity | 219,448 | 220,293 |
Total liabilities and equity | 389,552 | 668,021 |
Class A Common Stock | ||
Common stock: | ||
Common stock | 5,282 | 5,208 |
Class B Common Stock | ||
Common stock: | ||
Common stock | $ 1,570 | $ 1,571 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) $ in Thousands | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares |
Statement of Financial Position [Abstract] | ||
Allowances for account receivable | $ | $ 1,523 | $ 1,523 |
Class A Common Stock | ||
Common stock, par value (in usd per share) | $ / shares | $ 1 | $ 1 |
Common stock, shares outstanding (in shares) | shares | 5,282,106 | 5,207,955 |
Class B Common Stock | ||
Common stock, par value (in usd per share) | $ / shares | $ 1 | $ 1 |
Common stock, shares outstanding (in shares) | shares | 1,570,146 | 1,570,915 |
Common stock, convertible conversion ratio | 1 | 1 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Activities | |||
Net income | $ 30,337 | $ 29,607 | $ 21,984 |
Income from discontinued operations | 1,874 | 26,651 | 19,711 |
Income from continuing operations | 28,463 | 2,956 | 2,273 |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | |||
Depreciation, depletion and amortization | 12,767 | 13,050 | 17,372 |
Amortization of deferred financing fees | 471 | 371 | 845 |
Deferred income taxes | 4,089 | 10,910 | (5,262) |
Centennial asset impairment charge | 982 | 17,443 | 0 |
(Gain) loss on sale of assets | (5,130) | 170 | (1,784) |
Other | 15,823 | 3,049 | 2,113 |
Working capital changes: | |||
Affiliates receivable/payable | 516 | (992) | (3,630) |
Accounts receivable | (9,311) | (8,670) | 58,644 |
Inventories | (1,129) | 6,708 | 9,726 |
Other current assets | (982) | (1,925) | 3,863 |
Accounts payable | 1,049 | 207 | (5,007) |
Income taxes receivable/payable | 1,063 | (3,372) | (2,425) |
Other current liabilities | 334 | (8,533) | 4,786 |
Net cash provided by operating activities of continuing operations | 49,005 | 31,372 | 81,514 |
Net cash (used for) provided by operating activities of discontinued operations | (7,700) | 62,563 | 26,488 |
Net cash provided by operating activities | 41,305 | 93,935 | 108,002 |
Investing Activities | |||
Expenditures for property, plant and equipment | (15,704) | (10,165) | (4,444) |
Proceeds from the sale of assets | 3,956 | 7,983 | 3,430 |
Other | 1,088 | (1,710) | (734) |
Net cash used for investing activities of continuing operations | (10,660) | (3,892) | (1,748) |
Net cash used for investing activities of discontinued operations | (4,345) | (5,925) | (6,543) |
Net cash used for investing activities | (15,005) | (9,817) | (8,291) |
Financing Activities | |||
Reductions of long-term debt | (6,047) | (2,564) | (2,829) |
Net reductions to revolving credit agreements | (30,000) | (20,000) | (80,000) |
Cash dividends paid | (6,682) | (7,262) | (7,296) |
Cash dividends received from Hamilton Beach Brands Holding Co. (See Note 3) | 38,000 | 42,000 | 15,000 |
Purchase of treasury shares | 0 | (6,044) | (24,010) |
Other | (1,324) | (3) | 922 |
Net cash (used for) provided by financing activities of continuing operations | (6,053) | 6,127 | (98,213) |
Net cash (used for) provided by financing activities of discontinued operations | 3,747 | (61,837) | (10,088) |
Net cash used for financing activities | (2,306) | (55,710) | (108,301) |
Effect of exchange rate changes on cash of discontinued operations | 71 | (259) | (46) |
Cash and Cash Equivalents | |||
Total increase (decrease) for the year | 24,065 | 28,149 | (8,636) |
Net decrease (increase) related to discontinued operations | 8,227 | 5,458 | (9,811) |
Balance at the beginning of the year | 69,308 | 35,701 | 54,148 |
Balance at the end of the year | $ 101,600 | $ 69,308 | $ 35,701 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Total Stockholders' Equity | Common StockClass A Common Stock | Common StockClass B Common Stock | 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, 2014 | $ 211,474 | $ 5,662 | $ 1,573 | $ 0 | $ 224,428 | $ (2,699) | $ 1,463 | $ 56 | $ (19,009) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock-based compensation | 2,241 | 45 | 2,196 | |||||||
Purchase of treasury shares | (24,010) | (443) | (2,196) | (21,371) | ||||||
Conversion of Class B to Class A shares | 0 | 1 | (1) | |||||||
Net income (loss) | $ 21,984 | 21,984 | 21,984 | |||||||
Cash dividends on common stock | (7,296) | (7,296) | ||||||||
Current period other comprehensive income (loss) | (4,520) | (2,756) | 17 | (577) | (1,204) | |||||
Reclassification adjustment to net income | 1,265 | 409 | 856 | |||||||
Balance, end 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 | 5,337 | 51 | 5,286 | |||||||
Purchase of treasury shares | (6,044) | (109) | (5,286) | (649) | ||||||
Conversion of Class B to Class A shares | 0 | 1 | (1) | |||||||
Net income (loss) | 29,607 | 29,607 | 29,607 | |||||||
Cash dividends on common stock | (7,262) | (7,262) | ||||||||
Current period other comprehensive income (loss) | (3,928) | (2,078) | 413 | (252) | (2,011) | |||||
Reclassification adjustment to net income | 1,445 | 757 | 688 | |||||||
Balance, end 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 | 4,520 | 73 | 4,447 | |||||||
Conversion of Class B to Class A shares | 0 | 1 | (1) | |||||||
Net income (loss) | 30,337 | 30,337 | 30,337 | |||||||
Cash dividends on common stock | (6,682) | (6,682) | ||||||||
Current period other comprehensive income (loss) | 4,851 | 1,725 | 834 | 1,543 | 749 | |||||
Reclassification adjustment to net income | (1,787) | (2,369) | 582 | |||||||
Hamilton Beach Brands Holding Company stock dividend (See Note 3) | $ (32,084) | (46,606) | 5,808 | 433 | 8,281 | |||||
Balance, end of period at Dec. 31, 2017 | $ 219,448 | $ 5,282 | $ 1,570 | $ 4,447 | $ 216,490 | $ 0 | $ 2,727 | $ 0 | $ (11,068) |
Consolidated Statements of Eq10
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends on Class A and Class B common stock (in usd per share) | $ 0.9775 | $ 1.0650 | $ 1.0450 |
Principles of Consolidation and
Principles of Consolidation and Nature of Operations | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation and Nature of Operations | Principles of Consolidation and Nature of Operations The Consolidated Financial Statements include the accounts of NACCO Industries, Inc. (the parent company or “NACCO”) and its wholly owned subsidiaries (“NACCO Industries, Inc. and Subsidiaries” or the “Company”). Intercompany accounts and transactions are eliminated in consolidation. NACCO is the public holding company for The North American Coal Corporation. The North American Coal Corporation and its affiliated companies (collectively, “NACoal”) operate surface mines that supply coal primarily to power generation companies under long-term contracts, and provide other value-added services to natural resource companies. In addition, its North American Mining ("NAM") business maintains and operates draglines and other equipment under contracts with sellers of aggregates. On September 29, 2017, the Company spun-off Hamilton Beach Brands Holding Company ("HBBHC"), a former wholly owned subsidiary. As a result of the spin-off, NACCO stockholders received one share of HBBHC Class A common stock and one share of HBBHC Class B common stock for each share of NACCO Class A or Class B common stock owned on the record date for the spin-off. 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. 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”), Mississippi Lignite Mining Company (“MLMC”) and The Sabine Mining Company (“Sabine”). Liberty Fuels Company, LLC ("Liberty") ceased all mining and delivery of lignite in 2017 and will commence mine reclamation in 2018. All of the operating coal mining subsidiaries other than MLMC are unconsolidated (collectively the "Unconsolidated Mines"). The unconsolidated coal mining subsidiaries 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. 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. The contracts with the customers of the unconsolidated subsidiaries eliminate exposure to spot coal market price fluctuations and are based on a "management fee" approach, whereby compensation includes reimbursement of all operating costs, plus a fee based on the amount of coal or limerock delivered. The fees earned adjust over time in line with various indices which reflect general U.S. inflation rates. 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 at the end of 2015, is also a consolidated entity. NAM provides value-added services for independently owned limerock quarries and is reimbursed by its customers based on actual costs plus a management fee per unit of limerock delivered. The financial results for NAM are included in the consolidated mining operations or unconsolidated mining operations based on each 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 18 for further discussion. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Use of Estimates: The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and judgments. These estimates and judgments affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities (if any) at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents: Cash and cash equivalents include cash in banks and highly liquid investments with original maturities of three months or less. Inventories: NACoal inventories are stated at the lower of cost or net realizable value. The weighted average method is used for inventory. Property, Plant and Equipment, Net: Property, plant and equipment are initially recorded at cost. Depreciation, depletion and amortization are provided in amounts sufficient to amortize the cost of the assets, including assets recorded under capital leases, over their estimated useful lives using the straight-line method. Buildings and building improvements are depreciated over the life of the mine, which is generally 30 years. Estimated lives for machinery and equipment range from three to 15 years . The units-of-production method is used to amortize certain coal-related assets based on estimated recoverable tonnages. Repairs and maintenance costs are generally expensed when incurred. Asset retirement costs associated with asset retirement obligations are capitalized with the carrying amount of the related long-lived asset and depreciated over the asset's estimated useful life. Long-Lived Assets: The Company periodically evaluates long-lived assets for impairment when changes in circumstances or the occurrence of certain events indicate the carrying amount of an asset may not be recoverable. Upon identification of indicators of impairment, the Company evaluates the carrying value of the asset by comparing the estimated future undiscounted cash flows generated from the use of the asset and its eventual disposition with the asset's net carrying value. If the carrying value of an asset is considered impaired, an impairment charge is recorded for the amount that the carrying value of the long-lived asset exceeds its fair value. Fair value is estimated as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Coal Supply Agreement: The coal supply agreement represents a long-term supply agreement with a NACoal customer and was recorded based on the fair value at the date of acquisition. The coal supply agreement is amortized based on units of production over the term of the agreement, which is estimated to be 30 years . The Company reviews identified intangible assets for impairment when changes in circumstances or the occurrence of certain events indicate potential impairment. Self-insurance Liabilities: The Company is generally self-insured for medical claims, certain workers’ compensation claims and certain closed mine liabilities. An estimated provision for claims reported and for claims incurred but not yet reported under the self-insurance programs is recorded and revised periodically based on industry trends, historical experience and management judgment. In addition, industry trends are considered within management's judgment for valuing claims. Changes in assumptions for such matters as legal judgments and settlements, inflation rates, medical costs and actual experience could cause estimates to change in the near term. Revenue Recognition: Revenues are generally recognized when title transfers and risk of loss passes to the customer. Under its mining contracts, the Company recognizes revenue as the coal or limerock is delivered or services are performed. Stock Compensation: The Company maintains long-term incentive programs. The parent company has stock compensation plans that allow the grant of shares of Class A common stock, subject to restrictions, as a means of retaining and rewarding selected employees for long-term performance and to increase ownership in the Company. Shares awarded under the plans are fully vested and entitle the stockholder to all rights of common stock ownership except that shares may not be assigned, pledged or otherwise transferred during the restriction period. In general, the restriction period ends at the earliest of (i) five years after the participant's retirement date, (ii) ten years from the award date, or (iii) the participant's death or permanent disability. Pursuant to the plans, the Company issued 92,572 and 62,425 shares related to the years ended December 31, 2017 and 2016 , respectively. After the issuance of these shares, there were 407,428 shares of Class A common stock available for issuance under these plans. Compensation expense related to these share awards was $3.5 million ( $2.3 million net of tax), $4.3 million ( $2.8 million net of tax) and $1.7 million ( $1.1 million net of tax) for the years ended December 31, 2017 , 2016 and 2015 , respectively. Compensation expense represents fair value based on the market price of the shares of Class A common stock at the grant date. The Company also has a stock compensation plan for non-employee directors of the Company under which a portion of the annual retainer for each non-employee director is paid in restricted shares of Class A common stock. For the three months ended December 31, 2017 , $22,500 of the non-employee director's annual retainer of $37,500 was paid in restricted shares of Class A common stock. For the nine months ended September 30, 2017, $66,750 of the non-employee director's annual retainer of $108,750 was paid in restricted shares of Class A common stock. For the year ended December 31, 2016 , $82,000 of the non-employee director's annual retainer of $138,000 was paid in restricted shares of Class A common stock. For the year ended December 31, 2015 , $75,000 of the non-employee director's annual retainer of $131,000 was paid in restricted shares of Class A common stock. Shares awarded under the plan are fully vested and entitle the stockholder to all rights of common stock ownership except that shares may not be assigned, pledged or otherwise transferred during the restriction period. In general, the restriction period ends at the earliest of (i) ten years from the award date, (ii) the date of the director's death or permanent disability, (iii) five years (or earlier with the approval of the Board of Directors) after the director's date of retirement from the Board of Directors, or (iv) the date the director has both retired from the Board of Directors and has reached age 70 . Pursuant to this plan, the Company issued 18,643 , 10,690 and 11,496 shares related to the years ended December 31, 2017 , 2016 and 2015 , respectively. In addition to the mandatory retainer fee received in restricted stock, directors may elect to receive shares of Class A common stock in lieu of cash for up to 100% of the balance of their annual retainer, committee retainer and any committee chairman's fees. These voluntary shares are not subject to any restrictions. Total shares issued under voluntary elections were 2,746 in 2017 , 2,282 in 2016 , and 2,553 in 2015 . After the issuance of these shares, there were 81,570 shares of Class A common stock available for issuance under this plan. Compensation expense related to these awards was $0.9 million ( $0.6 million net of tax), $0.9 million ( $0.6 million net of tax) and $0.7 million ( $0.5 million net of tax) for the years ended December 31, 2017 , 2016 and 2015 , respectively. Compensation expense represents fair value based on the market price of the shares of Class A common stock at the grant date. Financial Instruments and Derivative Financial Instruments: Financial instruments held by the Company include cash and cash equivalents, accounts receivable, accounts payable, revolving credit agreements, long-term debt and interest rate swap agreements. The Company uses interest rate swap agreements to partially reduce risks related to floating rate financing agreements that are subject to changes in the market rate of interest. Terms of the interest rate swap agreements require the Company to receive a variable interest rate and pay a fixed interest rate. The Company's interest rate swap agreements and its variable rate financings are predominately based upon LIBOR (London Interbank Offered Rate). The Company does not hold or issue financial instruments or derivative financial instruments for trading purposes. Beginning in 2017, gains and losses for the interest rate swap agreements held by the Company were no longer deferred in AOCI, but were recorded in the Consolidated Statement of Operations. See Note 9 for further discussion of fair value measurements, including derivative financial instruments. Fair Value Measurements: The Company accounts for the fair value measurement of its financial assets and liabilities in accordance with U.S. generally accepted accounting principles, which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. Described below are the three levels of inputs that may be used to measure fair value: Level 1 - Quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities. Level 2 - Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. Level 3 - Unobservable inputs are used when little or no market data is available. The hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The classification of fair value measurements within the hierarchy is based upon the lowest level of input that is significant to the measurement. See Note 9 for further discussion of fair value measurements. 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 adopted 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 developed a project plan with respect to its implementation of this standard, including identification of revenue streams and review of contracts and procedures currently in place. The Company completed its review of customer contracts at its NACoal subsidiary, including the contracts for the Company’s Unconsolidated Mines. 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. During the fourth quarter of 2017, the Company completed its evaluation of ASC 606, including identifying and implementing changes to processes and controls to meet the standard's updated reporting and disclosure requirements, including the calculation of the cumulative effect of adopting ASC 606. There were no significant changes to accounting systems or controls upon adoption of ASC 606. The Company assessed the goods and services promised in its contracts with customers and identified a performance obligation for each promised good or service that is distinct. Each mine has a contract with its respective customer that represents a contract under ASC 606. For its consolidated entities, NACoal’s performance obligations vary by contract and consist of the following: At MLMC, each MMBtu delivered during the production period is considered a separate performance obligation. Revenue is recognized at the point in time that control of each MMBtus of lignite transfers to the customer. Fluctuations in revenue from period to period generally result from changes in customer demand. At NAM entities, the management service to oversee the maintenance and operation of the draglines and other mining equipment and delivery of limerock is the performance obligation, which is accounted for as a series. As each month of service is completed, revenue is recognized for the amount of actual costs incurred, plus the management fee and the general and administrative fee (as applicable). Fluctuations in revenue from period to period result from changes in customer demand and variances in reimbursable costs primarily associated with production levels on individual contracts. NACoal enters into royalty contracts which grant the lessee the right to explore, develop, produce and sell minerals controlled by the Company. These arrangements result in the transfer of mineral rights to the lessee for a period of time to permit access for purposes of exploration, development, and production. The mineral rights revert back to NACoal at the expiration of the contracts. Under these royalty contracts, NACoal’s grant to the lessee of rights to minerals is the performance obligation. The performance obligation under these contracts represents a series of distinct goods or services whereby each day of access that is provided is distinct. The transaction price consists of a variable sales based royalty and in certain arrangements a fixed component in the form of an up-front lease bonus payment. As the amount of consideration the Company will ultimately be entitled to is entirely susceptible to factors outside its control, the entire amount of variable consideration is constrained at contract inception. The fixed portion of the transaction price will be recognized over the initial term of the contract which is generally five years. The adoption of ASC 606 will result in the establishment of a $2.6 million contract liability and a $2.1 million cumulative effect adjustment to beginning retained earnings (net of tax of $0.5 million ) as of January 1, 2018 to reflect the impact of changing the accounting for lease bonus payments received under certain royalty contracts. The Company does not expect any other changes to the timing of revenue recognition under ASC 606. 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 adoption of this guidance will not have a material effect on the Company’s financial position, results of operations, cash flows and related disclosures. Reclassifications: As a result of the spin-off and the reclassification of HBBHC to discontinued operations, certain amounts in the prior periods’ Consolidated Financial Statements have been reclassified to conform to the current period's presentation. |
