(Mark One) | ||
þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the quarterly period ended June 30, 2018 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the transition period from to |
HAMILTON BEACH BRANDS HOLDING COMPANY | ||||
(Exact name of registrant as specified in its charter) | ||||
DELAWARE | 31-1236686 | |||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||
4421 WATERFRONT DR. GLEN ALLEN, VA | 23060 | |||
(Address of principal executive offices) | (Zip code) | |||
(804) 273-9777 | ||||
(Registrant's telephone number, including area code) | ||||
N/A | ||||
(Former name, former address and former fiscal year, if changed since last report) |
Large accelerated filer o | Accelerated filer o | Non-accelerated filer þ | Smaller reporting company o | Emerging growth company þ | ||||
(Do not check if a smaller reporting company) |
Page Number | |||||
JUNE 30 2018 | DECEMBER 31 2017 | JUNE 30 2017 | |||||||||
(In thousands, except share data) | |||||||||||
ASSETS | |||||||||||
Cash and cash equivalents | $ | 1,962 | $ | 10,906 | $ | 5,328 | |||||
Accounts receivable, net | 83,876 | 114,100 | 69,857 | ||||||||
Inventories | 165,237 | 134,744 | 135,397 | ||||||||
Prepaid expenses and other | 14,743 | 8,835 | 10,019 | ||||||||
Total current assets | 265,818 | 268,585 | 220,601 | ||||||||
Property, plant and equipment, net | 21,839 | 19,083 | 16,550 | ||||||||
Goodwill | 6,253 | 6,253 | 6,253 | ||||||||
Other intangibles, net | 5,209 | 5,900 | 6,590 | ||||||||
Deferred income taxes | 10,894 | 12,825 | 15,477 | ||||||||
Deferred costs | 9,973 | 10,466 | 8,609 | ||||||||
Other non-current assets | 3,282 | 3,121 | 3,102 | ||||||||
Total assets | $ | 323,268 | $ | 326,233 | $ | 277,182 | |||||
LIABILITIES AND EQUITY | |||||||||||
Accounts payable | $ | 103,461 | $ | 143,012 | $ | 98,480 | |||||
Accounts payable to NACCO Industries, Inc. | 2,769 | 9,189 | 1,969 | ||||||||
Revolving credit agreements | 75,476 | 31,346 | 22,276 | ||||||||
Accrued payroll | 12,531 | 17,302 | 10,998 | ||||||||
Accrued cooperative advertising | 4,532 | 11,418 | 6,898 | ||||||||
Other current liabilities | 24,215 | 18,679 | 14,133 | ||||||||
Total current liabilities | 222,984 | 230,946 | 154,754 | ||||||||
Revolving credit agreements | 30,000 | 20,000 | 32,000 | ||||||||
Other long-term liabilities | 24,274 | 28,879 | 27,325 | ||||||||
Total liabilities | 277,258 | 279,825 | 214,079 | ||||||||
Stockholders' equity | |||||||||||
Common stock, par value $1.00 per share, 1,000 shares authorized, 100 shares outstanding as of June 30, 2017 | — | — | — | ||||||||
Preferred stock, par value $0.01 per share, 5 million shares authorized, no shares outstanding as of June 30, 2018, December 31, 2017, and June 30, 2017 | — | — | — | ||||||||
Class A Common stock, par value $0.01 per share, 70 million shares authorized, 9,218,372 shares outstanding, (8,865,207 shares outstanding as of December 31, 2017 and no shares outstanding as of June 30, 2017) | 92 | 88 | — | ||||||||
Class B Common stock, par value $0.01 per share, convertible into Class A on a one-for-one basis, 30 million shares authorized, 4,476,796 shares outstanding, (4,808,225 shares outstanding as of December 31, 2017 and no shares outstanding as of June 30, 2017) | 45 | 48 | — | ||||||||
Capital in excess of par value | 50,721 | 47,773 | 75,031 | ||||||||
Retained earnings | 10,152 | 12,603 | 3,619 | ||||||||
Accumulated other comprehensive loss | (15,000 | ) | (14,104 | ) | (15,547 | ) | |||||
Total stockholders' equity | 46,010 | 46,408 | 63,103 | ||||||||
Total liabilities and equity | $ | 323,268 | $ | 326,233 | $ | 277,182 |
THREE MONTHS ENDED | SIX MONTHS ENDED | ||||||||||||||
JUNE 30 | JUNE 30 | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
Revenues | $ | 157,941 | $ | 152,976 | $ | 304,574 | $ | 293,258 | |||||||
Cost of sales | 117,088 | 114,145 | 225,928 | 219,850 | |||||||||||
Gross profit | 40,853 | 38,831 | 78,646 | 73,408 | |||||||||||
Operating expenses | |||||||||||||||
Selling, general and administrative expenses | 39,914 | 36,322 | 77,699 | 72,992 | |||||||||||
Amortization of intangible assets | 346 | 345 | 691 | 690 | |||||||||||
40,260 | 36,667 | 78,390 | 73,682 | ||||||||||||
Operating profit (loss) | 593 | 2,164 | 256 | (274 | ) | ||||||||||
Other (income) expense | |||||||||||||||
Interest expense | 926 | 462 | 1,470 | 877 | |||||||||||
Other, net, including interest income | 859 | (297 | ) | 542 | (979 | ) | |||||||||
1,785 | 165 | 2,012 | (102 | ) | |||||||||||
Income (loss) before income tax provision (benefit) | (1,192 | ) | 1,999 | (1,756 | ) | (172 | ) | ||||||||
Income tax provision (benefit) | (318 | ) | 760 | (464 | ) | (53 | ) | ||||||||
Net income (loss) | $ | (874 | ) | $ | 1,239 | $ | (1,292 | ) | $ | (119 | ) | ||||
Basic and diluted earnings (loss) per share | $ | (0.06 | ) | $ | 0.09 | $ | (0.09 | ) | $ | (0.01 | ) | ||||
Basic and diluted weighted average shares outstanding | 13,695 | 13,673 | 13,689 | 13,673 | |||||||||||
Cash Dividends on Class A Common and Class B Common per share | $ | 0.085 | $ | — | $ | 0.170 | $ | — |
THREE MONTHS ENDED JUNE 30 | SIX MONTHS ENDED JUNE 30 | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(In thousands) | |||||||||||||||
Net income (loss) | $ | (874 | ) | $ | 1,239 | $ | (1,292 | ) | $ | (119 | ) | ||||
Foreign currency translation adjustment | (892 | ) | 672 | 25 | 1,743 | ||||||||||
Loss on intra-entity foreign currency transactions, net of $94 tax benefit in the three and six months ended June 30, 2018. | (1,013 | ) | — | (1,013 | ) | — | |||||||||
Current period cash flow hedging activity, net of $160 and $250 tax expense in the three and six months ended June 30, 2018, respectively, and $230 and $369 tax benefit in the three and six months ended June 30, 2017, respectively. | 464 | (522 | ) | 753 | (859 | ) | |||||||||
Reclassification of hedging activities into earnings, net of $13 and $77 tax benefit in the three and six months ended June 30, 2018, respectively, and $11 and $29 tax expense in the three and six months ended June 30, 2017, respectively. | 41 | (31 | ) | 207 | (81 | ) | |||||||||
Reclassification of pension adjustments into earnings, net of $46 and $88 tax benefit in the three and six months ended June 30, 2018, respectively, and $51 and $102 tax benefit in the three and six months ended June 30, 2017, respectively. | 142 | 71 | 300 | 151 | |||||||||||
Total other comprehensive income (loss) | (1,258 | ) | 190 | 272 | 954 | ||||||||||
Comprehensive income (loss) | $ | (2,132 | ) | $ | 1,429 | $ | (1,020 | ) | $ | 835 |
SIX MONTHS ENDED | |||||||
JUNE 30 | |||||||
2018 | 2017 | ||||||
(In thousands) | |||||||
Operating activities | |||||||
Net loss | $ | (1,292 | ) | $ | (119 | ) | |
Adjustments to reconcile from net loss to net cash used for operating activities: | |||||||
Depreciation and amortization | 2,462 | 2,482 | |||||
Amortization of deferred financing fees | 101 | 111 | |||||
Deferred income taxes | 1,795 | 2,027 | |||||
Other | (1,940 | ) | (1,738 | ) | |||
Working capital changes: | |||||||
Affiliates receivable/payable | (6,420 | ) | (8,685 | ) | |||
Accounts receivable | 30,224 | 34,218 | |||||
Inventories | (30,493 | ) | (6,982 | ) | |||
Other current assets | (5,908 | ) | (382 | ) | |||
Accounts payable | (39,551 | ) | (22,773 | ) | |||
Other liabilities | (5,152 | ) | (14,420 | ) | |||
Net cash used for operating activities | (56,174 | ) | (16,261 | ) | |||
Investing activities | |||||||
