(Mark One) | ||
R | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the quarterly period ended September 30, 2011 |
£ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the transition period from to |
NACCO INDUSTRIES, INC. | ||||
(Exact name of registrant as specified in its charter) | ||||
DELAWARE | 34-1505819 | |||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||
5875 LANDERBROOK DRIVE, CLEVELAND, OHIO | 44124-4069 | |||
(Address of principal executive offices) | (Zip code) | |||
(440) 449-9600 | ||||
(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 £ | Accelerated filer R | Non-accelerated filer £ | Smaller reporting company £ | |||
(Do not check if a smaller reporting company) |
Page Number | |||||
SEPTEMBER 30 2011 | DECEMBER 31 2010 | ||||||
(In millions, except share data) | |||||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 217.6 | $ | 261.9 | |||
Accounts receivable, net | 483.1 | 425.9 | |||||
Inventories, net | 540.7 | 447.4 | |||||
Deferred income taxes | 19.5 | 21.9 | |||||
Prepaid expenses and other | 38.7 | 33.4 | |||||
Assets held for sale | 31.4 | 23.7 | |||||
Total Current Assets | 1,331.0 | 1,214.2 | |||||
Property, Plant and Equipment, Net | 257.0 | 270.4 | |||||
Coal Supply Agreement, Net | 58.5 | 60.0 | |||||
Long-term Deferred Income Taxes | 2.3 | 5.2 | |||||
Other Non-current Assets | 108.7 | 108.5 | |||||
Total Assets | $ | 1,757.5 | $ | 1,658.3 | |||
LIABILITIES AND EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable | $ | 474.8 | $ | 414.5 | |||
Revolving credit agreements - not guaranteed by the parent company | 23.5 | 13.7 | |||||
Current maturities of long-term debt - not guaranteed by the parent company | 124.9 | 22.5 | |||||
Accrued payroll | 48.7 | 61.0 | |||||
Deferred revenue | 13.7 | 11.2 | |||||
Other current liabilities | 157.0 | 140.6 | |||||
Total Current Liabilities | 842.6 | 663.5 | |||||
Long-term Debt - not guaranteed by the parent company | 188.4 | 355.3 | |||||
Pension and other Postretirement Obligations | 56.2 | 77.8 | |||||
Long-term Deferred Income Taxes | 3.4 | — | |||||
Other Long-term Liabilities | 119.1 | 113.5 | |||||
Total Liabilities | 1,209.7 | 1,210.1 | |||||
Stockholders' Equity | |||||||
Common stock: | |||||||
Class A, par value $1 per share, 6,800,615 shares outstanding (2010 - 6,737,199 shares outstanding) | 6.8 | 6.8 | |||||
Class B, par value $1 per share, convertible into Class A on a one-for-one basis, 1,595,781 shares outstanding (2010 - 1,596,093 shares outstanding) | 1.6 | 1.6 | |||||
Capital in excess of par value | 24.8 | 22.6 | |||||
Retained earnings | 569.8 | 475.4 | |||||
Accumulated other comprehensive income (loss): | |||||||
Foreign currency translation adjustment | 20.4 | 28.1 | |||||
Deferred loss on cash flow hedging | (3.5 | ) | (9.0 | ) | |||
Pension and postretirement plan adjustment | (72.8 | ) | (78.1 | ) | |||
Total Stockholders' Equity | 547.1 | 447.4 | |||||
Noncontrolling Interest | 0.7 | 0.8 | |||||
Total Equity | 547.8 | 448.2 | |||||
Total Liabilities and Equity | $ | 1,757.5 | $ | 1,658.3 |
THREE MONTHS ENDED | NINE MONTHS ENDED | ||||||||||||||
SEPTEMBER 30 | SEPTEMBER 30 | ||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
(In millions, except per share data) | |||||||||||||||
Revenues | $ | 823.4 | $ | 664.9 | $ | 2,379.9 | $ | 1,821.3 | |||||||
Cost of sales | 685.9 | 534.8 | 1,967.9 | 1,462.4 | |||||||||||
Gross Profit | 137.5 | 130.1 | 412.0 | 358.9 | |||||||||||
Earnings of unconsolidated mines | 11.1 | 11.3 | 32.7 | 31.3 | |||||||||||
Operating Expenses | |||||||||||||||
Selling, general and administrative expenses | 111.1 | 105.2 | 340.9 | 303.8 | |||||||||||
Restructuring reversal | — | — | — | (1.9 | ) | ||||||||||
Loss on sale of assets | 0.1 | 4.1 | — | 4.7 | |||||||||||
111.2 | 109.3 | 340.9 | 306.6 | ||||||||||||
Operating Profit | 37.4 | 32.1 | 103.8 | 83.6 | |||||||||||
Other (income) expense | |||||||||||||||
Interest expense | 6.4 | 7.0 | 18.7 | 20.7 | |||||||||||
Applica settlement and litigation costs | — | 6.1 | (57.2 | ) | 13.0 | ||||||||||
Other | (0.9 | ) | (0.4 | ) | (2.9 | ) | (1.4 | ) | |||||||
5.5 | 12.7 | (41.4 | ) | 32.3 | |||||||||||
Income Before Income Taxes | 31.9 | 19.4 | 145.2 | 51.3 | |||||||||||
Income tax provision | 6.2 | 6.1 | 37.6 | 10.4 | |||||||||||
Net Income | 25.7 | 13.3 | 107.6 | 40.9 | |||||||||||
Net loss attributable to noncontrolling interest | — | 0.2 | 0.1 | 0.2 | |||||||||||
Net Income Attributable to Stockholders | $ | 25.7 | $ | 13.5 | $ | 107.7 | $ | 41.1 | |||||||
Comprehensive Income | $ | 10.3 | $ | 26.2 | $ | 110.8 | $ | 23.7 | |||||||
Basic Earnings per Share | $ | 3.06 | $ | 1.62 | $ | 12.85 | $ | 4.94 | |||||||
Diluted Earnings per Share | $ | 3.05 | $ | 1.62 | $ | 12.81 | $ | 4.93 | |||||||
Dividends per Share | $ | 0.5325 | $ | 0.5225 | $ | 1.5875 | $ | 1.5625 | |||||||
Basic Weighted Average Shares Outstanding | 8.395 | 8.332 | 8.382 | 8.327 | |||||||||||
Diluted Weighted Average Shares Outstanding | 8.416 | 8.346 | 8.407 | 8.338 |
NINE MONTHS ENDED | |||||||
SEPTEMBER 30 | |||||||
2011 | 2010 | ||||||
(In millions) | |||||||
Operating Activities | |||||||
Net income | $ | 107.6 | $ | 40.9 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation, depletion and amortization | 35.5 | 38.6 | |||||
Amortization of deferred financing fees | 2.0 | 1.8 | |||||
Deferred income taxes | 5.8 | 3.4 | |||||
Restructuring reversal | — | (1.9 | ) | ||||
Loss on sale of assets | — | 4.7 | |||||
Other non-current liabilities | (5.6 | ) | (21.6 | ) | |||
Other | 14.1 | (6.0 | ) | ||||
Working capital changes, excluding the effect of business dispositions: | |||||||
Accounts receivable | (61.2 | ) | (91.2 | ) | |||
Inventories | (100.1 | ) | (112.1 | ) | |||
Other current assets | (5.4 | ) | (10.6 | ) | |||
Accounts payable | 62.9 | 146.5 | |||||
Other current liabilities | (4.3 | ) | 11.9 | ||||
Net cash provided by operating activities | 51.3 | 4.4 | |||||
Investing Activities | |||||||
Expenditures for property, plant and equipment | (26.3 | ) | (17.7 | ) | |||
Proceeds from the sale of assets | 1.0 | 20.2 | |||||
Other | — | (1.4 | ) | ||||
Net cash provided by (used for) investing activities | (25.3 | ) | 1.1 | ||||
Financing Activities | |||||||
Additions to long-term debt | 12.1 | 6.7 | |||||
Reductions of long-term debt | (78.9 | ) | (30.3 | ) | |||
Net additions to revolving credit agreements | 9.8 | 0.9 | |||||
Cash dividends paid | (13.3 | ) | (13.0 | ) | |||
Financing fees paid | — | (3.4 | ) | ||||
Other | (0.4 | ) | — | ||||
Net cash used for financing activities | (70.7 | ) | (39.1 | ) | |||
Effect of exchange rate changes on cash | 0.4 | (6.7 | ) | ||||
Cash and Cash Equivalents | |||||||
Decrease for the period | (44.3 | ) | (40.3 | ) | |||
Balance at the beginning of the period | 261.9 | 256.2 | |||||
Balance at the end of the period | $ | 217.6 | $ | 215.9 |
NINE MONTHS ENDED | |||||||
SEPTEMBER 30 | |||||||
2011 | 2010 | ||||||
(In millions, except per share data) | |||||||
Stockholders' Equity: | |||||||
Class A Common Stock | $ | 6.8 | $ | 6.7 | |||
Class B Common Stock | 1.6 | 1.6 | |||||
Capital in Excess of Par Value | |||||||
Beginning balance | 22.6 | 16.1 | |||||
Stock-based compensation | 1.8 | 1.6 | |||||
Shares issued under stock compensation plans | 0.4 | 0.4 | |||||
24.8 | 18.1 | ||||||
Retained Earnings | |||||||
Beginning balance | 475.4 | 413.3 | |||||
Net income attributable to stockholders | 107.7 | 41.1 | |||||
Cash dividends on Class A and Class B common stock: | |||||||
2011 $1.5875 per share | (13.3 | ) | — | ||||
2010 $1.5625 per share | — | (13.0 | ) | ||||
569.8 | 441.4 | ||||||
Accumulated Other Comprehensive Income (Loss) | |||||||
Beginning balance | (59.0 | ) | (41.1 | ) | |||
Foreign currency translation adjustment | (7.7 | ) | (1.1 | ) | |||
Sale of certain NMHG operations | — | (7.1 | ) | ||||
Current period cash flow hedging activity | (2.3 | ) | (5.4 | ) | |||
Reclassification of hedging activity into earnings | 7.8 | (8.0 | ) | ||||
Current period pension and postretirement plan activity | (2.9 | ) | (0.1 | ) | |||
Reclassification of pension and postretirement plan activity into earnings | 8.2 | 4.3 | |||||
(55.9 | ) | (58.5 | ) | ||||
Total Stockholders' Equity | 547.1 | 409.3 | |||||
Noncontrolling Interest | |||||||
Beginning balance | 0.8 | 0.5 | |||||
Net loss | (0.1 | ) | (0.2 | ) | |||
Total Noncontrolling Interest | 0.7 | 0.3 | |||||
Total Equity | $ | 547.8 | $ | 409.6 |
Total charges expected to be incurred | Total charges incurred through December 31, 2010 | ||||||
NMHG Americas | |||||||
Severance | $ | 3.3 | $ | 3.3 | |||
NMHG Europe | |||||||
Severance | $ | 7.6 | $ | 7.6 | |||
Lease termination | 0.3 | 0.3 | |||||
$ | 7.9 | $ | 7.9 | ||||
NMHG Other | |||||||
Severance | $ | 1.1 | $ | 1.1 | |||
Total charges | $ | 12.3 | $ | 12.3 |
Severance | |||
Balance at January 1, 2011 | $ | 2.4 | |
Payments | (0.8 | ) | |
Balance at September 30, 2011 | $ | 1.6 |
SEPTEMBER 30 2011 | DECEMBER 31 2010 | ||||||
Manufactured inventories: | |||||||
Finished goods and service parts - NMHG | $ | 175.3 | $ | 152.6 | |||
Raw materials and work in process - NMHG | 228.6 | 171.8 | |||||
Sourced inventories - HBB | 93.8 | 84.7 | |||||
Retail inventories - KC | 66.3 | 59.3 | |||||
Total inventories at FIFO | 564.0 | 468.4 | |||||
Coal - NACoal | 14.9 | 10.9 | |||||
Mining supplies - NACoal | 12.4 | 11.4 | |||||
Total inventories at weighted average | 27.3 | 22.3 | |||||
NMHG LIFO reserve | (50.6 | ) | (43.3 | ) | |||
