Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 22, 2019 | Jun. 30, 2018 | |
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 | ||
Entity Filer Category | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
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 | $ 145,248,626 | ||
Shares Outstanding Class A | |||
Entity Information [Line Items] | |||
Shares Outstanding | 5,428,269 | ||
Shares Outstanding Class B | |||
Entity Information [Line Items] | |||
Shares Outstanding | 1,568,810 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | $ 135,375 | $ 104,778 |
Cost of sales | 105,407 | 87,859 |
Gross profit | 29,968 | 16,919 |
Earnings of unconsolidated operations | 64,994 | 61,361 |
Operating expenses | ||
Selling, general and administrative expenses | 49,192 | 47,491 |
Centennial asset impairment charge | 0 | 982 |
Amortization of intangible assets | 3,038 | 2,123 |
Gain on sale of assets | (892) | (5,130) |
Operating Expenses | 51,338 | 45,466 |
Operating profit | 43,624 | 32,814 |
Other expense (income) | ||
Interest expense | 1,998 | 3,440 |
Income from other unconsolidated affiliates | (1,276) | (1,246) |
Closed mine obligations | 1,297 | 1,590 |
Other, net, including interest income | (558) | (72) |
Other (income) expense | 1,461 | 3,712 |
Income from continuing operations before income tax provision | 42,163 | 29,102 |
Income tax provision from continuing operations | 7,378 | 639 |
Income from continuing operations | 34,785 | 28,463 |
Discontinued operations, net of tax expense of $2,162 in 2017 | 0 | 1,874 |
Net income | $ 34,785 | $ 30,337 |
Basic earnings per share: | ||
Continuing operations (USD per share) | $ 5.02 | $ 4.17 |
Discontinued operations (USD per share) | 0 | 0.27 |
Basic earnings per share (USD per share) | 5.02 | 4.44 |
Diluted earnings per share: | ||
Continuing operations (USD per share) | 5 | 4.14 |
Discontinued operations (USD per share) | 0 | 0.27 |
Diluted earnings per share (USD per share) | $ 5 | $ 4.41 |
Basic weighted average shares outstanding (in shares) | 6,924 | 6,830 |
Diluted weighted average shares outstanding (in shares) | 6,960 | 6,873 |
Revenue - consolidated mines | ||
Revenues | $ 117,869 | $ 92,008 |
Cost of sales | 102,922 | 85,657 |
Revenue - royalty and other | ||
Revenues | 17,506 | 12,770 |
Cost of sales | $ 2,485 | $ 2,202 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | ||
Discontinued operations, net of tax expense of $2,162 in 2017 | $ 0 | $ 2,162 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 34,785 | $ 30,337 |
Other comprehensive income (loss) | ||
Foreign currency translation adjustment | 0 | 1,725 |
Deferred gain on available for sale securities, net of tax | 0 | 834 |
Current period cash flow hedging activity, net of $941 tax expense in 2017 | 0 | 1,543 |
Reclassification of hedging activities into earnings, net of $1,255 tax expense in 2017 | 0 | (2,369) |
Current period pension and postretirement plan adjustment, net of $14 tax benefit in 2018 and net of $440 tax expense in 2017, respectively | (301) | 749 |
Reclassification of pension and postretirement adjustments into earnings, net of $85 and $363 tax benefit in 2018 and 2017, respectively | 489 | 582 |
Total other comprehensive income | 188 | 3,064 |
Comprehensive income | $ 34,973 | $ 33,401 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Current period cash flow hedging activity, tax benefit | $ 0 | $ 941 |
Reclassification of hedging activities into earnings, tax benefit | 0 | 1,255 |
Current period pension and postretirement plan adjustment, tax benefit | (14) | 440 |
Reclassification of pension and post retirement adjustments into earnings, tax benefit | $ (85) | $ (363) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 85,257 | $ 101,600 |
Trade accounts receivable, net of allowances of $1,523 in 2018 and 2017 | 20,817 | 14,611 |
Accounts receivable from affiliates | 7,999 | 19,919 |
Inventories | 31,209 | 30,015 |
Assets held for sale | 4,330 | 0 |
Prepaid expenses and other | 14,562 | 10,843 |
Total current assets | 164,174 | 176,988 |
Property, plant and equipment, net | 124,554 | 120,068 |
Intangibles, net | 40,516 | 43,554 |
Deferred income taxes | 0 | 5,962 |
Investment in unconsolidated subsidiaries | 20,091 | 16,335 |
Deferred costs | 3,244 | 3,582 |
Other non-current assets | 24,412 | 23,063 |
Total assets | 376,991 | 389,552 |
Current liabilities | ||
Accounts payable | 7,746 | 7,575 |
Accounts payable to affiliates | 1,653 | 1,925 |
Revolving credit agreements | 4,000 | 15,000 |
Current maturities of long-term debt | 654 | 1,125 |
Asset retirement obligations | 1,826 | 3,092 |
Accrued payroll | 19,853 | 17,204 |
Other current liabilities | 6,516 | 8,055 |
Total current liabilities | 42,248 | 53,976 |
Long-term debt | 6,367 | 42,021 |
Asset retirement obligations | 35,877 | 37,005 |
Pension and other postretirement obligations | 10,429 | 11,827 |
Deferred income taxes | 2,846 | 0 |
Deferred compensation | 12,939 | 12,939 |
Other long-term liabilities | 15,581 | 12,336 |
Total liabilities | 126,287 | 170,104 |
Common stock: | ||
Capital in excess of par value | 7,042 | 4,447 |
Retained earnings | 250,352 | 216,490 |
Accumulated other comprehensive loss | (13,611) | (8,341) |
Total stockholders’ equity | 250,704 | 219,448 |
Total liabilities and equity | 376,991 | 389,552 |
Class A Common Stock | ||
Common stock: | ||
Common stock | 5,352 | 5,282 |
Class B Common Stock | ||
Common stock: | ||
Common stock | $ 1,569 | $ 1,570 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) $ in Thousands | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / 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 | 5,352,590 | 5,282,106 |
Class B Common Stock | ||
Common stock, par value (in usd per share) | $ / shares | $ 1 | $ 1 |
Common stock, shares outstanding (in shares) | shares | 1,568,810 | 1,570,146 |
Common stock, convertible conversion ratio | 1 | 1 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Activities | ||
Net income | $ 34,785 | $ 30,337 |
Income from discontinued operations | 0 | 1,874 |
Income from continuing operations | 34,785 | 28,463 |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 14,683 | 12,767 |
Amortization of deferred financing fees | 334 | 471 |
Deferred income taxes | 9,281 | 4,089 |
Centennial asset impairment charge | 0 | 982 |
Stock-based compensation | 3,958 | 4,520 |
Gain on sale of assets | (892) | (5,130) |
Other | (7,946) | 11,303 |
Working capital changes: | ||
Affiliates receivable/payable | 6,771 | 516 |
Accounts receivable | (3,008) | (9,311) |
Inventories | (1,193) | (1,129) |
Other current assets | (508) | (982) |
Accounts payable | 60 | 1,049 |
Income taxes receivable/payable | (2,478) | 1,063 |
Other current liabilities | 775 | 334 |
Net cash provided by operating activities of continuing operations | 54,622 | 49,005 |
Net cash used for operating activities of discontinued operations | 0 | (7,700) |
Net cash provided by operating activities | 54,622 | 41,305 |
Investing Activities | ||
Expenditures for property, plant and equipment | (20,930) | (15,704) |
Proceeds from the sale of assets | 1,454 | 3,956 |
Other | 1,089 | 1,088 |
Net cash used for investing activities of continuing operations | (18,387) | (10,660) |
Net cash used for investing activities of discontinued operations | 0 | (4,345) |
Net cash used for investing activities | (18,387) | (15,005) |
Financing Activities | ||
Net reductions to revolving credit agreement | (47,125) | (6,047) |
Additions (reductions) to long-term debt | 396 | (30,000) |
Cash dividends paid | (4,578) | (6,682) |
Cash dividends received from Hamilton Beach Brands Holding Co. (See Note 3) | 0 | 38,000 |
Purchase of treasury shares | (1,294) | 0 |
Other | 23 | (1,324) |
Net cash used for financing activities of continuing operations | (52,578) | (6,053) |
Net cash provided by financing activities of discontinued operations | 0 | 3,747 |
Net cash used for financing activities | (52,578) | (2,306) |
Effect of exchange rate changes on cash of discontinued operations | 0 | 71 |
Cash and Cash Equivalents | ||
Total (decrease) increase for the year | (16,343) | 24,065 |
Net increase related to discontinued operations | 0 | 8,227 |
Balance at the beginning of the year | 101,600 | 69,308 |
Balance at the end of the year | $ 85,257 | $ 101,600 |
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, 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 | $ 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) | |
Balance, beginning of period at Dec. 31, 2017 | 219,448 | 5,282 | 1,570 | 4,447 | 216,490 | 0 | 2,727 | 0 | (11,068) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
ASU 2018-02 adoption (See Note 2) | 160 | 2,891 | (2,731) | |||||||
Stock-based compensation | 3,958 | 108 | 3,850 | |||||||
Purchase of treasury shares | (1,294) | (39) | (1,255) | |||||||
Conversion of Class B to Class A shares | 0 | 1 | (1) | |||||||
Net income | 34,785 | 34,785 | 34,785 | |||||||
Cash dividends on common stock | (4,578) | (4,578) | ||||||||
Current period other comprehensive income (loss) | (301) | (301) | ||||||||
Reclassification adjustment to net income | 489 | 489 | ||||||||
Balance, end of period at Dec. 31, 2018 | $ 250,704 | $ 5,352 | $ 1,569 | $ 7,042 | 250,352 | $ 0 | 0 | $ 0 | $ (13,611) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Cumulative effect of new accounting principles on retained earnings | Accounting Standards Update 2014-09 | (1,963) | (1,963) | ||||||||
Cumulative effect of new accounting principles on retained earnings | Accounting Standards Update 2016-01 | $ 0 | $ 2,727 | $ (2,727) |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends on Class A and Class B common stock (in usd per share) | $ 0.66 | $ 0.9775 |
Principles of Consolidation and
Principles of Consolidation and Nature of Operations | 12 Months Ended |
Dec. 31, 2018 | |
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 operates and maintains 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 commenced 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 operations” in the Consolidated Statements of Operations, with related taxes included in the provision for income taxes. The Company has included the pre-tax earnings of the Unconsolidated Mines above operating profit as they are an integral component of the Company's business and operating results. MLMC is a consolidated entity because NACoal pays all operating costs and provides the capital for the mine. MLMC sells coal to its customer at a contractually agreed upon price which adjusts monthly, primarily based on changes in the level of established indices which reflect general U.S. inflation rates. Centennial Natural Resources, LLC ("Centennial"), which ceased coal production at the end of 2015, is also a consolidated entity. NAM primarily provides value-added services for independently owned limestone quarries and is reimbursed by its customers based on production costs plus a management fee per unit of limestone delivered. The financial results for NAM are included in the consolidated mining operations or unconsolidated mining operations based on each entity's structure. 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 limestone delivered. The fees earned adjust over time in line with various indices which reflect general U.S. inflation rates. 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 and owns the mineral rights of various properties throughout the U.S. All of the unconsolidated subsidiaries are accounted for under the equity method. See Note 17 for further discussion. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
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 valuation. 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 or the units-of-production 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 assets based on estimated recoverable tonnages. Repairs and maintenance costs are expensed when incurred, unless such costs extend the estimated useful life of the asset, in which case such costs are capitalized and depreciated. 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 or asset group 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 recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Stock Compensation: The Company maintains long-term incentive programs that allow for 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, for shares awarded for the year ended December 31, 2018, the restriction period ends at the earliest of (i) five years after the participant's retirement date, (ii) three , five or ten years from the award date, or (iii) the participant's death or permanent disability. In general, for shares awarded for years ended December 31, 2017 and prior, 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 96,153 and 92,572 shares related to the years ended December 31, 2018 and 2017 , respectively. After the issuance of these shares, there were 311,275 shares of Class A common stock available for issuance under these plans. Compensation expense related to these share awards was $3.4 million ( $2.7 million net of tax) and $3.5 million ( $2.3 million net of tax) for the years ended December 31, 2018 and 2017 , 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 year ended December 31, 2018 , $90,000 of the non-employee director's annual retainer of $150,000 was 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. 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 26,968 and 18,643 shares related to the years ended December 31, 2018 and 2017 , 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 560 in 2018 and 2,746 in 2017 . After the issuance of these shares, there were 54,042 shares of Class A common stock available for issuance under this plan. Compensation expense related to these awards was $0.9 million ( $0.7 million net of tax) and $0.9 million ( $0.6 million net of tax) for the years ended December 31, 2018 and 2017 , 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: Financial instruments held by the Company include cash and cash equivalents, accounts receivable, accounts payable, revolving credit agreements and long-term debt. 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 Adopted in 2018: The Company accounts for revenue in accordance with Accounting Standards Codification ("ASC") Topic 606, "Revenue from Contracts with Customers", which NACCO adopted on January 1, 2018, using the modified retrospective method. The adoption of ASC 606 resulted in the establishment of a $2.6 million contract liability and a $2.0 million cumulative effect adjustment to beginning retained earnings (net of tax of $0.6 million ) as of January 1, 2018 to reflect the impact of changing the accounting for lease bonus payments received under certain royalty contracts. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period results are not adjusted and continue to be reported in accordance with our historical accounting under Topic 605. Nature of Performance Obligations At contract inception, the Company assesses the goods and services promised in its contracts with customers and identifies a performance obligation for each promised good or service that is distinct. To identify the performance obligations, the Company considers all of the goods or services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices. Each mine or mine area 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 MMBtu 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 operation of the equipment and delivery of limestone is the performance obligation accounted for as a series. Performance momentarily creates an asset that the customer simultaneously receives and consumes; therefore, control is transferred to the customer over time. Consistent with the conclusion that the customer simultaneously receives and consumes the benefits provided, an input-based measure of progress is appropriate. 