Expenditures for property, plant and equipment | (4,555 | ) | (2,399 | ) | |||
Other | 6 | 21 | |||||
Net cash used for investing activities | (4,549 | ) | (2,378 | ) | |||
Financing activities | |||||||
Net additions to revolving credit agreements | 54,130 | 15,562 | |||||
Cash dividends to NACCO Industries, Inc. | — | (3,000 | ) | ||||
Cash dividends on Class A Common and Class B Common | (2,327 | ) | — | ||||
Net cash provided by financing activities | 51,803 | 12,562 | |||||
Effect of exchange rate changes on cash | (24 | ) | 65 | ||||
Cash and cash equivalents | |||||||
Decrease for the period | (8,944 | ) | (6,012 | ) | |||
Balance at the beginning of the period | 10,906 | 11,340 | |||||
Balance at the end of the period | $ | 1,962 | $ | 5,328 |
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||||
Class A Common stock | Class B Common Stock | Capital in Excess of Par Value | Retained Earnings | Foreign Currency | Deferred Gain (Loss) on Cash Flow Hedging | Pension Plan Adjustment | Total Stockholders' Equity | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Balance, January 1, 2017 | $ | — | $ | — | $ | 75,031 | $ | 6,738 | $ | (8,623 | ) | $ | 616 | $ | (8,494 | ) | $ | 65,268 | ||||||||||
Net loss | — | — | — | (119 | ) | — | — | — | (119 | ) | ||||||||||||||||||
Cash dividends to NACCO Industries, Inc. | — | — | — | (3,000 | ) | — | — | — | (3,000 | ) | ||||||||||||||||||
Current period other comprehensive income (loss) | — | — | — | — | 1,743 | (859 | ) | — | 884 | |||||||||||||||||||
Reclassification adjustment to net income (loss) | — | — | — | — | — | (81 | ) | 151 | 70 | |||||||||||||||||||
Balance, June 30, 2017 | $ | — | $ | — | $ | 75,031 | $ | 3,619 | $ | (6,880 | ) | $ | (324 | ) | $ | (8,343 | ) | $ | 63,103 | |||||||||
Balance, January 1, 2018 | $ | 88 | $ | 48 | $ | 47,773 | $ | 12,603 | $ | (7,934 | ) | $ | 508 | $ | (6,678 | ) | $ | 46,408 | ||||||||||
Issuance of common stock, net of conversions | 4 | (3 | ) | 521 | — | — | — | — | 522 | |||||||||||||||||||
Net loss | — | — | — | (1,292 | ) | — | — | — | (1,292 | ) | ||||||||||||||||||
Share-based compensation expense | — | — | 2,427 | — | — | — | — | 2,427 | ||||||||||||||||||||
Cash dividends on Class A Common and Class B Common: $0.17 per share | — | — | — | (2,327 | ) | — | — | — | (2,327 | ) | ||||||||||||||||||
Reclassification due to adoption of ASU 2018-02 | — | — | — | 1,168 | — | 118 | (1,286 | ) | — | |||||||||||||||||||
Current period other comprehensive income | — | — | — | — | (988 | ) | 753 | — | (235 | ) | ||||||||||||||||||
Reclassification adjustment to net income | — | — | — | — | — | 207 | 300 | 507 | ||||||||||||||||||||
Balance, June 30, 2018 | $ | 92 | $ | 45 | $ | 50,721 | $ | 10,152 | $ | (8,922 | ) | $ | 1,586 | $ | (7,664 | ) | $ | 46,010 |
• | Product revenues - Product revenues consist of sales of small electric household and specialty housewares appliances to traditional brick and mortar and e-commerce retailers, distributors and directly to the end consumer as well as sales of commercial products for restaurants, bars and hotels. Transactions with these customers generally originate upon the receipt of a purchase order from the customer, which in some cases are governed by master sales agreements, specifying product(s) that the customer desires. Contracts for product revenues generally have an original duration of one year or less, and payment terms are generally standard and based on customer creditworthiness. Revenue from product sales is recognized at the point in time when control transfers to the customer, which is either when product is shipped from the Company's facility, or delivered to customers, depending on the shipping terms. The amount of consideration received and revenue recognized varies with changes in incentives, returns and consideration paid to customers for advertising arrangements. The Company has elected to account for shipping and handling activities |
• | License revenues - From time to time, the Company enters into licensing agreements which grant the right to use, on a non-exclusive basis, certain of the Company’s intellectual property (IP) in connection with designing, manufacturing, distributing, advertising, promoting and selling the licensees’ products during the term of the agreement. The IP that is licensed generally consists of trademarks, tradenames, trade dress, and/or logos (the “Licensed IP”). In exchange for granting the right to use the Licensed IP, the Company receives a royalty payment, which is a function of (1) the total net sales of products that use the Licensed IP and (2) the royalty percentage that is stated in the licensing agreement. The Company recognizes revenue at the later of when the subsequent sales occur or satisfying the performance obligation (over time). |
• | Product revenues - KC sells a variety of kitchenware products from a number of highly recognizable name brands to individual consumers. Products are predominantly sold through brick and mortar retail stores whereby customers come into KC stores, explore the assortment of merchandise available for sale, select various products that they desire to purchase, bring those products to the sales register and pay the cashier the agreed-upon price using either cash, check or credit card. Once the sale is complete, a receipt is generated and provided to the customer as proof of purchase. Therefore, the sales process is both originated and completed simultaneously at the point of sale. Revenue from product sales is recognized at the point in time when control transfers to the customer, which occurs when the products are scanned at the sales register. The amount of consideration received and revenue recognized varies with changes in returns. |
THREE MONTHS ENDED | SIX MONTHS ENDED | ||||||||||||||||||||||
JUNE 30, 2018 | JUNE 30, 2018 | ||||||||||||||||||||||
HBB | KC | Consolidated (1) | HBB | KC | Consolidated (1) | ||||||||||||||||||
Type of good or service: | |||||||||||||||||||||||
Products | $ | 135,014 | $ | 22,762 | $ | 157,086 | $ | 259,595 | $ | 44,862 | $ | 302,886 | |||||||||||
Licensing | 855 | — | 855 | 1,688 | — | 1,688 | |||||||||||||||||
Total revenues | $ | 135,869 | $ | 22,762 | $ | 157,941 | $ | 261,283 | $ | 44,862 | $ | 304,574 |
JUNE 30 2018 | DECEMBER 31 2017 | JUNE 30 2017 | |||||||||
Sourced inventories - HBB | $ | 138,721 | $ | 111,493 | $ | 104,342 | |||||
Retail inventories - KC | 26,516 | 23,251 | 31,055 | ||||||||
Total inventories | $ | 165,237 | $ | 134,744 | $ | 135,397 |
Fair Value Measurements at Reporting Date Using | ||||||||||||||||
Quoted Prices in | Significant | |||||||||||||||
Active Markets for | Significant Other | Unobservable | ||||||||||||||
Identical Assets | Observable Inputs | Inputs | ||||||||||||||
Description | Date | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
June 30, 2018 | ||||||||||||||||
Assets: | ||||||||||||||||
Interest rate swap agreements | $ | 1,593 | $ | — | $ | 1,593 | $ | — | ||||||||
Foreign currency exchange contracts | 474 | — | 474 | — | ||||||||||||
$ | 2,067 | $ | — | $ | 2,067 | $ | — | |||||||||
December 31, 2017 | ||||||||||||||||
Assets: | ||||||||||||||||
Interest rate swap agreements | $ | 894 | $ | — | $ | 894 | $ | — | ||||||||
Foreign currency exchange contracts | 245 | — | 245 | — | ||||||||||||
$ | 1,139 | $ | — | $ | 1,139 | $ | — | |||||||||
Liabilities: | ||||||||||||||||
Foreign currency exchange contracts | $ | 93 | $ | — | $ | 93 | $ | — | ||||||||
