(Mark One) | |||||||||||||||||
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||||||||||||||
For the fiscal year ended |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Large accelerated filer | ¨ | þ | Non-accelerated filer | ¨ | Smaller reporting company | Emerging growth company |
PAGE | |||||||||||
F-1 | |||||||||||
Name | Age | Positions | ||||||||||||
Gregory H. Trepp | 62 | Director and Chief Executive Officer of Hamilton Beach Holding (from February 2024), Director, President and Chief Executive Officer of Hamilton Beach Holding (from prior to 2019 to February 2024) | ||||||||||||
R. Scott Tidey | 59 | President of Hamilton Beach Holding (from February 2024), Senior Vice President, Global Sales of HBB (from January 2023 to February 2024), Senior Vice President, Consumer Sales & Marketing of HBB (from March 2021 to January 2023), Senior Vice President, North America Sales and Marketing of HBB (from prior to 2019 to March 2021) | ||||||||||||
Sally M. Cunningham | 49 | Senior Vice President, Chief Financial Officer and Treasurer of Hamilton Beach Holding (from May 2023), Senior Vice President and Chief Financial Officer of Hamilton Beach Holding (from March 2023 to May 2023), Finance Consultant of Azurite, LLC (from November 2021 to February 2023), Senior Vice President and Chief Financial Officer of Ascent Industries Co. (a steel and chemical production and distribution company), (from June 2020 to August 2021), Vice President, Corporate Administration of Ascent Industries Co. (from prior to 2019 to June 2020) | ||||||||||||
Lawrence K. Workman, Jr. | 54 | Senior Vice President, General Counsel and Secretary of Hamilton Beach Holding (from July 2021), Vice President, Business Development and Corporate Counsel of Coca-Cola Consolidated, Inc. (a Coca-Cola manufacturing and bottling company), (from prior to 2019 to July 2021) |
Owned/ | ||||||||||||||
Facility Location | Leased | Function(s) (3) | ||||||||||||
Glen Allen, Virginia | Leased | Corporate headquarters | ||||||||||||
Geel, Belgium | (1) | Distribution center | ||||||||||||
Shenzhen, People’s Republic of China | (1) | Distribution center | ||||||||||||
Mexico City, Mexico | Leased | Mexico sales and administrative headquarters | ||||||||||||
Belleville, Ontario, Canada | Leased | Distribution center | ||||||||||||
Southern Pines, North Carolina | Owned | Service center for customer returns; parts distribution center; call center | ||||||||||||
Shenzhen, People’s Republic of China | Leased | Administrative office | ||||||||||||
Markham, Ontario, Canada | Leased | Canada sales and administration headquarters | ||||||||||||
Shanghai, People’s Republic of China | Leased | Sales office | ||||||||||||
Tultitlan, Mexico | (1) | Distribution center | ||||||||||||
Byhalia, Mississippi | Leased | Distribution centers (2) |
Issuer Purchases of Equity Securities | |||||||||||||||||||||||
(a) | (b) | (c) | (d) | ||||||||||||||||||||
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of the Publicly Announced Program | Maximum Dollar Value of Shares that May Yet Be Purchased Under the Program | |||||||||||||||||||
Month #1 October 1 to 31, 2023 | 19,769 | $ | 12.14 | 19,769 | $ | 20,310,913 | |||||||||||||||||
Month #2 November 1 to 30, 2023 | 44,800 | $ | 13.99 | 44,800 | $ | 19,684,324 | |||||||||||||||||
Month #3 December 1 to 31, 2023 | 46,554 | $ | 15.83 | 46,554 | $ | 18,947,187 | |||||||||||||||||
111,123 | $ | 14.43 | 111,123 | $ | 18,947,187 |
Year Ended December 31 | |||||||||||||||||||||||||||||||||||
2023 | % of Revenue | 2022 | % of Revenue | $ Change | % Change | ||||||||||||||||||||||||||||||
Revenue | $ | 625,625 | 100.0 | % | $ | 640,949 | 100.0 | % | $ | (15,324) | (2.4) | % | |||||||||||||||||||||||
Cost of sales | 481,949 | 77.0 | % | 511,835 | 79.9 | % | (29,886) | (5.8) | % | ||||||||||||||||||||||||||
Gross profit | 143,676 | 23.0 | % | 129,114 | 20.1 | % | 14,562 | 11.3 | % | ||||||||||||||||||||||||||
Selling, general and administrative expenses | 108,395 | 17.3 | % | 90,120 | 14.1 | % | 18,275 | 20.3 | % | ||||||||||||||||||||||||||
Amortization of intangible assets | 200 | — | % | 200 | — | % | — | — | % | ||||||||||||||||||||||||||
Operating profit (loss) | 35,081 | 5.6 | % | 38,794 | 6.1 | % | (3,713) | (9.6) | % | ||||||||||||||||||||||||||
Interest expense, net | 3,000 | 0.5 | % | 4,589 | 0.7 | % | (1,589) | (34.6) | % | ||||||||||||||||||||||||||
Other expense (income), net | 385 | 0.1 | % | 1,776 | 0.3 | % | (1,391) | (78.3) | % | ||||||||||||||||||||||||||
Income (loss) before income taxes | 31,696 | 5.1 | % | 32,429 | 5.1 | % | (733) | (2.3) | % | ||||||||||||||||||||||||||
Income tax expense | 6,454 | 1.0 | % | 7,162 | 1.1 | % | (708) | (9.9) | % | ||||||||||||||||||||||||||
Net income (loss) | 25,242 | 4.0 | % | 25,267 | 3.9 | % | (25) | (0.1) | % | ||||||||||||||||||||||||||
Effective income tax rate | 20.4 | % | 22.1 | % |
Revenue | |||||
2022 | $ | 640,949 | |||
(Decrease) increase from: | |||||
Unit volume and product mix | 9,527 | ||||
Foreign currency | 3,254 | ||||
Average sales price | (28,105) | ||||
2023 | $ | 625,625 |
Year Ended December 31 | |||||||||||
(In thousands) | |||||||||||
2023 | 2022 | ||||||||||
Net cash provided by (used for) operating activities | $ | 88,636 | $ | (3,418) | |||||||
Net cash provided by (used for) investing activities | $ | (5,174) | $ | (2,279) | |||||||
Net cash provided by (used for) financing activities | $ | (70,072) | $ | 5,575 |
Payments Due by Period | |||||||||||||||||||||||||||||||||||||||||
Contractual Obligations | Total | 2024 | 2025 | 2026 | 2027 | 2028 | Thereafter | ||||||||||||||||||||||||||||||||||
Revolving credit agreements | $ | 50,000 | $ | — | $ | 50,000 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||
Variable interest payments on HBB Facility | 3,537 | 2,474 | 1,063 | — | — | — | — | ||||||||||||||||||||||||||||||||||
Purchase and other obligations | 214,549 | 214,364 | 62 | 54 | 69 | — | — | ||||||||||||||||||||||||||||||||||
Operating lease obligations | 59,769 | 8,306 | 6,517 | 5,970 | 5,677 | 5,519 | 27,780 | ||||||||||||||||||||||||||||||||||
Finance lease obligations | 414 | 92 | 92 | 92 | 91 | 47 | — | ||||||||||||||||||||||||||||||||||
Total contractual cash obligations | $ | 328,269 | $ | 225,236 | $ | 57,734 | $ | 6,116 | $ | 5,837 | $ | 5,566 | $ | 27,780 |
3.1 | ||||||||
3.2 |
31(i)(1) | ||||||||
31(i)(2) |
(32) |
101.INS | Inline XBRL Instance Document | ||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | ||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | ||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | ||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
* | Management contract or compensation plan or arrangement required to be filed as an exhibit pursuant to Item 15(b) of this Annual Report on Form 10-K. |
Hamilton Beach Brands Holding Company | |||||||||||||||||
(Registrant) | |||||||||||||||||
Signature | Title | Date | |||||||||||||||
By: | /s/ Sally M. Cunningham | Senior Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer)/(Principal Accounting Officer) | March 6, 2024 | ||||||||||||||
Sally M. Cunningham |
Signature | Title | Date | ||||||||||||
/s/ Gregory H. Trepp | ||||||||||||||
Gregory H. Trepp | Chief Executive Officer (Principal Executive Officer), Director | March 6, 2024 | ||||||||||||
/s/ Sally M. Cunningham | ||||||||||||||
Sally M. Cunningham | Senior Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer)/(Principal Accounting Officer) | March 6, 2024 | ||||||||||||
/s/ Mark R. Belgya | ||||||||||||||
Mark R. Belgya | Director | March 6, 2024 | ||||||||||||
/s/ J.C. Butler, Jr. | ||||||||||||||
J.C. Butler, Jr. | Director | March 6, 2024 | ||||||||||||
/s/ Paul D. Furlow | ||||||||||||||
Paul D. Furlow | Director | March 6, 2024 | ||||||||||||
/s/ John P. Jumper | ||||||||||||||
John P. Jumper | Director | March 6, 2024 | ||||||||||||
/s/ Dennis W. LaBarre | ||||||||||||||
Dennis W. LaBarre | Director | March 6, 2024 | ||||||||||||
/s/ Michael S. Miller | ||||||||||||||
Michael S. Miller | Director | March 6, 2024 | ||||||||||||
/s/ Alfred M. Rankin, Jr. | ||||||||||||||
Alfred M. Rankin, Jr. | Director | March 6, 2024 | ||||||||||||
Signature | Title | Date | ||||||||||||
/s/ Thomas T. Rankin | ||||||||||||||
Thomas T. Rankin | Director | March 6, 2024 | ||||||||||||
/s/ James A. Ratner | ||||||||||||||
James A. Ratner | Director | March 6, 2024 | ||||||||||||
/s/ Clara R. Williams | ||||||||||||||
Clara R. Williams | Director | March 6, 2024 |
Valuation of customer price concession accrual | |||||
Description of the Matter | As described in Notes 1 and 9 to the consolidated financial statements, the Company offers price concessions to certain of its customers, which results in variable consideration. The Company recognizes a reduction to revenue and a corresponding accrual for price concessions as the related products are sold based on the estimated amount of customer sales incentives to be deducted by trade customers. This estimate is made by applying either the expected value method or most likely amount method according to which method would provide the better prediction. Auditing the valuation of the customer price concession accrual was complex and involved especially challenging judgment because the calculation involves subjective management assumptions about estimates of expected price concessions. For example, the adjustment to the price concession accrual reflects management’s assumptions about future deductions to be taken by customers which is subjective in nature as it relies upon retrospective analysis of price concessions claimed by customers and management’s knowledge of its customer base, and changes in those assumptions can have a material effect on the customer price concession accrual. | ||||
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design and tested the operating effectiveness of the Company’s controls that address the risk of material misstatement relating to the customer price concession accrual. For example, we tested controls over management’s review of adjustments to the customer price concession accrual, as well as their review of significant assumptions such as the amount of future deductions to be taken by customers. We also tested controls over the completeness and accuracy of data underlying the accrual including the validation of third-party sales data. Our audit procedures included, among others, testing a sample of the underlying data used by management in development of the customer price concession accrual, testing a sample of credit memos issued subsequent to year-end, evaluated the significant assumptions made by management by performing a hindsight analysis, and performing inquiries of executives within the Company responsible for the respective customer relationships. |
Year Ended December 31 | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
Revenue | $ | $ | $ | ||||||||||||||
Cost of sales | |||||||||||||||||
Gross profit | |||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||
Amortization of intangible assets | |||||||||||||||||
Operating profit (loss) | |||||||||||||||||
Interest expense, net | |||||||||||||||||
Other expense (income), net | ( | ||||||||||||||||
Income (loss) before income taxes | |||||||||||||||||
Income tax expense (benefit) | |||||||||||||||||
Net income (loss) | $ | $ | $ | ||||||||||||||
Basic earnings (loss) per share | $ | $ | $ | ||||||||||||||
Diluted earnings (loss) per share | $ | $ | $ | ||||||||||||||
Basic weighted average shares outstanding | |||||||||||||||||
Diluted weighted average shares outstanding |
Year Ended December 31 | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
(In thousands) | |||||||||||||||||
Net income (loss) | $ | $ | $ | ||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||
Foreign currency translation adjustment | ( | ||||||||||||||||
Gain (loss) on long-term intra-entity foreign currency transactions | ( | ||||||||||||||||
Cash flow hedging activity | ( | ||||||||||||||||
Reclassification of foreign currency adjustments into earnings | |||||||||||||||||
Reclassification of hedging activities into earnings | |||||||||||||||||
Pension plan adjustment | ( | ||||||||||||||||
