Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 26, 2019 | |
Entity Information [Line Items] | ||
Entity Registrant Name | NACCO INDUSTRIES INC | |
Entity Central Index Key | 0000789933 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Shares Outstanding Class A | ||
Entity Information [Line Items] | ||
Shares Outstanding (in shares) | 5,417,906 | |
Shares Outstanding Class B | ||
Entity Information [Line Items] | ||
Shares Outstanding (in shares) | 1,568,810 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 79,058 | $ 85,257 |
Trade accounts receivable, net | 19,341 | 20,817 |
Accounts receivable from affiliates | 8,805 | 7,999 |
Inventories | 32,799 | 31,209 |
Assets held for sale | 5,130 | 4,330 |
Prepaid expenses and other | 18,898 | 14,562 |
Total current assets | 164,031 | 164,174 |
Property, plant and equipment, net | 125,842 | 124,554 |
Intangibles, net | 39,869 | 40,516 |
Investments in unconsolidated subsidiaries | 23,268 | 20,091 |
Deferred costs | 3,215 | 3,244 |
Operating lease right-of-use assets | 12,479 | |
Other non-current assets | 25,083 | 24,412 |
Total assets | 393,787 | 376,991 |
LIABILITIES AND EQUITY | ||
Accounts payable | 8,224 | 7,746 |
Accounts payable to affiliates | 637 | 1,653 |
Revolving credit agreements | 4,000 | 4,000 |
Current maturities of long-term debt | 573 | 654 |
Accrued payroll | 13,515 | 19,853 |
Deferred compensation | 13,465 | 0 |
Asset retirement obligations | 1,826 | 1,826 |
Other current liabilities | 7,330 | 6,516 |
Total current liabilities | 49,570 | 42,248 |
Long-term debt | 7,448 | 6,367 |
Operating lease liabilities | 13,305 | |
Asset retirement obligations | 36,384 | 35,877 |
Pension and other postretirement obligations | 10,067 | 10,429 |
Deferred income taxes | 6,026 | 2,846 |
Deferred compensation | 0 | 12,939 |
Other long-term liabilities | 6,720 | 15,581 |
Total liabilities | 129,520 | 126,287 |
Common stock: | ||
Capital in excess of par value | 6,573 | 7,042 |
Retained earnings | 264,217 | 250,352 |
Accumulated other comprehensive loss | (13,510) | (13,611) |
Total stockholders' equity | 264,267 | 250,704 |
Total liabilities and equity | 393,787 | 376,991 |
Shares Outstanding Class A | ||
Common stock: | ||
Common stock | 5,418 | 5,352 |
Shares Outstanding Class B | ||
Common stock: | ||
Common stock | $ 1,569 | $ 1,569 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) | Mar. 31, 2019$ / sharesshares | Dec. 31, 2018$ / sharesshares |
Shares Outstanding Class A | ||
Common stock, par value (in dollars per share) | $ / shares | $ 1 | $ 1 |
Common stock, shares outstanding (in shares) | shares | 5,417,906 | 5,352,590 |
Shares Outstanding Class B | ||
Common stock, par value (in dollars per share) | $ / shares | $ 1 | $ 1 |
Common stock, convertible conversion ratio | 1 | 1 |
Common stock, shares outstanding (in shares) | shares | 1,568,810 | 1,568,810 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Revenues | $ 40,097 | $ 31,200 |
Cost of sales | 26,712 | 25,776 |
Gross profit | 13,385 | 5,424 |
Earnings of unconsolidated operations | 16,270 | 15,555 |
Operating expenses | ||
Selling, general and administrative expenses | 12,653 | 10,627 |
Amortization of intangible assets | 647 | 684 |
Gain on sale of assets | (18) | (53) |
Operating expenses | 13,282 | 11,258 |
Operating profit | 16,373 | 9,721 |
Other (income) expense | ||
Interest expense | 231 | 646 |
Interest income | (553) | (113) |
Income from other unconsolidated affiliates | (322) | (315) |
Closed mine obligations | 366 | 379 |
(Gain) loss on equity securities | (698) | 98 |
Other, net | 11 | 46 |
Other (income) expense | (965) | 741 |
Income before income tax provision | 17,338 | 8,980 |
Income tax provision | 2,320 | 804 |
Net income | $ 15,018 | $ 8,176 |
Earnings per share: | ||
Basic earnings per share (in dollars per share) | $ 2.16 | $ 1.19 |
Diluted earnings per share (in dollars per share) | $ 2.15 | $ 1.18 |
Basic weighted average shares outstanding (in shares) | 6,949 | 6,894 |
Diluted weighted average shares outstanding (in shares) | 6,998 | 6,939 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 15,018 | $ 8,176 |
Reclassification of pension and postretirement adjustments into earnings, net of $24 and $35 tax benefit in the three months ended March 31, 2019 and March 31, 2018, respectively. | 101 | 140 |
Total other comprehensive income | 101 | 140 |
Comprehensive income | $ 15,119 | $ 8,316 |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Reclassification of pension and postretirement adjustments into earnings, tax expense (benefit) | $ (24) | $ (35) |
Unaudited Condensed Consolida_6
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating activities | ||
Net cash used for operating activities | $ (544) | $ (8,029) |
Investing activities | ||
Expenditures for property, plant and equipment | (4,252) | (2,452) |
Proceeds from the sale of property, plant and equipment | 18 | 55 |
Other | (13) | 309 |
Net cash used for investing activities | (4,247) | (2,088) |
Financing activities | ||
Additions to long-term debt | 1,206 | 1,269 |
Reductions of long-term debt | (161) | (8,205) |
Cash dividends paid | (1,153) | (1,144) |
Purchase of treasury shares | (1,300) | 0 |
Net cash used for financing activities | (1,408) | (8,080) |
Cash and cash equivalents | ||
Total decrease for the period | (6,199) | (18,197) |
Balance at the beginning of the period | 85,257 | 101,600 |
Balance at the end of the period | $ 79,058 | $ 83,403 |
Unaudited Condensed Consolida_7
Unaudited Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Common StockShares Outstanding Class A | Common StockShares Outstanding Class B | Capital in Excess of Par Value | Retained Earnings | Deferred Gain (Loss) on Equity Securities | Pension and Postretirement Plan Adjustment |
Balance, beginning of period at Dec. 31, 2017 | $ 219,448 | $ 5,282 | $ 1,570 | $ 4,447 | $ 216,490 | $ 2,727 | $ (11,068) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
ASU 2018-02 adoption | 160 | 2,339 | (2,179) | ||||
Stock-based compensation | 177 | 87 | 90 | ||||
Net income | 8,176 | 8,176 | |||||