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 due to increases and decreases in activity levels on individual contracts. NACoal enters into royalty contracts which grant the right to its customers to explore, develop, produce and sell minerals controlled by the Company. These arrangements result in the transfer of mineral rights to a customer for a period of time; however, no rights to the actual land are granted other than access for purposes of exploration, development, and production. The mineral rights revert back to NACoal at the expiration of the contract. Under these royalty contracts, granting exclusive right, title, and interest in and to minerals, if any, 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 primary term of the contract, which is generally five years. Significant Judgments The Company’s contracts with its customers contain different types of variable consideration including, but not limited to, management fees that adjust based on coal volumes or MMBtu delivered or limestone yards, however, the terms of these variable payments relate specifically to our efforts to satisfy one or more, but not all of, the performance obligations (or to a specific outcome from satisfying the performance obligations), in the contract. Therefore, the Company allocates each variable payment (and subsequent changes to that payment) entirely to the specific performance obligation to which it relates. Management fees, as well as general and administrative charges, are also adjusted based on changes in specified indices (e.g. CPI) to compensate for general inflation changes. Index adjustments, if applicable, are effective prospectively. Certain contracts include reimbursement of actual costs incurred. Disaggregation of Revenue In accordance with ASC 606-10-50, the Company disaggregates revenue from contracts with customers into major goods and service lines and timing of transfer of goods and services. The Company determined that disaggregating revenue into these categories achieves the disclosure objective of depicting how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. As noted in the segment information footnote, the Company’s business consists of one operating segment, NACoal. The following table disaggregates revenue by major sources: YEAR ENDED DECEMBER 31 Major Goods/Service Lines 2018 2017 (1) Consolidated operations - long-term contracts $ 117,869 $ 92,008 Royalty 17,506 12,770 Total revenues $ 135,375 $ 104,778 Timing of Revenue Recognition Goods transferred at a point in time $ 78,849 $ 60,594 Services transferred over time 56,526 44,184 Total revenues $ 135,375 $ 104,778 (1) As noted above, prior period amounts have not been adjusted under the modified retrospective method. Contract Balances The opening and closing balances of the Company’s current and long-term contract liability, and receivables are as follows: Contract balances Trade accounts receivable, net Contract liability (current) Contract liability (long-term) Balance, January 1, 2018 $ 14,611 $ 860 $ 1,766 Balance, December 31, 2018 20,817 754 2,008 Increase (decrease) $ 6,206 $ (106 ) $ 242 As described above, NACoal enters into royalty contracts that grant exclusive right, title, and interest in and to minerals. 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. The timing of the payment of the fixed portion of the transaction price is upfront, however, the performance obligation is satisfied over the primary term of the contract, which is generally five years. Therefore, at the time any such up-front payment is received, a contract liability is recorded which represents deferred revenue. The difference between the opening and closing balance of this contract liability, which is shown above, primarily results from the difference between new lease bonus payments received and amortization of up-front lease bonus payments received in previous periods. The amount of revenue recognized in the year ended December 31, 2018 that was included in the opening contract liability was $1.2 million . This revenue consists of up-front lease bonus payments received under royalty contracts that are recognized over the primary term of the royalty agreement, which is generally five years. The Company expects to recognize $0.8 million in 2019, $0.7 million in both 2020 and 2021, $0.5 million in 2022 and $0.1 million in 2023 related to the contract liability remaining at December 31, 2018. The difference between the opening and closing balances of the Company’s accounts receivable and contract liabilities results from the timing difference between the Company’s performance and the customer’s payment. Contracts with payments in arrears are recognized as receivables. The Company has no contract assets recognized from the costs to obtain or fulfill a contract with a customer. Practical Expedients & Accounting Policy Elections Remaining performance obligations - The Company has not disclosed the value of unsatisfied performance obligations for contracts with an original expected length of one year or more as the Company recognized revenue at the amount to which it has the right to invoice for goods delivered or services performed. ASC 606 requires that the Company disclose the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied. However, the guidance provides certain practical expedients that limit this requirement, including when variable consideration is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service that forms part of a series. As discussed above, the Company allocates the variable consideration in its contracts entirely to each specific performance obligation to which it relates. Therefore, any remaining variable consideration in the transaction price is allocated entirely to wholly unsatisfied performance obligations. As such, the Company has not disclosed the value of unsatisfied performance obligations pursuant to the practical expedient. Other Accounting Standards Adopted in 2018: In January 2016, the FASB issued Accounting Standard Update ("ASU") No. 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities," which NACCO adopted on January 1, 2018. The adoption of this guidance resulted in a $2.7 million reclassification within the Consolidated Balance Sheet and did not have a material effect on the Company’s financial position, results of operations, cash flows and related disclosures for further discussion. $2.9 million reclassification within the Consolidated Balance Sheet and did not have a material effect on the Company’s financial position, results of operations, cash flows and related disclosures. Accounting Standards Not Yet Adopted: In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)," which is codified in ASC 842, Leases (“ASC 842”) and supersedes current lease guidance in ASC 840. ASC 842 requires a lessee to recognize a right-of-use asset (“ROU asset”) and a corresponding lease liability for substantially all leases. The lease liability will be equal to the present value of the remaining lease payments while the ROU asset will be similarly calculated and then adjusted for initial direct costs. In addition, ASC 842 expands the disclosure requirements to increase the transparency and comparability of the amount, timing and uncertainty of cash flows arising from leases. The Company will adopt the new standard effective January 1, 2019 using the modified retrospective transition method by recognizing a cumulative effect adjustment to the opening balance of retained earnings. NACCO will not apply the standard to the comparative periods presented in the year of adoption. The Company will elect many of the available practical expedients permitted under the guidance, which among other items, allows the Company to carry forward its historical lease classification and not reassess leases for the definition of lease under the new standard. Upon the adoption of ASC 842, NACCO does not expect to record a ROU asset and related lease liability for leases with an initial term of 12 months or less. The Company is still assessing the potential impact that ASC 842 will have on its financial statements and disclosures, but it expects the adoption will result in the recognition of a ROU asset and related liability of approximately $13.0 million as of January 1, 2019. The most significant effect to the Consolidated Balance Sheet relates to the recognition of new ROU assets and lease liabilities for operating leases of real estate, mining and other equipment. The cumulative effect adjustment to the opening balance of retained earnings is not expected to be material. The actual impact may differ from this estimate, but the ASU is not expected to have a material impact on cash flows, liquidity or debt-covenant compliance. Reclassifications: As a result of the adoption of new accounting standards, 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, 2018 | |
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. As of December 31, 2018 the transition services are materially complete. NACCO received fees of $0.5 million and $0.2 million for the years ended December 31, 2018 and December 31, 2017, respectively, recorded as a reduction to selling, general and administrative expenses related to the transitional services. As a result of the spin-off, the 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 year ended December 31, 2017: HBBHC Operating Statement Data: Revenues $ 474,971 Cost of goods sold 353,436 Gross profit 121,535 Operating expenses (a) 114,379 Operating profit 7,156 Interest expense 1,300 Other expense, net (939 ) Income before income taxes 6,795 Income tax expense 2,655 HBBHC net income $ 4,140 NACCO expenses related to the spin-off 2,759 NACCO discontinued operations income tax expense (benefit) adjustments (493 ) NACCO discontinued operations, net of tax $ 1,874 (a) HBBHC's operating profit includes the recognition of $2.5 million of expenses related to the spin-off in 2017. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are summarized as follows: December 31 2018 2017 Coal $ 11,030 $ 13,416 Mining supplies 20,179 16,599 Total inventories $ 31,209 $ 30,015 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2018 | |
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 2018 2017 Coal lands and real estate: NACoal $ 56,247 $ 53,576 NACCO and Other 469 469 56,716 54,045 Plant and equipment: NACoal 160,918 151,145 NACCO and Other 2,646 2,531 163,564 153,676 Property, plant and equipment, at cost 220,280 207,721 Less allowances for depreciation, depletion and amortization 95,726 87,653 $ 124,554 $ 120,068 Total depreciation, depletion and amortization expense on property, plant and equipment was $11.6 million and $10.6 million during 2018 and 2017 , respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 Coal supply agreement $ 84,200 $ (43,684 ) $ 40,516 Balance at December 31, 2017 Coal supply agreement $ 84,200 $ (40,646 ) $ 43,554 Amortization expense for intangible assets was $3.0 million and $2.1 million in 2018 and 2017 , respectively. Expected annual amortization expense of NACoal's coal supply agreement for the next five years is as follows: $3.0 million in 2019 and $3.1 million in 2020 , 2021 , 2022 and 2023 , 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, 2018 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Asset Retirement Obligations NACoal's asset retirement obligations are principally for costs to close its surface mines and reclaim the land it has disturbed as a result of its normal mining activities as well as for costs to dismantle certain mining equipment at the end of the life of the mine. The Company determined the amounts of these obligations based on cost 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 cost 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, 2017 $ 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 Liabilities incurred during the period 189 Liabilities settled during the period (1,667 ) Accretion expense 2,579 Revision of estimated cash flows (3,495 ) Balance at December 31, 2018 $ 37,703 Asset retirement obligations totaled $37.7 million at December 31, 2018 , of which, $1.8 million is included in current liabilities on the line "Asset retirement obligations" and $35.9 million in long-term liabilities on the line "Asset retirement obligations" in the Consolidated Balance Sheets. Prior to 2017, 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 $8.7 million at December 31, 2018 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, 2018 | |
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 2018 2017 Total outstanding borrowings of NACoal: Revolving credit agreement $ 4,000 $ 50,000 Capital lease obligations and other term loans 7,021 8,146 Total debt outstanding $ 11,021 $ 58,146 Current portion of borrowings outstanding $ 4,654 $ 16,125 Long-term portion of borrowings outstanding 6,367 42,021 $ 11,021 $ 58,146 Total available borrowings, net of limitations, under revolving credit agreement $ 148,481 $ 148,591 Unused revolving credit agreement $ 144,481 $ 98,591 Weighted average stated interest rate on total borrowings 4.8 % 3.8 % Annual maturities of total debt, excluding capital leases, are as follows: 2019 4,225 2020 237 2021 250 2022 263 2023 277 Thereafter 5,319 $ 10,571 Interest paid on total debt was $2.0 million and $3.9 million during 2018 and 2017 , 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 $4.0 million at December 31, 2018 . At December 31, 2018 , the excess availability under the NACoal Facility was $144.5 million , which reflects a reduction for outstanding letters of credit of $1.5 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, 2018 , for base rate and LIBOR loans were 0.75% and 1.75% , respectively. The NACoal Facility has a commitment fee which is based upon achieving various levels of debt to EBITDA ratios. The commitment fee was 0.30% on the unused commitment at December 31, 2018 . The weighted average interest rate applicable to the NACoal Facility at December 31, 2018 was 4.28% including the floating rate margin. 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, 2018 , NACoal was in compliance with all financial covenants in the NACoal Facility. NACoal has a ten year note payable that is secured by two specified units of equipment and bears interest at a fixed 5.29% rate. This note includes a principal payment of $4.4 million at the end of the term on December 15, 2026 . At December 31, 2018 and 2017 , the outstanding balance of the note was $6.6 million and $6.8 million respectively. |
Fair Value Disclosure
Fair Value Disclosure | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 (Level 1) (Level 2) (Level 3) Assets: Equity securities $ 8,716 $ 8,716 $ — $ — $ 8,716 $ 8,716 $ — $ — 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: Equity securities $ 9,166 $ 9,166 $ — $ — $ 9,166 $ 9,166 — — 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. On January 1, 2018, the Mine Water Treatment Trust's unrealized gain of $2.7 million was reclassified within the Consolidated Balance Sheet upon adoption of ASU No. 2016-01. See Note 2 for further information. The Mine Water Treatment Trust realized a loss of $0.3 million in the year ended December 31, 2018 reported on the line "Other, net, including interest income" in the "Other expense (income)" section of the Consolidated Statements of Operations. See Note 7 for further discussion of Bellaire's Mine Water Treatment Trust. There were no transfers into or out of Levels 1, 2 or 3 during the year ended December 31, 2018 . Nonrecurring Fair Value Measurements : Centennial ceased coal production at the end of 2015. NACoal recognized an impairment charge of $1.0 million during 2017 to reduce the value of Centennial's remaining equipment to zero. The asset impairment charge was 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. The fair value and the book value of revolving credit agreements and long-term debt, excluding capital leases, was $10.4 million and $10.6 million , respectively, at December 31, 2018 and $56.7 million and $56.7 million , respectively, at December 31, 2017 . Financial instruments that potentially subject the Company to concentration of credit risk consist principally of accounts receivable. Under its mining contracts, NACoal recognizes revenue and a related receivable as coal or limestone is delivered. 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. |
Leasing Arrangements
Leasing Arrangements | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Leasing Arrangements | Leasing Arrangements The Company leases certain offices, warehouse facilities, mining and other 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, 2018 are: Capital Leases Operating Leases 2019 $ 437 $ 2,387 2020 21 2,174 2021 — 2,092 2022 — 2,116 2023 — 1,659 Subsequent to 2023 — 10,959 Total minimum lease payments 458 $ 21,387 Amounts representing interest 8 Present value of net minimum lease payments 450 Current maturities 429 Long-term capital lease obligation $ 21 Rental expense for all operating leases was $3.7 million and $4.9 million in 2018 and 2017 , respectively. The Company also recognized $0.9 million and $0.6 million in 2018 and 2017 , respectively, for rental income on subleases of equipment 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 2018 2017 Plant and equipment $ 3,085 $ 4,807 Less accumulated depreciation 2,681 3,730 $ 404 $ 1,077 Depreciation of plant and equipment under capital leases is included in depreciation expense in each of the years ended December 31, 2018 and 2017 . |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