Reclassification of pension adjustments into earnings | |||||||||||||||||
Total other comprehensive income (loss), net of tax | $ | $ | $ | ||||||||||||||
Comprehensive income (loss) | $ | $ | $ |
December 31 | |||||||||||
2023 | 2022 | ||||||||||
(In thousands) | |||||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Trade receivables, net | |||||||||||
Inventory | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment, net | |||||||||||
Right-of-use lease assets | |||||||||||
Goodwill | |||||||||||
Other intangible assets, net | |||||||||||
Deferred tax assets | |||||||||||
Deferred costs | |||||||||||
Other non-current assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and stockholders’ equity | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued compensation | |||||||||||
Accrued product returns | |||||||||||
Lease liabilities | |||||||||||
Other current liabilities | |||||||||||
Total current liabilities | |||||||||||
Revolving credit agreements | |||||||||||
Lease liabilities, non-current | |||||||||||
Other long-term liabilities | |||||||||||
Total liabilities | |||||||||||
Stockholders’ equity | |||||||||||
Preferred stock, par value $ | |||||||||||
Class A Common stock, par value $ | |||||||||||
Class B Common stock, par value $ | |||||||||||
Capital in excess of par value | |||||||||||
Treasury stock | ( | ( | |||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ | |||||||||
Year Ended December 31 | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
(In thousands) | |||||||||||||||||
Operating activities | |||||||||||||||||
Net income (loss) | $ | $ | $ | ||||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: | |||||||||||||||||
Depreciation and amortization | |||||||||||||||||
Deferred income taxes | ( | ||||||||||||||||
Stock compensation expense | |||||||||||||||||
Brazil foreign currency loss | |||||||||||||||||
Other | ( | ( | |||||||||||||||
Net changes in operating assets and liabilities: | |||||||||||||||||
Affiliate payable | ( | ||||||||||||||||
Trade receivables | ( | ||||||||||||||||
Inventory | ( | ||||||||||||||||
Other assets | ( | ||||||||||||||||
Accounts payable | ( | ( | |||||||||||||||
Other liabilities | ( | ( | ( | ||||||||||||||
Net cash provided by (used for) operating activities | ( | ||||||||||||||||
Investing activities | |||||||||||||||||
Expenditures for property, plant and equipment | ( | ( | ( | ||||||||||||||
Issuance of secured loan | ( | ||||||||||||||||
Other | ( | ||||||||||||||||
Net cash provided by (used for) investing activities | ( | ( | ( | ||||||||||||||
Financing activities | |||||||||||||||||
Net additions (reductions) to revolving credit agreements | ( | ( | |||||||||||||||
Purchase of treasury stock | ( | ( | |||||||||||||||
Cash dividends paid | ( | ( | ( | ||||||||||||||
Financing fees paid | ( | ( | |||||||||||||||
Other financing | ( | ||||||||||||||||
Net cash provided by (used for) financing activities | ( | ( | |||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | ( | ( | |||||||||||||||
Cash, cash equivalents and restricted cash | |||||||||||||||||
Increase (decrease) for the year | ( | ( | |||||||||||||||
Balance at the beginning of the year | |||||||||||||||||
Balance at the end of the year | $ | $ | $ | ||||||||||||||
Reconciliation of cash, cash equivalents and restricted cash | |||||||||||||||||
Cash and cash equivalents | $ | $ | $ | ||||||||||||||
Restricted cash included in prepaid expenses and other current assets | |||||||||||||||||
Restricted cash included in other non-current assets | |||||||||||||||||
Total cash, cash equivalents and restricted cash | $ | $ | $ |
Class A Common Stock | Class B Common Stock | Capital in Excess of Par Value | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Stockholders’ Equity | |||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||||
Balance, January 1, 2021 | $ | $ | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||
Net income (loss) | — | — | — | — | — | ||||||||||||||||||
Issuance of common stock, net of conversions | ( | ( | — | — | — | ||||||||||||||||||
Stock compensation expense | — | — | — | — | — | ||||||||||||||||||
Cash dividends, $ | — | — | — | — | ( | — | ( | ||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | ||||||||||||||||||
Reclassification adjustment to net income | — | — | — | — | — | ||||||||||||||||||
Balance, December 31, 2021 | $ | $ | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||
Net income (loss) | — | — | — | — | — | ||||||||||||||||||
Issuance of common stock, net of conversions | ( | ( | — | — | — | ||||||||||||||||||
Purchase of treasury stock | — | — | — | ( | — | — | ( | ||||||||||||||||
Stock compensation expense | — | — | — | — | — | ||||||||||||||||||
Cash dividends, $ | — | — | — | — | ( | — | ( | ||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | ( | ( | ||||||||||||||||
Reclassification adjustment to net income (loss) | — | — | — | — | — | ||||||||||||||||||
Balance, December 31, 2022 | $ | $ | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||
Net income (loss) | — | — | — | — | — | ||||||||||||||||||
Issuance of common stock, net of conversions | ( | ( | — | — | — | ||||||||||||||||||
Purchase of treasury stock | — | — | — | ( | — | — | ( | ||||||||||||||||
Stock compensation expense | — | — | — | — | — | ||||||||||||||||||
Cash dividends, $ | — | — | — | — | ( | — | ( | ||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | ( | ( | ||||||||||||||||
Reclassification adjustment to net income (loss) | — | — | — | — | — | ||||||||||||||||||
Balance, December 31, 2023 | $ | $ | $ | $ | ( | $ | $ | ( | $ |
December 31 | |||||||||||
2023 | 2022 | ||||||||||
Land | $ | $ | |||||||||
Furniture and fixtures | |||||||||||
Building and improvements | |||||||||||
Machinery and equipment | |||||||||||
Internal-use capitalized software | |||||||||||
Construction in progress, including internal-use capitalized software not yet in service | |||||||||||
Property, plant and equipment, at cost | |||||||||||
Less allowances for depreciation and amortization | |||||||||||
$ | $ |
Gross Carrying Amount | Accumulated Amortization | Net Balance | |||||||||||||||
Balance as of December 31, 2023 | |||||||||||||||||
Trademarks | $ | $ | ( | $ | |||||||||||||
$ | $ | ( | $ | ||||||||||||||
Balance as of December 31, 2022 | |||||||||||||||||
Trademarks | ( | ||||||||||||||||
$ | $ | ( | $ |
December 31 | |||||||||||
2023 | 2022 | ||||||||||
Total outstanding borrowings: | |||||||||||
Revolving credit agreements | $ | $ | |||||||||
Total outstanding borrowings | $ | $ | |||||||||
Total available borrowings, net of limitations, under revolving credit agreements | $ | $ | |||||||||
Unused available borrowings | $ | $ | |||||||||
Weighted average stated interest rate on total borrowings | % | % | |||||||||
Weighted average effective interest rate on total borrowings (including interest rate swap agreements) | % | % |
Notional Amount | Average Fixed Rate | Remaining Term at | |||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | December 31, 2023 | |||||||||||||||||||||||||
Interest rate swaps | $ | $ | % | % | Extending to January 2024 | ||||||||||||||||||||||||
Interest rate swaps | $ | $ | % | % | Extending to January 2028 | ||||||||||||||||||||||||
Delayed start interest rate swaps | $ | $ | % | % | Extending to January 2029 |
Asset Derivatives | Liability Derivatives | ||||||||||||||||||||||||||||||||||
Balance sheet location | 2023 | 2022 | Balance sheet location | 2023 | 2022 | ||||||||||||||||||||||||||||||
Interest rate swap agreements | |||||||||||||||||||||||||||||||||||
Current | Prepaid expenses and other current assets | $ | $ | Other current liabilities | $ | $ | |||||||||||||||||||||||||||||
Long-term | Other non-current assets | Other long-term liabilities | |||||||||||||||||||||||||||||||||
Foreign currency exchange contracts | |||||||||||||||||||||||||||||||||||
Current | Prepaid expenses and other current assets | Other current liabilities | |||||||||||||||||||||||||||||||||
Total derivatives | $ | $ | $ | $ |
December 31 | ||||||||
2023 | 2022 | |||||||
Operating lease cost | $ | $ | ||||||
Finance lease cost | ||||||||
Amortization of leased assets | ||||||||
Interest on lease liabilities | ||||||||
Finance lease cost | ||||||||
Variable lease cost (1) | ||||||||
Short term lease cost (2) | ||||||||
Total lease cost | $ | $ |
December 31 | ||||||||
2023 | 2022 | |||||||
Cash paid for amounts included in the measurement of lease liabilities – operating cash flows from leases | $ | $ | ||||||
Right-of-use assets obtained in exchange for lease obligations of operating leases – non-cash activity | $ | $ | ||||||
Right-of-use assets obtained in exchange for lease obligations of finance leases – non-cash activity | $ | $ |
Undiscounted Future Lease Payments | |||||
2024 | $ | ||||
2025 | |||||
2026 | |||||
2027 | |||||
2028 | |||||
Thereafter | |||||
Total lease payments | |||||
Less: impact of discounting | |||||
Present value of lease payments | $ |
December 31 | ||||||||
2023 | 2022 | |||||||
Weighted average remaining lease term - operating leases | ||||||||
Weighted average remaining lease term - finance leases | 0.0 | |||||||
Weighted average discount rate - operating leases (1) | % | % | ||||||
Weighted average discount rate - finance leases (1) | % | % |
December 31 | |||||||||||
2023 | 2022 | ||||||||||
Preferred stock, par value $ | |||||||||||
Preferred stock authorized | |||||||||||
Preferred stock outstanding | |||||||||||
Class A Common stock, par value $ | |||||||||||
Class A Common authorized | |||||||||||
Class A Common issued(1)(2) | |||||||||||
Treasury Stock | |||||||||||
Class B Common stock, par value $ | |||||||||||
Class B Common authorized | |||||||||||
Class B Common issued(1) |
Foreign Currency | Deferred Gain (Loss) on Cash Flow Hedging | Pension Plan Adjustment | Total | |||||||||||
Balance, January 1, 2021 | $ | ( | $ | ( | $ | ( | $ | ( | ||||||
Other comprehensive income (loss) | ( | |||||||||||||
Reclassification adjustment to net income (loss) | ||||||||||||||
Tax effects | ( | ( | ( | |||||||||||
Balance, December 31, 2021 | $ | ( | $ | ( | $ | ( | $ | ( | ||||||
Other comprehensive income (loss) | ( | ( | ( | |||||||||||
Reclassification adjustment to net income (loss) | ||||||||||||||
Tax effects | ( | |||||||||||||
Balance, December 31, 2022 | $ | ( | $ | $ | ( | $ | ( | |||||||
Other comprehensive income (loss) | ( | ( | ||||||||||||
Reclassification adjustment to net income (loss) | ||||||||||||||
Tax effects | ( | ( | ||||||||||||
Balance, December 31, 2023 | $ | ( | $ | $ | ( | $ | ( |
2023 | 2022 | 2021 | |||||||||||||||
Basic weighted average shares outstanding | |||||||||||||||||
Dilutive effect of share-based compensation awards | |||||||||||||||||
Diluted weighted average shares outstanding | |||||||||||||||||
Basic earnings (loss) per share | $ | $ | $ | ||||||||||||||
Diluted earnings (loss) per share | $ | $ | $ | ||||||||||||||
Year Ended | |||||||||||||||||
December 31 | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
Consumer products | $ | $ | $ | ||||||||||||||
Commercial products | |||||||||||||||||
Licensing | |||||||||||||||||
Total revenues | $ | $ | $ | ||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
Income (loss) before income taxes | |||||||||||||||||
Domestic | $ | $ | $ | ||||||||||||||
Foreign | ( | ||||||||||||||||
$ | $ | $ | |||||||||||||||
Income tax expense (benefit) | |||||||||||||||||
Current income tax expense (benefit): | |||||||||||||||||
Federal | $ | $ | $ | ||||||||||||||
State | |||||||||||||||||
Foreign | ( | ||||||||||||||||
Total current | |||||||||||||||||
Deferred income tax expense (benefit): | |||||||||||||||||
Federal | ( | ||||||||||||||||
State | ( | ( | |||||||||||||||
Foreign | ( | ( | |||||||||||||||
Total deferred | ( | ||||||||||||||||
$ | $ | $ |
2023 | 2022 | 2021 | |||||||||||||||||||||||||||||||||
$ | % | $ | % | $ | % | ||||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | $ | $ | ||||||||||||||||||||||||||||||||
Statutory taxes at | $ | % | $ | % | $ | % | |||||||||||||||||||||||||||||
State and local income taxes | % | % | % | ||||||||||||||||||||||||||||||||
Valuation allowances | % | % | % | ||||||||||||||||||||||||||||||||