Other Events and Transactions
Other Events and Transactions | 12 Months Ended |
Dec. 31, 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 in the first six months of 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 provides 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 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 $2.8 million during 2017, which are reflected as discontinued operations in the Consolidated Statement of Operations. Discontinued operations includes the following results of HBBHC for the three years ended December 31: 2017 2016 2015 HBBHC Operating Statement Data: Revenues $ 474,971 $ 745,357 $ 767,862 Cost of goods sold 353,436 551,586 577,134 Gross profit 121,535 193,771 190,728 Operating expenses (a) 114,379 150,397 155,174 Operating profit 7,156 43,374 35,554 Interest expense 1,300 1,374 1,962 Other expense, net (939 ) 837 1,556 Income before income taxes 6,795 41,163 32,036 Income tax expense 2,655 14,984 12,325 HBBHC net income $ 4,140 $ 26,179 $ 19,711 NACCO expenses related to the spin-off 2,759 — — NACCO discontinued operations income tax expense (benefit) adjustments (493 ) (472 ) — NACCO discontinued operations, net of tax $ 1,874 $ 26,651 $ 19,711 (a) HBBHC's operating profit includes the recognition of $2.5 million of expenses related to the spin-off in 2017. Centennial: 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 Company recognized aggregate impairment charges of $17.4 million and $1.0 million during 2016 and 2017, respectively. The carrying value of coal land and real estate and the assets held for sale were zero as of December 31, 2017. The asset impairment charges were recorded as "Centennial asset impairment charge" in the Consolidated Statements of Operations. See Note 9 for further discussion of the Company's asset impairment charges. During 2017, 2016 and 2015, revisions were made to Centennial's asset retirement obligations due to revised estimated cash flows and the timing of those cash flows, resulting in (income)/expense of $(2.8) million , $(0.3) million and $7.5 million , respectively. See Note 7 for further discussion of the Company's asset retirement obligations. Other: During the fourth quarter of 2016, NACoal recorded a $3.3 million charge related to the resolution of a legal matter. This charge is recorded on the line "Selling, general and administrative expenses" in the Consolidated Statements of Operations. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are summarized as follows: December 31 2017 2016 Coal $ 13,416 $ 13,137 Mining supplies 16,599 15,790 Total inventories $ 30,015 $ 28,927 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net Property, plant and equipment, net includes the following: December 31 2017 2016 Coal lands and real estate: NACoal $ 53,576 $ 48,636 NACCO and Other 469 469 54,045 49,105 Plant and equipment: NACoal 151,145 141,440 NACCO and Other 2,531 5,007 153,676 146,447 Property, plant and equipment, at cost 207,721 195,552 Less allowances for depreciation, depletion and amortization 87,653 80,446 $ 120,068 $ 115,106 Total depreciation, depletion and amortization expense on property, plant and equipment was $10.6 million , $10.5 million and $14.8 million during 2017 , 2016 and 2015 , respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets other than goodwill, which are subject to amortization, consist of the following: Gross Carrying Amount Accumulated Amortization Net Balance Balance at December 31, 2017 Coal supply agreement $ 84,200 $ (40,646 ) $ 43,554 Balance at December 31, 2016 Coal supply agreement $ 84,200 $ (38,522 ) $ 45,678 Amortization expense for intangible assets was $2.1 million , $2.5 million and $2.6 million in 2017 , 2016 and 2015 , respectively. Expected annual amortization expense of NACoal's coal supply agreement for the next five years is as follows: $3.0 million in 2018 and 2019 and $3.1 million in 2020 , 2021 and 2022 , respectively. The coal supply agreement is amortized based on units of production over the term of the agreement, which is estimated to be 30 years. |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Asset Retirement Obligations NACoal's asset retirement obligations are principally for costs to dismantle certain mining equipment at the end of the life of the mine as well as for costs to close its surface mines and reclaim the land it has disturbed as a result of its normal mining activities. The Company determined the amounts of these obligations based on estimates adjusted for inflation, projected to the estimated closure dates, and then discounted using a credit-adjusted risk-free interest rate. The accretion of the liability is being recognized over the estimated life of each individual asset retirement obligation and is recorded in the line “Cost of sales” in the accompanying Consolidated Statements of Operations. The associated asset is recorded in “Property, Plant and Equipment, net” in the accompanying Consolidated Balance Sheets. 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. These legacy liabilities include obligations for water treatment and other environmental remediation that arose as part of the normal course of closing these underground mining operations. The Company determined the amounts of these obligations based on estimates adjusted for inflation and then discounted the amounts using a credit-adjusted risk-free interest rate. The accretion of the liability is recognized over the estimated life of the asset retirement obligation and is recorded in the line “Closed mine obligations” in the accompanying Consolidated Statements of Operations. Since Bellaire's properties are no longer active operations, no associated asset has been capitalized. A reconciliation of the Company's beginning and ending aggregate carrying amount of the asset retirement obligations are as follows: NACCO Consolidated Balance at January 1, 2016 $ 43,592 Liabilities settled during the period (2,321 ) Accretion expense 2,659 Revision of estimated cash flows (1,825 ) Balance at December 31, 2016 $ 42,105 Liabilities incurred during the period 277 Liabilities settled during the period (2,430 ) Accretion expense 2,749 Revision of estimated cash flows (2,604 ) Balance at December 31, 2017 $ 40,097 Asset retirement obligations totaled $40.1 million at December 31, 2017 , of which, $3.1 million is included in current liabilities on the line "Asset retirement obligations" and $37.0 million in long-term liabilities on the line "Asset retirement obligations" in the Consolidated Balance Sheets. Prior to 2015, Bellaire established a $5.0 million Mine Water Treatment Trust to provide a financial assurance mechanism in order to assure the long-term treatment of post-mining discharges. The fair value of the Mine Water Treatment assets, which are recognized as a component of "Other Non-Current Assets" on the Consolidated Balance Sheets, are $9.2 million at December 31, 2017 and are legally restricted for purposes of settling the Bellaire asset retirement obligation. See Note 9 for further discussion of fair value measurements. |
Current and Long-Term Financing
Current and Long-Term Financing | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Current and Long-Term Financing | Current and Long-Term Financing Financing arrangements are obtained and maintained at the subsidiary level. NACCO has not guaranteed any borrowings of its subsidiaries. The following table summarizes the Company's available and outstanding borrowings: December 31 2017 2016 Total outstanding borrowings of NACoal: Revolving credit agreement $ 50,000 $ 80,000 Capital lease obligations and other term loans 8,146 16,039 Total debt outstanding $ 58,146 $ 96,039 Current portion of borrowings outstanding $ 16,125 $ 1,744 Long-term portion of borrowings outstanding 42,021 94,295 $ 58,146 $ 96,039 Total available borrowings, net of limitations, under revolving credit agreement $ 148,591 $ 223,933 Unused revolving credit agreement $ 98,591 $ 143,933 Weighted average stated interest rate on total borrowings 3.8 % 2.9 % Weighted average effective interest rate on total borrowings (including interest rate swap agreements) 3.6 % 3.4 % Annual maturities of total debt, excluding capital leases, are as follows: 2018 $ 15,213 2019 223 2020 237 2021 250 2022 35,263 Thereafter 5,598 $ 56,784 Including swap settlements, interest paid on total debt was $3.9 million , $4.7 million and $5.3 million during 2017 , 2016 and 2015 , respectively. NACoal: NACoal has an unsecured revolving line of credit of up to $150.0 million (the “NACoal Facility”) that expires in August 2022. Borrowings outstanding under the NACoal Facility were $50.0 million at December 31, 2017 . At December 31, 2017 , the excess availability under the NACoal Facility was $98.6 million , which reflects a reduction for outstanding letters of credit of $1.4 million . The NACoal Facility has performance-based pricing, which sets interest rates based upon NACoal achieving various levels of debt to EBITDA ratios, as defined in the NACoal Facility. Borrowings bear interest at a floating rate plus a margin based on the level of debt to EBITDA ratio achieved. The applicable margins, effective December 31, 2017 , for base rate and LIBOR loans were 1.00% and 2.00% , respectively. The NACoal Facility has a commitment fee which is based upon achieving various levels of debt to EBITDA ratios. The commitment fee was 0.35% on the unused commitment at December 31, 2017 . The weighted average interest rate applicable to the NACoal Facility at December 31, 2017 was 3.39% including the floating rate margin and the effect of the interest rate swap agreement. The NACoal Facility contains restrictive covenants, which require, among other things, NACoal to maintain a maximum debt to EBITDA ratio of 3.00 to 1.00 and an interest coverage ratio of not less than 4.00 to 1.00. The NACoal Facility provides the ability to make loans, dividends and advances to NACCO, with some restrictions based on maintaining a maximum debt to EBITDA ratio of 2.00 to 1.00, or if greater than 2.00 to 1.00, a Fixed Charge Coverage Ratio of 1.10 to 1.00, in conjunction with maintaining unused availability thresholds of borrowing capacity, as defined in the NACoal Facility, of $15.0 million . At December 31, 2017 , NACoal was in compliance with all financial covenants in the NACoal Facility. |
Fair Value Disclosure
Fair Value Disclosure | 12 Months Ended |
Dec. 31, 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 December 31, 2017 (Level 1) (Level 2) (Level 3) Assets: Available for sale securities $ 9,166 $ 9,166 $ — $ — Interest rate swap agreements 42 — 42 — $ 9,208 $ 9,166 $ 42 $ — Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Active Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs Description December 31, 2016 (Level 1) (Level 2) (Level 3) Assets: Available for sale securities $ 7,882 $ 7,882 $ — $ — $ 7,882 $ 7,882 $ — $ — Liabilities: Interest rate swap agreements $ 339 $ — $ 339 $ — $ 339 $ — $ 339 $ — 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. See Note 7 for further discussion of Bellaire's Mine Water Treatment Trust. NACoal has interest rate swaps that hedge interest payments on its one-month LIBOR borrowings.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 exchange rates and interest rates, respectively. There were no transfers into or out of Levels 1, 2 or 3 during the year ended December 31, 2017 . Nonrecurring Fair Value Measurements : 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. The Company recognized aggregate impairment charges of $17.4 million and $1.0 million during 2016 and 2017, respectively. The carrying value of coal land and real estate and the assets held for sale were zero as of December 31, 2017. The asset impairment charges were recorded as "Centennial asset impairment charge" in the Consolidated Statements of Operations. Other Fair Value Measurement Disclosures: The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to the short-term maturities of these instruments. The fair values of revolving credit agreements and long-term debt, excluding capital leases, were determined using current rates offered for similar obligations taking into account subsidiary credit risk, which is Level 2 as defined in the fair value hierarchy. At December 31, 2017 and December 31, 2016 , both the fair value and the book value of revolving credit agreements and long-term debt, excluding capital leases, was $56.7 million and $87.4 million , respectively. Financial instruments that potentially subject the Company to concentration of credit risk consist principally of accounts receivable and derivatives. Under its mining contracts, NACoal recognizes revenue and a related receivable as coal or limerock is delivered or predevelopment services are provided. These mining contracts provide for monthly settlements. NACoal's significant credit concentration is uncollateralized; however, historically minimal credit losses have been incurred. To further reduce credit risk associated with accounts receivable, the Company performs periodic credit evaluations of its customers, but does not generally require advance payments or collateral. The Company enters into derivative contracts with high-quality financial institutions and limits the amount of credit exposure to any one institution. |
Leasing Arrangements
Leasing Arrangements | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Leasing Arrangements | Leasing Arrangements The Company leases certain offices, warehouse facilities and machinery and equipment under noncancellable capital and operating leases that expire at various dates through 2031. Many leases include renewal and/or fair value purchase options. Future minimum capital and operating lease payments at December 31, 2017 are: Capital Leases Operating Leases 2018 $ 938 $ 3,359 2019 437 2,126 2020 21 1,929 2021 — 1,662 2022 — 1,059 Subsequent to 2022 — 2,329 Total minimum lease payments 1,396 $ 12,464 Amounts representing interest 34 Present value of net minimum lease payments 1,362 Current maturities 912 Long-term capital lease obligation $ 450 Rental expense for all operating leases was $4.9 million , $7.4 million and $9.8 million in 2017 , 2016 and 2015 , respectively. The Company also recognized $0.6 million , $0.4 million and $0.3 million in 2017 , 2016 and 2015 , respectively, for rental income on subleases of equipment and buildings under operating leases in which it was the lessee. Assets recorded under capital leases are included in property, plant and equipment and consist of the following: December 31 2017 2016 Plant and equipment $ 4,807 $ 4,807 Less accumulated depreciation 3,730 3,129 $ 1,077 $ 1,678 Depreciation of plant and equipment under capital leases is included in depreciation expense in each of the years ended December 31, 2017 , 2016 and 2015 . |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 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, environmental 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. Litigation During the fourth quarter of 2016, NACoal recorded a $3.3 million charge related to the resolution of a legal matter. This charge is recorded on the line "Selling, general and administrative expenses" in the Consolidated Statements of Operations. |
Stockholders' Equity and Earnin
Stockholders' Equity and Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Stockholders' Equity and Earnings Per Share | Stockholders' Equity and Earnings Per Share NACCO Industries, Inc. Class A common stock is traded on the New York Stock Exchange under the ticker symbol “NC.” Because of transfer restrictions on Class B common stock, no trading market has developed, or is expected to develop, for the Company's Class B common stock. The Class B common stock is convertible into Class A common stock on a one-for-one basis at any time at the request of the holder. The Company's Class A common stock and Class B common stock have the same cash dividend rights per share. As the liquidation and dividend rights are identical, any distribution of earnings would be allocated to Class A and Class B stockholders on a proportionate basis, and accordingly the net income per share for each class of common stock is identical. The Class A common stock has one vote per share and the Class B common stock has ten votes per share. The total number of authorized shares of Class A common stock and Class B common stock at December 31, 2017 was 25,000,000 shares and 6,756,176 shares, respectively. Treasury shares of Class A common stock totaling 2,937,644 and 3,007,334 at December 31, 2017 and 2016 , respectively, have been deducted from shares outstanding. Stock Repurchase Programs: During 2017, the Company did not repurchase any shares of its Class A Common Stock. Under past stock repurchase programs, the Company has repurchased 1,855,923 shares of Class A Common Stock for an aggregate purchase price of $101.7 million . Stock Compensation: See Note 2 for a discussion of the Company's restricted stock awards. Amounts Reclassified out of Accumulated Other Comprehensive Income: The following table summarizes the amounts reclassified out of AOCI and recognized in the Consolidated Statement of Operations: Amount reclassified from AOCI Details about AOCI components 2017 2016 2015 Location of loss (gain) reclassified from AOCI into income (In thousands) Loss (gain) on cash flow hedging Foreign exchange contracts $ (158 ) $ (11 ) $ (860 ) Cost of sales Interest rate contracts (3,466 ) 1,187 1,460 Interest expense (3,624 ) 1,176 600 Total before income tax expense Tax effect 1,255 (419 ) (191 ) Income tax expense (benefit) $ (2,369 ) $ 757 $ 409 Net of tax Pension and postretirement plan Actuarial loss $ 955 $ 1,145 $ 1,333 (a) Prior-service credit (10 ) (49 ) (57 ) (a) 945 1,096 1,276 Total before income tax expense Tax effect (363 ) (408 ) (420 ) Income tax benefit $ 582 $ 688 $ 856 Net of tax Total reclassifications for the period $ (1,787 ) $ 1,445 $ 1,265 Net of tax (a) NACCO and NACoal's AOCI components are included in the computation of pension and postretirement expense. See Note 14 for a discussion of the Company's pension and postretirement expense. Earnings per Share: The weighted average number of shares of Class A common stock and Class B common stock outstanding used to calculate basic and diluted earnings per share were as follows: 2017 2016 2015 Basic weighted average shares outstanding 6,830 6,818 7,001 Dilutive effect of restricted stock awards 43 36 21 Diluted weighted average shares outstanding 6,873 6,854 7,022 Basic earnings per share: Continuing operations $ 4.17 $ 0.43 $ 0.32 Discontinued operations $ 0.27 $ 3.91 $ 2.82 Basic earnings per share $ 4.44 $ 4.34 $ 3.14 Diluted earnings per share: Continuing operations $ 4.14 $ 0.43 $ 0.32 Discontinued operations $ 0.27 $ 3.89 $ 2.81 Diluted earnings per share $ 4.41 $ 4.32 $ 3.13 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income (loss) from continuing operations before income tax provision (benefit) and the income tax provision (benefit) for the years ended December 31 are as follows: 2017 2016 2015 Income (loss) before income tax provision (benefit) Domestic $ 31,454 $ (4,251 ) $ (4,894 ) Foreign (2,352 ) (2,442 ) (2,343 ) $ 29,102 $ (6,693 ) $ (7,237 ) Income tax provision (benefit) Current income tax provision (benefit): Federal $ (3,885 ) $ (20,847 ) $ (4,526 ) State 435 288 278 Total current (3,450 ) (20,559 ) (4,248 ) Deferred income tax provision (benefit): Federal 6,588 10,935 (6,230 ) State (2,499 ) (25 ) 968 Total deferred 4,089 10,910 (5,262 ) $ 639 $ (9,649 ) $ (9,510 ) The Company made income tax payments from continuing operations of $5.2 million , $0.4 million and $9.0 million during 2017 , 2016 and 2015 , respectively. During the same periods, income tax refunds totaled $0.3 million , $2.4 million and $0.1 million , respectively. On December 22, 2017, the U.S. government enacted the Tax Cuts and Jobs Act (“TCJA”), which significantly revises U.S. tax law. The TCJA will positively impact the Company’s ongoing effective tax rate due to the reduction of the U.S. corporate tax rate from 35 percent to 21 percent, effective January 1, 2018. In addition to the reduction of the U.S. federal corporate tax rate mentioned above, other significant changes to existing tax law include (1) elimination of the alternative minimum tax regime for corporations; (2) limitations on the deductibility of certain executive compensation for publicly traded companies; (3) accelerated expensing of capital investment, subject to phase-out beginning in 2023; (4) a new limitation on deductible interest expense; and (5) changes in utilization of net operating losses generated after December 31, 2017, specifically, elimination of ability to carryback losses against prior years’ income, limited to offsetting 80 percent of taxable income in the year of utilization, and may be indefinitely carried forward to future tax years. Subsequent to the enactment of the TCJA, the SEC staff issued Staff Accounting Bulletin 118 (“SAB 118”), which provides a measurement period of up to one year after the enactment date for companies to finalize the recognition of the income tax effects of the TCJA. As a result of the TCJA and pursuant to SAB 118, the Company has provisionally recorded a discrete net tax benefit of $3.1 