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. 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. |
Stockholders' Equity and Earnin
Stockholders' Equity and Earnings Per Share | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 was 25,000,000 shares and 6,756,176 shares, respectively. Treasury shares of Class A common stock totaling 2,862,442 and 2,931,590 at December 31, 2018 and 2017 , respectively, have been deducted from shares outstanding. Stock Repurchase Programs: On February 14, 2018, the Company's Board of Directors approved a stock repurchase program ("2018 Stock Repurchase Program") providing for the repurchase of up to $25 million of the Company's outstanding Class A Common Stock through December 31, 2019. During 2018, the Company repurchased 39,047 shares of Class A Common Stock under the 2018 Stock Repurchase Program for an aggregate purchase price of $1.3 million . 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 . The timing and amount of any repurchases under the 2018 Stock Repurchase Program are determined at the discretion of the Company's management based on a number of factors, including the availability of capital, other capital allocation alternatives, market conditions for the Company's Class A Common Stock and other legal and contractual restrictions. The 2018 Stock Repurchase Program does not require the Company to acquire any specific number of shares and may be modified, suspended, extended or terminated by the Company without prior notice and may be executed through open market purchases, privately negotiated transactions or otherwise. All or part of the repurchases under the 2018 Stock Repurchase Program may be implemented under a Rule 10b5-1 trading plan, which would allow repurchases under pre-set terms at times when the Company might otherwise be restricted from doing so under applicable securities laws. 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 2018 2017 Location of loss (gain) reclassified from AOCI into income Loss (gain) on cash flow hedging Foreign exchange contracts $ — $ (158 ) Cost of sales Interest rate contracts — (3,466 ) Interest expense — (3,624 ) Total before income tax expense Tax effect — 1,255 Income tax expense (benefit) $ — $ (2,369 ) Net of tax Pension and postretirement plan Actuarial loss $ 580 $ 955 (a) Prior-service credit (6 ) (10 ) (a) 574 945 Total before income tax expense Tax effect (85 ) (363 ) Income tax benefit $ 489 $ 582 Net of tax Total reclassifications for the period $ 489 $ (1,787 ) 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: 2018 2017 Basic weighted average shares outstanding 6,924 6,830 Dilutive effect of restricted stock awards 36 43 Diluted weighted average shares outstanding 6,960 6,873 Basic earnings per share: Continuing operations $ 5.02 $ 4.17 Discontinued operations — 0.27 Basic earnings per share $ 5.02 $ 4.44 Diluted earnings per share: Continuing operations $ 5.00 $ 4.14 Discontinued operations — 0.27 Diluted earnings per share $ 5.00 $ 4.41 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
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: 2018 2017 Income (loss) before income tax provision (benefit) Domestic $ 45,170 $ 31,454 Foreign (3,007 ) (2,352 ) $ 42,163 $ 29,102 Income tax provision (benefit) Current income tax provision (benefit): Federal $ (2,296 ) $ (3,885 ) State 393 435 Total current (1,903 ) (3,450 ) Deferred income tax provision (benefit): Federal 8,585 6,588 State 696 (2,499 ) Total deferred 9,281 4,089 $ 7,378 $ 639 The Company made income tax payments related to continuing operations of $0.5 million and $5.2 million during 2018 and 2017 , respectively. During the same periods, income tax refunds totaled $0.1 million and $0.3 million , respectively. During 2017, the U.S. government enacted the Tax Cuts and Jobs Act (“TCJA”), which significantly revised U.S. tax law. Effective January 1, 2018, the TCJA positively impacted the Company’s ongoing effective income tax rate due to the reduction of the U.S. corporate tax rate from 35 percent to 21 percent. In addition, 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. As a result of the TCJA, the Company recorded a discrete net tax benefit of $3.1 million in the year ended December 31, 2017. This net benefit is attributable to the corporate rate reduction on existing deferred tax assets and liabilities. A reconciliation of the federal statutory and effective income tax rate from continuing operations for the years ended December 31 is as follows: 2018 2017 Income from continuing operations before income tax provision $ 42,163 $ 29,102 Statutory taxes at 21.0% and 35.0%, respectively $ 8,854 $ 10,186 State and local income taxes 1,241 493 Valuation allowances 640 (1,453 ) Non-deductible expenses 663 224 Percentage depletion (4,199 ) (6,253 ) R&D and other federal credits (37 ) 301 Effect of the TCJA — (3,132 ) Other, net 216 273 Income tax provision from continuing operations $ 7,378 $ 639 Effective income tax rate from continuing operations 17.5 % 2.2 % The Company applied 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 in 2017. As a result of the spin-off of HBBHC during 2017, the Company used the “with and without” approach to compute total income tax expense for 2017. 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 bases of assets and liabilities follows: December 31 2018 2017 Deferred tax assets Tax carryforwards $ 19,058 $ 22,035 Inventories 2,041 1,878 Accrued expenses and reserves 9,860 11,723 Other employee benefits 4,892 4,640 Other 9,347 8,933 Total deferred tax assets 45,198 49,209 Less: Valuation allowance 14,219 13,579 30,979 35,630 Deferred tax liabilities Depreciation and depletion 27,299 23,029 Partnership investment - development costs 5,146 4,069 Accrued pension benefits 1,380 2,570 Total deferred tax liabilities 33,825 29,668 Net deferred (liability) asset $ (2,846 ) $ 5,962 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, 2018 Net deferred tax asset Valuation allowance Carryforwards expire during: Non-U.S. net operating loss $ 2,340 $ 2,340 2024-2026 State losses 16,624 13,182 2019-2038 Research credit 1,198 — 2034-2038 Alternative minimum tax credit 2,310 — (1) Total $ 22,472 $ 15,522 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. 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. 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 2013-2016 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. 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, 2018 and 2017 . Approximately $1.1 million and $0.8 million of these gross amounts as of December 31, 2018 and 2017 , 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. 2018 2017 Balance at January 1 $ 997 $ 915 Additions based on tax positions related to prior years 283 — Additions based on tax positions related to the current year — 82 Balance at December 31 $ 1,280 $ 997 The Company records interest and penalties on uncertain tax positions as a component of the income tax provision. The Company recognized net expense of less than $0.1 million in interest and penalties related to uncertain tax positions during 2018 and 2017 , respectively. The total amount of interest and penalties accrued was $0.1 million and $0.1 million as of December 31, 2018 and 2017 , 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. |
Retirement Benefit Plans
Retirement Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
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 2017 , 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 2017 . 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 : 2018 2017 Weighted average discount rates for pension benefit obligation 4.10% - 4.20% 3.40% - 3.55% Weighted average discount rates for net periodic benefit cost 3.40% - 3.55% 3.40% - 4.00% Expected long-term rate of return on assets for net periodic benefit cost 7.50 % 7.50 % Set forth below is a detail of the net periodic pension expense (income) for the defined benefit plans for the years ended December 31 : 2018 2017 Interest cost $ 1,581 $ 1,746 Expected return on plan assets (2,852 ) (2,843 ) Amortization of actuarial loss 484 363 Amortization of prior service cost 58 58 Settlements — 76 Net periodic pension income $ (729 ) $ (600 ) 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 : 2018 2017 Current year actuarial loss (gain) $ 1,397 $ (1,343 ) Amortization of actuarial loss (484 ) (363 ) Amortization of prior service cost (58 ) (58 ) Settlements — (76 ) Total recognized in other comprehensive loss (income) $ 855 $ (1,840 ) 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 : 2018 2017 Change in benefit obligation Projected benefit obligation at beginning of year $ 46,065 $ 45,318 Interest cost 1,581 1,746 Actuarial (gain) loss (3,286 ) 1,275 Benefits paid (2,334 ) (2,019 ) Settlements — (255 ) Projected benefit obligation at end of year $ 42,026 $ 46,065 Accumulated benefit obligation at end of year $ 42,026 $ 46,065 Change in plan assets Fair value of plan assets at beginning of year $ 38,527 $ 34,628 Actual (loss) return on plan assets (1,832 ) 5,461 Employer contributions 593 712 Benefits paid (2,334 ) (2,019 ) Settlements — (255 ) Fair value of plan assets at end of year $ 34,954 $ 38,527 Funded status at end of year $ (7,072 ) $ (7,538 ) Amounts recognized in the balance sheets consist of: Non-current assets $ 2,047 $ 2,051 Current liabilities (588 ) (700 ) Non-current liabilities (8,531 ) (8,889 ) $ (7,072 ) $ (7,538 ) Components of accumulated other comprehensive loss (income) consist of: Actuarial loss $ 16,277 $ 15,363 Prior service cost 878 937 Deferred taxes (3,320 ) (6,481 ) $ 13,835 $ 9,819 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: 2019 $ 2,475 2020 2,560 2021 2,669 2022 2,760 2023 2,819 2024 - 2028 14,232 $ 27,515 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: 2018 2017 Target Allocation Range U.S. equity securities 42.4 % 47.2 % 36.0% - 54.0% Non-U.S. equity securities 19.4 % 21.1 % 16.0% - 24.0% Fixed income securities 37.7 % 31.4 % 30.0% - 40.0% Money market 0.5 % 0.3 % 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 2018 2017 U.S. equity securities $ 14,834 $ 18,175 Non-U.S. equity securities 6,790 8,120 Fixed income securities 13,169 12,097 Money market 161 135 Total $ 34,954 $ 38,527 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. The health care plans were amended effective January 1, 2019 to eliminate the open network structure. The move to network provided benefits will result in cost savings for the Company. 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 : 2018 2017 Weighted average discount rates for benefit obligation 3.80 % 3.10 % Weighted average discount rates for net periodic benefit cost 3.10 % 3.25 % Health care cost trend rate assumed for next year 6.75 % 7.00 % Rate to which the cost trend rate is assumed to decline (ultimate trend rate) 5.0 % 5.0 % Year that the rate reaches the ultimate trend rate 2025 2025 Set forth below is a detail of the net periodic benefit expense for the postretirement health care plans for the years ended December 31 : 2018 2017 Service cost $ 50 $ 50 Interest cost 98 101 Amortization of actuarial loss 96 97 Amortization of prior service credit (64 ) (17 ) Net periodic benefit expense $ 180 $ 231 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 : 2018 2017 Current year actuarial (gain) loss $ (756 ) $ 154 Amortization of actuarial loss (96 ) (97 ) Current year prior service credit (325 ) — Amortization of prior service credit 64 17 Total recognized in other comprehensive (loss) income $ (1,113 ) $ 74 The following sets forth the changes in benefit obligations during the year and the funded status of the postretirement health care at December 31 : 2018 2017 Change in benefit obligation Benefit obligation at beginning of year $ 3,221 $ 3,211 Service cost 50 50 Interest cost 98 101 Plan amendments (326 ) — Actuarial (gain) loss (756 ) 154 Benefits paid (174 ) (295 ) Benefit obligation at end of year $ 2,113 $ 3,221 Funded status at end of year $ (2,113 ) $ (3,221 ) Amounts recognized in the balance sheets consist of: Current liabilities $ (215 ) $ (282 ) Noncurrent liabilities (1,898 ) (2,939 ) $ (2,113 ) $ (3,221 ) Components of accumulated other comprehensive loss (income) consist of: Actuarial loss $ 189 $ 1,040 Prior service credit (339 ) (78 ) Deferred taxes (74 ) 287 $ (224 ) $ 1,249 Future postretirement health care benefit payments expected to be paid are: 2019 215 2020 234 2021 250 2022 238 2023 232 2024 - 2028 902 $ 2,071 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 $2.6 million and $2.6 million in 2018 and 2017 , respectively. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2018 | |
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 current 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, Choctaw Generation Limited Partnership, LLLP, accounted for approximately 60% of NACoal's revenues for both of the years ended December 31, 2018 and 2017 . NAM's largest customer, Cemex Construction Materials of Florida, LLC, accounted for approximately 20% and 18% of NACoal's revenues for the years ended December 31, 2018 and 2017 , respectively. The loss of or significant reduction in sales to any key customer could result in significant decreases in NACoal's revenue and profitability. The management fees charged to NACoal represent an allocation of corporate overhead of the parent company. The Company believes the allocation method is reasonable. Prior to the spin-off of HBBHC, NACCO received management fees from HBBHC of $3.0 million for the year ended December 31, 2017 . 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. 2018 2017 Revenues from external customers $ 135,375 $ 104,778 Gross profit (loss) NACoal $ 30,337 $ 17,198 NACCO and Other (369 ) (279 ) Total $ 29,968 $ 16,919 Earnings of unconsolidated operations $ 64,994 $ 61,361 Selling, general and administrative expenses, including Amortization of intangible assets NACoal $ 45,939 $ 42,516 NACCO and Other 6,291 7,098 Total $ 52,230 $ 49,614 Operating profit (loss) NACoal $ 50,284 $ 39,677 NACCO and Other (6,660 ) (6,863 ) Total $ 43,624 $ 32,814 Total assets NACoal $ 274,800 $ 277,538 NACCO and Other 120,954 135,434 Eliminations (18,763 ) (23,420 ) Total $ 376,991 $ 389,552 Depreciation, depletion and amortization NACoal $ 14,596 $ 12,444 NACCO and Other 87 323 Total $ 14,683 $ 12,767 Capital expenditures NACoal $ 20,799 $ 15,692 NACCO and Other 131 12 Total $ 20,930 $ 15,704 |
Parent Company Condensed Balanc