$ | 540.7 | $ | 447.4 |
Notional Amount | Average Fixed Rate | ||||||||||||||
SEPTEMBER 30 2011 | DECEMBER 31 2010 | SEPTEMBER 30 2011 | DECEMBER 31 2010 | Remaining Term at September 30, 2011 | |||||||||||
NMHG | $ | 204.5 | $ | 206.5 | 4.5 | % | 4.5 | % | Various, extending to February 2013 | ||||||
HBB | $ | 40.0 | $ | 65.0 | 4.6 | % | 4.6 | % | Various, extending to June 2012 |
Asset Derivatives | Liability Derivatives | ||||||||||||||||||
Balance Sheet Location | SEPTEMBER 30 2011 | DECEMBER 31 2010 | Balance Sheet Location | SEPTEMBER 30 2011 | DECEMBER 31 2010 | ||||||||||||||
Derivatives designated as hedging instruments | |||||||||||||||||||
Interest rate swap agreements | |||||||||||||||||||
Current | Other current liabilities | $ | — | $ | — | Other current liabilities | $ | 7.4 | $ | 4.7 | |||||||||
Long-term | Other long-term liabilities | — | — | Other long-term liabilities | 3.3 | 11.6 | |||||||||||||
Foreign currency exchange contracts | |||||||||||||||||||
Current | Prepaid expenses and other | 3.2 | 1.3 | Prepaid expenses and other | 1.3 | 1.2 | |||||||||||||
Other current liabilities | 0.2 | 1.7 | Other current liabilities | 0.8 | 1.7 | ||||||||||||||
Long-term | Other non-current assets | 0.2 | — | Other non-current assets | — | — | |||||||||||||
Total derivatives designated as hedging instruments | $ | 3.6 | $ | 3.0 | $ | 12.8 | $ | 19.2 | |||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||
Interest rate swap agreements | |||||||||||||||||||
Current | Other current liabilities | $ | — | $ | — | Other current liabilities | $ | — | $ | — | |||||||||
Foreign currency exchange contracts | |||||||||||||||||||
Current | Prepaid expenses and other | 2.4 | 0.5 | Prepaid expenses and other | 1.1 | 0.3 | |||||||||||||
Other current liabilities | 0.3 | 0.6 | Other current liabilities | 0.1 | 3.3 | ||||||||||||||
Total derivatives not designated as hedging instruments | $ | 2.7 | $ | 1.1 | $ | 1.2 | $ | 3.6 | |||||||||||
Total derivatives | $ | 6.3 | $ | 4.1 | $ | 14.0 | $ | 22.8 |
Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) | Location of Gain or (Loss) Reclassified from OCI into Income (Effective Portion) | Amount of Gain or (Loss) Reclassified from OCI into Income (Effective Portion) | Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | |||||||||||||||||||||||||||||||||||||||||||||||
THREE MONTHS | NINE MONTHS | THREE MONTHS | NINE MONTHS | THREE MONTHS | NINE MONTHS | ||||||||||||||||||||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||||||||||||||||||||
Interest rate swap agreements | $ | 0.1 | $ | (2.6 | ) | $ | (1.6 | ) | $ | (7.6 | ) | Interest expense | $ | (2.6 | ) | $ | (3.1 | ) | $ | (8.0 | ) | $ | (8.9 | ) | N/A | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Foreign currency exchange contracts | 5.1 | (1.4 | ) | 0.1 | (0.5 | ) | Cost of sales | (0.6 | ) | 5.0 | (1.5 | ) | 13.6 | N/A | — | — | — | — | |||||||||||||||||||||||||||||||||
Total | $ | 5.2 | $ | (4.0 | ) | $ | (1.5 | ) | $ | (8.1 | ) | $ | (3.2 | ) | $ | 1.9 | $ | (9.5 | ) | $ | 4.7 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||
Amount of Gain or (Loss) Recognized in Income on Derivative | |||||||||||||||||||||||||||||||||||||||||||||||||||
THREE MONTHS | NINE MONTHS | ||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | Location of Gain or (Loss) Recognized in Income on Derivative | 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swap agreements | Other | $ | — | $ | — | $ | — | $ | 0.2 | ||||||||||||||||||||||||||||||||||||||||||
Foreign currency exchange contracts | Cost of Sales or Other | 2.8 | (1.3 | ) | (1.5 | ) | (1.5 | ) | |||||||||||||||||||||||||||||||||||||||||||
Total | $ | 2.8 | $ | (1.3 | ) | $ | (1.5 | ) | $ | (1.3 | ) |
THREE MONTHS ENDED | NINE MONTHS ENDED | ||||||||||||||
SEPTEMBER 30 | SEPTEMBER 30 | ||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
Revenues | $ | 131.3 | $ | 117.8 | $ | 364.1 | $ | 338.9 | |||||||
Gross profit | $ | 16.5 | $ | 18.5 | $ | 52.3 | $ | 52.8 | |||||||
Income before income taxes | $ | 11.4 | $ | 11.3 | $ | 33.7 | $ | 31.3 | |||||||
Income from continuing operations | $ | 8.9 | $ | 8.5 | $ | 25.8 | $ | 23.7 | |||||||
Net income | $ | 8.9 | $ | 8.5 | $ | 25.8 | $ | 23.7 |
THREE MONTHS ENDED | NINE MONTHS ENDED | ||||||||||||||
SEPTEMBER 30 | SEPTEMBER 30 | ||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
Revenues | $ | 109.6 | $ | 86.3 | $ | 308.0 | $ | 243.4 | |||||||
Gross profit | $ | 31.2 | $ | 25.5 | $ | 90.8 | $ | 71.8 | |||||||
Income from continuing operations | $ | 4.5 | $ | 1.2 | $ | 11.8 | $ | 2.5 | |||||||
Net income | $ | 4.5 | $ | 1.2 | $ | 11.8 | $ | 2.5 |
2011 | |||
Balance at January 1 | $ | 40.0 | |
Warranties issued | 28.6 | ||
Settlements made | (24.5 | ) | |
Foreign currency effect | 0.1 | ||
Balance at September 30 | $ | 44.2 |
THREE MONTHS ENDED | NINE MONTHS ENDED | ||||||||||||||
SEPTEMBER 30 | SEPTEMBER 30 | ||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
Income before income taxes: | $ | 31.9 | $ | 19.4 | $ | 145.2 | $ | 51.3 | |||||||
Statutory taxes at 35% | $ | 11.2 | $ | 6.8 | $ | 50.8 | $ | 18.0 | |||||||
Interim adjustment | — | 1.5 | — | 1.6 | |||||||||||
Discrete items: | |||||||||||||||
NMHG sale of foreign investments | — | (0.4 | ) | — | (2.4 | ) | |||||||||
NMHG change in tax law | — | — | — | (1.8 | ) | ||||||||||
Other | (0.6 | ) | (0.5 | ) | (0.7 | ) | (0.3 | ) | |||||||
(0.6 | ) | (0.9 | ) | (0.7 | ) | (4.5 | ) | ||||||||
Other permanent items: | |||||||||||||||
NACoal percentage depletion | (0.8 | ) | (1.3 | ) | (4.0 | ) | (3.6 | ) | |||||||
Foreign tax rate differential | (2.7 | ) | (1.4 | ) | (7.7 | ) | (4.4 | ) | |||||||
Valuation allowance | (1.3 | ) | 1.0 | (3.6 | ) | 1.8 | |||||||||
Other | 0.4 | 0.4 | 2.8 | 1.5 | |||||||||||
(4.4 | ) | (1.3 | ) | (12.5 | ) | (4.7 | ) | ||||||||
Income tax provision | $ | 6.2 | $ | 6.1 | $ | 37.6 | $ | 10.4 | |||||||
Effective income tax rate | 19.4 | % | 31.4 | % | 25.9 | % | 20.3 | % |
THREE MONTHS ENDED | NINE MONTHS ENDED | ||||||||||||||
SEPTEMBER 30 | SEPTEMBER 30 | ||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
U.S. Pension | |||||||||||||||
Service cost | $ | — | $ | — | $ | — | $ | — | |||||||
Interest cost | 1.9 | 1.9 | 5.6 | 5.9 | |||||||||||
Expected return on plan assets | (2.3 | ) | (2.1 | ) | (7.1 | ) | (6.4 | ) | |||||||
Amortization of actuarial loss | 1.3 | 1.2 | 4.1 | 3.6 | |||||||||||
Amortization of prior service credit | (0.1 | ) | — | (0.3 | ) | (0.2 | ) | ||||||||
Total | $ | 0.8 | $ | 1.0 | $ | 2.3 | $ | 2.9 | |||||||
Non-U.S. Pension | |||||||||||||||
Service cost | $ | 0.5 | $ | 0.4 | $ | 1.6 | $ | 1.2 | |||||||
Interest cost | 1.9 | 1.8 | 5.7 | 5.3 | |||||||||||
Expected return on plan assets | (2.4 | ) | (2.2 | ) | (7.2 | ) | (6.5 | ) | |||||||
Amortization of actuarial loss | 1.0 | 0.7 | 3.0 | 2.2 | |||||||||||
Amortization of prior service credit | — | (0.1 | ) | (0.1 | ) | (0.1 | ) | ||||||||
Amortization of transition liability | — | 0.1 | 0.1 | 0.1 | |||||||||||
Total | $ | 1.0 | $ | 0.7 | $ | 3.1 | $ | 2.2 | |||||||
Postretirement | |||||||||||||||
Service cost | $ | — | $ | — | $ | 0.1 | $ | 0.1 | |||||||
Interest cost | 0.1 | 0.1 | 0.3 | 0.3 | |||||||||||
Amortization of prior service credit | — | — | (0.1 | ) | (0.3 | ) | |||||||||
Plan amendments | (2.9 | ) | — | (2.9 | ) | (0.7 | ) | ||||||||
Total | $ | (2.8 | ) | $ | 0.1 | $ | (2.6 | ) | $ | (0.6 | ) |
THREE MONTHS ENDED | NINE MONTHS ENDED | ||||||||||||||
SEPTEMBER 30 | SEPTEMBER 30 | ||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
Revenues from external customers | |||||||||||||||
NMHG | |||||||||||||||
NMHG Americas | $ | 389.8 | $ | 295.2 | $ | 1,149.2 | $ | 783.3 | |||||||
NMHG Europe | 180.3 | 110.5 | 549.2 | 314.4 | |||||||||||
NMHG Other | 58.7 | 37.2 | 165.0 | 134.1 | |||||||||||
628.8 | 442.9 | 1,863.4 | 1,231.8 | ||||||||||||
HBB | 126.7 | 133.3 | 331.6 | 339.2 | |||||||||||
KC | 48.9 | 47.5 | 129.8 | 131.2 | |||||||||||
NACoal | 21.0 | 42.4 | 58.3 | 122.3 | |||||||||||
NACCO and Other | — | — | — | — | |||||||||||
Eliminations | (2.0 | ) | (1.2 | ) | (3.2 | ) | (3.2 | ) | |||||||
Total | $ | 823.4 | $ | 664.9 | $ | 2,379.9 | $ | 1,821.3 | |||||||
Operating profit (loss) | |||||||||||||||
NMHG | |||||||||||||||
NMHG Americas | $ | 17.4 | $ | 15.2 | $ | 64.3 | $ | 31.5 | |||||||
NMHG Europe | 6.2 | (0.4 | ) | 15.4 | 2.3 | ||||||||||
NMHG Other | 0.5 | (6.6 | ) | 2.3 | (5.5 | ) | |||||||||
24.1 | 8.2 | 82.0 | 28.3 | ||||||||||||
HBB | 7.9 | 10.9 | 14.8 | 26.1 | |||||||||||
KC | (0.6 | ) | 0.1 | (10.3 | ) | (5.7 | ) | ||||||||
NACoal | 7.0 | 15.0 | 21.8 | 41.7 | |||||||||||
NACCO and Other | (0.9 | ) | (2.0 | ) | (4.5 | ) | (6.8 | ) | |||||||
Eliminations | (0.1 | ) | (0.1 | ) | — | — | |||||||||
Total | $ | 37.4 | $ | 32.1 | $ | 103.8 | $ | 83.6 |
THREE MONTHS ENDED | NINE MONTHS ENDED | ||||||||||||||
SEPTEMBER 30 | SEPTEMBER 30 | ||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
Net income (loss) attributable to stockholders | |||||||||||||||
NMHG | |||||||||||||||
NMHG Americas | $ | 12.3 | $ | 8.5 | $ | 47.0 | $ | 16.6 | |||||||
NMHG Europe | 5.9 | (1.1 | ) | 14.4 | (0.2 | ) | |||||||||
NMHG Other | (0.7 | ) | (3.6 | ) | (2.4 | ) | 2.7 | ||||||||
17.5 | 3.8 | 59.0 | 19.1 | ||||||||||||
HBB | 4.1 | 5.6 | 6.4 | 12.8 | |||||||||||
KC | (0.5 | ) | (0.1 | ) | (6.5 | ) | (3.7 | ) | |||||||
NACoal | 5.8 | 11.0 | 17.5 | 30.4 | |||||||||||
NACCO and Other | (0.7 | ) | (6.1 | ) | 33.0 | (14.4 | ) | ||||||||
Eliminations | (0.5 | ) | (0.7 | ) | (1.7 | ) | (3.1 | ) | |||||||