million in the period ending December 31, 2017. This net benefit is attributable to the corporate rate reduction on existing deferred tax assets and liabilities. The Company has also provisionally recorded $0 for sequestration on refundable alternative minimum tax credits, as the Company expects to use the available credits to offset tax liability so that sequestration would not apply. Further, the Company has provisionally recorded $0 for excess executive remuneration expense disallowance of its long-term incentive plan payments in future years, as the covered employee recipients are not expected to exceed the $1 million disallowance threshold. The ultimate impact of TCJA may differ from these provisional amounts due to, among other things, additional analysis, changes in interpretations and assumptions, additional regulatory guidance that may be issued, and the computation of state income taxes as there is uncertainty on conformity to the federal tax system following the TCJA. The Company expects it will be able to finalize these provisional amounts at the time it files its 2017 federal income tax return in the fourth quarter of 2018. A reconciliation of the federal statutory and effective income tax rate from continuing operations for the years ended December 31 is as follows: 2017 2016 2015 Income (loss) from continuing operations before income tax provision (benefit) $ 29,102 $ (6,693 ) $ (7,237 ) Statutory taxes (benefit) at 35.0% $ 10,186 $ (2,343 ) $ (2,533 ) State and local income taxes 493 (1,676 ) (1,332 ) Valuation allowances (1,453 ) 2,432 2,480 Non-deductible expenses 224 1,334 424 Percentage depletion (6,253 ) (6,373 ) (8,406 ) R&D and other federal credits 301 278 (896 ) Tax settlements 74 (3,161 ) 551 Provisional effect of the TCJA (3,132 ) — — Other, net 199 (140 ) 202 Income tax provision (benefit) $ 639 $ (9,649 ) $ (9,510 ) Effective income tax rate from continuing operations 2.2 % 144.2 % 131.4 % The Company applies the intraperiod tax allocation rules as described in ASC 740-20 “Intraperiod Tax Allocation” to allocate the provision for income taxes between continuing operations and discontinued operations. As a result of the spin-off of HBBHC, the Company used the “with and without” approach to compute total tax income expense (benefit). The Company calculated income tax expense from all financial statement components (continuing operations and discontinued operations), the “with” approach, and compared that to the income tax expense (benefit) attributable to continuing operations, the “without” approach. The difference between the “with” and “without” was allocated to discontinued operations. While intraperiod tax allocations do not change the overall tax provision, it resulted in a gross-up of the individual components, thereby changing the amount of tax provision included in each category of income. A detailed summary of the total deferred tax assets and liabilities in the Company's Consolidated Balance Sheets resulting from differences in the book and tax basis of assets and liabilities follows: December 31 2017 2016 Deferred tax assets Tax carryforwards $ 22,035 $ 21,527 Inventories 1,878 3,389 Accrued expenses and reserves 11,723 18,750 Partnership investment - development costs — 3,719 Other employee benefits 4,640 5,130 Other 8,933 14,737 Total deferred tax assets 49,209 67,252 Less: Valuation allowance 13,579 12,881 35,630 54,371 Deferred tax liabilities Depreciation and depletion 23,029 42,512 Partnership investment - development costs 4,069 — Accrued pension benefits 2,570 983 Total deferred tax liabilities 29,668 43,495 Net deferred asset $ 5,962 $ 10,876 The following table summarizes the tax carryforwards and associated carryforward periods and related valuation allowances where the Company has determined that realization is uncertain: December 31, 2017 Net deferred tax asset Valuation allowance Carryforwards expire during: Non-U.S. net operating loss $ 1,438 $ 1,438 2024-2025 State losses 16,948 13,054 2018-2037 Research credit 1,870 — 2034-2037 Alternative minimum tax credit 5,335 — (1) Total $ 25,591 $ 14,492 (1) The TCJA repealed the corporate alternative minimum tax for tax years beginning after December 31, 2017. This credit is refundable in 2021, if not fully utilized prior to 2021. December 31, 2016 Net deferred tax asset Valuation allowance Carryforwards expire during: Non-U.S. net operating loss $ 732 $ 732 2024 State losses 15,299 13,350 2017-2036 Research credit 2,754 — 2034-2036 Alternative minimum tax credit 8,035 — Indefinite Total $ 26,820 $ 14,082 The Company has a valuation allowance for certain state and foreign deferred tax assets. Based upon the review of historical earnings and the relevant expiration of carryforwards, including utilization limitations in the various state taxing jurisdictions, the Company believes the valuation allowances are appropriate and does not expect to release valuation allowances within the next twelve months that would have a significant effect on the Company's financial position or results of operations. The tax returns of the Company and certain of its subsidiaries are under routine examination by various taxing authorities. The Company has not been informed of any material assessment for which an accrual has not been previously provided and the Company would vigorously contest any material assessment. Management believes any potential adjustment would not materially affect the Company's financial condition or results of operations. The following is a reconciliation of the Company's total gross unrecognized tax benefits, defined as the aggregate tax effect of differences between tax return positions and the benefits recognized in the financial statements for the years ended December 31, 2017 and 2016 . Approximately $0.8 million and $0.8 million of these gross amounts as of December 31, 2017 and 2016 , respectively, relate to permanent items that, if recognized, would impact the effective income tax rate. This amount differs from the gross unrecognized tax benefits presented in the table below due to the decrease in U.S. federal income taxes which would occur upon the recognition of the state tax benefits included herein. 2017 2016 2015 Balance at January 1 $ 915 $ 3,671 $ 3,285 Additions based on tax positions related to prior years — 181 (256 ) Additions based on tax positions related to the current year 82 211 642 Reductions due to settlements with taxing authorities — (1,330 ) — Reductions due to lapse of the applicable statute of limitations — (1,818 ) — Balance at December 31 $ 997 $ 915 $ 3,671 The Company records interest and penalties on uncertain tax positions as a component of the income tax provision. The Company recognized net (benefit)/expense of $(0.7) million and $0.2 million in interest and penalties related to uncertain tax positions during 2016 and 2015, respectively. The total amount of interest and penalties accrued was $0.1 million and $0.1 million as of December 31, 2017 and 2016 , respectively. The Company expects the amount of unrecognized tax benefits will change within the next 12 months; however, the change in unrecognized tax benefits, which is reasonably possible within the next 12 months, is not expected to have a significant effect on the Company's financial position, results of operations or cash flows. In general, the Company operates in taxing jurisdictions that provide a statute of limitations period ranging from three to five years for the taxing authorities to review the applicable tax filings. The examination of the 2013-2015 U.S. federal tax returns is ongoing. The Company does not have any additional material taxing jurisdictions in which the statute of limitations has been extended beyond the applicable time frame allowed by law. |
Retirement Benefit Plans
Retirement Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Retirement Benefit Plans | Retirement Benefit Plans Defined Benefit Plans: The Company maintains defined benefit pension plans that provide benefits based on years of service and average compensation during certain periods. Prior to 2015 , the Company amended the Combined Defined Benefit Plan for NACCO Industries, Inc. and its subsidiaries (the “Combined Plan”) to freeze pension benefits for all employees. The Company also amended the Supplemental Retirement Benefit Plan (the “SERP”) to freeze all pension benefits. Certain executive officers also maintain accounts under various deferred compensation plans that were frozen prior to 2015 . See Note 20 for further discussion of certain deferred compensation plans. All eligible employees of the Company, including employees whose pension benefits are frozen, receive retirement benefits under defined contribution retirement plans. The assumptions used in accounting for the defined benefit plans were as follows for the years ended December 31 : 2017 2016 2015 Weighted average discount rates for pension benefit obligation 3.40% - 3.55% 3.75% - 4.00% 3.90% - 4.20% Weighted average discount rates for net periodic benefit cost 3.40% - 4.00% 3.90% - 4.20% 3.65% - 3.95% Expected long-term rate of return on assets for net periodic benefit cost 7.50 % 7.50 % 7.75 % Set forth below is a detail of the net periodic pension expense (income) for the defined benefit plans for the years ended December 31 : 2017 2016 2015 Interest cost $ 1,746 $ 1,757 $ 1,713 Expected return on plan assets (2,843 ) (2,789 ) (2,733 ) Amortization of actuarial loss 363 415 495 Amortization of prior service cost 58 58 50 Settlements 76 90 — Net periodic pension income $ (600 ) $ (469 ) $ (475 ) Set forth below is detail of other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss for the years ended December 31 : 2017 2016 2015 Current year actuarial (gain) loss $ (1,343 ) $ 2,573 $ 955 Amortization of actuarial loss (363 ) (415 ) (495 ) Amortization of prior service cost (58 ) (58 ) (50 ) Settlements (76 ) (90 ) — Total recognized in other comprehensive (income) loss $ (1,840 ) $ 2,010 $ 410 The following table sets forth the changes in the benefit obligation and the plan assets during the year and the funded status of the defined benefit plans at December 31 : 2017 2016 Change in benefit obligation Projected benefit obligation at beginning of year $ 45,318 $ 43,559 Interest cost 1,746 1,757 Actuarial loss (gain) 1,275 2,134 Benefits paid (2,019 ) (1,811 ) Settlements (255 ) (321 ) Projected benefit obligation at end of year $ 46,065 $ 45,318 Accumulated benefit obligation at end of year $ 46,065 $ 45,318 Change in plan assets Fair value of plan assets at beginning of year $ 34,628 $ 37,162 Actual return on plan assets 5,461 (1,157 ) Employer contributions 712 755 Benefits paid (2,019 ) (1,811 ) Settlements (255 ) (321 ) Fair value of plan assets at end of year $ 38,527 $ 34,628 Funded status at end of year $ (7,538 ) $ (10,690 ) Amounts recognized in the balance sheets consist of: Noncurrent assets $ 2,051 $ 1,387 Current liabilities (700 ) (721 ) Non-current liabilities (8,889 ) (11,356 ) $ (7,538 ) $ (10,690 ) Components of accumulated other comprehensive loss (income) consist of: Actuarial loss $ 15,363 $ 17,145 Prior service cost 937 995 Deferred taxes (6,481 ) (7,127 ) $ 9,819 $ 11,013 The actuarial loss and prior service cost included in accumulated other comprehensive income (loss) expected to be recognized in net periodic benefit cost in 2018 are $0.5 million ( $0.4 million net of tax) and less than $0.1 million , respectively. The Company recognizes as a component of benefit cost (income), as of the measurement date, any unrecognized actuarial net gains or losses that exceed 10% of the larger of the projected benefit obligations or the plan assets, defined as the "corridor." Amounts outside the corridor are amortized over the average expected remaining service of active participants expected to benefit under the retiree medical plans or over the average expected remaining lifetime of inactive participants for the pension plans. The (gain) loss amounts recognized in AOCI are not expected to be fully recognized until the plan is terminated or as settlements occur, which would trigger accelerated recognition. Prior service costs resulting from plan changes are also in AOCI. The Company's policy is to make contributions to fund its pension plans within the range allowed by applicable regulations. The Company maintains one supplemental defined benefit plan that pays monthly benefits to participants directly out of corporate funds. All other pension benefit payments are made from assets of the pension plans. Future pension benefit payments expected to be paid from assets of the pension plans are: 2018 $ 2,537 2019 2,478 2020 2,559 2021 2,671 2022 2,768 2023 - 2027 14,222 $ 27,235 The expected long-term rate of return on defined benefit plan assets reflects management's expectations of long-term rates of return on funds invested to provide for benefits included in the projected benefit obligations. In establishing the expected long-term rate of return assumption for plan assets, the Company considers the historical rates of return over a period of time that is consistent with the long-term nature of the underlying obligations of these plans as well as a forward-looking rate of return. The historical and forward-looking rates of return for each of the asset classes used to determine the Company's estimated rate of return assumption were based upon the rates of return earned or expected to be earned by investments in the equivalent benchmark market indices for each of the asset classes. Expected returns for pension plans are based on a calculated market-related value for pension plan assets. Under this methodology, asset gains and losses resulting from actual returns that differ from the Company's expected returns are recognized in the market-related value of assets ratably over three years. The pension plans maintain investment policies that, among other things, establish a portfolio asset allocation methodology with percentage allocation bands for individual asset classes. The investment policies provide that investments are reallocated between asset classes as balances exceed or fall below the appropriate allocation bands. The following is the actual allocation percentage and target allocation percentage for the pension plan assets at December 31: 2017 2016 Target Allocation Range U.S. equity securities 47.2 % 46.4 % 36.0% - 54.0% Non-U.S. equity securities 21.1 % 19.6 % 16.0% - 24.0% Fixed income securities 31.4 % 33.6 % 30.0% - 40.0% Money market 0.3 % 0.4 % 0.0% - 10.0% The defined benefit pension plans do not have any direct ownership of NACCO common stock. The fair value of each major category of the Company's pension plan assets are valued using quoted market prices in active markets for identical assets, or Level 1 in the fair value hierarchy. Following are the values as of December 31 : Level 1 2017 2016 U.S. equity securities $ 18,175 $ 16,054 Non-U.S. equity securities 8,120 6,792 Fixed income securities 12,097 11,657 Money market 135 125 Total $ 38,527 $ 34,628 Postretirement Health Care: The Company also maintains health care plans which provide benefits to grandfathered eligible retired employees. All health care plans of the Company have a cap on the Company's share of the costs. These plans have no assets. Under the Company's current policy, plan benefits are funded at the time they are due to participants. The assumptions used in accounting for the postretirement health care plans are set forth below for the years ended December 31 : 2017 2016 2015 Weighted average discount rates for benefit obligation 3.10 % 3.25 % 3.40 % Weighted average discount rates for net periodic benefit cost 3.25 % 3.40 % 3.25 % Health care cost trend rate assumed for next year 7.0 % 7.3 % 7.3 % Rate to which the cost trend rate is assumed to decline (ultimate trend rate) 5.0 % 5.0 % 5.0 % Year that the rate reaches the ultimate trend rate 2025 2025 2025 Assumed health care cost trend rates can have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in the assumed health care cost trend rates would have the following effects at December 31, 2017 : 1-Percentage-Point Increase 1-Percentage-Point Decrease Effect on total of service and interest cost $ 12 $ (11 ) Effect on postretirement benefit obligation $ 254 $ (235 ) Set forth below is a detail of the net periodic benefit expense for the postretirement health care plans for the years ended December 31 : 2017 2016 2015 Service cost $ 50 $ 70 $ 70 Interest cost 101 116 113 Amortization of actuarial loss 97 132 91 Amortization of prior service credit (17 ) (107 ) (107 ) Net periodic benefit expense $ 231 $ 211 $ 167 Set forth below is a detail of other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) for the years ended December 31 : 2017 2016 2015 Current year actuarial loss (gain) $ 154 $ (25 ) $ 226 Amortization of actuarial loss (97 ) (132 ) (91 ) Amortization of prior service credit 17 107 107 Total recognized in other comprehensive income (loss) $ 74 $ (50 ) $ 242 The following sets forth the changes in benefit obligations during the year and the funded status of the postretirement health care at December 31 : 2017 2016 Change in benefit obligation Benefit obligation at beginning of year $ 3,211 $ 3,466 Service cost 50 70 Interest cost 101 116 Actuarial loss (gain) 154 (25 ) Benefits paid (295 ) (416 ) Benefit obligation at end of year $ 3,221 $ 3,211 Funded status at end of year $ (3,221 ) $ (3,211 ) Amounts recognized in the balance sheets consist of: Current liabilities $ (282 ) $ (294 ) Noncurrent liabilities (2,939 ) (2,917 ) $ (3,221 ) $ (3,211 ) Components of accumulated other comprehensive loss (income) consist of: Actuarial loss $ 1,040 $ 983 Prior service credit (78 ) (95 ) Deferred taxes 287 284 $ 1,249 $ 1,172 The actuarial loss and prior service credit included in accumulated other comprehensive income (loss) expected to be recognized in net periodic benefit cost in 2018 is $0.1 million (less than $0.1 million net of tax) and less than $0.1 million , respectively. Future postretirement health care benefit payments expected to be paid are: 2018 $ 281 2019 323 2020 357 2021 357 2022 324 2023 - 2027 1,395 $ 3,037 Defined Contribution Plans: NACCO and its subsidiaries maintain defined contribution (401(k)) plans for substantially all employees and provide employer matching contributions based on plan provisions. The defined contribution retirement plans provide for a minimum employer contribution. Certain plans also permit additional contributions whereby the applicable company's contribution to participants is determined annually based on a formula that includes the effect of actual compared with targeted operating results and the age and/or compensation of the participants. Total costs, including Company contributions, for these plans were $4.5 million , $4.0 million and $3.8 million in 2017 , 2016 and 2015 , respectively. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments NACCO is a holding company that operates primarily in the mining industry. The Company’s wholly owned subsidiary, NACoal, is the reportable operating segment. See Note 1 for a discussion of the Company's industries and product lines. 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. All operations reside in the U.S. The accounting policies of the reportable segments are described in Note 2 . The majority of NACoal's revenues are generated from its consolidated mining operations and value-added mining services. MLMC's customer, KMRC RH, LLC until April 30, 2016 and Choctaw Generation Limited Partnership, LLLP subsequent to April 30, 2016, accounted for approximately 60% , 69% and 57% of NACoal's revenues for the years ended December 31, 2017 , 2016 and 2015 , respectively. NAM's largest customer, Cemex Construction Materials of Florida, LLC, accounted for approximately 18% and 16% of NACoal's revenues for the year ended December 31, 2017 and 2016 , respectively. Centennial's largest customer was the Alabama Coal Cooperative and accounted for approximately 16% of NACoal's revenues for the year ended December 31, 2015 . The loss of or significant reduction in sales to any key customer could result in significant decreases in NACoal's revenue and profitability and an inability to sustain or grow its business. The management fees charged to NACoal represent an allocation of corporate overhead of the parent company. The Company believes the allocation method is reasonable. Management fees included in NACoal's Selling, general and administrative expenses were $5.8 million , $7.4 million and $5.3 million for 2017 , 2016 and 2015 , respectively. In addition, prior to the spin-off of HBBHC, NACCO received management fees from HBBHC of $3.0 million , $4.1 million and $3.9 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. In connection with the spin-off of HBBHC, the Company and HBBHC entered into a TSA. See Note 3 for further discussion of the spin-off and TSA. 2017 2016 2015 Revenues from external customers $ 104,778 $ 111,081 $ 147,998 Gross profit (loss) NACoal $ 17,198 $ 12,341 $ (10,816 ) NACCO and Other (279 ) (259 ) (416 ) Total $ 16,919 $ 12,082 $ (11,232 ) Earnings of unconsolidated mines $ 61,361 $ 55,238 $ 48,432 Selling, general and administrative expenses, including Amortization of intangible assets NACoal $ 42,516 $ 44,347 $ 38,867 NACCO and Other 7,098 7,019 3,844 Total $ 49,614 $ 51,366 $ 42,711 Operating profit (loss) NACoal $ 39,677 $ 5,619 $ 521 NACCO and Other (6,863 ) (7,278 ) (4,248 ) Total $ 32,814 $ (1,659 ) $ (3,727 ) 2017 2016 2015 Total assets NACoal $ 277,538 $ 287,011 $ 303,138 NACCO and Other 135,434 109,022 64,069 Discontinued Operations — 311,171 310,051 Eliminations (23,420 ) (39,183 ) (21,850 ) Total $ 389,552 $ 668,021 $ 655,408 Depreciation, depletion and amortization NACoal $ 12,444 $ 12,682 $ 17,067 NACCO and Other 323 368 305 Total $ 12,767 $ 13,050 $ 17,372 Capital expenditures NACoal $ 15,692 $ 10,109 $ 4,116 NACCO and Other 12 56 328 Total $ 15,704 $ 10,165 $ 4,444 |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | Quarterly Results of Operations (Unaudited) A summary of the unaudited results of operations for the year ended December 31 is as follows: 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Revenues $ 28,300 $ 28,100 $ 21,941 $ 26,437 Gross profit $ 4,558 $ 4,597 $ 2,475 $ 5,289 Earnings of unconsolidated mines $ 14,955 $ 13,475 $ 16,197 $ 16,734 Operating profit (loss) NACoal $ 11,326 $ 10,876 $ 8,925 $ 8,550 NACCO and Other (1,520 ) (1,363 ) (1,936 ) (2,044 ) $ 9,806 $ 9,513 $ 6,989 $ 6,506 Income from continuing operations, net of tax $ 8,220 $ 7,233 $ 3,331 $ 9,679 Discontinued operations, net of tax (3,242 ) (444 ) 5,067 493 Net income $ 4,978 $ 6,789 $ 8,398 $ 10,172 Basic earnings (loss) per share: Continuing operations $ 1.21 $ 1.06 $ 0.49 $ 1.41 Discontinued operations (0.48 ) (0.06 ) 0.74 0.07 Basic earnings per share $ 0.73 $ 1.00 $ 1.23 $ 1.48 Diluted earnings (loss) per share: Continuing operations $ 1.20 $ 1.06 $ 0.49 $ 1.40 Discontinued operations (0.47 ) (0.06 ) 0.74 0.07 Diluted earnings per share $ 0.73 $ 1.00 $ 1.23 $ 1.47 2016 First Quarter Second Quarter Third Quarter Fourth Quarter Revenues $ 30,287 $ 23,089 $ 32,402 $ 25,303 Gross profit $ 5,968 $ 2,237 $ 1,647 $ 2,230 Earnings of unconsolidated mines $ 12,648 $ 13,035 $ 15,102 $ 14,453 Operating profit (loss) NACoal (1) (2) $ 9,742 $ 4,823 $ (10,912 ) $ 1,966 NACCO and Other (1,441 ) (1,297 ) (1,867 ) (2,673 ) $ 8,301 $ 3,526 $ (12,779 ) $ (707 ) Income (loss) from continuing operations, net of tax $ 7,760 $ 1,944 $ (2,132 ) $ (4,616 ) Discontinued operations, net of tax (4,958 ) 1,171 1,691 28,747 Net income (loss) $ 2,802 $ 3,115 $ (441 ) $ 24,131 Basic earnings (loss) per share: Continuing operations $ 1.13 $ 0.28 $ (0.31 ) $ (0.68 ) Discontinued operations (0.72 ) 0.17 0.25 4.24 Basic earnings (loss) per share $ 0.41 $ 0.45 $ (0.06 ) $ 3.56 Diluted earnings (loss) per share: Continuing operations $ 1.13 $ 0.28 $ (0.31 ) $ (0.68 ) Discontinued operations (0.72 ) 0.17 0.25 4.21 Diluted earnings (loss) per share $ 0.41 $ 0.45 $ (0.06 ) $ 3.53 (1) During the fourth quarter of 2016, NACoal recorded a $3.3 million charge related to the resolution of a legal matter. This charge is recorded on the line "Selling, general and administrative expenses" in the Consolidated Statements of Operations. (2) During the third quarter of 2016, NACoal recorded a non-cash impairment charge of $17.4 million related to Centennial assets. See Note 3 and Note 9 for further discussion of the Company's asset impairment charge. |
