Parent Company Condensed Balance Sheets

12 Months Ended

Dec. 31, 2017

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Parent Company Condensed Balance Sheets

Parent Company Condensed Balance Sheets

The condensed balance sheets of NACCO, the parent company, at December 31 are as follows:

	2017		2016
ASSETS
Cash and cash equivalents	$	94,646	$	57,917
Accounts receivable from affiliates	9,189		—
Other current assets	1,714		2,518
Investment in subsidiaries
HBB	—		44,057
KC	—		21,394
NACoal	141,174		105,645
Other, primarily Bellaire	13,340		14,463
	154,514		185,559
Property, plant and equipment, net	310		935
Other non-current assets	9,550		13,870
Total Assets	$	269,923	$	260,799
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities	$	7,627	$	7,055
Current intercompany accounts payable, net	11,858		1,406
Note payable to Bellaire	17,850		18,100
Deferred compensation	12,939		13,578
Other non-current liabilities	201		367
Stockholders’ equity	219,448		220,293
Total Liabilities and Stockholders’ Equity	$	269,923	$	260,799

The credit agreement at NACoal allows for the transfer of assets to NACCO under certain circumstances. The amount of NACCO's investment in NACoal and Bellaire that was restricted at December 31, 2017 totaled approximately $1.8 million. The amount of unrestricted cash available to NACCO included in “Investment in subsidiaries” was $0.3 million at December 31, 2017. Dividends and management fees from its subsidiaries are the primary sources of cash for NACCO.

SCHEDULE I—CONDENSED FINANCIAL INFORMATION OF THE PARENT

NACCO INDUSTRIES, INC. AND SUBSIDIARIES

PARENT COMPANY CONDENSED BALANCE SHEETS

	December 31
	2017		2016
	(In thousands)
ASSETS
Cash and cash equivalents	$	94,646	$	57,917
Accounts receivable from affiliates	9,189		—
Other current assets	1,714		2,518
Investment in subsidiaries
HBB	—		44,057
KC	—		21,394
NACoal	141,174		105,645
Other, primarily Bellaire	13,340		14,463
	154,514		185,559
Property, plant and equipment, net	310		935
Other non-current assets	9,550		13,870
Total Assets	$	269,923	$	260,799
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities	$	7,627	$	7,055
Current intercompany accounts payable, net	11,858		1,406
Note payable to Bellaire	17,850		18,100
Deferred compensation	12,939		13,578
Other non-current liabilities	201		367
Stockholders’ equity	219,448		220,293
Total Liabilities and Stockholders’ Equity	$	269,923	$	260,799

See Notes to Parent Company Condensed Financial Statements.

SCHEDULE I—CONDENSED FINANCIAL INFORMATION OF THE PARENT

NACCO INDUSTRIES, INC. AND SUBSIDIARIES

PARENT COMPANY CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

	Year Ended December 31
	2017			2016			2015
	(In thousands)
(Income) expense:
Intercompany interest expense	$	1,256		$	1,285		$	1,309
Other, net	(314		)	(332		)	(270		)
	942			953			1,039
Administrative and general expenses	6,466			6,881			3,704
Loss before income taxes	(7,408		)	(7,834		)	(4,743		)
Income tax benefit	(366		)	(2,295		)	(1,496		)
Net loss before equity in earnings of subsidiaries	(7,042		)	(5,539		)	(3,247		)
Equity in earnings of subsidiaries	35,505			8,495			5,520
Income from continuing operations	28,463			2,956			2,273
Discontinued operations, net of tax	$	1,874		$	26,651		$	19,711
Net income	30,337			29,607			21,984
Foreign currency translation adjustment	1,725			(2,078		)	(2,756		)
Deferred gain on available for sale securities, net of tax	834			413			17
Current period cash flow hedging activity, net of $941 tax expense in 2017, $73 tax benefit in 2016 and $357 tax benefit in 2015	1,543			(252		)	(577		)
Reclassification of hedging activities into earnings, net of $1,255 tax expense in 2017, $419 tax benefit in 2016 and $191 tax benefit in 2015	(2,369		)	757			409
Current period pension and postretirement plan adjustment, net of $440 tax expense in 2017, $1,098 tax benefit in 2016 and $1,222 tax benefit in 2015	749			(2,011		)	(1,204		)
Reclassification of pension and postretirement adjustments into earnings, net of $363 tax benefit in 2017, $408 tax benefit in 2016 and $420 tax benefit in 2015	582			688			856
Total other comprehensive income (loss)	3,064			(2,483		)	(3,255		)
Comprehensive Income	$	33,401		$	27,124		$	18,729

