Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 19, 2021 | Jun. 30, 2020 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-9172 | ||
Entity Registrant Name | NACCO INDUSTRIES, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 34-1505819 | ||
Entity Address, Address Line One | 5875 Landerbrook Drive, | ||
Entity Address, Address Line Two | Suite 220 | ||
Entity Address, City or Town | Cleveland, | ||
Entity Address, State or Province | OH | ||
Entity Address, Postal Zip Code | 44124-4069 | ||
City Area Code | 440 | ||
Local Phone Number | 229-5151 | ||
Title of 12(b) Security | Class A Common Stock, $1 par value per share | ||
Trading Symbol | NC | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 96,645,091 | ||
Documents Incorporated by Reference | Portions of the Company's Proxy Statement for its 2021 annual meeting of stockholders are incorporated herein by reference in Part III of this Form 10-K. | ||
Entity Central Index Key | 0000789933 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Shares Outstanding Class A | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 5,490,948 | ||
Shares Outstanding Class B | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 1,566,877 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | ||
Revenues | $ 128,432 | $ 140,990 |
Cost of sales | 111,463 | 109,862 |
Gross profit | 16,969 | 31,128 |
Earnings of unconsolidated operations | 60,203 | 63,883 |
Operating expenses | ||
Selling, general and administrative expenses | 53,062 | 53,783 |
Amortization of intangible assets | 2,572 | 2,614 |
Gain on sale of assets | (269) | (206) |
Asset impairment charges | 8,359 | 0 |
Operating expenses | 63,724 | 56,191 |
Operating profit | 13,448 | 38,820 |
Other (income) expense | ||
Interest expense | 1,354 | 872 |
Interest income | (1,200) | (3,616) |
Income from other unconsolidated affiliates | (239) | (1,300) |
Closed mine obligations | 1,641 | 1,537 |
Gain on equity securities | (1,226) | (1,545) |
Other, net | (1,140) | (527) |
Other (income) expense | (810) | (4,579) |
Income before income tax (benefit) provision | 14,258 | 43,399 |
Income tax (benefit) provision | (535) | 3,767 |
Net income | $ 14,793 | $ 39,632 |
Earnings per share: | ||
Basic earnings per share (USD per share) | $ 2.11 | $ 5.68 |
Diluted earnings per share (USD per share) | $ 2.10 | $ 5.66 |
Basic weighted average shares outstanding (in shares) | 7,026 | 6,974 |
Diluted weighted average shares outstanding (in shares) | 7,057 | 7,007 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 14,793 | $ 39,632 |
Other comprehensive income | ||
Current period pension and postretirement plan adjustment, net of $213 tax benefit and $226 tax expense in 2020 and 2019, respectively | (697) | 758 |
Pension settlement, net of $202 tax benefit in 2019 | 0 | 671 |
Reclassification of pension and postretirement adjustments into earnings, net of $129 and $90 tax benefit in 2020 and 2019, respectively | 435 | 845 |
Total other comprehensive income | (262) | 2,274 |
Comprehensive income | $ 14,531 | $ 41,906 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Current period pension and postretirement plan adjustment, tax (benefit) expense | $ (213) | $ 226 |
Pension settlement, tax | 202 | |
Reclassification of pension and post retirement adjustments into earnings, tax benefit | $ 129 | $ 90 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 88,450 | $ 122,892 |
Trade accounts receivable | 18,894 | 15,444 |
Accounts receivable from affiliates | 4,764 | 6,411 |
Inventories | 47,551 | 40,465 |
Refundable federal income taxes | 17,615 | 8,928 |
Prepaid expenses and other | 10,872 | 6,528 |
Total current assets | 188,146 | 200,668 |
Property, plant and equipment, net | 172,417 | 138,061 |
Intangibles, net | 35,330 | 37,902 |
Investment in unconsolidated subsidiaries | 28,978 | 24,611 |
Operating lease right-of-use assets | 10,324 | 11,398 |
Other non-current assets | 40,984 | 32,133 |
Total assets | 476,179 | 444,773 |
Current liabilities | ||
Accounts payable | 5,522 | 9,374 |
Accounts payable to affiliates | 125 | 577 |
Revolving credit agreements | 20,000 | 7,000 |
Current portion of borrowings outstanding | 2,112 | 795 |
Asset retirement obligations | 1,844 | 2,285 |
Accrued payroll | 14,430 | 19,583 |
Deferred compensation | 0 | 13,465 |
Other current liabilities | 8,224 | 8,887 |
Total current liabilities | 52,257 | 61,966 |
Long-term debt | 24,353 | 17,148 |
Operating lease liabilities | 11,196 | 12,448 |
Asset retirement obligations | 39,888 | 34,574 |
Pension and other postretirement obligations | 8,838 | 8,807 |
Deferred income taxes | 17,550 | 12,338 |
Liability for uncertain tax positions | 9,413 | 1,912 |
Other long-term liabilities | 12,060 | 6,188 |
Total liabilities | 175,555 | 155,381 |
Common stock: | ||
Capital in excess of par value | 10,895 | 8,911 |
Retained earnings | 294,270 | 284,852 |
Accumulated other comprehensive loss | (11,599) | (11,337) |
Total stockholders’ equity | 300,624 | 289,392 |
Total liabilities and equity | 476,179 | 444,773 |
Class A Common Stock | ||
Common stock: | ||
Common stock | 5,490 | 5,397 |
Class B Common Stock | ||
Common stock: | ||
Common stock | $ 1,568 | $ 1,569 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) | Dec. 31, 2020$ / sharesshares | Dec. 31, 2019$ / sharesshares |
Class A Common Stock | ||
Common stock, par value (USD per share) | $ / shares | $ 1 | $ 1 |
Common stock, shares outstanding (in shares) | shares | 5,489,615 | 5,397,458 |
Class B Common Stock | ||
Common stock, par value (USD per share) | $ / shares | $ 1 | $ 1 |
Common stock, shares outstanding (in shares) | shares | 1,568,210 | 1,568,670 |
Common stock, convertible conversion ratio | 1 | 1 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Activities | ||
Net income | $ 14,793 | $ 39,632 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 18,114 | 16,240 |
Amortization of deferred financing fees | 334 | 334 |
Deferred income taxes | 7,517 | 8,698 |
Stock-based compensation | 3,078 | 4,924 |
Gain on sale of assets | (269) | (206) |
Inventory impairment charge | 1,973 | 0 |
Other asset impairment charges | 8,359 | 0 |
Other | (3,786) | (7,405) |
Working capital changes: | ||
Affiliates receivable/payable | 20 | 1,903 |
Accounts receivable | 42 | 8,221 |
Inventories | (9,361) | (9,256) |
Other current assets | (2,582) | 1,432 |
Accounts payable | (10,622) | (388) |
Income taxes receivable/payable | (10,790) | (5,447) |
Other current liabilities | (19,306) | (5,898) |
Net cash (used for) provided by operating activities | (2,486) | 52,784 |
Investing Activities | ||
Expenditures for property, plant and equipment | (30,187) | (24,664) |
Acquisition of mineral interests | (14,181) | 0 |
Proceeds from the sale of assets | 571 | 4,572 |
Purchase of equity securities | (2,000) | 0 |
Other | (187) | (170) |
Net cash used for investing activities | (45,984) | (20,262) |
Financing Activities | ||
Net additions to revolving credit agreement | 14,000 | 12,000 |
Additions to long-term debt | 7,427 | 2,000 |
Reductions to long-term debt | (1,354) | (742) |
Cash dividends paid | (5,375) | (5,132) |
Purchase of treasury shares | (1,002) | (3,010) |
Other | 332 | (3) |
Net cash provided by financing activities | 14,028 | 5,113 |
Cash and Cash Equivalents | ||
Total (decrease) increase for the year | (34,442) | 37,635 |
Balance at the beginning of the year | 122,892 | 85,257 |
Balance at the end of the year | $ 88,450 | $ 122,892 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Common StockClass A Common Stock | Common StockClass B Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Balance, beginning of period at Dec. 31, 2018 | $ 250,704 | $ 5,352 | $ 1,569 | $ 7,042 | $ 250,352 | $ (13,611) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 4,924 | 117 | 4,807 | |||
Purchase of treasury shares | (3,010) | (72) | (2,938) | |||
Net income | 39,632 | 39,632 | ||||
Cash dividends on common stock | (5,132) | (5,132) | ||||
Current period other comprehensive income, net of tax | 758 | 758 | ||||
Pension settlement, net of tax | 671 | 671 | ||||
Reclassification adjustment to net income, net of tax | 845 | 845 | ||||
Balance, end of period at Dec. 31, 2019 | 289,392 | 5,397 | 1,569 | 8,911 | 284,852 | (11,337) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 3,078 | 124 | 2,954 | |||
Purchase of treasury shares | (1,002) | (32) | (970) | |||
Conversion of Class B to Class A shares | 0 | 1 | (1) | |||
Net income | 14,793 | 14,793 | ||||
Cash dividends on common stock | (5,375) | (5,375) | ||||
Current period other comprehensive income, net of tax | (697) | (697) | ||||
Pension settlement, net of tax | 0 | |||||
Reclassification adjustment to net income, net of tax | 435 | 435 | ||||
Balance, end of period at Dec. 31, 2020 | $ 300,624 | $ 5,490 | $ 1,568 | $ 10,895 | $ 294,270 | $ (11,599) |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends on Class A and Class B common stock (USD per share) | $ 0.7675 | $ 0.7350 |
Principles of Consolidation and
Principles of Consolidation and Nature of Operations | 12 Months Ended |
Dec. 31, 2020 | |
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. ® (“NACCO” or the "Company"). NACCO, through a portfolio of mining and natural resources businesses, operates under three business segments: Coal Mining, North American Mining ("NAMining") and Minerals Management. The Coal Mining segment operates surface coal mines under long-term contracts with power generation companies and an activated carbon producer pursuant to a service-based business model. The NAMining segment provides value-added contract mining and other services for producers of aggregates, lithium and other minerals. The Minerals Management segment acquires and promotes the development of oil, gas and coal mineral interests, generating income primarily from royalty-based lease payments from third parties. In addition, the Company has a business providing stream and wetland mitigation solutions. The Company also has unallocated items not directly attributable to a reportable segment. Intercompany accounts and transactions are eliminated in consolidation. See Note 15 to the Consolidated Financial Statements for further discussion of segment reporting. The Company’s operating segments are further described below: Coal Mining Segment During 2020, the Company's operating coal mines were: 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”). The Company operates these mines as the North American Coal Corporation ® ("NACoal"). Sabine operates the Sabine Mine in Texas. All production from Sabine is delivered to Southwestern Electric Power Company's (“SWEPCO”) Henry W. Pirkey Plant (the “Pirkey Plant”). SWEPCO is an American Electric Power (“AEP”) company. On November 5, 2020, AEP announced it intends to retire the Pirkey Plant in 2023 in order to comply with the U.S. Environmental Protection Agency’s Coal Combustion Residuals rule. The Sabine Mine delivered 1.9 million and 2.6 million tons to the Pirkey Plant in 2020 and 2019, respectively. During 2020, SWEPCO reduced its expected future annual delivery requirements to be between 1.4 million and 1.7 million tons. The Sabine Mine contributed $3.9 million and $4.6 million to Earnings from Unconsolidated Operations during 2020 and 2019, respectively. Coteau operates the Freedom Mine in North Dakota. All coal production from the Freedom Mine is delivered to Basin Electric Power Cooperative (“Basin Electric”). Basin Electric utilizes the coal at the Great Plains Synfuels Plant (the “Synfuels Plant”), Antelope Valley Station and Leland Olds Station. The Synfuels Plant is a coal gasification plant that manufactures synthetic natural gas and produces fertilizers, solvents, phenol, carbon dioxide, and other chemical products for sale. On November 5, 2020, Basin Electric informed its employees and Coteau that it is considering changes that may result in modifications to its Synfuels Plant that could potentially reduce or eliminate coal requirements at the Synfuels Plant beginning in 2026. Basin Electric indicated that if it decides to proceed with any changes that could reduce or eliminate the use of coal, the feedstock change is not expected to occur before 2026. As a result, coal deliveries to the Synfuels Plant are expected to continue until at least 2026. On September 30, 2020, Caddo Creek's customer, a division of Cabot Corporation, entered into a long-term supply agreement with a subsidiary of Advanced Emissions Solutions (“AES”) as well as an agreement for the sale of the Marshall Mine, operated by Caddo Creek, to a subsidiary of AES. AES announced its intent to close the Marshall Mine. Caddo Creek entered into a contract with a subsidiary of AES to perform the required mine reclamation. The Marshall Mine delivered 0.1 million and 0.2 million tons during 2020 and 2019, respectively. The contract mining agreement between Camino Real and its customer, Dos Republicas Coal Partnership (“DRCP”), terminated effective July 1, 2020 as a result of the unexpected termination by Comisión Federal de Electricidad (“CFE”) of its coal supply contract with an affiliate of DRCP. The termination of the contract between CFE and DRCP eliminated DRCP’s need for coal from Camino Real's Eagle Pass Mine, and resulted in mine closure. Mine reclamation is the responsibility of DRCP. Camino Real has no legal obligation to perform mine reclamation. The Eagle Pass Mine delivered 0.3 million and 1.6 million tons during 2020 and 2019, respectively. On May 7, 2020, Great River Energy ("GRE"), Falkirk's customer, announced its intent to retire the Coal Creek Station power plant in the second half of 2022 and modify the Spiritwood Station power plant to be fueled by natural gas. As noted in the announcement, GRE is willing to consider opportunities to sell Coal Creek Station. Falkirk Mine is the sole supplier of lignite coal to Coal Creek Station pursuant to a long-term contract under which Falkirk also supplies approximately 0.3 million tons of lignite coal per year to Spiritwood Station. Falkirk delivered a total of 7.2 million and 7.4 million tons of lignite coal and contributed $16.1 million and $15.9 million to Earnings from Unconsolidated Operations during 2020 and 2019, respectively. At all operating coal mines other than MLMC, the Company is 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. The customers are responsible for funding all mine operating costs, including final mine reclamation, and directly or indirectly provide all of the capital required to build and operate the mine. This contract structure eliminates exposure to spot coal market price fluctuations while providing steady income and cash flow with minimal capital investment. Other than at Coyote Creek, debt financing provided by or supported by the customers is without recourse to NACCO and NACoal. See Note 17 for further discussion of Coyote Creek's guarantees. All operating coal mines other than MLMC meet the definition of a variable interest entity (“VIE”). In each case, 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 associated with these VIE's is reported as Earnings of unconsolidated operations on the Consolidated Statements of Operations and the Company’s investment is reported on the line Investments in Unconsolidated Subsidiaries in the Consolidated Balance Sheets. 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 Consolidated Statements of Operations includes income taxes related to these entities. See Note 17 for further information on the Unconsolidated Subsidiaries. Camino Real and Caddo Creek previously met the definition of a VIE of which the Company was not the primary beneficiary and therefore NACCO did not consolidate the results of operations within its financial statements. As a result of the events described above, Camino Real and Caddo Creek are no longer VIEs. Camino Real’s and Caddo Creek's financial positions were consolidated within NACCO’s financial statements during the second quarter of 2020 and the fourth quarter of 2020, respectively. During 2020, the consolidation of these entities did not materially change the Company’s Consolidated Statements of Operations and Consolidated Balance Sheet. The MLMC contract is the only operating coal contract in which the Company is responsible for all operating costs, capital requirements and final mine reclamation; therefore, MLMC is consolidated within NACCO’s financial statements. 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. NAMining Segment The NAMining segment provides value-added contract mining and other services for producers of aggregates, lithium and other minerals. The segment is a primary platform for the Company’s growth and diversification of mining activities outside of the coal industry. NAMining provides contract mining services for independently owned mines and quarries, creating value for its customers by performing the mining aspects of its customers’ operations. This allows customers to focus on their areas of expertise: materials handling and processing, product sales and distribution. NAMining operates primarily at limestone quarries in Florida, but is focused on expanding outside of Florida and into mining materials other than limestone. In addition, NAMining will serve as exclusive contract miner for the Thacker Pass lithium project in northern Nevada. NAMining utilizes both fixed price and management fee contract structures. Certain of the entities within the NAMining segment are VIEs and are accounted for under the equity method as Unconsolidated Subsidiaries. See Note 17 for further discussion. Minerals Management Segment The Minerals Management segment derives income primarily by leasing its royalty and mineral interests to third-party exploration and production companies, and, to a lesser extent, other mining companies, granting them the rights to explore, develop, mine, produce, market and sell gas, oil, and coal in exchange for royalty payments based on the lessees' sales of those minerals. During 2020, the Minerals Management segment acquired mineral interests in the Permian Basin in Texas and intends to make future acquisitions of mineral and royalty interests that meet the Company’s acquisition criteria as part of its growth strategy. The Company’s legacy royalty and mineral interests are located in Ohio (Utica and Marcellus shale natural gas), Louisiana (Haynesville shale and Cotton Valley formation natural gas), Mississippi (coal), Pennsylvania (coal, coalbed methane and Marcellus shale natural gas), Alabama (coal and coalbed methane and natural gas) and North Dakota (coal). The majority of the Company’s legacy reserves were acquired as part of its historical coal mining operations. Specialized employees in the Minerals Management segment also provide surface and mineral acquisition and lease maintenance services related to Company operations. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