Parent Company Condensed Balanc
Parent Company Condensed Balance Sheets | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Parent Company Condensed Balance Sheets | Parent Company Condensed Balance Sheets The condensed balance sheets of NACCO, the parent company, at December 31 are as follows: 2017 2016 ASSETS Cash and cash equivalents $ 94,646 $ 57,917 Accounts receivable from affiliates 9,189 — Other current assets 1,714 2,518 Investment in subsidiaries HBB — 44,057 KC — 21,394 NACoal 141,174 105,645 Other, primarily Bellaire 13,340 14,463 154,514 185,559 Property, plant and equipment, net 310 935 Other non-current assets 9,550 13,870 Total Assets $ 269,923 $ 260,799 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities $ 7,627 $ 7,055 Current intercompany accounts payable, net 11,858 1,406 Note payable to Bellaire 17,850 18,100 Deferred compensation 12,939 13,578 Other non-current liabilities 201 367 Stockholders’ equity 219,448 220,293 Total Liabilities and Stockholders’ Equity $ 269,923 $ 260,799 The credit agreement at NACoal allows for the transfer of assets to NACCO under certain circumstances. The amount of NACCO's investment in NACoal and Bellaire that was restricted at December 31, 2017 totaled approximately $1.8 million . The amount of unrestricted cash available to NACCO included in “Investment in subsidiaries” was $0.3 million at December 31, 2017 . Dividends and management fees from its subsidiaries are the primary sources of cash for NACCO. SCHEDULE I—CONDENSED FINANCIAL INFORMATION OF THE PARENT NACCO INDUSTRIES, INC. AND SUBSIDIARIES PARENT COMPANY CONDENSED BALANCE SHEETS December 31 2017 2016 (In thousands) ASSETS Cash and cash equivalents $ 94,646 $ 57,917 Accounts receivable from affiliates 9,189 — Other current assets 1,714 2,518 Investment in subsidiaries HBB — 44,057 KC — 21,394 NACoal 141,174 105,645 Other, primarily Bellaire 13,340 14,463 154,514 185,559 Property, plant and equipment, net 310 935 Other non-current assets 9,550 13,870 Total Assets $ 269,923 $ 260,799 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities $ 7,627 $ 7,055 Current intercompany accounts payable, net 11,858 1,406 Note payable to Bellaire 17,850 18,100 Deferred compensation 12,939 13,578 Other non-current liabilities 201 367 Stockholders’ equity 219,448 220,293 Total Liabilities and Stockholders’ Equity $ 269,923 $ 260,799 See Notes to Parent Company Condensed Financial Statements. SCHEDULE I—CONDENSED FINANCIAL INFORMATION OF THE PARENT NACCO INDUSTRIES, INC. AND SUBSIDIARIES PARENT COMPANY CONDENSED STATEMENTS OF COMPREHENSIVE INCOME Year Ended December 31 2017 2016 2015 (In thousands) (Income) expense: Intercompany interest expense $ 1,256 $ 1,285 $ 1,309 Other, net (314 ) (332 ) (270 ) 942 953 1,039 Administrative and general expenses 6,466 6,881 3,704 Loss before income taxes (7,408 ) (7,834 ) (4,743 ) Income tax benefit (366 ) (2,295 ) (1,496 ) Net loss before equity in earnings of subsidiaries (7,042 ) (5,539 ) (3,247 ) Equity in earnings of subsidiaries 35,505 8,495 5,520 Income from continuing operations 28,463 2,956 2,273 Discontinued operations, net of tax $ 1,874 $ 26,651 $ 19,711 Net income 30,337 29,607 21,984 Foreign currency translation adjustment 1,725 (2,078 ) (2,756 ) Deferred gain on available for sale securities, net of tax 834 413 17 Current period cash flow hedging activity, net of $941 tax expense in 2017, $73 tax benefit in 2016 and $357 tax benefit in 2015 1,543 (252 ) (577 ) Reclassification of hedging activities into earnings, net of $1,255 tax expense in 2017, $419 tax benefit in 2016 and $191 tax benefit in 2015 (2,369 ) 757 409 Current period pension and postretirement plan adjustment, net of $440 tax expense in 2017, $1,098 tax benefit in 2016 and $1,222 tax benefit in 2015 749 (2,011 ) (1,204 ) Reclassification of pension and postretirement adjustments into earnings, net of $363 tax benefit in 2017, $408 tax benefit in 2016 and $420 tax benefit in 2015 582 688 856 Total other comprehensive income (loss) 3,064 (2,483 ) (3,255 ) Comprehensive Income $ 33,401 $ 27,124 $ 18,729 See Notes to Parent Company Condensed Financial Statements. SCHEDULE I—CONDENSED FINANCIAL INFORMATION OF THE PARENT NACCO INDUSTRIES, INC. AND SUBSIDIARIES PARENT COMPANY CONDENSED STATEMENTS OF CASH FLOWS Year Ended December 31 2017 2016 2015 (In thousands) Operating Activities Income from continuing operations $ 28,463 $ 2,956 $ 2,273 Equity in earnings of subsidiaries 35,505 8,495 5,520 Parent company only net loss (7,042 ) (5,539 ) (3,247 ) Net changes related to operating activities 7,881 2,684 (11,015 ) Net cash provided by (used for) operating activities 839 (2,855 ) (14,262 ) Investing Activities Proceeds from the sale of assets 834 — — Expenditures for property, plant and equipment (12 ) (25 ) (328 ) Net cash used for investing activities 822 (25 ) (328 ) Financing Activities Dividends received from subsidiaries 4,000 52,200 15,000 Dividends received from Hamilton Beach Brands Holding Company 38,000 — — Notes payable to Bellaire (250 ) (600 ) — Purchase of treasury shares — (6,044 ) (24,010 ) Cash dividends paid (6,682 ) (7,262 ) (7,296 ) Other — (3 ) (13 ) Net cash provided by (used for) financing activities 35,068 38,291 (16,319 ) Cash and cash equivalents Increase (decrease) for the period 36,729 35,411 (30,909 ) Balance at the beginning of the period 57,917 22,506 53,415 Balance at the end of the period $ 94,646 $ 57,917 $ 22,506 See Notes to Parent Company Condensed Financial Statements. SCHEDULE I—CONDENSED FINANCIAL INFORMATION OF THE PARENT NACCO INDUSTRIES, INC. AND SUBSIDIARIES NOTES TO PARENT COMPANY CONDENSED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2017 , 2016 AND 2015 The notes to Consolidated Financial Statements, incorporated in Item 15 of this Form 10-K, are hereby incorporated by reference into these Notes to Parent Company Condensed Financial Statements. NOTE A — ACCOUNTING POLICIES NACCO Industries, Inc. (the parent company or “NACCO”) is a holding company that operates primarily in the mining industry. In the Parent Company Condensed Financial Statements, NACCO's investment in subsidiaries is stated at cost plus equity in undistributed earnings of subsidiaries since the date of acquisition. NACCO's share of net income of unconsolidated subsidiaries is included in net income using the equity method. Parent Company financial statements should be read in conjunction with the Company's consolidated financial statements. NOTE B — LONG-TERM OBLIGATIONS AND GUARANTEES It is NACCO's policy not to guarantee the debt of NACoal. NOTE C — UNRESTRICTED CASH The amount of unrestricted cash available to NACCO, included in “Investment in subsidiaries,” was $0.3 million at December 31, 2017 and was in addition to the $94.6 million of cash included in the Parent Company Condensed Balance Sheet at December 31, 2017 . |
Unconsolidated Subsidiaries
Unconsolidated Subsidiaries | 12 Months Ended |
Dec. 31, 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 income taxes resulting from the operations of the unconsolidated subsidiaries are solely the responsibility of the Company. The pre-tax income from the unconsolidated subsidiaries, excluding NoDak, is reported on the line “Earnings of unconsolidated mines” in the Consolidated Statements of Operations, with related income taxes included in the provision for income taxes. The Company has included the pre-tax earnings of the unconsolidated subsidiaries, excluding NoDak, above operating profit as they are an integral component of the Company's business and operating results. 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. The investment in the unconsolidated subsidiaries and related tax positions totaled $16.3 million and $31.1 million at December 31, 2017 and 2016 , respectively. The Company's maximum risk of loss relating to these entities is limited to its invested capital, which was $5.2 million , $4.6 million and $4.0 million at December 31, 2017 , 2016 and 2015 , 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 NACoal would be required to perform 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: 2017 2016 2015 Statement of Operations Revenues $ 791,264 $ 649,050 $ 608,349 Gross profit $ 87,760 $ 80,068 $ 71,727 Income before income taxes $ 62,607 $ 54,857 $ 49,641 Net income $ 55,268 $ 40,590 $ 39,181 Balance Sheet Current assets $ 179,316 $ 160,554 Non-current assets $ 883,919 $ 901,221 Current liabilities $ 175,844 $ 127,361 Non-current liabilities $ 882,200 $ 929,774 NACoal received dividends of $54.7 million and $39.9 million from the unconsolidated subsidiaries in 2017 and 2016 , respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions One of the Company's directors is a retired Jones Day partner. Legal services rendered by Jones Day approximated $3.0 million , $1.2 million and $1.6 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. In connection with the spin-off of HBBHC, the Company and HBBHC entered into a TSA. See Note 3 for further discussion of the spin-off and TSA. Hyster-Yale Materials Handling, Inc. ("Hyster-Yale") is a former subsidiary of the Company that was spun-off to stockholders in 2012. In the ordinary course of business, NACoal leases or buys Hyster-Yale lift trucks. The terms may not be comparable to terms that would be obtained in a transaction between unaffiliated parties. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On February 14, 2018, NACCO's Board of Directors approved the termination of certain nonqualified deferred compensation plans. The account balance of $13.0 million as of December 31, 2017, which is included in NACCO and Other's long-term liabilities on the line "Deferred compensation" in the Consolidated Balance Sheets, will be distributed between February 2019 and February 2020. |
Schedule I - Condensed Financia
Schedule I - Condensed Financial Information of the Parent | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule I - Condensed Financial Information of the Parent | Parent Company Condensed Balance Sheets The condensed balance sheets of NACCO, the parent company, at December 31 are as follows: 2017 2016 ASSETS Cash and cash equivalents $ 94,646 $ 57,917 Accounts receivable from affiliates 9,189 — Other current assets 1,714 2,518 Investment in subsidiaries HBB — 44,057 KC — 21,394 NACoal 141,174 105,645 Other, primarily Bellaire 13,340 14,463 154,514 185,559 Property, plant and equipment, net 310 935 Other non-current assets 9,550 13,870 Total Assets $ 269,923 $ 260,799 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities $ 7,627 $ 7,055 Current intercompany accounts payable, net 11,858 1,406 Note payable to Bellaire 17,850 18,100 Deferred compensation 12,939 13,578 Other non-current liabilities 201 367 Stockholders’ equity 219,448 220,293 Total Liabilities and Stockholders’ Equity $ 269,923 $ 260,799 The credit agreement at NACoal allows for the transfer of assets to NACCO under certain circumstances. The amount of NACCO's investment in NACoal and Bellaire that was restricted at December 31, 2017 totaled approximately $1.8 million . The amount of unrestricted cash available to NACCO included in “Investment in subsidiaries” was $0.3 million at December 31, 2017 . Dividends and management fees from its subsidiaries are the primary sources of cash for NACCO. SCHEDULE I—CONDENSED FINANCIAL INFORMATION OF THE PARENT NACCO INDUSTRIES, INC. AND SUBSIDIARIES PARENT COMPANY CONDENSED BALANCE SHEETS December 31 2017 2016 (In thousands) ASSETS Cash and cash equivalents $ 94,646 $ 57,917 Accounts receivable from affiliates 9,189 — Other current assets 1,714 2,518 Investment in subsidiaries HBB — 44,057 KC — 21,394 NACoal 141,174 105,645 Other, primarily Bellaire 13,340 14,463 154,514 185,559 Property, plant and equipment, net 310 935 Other non-current assets 9,550 13,870 Total Assets $ 269,923 $ 260,799 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities $ 7,627 $ 7,055 Current intercompany accounts payable, net 11,858 1,406 Note payable to Bellaire 17,850 18,100 Deferred compensation 12,939 13,578 Other non-current liabilities 201 367 Stockholders’ equity 219,448 220,293 Total Liabilities and Stockholders’ Equity $ 269,923 $ 260,799 See Notes to Parent Company Condensed Financial Statements. SCHEDULE I—CONDENSED FINANCIAL INFORMATION OF THE PARENT NACCO INDUSTRIES, INC. AND SUBSIDIARIES PARENT COMPANY CONDENSED STATEMENTS OF COMPREHENSIVE INCOME Year Ended December 31 2017 2016 2015 (In thousands) (Income) expense: Intercompany interest expense $ 1,256 $ 1,285 $ 1,309 Other, net (314 ) (332 ) (270 ) 942 953 1,039 Administrative and general expenses 6,466 6,881 3,704 Loss before income taxes (7,408 ) (7,834 ) (4,743 ) Income tax benefit (366 ) (2,295 ) (1,496 ) Net loss before equity in earnings of subsidiaries (7,042 ) (5,539 ) (3,247 ) Equity in earnings of subsidiaries 35,505 8,495 5,520 Income from continuing operations 28,463 2,956 2,273 Discontinued operations, net of tax $ 1,874 $ 26,651 $ 19,711 Net income 30,337 29,607 21,984 Foreign currency translation adjustment 1,725 (2,078 ) (2,756 ) Deferred gain on available for sale securities, net of tax 834 413 17 Current period cash flow hedging activity, net of $941 tax expense in 2017, $73 tax benefit in 2016 and $357 tax benefit in 2015 1,543 (252 ) (577 ) Reclassification of hedging activities into earnings, net of $1,255 tax expense in 2017, $419 tax benefit in 2016 and $191 tax benefit in 2015 (2,369 ) 757 409 Current period pension and postretirement plan adjustment, net of $440 tax expense in 2017, $1,098 tax benefit in 2016 and $1,222 tax benefit in 2015 749 (2,011 ) (1,204 ) Reclassification of pension and postretirement adjustments into earnings, net of $363 tax benefit in 2017, $408 tax benefit in 2016 and $420 tax benefit in 2015 582 688 856 Total other comprehensive income (loss) 3,064 (2,483 ) (3,255 ) Comprehensive Income $ 33,401 $ 27,124 $ 18,729 See Notes to Parent Company Condensed Financial Statements. SCHEDULE I—CONDENSED FINANCIAL INFORMATION OF THE PARENT NACCO INDUSTRIES, INC. AND SUBSIDIARIES PARENT COMPANY CONDENSED STATEMENTS OF CASH FLOWS Year Ended December 31 2017 2016 2015 (In thousands) Operating Activities Income from continuing operations $ 28,463 $ 2,956 $ 2,273 Equity in earnings of subsidiaries 35,505 8,495 5,520 Parent company only net loss (7,042 ) (5,539 ) (3,247 ) Net changes related to operating activities 7,881 2,684 (11,015 ) Net cash provided by (used for) operating activities 839 (2,855 ) (14,262 ) Investing Activities Proceeds from the sale of assets 834 — — Expenditures for property, plant and equipment (12 ) (25 ) (328 ) Net cash used for investing activities 822 (25 ) (328 ) Financing Activities Dividends received from subsidiaries 4,000 52,200 15,000 Dividends received from Hamilton Beach Brands Holding Company 38,000 — — Notes payable to Bellaire (250 ) (600 ) — Purchase of treasury shares — (6,044 ) (24,010 ) Cash dividends paid (6,682 ) (7,262 ) (7,296 ) Other — (3 ) (13 ) Net cash provided by (used for) financing activities 35,068 38,291 (16,319 ) Cash and cash equivalents Increase (decrease) for the period 36,729 35,411 (30,909 ) Balance at the beginning of the period 57,917 22,506 53,415 Balance at the end of the period $ 94,646 $ 57,917 $ 22,506 See Notes to Parent Company Condensed Financial Statements. SCHEDULE I—CONDENSED FINANCIAL INFORMATION OF THE PARENT NACCO INDUSTRIES, INC. AND SUBSIDIARIES NOTES TO PARENT COMPANY CONDENSED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2017 , 2016 AND 2015 The notes to Consolidated Financial Statements, incorporated in Item 15 of this Form 10-K, are hereby incorporated by reference into these Notes to Parent Company Condensed Financial Statements. NOTE A — ACCOUNTING POLICIES NACCO Industries, Inc. (the parent company or “NACCO”) is a holding company that operates primarily in the mining industry. In the Parent Company Condensed Financial Statements, NACCO's investment in subsidiaries is stated at cost plus equity in undistributed earnings of subsidiaries since the date of acquisition. NACCO's share of net income of unconsolidated subsidiaries is included in net income using the equity method. Parent Company financial statements should be read in conjunction with the Company's consolidated financial statements. NOTE B — LONG-TERM OBLIGATIONS AND GUARANTEES It is NACCO's policy not to guarantee the debt of NACoal. NOTE C — UNRESTRICTED CASH The amount of unrestricted cash available to NACCO, included in “Investment in subsidiaries,” was $0.3 million at December 31, 2017 and was in addition to the $94.6 million of cash included in the Parent Company Condensed Balance Sheet at December 31, 2017 . |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS NACCO INDUSTRIES, INC. AND SUBSIDIARIES YEAR ENDED DECEMBER 31, 2017 , 2016 AND 2015 Additions Description Balance at Beginning of Period Charged to Costs and Expenses Charged to Other Accounts — Describe Deductions — Describe Balance at End of Period (A) (In thousands) 2017 Reserves deducted from asset accounts: Deferred tax valuation allowances $ 12,881 $ 699 $ (1 ) — $ 13,579 2016 Reserves deducted from asset accounts: Deferred tax valuation allowances $ 10,433 $ 2,426 $ 22 $ — $ 12,881 2015 Reserves deducted from asset accounts: Deferred tax valuation allowances $ 7,615 $ 2,315 $ 503 $ — $ 10,433 (A) Balances which are not required to be presented and those which are immaterial have been omitted. |
Significant Accounting Polici33
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates: The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and judgments. These estimates and judgments affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities (if any) at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents: Cash and cash equivalents include cash in banks and highly liquid investments with original maturities of three months or less. |
Inventories | Inventories: NACoal inventories are stated at the lower of cost or net realizable value. The weighted average method is used for inventory. |
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net: Property, plant and equipment are initially recorded at cost. Depreciation, depletion and amortization are provided in amounts sufficient to amortize the cost of the assets, including assets recorded under capital leases, over their estimated useful lives using the straight-line method. Buildings and building improvements are depreciated over the life of the mine, which is generally 30 years. Estimated lives for machinery and equipment range from three to 15 years . The units-of-production method is used to amortize certain coal-related assets based on estimated recoverable tonnages. Repairs and maintenance costs are generally expensed when incurred. Asset retirement costs associated with asset retirement obligations are capitalized with the carrying amount of the related long-lived asset and depreciated over the asset's estimated useful life. |