Total | $ | 25.7 | $ | 13.5 | $ | 107.7 | $ | 41.1 |
THREE MONTHS | NINE MONTHS | ||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
Revenues | |||||||||||||||
Americas | $ | 389.8 | $ | 295.2 | $ | 1,149.2 | $ | 783.3 | |||||||
Europe | 180.3 | 110.5 | 549.2 | 314.4 | |||||||||||
Other | 58.7 | 37.2 | 165.0 | 134.1 | |||||||||||
$ | 628.8 | $ | 442.9 | $ | 1,863.4 | $ | 1,231.8 | ||||||||
Operating profit (loss) | |||||||||||||||
Americas | $ | 17.4 | $ | 15.2 | $ | 64.3 | $ | 31.5 | |||||||
Europe | 6.2 | (0.4 | ) | 15.4 | 2.3 | ||||||||||
Other | 0.5 | (6.6 | ) | 2.3 | (5.5 | ) | |||||||||
$ | 24.1 | $ | 8.2 | $ | 82.0 | $ | 28.3 | ||||||||
Interest expense | $ | 4.1 | $ | 4.3 | $ | 11.9 | $ | 12.5 | |||||||
Other (income) expense | $ | (1.6 | ) | $ | (0.8 | ) | $ | (3.7 | ) | $ | (2.4 | ) | |||
Net income attributable to stockholders | $ | 17.5 | $ | 3.8 | $ | 59.0 | $ | 19.1 | |||||||
Effective income tax rate | 19.0 | % | 23.4 | % | 20.2 | % | (a) |
(a) | The effective income tax rate is not meaningful. |
Revenues | |||
2010 | $ | 442.9 | |
Increase in 2011 from: | |||
Unit volume and product mix | 139.5 | ||
Foreign currency | 29.0 | ||
Unit price | 14.0 | ||
Parts | 2.9 | ||
Other | 0.5 | ||
2011 | $ | 628.8 |
Operating Profit | |||
2010 | $ | 8.2 | |
Loss on the sale of certain operations | 3.4 | ||
11.6 | |||
Increase (decrease) in 2011 from: | |||
Gross profit | 26.6 | ||
Other | 3.9 | ||
Other selling, general and administrative expenses | (10.1 | ) | |
Foreign currency | (7.9 | ) | |
2011 | $ | 24.1 |
Revenues | |||
2010 | $ | 1,231.8 | |
Increase (decrease) in 2011 from: | |||
Unit volume and product mix | 528.6 | ||
Foreign currency | 61.1 | ||
Unit price | 35.4 | ||
Other | 22.7 | ||
Parts | 19.3 | ||
Sale of certain operations | (35.5 | ) | |
2011 | $ | 1,863.4 |
Operating Profit | |||
2010 | $ | 28.3 | |
Loss on sale of certain operations | 4.2 | ||
Restructuring programs | (1.9 | ) | |
30.6 | |||
Increase (decrease) in 2011 from: | |||
Gross profit | 114.8 | ||
Other | 0.6 | ||
Other selling, general and administrative expenses | (44.2 | ) | |
Foreign currency | (19.8 | ) | |
2011 | $ | 82.0 |
2011 | 2010 | Change | |||||||||
Operating activities: | |||||||||||
Net income | $ | 58.9 | $ | 18.9 | $ | 40.0 | |||||
Depreciation and amortization | 23.6 | 25.8 | (2.2 | ) | |||||||
Other | 10.1 | (20.3 | ) | 30.4 | |||||||
Working capital changes, excluding the effects of business dispositions: | |||||||||||
Accounts receivable | (83.9 | ) | (80.1 | ) | (3.8 | ) | |||||
Inventories | (79.0 | ) | (67.3 | ) | (11.7 | ) | |||||
Accounts payable | 57.4 | 124.8 | (67.4 | ) | |||||||
Other | 1.9 | 15.1 | (13.2 | ) | |||||||
Net cash provided by (used for) operating activities | (11.0 | ) | 16.9 | (27.9 | ) | ||||||
Investing activities: | |||||||||||
Expenditures for property, plant and equipment | (11.0 | ) | (6.3 | ) | (4.7 | ) | |||||
Proceeds from the sale of assets | 0.5 | 0.5 | — | ||||||||
Proceeds from the sale of businesses | — | 3.0 | (3.0 | ) | |||||||
Other | — | 0.1 | (0.1 | ) | |||||||
Net cash used for investing activities | (10.5 | ) | (2.7 | ) | (7.8 | ) | |||||
Cash flow before financing activities | $ | (21.5 | ) | $ | 14.2 | $ | (35.7 | ) |
2011 | 2010 | Change | |||||||||
Financing activities: | |||||||||||
Net reductions of long-term debt and revolving credit agreements | $ | (9.1 | ) | $ | (17.6 | ) | $ | 8.5 | |||
Cash dividends paid to NACCO | (10.0 | ) | (5.0 | ) | (5.0 | ) | |||||
Financing fees paid | — | (3.0 | ) | 3.0 | |||||||
Net cash used for financing activities | $ | (19.1 | ) | $ | (25.6 | ) | $ | 6.5 |
SEPTEMBER 30 2011 | DECEMBER 31 2010 | Change | |||||||||
Cash and cash equivalents | $ | 129.3 | $ | 169.5 | $ | (40.2 | ) | ||||
Other net tangible assets | 384.4 | 296.5 | 87.9 | ||||||||
Net assets | 513.7 | 466.0 | 47.7 | ||||||||
Total debt | (226.2 | ) | (234.5 | ) | 8.3 | ||||||
Total equity | $ | 287.5 | $ | 231.5 | $ | 56.0 | |||||
Debt to total capitalization | 44 | % | 50 | % | (6 | )% |
THREE MONTHS | NINE MONTHS | ||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
Revenues | $ | 126.7 | $ | 133.3 | $ | 331.6 | $ | 339.2 | |||||||
Operating profit | $ | 7.9 | $ | 10.9 | $ | 14.8 | $ | 26.1 | |||||||
Interest expense | $ | 1.3 | $ | 1.8 | $ | 4.2 | $ | 5.4 | |||||||
Other (income) expense | $ | 0.8 | $ | — | $ | 1.0 | $ | 0.2 | |||||||
Net income | $ | 4.1 | $ | 5.6 | $ | 6.4 | $ | 12.8 | |||||||
Effective income tax rate | 29.3 | % | 38.5 | % | 33.3 | % | 37.6 | % |
Revenues | |||
2010 | $ | 133.3 | |
Increase (decrease) in 2011 from: | |||
Unit volume and product mix | (6.9 | ) | |
Average sales price | (0.9 | ) | |
Foreign currency | 1.2 | ||
2011 | $ | 126.7 |
Operating Profit | |||
2010 | $ | 10.9 | |
Increase (decrease) in 2011 from: | |||
Gross profit | (4.1 | ) | |
Foreign currency | 0.8 | ||
Other selling, general and administrative expenses | 0.3 | ||
2011 | $ | 7.9 |
Revenues | |||
2010 | $ | 339.2 | |
Increase (decrease) in 2011 from: | |||
Unit volume and product mix | (7.1 | ) | |
Average sales price | (3.7 | ) | |
Foreign currency | 3.2 | ||
2011 | $ | 331.6 |
Operating Profit | |||
2010 | $ | 26.1 | |
Increase (decrease) in 2011 from: | |||
Gross profit | (13.6 | ) | |
Other selling, general and administrative expenses | (0.4 | ) | |
Foreign currency | 2.7 | ||
2011 | $ | 14.8 |
2011 | 2010 | Change | |||||||||
Operating activities: | |||||||||||
Net income | $ | 6.4 | $ | 12.8 | $ | (6.4 | ) | ||||
Depreciation and amortization | 3.4 | 2.2 | 1.2 | ||||||||
Other | 3.8 | (2.9 | ) | 6.7 | |||||||
Working capital changes | 6.5 | (3.2 | ) | 9.7 | |||||||
Net cash provided by operating activities | 20.1 | 8.9 | 11.2 | ||||||||
Investing activities: | |||||||||||
Expenditures for property, plant and equipment | (2.5 | ) | (1.7 | ) | (0.8 | ) | |||||
Net cash used for investing activities | (2.5 | ) | (1.7 | ) | (0.8 | ) | |||||
Cash flow before financing activities | $ | 17.6 | $ | 7.2 | $ | 10.4 |
2011 | 2010 | Change | |||||||||
Financing activities: | |||||||||||
Reductions to long-term debt and revolving credit agreements | $ | (60.6 | ) | $ | (0.9 | ) | $ | (59.7 | ) | ||
Capital contribution from NACCO | 4.0 | — | 4.0 | ||||||||
Other | (0.2 | ) | — | (0.2 | ) | ||||||
Net cash used for financing activities | $ | (56.8 | ) | $ | (0.9 | ) | $ | (55.9 | ) |
SEPTEMBER 30 2011 | SEPTEMBER 30 2010 | Change | |||||||||
Cash and cash equivalents | $ | 6.4 | $ | 40.4 | $ | (34.0 | ) | ||||
Other net tangible assets | 72.8 | 77.0 | (4.2 | ) | |||||||
Net assets | 79.2 | 117.4 | (38.2 | ) | |||||||
Total debt | (54.2 | ) | (115.3 | ) | 61.1 | ||||||
Total equity | $ | 25.0 | $ | 2.1 | $ | 22.9 | |||||
Debt to total capitalization | 68 | % | (a) | (a) |
(a) | Debt to total capitalization is not meaningful. |
SEPTEMBER 30 2011 | DECEMBER 31 2010 | Change | |||||||||
Cash and cash equivalents | $ | 6.4 | $ | 45.6 | $ | (39.2 | ) | ||||
Other net tangible assets | 72.8 | 83.4 | (10.6 | ) | |||||||
Net assets | 79.2 | 129.0 | (49.8 | ) | |||||||
Total debt | (54.2 | ) | (115.1 | ) | 60.9 | ||||||
Total equity | $ | 25.0 | $ | 13.9 | $ | 11.1 | |||||
Debt to total capitalization | 68 | % | 89 | % | (21 | )% |
THREE MONTHS | NINE MONTHS | ||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
Revenues | $ | 48.9 | $ | 47.5 | $ | 129.8 | $ | 131.2 | |||||||
Operating profit (loss) | $ | (0.6 | ) | $ | 0.1 | $ | (10.3 | ) | $ | (5.7 | ) | ||||
Interest expense | $ | 0.1 | $ | 0.1 | $ | 0.3 | $ | 0.3 | |||||||
Other (income) expense | $ | 0.1 | $ | 0.1 | $ | 0.1 | $ | 0.1 | |||||||
Net loss | $ | (0.5 | ) | $ | (0.1 | ) | $ | (6.5 | ) | $ | (3.7 | ) | |||
Effective income tax rate | 37.5 | % | (a) | 39.3 | % | 39.3 | % |
Revenues | |||
2010 | $ | 47.5 | |
Increase (decrease) in 2011 from: | |||
New store sales | 4.3 | ||
KC comparable store sales | 0.2 | ||
Closed stores | (2.7 | ) | |
LGC comparable store sales | (0.4 | ) | |
2011 | $ | 48.9 |
Operating Profit (Loss) | |||
2010 | $ | 0.1 | |
Increase (decrease) in 2011 from: | |||
Selling, general and administrative expenses | (0.4 | ) | |
New stores | (0.3 | ) | |
KC comparable stores | (0.3 | ) | |
Closed stores | 0.3 | ||
2011 | $ | (0.6 | ) |
Revenues | |||
2010 | $ | 131.2 | |
Increase (decrease) in 2011 from: | |||
Closed stores | (9.3 | ) | |
LGC comparable store sales | (1.4 | ) | |
KC comparable store sales | (0.5 | ) | |
New store sales | 9.8 | ||
2011 | $ | 129.8 |
Operating Loss | |||
2010 | $ | (5.7 | ) |
(Increase) decrease in 2011 from: | |||
KC comparable stores | (2.2 | ) | |
Selling, general and administrative expenses | (1.7 | ) | |
New stores | (1.1 | ) | |
LGC comparable stores | (0.3 | ) | |
Closed stores | 0.7 | ||
2011 | $ | (10.3 | ) |
2011 | 2010 | Change | |||||||||
Operating activities: | |||||||||||
Net loss | $ | (6.5 | ) | $ | (3.7 | ) | $ | (2.8 | ) | ||
Depreciation and amortization | 2.3 | 2.3 | — | ||||||||
Other | 0.9 | 0.3 | 0.6 | ||||||||
Working capital changes | (17.9 | ) | (7.6 | ) | (10.3 | ) | |||||
Net cash used for operating activities | (21.2 | ) | (8.7 | ) | (12.5 | ) | |||||
Investing activities: | |||||||||||
Expenditures for property, plant and equipment | (2.1 | ) | (2.0 | ) | (0.1 | ) | |||||
Net cash used for investing activities | (2.1 | ) | (2.0 | ) | (0.1 | ) | |||||
Cash flow before financing activities | $ | (23.3 | ) | $ | (10.7 | ) | $ | (12.6 | ) |
2011 | 2010 | Change | |||||||||
Financing activities: | |||||||||||
Net additions to revolving credit agreement | $ | 15.0 | $ | 3.6 | $ | 11.4 | |||||