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: 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 finance 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 Royalty Interests in Oil and Natural Gas Properties: The Company follows the successful efforts method of accounting for oil and natural gas operations. Under this method, costs to acquire mineral and royalty interests in oil and natural gas properties are capitalized when incurred. Acquisitions of royalty interests of oil and natural gas properties are considered asset acquisitions and are recorded at cost. During the year ended December 31, 2020, the Company closed on multiple acquisitions of mineral and royalty interests for total consideration of $14.2 million, of which $12.0 million closed in December 2020, $2.0 million closed in November 2020 and $0.2 million closed in August 2020. These acquisitions are all located in the Permian Basin in Texas. The Company did not acquire any mineral interests in 2019. Acquisition costs of proven royalty interests are amortized using the units of production method over the life of the property, which is estimated using proven reserves. For purposes of amortization, interests in oil and natural gas properties are grouped in a reasonable aggregation of properties with common geological structural features or stratigraphic condition. The Company did not recognize any amortization expense related to the Company’s royalty interests in oil and natural gas properties for the year ended December 31, 2020. The Company reviews and evaluates its royalty interests in oil and natural gas properties for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Proven oil and gas properties are reviewed for impairment when events and circumstances indicate a potential decline in the fair value of such properties below the carrying value, such as a downward revision of the reserve estimates or lower commodity prices. When such events or changes in circumstances occur, the Company estimates the undiscounted future cash flows expected in connection with the properties and compares such future cash flows to the carrying amounts of the properties to determine if the carrying amounts are recoverable. If the carrying value of the properties is determined to not be recoverable based on the undiscounted cash flows, an impairment charge is recognized by comparing the carrying value to the estimated fair value of the properties. 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 or asset group 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 or asset group 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. See Note 9 for further discussion of the Company's nonrecurring fair value measurements. At MLMC, the costs of mining operations are not reimbursed by MLMC's customer. As such, increased costs at MLMC or decreased revenues could materially reduce the Company's profitability. Any reduction in customer demand at MLMC, including reductions related to reduced mechanical availability of the customer’s power plant, would adversely affect the Company's operating results and could result in significant impairments. MLMC has approximately $135 million of long-lived assets, including property, plant and equipment and its coal supply agreement intangible asset, which are subject to periodic impairment analyses and review. Identifying and assessing whether impairment indicators exist, or if events or changes in circumstances have occurred, including assumptions about future power plant dispatch levels, changes in future sales price, operating costs and other factors that impact anticipated revenue and customer demand, requires significant judgment. Actual future operating results could differ significantly from these estimates, which may result in an impairment charge in a future period, which could have a substantial impact on the Company’s results of operations. Coal Supply Agreement: The coal supply agreement represents a long-term supply agreement with MLMC's 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 expires in 2032. 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: See Note 3 to the Consolidated Financial Statements for discussion of revenue recognition. 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 years ended December 31, 2020 and December 31, 2019, the restriction period ends at the earliest of (i) three years after the participant's retirement date, (ii) three five 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, 2020, $100,000 ($150,000 for the Chairman) of the non-employee director's annual retainer of $162,000 ($250,000 for the Chairman) was paid in restricted shares of Class A common stock. For the year ended December 31, 2019, $95,000 ($150,000 for the Chairman) of the non-employee director's annual retainer of $155,000 ($250,000 for the Chairman) 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 42,744 and 22,258 shares related to the years ended December 31, 2020 and 2019, 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 745 in 2020 and 432 in 2019. After the issuance of these shares, there were 33,821 shares of Class A common stock available for issuance under this plan. Compensation expense related to these awards was $1.0 million ($0.8 million net of tax) and $1.1 million ($0.9 million net of tax) for the years ended December 31, 2020 and 2019, 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, equity securities, 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. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2020 | |
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. On September 30, 2020, Caddo Creek entered into a fixed-price contract to perform mine reclamation. The management service to perform mine reclamation 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. Revenue from this contract is recognized over time utilizing the cost-to-cost method to measure the extent of progress toward completion of the performance obligation. The Company believes the cost-to-cost method is the most appropriate method to measure progress and that the rate at which costs are incurred to fulfill the contract best depicts the transfer of control to the customer. The extent of progress towards completion is measured based on the ratio of costs incurred to date compared to total estimated costs at completion, and revenue is recorded proportionally based on an estimated profit margin. 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 Company believes that the pricing provisions of royalty contracts are customary in the industry. Up-front lease bonus payments represent the fixed portion of the transaction price and are 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 tons, 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. Recognition of revenue and recognition of profit related to the Caddo Creek contract requires the use of assumptions and estimates related to the total contract value, the total cost at completion, and the measurement of progress towards completion of the performance obligation. Due to the nature of the contract, developing the estimated total contract value and total cost at completion requires the use of significant judgment. The total contract value includes variable consideration. The Company includes variable consideration in the transaction price at the most likely amount to be earned, based upon the Company’s assessment of expected performance. The Company records these amounts only to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Prior Period Performance Obligations The Company records royalty income in the month production is delivered to the purchaser. As a non-operator, the Company has limited visibility into the timing of when new wells start producing and production statements may not be received for 30 to 90 days or more after the date production is delivered. As a result, the Company is required to estimate the amount of production delivered to the purchaser and the price that will be received for the sale of the product. The expected sales volumes and prices for these properties are estimated and recorded in "Accounts receivable" in the accompanying Consolidated Balance Sheets. The difference between the Company’s estimates and the actual amounts received is recorded in the month that payment is received from the third party lessee. For the years ended December 31, 2020 and 2019, royalty income recognized in the reporting periods related to performance obligations satisfied in prior reporting periods was immaterial. 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 15 to the Consolidated Financial Statements for further discussion of segment reporting. The following table disaggregates revenue by major sources for the years ended December 31: Major Goods/Service Lines 2020 2019 Coal Mining $ 72,088 $ 68,701 NAMining 42,392 42,823 Minerals Management 14,721 30,119 Unallocated Items 2,133 790 Eliminations (2,902) (1,443) Total revenues $ 128,432 $ 140,990 Timing of Revenue Recognition Goods transferred at a point in time $ 68,073 $ 66,102 Services transferred over time 60,359 74,888 Total revenues $ 128,432 $ 140,990 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 Long-term asset Contract liability (current) Contract liability (long-term) Balance at January 1, 2020 $ 15,444 $ 1,977 $ 944 $ 2,153 Balance at December 31, 2020 18,894 4,984 941 3,626 Increase (decrease) $ 3,450 $ 3,007 $ (3) $ 1,473 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 both of the years ended December 31, 2020 and December 31, 2019 that was included in the opening contract liability was $0.9 million. 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 $0.9 million in 2021, $3.1 million in 2022, $0.3 million in 2023, and $0.1 million in 2024 related to the contract liability remaining at December 31, 2020. The difference between the opening and closing balances of the Company’s contract balances results from the timing difference between the Company’s performance and the customer’s payment. The Company has no contract assets recognized from the costs to obtain or fulfill a contract with a customer. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are summarized as follows: December 31 2020 2019 Coal $ 17,695 $ 15,700 Mining supplies 29,856 24,765 Total inventories $ 47,551 $ 40,465 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2020 | |
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 2020 2019 Coal lands and real estate $ 50,887 $ 54,647 Mineral interests 14,181 — Plant and equipment 231,190 190,868 Property, plant and equipment, at cost 296,258 245,515 Less allowances for depreciation, depletion and amortization 123,841 107,454 $ 172,417 $ 138,061 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets The Company has a coal supply agreement intangible asset which is subject to amortization based on units of production over the term of the lignite sales agreement which expires in 2032. The gross and net balances are set forth in the following table: Gross Carrying Accumulated Net Balance at December 31, 2020 Coal supply agreement $ 84,200 $ (48,870) $ 35,330 Balance at December 31, 2019 Coal supply agreement $ 84,200 $ (46,298) $ 37,902 Amortization expense for intangible assets was $2.6 million in both 2020 and 2019. |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2020 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Asset Retirement Obligations The Company’s obligations associated with the retirement of long-lived assets are recognized at fair value at the time the legal obligations are incurred. Upon initial recognition of a liability, a corresponding amount is capitalized as part of the carrying value of the related long-lived asset and is depreciated either by the straight-line method or the units-of-production method. The liability is accreted each period until the liability is settled, at which time the liability is removed. If the liability is settled for an amount other than the recorded amount, a gain or loss is recognized. The Company'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. Management’s estimate involves a high degree of subjectivity. In particular, the obligation’s fair value is determined using a discounted cash flow technique and is based upon mining permit requirements and various assumptions including credit adjusted risk-free-rates, estimates of disturbed acreage, life of the mine, estimated reclamation costs, the application of various environmental laws and regulation and assumptions regarding equipment productivity. The Company reviews its asset retirement obligations at each mine site at least annually and makes necessary adjustments for permit changes and for revisions of estimates of the timing and extent of reclamation activities and cost estimates. 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. The depreciation of the asset is recorded in the line “Cost of sales” in the accompanying Consolidated Statements of Operations. A reconciliation of the Company's beginning and ending aggregate carrying amount of the asset retirement obligations are as follows: Coal Mining NAMining Unallocated Items NACCO Balance at January 1, 2019 $ 20,396 $ 485 $ 16,822 $ 37,703 Liabilities incurred during the period — 91 — 91 Liabilities settled during the period (8,265) — (752) (9,017) Accretion expense 1,260 28 1,323 2,611 Revision of estimated cash flows 5,624 — (153) 5,471 Balance at December 31, 2019 $ 19,015 $ 604 $ 17,240 $ 36,859 Liabilities incurred during the period 9,809 — — 9,809 Liabilities settled during the period (5,977) — (732) (6,709) Accretion expense 1,793 — 1,022 2,815 Revision of estimated cash flows 400 (604) (838) (1,042) Balance at December 31, 2020 $ 25,040 $ — $ 16,692 $ 41,732 Asset retirement obligations are incurred at the time development of a new mine or mine area commences. During 2020, MLMC began development of a new mine area and as such, recorded an additional $9.8 million asset retirement obligation and a corresponding $9.8 million asset was capitalized as a component of Property, plant and equipment, net. The asset retirement obligation’s fair value was determined using a discounted cash flow technique and is based upon permit requirements and various estimates and assumptions that would be used by market participants, including estimates of disturbed acreage, reclamation costs and assumptions regarding equipment productivity. Centennial Natural Resources (“Centennial”) ceased coal production at the end of 2015. During 2020, the Company transferred the mine permits for certain Centennial mines to an unrelated third party. As a result of the transfer of the mine permits, the Company was relieved of the associated mine reclamation obligations and therefore recorded a $4.8 million reduction to Centennial's asset retirement obligation, included in "Liabilities settled during the period" in the table above. As part of the transfer of the mine permits, the Company paid $3.8 million of cash, recorded $1.4 million in Other assets for amounts owed to Centennial from the third-party acquirer, and recognized $2.4 million in Other long-term liabilities in the Consolidated Balance Sheets. The liabilities are associated with amounts due to the third-party acquirer upon transfer or replacement of the surety bonds and the fair value of the obligation to stand ready to perform in the event there is a claim under the surety bonds. As of December 31, 2020, the Company has $5.8 million of surety bonds outstanding related to the mines associated with the transferred mine permits. The third party that acquired the mine permits is required as part of the transaction to transfer or replace the outstanding surety bonds as soon as it is able. If there is a claim under these surety bonds prior to the transfer or replacement of such bonds, the Company would be responsible to the surety company for any amounts it pays with respect to such claim, up to the amount of the outstanding surety bonds. During 2019, the Company transferred the mine permits for certain Centennial mines to an unrelated third party. As a result of these transfers, the Company was relieved of the associated mine reclamation obligations and recorded a $5.4 million reduction to Centennial's asset retirement obligation, included in "Liabilities settled during the current period" in the table above. As part of these transactions, the Company transferred a $3.4 million escrow account and paid $2.4 million of cash, resulting in a net loss on the transactions of $0.4 million recognized within cost of sales in the Consolidated Statement of Operations and reflected on the line “Revision of estimated cash flows” in the table above. The reduction to the asset retirement obligation related to these transfers was offset by a $2.0 million increase to the asset retirement obligation related to updated costs estimates for the remaining Centennial asset retirement obligations recognized within cost of sales in the Consolidated Statement of Operations and reflected on the line “Revision of estimated cash flows” in the table above. Due to updated cost estimates and changes in timing of the asset retirement obligation for MLMC, the Company recognized a $3.1 million increase to the asset retirement obligation in 2019 within cost of sales in the Consolidated Statement of Operations and reflected on the line “Revision of estimated cash flows” in the table above. 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 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. |
Current and Long-Term Financing
Current and Long-Term Financing | 12 Months Ended |
Dec. 31, 2020 | |