Other non-deductible expenses | % | % | % | ||||||||||||||||||||||||||||||||
Credits | ( | ( | % | ( | ( | % | ( | ( | % | ||||||||||||||||||||||||||
Effect of foreign operations | ( | ( | % | ( | ( | % | ( | ( | % | ||||||||||||||||||||||||||
Unrecognized tax benefits | % | ( | ( | % | % | ||||||||||||||||||||||||||||||
Other, net | ( | ( | % | % | ( | ( | % | ||||||||||||||||||||||||||||
Income tax provision | $ | % | $ | % | $ | % |
December 31 | |||||||||||
2023 | 2022 | ||||||||||
Deferred tax assets | |||||||||||
Tax carryforwards | $ | $ | |||||||||
Lease liabilities | |||||||||||
Inventory | |||||||||||
Accrued expenses and reserves | |||||||||||
Other employee benefits | |||||||||||
Other | |||||||||||
Total deferred tax assets | |||||||||||
Less: Valuation allowances | ( | ( | |||||||||
Deferred tax liabilities | |||||||||||
Right-of-use lease assets | |||||||||||
Accrued pension benefits | |||||||||||
Depreciation and amortization | |||||||||||
Total deferred tax liabilities | |||||||||||
Net deferred tax asset | $ | $ |
December 31, 2023 | |||||||||||||||||
Net deferred tax asset | Valuation allowance | Carryforwards expire during: | |||||||||||||||
Non-U.S. net operating loss | $ | $ | 2024 - Indefinite | ||||||||||||||
December 31, 2022 | |||||||||||||||||
Net deferred tax asset | Valuation allowance | Carryforwards expire during: | |||||||||||||||
Non-U.S. net operating loss | $ | $ | 2023 - Indefinite | ||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
Balance as of January 1 | $ | $ | $ | ||||||||||||||
Additions (reductions) based on tax positions related to prior years | ( | ( | |||||||||||||||
Additions based on tax positions related to the current year | |||||||||||||||||
Reductions for lapse of statute of limitations | ( | ( | |||||||||||||||
Reductions due to settlements with taxing authorities | ( | ||||||||||||||||
Balance as of December 31 | $ | $ | $ |
2023 | 2022 | 2021 | |||||||||||||||
U.S. Plan | |||||||||||||||||
Discount rate for pension benefit obligation | % | % | % | ||||||||||||||
Discount rate for net periodic benefit (income) expense | % | % | % | ||||||||||||||
Expected long-term rate of return on assets for net periodic pension (income) expense | % | % | % | ||||||||||||||
Non-U.S. Plan | |||||||||||||||||
Discount rate for pension benefit obligation | % | % | % | ||||||||||||||
Discount rate for net periodic benefit (income) expense | % | % | % | ||||||||||||||
Expected long-term rate of return on assets for net periodic pension (income) expense | % | % | % |
2023 | 2022 | 2021 | |||||||||||||||
U.S. Plan | |||||||||||||||||
Interest cost | $ | $ | $ | ||||||||||||||
Expected return on plan assets | ( | ( | ( | ||||||||||||||
Amortization of actuarial loss | |||||||||||||||||
Settlement loss | |||||||||||||||||
Net periodic pension (income) expense | $ | ( | $ | ( | $ | ( | |||||||||||
Non-U.S. Plan | |||||||||||||||||
Interest cost | $ | $ | $ | ||||||||||||||
Expected return on plan assets | ( | ( | ( | ||||||||||||||
Amortization of actuarial loss (gain) | ( | ||||||||||||||||
Net periodic pension (income) expense | $ | $ | ( | $ | ( |
2023 | 2022 | 2021 | |||||||||||||||
U.S. Plan | |||||||||||||||||
Current year actuarial loss (gain) | $ | ( | $ | $ | ( | ||||||||||||
Settlement loss | ( | ||||||||||||||||
Amortization of actuarial loss | ( | ( | ( | ||||||||||||||
Total recognized in other comprehensive loss (income) | $ | ( | $ | $ | ( | ||||||||||||
Non-U.S. Plan | |||||||||||||||||
Current year actuarial loss (gain) | $ | ( | $ | ( | $ | ( | |||||||||||
Amortization of actuarial (loss) gain | ( | ( | |||||||||||||||
Total recognized in other comprehensive loss (income) | $ | ( | $ | ( | $ | ( |
2023 | 2022 | ||||||||||||||||||||||
U.S. Plan | Non-U.S. Plan | U.S. Plan | Non-U.S. Plan | ||||||||||||||||||||
Change in benefit obligation | |||||||||||||||||||||||
Projected benefit obligation at beginning of year | $ | $ | $ | $ | |||||||||||||||||||
Interest cost | |||||||||||||||||||||||
Actuarial (gain) loss | ( | ( | ( | ||||||||||||||||||||
Benefits paid | ( | ( | ( | ( | |||||||||||||||||||
Settlements | ( | ||||||||||||||||||||||
Foreign currency exchange rate changes | ( | ||||||||||||||||||||||
Projected benefit obligation at end of year | $ | $ | $ | $ | |||||||||||||||||||
Accumulated benefit obligation at end of year | $ | $ | $ | $ | |||||||||||||||||||
Change in plan assets | |||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | $ | $ | $ | |||||||||||||||||||
Actual return on plan assets | ( | ( | |||||||||||||||||||||
Benefits paid | ( | ( | ( | ( | |||||||||||||||||||
Settlements | ( | ||||||||||||||||||||||
Other | ( | ( | |||||||||||||||||||||
Foreign currency exchange rate changes | ( | ||||||||||||||||||||||
Fair value of plan assets at end of year | $ | $ | $ | $ | |||||||||||||||||||
Funded status at end of year | $ | $ | $ | $ | |||||||||||||||||||
Amounts recognized in the balance sheets consist of: | |||||||||||||||||||||||
Deferred costs | $ | $ | $ | $ | |||||||||||||||||||
Components of accumulated other comprehensive loss consist of: | |||||||||||||||||||||||
Actuarial loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Deferred taxes | |||||||||||||||||||||||
$ | ( | $ | ( | $ | ( | $ | ( |
U.S. Plan | Non-U.S. Plan | ||||||||||
2024 | $ | $ | |||||||||
2025 | |||||||||||
2026 | |||||||||||
2027 | |||||||||||
2028 | |||||||||||
2029-2033 | |||||||||||
$ | $ |
2023 Actual Allocation | 2022 Actual Allocation | Target Allocation Range | |||||||||||||||
Fixed income securities | % | % | |||||||||||||||
Money market | % | % |
2023 Actual Allocation | 2022 Actual Allocation | Target Allocation Range | |||||||||||||||
Canadian equity securities | % | % | |||||||||||||||
Non-Canadian equity securities | % | % | |||||||||||||||
Fixed income securities | % | % | |||||||||||||||
Money market | % | % | |||||||||||||||
U.S. Plan | Non-U.S. Plan | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
U.S. equity securities | $ | $ | $ | $ | |||||||||||||||||||
Non-U.S. equity securities | |||||||||||||||||||||||
Fixed income securities | |||||||||||||||||||||||
Money market | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
U.S. | Other | Consolidated | |||||||||||||||
2023 | |||||||||||||||||
Revenue from unaffiliated customers | $ | $ | $ | ||||||||||||||
Property, plant and equipment, net | $ | $ | $ | ||||||||||||||
2022 | |||||||||||||||||
Revenue from unaffiliated customers | $ | $ | $ | ||||||||||||||
Property, plant and equipment, net | $ | $ | $ | ||||||||||||||
2021 | |||||||||||||||||
Revenue from unaffiliated customers | $ | $ | $ | ||||||||||||||
Property, plant and equipment, net | $ | $ | $ |
Additions | ||||||||||||||||||||||||||||||||||||||
Description | Balance at Beginning of Period | Charged to Costs and Expenses | Charged to Other Accounts — Describe | Deductions — Describe | Balance at End of Period (B) | |||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||
2023 | ||||||||||||||||||||||||||||||||||||||
Reserves deducted from asset accounts: | ||||||||||||||||||||||||||||||||||||||
Allowance for doubtful accounts | $ | $ | $ | $ | (A) | $ | ||||||||||||||||||||||||||||||||
Deferred tax valuation allowances | $ | $ | $ | ( | (C) | $ | ||||||||||||||||||||||||||||||||
2022 | ||||||||||||||||||||||||||||||||||||||
Reserves deducted from asset accounts: | ||||||||||||||||||||||||||||||||||||||
Allowance for doubtful accounts | $ | $ | ( | $ | $ | (A) | $ | |||||||||||||||||||||||||||||||
Deferred tax valuation allowances | $ | $ | $ | $ | (C) | $ | ||||||||||||||||||||||||||||||||
2021 | ||||||||||||||||||||||||||||||||||||||
Reserves deducted from asset accounts: | ||||||||||||||||||||||||||||||||||||||
Allowance for doubtful accounts | $ | $ | ( | $ | $ | ( | (A) | $ | ||||||||||||||||||||||||||||||
Deferred tax valuation allowances | $ | $ | $ | $ | (C) | $ |
Name | Incorporation | |||||||
Altoona Services, Inc. | Pennsylvania | |||||||
Grupo HB/PS S.A. de C.V. | Mexico (99.99%) | |||||||
Hamilton Beach Brands Canada, Inc. | Ontario, Canada | |||||||
Hamilton Beach Brands Do Brasil Distribuicao de Eletrodomesticos Ltda. | Brazil (99.9%) | |||||||
Hamilton Beach Brands, (HK) Limited | Hong Kong (PRC) | |||||||
Hamilton Beach Brands, Inc. | Delaware | |||||||
Hamilton Beach Electrical Appliances (Shenzhen) Co. Ltd. | China | |||||||
Hamilton Beach Health LLC | Delaware | |||||||
Hamilton Beach, Inc. | Delaware | |||||||
HBH Acquisition LLC | Delaware | |||||||
Health Beacon Canada Inc. | Quebec, Canada | |||||||
HealthBeacon PLC | Ireland | |||||||
HealthBeacon US Inc. | Delaware | |||||||
Weston Brands, LLC | Ohio |
Date: | March 6, 2024 | /s/ Gregory H. Trepp | |||||||||
Gregory H. Trepp | |||||||||||
President and Chief Executive Officer (Principal Executive Officer) |
Date: | March 6, 2024 | /s/ Sally M. Cunningham | |||||||||
Sally M. Cunningham | |||||||||||
Senior Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer)/(Principal Accounting Officer) |
Date: | March 6, 2024 | /s/ Gregory H. Trepp | |||||||||
Gregory H. Trepp | |||||||||||
President and Chief Executive Officer (Principal Executive Officer) | |||||||||||
Date: | March 6, 2024 | /s/ Sally M. Cunningham | |||||||||
Sally M. Cunningham | |||||||||||
Senior Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer)/(Principal Accounting Officer) |
Audit Information |
12 Months Ended |
---|---|
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | Ernst & Young LLP |
Auditor Location | Cleveland, Ohio |
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Income Statement [Abstract] | |||
Revenue | $ 625,625 | $ 640,949 | $ 658,394 |
Cost of sales | 481,949 | 511,835 | 521,892 |
Gross profit | 143,676 | 129,114 | 136,502 |
Selling, general and administrative expenses | 108,395 | 90,120 | 104,763 |
Amortization of intangible assets | 200 | 200 | 200 |
Operating profit (loss) | 35,081 | 38,794 | 31,539 |
Interest expense, net | 3,000 | 4,589 | 2,854 |
Other expense (income), net | 385 | 1,776 | (272) |
Income (loss) before income taxes | 31,696 | 32,429 | 28,957 |
Income tax expense (benefit) | 6,454 | 7,162 | 7,651 |
Net income (loss) | $ 25,242 | $ 25,267 | $ 21,306 |
Basic earnings (loss) per share (in dollars per share) | $ 1.80 | $ 1.81 | $ 1.54 |
Diluted earnings (loss) per share (in dollars per share) | $ 1.80 | $ 1.81 | $ 1.53 |
Basic weighted average shares outstanding (in shares) | 14,036 | 13,970 | 13,880 |
Diluted weighted average shares outstanding (in shares) | 14,060 | 13,996 | 13,930 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 25,242 | $ 25,267 | $ 21,306 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustment | 1,859 | (2,997) | 726 |
Gain (loss) on long-term intra-entity foreign currency transactions | 653 | 1,865 | (828) |
Cash flow hedging activity | (3,365) | 4,450 | 320 |
Reclassification of foreign currency adjustments into earnings | 0 | 2,085 | 0 |
Reclassification of hedging activities into earnings | 1,631 | 346 | 386 |
Pension plan adjustment | 103 | (4,053) | 2,210 |
Reclassification of pension adjustments into earnings | 370 | 629 | 419 |
Total other comprehensive income (loss), net of tax | 1,251 | 2,325 | 3,233 |
Comprehensive income (loss) | $ 26,493 | $ 27,592 | $ 24,539 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) shares in Thousands |
Dec. 31, 2023
$ / shares
shares
|
Dec. 31, 2022
$ / shares
shares
|
---|---|---|
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares, issued (in shares) | shares | 11,161 | 10,663 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares, issued (in shares) | shares | 3,616 | 3,844 |
Common stock, convertible conversion ratio | 1 | 1 |
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends (in dollars per share) | $ 0.435 | $ 0.415 | $ 0.395 |
Nature of Operations and Summary of Significant Accounting Policies |
12 Months Ended |
---|---|