Cash dividends paid to NACCO | (2.5 | ) | — | (2.5 | ) | ||||||
Financing fees paid | — | (0.4 | ) | 0.4 | |||||||
Other | (0.1 | ) | — | (0.1 | ) | ||||||
Net cash provided by financing activities | $ | 12.4 | $ | 3.2 | $ | 9.2 |
SEPTEMBER 30 2011 | SEPTEMBER 30 2010 | Change | |||||||||
Cash and cash equivalents | $ | 0.8 | $ | 1.0 | $ | (0.2 | ) | ||||
Other net tangible assets | 53.3 | 43.5 | 9.8 | ||||||||
Net assets | 54.1 | 44.5 | 9.6 | ||||||||
Total debt | (15.0 | ) | (3.6 | ) | (11.4 | ) | |||||
Total equity | $ | 39.1 | $ | 40.9 | $ | (1.8 | ) | ||||
Debt to total capitalization | 28 | % | 8 | % | 20 | % |
SEPTEMBER 30 2011 | DECEMBER 31 2010 | Change | |||||||||
Cash and cash equivalents | $ | 0.8 | $ | 11.7 | $ | (10.9 | ) | ||||
Other net tangible assets | 53.3 | 36.4 | 16.9 | ||||||||
Net assets | 54.1 | 48.1 | 6.0 | ||||||||
Total debt | (15.0 | ) | — | (15.0 | ) | ||||||
Total equity | $ | 39.1 | $ | 48.1 | $ | (9.0 | ) | ||||
Debt to total capitalization | 28 | % | (a) | (a) |
(a) | Debt to total capitalization is not meaningful. |
THREE MONTHS | NINE MONTHS | ||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||
Coteau | 3.2 | 3.6 | 9.8 | 10.9 | |||||||
Falkirk | 2.0 | 2.2 | 5.5 | 5.5 | |||||||
Sabine | 1.2 | 1.1 | 3.5 | 3.4 | |||||||
Unconsolidated mines | 6.4 | 6.9 | 18.8 | 19.8 | |||||||
San Miguel | — | 0.9 | — | 2.4 | |||||||
MLMC | 0.7 | 1.0 | 1.9 | 2.7 | |||||||
Consolidated mines | 0.7 | 1.9 | 1.9 | 5.1 | |||||||
Total tons sold | 7.1 | 8.8 | 20.7 | 24.9 |
THREE MONTHS | NINE MONTHS | ||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
Revenues | $ | 21.0 | $ | 42.4 | $ | 58.3 | $ | 122.3 | |||||||
Operating profit | $ | 7.0 | $ | 15.0 | $ | 21.8 | $ | 41.7 | |||||||
Interest expense | $ | 0.9 | $ | 0.8 | $ | 2.3 | $ | 2.5 | |||||||
Other (income) expense | $ | (0.4 | ) | $ | (0.1 | ) | $ | (1.2 | ) | $ | (0.4 | ) | |||
Net income | $ | 5.8 | $ | 11.0 | $ | 17.5 | $ | 30.4 | |||||||
Effective income tax rate | 10.8 | % | 23.1 | % | 15.5 | % | 23.2 | % |
Revenues | |||
2010 | $ | 42.4 | |
Decrease in 2011 from: | |||
San Miguel | (11.1 | ) | |
Consolidated mining operations | (7.4 | ) | |
Royalty and other income | (2.9 | ) | |
2011 | $ | 21.0 |
Operating Profit | |||
2010 | $ | 15.0 | |
Decrease in 2011 from: | |||
Consolidated mining operations | (5.1 | ) | |
Royalty and other income | (1.4 | ) | |
Other selling, general and administrative expenses | (1.3 | ) | |
Earnings of unconsolidated mines | (0.2 | ) | |
2011 | $ | 7.0 |
Revenues | |||
2010 | $ | 122.3 | |
Decrease in 2011 from: | |||
San Miguel | (35.0 | ) | |
Consolidated mining operations | (16.0 | ) | |
Pre-development revenue | (7.6 | ) | |
Royalty and other income | (5.4 | ) | |
2011 | $ | 58.3 |
Operating Profit | |||
2010 | $ | 41.7 | |
Increase (decrease) in 2011 from: | |||
Consolidated mining operations | (9.2 | ) | |
Pre-development revenue | (7.4 | ) | |
Royalty and other income | (2.9 | ) | |
Other selling, general and administrative expenses | (2.1 | ) | |
Earnings of unconsolidated mines | 1.7 | ||
2011 | $ | 21.8 |
2011 | 2010 | Change | |||||||||
Operating activities: | |||||||||||
Net income | $ | 17.5 | $ | 30.4 | $ | (12.9 | ) | ||||
Depreciation, depletion and amortization | 5.9 | 7.6 | (1.7 | ) | |||||||
Other | 4.2 | 0.9 | 3.3 | ||||||||
Working capital changes | (3.7 | ) | (14.6 | ) | 10.9 | ||||||
Net cash provided by operating activities | 23.9 | 24.3 | (0.4 | ) | |||||||
Investing activities: | |||||||||||
Expenditures for property, plant and equipment | (10.6 | ) | (6.8 | ) | (3.8 | ) | |||||
Proceeds from the sale of assets | 0.5 | 16.7 | (16.2 | ) | |||||||
Investments in other unconsolidated affiliates | — | (1.4 | ) | 1.4 | |||||||
Net cash provided by (used for) investing activities | (10.1 | ) | 8.5 | (18.6 | ) | ||||||
Cash flow before financing activities | $ | 13.8 | $ | 32.8 | $ | (19.0 | ) |
2011 | 2010 | Change | |||||||||
Financing activities: | |||||||||||
Net reductions of long-term debt and revolving credit agreements | $ | (2.3 | ) | $ | (7.8 | ) | $ | 5.5 | |||
Cash dividends paid to NACCO | (15.0 | ) | (9.0 | ) | (6.0 | ) | |||||
Intercompany loans | — | (10.8 | ) | 10.8 | |||||||
Net cash used for financing activities | $ | (17.3 | ) | $ | (27.6 | ) | $ | 10.3 |
SEPTEMBER 30 2011 | DECEMBER 31 2010 | Change | |||||||||
Cash and cash equivalents | $ | 1.5 | $ | 5.0 | $ | (3.5 | ) | ||||
Other net tangible assets | 125.7 | 118.4 | 7.3 | ||||||||
Coal supply agreement, net | 58.5 | 60.0 | (1.5 | ) | |||||||
Net assets | 185.7 | 183.4 | 2.3 | ||||||||
Total debt | (41.4 | ) | (41.9 | ) | 0.5 | ||||||
Total equity | $ | 144.3 | $ | 141.5 | $ | 2.8 | |||||
Debt to total capitalization | 22 | % | 23 | % | (1 | )% |
THREE MONTHS | NINE MONTHS | ||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | — | |||||||
Operating loss | $ | (0.9 | ) | $ | (2.0 | ) | $ | (4.5 | ) | $ | (6.8 | ) | |||
Other (income) expense | $ | 0.2 | $ | 6.5 | $ | (56.3 | ) | $ | 14.1 | ||||||
Net income (loss) | $ | (0.7 | ) | $ | (6.1 | ) | $ | 33.0 | $ | (14.4 | ) |
THREE MONTHS | NINE MONTHS | ||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
NMHG | $ | 2.5 | $ | 1.6 | $ | 7.5 | $ | 4.8 | |||||||
HBB | $ | 0.8 | $ | 0.8 | $ | 2.7 | $ | 2.5 | |||||||
KC | $ | — | $ | — | $ | 0.1 | $ | 0.1 | |||||||
NACoal | $ | 1.2 | $ | 0.9 | $ | 3.5 | $ | 2.7 |
SEPTEMBER 30 2011 | DECEMBER 31 2010 | Change | |||||||||
Cash and cash equivalents | $ | 217.6 | $ | 261.9 | $ | (44.3 | ) | ||||
Other net tangible assets | 622.8 | 533.8 | 89.0 | ||||||||
Coal supply agreement, net | 58.5 | 60.0 | (1.5 | ) | |||||||
Net assets | 898.9 | 855.7 | 43.2 | ||||||||
Total debt | (336.8 | ) | (391.5 | ) | 54.7 | ||||||
Closed mine obligations, net of tax | (14.3 | ) | (16.0 | ) | 1.7 | ||||||
Total equity | $ | 547.8 | $ | 448.2 | $ | 99.6 | |||||
Debt to total capitalization | 38 | % | 47 | % | (9 | )% |
Name of Mine or Quarry (1)(2) | Mine Act Section 104 Significant & Substantial Citations (3) | Total Dollar Value of Proposed MSHA Assessments | |||||
MLMC (Red Hills Mine) | — | $ | — | ||||
Coteau (Freedom Mine) | — | — | |||||
Falkirk (Falkirk Mine) | — | — | |||||
Sabine (South Hallsville No. 1 Mine) | 1 | 540 | |||||
Demery (Five Forks Mine) | — | — | |||||
Caddo Creek (Marshall Mine) | — | — | |||||
Camino Real (Eagle Pass Mine) | — | — | |||||
Florida Limerock Operations: | — | — | |||||
White Rock Quarry - North | — | — | |||||
White Rock Quarry - South | — | — | |||||
Krome Quarry | — | — | |||||
Alico Quarry | — | — | |||||
FEC Quarry | — | — | |||||
SCL Quarry | — | — | |||||
Card Sound Quarry | — | — | |||||
Pennsuco Quarry | — | — | |||||
Total | 1 | $ | 540 |
Name of Mine or Quarry (1)(2) | Mine Act Section 104 Significant & Substantial Citations (3) | Mine Act Section 104(b) Order (4) | Total Dollar Value of Proposed MSHA Assessments | Total Dollar Value of Proposed MSHA Assessments Outstanding at September 30, 2011 (5) | ||||||||||
MLMC (Red Hills Mine) | — | — | $ | — | $ | — | ||||||||
Coteau (Freedom Mine) | — | — | 308 | — | ||||||||||
Falkirk (Falkirk Mine) | 1 | — | 761 | — | ||||||||||
Sabine (South Hallsville No. 1 Mine) | 3 | 1 | 952 | 100 | ||||||||||
Demery (Five Forks Mine) | — | — | — | — | ||||||||||
Caddo Creek (Marshall Mine) | — | — | — | — | ||||||||||
Camino Real (Eagle Pass Mine) | — | — | — | — | ||||||||||
Florida Limerock Operations: | — | — | — | — | ||||||||||
White Rock Quarry - North | — | — | 127 | — | ||||||||||
White Rock Quarry - South | — | — | — | — | ||||||||||
Krome Quarry | — | — | — | — | ||||||||||
Alico Quarry | — | — | — | — | ||||||||||
FEC Quarry | — | — | — | — | ||||||||||
SCL Quarry | — | — | — | — | ||||||||||
Card Sound Quarry | — | — | — | — | ||||||||||
Pennsuco Quarry | — | — | — | — | ||||||||||
Total | 4 | 1 | $ | 2,148 | $ | 100 |
(5) | Outstanding amounts of $100 at Sabine are currently being contested. |
NACCO Industries, Inc. (Registrant) | |||
Date: | November 8, 2011 | /s/ Kenneth C. Schilling | |
Kenneth C. Schilling | |||
Vice President and Controller (principal financial and accounting officer) |
Exhibit | ||
Number* | Description of Exhibits | |
31(i)(1) | Certification of Alfred M. Rankin, Jr. pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act | |
31(i)(2) | Certification of Kenneth C. Schilling pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act | |
32 | Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, signed and dated by Alfred M. Rankin, Jr. and Kenneth C. Schilling | |
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 |
1. | I have reviewed this quarterly report on Form 10-Q of NACCO Industries, Inc.; |
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: | November 8, 2011 | /s/ Alfred M. Rankin, Jr. | |
Alfred M. Rankin, Jr. | |||
Chairman, President and Chief Executive Officer (Principal Executive Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of NACCO Industries, Inc.; |
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: | November 8, 2011 | /s/ Kenneth C. Schilling | |
Kenneth C. Schilling | |||
Vice President and Controller (Principal Financial 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: | November 8, 2011 | /s/ Alfred M. Rankin, Jr. | |
Alfred M. Rankin, Jr. | |||
Chairman, President and Chief Executive Officer (Principal Executive Officer) |
Date: | November 8, 2011 | /s/ Kenneth C. Schilling | |
Kenneth C. Schilling | |||
Vice President and Controller (Principal Financial Officer) |