Parent Company Condensed Balance Sheets | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information 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: 2018 2017 ASSETS Cash and cash equivalents $ 84,819 $ 94,646 Accounts receivable from affiliates 2,418 9,189 Current intercompany accounts receivable, net 868 — Other current assets 4,508 1,714 Investment in subsidiaries: NACoal 173,020 141,174 Other, primarily Bellaire 12,633 13,340 185,653 154,514 Property, plant and equipment, net 241 310 Other non-current assets 7,851 9,550 Total Assets $ 286,358 $ 269,923 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities $ 5,148 $ 7,627 Current intercompany accounts payable, net — 11,858 Note payable to Bellaire 17,300 17,850 Deferred compensation 12,939 12,939 Other non-current liabilities 267 201 Stockholders’ equity 250,704 219,448 Total Liabilities and Stockholders’ Equity $ 286,358 $ 269,923 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, 2018 totaled approximately $1.6 million . The amount of unrestricted cash available to NACCO included in “Investment in subsidiaries” was $0.3 million at December 31, 2018 . 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 2018 2017 (In thousands) ASSETS Cash and cash equivalents $ 84,819 $ 94,646 Accounts receivable from affiliates 2,418 9,189 Current intercompany accounts receivable, net 868 — Other current assets 4,508 1,714 Investment in subsidiaries: NACoal 173,020 141,174 Other, primarily Bellaire 12,633 13,340 185,653 154,514 Property, plant and equipment, net 241 310 Other non-current assets 7,851 9,550 Total Assets $ 286,358 $ 269,923 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities $ 5,148 $ 7,627 Current intercompany accounts payable, net — 11,858 Note payable to Bellaire 17,300 17,850 Deferred compensation 12,939 12,939 Other non-current liabilities 267 201 Stockholders’ equity 250,704 219,448 Total Liabilities and Stockholders’ Equity $ 286,358 $ 269,923 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 2018 2017 (In thousands) Expense (income): Intercompany interest expense $ 1,223 $ 1,256 Other, net (613 ) (314 ) 610 942 Administrative and general expenses 5,962 6,466 Loss before income taxes (6,572 ) (7,408 ) Income tax benefit (676 ) (366 ) Net loss before equity in earnings of subsidiaries (5,896 ) (7,042 ) Equity in earnings of subsidiaries 40,681 35,505 Income from continuing operations 34,785 28,463 Discontinued operations, net of tax $ — $ 1,874 Net income 34,785 30,337 Foreign currency translation adjustment — 1,725 Deferred gain on available for sale securities, net of tax — 834 Current period cash flow hedging activity, net of $941 tax expense in 2017 — 1,543 Reclassification of hedging activities into earnings, net of $1,255 tax expense in 2017 — (2,369 ) Current period pension and postretirement plan adjustment, net of $14 tax benefit in 2018 and net of $440 tax expense in 2017, respectively (301 ) 749 Reclassification of pension and postretirement adjustments into earnings, net of $85 and $363 tax benefit in 2018 and 2017, respectively 489 582 Total other comprehensive income 188 3,064 Comprehensive Income $ 34,973 $ 33,401 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 2018 2017 (In thousands) Operating Activities Income from continuing operations $ 34,785 $ 28,463 Equity in earnings of subsidiaries 40,681 35,505 Parent company only net loss (5,896 ) (7,042 ) Net changes related to operating activities (5,496 ) 7,881 Net cash (used for) provided by operating activities (11,392 ) 839 Investing Activities Proceeds from the sale of assets — 834 Expenditures for property, plant and equipment (12 ) (12 ) Net cash (used for) provided by investing activities (12 ) 822 Financing Activities Dividends received from subsidiaries 8,000 4,000 Dividends received from HBBHC — 38,000 Notes payable to Bellaire (551 ) (250 ) Purchase of treasury shares (1,294 ) — Cash dividends paid (4,578 ) (6,682 ) Net cash provided by financing activities 1,577 35,068 Cash and cash equivalents (Decrease) increase for the period (9,827 ) 36,729 Balance at the beginning of the period 94,646 57,917 Balance at the end of the period $ 84,819 $ 94,646 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, 2018 AND 2017 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, 2018 and was in addition to the $84.8 million of cash included in the Parent Company Condensed Balance Sheet at December 31, 2018 . |
Unconsolidated Subsidiaries
Unconsolidated Subsidiaries | 12 Months Ended |
Dec. 31, 2018 | |
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 operations” 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 $20.1 million and $16.3 million at December 31, 2018 and 2017 , respectively. The Company's maximum risk of loss relating to these entities is limited to its invested capital, which was $4.4 million and $5.2 million at December 31, 2018 and 2017 , 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: 2018 2017 Statement of Operations Revenue $ 766,558 $ 791,264 Gross profit $ 76,600 $ 87,760 Income before income taxes $ 66,270 $ 62,607 Net income $ 55,247 $ 55,268 Balance Sheet Current assets $ 182,353 $ 179,316 Non-current assets $ 860,049 $ 883,919 Current liabilities $ 146,788 $ 175,844 Non-current liabilities $ 891,175 $ 882,200 Revenue includes all mine operating costs that are reimbursed by the customers of the unconsolidated subsidiaries as well as the compensation per ton of coal, heating unit (MMBtu) or yard of limestone delivered. Reimbursed costs have offsetting expenses and have no impact on income before taxes. Income before income taxes represents the earnings of the unconsolidated operations and the income from other unconsolidated affiliates. NACoal received dividends of $56.0 million and $54.7 million from the unconsolidated subsidiaries in 2018 and 2017 , respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
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 $2.1 million and $3.0 million for the years ended December 31, 2018 and 2017 , 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. Alfred M. Rankin, Jr. retired as the President and Chief Executive Officer of NACCO effective September 30, 2017. In order to facilitate a smooth transition, Mr. Rankin continues to serve as the Chairman of the Board of Directors of NACCO and Mr. Rankin supports the President and Chief Executive Officer of NACCO upon request under the terms of a consulting agreement. Fees for consulting services rendered by Mr. Rankin approximated $0.5 million and $0.1 million for the years ended December 31, 2018 and 2017 , respectively. 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. |
Schedule I - Condensed Financia
Schedule I - Condensed Financial Information of the Parent | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information 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: 2018 2017 ASSETS Cash and cash equivalents $ 84,819 $ 94,646 Accounts receivable from affiliates 2,418 9,189 Current intercompany accounts receivable, net 868 — Other current assets 4,508 1,714 Investment in subsidiaries: NACoal 173,020 141,174 Other, primarily Bellaire 12,633 13,340 185,653 154,514 Property, plant and equipment, net 241 310 Other non-current assets 7,851 9,550 Total Assets $ 286,358 $ 269,923 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities $ 5,148 $ 7,627 Current intercompany accounts payable, net — 11,858 Note payable to Bellaire 17,300 17,850 Deferred compensation 12,939 12,939 Other non-current liabilities 267 201 Stockholders’ equity 250,704 219,448 Total Liabilities and Stockholders’ Equity $ 286,358 $ 269,923 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, 2018 totaled approximately $1.6 million . The amount of unrestricted cash available to NACCO included in “Investment in subsidiaries” was $0.3 million at December 31, 2018 . 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 2018 2017 (In thousands) ASSETS Cash and cash equivalents $ 84,819 $ 94,646 Accounts receivable from affiliates 2,418 9,189 Current intercompany accounts receivable, net 868 — Other current assets 4,508 1,714 Investment in subsidiaries: NACoal 173,020 141,174 Other, primarily Bellaire 12,633 13,340 185,653 154,514 Property, plant and equipment, net 241 310 Other non-current assets 7,851 9,550 Total Assets $ 286,358 $ 269,923 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities $ 5,148 $ 7,627 Current intercompany accounts payable, net — 11,858 Note payable to Bellaire 17,300 17,850 Deferred compensation 12,939 12,939 Other non-current liabilities 267 201 Stockholders’ equity 250,704 219,448 Total Liabilities and Stockholders’ Equity $ 286,358 $ 269,923 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 2018 2017 (In thousands) Expense (income): Intercompany interest expense $ 1,223 $ 1,256 Other, net (613 ) (314 ) 610 942 Administrative and general expenses 5,962 6,466 Loss before income taxes (6,572 ) (7,408 ) Income tax benefit (676 ) (366 ) Net loss before equity in earnings of subsidiaries (5,896 ) (7,042 ) Equity in earnings of subsidiaries 40,681 35,505 Income from continuing operations 34,785 28,463 Discontinued operations, net of tax $ — $ 1,874 Net income 34,785 30,337 Foreign currency translation adjustment — 1,725 Deferred gain on available for sale securities, net of tax — 834 Current period cash flow hedging activity, net of $941 tax expense in 2017 — 1,543 Reclassification of hedging activities into earnings, net of $1,255 tax expense in 2017 — (2,369 ) Current period pension and postretirement plan adjustment, net of $14 tax benefit in 2018 and net of $440 tax expense in 2017, respectively (301 ) 749 Reclassification of pension and postretirement adjustments into earnings, net of $85 and $363 tax benefit in 2018 and 2017, respectively 489 582 Total other comprehensive income 188 3,064 Comprehensive Income $ 34,973 $ 33,401 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 2018 2017 (In thousands) Operating Activities Income from continuing operations $ 34,785 $ 28,463 Equity in earnings of subsidiaries 40,681 35,505 Parent company only net loss (5,896 ) (7,042 ) Net changes related to operating activities (5,496 ) 7,881 Net cash (used for) provided by operating activities (11,392 ) 839 Investing Activities Proceeds from the sale of assets — 834 Expenditures for property, plant and equipment (12 ) (12 ) Net cash (used for) provided by investing activities (12 ) 822 Financing Activities Dividends received from subsidiaries 8,000 4,000 Dividends received from HBBHC — 38,000 Notes payable to Bellaire (551 ) (250 ) Purchase of treasury shares (1,294 ) — Cash dividends paid (4,578 ) (6,682 ) Net cash provided by financing activities 1,577 35,068 Cash and cash equivalents (Decrease) increase for the period (9,827 ) 36,729 Balance at the beginning of the period 94,646 57,917 Balance at the end of the period $ 84,819 $ 94,646 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, 2018 AND 2017 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, 2018 and was in addition to the $84.8 million of cash included in the Parent Company Condensed Balance Sheet at December 31, 2018 . |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, 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, 2018 AND 2017 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) 2018 Reserves deducted from asset accounts: Deferred tax valuation allowances $ 13,579 $ 639 $ 1 — $ 14,219 2017 Reserves deducted from asset accounts: Deferred tax valuation allowances $ 12,881 $ 699 $ (1 ) $ — $ 13,579 (A) Balances which are not required to be presented and those which are immaterial have been omitted. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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 valuation. |
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 or the units-of-production 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 assets based on estimated recoverable tonnages. Repairs and maintenance costs are expensed when incurred, unless such costs extend the estimated useful life of the asset, in which case such costs are capitalized and depreciated. 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 or asset group 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 recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. |
Stock Compensation | Stock Compensation: The Company maintains long-term incentive programs that allow for 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, for shares awarded for the year ended December 31, 2018, the restriction period ends at the earliest of (i) five years after the participant's retirement date, (ii) three , five or ten years from the award date, or (iii) the participant's death or permanent disability. In general, for shares awarded for years ended December 31, 2017 and prior, 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 96,153 and 92,572 shares related to the years ended December 31, 2018 and 2017 , respectively. After the issuance of these shares, there were 311,275 shares of Class A common stock available for issuance under these plans. Compensation expense related to these share awards was $3.4 million ( $2.7 million net of tax) and $3.5 million ( $2.3 million net of tax) for the years ended December 31, 2018 and 2017 , 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 year ended December 31, 2018 , $90,000 of the non-employee director's annual retainer of $150,000 was 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. 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 26,968 and 18,643 shares related to the years ended December 31, 2018 and 2017 , 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 560 in 2018 and 2,746 in 2017 . After the issuance of these shares, there were 54,042 shares of Class A common stock available for issuance under this plan. Compensation expense related to these awards was $0.9 million ( $0.7 million net of tax) and $0.9 million ( $0.6 million net of tax) for the years ended December 31, 2018 and 2017 , 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 | Financial Instruments: Financial instruments held by the Company include cash and cash equivalents, accounts receivable, accounts payable, revolving credit agreements and long-term debt. |
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. |
Reclassifications | Reclassifications: As a result of the adoption of new accounting standards, certain amounts in the prior periods’ Consolidated Financial Statements have been reclassified to conform to the current period's presentation. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Accounting Standards Adopted in 2018: The Company accounts for revenue in accordance with Accounting Standards Codification ("ASC") Topic 606, "Revenue from Contracts with Customers", which NACCO adopted on January 1, 2018, using the modified retrospective method. The adoption of ASC 606 resulted in the establishment of a $2.6 million contract liability and a $2.0 million cumulative effect adjustment to beginning retained earnings (net of tax of $0.6 million ) as of January 1, 2018 to reflect the impact of changing the accounting for lease bonus payments received under certain royalty contracts. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period results are not adjusted and continue to be reported in accordance with our historical accounting under Topic 605. Nature of Performance Obligations At contract inception, the Company assesses the goods and services promised in its contracts with customers and identifies a performance obligation for each promised good or service that is distinct. To identify the performance obligations, the Company considers all of the goods or services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices. Each mine or mine area 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 MMBtu 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 operation of the equipment and delivery of limestone is the performance obligation accounted for as a series. Performance momentarily creates an asset that the customer simultaneously receives and consumes; therefore, control is transferred to the customer over time. Consistent with the conclusion that the customer simultaneously receives and consumes the benefits provided, an input-based measure of progress is appropriate. 