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies | Nature of Operations and Summary of Significant Accounting Policies Nature of Operations Throughout this Annual Report on Form 10-K and the notes to consolidated financial statements, references to “Hamilton Beach Holding”, “the Company”, “we”, “us” and “our” and similar references are to Hamilton Beach Brands Holding Company and its subsidiaries on a consolidated basis unless otherwise noted or as the context otherwise requires. Hamilton Beach Brands Holding Company is a holding company and operates through its indirect, wholly owned subsidiary Hamilton Beach Brands, Inc., a Delaware corporation (“HBB”). HBB is the Company’s single reportable segment. We are a leading designer, marketer and distributor of a wide range of branded small electric household and specialty housewares appliances, as well as commercial products for restaurants, bars and hotels. Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements include the financial statements of the Company and have been prepared in accordance with U.S. generally accepted accounting principles (GAAP). Intercompany balances and transactions have been eliminated. Segment Information As of December 31, 2023, HBB is the Company’s single reportable operating segment. The Company’s reportable segment is determined based on (1) financial information reviewed by the chief operating decision maker (“CODM”) (2) operational structure of the Company which is designed and managed to share resources across the entire suite of products offered by the business, and (3) the basis upon which the CODM makes resource allocation decisions. Since the Company operates in one reportable segment, all required financial segment information can be found in the consolidated financial statements. Use of Estimates The preparation of financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses and disclosure of contingent assets and liabilities (if any). Actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents include cash in banks and highly liquid investments with original maturities of three months or less. Trade Receivables Allowances for doubtful accounts are maintained against trade receivables for estimated losses resulting from the inability of customers to make required payments. These allowances are based on both recent trends of certain customers estimated to be a greater credit risk as well as general trends of the entire customer pool. Accounts are written off against the allowance when it becomes evident collection will not occur. The Company maintains significant trade receivables balances with several large retail customers. As of December 31, 2023 and 2022, receivables from the Company’s five largest customers represented 72% and 73%, respectively, of HBB’s net trade receivables. The Company’s significant credit concentration is uncollateralized; however, historically, minimal credit losses have been incurred. Accounts payable - Supplier Finance Program The Company has an agreement with a third-party administrator to provide an accounts payable tracking system which facilitates a participating supplier’s ability to monitor and voluntarily elect to sell payment obligations owed by the Company to the designated third-party financial institution. Participating suppliers can sell one or more of the Company’s payment obligations at their sole discretion. The Company has no economic interest in a supplier’s decision to sell one or more of its payment obligations. The Company’s rights and obligations with respect to such payment obligations, including amounts due and scheduled payment terms, are not impacted by suppliers’ decisions to sell amounts under these arrangements. The agreement has a limit of $60.0 million in payment obligations ($85.0 million during peak season from August to January). There is no requirement to provide assets pledged as security or other forms of guarantees under the agreement. The Company pays the third-party administrator based upon the original payment terms negotiated with participating suppliers. The payment of these obligations by the Company is included in cash used in operating activities in the Consolidated Statement of Cash Flows. As of December 31, 2023 and 2022, the Company has $55.0 million and $23.3 million, respectively, in outstanding payment obligations that are presented in on the Consolidated Balance Sheets. Of these totals, the third-party financial institution has made payments to participating suppliers to settle $48.9 million and $23.3 million, respectively, of our outstanding payment obligations. Transfer of Financial Assets The Company has entered into an arrangement with a financial institution to sell certain U.S. trade receivables on a non-recourse basis. Under the terms of the agreement, the Company receives cash proceeds and retains no rights or interest and has no obligations with respect to the sold receivables. These transactions, which are accounted for as sold receivables, result in a reduction in trade receivables because the agreement transfers effective control over and risk related to the receivables to the buyer. Under this arrangement, the Company derecognized $128.7 million, $118.5 million and $140.7 million of trade receivables during 2023, 2022 and 2021, respectively. The losses incurred on sold receivables in the consolidated results of operations for the years ended December 31, 2023, 2022 and 2021 were not material. The Company does not carry any servicing assets or liabilities. Cash proceeds from this arrangement are reflected as operating activities. Inventory Inventory is stated at the lower of cost or net realizable value with cost determined under the first-in, first-out (“FIFO”) method. Adjustments to the carrying value are recorded for estimated obsolescence or excess inventory equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. Assets Held for Sale During the fourth quarter of 2020, the Company committed to a plan to sell its Brazilian subsidiary and determined that it met all of the criteria to classify the assets and liabilities of this business as held for sale. In April 2021, the Company made the decision to wind down the Brazilian subsidiary and enter into a licensing agreement with a third party to service the Brazilian market. The carrying amounts of the assets were reclassified to held and used during the second quarter of 2021. During the first quarter of 2022, the criteria for substantially complete liquidation were met, and $2.1 million of accumulated other comprehensive losses were released into other expense (income), net in the consolidated results of operations during the three months ended March 31, 2022. Property, Plant and Equipment Property, plant and equipment are measured at cost less accumulated depreciation, amortization and accumulated impairment losses. Depreciation and amortization are recorded generally using the straight-line method over the estimated useful lives of the assets. Estimated lives for buildings are up to 40 years, and for machinery, equipment and furniture and fixtures range from to seven years. Leasehold improvements are depreciated over the shorter of the estimated useful life or the term of the lease. The units-of-production method is used to amortize certain tooling for sourced products. Costs incurred to develop software for internal use are capitalized and amortized over the estimated useful life of the software. Gains or losses from the sale of assets are included in selling, general and administrative expenses. Repairs and maintenance are charged to expense as incurred. Interest is capitalized for qualifying long-term capital asset projects as a part of the historical cost of acquiring the asset. The Company evaluates long-lived assets for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets to be held and used is measured by a comparison of the carrying amount of the asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount exceeds the fair value of the asset. Fair value is estimated at the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Goodwill and Intangible Assets Goodwill represents the excess of the purchase price of acquisitions over the estimated fair value of the net assets acquired. Goodwill is not amortized but evaluated at least annually for impairment. The Company conducts its annual test for impairment as of October 1 of each year and it may be conducted more frequently if changes in circumstances or the occurrence of events indicates that a potential impairment exists. Using a qualitative assessment in the current year, the Company determined that it was more-likely-than-not that the goodwill was not impaired and a quantitative test for impairment was not required. Intangible assets with finite lives are amortized over their estimated useful lives, which represent the period over which the asset is expected to contribute directly or indirectly to future cash flows. Intangible assets with finite lives are reviewed for impairment whenever events and circumstances indicate the carrying value of such assets may not be recoverable and exceed their fair value. If an impairment loss exists, the carrying amount of the intangible asset is adjusted to a new cost basis. The new cost basis is amortized over the remaining useful life of the asset. No impairment has been recognized for identifiable intangible assets or goodwill for any period presented. Environmental Liabilities The Company and environmental consultants are investigating or remediating historical environmental contamination at some current and former sites operated by the Company or by businesses has acquired. Liabilities for environmental matters are recorded in the period when it is determined to be probable and reasonably estimable that the Company will incur costs. When only a range of amounts is reasonably estimable and no amount within the range is more probable than another, the Company records the low end of the range. Environmental liabilities are recorded on an undiscounted basis and associated expense is recorded in selling, general and administrative expenses. When recovery of a portion of an environmental liability is probable, such amounts are recognized as a reduction to selling, general and administrative expenses and included in prepaid expenses and other current assets (current portion) and other non-current assets until settled. Revenue Recognition Revenue is recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Sales taxes are excluded from revenue. At contract inception, the Company assesses the goods and services promised in its contracts with customers and identifies a performance obligation for each promised good or service that is distinct. The Company has elected to account for shipping and handling activities performed after a customer obtains control of the goods as activities to fulfill the promise to transfer the goods, and therefore these activities are not assessed as a separate service to customers. The amount of revenue recognized varies primarily with price concessions and changes in returns. The Company offers price concessions to its customers for incentive offerings, special pricing agreements, price competition, promotions or other volume-based arrangements. The Company determines whether price concessions offered to its customers are a reduction of the transaction price and revenue or are advertising expense, depending on whether the Company receives a distinct good or service from its customers and, if so, whether the Company can reasonably estimate the fair value of that distinct good or service. The Company evaluated such agreements with its customers and determined they should be accounted for as variable consideration. To estimate variable consideration, the Company applies both the expected value method and most likely amount method based on the form of variable consideration, according to which method would provide the better prediction. The expected value method involves a probability weighted determination of the expected amount, whereas the most likely amount method identifies the single most likely outcome in a range of possible amounts. Product Development Costs Expenses associated with the development of new products and changes to existing products are charged to expense as incurred. These costs, included in selling, general and administrative expenses, amounted to $12.4 million, $11.8 million and $8.6 million in 2023, 2022 and 2021, respectively. Foreign Currency Assets and liabilities of foreign operations are translated into U.S. dollars at the fiscal year-end exchange rate. Revenue and expenses of all foreign operations are translated using average monthly exchange rates prevailing during the year. The related translation adjustments, including translation on long-term intra-entity foreign currency transactions, are recorded as a separate component of stockholders’ equity. Financial Instruments Financial instruments held by the Company include cash and cash equivalents, trade receivables, accounts payable, revolving credit agreements, interest rate swap agreements and forward foreign currency exchange contracts. The Company does not hold or issue financial instruments or derivative financial instruments for trading purposes. 