$ | 93 | $ | — | $ | 93 | $ | — | |||||||||
June 30, 2017 | ||||||||||||||||
Assets: | ||||||||||||||||
Interest rate swap agreements | $ | 623 | $ | — | $ | 623 | $ | — | ||||||||
$ | 623 | $ | — | $ | 623 | $ | — | |||||||||
Liabilities: | ||||||||||||||||
Foreign currency exchange contracts | $ | 903 | $ | — | $ | 903 | $ | — | ||||||||
$ | 903 | $ | — | $ | 903 | $ | — |
THREE MONTHS | SIX MONTHS ENDED | ||||||||||||||
JUNE 30 | JUNE 30 | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenues | |||||||||||||||
HBB | $ | 135,869 | $ | 127,574 | $ | 261,283 | $ | 241,728 | |||||||
KC | 22,762 | 25,868 | 44,862 | 52,533 | |||||||||||
Eliminations | (690 | ) | (466 | ) | (1,571 | ) | (1,003 | ) | |||||||
Total | $ | 157,941 | $ | 152,976 | $ | 304,574 | $ | 293,258 | |||||||
Operating profit (loss) | |||||||||||||||
HBB | $ | 4,399 | $ | 5,164 | $ | 8,392 | $ | 5,946 | |||||||
KC | (3,834 | ) | (3,008 | ) | (8,138 | ) | (6,287 | ) | |||||||
Eliminations | 28 | 8 | 2 | 67 | |||||||||||
Total | $ | 593 | $ | 2,164 | $ | 256 | $ | (274 | ) | ||||||
Net income (loss) | |||||||||||||||
HBB | $ | 1,967 | $ | 3,195 | $ | 4,769 | $ | 3,884 | |||||||
KC | (2,900 | ) | (1,970 | ) | (6,538 | ) | (4,113 | ) | |||||||
Eliminations | 59 | 14 | 477 | 110 | |||||||||||
Total | $ | (874 | ) | $ | 1,239 | $ | (1,292 | ) | $ | (119 | ) |
THREE MONTHS ENDED | SIX MONTHS ENDED | ||||||||||||||
JUNE 30 | JUNE 30 | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenues | |||||||||||||||
HBB | $ | 135,869 | $ | 127,574 | $ | 261,283 | $ | 241,728 | |||||||
KC | 22,762 | 25,868 | 44,862 | 52,533 | |||||||||||
Eliminations | (690 | ) | (466 | ) | (1,571 | ) | (1,003 | ) | |||||||
Total | $ | 157,941 | $ | 152,976 | $ | 304,574 | $ | 293,258 | |||||||
Operating profit (loss) | |||||||||||||||
HBB | $ | 4,399 | $ | 5,164 | $ | 8,392 | $ | 5,946 | |||||||
KC | (3,834 | ) | (3,008 | ) | (8,138 | ) | (6,287 | ) | |||||||
Eliminations | 28 | 8 | 2 | 67 | |||||||||||
Total | $ | 593 | $ | 2,164 | $ | 256 | $ | (274 | ) | ||||||
Net income (loss) | |||||||||||||||
HBB | $ | 1,967 | $ | 3,195 | $ | 4,769 | $ | 3,884 | |||||||
KC | (2,900 | ) | (1,970 | ) | (6,538 | ) | (4,113 | ) | |||||||
Eliminations | 59 | 14 | 477 | 110 | |||||||||||
Total | $ | (874 | ) | $ | 1,239 | $ | (1,292 | ) | $ | (119 | ) |
Revenues | Operating profit (loss) | Net income (loss) | |||||||||
Consolidated results for the three months ended June 30, 2017 | $ | 152,976 | $ | 2,164 | $ | 1,239 | |||||
Increase (decrease) from: | |||||||||||
HBB | 8,295 | (765 | ) | (1,228 | ) | ||||||
KC | (3,106 | ) | (826 | ) | (930 | ) | |||||
Eliminations | (224 | ) | 20 | 45 | |||||||
Consolidated results for the three months ended June 30, 2018 | $ | 157,941 | $ | 593 | $ | (874 | ) |
Revenues | Operating profit (loss) | Net income (loss) | |||||||||
Consolidated results for the six months ended June 30, 2017 | $ | 293,258 | $ | (274 | ) | $ | (119 | ) | |||
Increase (decrease) from: | |||||||||||
HBB | 19,555 | 2,446 | 885 | ||||||||
KC | (7,671 | ) | (1,851 | ) | (2,425 | ) | |||||
Eliminations | (568 | ) | (65 | ) | 367 | ||||||
Consolidated results for the six months ended June 30, 2018 | $ | 304,574 | $ | 256 | $ | (1,292 | ) |
JUNE 30 2018 | JUNE 30 2017 | Change | |||||||||
Cash and cash equivalents | $ | 1,962 | $ | 5,328 | $ | (3,366 | ) | ||||
Other net tangible assets | 138,062 | 99,208 | 38,854 | ||||||||
Goodwill and intangible assets, net | 11,462 | 12,843 | (1,381 | ) | |||||||
Net assets | 151,486 | 117,379 | 34,107 | ||||||||
Total debt | (105,476 | ) | (54,276 | ) | (51,200 | ) | |||||
Total equity | $ | 46,010 | $ | 63,103 | $ | (17,093 | ) | ||||
Debt to total capitalization | 69.6 | % | 46.2 | % | 23.4 | % |
JUNE 30 2018 | DECEMBER 31 2017 | Change | |||||||||
Cash and cash equivalents | $ | 1,962 | $ | 10,906 | $ | (8,944 | ) | ||||
Other net tangible assets | 138,062 | 74,695 | 63,367 | ||||||||
Goodwill and intangible assets, net | 11,462 | 12,153 | (691 | ) | |||||||
Net assets | 151,486 | 97,754 | 53,732 | ||||||||
Total debt | (105,476 | ) | (51,346 | ) | (54,130 | ) | |||||
Total equity | $ | 46,010 | $ | 46,408 | $ | (398 | ) | ||||
Debt to total capitalization | 69.6 | % | 52.5 | % | 17.1 | % |
Three Months Ended June 30 | % of Revenue | ||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||
Revenues | $ | 135,869 | $ | 127,574 | 100.0 | % | 100.0 | % | |||||
Cost of sales | 105,421 | 100,446 | 77.6 | % | 78.7 | % | |||||||
Gross profit | 30,448 | 27,128 | 22.4 | % | 21.3 | % | |||||||
Operating expenses (1) | 26,049 | 21,964 | 19.2 | % | 17.2 | % | |||||||
Operating profit | 4,399 | 5,164 | 3.2 | % | 4.0 | % | |||||||
Interest expense | 846 | 383 | 0.6 | % | 0.3 | % | |||||||
Other, net, including interest income | 851 | (311 | ) | 0.6 | % | (0.2 | )% | ||||||
Income before income tax provision | 2,702 | 5,092 | 2.0 | % | 4.0 | % | |||||||
Income tax provision | 735 | 1,897 | 0.5 | % | 1.5 | % | |||||||
Net income | $ | 1,967 | $ | 3,195 | 1.4 | % | 2.5 | % | |||||
Effective income tax rate | 27.2 | % | 37.3 | % |
Revenues | |||
2017 | $ | 127,574 | |
Increase (decrease) from: | |||
Unit volume and product mix | 7,871 | ||
Other | 486 | ||
Foreign currency | (62 | ) | |
2018 | $ | 135,869 |
Operating Profit | |||
2017 | $ | 5,164 | |
Increase (decrease) from: | |||
Selling, general and administrative expenses | (4,085 | ) | |
Gross profit | 2,732 | ||
Foreign currency | 588 | ||
2018 | $ | 4,399 |
Six Months Ended June 30 | % of Revenue | ||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||
Revenues | $ | 261,283 | $ | 241,728 | 100.0 | % | 100.0 | % | |||||
Cost of sales | 203,131 | 191,985 | 77.7 | % | 79.4 | % | |||||||
Gross profit | 58,152 | 49,743 | 22.3 | % | 20.6 | % | |||||||
Operating expenses (1) | 49,760 | 43,797 | 19.0 | % | 18.1 | % | |||||||
Operating profit | 8,392 | 5,946 | 3.2 | % | 2.5 | % | |||||||
Interest expense | 1,368 | 763 | 0.5 | % | 0.3 | % | |||||||
Other, net, including interest income | 522 | (1,011 | ) | 0.2 | % | (0.4 | )% | ||||||
Income before income tax provision | 6,502 | 6,194 | 2.5 | % | 2.6 | % | |||||||
Income tax provision | 1,733 | 2,310 | 0.7 | % | 1.0 | % | |||||||
Net income | $ | 4,769 | $ | 3,884 | 1.8 | % | 1.6 | % | |||||
Effective income tax rate | 26.7 | % | 37.3 | % |
Revenues | |||
2017 | $ | 241,728 | |
Increase (decrease) from: | |||
Unit volume and product mix | 17,800 | ||
Foreign currency | 1,095 | ||
Other | 660 | ||
2018 | $ | 261,283 |
Operating Profit | |||
2017 | $ | 5,946 | |
Increase (decrease) from: | |||
Gross profit | 7,240 | ||
Foreign currency | 1,169 | ||
Selling, general and administrative expenses | (5,963 | ) | |
2018 | $ | 8,392 |
2018 | 2017 | Change | |||||||||
Operating activities: | |||||||||||
Net income | $ | 4,769 | $ | 3,884 | $ | 885 | |||||
Depreciation and amortization | 2,014 | 1,926 | 88 | ||||||||
Other | (1,378 | ) | 294 | (1,672 | ) | ||||||
Working capital changes | (43,766 | ) | (10,058 | ) | (33,708 | ) | |||||
Net cash used for operating activities | (38,361 | ) | (3,954 | ) | (34,407 | ) | |||||
Investing activities: | |||||||||||
Expenditures for property, plant and equipment | (4,354 | ) | (1,939 | ) | (2,415 | ) | |||||
Other | — | 21 | (21 | ) | |||||||
Net cash used for investing activities | (4,354 | ) | (1,918 | ) | (2,436 | ) | |||||
Cash flow before financing activities | $ | (42,715 | ) | $ | (5,872 | ) | $ | (36,843 | ) |
2018 | 2017 | Change | |||||||||
Financing activities: | |||||||||||