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 2020 2019 Total outstanding borrowings of NACoal: Revolving credit agreement $ 30,000 $ 16,000 Other debt 16,465 8,943 Total debt outstanding $ 46,465 $ 24,943 Current portion of borrowings outstanding $ 22,112 $ 7,795 Long-term portion of borrowings outstanding 24,353 17,148 $ 46,465 $ 24,943 Total available borrowings, net of limitations, under revolving credit agreement $ 146,951 $ 148,644 Unused revolving credit agreement $ 116,951 $ 132,644 Weighted average stated interest rate on total borrowings 2.3 % 5.1 % Annual maturities of total debt, excluding leases, are as follows: 2021 20,924 2022 10,956 2023 990 2024 1,025 2025 1,061 Thereafter 10,041 $ 44,997 Interest paid on total debt was $1.4 million and $0.9 million during 2020 and 2019, respectively. 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 $30.0 million at December 31, 2020. At December 31, 2020, the excess availability under the NACoal Facility was $117.0 million, which reflects a reduction for outstanding letters of credit of $3.0 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, 2020, 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, 2020. The weighted average interest rate applicable to the NACoal Facility at December 31, 2020 was 1.88% 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, 2020, NACoal was in compliance with all financial covenants in the NACoal Facility. NACoal has a demand note payable to Coteau, one of the unconsolidated subsidiaries, which bears interest based on the applicable quarterly federal short-term interest rate as announced from time to time by the Internal Revenue Service. At December 31, 2020 and 2019, the balance of the note was $4.4 million and $2.0 million and the interest rate was 0.14% and 1.68%, respectively. NACoal has two notes payable that are secured by four specified units of equipment and bears interest at a weighted average rate of 4.20%. One note has a ten seven |
Fair Value Disclosure
Fair Value Disclosure | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosure | Fair Value Disclosure Recurring Fair Value Measurements : The following table presents the Company's assets 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, 2020 (Level 1) (Level 2) (Level 3) Assets: Equity securities $ 13,164 $ 13,164 $ — $ — $ 13,164 $ 13,164 $ — $ — 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, 2019 (Level 1) (Level 2) (Level 3) Assets: Equity securities $ 10,120 $ 10,120 $ — $ — $ 10,120 $ 10,120 $ — $ — Bellaire's Mine Water Treatment Trust invests in available for sale securities that are reported at fair value based upon quoted market prices in active markets for identical assets; therefore, they are classified as Level 1 within the fair value hierarchy. The Mine Water Treatment Trust realized a gain of $1.2 million and $1.5 million in the years ended December 31, 2020 and 2019, respectively. See Note 7 for further discussion of Bellaire's Mine Water Treatment Trust. During 2020, the Company invested $2.0 million in equity securities of a public company with a diversified portfolio of royalty producing mineral interests. The investment is reported at fair value based upon quoted market prices in active markets for identical assets; therefore, it is classified as Level 1 within the fair value hierarchy. The Company recognized a gain of $0.1 million during the year ended December 31, 2020, related to the investment in these equity securities. The gains related to equity securities are reported on the line Gain on equity securities in the "Other (income) expense" section of the Consolidated Statements of Operations. , There were no transfers into or out of Levels 1, 2 or 3 during the year ended December 31, 2020. Nonrecurring Fair Value Measurements: The Company regularly performs reviews of potential future development projects and identified certain undeveloped properties where market conditions related to any future development deteriorated during 2020. As a result, the Company estimated the fair value of the assets using unobservable inputs, which are classified as Level 3 inputs. The long-lived assets were written down to their estimated fair value, which resulted in a non-cash asset impairment charge of $7.3 million in the Minerals Management segment and $1.1 million in the Coal Mining segment for certain capitalized leasehold costs, prepaid royalties and other assets during 2020. The fair value of these long-lived assets was determined to be zero as such assets were deemed to have no future economic benefit based on the Company's analysis using market participant assumptions, and therefore no expected future cash flows. The impairment charges are reported on the line Asset impairment charges 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 finance 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 finance leases, was $45.2 million and $45.0 million, respectively, at December 31, 2020 and $24.3 million and $24.3 million, respectively, at December 31, 2019. Financial instruments that potentially subject the Company to concentration of credit risk consist principally of accounts receivable. Under its mining contracts, the Company recognizes revenue and a related receivable as coal or limestone is delivered. These mining contracts provide for monthly settlements. The Company'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. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases NACCO adopted ASU 2016-02, Leases (Topic 842), on January 1, 2019. The most significant effect to the 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 Consolidated Balance Sheet. The Company's lease agreements do not contain lease payments that depend on an index or a rate, as such, minimum lease payments do not include variable lease payments. Leased assets and liabilities include the following: Description Location DECEMBER 31 DECEMBER 31 Assets Operating Operating lease right-of-use assets $ 10,324 $ 11,398 Finance Property, plant and equipment, net (a) 1,478 544 Liabilities Current Operating Other current liabilities $ 1,457 $ 1,318 Finance Current maturities of long-term debt 1,188 558 Noncurrent Operating Operating lease liabilities $ 11,196 $ 12,448 Finance Long-term debt 280 85 (a) Finance leased assets are recorded net of accumulated amortization of $0.2 million and $1.9 million as of December 31, 2020 and December 31, 2019, respectively. The components of lease expense for the years ended December 31 are as follows: Description Location 2020 2019 Lease expense Operating lease cost Selling, general and administrative expenses $ 2,103 $ 2,251 Finance lease cost: Amortization of leased assets Cost of sales 164 570 Interest on lease liabilities Interest expense 19 18 Variable lease expense Selling, general and administrative expenses 588 555 Short-term lease expense Selling, general and administrative expenses 260 298 Total lease expense $ 3,134 $ 3,692 Future minimum finance and operating lease payments were as follows at December 31, 2020: Finance Operating Total 2021 $ 1,229 $ 2,260 $ 3,489 2022 124 2,181 2,305 2023 102 1,705 1,807 2024 63 1,661 1,724 2025 7 1,469 1,476 Subsequent to 2025 — 7,952 7,952 Total minimum lease payments 1,525 17,228 $ 18,753 Amounts representing interest 57 4,575 Present value of net minimum lease payments $ 1,468 $ 12,653 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 Company considers its credit rating and the current economic environment in determining this collateralized rate. The assumptions used in accounting for ASC 842 for the years ended December 31 are as follows: Lease term and discount rate 2020 2019 Weighted average remaining lease term (years) Operating 8.92 9.63 Finance 1.38 0.75 Weighted average discount rate Operating 7.00 % 6.99 % Finance 4.11 % 5.95 % The following table details cash paid for amounts included in the measurement of lease liabilities for the years ended December 31: Cash paid for amounts included in the measurement of lease liabilities 2020 2019 Operating cash flows from operating leases $ 2,223 $ 2,299 Operating cash flows from finance leases 19 18 Financing cash flows from finance leases 623 534 |
Leases | Leases NACCO adopted ASU 2016-02, Leases (Topic 842), on January 1, 2019. The most significant effect to the 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 Consolidated Balance Sheet. The Company's lease agreements do not contain lease payments that depend on an index or a rate, as such, minimum lease payments do not include variable lease payments. Leased assets and liabilities include the following: Description Location DECEMBER 31 DECEMBER 31 Assets Operating Operating lease right-of-use assets $ 10,324 $ 11,398 Finance Property, plant and equipment, net (a) 1,478 544 Liabilities Current Operating Other current liabilities $ 1,457 $ 1,318 Finance Current maturities of long-term debt 1,188 558 Noncurrent Operating Operating lease liabilities $ 11,196 $ 12,448 Finance Long-term debt 280 85 (a) Finance leased assets are recorded net of accumulated amortization of $0.2 million and $1.9 million as of December 31, 2020 and December 31, 2019, respectively. The components of lease expense for the years ended December 31 are as follows: Description Location 2020 2019 Lease expense Operating lease cost Selling, general and administrative expenses $ 2,103 $ 2,251 Finance lease cost: Amortization of leased assets Cost of sales 164 570 Interest on lease liabilities Interest expense 19 18 Variable lease expense Selling, general and administrative expenses 588 555 Short-term lease expense Selling, general and administrative expenses 260 298 Total lease expense $ 3,134 $ 3,692 Future minimum finance and operating lease payments were as follows at December 31, 2020: Finance Operating Total 2021 $ 1,229 $ 2,260 $ 3,489 2022 124 2,181 2,305 2023 102 1,705 1,807 2024 63 1,661 1,724 2025 7 1,469 1,476 Subsequent to 2025 — 7,952 7,952 Total minimum lease payments 1,525 17,228 $ 18,753 Amounts representing interest 57 4,575 Present value of net minimum lease payments $ 1,468 $ 12,653 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 Company considers its credit rating and the current economic environment in determining this collateralized rate. The assumptions used in accounting for ASC 842 for the years ended December 31 are as follows: Lease term and discount rate 2020 2019 Weighted average remaining lease term (years) Operating 8.92 9.63 Finance 1.38 0.75 Weighted average discount rate Operating 7.00 % 6.99 % Finance 4.11 % 5.95 % The following table details cash paid for amounts included in the measurement of lease liabilities for the years ended December 31: Cash paid for amounts included in the measurement of lease liabilities 2020 2019 Operating cash flows from operating leases $ 2,223 $ 2,299 Operating cash flows from finance leases 19 18 Financing cash flows from finance leases 623 534 |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 | |
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, 2020 was 25,000,000 shares and 6,756,176 shares, respectively. Treasury shares of Class A common stock totaling 2,726,017 and 2,817,714 at December 31, 2020 and 2019, respectively, have been deducted from shares outstanding. Stock Repurchase Programs: On November 6, 2019, the Company's Board of Directors approved a stock purchase program ("2019 Stock Repurchase Program") providing for the purchase of up to $25 million of the Company’s outstanding Class A common stock through December 31, 2021. NACCO’s previous repurchase program ("2018 Stock Repurchase Program") would have expired on December 31, 2019 but was terminated and replaced by the 2019 Stock Repurchase Program. As a result of the uncertainty surrounding the COVID-19 pandemic, the Company suspended repurchasing shares under the 2019 Stock Repurchase Program in March 2020. Prior to the decision to cease share repurchases, the Company repurchased 32,286 shares of Class A common stock under the 2019 Stock Repurchase Program for an aggregate purchase price of $1.0 million during 2020. The Company repurchased 28,094 and 44,476 shares of Class A common stock under the 2019 Stock Repurchase Program and 2018 Stock Repurchase Program, respectively, for an aggregate purchase price of $3.0 million during 2019. The timing and amount of any repurchases under the 2019 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 2019 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 2019 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. 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: 2020 2019 Basic weighted average shares outstanding 7,026 6,974 Dilutive effect of restricted stock awards 31 33 Diluted weighted average shares outstanding 7,057 7,007 Basic earnings per share $ 2.11 $ 5.68 Diluted earnings per share $ 2.10 $ 5.66 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company provides for income taxes and the related accounts under the asset and liability method. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates expected to be in effect during the year in which the basis differences reverse. Valuation allowances are established when management determines it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. The components of income (loss) before income tax provision (benefit) and the income tax provision (benefit) for the years ended December 31 are as follows: 2020 2019 Income (loss) before income tax provision (benefit) Domestic $ 13,990 $ 40,742 Foreign 268 2,657 $ 14,258 $ 43,399 Income tax provision (benefit) Current income tax provision (benefit): Federal $ (7,859) $ (6,473) State (408) 939 Foreign 215 603 Total current (8,052) (4,931) Deferred income tax provision: Federal 7,847 8,125 State (330) 573 Total deferred 7,517 8,698 $ (535) $ 3,767 The Company made income tax payments of $0.4 million and $1.0 million during 2020 and 2019, respectively. During the same periods, income tax refunds totaled $4.2 million and $2.6 million, respectively. The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate to income before the provision for income taxes. A reconciliation of the federal statutory and effective income tax rate for the years ended December 31 is as follows: 2020 2019 Income before income tax provision $ 14,258 $ 43,399 Statutory taxes at 21.0% $ 2,994 $ 9,114 State and local income taxes (626) 1,129 Non-deductible expenses 426 736 Percentage depletion (3,744) (4,451) R&D and other federal credits (367) (255) Settlements and uncertain tax positions 6,286 (2,377) Coronavirus Aid, Relief, and Economic Security ("CARES") Act - carryback rate differential (4,741) — Other, net (763) (129) Income tax provision $ (535) $ 3,767 Effective income tax rate (3.8) % 8.7 % The Company recorded an income tax benefit of $0.5 million for the year ended December 31, 2020 on income before income tax of $14.3 million, or (3.8%), compared to income tax expense of $3.8 million on income before income tax of $43.4 million, or 8.7%, for the year ended December 31, 2019. The year ended December 31, 2020 includes $7.3 million of discrete tax charges primarily related to settlement of tax examinations, reserves for uncertain tax positions and return to provision adjustments partially offset by a benefit of $4.7 million, primarily due to the rate differential related to carrying back losses under the provisions of the CARES Act. The CARES Act allows net operating tax losses incurred in 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes. The Company generated a net tax operating loss in 2020 primarily due to the realization of certain deferred tax assets. Discrete tax items in the year ended December 31, 2019 were a benefit of $2.5 million primarily resulting from changes in prior year estimates and the effective settlement of certain discrete tax items from on-going examinations. The Company’s effective income tax rate, excluding the CARES Act and discrete items, was (22.0%) and 14.5% for the years ended December 31, 2020 and 2019, respectively. The effective income tax rate differs from the U.S. federal statutory rate primarily due to the benefit from percentage depletion. The benefit of percentage depletion is not directly related to the amount of pre-tax income recorded in a period. Accordingly, as a result of the $29.1 million reduction in income before income tax in 2020 compared to 2019, the proportional effect of the benefit from percentage depletion on the effective income tax rate in 2020 resulted in a significantly lower effective tax rate in 2020 compared to 2019. A detailed summary of the total deferred tax assets and liabilities in the Company's Consolidated Balance Sheets resulting from differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows: December 31 2020 2019 Deferred tax assets Lease liabilities $ 27,800 $ 30,875 Tax carryforwards 17,756 16,305 Inventories 3,742 1,704 Accrued liabilities 10,160 10,020 Employee benefits 2,747 4,853 Land valuation adjustment 5,536 4,304 Other 5,401 4,701 Total deferred tax assets 73,142 72,762 Less: Valuation allowance 11,549 12,296 61,593 60,466 Deferred tax liabilities Lease right-of-use assets 27,800 30,875 Depreciation and depletion 31,972 28,061 Partnership investment - development costs 11,686 9,949 Accrued pension benefits 7,685 3,919 Total deferred tax liabilities 79,143 72,804 Net deferred liability $ (17,550) $ (12,338) 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, 2020 Net deferred tax Valuation Carryforwards State net operating loss $ 18,708 $ 14,478 2021-2040 Federal research credit 2,648 — 2034-2040 Total $ 21,356 $ 14,478 December 31, 2019 Net deferred tax Valuation Carryforwards State net operating loss $ 16,531 $ 13,668 2020-2039 Federal research credit 1,455 — 2034-2038 Federal foreign tax credit 463 463 2029 Alternative minimum tax ("AMT") credit 1,596 — (1) Total $ 20,045 $ 14,131 (1) The Tax Cuts and Jobs Act provided that AMT credits can be utilized to offset income taxes owed in tax years 2018 through 2020 with any remaining AMT credit refundable in 2021. The CARES Act revised this to allow AMT credits to be refundable in 2018 and 2019. The Company has reclassified its AMT credits to the current receivable as of December 31, 2020. 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 has extended the statute of limitations to allow the U.S. taxing authorities to complete their examination. 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, 2020 and 2019. The increase in the gross unrecognized tax benefits in 2020 is primarily due to tax positions related to worthlessness losses for which the timing of deductibility is uncertain. Approximately $6.3 million and $2.3 million of the gross unrecognized tax benefits as of December 31, 2020 and 2019, 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 (1) the deferred tax asset which would be available if the position were not sustained upon audit and (2) the decrease in U.S. federal income taxes which would occur upon the recognition of the state tax benefits included herein. 2020 2019 Balance at January 1 $ 2,860 $ 1,280 Additions based on tax positions related to prior years 2,774 1,172 Decreases based on settlements with tax authorities (803) — Additions based on tax positions related to the current year 5,628 408 Balance at December 31 $ 10,459 $ 2,860 The Company records interest and penalties on uncertain tax positions as a component of the income tax provision. The Company recognized net benefit of less than $0.1 million and net expense of less than $0.1 million in interest and penalties related to uncertain tax positions during 2020 and 2019, respectively. The total amount of interest and penalties accrued was $0.1 million as of December 31, 2020 and 2019, respectively. |