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 due to increases and decreases in activity levels on individual contracts. NACoal enters into royalty contracts which grant the right to its customers to explore, develop, produce and sell minerals controlled by the Company. These arrangements result in the transfer of mineral rights to a customer for a period of time; however, no rights to the actual land are granted other than access for purposes of exploration, development, and production. The mineral rights revert back to NACoal at the expiration of the contract. Under these royalty contracts, granting exclusive right, title, and interest in and to minerals, if any, 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 primary term of the contract, which is generally five years. Significant Judgments The Company’s contracts with its customers contain different types of variable consideration including, but not limited to, management fees that adjust based on coal volumes or MMBtu delivered or limestone yards, however, the terms of these variable payments relate specifically to our efforts to satisfy one or more, but not all of, the performance obligations (or to a specific outcome from satisfying the performance obligations), in the contract. Therefore, the Company allocates each variable payment (and subsequent changes to that payment) entirely to the specific performance obligation to which it relates. Management fees, as well as general and administrative charges, are also adjusted based on changes in specified indices (e.g. CPI) to compensate for general inflation changes. Index adjustments, if applicable, are effective prospectively. Certain contracts include reimbursement of actual costs incurred. Disaggregation of Revenue In accordance with ASC 606-10-50, the Company disaggregates revenue from contracts with customers into major goods and service lines and timing of transfer of goods and services. The Company determined that disaggregating revenue into these categories achieves the disclosure objective of depicting how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. As noted in the segment information footnote, the Company’s business consists of one operating segment, NACoal. The following table disaggregates revenue by major sources: YEAR ENDED DECEMBER 31 Major Goods/Service Lines 2018 2017 (1) Consolidated operations - long-term contracts $ 117,869 $ 92,008 Royalty 17,506 12,770 Total revenues $ 135,375 $ 104,778 Timing of Revenue Recognition Goods transferred at a point in time $ 78,849 $ 60,594 Services transferred over time 56,526 44,184 Total revenues $ 135,375 $ 104,778 (1) As noted above, prior period amounts have not been adjusted under the modified retrospective method. Contract Balances The opening and closing balances of the Company’s current and long-term contract liability, and receivables are as follows: Contract balances Trade accounts receivable, net Contract liability (current) Contract liability (long-term) Balance, January 1, 2018 $ 14,611 $ 860 $ 1,766 Balance, December 31, 2018 20,817 754 2,008 Increase (decrease) $ 6,206 $ (106 ) $ 242 As described above, NACoal enters into royalty contracts that grant exclusive right, title, and interest in and to minerals. 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. The timing of the payment of the fixed portion of the transaction price is upfront, however, the performance obligation is satisfied over the primary term of the contract, which is generally five years. Therefore, at the time any such up-front payment is received, a contract liability is recorded which represents deferred revenue. The difference between the opening and closing balance of this contract liability, which is shown above, primarily results from the difference between new lease bonus payments received and amortization of up-front lease bonus payments received in previous periods. The amount of revenue recognized in the year ended December 31, 2018 that was included in the opening contract liability was $1.2 million . This revenue consists of up-front lease bonus payments received under royalty contracts that are recognized over the primary term of the royalty agreement, which is generally five years. The Company expects to recognize $0.8 million in 2019, $0.7 million in both 2020 and 2021, $0.5 million in 2022 and $0.1 million in 2023 related to the contract liability remaining at December 31, 2018. The difference between the opening and closing balances of the Company’s accounts receivable and contract liabilities results from the timing difference between the Company’s performance and the customer’s payment. Contracts with payments in arrears are recognized as receivables. The Company has no contract assets recognized from the costs to obtain or fulfill a contract with a customer. Practical Expedients & Accounting Policy Elections Remaining performance obligations - The Company has not disclosed the value of unsatisfied performance obligations for contracts with an original expected length of one year or more as the Company recognized revenue at the amount to which it has the right to invoice for goods delivered or services performed. ASC 606 requires that the Company disclose the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied. However, the guidance provides certain practical expedients that limit this requirement, including when variable consideration is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service that forms part of a series. As discussed above, the Company allocates the variable consideration in its contracts entirely to each specific performance obligation to which it relates. Therefore, any remaining variable consideration in the transaction price is allocated entirely to wholly unsatisfied performance obligations. As such, the Company has not disclosed the value of unsatisfied performance obligations pursuant to the practical expedient. Other Accounting Standards Adopted in 2018: In January 2016, the FASB issued Accounting Standard Update ("ASU") No. 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities," which NACCO adopted on January 1, 2018. The adoption of this guidance resulted in a $2.7 million reclassification within the Consolidated Balance Sheet and did not have a material effect on the Company’s financial position, results of operations, cash flows and related disclosures for further discussion. $2.9 million reclassification within the Consolidated Balance Sheet and did not have a material effect on the Company’s financial position, results of operations, cash flows and related disclosures. Accounting Standards Not Yet Adopted: In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)," which is codified in ASC 842, Leases (“ASC 842”) and supersedes current lease guidance in ASC 840. ASC 842 requires a lessee to recognize a right-of-use asset (“ROU asset”) and a corresponding lease liability for substantially all leases. The lease liability will be equal to the present value of the remaining lease payments while the ROU asset will be similarly calculated and then adjusted for initial direct costs. In addition, ASC 842 expands the disclosure requirements to increase the transparency and comparability of the amount, timing and uncertainty of cash flows arising from leases. The Company will adopt the new standard effective January 1, 2019 using the modified retrospective transition method by recognizing a cumulative effect adjustment to the opening balance of retained earnings. NACCO will not apply the standard to the comparative periods presented in the year of adoption. The Company will elect many of the available practical expedients permitted under the guidance, which among other items, allows the Company to carry forward its historical lease classification and not reassess leases for the definition of lease under the new standard. Upon the adoption of ASC 842, NACCO does not expect to record a ROU asset and related lease liability for leases with an initial term of 12 months or less. The Company is still assessing the potential impact that ASC 842 will have on its financial statements and disclosures, but it expects the adoption will result in the recognition of a ROU asset and related liability of approximately $13.0 million as of January 1, 2019. The most significant effect to the Consolidated Balance Sheet relates to the recognition of new ROU assets and lease liabilities for operating leases of real estate, mining and other equipment. The cumulative effect adjustment to the opening balance of retained earnings is not expected to be material. The actual impact may differ from this estimate, but the ASU is not expected to have a material impact on cash flows, liquidity or debt-covenant compliance. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Disaggregation of Revenue | The following table disaggregates revenue by major sources: YEAR ENDED DECEMBER 31 Major Goods/Service Lines 2018 2017 (1) Consolidated operations - long-term contracts $ 117,869 $ 92,008 Royalty 17,506 12,770 Total revenues $ 135,375 $ 104,778 Timing of Revenue Recognition Goods transferred at a point in time $ 78,849 $ 60,594 Services transferred over time 56,526 44,184 Total revenues $ 135,375 $ 104,778 (1) As noted above, prior period amounts have not been adjusted under the modified retrospective method. |
Contract Balances | The opening and closing balances of the Company’s current and long-term contract liability, and receivables are as follows: Contract balances Trade accounts receivable, net Contract liability (current) Contract liability (long-term) Balance, January 1, 2018 $ 14,611 $ 860 $ 1,766 Balance, December 31, 2018 20,817 754 2,008 Increase (decrease) $ 6,206 $ (106 ) $ 242 |
Other Events and Transactions (
Other Events and Transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operation Results | Discontinued operations includes the following results of HBBHC for the year ended December 31, 2017: HBBHC Operating Statement Data: Revenues $ 474,971 Cost of goods sold 353,436 Gross profit 121,535 Operating expenses (a) 114,379 Operating profit 7,156 Interest expense 1,300 Other expense, net (939 ) Income before income taxes 6,795 Income tax expense 2,655 HBBHC net income $ 4,140 NACCO expenses related to the spin-off 2,759 NACCO discontinued operations income tax expense (benefit) adjustments (493 ) NACCO discontinued operations, net of tax $ 1,874 (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, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories are summarized as follows: December 31 2018 2017 Coal $ 11,030 $ 13,416 Mining supplies 20,179 16,599 Total inventories $ 31,209 $ 30,015 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment, net includes the following: December 31 2018 2017 Coal lands and real estate: NACoal $ 56,247 $ 53,576 NACCO and Other 469 469 56,716 54,045 Plant and equipment: NACoal 160,918 151,145 NACCO and Other 2,646 2,531 163,564 153,676 Property, plant and equipment, at cost 220,280 207,721 Less allowances for depreciation, depletion and amortization 95,726 87,653 $ 124,554 $ 120,068 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 Coal supply agreement $ 84,200 $ (43,684 ) $ 40,516 Balance at December 31, 2017 Coal supply agreement $ 84,200 $ (40,646 ) $ 43,554 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2017 $ 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 Liabilities incurred during the period 189 Liabilities settled during the period (1,667 ) Accretion expense 2,579 Revision of estimated cash flows (3,495 ) Balance at December 31, 2018 $ 37,703 |
Current and Long-Term Financi_2
Current and Long-Term Financing (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table summarizes the Company's available and outstanding borrowings: December 31 2018 2017 Total outstanding borrowings of NACoal: Revolving credit agreement $ 4,000 $ 50,000 Capital lease obligations and other term loans 7,021 8,146 Total debt outstanding $ 11,021 $ 58,146 Current portion of borrowings outstanding $ 4,654 $ 16,125 Long-term portion of borrowings outstanding 6,367 42,021 $ 11,021 $ 58,146 Total available borrowings, net of limitations, under revolving credit agreement $ 148,481 $ 148,591 Unused revolving credit agreement $ 144,481 $ 98,591 Weighted average stated interest rate on total borrowings 4.8 % 3.8 % |
Schedule of Maturities of Total Debt, Excluding Capital Leases | Annual maturities of total debt, excluding capital leases, are as follows: 2019 4,225 2020 237 2021 250 2022 263 2023 277 Thereafter 5,319 $ 10,571 |
Fair Value Disclosure (Tables)
Fair Value Disclosure (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 (Level 1) (Level 2) (Level 3) Assets: Equity securities $ 8,716 $ 8,716 $ — $ — $ 8,716 $ 8,716 $ — $ — 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: Equity securities $ 9,166 $ 9,166 $ — $ — $ 9,166 $ 9,166 — — |
Leasing Arrangements (Tables)
Leasing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Future Minimum Capital and Operating Lease Payments | Future minimum capital and operating lease payments at December 31, 2018 are: Capital Leases Operating Leases 2019 $ 437 $ 2,387 2020 21 2,174 2021 — 2,092 2022 — 2,116 2023 — 1,659 Subsequent to 2023 — 10,959 Total minimum lease payments 458 $ 21,387 Amounts representing interest 8 Present value of net minimum lease payments 450 Current maturities 429 Long-term capital lease obligation $ 21 |
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 2018 2017 Plant and equipment $ 3,085 $ 4,807 Less accumulated depreciation 2,681 3,730 $ 404 $ 1,077 |
Stockholders' Equity and Earn_2
Stockholders' Equity and Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 2018 2017 Location of loss (gain) reclassified from AOCI into income Loss (gain) on cash flow hedging Foreign exchange contracts $ — $ (158 ) Cost of sales Interest rate contracts — (3,466 ) Interest expense — (3,624 ) Total before income tax expense Tax effect — 1,255 Income tax expense (benefit) $ — $ (2,369 ) Net of tax Pension and postretirement plan Actuarial loss $ 580 $ 955 (a) Prior-service credit (6 ) (10 ) (a) 574 945 Total before income tax expense Tax effect (85 ) (363 ) Income tax benefit $ 489 $ 582 Net of tax Total reclassifications for the period $ 489 $ (1,787 ) 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: 2018 2017 Basic weighted average shares outstanding 6,924 6,830 Dilutive effect of restricted stock awards 36 43 Diluted weighted average shares outstanding 6,960 6,873 Basic earnings per share: Continuing operations $ 5.02 $ 4.17 Discontinued operations — 0.27 Basic earnings per share $ 5.02 $ 4.44 Diluted earnings per share: Continuing operations $ 5.00 $ 4.14 Discontinued operations — 0.27 Diluted earnings per share $ 5.00 $ 4.41 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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: 2018 2017 Income (loss) before income tax provision (benefit) Domestic $ 45,170 $ 31,454 Foreign (3,007 ) (2,352 ) $ 42,163 $ 29,102 Income tax provision (benefit) Current income tax provision (benefit): Federal $ (2,296 ) $ (3,885 ) State 393 435 Total current (1,903 ) (3,450 ) Deferred income tax provision (benefit): Federal 8,585 6,588 State 696 (2,499 ) Total deferred 9,281 4,089 $ 7,378 $ 639 |
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: 2018 2017 Income from continuing operations before income tax provision $ 42,163 $ 29,102 Statutory taxes at 21.0% and 35.0%, respectively $ 8,854 $ 10,186 State and local income taxes 1,241 493 Valuation allowances 640 (1,453 ) Non-deductible expenses 663 224 Percentage depletion (4,199 ) (6,253 ) R&D and other federal credits (37 ) 301 Effect of the TCJA — (3,132 ) Other, net 216 273 Income tax provision from continuing operations $ 7,378 $ 639 Effective income tax rate from continuing operations 17.5 % 2.2 % |
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 bases of assets and liabilities follows: December 31 2018 2017 Deferred tax assets Tax carryforwards $ 19,058 $ 22,035 Inventories 2,041 1,878 Accrued expenses and reserves 9,860 11,723 Other employee benefits 4,892 4,640 Other 9,347 8,933 Total deferred tax assets 45,198 49,209 Less: Valuation allowance 14,219 13,579 30,979 35,630 Deferred tax liabilities Depreciation and depletion 27,299 23,029 Partnership investment - development costs 5,146 4,069 Accrued pension benefits 1,380 2,570 Total deferred tax liabilities 33,825 29,668 Net deferred (liability) asset $ (2,846 ) $ 5,962 |
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, 2018 Net deferred tax asset Valuation allowance Carryforwards expire during: Non-U.S. net operating loss $ 2,340 $ 2,340 2024-2026 State losses 16,624 13,182 2019-2038 Research credit 1,198 — 2034-2038 Alternative minimum tax credit 2,310 — (1) Total $ 22,472 $ 15,522 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. |
Unrecognized Tax Benefits Roll Forward | The following is a reconciliation of the Company's total gross unrecognized tax benefits, defined as the aggregate tax effect of differences between tax return positions and the benefits recognized in the financial statements for the years ended December 31, 2018 and 2017 . Approximately $1.1 million and $0.8 million of these gross amounts as of December 31, 2018 and 2017 , 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. 2018 2017 Balance at January 1 $ 997 $ 915 Additions based on tax positions related to prior years 283 — Additions based on tax positions related to the current year — 82 Balance at December 31 $ 1,280 $ 997 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Assumptions used in accounting for the defined benefit plan | The assumptions used in accounting for the postretirement health care plans are set forth below for the years ended December 31 : 2018 2017 Weighted average discount rates for benefit obligation 3.80 % 3.10 % Weighted average discount rates for net periodic benefit cost 3.10 % 3.25 % Health care cost trend rate assumed for next year 6.75 % 7.00 % Rate to which the cost trend rate is assumed to decline (ultimate trend rate) 5.0 % 5.0 % Year that the rate reaches the ultimate trend rate 2025 2025 The assumptions used in accounting for the defined benefit plans were as follows for the years ended December 31 : 2018 2017 Weighted average discount rates for pension benefit obligation 4.10% - 4.20% 3.40% - 3.55% Weighted average discount rates for net periodic benefit cost 3.40% - 3.55% 3.40% - 4.00% Expected long-term rate of return on assets for net periodic benefit cost 7.50 % 7.50 % |