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2011 | Dec. 31, 2010 |
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Common Class A [Member] | ||
Common stock, par value | $ 1 | $ 1 |
Common stock, shares outstanding | 6,800,615 | 6,737,199 |
Common Class B [Member] | ||
Common stock, par value | $ 1 | $ 1 |
Common stock, shares outstanding | 1,595,781 | 1,596,093 |
Unaudited Condensed Consolidated Statements of Operations (USD $) In Millions, except Share data in Thousands, unless otherwise specified | 3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2011 | Sep. 30, 2010 | Sep. 30, 2011 | Sep. 30, 2010 | |
Revenues | $ 823.4 | $ 664.9 | $ 2,379.9 | $ 1,821.3 |
Cost of sales | 685.9 | 534.8 | 1,967.9 | 1,462.4 |
Gross Profit | 137.5 | 130.1 | 412.0 | 358.9 |
Earnings of unconsolidated mines | 11.1 | 11.3 | 32.7 | 31.3 |
Operating Expenses | ||||
Selling, general and administrative expenses | 111.1 | 105.2 | 340.9 | 303.8 |
Restructuring reversal | 0 | 0 | 0 | (1.9) |
Loss on sale of assets | 0.1 | 4.1 | 0 | 4.7 |
Operating Expenses | 111.2 | 109.3 | 340.9 | 306.6 |
Operating Profit | 37.4 | 32.1 | 103.8 | 83.6 |
Other (income) expense | ||||
Interest expense | 6.4 | 7.0 | 18.7 | 20.7 |
Applica settlement and litigation costs | 0 | 6.1 | (57.2) | 13.0 |
Other | (0.9) | (0.4) | (2.9) | (1.4) |
Other (income) expense | 5.5 | 12.7 | (41.4) | 32.3 |
Income Before Income Taxes | 31.9 | 19.4 | 145.2 | 51.3 |
Income tax provision | 6.2 | 6.1 | 37.6 | 10.4 |
Net Income | 25.7 | 13.3 | 107.6 | 40.9 |
Net loss attributable to noncontrolling interest | 0 | 0.2 | 0.1 | 0.2 |
Net Income Attributable to Stockholders | 25.7 | 13.5 | 107.7 | 41.1 |
Comprehensive Income | $ 10.3 | $ 26.2 | $ 110.8 | $ 23.7 |
Basic Earnings per Share | $ 3.06 | $ 1.62 | $ 12.85 | $ 4.94 |
Diluted Earnings per Share | $ 3.05 | $ 1.62 | $ 12.81 | $ 4.93 |
Dividends per Share | $ 0.5325 | $ 0.5225 | $ 1.5875 | $ 1.5625 |
Basic Weighted Average Shares Outstanding | 8,395 | 8,332 | 8,382 | 8,327 |
Diluted Weighted Average Shares Outstanding | 8,416 | 8,346 | 8,407 | 8,338 |
Document and Entity Information | 9 Months Ended | ||
---|---|---|---|
Sep. 30, 2011 | Nov. 04, 2011
Common Class A [Member] | Nov. 04, 2011
Common Class B [Member] | |
Entity Information [Line Items] | |||
Entity Registrant Name | NACCO INDUSTRIES INC | ||
Entity Central Index Key | 0000789933 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-Q | ||
Document Period End Date | Sep. 30, 2011 | ||
Document Fiscal Year Focus | 2011 | ||
Document Fiscal Period Focus | Q3 | ||
Amendment Flag | false | ||
Shares Outstanding | 6,800,815 | 1,595,581 |
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Financial Instruments and Derivative Financial Instruments | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Financial Instruments and Derivative Financial Instruments Financial Instruments 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 capital leases, were determined using current rates offered for similar obligations taking into account subsidiary credit risk. At September 30, 2011, the fair value of revolving credit agreements and long-term debt, excluding capital leases, was $327.4 million compared with the book value of $334.4 million. At December 31, 2010, the fair value of revolving credit agreements and long-term debt, excluding capital leases, was $384.6 million compared with the book value of $391.2 million. Derivative Financial Instruments The Company uses forward foreign currency exchange contracts to partially reduce risks related to transactions denominated in foreign currencies. The Company offsets fair value amounts related to foreign currency exchange contracts executed with the same counterparty. These contracts hedge firm commitments and forecasted transactions relating to cash flows associated with sales and purchases denominated in currencies other than the subsidiaries' functional currencies. Changes in the fair value of forward foreign currency exchange contracts that are effective as hedges are recorded in accumulated other comprehensive income (loss) (“OCI”). Deferred gains or losses are reclassified from OCI to the Unaudited Condensed Consolidated Statements of Operations in the same period as the gains or losses from the underlying transactions are recorded and are generally recognized in cost of sales. The ineffective portion of derivatives that are classified as hedges is immediately recognized in earnings and generally recognized in cost of sales. The Company uses interest rate swap agreements to partially reduce risks related to floating rate financing agreements that are subject to changes in the market rate of interest. Terms of the interest rate swap agreements require the Company to receive a variable interest rate and pay a fixed interest rate. The Company's interest rate swap agreements and its variable rate financings are predominately based upon the three-month and six-month LIBOR. Changes in the fair value of interest rate swap agreements that are effective as hedges are recorded in OCI. Deferred gains or losses are reclassified from OCI to the Unaudited Condensed Consolidated Statements of Operations in the same period as the gains or losses from the underlying transactions are recorded and are generally recognized in interest expense. The ineffective portion of derivatives that are classified as hedges is immediately recognized in earnings and included on the line “Other” in the “Other (income) expense” section of the Unaudited Condensed Consolidated Statements of Operations. Interest rate swap agreements and forward foreign currency exchange contracts held by the Company have been designated as hedges of forecasted cash flows. The Company does not currently hold any nonderivative instruments designated as hedges or any derivatives designated as fair value hedges. The Company periodically enters into foreign currency exchange contracts that do not meet the criteria for hedge accounting. These derivatives are used to reduce the Company's exposure to foreign currency risk related to forecasted purchase or sales transactions or forecasted intercompany cash payments or settlements. Gains and losses on these derivatives are included on the line “Cost of sales” or “Other” in the “Other (income) expense” section of the Unaudited Condensed Consolidated Statements of Operations. Cash flows from hedging activities are reported in the Unaudited Condensed Consolidated Statements of Cash Flows in the same classification as the hedged item, generally as a component of cash flows from operations. The Company measures its derivatives at fair value on a recurring basis using significant observable inputs, which is Level 2 as defined in the fair value hierarchy. The Company uses a present value technique that incorporates the LIBOR swap curve, foreign currency spot rates and foreign currency forward rates to value its derivatives, including its interest rate swap agreements and foreign currency exchange contracts, and also incorporates the effect of its subsidiary and counterparty credit risk into the valuation. Foreign Currency Derivatives: NMHG and HBB held forward foreign currency exchange contracts with total notional amounts of $252.7 million and $19.7 million, respectively, at September 30, 2011, primarily denominated in euros, British pounds, Japanese yen, Canadian dollars, Australian dollars, Swedish kroner and Mexican pesos. NMHG and HBB held forward foreign currency exchange contracts with total notional amounts of $338.1 million and $16.5 million, respectively, at December 31, 2010, primarily denominated in euros, British pounds, Japanese yen, Australian dollars, Brazilian Real, Canadian dollars, Swedish kroner and Mexican pesos. The fair value of these contracts approximated a net asset of $3.0 million and a net liability of $2.4 million at September 30, 2011 and December 31, 2010, respectively. Forward foreign currency exchange contracts that qualify for hedge accounting are used to hedge transactions expected to occur within the next twelve months. The mark-to-market effect of forward foreign currency exchange contracts that are considered effective as hedges has been included in OCI. Based on market valuations at September 30, 2011, $1.6 million of the amount included in OCI at September 30, 2011 is expected to be reclassified as income into the Consolidated Statement of Operations over the next twelve months, as the transactions occur. Interest Rate Derivatives: NMHG and HBB have interest rate swap agreements that hedge interest payments on their term loan agreements. The following table summarizes the notional amounts, related rates and remaining terms of active interest rate swap agreements at September 30, 2011 and December 31, 2010:
In addition to the interest rate swap agreements reflected in the table, at September 30, 2011, HBB holds certain contracts that begin on various dates starting in June 2012 and extend to various dates through June 2013. These contracts increase the notional amount to $65.0 million at September 30, 2011, but the amount outstanding at any one time will not exceed the balance of the HBB term loan agreement. The fair value of all interest rate swap agreements was a net liability of $10.7 million and $16.3 million at September 30, 2011 and December 31, 2010, respectively. The mark-to-market effect of interest rate swap agreements that are considered effective as hedges has been included in OCI. Based on market valuations at September 30, 2011, $4.9 million of the amount included in OCI is expected to be reclassified as expense into the Consolidated Statement of Operations over the next twelve months, as cash flow payments are made in accordance with the interest rate swap agreements. The interest rate swap agreements held by NMHG and HBB on September 30, 2011 are expected to continue to be effective as hedges. The following table summarizes the fair value of derivative instruments reflected on a gross basis at September 30, 2011 and December 31, 2010 as recorded in the Unaudited Condensed Consolidated Balance Sheets:
