Discontinued Operations

6 Months Ended

Jun. 30, 2021

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

On October 10, 2019, the Board approved the wind down of KC's retail operations. Accordingly, KC is reported as discontinued operations in all periods presented. KC completed its dissolution on April 3, 2020 with a pro-rata distribution of its remaining assets to creditors, at which time the KC legal entity ceased to exist and was no longer consolidated by the Company. Neither Hamilton Beach Brands Holding Company nor Hamilton Beach Brands, Inc. received a distribution.

KC’s operating results are reflected as discontinued operations for all periods presented. The major line items constituting the income (loss) from discontinued operations, net of tax are as follows:

	THREE MONTHS ENDED JUNE 30			SIX MONTHS ENDED JUNE 30
		2020			2020
Revenue		$	—		$	631
Cost of sales		—			—
Gross profit		—			631
Selling, general and administrative expenses		299			1,346
Adjustment of lease termination liability(1)		—			(16,457)
Adjustment of other current liabilities(2)		—			(6,608)
Operating income (loss)		(299)			22,350
Other expense, net		88			88
(Loss)/Income from discontinued operations before income taxes		(387)			22,262
Income tax benefit		(82)			(299)
(Loss)/Income from discontinued operations, net of tax		$	(305)		$	22,561

(1)    Represents an adjustment to the lease termination obligation based on the final distribution of KC's remaining assets on April 3, 2020.

(2)    Represents an adjustment to the carrying value of substantially all of the other current liabilities based on the final distribution of KC's remaining assets on April 3, 2020.

Due to the deconsolidation of KC on April 3, 2020, there are no assets or liabilities associated with KC as of June 30, 2021, December 31, 2020, and June 30, 2020.

Neither Hamilton Beach Brands Holding Company nor HBB has guaranteed any obligations of KC.