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 holds these derivative contracts with high-quality financial institutions and limits the amount of credit exposure to any one institution. The Company does not currently hold any nonderivative instruments designated as hedges or any derivatives designated as fair value hedges. 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) (“AOCI”). Deferred gains or losses are reclassified from AOCI to the 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 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 SOFR (Secured Overnight Financing Rate). For cash flow hedges, the Company formally assesses, both at inception and on a quarterly basis thereafter, whether the designated derivative instrument is highly effective in offsetting changes in cash flows of the hedged item. Changes in the fair value of interest rate swap agreements that are effective as hedges are recorded in AOCI. Deferred gains or losses are reclassified from AOCI to the 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, net. The Company discontinues hedge accounting prospectively when the derivative is not highly effective as a hedge, the underlying hedged transaction is no longer probable or the hedging instrument expires, is sold, terminated or exercised. 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 in other expense, net. Cash flows from hedging activities are reported in the Consolidated Statements of Cash Flows in the same classification as the hedged item, generally as a component of cash flows from operations. Fair Value Measurements The Company defines the fair value measurement of its financial assets and liabilities as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. Described below are the three levels of inputs that may be used to measure fair value: Level 1 - Quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities. Level 2 - Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. Level 3 - Unobservable inputs are used when little or no market data is available. The hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The classification of fair value measurements within the hierarchy is based upon the lowest level of input that is significant to the measurement. Stock Compensation Pursuant to the Executive Long-Term Equity Incentive Plan (the “Executive Plan”) established in September 2017, and amended and restated in March 2022, the Company grants shares of Class A Common, subject to transfer restrictions, as a means of retaining and rewarding selected employees for long-term performance. Shares awarded under the Executive Plan are fully vested and entitle the stockholder to all rights of common stock ownership except that shares may not be assigned, pledged or otherwise transferred during the restriction period. In general, the restriction period ends after , or ten years from the award date or at the earliest of (1) three years after the participant’s retirement date, or (2) the participant’s death or permanent disability. The Company issued 169,227, 150,062 and 158,272 shares of Class A Common in the years ended December 31, 2023, 2022 and 2021, respectively. After the issuance of these shares, there were 553,341 shares of Class A Common available for issuance under this plan. Stock compensation expense related to the Executive Plan was $4.2 million, $2.3 million and $2.1 million for the years ended December 31, 2023, 2022 and 2021, respectively, and was based on the fair value of Class A Common on the grant date. The Company also has a stock compensation plan for non-employee directors of the Company under which a portion of the annual retainer for each non-employee director is paid in transfer-restricted shares of Class A Common. For the year ended December 31, 2023, $110,000 ($150,000 for the Chairman) of the non-employee director’s annual retainer of $175,000 ($250,000 for the Chairman) was paid in transfer-restricted shares of Class A Common. For the year ended December 31, 2022, $110,000 ($150,000 for the Chairman) of the non-employee director’s annual retainer of $175,000 ($250,000 for the Chairman) was paid in transfer-restricted shares of Class A Common. Shares awarded under the plan are fully vested and entitle the stockholder to all rights of common stock ownership except that shares may not be assigned, pledged or otherwise transferred during the restriction period. In general, the transfer restriction period ends at the earliest of (1) ten years after the Quarter Date with respect to which such Required Shares were issued or transferred, (2) the date of the director’s death or date the director terminates service as a director due to permanent disability, (3) five years (or earlier with the approval of the Board) after the director’s date of retirement from the Board, or (4) the date the director has both retired from the Board and has reached age 70. Pursuant to this plan, the Company issued 100,238, 90,223 and 57,735 shares in the years ended December 31, 2023, 2022 and 2021, respectively. In addition to the mandatory retainer fee received in transfer-restricted stock, directors may elect to receive shares of Class A Common in lieu of cash for up to 100% of the balance of their annual retainer, committee retainer and any committee chairman’s fees. These voluntary shares are not subject to any restrictions. There were no shares issued under voluntary elections in 2023 and 2022. Total shares issued under voluntary elections were 1,768 in 2021. After the issuance of these shares, there were 93,408 shares of Class A Common available for issuance under this plan. Stock compensation expense related to these awards was $1.2 million, $1.1 million and $1.1 million for the years ended December 31, 2023, 2022 and 2021, respectively. Stock compensation expense represents fair value based on the market price of the shares of Class A Common on the grant date. Leases The Company adopted Topic 842 on January 1, 2022. The Company determines whether an arrangement is a lease at inception, considering whether the contract conveys a right to control the use of the identified asset for a period of time in exchange for consideration. Leases are classified as operating or finance leases at the commencement date of the lease. Operating leases are included in Right-of-use lease assets, Lease liabilities and Lease liabilities, non-current on the Consolidated Balance Sheets. Right-of-use lease assets and lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. Lease liabilities are classified between current and non-current liabilities based on their contractual payment terms. The right-of-use lease asset includes prepaid rent and reflects the unamortized balance of lease incentives. The Company’s leases may include renewal options, and the renewal option is included in the lease term if it is concluded that it is reasonably certain that we will exercise that option. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company has operating leases for real estate, equipment and production specific tooling assets used by our third-party suppliers. The Company has finance leases for certain equipment. The Company has elected not to record short-term leases with initial terms of twelve months or less in its Consolidated Balance Sheets. Lease expense for operating leases is recognized on a straight-line basis over the lease term. Lease expense for finance leases is recognized on a straight-line basis over the lease term unless a purchase option is exercised to transfer title at the end of the lease term in which case the expense is amortized over the useful life of the asset. Variable lease payments that do not depend on an index or a rate, such as the Company’s proportionate share of actual costs for utilities, common area maintenance, insurance and property taxes, are excluded from the measurement of the lease liability, unless subject to fixed minimum requirements, and are recognized as variable lease cost when the obligation for that payment is incurred. The Company combines lease and non-lease components as a single component for all asset classes. Lease expense is classified as cost of sales or selling, general and administrative expenses in its Consolidated Statements of Operations based on the use of the leased item. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. The Company’s estimated incremental borrowing rate reflects a secured rate based on recent debt issuances, its estimated credit rating, lease term, as well as publicly available data for instruments with similar characteristics. Treasury Stock The Company records the aggregate purchase price of treasury stock at cost and includes treasury stock as a reduction to stockholders’ equity. Income Taxes Tax law requires certain items to be included in the tax return at different times than the items are reflected in the financial statements. Some of these differences are permanent, such as expenses that are not deductible for tax purposes, and some differences are temporary, reversing over time, such as depreciation expense. These temporary differences create deferred tax assets and liabilities using currently enacted tax rates. The objective of accounting for income taxes is to recognize the amount of taxes payable or refundable for the current year, and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in the financial statements or tax returns. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the provision for income taxes in the period that includes the enactment date. The Company is required to estimate the timing of the recognition of deferred tax assets and liabilities, make assumptions about the future deductibility of deferred tax assets and assess deferred tax liabilities based on enacted law and tax rates for the appropriate tax jurisdictions to determine the amount of such deferred tax assets and liabilities. Changes in the calculated deferred tax assets and liabilities may occur in certain circumstances, including statutory income tax rate changes, statutory tax law changes or changes in the Company’s structure or tax status. The Company’s tax assets, liabilities and tax expense are supported by historical earnings and losses and the Company’s best estimates and assumptions of future earnings by jurisdiction. The Company assesses whether a valuation allowance should be established against the Company’s deferred tax assets based on consideration of all available evidence, both positive and negative, using a more likely than not standard. This assessment considers, among other matters, scheduled reversals of deferred tax liabilities, projected future taxable income, tax-planning strategies and results of recent operations. The assumptions about future taxable income require significant judgment and are consistent with the plans and estimates the Company is using to manage the underlying businesses. When the Company determines, based on all available evidence, that it is more likely than not that deferred tax assets will not be realized, a valuation allowance is established. Accounting Standards Adopted In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326)," which requires an entity to recognize and present financial assets at the net amount expected to be collected. This guidance replaces the current incurred loss impairment methodology for recognizing credit losses for financial assets and requires consideration of a broader range of reasonable and supportable