Retirement Benefit Plans
Retirement Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
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 2020, 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. All eligible employees of the Company, including employees whose pension benefits are frozen, receive retirement benefits under defined contribution retirement plans. During the year ended December 31, 2019, the Company offered lump-sum settlements to certain Combined Plan participants. These lump sum payments resulted in a pension settlement charge of $0.9 million. The assumptions used in accounting for the defined benefit plans were as follows for the years ended December 31: 2020 2019 Weighted average discount rates for pension benefit obligation 2.02% - 2.36% 2.98% - 3.20% Weighted average discount rates for net periodic benefit cost 2.98% - 3.20% 4.10% - 4.20% Expected long-term rate of return on assets for net periodic benefit cost 7.00 % 7.50 % Set forth below is a detail of the net periodic pension (income) expense for the defined benefit plans for the years ended December 31: 2020 2019 Interest cost $ 1,285 $ 1,710 Expected return on plan assets (2,435) (2,778) Amortization of actuarial loss 597 422 Amortization of prior service cost 58 58 Settlements — 873 Net periodic pension (income) expense $ (495) $ 285 Set forth below is detail of other changes in plan assets and benefit obligations recognized in other comprehensive loss (income) for the years ended December 31: 2020 2019 Current year actuarial loss (gain) $ 667 $ (1,030) Amortization of actuarial loss (597) (422) Amortization of prior service cost (58) (58) Settlements — (873) Total recognized in other comprehensive loss (income) $ 12 $ (2,383) 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: 2020 2019 Change in benefit obligation Projected benefit obligation at beginning of year $ 41,854 $ 42,026 Interest cost 1,285 1,710 Actuarial loss 3,996 3,121 Benefits paid (2,535) (2,391) Settlements — (2,612) Projected benefit obligation at end of year $ 44,600 $ 41,854 Accumulated benefit obligation at end of year $ 44,600 $ 41,854 Change in plan assets Fair value of plan assets at beginning of year $ 37,364 $ 34,954 Actual return on plan assets 5,763 6,930 Employer contributions 507 483 Benefits paid (2,535) (2,391) Settlements — (2,612) Fair value of plan assets at end of year $ 41,099 $ 37,364 Funded status at end of year $ (3,501) $ (4,490) Amounts recognized in the balance sheets consist of: Non-current assets $ 4,070 $ 3,079 Current liabilities (549) (606) Non-current liabilities (7,022) (6,963) $ (3,501) $ (4,490) Components of accumulated other comprehensive loss (income) consist of: Actuarial loss $ 14,022 $ 13,951 Prior service cost 761 819 Deferred taxes (3,316) (3,305) $ 11,467 $ 11,465 The Company recognizes as a component of benefit (income) cost, 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: 2021 $ 2,631 2022 2,600 2023 2,676 2024 2,695 2025 2,666 2026 - 2030 12,866 $ 26,134 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: 2020 2019 Target Allocation U.S. equity securities 45.4 % 45.1 % 36.0% - 54.0% Non-U.S. equity securities 20.3 % 20.0 % 16.0% - 24.0% Fixed income securities 33.9 % 34.4 % 30.0% - 40.0% Money market 0.4 % 0.5 % 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 2020 2019 U.S. equity securities $ 18,640 $ 16,862 Non-U.S. equity securities 8,335 7,482 Fixed income securities 13,948 12,854 Money market 176 166 Total $ 41,099 $ 37,364 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: 2020 2019 Weighted average discount rates for benefit obligation 1.37 % 2.65 % Weighted average discount rates for net periodic benefit cost 1.37% - 2.65% 3.80 % Health care cost trend rate assumed for next year 6.25 % 6.50 % 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 2027 2025 Set forth below is a detail of the net periodic benefit (income) expense for the postretirement health care plans for the years ended December 31: 2020 2019 Service cost $ 21 $ 24 Interest cost 52 77 Amortization of actuarial (gain) loss (1) 8 Amortization of prior service credit (59) (80) Amortization of curtailment (31) — Net periodic benefit (income) expense $ (18) $ 29 Set forth below is a detail of other changes in plan assets and benefit obligations recognized in other comprehensive income for the years ended December 31: 2020 2019 Current year actuarial loss $ 194 $ 46 Amortization of actuarial gain (loss) 1 (8) Amortization of prior service credit 59 80 Amortization of curtailment 31 — Transfers 46 — Total recognized in other comprehensive income $ 331 $ 118 The following sets forth the changes in benefit obligations during the year and the funded status of the postretirement health care at December 31: 2020 2019 Change in benefit obligation Benefit obligation at beginning of year $ 2,049 $ 2,113 Service cost 21 24 Interest cost 52 77 Plan amendments 49 — Actuarial loss 145 46 Benefits paid (262) (211) Benefit obligation at end of year $ 2,054 $ 2,049 Funded status at end of year $ (2,054) $ (2,049) Amounts recognized in the balance sheets consist of: Current liabilities $ (238) $ (204) Noncurrent liabilities (1,816) (1,845) $ (2,054) $ (2,049) Components of accumulated other comprehensive loss (income) consist of: Actuarial loss $ 466 $ 227 Prior service credit (167) (259) Deferred taxes (167) (96) $ 132 $ (128) Future postretirement health care benefit payments expected to be paid are: 2021 239 2022 226 2023 211 2024 196 2025 171 2026 - 2030 688 $ 1,731 |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The Company’s operating segments are: (i) Coal Mining, (ii) NAMining and (iii) Minerals Management. 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 Chief Operating Decision Maker utilizes operating profit to evaluate segment performance and allocate resources. The Company has items not directly attributable to a reportable segment which are not included as part of the measurement of segment operating profit, which are primarily administrative costs related to public company reporting requirements at the parent company and the financial results of 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. As of January 1, 2020, the Company retrospectively changed its computation of segment operating profit to reclassify certain expenses, primarily related to executive and board compensation. These expenses are now included in unallocated items. The change in segment reporting reflected a decision to evaluate the financial performance of the Company’s segments excluding executive and board compensation. All prior period segment information has been reclassified to conform to the new presentation. This segment reporting change has no impact on consolidated operating results. 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-K on a consolidated basis. Included within other income on the line Income from other unconsolidated affiliates within the Consolidated Statements of Operations is the financial results of NoDak Energy Services, LLC ("NoDak"). NoDak operated and maintained a coal drying system at a customer’s power plant. The NoDak contract expired in the first quarter of 2020. See Note 1 for additional discussion of the Company's reportable segments. All current operations reside in the U.S. The accounting policies of the reportable segments are described in Note 2. In 2020, two customers individually accounted for more than 10% of consolidated revenue. In 2019, two customers and an oil and gas lessee individually accounted for more than 10% of consolidated revenue. The following represents the revenue attributable to each of these entities as a percentage of consolidated revenue for those years: Percentage of Consolidated Revenue Segment 2020 2019 Coal Mining customer 55 % 48 % NAMining customer 19 % 21 % Minerals Management lessee less than 10% 12 % In addition, for the year ended December 31, 2020, the Coal Mining segment derived approximately 60% of the Earnings of Unconsolidated Operations from two customers, Basin Electric and GRE. GRE announced its intent to close Coal Creek station in 2022. The following tables present revenue, operating profit, depreciation expense and capital expenditures for the years ended December 31: 2020 2019 Revenues Coal Mining $ 72,088 $ 68,701 NAMining 42,392 42,823 Minerals Management 14,721 30,119 Unallocated Items 2,133 790 Eliminations (2,902) (1,443) Total $ 128,432 $ 140,990 Operating profit (loss) Coal Mining $ 25,436 $ 34,120 NAMining 1,872 (564) Minerals Management 3,493 25,721 Unallocated Items (17,256) (20,713) Eliminations (97) 256 Total $ 13,448 $ 38,820 Expenditures for property, plant and equipment and acquisition of mineral interests Coal Mining $ 14,825 $ 15,092 NAMining 13,862 8,824 Minerals Management 15,474 517 Unallocated Items 207 231 Total $ 44,368 $ 24,664 Depreciation, depletion and amortization Coal Mining $ 14,213 $ 12,409 NAMining 2,470 2,223 Minerals Management 1,308 1,362 Unallocated Items 123 246 Total $ 18,114 $ 16,240 Asset information by segment is not discretely maintained for internal reporting or used in evaluating performance. |
Parent Company Condensed Balanc
Parent Company Condensed Balance Sheets | 12 Months Ended |
Dec. 31, 2020 | |
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: 2020 2019 ASSETS Cash and cash equivalents $ 85,365 $ 120,016 Accounts receivable from affiliates 495 515 Current intercompany accounts receivable, net — 1,255 Other current assets 20,648 10,448 Investment in subsidiaries 211,468 189,338 Property, plant and equipment, net 110 167 Other non-current assets 5,890 4,570 Total Assets $ 323,976 $ 326,309 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities $ 3,242 $ 5,257 Current intercompany accounts payable, net 2,337 — Current portion of deferred compensation — 13,465 Note payable to Bellaire 16,750 16,950 Other non-current liabilities 1,023 1,245 Stockholders’ equity 300,624 289,392 Total Liabilities and Stockholders’ Equity $ 323,976 $ 326,309 The credit agreement at NACoal allows for the transfer of assets to NACCO under certain circumstances. The amount of NACCO's investment that was restricted at December 31, 2020 totaled approximately $1.7 million. The amount of unrestricted cash available to NACCO included in “Investment in subsidiaries” was $0.7 million at December 31, 2020. 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 2020 2019 (In thousands) ASSETS Cash and cash equivalents $ 85,365 $ 120,016 Accounts receivable from affiliates 495 515 Current intercompany accounts receivable, net — 1,255 Other current assets 20,648 10,448 Investment in subsidiaries 211,468 189,338 Property, plant and equipment, net 110 167 Other non-current assets 5,890 4,570 Total Assets $ 323,976 $ 326,309 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities $ 3,242 $ 5,257 Current intercompany accounts payable, net 2,337 — Current portion of deferred compensation — 13,465 Note payable to Bellaire 16,750 16,950 Other non-current liabilities 1,023 1,245 Stockholders’ equity 300,624 289,392 Total Liabilities and Stockholders’ Equity $ 323,976 $ 326,309 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 2020 2019 (In thousands) Expense (income): Intercompany interest expense $ 1,178 $ 1,190 Other, net (1,003) (1,796) 175 (606) Administrative and general expenses 5,658 6,403 Loss before income taxes (5,833) (5,797) Income tax provision (benefit) 2,419 (3,819) Net loss before equity in earnings of subsidiaries (8,252) (1,978) Equity in earnings of subsidiaries 23,045 41,610 Net income 14,793 39,632 Current period pension and postretirement plan adjustment, net of $213 tax benefit and $226 tax expense in 2020 and 2019, respectively (697) 758 Pension settlement, net of $202 tax benefit in 2019 — 671 Reclassification of pension and postretirement adjustments into earnings, net of $129 and $90 tax benefit in 2020 and 2019, respectively 435 845 Total other comprehensive income (262) 2,274 Comprehensive Income $ 14,531 $ 41,906 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 2020 2019 (In thousands) Operating Activities Net income $ 14,793 $ 39,632 Equity in earnings of subsidiaries 23,045 41,610 Parent company only net loss (8,252) (1,978) Net changes related to operating activities (22,822) 3,671 Net cash (used for) provided by operating activities (31,074) 1,693 Investing Activities Expenditures for property, plant and equipment — — Net cash used for investing activities — — Financing Activities Dividends received from subsidiaries 3,000 42,000 Notes payable to Bellaire (200) (350) Purchase of treasury shares (1,002) (3,010) Cash dividends paid (5,375) (5,132) Other — (4) Net cash (used for) provided by financing activities (3,577) 33,504 Cash and cash equivalents Increase (decrease) for the period (34,651) 35,197 Balance at the beginning of the period 120,016 84,819 Balance at the end of the period $ 85,365 $ 120,016 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, 2020 AND 2019 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. ® (“NACCO” or the “parent company”) is the public holding company for The North American Coal Corporation ® ("NACoal"). 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 $0.7 million at December 31, 2020 and was in addition to the $85.4 million of cash included in the Parent Company Condensed Balance Sheet at December 31, 2020. |
Unconsolidated Subsidiaries
Unconsolidated Subsidiaries | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Unconsolidated Subsidiaries | Unconsolidated Subsidiaries Each of the Company's wholly owned Unconsolidated Subsidiaries, within the Coal Mining and NAMining segments, meet the definition of a VIE. The Unconsolidated Subsidiaries are capitalized primarily with debt financing provided by or supported by their respective customers, and generally 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, the Company 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 $29.0 million and $24.6 million at December 31, 2020 and 2019, respectively. The Company's risk of loss relating to these entities is limited to its invested capital, which was $6.5 million and $5.0 million at December 31, 2020 and 2019, 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: 2020 2019 Statement of Operations Revenue $ 768,660 $ 734,515 Gross profit $ 69,021 $ 72,433 Income before income taxes $ 60,398 $ 65,183 Net income $ 50,933 $ 54,067 Balance Sheet Current assets $ 186,934 $ 183,848 Non-current assets $ 959,032 $ 837,477 Current liabilities $ 143,843 $ 141,132 Non-current liabilities $ 995,658 $ 875,216 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 ton of limestone delivered. Reimbursed costs have offsetting expenses and have no impact on income before income taxes. Income before income taxes represents the Earnings of the unconsolidated operations and the Income from other unconsolidated affiliates. NACoal received dividends of $49.7 million and $53.5 million from the Unconsolidated Subsidiaries in 2020 and 2019, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
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 $1.0 million for both of the years ended December 31, 2020 and 2019. Alfred M. Rankin, Jr. retired as the President and Chief Executive Officer of NACCO effective during 2017. 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 for both of the years ended December 31, 2020 and 2019. Hyster-Yale Materials Handling, Inc. ("Hyster-Yale") is a former subsidiary of the Company that was spun-off to stockholders in 2012. Mr. Rankin is Chairman, President and Chief Executive Officer of Hyster-Yale Materials Handling and Chairman, Hyster-Yale Group. 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. |
Other Events and Transactions
Other Events and Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Other Events And Transactions [Abstract] | |
Other Events and Transactions | Other Events and TransactionsVoluntary Separation Program: During the fourth quarter of 2020, the Company adopted a voluntary separation program ("2020 VSP") for eligible employees who met certain age and service requirements in an effort to reduce overall headcount at the Company’s headquarters. The irrevocable acceptance period for associates electing to participate in the 2020 VSP ended during December 2020. In the fourth quarter of 2020, the Company recorded pre-tax charges for the 2020 VSP of $1.8 million included in Selling, general and administrative expense in the accompanying Consolidated Statements of Operations. As of December 31, 2020, $1.6 million was unpaid and recorded in Accrued payroll in the Consolidated Balance Sheet. |
Schedule I - Condensed Financia
Schedule I - Condensed Financial Information of the Parent | 12 Months Ended |
Dec. 31, 2020 | |