The following table summarizes the pre-tax impact of derivative instruments for the three and nine months ended September 30 as recorded in the Unaudited Condensed Consolidated Statements of Operations:
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Product Warranties | 9 Months Ended | ||||||||||||||||||||||||||||||||
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Sep. 30, 2011 | |||||||||||||||||||||||||||||||||
Product Warranties Disclosures [Abstract] | |||||||||||||||||||||||||||||||||
Product Warranty Disclosure [Text Block] | Product Warranties NMHG provides a standard warranty on its lift trucks, generally for six to twelve months or 1,000 to 2,000 hours. For certain components in some series of lift trucks, NMHG provides a standard warranty of two to three years or 4,000 to 6,000 hours. HBB provides a standard warranty to consumers for all of its products. The specific terms and conditions of those warranties vary depending upon the product brand. In general, if a product is returned under warranty, a refund is provided to the consumer by HBB's customer, the retailer. Generally, the retailer returns those products to HBB for a credit. The Company estimates the costs which may be incurred under its standard warranty programs and records a liability for such costs at the time product revenue is recognized. In addition, NMHG sells separately-priced extended warranty agreements which provide a warranty for an additional two to five years or up to 2,400 to 10,000 hours. The specific terms and conditions of those warranties vary depending upon the product sold and the country in which NMHG does business. Revenue received for the sale of extended warranty contracts is deferred and recognized in the same manner as the costs incurred to perform under the warranty contracts. NMHG also maintains a quality enhancement program under which it provides for specifically identified field product improvements in its warranty obligation. Accruals under this program are determined based on estimates of the potential number of claims to be processed and the cost of processing those claims based on historical costs. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. Factors that affect the Company's warranty liability include the number of units sold, historical and anticipated rates of warranty claims and the cost per claim. Changes in the Company's current and long-term warranty obligations, including deferred revenue on extended warranty contracts, are as follows:
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Basis of Presentation | 9 Months Ended |
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Sep. 30, 2011 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of NACCO Industries, Inc. (the “parent company” or “NACCO”) and its wholly owned subsidiaries (collectively, “NACCO Industries, Inc. and Subsidiaries” or the “Company”). Intercompany accounts and transactions are eliminated in consolidation. Also included is Shanghai Hyster Forklift Ltd., a 75% owned joint venture of NMHG Holding Co. (“NMHG”) in China. The Company's subsidiaries operate in the following principal industries: lift trucks, small appliances, specialty retail and mining. The Company manages its subsidiaries primarily by industry. NMHG designs, engineers, manufactures, sells and services a comprehensive line of lift trucks and aftermarket parts marketed globally under the Hyster® and Yale® brand names, primarily to independent Hyster® and Yale® retail dealerships. Lift trucks and component parts are manufactured in the United States, Northern Ireland, Mexico, Italy, Brazil, The Netherlands, China, Japan, the Philippines and Vietnam. Hamilton Beach Brands, Inc. (“HBB”) is a leading designer, marketer and distributor of small electric household appliances primarily in the United States, Canada, Mexico and Latin America, as well as commercial products for restaurants, bars and hotels. The Kitchen Collection, LLC (“KC”) is a national specialty retailer of kitchenware and gourmet foods operating under the Kitchen Collection® and Le Gourmet Chef® store names in outlet and traditional malls throughout the United States. The North American Coal Corporation and its affiliated coal companies (collectively, “NACoal”) mine and market coal primarily as fuel for power generation and provide selected value-added mining services for other natural resources companies primarily in the United States. These financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles 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 as of September 30, 2011 and the results of its operations for the three and nine months ended September 30, 2011 and 2010 and the results of its cash flows and changes in equity for the nine months ended September 30, 2011 and 2010 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, 2010. The balance sheet at December 31, 2010 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. generally accepted accounting principles for complete financial statements. Operating results for the three and nine months ended September 30, 2011 are not necessarily indicative of the results that may be expected for the remainder of the year ending December 31, 2011. Because the HBB and KC businesses are seasonal, 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, 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, 2010. |
Equity Investments | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments Disclosure [Text Block] | Equity Investments NMHG has a 20% ownership interest in NMHG Financial Services, Inc. (“NFS”), a joint venture with GE Capital Corporation (“GECC”), formed primarily for the purpose of providing financial services to independent Hyster® and Yale® lift truck dealers and National Account customers in the United States. NMHG's ownership in NFS is accounted for using the equity method of accounting. NFS is considered a variable interest entity; however, the Company has concluded that NMHG is not the primary beneficiary. NMHG does not consider its variable interest in NFS to be significant. NMHG has a 50% ownership interest in Sumitomo NACCO Materials Handling Company, Ltd. (“SN”), a limited liability company which was formed primarily to manufacture and distribute Sumitomo-Yale lift trucks in Japan and export Hyster®- and Yale®-branded lift trucks and related components and service parts outside of Japan. NMHG purchases products from SN under normal trade terms based on current market prices. NMHG's ownership in SN is also accounted for using the equity method of accounting. The Company's percentage share of the net income or loss from its equity investments in NFS and SN is reported on the line “Other” in the “Other (income) expense” section of the Unaudited Condensed Consolidated Statements of Operations. The Company's equity investments are included on the line “Other Non-current Assets” in the Unaudited Condensed Consolidated Balance Sheets. At September 30, 2011 and December 31, 2010, NMHG's investment in NFS was $11.8 million and $12.1 million, respectively, and NMHG's investment in SN was $31.3 million and $30.3 million, respectively. Summarized financial information for these two NMHG equity investments is as follows:
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Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and Other Postretirement Benefits Disclosure [Text Block] | Retirement Benefit Plans The Company maintains various defined benefit pension plans that provide benefits based on years of service and average compensation during certain periods. The Company's policy is to make contributions to fund these plans within the range allowed by applicable regulations. Plan assets consist primarily of publicly traded stocks and government and corporate bonds. Pension benefits are frozen for all employees other than certain NACoal unconsolidated mines' employees and NMHG employees in the United Kingdom and the Netherlands. All other eligible employees of the Company, including employees whose pension benefits are frozen, receive retirement benefits under defined contribution retirement plans. The Company also maintains health care and life insurance plans that provide benefits to a limited number of eligible retired employees. These plans have no assets. Under the Company's current policy, plan benefits are funded at the time they are due to participants. Effective December 31, 2011, NMHG will eliminate all retiree life insurance plans and its subsidized retiree medical plan for employees who have not retired before such date. As of January 1, 2012, the Company will no longer maintain any retiree life insurance plans. Accordingly, the Company recognized a gain of approximately $2.9 million during the third quarter of 2011 due to the NMHG plan amendments. The components of pension and postretirement (income) expense are set forth below:
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Contingencies | 9 Months Ended |