Net additions to revolving credit agreement | $ | 44,980 | $ | 8,362 | $ | 36,618 | |||||
Cash dividends paid to Hamilton Beach Holding | (2,327 | ) | — | (2,327 | ) | ||||||
Net cash provided by financing activities | $ | 42,653 | $ | 8,362 | $ | 34,291 |
JUNE 30 2018 | JUNE 30 2017 | Change | |||||||||
Cash and cash equivalents | $ | 1,393 | $ | 4,876 | $ | (3,483 | ) | ||||
Other net tangible assets | 120,543 | 78,252 | 42,291 | ||||||||
Goodwill and intangible assets, net | 11,462 | 12,843 | (1,381 | ) | |||||||
Net assets | 133,398 | 95,971 | 37,427 | ||||||||
Total debt | (96,326 | ) | (47,076 | ) | (49,250 | ) | |||||
Total equity | $ | 37,072 | $ | 48,895 | $ | (11,823 | ) | ||||
Debt to total capitalization | 72.2 | % | 49.1 | % | 23.1 | % |
JUNE 30 2018 | DECEMBER 31 2017 | Change | |||||||||
Cash and cash equivalents | $ | 1,393 | $ | 1,480 | $ | (87 | ) | ||||
Other net tangible assets | 120,543 | 69,122 | 51,421 | ||||||||
Goodwill and intangible assets, net | 11,462 | 12,153 | (691 | ) | |||||||
Net assets | 133,398 | 82,755 | 50,643 | ||||||||
Total debt | (96,326 | ) | (51,346 | ) | (44,980 | ) | |||||
Total equity | $ | 37,072 | $ | 31,409 | $ | 5,663 | |||||
Debt to total capitalization | 72.2 | % | 62.0 | % | 10.2 | % |
Three Months Ended June 30 | % of Revenue | ||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||
Revenues | $ | 22,762 | $ | 25,868 | 100.0 | % | 100.0 | % | |||||
Cost of sales | 12,385 | 14,173 | 54.4 | % | 54.8 | % | |||||||
Gross profit | 10,377 | 11,695 | 45.6 | % | 45.2 | % | |||||||
Operating expenses (1) | 14,211 | 14,703 | 62.4 | % | 56.8 | % | |||||||
Operating loss | (3,834 | ) | (3,008 | ) | (16.8 | )% | (11.6 | )% | |||||
Interest expense | 80 | 79 | 0.4 | % | 0.3 | % | |||||||
Other, net, including interest income | 8 | 14 | — | % | 0.1 | % | |||||||
Loss before income tax benefit | (3,922 | ) | (3,101 | ) | (17.2 | )% | (12.0 | )% | |||||
Income tax benefit | (1,022 | ) | (1,131 | ) | (4.5 | )% | (4.4 | )% | |||||
Net loss | $ | (2,900 | ) | $ | (1,970 | ) | (12.7 | )% | (7.6 | )% | |||
Effective income tax rate | 26.1 | % | 36.5 | % |
Revenues | |||
2017 | $ | 25,868 | |
Increase (decrease) from: | |||
Comparable stores | (2,740 | ) | |
Closed stores | (832 | ) | |
New stores | 454 | ||
Other | 12 | ||
2018 | $ | 22,762 |
Operating Loss | |||
2017 | $ | (3,008 | ) |
(Increase) decrease from: | |||
Comparable stores | (1,041 | ) | |
New stores | (22 | ) | |
Closed stores | 227 | ||
Selling, general and administrative expenses and other | 10 | ||
2018 | $ | (3,834 | ) |
Six Months Ended June 30 | % of Revenue | ||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||
Revenues | $ | 44,862 | $ | 52,533 | 100.0 | % | 100.0 | % | |||||
Cost of sales | 24,370 | 28,935 | 54.3 | % | 55.1 | % | |||||||
Gross profit | 20,492 | 23,598 | 45.7 | % | 44.9 | % | |||||||
Operating expenses (1) | 28,630 | 29,885 | 63.8 | % | 56.9 | % | |||||||
Operating loss | (8,138 | ) | (6,287 | ) | (18.1 | )% | (12.0 | )% | |||||
Interest expense | 102 | 114 | 0.2 | % | 0.2 | % | |||||||
Other, net, including interest income | 20 | 32 | — | % | 0.1 | % | |||||||
Loss before income tax benefit | (8,260 | ) | (6,433 | ) | (18.4 | )% | (12.2 | )% | |||||
Income tax benefit | (1,722 | ) | (2,320 | ) | (3.8 | )% | (4.4 | )% | |||||
Net loss | $ | (6,538 | ) | $ | (4,113 | ) | (14.6 | )% | (7.8 | )% | |||
Effective income tax rate | 20.8 | % | 36.1 | % |
Revenues | |||
2017 | $ | 52,533 | |
Increase (decrease) from: | |||
Comparable stores | (6,788 | ) | |
Closed stores | (1,833 | ) | |
Other | (17 | ) | |
New stores | 967 | ||
2018 | $ | 44,862 |
Operating Loss | |||
2017 | $ | (6,287 | ) |
(Increase) decrease from: | |||
Comparable stores | (2,546 | ) | |
Closed stores | 420 | ||
Selling, general and administrative expenses and other | 233 | ||
New stores | 42 | ||
2018 | $ | (8,138 | ) |
2018 | 2017 | Change | |||||||||
Operating activities: | |||||||||||
Net loss | $ | (6,538 | ) | $ | (4,113 | ) | $ | (2,425 | ) | ||
Depreciation and amortization | 549 | 556 | (7 | ) | |||||||
Other | (393 | ) | 106 | (499 | ) | ||||||
Working capital changes | (11,422 | ) | (8,856 | ) | (2,566 | ) | |||||
Net cash used for operating activities | (17,804 | ) | (12,307 | ) | (5,497 | ) | |||||
Investing activities: | |||||||||||
Expenditures for property, plant and equipment | (201 | ) | (460 | ) | 259 | ||||||
Other | 6 | — | 6 | ||||||||
Net cash used for investing activities | (195 | ) | (460 | ) | 265 | ||||||
Cash flow before financing activities | $ | (17,999 | ) | $ | (12,767 | ) | $ | (5,232 | ) |
2018 | 2017 | Change | |||||||||
Financing activities: | |||||||||||
Net additions to revolving credit agreement | $ | 9,150 | $ | 7,200 | $ | 1,950 | |||||
Cash dividends paid to NACCO | — | (3,000 | ) | 3,000 | |||||||
Net cash provided by financing activities | $ | 9,150 | $ | 4,200 | $ | 4,950 |
JUNE 30 2018 | JUNE 30 2017 | Change | |||||||||
Cash and cash equivalents | $ | 569 | $ | 443 | $ | 126 | |||||
Other net tangible assets | 17,163 | 21,039 | (3,876 | ) | |||||||
Net assets | 17,732 | 21,482 | (3,750 | ) | |||||||
Total debt | (9,150 | ) | (7,200 | ) | (1,950 | ) | |||||
Total equity | $ | 8,582 | $ | 14,282 | $ | (5,700 | ) | ||||
Debt to total capitalization | 51.6 | % | 33.5 | % | 18.1 | % |
JUNE 30 2018 | DECEMBER 31 2017 | Change | |||||||||
Cash and cash equivalents | $ | 569 | $ | 9,419 | $ | (8,850 | ) | ||||
Other net tangible assets | 17,163 | 5,702 | 11,461 | ||||||||
Net assets | 17,732 | 15,121 | 2,611 | ||||||||
Total debt | (9,150 | ) | — | (9,150 | ) | ||||||
Total equity | $ | 8,582 | $ | 15,121 | $ | (6,539 | ) | ||||
Debt to total capitalization | 51.6 | % | (a) | (a) |
Exhibit | ||
Number* | Description of Exhibits | |
10.1 | ||
31(i)(1) | ||
31(i)(2) | ||
32 | ||
101.INS | XBRL Instance Document | |
101.SCH | XBRL Taxonomy Extension Schema Document | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
Hamilton Beach Brands Holding Company (Registrant) | ||
Date: | August 1, 2018 | /s/ James. H. Taylor |
James H. Taylor | ||
Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer)/(Principal Accounting Officer) |
(b) | Amendments to Definitions. |
(d) | No Default or Event of Default shall exist or have occurred and be continuing. |
US BORROWERS | |
HAMILTON BEACH BRANDS, INC. | |
By: | /s/ James H. Taylor |
Title: | Vice President, Chief Financial Officer and Treasurer |
WESTON BRANDS, LLC | |
By: | /s/ James H. Taylor |
Title: | Vice President, Chief Financial Officer and Treasurer |
CANADIAN BORROWER | |
HAMILTON BEACH BRANDS CANADA, INC. | |
By: | /s/ James H. Taylor |
Title: | Vice President, Chief Financial Officer and Treasurer |
AGENT AND LENDERS | |
WELLS FARGO BANK, NATIONAL ASSOCIATION, as Agent and a Lender | |
By: | /s/ Sang H. Kim |
Title: | Vice President |
WELLS FARGO CAPITAL FINANCE CORPORATION CANADA, as a Lender | |
By: | /s/ Jamie Gallant |
Title: | Assistant Vice President |
BANK OF AMERICA, N.A., as a Lender | |
By: | /s/ Kenneth B. Butler |
Title: | Senior Vice President |
KEYBANK, NATIONAL ASSOCIATION, as a Lender | |
By: | /s/ Nadine M. Eames |
Title: | Vice President |
1. | I have reviewed this quarterly report on Form 10-Q of Hamilton Beach Brands Holding Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | August 1, 2018 | /s/ Gregory H. Trepp | |
Gregory H. Trepp | |||