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: 2020 2019 ASSETS Cash and cash equivalents $ 85,365 $ 120,016 Accounts receivable from affiliates 495 515 Current intercompany accounts receivable, net — 1,255 Other current assets 20,648 10,448 Investment in subsidiaries 211,468 189,338 Property, plant and equipment, net 110 167 Other non-current assets 5,890 4,570 Total Assets $ 323,976 $ 326,309 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities $ 3,242 $ 5,257 Current intercompany accounts payable, net 2,337 — Current portion of deferred compensation — 13,465 Note payable to Bellaire 16,750 16,950 Other non-current liabilities 1,023 1,245 Stockholders’ equity 300,624 289,392 Total Liabilities and Stockholders’ Equity $ 323,976 $ 326,309 The credit agreement at NACoal allows for the transfer of assets to NACCO under certain circumstances. The amount of NACCO's investment that was restricted at December 31, 2020 totaled approximately $1.7 million. The amount of unrestricted cash available to NACCO included in “Investment in subsidiaries” was $0.7 million at December 31, 2020. 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 2020 2019 (In thousands) ASSETS Cash and cash equivalents $ 85,365 $ 120,016 Accounts receivable from affiliates 495 515 Current intercompany accounts receivable, net — 1,255 Other current assets 20,648 10,448 Investment in subsidiaries 211,468 189,338 Property, plant and equipment, net 110 167 Other non-current assets 5,890 4,570 Total Assets $ 323,976 $ 326,309 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities $ 3,242 $ 5,257 Current intercompany accounts payable, net 2,337 — Current portion of deferred compensation — 13,465 Note payable to Bellaire 16,750 16,950 Other non-current liabilities 1,023 1,245 Stockholders’ equity 300,624 289,392 Total Liabilities and Stockholders’ Equity $ 323,976 $ 326,309 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 2020 2019 (In thousands) Expense (income): Intercompany interest expense $ 1,178 $ 1,190 Other, net (1,003) (1,796) 175 (606) Administrative and general expenses 5,658 6,403 Loss before income taxes (5,833) (5,797) Income tax provision (benefit) 2,419 (3,819) Net loss before equity in earnings of subsidiaries (8,252) (1,978) Equity in earnings of subsidiaries 23,045 41,610 Net income 14,793 39,632 Current period pension and postretirement plan adjustment, net of $213 tax benefit and $226 tax expense in 2020 and 2019, respectively (697) 758 Pension settlement, net of $202 tax benefit in 2019 — 671 Reclassification of pension and postretirement adjustments into earnings, net of $129 and $90 tax benefit in 2020 and 2019, respectively 435 845 Total other comprehensive income (262) 2,274 Comprehensive Income $ 14,531 $ 41,906 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 2020 2019 (In thousands) Operating Activities Net income $ 14,793 $ 39,632 Equity in earnings of subsidiaries 23,045 41,610 Parent company only net loss (8,252) (1,978) Net changes related to operating activities (22,822) 3,671 Net cash (used for) provided by operating activities (31,074) 1,693 Investing Activities Expenditures for property, plant and equipment — — Net cash used for investing activities — — Financing Activities Dividends received from subsidiaries 3,000 42,000 Notes payable to Bellaire (200) (350) Purchase of treasury shares (1,002) (3,010) Cash dividends paid (5,375) (5,132) Other — (4) Net cash (used for) provided by financing activities (3,577) 33,504 Cash and cash equivalents Increase (decrease) for the period (34,651) 35,197 Balance at the beginning of the period 120,016 84,819 Balance at the end of the period $ 85,365 $ 120,016 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, 2020 AND 2019 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. ® (“NACCO” or the “parent company”) is the public holding company for The North American Coal Corporation ® ("NACoal"). 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 $0.7 million at December 31, 2020 and was in addition to the $85.4 million of cash included in the Parent Company Condensed Balance Sheet at December 31, 2020. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 AND 2019 Additions Description Balance at Beginning of Period Charged to Charged to Deductions Balance at (In thousands) 2020 Reserves deducted from asset accounts: Deferred tax valuation allowances $ 12,296 $ (747) $ — — $ 11,549 2019 Reserves deducted from asset accounts: Deferred tax valuation allowances $ 14,219 $ (1,923) $ — $ — $ 12,296 (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, 2020 | |
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: 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 finance 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 |
Royalty Interests in Oil and Natural Gas Properties | Royalty Interests in Oil and Natural Gas Properties: The Company follows the successful efforts method of accounting for oil and natural gas operations. Under this method, costs to acquire mineral and royalty interests in oil and natural gas properties are capitalized when incurred. Acquisitions of royalty interests of oil and natural gas properties are considered asset acquisitions and are recorded at cost. During the year ended December 31, 2020, the Company closed on multiple acquisitions of mineral and royalty interests for total consideration of $14.2 million, of which $12.0 million closed in December 2020, $2.0 million closed in November 2020 and $0.2 million closed in August 2020. These acquisitions are all located in the Permian Basin in Texas. The Company did not acquire any mineral interests in 2019. Acquisition costs of proven royalty interests are amortized using the units of production method over the life of the property, which is estimated using proven reserves. For purposes of amortization, interests in oil and natural gas properties are grouped in a reasonable aggregation of properties with common geological structural features or stratigraphic condition. The Company did not recognize any amortization expense related to the Company’s royalty interests in oil and natural gas properties for the year ended December 31, 2020. The Company reviews and evaluates its royalty interests in oil and natural gas properties for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Proven oil and gas properties are reviewed for impairment when events and circumstances indicate a potential decline in the fair value of such properties below the carrying value, such as a downward revision of the reserve estimates or lower commodity prices. When such events or changes in circumstances occur, the Company estimates the undiscounted future cash flows expected in connection with the |
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 or asset group 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 or asset group 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. See Note 9 for further discussion of the Company's nonrecurring fair value measurements. At MLMC, the costs of mining operations are not reimbursed by MLMC's customer. As such, increased costs at MLMC or decreased revenues could materially reduce the Company's profitability. Any reduction in customer demand at MLMC, including reductions related to reduced mechanical availability of the customer’s power plant, would adversely affect the Company's operating results and could result in significant impairments. MLMC has approximately $135 million of long-lived assets, including property, plant and equipment and its coal supply agreement intangible asset, which are subject to periodic impairment analyses and review. Identifying and assessing whether impairment indicators exist, or if events or changes in circumstances have occurred, including assumptions about future power plant dispatch levels, changes in future sales price, operating costs and other factors that impact anticipated revenue and customer demand, requires significant judgment. Actual future operating results could differ significantly from these estimates, which may result in an impairment charge in a future period, which could have a substantial impact on the Company’s results of operations. |
Coal Supply Agreement | Coal Supply Agreement: The coal supply agreement represents a long-term supply agreement with MLMC's 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 expires in 2032. 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. |
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 years ended December 31, 2020 and December 31, 2019, the restriction period ends at the earliest of (i) three years after the participant's retirement date, (ii) three five 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, 2020, $100,000 ($150,000 for the Chairman) of the non-employee director's annual retainer of $162,000 ($250,000 for the Chairman) was paid in restricted shares of Class A common stock. For the year ended December 31, 2019, $95,000 ($150,000 for the Chairman) of the non-employee director's annual retainer of $155,000 ($250,000 for the Chairman) 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 |
Financial Instruments | Financial Instruments: Financial instruments held by the Company include cash and cash equivalents, accounts receivable, equity securities, 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. See Note 9 for further discussion of fair value measurements. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table disaggregates revenue by major sources for the years ended December 31: Major Goods/Service Lines 2020 2019 Coal Mining $ 72,088 $ 68,701 NAMining 42,392 42,823 Minerals Management 14,721 30,119 Unallocated Items 2,133 790 Eliminations (2,902) (1,443) Total revenues $ 128,432 $ 140,990 Timing of Revenue Recognition Goods transferred at a point in time $ 68,073 $ 66,102 Services transferred over time 60,359 74,888 Total revenues $ 128,432 $ 140,990 |
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 Long-term asset Contract liability (current) Contract liability (long-term) Balance at January 1, 2020 $ 15,444 $ 1,977 $ 944 $ 2,153 Balance at December 31, 2020 18,894 4,984 941 3,626 Increase (decrease) $ 3,450 $ 3,007 $ (3) $ 1,473 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories are summarized as follows: December 31 2020 2019 Coal $ 17,695 $ 15,700 Mining supplies 29,856 24,765 Total inventories $ 47,551 $ 40,465 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment, net includes the following: December 31 2020 2019 Coal lands and real estate $ 50,887 $ 54,647 Mineral interests 14,181 — Plant and equipment 231,190 190,868 Property, plant and equipment, at cost 296,258 245,515 Less allowances for depreciation, depletion and amortization 123,841 107,454 $ 172,417 $ 138,061 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The gross and net balances are set forth in the following table: Gross Carrying Accumulated Net Balance at December 31, 2020 Coal supply agreement $ 84,200 $ (48,870) $ 35,330 Balance at December 31, 2019 Coal supply agreement $ 84,200 $ (46,298) $ 37,902 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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: Coal Mining NAMining Unallocated Items NACCO Balance at January 1, 2019 $ 20,396 $ 485 $ 16,822 $ 37,703 Liabilities incurred during the period — 91 — 91 Liabilities settled during the period (8,265) — (752) (9,017) Accretion expense 1,260 28 1,323 2,611 Revision of estimated cash flows 5,624 — (153) 5,471 Balance at December 31, 2019 $ 19,015 $ 604 $ 17,240 $ 36,859 Liabilities incurred during the period 9,809 — — 9,809 Liabilities settled during the period (5,977) — (732) (6,709) Accretion expense 1,793 — 1,022 2,815 Revision of estimated cash flows 400 (604) (838) (1,042) Balance at December 31, 2020 $ 25,040 $ — $ 16,692 $ 41,732 |
Current and Long-Term Financi_2
Current and Long-Term Financing (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table summarizes the Company's available and outstanding borrowings: December 31 2020 2019 Total outstanding borrowings of NACoal: Revolving credit agreement $ 30,000 $ 16,000 Other debt 16,465 8,943 Total debt outstanding $ 46,465 $ 24,943 Current portion of borrowings outstanding $ 22,112 $ 7,795 Long-term portion of borrowings outstanding 24,353 17,148 $ 46,465 $ 24,943 Total available borrowings, net of limitations, under revolving credit agreement $ 146,951 $ 148,644 Unused revolving credit agreement $ 116,951 $ 132,644 Weighted average stated interest rate on total borrowings 2.3 % 5.1 % |
Schedule of Maturities of Total Debt, Excluding Capital Leases | Annual maturities of total debt, excluding leases, are as follows: 2021 20,924 2022 10,956 2023 990 2024 1,025 2025 1,061 Thereafter 10,041 $ 44,997 |
Fair Value Disclosure (Tables)
Fair Value Disclosure (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents the Company's assets 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, 2020 (Level 1) (Level 2) (Level 3) Assets: Equity securities $ 13,164 $ 13,164 $ — $ — $ 13,164 $ 13,164 $ — $ — 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, 2019 (Level 1) (Level 2) (Level 3) Assets: Equity securities $ 10,120 $ 10,120 $ — $ — $ 10,120 $ 10,120 $ — $ — |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of Leased Assets and Liabilities | Leased assets and liabilities include the following: Description Location DECEMBER 31 DECEMBER 31 Assets Operating Operating lease right-of-use assets $ 10,324 $ 11,398 Finance Property, plant and equipment, net (a) 1,478 544 Liabilities Current Operating Other current liabilities $ 1,457 $ 1,318 Finance Current maturities of long-term debt 1,188 558 Noncurrent Operating Operating lease liabilities $ 11,196 $ 12,448 Finance Long-term debt 280 85 (a) Finance leased assets are recorded net of accumulated amortization of $0.2 million and $1.9 million as of December 31, 2020 and December 31, 2019, respectively. |
Lease Expense | The components of lease expense for the years ended December 31 are as follows: Description Location 2020 2019 Lease expense Operating lease cost Selling, general and administrative expenses $ 2,103 $ 2,251 Finance lease cost: Amortization of leased assets Cost of sales 164 570 Interest on lease liabilities Interest expense 19 18 Variable lease expense Selling, general and administrative expenses 588 555 Short-term lease expense Selling, general and administrative expenses 260 298 Total lease expense $ 3,134 $ 3,692 |
Finance Leases, Future Minimum Payments | Future minimum finance and operating lease payments were as follows at December 31, 2020: Finance Operating Total 2021 $ 1,229 $ 2,260 $ 3,489 2022 124 2,181 2,305 2023 102 1,705 1,807 2024 63 1,661 1,724 2025 7 1,469 1,476 Subsequent to 2025 — 7,952 7,952 Total minimum lease payments 1,525 17,228 $ 18,753 Amounts representing interest 57 4,575 Present value of net minimum lease payments $ 1,468 $ 12,653 |
Operating Leases, Future Minimum Payments | Future minimum finance and operating lease payments were as follows at December 31, 2020: Finance Operating Total 2021 $ 1,229 $ 2,260 $ 3,489 2022 124 2,181 2,305 2023 102 1,705 1,807 2024 63 1,661 1,724 2025 7 1,469 1,476 Subsequent to 2025 — 7,952 7,952 Total minimum lease payments 1,525 17,228 $ 18,753 Amounts representing interest 57 4,575 Present value of net minimum lease payments $ 1,468 $ 12,653 |
Assumptions Used for Leases | The assumptions used in accounting for ASC 842 for the years ended December 31 are as follows: Lease term and discount rate 2020 2019 Weighted average remaining lease term (years) Operating 8.92 9.63 Finance 1.38 0.75 Weighted average discount rate Operating 7.00 % 6.99 % Finance 4.11 % 5.95 % |
Supplemental Cash Flow Information | The following table details cash paid for amounts included in the measurement of lease liabilities for the years ended December 31: Cash paid for amounts included in the measurement of lease liabilities 2020 2019 Operating cash flows from operating leases $ 2,223 $ 2,299 Operating cash flows from finance leases 19 18 Financing cash flows from finance leases 623 534 |
Stockholders' Equity and Earn_2
Stockholders' Equity and Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
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: 2020 2019 Basic weighted average shares outstanding 7,026 6,974 Dilutive effect of restricted stock awards 31 33 Diluted weighted average shares outstanding 7,057 7,007 Basic earnings per share $ 2.11 $ 5.68 Diluted earnings per share $ 2.10 $ 5.66 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense (Benefit) | The components of income (loss) before income tax provision (benefit) and the income tax provision (benefit) for the years ended December 31 are as follows: 2020 2019 Income (loss) before income tax provision (benefit) Domestic $ 13,990 $ 40,742 Foreign 268 2,657 $ 14,258 $ 43,399 Income tax provision (benefit) Current income tax provision (benefit): Federal $ (7,859) $ (6,473) State (408) 939 Foreign 215 603 Total current (8,052) (4,931) Deferred income tax provision: Federal 7,847 8,125 State (330) 573 Total deferred 7,517 8,698 $ (535) $ 3,767 |
Effective Income Tax Rate Reconciliation | A reconciliation of the federal statutory and effective income tax rate for the years ended December 31 is as follows: 2020 2019 Income before income tax provision $ 14,258 $ 43,399 Statutory taxes at 21.0% $ 2,994 $ 9,114 State and local income taxes (626) 1,129 Non-deductible expenses 426 736 Percentage depletion (3,744) (4,451) R&D and other federal credits (367) (255) Settlements and uncertain tax positions 6,286 (2,377) Coronavirus Aid, Relief, and Economic Security ("CARES") Act - carryback rate differential (4,741) — Other, net (763) (129) Income tax provision $ (535) $ 3,767 Effective income tax rate (3.8) % 8.7 % |
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 between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows: December 31 2020 2019 Deferred tax assets Lease liabilities $ 27,800 $ 30,875 Tax carryforwards 17,756 16,305 Inventories 3,742 1,704 Accrued liabilities 10,160 10,020 Employee benefits 2,747 4,853 Land valuation adjustment 5,536 4,304 Other 5,401 4,701 Total deferred tax assets 73,142 72,762 Less: Valuation allowance 11,549 12,296 61,593 60,466 Deferred tax liabilities Lease right-of-use assets 27,800 30,875 Depreciation and depletion 31,972 28,061 Partnership investment - development costs 11,686 9,949 Accrued pension benefits 7,685 3,919 Total deferred tax liabilities 79,143 72,804 Net deferred liability $ (17,550) $ (12,338) |