Cash dividends on Class A and Class B common stock | (1,144) | (1,144) | |||||
Reclassification adjustment to net income, net of tax | 140 | 140 | |||||
Balance, end of period at Mar. 31, 2018 | 224,882 | 5,369 | 1,570 | 4,537 | 226,513 | 0 | (13,107) |
Balance, beginning of period at Dec. 31, 2018 | 250,704 | 5,352 | 1,569 | 7,042 | 250,352 | 0 | (13,611) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock-based compensation | 897 | 102 | 795 | ||||
Purchase of treasury shares | (1,300) | (36) | (1,264) | ||||
Net income | 15,018 | 15,018 | |||||
Cash dividends on Class A and Class B common stock | (1,153) | (1,153) | |||||
Reclassification adjustment to net income, net of tax | 101 | 101 | |||||
Balance, end of period at Mar. 31, 2019 | $ 264,267 | $ 5,418 | $ 1,569 | $ 6,573 | $ 264,217 | $ 0 | $ (13,510) |
Unaudited Condensed Consolida_8
Unaudited Condensed Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends on common stock (in dollars per share) | $ 0.165 | $ 0.1650 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Basis of Presentation | Nature of Operations and Basis of Presentation Nature of Operations: The accompanying Unaudited Condensed Consolidated Financial Statements include the accounts of NACCO Industries, Inc. (the “parent company” or “NACCO”) and its wholly owned subsidiaries (collectively, “NACCO Industries, Inc. and Subsidiaries” or the “Company”). Intercompany accounts and transactions are eliminated in consolidation. NACCO is the public holding company for The North American Coal Corporation ("NACoal"). In the first quarter of 2019, the Company changed its segment reporting to three operating segments: Coal Mining, North American Mining (“NAMining”) and Minerals Management. The Company also has unallocated items not directly attributable to a reportable segment. Prior to January 1, 2019, NACoal was the Company’s operating segment. NACCO and Other, which included parent company operations and Bellaire Corporation (“Bellaire”), was the Company’s non-operating segment. Historical financial information for 2018 has been recast to conform to the current presentation. See Note 9 to the Unaudited Condensed Consolidated Financial Statements for further discussion of segment reporting. The Company’s operating segments are further described below: Coal Mining Segment The operating coal mines are: Bisti Fuels 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 final mine reclamation in 2018. Centennial Natural Resources (“Centennial”), located in Alabama, ceased coal production at the end of 2015. At all operating coal mines other than MLMC, the Company operates as a contract miner pursuant to a “management fee” contract. Under these long-term contracts, the customer is responsible for funding all mine operating costs and directly or indirectly provides all of the capital required to build and operate the mine. Debt financing provided by or supported by the customers is without recourse to NACCO and NACoal. As a result, these contracts meet the definition of a variable interest entity (“VIE”). NACCO is not the primary beneficiary of the VIE as it does not exercise financial control; therefore, NACCO does not consolidate the results of these operations within its financial statements. Instead, these contracts are accounted for as equity method investments. The income before income taxes is reported as Earnings of unconsolidated operations on the income statement and the Company’s investment is reported on the line Investments in Unconsolidated Subsidiaries in the Consolidated Balance Sheet. The mines that meet the definition of a VIE are referred to collectively as the “Unconsolidated Subsidiaries.” For tax purposes, the Unconsolidated Subsidiaries are included within the NACCO consolidated U.S. tax return; therefore, the income tax expense line on the statement of operations includes taxes related to these entities. All of the Unconsolidated Subsidiaries are accounted for under the equity method. See Note 7 for further discussion. MLMC and Centennial are consolidated operations. The coal reserves at Coteau, Falkirk, Coyote, MLMC and Centennial are owned or controlled by the Company. The coal reserves at all other mines are owned or controlled by the respective mine’s customer. The Unconsolidated Subsidiaries are paid a management fee per ton of coal or heating unit (MMBtu) delivered. Each contract specifies the indices and mechanics by which fees change over time, generally in line with broad measures of U.S. inflation. This contract structure eliminates exposure to spot coal market price fluctuations. NAMining Segment NAMining operates primarily at limestone quarries in Florida, but is focused on expanding outside of Florida and into mining materials other than limestone. NAMining operates under both management fee contracts and contracts that provide for a fixed per ton sales price. Income before income taxes for NAMining locations are consolidated within NACCO’s consolidated financial statements or are unconsolidated and included on the line Earnings of unconsolidated operations, depending on how each contract is structured. All of the Unconsolidated Subsidiaries are accounted for under the equity method. See Note 7 for further discussion. Minerals Management Segment The Minerals Management segment promotes the development of the Company’s oil, gas and coal reserves, generating income primarily from royalty-based lease payments from third parties. The majority of the Company’s existing reserves were acquired as part of its historical coal mining operations. The Minerals Management segment derives income primarily by entering into contracts with third-party operators, granting them the rights to explore, produce and sell natural resources in exchange for royalty payments based on the lessees' sales of natural gas and, to a lesser extent, oil and coal. Specialized employees in the Minerals Management segment also provide surface and mineral acquisition and lease maintenance services related to Company operations. Basis of Presentation: These financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position of the Company at March 31, 2019 , the results of its operations, comprehensive income and cash flows for the three months ended March 31, 2019 and 2018 and the changes in equity for the three months ended March 31, 2019 have been included. These Unaudited Condensed Consolidated Financial Statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2018 . The balance sheet at December 31, 2018 has been derived from the audited financial statements at that date but does not include all of the information or notes required by U.S. GAAP for complete financial statements. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Accounting Standards Adopted in 2019: NACCO adopted Accounting Standard Update ("ASU") 2016-02, Leases (Topic 842), which is codified in Accounting Standards Codification 842, Leases (“ASC 842”), on January 1, 2019, using the modified retrospective transition method (the "guidance"). The most significant effect to the Unaudited Condensed Consolidated Balance Sheet relates to the recognition of new right-of-use assets (“ROU assets”) and lease liabilities for operating leases of real estate, mining and other equipment that expire at various dates through 2031. The majority of the Company's leases are operating leases. See the table below for further information on the Unaudited Condensed Consolidated Balance Sheet. Many leases include renewal and/or fair value or bargain purchase options, which are not recognized on the Unaudited Condensed Consolidated Balance Sheet. There was no cumulative effect adjustment to the opening balance of retained earnings. The adoption of this guidance did not have a material effect on the Company’s results of operations, cash flows, liquidity or debt-covenant compliance. NACCO did not apply the standard to the comparative periods presented in the year of adoption. The Company elected many of the available practical expedients permitted under the guidance, which among other items, allow the Company to carry forward its historical lease classification and not reassess leases for the definition of a lease under the new standard. The Company also elected the practical expedient to carry forward the historical accounting treatment for existing land easement agreements. Upon the adoption of ASC 842, NACCO did not record a ROU asset and related lease liability for leases with an initial term of 12 months or less. Leased assets and liabilities include the following: Description Location MARCH 31 Assets Operating Operating lease right-of-use assets $ 12,479 Finance Property, plant and equipment, net (a) 308 Liabilities Current Operating Other current liabilities $ 1,492 Finance Current maturities of long-term debt 344 Noncurrent Operating Operating lease liabilities 13,305 (a) Finance leased assets are recorded net of accumulated amortization of $2.8 million as of March 31, 2019. The components of lease expense were as follows for the three months ended March 31 , 2019: Description Location Lease expense Operating lease cost Selling, general and administrative expenses $ 625 Finance lease cost: Amortization of leased assets Cost of sales 96 Interest on lease liabilities Interest expense 3 Short-term lease expense Selling, general and administrative expenses 20 Net lease expense $ 744 Future minimum finance and operating lease payments were as follows at March 31, 2019: Finance Leases Operating Leases Total remainder of 2019 $ 328 $ 1,803 $ 2,131 2020 21 2,229 2,250 2021 — 2,125 2,125 2022 — 2,150 2,150 2023 — 1,659 1,659 Subsequent to 2023 — 10,951 10,951 Total minimum lease payments 349 20,917 $ 21,266 Amounts representing interest 5 6,120 Present value of net minimum lease payments $ 344 $ 14,797 As most of the Company's leases do not provide an implicit rate, the Company determines the incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. The assumptions used in accounting for ASC 842 were as follows for the three months ended March 31 , 2019: Lease term and discount rate Weighted average remaining lease term (years) Operating 10.0 Finance 0.8 Weighted average discount rate Operating 6.95 % Finance 3.98 % The following table details cash paid for amounts included in the measurement of lease liabilities for the three months ended March 31 : Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 573 Operating cash flows from finance leases 3 Financing cash flows from finance leases 122 |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition 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, the Company’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 NAMining 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. The Company enters into royalty contracts which grant the right to explore, develop, produce and sell minerals controlled by the Company. These arrangements result in the transfer of mineral rights for a period of time; however, no rights to the actual land are granted other than access for purposes of exploration, development, production and sales. The mineral rights revert back to the Company 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 fees, 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. The Company’s business consists of the Coal Mining, NAMining and Minerals Management segments as well as Unallocated Items. See Note 9 to the Unaudited Condensed Consolidated Financial Statements for further discussion of segment reporting. The following table disaggregates revenue by major sources: THREE MONTHS ENDED MARCH 31 Major Goods/Service Lines 2019 2018 Coal Mining $ 16,750 $ 17,597 NAMining 10,775 10,213 Minerals Management 12,686 3,476 Unallocated Items 543 — Eliminations (657 ) (86 ) Total revenues $ 40,097 $ 31,200 Timing of Revenue Recognition Goods transferred at a point in time $ 16,086 $ 17,021 Services transferred over time 24,011 14,179 Total revenues $ 40,097 $ 31,200 Contract Balances The opening and closing balances of the Company’s current and long-term contract liabilities and receivables are as follows: Contract balances Trade accounts receivable, net Contract liability (current) Contract liability (long-term) Balance, January 1, 2019 $ 20,817 $ 754 $ 2,008 Balance, March 31, 2019 19,341 718 1,832 Increase (decrease) $ (1,476 ) $ (36 ) $ (176 ) As described above, the Company 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 three months ended March 31, 2019 and March 31, 2018 that was included in the opening contract liability was $0.2 million and $0.3 million , respectively. This revenue consists of up-front lease bonus payments received under royalty contracts that are recognized over the primary term of the royalty contracts, which are generally five years. The Company expects to recognize an additional $0.5 million in the remainder of 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 March 31, 2019 . 