President and Chief Executive Officer (Principal Executive Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of Hamilton Beach Brands Holding Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | August 1, 2018 | /s/ James H. Taylor | |
James H. Taylor | |||
Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer)/(Principal Accounting Officer) |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report. |
Date: | August 1, 2018 | /s/ Gregory H. Trepp | |
Gregory H. Trepp | |||
President and Chief Executive Officer (Principal Executive Officer) |
Date: | August 1, 2018 | /s/ James H. Taylor | |
James H. Taylor | |||
Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer)/(Principal Accounting Officer) |
Document and Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Jul. 27, 2018 |
|
Entity Information [Line Items] | ||
Entity Registrant Name | HAMILTON BEACH BRANDS HOLDING COMPANY | |
Entity Central Index Key | 0001709164 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Shares Outstanding Class A | ||
Entity Information [Line Items] | ||
Shares Outstanding (in shares) | 9,230,373 | |
Shares Outstanding Class B | ||
Entity Information [Line Items] | ||
Shares Outstanding (in shares) | 4,473,453 |
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares |
Jun. 30, 2018 |
Dec. 31, 2017 |
Jun. 30, 2017 |
---|---|---|---|
Common stock, par value (in dollars per share) | $ 1 | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 1,000 | 1,000 | 1,000 |
Common stock, shares outstanding (in shares) | 0 | 0 | 100 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 | 5,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 | 0 |
Class A Common Stock | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 70,000,000 | 70,000,000 | 70,000,000 |
Common stock, shares outstanding (in shares) | 9,218,372 | 8,865,207 | 0 |
Class B Common Stock | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 | 30,000,000 |
Common stock, shares outstanding (in shares) | 4,476,796 | 4,808,225 | 0 |
Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Income Statement [Abstract] | ||||
Revenues | $ 157,941 | $ 152,976 | $ 304,574 | $ 293,258 |
Cost of sales | 117,088 | 114,145 | 225,928 | 219,850 |
Gross profit | 40,853 | 38,831 | 78,646 | 73,408 |
Operating expenses | ||||
Selling, general and administrative expenses | 39,914 | 36,322 | 77,699 | 72,992 |
Amortization of intangible assets | 346 | 345 | 691 | 690 |
Operating expenses | 40,260 | 36,667 | 78,390 | 73,682 |
Operating profit (loss) | 593 | 2,164 | 256 | (274) |
Other (income) expense | ||||
Interest expense | 926 | 462 | 1,470 | 877 |
Other, net, including interest income | 859 | (297) | 542 | (979) |
Other expense (income) | 1,785 | 165 | 2,012 | (102) |
Income (loss) before income tax provision (benefit) | (1,192) | 1,999 | (1,756) | (172) |
Income tax provision (benefit) | (318) | 760 | (464) | (53) |
Net income (loss) | $ (874) | $ 1,239 | $ (1,292) | $ (119) |
Basic and diluted (loss) earnings per share (in usd per share) | $ (0.06) | $ 0.09 | $ (0.09) | $ (0.01) |
Basic and diluted weighted average shares outstanding (in shares) | 13,695 | 13,673 | 13,689 | 13,673 |
Cash Dividends on Class A Common and Class B Common per share | $ 0.085 | $ 0 | $ 0.17 | $ 0 |
Unaudited Condensed Consolidated Statements of Comprehensive (Loss) Income (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Statement of Comprehensive Income [Abstract] | ||||
Loss on intra-entity foreign currency transactions, tax expense (benefit) | $ (94) | $ 0 | $ (94) | $ 0 |
Current period cash flow hedging activity, tax expense (benefit) | 160 | 250 | (230) | (369) |
Reclassification of hedging activities into earnings, tax expense (benefit) | (13) | (77) | 11 | 29 |
Reclassification of pension and postretirement adjustments into earnings, tax expense (benefit) | $ (46) | $ (88) | $ (51) | $ (102) |
Basis of Presentation |
6 Months Ended |
---|---|
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Basis of Presentation | Nature of Operations and Basis of Presentation Nature of Operations The accompanying Unaudited Condensed Consolidated Financial Statements include the accounts of Hamilton Beach Brands Holding Company ("Hamilton Beach Holding” or the “Company”). Hamilton Beach Holding is an operating holding company for two separate businesses. The Company includes the required intercompany eliminations between the two separate businesses and certain federal tax attributes. Costs incurred as a stand-alone public entity are allocated to the HBB segment. The only material assets held by Hamilton Beach Holding are its investments in consolidated subsidiaries. Substantially all of its cash flows are provided by dividends paid or distributions made by its subsidiaries. The Company's subsidiaries operate in the following principal industries: consumer, commercial and specialty small appliances and specialty retail. The Company manages its subsidiaries primarily by segment. Hamilton Beach Brands, Inc. (“HBB”) is a leading designer, marketer and distributor of branded, small electric household and specialty housewares appliances, as well as commercial products for restaurants, bars and hotels. The Kitchen Collection, LLC (“KC”) is a national specialty retailer of kitchenware in outlet and traditional malls throughout the United States. On September 29, 2017, NACCO Industries, Inc. ("NACCO"), Hamilton Beach Holding's former parent company, spun-off the Company to NACCO stockholders. In the spin-off, NACCO stockholders, in addition to retaining their shares of NACCO common stock, received one share of Hamilton Beach Holding Class A common stock and one share of Hamilton Beach Holding Class B common stock for each share of NACCO Class A or Class B common stock. In accordance with applicable authoritative accounting guidance, the Company accounted for the spin-off from NACCO based on the historical carrying value of assets and liabilities. As a result of the distribution of one share of Hamilton Beach Holding Class A common stock and one share of Hamilton Beach Holding Class B common stock for each share of NACCO Class A or NACCO Class B common stock, the earnings per share amounts for the Company for periods prior to the spin-off have been calculated based upon the number of shares distributed in the spin-off. NACCO did not receive any proceeds from the spin-off. Basis of Presentation These financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position of the Company at June 30, 2018 and the results of its operations, comprehensive income (loss), cash flows and changes in equity for the six months ended June 30, 2018 and 2017 have been included. These Unaudited Condensed Consolidated Financial Statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. The balance sheet at December 31, 2017 has been derived from the audited financial statements at that date, but does not include all of the information or notes required by U.S. GAAP for complete financial statements. Operating results for the three and six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for the remainder of the year ending December 31, 2018. The HBB and KC businesses are seasonal and a majority of revenues and operating profit typically occurs in the second half of the calendar year when sales of small electric household appliances to retailers and consumers increase significantly for the fall holiday-selling season. For further information regarding seasonality of these businesses, refer to the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. |
Recently Issued Accounting Standards |