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, 2020 Net deferred tax Valuation Carryforwards State net operating loss $ 18,708 $ 14,478 2021-2040 Federal research credit 2,648 — 2034-2040 Total $ 21,356 $ 14,478 December 31, 2019 Net deferred tax Valuation Carryforwards State net operating loss $ 16,531 $ 13,668 2020-2039 Federal research credit 1,455 — 2034-2038 Federal foreign tax credit 463 463 2029 Alternative minimum tax ("AMT") credit 1,596 — (1) Total $ 20,045 $ 14,131 (1) The Tax Cuts and Jobs Act provided that AMT credits can be utilized to offset income taxes owed in tax years 2018 through 2020 with any remaining AMT credit refundable in 2021. The CARES Act revised this to allow AMT credits to be refundable in 2018 and 2019. The Company has reclassified its AMT credits to the current receivable as of December 31, 2020. |
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, 2020 and 2019. The increase in the gross unrecognized tax benefits in 2020 is primarily due to tax positions related to worthlessness losses for which the timing of deductibility is uncertain. Approximately $6.3 million and $2.3 million of the gross unrecognized tax benefits as of December 31, 2020 and 2019, 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 (1) the deferred tax asset which would be available if the position were not sustained upon audit and (2) the decrease in U.S. federal income taxes which would occur upon the recognition of the state tax benefits included herein. 2020 2019 Balance at January 1 $ 2,860 $ 1,280 Additions based on tax positions related to prior years 2,774 1,172 Decreases based on settlements with tax authorities (803) — Additions based on tax positions related to the current year 5,628 408 Balance at December 31 $ 10,459 $ 2,860 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Assumptions used in accounting for the defined benefit plan | The assumptions used in accounting for the defined benefit plans were as follows for the years ended December 31: 2020 2019 Weighted average discount rates for pension benefit obligation 2.02% - 2.36% 2.98% - 3.20% Weighted average discount rates for net periodic benefit cost 2.98% - 3.20% 4.10% - 4.20% Expected long-term rate of return on assets for net periodic benefit cost 7.00 % 7.50 % The assumptions used in accounting for the postretirement health care plans are set forth below for the years ended December 31: 2020 2019 Weighted average discount rates for benefit obligation 1.37 % 2.65 % Weighted average discount rates for net periodic benefit cost 1.37% - 2.65% 3.80 % Health care cost trend rate assumed for next year 6.25 % 6.50 % 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 2027 2025 |
Net periodic benefit income and expense for the defined benefit plan | Set forth below is a detail of the net periodic pension (income) expense for the defined benefit plans for the years ended December 31: 2020 2019 Interest cost $ 1,285 $ 1,710 Expected return on plan assets (2,435) (2,778) Amortization of actuarial loss 597 422 Amortization of prior service cost 58 58 Settlements — 873 Net periodic pension (income) expense $ (495) $ 285 Set forth below is a detail of the net periodic benefit (income) expense for the postretirement health care plans for the years ended December 31: 2020 2019 Service cost $ 21 $ 24 Interest cost 52 77 Amortization of actuarial (gain) loss (1) 8 Amortization of prior service credit (59) (80) Amortization of curtailment (31) — Net periodic benefit (income) expense $ (18) $ 29 |
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 loss (income) for the years ended December 31: 2020 2019 Current year actuarial loss (gain) $ 667 $ (1,030) Amortization of actuarial loss (597) (422) Amortization of prior service cost (58) (58) Settlements — (873) Total recognized in other comprehensive loss (income) $ 12 $ (2,383) Set forth below is a detail of other changes in plan assets and benefit obligations recognized in other comprehensive income for the years ended December 31: 2020 2019 Current year actuarial loss $ 194 $ 46 Amortization of actuarial gain (loss) 1 (8) Amortization of prior service credit 59 80 Amortization of curtailment 31 — Transfers 46 — Total recognized in other comprehensive income $ 331 $ 118 |
Changes in benefit obligations during the year and funded status of defined benefit plan | The following table sets forth the changes in the benefit obligation and the plan assets during the year and the funded status of the defined benefit plans at December 31: 2020 2019 Change in benefit obligation Projected benefit obligation at beginning of year $ 41,854 $ 42,026 Interest cost 1,285 1,710 Actuarial loss 3,996 3,121 Benefits paid (2,535) (2,391) Settlements — (2,612) Projected benefit obligation at end of year $ 44,600 $ 41,854 Accumulated benefit obligation at end of year $ 44,600 $ 41,854 Change in plan assets Fair value of plan assets at beginning of year $ 37,364 $ 34,954 Actual return on plan assets 5,763 6,930 Employer contributions 507 483 Benefits paid (2,535) (2,391) Settlements — (2,612) Fair value of plan assets at end of year $ 41,099 $ 37,364 Funded status at end of year $ (3,501) $ (4,490) Amounts recognized in the balance sheets consist of: Non-current assets $ 4,070 $ 3,079 Current liabilities (549) (606) Non-current liabilities (7,022) (6,963) $ (3,501) $ (4,490) Components of accumulated other comprehensive loss (income) consist of: Actuarial loss $ 14,022 $ 13,951 Prior service cost 761 819 Deferred taxes (3,316) (3,305) $ 11,467 $ 11,465 The following sets forth the changes in benefit obligations during the year and the funded status of the postretirement health care at December 31: 2020 2019 Change in benefit obligation Benefit obligation at beginning of year $ 2,049 $ 2,113 Service cost 21 24 Interest cost 52 77 Plan amendments 49 — Actuarial loss 145 46 Benefits paid (262) (211) Benefit obligation at end of year $ 2,054 $ 2,049 Funded status at end of year $ (2,054) $ (2,049) Amounts recognized in the balance sheets consist of: Current liabilities $ (238) $ (204) Noncurrent liabilities (1,816) (1,845) $ (2,054) $ (2,049) Components of accumulated other comprehensive loss (income) consist of: Actuarial loss $ 466 $ 227 Prior service credit (167) (259) Deferred taxes (167) (96) $ 132 $ (128) |
Future benefit payments | Future pension benefit payments expected to be paid from assets of the pension plans are: 2021 $ 2,631 2022 2,600 2023 2,676 2024 2,695 2025 2,666 2026 - 2030 12,866 $ 26,134 Future postretirement health care benefit payments expected to be paid are: 2021 239 2022 226 2023 211 2024 196 2025 171 2026 - 2030 688 $ 1,731 |
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: 2020 2019 Target Allocation U.S. equity securities 45.4 % 45.1 % 36.0% - 54.0% Non-U.S. equity securities 20.3 % 20.0 % 16.0% - 24.0% Fixed income securities 33.9 % 34.4 % 30.0% - 40.0% Money market 0.4 % 0.5 % 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 2020 2019 U.S. equity securities $ 18,640 $ 16,862 Non-U.S. equity securities 8,335 7,482 Fixed income securities 13,948 12,854 Money market 176 166 Total $ 41,099 $ 37,364 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Major Customers by Reporting Segments | The following represents the revenue attributable to each of these entities as a percentage of consolidated revenue for those years: Percentage of Consolidated Revenue Segment 2020 2019 Coal Mining customer 55 % 48 % NAMining customer 19 % 21 % Minerals Management lessee less than 10% 12 % |
Segment Reporting Information | The following tables present revenue, operating profit, depreciation expense and capital expenditures for the years ended December 31: 2020 2019 Revenues Coal Mining $ 72,088 $ 68,701 NAMining 42,392 42,823 Minerals Management 14,721 30,119 Unallocated Items 2,133 790 Eliminations (2,902) (1,443) Total $ 128,432 $ 140,990 Operating profit (loss) Coal Mining $ 25,436 $ 34,120 NAMining 1,872 (564) Minerals Management 3,493 25,721 Unallocated Items (17,256) (20,713) Eliminations (97) 256 Total $ 13,448 $ 38,820 Expenditures for property, plant and equipment and acquisition of mineral interests Coal Mining $ 14,825 $ 15,092 NAMining 13,862 8,824 Minerals Management 15,474 517 Unallocated Items 207 231 Total $ 44,368 $ 24,664 Depreciation, depletion and amortization Coal Mining $ 14,213 $ 12,409 NAMining 2,470 2,223 Minerals Management 1,308 1,362 Unallocated Items 123 246 Total $ 18,114 $ 16,240 |
Parent Company Condensed Bala_2
Parent Company Condensed Balance Sheets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheet | The condensed balance sheets of NACCO, the parent company, at December 31 are as follows: 2020 2019 ASSETS Cash and cash equivalents $ 85,365 $ 120,016 Accounts receivable from affiliates 495 515 Current intercompany accounts receivable, net — 1,255 Other current assets 20,648 10,448 Investment in subsidiaries 211,468 189,338 Property, plant and equipment, net 110 167 Other non-current assets 5,890 4,570 Total Assets $ 323,976 $ 326,309 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities $ 3,242 $ 5,257 Current intercompany accounts payable, net 2,337 — Current portion of deferred compensation — 13,465 Note payable to Bellaire 16,750 16,950 Other non-current liabilities 1,023 1,245 Stockholders’ equity 300,624 289,392 Total Liabilities and Stockholders’ Equity $ 323,976 $ 326,309 |
Unconsolidated Subsidiaries (Ta
Unconsolidated Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Condensed Financial Statements | Summarized financial information for the unconsolidated subsidiaries is as follows: 2020 2019 Statement of Operations Revenue $ 768,660 $ 734,515 Gross profit $ 69,021 $ 72,433 Income before income taxes $ 60,398 $ 65,183 Net income $ 50,933 $ 54,067 Balance Sheet Current assets $ 186,934 $ 183,848 Non-current assets $ 959,032 $ 837,477 Current liabilities $ 143,843 $ 141,132 Non-current liabilities $ 995,658 $ 875,216 |
Principles of Consolidation a_2
Principles of Consolidation and Nature of Operations (Narrative) (Details) $ in Thousands, T in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($)segmentT | Dec. 31, 2019USD ($)T | |
Long-term Purchase Commitment [Line Items] | ||
Number of operating segments | segment | 3 | |
Earnings from unconsolidated operations | $ | $ 60,203 | $ 63,883 |
Coal Mining customer | Sabine | ||
Long-term Purchase Commitment [Line Items] | ||
Historical lignite coal annual delivery | 1.9 | 2.6 |
Earnings from unconsolidated operations | $ | $ 3,900 | $ 4,600 |
Coal Mining customer | Sabine | Minimum | ||
Long-term Purchase Commitment [Line Items] | ||
Expected future lignite coal annual delivery | 1.4 | |
Coal Mining customer | Sabine | Maximum | ||
Long-term Purchase Commitment [Line Items] | ||
Expected future lignite coal annual delivery | 1.7 | |
Coal Mining customer | Caddo Creek | ||
Long-term Purchase Commitment [Line Items] | ||
Historical lignite coal annual delivery | 0.1 | 0.2 |
Coal Mining customer | Camino Real Fuels, LLC | ||
Long-term Purchase Commitment [Line Items] | ||
Historical lignite coal annual delivery | 0.3 | 1.6 |
Coal Mining customer | Falkirk | ||
Long-term Purchase Commitment [Line Items] | ||
Historical lignite coal annual delivery | 7.2 | 7.4 |
Earnings from unconsolidated operations | $ | $ 16,100 | $ 15,900 |
Coal Mining customer | Falkirk | Long-term Contract with Customer | ||
Long-term Purchase Commitment [Line Items] | ||
Historical lignite coal annual delivery | 0.3 |
Significant Accounting Polici_3
Significant Accounting Policies (Property Plant and Equipment & Intangible Assets) (Details) | 12 Months Ended |
Dec. 31, 2020 | |
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_4
Significant Accounting Policies (Royalty Interests in Oil and Natural Gas Properties) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2020 | Nov. 30, 2020 | Aug. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||||
Acquisition of mineral and royalty interest | $ 12,000 | $ 2,000 | $ 200 | $ 14,181 | $ 0 |
Significant Accounting Polici_5
Significant Accounting Policies (Long-Lived Assets) (Details) $ in Millions | Dec. 31, 2020USD ($) |
MLMC | |
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |
Long-lived assets | $ 135 |
Significant Accounting Polici_6
Significant Accounting Policies (Stock-based Compensation and Other) (Details) - Class A Common Stock - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Executives | Share-based Payment Arrangement [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) | 79,380 | 85,567 |
Class A common stock available for issuance under the plan (shares) | 335,053 | |
Compensation expense related to share awards | $ 2,000,000 | $ 4,100,000 |
Compensation expense related to share awards, net of tax | 1,600,000 | 3,300,000 |
Chairman | Restricted stock | ||
Schedule of Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amount of directors, annual retainer paid in restricted shares | 150,000 | 150,000 |
Annual non-employee directors retainer amount | $ 250,000 | 250,000 |
Non-employee directors | Share-based Payment Arrangement [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) | 33,821 | |
Compensation expense related to share awards | $ 1,000,000 | 1,100,000 |
Compensation expense related to share awards, net of tax | $ 800,000 | $ 900,000 |
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) | 42,744 | 22,258 |
Amount of directors, annual retainer paid in restricted shares | $ 100,000 | $ 95,000 |
Annual non-employee directors retainer amount | $ 162,000 | $ 155,000 |
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) | 745 | 432 |
Percentage of annual retainer that may be received in shares of Class A stock (percent) | 100.00% | |
Participant's retirement date | Executives | Share-based Payment Arrangement [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 | |
Participants retirement from board of directors | Non-employee directors | Share-based Payment Arrangement [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 | |
Minimum age of director upon retirement from board | Non-employee directors | Share-based Payment Arrangement [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 | |
Award date | Executives | Share-based Payment Arrangement [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 | |
Award date | Non-employee directors | Share-based Payment Arrangement [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 | Award date | Executives | Share-based Payment Arrangement [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 | |
Maximum | Award date | Executives | Share-based Payment Arrangement [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 |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 128,432 | $ 140,990 |
Goods transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 68,073 | 66,102 |
Services transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 60,359 | 74,888 |
Operating Segments | Coal Mining customer | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 72,088 | 68,701 |
Operating Segments | NAMining | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 42,392 | 42,823 |
Operating Segments | Minerals Management lessee | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 14,721 | 30,119 |
Unallocated Items | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2,133 | 790 |
Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ (2,902) | $ (1,443) |
Revenue Recognition (Contract B
Revenue Recognition (Contract Balances) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Trade accounts receivable, net | |
Balance, January 1, 2020 | $ 15,444 |
Balance, December 31, 2020 | 18,894 |
Increase (decrease) in accounts receivable | 3,450 |
Long-term asset | |
Balance, January 1, 2020 | 1,977 |
Balance, December 31, 2020 | 4,984 |
Increase (decrease) in long-term assets | 3,007 |
Contract liability (current) | |
Balance, January 1, 2020 | 944 |
Balance, December 31, 2020 | 941 |
Increase (decrease) in contract liability (current) | (3) |
Contract liability (long-term) | |
Balance, January 1, 2020 | 2,153 |
Balance, December 31, 2020 | 3,626 |
Increase (decrease) in contract liability (long-term) | $ 1,473 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Primary term of contract | 5 years | |
Opening contract liability | $ 900,000 | $ 900,000 |
Contract assets recognized | $ 0 |
Revenue Recognition (Remaining
Revenue Recognition (Remaining Performance Obligations) (Details) $ in Millions | Dec. 31, 2020USD ($) |
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 | $ 0.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, amount | $ 0.9 |
Remaining performance period | 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 | $ 3.1 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, amount | $ 3.1 |
Remaining performance period | 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 | $ 0.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, amount | $ 0.3 |
Remaining performance period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue expected to be recognized | $ 0.1 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, amount | $ 0.1 |
Remaining performance period | 1 year |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | ||
Coal | $ 17,695 | $ 15,700 |
Mining supplies | 29,856 | 24,765 |
Total inventories | 47,551 | 40,465 |
Inventory impairment | $ 1,973 | $ 0 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | $ 296,258 | $ 245,515 |
Less allowances for depreciation, depletion and amortization | 123,841 | 107,454 |
Property, plant and equipment, net | 172,417 | 138,061 |
Depreciation, depletion and amortization | 15,500 | 13,600 |
Coal lands and real estate | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 50,887 | 54,647 |
Mineral interests | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 14,181 | 0 |
Plant and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | $ 231,190 | $ 190,868 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Net Balance | $ 35,330 | $ 37,902 |