Long-Lived Assets | Long-Lived Assets: The Company periodically evaluates long-lived assets for impairment when changes in circumstances or the occurrence of certain events indicate the carrying amount of an asset may not be recoverable. Upon identification of indicators of impairment, the Company evaluates the carrying value of the asset by comparing the estimated future undiscounted cash flows generated from the use of the asset and its eventual disposition with the asset's net carrying value. If the carrying value of an asset is considered impaired, an impairment charge is recorded for the amount that the carrying value of the long-lived asset exceeds its fair value. Fair value is estimated as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. |
Coal Supply Agreement | Coal Supply Agreement: The coal supply agreement represents a long-term supply agreement with a NACoal customer and was recorded based on the fair value at the date of acquisition. The coal supply agreement is amortized based on units of production over the term of the agreement, which is estimated to be 30 years . The Company reviews identified intangible assets for impairment when changes in circumstances or the occurrence of certain events indicate potential impairment. |
Self-insurance Liabilities | Self-insurance Liabilities: The Company is generally self-insured for medical claims, certain workers’ compensation claims and certain closed mine liabilities. An estimated provision for claims reported and for claims incurred but not yet reported under the self-insurance programs is recorded and revised periodically based on industry trends, historical experience and management judgment. In addition, industry trends are considered within management's judgment for valuing claims. Changes in assumptions for such matters as legal judgments and settlements, inflation rates, medical costs and actual experience could cause estimates to change in the near term. |
Revenue Recognition | Revenue Recognition: Revenues are generally recognized when title transfers and risk of loss passes to the customer. Under its mining contracts, the Company recognizes revenue as the coal or limerock is delivered or services are performed. |
Stock Compensation | Stock Compensation: The Company maintains long-term incentive programs. The parent company has stock compensation plans that allow the grant of shares of Class A common stock, subject to restrictions, as a means of retaining and rewarding selected employees for long-term performance and to increase ownership in the Company. Shares awarded under the plans are fully vested and entitle the stockholder to all rights of common stock ownership except that shares may not be assigned, pledged or otherwise transferred during the restriction period. In general, the restriction period ends at the earliest of (i) five years after the participant's retirement date, (ii) ten years from the award date, or (iii) the participant's death or permanent disability. Pursuant to the plans, the Company issued 92,572 and 62,425 shares related to the years ended December 31, 2017 and 2016 , respectively. After the issuance of these shares, there were 407,428 shares of Class A common stock available for issuance under these plans. Compensation expense related to these share awards was $3.5 million ( $2.3 million net of tax), $4.3 million ( $2.8 million net of tax) and $1.7 million ( $1.1 million net of tax) for the years ended December 31, 2017 , 2016 and 2015 , respectively. Compensation expense represents fair value based on the market price of the shares of Class A common stock at the grant date. The Company also has a stock compensation plan for non-employee directors of the Company under which a portion of the annual retainer for each non-employee director is paid in restricted shares of Class A common stock. For the three months ended December 31, 2017 , $22,500 of the non-employee director's annual retainer of $37,500 was paid in restricted shares of Class A common stock. For the nine months ended September 30, 2017, $66,750 of the non-employee director's annual retainer of $108,750 was paid in restricted shares of Class A common stock. For the year ended December 31, 2016 , $82,000 of the non-employee director's annual retainer of $138,000 was paid in restricted shares of Class A common stock. For the year ended December 31, 2015 , $75,000 of the non-employee director's annual retainer of $131,000 was paid in restricted shares of Class A common stock. Shares awarded under the plan are fully vested and entitle the stockholder to all rights of common stock ownership except that shares may not be assigned, pledged or otherwise transferred during the restriction period. In general, the restriction period ends at the earliest of (i) ten years from the award date, (ii) the date of the director's death or permanent disability, (iii) five years (or earlier with the approval of the Board of Directors) after the director's date of retirement from the Board of Directors, or (iv) the date the director has both retired from the Board of Directors and has reached age 70 . Pursuant to this plan, the Company issued 18,643 , 10,690 and 11,496 shares related to the years ended December 31, 2017 , 2016 and 2015 , respectively. In addition to the mandatory retainer fee received in restricted stock, directors may elect to receive shares of Class A common stock in lieu of cash for up to 100% of the balance of their annual retainer, committee retainer and any committee chairman's fees. These voluntary shares are not subject to any restrictions. |
Financial Instruments and Derivative Financial Instruments | Financial Instruments and Derivative Financial Instruments: Financial instruments held by the Company include cash and cash equivalents, accounts receivable, accounts payable, revolving credit agreements, long-term debt and interest rate swap agreements. The Company uses interest rate swap agreements to partially reduce risks related to floating rate financing agreements that are subject to changes in the market rate of interest. Terms of the interest rate swap agreements require the Company to receive a variable interest rate and pay a fixed interest rate. The Company's interest rate swap agreements and its variable rate financings are predominately based upon LIBOR (London Interbank Offered Rate). The Company does not hold or issue financial instruments or derivative financial instruments for trading purposes. Beginning in 2017, gains and losses for the interest rate swap agreements held by the Company were no longer deferred in AOCI, but were recorded in the Consolidated Statement of Operations. |
Fair Value Measurements | Fair Value Measurements: The Company accounts for the fair value measurement of its financial assets and liabilities in accordance with U.S. generally accepted accounting principles, which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. Described below are the three levels of inputs that may be used to measure fair value: Level 1 - Quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities. Level 2 - Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. Level 3 - Unobservable inputs are used when little or no market data is available. The hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The classification of fair value measurements within the hierarchy is based upon the lowest level of input that is significant to the measurement. |
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 adopted 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 developed a project plan with respect to its implementation of this standard, including identification of revenue streams and review of contracts and procedures currently in place. The Company completed its review of customer contracts at its NACoal subsidiary, including the contracts for the Company’s Unconsolidated Mines. 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. During the fourth quarter of 2017, the Company completed its evaluation of ASC 606, including identifying and implementing changes to processes and controls to meet the standard's updated reporting and disclosure requirements, including the calculation of the cumulative effect of adopting ASC 606. There were no significant changes to accounting systems or controls upon adoption of ASC 606. The Company assessed the goods and services promised in its contracts with customers and identified a performance obligation for each promised good or service that is distinct. Each mine has a contract with its respective customer that represents a contract under ASC 606. For its consolidated entities, NACoal’s performance obligations vary by contract and consist of the following: At MLMC, each MMBtu delivered during the production period is considered a separate performance obligation. Revenue is recognized at the point in time that control of each MMBtus of lignite transfers to the customer. Fluctuations in revenue from period to period generally result from changes in customer demand. At NAM entities, the management service to oversee the maintenance and operation of the draglines and other mining equipment and delivery of limerock is the performance obligation, which is accounted for as a series. As each month of service is completed, revenue is recognized for the amount of actual costs incurred, plus the management fee and the general and administrative fee (as applicable). Fluctuations in revenue from period to period result from changes in customer demand and variances in reimbursable costs primarily associated with production levels on individual contracts. NACoal enters into royalty contracts which grant the lessee the right to explore, develop, produce and sell minerals controlled by the Company. These arrangements result in the transfer of mineral rights to the lessee for a period of time to permit access for purposes of exploration, development, and production. The mineral rights revert back to NACoal at the expiration of the contracts. Under these royalty contracts, NACoal’s grant to the lessee of rights to minerals is the performance obligation. The performance obligation under these contracts represents a series of distinct goods or services whereby each day of access that is provided is distinct. The transaction price consists of a variable sales based royalty and in certain arrangements a fixed component in the form of an up-front lease bonus payment. As the amount of consideration the Company will ultimately be entitled to is entirely susceptible to factors outside its control, the entire amount of variable consideration is constrained at contract inception. The fixed portion of the transaction price will be recognized over the initial term of the contract which is generally five years. The adoption of ASC 606 will result in the establishment of a $2.6 million contract liability and a $2.1 million cumulative effect adjustment to beginning retained earnings (net of tax of $0.5 million ) as of January 1, 2018 to reflect the impact of changing the accounting for lease bonus payments received under certain royalty contracts. The Company does not expect any other changes to the timing of revenue recognition under ASC 606. 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 adoption of this guidance will not have a material effect on the Company’s financial position, results of operations, cash flows and related disclosures. |
Reclassifications | Reclassifications: As a result of the spin-off and the reclassification of HBBHC to discontinued operations, certain amounts in the prior periods’ Consolidated Financial Statements have been reclassified to conform to the current period's presentation. |
Other Events and Transactions (
Other Events and Transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operation Results | Discontinued operations includes the following results of HBBHC for the three years ended December 31: 2017 2016 2015 HBBHC Operating Statement Data: Revenues $ 474,971 $ 745,357 $ 767,862 Cost of goods sold 353,436 551,586 577,134 Gross profit 121,535 193,771 190,728 Operating expenses (a) 114,379 150,397 155,174 Operating profit 7,156 43,374 35,554 Interest expense 1,300 1,374 1,962 Other expense, net (939 ) 837 1,556 Income before income taxes 6,795 41,163 32,036 Income tax expense 2,655 14,984 12,325 HBBHC net income $ 4,140 $ 26,179 $ 19,711 NACCO expenses related to the spin-off 2,759 — — NACCO discontinued operations income tax expense (benefit) adjustments (493 ) (472 ) — NACCO discontinued operations, net of tax $ 1,874 $ 26,651 $ 19,711 (a) HBBHC's operating profit includes the recognition of $2.5 million of expenses related to the spin-off in 2017. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories are summarized as follows: December 31 2017 2016 Coal $ 13,416 $ 13,137 Mining supplies 16,599 15,790 Total inventories $ 30,015 $ 28,927 |
Property, Plant and Equipment36
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment, net includes the following: December 31 2017 2016 Coal lands and real estate: NACoal $ 53,576 $ 48,636 NACCO and Other 469 469 54,045 49,105 Plant and equipment: NACoal 151,145 141,440 NACCO and Other 2,531 5,007 153,676 146,447 Property, plant and equipment, at cost 207,721 195,552 Less allowances for depreciation, depletion and amortization 87,653 80,446 $ 120,068 $ 115,106 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Intangible assets other than goodwill, which are subject to amortization, consist of the following: Gross Carrying Amount Accumulated Amortization Net Balance Balance at December 31, 2017 Coal supply agreement $ 84,200 $ (40,646 ) $ 43,554 Balance at December 31, 2016 Coal supply agreement $ 84,200 $ (38,522 ) $ 45,678 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Change in Asset Retirement Obligation | A reconciliation of the Company's beginning and ending aggregate carrying amount of the asset retirement obligations are as follows: NACCO Consolidated Balance at January 1, 2016 $ 43,592 Liabilities settled during the period (2,321 ) Accretion expense 2,659 Revision of estimated cash flows (1,825 ) Balance at December 31, 2016 $ 42,105 Liabilities incurred during the period 277 Liabilities settled during the period (2,430 ) Accretion expense 2,749 Revision of estimated cash flows (2,604 ) Balance at December 31, 2017 $ 40,097 |
Current and Long-Term Financi39
Current and Long-Term Financing (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table summarizes the Company's available and outstanding borrowings: December 31 2017 2016 Total outstanding borrowings of NACoal: Revolving credit agreement $ 50,000 $ 80,000 Capital lease obligations and other term loans 8,146 16,039 Total debt outstanding $ 58,146 $ 96,039 Current portion of borrowings outstanding $ 16,125 $ 1,744 Long-term portion of borrowings outstanding 42,021 94,295 $ 58,146 $ 96,039 Total available borrowings, net of limitations, under revolving credit agreement $ 148,591 $ 223,933 Unused revolving credit agreement $ 98,591 $ 143,933 Weighted average stated interest rate on total borrowings 3.8 % 2.9 % Weighted average effective interest rate on total borrowings (including interest rate swap agreements) 3.6 % 3.4 % |
Schedule of Maturities of Total Debt, Excluding Capital Leases | Annual maturities of total debt, excluding capital leases, are as follows: 2018 $ 15,213 2019 223 2020 237 2021 250 2022 35,263 Thereafter 5,598 $ 56,784 |
Fair Value Disclosure (Tables)
Fair Value Disclosure (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2017 (Level 1) (Level 2) (Level 3) Assets: Available for sale securities $ 9,166 $ 9,166 $ — $ — Interest rate swap agreements 42 — 42 — $ 9,208 $ 9,166 $ 42 $ — Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Active Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs Description December 31, 2016 (Level 1) (Level 2) (Level 3) Assets: Available for sale securities $ 7,882 $ 7,882 $ — $ — $ 7,882 $ 7,882 $ — $ — Liabilities: Interest rate swap agreements $ 339 $ — $ 339 $ — $ 339 $ — $ 339 $ — |
Leasing Arrangements (Tables)
Leasing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Future Minimum Capital and Operating Lease Payments | Future minimum capital and operating lease payments at December 31, 2017 are: Capital Leases Operating Leases 2018 $ 938 $ 3,359 2019 437 2,126 2020 21 1,929 2021 — 1,662 2022 — 1,059 Subsequent to 2022 — 2,329 Total minimum lease payments 1,396 $ 12,464 Amounts representing interest 34 Present value of net minimum lease payments 1,362 Current maturities 912 Long-term capital lease obligation $ 450 |
Assets Recorded Under Capital Leases Included in Property | Assets recorded under capital leases are included in property, plant and equipment and consist of the following: December 31 2017 2016 Plant and equipment $ 4,807 $ 4,807 Less accumulated depreciation 3,730 3,129 $ 1,077 $ 1,678 |
Stockholders' Equity and Earn42
Stockholders' Equity and Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Reclassification out of Accumulated Other Comprehensive Income | The following table summarizes the amounts reclassified out of AOCI and recognized in the Consolidated Statement of Operations: Amount reclassified from AOCI Details about AOCI components 2017 2016 2015 Location of loss (gain) reclassified from AOCI into income (In thousands) Loss (gain) on cash flow hedging Foreign exchange contracts $ (158 ) $ (11 ) $ (860 ) Cost of sales Interest rate contracts (3,466 ) 1,187 1,460 Interest expense (3,624 ) 1,176 600 Total before income tax expense Tax effect 1,255 (419 ) (191 ) Income tax expense (benefit) $ (2,369 ) $ 757 $ 409 Net of tax Pension and postretirement plan Actuarial loss $ 955 $ 1,145 $ 1,333 (a) Prior-service credit (10 ) (49 ) (57 ) (a) 945 1,096 1,276 Total before income tax expense Tax effect (363 ) (408 ) (420 ) Income tax benefit $ 582 $ 688 $ 856 Net of tax Total reclassifications for the period $ (1,787 ) $ 1,445 $ 1,265 Net of tax (a) NACCO and NACoal's AOCI components are included in the computation of pension and postretirement expense. See Note 14 for a discussion of the Company's pension and postretirement expense. |
Schedule of Earnings Per Share | The weighted average number of shares of Class A common stock and Class B common stock outstanding used to calculate basic and diluted earnings per share were as follows: 2017 2016 2015 Basic weighted average shares outstanding 6,830 6,818 7,001 Dilutive effect of restricted stock awards 43 36 21 Diluted weighted average shares outstanding 6,873 6,854 7,022 Basic earnings per share: Continuing operations $ 4.17 $ 0.43 $ 0.32 Discontinued operations $ 0.27 $ 3.91 $ 2.82 Basic earnings per share $ 4.44 $ 4.34 $ 3.14 Diluted earnings per share: Continuing operations $ 4.14 $ 0.43 $ 0.32 Discontinued operations $ 0.27 $ 3.89 $ 2.81 Diluted earnings per share $ 4.41 $ 4.32 $ 3.13 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense (Benefit) | The components of income (loss) from continuing operations before income tax provision (benefit) and the income tax provision (benefit) for the years ended December 31 are as follows: 2017 2016 2015 Income (loss) before income tax provision (benefit) Domestic $ 31,454 $ (4,251 ) $ (4,894 ) Foreign (2,352 ) (2,442 ) (2,343 ) $ 29,102 $ (6,693 ) $ (7,237 ) Income tax provision (benefit) Current income tax provision (benefit): Federal $ (3,885 ) $ (20,847 ) $ (4,526 ) State 435 288 278 Total current (3,450 ) (20,559 ) (4,248 ) Deferred income tax provision (benefit): Federal 6,588 10,935 (6,230 ) State (2,499 ) (25 ) 968 Total deferred 4,089 10,910 (5,262 ) $ 639 $ (9,649 ) $ (9,510 ) |
Effective Income Tax Rate Reconciliation | A reconciliation of the federal statutory and effective income tax rate from continuing operations for the years ended December 31 is as follows: 2017 2016 2015 Income (loss) from continuing operations before income tax provision (benefit) $ 29,102 $ (6,693 ) $ (7,237 ) Statutory taxes (benefit) at 35.0% $ 10,186 $ (2,343 ) $ (2,533 ) State and local income taxes 493 (1,676 ) (1,332 ) Valuation allowances (1,453 ) 2,432 2,480 Non-deductible expenses 224 1,334 424 Percentage depletion (6,253 ) (6,373 ) (8,406 ) R&D and other federal credits 301 278 (896 ) Tax settlements 74 (3,161 ) 551 Provisional effect of the TCJA (3,132 ) — — Other, net 199 (140 ) 202 Income tax provision (benefit) $ 639 $ (9,649 ) $ (9,510 ) Effective income tax rate from continuing operations 2.2 % 144.2 % 131.4 % |
Deferred Tax Assets and Liabilities | A detailed summary of the total deferred tax assets and liabilities in the Company's Consolidated Balance Sheets resulting from differences in the book and tax basis of assets and liabilities follows: December 31 2017 2016 Deferred tax assets Tax carryforwards $ 22,035 $ 21,527 Inventories 1,878 3,389 Accrued expenses and reserves 11,723 18,750 Partnership investment - development costs — 3,719 Other employee benefits 4,640 5,130 Other 8,933 14,737 Total deferred tax assets 49,209 67,252 Less: Valuation allowance 13,579 12,881 35,630 54,371 Deferred tax liabilities Depreciation and depletion 23,029 42,512 Partnership investment - development costs 4,069 — Accrued pension benefits 2,570 983 Total deferred tax liabilities 29,668 43,495 Net deferred asset $ 5,962 $ 10,876 |
Summary of Tax Credit Carryforwards | The following table summarizes the tax carryforwards and associated carryforward periods and related valuation allowances where the Company has determined that realization is uncertain: December 31, 2017 Net deferred tax asset Valuation allowance Carryforwards expire during: Non-U.S. net operating loss $ 1,438 $ 1,438 2024-2025 State losses 16,948 13,054 2018-2037 Research credit 1,870 — 2034-2037 Alternative minimum tax credit 5,335 — (1) Total $ 25,591 $ 14,492 (1) The TCJA repealed the corporate alternative minimum tax for tax years beginning after December 31, 2017. This credit is refundable in 2021, if not fully utilized prior to 2021. December 31, 2016 Net deferred tax asset Valuation allowance Carryforwards expire during: Non-U.S. net operating loss $ 732 $ 732 2024 State losses 15,299 13,350 2017-2036 Research credit 2,754 — 2034-2036 Alternative minimum tax credit 8,035 — Indefinite Total $ 26,820 $ 14,082 |