6 Months Ended |
---|---|
Jun. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards The Company is an emerging growth company and has elected not to opt out of the extended transition period for complying with new or revised accounting standards, which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company can adopt the new or revised standard at the time private companies adopt the new or revised standard. Accounting Standards Adopted In May 2014, the FASB codified in ASC 606, "Revenue Recognition - Revenue from Contracts with Customers" ("ASC 606"), which supersedes ASC 605, "Revenue Recognition" ("ASC 605"), including industry-specific guidance, and requires an entity to recognize revenue in an amount that reflects the consideration to which the entity expects to be entitled in exchange for transferring goods or services to customers and provide additional disclosures. The effective date for nonpublic entities is annual reporting periods beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. Early adoption is permitted. The Company has adopted the guidance for all contracts at the date of initial application of January 1, 2018. The amount and timing of revenue recognition is not materially impacted by the new standard, thus no cumulative adjustment was recognized upon adoption. See Note 3 for further discussion on the nature, amount and timing of revenue and cash flows arising from contracts with customers. In February 2018, the FASB issued ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220)". The guidance in ASU 2018-02 allows an entity to elect to reclassify the stranded tax effects related to the Tax Cuts and Jobs Act (the "Tax Act") of 2017 from accumulated other comprehensive income ("AOCI") into retained earnings. ASU 2018-02 is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company elected to early adopt ASU 2018-02 as of January 1, 2018. As a result of adopting this standard, the Company reclassified $1.2 million from AOCI to retained earnings. Accounting Standards Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)," which requires an entity to recognize assets and liabilities for the rights and obligations created by leased assets. For nonpublic entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company is planning to adopt ASU 2016-02 for its fiscal year ending December 31, 2020 and is currently evaluating to what extent ASU 2016-02 will affect the Company's financial position, results of operations, cash flows and related disclosures. |
Revenues (Notes) |
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Revenue Recognition and Deferred Revenue [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | Revenues The Company accounts for revenue in accordance with ASC 606, which was adopted on January 1, 2018, using the modified retrospective method. The amount and timing of revenue recognition was not impacted by the new standard and therefore no cumulative adjustment was recognized upon adoption. Results for the reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts continue to be reported in accordance with historical accounting methods under ASC 605. The classification of refund liabilities, which is now reported in Other current liabilities on the Consolidated Balance Sheet, was previously classified as an allowance against Accounts Receivable. Revenues are recognized when control of the promised goods or services is transferred to the Company's customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Sales taxes are excluded from revenue. 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. A description of our performance obligations for each segment is included below. Hamilton Beach Brands
Kitchen Collection
HBB’s warranty program to the consumer consists generally of an assurance-type limited warranty lasting for varying periods of up to ten years for electric appliances, with the majority of products having a warranty of one year. There is no guarantee to the customer as HBB may repair or replace, at its option, those products returned under warranty. Accordingly, the Company determined no separate performance obligation exists. HBB products are not sold with the right of return. However, based on historical experience, a portion of HBB and KC products sold are estimated to be returned due to reasons such as buyer remorse, duplicate gifts received, product failure and excess inventory stocked by the customer, which, subject to certain terms and conditions, the Company will agree to accept. The Company accounts for these product returns as variable consideration. Other forms of variable consideration include customer programs and incentive offerings, including special pricing agreements, price competition, promotions and other volume-based incentives. To estimate variable consideration, the Company applies both the “expected value” method and “most likely amount” method based on the form of variable consideration, according to which method would provide the better prediction. The expected value method involves a probability weighted determination of the expected amount, whereas the most likely amount method identifies the single most likely outcome in a range of possible amounts. The following table presents the Company's revenues on a disaggregated basis for the three and six months ending:
(1) Includes the required intercompany eliminations between HBB and KC. |
Inventories |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories Inventories are summarized as follows:
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Fair Value Disclosure |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosure | Fair Value Disclosure Recurring Fair Value Measurements: The following table presents the Company's assets and liabilities accounted for at fair value on a recurring basis:
The Company uses significant other observable inputs to value derivative instruments used to hedge foreign currency and interest rate risk; therefore, they are classified within Level 2 of the valuation hierarchy. The fair value for these contracts is determined based on exchange rates and interest rates, respectively. At June 30, 2018, December 31, 2017, and June 30, 2017, there were no transfers into or out of Levels 1, 2 or 3. |
Contingencies |
6 Months Ended |
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Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Various legal and regulatory proceedings and claims have been or may be asserted against Hamilton Beach Holding and certain subsidiaries relating to the conduct of their businesses, including product liability, patent infringement, asbestos related claims, environmental and other claims. These proceedings and claims are incidental to the ordinary course of business of the Company. Management believes that it has meritorious defenses and will vigorously defend the Company in these actions. Any costs that management estimates will be paid as a result of these claims are accrued when the liability is considered probable and the amount can be reasonably estimated. If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the minimum of the range is accrued. The Company does not accrue liabilities when the likelihood that the liability has been incurred is probable but the amount cannot be reasonably estimated or when the liability is believed to be only reasonably possible or remote. For contingencies where an unfavorable outcome is probable or reasonably possible and which are