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. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are summarized as follows: MARCH 31 DECEMBER 31 Coal $ 10,677 $ 11,030 Mining supplies 22,122 20,179 Total inventories $ 32,799 $ 31,209 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Stock Repurchase Program: 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 the three months ended March 31, 2019 , the Company repurchased 36,294 shares of Class A Common Stock under the 2018 Stock Repurchase Program for an aggregate purchase price of $1.3 million . During the three months ended March 31, 2018 , the Company did not repurchase any shares of Class A Common Stock under the 2018 Stock Repurchase Program. 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. |
Fair Value Disclosure
Fair Value Disclosure | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosure | Fair Value Disclosure Recurring Fair Value Measurements : The following table presents the Company's assets and liabilities accounted for at fair value on a recurring basis: Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Active Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs Description Date (Level 1) (Level 2) (Level 3) March 31, 2019 Assets: Equity securities $ 9,454 $ 9,454 $ — $ — $ 9,454 $ 9,454 $ — $ — December 31, 2018 Assets: Equity securities $ 8,716 $ 8,716 $ — $ — $ 8,716 $ 8,716 $ — $ — 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. Prior to 2018, Bellaire established a $5.0 million mine water treatment trust (the "Mine Water Treatment Trust") to provide a financial assurance mechanism to assure the long-term treatment of post-mining discharges. Bellaire's Mine Water Treatment Trust invests in equity securities that are reported at fair value based upon quoted market prices in active markets for identical assets; therefore, they are classified as Level 1 within the fair value hierarchy. The Mine Water Treatment Trust realized a gain of $0.7 million and a loss of $0.1 million in the three months ended March 31, 2019 and March 31, 2018 , respectively, reported on the line (Gain)/loss on equity securities in the Other (income) expense section of the Unaudited Condensed Consolidated Statements of Operations. There were no transfers into or out of Levels 1, 2 or 3 during the three months ended March 31, 2019 and 2018 . |
Unconsolidated Subsidiaries
Unconsolidated Subsidiaries | 3 Months Ended |
Mar. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Unconsolidated Subsidiaries | Unconsolidated Subsidiaries Each of NACoal's wholly owned Unconsolidated Subsidiaries meet the definition of a VIE. The Unconsolidated Subsidiaries 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 Subsidiaries, 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 positions or results of operations. See Note 1 for a discussion of these entities. The investment in the unconsolidated subsidiaries and related tax positions totaled $23.3 million and $20.1 million at March 31, 2019 and December 31, 2018 , respectively. The Company's maximum risk of loss relating to these entities is limited to its invested capital, which was $6.1 million and $4.4 million at March 31, 2019 and December 31, 2018 , 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: THREE MONTHS ENDED MARCH 31 2019 2018 Revenues $ 187,239 $ 183,046 Gross profit $ 19,136 $ 21,144 Income before income taxes $ 16,737 $ 16,122 |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
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. |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments In the first quarter of 2019, the Company changed its reportable segments to reflect changes in the business, including growth at NAMining and Minerals Management. The Company modified its internal reporting structure to reflect a change in how its Chief Operating Decision Maker (“CODM”) assesses Company performance and makes decisions about resource allocations. As of January 1, 2019, the Company’s operating segments are: (i) Coal Mining, (ii) NAMining and (iii) Minerals Management. While the Company continues to pursue opportunities to add new coal mining operations to the Coal Mining segment, the NAMining segment will serve as the platform for pursuing non-coal mining projects and the Minerals Management segment will work to capitalize on the Company’s oil, gas and coal reserves. In response to these changes, the Company determined the historical structure of reporting one operating segment was no longer representative of the way the business is managed. As a result, the Company effected a change in the reporting of its segment information. The Company determines its reportable segments by first identifying its operating segments, and then by assessing whether any components of these segments constitute a business for which discrete financial information is available and where segment management regularly reviews the operating results of that component. The Company’s CODM utilizes operating profit to evaluate segment performance and allocate resources. Operating profit for each segment includes an allocation of shared costs based on a reasonable measure of utilization. The Company also has unallocated items not directly attributable to a reportable segment which are not included as part of the measurement