information for estimating credit losses. The Company considers a combination of factors, such as historical losses, the aging of trade receivables, customers’ financial strength, credit standing and payment and default history in determining the appropriate estimate of expected credit losses. The Company adopted ASU 2016-13 and related amendments for the fiscal year beginning January 1, 2023; however, the adoption of this guidance did not have a material impact on the Company’s financial condition, results of operations or cash flows. In September 2022, the FASB issued ASU 2022-04, “Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations.” The new accounting rules create certain disclosure requirements for a buyer in a supplier finance program. The new accounting rules require qualitative and quantitative disclosures including key terms of the program, balance sheet presentation of related amounts, and the obligation amount the buyer has confirmed as valid to the finance provider, including a rollforward of the obligation. Only the amount of the obligation outstanding is required to be disclosed in interim periods. The accounting rules do not impact the recognition, measurement, or financial statement presentation of supplier finance program obligations. The Company adopted this guidance in the first quarter of 2023. The new accounting rules did not have an impact on the Company’s financial condition, results of operations or cash flows. The Company included a new disclosure in accordance with the new accounting rules. The annual requirement for the rollforward of the obligation is not effective until the fiscal year beginning January 1, 2024. The Company is planning to adopt at this time. Recently Issued Accounting Standards In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which updates reportable segment disclosure requirements on an annual and interim basis. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. Updates should be applied retrospectively to all prior periods presented in the financial statements. The Company is currently in the process of evaluating the impact of the new requirements but does not expect the adoption of this guidance to have a material impact on the Company’s consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which enhances income tax disclosure requirements primarily involving more detailed disclosure for income taxes paid and the effective tax rate reconciliation. The amendments are effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied prospectively but retrospective application is permitted. The Company is currently in the process of evaluating the impact of the new requirements but does not expect the adoption of this guidance to have a material impact on the Company’s consolidated financial statements.
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Property, Plant and Equipment, Net |
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Property, Plant and Equipment, Net | Property, Plant and Equipment, Net Property, plant and equipment, net includes the following:
Depreciation expense from property, plant and equipment, net for the years ended December 31, 2023, 2022 and 2021 was $4.2 million, $4.7 million, and $4.7 million, respectively.
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Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets | Intangible Assets Intangible assets other than goodwill, which are subject to amortization, consist of the following:
Amortization expense for intangible assets was $0.2 million for each of the years presented in the consolidated statements of operations. Expected annual amortization expense of intangible assets for the next five years is $0.2 million. The remaining useful life of the trademark intangible asset is approximately 6.5 years.
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Current and Long-Term Financing |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current and Long-Term Financing | Current and Long-Term Financing Financing arrangements exist at the subsidiary level. Hamilton Beach Brands Holding Company has not guaranteed any borrowings of its subsidiaries. The following table summarizes HBB’s available and outstanding borrowings:
Including swap settlements, interest paid on total debt was $3.0 million, $4.5 million and $2.8 million during 2023, 2022 and 2021, respectively. Interest capitalized was not material in 2023, 2022 and 2021. HBB has a $150.0 million senior secured floating-rate revolving credit facility (the “HBB Facility”) that expires in June 2025. Repayment of the HBB Facility is due on June 30, 2025, therefore all borrowings are classified as long-term debt as of December 31, 2023. The obligations under the HBB Facility are secured by substantially all of HBB’s assets. The HBB Facility also requires HBB to achieve a minimum fixed charge coverage ratio in certain circumstances, as defined in the HBB Facility. As of December 31, 2023, HBB was in compliance with all financial covenants in the HBB Facility. The maximum availability under the HBB Facility is governed by a borrowing base derived from advance rates against eligible trade receivables, inventory and trademarks of the borrowers, as defined in the HBB Facility. Borrowings bear interest at a floating rate, which can be a base rate, SOFR or bankers’ acceptance rate, as defined in the HBB Facility, plus an applicable margin. The applicable margins, effective December 31, 2023, for base rate loans and SOFR loans denominated in U.S. dollars were 0.00% and 1.55%, respectively. The applicable margins, effective December 31, 2023, for base rate loans and bankers’ acceptance loans denominated in Canadian dollars were 0.00% and 1.55%, respectively. The HBB Facility also requires a fee of 0.25% per annum on the unused commitment. The margins and unused commitment fee under the HBB Facility are subject to quarterly adjustment based on average excess availability. To reduce the exposure to changes in the market rate of interest, HBB has entered into interest rate swap agreements for a portion of the HBB Facility. Terms of the interest rate swap agreements require HBB to receive a variable interest rate and pay a fixed interest rate. Dividends are not to exceed $7.0 million during any calendar year to the extent that for the thirty days prior to the dividend payment date, and after giving effect to the dividend payment, HBB maintains excess availability of not less than $18.0 million. Dividend amounts are discretionary to the extent that for the thirty days prior to the dividend payment date, and after giving effect to the dividend payment, HBB maintains excess availability of not less than $30 million. The Company expects to continue to borrow against the facility and make voluntary repayments within the next twelve months.
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Fair Value Disclosure |
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Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosure | Fair Value Disclosure Recurring Fair Value Measurements The Company measures its derivatives at fair value 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 SOFR 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. The Company also incorporates the effect of HBB and counterparty credit risk into the valuation. Other Fair Value Measurement Disclosures The carrying amounts of cash and cash equivalents, trade receivables and accounts payable approximate fair value due to the short-term maturities of these instruments. The fair value of the HBB Facility, including book overdrafts, which approximate book value, were determined using current rates offered for similar obligations taking into account HBB’s credit risk, which is Level 2 as defined in the fair value hierarchy. There were no transfers into or out of Levels 1, 2 or 3 during the years ended December 31, 2023 and 2022.
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Derivative Financial Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments Foreign Currency Derivatives HBB held forward foreign currency exchange contracts with total notional amounts of $16.9 million and $11.3 million as of December 31, 2023 and 2022, respectively, denominated primarily in Canadian dollars and Mexican pesos. The fair value of these contracts approximated a payable of $0.5 million as of December 31, 2023 and a receivable of $0.1 million as of December 31, 2022. 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 AOCI. Interest Rate Derivatives HBB has interest rate swaps that hedge interest payments on its one-month SOFR borrowings. All swaps have been designated as cash flow hedges. The following table summarizes the notional amounts, related rates and remaining terms of interest rate swap agreements for HBB as of December 31, in millions:
The fair value of HBB’s interest rate swap agreements was a receivable of $4.0 million as of December 31, 2023 and a receivable of $5.4 million as of December 31, 2022. The mark-to-market effect of interest rate swap agreements that are considered effective as hedges has been included in AOCI. The interest rate swap agreements held by HBB on December 31, 2023 are expected to continue to be effective as hedges. The following table summarizes the fair value of derivative instruments as of December 31, as recorded in the Consolidated Balance Sheets:
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Leasing Arrangements |
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Lessee Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leasing Arrangements | Leasing Arrangements On January 1, 2022, the Company adopted ASU 2016-02, “Leases (Topic 842)”, which at commencement of the Company’s leases, requires recognition of right-of-use assets and corresponding liabilities based on the present value of future lease payments over the lease term. Some of the Company’s leases, primarily those for real estate assets, may contain both lease and non-lease components, the Company has elected to combine and account for lease and non-lease components as a single lease component. Leases with an initial term of 12 months or less are not recorded in the Consolidated Balance Sheets and lease expense for these leases are recognized on a straight-line basis over the lease term. The Company’s leases have remaining lease terms of one month to 11 years, some of which include options to extend the leases for up to 5 years. The renewal option is included in the lease term if it is concluded that it is reasonably certain that the Company will exercise that option. The assets associated with the Company’s leases primarily consist of real estate and equipment. Real estate leases are comprised of warehouses, corporate headquarters and sales offices. Equipment leases include office and warehouse equipment as well as Company specific tooling used by third-party suppliers in the production process. Payments under these lease arrangements may be fixed or variable.
(1) Primarily related to production specific tooling assets provided by third-party suppliers which are included in product purchases. (2) Leases with an initial term of 12 months or less During the second quarter of 2023, the Company recognized a $0.5 million impairment charge related to the consolidation of warehouses and the intention to sub-lease to a third-party, which is included within cost of sales in the Consolidated Statement of Operations. The impairment was measured using a discounted cash flow based on the marketed rate of the warehouse and the time expected to identify a sub-lessor. The following table presents supplemental cash flow and non-cash information related to leases:
The following table reconciles the undiscounted future lease payments for operating and finance leases to the lease liabilities recorded in the Consolidated Balance Sheet as of December 31, 2023:
The following table summarizes the weighted-average lease term and discount rate.
(1) The discount rates used to present value the lease liabilities are based on estimates of the Company’s incremental borrowing rate. As of December 31, 2023, the Company did not have any additional material operating or finance leases that had not yet commenced.