Amortization of intangible assets | 2,572 | 2,614 |
Expected annual amortization expense, 2022 | 3,100 | |
Coal supply agreement | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 84,200 | 84,200 |
Accumulated Amortization | (48,870) | (46,298) |
Net Balance | 35,330 | $ 37,902 |
NACoal | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Expected annual amortization expense, 2021 | 3,100 | |
Expected annual amortization expense, 2023 | 3,200 | |
Expected annual amortization expense, 2024 | 3,100 | |
Expected annual amortization expense, 2025 | $ 3,200 |
Asset Retirement Obligations (A
Asset Retirement Obligations (ARO Activity) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Carrying amount of the asset retirement obligations, balance at beginning of period | $ 36,859 | $ 37,703 |
Liabilities incurred during the period | 9,809 | 91 |
Liabilities settled during the period | (6,709) | (9,017) |
Accretion expense | 2,815 | 2,611 |
Revision of estimated cash flows | (1,042) | 5,471 |
Carrying amount of the asset retirement obligations, balance at end of period | 41,732 | 36,859 |
Operating Segments | Coal Mining customer | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Carrying amount of the asset retirement obligations, balance at beginning of period | 19,015 | 20,396 |
Liabilities incurred during the period | 9,809 | 0 |
Liabilities settled during the period | (5,977) | (8,265) |
Accretion expense | 1,793 | 1,260 |
Revision of estimated cash flows | 400 | 5,624 |
Carrying amount of the asset retirement obligations, balance at end of period | 25,040 | 19,015 |
Operating Segments | NAMining customer | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Carrying amount of the asset retirement obligations, balance at beginning of period | 604 | 485 |
Liabilities incurred during the period | 0 | 91 |
Liabilities settled during the period | 0 | 0 |
Accretion expense | 0 | 28 |
Revision of estimated cash flows | (604) | 0 |
Carrying amount of the asset retirement obligations, balance at end of period | 0 | 604 |
Unallocated Items | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Carrying amount of the asset retirement obligations, balance at beginning of period | 17,240 | 16,822 |
Liabilities incurred during the period | 0 | 0 |
Liabilities settled during the period | (732) | (752) |
Accretion expense | 1,022 | 1,323 |
Revision of estimated cash flows | (838) | (153) |
Carrying amount of the asset retirement obligations, balance at end of period | $ 16,692 | $ 17,240 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Asset retirement obligation | $ 9,809 | $ 91 |
Revision of estimated cash flows | (1,042) | 5,471 |
MLMC | ||
Segment Reporting Information [Line Items] | ||
Asset retirement obligation | 9,800 | |
Asset capitalized as a component of property, plant and equipment, net | 9,800 | |
Revision of estimated cash flows | 3,100 | |
Bellaire | ||
Segment Reporting Information [Line Items] | ||
Fair value of trust assets | 11,100 | 10,100 |
Centennial | ||
Segment Reporting Information [Line Items] | ||
Increase (decrease) in asset retirement obligation | 4,800 | 5,400 |
Escrow account | 3,800 | 2,400 |
Settlement receivable from third parties | 1,400 | |
Other long-term liabilities, contingent and noncontingent guarantee liabilities | 2,400 | |
Company transferred | 3,400 | |
Net loss on the transactions | 400 | |
Revision of estimated cash flows | $ 2,000 | |
Centennial | Surety Bond | ||
Segment Reporting Information [Line Items] | ||
Surety bonds outstanding | $ 5,800 |
Current and Long-Term Financi_3
Current and Long-Term Financing (Debt Schedule) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Current portion of borrowings outstanding | $ 2,112 | $ 795 |
Long-term portion of borrowings outstanding | 24,353 | 17,148 |
NACoal | ||
Debt Instrument [Line Items] | ||
Revolving credit agreement | 30,000 | 16,000 |
Other debt | 16,465 | 8,943 |
Total debt outstanding | 46,465 | 24,943 |
Current portion of borrowings outstanding | 22,112 | 7,795 |
Long-term portion of borrowings outstanding | 24,353 | 17,148 |
Total available borrowings, net of limitations, under revolving credit agreement | 146,951 | 148,644 |
Unused revolving credit agreement | $ 116,951 | $ 132,644 |
Weighted average stated interest rate on total borrowings | 2.30% | 5.10% |
Current and Long-Term Financi_4
Current and Long-Term Financing (Debt Maturity Schedule) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
2021 | $ 20,924 | |
2022 | 10,956 | |
2023 | 990 | |
2024 | 1,025 | |
2025 | 1,061 | |
Thereafter | 10,041 | |
Long-term debt | $ 44,997 | $ 24,300 |
Current and Long-Term Financi_5
Current and Long-Term Financing (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 15, 2026 | |
Line of Credit Facility [Line Items] | |||
Interest paid | $ 1,400,000 | $ 900,000 | |
Outstanding notes payable | 44,997,000 | 24,300,000 | |
NACoal | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility, maximum borrowing capacity | 150,000,000 | ||
Line of credit facility, amount outstanding | 30,000,000 | 16,000,000 | |
Line of credit facility, remaining borrowing capacity | 116,951,000 | 132,644,000 | |
Amount of letters of credit outstanding | $ 3,000,000 | ||
Line of credit facility, unused capacity, commitment fee percentage | 0.30% | ||
Weighted average interest rate | 1.88% | ||
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 debt to EBITDA ratio | 3 | ||
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 | Demand Note Payable to Unconsolidated Subsidiary | |||
Line of Credit Facility [Line Items] | |||
Outstanding notes payable | $ 4,400,000 | $ 2,000,000 | |
Interest rate | 0.14% | 1.68% | |
Secured Debt | Notes Payable, Maturing December 2026 And April 1, 2027 | |||
Line of Credit Facility [Line Items] | |||
Outstanding notes payable | $ 10,600,000 | $ 6,300,000 | |
Interest rate | 4.20% | ||
Secured Debt | Notes Payable, Maturing December 2026 | |||
Line of Credit Facility [Line Items] | |||
Debt instrument term | 10 years | ||
Secured Debt | Notes Payable, Maturing April 1, 2027 | |||
Line of Credit Facility [Line Items] | |||
Debt instrument term | 7 years | ||
Secured Debt | Forecast | Notes Payable, Maturing December 2026 | |||
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, 2020 | Dec. 31, 2019 |
Quoted prices in active markets for identical assets (level 1) | ||
Assets: | ||
Equity securities | $ 13,164 | $ 10,120 |
Total assets accounted for at fair value on a recurring basis | 13,164 | 10,120 |
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 | 13,164 | 10,120 |
Total assets accounted for at fair value on a recurring basis | $ 13,164 | $ 10,120 |
Fair Value Disclosure (Narrativ
Fair Value Disclosure (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain on equity securities | $ 1,226 | $ 1,545 |
Long-term debt fair value | 45,200 | 24,300 |
Long-term Debt | 44,997 | 24,300 |
Mineral Management | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-lived asset write off | 7,300 | |
Coal Mining customer | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-lived asset write off | 1,100 | |
Level 1 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain on equity securities | 100 | |
Level 1 | Fair Value, Measurements, Recurring | Reported Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment in equity securities | 2,000 | |
Level 1 | Fair Value, Measurements, Recurring | Bellaire | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain on equity securities | $ 1,200 | $ 1,500 |
Leases (Schedule of Leased Asse
Leases (Schedule of Leased Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Operating lease, assets | $ 10,324 | $ 11,398 |
Finance lease, assets | $ 1,478 | $ 544 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization |
Current liabilities | ||
Operating lease liabilities, current | $ 1,457 | $ 1,318 |
Finance lease liabilities, current | $ 1,188 | $ 558 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent | us-gaap:OtherLiabilitiesCurrent |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtAndCapitalLeaseObligationsCurrent | us-gaap:LongTermDebtAndCapitalLeaseObligationsCurrent |
Liabilities, Noncurrent | ||
Operating lease liabilities, noncurrent | $ 11,196 | $ 12,448 |
Finance lease liabilities, noncurrent | $ 280 | $ 85 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtAndCapitalLeaseObligations | us-gaap:LongTermDebtAndCapitalLeaseObligations |
Finance lease, right-of-use asset, accumulated amortization | $ 200 | $ 1,900 |
Leases (Components of Lease Exp
Leases (Components of Lease Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 2,103 | $ 2,251 |
Amortization of leased assets | 164 | 570 |
Interest on lease liabilities | 19 | 18 |
Variable lease expense | 588 | 555 |
Short-term lease expense | 260 | 298 |
Total lease expense | $ 3,134 | $ 3,692 |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Finance Leases | |
2021 | $ 1,229 |
2022 | 124 |
2023 | 102 |
2024 | 63 |
2025 | 7 |
Subsequent to 2025 | 0 |
Total minimum lease payments | 1,525 |
Amounts representing interest | 57 |
Present value of net minimum lease payments | 1,468 |
Operating Leases | |
2021 | 2,260 |
2022 | 2,181 |
2023 | 1,705 |
2024 | 1,661 |
2025 | 1,469 |
Subsequent to 2025 | 7,952 |
Total minimum lease payments | 17,228 |
Amounts representing interest | 4,575 |
Present value of net minimum lease payments | 12,653 |
Total | |
2021 | 3,489 |
2022 | 2,305 |
2023 | 1,807 |
2024 | 1,724 |
2025 | 1,476 |
Subsequent to 2025 | 7,952 |
Total minimum lease payments | $ 18,753 |
Leases (Assumptions Used in Acc
Leases (Assumptions Used in Accounting for Leases) (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating lease, weighted average remaining lease term (years) | 8 years 11 months 1 day | 9 years 7 months 17 days |
Finance lease, weighted average remaining lease term (years) | 1 year 4 months 17 days | 9 months |
Operating lease, weighted average discount rate | 7.00% | 6.99% |
Finance lease, weighted average discount rate | 4.11% | 5.95% |
Leases (Supplemental Cash Flow
Leases (Supplemental Cash Flow Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 2,223 | $ 2,299 |
Operating cash flows from finance leases | 19 | 18 |
Financing cash flows from finance leases | $ 623 | $ 534 |
Stockholders' Equity and Earn_3
Stockholders' Equity and Earnings Per Share (Textual) (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($)voteshares | Dec. 31, 2019USD ($)shares | Nov. 06, 2019USD ($) | |
Class of Stock [Line Items] | |||
Aggregate purchase price | $ | $ 1,002,000 | $ 3,010,000 | |
2019 Stock Repurchase Program | |||
Class of Stock [Line Items] | |||
Authorized amount available for repurchase | $ | $ 25,000,000 | ||
Aggregate purchase price | $ | $ 1,000,000 | $ 3,000,000 | |
Class A Common Stock | |||
Class of Stock [Line Items] | |||
Votes per share | vote | 1 | ||
Common stock, shares authorized (in shares) | 25,000,000 | ||
Treasury stock (in shares) | 2,726,017 | 2,817,714 | |
Class A Common Stock | 2019 Stock Repurchase Program | |||
Class of Stock [Line Items] | |||
Treasury stock, shares acquired (in shares) | 32,286 | 28,094 | |
Class A Common Stock | 2018 Stock Repurchase Program | |||
Class of Stock [Line Items] | |||
Treasury stock, shares acquired (in shares) | 44,476 | ||
Class B Common Stock | |||
Class of Stock [Line Items] | |||
Votes per share | vote | 10 | ||
Common stock, shares authorized (in shares) | 6,756,176 |
Stockholders' Equity and Earn_4
Stockholders' Equity and Earnings Per Share (Weighted Average Number of Shares Outstanding Reconciliation) (Details) - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | ||
Basic weighted average shares outstanding (in shares) | 7,026 | 6,974 |
Dilutive effect of restricted stock awards (in shares) | 31 | 33 |
Diluted weighted average shares outstanding (in shares) | 7,057 | 7,007 |
Earnings per share: | ||
Basic earnings per share (USD per share) | $ 2.11 | $ 5.68 |
Diluted earnings per share (USD per share) | $ 2.10 | $ 5.66 |
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, 2020 | Dec. 31, 2019 | |
Income (loss) before income tax provision (benefit) | ||
Domestic | $ 13,990 | $ 40,742 |
Foreign | 268 | 2,657 |
Income before income tax (benefit) provision | 14,258 | 43,399 |
Current income tax provision (benefit): | ||
Federal | (7,859) | (6,473) |
State | (408) | 939 |
Foreign | 215 | 603 |
Total current | (8,052) | (4,931) |
Deferred income tax provision: | ||
Federal | 7,847 | 8,125 |
State | (330) | 573 |
Total deferred | 7,517 | 8,698 |
Income tax provision | $ (535) | $ 3,767 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Income tax payments | $ 400 | $ 1,000 |
Income tax refunds | 4,200 | 2,600 |
Income tax (benefit) provision | (535) | 3,767 |
Income before income tax provision | $ 14,258 | $ 43,399 |
Effective income tax rate | (3.80%) | 8.70% |
Discrete tax charges | $ 7,300 | |
Discrete tax benefits | $ 4,700 | $ 2,500 |
Annual effective income tax rate, excluding discrete items | 22.00% | 14.50% |
Change in income before income tax | $ 29,100 | |
Gross unrecognized tax benefits | 6,300 | $ 2,300 |
Net (benefit) expense in interest and penalties related to uncertain tax positions | 100 | 100 |
Interest and penalties accrued | $ 100 | $ 100 |
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, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Income before income tax provision | $ 14,258 | $ 43,399 |
Statutory taxes at 21.0% | 2,994 | 9,114 |
State and local income taxes | (626) | 1,129 |
Non-deductible expenses | 426 | 736 |
Percentage depletion | (3,744) | (4,451) |
R&D and other federal credits | (367) | (255) |
Settlements and uncertain tax positions | 6,286 | (2,377) |
Coronavirus Aid, Relief, and Economic Security ("CARES") Act - carryback rate differential | (4,741) | 0 |
Other, net | (763) | (129) |
Income tax provision | $ (535) | $ 3,767 |
Effective income tax rate | (3.80%) | 8.70% |
Income Taxes (Summary of the To
Income Taxes (Summary of the Total Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets | ||
Lease liabilities | $ 27,800 | $ 30,875 |
Tax carryforwards | 17,756 | 16,305 |
Inventories | 3,742 | 1,704 |
Accrued liabilities | 10,160 | 10,020 |
Employee benefits | 2,747 | 4,853 |
Land valuation adjustment | 5,536 | 4,304 |
Other | 5,401 | 4,701 |
Total deferred tax assets | 73,142 | 72,762 |
Less: Valuation allowance | 11,549 | 12,296 |
Deferred tax assets, net of valuation allowance | 61,593 | 60,466 |
Deferred tax liabilities | ||
Lease right-of-use assets | 27,800 | 30,875 |
Depreciation and depletion | 31,972 | 28,061 |
Partnership investment - development costs | 11,686 | 9,949 |
Accrued pension benefits | 7,685 | 3,919 |
Total deferred tax liabilities | 79,143 | 72,804 |
Net deferred liability | $ (17,550) | $ (12,338) |
Income Taxes (Summary of Operat
Income Taxes (Summary of Operating Loss Carryforwards and Tax Credit Carryforwards) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Operating Loss Carryforwards [Line Items] | ||
Net deferred tax asset, net operating loss | $ 17,756 | $ 16,305 |
Total net deferred tax asset | 21,356 | 20,045 |
Total valuation allowance | 14,478 | 14,131 |
State and local jurisdiction | ||
Operating Loss Carryforwards [Line Items] | ||
Net deferred tax asset, net operating loss | 18,708 | 16,531 |
Valuation allowance, net operating loss | 14,478 | 13,668 |
Valuation allowance, tax credit | 0 | |
Net deferred tax asset, alternative minimum tax credit | 1,596 | |
Federal tax authority | ||
Operating Loss Carryforwards [Line Items] | ||
Net deferred tax asset, tax credit carryforwards, research | 2,648 | 1,455 |
Valuation allowance, tax credit | $ 0 | 0 |
Foreign tax authority | ||
Operating Loss Carryforwards [Line Items] | ||
Valuation allowance, tax credit | 463 | |
Net deferred tax asset, federal foreign tax credit | $ 463 |
Income Taxes (Gross Unrecognize
Income Taxes (Gross Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ||
Balance at beginning of period | $ 2,860 | $ 1,280 |
Additions based on tax positions related to prior years | 2,774 | 1,172 |
Decreases based on settlements with tax authorities | (803) | 0 |
Additions based on tax positions related to the current year | 5,628 | 408 |
Balance at end of period | $ 10,459 | $ 2,860 |
Retirement Benefit Plans (Narra
Retirement Benefit Plans (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined contribution plan, total costs | $ 2,800 | $ 2,700 |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Settlement charge | $ 0 | $ 873 |
Retirement Benefit Plans (Assum
Retirement Benefit Plans (Assumptions Used in Accounting for Defined Benefit Plans) (Details) - Pension Plan | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Expected long-term rate of return on assets for net periodic benefit cost | 7.00% | 7.50% |
Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average discount rates for pension benefit obligation | 2.02% | 2.98% |
Weighted average discount rates for net periodic benefit cost | 2.98% | 4.10% |
Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average discount rates for pension benefit obligation | 2.36% | 3.20% |
Weighted average discount rates for net periodic benefit cost | 3.20% | 4.20% |
Retirement Benefit Plans (Net P
Retirement Benefit Plans (Net Periodic Benefit Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | $ 1,285 | $ 1,710 |
Expected return on plan assets | (2,435) | (2,778) |
Amortization of actuarial (gain) loss | 597 | 422 |
Amortization of prior service cost | 58 | 58 |
Settlements | 0 | 873 |
Net periodic pension (income) expense | (495) | 285 |
Other Postretirement Benefits Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 21 | 24 |
Interest cost | 52 | 77 |
Amortization of actuarial (gain) loss | (1) | 8 |
Amortization of prior service cost | (59) | (80) |
Amortization of curtailment | (31) | 0 |
Net periodic pension (income) expense | $ (18) | $ 29 |
Retirement Benefit Plans (Other
Retirement Benefit Plans (Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss (Income)) (Details) - Pension Plan - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Current year actuarial loss (gain) | $ 667 | $ (1,030) |
Amortization of actuarial loss | (597) | (422) |
Amortization of prior service cost | (58) | (58) |