of segment operating profit, primarily administrative costs related to public company reporting requirements, the financial results of the Company’s mitigation banking business, Mitigation Resources of North America (“MRNA”), and Bellaire. MRNA generates and sells stream and wetland mitigation credits (known as mitigation banking) and provides services to those engaged in permittee-responsible stream and wetland mitigation. Bellaire manages the Company’s long-term liabilities related to former Eastern U.S. underground mining activities. Transactions between segments are accounted for as third-party arrangements for purposes of presenting segment results of operations and are eliminated in consolidation. All financial statement line items below operating profit (other income including interest expense and interest income, the provision for income taxes and net income) are presented and discussed within this Form 10-Q on a consolidated basis. Included within other income is the financial results of NoDak Energy Services, LLC ("NoDak"). NoDak operates and maintains a coal drying system at a customer’s power plant. See Note 1 for additional discussion of the Company's reportable segments. The following tables present revenue, operating profit, depreciation expense and capital expenditures: THREE MONTHS ENDED MARCH 31 2019 2018 Revenues Coal Mining $ 16,750 $ 17,597 NAMining 10,775 10,213 Minerals Management 12,686 3,476 Unallocated Items 543 — Eliminations (657 ) (86 ) Total $ 40,097 $ 31,200 Operating profit (loss) Coal Mining $ 7,605 $ 8,697 NAMining 32 634 Minerals Management 11,669 2,944 Unallocated Items (2,699 ) (2,554 ) Eliminations (234 ) — Total $ 16,373 $ 9,721 Expenditures for property, plant and equipment Coal Mining $ 3,870 $ 576 NAMining — 674 Minerals Management 241 1,032 Unallocated Items 141 170 Total $ 4,252 $ 2,452 Depreciation, depletion and amortization Coal Mining $ 2,874 $ 2,841 NAMining 545 395 Minerals Management 366 134 Unallocated Items 28 27 Total $ 3,813 $ 3,397 |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations: The accompanying Unaudited Condensed Consolidated Financial Statements include the accounts of NACCO Industries, Inc. (the “parent company” or “NACCO”) and its wholly owned subsidiaries (collectively, “NACCO Industries, Inc. and Subsidiaries” or the “Company”). Intercompany accounts and transactions are eliminated in consolidation. NACCO is the public holding company for The North American Coal Corporation ("NACoal"). In the first quarter of 2019, the Company changed its segment reporting to three operating segments: Coal Mining, North American Mining (“NAMining”) and Minerals Management. The Company also has unallocated items not directly attributable to a reportable segment. Prior to January 1, 2019, NACoal was the Company’s operating segment. NACCO and Other, which included parent company operations and Bellaire Corporation (“Bellaire”), was the Company’s non-operating segment. Historical financial information for 2018 has been recast to conform to the current presentation. See Note 9 to the Unaudited Condensed Consolidated Financial Statements for further discussion of segment reporting. The Company’s operating segments are further described below: Coal Mining Segment The operating coal mines are: Bisti Fuels 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 final mine reclamation in 2018. Centennial Natural Resources (“Centennial”), located in Alabama, ceased coal production at the end of 2015. At all operating coal mines other than MLMC, the Company operates as a contract miner pursuant to a “management fee” contract. Under these long-term contracts, the customer is responsible for funding all mine operating costs and directly or indirectly provides all of the capital required to build and operate the mine. Debt financing provided by or supported by the customers is without recourse to NACCO and NACoal. As a result, these contracts meet the definition of a variable interest entity (“VIE”). NACCO is not the primary beneficiary of the VIE as it does not exercise financial control; therefore, NACCO does not consolidate the results of these operations within its financial statements. Instead, these contracts are accounted for as equity method investments. The income before income taxes is reported as Earnings of unconsolidated operations on the income statement and the Company’s investment is reported on the line Investments in Unconsolidated Subsidiaries in the Consolidated Balance Sheet. The mines that meet the definition of a VIE are referred to collectively as the “Unconsolidated Subsidiaries.” For tax purposes, the Unconsolidated Subsidiaries are included within the NACCO consolidated U.S. tax return; therefore, the income tax expense line on the statement of operations includes taxes related to these entities. All of the Unconsolidated Subsidiaries are accounted for under the equity method. See Note 7 for further discussion. MLMC and Centennial are consolidated operations. The coal reserves at Coteau, Falkirk, Coyote, MLMC and Centennial are owned or controlled by the Company. The coal reserves at all other mines are owned or controlled by the respective mine’s customer. The Unconsolidated Subsidiaries are paid a management fee per ton of coal or heating unit (MMBtu) delivered. Each contract specifies the indices and mechanics by which fees change over time, generally in line with broad measures of U.S. inflation. This contract structure eliminates exposure to spot coal market price fluctuations. NAMining Segment NAMining operates primarily at limestone quarries in Florida, but is focused on expanding outside of Florida and into mining materials other than limestone. NAMining operates under both management fee contracts and contracts that provide for a fixed per ton sales price. Income before income taxes for NAMining locations are consolidated within NACCO’s consolidated financial statements or are unconsolidated and included on the line Earnings of unconsolidated operations, depending on how each contract is structured. All of the Unconsolidated Subsidiaries are accounted for under the equity method. See Note 7 for further discussion. Minerals Management Segment The Minerals Management segment promotes the development of the Company’s oil, gas and coal reserves, generating income primarily from royalty-based lease payments from third parties. The majority of the Company’s existing reserves were acquired as part of its historical coal mining operations. The Minerals Management segment derives income primarily by entering into contracts with third-party operators, granting them the rights to explore, produce and sell natural resources in exchange for royalty payments based on the lessees' sales of natural gas and, to a lesser extent, oil and coal. Specialized employees in the Minerals Management segment also provide surface and mineral acquisition and lease maintenance services related to Company operations. |