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Sep. 30, 2011 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 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, including product liability, 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. Although the ultimate disposition of these proceedings is not presently determinable, management believes, after consultation with its legal counsel, that the likelihood is remote that material costs will be incurred in excess of accruals already recognized. |
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Note 6 - Unconsolidated Subsidiaries [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unconsolidated Subsidiaries [Text Block] | Unconsolidated Subsidiaries Nine of NACoal's wholly owned subsidiaries, The Coteau Properties Company, The Falkirk Mining Company, The Sabine Mining Company, (collectively, the "project mining subsidiaries"), Demery Resources Company, LLC (“Demery”), Caddo Creek Resources Company, LLC (“Caddo Creek”), Camino Real Fuels, LLC (“Camino Real”), Liberty Fuels Company, LLC (“Liberty”), NoDak Energy Services, LLC ("NoDak") and North American Coal Corporation India Private Limited ("NACC India") each meet the definition of a variable interest entity. The contracts with the project mining subsidiaries' utility customers allow each mine to sell coal at a price based on actual cost plus an agreed pre-tax profit per ton. The project mining subsidiaries are capitalized primarily with debt financing, which the utility customers have arranged and guaranteed. The obligations of the project mining subsidiaries are without recourse to NACCO and NACoal. Demery, Caddo Creek, Camino Real, Liberty and NoDak were formed during 2008 and 2009. NACC India was formed during 2011. Demery, Caddo Creek, Camino Real and Liberty (collectively with the project mining subsidiaries, the "unconsolidated mines") were formed to develop, construct and operate surface mines under long-term contracts. NoDak was formed to operate and maintain a coal processing facility. NACC India was formed to provide technical advisory services to the third-party owners of a coal mine in India. The contracts with the unconsolidated operations' customers allow for reimbursement at a price based on actual costs plus an agreed pre-tax profit per ton of coal sold or actual costs plus a management fee. Although NACoal owns 100% of the equity and manages the daily operations of these entities, the Company has determined that the equity capital provided by NACoal is not sufficient to adequately finance the ongoing activities or absorb any expected losses without additional support from the customers. The customers have a controlling financial interest and have the power to direct the activities that most significantly affect the economic performance of the entities. As a result, NACoal is not the primary beneficiary and therefore does not consolidate these entities' financial position or results of operations. The taxes resulting from the earnings of the unconsolidated mines and NoDak are solely the responsibility of the Company. The pre-tax income from the seven unconsolidated mines is reported on the line “Earnings of unconsolidated mines” in the Unaudited Condensed Consolidated Statements of Operations, with related taxes included in the provision for income taxes. The Company has included the pre-tax earnings of the unconsolidated mines above operating profit as they are an integral component of the Company's business and operating results. The pre-tax income from NoDak is reported on the line "Other" in the "Other (income) expense" section of the Unaudited Condensed Consolidated Statement of Operations, with the related income taxes included in the provision for income taxes. The net income from NACC India is reported on the line "Other" in the "Other (income) expense" section of the Unaudited Condensed Consolidated Statement of Operations. The investment in the nine unconsolidated operations and related tax position was $21.7 million and $21.6 million at September 30, 2011 and December 31, 2010, respectively, and is included on the line “Other Non-current Assets” in the Unaudited Condensed Consolidated Balance Sheets. The Company's maximum risk of loss relating to these entities is limited to its invested capital, which was $4.1 million and $5.0 million at September 30, 2011 and December 31, 2010, respectively. Summarized financial information for the nine unconsolidated operations is as follows:
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Recently Issued Accounting Standards | 9 Months Ended |
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Sep. 30, 2011 | |
New Accounting Pronouncement or Change in Accounting Principle, Current Period Disclosures [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Recently Issued Accounting Standards Accounting Standards Adopted in 2011: On January 1, 2011, the Company adopted authoritative guidance issued by the Financial Accounting Standards Board ("FASB") on multiple-deliverable revenue arrangements. The guidance amends the criteria for separating consideration in multiple-deliverable arrangements. This guidance establishes a selling price hierarchy for determining the selling price of a deliverable, which is based on: (a) vendor-specific objective evidence; (b) third-party evidence; or (c) estimates. This guidance also eliminates the residual method of allocation and requires that arrangement consideration be allocated at the inception of the arrangement to all deliverables using the relative selling price method. In addition, this guidance significantly expands required disclosures related to a vendor's multiple-deliverable revenue arrangements. The adoption of the guidance did not have a material effect on the Company's financial position, results of operations, cash flows or related disclosures. Accounting Standards Not Yet Adopted: In May 2011, the FASB issued authoritative guidance on fair value measurement, which is effective for the Company on January 1, 2012. The guidance resulted in a consistent definition of fair value and common requirements for measurement of and disclosure about fair value between U.S. generally accepted accounting principles and International Financial Reporting Standards. The Company does not expect the adoption of the guidance to have a material effect on its financial position, results of operations, cash flows or related disclosures. In June 2011, the FASB issued authoritative guidance on the presentation of comprehensive income, which is effective for the Company on January 1, 2012. The guidance provides an entity with the option to present the total of comprehensive income, the components of net income and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In both choices, an entity is required to present each component of net income along with total net income, each component of other comprehensive income along with a total for other comprehensive income and a total amount for comprehensive income. The guidance eliminates the option to present the components of other comprehensive income as part of the statement of changes in equity. The Company does not expect the adoption of the guidance to have a material effect on its financial position, results of operations, cash flows or related disclosures. Reclassifications: Certain amounts in the prior periods' unaudited condensed consolidated financial statements have been reclassified to conform to the current period's presentation. |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities Disclosure [Text Block] | Restructuring and Related Programs During 2009, NMHG's management approved a plan to close its facility in Modena, Italy and consolidate its activities into NMHG's facility in Masate, Italy. These actions were taken to further reduce NMHG's manufacturing capacity to more appropriate levels. As a result, NMHG recognized a charge of approximately $5.6 million during 2009. Of this amount, $5.3 million related to severance and $0.3 million related to lease impairment. During 2010, $1.9 million of the accrual was reversed as a result of a reduction in the expected amount to be paid to former employees due to the finalization of an agreement with the Italian government. Severance payments of $0.4 million were made during the first nine months of 2011. Payments related to this restructuring program are expected to continue through 2012. No further charges related to this plan are expected. During 2008 and 2009, based on the decline in economic conditions, NMHG's management reduced its number of employees worldwide. As a result, NMHG recognized a charge of approximately $6.3 million in 2008 and $3.4 million in 2009 related to severance. During 2009, $1.1 million of the accrual was reversed as a result of a reduction in the expected amount paid to employees. Severance payments of $0.4 million were made during the first nine months of 2011. Payments are expected to continue through 2012. No further charges related to this plan are expected. Following is the detail of the cash charges related to the NMHG programs:
Following is the activity related to the liability for the NMHG programs. Amounts for severance expected to be paid within one year are included on the line “Accrued payroll” and amounts for severance expected to be paid after one year are included on the line “Other Long-term Liabilities” in the Unaudited Condensed Consolidated Balance Sheets.