Settlements | 0 | (873) |
Total recognized in other comprehensive loss (income) | $ 12 | $ (2,383) |
Retirement Benefit Plans (Oblig
Retirement Benefit Plans (Obligation and Funded Status) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Amounts recognized in the balance sheets consist of: | ||
Non-current liabilities | $ (8,838) | $ (8,807) |
Pension Plan | ||
Change in benefit obligation | ||
Projected benefit obligation at beginning of year | 41,854 | 42,026 |
Interest cost | 1,285 | 1,710 |
Actuarial loss | 3,996 | 3,121 |
Benefits paid | (2,535) | (2,391) |
Settlements | 0 | (2,612) |
Projected benefit obligation at end of year | 44,600 | 41,854 |
Accumulated benefit obligation at end of year | 44,600 | 41,854 |
Change in plan assets | ||
Fair value of plan assets at beginning of year | 37,364 | 34,954 |
Actual return on plan assets | 5,763 | 6,930 |
Employer contributions | 507 | 483 |
Benefits paid | (2,535) | (2,391) |
Settlements | 0 | (2,612) |
Fair value of plan assets at end of year | 41,099 | 37,364 |
Funded status at end of year | (3,501) | (4,490) |
Amounts recognized in the balance sheets consist of: | ||
Non-current assets | 4,070 | 3,079 |
Current liabilities | (549) | (606) |
Non-current liabilities | (7,022) | (6,963) |
Amount recognized in the balance sheets | (3,501) | (4,490) |
Components of accumulated other comprehensive loss (income) consist of: | ||
Actuarial loss | 14,022 | 13,951 |
Prior service cost | 761 | 819 |
Deferred taxes | (3,316) | (3,305) |
Accumulated other comprehensive (loss) income | 11,467 | 11,465 |
Other Postretirement Benefits Plan | ||
Change in benefit obligation | ||
Projected benefit obligation at beginning of year | 2,049 | 2,113 |
Service cost | 21 | 24 |
Interest cost | 52 | 77 |
Plan amendments | 49 | 0 |
Actuarial loss | 145 | 46 |
Benefits paid | (262) | (211) |
Projected benefit obligation at end of year | 2,054 | 2,049 |
Change in plan assets | ||
Funded status at end of year | (2,054) | (2,049) |
Amounts recognized in the balance sheets consist of: | ||
Current liabilities | (238) | (204) |
Non-current liabilities | (1,816) | (1,845) |
Amount recognized in the balance sheets | (2,054) | (2,049) |
Components of accumulated other comprehensive loss (income) consist of: | ||
Actuarial loss | 466 | 227 |
Prior service cost | (167) | (259) |
Deferred taxes | (167) | (96) |
Accumulated other comprehensive (loss) income | $ 132 | $ (128) |
Retirement Benefit Plans (Sched
Retirement Benefit Plans (Schedule of Expected Benefit Payments) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2021 | $ 2,631 |
2022 | 2,600 |
2023 | 2,676 |
2024 | 2,695 |
2025 | 2,666 |
2026 - 2030 | 12,866 |
Total | 26,134 |
Other Postretirement Benefits Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2021 | 239 |
2022 | 226 |
2023 | 211 |
2024 | 196 |
2025 | 171 |
2026 - 2030 | 688 |
Total | $ 1,731 |
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, 2020 | Dec. 31, 2019 |
U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 45.40% | 45.10% |
Non-U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 20.30% | 20.00% |
Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 33.90% | 34.40% |
Money market | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 0.40% | 0.50% |
Minimum | U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation percentage | 36.00% | |
Minimum | Non-U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation percentage | 16.00% | |
Minimum | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation percentage | 30.00% | |
Minimum | Money market | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation percentage | 0.00% | |
Maximum | U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation percentage | 54.00% | |
Maximum | Non-U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation percentage | 24.00% | |
Maximum | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation percentage | 40.00% | |
Maximum | Money market | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation percentage | 10.00% |
Retirement Benefit Plans (Fair
Retirement Benefit Plans (Fair Value Hierarchy) (Details) - Pension Plan - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of each major category of U.S. plan assets | $ 41,099 | $ 37,364 | $ 34,954 |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of each major category of U.S. plan assets | 41,099 | 37,364 | |
Level 1 | U.S. equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of each major category of U.S. plan assets | 18,640 | 16,862 | |
Level 1 | Non-U.S. equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of each major category of U.S. plan assets | 8,335 | 7,482 | |
Level 1 | Fixed income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of each major category of U.S. plan assets | 13,948 | 12,854 | |
Level 1 | Money market | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of each major category of U.S. plan assets | $ 176 | $ 166 |
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, 2020 | Dec. 31, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Weighted average discount rates for pension benefit obligation | 1.37% | 2.65% |
Weighted average discount rates for net periodic benefit cost | 3.80% | |
Health care cost trend rate assumed for next year | 6.25% | 6.50% |
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 | 2027 | 2025 |
Minimum | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Weighted average discount rates for net periodic benefit cost | 1.37% | |
Maximum | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Weighted average discount rates for net periodic benefit cost | 2.65% |
Retirement Benefit Plans (Oth_2
Retirement Benefit Plans (Other Changes in Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income) (Details) - Other Postretirement Benefits Plan - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Current year actuarial loss | $ 194 | $ 46 |
Amortization of actuarial gain (loss) | 1 | (8) |
Amortization of prior service credit | 59 | 80 |
Amortization of curtailment | 31 | 0 |
Transfers | 46 | 0 |
Total recognized in other comprehensive loss (income) | $ 331 | $ 118 |
Business Segments (Concentratio
Business Segments (Concentration Risk) (Details) - Percentage of Consolidated Revenue - Customer concentration risk | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Coal Mining customer | Coal Mining customer | ||
Segment Reporting Information [Line Items] | ||
Percentage of Consolidated Revenue | 55.00% | 48.00% |
NAMining customer | NAMining customer | ||
Segment Reporting Information [Line Items] | ||
Percentage of Consolidated Revenue | 19.00% | 21.00% |
Minerals Management lessee | Minerals Management lessee (less than in 2020) | ||
Segment Reporting Information [Line Items] | ||
Percentage of Consolidated Revenue | 10.00% | 12.00% |
Business Segments (Textual) (De
Business Segments (Textual) (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Coal Mining customer | Customer concentration risk | Earnings of Unconsolidated Mines | Top Two Customers - Basin Electric and GRE | |
Segment Reporting Information [Line Items] | |
Revenue from major customer, percentage | 60.00% |
Business Segments (Details)
Business Segments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 128,432 | $ 140,990 |
Operating profit (loss) | 13,448 | 38,820 |
Expenditures for property, plant and equipment and acquisition of mineral interests | 44,368 | 24,664 |
Depreciation, depletion and amortization | 18,114 | 16,240 |
Operating Segments | Coal Mining customer | ||
Segment Reporting Information [Line Items] | ||
Revenues | 72,088 | 68,701 |
Operating profit (loss) | 25,436 | 34,120 |
Expenditures for property, plant and equipment and acquisition of mineral interests | 14,825 | 15,092 |
Depreciation, depletion and amortization | 14,213 | 12,409 |
Operating Segments | NAMining customer | ||
Segment Reporting Information [Line Items] | ||
Revenues | 42,392 | 42,823 |
Operating profit (loss) | 1,872 | (564) |
Expenditures for property, plant and equipment and acquisition of mineral interests | 13,862 | 8,824 |
Depreciation, depletion and amortization | 2,470 | 2,223 |
Operating Segments | Minerals Management | ||
Segment Reporting Information [Line Items] | ||
Revenues | 14,721 | 30,119 |
Operating profit (loss) | 3,493 | 25,721 |
Expenditures for property, plant and equipment and acquisition of mineral interests | 15,474 | 517 |
Depreciation, depletion and amortization | 1,308 | 1,362 |
Unallocated Items | ||
Segment Reporting Information [Line Items] | ||
Revenues | 2,133 | 790 |
Operating profit (loss) | (17,256) | (20,713) |
Expenditures for property, plant and equipment and acquisition of mineral interests | 207 | 231 |
Depreciation, depletion and amortization | 123 | 246 |
Eliminations | ||
Segment Reporting Information [Line Items] | ||
Revenues | (2,902) | (1,443) |
Operating profit (loss) | $ (97) | $ 256 |
Parent Company Condensed Bala_3
Parent Company Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | |||
Cash and cash equivalents | $ 88,450 | $ 122,892 | |
Accounts receivable from affiliates | 4,764 | 6,411 | |
Other non-current assets | 40,984 | 32,133 | |
Total assets | 476,179 | 444,773 | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||
Current liabilities | 52,257 | 61,966 | |
Deferred compensation | 0 | 13,465 | |
Other non-current liabilities | 12,060 | 6,188 | |
Stockholders’ equity | 300,624 | 289,392 | $ 250,704 |
Total liabilities and equity | 476,179 | 444,773 | |
Parent Company | |||
ASSETS | |||
Cash and cash equivalents | 85,365 | 120,016 | |
Accounts receivable from affiliates | 495 | 515 | |
Current intercompany accounts receivable, net | 0 | 1,255 | |
Other current assets | 20,648 | 10,448 | |
Investment in subsidiaries | 211,468 | 189,338 | |
Property, plant and equipment, net | 110 | 167 | |
Other non-current assets | 5,890 | 4,570 | |
Total assets | 323,976 | 326,309 | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||
Current liabilities | 3,242 | 5,257 | |
Current intercompany accounts payable, net | 2,337 | 0 | |
Deferred compensation | 0 | 13,465 | |
Other non-current liabilities | 1,023 | 1,245 | |
Stockholders’ equity | 300,624 | 289,392 | |
Total liabilities and equity | 323,976 | 326,309 | |
Restricted investments | 1,700 | ||
Unrestricted investment | 700 | ||
Parent Company | Bellaire | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||
Note payable to Bellaire | $ 16,750 | $ 16,950 |
Unconsolidated Subsidiaries (De
Unconsolidated Subsidiaries (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||
Investment in unconsolidated subsidiaries | $ 28,978 | $ 24,611 |
Statement of Operations | ||
Revenues | 128,432 | 140,990 |
Gross profit | 16,969 | 31,128 |
Net income | 14,793 | 39,632 |
Balance Sheet | ||
Current assets | 188,146 | 200,668 |
Current liabilities | 52,257 | 61,966 |
Unconsolidated mines | NACoal | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment in unconsolidated subsidiaries | 29,000 | 24,600 |
Maximum risk of loss | 6,500 | 5,000 |
Balance Sheet | ||
Dividends from unconsolidated mines | 49,700 | 53,500 |
Unconsolidated mines | NACoal | Variable Interest Entity, Not Primary Beneficiary | ||
Statement of Operations | ||
Revenues | 768,660 | 734,515 |
Gross profit | 69,021 | 72,433 |
Income before income taxes | 60,398 | 65,183 |
Net income | 50,933 | 54,067 |
Balance Sheet | ||
Current assets | 186,934 | 183,848 |
Assets, Noncurrent | 959,032 | 837,477 |
Current liabilities | 143,843 | 141,132 |
Non-current liabilities | $ 995,658 | $ 875,216 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Jones Day | ||
Related Party Transaction [Line Items] | ||
Legal services | $ 1 | $ 1 |
Mr. Rankin | ||
Related Party Transaction [Line Items] | ||
Legal services | $ 0.5 | $ 0.5 |
Other Events and Transactions (
Other Events and Transactions (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2020USD ($) | |
Other Events And Transactions [Abstract] | |
General and administrative charges | $ 1.8 |
Unpaid accrued payroll | $ 1.6 |
Schedule I - Condensed Financ_2
Schedule I - Condensed Financial Information of the Parent (Condensed Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | |||
Cash and cash equivalents | $ 88,450 | $ 122,892 | |
Accounts receivable from affiliates | 4,764 | 6,411 | |
Other non-current assets | 40,984 | 32,133 | |
Total assets | 476,179 | 444,773 | |
LIABILITIES AND EQUITY | |||
Current liabilities | 52,257 | 61,966 | |
Current portion of deferred compensation | 0 | 13,465 | |
Other long-term liabilities | 12,060 | 6,188 | |
Stockholders’ equity | 300,624 | 289,392 | $ 250,704 |
Total liabilities and equity | 476,179 | 444,773 | |
Parent Company | |||
ASSETS | |||
Cash and cash equivalents | 85,365 | 120,016 | |
Accounts receivable from affiliates | 495 | 515 | |
Current intercompany accounts receivable, net | 0 | 1,255 | |
Other current assets | 20,648 | 10,448 | |
Investment in subsidiaries | 211,468 | 189,338 | |
Property, plant and equipment, net | 110 | 167 | |
Other non-current assets | 5,890 | 4,570 | |
Total assets | 323,976 | 326,309 | |
LIABILITIES AND EQUITY | |||
Current liabilities | 3,242 | 5,257 | |
Current intercompany accounts payable, net | 2,337 | 0 | |
Current portion of deferred compensation | 0 | 13,465 | |
Other long-term liabilities | 1,023 | 1,245 | |
Stockholders’ equity | 300,624 | 289,392 | |
Total liabilities and equity | 323,976 | 326,309 | |
Parent Company | Bellaire | |||
LIABILITIES AND EQUITY | |||
Note payable to Bellaire | $ 16,750 | $ 16,950 |
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, 2020 | Dec. 31, 2019 | |
Condensed Financial Statements, Captions [Line Items] | ||
Other, net | $ (1,140) | $ (527) |
Other (income) expense | (810) | (4,579) |
Administrative and general expenses | 53,062 | 53,783 |
Income tax provision (benefit) | (535) | 3,767 |
Net income | 14,793 | 39,632 |
Current period pension and postretirement plan adjustment, net of $213 tax benefit and $226 tax expense in 2020 and 2019, respectively | (697) | 758 |
Pension settlement, net of $202 tax benefit in 2019 | 0 | 671 |
Reclassification of pension and postretirement adjustments into earnings, net of $129 and $90 tax benefit in 2020 and 2019, respectively | 435 | 845 |
Total other comprehensive income | (262) | 2,274 |
Comprehensive income | 14,531 | 41,906 |
Current period pension and postretirement plan adjustment, tax (benefit) expense | (213) | 226 |
Pension settlement, tax | 202 | |
Reclassification of pension and post retirement adjustments into earnings, tax benefit | 129 | 90 |
Parent Company | ||
Condensed Financial Statements, Captions [Line Items] | ||
Intercompany interest expense | 1,178 | 1,190 |
Other, net | (1,003) | (1,796) |
Other (income) expense | 175 | (606) |
Administrative and general expenses | 5,658 | 6,403 |
Loss before income taxes | (5,833) | (5,797) |
Income tax provision (benefit) | 2,419 | (3,819) |
Net loss before equity in earnings of subsidiaries | (8,252) | (1,978) |
Equity in earnings of subsidiaries | (23,045) | (41,610) |
Net income | 14,793 | 39,632 |
Current period pension and postretirement plan adjustment, net of $213 tax benefit and $226 tax expense in 2020 and 2019, respectively | (697) | 758 |
Pension settlement, net of $202 tax benefit in 2019 | 0 | 671 |
Reclassification of pension and postretirement adjustments into earnings, net of $129 and $90 tax benefit in 2020 and 2019, respectively | 435 | 845 |
Total other comprehensive income | (262) | 2,274 |
Comprehensive income | 14,531 | 41,906 |
Current period pension and postretirement plan adjustment, tax (benefit) expense | (213) | 226 |
Pension settlement, tax | 202 | |
Reclassification of pension and post retirement adjustments into earnings, tax benefit | $ 129 | $ 90 |
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, 2020 | Dec. 31, 2019 | |
Operating Activities | ||
Net cash (used for) provided by operating activities | $ (2,486) | $ 52,784 |
Investing Activities | ||
Expenditures for property, plant and equipment | (30,187) | (24,664) |
Net cash used for investing activities | (45,984) | (20,262) |
Financing Activities | ||
Purchase of treasury shares | (1,002) | (3,010) |
Cash dividends paid | (5,375) | (5,132) |
Other | 332 | (3) |
Net cash provided by financing activities | 14,028 | 5,113 |
Cash and Cash Equivalents | ||
Total (decrease) increase for the year | (34,442) | 37,635 |
Balance at the beginning of the year | 122,892 | 85,257 |
Balance at the end of the year | 88,450 | 122,892 |
Parent Company | ||
Operating Activities | ||
Net income | 14,793 | 39,632 |
Equity in earnings of subsidiaries | 23,045 | 41,610 |
Net loss before equity in earnings of subsidiaries | (8,252) | (1,978) |
Net changes related to operating activities | (22,822) | 3,671 |
Net cash (used for) provided by operating activities | (31,074) | 1,693 |
Investing Activities | ||
Expenditures for property, plant and equipment | 0 | 0 |
Net cash used for investing activities | 0 | 0 |
Financing Activities | ||
Dividends received from subsidiaries | 3,000 | 42,000 |
Notes payable to Bellaire | (200) | (350) |
Purchase of treasury shares | (1,002) | (3,010) |
Cash dividends paid | (5,375) | (5,132) |
Other | 0 | (4) |
Net cash provided by financing activities | (3,577) | 33,504 |
Cash and Cash Equivalents | ||
Total (decrease) increase for the year | (34,651) | 35,197 |
Balance at the beginning of the year | 120,016 | 84,819 |
Balance at the end of the year | $ 85,365 | $ 120,016 |
Schedule I - Condensed Financ_5
Schedule I - Condensed Financial Information of the Parent (Textual) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Condensed Financial Statements, Captions [Line Items] | ||
Cash and cash equivalents | $ 88,450 | $ 122,892 |
Parent Company | ||
Condensed Financial Statements, Captions [Line Items] | ||
Unrestricted investment | 700 | |
Cash and cash equivalents | $ 85,365 | $ 120,016 |
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, 2020 | Dec. 31, 2019 | |
Valuation allowances and reserves [Roll Forward] | ||
Balance at Beginning of Period | $ 12,296 | $ 14,219 |
Charged to Costs and Expenses | (747) | (1,923) |
Charged to Other Accounts — Describe | 0 | 0 |
Deductions — Describe | 0 | 0 |
Balance at End of Period | $ 11,549 | $ 12,296 |