Business Segments

Hamilton Beach Holding is an operating holding company with HBB and KC as reportable segments. See Note 1 for a discussion of the Company’s industries. Financial information for each of Hamilton Beach Holding’s reportable segments is presented in the following table. The accounting policies of the reportable segments are described in Note 2. The line “Eliminations” in the revenues section eliminates revenues from HBB sales to KC. The amounts of these revenues are based on current market prices of similar third-party transactions. No other sales transactions occur among reportable segments. The line “Eliminations” in the total assets section primarily represents Hamilton Beach Holding's deferred tax asset representing alternative minimum tax credits that have not been allocated to segments.

Wal-Mart accounted for approximately 32% of HBB’s revenues in 2017, 2016, and 2015. Amazon accounted for approximately 12%, 10%, and 8% of HBB's revenues in 2017, 2016, and 2015 respectively. HBB’s five largest customers accounted for approximately 55%, 54%, and 52% of HBB’s revenues for the years ended December 31, 2017, 2016, and 2015, respectively. The loss of or significant reduction in sales to any key customer could result in significant decreases in HBB’s revenue and profitability and an inability to sustain or grow its business.



	2017			2016			2015
Revenues from external customers
HBB	$	615,071		$	605,170		$	620,977
KC	128,520			144,351			150,988
Eliminations	(2,842		)	(4,164		)	(4,103		)
Total	$	740,749		$	745,357		$	767,862

Operating profit
HBB	$	41,487		$	43,033		$	34,801
KC	(3,418		)	376			165
Eliminations	66			(35		)	588
Total	$	38,135		$	43,374		$	35,554



	2017		2016			2015
Total assets
HBB	$	281,004	$	257,168
KC	43,361		54,004
Eliminations	1,868		(339		)
Total	$	326,233	$	310,833
Depreciation and amortization
HBB	$	4,072	$	4,681		$	4,750
KC	1,539		1,545			1,558
Total	$	5,611	$	6,226		$	6,308
Capital expenditures, excluding acquisitions of business
HBB	$	6,198	$	4,814		$	4,365
KC	1,176		1,188			1,806
Total	$	7,374	$	6,002		$	6,171

Data By Geographic Region

No single country outside of the U.S. comprised 10% or more of the Company's revenues from unaffiliated customers.



	United States		Other		Consolidated
2017
Revenues from unaffiliated customers, based on the customers’ location	$	608,490	$	132,259	$	740,749
Property, plant and equipment, net	$	14,078	$	5,005	$	19,083
2016
Revenues from unaffiliated customers, based on the customers’ location	$	626,367	$	118,990	$	745,357
Property, plant and equipment, net	$	10,861	$	5,082	$	15,943
2015
Revenues from unaffiliated customers, based on the customers’ location	$	647,073	$	120,789	$	767,862
Property, plant and equipment, net	$	9,273	$	5,564	$	14,837