material, the Company discloses the nature of the contingency and, in some circumstances, an estimate of the possible loss. These matters are subject to inherent uncertainties, and unfavorable rulings could occur. If an unfavorable ruling were to occur, there exists the possibility of an adverse impact on the Company’s financial position, results of operations and cash flows of the period in which the ruling occurs, or in future periods. Environmental matters HBB is investigating or remediating historical environmental contamination at some current and former sites operated by HBB or by businesses it acquired. Based on the current stage of the investigation or remediation at each known site, HBB estimates the total investigation and remediation costs and the period of assessment and remediation activity required for each site. The estimate of future investigation and remediation costs is primarily based on variables associated with site clean-up, including, but not limited to, physical characteristics of the site, the nature and extent of the contamination and applicable regulatory programs and remediation standards. No assessment can fully characterize all subsurface conditions at a site. There is no assurance that additional assessment and remediation efforts will not result in adjustments to estimated remediation costs or the time frame for remediation at these sites. HBB's estimates of investigation and remediation costs may change if it discovers contamination at additional sites or additional contamination at known sites, if the effectiveness of its current remediation efforts change, if applicable federal or state regulations change or if HBB's estimate of the time required to remediate the sites changes. HBB's revised estimates may differ materially from original estimates. At June 30, 2018, December 31, 2017 and June 30, 2017, HBB had accrued undiscounted obligations of $8.5 million, $8.9 million and $8.9 million, respectively, for environmental investigation and remediation activities. In addition, HBB estimates that it is reasonably possible that it may incur additional expenses in the range of zero to $5.2 million related to the environmental investigation and remediation at these sites. |
Business Segments |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segments | 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 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.
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Income Taxes |
6 Months Ended |
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Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On December 22, 2017, the U.S. federal government enacted the Tax Act, which significantly revises U.S. tax law. The Company’s effective income tax rate was 26.7% and 26.4% for the three and six months ended June 30, 2018, respectively, compared with 38.0% and 30.8% for the three and six months ended June 30, 2017, respectively, primarily due to the reduction of the U.S. federal corporate tax rate from 35 percent to 21 percent during 2018. Subsequent to the enactment of the Tax Act, the SEC staff issued Staff Accounting Bulletin 118 (“SAB 118”), which provides a measurement period of up to one year after the enactment date for companies to finalize the recognition of the income tax effects of the Tax Act. As a result of the Tax Act and pursuant to SAB 118, the Company recorded a provisional net tax charge of $4.7 million during the year ended December 31, 2017; however, there is still uncertainty as to the application of the Tax Act, in particular as it relates to state income taxes. Further, management has not yet completed the analysis of the amount of foreign earnings subject to U.S. income tax, and the portion of foreign earnings held in cash or other specified assets. No adjustments were recorded to the provisional amounts during the three and six months ending June 30, 2018. The ultimate impact of the Tax Act may differ from these provisional amounts due to, among other things, additional analysis, changes in interpretations and assumptions, additional regulatory guidance that may be issued, and the computation of state income taxes as there is uncertainty on conformity to the U.S. federal tax system following the Tax Act. |
Transfer of Financial Assets (Notes) |
6 Months Ended |
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Jun. 30, 2018 | |
Transfers and Servicing [Abstract] | |
Transfer of Financial Assets | Transfer of Financial Assets The Company has entered into an arrangement with a financial institution to sell certain U.S. accounts receivable on a non-recourse basis. The Company utilizes this arrangement as an integral part of financing working capital. Under the terms of the agreement, the Company receives cash proceeds and retains no rights or interest and has no obligations with respect to the sold receivables. These transactions are accounted for as sales and result in a reduction in accounts receivable because the agreement transfers effective control over and risk related to the receivables to the buyer. Under this arrangement, the Company derecognized $38.8 million and $70.2 million of accounts receivable during the three and six months ending June 30, 2018, respectively, and $32.7 million and $62.4 million of accounts receivable during the three and six months ending June 30, 2017, respectively. The loss incurred on sold receivables in the consolidated results of operations for the three and six months ended June 30, 2018 and 2017 was not material. The Company does not carry any servicing assets or liabilities. Cash proceeds from this arrangement are reflected as operating activities in the Unaudited Condensed Consolidated Statements of Cash Flows. |
Nature of Operations and Basis of Presentation (Policies) |
6 Months Ended |
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Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations The accompanying Unaudited Condensed Consolidated Financial Statements include the accounts of Hamilton Beach Brands Holding Company ("Hamilton Beach Holding” or the “Company”). Hamilton Beach Holding is an operating holding company for two separate businesses. The Company includes the required intercompany eliminations between the two separate businesses and certain federal tax attributes. Costs incurred as a stand-alone public entity are allocated to the HBB segment. The only material assets held by Hamilton Beach Holding are its investments in consolidated subsidiaries. Substantially all of its cash flows are provided by dividends paid or distributions made by its subsidiaries. The Company's subsidiaries operate in the following principal industries: consumer, commercial and specialty small appliances and specialty retail. The Company manages its subsidiaries primarily by segment. Hamilton Beach Brands, Inc. (“HBB”) is a leading designer, marketer and distributor of branded, small electric household and specialty housewares appliances, as well as commercial products for restaurants, bars and hotels. The Kitchen Collection, LLC (“KC”) is a national specialty retailer of kitchenware in outlet and traditional malls throughout the United States. On September 29, 2017, NACCO Industries, Inc. ("NACCO"), Hamilton Beach Holding's former parent company, spun-off the Company to NACCO stockholders. In the spin-off, NACCO stockholders, in addition to retaining their shares of NACCO common stock, received one share of Hamilton Beach Holding Class A common stock and one share of Hamilton Beach Holding Class B common stock for each share of NACCO Class A or Class B common stock. In accordance with applicable authoritative accounting guidance, the Company accounted for the spin-off from NACCO based on the historical carrying value of assets and liabilities. As a result of the distribution of one share of Hamilton Beach Holding Class A common stock and one share of Hamilton Beach Holding Class B common stock for each share of NACCO Class A or NACCO Class B common stock, the earnings per share amounts for the Company for periods prior to the spin-off have been calculated based upon the number of shares distributed in the spin-off. NACCO did not receive any proceeds from the spin-off. |