Unrecognized Tax Benefits Roll Forward | s. The following is a reconciliation of the Company's total gross unrecognized tax benefits, defined as the aggregate tax effect of differences between tax return positions and the benefits recognized in the financial statements for the years ended December 31, 2017 and 2016 . Approximately $0.8 million and $0.8 million of these gross amounts as of December 31, 2017 and 2016 , respectively, relate to permanent items that, if recognized, would impact the effective income tax rate. This amount differs from the gross unrecognized tax benefits presented in the table below due to the decrease in U.S. federal income taxes which would occur upon the recognition of the state tax benefits included herein. 2017 2016 2015 Balance at January 1 $ 915 $ 3,671 $ 3,285 Additions based on tax positions related to prior years — 181 (256 ) Additions based on tax positions related to the current year 82 211 642 Reductions due to settlements with taxing authorities — (1,330 ) — Reductions due to lapse of the applicable statute of limitations — (1,818 ) — Balance at December 31 $ 997 $ 915 $ 3,671 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Assumptions used in accounting for the defined benefit plan | The assumptions used in accounting for the defined benefit plans were as follows for the years ended December 31 : 2017 2016 2015 Weighted average discount rates for pension benefit obligation 3.40% - 3.55% 3.75% - 4.00% 3.90% - 4.20% Weighted average discount rates for net periodic benefit cost 3.40% - 4.00% 3.90% - 4.20% 3.65% - 3.95% Expected long-term rate of return on assets for net periodic benefit cost 7.50 % 7.50 % 7.75 % The assumptions used in accounting for the postretirement health care plans are set forth below for the years ended December 31 : 2017 2016 2015 Weighted average discount rates for benefit obligation 3.10 % 3.25 % 3.40 % Weighted average discount rates for net periodic benefit cost 3.25 % 3.40 % 3.25 % Health care cost trend rate assumed for next year 7.0 % 7.3 % 7.3 % Rate to which the cost trend rate is assumed to decline (ultimate trend rate) 5.0 % 5.0 % 5.0 % Year that the rate reaches the ultimate trend rate 2025 2025 2025 |
Net periodic benefit income and expense for the defined benefit plan | Set forth below is a detail of the net periodic benefit expense for the postretirement health care plans for the years ended December 31 : 2017 2016 2015 Service cost $ 50 $ 70 $ 70 Interest cost 101 116 113 Amortization of actuarial loss 97 132 91 Amortization of prior service credit (17 ) (107 ) (107 ) Net periodic benefit expense $ 231 $ 211 $ 167 Set forth below is a detail of the net periodic pension expense (income) for the defined benefit plans for the years ended December 31 : 2017 2016 2015 Interest cost $ 1,746 $ 1,757 $ 1,713 Expected return on plan assets (2,843 ) (2,789 ) (2,733 ) Amortization of actuarial loss 363 415 495 Amortization of prior service cost 58 58 50 Settlements 76 90 — Net periodic pension income $ (600 ) $ (469 ) $ (475 ) |
Changes in plan assets and benefit obligations recognized in comprehensive income (loss) | Set forth below is detail of other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss for the years ended December 31 : 2017 2016 2015 Current year actuarial (gain) loss $ (1,343 ) $ 2,573 $ 955 Amortization of actuarial loss (363 ) (415 ) (495 ) Amortization of prior service cost (58 ) (58 ) (50 ) Settlements (76 ) (90 ) — Total recognized in other comprehensive (income) loss $ (1,840 ) $ 2,010 $ 410 Set forth below is a detail of other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) for the years ended December 31 : 2017 2016 2015 Current year actuarial loss (gain) $ 154 $ (25 ) $ 226 Amortization of actuarial loss (97 ) (132 ) (91 ) Amortization of prior service credit 17 107 107 Total recognized in other comprehensive income (loss) $ 74 $ (50 ) $ 242 |
Changes in benefit obligations during the year and funded status of defined benefit plan | The following table sets forth the changes in the benefit obligation and the plan assets during the year and the funded status of the defined benefit plans at December 31 : 2017 2016 Change in benefit obligation Projected benefit obligation at beginning of year $ 45,318 $ 43,559 Interest cost 1,746 1,757 Actuarial loss (gain) 1,275 2,134 Benefits paid (2,019 ) (1,811 ) Settlements (255 ) (321 ) Projected benefit obligation at end of year $ 46,065 $ 45,318 Accumulated benefit obligation at end of year $ 46,065 $ 45,318 Change in plan assets Fair value of plan assets at beginning of year $ 34,628 $ 37,162 Actual return on plan assets 5,461 (1,157 ) Employer contributions 712 755 Benefits paid (2,019 ) (1,811 ) Settlements (255 ) (321 ) Fair value of plan assets at end of year $ 38,527 $ 34,628 Funded status at end of year $ (7,538 ) $ (10,690 ) Amounts recognized in the balance sheets consist of: Noncurrent assets $ 2,051 $ 1,387 Current liabilities (700 ) (721 ) Non-current liabilities (8,889 ) (11,356 ) $ (7,538 ) $ (10,690 ) Components of accumulated other comprehensive loss (income) consist of: Actuarial loss $ 15,363 $ 17,145 Prior service cost 937 995 Deferred taxes (6,481 ) (7,127 ) $ 9,819 $ 11,013 The following sets forth the changes in benefit obligations during the year and the funded status of the postretirement health care at December 31 : 2017 2016 Change in benefit obligation Benefit obligation at beginning of year $ 3,211 $ 3,466 Service cost 50 70 Interest cost 101 116 Actuarial loss (gain) 154 (25 ) Benefits paid (295 ) (416 ) Benefit obligation at end of year $ 3,221 $ 3,211 Funded status at end of year $ (3,221 ) $ (3,211 ) Amounts recognized in the balance sheets consist of: Current liabilities $ (282 ) $ (294 ) Noncurrent liabilities (2,939 ) (2,917 ) $ (3,221 ) $ (3,211 ) Components of accumulated other comprehensive loss (income) consist of: Actuarial loss $ 1,040 $ 983 Prior service credit (78 ) (95 ) Deferred taxes 287 284 $ 1,249 $ 1,172 |
Future benefit payments | Future postretirement health care benefit payments expected to be paid are: 2018 $ 281 2019 323 2020 357 2021 357 2022 324 2023 - 2027 1,395 $ 3,037 Future pension benefit payments expected to be paid from assets of the pension plans are: 2018 $ 2,537 2019 2,478 2020 2,559 2021 2,671 2022 2,768 2023 - 2027 14,222 $ 27,235 |
Actual allocation percentage and target allocation percentage for pension plan assets | The following is the actual allocation percentage and target allocation percentage for the pension plan assets at December 31: 2017 2016 Target Allocation Range U.S. equity securities 47.2 % 46.4 % 36.0% - 54.0% Non-U.S. equity securities 21.1 % 19.6 % 16.0% - 24.0% Fixed income securities 31.4 % 33.6 % 30.0% - 40.0% Money market 0.3 % 0.4 % 0.0% - 10.0% |
Fair value of pension plan assets | Following are the values as of December 31 : Level 1 2017 2016 U.S. equity securities $ 18,175 $ 16,054 Non-U.S. equity securities 8,120 6,792 Fixed income securities 12,097 11,657 Money market 135 125 Total $ 38,527 $ 34,628 |
Effect of one-percentage-point change in assumed health care cost trend rates | A one-percentage-point change in the assumed health care cost trend rates would have the following effects at December 31, 2017 : 1-Percentage-Point Increase 1-Percentage-Point Decrease Effect on total of service and interest cost $ 12 $ (11 ) Effect on postretirement benefit obligation $ 254 $ (235 ) |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting Information | 2017 2016 2015 Revenues from external customers $ 104,778 $ 111,081 $ 147,998 Gross profit (loss) NACoal $ 17,198 $ 12,341 $ (10,816 ) NACCO and Other (279 ) (259 ) (416 ) Total $ 16,919 $ 12,082 $ (11,232 ) Earnings of unconsolidated mines $ 61,361 $ 55,238 $ 48,432 Selling, general and administrative expenses, including Amortization of intangible assets NACoal $ 42,516 $ 44,347 $ 38,867 NACCO and Other 7,098 7,019 3,844 Total $ 49,614 $ 51,366 $ 42,711 Operating profit (loss) NACoal $ 39,677 $ 5,619 $ 521 NACCO and Other (6,863 ) (7,278 ) (4,248 ) Total $ 32,814 $ (1,659 ) $ (3,727 ) 2017 2016 2015 Total assets NACoal $ 277,538 $ 287,011 $ 303,138 NACCO and Other 135,434 109,022 64,069 Discontinued Operations — 311,171 310,051 Eliminations (23,420 ) (39,183 ) (21,850 ) Total $ 389,552 $ 668,021 $ 655,408 Depreciation, depletion and amortization NACoal $ 12,444 $ 12,682 $ 17,067 NACCO and Other 323 368 305 Total $ 12,767 $ 13,050 $ 17,372 Capital expenditures NACoal $ 15,692 $ 10,109 $ 4,116 NACCO and Other 12 56 328 Total $ 15,704 $ 10,165 $ 4,444 |
Quarterly Results of Operatio46
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | A summary of the unaudited results of operations for the year ended December 31 is as follows: 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Revenues $ 28,300 $ 28,100 $ 21,941 $ 26,437 Gross profit $ 4,558 $ 4,597 $ 2,475 $ 5,289 Earnings of unconsolidated mines $ 14,955 $ 13,475 $ 16,197 $ 16,734 Operating profit (loss) NACoal $ 11,326 $ 10,876 $ 8,925 $ 8,550 NACCO and Other (1,520 ) (1,363 ) (1,936 ) (2,044 ) $ 9,806 $ 9,513 $ 6,989 $ 6,506 Income from continuing operations, net of tax $ 8,220 $ 7,233 $ 3,331 $ 9,679 Discontinued operations, net of tax (3,242 ) (444 ) 5,067 493 Net income $ 4,978 $ 6,789 $ 8,398 $ 10,172 Basic earnings (loss) per share: Continuing operations $ 1.21 $ 1.06 $ 0.49 $ 1.41 Discontinued operations (0.48 ) (0.06 ) 0.74 0.07 Basic earnings per share $ 0.73 $ 1.00 $ 1.23 $ 1.48 Diluted earnings (loss) per share: Continuing operations $ 1.20 $ 1.06 $ 0.49 $ 1.40 Discontinued operations (0.47 ) (0.06 ) 0.74 0.07 Diluted earnings per share $ 0.73 $ 1.00 $ 1.23 $ 1.47 2016 First Quarter Second Quarter Third Quarter Fourth Quarter Revenues $ 30,287 $ 23,089 $ 32,402 $ 25,303 Gross profit $ 5,968 $ 2,237 $ 1,647 $ 2,230 Earnings of unconsolidated mines $ 12,648 $ 13,035 $ 15,102 $ 14,453 Operating profit (loss) NACoal (1) (2) $ 9,742 $ 4,823 $ (10,912 ) $ 1,966 NACCO and Other (1,441 ) (1,297 ) (1,867 ) (2,673 ) $ 8,301 $ 3,526 $ (12,779 ) $ (707 ) Income (loss) from continuing operations, net of tax $ 7,760 $ 1,944 $ (2,132 ) $ (4,616 ) Discontinued operations, net of tax (4,958 ) 1,171 1,691 28,747 Net income (loss) $ 2,802 $ 3,115 $ (441 ) $ 24,131 Basic earnings (loss) per share: Continuing operations $ 1.13 $ 0.28 $ (0.31 ) $ (0.68 ) Discontinued operations (0.72 ) 0.17 0.25 4.24 Basic earnings (loss) per share $ 0.41 $ 0.45 $ (0.06 ) $ 3.56 Diluted earnings (loss) per share: Continuing operations $ 1.13 $ 0.28 $ (0.31 ) $ (0.68 ) Discontinued operations (0.72 ) 0.17 0.25 4.21 Diluted earnings (loss) per share $ 0.41 $ 0.45 $ (0.06 ) $ 3.53 (1) During the fourth quarter of 2016, NACoal recorded a $3.3 million charge related to the resolution of a legal matter. This charge is recorded on the line "Selling, general and administrative expenses" in the Consolidated Statements of Operations. (2) During the third quarter of 2016, NACoal recorded a non-cash impairment charge of $17.4 million related to Centennial assets. See Note 3 and Note 9 for further discussion of the Company's asset impairment charge. |
Parent Company Condensed Bala47
Parent Company Condensed Balance Sheets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Balance Sheet | The condensed balance sheets of NACCO, the parent company, at December 31 are as follows: 2017 2016 ASSETS Cash and cash equivalents $ 94,646 $ 57,917 Accounts receivable from affiliates 9,189 — Other current assets 1,714 2,518 Investment in subsidiaries HBB — 44,057 KC — 21,394 NACoal 141,174 105,645 Other, primarily Bellaire 13,340 14,463 154,514 185,559 Property, plant and equipment, net 310 935 Other non-current assets 9,550 13,870 Total Assets $ 269,923 $ 260,799 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities $ 7,627 $ 7,055 Current intercompany accounts payable, net 11,858 1,406 Note payable to Bellaire 17,850 18,100 Deferred compensation 12,939 13,578 Other non-current liabilities 201 367 Stockholders’ equity 219,448 220,293 Total Liabilities and Stockholders’ Equity $ 269,923 $ 260,799 |
Unconsolidated Subsidiaries (Ta
Unconsolidated Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Condensed Financial Statements | Summarized financial information for the unconsolidated subsidiaries is as follows: 2017 2016 2015 Statement of Operations Revenues $ 791,264 $ 649,050 $ 608,349 Gross profit $ 87,760 $ 80,068 $ 71,727 Income before income taxes $ 62,607 $ 54,857 $ 49,641 Net income $ 55,268 $ 40,590 $ 39,181 Balance Sheet Current assets $ 179,316 $ 160,554 Non-current assets $ 883,919 $ 901,221 Current liabilities $ 175,844 $ 127,361 Non-current liabilities $ 882,200 $ 929,774 |
Principles of Consolidation a49
Principles of Consolidation and Nature of Operations (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable interest entity, ownership percentage by parent | 100.00% |
Significant Accounting Polici50
Significant Accounting Policies (Property Plant and Equipment & Intangible Assets) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Building and building improvements | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment useful life | 30 years |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment useful life | 3 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment useful life | 15 years |
Significant Accounting Polici51
Significant Accounting Policies (Coal Supply Agreement) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Coal supply agreement amortization period | 30 years |
Significant Accounting Polici52
Significant Accounting Policies (Share-based Compensation and Other) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Amount of directors, annual retainer paid in restricted shares | $ 22,500 | ||||
Annual non-employee directors retainer amount | $ 37,500 | $ 37,500 | |||
Class A Common Stock | Executives | Stock Compensation Plan [Member] | |||||
Schedule of Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares issued during the year under the Company's stock compensation plans (shares) | 92,572 | 62,425 | |||
Class A common stock available for issuance under the plan (shares) | 407,428 | 407,428 | |||
Compensation expense related to share awards | $ 3,500,000 | $ 4,300,000 | $ 1,700,000 | ||
Compensation expense related to share awards, net of tax | $ 2,300,000 | 2,800,000 | 1,100,000 | ||
Class A Common Stock | Non-employee directors | Stock Compensation Plan [Member] | |||||
Schedule of Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Class A common stock available for issuance under the plan (shares) | 81,570 | 81,570 | |||
Compensation expense related to share awards | $ 900,000 | 900,000 | 700,000 | ||
Compensation expense related to share awards, net of tax | $ 600,000 | $ 600,000 | $ 500,000 | ||
Class A Common Stock | Non-employee directors | Restricted stock | |||||
Schedule of Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares issued during the year under the Company's stock compensation plans (shares) | 18,643 | 10,690 | 11,496 | ||
Amount of directors, annual retainer paid in restricted shares | $ 66,750 | $ 82,000 | $ 75,000 | ||
Annual non-employee directors retainer amount | $ 108,750 | $ 138,000 | $ 131,000 | ||
Percentage of annual retainer that may be received in shares of Class A stock (percent) | 100.00% | 100.00% | |||
Class A Common Stock | Non-employee directors | Voluntary shares | |||||
Schedule of Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares issued during the year under the Company's stock compensation plans (shares) | 2,746 | 2,282 | 2,553 | ||
Class A Common Stock | Participant's Retirement Date | Executives | Stock Compensation Plan [Member] | |||||
Schedule of Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Duration of restrictions on stock assignment, pledges or transfers | 5 years | ||||
Class A Common Stock | Date of award | Executives | Stock Compensation Plan [Member] | |||||
Schedule of Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Duration of restrictions on stock assignment, pledges or transfers | 10 years | ||||
Class A Common Stock | Date of award | Non-employee directors | Stock Compensation Plan [Member] | |||||
Schedule of Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Duration of restrictions on stock assignment, pledges or transfers | 10 years | ||||
Class A Common Stock | Participants retirement from board of directors | Non-employee directors | Stock Compensation Plan [Member] | |||||
Schedule of Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Duration of restrictions on stock assignment, pledges or transfers | 5 years | ||||
Class A Common Stock | Minimum age of director upon retirement from board | Non-employee directors | Stock Compensation Plan [Member] | |||||
Schedule of Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Duration of restrictions on stock assignment, pledges or transfers | 70 years |
Significant Accounting Polici53
Significant Accounting Policies (Recently Issued Accounting Standards) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Contract liability | $ 170,104 | $ 447,728 |
Pro Forma | Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Contract liability | 2,600 | |
Cumulative effect on retained earnings, net of tax | 2,100 | |
Cumulative effect on retained earnings, tax | $ 500 |
Other Events and Transactions54
Other Events and Transactions (Details) - USD ($) $ in Thousands | Sep. 29, 2017 | Sep. 28, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Cash dividends received from Hamilton Beach Brands Holding Co. | $ (38,000) | $ (42,000) | $ (15,000) | |||||
Centennial | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Asset impairment | $ 17,400 | 1,000 | 17,400 | |||||
Accretion (income) expense | (2,800) | (300) | 7,500 | |||||
NACoal | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Legal matter resolution charge | $ 3,300 | |||||||
HBBHC | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Cash dividends received from Hamilton Beach Brands Holding Co. | $ (35,000) | $ (3,000) | ||||||
Expected fee income | $ 1,000 | |||||||
Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | HBBHC | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
NACCO expenses related to the spin-off | $ 2,759 | $ 0 | $ 0 |
Other Events and Transactions55
Other Events and Transactions (Discontinued Operation Results) (Details) - USD ($) $ in Thousands | Sep. 29, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income tax expense | $ 2,162 | $ 14,512 | $ 12,325 | |
Income from discontinued operations | 1,874 | 26,651 | 19,711 | |
HBBHC | Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenues | 474,971 | 745,357 | 767,862 | |
Cost of goods sold | 353,436 | 551,586 | 577,134 | |
Gross profit | 121,535 | 193,771 | 190,728 | |
Operating expenses | 114,379 | 150,397 | 155,174 | |
Operating profit | 7,156 | 43,374 | 35,554 | |
Interest expense | 1,300 | 1,374 | 1,962 | |
Other expense, net | (939) | 837 | 1,556 | |
Income before income taxes | 6,795 | 41,163 | 32,036 | |
Income tax expense | 2,655 | 14,984 | 12,325 | |
HBBHC net income | 4,140 | 26,179 | 19,711 | |
NACCO expenses related to the spin-off | 2,759 | 0 | 0 | |
NACCO discontinued operations income tax expense (benefit) adjustments | $ (493) | $ (472) | $ 0 | |
Spinoff | HBBHC | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Expenses related to the spin-off | $ 2,500 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Coal | $ 13,416 | $ 13,137 |
Mining supplies | 16,599 | 15,790 |
Total inventories | $ 30,015 | $ 28,927 |
Property, Plant and Equipment57
Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | $ 207,721 | $ 195,552 | |
Less allowances for depreciation, depletion and amortization | 87,653 | 80,446 | |
Property, plant and equipment, net | 120,068 | 115,106 | |
Depreciation, depletion and amortization | 10,600 | 10,500 | $ 14,800 |
Coal Lands and Real Estate | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | 54,045 | 49,105 | |
Plant and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | 153,676 | 146,447 | |
NACoal | Coal Lands and Real Estate | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | 53,576 | 48,636 | |
NACoal | Plant and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | 151,145 | 141,440 | |
NACCO and Other | Coal Lands and Real Estate | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | 469 | 469 | |
NACCO and Other | Plant and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | $ 2,531 | $ 5,007 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets, Net [Abstract] | |||
Net Balance | $ 43,554 | $ 45,678 | |
Amortization of intangible assets | 2,123 | 2,503 | $ 2,606 |
Coal supply agreement | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Gross Carrying Amount | 84,200 | 84,200 | |
Accumulated Amortization | (40,646) | (38,522) | |
Net Balance | 43,554 | $ 45,678 | |
NACoal | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Expected annual amortization expense, 2018 | 3,000 | ||
Expected annual amortization expense, 2019 | 3,000 | ||
Expected annual amortization expense, 2020 | 3,100 | ||
Expected annual amortization expense, 2021 | 3,100 | ||
Expected annual amortization expense, 2022 | $ 3,100 | ||
Coal supply agreement amortization period | 30 years |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2014 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||
Carrying amount of the asset retirement obligations, balance at beginning of period | $ 42,105 | $ 43,592 | ||
Liabilities settled during the period | (2,430) | (2,321) | ||
Liabilities incurred during the period | 277 | |||
Accretion expense | 2,749 | 2,659 | ||
Revision of estimated cash flows | (2,604) | (1,825) | ||
Carrying amount of the asset retirement obligations, balance at end of period | 40,097 | 42,105 | ||
Segment Reporting Information [Line Items] | ||||
Asset retirement obligations | 42,105 | $ 43,592 | $ 40,097 | |
