Stockholders' Equity and Earnings Per Share

12 Months Ended

Dec. 31, 2014

Equity [Abstract]

Stockholders' Equity and Earnings Per Share

Stockholders' Equity and Earnings Per Share

NACCO Industries, Inc. Class A common stock is traded on the New York Stock Exchange under the ticker symbol “NC.” Because of transfer restrictions on Class B common stock, no trading market has developed, or is expected to develop, for the Company's Class B common stock. The Class B common stock is convertible into Class A common stock on a one-for-one basis at any time at the request of the holder. The Company's Class A common stock and Class B common stock have the same cash dividend rights per share. The Class A common stock has one vote per share and the Class B common stock has ten votes per share. The total number of authorized shares of Class A common stock and Class B common stock at December 31, 2014 was 25,000,000 shares and 6,756,176 shares, respectively. Treasury shares of Class A common stock totaling 2,548,336 and 1,912,322 at December 31, 2014 and 2013, respectively, have been deducted from shares outstanding.

Stock Repurchase Programs: On November 8, 2011, the Company announced that the Company's Board of Directors approved the repurchase of up to $50 million of the Company's outstanding Class A common stock (the "2011 Stock Repurchase Program"). The original authorization for the 2011 Stock Repurchase Program expired on December 31, 2012; however, in November 2012 the Company's Board of Directors approved an extension of the 2011 Stock Repurchase Program through December 31, 2013. In total, the Company repurchased $35.6 million of Class A common stock under the 2011 Stock Repurchase Program.

On November 12, 2013, the Company's Board of Directors terminated the 2011 Stock Repurchase Program and approved a new stock repurchase program (the "2013 Stock Repurchase Program") providing for the purchase of up to $60 million of the Company's outstanding Class A Common Stock through December 31, 2015. The timing and amount of any repurchases under the 2013 Stock Repurchase Program will be determined at the discretion of the Company's management based on a number of factors, including the availability of capital, other capital allocation alternatives and market conditions for the Company's Class A common stock. The 2013 Stock Repurchase Program does not require the Company to acquire any specific number of shares. It may be modified, suspended, extended or terminated by the Company at any time without prior notice and may be executed through open market purchases, privately negotiated transactions or otherwise. All or part of the repurchases under the 2013 Stock Repurchase Program may be implemented under a Rule 10b5-1 trading plan, which would allow repurchases under pre-set terms at times when the Company might otherwise be prevented from doing so.

As of December 31, 2014, the Company repurchased 680,013 shares of Class A Common Stock for an aggregate purchase price of $36.0 million under the 2013 Stock Repurchase Program (the "2013 Program"). During 2014, the Company repurchased $35.1 million under the 2013 Program. During 2014, the average purchase price per share and number of shares repurchased under 2013 Program were $52.83 per share and 663,918 shares, respectively.

Stock Options: The 1975 and 1981 stock option plans, as amended, provide for the granting to officers and other key employees of options to purchase Class A common stock and Class B common stock of the Company at a price not less than the market value of such stock at the date of grant. Options become exercisable over a four-year period and expire ten years from the date of the grant. During the three-year period ending December 31, 2014, there were 80,701 shares of Class A common stock and 80,100 shares of Class B common stock available for grant. However, no options were granted during the three-year period ended December 31, 2014 and no options remain outstanding at the end of any of the years ended December 31, 2014, 2013 or 2012. At present, the Company does not intend to issue additional stock options.

Stock Compensation:See Note 2 for a discussion of the Company's restricted stock awards.

Amounts Reclassified out of Accumulated Other Comprehensive Income: The following table summarizes the amounts reclassified out of AOCI and recognized in the Consolidated Statement of Operations:

	Amount reclassified from AOCI
Details about AOCI components	2014			2013			Location of loss (gain) reclassified from AOCI into income
	(In thousands)
Loss (gain) on cash flow hedging
Foreign exchange contracts	$	(108	)	$	(213	)	Cost of sales
Interest rate contracts	1,495			460			Interest expense
	1,387			247			Total before income tax expense
	(489		)	(95		)	Income tax expense (benefit)
	$	898		$	152		Net of tax
Pension and postretirement plan
Actuarial loss	$	1,015		$	1,995		(a)
Prior-service credit	(75		)	(154		)	(a)
	940			1,841			Total before income tax expense
	(313		)	(740		)	Income tax expense (benefit)
	$	627		$	1,101		Net of tax
Total reclassifications for the period	$	1,525		$	1,253		Net of tax

(a) These AOCI components are included in the computation of pension expense. See Note 16 for a discussion of the Company's pension expense.

Earnings per Share: For purposes of calculating earnings per share, no adjustments have been made to the reported amounts of net income.

The weighted average number of shares of Class A common stock and Class B common stock outstanding used to calculate basic and diluted earnings per share were as follows:

	2014			2013		2012
Basic weighted average shares outstanding	7,590			8,105		8,384
Dilutive effect of restricted stock awards	N/A			19		30
Diluted weighted average shares outstanding	7,590			8,124		8,414
Continuing operations	$	(5.02	)	$	5.48	$	5.04
Discontinued operations	—			—		7.93
Basic earnings (loss) per share	$	(5.02	)	$	5.48	$	12.97
Continuing operations	$	(5.02	)	$	5.47	$	5.02
Discontinued operations	—			—		7.90
Diluted earnings (loss) per share	$	(5.02	)	$	5.47	$	12.92