See Notes to Parent Company Condensed Financial Statements.

SCHEDULE I—CONDENSED FINANCIAL INFORMATION OF THE PARENT

NACCO INDUSTRIES, INC. AND SUBSIDIARIES

PARENT COMPANY CONDENSED STATEMENTS OF CASH FLOWS

	Year Ended December 31
	2017			2016			2015
	(In thousands)
Operating Activities
Income from continuing operations	$	28,463		$	2,956		$	2,273
Equity in earnings of subsidiaries	35,505			8,495			5,520
Parent company only net loss	(7,042		)	(5,539		)	(3,247		)
Net changes related to operating activities	7,881			2,684			(11,015		)
Net cash provided by (used for) operating activities	839			(2,855		)	(14,262		)
Investing Activities
Proceeds from the sale of assets	834			—			—
Expenditures for property, plant and equipment	(12		)	(25		)	(328		)
Net cash used for investing activities	822			(25		)	(328		)
Financing Activities
Dividends received from subsidiaries	4,000			52,200			15,000
Dividends received from Hamilton Beach Brands Holding Company	38,000			—			—
Notes payable to Bellaire	(250		)	(600		)	—
Purchase of treasury shares	—			(6,044		)	(24,010		)
Cash dividends paid	(6,682		)	(7,262		)	(7,296		)
Other	—			(3		)	(13		)
Net cash provided by (used for) financing activities	35,068			38,291			(16,319		)
Cash and cash equivalents
Increase (decrease) for the period	36,729			35,411			(30,909		)
Balance at the beginning of the period	57,917			22,506			53,415
Balance at the end of the period	$	94,646		$	57,917		$	22,506

See Notes to Parent Company Condensed Financial Statements.

SCHEDULE I—CONDENSED FINANCIAL INFORMATION OF THE PARENT

NACCO INDUSTRIES, INC. AND SUBSIDIARIES

NOTES TO PARENT COMPANY CONDENSED FINANCIAL STATEMENTS

FOR THE YEAR ENDED DECEMBER 31, 2017, 2016 AND 2015

The notes to Consolidated Financial Statements, incorporated in Item 15 of this Form 10-K, are hereby incorporated by reference into these Notes to Parent Company Condensed Financial Statements.

NOTE A — ACCOUNTING POLICIES

NACCO Industries, Inc. (the parent company or “NACCO”) is a holding company that operates primarily in the mining industry. In the Parent Company Condensed Financial Statements, NACCO's investment in subsidiaries is stated at cost plus equity in undistributed earnings of subsidiaries since the date of acquisition. NACCO's share of net income of unconsolidated subsidiaries is included in net income using the equity method. Parent Company financial statements should be read in conjunction with the Company's consolidated financial statements.

NOTE B — LONG-TERM OBLIGATIONS AND GUARANTEES

It is NACCO's policy not to guarantee the debt of NACoal.

NOTE C — UNRESTRICTED CASH

The amount of unrestricted cash available to NACCO, included in “Investment in subsidiaries,” was $0.3 million at December 31, 2017 and was in addition to the $94.6 million of cash included in the Parent Company Condensed Balance Sheet at December 31, 2017.