Other current liabilities | ||||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||
Carrying amount of the asset retirement obligations, balance at end of period | 3,100 | |||
Segment Reporting Information [Line Items] | ||||
Asset retirement obligations | 3,100 | 3,100 | ||
Asset retirement obligation | ||||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||
Carrying amount of the asset retirement obligations, balance at end of period | 37,000 | |||
Segment Reporting Information [Line Items] | ||||
Asset retirement obligations | $ 37,000 | 37,000 | ||
Bellaire | ||||
Segment Reporting Information [Line Items] | ||||
Fair value of trust assets | $ 9,200 | $ 5,000 |
Current and Long-Term Financi60
Current and Long-Term Financing (Debt Schedule) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Long-term portion of borrowings outstanding | $ 42,021 | $ 94,295 |
NACoal | ||
Debt Instrument [Line Items] | ||
Revolving credit agreement | 50,000 | 80,000 |
Capital lease obligations and other term loans: | 8,146 | 16,039 |
Total debt outstanding | 58,146 | 96,039 |
Current portion of borrowings outstanding | 16,125 | 1,744 |
Long-term portion of borrowings outstanding | 42,021 | 94,295 |
Total available borrowings, net of limitations, under revolving credit agreements | 148,591 | 223,933 |
Unused revolving credit agreements | $ 98,591 | $ 143,933 |
Weighted average stated interest rate on total borrowings | 3.80% | 2.90% |
Weighted average effective interest rate on total borrowings (including interest rate swap agreements) | 3.60% | 3.40% |
Current and Long-Term Financi61
Current and Long-Term Financing (Debt Maturity Schedule) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Debt Disclosure [Abstract] | |
2,018 | $ 15,213 |
2,019 | 223 |
2,020 | 237 |
2,022 | 250 |
2,021 | 35,263 |
Thereafter | 5,598 |
Long-term debt | $ 56,784 |
Current and Long-Term Financi62
Current and Long-Term Financing (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Line of Credit Facility [Line Items] | |||
Interest paid | $ 3,900,000 | $ 4,700,000 | $ 5,300,000 |
NACoal | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility, maximum borrowing capacity | 150,000,000 | ||
Line of credit facility, amount outstanding | 50,000,000 | 80,000,000 | |
Line of credit facility, remaining borrowing capacity | 98,591,000 | $ 143,933,000 | |
Amount of letters of credit outstanding | $ 1,400,000 | ||
Line of credit facility, unused capacity, commitment fee percentage | 0.35% | ||
Weighted average interest rate | 3.39% | ||
Minimum interest coverage ratio | 4 | ||
Line of credit facility, availability required to pay dividends | $ 15,000,000 | ||
NACoal | Maximum | |||
Line of Credit Facility [Line Items] | |||
Maximum EBITDA ratio | 3 | ||
NACoal | Minimum | |||
Line of Credit Facility [Line Items] | |||
Maximum EBITDA ratio | 2 | ||
NACoal | Base Rate | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.00% | ||
NACoal | LIBOR Rate | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 2.00% |
Fair Value Disclosure (Schedule
Fair Value Disclosure (Schedule of Assets and Liabilities) (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Quoted prices in active markets for identical assets (level 1) | ||
Assets: | ||
Available for sale securities | $ 9,166 | $ 7,882 |
Interest rate swap agreements | 0 | |
Assets | 9,166 | 7,882 |
Liabilities: | ||
Interest rate swap agreements | 0 | |
Liabilities | 0 | |
Significant other observable inputs (level 2) | ||
Assets: | ||
Available for sale securities | 0 | 0 |
Interest rate swap agreements | 42 | |
Assets | 42 | 0 |
Liabilities: | ||
Interest rate swap agreements | 339 | |
Liabilities | 339 | |
Significant unobservable inputs (level 3) | ||
Assets: | ||
Available for sale securities | 0 | 0 |
Interest rate swap agreements | 0 | |
Assets | 0 | 0 |
Liabilities: | ||
Interest rate swap agreements | 0 | |
Liabilities | 0 | |
Estimate of Fair Value Measurement | ||
Assets: | ||
Available for sale securities | 9,166 | 7,882 |
Interest rate swap agreements | 42 | |
Assets | $ 9,208 | 7,882 |
Liabilities: | ||
Interest rate swap agreements | 339 | |
Liabilities | $ 339 |
Fair Value Disclosure (Narrativ
Fair Value Disclosure (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt fair value | $ 56.7 | $ 87.4 | |
Centennial | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Asset impairment | $ 17.4 | $ 1 | $ 17.4 |
Leasing Arrangements (Details)
Leasing Arrangements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Capital Leases | |||
2,018 | $ 938 | ||
2,019 | 437 | ||
2,020 | 21 | ||
2,021 | 0 | ||
2,022 | 0 | ||
Subsequent to 2022 | 0 | ||
Total minimum lease payments | 1,396 | ||
Amounts representing interest | 34 | ||
Present value of net minimum lease payments | 1,362 | ||
Current maturities | 912 | ||
Long-term capital lease obligation | 450 | ||
Operating Leases | |||
2,018 | 3,359 | ||
2,019 | 2,126 | ||
2,020 | 1,929 | ||
2,021 | 1,662 | ||
2,022 | 1,059 | ||
Subsequent to 2022 | 2,329 | ||
Total minimum lease payments | 12,464 | ||
Rental expense for all operating leases | 4,900 | $ 7,400 | $ 9,800 |
Rental income on subleases of equipment | 600 | 400 | $ 300 |
Assets recorded under capital leases | |||
Plant and equipment | 4,807 | 4,807 | |
Less accumulated depreciation | 3,730 | 3,129 | |
Assets recorded under capital leases | $ 1,077 | $ 1,678 |
Contingencies (Details)
Contingencies (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2016USD ($) | |
NACoal | |
Site Contingency [Line Items] | |
Legal matter resolution charge | $ (3.3) |
Stockholders' Equity and Earn67
Stockholders' Equity and Earnings Per Share (Textual) (Details) $ in Millions | 12 Months Ended | 49 Months Ended | |
Dec. 31, 2017voteshares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016shares | |
Class A Common Stock | |||
Class of Stock [Line Items] | |||
Votes per share | vote | 1 | ||
Common stock, shares authorized | 25,000,000 | 25,000,000 | |
Treasury stock (in shares) | 2,937,644 | 2,937,644 | 3,007,334 |
Class A Common Stock | 2016 Stock Repurchase Program | |||
Class of Stock [Line Items] | |||
Treasury stock, shares acquired (in shares) | 1,855,923 | ||
Treasury stock, value | $ | $ 101.7 | ||
Class B Common Stock | |||
Class of Stock [Line Items] | |||
Votes per share | vote | 10 | ||
Common stock, shares authorized | 6,756,176 | 6,756,176 |
Stockholders' Equity and Earn68
Stockholders' Equity and Earnings Per Share (Reclassification out of AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Cost of sales | $ 87,859 | $ 98,999 | $ 159,230 | ||||||||
Interest expense | 3,440 | 4,318 | 4,962 | ||||||||
Income tax expense (benefit) | (639) | 9,649 | 9,510 | ||||||||
Net income | $ 10,172 | $ 8,398 | $ 6,789 | $ 4,978 | $ 24,131 | $ (441) | $ 3,115 | $ 2,802 | 30,337 | 29,607 | 21,984 |
Loss (gain) on cash flow hedging | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total reclassifications for the period | 2,369 | (757) | (409) | ||||||||
Pension and postretirement plan | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total reclassifications for the period | (582) | (688) | (856) | ||||||||
Reclassification out of accumulated other comprehensive income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total reclassifications for the period | (1,787) | 1,445 | 1,265 | ||||||||
Reclassification out of accumulated other comprehensive income | Loss (gain) on cash flow hedging | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Income (loss) from continuing operations before income tax provision (benefit) | (3,624) | 1,176 | 600 | ||||||||
Income tax expense (benefit) | 1,255 | (419) | (191) | ||||||||
Net income | (2,369) | 757 | 409 | ||||||||
Reclassification out of accumulated other comprehensive income | Loss (gain) on cash flow hedging | Foreign currency exchange contracts | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Cost of sales | (158) | (11) | (860) | ||||||||
Reclassification out of accumulated other comprehensive income | Loss (gain) on cash flow hedging | Interest rate contracts | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Interest expense | (3,466) | 1,187 | 1,460 | ||||||||
Reclassification out of accumulated other comprehensive income | Pension and postretirement plan | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Income (loss) from continuing operations before income tax provision (benefit) | 945 | 1,096 | 1,276 | ||||||||
Income tax expense (benefit) | (363) | (408) | (420) | ||||||||
Net income | 582 | 688 | 856 | ||||||||
Reclassification out of accumulated other comprehensive income | Actuarial loss | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Pension and postretirement plan | 955 | 1,145 | 1,333 | ||||||||
Reclassification out of accumulated other comprehensive income | Prior-service credit | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Pension and postretirement plan | $ (10) | $ (49) | $ (57) |
Stockholders' Equity and Earn69
Stockholders' Equity and Earnings Per Share (Weighted Average Number of Shares Outstanding Reconciliation) (Details) - $ / shares shares in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Equity [Abstract] | |||||||||||
Basic weighted average shares outstanding (in shares) | 6,830 | 6,818 | 7,001 | ||||||||
Dilutive effect of restricted stock awards (in shares) | 43 | 36 | 21 | ||||||||
Diluted weighted average shares outstanding (in shares) | 6,873 | 6,854 | 7,022 | ||||||||
Basic earnings per share: | |||||||||||
Continuing operations (USD per share) | $ 1.41 | $ 0.49 | $ 1.06 | $ 1.21 | $ (0.68) | $ (0.31) | $ 0.28 | $ 1.13 | $ 4.17 | $ 0.43 | $ 0.32 |
Discontinued operations (USD per share) | 0.07 | 0.74 | (0.06) | (0.48) | 4.24 | 0.25 | 0.17 | (0.72) | 0.27 | 3.91 | 2.82 |
Basic earnings per share (USD per share) | 1.48 | 1.23 | 1 | 0.73 | 3.56 | (0.06) | 0.45 | 0.41 | 4.44 | 4.34 | 3.14 |
Diluted earnings per share: | |||||||||||
Continuing operations (USD per share) | 1.40 | 0.49 | 1.06 | 1.20 | (0.68) | (0.31) | 0.28 | 1.13 | 4.14 | 0.43 | 0.32 |
Discontinued operations (USD per share) | 0.07 | 0.74 | (0.06) | (0.47) | 4.21 | 0.25 | 0.17 | (0.72) | 0.27 | 3.89 | 2.81 |
Diluted earnings per share (USD per share) | $ 1.47 | $ 1.23 | $ 1 | $ 0.73 | $ 3.53 | $ (0.06) | $ 0.45 | $ 0.41 | $ 4.41 | $ 4.32 | $ 3.13 |
Income Taxes (Income Before Inc
Income Taxes (Income Before Income Taxes and Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income (loss) before income tax provision (benefit) | |||
Domestic | $ 31,454 | $ (4,251) | $ (4,894) |
Foreign | (2,352) | (2,442) | (2,343) |
Income (loss) from continuing operations before income tax provision (benefit) | 29,102 | (6,693) | (7,237) |
Current income tax provision (benefit): | |||
Federal | (3,885) | (20,847) | (4,526) |
State | 435 | 288 | 278 |
Total current | (3,450) | (20,559) | (4,248) |
Deferred income tax provision (benefit): | |||
Federal | 6,588 | 10,935 | (6,230) |
State | (2,499) | (25) | 968 |
Total deferred | 4,089 | 10,910 | (5,262) |
Income tax provision (benefit) | $ 639 | $ (9,649) | $ (9,510) |
Income Taxes (Textual) (Details
Income Taxes (Textual) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Income tax payments | $ 5,200,000 | $ 400,000 | $ 9,000,000 |
Income tax refunds | 300,000 | 2,400,000 | 100,000 |
Discrete net tax benefit attributable to corporate tax rate reduction on existing deferred tax balances | 3,100,000 | ||
Sequestration estimate on refundable alternative minimum tax credits | 0 | ||
Excess executive remuneration expense disallowance estimate | 0 | ||
Permanent items | 800,000 | 800,000 | |
Net (benefit) expense in interest and penalties related to uncertain tax positions | (700,000) | $ 200,000 | |
Interest and penalties accrued | $ 100,000 | $ 100,000 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of the Federal Statutory and Effective Income Tax Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Income (loss) from continuing operations before income tax provision (benefit) | $ 29,102 | $ (6,693) | $ (7,237) |
Statutory taxes (benefit) at 35.0% | 10,186 | (2,343) | (2,533) |
State and local income taxes | 493 | (1,676) | (1,332) |
Valuation allowances | (1,453) | 2,432 | 2,480 |
Non-deductible expenses | 224 | 1,334 | 424 |
Percentage depletion | (6,253) | (6,373) | (8,406) |
R&D and other federal credits | 301 | 278 | (896) |
Tax settlements | 74 | (3,161) | 551 |
Provisional effect of the TCJA | (3,132) | 0 | 0 |
Other, net | 199 | (140) | 202 |
Income tax provision (benefit) | $ 639 | $ (9,649) | $ (9,510) |
Effective income tax rate from continuing operations | 2.20% | 144.20% | 131.40% |
Statutory tax rate | 35.00% | 35.00% | 35.00% |
Income Taxes (Summary of the To
Income Taxes (Summary of the Total Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets | ||
Tax carryforwards | $ 22,035 | $ 21,527 |
Inventories | 1,878 | 3,389 |
Accrued expenses and reserves | 11,723 | 18,750 |
Partnership investment - development costs | 0 | 3,719 |
Other employee benefits | 4,640 | 5,130 |
Other | 8,933 | 14,737 |
Total deferred tax assets | 49,209 | 67,252 |
Less: Valuation allowance | 13,579 | 12,881 |
Deferred tax assets, net of valuation allowance | 35,630 | 54,371 |
Deferred tax liabilities | ||
Depreciation and depletion | 23,029 | 42,512 |
Partnership investment - development costs | 4,069 | 0 |
Accrued pension benefits | 2,570 | 983 |
Total deferred tax liabilities | 29,668 | 43,495 |
Net deferred asset | $ 5,962 | $ 10,876 |
Income Taxes (Summary of Operat
Income Taxes (Summary of Operating Loss Carryforwards and Tax Credit Carryforwards) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Operating Loss Carryforwards [Line Items] | ||
Net deferred tax asset, net operating loss | $ 22,035 | $ 21,527 |
Total net deferred tax asset | 25,591 | 26,820 |
Total valuation allowance | 14,492 | 14,082 |
Foreign tax authority | ||
Operating Loss Carryforwards [Line Items] | ||
Net deferred tax asset, net operating loss | 1,438 | 732 |
Valuation allowance, net operating loss | 1,438 | 732 |
State and local jurisdiction | ||
Operating Loss Carryforwards [Line Items] | ||
Net deferred tax asset, net operating loss | 16,948 | 15,299 |
Valuation allowance, net operating loss | 13,054 | 13,350 |
Net deferred tax asset, tax credit carryforwards, research | 1,870 | 2,754 |
Net deferred tax asset, alternative minimum tax credit | 5,335 | 8,035 |
Valuation allowance, tax credit | $ 0 | $ 0 |
Income Taxes (Gross Unrecognize
Income Taxes (Gross Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Balance at beginning of period | $ 915 | $ 3,671 | $ 3,285 |
Additions based on tax positions related to prior years | 0 | 181 | |
Reductions based on tax positions related to prior years | (256) | ||
Additions based on tax positions related to the current year | 82 | 211 | 642 |
Reductions due to settlements with taxing authorities | 0 | (1,330) | 0 |
Reductions due to lapse of the applicable statute of limitations | 0 | (1,818) | 0 |
Balance at end of period | $ 997 | $ 915 | $ 3,671 |
Retirement Benefit Plans (Assum
Retirement Benefit Plans (Assumptions Used in Accounting for Defined Benefit Plans) (Details) - Pension Plan | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Expected long-term rate of return on assets for net periodic benefit cost | 7.50% | 7.50% | 7.75% |
Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average discount rates for pension benefit obligation | 3.40% | 3.75% | 3.90% |
Weighted average discount rates for net periodic benefit cost | 3.40% | 3.90% | 3.65% |
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average discount rates for pension benefit obligation | 3.55% | 4.00% | 4.20% |
Weighted average discount rates for net periodic benefit cost | 4.00% | 4.20% | 3.95% |
Retirement Benefit Plans (Net P
Retirement Benefit Plans (Net Periodic Benefit Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | $ 1,746 | $ 1,757 | $ 1,713 |
Expected return on plan assets | (2,843) | (2,789) | (2,733) |
Amortization of actuarial loss | 363 | 415 | 495 |
Amortization of prior service cost | 58 | 58 | 50 |
Settlements | 76 | 90 | 0 |
Net periodic pension income | (600) | (469) | (475) |
Other Postretirement Benefits Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 50 | 70 | 70 |
Interest cost | 101 | 116 | 113 |
Amortization of actuarial loss | 97 | 132 | 91 |
Amortization of prior service cost | (17) | (107) | (107) |
Net periodic pension income | $ 231 | $ 211 | $ 167 |
Retirement Benefit Plans (Other
Retirement Benefit Plans (Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current year actuarial loss (gain) | $ (1,343) | $ 2,573 | $ 955 |
Amortization of actuarial loss | (363) | (415) | (495) |
Amortization of prior service credit | (58) | (58) | (50) |
Settlements | (76) | (90) | 0 |
Total recognized in other comprehensive (income) loss | (1,840) | 2,010 | 410 |
Other Postretirement Benefits Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current year actuarial loss (gain) | 154 | (25) | 226 |
Amortization of actuarial loss | (97) | (132) | (91) |
Amortization of prior service credit | 17 | 107 | 107 |
Total recognized in other comprehensive (income) loss | $ 74 | $ (50) | $ 242 |
Retirement Benefit Plans (Oblig
Retirement Benefit Plans (Obligation and Funded Status) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Amounts recognized in the balance sheets consist of: | |||
Non-current liabilities | $ (11,827) | $ (14,271) | |
Pension Plan | |||
Change in benefit obligation | |||
Projected benefit obligation at beginning of year | 45,318 | 43,559 | |
Interest cost | 1,746 | 1,757 | $ 1,713 |
Actuarial loss (gain) | 1,275 | 2,134 | |
Benefits paid | (2,019) | (1,811) | |
Intercompany transfers | 255 | 321 | |
Projected benefit obligation at end of year | 46,065 | 45,318 | 43,559 |
Accumulated benefit obligation at end of year | 46,065 | 45,318 | |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 34,628 | 37,162 | |
Actual return on plan assets | 5,461 | (1,157) | |
Employer contributions | 712 | 755 | |
Benefits paid | (2,019) | (1,811) | |
Intercompany transfers | (255) | (321) | |
Fair value of plan assets at end of year | 38,527 | 34,628 | 37,162 |
Funded status at end of year | (7,538) | (10,690) | |
Amounts recognized in the balance sheets consist of: | |||
Noncurrent assets | 2,051 | 1,387 | |
Current liabilities | (700) | (721) | |
Non-current liabilities | (8,889) | (11,356) | |
Amount recognized in the balance sheets | (7,538) | (10,690) | |
Components of accumulated other comprehensive loss (income) consist of: | |||
Actuarial loss | 15,363 | 17,145 | |
Prior service cost | 937 | 995 | |
Deferred taxes | (6,481) | (7,127) | |
Accumulated other comprehensive (loss) income | 9,819 | 11,013 | |
Other Postretirement Benefits Plan | |||
Change in benefit obligation | |||
Projected benefit obligation at beginning of year | 3,211 | 3,466 | |
Service cost | 50 | 70 | 70 |
Interest cost | 101 | 116 | 113 |
Actuarial loss (gain) | 154 | (25) | |
Benefits paid | (295) | (416) | |
Projected benefit obligation at end of year | 3,221 | 3,211 | $ 3,466 |
Change in plan assets | |||
Funded status at end of year | (3,221) | (3,211) | |
Amounts recognized in the balance sheets consist of: | |||
Current liabilities | (282) | (294) | |
Non-current liabilities | (2,939) | (2,917) | |
Amount recognized in the balance sheets | (3,221) | (3,211) | |
Components of accumulated other comprehensive loss (income) consist of: | |||
Actuarial loss | 1,040 | 983 | |
Prior service cost | (78) | (95) | |
Deferred taxes | 287 | 284 | |
Accumulated other comprehensive (loss) income | $ 1,249 | $ 1,172 |
Retirement Benefit Plans (Narra
Retirement Benefit Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, total costs | $ 4.5 | $ 4 | $ 3.8 |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actuarial loss included in accumulated other comprehensive income (loss) expected to be recognized in net periodic benefit cost, before tax | 0.5 | ||
Actuarial loss included in accumulated other comprehensive income (loss) expected to be recognized in net periodic benefit cost, net of tax | 0.4 | ||
Prior service cost (credit) included in accumulated other comprehensive income (loss) expected to be recognized in net periodic benefit cost, (less than) | 0.1 | ||
Other Postretirement Benefits Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actuarial loss included in accumulated other comprehensive income (loss) expected to be recognized in net periodic benefit cost, before tax | 0.1 | ||
Actuarial loss included in accumulated other comprehensive income (loss) expected to be recognized in net periodic benefit cost, net of tax | 0.1 | ||
Prior service cost (credit) included in accumulated other comprehensive income (loss) expected to be recognized in net periodic benefit cost, (less than) | $ (0.1) |
Retirement Benefit Plans (Sched
Retirement Benefit Plans (Schedule of Expected Benefit Payments) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | $ 2,537 |
2,019 | 2,478 |
2,020 | 2,559 |
2,021 | 2,671 |
2,022 | 2,768 |
2023- 2027 | 14,222 |
Total | 27,235 |
Other Postretirement Benefits Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | 281 |
2,019 | 323 |
2,020 | 357 |
2,021 | 357 |
2,022 | 324 |
2023- 2027 | 1,395 |
Total | $ 3,037 |
Retirement Benefit Plans (Actua
Retirement Benefit Plans (Actual Allocation Percentage and Target Allocation Percentage for the U.S. Pension Plan Assets) (Details) - Pension Plan | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 47.20% | 46.40% |
Non-U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 21.10% | 19.60% |
Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 31.40% | 33.60% |
Money market | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 0.30% | 0.40% |
Minimum | U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Target Allocation Percentage | 0.36 | |
Minimum | Non-U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Target Allocation Percentage | 0.16 | |