Net periodic benefit income and expense for the defined benefit plan | Set forth below is a detail of the net periodic pension expense (income) for the defined benefit plans for the years ended December 31 : 2018 2017 Interest cost $ 1,581 $ 1,746 Expected return on plan assets (2,852 ) (2,843 ) Amortization of actuarial loss 484 363 Amortization of prior service cost 58 58 Settlements — 76 Net periodic pension income $ (729 ) $ (600 ) Set forth below is a detail of the net periodic benefit expense for the postretirement health care plans for the years ended December 31 : 2018 2017 Service cost $ 50 $ 50 Interest cost 98 101 Amortization of actuarial loss 96 97 Amortization of prior service credit (64 ) (17 ) Net periodic benefit expense $ 180 $ 231 |
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 : 2018 2017 Current year actuarial loss (gain) $ 1,397 $ (1,343 ) Amortization of actuarial loss (484 ) (363 ) Amortization of prior service cost (58 ) (58 ) Settlements — (76 ) Total recognized in other comprehensive loss (income) $ 855 $ (1,840 ) 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 : 2018 2017 Current year actuarial (gain) loss $ (756 ) $ 154 Amortization of actuarial loss (96 ) (97 ) Current year prior service credit (325 ) — Amortization of prior service credit 64 17 Total recognized in other comprehensive (loss) income $ (1,113 ) $ 74 |
Changes in benefit obligations during the year and funded status of defined benefit plan | The following sets forth the changes in benefit obligations during the year and the funded status of the postretirement health care at December 31 : 2018 2017 Change in benefit obligation Benefit obligation at beginning of year $ 3,221 $ 3,211 Service cost 50 50 Interest cost 98 101 Plan amendments (326 ) — Actuarial (gain) loss (756 ) 154 Benefits paid (174 ) (295 ) Benefit obligation at end of year $ 2,113 $ 3,221 Funded status at end of year $ (2,113 ) $ (3,221 ) Amounts recognized in the balance sheets consist of: Current liabilities $ (215 ) $ (282 ) Noncurrent liabilities (1,898 ) (2,939 ) $ (2,113 ) $ (3,221 ) Components of accumulated other comprehensive loss (income) consist of: Actuarial loss $ 189 $ 1,040 Prior service credit (339 ) (78 ) Deferred taxes (74 ) 287 $ (224 ) $ 1,249 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 : 2018 2017 Change in benefit obligation Projected benefit obligation at beginning of year $ 46,065 $ 45,318 Interest cost 1,581 1,746 Actuarial (gain) loss (3,286 ) 1,275 Benefits paid (2,334 ) (2,019 ) Settlements — (255 ) Projected benefit obligation at end of year $ 42,026 $ 46,065 Accumulated benefit obligation at end of year $ 42,026 $ 46,065 Change in plan assets Fair value of plan assets at beginning of year $ 38,527 $ 34,628 Actual (loss) return on plan assets (1,832 ) 5,461 Employer contributions 593 712 Benefits paid (2,334 ) (2,019 ) Settlements — (255 ) Fair value of plan assets at end of year $ 34,954 $ 38,527 Funded status at end of year $ (7,072 ) $ (7,538 ) Amounts recognized in the balance sheets consist of: Non-current assets $ 2,047 $ 2,051 Current liabilities (588 ) (700 ) Non-current liabilities (8,531 ) (8,889 ) $ (7,072 ) $ (7,538 ) Components of accumulated other comprehensive loss (income) consist of: Actuarial loss $ 16,277 $ 15,363 Prior service cost 878 937 Deferred taxes (3,320 ) (6,481 ) $ 13,835 $ 9,819 |
Future benefit payments | Future pension benefit payments expected to be paid from assets of the pension plans are: 2019 $ 2,475 2020 2,560 2021 2,669 2022 2,760 2023 2,819 2024 - 2028 14,232 $ 27,515 Future postretirement health care benefit payments expected to be paid are: 2019 215 2020 234 2021 250 2022 238 2023 232 2024 - 2028 902 $ 2,071 |
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: 2018 2017 Target Allocation Range U.S. equity securities 42.4 % 47.2 % 36.0% - 54.0% Non-U.S. equity securities 19.4 % 21.1 % 16.0% - 24.0% Fixed income securities 37.7 % 31.4 % 30.0% - 40.0% Money market 0.5 % 0.3 % 0.0% - 10.0% |
Fair value of pension plan assets | 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 2018 2017 U.S. equity securities $ 14,834 $ 18,175 Non-U.S. equity securities 6,790 8,120 Fixed income securities 13,169 12,097 Money market 161 135 Total $ 34,954 $ 38,527 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting Information | 2018 2017 Revenues from external customers $ 135,375 $ 104,778 Gross profit (loss) NACoal $ 30,337 $ 17,198 NACCO and Other (369 ) (279 ) Total $ 29,968 $ 16,919 Earnings of unconsolidated operations $ 64,994 $ 61,361 Selling, general and administrative expenses, including Amortization of intangible assets NACoal $ 45,939 $ 42,516 NACCO and Other 6,291 7,098 Total $ 52,230 $ 49,614 Operating profit (loss) NACoal $ 50,284 $ 39,677 NACCO and Other (6,660 ) (6,863 ) Total $ 43,624 $ 32,814 Total assets NACoal $ 274,800 $ 277,538 NACCO and Other 120,954 135,434 Eliminations (18,763 ) (23,420 ) Total $ 376,991 $ 389,552 Depreciation, depletion and amortization NACoal $ 14,596 $ 12,444 NACCO and Other 87 323 Total $ 14,683 $ 12,767 Capital expenditures NACoal $ 20,799 $ 15,692 NACCO and Other 131 12 Total $ 20,930 $ 15,704 |
Parent Company Condensed Bala_2
Parent Company Condensed Balance Sheets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheet | The condensed balance sheets of NACCO, the parent company, at December 31 are as follows: 2018 2017 ASSETS Cash and cash equivalents $ 84,819 $ 94,646 Accounts receivable from affiliates 2,418 9,189 Current intercompany accounts receivable, net 868 — Other current assets 4,508 1,714 Investment in subsidiaries: NACoal 173,020 141,174 Other, primarily Bellaire 12,633 13,340 185,653 154,514 Property, plant and equipment, net 241 310 Other non-current assets 7,851 9,550 Total Assets $ 286,358 $ 269,923 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities $ 5,148 $ 7,627 Current intercompany accounts payable, net — 11,858 Note payable to Bellaire 17,300 17,850 Deferred compensation 12,939 12,939 Other non-current liabilities 267 201 Stockholders’ equity 250,704 219,448 Total Liabilities and Stockholders’ Equity $ 286,358 $ 269,923 |
Unconsolidated Subsidiaries (Ta
Unconsolidated Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Condensed Financial Statements | Summarized financial information for the unconsolidated subsidiaries is as follows: 2018 2017 Statement of Operations Revenue $ 766,558 $ 791,264 Gross profit $ 76,600 $ 87,760 Income before income taxes $ 66,270 $ 62,607 Net income $ 55,247 $ 55,268 Balance Sheet Current assets $ 182,353 $ 179,316 Non-current assets $ 860,049 $ 883,919 Current liabilities $ 146,788 $ 175,844 Non-current liabilities $ 891,175 $ 882,200 |
Principles of Consolidation a_2
Principles of Consolidation and Nature of Operations (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable interest entity, ownership percentage by parent | 100.00% |
Significant Accounting Polici_4
Significant Accounting Policies (Property Plant and Equipment & Intangible Assets) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
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 Polici_5
Significant Accounting Policies (Coal Supply Agreement) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Coal supply agreement amortization period | 30 years |
Significant Accounting Polici_6
Significant Accounting Policies (Stock-based Compensation and Other) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Amount of directors, annual retainer paid in restricted shares | $ 90,000 | |||
Annual non-employee directors retainer amount | $ 150,000 | |||
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) | 96,153 | 92,572 | ||
Class A common stock available for issuance under the plan (shares) | 311,275 | |||
Compensation expense related to share awards | $ 3,400,000 | $ 3,500,000 | ||
Compensation expense related to share awards, net of tax | $ 2,700,000 | 2,300,000 | ||
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) | 54,042 | |||
Compensation expense related to share awards | $ 900,000 | 900,000 | ||
Compensation expense related to share awards, net of tax | $ 700,000 | $ 600,000 | ||
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) | 26,968 | 18,643 | ||
Amount of directors, annual retainer paid in restricted shares | $ 22,500 | $ 66,750 | ||
Annual non-employee directors retainer amount | $ 37,500 | $ 108,750 | $ 37,500 | |
Percentage of annual retainer that may be received in shares of Class A stock (percent) | 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) | 560 | 2,746 | ||
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 | 5 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 | |||
Maximum | 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 | |||
Minimum | 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 | 3 years |
Significant Accounting Polici_7
Significant Accounting Policies (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 135,375 | $ 104,778 |
Goods transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 78,849 | 60,594 |
Services transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 56,526 | 44,184 |
Revenue - consolidated mines | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 117,869 | 92,008 |
Revenue - royalty and other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 17,506 | $ 12,770 |
Significant Accounting Polici_8
Significant Accounting Policies (Recently Issued Accounting Standards) (Details) - USD ($) $ in Thousands | Jan. 01, 2018 | Dec. 31, 2018 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reclassification due to Tax Cuts and Jobs Act of 2017 | $ 160 | ||
Accounting Standards Update 2014-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Contract liability | $ 2,600 | ||
Reclassification within Consolidated Balance Sheet | (1,963) | ||
Accounting Standards Update 2016-01 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reclassification within Consolidated Balance Sheet | 0 | ||
Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reclassification due to Tax Cuts and Jobs Act of 2017 | $ 2,891 | ||
Retained Earnings | Accounting Standards Update 2014-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect on retained earnings, tax | 600 | ||
Reclassification within Consolidated Balance Sheet | (1,963) | ||
Retained Earnings | Accounting Standards Update 2016-01 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reclassification within Consolidated Balance Sheet | 2,727 | ||
Subsequent Event | Forecast | Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Approximate increase to assets upon adoption of ASU 2016-02 | $ 13,000 | ||
Approximate increase to liabilities upon adoption of ASU 2016-02 | $ 13,000 | ||
Accounting Standards Update 2018-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reclassification due to Tax Cuts and Jobs Act of 2017 | $ 2,900 |
Significant Accounting Polici_9
Significant Accounting Policies (Contract Balances) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Trade accounts receivable, net | |
Balance, January 1, 2018 | $ 14,611 |
Balance, December 31, 2018 | 20,817 |
Increase (decrease) in trade accounts receivable, net | 6,206 |
Contract liability (current) | |
Balance, January 1, 2018 | 860 |
Balance, December 31, 2018 | 754 |
Increase (decrease) in contract liability, current | (106) |
Contract liability (long-term) | |
Balance, January 1, 2018 | 1,766 |
Balance, December 31, 2018 | 2,008 |
Increase (decrease) in contract liability, long-term | 242 |
Revenue recognized | $ 1,200 |
Significant Accounting Polic_10
Significant Accounting Policies Significant Accounting Policies (Performance Obligations) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Accounting Policies [Abstract] | |
Remaining performance obligation, amount | $ 0.8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Accounting Policies [Abstract] | |
Remaining performance obligation, amount | $ 0.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance period | 2 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Accounting Policies [Abstract] | |
Remaining performance obligation, amount | $ 0.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Accounting Policies [Abstract] | |
Remaining performance obligation, amount | $ 0.1 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance period | 1 year |
Other Events and Transactions_2
Other Events and Transactions (Details) - USD ($) $ in Thousands | Sep. 28, 2017 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Cash dividends received from Hamilton Beach Brands Holding Co. | $ 0 | $ (38,000) | |||
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) | |||
Fees received | $ 200 | $ 500 | |||
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 |
Other Events and Transactions_3
Other Events and Transactions (Discontinued Operation Results) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Income tax expense | $ 0 | $ 2,162 | |
Income from discontinued operations | $ 0 | 1,874 | |
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 | ||
Cost of goods sold | 353,436 | ||
Gross profit | 121,535 | ||
Operating expenses | 114,379 | ||
Operating profit | 7,156 | ||
Interest expense | 1,300 | ||
Other expense, net | (939) | ||
Income before income taxes | 6,795 | ||
Income tax expense | 2,655 | ||
HBBHC net income | 4,140 | ||
NACCO expenses related to the spin-off | 2,759 | ||
NACCO discontinued operations income tax expense (benefit) adjustments | (493) | ||
Income from discontinued operations | $ 1,874 | ||
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, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Coal | $ 11,030 | $ 13,416 |
Mining supplies | 20,179 | 16,599 |
Total inventories | $ 31,209 | $ 30,015 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | $ 220,280 | $ 207,721 |
Less allowances for depreciation, depletion and amortization | 95,726 | 87,653 |
Property, plant and equipment, net | 124,554 | 120,068 |
Depreciation, depletion and amortization | 11,600 | 10,600 |
Coal Lands and Real Estate | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 56,716 | 54,045 |
Plant and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 163,564 | 153,676 |
NACoal | Coal Lands and Real Estate | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 56,247 | 53,576 |
NACoal | Plant and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 160,918 | 151,145 |
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 | $ 2,646 | $ 2,531 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Net Balance | $ 40,516 | $ 43,554 |
Amortization of intangible assets | 3,038 | 2,123 |
Coal supply agreement | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 84,200 | 84,200 |
Accumulated Amortization | (43,684) | (40,646) |
Net Balance | 40,516 | $ 43,554 |
NACoal | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
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 | |
Expected annual amortization expense, 2023 | $ 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, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | 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 | $ 40,097 | $ 42,105 | |||
Liabilities incurred during the period | 189 | 277 | |||
Liabilities settled during the period | (1,667) | (2,430) | |||
Accretion expense | 2,579 | 2,749 | |||
Revision of estimated cash flows | (3,495) | (2,604) | |||
Carrying amount of the asset retirement obligations, balance at end of period | 37,703 | 40,097 | |||
Segment Reporting Information [Line Items] | |||||
Asset retirement obligations, current | $ 1,826 | $ 3,092 | |||
Asset retirement obligations, noncurrent | 35,877 | 37,005 | |||
Asset retirement obligations | $ 40,097 | $ 42,105 | 37,703 | $ 40,097 | |
Bellaire | |||||
Segment Reporting Information [Line Items] | |||||
Fair value of trust assets | $ 8,700 | $ 5,000 |
Current and Long-Term Financi_3
Current and Long-Term Financing (Debt Schedule) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Long-term portion of borrowings outstanding | $ 6,367 | $ 42,021 |
NACoal | ||