Basis of Presentation | Basis of Presentation These financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position of the Company at June 30, 2018 and the results of its operations, comprehensive income (loss), cash flows and changes in equity for the six months ended June 30, 2018 and 2017 have been included. These Unaudited Condensed Consolidated Financial Statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. The balance sheet at December 31, 2017 has been derived from the audited financial statements at that date, but does not include all of the information or notes required by U.S. GAAP for complete financial statements. Operating results for the three and six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for the remainder of the year ending December 31, 2018. The HBB and KC businesses are seasonal and a majority of revenues and operating profit typically occurs in the second half of the calendar year when sales of small electric household appliances to retailers and consumers increase significantly for the fall holiday-selling season. |
Accounting Standards Adopted and Not Yet Adopted | Accounting Standards Adopted In May 2014, the FASB codified in ASC 606, "Revenue Recognition - Revenue from Contracts with Customers" ("ASC 606"), which supersedes ASC 605, "Revenue Recognition" ("ASC 605"), including industry-specific guidance, and requires an entity to recognize revenue in an amount that reflects the consideration to which the entity expects to be entitled in exchange for transferring goods or services to customers and provide additional disclosures. The effective date for nonpublic entities is annual reporting periods beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. Early adoption is permitted. The Company has adopted the guidance for all contracts at the date of initial application of January 1, 2018. The amount and timing of revenue recognition is not materially impacted by the new standard, thus no cumulative adjustment was recognized upon adoption. See Note 3 for further discussion on the nature, amount and timing of revenue and cash flows arising from contracts with customers. In February 2018, the FASB issued ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220)". The guidance in ASU 2018-02 allows an entity to elect to reclassify the stranded tax effects related to the Tax Cuts and Jobs Act (the "Tax Act") of 2017 from accumulated other comprehensive income ("AOCI") into retained earnings. ASU 2018-02 is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company elected to early adopt ASU 2018-02 as of January 1, 2018. As a result of adopting this standard, the Company reclassified $1.2 million from AOCI to retained earnings. Accounting Standards Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)," which requires an entity to recognize assets and liabilities for the rights and obligations created by leased assets. For nonpublic entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company is planning to adopt ASU 2016-02 for its fiscal year ending December 31, 2020 and is currently evaluating to what extent ASU 2016-02 will affect the Company's financial position, results of operations, cash flows and related disclosures. |
Revenues (Tables) |
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Revenue Recognition and Deferred Revenue [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | The following table presents the Company's revenues on a disaggregated basis for the three and six months ending:
(1) Includes the required intercompany eliminations between HBB and KC. |
Inventories (Tables) |
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventories | Inventories are summarized as follows:
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Fair Value Disclosure (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents the Company's assets and liabilities accounted for at fair value on a recurring basis:
|
Business Segments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Information |
|
Nature of Operations and Basis of Presentation Nature of Operations and Basis of Presentation (Details) |
Sep. 29, 2017
shares
|
---|---|
Class A Common Stock | |
Class of Stock [Line Items] | |
Shares of common stock issued in spin-off | 1 |
Class B Common Stock | |
Class of Stock [Line Items] | |
Shares of common stock issued in spin-off | 1 |
Recently Issued Accounting Standards (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2018
USD ($)
| |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Amount reclassified from AOCI to retained earnings | $ 1.2 |
Inventories (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
Jun. 30, 2017 |
---|---|---|---|
Inventory Disclosure [Abstract] | |||
Sourced inventories - HBB | $ 138,721 | $ 111,493 | $ 104,342 |
Retail inventories - KC | 26,516 | 23,251 | 31,055 |
Total inventories | $ 165,237 | $ 134,744 | $ 135,397 |
Contingencies (Narrative) (Details) - USD ($) |
Jun. 30, 2018 |
Dec. 31, 2017 |
Jun. 30, 2017 |
---|---|---|---|
Loss Contingencies [Line Items] | |||
Accrual for environmental investigation and remediation activities | $ 8,500,000 | $ 8,900,000 | $ 8,900,000 |
Minimum | |||
Loss Contingencies [Line Items] | |||
Estimate of possible loss | 0 | ||
Maximum | |||
Loss Contingencies [Line Items] | |||
Estimate of possible loss | $ 5,200,000 |
Business Segments (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Segment Reporting Information [Line Items] | ||||
Revenues | $ 157,941 | $ 152,976 | $ 304,574 | $ 293,258 |
Operating profit (loss) | 593 | 2,164 | 256 | (274) |
Net income (loss) | (874) | 1,239 | (1,292) | (119) |
Operating segments | HBB | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 135,869 | 127,574 | 261,283 | 241,728 |
Operating profit (loss) | 4,399 | 5,164 | 8,392 | 5,946 |
Net income (loss) | 1,967 | 3,195 | 4,769 | 3,884 |
Operating segments | KC | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 22,762 | 25,868 | 44,862 | 52,533 |
Operating profit (loss) | (3,834) | (3,008) | (8,138) | (6,287) |
Net income (loss) | (2,900) | (1,970) | (6,538) | (4,113) |
Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (690) | (466) | (1,571) | (1,003) |
Operating profit (loss) | 28 | 8 | 2 | 67 |
Net income (loss) | $ 59 | $ 14 | $ 477 | $ 110 |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Dec. 31, 2017 |
|
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate | 26.70% | 38.00% | 26.40% | 30.80% | |
Provisional net tax charge | $ 4.7 |
Transfer of Financial Assets (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Transfers and Servicing [Abstract] | ||||
Accounts receivable derecognized | $ 38.8 | $ 32.7 | $ 70.2 | $ 62.4 |
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