Fair Value Disclosure

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

Fair Value Disclosure

Fair Value Disclosure

Recurring Fair Value Measurements: The following table presents the Company's assets and liabilities accounted for at fair value on a recurring basis:

			Fair Value Measurements at Reporting Date Using
			Quoted Prices in				Significant
			Active Markets for		Significant Other		Unobservable
			Identical Assets		Observable Inputs		Inputs
Description	Date		(Level 1)		(Level 2)		(Level 3)
	June 30, 2016
Assets:
Available for sale securities	$	7,498	$	7,498	$	—	$	—
	$	7,498	$	7,498	$	—	$	—
Liabilities:
Interest rate swap agreements	$	2,491	$	—	$	2,491	$	—
Foreign currency exchange contracts	295		—		295		—
	$	2,786	$	—	$	2,786	$	—
	December 31, 2015
Assets:
Available for sale securities	$	7,247	$	7,247	$	—	$	—
Interest rate swap agreements	3		—		3		—
Foreign currency exchange contracts	386		—		386		—
	$	7,636	$	7,247	$	389	$	—
Liabilities:
Interest rate swap agreements	$	698	$	—	$	698	$	—
	$	698	$	—	$	698	$	—
	June 30, 2015
Assets:
Available for sale securities	$	7,256	$	7,256	$	—	$	—
Interest rate swap agreements	30		—		30		—
Foreign currency exchange contracts	240		—		240		—
	$	7,526	$	7,256	$	270	$	—
Liabilities:
Interest rate swap agreements	$	951	$	—	$	951	$	—
	$	951	$	—	$	951	$	—

Bellaire Corporation (“Bellaire”) is a non-operating subsidiary of the Company with legacy liabilities relating to closed mining operations, primarily former Eastern U.S. underground coal mining operations. In connection with Bellaire's normal permit renewal with the Pennsylvania Department of Environmental Protection ("DEP"), Bellaire established a $5.0 million mine water treatment trust (the "Mine Water Treatment Trust") to provide a financial assurance mechanism in order to assure the long-term treatment of post-mining discharges. Bellaire's Mine Water Treatment Trust invests in available for sale securities that are reported at fair value based upon quoted market prices in active markets for identical assets; therefore, they are classified as Level 1 within the fair value hierarchy.

During the second quarter of 2016, HBB entered into four delayed start interest rate swap agreements. These swaps have been designated as cash flow hedges. The interest rate swap agreements were executed to fix a portion of the interest rates on HBB's variable rate debt that have a combined notional amount of $25.0 million. Two of the delayed start interest rate swap agreements, with a notional amount of $15.0 million, are effective January 2018, have rates of 1.6% and expire in January 2024. The two remaining delayed start interest rate swap agreements, with a notional amount of $10.0 million, are effective January 2020, have rates of 1.7% and expire in January 2024. The fair value of these swap agreements are included in the table above. Since these delayed start interest rate swap agreements qualify for hedge accounting, the changes in fair value are recorded in other comprehensive income (loss), net of tax.

The Company uses significant other observable inputs to value derivative instruments used to hedge foreign currency and interest rate risk; therefore, they are classified within Level 2 of the valuation hierarchy. The fair value for these contracts is determined based on exchange rates and interest rates, respectively.

There were no transfers into or out of Levels 1, 2 or 3 during the three and six months endedJune 30, 2016 and 2015.

Other Fair Value Measurement Disclosures: The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to the short-term nature of these instruments. Revolving credit agreements and long-term debt are recorded at carrying value in the Unaudited Condensed Consolidated Balance Sheets. 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, which is Level 2 as defined in the fair value hierarchy. At June 30, 2016, December 31, 2015 and June 30, 2015, both the fair value and the book value of the Company's revolving credit agreements and long-term debt, excluding capital leases, was $141.7 million, $159.8 million and $168.2 million, respectively.