Basis of Presentation | Basis of Presentation: These financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position of the Company at March 31, 2019 , the results of its operations, comprehensive income and cash flows for the three months ended March 31, 2019 and 2018 and the changes in equity for the three months ended March 31, 2019 have been included. These Unaudited Condensed Consolidated Financial Statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2018 . The balance sheet at December 31, 2018 has been derived from the audited financial statements at that date but does not include all of the information or notes required by U.S. GAAP for complete financial statements. |
Accounting Standards Adopted | Accounting Standards Adopted in 2019: NACCO adopted Accounting Standard Update ("ASU") 2016-02, Leases (Topic 842), which is codified in Accounting Standards Codification 842, Leases (“ASC 842”), on January 1, 2019, using the modified retrospective transition method (the "guidance"). The most significant effect to the Unaudited Condensed Consolidated Balance Sheet relates to the recognition of new right-of-use assets (“ROU assets”) and lease liabilities for operating leases of real estate, mining and other equipment that expire at various dates through 2031. The majority of the Company's leases are operating leases. See the table below for further information on the Unaudited Condensed Consolidated Balance Sheet. Many leases include renewal and/or fair value or bargain purchase options, which are not recognized on the Unaudited Condensed Consolidated Balance Sheet. There was no cumulative effect adjustment to the opening balance of retained earnings. The adoption of this guidance did not have a material effect on the Company’s results of operations, cash flows, liquidity or debt-covenant compliance. NACCO did not apply the standard to the comparative periods presented in the year of adoption. The Company elected many of the available practical expedients permitted under the guidance, which among other items, allow the Company to carry forward its historical lease classification and not reassess leases for the definition of a lease under the new standard. The Company also elected the practical expedient to carry forward the historical accounting treatment for existing land easement agreements. Upon the adoption of ASC 842, NACCO did not record a ROU asset and related lease liability for leases with an initial term of 12 months or less. |
Recently Issued Accounting St_2
Recently Issued Accounting Standards (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Leased Assets and Liabilities | Leased assets and liabilities include the following: Description Location MARCH 31 Assets Operating Operating lease right-of-use assets $ 12,479 Finance Property, plant and equipment, net (a) 308 Liabilities Current Operating Other current liabilities $ 1,492 Finance Current maturities of long-term debt 344 Noncurrent Operating Operating lease liabilities 13,305 (a) Finance leased assets are recorded net of accumulated amortization of $2.8 million as of March 31, 2019. |
Lease Expense | The components of lease expense were as follows for the three months ended March 31 , 2019: Description Location Lease expense Operating lease cost Selling, general and administrative expenses $ 625 Finance lease cost: Amortization of leased assets Cost of sales 96 Interest on lease liabilities Interest expense 3 Short-term lease expense Selling, general and administrative expenses 20 Net lease expense $ 744 |
Operating Leases, Future Minimum Payments | Future minimum finance and operating lease payments were as follows at March 31, 2019: Finance Leases Operating Leases Total remainder of 2019 $ 328 $ 1,803 $ 2,131 2020 21 2,229 2,250 2021 — 2,125 2,125 2022 — 2,150 2,150 2023 — 1,659 1,659 Subsequent to 2023 — 10,951 10,951 Total minimum lease payments 349 20,917 $ 21,266 Amounts representing interest 5 6,120 Present value of net minimum lease payments $ 344 $ 14,797 |
Finance Leases, Future Minimum Payments | Future minimum finance and operating lease payments were as follows at March 31, 2019: Finance Leases Operating Leases Total remainder of 2019 $ 328 $ 1,803 $ 2,131 2020 21 2,229 2,250 2021 — 2,125 2,125 2022 — 2,150 2,150 2023 — 1,659 1,659 Subsequent to 2023 — 10,951 10,951 Total minimum lease payments 349 20,917 $ 21,266 Amounts representing interest 5 6,120 Present value of net minimum lease payments $ 344 $ 14,797 |
Assumptions Used for Leases | The assumptions used in accounting for ASC 842 were as follows for the three months ended March 31 , 2019: Lease term and discount rate Weighted average remaining lease term (years) Operating 10.0 Finance 0.8 Weighted average discount rate Operating 6.95 % Finance 3.98 % |
Supplemental Cash Flow Information | The following table details cash paid for amounts included in the measurement of lease liabilities for the three months ended March 31 : Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 573 Operating cash flows from finance leases 3 Financing cash flows from finance leases 122 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table disaggregates revenue by major sources: THREE MONTHS ENDED MARCH 31 Major Goods/Service Lines 2019 2018 Coal Mining $ 16,750 $ 17,597 NAMining 10,775 10,213 Minerals Management 12,686 3,476 Unallocated Items 543 — Eliminations (657 ) (86 ) Total revenues $ 40,097 $ 31,200 Timing of Revenue Recognition Goods transferred at a point in time $ 16,086 $ 17,021 Services transferred over time 24,011 14,179 Total revenues $ 40,097 $ 31,200 |