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Text Block] | Income Taxes The income tax provision includes U.S. federal, state and local, and foreign income taxes and is based on the application of a forecasted annual income tax rate applied to the current quarter's year-to-date pre-tax income or loss. In determining the estimated annual effective income tax rate, the Company analyzes various factors, including projections of the Company's annual earnings, taxing jurisdictions in which the earnings will be generated, the impact of state and local income taxes, the Company's ability to use tax credits and net operating loss carryforwards, and available tax planning alternatives. Discrete items, including the effect of changes in tax laws, tax rates and certain circumstances with respect to valuation allowances or other unusual or non-recurring tax adjustments are reflected in the period in which they occur as an addition to, or reduction from, the income tax provision, rather than included in the estimated effective annual income tax rate. Additionally, the Company's interim effective income tax rate is computed and applied without regard to pre-tax losses where such losses are not expected to generate a current-year tax benefit as reflected in the interim adjustment line in the table below. A reconciliation of the Company's consolidated federal statutory and effective income tax is as follows:
During the first nine months of 2010, NMHG sold investments in subsidiaries in Australia and Europe for pre-tax losses of $0.2 million and $2.2 million, respectively. Due to the difference between the book basis and tax basis of the investments in each subsidiary, the Company recognized tax benefits related to the sales during the first nine months of 2010. During the second quarter of 2010, the Company recognized a tax benefit for the reduction in a required reserve for uncertain tax positions related to certain foreign tax law changes which became effective and reduced the statute of limitations for certain items. |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Text Block] | Inventories Inventories are summarized as follows:
The cost of certain manufactured inventories at NMHG, including service parts, has been determined using the last-in-first-out (“LIFO”) method. At September 30, 2011 and December 31, 2010, 35% and 33%, respectively, of total inventories were determined using the LIFO method. An actual valuation of inventory under the LIFO method can be made only at the end of the year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations must be based on management's estimates of expected year-end inventory levels and costs. Because these estimates are subject to change and may be different than the actual inventory levels and costs at the end of the year, interim results are subject to the final year-end LIFO inventory valuation. During 2010, reductions in LIFO inventories at NMHG resulted in liquidations of LIFO inventory layers carried at lower costs compared with current year purchases. The income statement effect of such liquidations on “Cost of sales" was a benefit of $0.4 million and $1.7 million during the three and nine months ended September 30, 2010, respectively. |
Other Events and Transactions | 9 Months Ended |
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Sep. 30, 2011 | |
Other Events and Transactions [Abstract] | |
Other Events and Transactions [Text Block] | Other Events and Transactions NACoal: During the second quarter of 2010 and the third quarter of 2011, NACoal entered into agreements to sell $30.5 million of assets, primarily two draglines. The sales of the assets are expected to occur in the fourth quarter of 2011 and in 2012. As a result, these assets have been classified as held for sale in the Unaudited Condensed Consolidated Balance Sheet at September 30, 2011 and December 31, 2010. During the second quarter of 2010, NACoal received and recorded a payment of $7.6 million, which is included on the line “Revenues” in the Unaudited Condensed Consolidated Statement of Operations, related to the reimbursement from Mississippi Power Company for previously recognized costs for pre-development activities. NACoal also received a payment of $3.5 million related to Mississippi Power Company's purchase of permit assets which approximated NACoal's book value. During the third quarter of 2010, NACoal sold the majority of the assets of its investment in Great American Energy for cash proceeds of $11.2 million, which is included on the line "Proceeds from the sale of assets" in the Unaudited Condensed Consolidated Statement of Cash Flows. NACCO and Other: In 2006, the Company initiated litigation in the Delaware Chancery Court against Applica Incorporated ("Applica") and individuals and entities affiliated with Applica's shareholder, Harbinger Capital Partners Master Fund, Ltd. The litigation alleged a number of contract and tort claims against the defendants related to the failed transaction with Applica, which had been previously announced. On February 14, 2011, the parties to this litigation entered into a settlement agreement. The settlement agreement provided for, among other things, the payment of $60 million to the Company and dismissal of the lawsuit with prejudice. The payment was received in February 2011. Litigation costs related to the failed transaction with Applica were $2.8 million during the first quarter of 2011. As a result of the settlement during the first quarter of 2011, no further litigation costs in relation to this matter will be incurred. Litigation costs were $6.1 million and $13.0 million during the three and nine months ended September 30, 2010, respectively. |
Unaudited Condensed Consolidated Statements of Changes in Equity (Parenthetical) (USD $) | 9 Months Ended | |
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Sep. 30, 2011 | Sep. 30, 2010 | |
Cash dividends on Class A and Class B common stock: | $ 1.5875 | $ 1.5625 |
Guarantees | 9 Months Ended |
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Sep. 30, 2011 | |
Guarantees [Abstract] | |
Schedule of Guarantor Obligations [Text Block] | Guarantees Under various financing arrangements for certain customers, including independent retail dealerships, NMHG provides guarantees of the residual values of lift trucks or recourse or repurchase obligations such that NMHG would be obligated in the event of default by the customer. Terms of the third-party financing arrangements for which NMHG is providing a guarantee generally range from one to five years. Total guarantees and amounts subject to standby recourse or repurchase obligations at September 30, 2011 and December 31, 2010 were $196.2 million and $193.3 million, respectively. As of September 30, 2011, losses anticipated under the terms of the guarantees, standby recourse or repurchase obligations were $2.7 million and reserves have been provided for such losses based on historical experience in the accompanying unaudited condensed consolidated financial statements. NMHG generally retains a security interest in the related assets financed such that, in the event NMHG would become obligated under the terms of the guarantees, standby recourse or repurchase obligations, NMHG would take title to the assets financed. The fair value of collateral held at September 30, 2011 was approximately $223.7 million based on Company estimates. The Company estimates the fair value of the collateral using information regarding the original sales price, the current age of the equipment and general market conditions that influence the value of both new and used lift trucks. The Company also regularly monitors the external credit ratings of the entities in which it has provided guarantees, standby recourse or repurchase obligations. As of September 30, 2011, the Company did not believe there was a significant risk of non-payment or non-performance of the obligations by these entities; however, based upon the economic environment, there can be no assurance that the risk may not increase in the future. In addition, NMHG has an agreement with GECC to limit its exposure to losses at certain eligible dealers. Under this agreement, losses related to $45.5 million of guarantees for these certain eligible dealers are limited to 7.5% of their original loan balance, or $10.0 million as of September 30, 2011. The $45.5 million is included in the $196.2 million of total amounts subject to guarantees, standby recourse or repurchase obligations at September 30, 2011. Generally, NMHG sells lift trucks through its independent dealer network or directly to customers. These dealers and customers may enter into a financing transaction with NFS or other unrelated third parties. NFS provides debt financing to dealers and lease financing to both dealers and customers. On occasion, the credit quality of a customer or credit concentration issues within GECC may necessitate NMHG providing guarantees, standby recourse or repurchase obligations of the lift trucks purchased by customers and financed through NFS. At September 30, 2011, approximately $120.7 million of the Company's total guarantees, standby recourse or repurchase obligations of $196.2 million related to transactions with NFS. In addition, in connection with the joint venture agreement, NMHG also provides a guarantee to GECC for 20% of NFS' debt with GECC, such that NMHG would become liable under the terms of NFS' debt agreements with GECC in the case of default by NFS. At September 30, 2011, the amount of NFS' debt guaranteed by NMHG was $145.3 million. NFS has not defaulted under the terms of this debt financing in the past, and although there can be no assurances, NMHG is not aware of any circumstances that would cause NFS to default in future periods. |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Disclosure [Text Block] | Business Segments NACCO is a holding company with the following principal subsidiaries: NMHG, HBB, KC and NACoal. See Note 1 for a discussion of the Company's industries and product lines. NACCO's non-operating segment, NACCO and Other, includes the accounts of the parent company and Bellaire Corporation. The Company has reportable segments for the following three management units: NMHG Americas, NMHG Europe and NMHG Other. NMHG Americas includes its operations in the United States, Canada, Mexico, Brazil and Latin America. NMHG Europe includes its operations in Europe, the Middle East and Africa. NMHG Other includes NMHG's corporate headquarters, its remaining wholly owned dealership and its immaterial operating segments, which include operations in the Asia-Pacific region. Certain amounts are allocated to these geographic management units and are included in the segment results presented below, including product development costs, corporate headquarters expenses, information technology infrastructure costs and NACCO management fees, which are determined by NMHG's corporate headquarters and not directly incurred by the geographic operations. In addition, other costs are incurred directly by these geographic management units based upon the location of the manufacturing plant or sales units, including manufacturing variances, product liability, warranty and sales discounts, which may not be associated with the geographic management unit of the ultimate end user sales location where revenues and margins are reported. Therefore, the reported results of each NMHG segment cannot be considered stand-alone entities as all NMHG reportable segments are inter-related and integrate into a single global NMHG business. Financial information for each of NACCO'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. Other transactions among reportable segments are recognized based on current market prices of similar third-party transactions.
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