Business Segments

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Business Segments

Business Segments

NACCO is a holding company with the following reportable segments: NACoal, HBB and KC. 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.

Financial information for each of NACCO's reportable segments is presented in the following table. The accounting policies of the reportable segments are described in Note 2. The line “Eliminations” in the revenues section eliminates revenues from HBB sales to KC. The amounts of these revenues are based on current market prices of similar third-party transactions. No other sales transactions occur among reportable segments.

The majority of NACoal's revenues is generated from its consolidated mining operations and dragline mining services. MLMC's customer, Choctaw Generation Limited Partnership until February 28, 2013 and KMRC RH, LLC subsequent to February 28, 2013, accounted for approximately 39%, 42% and 56% of NACoal's revenues for the years ended December 31, 2014, 2013 and 2012, respectively. Reed Minerals' largest customer, Alabama Coal Cooperative, accounted for approximately 27%, 27% and 15% of NACoal's revenues for the years ended December 31, 2014, 2013 and 2012, respectively. The results of Reed Minerals operations have been included in the Company's consolidated financial statements since August 31, 2012. The results of Weston have been included since December 16, 2014. Wal-Mart accounted for approximately 33%, 31% and 31% of HBB’s revenues in 2014, 2013 and 2012, respectively. HBB’s five largest customers accounted for approximately 56%, 55% and 53% of HBB’s revenues for the years ended December 31, 2014, 2013 and 2012, respectively. The loss of or significant reduction in sales to any key customer could result in significant decreases in NACoal's and HBB’s revenue and profitability and an inability to sustain or grow its business.

The management fees charged to operating subsidiaries represent an allocation of corporate overhead of the parent company. Management fees are allocated among all subsidiaries based upon the relative size and complexity of each subsidiary. The Company believes the allocation method is consistently applied and reasonable. Management fees included in the Selling, general and administrative expenses of the subsidiaries were $8.5 million, $6.8 million and $6.9 million for 2014, 2013 and 2012, respectively. In addition, the parent company received management fees from Hyster-Yale prior to the spin-off of $9.6 million for the year ended December 31, 2012.

	2014			2013			2012
Revenues from external customers
NACoal	$	172,702		$	193,651		$	132,367
HBB	559,683			547,790			521,567
KC	168,545			196,033			224,695
Eliminations	(4,148		)	(4,808		)	(5,265		)
Total	$	896,782		$	932,666		$	873,364
Gross profit (loss)
NACoal	$	(3,139	)	$	25,230		$	27,998
HBB	117,570			115,506			102,289
KC	71,621			80,972			95,832
NACCO and Other	(461		)	(469		)	(278		)
Eliminations	(519		)	52			101
Total	$	185,072		$	221,291		$	225,942
Selling, general and administrative expenses, including Amortization of intangible assets
NACoal	$	36,147		$	30,786		$	36,801
HBB	81,798			74,570			66,481
KC	79,056			91,878			100,350
NACCO and Other	4,996			5,765			6,723
Total	$	201,997		$	202,999		$	210,355

	2014			2013			2012
Operating profit (loss)
NACoal	$	(89,030	)	$	37,461		$	43,239
HBB	35,772			40,960			35,815
KC	(7,075		)	(10,903		)	(4,512		)
NACCO and Other	(5,456		)	(6,233		)	(7,000		)
Eliminations	(520		)	51			100
Total	$	(66,309	)	$	61,336		$	67,642
Interest expense
NACoal	$	6,034		$	3,105		$	2,909
HBB	1,137			1,279			2,635
KC	367			390			479
NACCO and Other	28			1			65
Total	$	7,566		$	4,775		$	6,088
Interest income
NACoal	$	(823	)	$	(19	)	$	(152	)
HBB	(4		)	(1		)	—
KC	—			—			—
NACCO and Other	(4		)	(205		)	(10		)
Total	$	(831	)	$	(225	)	$	(162	)
Other (income) expense, including closed mine obligations
NACoal	$	44		$	(1,013	)	$	(1,325	)
HBB	1,136			462			344
KC	65			70			86
NACCO and Other	2,284			1,547			4,583
Total	$	3,529		$	1,066		$	3,688
Income tax provision (benefit)
NACoal	$	(43,308	)	$	3,462		$	9,037
HBB	10,359			14,127			11,636
KC	(2,904		)	(4,479		)	(1,990		)
NACCO and Other	(2,420		)	(1,858		)	(2,989		)
Eliminations	(182		)	18			171
Total	$	(38,455	)	$	11,270		$	15,865
Income (loss) from continuing operations, net of tax
NACoal	$	(50,977	)	$	31,926		$	32,770
HBB	23,144			25,093			21,200
KC	(4,603		)	(6,884		)	(3,087		)
NACCO and Other	(5,344		)	(5,718		)	(8,649		)
Eliminations	(338		)	33			(71		)
Total	$	(38,118	)	$	44,450		$	42,163

	2014			2013			2012
Total assets
NACoal	$	389,964		$	419,786		$	368,652
HBB	270,265			228,891			215,503
KC	56,260			70,014			83,977
NACCO and Other	96,918			131,085			154,605
Eliminations	(42,887		)	(39,820		)	(46,431		)
Total	$	770,520		$	809,956		$	776,306
Depreciation, depletion and amortization
NACoal	$	22,003		$	16,601		$	10,849
HBB	2,693			3,475			3,113
KC	3,048			4,162			3,611
NACCO and Other	326			334			419
Total	$	28,070		$	24,572		$	17,992
Capital expenditures, excluding acquisitions of business
NACoal	$	51,228		$	52,748		$	37,125
HBB	4,516			2,313			3,223
KC	1,193			2,150			3,872
NACCO and Other	563			238			462
Total	$	57,500		$	57,449		$	44,682

Data By Geographic Region

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

	United States		Other		Consolidated
2014
Revenues from unaffiliated customers, based on the customers’ location	$	779,890	$	116,892	$	896,782
Long-lived assets	$	182,116	$	5,780	$	187,896
2013
Revenues from unaffiliated customers, based on the customers’ location	$	813,609	$	119,057	$	932,666
Long-lived assets	$	246,902	$	5,486	$	252,388
2012
Revenues from unaffiliated customers, based on the customers’ location	$	746,800	$	126,564	$	873,364
Long-lived assets	$	197,141	$	6,034	$	203,175