Contract Balances | The opening and closing balances of the Company’s current and long-term contract liabilities and receivables are as follows: Contract balances Trade accounts receivable, net Contract liability (current) Contract liability (long-term) Balance, January 1, 2019 $ 20,817 $ 754 $ 2,008 Balance, March 31, 2019 19,341 718 1,832 Increase (decrease) $ (1,476 ) $ (36 ) $ (176 ) |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories are summarized as follows: MARCH 31 DECEMBER 31 Coal $ 10,677 $ 11,030 Mining supplies 22,122 20,179 Total inventories $ 32,799 $ 31,209 |
Fair Value Disclosure (Tables)
Fair Value Disclosure (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents the Company's assets and liabilities accounted for at fair value on a recurring basis: Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Active Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs Description Date (Level 1) (Level 2) (Level 3) March 31, 2019 Assets: Equity securities $ 9,454 $ 9,454 $ — $ — $ 9,454 $ 9,454 $ — $ — December 31, 2018 Assets: Equity securities $ 8,716 $ 8,716 $ — $ — $ 8,716 $ 8,716 $ — $ — |
Unconsolidated Subsidiaries (Ta
Unconsolidated Subsidiaries (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Financial Information for Unconsolidated Subsidiaries | Summarized financial information for the Unconsolidated Subsidiaries is as follows: THREE MONTHS ENDED MARCH 31 2019 2018 Revenues $ 187,239 $ 183,046 Gross profit $ 19,136 $ 21,144 Income before income taxes $ 16,737 $ 16,122 |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting Information | THREE MONTHS ENDED MARCH 31 2019 2018 Revenues Coal Mining $ 16,750 $ 17,597 NAMining 10,775 10,213 Minerals Management 12,686 3,476 Unallocated Items 543 — Eliminations (657 ) (86 ) Total $ 40,097 $ 31,200 Operating profit (loss) Coal Mining $ 7,605 $ 8,697 NAMining 32 634 Minerals Management 11,669 2,944 Unallocated Items (2,699 ) (2,554 ) Eliminations (234 ) — Total $ 16,373 $ 9,721 Expenditures for property, plant and equipment Coal Mining $ 3,870 $ 576 NAMining — 674 Minerals Management 241 1,032 Unallocated Items 141 170 Total $ 4,252 $ 2,452 Depreciation, depletion and amortization Coal Mining $ 2,874 $ 2,841 NAMining 545 395 Minerals Management 366 134 Unallocated Items 28 27 Total $ 3,813 $ 3,397 |
Recently Issued Accounting St_3
Recently Issued Accounting Standards (Schedule of Leased Assets and Liabilities) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Assets | |
Operating lease, assets | $ 12,479 |
Finance lease, assets | 308 |
Liabilities, Current | |
Operating lease liability, current | 1,492 |
Finance lease liability, current | 344 |
Liabilities, Noncurrent | |
Operating lease liabilities | 13,305 |
Finance lease, accumulated amortization | $ 2,800 |
Recently Issued Accounting St_4
Recently Issued Accounting Standards Recently Issued Accounting Standards (Components of Lease Expense) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Accounting Policies [Abstract] | |
Operating lease cost | $ 625 |
Finance lease cost, amortization of leased assets | 96 |
Finance lease cost, interest on lease liabilities | 3 |
Short-term lease expense | 20 |
Net lease expense | $ 744 |
Recently Issued Accounting St_5
Recently Issued Accounting Standards (Future Minimum Lease Payments) (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Finance Lease Liabilities, Payments, Due [Abstract] | |
remainder of 2019 | $ 328 |
2020 | 21 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
Subsequent to 2023 | 0 |
Total minimum lease payments | 349 |
Amounts representing interest | 5 |
Present value of net minimum lease payments | 344 |
Operating Lease Liabilities, Payments Due [Abstract] | |
remainder of 2019 | 1,803 |
2020 | 2,229 |
2021 | 2,125 |
2022 | 2,150 |
2023 | 1,659 |
Subsequent to 2023 | 10,951 |
Total minimum lease payments | 20,917 |
Amounts representing interest | 6,120 |
Present value of net minimum lease payments | 14,797 |
Lease Payments Due [Abstract] | |
remainder of 2019 | 2,131 |
2020 | 2,250 |
2021 | 2,125 |
2022 | 2,150 |
2023 | 1,659 |
Subsequent to 2023 | 10,951 |
Total minimum lease payments | $ 21,266 |
Recently Issued Accounting St_6
Recently Issued Accounting Standards (Assumptions Used in Accounting for Leases) (Details) | Mar. 31, 2019 |
Accounting Policies [Abstract] | |
Operating lease, weighted average remaining lease term (years) | 10 years 11 days |
Finance lease, weighted average remaining lease term (years) | 9 months 18 days |
Operating lease, weighted average discount rate | 7.00% |
Finance lease, weighted average discount rate | 4.00% |
Recently Issued Accounting St_7
Recently Issued Accounting Standards (Supplemental Cash Flow Information on Leases) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Accounting Policies [Abstract] | |
Operating cash flows from operating leases | $ 573 |
Operating cash flows from finance leases | 3 |
Financing cash flows from finance leases | $ 122 |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 40,097 | $ 31,200 |
Goods transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 16,086 | 17,021 |
Services transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 24,011 | 14,179 |
Operating segments | Coal Mining | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 16,750 | 17,597 |
Operating segments | NAMining | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 10,775 | 10,213 |
Operating segments | Minerals Management | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 12,686 | 3,476 |
Unallocated Items | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 543 | 0 |
Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ (657) | $ (86) |