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Stockholders' Equity and Earnings Per Share |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity and Earnings Per Share | Stockholders' Equity and Earnings Per Share Capital Stock The authorized capital stock of the Company consists of Class A Common, Class B Common and one series of Preferred stock. Voting, dividend, conversion and liquidation rights of the Preferred stock are established by the Board upon issuance of such Preferred stock. The Company’s Class A Common is traded on the New York Stock Exchange under the ticker symbol “HBB.” Because of transfer restrictions on Class B Common, no trading market has developed, or is expected to develop, for the Class B Common. Subject to the rights of the holders of any series of preferred stock, each share of Class A Common will entitle the holder of the share to one vote on all matters submitted to stockholders, and each share of the Company’s Class B Common will entitle the holder of the share to ten votes on all such matters. Subject to the rights of the preferred stockholders, each share of Class A Common and Class B Common will be equal in respect of rights to dividends, except that in the case of dividends payable in stock, only Class A Common will be distributed with respect to Class A Common and only Class B Common will be distributed with respect to Class B Common. As the liquidation and dividend rights are identical, any distribution of earnings would be allocated to Class A and Class B stockholders on a proportionate basis, and accordingly the net income per share for each class of common stock is identical. The following table sets forth the Company’s authorized capital stock information:
(1) Class B Common converted to Class A Common were 228 shares during 2023 and 156 shares 2022. (2) The Company issued Class A Common of 270 during 2023 and 240 during 2022 related to the Company’s stock compensation plan. Stock Repurchase Program In November 2023, the Company’s Board approved a stock repurchase program for the purchase of up to $25 million of the Company’s Class A Common outstanding starting January 1, 2024 and ending December 31, 2025. The Company's previously authorized share buyback program was approved by the Company’s Board in February 2022 for the purchase of up to $25 million of the Company’s Class A Common outstanding starting February 22, 2022 and ending December 31, 2023. During the years ended December 31, 2023 and 2022, the Company repurchased 250,772 and 261,049 shares for an aggregate purchase price of $3.1 million and $3.0 million, respectively. There were no share repurchases during the year ended December 31, 2021. Accumulated Other Comprehensive Income (Loss) The following table summarizes changes in accumulated other comprehensive income (loss) by component and related tax effects for periods shown:
Earnings per share The weighted average number of shares of Class A Common and Class B Common outstanding used to calculate basic and diluted earnings (loss) per share were as follows:
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Revenue |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Revenue Revenue is recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services, which includes an estimate for variable consideration. The Company’s warranty program to the consumer consists generally of an assurance-type limited warranty lasting for varying periods of up to ten years for electric appliances, with the majority of products having a warranty of to three years. There is no guarantee to the consumer as the Company may repair or replace, in its discretion, products returned under warranty. Accordingly, the Company determined that no separate performance obligation exists. The Company’s products are not sold with a general right of return. Subject to certain terms and conditions, however, the Company will agree to accept a portion of products sold that, based on historical experience, are estimated to be returned for reasons such as product failure and excess inventory stocked by the customer. Product returns, customer programs and incentive offerings, including special pricing agreements, price competition, promotions and other volume-based incentives are accounted for as variable consideration. A description of revenue sources and performance obligations for the Company are as follows: Consumer and Commercial product revenue Transactions with both consumer and commercial customers generally originate upon the receipt of a purchase order from a customer, which in some cases are governed by master sales agreements, specifying product(s) that the customer desires. Contracts for product revenue have an original duration of one year or less, and payment terms are generally standard and based on customer creditworthiness. Revenue from product sales is recognized at the point in time when control transfers to the customer, which is either when a product is shipped from the Company’s facility, or delivered to customers, depending on the shipping terms. The amount of revenue recognized varies primarily with price concessions and changes in returns. The Company offers price concessions to its customers for incentive offerings, special pricing agreements, price competition, promotions or other volume-based arrangements. The Company evaluated such agreements with its customers and determined returns and price concessions should be accounted for as variable consideration. Consumer product revenue consists of sales of small electric household and specialty housewares appliances to traditional brick-and-mortar and ecommerce retailers, distributors and directly to the end consumer. A majority of this revenue is in North America. Commercial product revenue consists of sales of products for restaurants, fast-food chains, bars and hotels. Approximately one-half of the Company’s commercial sales is in the U.S. and the other half is in markets across the globe. License revenue From time to time, the Company enters into exclusive and non-exclusive licensing agreements which grant the right to use certain of the Company’s intellectual property (“IP”) in connection with designing, manufacturing, distributing, advertising, promoting and selling the licensees’ products during the term of the agreement. The IP that is licensed generally consists of trademarks, trade names, patents, trade dress, logos and/or products (the “Licensed IP”). In exchange for granting the right to use the Licensed IP, the Company receives a royalty payment, which is a function of (1) the total net sales of products that use the Licensed IP and (2) the royalty percentage that is stated in the licensing agreement. The Company recognizes revenue at the later of when the subsequent sales occur or when the performance obligation is satisfied (over time). The following table presents the Company’s revenue on a disaggregated basis for the year ending:
Walmart Inc. and its global subsidiaries accounted for approximately 27%, 26% and 28% of the Company’s revenue in 2023, 2022 and 2021, respectively. Amazon.com, Inc. and its subsidiaries accounted for approximately 24%, 23% and 22% of The Company’s revenue in 2023, 2022 and 2021 respectively. The Company’s five largest customers accounted for approximately 64%, 61% and 61% of its revenue in 2023, 2022 and 2021, respectively.
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Contingencies |
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Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies The Company is involved in various legal and regulatory proceedings and claims that have arisen in the ordinary course of business, including product liability, patent infringement, asbestos related claims, environmental and other claims. Although it is difficult to predict the ultimate outcome of these proceedings and claims, the Company believes the ultimate disposition of these matters will not have a material adverse effect on the financial condition, results of operation or cash flows of the Company. Any costs that the Company estimates will be paid as a result of these claims are accrued when the liability is considered probable and the amount of such costs can be reasonably estimated. If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the minimum of the range is accrued. The Company does not accrue liabilities when the likelihood that the liability has been incurred is probable but the amount cannot be reasonably estimated or when the liability is believed to be only reasonably possible or remote. For contingencies where an unfavorable outcome is probable or reasonably possible and which are material, the Company discloses the nature of the contingency and, in some circumstances, an estimate of the possible loss. Proceedings and claims asserted against the Company are subject to inherent uncertainties and unfavorable rulings could occur. If an unfavorable ruling were to occur, there exists the possibility of an adverse impact on the Company’s financial position and on the results of operations and cash flows for the period in which the ruling occurs, or in future periods. Environmental matters The Company is investigating or remediating historical environmental contamination at some current and former sites operated by it or by businesses it acquired. Based on the current stage of the investigation or remediation at each known site, the Company estimates the total investigation and remediation costs and the period of assessment and remediation activity required for each site. The estimate of future investigation and remediation costs is primarily based on variables associated with site clean-up, including, but not limited to, physical characteristics of the site, the nature and extent of the contamination and applicable regulatory programs and remediation standards. No assessment can fully characterize all subsurface conditions at a site. There is no assurance that additional assessment and remediation efforts will not result in adjustments to estimated remediation costs or the time frame for remediation at these sites. The Company’s estimates of investigation and remediation costs may change if it discovers contamination at additional sites or additional contamination at known sites, if the effectiveness of its current remediation efforts change, if applicable federal or state regulations change or if the Company’s estimate of the time required to remediate the sites changes. The Company’s current estimates may differ materially from original estimates. As of December 31, 2023 and December 31, 2022, the Company had of $3.4 million and $3.2 million respectively, for environmental investigation and remediation activities. The increase in the amount accrued as of December 31, 2023 compared to December 31, 2022 is due to a change in the expected type and extent of investigation and remediation activities associated with some of the sites. The Company estimates that it is reasonably possible that it may incur additional expenses in the range of zero to $1.5 million related to the environmental investigation and remediation at these sites. As of December 31, 2023, the Company has $1.0 million, classified as restricted cash, associated with reimbursement of environmental investigation and remediation costs from a responsible party in exchange for release from all future obligations for one site. Additionally, the Company has a $1.3 million asset associated with the reimbursement of costs associated with two sites, which is included in prepaid expenses and other current assets (current portion) and other non-current assets.
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes The components of income (loss) before income taxes and the income tax expense (benefit) for the years ended December 31 are as follows:
The Company made $3.1 million, $5.3 million and $6.4 million federal income tax payments during 2023, 2022 and 2021, respectively, to the IRS. The Company made foreign and state income tax payments of $3.2 million, $4.0 million and $2.6 million during 2023, 2022 and 2021, respectively. Income tax refunds totaled $0.1 million in 2023 and $0.5 million in 2022. No income tax refunds were received in 2021. A reconciliation of the federal statutory and effective income tax rate for the years ended December 31 is as follows:
A detailed summary of the total deferred tax assets and liabilities in the Company’s Consolidated Balance Sheets resulting from differences in the book and tax basis of assets and liabilities follows:
Certain items have been reclassified from their prior year classifications to conform to the current year presentation. These reclassifications had no effect on net income or stockholder's equity as previously reported. As of December 31, 2023 and 2022, respectively, the Company maintained valuation allowances with respect to certain deferred tax assets relating primarily to operating losses in certain non-U.S. jurisdictions that the Company believes are not likely to be realized. The following table summarizes the tax carryforwards and associated carryforward periods and related valuation allowances where the Company has determined that realization is uncertain:
Based upon the review of historical earnings and the relevant expiration of carryforwards, the Company believes the valuation allowances are appropriate and does not expect to release valuation allowances within the next twelve months that would have a significant effect on the Company’s financial position or results of operations. As of December 31, 2023, the cumulative unremitted earnings of the Company’s foreign subsidiaries are approximately $19.3 million. The Company has recorded the tax impact for the unremitted earnings as allowed under the Tax Cuts and Jobs Act (the “Tax Act”), a portion of which is classified in other long-term liabilities as the Company has elected to make payments over eight years. The Company continues to conclude all material entities’ foreign earnings will be indefinitely reinvested in its foreign operations and will remain offshore in order to meet the capital and business needs outside of the U.S. As a result, the Company does not provide a deferred tax liability with respect to the cumulative unremitted earnings. It is not practicable to determine the deferred tax liability associated with these undistributed earnings due to the availability of foreign tax credits and the complexity of the rules governing the utilization of such credits under the new rules under the Tax Act. The Company recognizes any tax impacts of global intangible low-taxed income (GILTI) as period costs similar to other special deductions, and not as deferred taxes for basis differences. The following is a reconciliation of the Company’s total gross unrecognized tax benefits, defined as the aggregate tax effect of differences between tax return positions and the benefits recognized in the financial statements for the years ended December 31, 2023, 2022 and 2021. Approximately $1.4 million, $0.2 million and $3.8 million of these gross amounts as of December 31, 2023, 2022 and 2021, respectively, relate to permanent items that, if recognized, would impact the effective income tax rate. This amount differs from the gross unrecognized tax benefits presented in the table below due to the decrease in U.S. federal income taxes which would occur upon the recognition of the state tax benefits included herein.