Debt Instrument [Line Items] | ||
Revolving credit agreement | 4,000 | 50,000 |
Capital lease obligations and other term loans: | 7,021 | 8,146 |
Total debt outstanding | 11,021 | 58,146 |
Current portion of borrowings outstanding | 4,654 | 16,125 |
Long-term portion of borrowings outstanding | 6,367 | 42,021 |
Total available borrowings, net of limitations, under revolving credit agreements | 148,481 | 148,591 |
Unused revolving credit agreements | $ 144,481 | $ 98,591 |
Weighted average stated interest rate on total borrowings | 4.80% | 3.80% |
Current and Long-Term Financi_4
Current and Long-Term Financing (Debt Maturity Schedule) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
2,019 | $ 4,225 | |
2,020 | 237 | |
2,021 | 250 | |
2,022 | 263 | |
2,023 | 277 | |
Thereafter | 5,319 | |
Long-term debt | $ 10,571 | $ 56,700 |
Current and Long-Term Financi_5
Current and Long-Term Financing (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 15, 2026USD ($) | |
Line of Credit Facility [Line Items] | |||
Interest paid | $ 2,000,000 | $ 3,900,000 | |
Outstanding notes payable | 10,571,000 | 56,700,000 | |
NACoal | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility, maximum borrowing capacity | 150,000,000 | ||
Line of credit facility, amount outstanding | 4,000,000 | 50,000,000 | |
Line of credit facility, remaining borrowing capacity | 144,481,000 | 98,591,000 | |
Amount of letters of credit outstanding | $ 1,500,000 | ||
Line of credit facility, unused capacity, commitment fee percentage | 0.30% | ||
Weighted average interest rate | 4.28% | ||
Minimum interest coverage ratio | 4 | ||
Fixed charge coverage ratio | 1.10 | ||
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 | 0.75% | ||
NACoal | LIBOR Rate | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.75% | ||
Secured Debt | 5.29% Note Payable Maturing 2026 [Member] | |||
Line of Credit Facility [Line Items] | |||
Interest rate | 5.29% | ||
Outstanding notes payable | $ 6,600,000 | $ 6,800,000 | |
Secured Debt | Forecast | 5.29% Note Payable Maturing 2026 [Member] | |||
Line of Credit Facility [Line Items] | |||
Principal payment due at maturity | $ 4,400,000 |
Fair Value Disclosure (Schedule
Fair Value Disclosure (Schedule of Assets and Liabilities) (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Quoted prices in active markets for identical assets (level 1) | ||
Assets: | ||
Equity securities | $ 8,716 | $ 9,166 |
Total assets accounted for at fair value on a recurring basis | 8,716 | 9,166 |
Significant other observable inputs (level 2) | ||
Assets: | ||
Equity securities | 0 | 0 |
Total assets accounted for at fair value on a recurring basis | 0 | 0 |
Significant unobservable inputs (level 3) | ||
Assets: | ||
Equity securities | 0 | 0 |
Total assets accounted for at fair value on a recurring basis | 0 | 0 |
Estimate of Fair Value Measurement | ||
Assets: | ||
Equity securities | 8,716 | 9,166 |
Total assets accounted for at fair value on a recurring basis | $ 8,716 | $ 9,166 |
Fair Value Disclosure (Narrativ
Fair Value Disclosure (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Centennial asset impairment charge | $ 0 | $ 982 | |
Long-term debt fair value | 56,700 | ||
Long-term Debt | 10,571 | $ 56,700 | |
Revolving Credit Agreements | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt fair value | 10,400 | ||
Level 1 | Fair Value, Measurements, Recurring | Bellaire | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Realized gain (loss) on equity securities | $ (300) | ||
Accounting Standards Update 2016-01 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cumulative effect of new accounting principles on retained earnings | $ 0 | ||
Accounting Standards Update 2016-01 | Retained Earnings | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cumulative effect of new accounting principles on retained earnings | $ 2,727 |
Leasing Arrangements (Details)
Leasing Arrangements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Capital Leases | ||
2,019 | $ 437 | |
2,020 | 21 | |
2,021 | 0 | |
2,022 | 0 | |
2,023 | 0 | |
Subsequent to 2023 | 0 | |
Total minimum lease payments | 458 | |
Amounts representing interest | 8 | |
Present value of net minimum lease payments | 450 | |
Current maturities | 429 | |
Long-term capital lease obligation | 21 | |
Operating Leases | ||
2,019 | 2,387 | |
2,020 | 2,174 | |
2,021 | 2,092 | |
2,022 | 2,116 | |
2,023 | 1,659 | |
Subsequent to 2023 | 10,959 | |
Total minimum lease payments | 21,387 | |
Rental expense for all operating leases | 3,700 | $ 4,900 |
Rental income on subleases of equipment | 900 | 600 |
Assets recorded under capital leases | ||
Plant and equipment | 3,085 | 4,807 |
Less accumulated depreciation | 2,681 | 3,730 |
Assets recorded under capital leases | $ 404 | $ 1,077 |
Stockholders' Equity and Earn_3
Stockholders' Equity and Earnings Per Share (Textual) (Details) | 12 Months Ended | 49 Months Ended | |
Dec. 31, 2018USD ($)voteshares | Dec. 31, 2017USD ($)shares | Feb. 14, 2018USD ($) | |
2018 Stock Repurchase Program | |||
Class of Stock [Line Items] | |||
Authorized amount available for repurchase | $ | $ 25,000,000 | ||
Treasury Stock, Value, Acquired, Par Value Method | $ | $ 1,300,000 | ||
Class A Common Stock | |||
Class of Stock [Line Items] | |||
Votes per share | vote | 1 | ||
Common stock, shares authorized | shares | 25,000,000 | ||
Treasury stock (in shares) | shares | 2,862,442 | 2,931,590 | |
Class A Common Stock | 2016 Stock Repurchase Program | |||
Class of Stock [Line Items] | |||
Treasury stock, shares acquired (in shares) | shares | 1,855,923 | ||
Treasury stock, value | $ | $ 39,047 | ||
Treasury Stock, Value, Acquired, Par Value Method | $ | $ 101,700,000 | ||
Class B Common Stock | |||
Class of Stock [Line Items] | |||
Votes per share | vote | 10 | ||
Common stock, shares authorized | shares | 6,756,176 |
Stockholders' Equity and Earn_4
Stockholders' Equity and Earnings Per Share (Reclassification out of AOCI) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Cost of sales | $ 105,407 | $ 87,859 |
Interest expense | 1,998 | 3,440 |
Income tax expense (benefit) | (7,378) | (639) |
Net income | 34,785 | 30,337 |
Pension and postretirement plan | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total reclassifications for the period | (489) | (582) |
Reclassification out of accumulated other comprehensive income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total reclassifications for the period | 489 | (1,787) |
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) | 0 | (3,624) |
Income tax expense (benefit) | 0 | 1,255 |
Net income | 0 | (2,369) |
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) | 574 | 945 |
Income tax expense (benefit) | (85) | (363) |
Net income | 489 | 582 |
Reclassification out of accumulated other comprehensive income | Actuarial loss | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Pension and postretirement plan | 580 | 955 |
Reclassification out of accumulated other comprehensive income | Prior-service credit | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Pension and postretirement plan | (6) | (10) |
Foreign currency exchange contracts | Reclassification out of accumulated other comprehensive income | Loss (gain) on cash flow hedging | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Cost of sales | 0 | (158) |
Interest rate swap agreements | Reclassification out of accumulated other comprehensive income | Loss (gain) on cash flow hedging | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest expense | $ 0 | $ (3,466) |
Stockholders' Equity and Earn_5
Stockholders' Equity and Earnings Per Share (Weighted Average Number of Shares Outstanding Reconciliation) (Details) - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Equity [Abstract] | ||
Basic weighted average shares outstanding (in shares) | 6,924 | 6,830 |
Dilutive effect of restricted stock awards (in shares) | 36 | 43 |
Diluted weighted average shares outstanding (in shares) | 6,960 | 6,873 |
Basic earnings per share: | ||
Continuing operations (USD per share) | $ 5.02 | $ 4.17 |
Discontinued operations (USD per share) | 0 | 0.27 |
Basic earnings per share (USD per share) | 5.02 | 4.44 |
Diluted earnings per share: | ||
Continuing operations (USD per share) | 5 | 4.14 |
Discontinued operations (USD per share) | 0 | 0.27 |
Diluted earnings per share (USD per share) | $ 5 | $ 4.41 |
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, 2018 | Dec. 31, 2017 | |
Income (loss) before income tax provision (benefit) | ||
Domestic | $ 45,170 | $ 31,454 |
Foreign | (3,007) | (2,352) |
Income from continuing operations before income tax provision | 42,163 | 29,102 |
Current income tax provision (benefit): | ||
Federal | (2,296) | (3,885) |
State | 393 | 435 |
Total current | (1,903) | (3,450) |
Deferred income tax provision (benefit): | ||
Federal | 8,585 | 6,588 |
State | 696 | (2,499) |
Total deferred | 9,281 | 4,089 |
Income tax provision from continuing operations | $ 7,378 | $ 639 |
Income Taxes (Textual) (Details
Income Taxes (Textual) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Income tax payments | $ 0.5 | $ 5.2 |
Income tax refunds | 0.1 | 0.3 |
Discrete net tax benefit attributable to corporate tax rate reduction on existing deferred tax balances | 3.1 | |
Permanent items | 1.1 | 0.8 |
Net (benefit) expense in interest and penalties related to uncertain tax positions | 0.1 | 0.1 |
Interest and penalties accrued | $ 0.1 | $ 0.1 |
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, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Income from continuing operations before income tax provision | $ 42,163 | $ 29,102 |
Statutory taxes at 21.0% and 35.0%, respectively | 8,854 | 10,186 |
State and local income taxes | 1,241 | 493 |
Valuation allowances | 640 | (1,453) |
Non-deductible expenses | 663 | 224 |
Percentage depletion | (4,199) | (6,253) |
R&D and other federal credits | (37) | 301 |
Effect of the TCJA | 0 | (3,132) |
Other, net | 216 | 273 |
Income tax provision from continuing operations | $ 7,378 | $ 639 |
Effective income tax rate from continuing operations | 17.50% | 2.20% |
Income Taxes (Summary of the To
Income Taxes (Summary of the Total Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets | ||
Tax carryforwards | $ 19,058 | $ 22,035 |
Inventories | 2,041 | 1,878 |
Accrued expenses and reserves | 9,860 | 11,723 |
Other employee benefits | 4,892 | 4,640 |
Other | 9,347 | 8,933 |
Total deferred tax assets | 45,198 | 49,209 |
Less: Valuation allowance | 14,219 | 13,579 |
Deferred tax assets, net of valuation allowance | 30,979 | 35,630 |
Deferred tax liabilities | ||
Depreciation and depletion | 27,299 | 23,029 |
Partnership investment - development costs | 5,146 | 4,069 |
Accrued pension benefits | 1,380 | 2,570 |
Total deferred tax liabilities | 33,825 | 29,668 |
Net deferred liability | $ (2,846) | 0 |
Net deferred asset | $ 5,962 |
Income Taxes (Summary of Operat
Income Taxes (Summary of Operating Loss Carryforwards and Tax Credit Carryforwards) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Operating Loss Carryforwards [Line Items] | ||
Net deferred tax asset, net operating loss | $ 19,058 | $ 22,035 |
Total net deferred tax asset | 22,472 | 25,591 |
Total valuation allowance | 15,522 | 14,492 |
Foreign tax authority | ||
Operating Loss Carryforwards [Line Items] | ||
Net deferred tax asset, net operating loss | 2,340 | 1,438 |
Valuation allowance, net operating loss | 2,340 | 1,438 |
State and local jurisdiction | ||
Operating Loss Carryforwards [Line Items] | ||
Net deferred tax asset, net operating loss | 16,624 | 16,948 |
Valuation allowance, net operating loss | 13,182 | 13,054 |
Net deferred tax asset, tax credit carryforwards, research | 1,198 | 1,870 |
Net deferred tax asset, alternative minimum tax credit | 2,310 | 5,335 |
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, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ||
Balance at beginning of period | $ 997 | $ 915 |
Additions based on tax positions related to prior years | 283 | 0 |
Additions based on tax positions related to the current year | 0 | 82 |
Balance at end of period | $ 1,280 | $ 997 |
Retirement Benefit Plans (Assum
Retirement Benefit Plans (Assumptions Used in Accounting for Defined Benefit Plans) (Details) - Pension Plan | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Expected long-term rate of return on assets for net periodic benefit cost | 7.50% | 7.50% |
Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average discount rates for pension benefit obligation | 4.10% | 3.40% |
Weighted average discount rates for net periodic benefit cost | 3.40% | 3.40% |
Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average discount rates for pension benefit obligation | 4.20% | 3.55% |
Weighted average discount rates for net periodic benefit cost | 3.55% | 4.00% |
Retirement Benefit Plans (Net P
Retirement Benefit Plans (Net Periodic Benefit Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | $ 1,581 | $ 1,746 |
Expected return on plan assets | (2,852) | (2,843) |
Amortization of actuarial loss | 484 | 363 |
Amortization of prior service cost | 58 | 58 |
Settlements | 0 | 76 |
Net periodic pension income | (729) | (600) |
Other Postretirement Benefits Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 50 | 50 |
Interest cost | 98 | 101 |
Amortization of actuarial loss | 96 | 97 |
Amortization of prior service cost | (64) | (17) |
Net periodic pension income | $ 180 | $ 231 |
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, 2018 | Dec. 31, 2017 | |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current year actuarial (gain) loss | $ 1,397 | $ (1,343) |
Amortization of actuarial loss | (484) | (363) |
Amortization of prior service credit | (58) | (58) |
Settlements | 0 | (76) |
Total recognized in other comprehensive loss (income) | 855 | (1,840) |
Other Postretirement Benefits Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current year actuarial (gain) loss | (756) | 154 |
Amortization of actuarial loss | (96) | (97) |
Current year prior service credit | (325) | 0 |
Amortization of prior service credit | 64 | 17 |
Total recognized in other comprehensive loss (income) | $ (1,113) | $ 74 |
Retirement Benefit Plans (Oblig
Retirement Benefit Plans (Obligation and Funded Status) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Amounts recognized in the balance sheets consist of: | ||
Non-current liabilities | $ (10,429) | $ (11,827) |
Pension Plan | ||
Change in benefit obligation | ||
Projected benefit obligation at beginning of year | 46,065 | 45,318 |
Interest cost | 1,581 | 1,746 |
Actuarial (gain) loss | (3,286) | 1,275 |
Benefits paid | (2,334) | (2,019) |
Intercompany transfers | 0 | 255 |
Projected benefit obligation at end of year | 42,026 | 46,065 |
Accumulated benefit obligation at end of year | 42,026 | 46,065 |
Change in plan assets | ||
Fair value of plan assets at beginning of year | 38,527 | 34,628 |
Actual (loss) return on plan assets | (1,832) | 5,461 |
Employer contributions | 593 | 712 |
Benefits paid | (2,334) | (2,019) |
Intercompany transfers | 0 | (255) |
Fair value of plan assets at end of year | 34,954 | 38,527 |
Funded status at end of year | (7,072) | (7,538) |
Amounts recognized in the balance sheets consist of: | ||
Non-current assets | 2,047 | 2,051 |
Current liabilities | (588) | (700) |
Non-current liabilities | (8,531) | (8,889) |
Amount recognized in the balance sheets | (7,072) | (7,538) |
Components of accumulated other comprehensive loss (income) consist of: | ||
Actuarial loss | 16,277 | 15,363 |
Prior service cost | 878 | 937 |
Deferred taxes | (3,320) | (6,481) |
Accumulated other comprehensive (loss) income | 13,835 | 9,819 |
Other Postretirement Benefits Plan | ||
Change in benefit obligation | ||
Projected benefit obligation at beginning of year | 3,221 | 3,211 |
Service cost | 50 | 50 |
Interest cost | 98 | 101 |
Plan amendments | 326 | 0 |
Actuarial (gain) loss | (756) | 154 |
Benefits paid | (174) | (295) |
Projected benefit obligation at end of year | 2,113 | 3,221 |
Change in plan assets | ||
Funded status at end of year | (2,113) | (3,221) |
Amounts recognized in the balance sheets consist of: | ||
Current liabilities | (215) | (282) |
Non-current liabilities | (1,898) | (2,939) |
Amount recognized in the balance sheets | (2,113) | (3,221) |
Components of accumulated other comprehensive loss (income) consist of: | ||
Actuarial loss | 189 | 1,040 |