Revenue Recognition (Contract B
Revenue Recognition (Contract Balances) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Trade accounts receivable, net | |
Balance, January 1, 2019 | $ 20,817 |
Balance, March 31, 2019 | 19,341 |
Increase (decrease) in accounts receivable | (1,476) |
Contract liability (current) | |
Balance, January 1, 2019 | 754 |
Balance, March 31, 2019 | 718 |
Increase (decrease) in contract liability (current) | (36) |
Contract liability (long-term) | |
Balance, January 1, 2019 | 2,008 |
Balance, March 31, 2019 | 1,832 |
Increase (decrease) in contract liability (long-term) | $ (176) |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Description of timing | The fixed portion of the transaction price will be recognized over the primary term of the contract, which is generally five years. 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. 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. | |
Revenue recognized in contract liability | $ 0.2 | $ 0.3 |
Revenue Recognition (Remaining
Revenue Recognition (Remaining Performance Obligations) (Details) $ in Millions | Mar. 31, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue expected to be recognized | $ 0.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue expected to be recognized | $ 0.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue expected to be recognized | $ 0.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue expected to be recognized | $ 0.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue expected to be recognized | $ 0.1 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction | 1 year |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Coal | $ 10,677 | $ 11,030 |
Mining supplies | 22,122 | 20,179 |
Total inventories | $ 32,799 | $ 31,209 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Feb. 14, 2018 | |
Class of Stock [Line Items] | ||
Common stock repurchased | $ 1,300,000 | |
2018 Stock Repurchase Program | ||
Class of Stock [Line Items] | ||
Stock repurchase program, authorized amount | $ 25,000,000 | |
Shares Outstanding Class A | 2018 Stock Repurchase Program | ||
Class of Stock [Line Items] | ||
Common stock repurchased (in shares) | 36,294 | |
Common stock repurchased | $ 1,300,000 |
Fair Value Disclosure (On a Rec
Fair Value Disclosure (On a Recurring Basis) (Details) - Fair value measurements, recurring - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Level 1 | ||
Assets: | ||
Equity securities | $ 9,454 | $ 8,716 |
Assets at fair value | 9,454 | 8,716 |
Level 2 | ||
Assets: | ||
Equity securities | 0 | 0 |
Assets at fair value | 0 | 0 |
Level 3 | ||
Assets: | ||
Equity securities | 0 | 0 |
Assets at fair value | 0 | 0 |
Total | ||
Assets: | ||
Equity securities | 9,454 | 8,716 |
Assets at fair value | $ 9,454 | $ 8,716 |
Fair Value Disclosure (Narrativ
Fair Value Disclosure (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Realized gain (loss) on the Mine Water Treatment Trust | $ 698 | $ (98) | |
Bellaire Corporation | Level 1 | Fair value measurements, recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Mine Water Treatment Trust | $ 5,000 | ||
Realized gain (loss) on the Mine Water Treatment Trust | $ 700 | $ (100) |
Unconsolidated Subsidiaries (Na
Unconsolidated Subsidiaries (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated subsidiaries and related tax positions | $ 23,268 | $ 20,091 |
Variable interest entity, reporting entity involvement, maximum risk of loss | 6,100 | 4,400 |
Other noncurrent assets | ||
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated subsidiaries and related tax positions | $ 23,300 | $ 20,100 |
Unconsolidated Subsidiaries (Sc
Unconsolidated Subsidiaries (Schedule) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Variable Interest Entity [Line Items] | ||
Revenues | $ 40,097 | $ 31,200 |
Gross profit | 13,385 | 5,424 |
Variable interest entity, not primary beneficiary | ||
Variable Interest Entity [Line Items] | ||
Revenues | 187,239 | 183,046 |
Gross profit | 19,136 | 21,144 |
Income before income taxes | $ 16,737 | $ 16,122 |
Business Segments (Details)
Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 40,097 | $ 31,200 |
Operating profit (loss) | 16,373 | 9,721 |
Expenditures for property, plant and equipment | 4,252 | 2,452 |
Depreciation, depletion and amortization | 3,813 | 3,397 |
Operating segments | Coal Mining | ||
Segment Reporting Information [Line Items] | ||
Revenues | 16,750 | 17,597 |
Operating profit (loss) | 7,605 | 8,697 |
Expenditures for property, plant and equipment | 3,870 | 576 |
Depreciation, depletion and amortization | 2,874 | 2,841 |
Operating segments | NAMining | ||
Segment Reporting Information [Line Items] | ||
Revenues | 10,775 | 10,213 |
Operating profit (loss) | 32 | 634 |
Expenditures for property, plant and equipment | 0 | 674 |
Depreciation, depletion and amortization | 545 | 395 |
Operating segments | Minerals Management | ||
Segment Reporting Information [Line Items] | ||
Revenues | 12,686 | 3,476 |
Operating profit (loss) | 11,669 | 2,944 |
Expenditures for property, plant and equipment | 241 | 1,032 |
Depreciation, depletion and amortization | 366 | 134 |
Unallocated Items | ||
Segment Reporting Information [Line Items] | ||
Revenues | 543 | 0 |
Operating profit (loss) | (2,699) | (2,554) |
Expenditures for property, plant and equipment | 141 | 170 |
Depreciation, depletion and amortization | 28 | 27 |
Eliminations | ||
Segment Reporting Information [Line Items] | ||
Revenues | (657) | (86) |
Operating profit (loss) | $ (234) | $ 0 |
Uncategorized Items - nacco-201
Label | Element | Value |
Accounting Standards Update 2016-01 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 0 |
Accounting Standards Update 2016-01 [Member] | Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (2,727,000) |
Accounting Standards Update 2016-01 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 2,727,000 |
Accounting Standards Update 2014-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (2,075,000) |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (2,075,000) |