Minimum | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Target Allocation Percentage | 0.3 | |
Minimum | Money market | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Target Allocation Percentage | 0 | |
Maximum | U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Target Allocation Percentage | 0.54 | |
Maximum | Non-U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Target Allocation Percentage | 0.24 | |
Maximum | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Target Allocation Percentage | 0.4 | |
Maximum | Money market | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Target Allocation Percentage | 0.1 |
Retirement Benefit Plans (Fair
Retirement Benefit Plans (Fair Value Hierarchy) (Details) - Pension Plan - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of each major category of U.S. plan assets | $ 38,527 | $ 34,628 | $ 37,162 |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of each major category of U.S. plan assets | 38,527 | 34,628 | |
Level 1 | U.S. equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of each major category of U.S. plan assets | 18,175 | 16,054 | |
Level 1 | Non-U.S. equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of each major category of U.S. plan assets | 8,120 | 6,792 | |
Level 1 | Fixed income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of each major category of U.S. plan assets | 12,097 | 11,657 | |
Level 1 | Money market | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of each major category of U.S. plan assets | $ 135 | $ 125 |
Retirement Benefit Plans (Ass84
Retirement Benefit Plans (Assumptions Used in Accounting for Postretirement Benefit Plans) (Details) - Other Postretirement Benefits Plan | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Weighted average discount rates for pension benefit obligation | 3.10% | 3.25% | 3.40% |
Weighted average discount rates for net periodic benefit cost | 3.25% | 3.40% | 3.25% |
Health care cost trend rate assumed for next year | 7.00% | 7.30% | 7.30% |
Rate to which the cost trend rate is assumed to decline (ultimate trend rate) | 5.00% | 5.00% | 5.00% |
Year that the rate reaches the ultimate trend rate | 2,025 | 2,025 | 2,025 |
Retirement Benefit Plans (One-P
Retirement Benefit Plans (One-Percentage-Point Change in Assumed Health Care Cost Trend Rate) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Effect of one-percentage point change in assumed health care cost rrend rates | |
Effect on total of service and interest cost of 1-percentage point increase | $ 12 |
Effect on total of service and interest cost of 1-percentage point decrease | (11) |
Effect on postretirement benefit obligation of 1-percentage point increase | 254 |
Effect on postretirement benefit obligation of 1-percentage point decrease | $ (235) |
Business Segments (Textual) (De
Business Segments (Textual) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Customer concentration risk | Sales revenue, net | Choctaw Generation Limited Partnership | NACoal | |||
Segment Reporting Information [Line Items] | |||
Revenue from major customer, percentage | 60.00% | 69.00% | 57.00% |
Customer concentration risk | Sales revenue, net | Cemex | NACoal | |||
Segment Reporting Information [Line Items] | |||
Revenue from major customer, percentage | 18.00% | 16.00% | |
Customer concentration risk | Sales revenue, net | Alabama Coal Cooperative | Reed Minerals | |||
Segment Reporting Information [Line Items] | |||
Revenue from major customer, percentage | 16.00% | ||
NACoal | |||
Segment Reporting Information [Line Items] | |||
Management fees expense | $ 5.8 | $ 7.4 | $ 5.3 |
HBBHC | |||
Segment Reporting Information [Line Items] | |||
Management fees expense | $ (3) | $ (4.1) | $ (3.9) |
Business Segments (Statements o
Business Segments (Statements of Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues from external customers | $ 104,778 | $ 111,081 | $ 147,998 | ||||||||
Gross profit (loss) | $ 5,289 | $ 2,475 | $ 4,597 | $ 4,558 | $ 2,230 | $ 1,647 | $ 2,237 | $ 5,968 | 16,919 | 12,082 | (11,232) |
Earnings of unconsolidated mines | 16,734 | 16,197 | 13,475 | 14,955 | 14,453 | 15,102 | 13,035 | 12,648 | 61,361 | 55,238 | 48,432 |
Selling, general and administrative expenses, including Amortization of intangible assets | 49,614 | 51,366 | 42,711 | ||||||||
Operating profit (loss) | 6,506 | 6,989 | 9,513 | 9,806 | (707) | (12,779) | 3,526 | 8,301 | 32,814 | (1,659) | (3,727) |
Operating Segments | NACoal | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues from external customers | 26,437 | 21,941 | 28,100 | 28,300 | 25,303 | 32,402 | 23,089 | 30,287 | 104,778 | 111,081 | 147,998 |
Gross profit (loss) | 17,198 | 12,341 | (10,816) | ||||||||
Selling, general and administrative expenses, including Amortization of intangible assets | 42,516 | 44,347 | 38,867 | ||||||||
Operating profit (loss) | 8,550 | 8,925 | 10,876 | 11,326 | 1,966 | (10,912) | 4,823 | 9,742 | 39,677 | 5,619 | 521 |
NACCO and Other | NACCO and Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross profit (loss) | (279) | (259) | (416) | ||||||||
Selling, general and administrative expenses, including Amortization of intangible assets | 7,098 | 7,019 | 3,844 | ||||||||
Operating profit (loss) | $ (2,044) | $ (1,936) | $ (1,363) | $ (1,520) | $ (2,673) | $ (1,867) | $ (1,297) | $ (1,441) | $ (6,863) | $ (7,278) | $ (4,248) |
Business Segments (Balance Shee
Business Segments (Balance Sheets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Total assets | $ 389,552 | $ 668,021 | $ 655,408 |
Depreciation, depletion and amortization | 12,767 | 13,050 | 17,372 |
Capital expenditures | 15,704 | 10,165 | 4,444 |
Operating Segments | NACoal | |||
Segment Reporting Information [Line Items] | |||
Total assets | 277,538 | 287,011 | 303,138 |
Depreciation, depletion and amortization | 12,444 | 12,682 | 17,067 |
Capital expenditures | 15,692 | 10,109 | 4,116 |
NACCO and Other | NACCO and Other | |||
Segment Reporting Information [Line Items] | |||
Total assets | 135,434 | 109,022 | 64,069 |
Depreciation, depletion and amortization | 323 | 368 | 305 |
Capital expenditures | 12 | 56 | 328 |
Eliminations | |||
Segment Reporting Information [Line Items] | |||
Total assets | (23,420) | (39,183) | (21,850) |
Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | |||
Segment Reporting Information [Line Items] | |||
Total assets | $ 0 | $ 311,171 | $ 310,051 |
Quarterly Results of Operatio89
Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 104,778 | $ 111,081 | $ 147,998 | ||||||||
Gross profit | $ 5,289 | $ 2,475 | $ 4,597 | $ 4,558 | $ 2,230 | $ 1,647 | $ 2,237 | $ 5,968 | 16,919 | 12,082 | (11,232) |
Earnings of unconsolidated mines | 16,734 | 16,197 | 13,475 | 14,955 | 14,453 | 15,102 | 13,035 | 12,648 | 61,361 | 55,238 | 48,432 |
Operating profit (loss) | 6,506 | 6,989 | 9,513 | 9,806 | (707) | (12,779) | 3,526 | 8,301 | 32,814 | (1,659) | (3,727) |
Income from continuing operations | 28,463 | 2,956 | 2,273 | ||||||||
Income from discontinued operations | 1,874 | 26,651 | 19,711 | ||||||||
Net income | $ 10,172 | $ 8,398 | $ 6,789 | $ 4,978 | $ 24,131 | $ (441) | $ 3,115 | $ 2,802 | $ 30,337 | $ 29,607 | $ 21,984 |
Basic earnings (loss) per share: | |||||||||||
Continuing operations (USD per share) | $ 1.41 | $ 0.49 | $ 1.06 | $ 1.21 | $ (0.68) | $ (0.31) | $ 0.28 | $ 1.13 | $ 4.17 | $ 0.43 | $ 0.32 |
Discontinued operations (USD per share) | 0.07 | 0.74 | (0.06) | (0.48) | 4.24 | 0.25 | 0.17 | (0.72) | 0.27 | 3.91 | 2.82 |
Basic earnings per share (USD per share) | 1.48 | 1.23 | 1 | 0.73 | 3.56 | (0.06) | 0.45 | 0.41 | 4.44 | 4.34 | 3.14 |
Diluted earnings (loss) per share: | |||||||||||
Continuing operations (USD per share) | 1.40 | 0.49 | 1.06 | 1.20 | (0.68) | (0.31) | 0.28 | 1.13 | 4.14 | 0.43 | 0.32 |
Discontinued operations (USD per share) | 0.07 | 0.74 | (0.06) | (0.47) | 4.21 | 0.25 | 0.17 | (0.72) | 0.27 | 3.89 | 2.81 |
Diluted earnings per share (USD per share) | $ 1.47 | $ 1.23 | $ 1 | $ 0.73 | $ 3.53 | $ (0.06) | $ 0.45 | $ 0.41 | $ 4.41 | $ 4.32 | $ 3.13 |
NACoal | |||||||||||
Diluted earnings (loss) per share: | |||||||||||
Legal matter resolution charge | $ 3,300 | ||||||||||
Operating Segments | NACoal | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 26,437 | $ 21,941 | $ 28,100 | $ 28,300 | 25,303 | $ 32,402 | $ 23,089 | $ 30,287 | $ 104,778 | $ 111,081 | $ 147,998 |
Gross profit | 17,198 | 12,341 | (10,816) | ||||||||
Operating profit (loss) | 8,550 | 8,925 | 10,876 | 11,326 | 1,966 | (10,912) | 4,823 | 9,742 | 39,677 | 5,619 | 521 |
Income from continuing operations | 9,679 | 3,331 | 7,233 | 8,220 | (4,616) | (2,132) | 1,944 | 7,760 | |||
NACCO and Other | NACCO and Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross profit | (279) | (259) | (416) | ||||||||
Operating profit (loss) | (2,044) | (1,936) | (1,363) | (1,520) | (2,673) | (1,867) | (1,297) | (1,441) | (6,863) | (7,278) | $ (4,248) |
Income from discontinued operations | $ 493 | $ 5,067 | $ (444) | $ (3,242) | $ 28,747 | 1,691 | $ 1,171 | $ (4,958) | |||
Centennial | |||||||||||
Diluted earnings (loss) per share: | |||||||||||
Asset impairment | $ 17,400 | $ 1,000 | $ 17,400 |
Parent Company Condensed Bala90
Parent Company Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||||
Cash and cash equivalents | $ 101,600 | $ 69,308 | $ 35,701 | $ 54,148 |
Accounts receivable from affiliates | 19,919 | 7,404 | ||
Property, plant and equipment, net | 120,068 | 115,106 | ||
Other non-current assets | 23,063 | 23,089 | ||
Total assets | 389,552 | 668,021 | 655,408 | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Current liabilities | 53,976 | 221,828 | ||
Deferred compensation | 12,939 | 13,578 | ||
Other long-term liabilities | 12,336 | 9,737 | ||
Stockholders’ equity | 219,448 | 220,293 | ||
Total liabilities and equity | 389,552 | 668,021 | ||
Parent Company | ||||
ASSETS | ||||
Cash and cash equivalents | 94,646 | 57,917 | $ 22,506 | $ 53,415 |
Accounts receivable from affiliates | 9,189 | 0 | ||
Other current assets | 1,714 | 2,518 | ||
Investment in subsidiaries | 154,514 | 185,559 | ||
Property, plant and equipment, net | 310 | 935 | ||
Other non-current assets | 9,550 | 13,870 | ||
Total assets | 269,923 | 260,799 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Current liabilities | 7,627 | 7,055 | ||
Current intercompany accounts payable, net | 11,858 | 1,406 | ||
Other long-term liabilities | 201 | 367 | ||
Stockholders’ equity | 219,448 | 220,293 | ||
Total liabilities and equity | 269,923 | 260,799 | ||
Restricted investments | 1,800 | |||
Unrestricted investment | 300 | |||
Parent Company | HBB | ||||
ASSETS | ||||
Investment in subsidiaries | 0 | 44,057 | ||
Parent Company | KC | ||||
ASSETS | ||||
Investment in subsidiaries | 0 | 21,394 | ||
Parent Company | NACoal | ||||
ASSETS | ||||
Investment in subsidiaries | 141,174 | 105,645 | ||
Parent Company | Other, primarily Bellaire | ||||
ASSETS | ||||
Investment in subsidiaries | 13,340 | 14,463 | ||
Parent Company | Bellaire | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Note payable to Bellaire | $ 17,850 | $ 18,100 |
Unconsolidated Subsidiaries (De
Unconsolidated Subsidiaries (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Equity Method Investments [Line Items] | |||
Investment in unconsolidated subsidiaries | $ 16,335 | $ 31,054 | |
Unconsolidated mines | NACoal | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in unconsolidated subsidiaries | 16,300 | 31,100 | |
Maximum risk of loss | 5,200 | 4,600 | $ 4,000 |
Statement of Operations | |||
Revenues | 791,264 | 649,050 | 608,349 |
Gross profit | 87,760 | 80,068 | 71,727 |
Income before income taxes | 62,607 | 54,857 | 49,641 |
Net income | 55,268 | 40,590 | $ 39,181 |
Balance Sheet | |||
Current assets | 179,316 | 160,554 | |
Non-current assets | 883,919 | 901,221 | |
Current liabilities | 175,844 | 127,361 | |
Non-current liabilities | 882,200 | 929,774 | |
Dividends from unconsolidated mines | $ 54,700 | $ 39,900 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Jones Day | |||
Related Party Transaction [Line Items] | |||
Legal services | $ 3 | $ 1.2 | $ 1.6 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | Feb. 14, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Subsequent Event [Line Items] | |||
Deferred compensation | $ 12,939 | $ 13,578 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Deferred compensation | $ 13,000 |
Schedule I - Condensed Financ94
Schedule I - Condensed Financial Information of the Parent (Condensed Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||||
Cash and cash equivalents | $ 101,600 | $ 69,308 | $ 35,701 | $ 54,148 |
Accounts receivable from affiliates | 19,919 | 7,404 | ||
Property, plant and equipment, net | 120,068 | 115,106 | ||
Other non-current assets | 23,063 | 23,089 | ||
Total assets | 389,552 | 668,021 | 655,408 | |
LIABILITIES AND EQUITY | ||||
Current liabilities | 53,976 | 221,828 | ||
Deferred compensation | 12,939 | 13,578 | ||
Other long-term liabilities | 12,336 | 9,737 | ||
Stockholders’ equity | 219,448 | 220,293 | ||
Total liabilities and equity | 389,552 | 668,021 | ||
Parent Company | ||||
ASSETS | ||||
Cash and cash equivalents | 94,646 | 57,917 | $ 22,506 | $ 53,415 |
Accounts receivable from affiliates | 9,189 | 0 | ||
Other current assets | 1,714 | 2,518 | ||
Investment in subsidiaries | 154,514 | 185,559 | ||
Property, plant and equipment, net | 310 | 935 | ||
Other non-current assets | 9,550 | 13,870 | ||
Total assets | 269,923 | 260,799 | ||
LIABILITIES AND EQUITY | ||||
Current liabilities | 7,627 | 7,055 | ||
Current intercompany accounts payable, net | 11,858 | 1,406 | ||
Other long-term liabilities | 201 | 367 | ||
Stockholders’ equity | 219,448 | 220,293 | ||
Total liabilities and equity | 269,923 | 260,799 | ||
Parent Company | HBB | ||||
ASSETS | ||||
Investment in subsidiaries | 0 | 44,057 | ||
Parent Company | KC | ||||
ASSETS | ||||
Investment in subsidiaries | 0 | 21,394 | ||
Parent Company | NACoal | ||||
ASSETS | ||||
Investment in subsidiaries | 141,174 | 105,645 | ||
Parent Company | Other, primarily Bellaire | ||||
ASSETS | ||||
Investment in subsidiaries | 13,340 | 14,463 | ||
Parent Company | Bellaire | ||||
LIABILITIES AND EQUITY | ||||
Note payable to Bellaire | $ 17,850 | $ 18,100 |
Schedule I - Condensed Financ95
Schedule I - Condensed Financial Information of the Parent (Condensed Statements of Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Other, net | $ (72) | $ 2,151 | $ (331) | ||||||||
Other (income) expense | 3,712 | 5,034 | 3,510 | ||||||||
Administrative and general expenses | 47,491 | 48,863 | 40,105 | ||||||||
Income tax benefit | 639 | (9,649) | (9,510) | ||||||||
Income from continuing operations | 28,463 | 2,956 | 2,273 | ||||||||
Income from discontinued operations | 1,874 | 26,651 | 19,711 | ||||||||
Net income | $ 10,172 | $ 8,398 | $ 6,789 | $ 4,978 | $ 24,131 | $ (441) | $ 3,115 | $ 2,802 | 30,337 | 29,607 | 21,984 |
Foreign currency translation adjustment | 1,725 | (2,078) | (2,756) | ||||||||
Deferred gain on available for sale securities, net of tax | 834 | 413 | 17 | ||||||||
Current period cash flow hedging activity, net of $941 tax expense in 2017, $73 tax benefit in 2016 and $357 tax benefit in 2015 | 1,543 | (252) | (577) | ||||||||
Reclassification of hedging activities into earnings, net of $1,255 tax expense in 2017, $419 tax benefit in 2016 and $191 tax benefit in 2015 | (2,369) | 757 | 409 | ||||||||
Current period pension and postretirement plan adjustment, net of $440 tax expense in 2017, $1,098 tax benefit in 2016 and $1,222 tax benefit in 2015 | 749 | (2,011) | (1,204) | ||||||||
Reclassification of pension and postretirement adjustments into earnings, net of $363 tax benefit in 2017, $408 tax benefit in 2016 and $420 tax benefit in 2015 | 582 | 688 | 856 | ||||||||
Total other comprehensive income (loss) | 3,064 | (2,483) | (3,255) | ||||||||
Comprehensive income | 33,401 | 27,124 | 18,729 | ||||||||
Current period cash flow hedging activity, tax benefit | 941 | (73) | (357) | ||||||||
Reclassification of hedging activities into earnings, tax benefit | 1,255 | (419) | (191) | ||||||||
Current period pension and postretirement plan adjustment, tax benefit | 440 | (1,098) | (1,222) | ||||||||
Reclassification of pension and post retirement adjustments into earnings, tax benefit | (363) | (408) | (420) | ||||||||
Parent Company | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Intercompany interest expense | 1,256 | 1,285 | 1,309 | ||||||||
Other, net | (314) | (332) | (270) | ||||||||
Other (income) expense | 942 | 953 | 1,039 | ||||||||
Administrative and general expenses | 6,466 | 6,881 | 3,704 | ||||||||
Income (loss) from continuing operations before income tax provision (benefit) | (7,408) | (7,834) | (4,743) | ||||||||
Income tax benefit | (366) | (2,295) | (1,496) | ||||||||
Net loss before equity in earnings of subsidiaries | (7,042) | (5,539) | (3,247) | ||||||||
Equity in earnings of subsidiaries | 35,505 | 8,495 | 5,520 | ||||||||
Income from continuing operations | 28,463 | 2,956 | 2,273 | ||||||||
Income from discontinued operations | 1,874 | 26,651 | 19,711 | ||||||||
Net income | 30,337 | 29,607 | 21,984 | ||||||||
Foreign currency translation adjustment | 1,725 | (2,078) | (2,756) | ||||||||
Deferred gain on available for sale securities, net of tax | 834 | 413 | 17 | ||||||||
Current period cash flow hedging activity, net of $941 tax expense in 2017, $73 tax benefit in 2016 and $357 tax benefit in 2015 | 1,543 | (252) | (577) | ||||||||
Reclassification of hedging activities into earnings, net of $1,255 tax expense in 2017, $419 tax benefit in 2016 and $191 tax benefit in 2015 | (2,369) | 757 | 409 | ||||||||
Current period pension and postretirement plan adjustment, net of $440 tax expense in 2017, $1,098 tax benefit in 2016 and $1,222 tax benefit in 2015 | 749 | (2,011) | (1,204) | ||||||||
Reclassification of pension and postretirement adjustments into earnings, net of $363 tax benefit in 2017, $408 tax benefit in 2016 and $420 tax benefit in 2015 | 582 | 688 | 856 | ||||||||
Total other comprehensive income (loss) | 3,064 | (2,483) | (3,255) | ||||||||
Comprehensive income | 33,401 | 27,124 | 18,729 | ||||||||
Current period cash flow hedging activity, tax benefit | 941 | (73) | (357) | ||||||||
Reclassification of hedging activities into earnings, tax benefit | 1,255 | (419) | (191) | ||||||||
Current period pension and postretirement plan adjustment, tax benefit | 440 | (1,098) | (1,222) | ||||||||
Reclassification of pension and post retirement adjustments into earnings, tax benefit | $ (363) | $ (408) | $ (420) |
Schedule I - Condensed Financ96
Schedule I - Condensed Financial Information of the Parent (Condensed Statements of Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Activities | |||
Income from continuing operations | $ 28,463 | $ 2,956 | $ 2,273 |
Net cash provided by operating activities | 41,305 | 93,935 | 108,002 |
Investing Activities | |||
Proceeds from the sale of assets | 3,956 | 7,983 | 3,430 |
Expenditures for property, plant and equipment | (15,704) | (10,165) | (4,444) |
Net cash used for investing activities | (15,005) | (9,817) | (8,291) |
Financing Activities | |||
Cash dividends received from Hamilton Beach Brands Holding Co. (See Note 3) | 38,000 | 42,000 | 15,000 |
Purchase of treasury shares | 0 | (6,044) | (24,010) |
Cash dividends paid | (6,682) | (7,262) | (7,296) |
Other | (1,324) | (3) | 922 |
Net cash used for financing activities | (2,306) | (55,710) | (108,301) |
Cash and Cash Equivalents | |||
Total increase (decrease) for the year | 24,065 | 28,149 | (8,636) |
Balance at the beginning of the year | 69,308 | 35,701 | 54,148 |
Balance at the end of the year | 101,600 | 69,308 | 35,701 |
Parent Company | |||
Operating Activities | |||
Income from continuing operations | 28,463 | 2,956 | 2,273 |
Equity in earnings of subsidiaries | 35,505 | 8,495 | 5,520 |
Parent company only net loss | (7,042) | (5,539) | (3,247) |
Net changes related to operating activities | 7,881 | 2,684 | (11,015) |
Net cash provided by operating activities | 839 | (2,855) | (14,262) |
Investing Activities | |||
Proceeds from the sale of assets | 834 | 0 | 0 |
Expenditures for property, plant and equipment | (12) | (25) | (328) |
Net cash used for investing activities | 822 | (25) | (328) |
Financing Activities | |||
Dividends received from subsidiaries | 4,000 | 52,200 | 15,000 |
Cash dividends received from Hamilton Beach Brands Holding Co. (See Note 3) | 38,000 | 0 | 0 |
Notes payable to Bellaire | (250) | (600) | 0 |
Purchase of treasury shares | 0 | (6,044) | (24,010) |
Cash dividends paid | (6,682) | (7,262) | (7,296) |
Other | 0 | (3) | (13) |
Net cash used for financing activities | 35,068 | 38,291 | (16,319) |
Cash and Cash Equivalents | |||
Total increase (decrease) for the year | 36,729 | 35,411 | (30,909) |
Balance at the beginning of the year | 57,917 | 22,506 | 53,415 |
Balance at the end of the year | $ 94,646 | $ 57,917 | $ 22,506 |
Schedule I - Condensed Financ97
Schedule I - Condensed Financial Information of the Parent (Textual) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | $ 101,600 | $ 69,308 | $ 35,701 | $ 54,148 |
Parent Company | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Unrestricted investment | 300 | |||
Cash and cash equivalents | $ 94,646 | $ 57,917 | $ 22,506 | $ 53,415 |
Schedule II - Valuation and Q98
Schedule II - Valuation and Qualifying Accounts (Details) - Deferred tax valuation allowances - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Valuation allowances and reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 12,881 | $ 10,433 | $ 7,615 |
Charged to Costs and Expenses | 699 | 2,426 | 2,315 |
Charged to Other Accounts | (1) | 22 | 503 |
Deductions | 0 | 0 | 0 |
Balance at End of Period | $ 13,579 | $ 12,881 | $ 10,433 |