Prior service cost | (339) | (78) |
Deferred taxes | (74) | 287 |
Accumulated other comprehensive (loss) income | $ (224) | $ 1,249 |
Retirement Benefit Plans (Narra
Retirement Benefit Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined contribution plan, total costs | $ 2.6 | $ 2.6 |
Retirement Benefit Plans (Sched
Retirement Benefit Plans (Schedule of Expected Benefit Payments) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | $ 2,475 |
2,020 | 2,560 |
2,022 | 2,669 |
2,023 | 2,760 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 2,819 |
2024 - 2028 | 14,232 |
Total | 27,515 |
Other Postretirement Benefits Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | 215 |
2,020 | 234 |
2,022 | 250 |
2,023 | 238 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 232 |
2024 - 2028 | 902 |
Total | $ 2,071 |
Retirement Benefit Plans (Actua
Retirement Benefit Plans (Actual Allocation Percentage and Target Allocation Percentage for the U.S. Pension Plan Assets) (Details) - Pension Plan | Dec. 31, 2018 | Dec. 31, 2017 |
U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 42.40% | 47.20% |
Non-U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 19.40% | 21.10% |
Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 37.70% | 31.40% |
Money market | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 0.50% | 0.30% |
Minimum | U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | 36.00% | |
Minimum | Non-U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | 16.00% | |
Minimum | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | 30.00% | |
Minimum | Money market | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | 0.00% | |
Maximum | U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | 54.00% | |
Maximum | Non-U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | 24.00% | |
Maximum | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | 40.00% | |
Maximum | Money market | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | 10.00% |
Retirement Benefit Plans (Fair
Retirement Benefit Plans (Fair Value Hierarchy) (Details) - Pension Plan - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of each major category of U.S. plan assets | $ 34,954 | $ 38,527 | $ 34,628 |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of each major category of U.S. plan assets | 34,954 | 38,527 | |
Level 1 | U.S. equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of each major category of U.S. plan assets | 14,834 | 18,175 | |
Level 1 | Non-U.S. equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of each major category of U.S. plan assets | 6,790 | 8,120 | |
Level 1 | Fixed income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of each major category of U.S. plan assets | 13,169 | 12,097 | |
Level 1 | Money market | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of each major category of U.S. plan assets | $ 161 | $ 135 |
Retirement Benefit Plans (Ass_2
Retirement Benefit Plans (Assumptions Used in Accounting for Postretirement Benefit Plans) (Details) - Other Postretirement Benefits Plan | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Weighted average discount rates for pension benefit obligation | 3.80% | 3.10% |
Weighted average discount rates for net periodic benefit cost | 3.10% | 3.25% |
Health care cost trend rate assumed for next year | 6.80% | 7.00% |
Rate to which the cost trend rate is assumed to decline (ultimate trend rate) | 5.00% | 5.00% |
Year that the rate reaches the ultimate trend rate | 2,025 | 2,025 |
Business Segments (Textual) (De
Business Segments (Textual) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Customer concentration risk | Sales revenue, net | Choctaw Generation Limited Partnership | NACoal | ||
Segment Reporting Information [Line Items] | ||
Revenue from major customer, percentage | 60.00% | 60.00% |
Customer concentration risk | Sales revenue, net | Cemex | NACoal | ||
Segment Reporting Information [Line Items] | ||
Revenue from major customer, percentage | 20.00% | 18.00% |
HBBHC | ||
Segment Reporting Information [Line Items] | ||
Management fees expense | $ (3) |
Business Segments (Statements o
Business Segments (Statements of Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Revenues from external customers | $ 135,375 | $ 104,778 |
Gross profit (loss) | 29,968 | 16,919 |
Earnings of unconsolidated operations | 64,994 | 61,361 |
Selling, general and administrative expenses, including Amortization of intangible assets | 52,230 | 49,614 |
Operating profit (loss) | 43,624 | 32,814 |
Operating Segments | NACoal | ||
Segment Reporting Information [Line Items] | ||
Revenues from external customers | 135,375 | 104,778 |
Gross profit (loss) | 30,337 | 17,198 |
Selling, general and administrative expenses, including Amortization of intangible assets | 45,939 | 42,516 |
Operating profit (loss) | 50,284 | 39,677 |
NACCO and Other | NACCO and Other | ||
Segment Reporting Information [Line Items] | ||
Gross profit (loss) | (369) | (279) |
Selling, general and administrative expenses, including Amortization of intangible assets | 6,291 | 7,098 |
Operating profit (loss) | $ (6,660) | $ (6,863) |
Business Segments (Balance Shee
Business Segments (Balance Sheets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Total assets | $ 376,991 | $ 389,552 |
Depreciation, depletion and amortization | 14,683 | 12,767 |
Capital expenditures | 20,930 | 15,704 |
Operating Segments | NACoal | ||
Segment Reporting Information [Line Items] | ||
Total assets | 274,800 | 277,538 |
Depreciation, depletion and amortization | 14,596 | 12,444 |
Capital expenditures | 20,799 | 15,692 |
NACCO and Other | NACCO and Other | ||
Segment Reporting Information [Line Items] | ||
Total assets | 120,954 | 135,434 |
Depreciation, depletion and amortization | 87 | 323 |
Capital expenditures | 131 | 12 |
Eliminations | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ (18,763) | $ (23,420) |
Parent Company Condensed Bala_3
Parent Company Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | |||
Cash and cash equivalents | $ 85,257 | $ 101,600 | $ 69,308 |
Accounts receivable from affiliates | 7,999 | 19,919 | |
Property, plant and equipment, net | 124,554 | 120,068 | |
Other non-current assets | 24,412 | 23,063 | |
Total assets | 376,991 | 389,552 | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||
Current liabilities | 42,248 | 53,976 | |
Deferred compensation | 12,939 | 12,939 | |
Other long-term liabilities | 15,581 | 12,336 | |
Stockholders’ equity | 250,704 | 219,448 | |
Total liabilities and equity | 376,991 | 389,552 | |
Parent Company | |||
ASSETS | |||
Cash and cash equivalents | 84,819 | 94,646 | $ 57,917 |
Accounts receivable from affiliates | 2,418 | 9,189 | |
Current intercompany accounts receivable, net | 868 | 0 | |
Other current assets | 4,508 | 1,714 | |
Investment in subsidiaries: | 185,653 | 154,514 | |
Property, plant and equipment, net | 241 | 310 | |
Other non-current assets | 7,851 | 9,550 | |
Total assets | 286,358 | 269,923 | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||
Current liabilities | 5,148 | 7,627 | |
Current intercompany accounts payable, net | 0 | 11,858 | |
Other long-term liabilities | 267 | 201 | |
Stockholders’ equity | 250,704 | 219,448 | |
Total liabilities and equity | 286,358 | 269,923 | |
Restricted investments | 1,600 | ||
Unrestricted investment | 300 | ||
Parent Company | NACoal | |||
ASSETS | |||
Investment in subsidiaries: | 173,020 | 141,174 | |
Parent Company | Other, primarily Bellaire | |||
ASSETS | |||
Investment in subsidiaries: | 12,633 | 13,340 | |
Parent Company | Bellaire | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||
Note payable to Bellaire | $ 17,300 | $ 17,850 |
Unconsolidated Subsidiaries (De
Unconsolidated Subsidiaries (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | ||
Investment in unconsolidated subsidiaries | $ 20,091 | $ 16,335 |
Unconsolidated mines | NACoal | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment in unconsolidated subsidiaries | 20,100 | 16,300 |
Maximum risk of loss | 4,400 | 5,200 |
Statement of Operations | ||
Revenue | 766,558 | 791,264 |
Gross profit | 76,600 | 87,760 |
Income before income taxes | 66,270 | 62,607 |
Net income | 55,247 | 55,268 |
Balance Sheet | ||
Current assets | 182,353 | 179,316 |
Non-current assets | 860,049 | 883,919 |
Current liabilities | 146,788 | 175,844 |
Non-current liabilities | 891,175 | 882,200 |
Dividends from unconsolidated mines | $ 56,000 | $ 54,700 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Jones Day | ||
Related Party Transaction [Line Items] | ||
Legal services | $ 2.1 | $ 3 |
Mr. Rankin | ||
Related Party Transaction [Line Items] | ||
Legal services | $ 0.5 | $ 0.1 |
Schedule I - Condensed Financ_2
Schedule I - Condensed Financial Information of the Parent (Condensed Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | |||
Cash and cash equivalents | $ 85,257 | $ 101,600 | $ 69,308 |
Accounts receivable from affiliates | 7,999 | 19,919 | |
Property, plant and equipment, net | 124,554 | 120,068 | |
Other non-current assets | 24,412 | 23,063 | |
Total assets | 376,991 | 389,552 | |
LIABILITIES AND EQUITY | |||
Current liabilities | 42,248 | 53,976 | |
Deferred compensation | 12,939 | 12,939 | |
Other long-term liabilities | 15,581 | 12,336 | |
Stockholders’ equity | 250,704 | 219,448 | |
Total liabilities and equity | 376,991 | 389,552 | |
Parent Company | |||
ASSETS | |||
Cash and cash equivalents | 84,819 | 94,646 | $ 57,917 |
Accounts receivable from affiliates | 2,418 | 9,189 | |
Current intercompany accounts receivable, net | 868 | 0 | |
Other current assets | 4,508 | 1,714 | |
Investment in subsidiaries: | 185,653 | 154,514 | |
Property, plant and equipment, net | 241 | 310 | |
Other non-current assets | 7,851 | 9,550 | |
Total assets | 286,358 | 269,923 | |
LIABILITIES AND EQUITY | |||
Current liabilities | 5,148 | 7,627 | |
Current intercompany accounts payable, net | 0 | 11,858 | |
Other long-term liabilities | 267 | 201 | |
Stockholders’ equity | 250,704 | 219,448 | |
Total liabilities and equity | 286,358 | 269,923 | |
Parent Company | NACoal | |||
ASSETS | |||
Investment in subsidiaries: | 173,020 | 141,174 | |
Parent Company | Other, primarily Bellaire | |||
ASSETS | |||
Investment in subsidiaries: | 12,633 | 13,340 | |
Parent Company | Bellaire | |||
LIABILITIES AND EQUITY | |||
Note payable to Bellaire | $ 17,300 | $ 17,850 |
Schedule I - Condensed Financ_3
Schedule I - Condensed Financial Information of the Parent (Condensed Statements of Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | ||
Other, net | $ (558) | $ (72) |
Other (income) expense | 1,461 | 3,712 |
Administrative and general expenses | 49,192 | 47,491 |
Income tax benefit | 7,378 | 639 |
Income from continuing operations | 34,785 | 28,463 |
Income from discontinued operations | 0 | 1,874 |
Net income | 34,785 | 30,337 |
Foreign currency translation adjustment | 0 | 1,725 |
Deferred gain on available for sale securities, net of tax | 0 | 834 |
Current period cash flow hedging activity, net of $941 tax expense in 2017 | 0 | 1,543 |
Reclassification of hedging activities into earnings, net of $1,255 tax expense in 2017 | 0 | (2,369) |
Current period pension and postretirement plan adjustment, net of $14 tax benefit in 2018 and net of $440 tax expense in 2017, respectively | (301) | 749 |
Reclassification of pension and postretirement adjustments into earnings, net of $85 and $363 tax benefit in 2018 and 2017, respectively | 489 | 582 |
Total other comprehensive income | 188 | 3,064 |
Comprehensive income | 34,973 | 33,401 |
Current period cash flow hedging activity, tax benefit | 0 | 941 |
Reclassification of hedging activities into earnings, tax benefit | 0 | 1,255 |
Current period pension and postretirement plan adjustment, tax benefit | (14) | 440 |
Reclassification of pension and post retirement adjustments into earnings, tax benefit | (85) | (363) |
Parent Company | ||
Condensed Financial Statements, Captions [Line Items] | ||
Intercompany interest expense | 1,223 | 1,256 |
Other, net | (613) | (314) |
Other (income) expense | 610 | 942 |
Administrative and general expenses | 5,962 | 6,466 |
Income (loss) from continuing operations before income tax provision (benefit) | (6,572) | (7,408) |
Income tax benefit | (676) | (366) |
Net loss before equity in earnings of subsidiaries | (5,896) | (7,042) |
Equity in earnings of subsidiaries | 40,681 | 35,505 |
Income from continuing operations | 34,785 | 28,463 |
Income from discontinued operations | 0 | 1,874 |
Net income | 34,785 | 30,337 |
Foreign currency translation adjustment | 0 | 1,725 |
Deferred gain on available for sale securities, net of tax | 0 | 834 |
Current period cash flow hedging activity, net of $941 tax expense in 2017 | 0 | 1,543 |
Reclassification of hedging activities into earnings, net of $1,255 tax expense in 2017 | 0 | (2,369) |
Current period pension and postretirement plan adjustment, net of $14 tax benefit in 2018 and net of $440 tax expense in 2017, respectively | (301) | 749 |
Reclassification of pension and postretirement adjustments into earnings, net of $85 and $363 tax benefit in 2018 and 2017, respectively | 489 | 582 |
Total other comprehensive income | 188 | 3,064 |
Comprehensive income | 34,973 | 33,401 |
Current period cash flow hedging activity, tax benefit | 941 | |
Reclassification of hedging activities into earnings, tax benefit | 1,255 | |
Current period pension and postretirement plan adjustment, tax benefit | (14) | 440 |
Reclassification of pension and post retirement adjustments into earnings, tax benefit | $ (85) | $ (363) |
Schedule I - Condensed Financ_4
Schedule I - Condensed Financial Information of the Parent (Condensed Statements of Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Activities | ||
Income from continuing operations | $ 34,785 | $ 28,463 |
Net cash provided by operating activities | 54,622 | 41,305 |
Investing Activities | ||
Proceeds from the sale of assets | 1,454 | 3,956 |
Expenditures for property, plant and equipment | (20,930) | (15,704) |
Net cash used for investing activities | (18,387) | (15,005) |
Financing Activities | ||
Cash dividends received from Hamilton Beach Brands Holding Co. (See Note 3) | 0 | 38,000 |
Purchase of treasury shares | (1,294) | 0 |
Cash dividends paid | (4,578) | (6,682) |
Net cash used for financing activities | (52,578) | (2,306) |
Cash and Cash Equivalents | ||
Total (decrease) increase for the year | (16,343) | 24,065 |
Balance at the beginning of the year | 101,600 | 69,308 |
Balance at the end of the year | 85,257 | 101,600 |
Parent Company | ||
Operating Activities | ||
Income from continuing operations | 34,785 | 28,463 |
Equity in earnings of subsidiaries | 40,681 | 35,505 |
Parent company only net loss | (5,896) | (7,042) |
Net changes related to operating activities | (5,496) | 7,881 |
Net cash provided by operating activities | (11,392) | 839 |
Investing Activities | ||
Proceeds from the sale of assets | 0 | 834 |
Expenditures for property, plant and equipment | (12) | (12) |
Net cash used for investing activities | (12) | 822 |
Financing Activities | ||
Dividends received from subsidiaries | 8,000 | 4,000 |
Cash dividends received from Hamilton Beach Brands Holding Co. (See Note 3) | 0 | 38,000 |
Notes payable to Bellaire | (551) | (250) |
Purchase of treasury shares | (1,294) | 0 |
Cash dividends paid | (4,578) | (6,682) |
Net cash used for financing activities | 1,577 | 35,068 |
Cash and Cash Equivalents | ||
Total (decrease) increase for the year | (9,827) | 36,729 |
Balance at the beginning of the year | 94,646 | 57,917 |
Balance at the end of the year | $ 84,819 | $ 94,646 |
Schedule I - Condensed Financ_5
Schedule I - Condensed Financial Information of the Parent (Textual) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Condensed Financial Statements, Captions [Line Items] | |||
Cash and cash equivalents | $ 85,257 | $ 101,600 | $ 69,308 |
Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Unrestricted investment | 300 | ||
Cash and cash equivalents | $ 84,819 | $ 94,646 | $ 57,917 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - Deferred tax valuation allowances - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Valuation allowances and reserves [Roll Forward] | ||
Balance at Beginning of Period | $ 13,579 | $ 12,881 |
Charged to Costs and Expenses | 639 | 699 |
Charged to Other Accounts | 1 | (1) |
Deductions | 0 | 0 |
Balance at End of Period | $ 14,219 | $ 13,579 |