The Company records interest and penalties on uncertain tax positions as a component of the income tax provision. The Company recognized no income or expense as of December 31, 2023. The Company recognized income of $1.5 million related to the reversal of interest and penalties as of December 31, 2022. The Company recognized expense of $1.1 million related to interest and penalties as of December 31, 2021. There were no accruals for interest and penalties as of December 31, 2023 and 2022. The total amount of interest and penalties accrued was $1.9 million as of December 31, 2021. In general, the Company operates in taxing jurisdictions that provide a statute of limitations period ranging from three to five years for the taxing authorities to review the applicable tax filings. The Company is generally open for examination of foreign jurisdictions for the tax year 2017 and beyond. In addition, the Company has extended the U.S. federal statute of limitations for tax years 2017 through 2019 related to a specific issue. Other than the extension related to a specific issue, the Company does not have any material taxing jurisdictions in which the statute of limitations has been extended beyond the applicable time frame allowed by law.
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Retirement Benefit Plans |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefit Plans | Retirement Benefit Plans Defined Benefit Plans The Company maintains two defined benefit pension plans that provide benefits based on years of service and average compensation during certain periods. The Company’s U.S. plan was frozen, effective December 31, 1996, for participation and benefit accrual purposes (except cash balance interest credits required by law). Similarly, the Company’s non-U.S. plan was frozen, effective December 31, 2008. During 2022, the Board approved the termination of our U.S. defined benefit pension plan (the “Plan”) with an effective date of September 30, 2022. The termination process is still ongoing and is expected to be completed in 2024. Benefit obligations under the Plan will be settled through a combination of lump sum payments to eligible plan participants and the purchase of a group annuity contract, under which future benefit obligations will be transferred to a third-party insurance company. The Company currently expects that all surplus assets remaining after the Plan termination will be transferred to a qualified replacement plan. The deferred loss within Accumulated Other Comprehensive Income will be recognized fully when the plan is terminated or as settlements occur, which would trigger accelerated recognition. The weighted-average assumptions used in accounting for the defined benefit plans were as follows for the years ended December 31:
Set forth below is a detail of the net periodic pension (income) expense, included in other expense (income), net for the defined benefit plans for the years ended December 31:
Set forth below is the detail of other changes in plan assets and benefit obligations recognized in other comprehensive loss (income) for the years ended December 31:
The following table sets forth the changes in the benefit obligation and the plan assets during the year and the funded status of the defined benefit plans as of December 31:
The Company recognizes as a component of benefit cost (income), as of the measurement date, any unrecognized actuarial net gains or losses that exceed 10% of the larger of the projected benefit obligations or the plan assets, defined as the “corridor.” Amounts outside the corridor are amortized over the average expected remaining lifetime of inactive participants for the pension plans. The gain (loss) amounts recognized in AOCI are not expected to be fully recognized until the plan is terminated or as settlements occur, which would trigger accelerated recognition. The Company’s policy is to make contributions to fund its pension plans within the range allowed by applicable regulations. The Company does not expect to contribute to its U.S. and non-U.S. pension plans in 2024. Pension benefit payments are made from assets of the pension plans. Given the Company’s plan to terminate the Plan, the below reflects the timing and value of the estimated benefit payments for lump sums expected to be paid out to participants and the amount expected to be paid for annuity contracts in anticipation of terminating the plan. Future pension benefit payments expected to be paid from assets of the pension plans are:
Historically, the Company employed a total return on investment approach whereby a mix of equities and fixed income investments were used to maximize the long-term return of plan assets for a prudent level of risk. In light of the Plan termination process, volatility in the market and the Plan’s funding status, the Plan transferred a significant portion of its assets to lower risk investments in 2022 to move towards a liability driven investing strategy whereby the assets are primarily fixed income investments. The fixed income investments that were chosen under this strategy, while not precisely the same, are meant to parallel the investments selected in determining the discount rate used to calculate the Company’s pension liability. For the Non-U.S. Plan, the expected long-term rate of return on defined benefit plan assets reflects the Company’s expectations of long-term rates of return on funds invested to provide for benefits included in the projected benefit obligations. In establishing the expected long-term rate of return assumption for plan assets, the Company considers the historical rates of return over a period of time that is consistent with the long-term nature of the underlying obligations of these plans as well as a forward-looking rate of return. The historical and forward-looking rates of return are used to determine the Company’s estimated rate of return assumption were based upon the rates of return earned or expected to be earned by investments in the equivalent benchmark market indices for each of the asset classes. Expected returns for U.S. pension plans are based on a calculated market-related value for U.S. pension plan assets. Under this methodology, asset gains and losses resulting from actual returns that differ from the Company’s expected returns are recognized in the market-related value of assets ratably over three years. Expected returns for non-U.S. pension plans are based on fair market value for non-U.S. pension plan assets. The pension plans maintain investment policies that, among other things, establish a portfolio asset allocation methodology with percentage allocation bands for individual asset classes. The investment policies provide that investments are reallocated between asset classes as balances exceed or fall below the appropriate allocation bands. The following is the actual allocation percentage and target allocation percentage for the U.S. pension plan assets as of December 31:
The following is the actual allocation percentage and target allocation percentage for the Non-U.S. pension plan assets as of December 31:
The fair value of each major category of the Company’s U.S. pension plan assets are valued using quoted market prices in active markets for identical assets, or Level 1 in the fair value hierarchy. The fair value of each major category of the Company’s Non-U.S. pension plan assets are valued using observable inputs, either directly or indirectly, other than quoted market prices in active markets for identical assets. Following are the values as of December 31:
Defined Contribution Plans HBB maintains a defined contribution (401(k)) plan for substantially all U.S. employees and similar plans for employees outside of the U.S. The Company’s U.S. plan provides employer safe harbor contributions based on plan provisions and both defined contribution retirement plans provide for a separate employer contribution. These plans permit additional profit-sharing contributions, determined annually, that are based on a formula that includes (1) the effect of actual operating profit results compared with targeted operating profit results and (2) the age and/or compensation of the participants. Total costs, including Company contributions, for these plans were $5.0 million in 2023, $5.2 million in 2022 and $5.0 million in 2021.
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Data by Geographic Region |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Data by Geographic Region | Data by Geographic Region Revenue and property, plant and equipment related to operations outside the U.S., based on customer and asset location, are as follows:
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Subsequent Events |
12 Months Ended |
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Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On February 2, 2024, the Company acquired HealthBeacon PLC (“HealthBeacon”), a medical technology firm and strategic partner of the Company, for 6.9 million euros (approximately $7.5 million). As a result, the secured loans made under the Facility Agreement with HealthBeacon were extinguished. As of December 31, 2023, the outstanding loan balance including accrued interest was 1.5 million euros ($1.6 million) and is included in prepaid expenses and other current assets. The funding of the loan by the Company is included in cash used in investing activities in the Consolidated Statement of Cash Flows. |
Schedule II - Valuation and Qualifying Accounts |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS HAMILTON BEACH BRANDS HOLDING COMPANY YEAR ENDED DECEMBER 31, 2023, 2022 AND 2021
(A)Write-offs, net of recoveries and foreign exchange rate adjustments. (B)Balances which are not required to be presented and those which are immaterial have been omitted. (C)Foreign exchange rate adjustments and utilization of foreign entity losses.
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
12 Months Ended | ||
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Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
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Pay vs Performance Disclosure | |||
Net income (loss) | $ 25,242 | $ 25,267 | $ 21,306 |
Insider Trading Arrangements |
3 Months Ended |
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Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Nature of Operations and Summary of Significant Accounting Policies (Policies) |
12 Months Ended |
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Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying consolidated financial statements include the financial statements of the Company and have been prepared in accordance with U.S. generally accepted accounting principles (GAAP). |
Principles of Consolidation | Intercompany balances and transactions have been eliminated. |
Segment Information | Segment Information As of December 31, 2023, HBB is the Company’s single reportable operating segment. The Company’s reportable segment is determined based on (1) financial information reviewed by the chief operating decision maker (“CODM”) (2) operational structure of the Company which is designed and managed to share resources across the entire suite of products offered by the business, and (3) the basis upon which the CODM makes resource allocation decisions. Since the Company operates in one reportable segment, all required financial segment information can be found in the consolidated financial statements.
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Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses and disclosure of contingent assets and liabilities (if any). Actual results could differ from those estimates.
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Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash in banks and highly liquid investments with original maturities of three months or less.
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Trade Receivables | Trade Receivables Allowances for doubtful accounts are maintained against trade receivables for estimated losses resulting from the inability of customers to make required payments. These allowances are based on both recent trends of certain customers estimated to be a greater credit risk as well as general trends of the entire customer pool. Accounts are written off against the allowance when it becomes evident collection will not occur. The Company maintains significant trade receivables balances with several large retail customers.
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Accounts payable - Supplier Finance Program | Accounts payable - Supplier Finance Program The Company has an agreement with a third-party administrator to provide an accounts payable tracking system which facilitates a participating supplier’s ability to monitor and voluntarily elect to sell payment obligations owed by the Company to the designated third-party financial institution. Participating suppliers can sell one or more of the Company’s payment obligations at their sole discretion. The Company has no economic interest in a supplier’s decision to sell one or more of its payment obligations. The Company’s rights and obligations with respect to such payment obligations, including amounts due and scheduled payment terms, are not impacted by suppliers’ decisions to sell amounts under these arrangements. The agreement has a limit of $60.0 million in payment obligations ($85.0 million during peak season from August to January). There is no requirement to provide assets pledged as security or other forms of guarantees under the agreement. The Company pays the third-party administrator based upon the original payment terms negotiated with participating suppliers. The payment of these obligations by the Company is included in cash used in operating activities in the Consolidated Statement of Cash Flows.
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Transfer of Financial Assets | Transfer of Financial Assets The Company has entered into an arrangement with a financial institution to sell certain U.S. trade receivables on a non-recourse basis. Under the terms of the agreement, the Company receives cash proceeds and retains no rights or interest and has no obligations with respect to the sold receivables. These transactions, which are accounted for as sold receivables, result in a reduction in trade receivables because the agreement transfers effective control over and risk related to the receivables to the buyer. Under this arrangement, the Company derecognized $128.7 million, $118.5 million and $140.7 million of trade receivables during 2023, 2022 and 2021, respectively. The losses incurred on sold receivables in the consolidated results of operations for the years ended December 31, 2023, 2022 and 2021 were not material. The Company does not carry any servicing assets or liabilities. Cash proceeds from this arrangement are reflected as operating activities.
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Inventory | Inventory Inventory is stated at the lower of cost or net realizable value with cost determined under the first-in, first-out (“FIFO”) method. Adjustments to the carrying value are recorded for estimated obsolescence or excess inventory equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions.
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Assets Held for Sale | Assets Held for Sale During the fourth quarter of 2020, the Company committed to a plan to sell its Brazilian subsidiary and determined that it met all of the criteria to classify the assets and liabilities of this business as held for sale. In April 2021, the Company made the decision to wind down the Brazilian subsidiary and enter into a licensing agreement with a third party to service the Brazilian market. The carrying amounts of the assets were reclassified to held and used during the second quarter of 2021. During the first quarter of 2022, the criteria for substantially complete liquidation were met, and $2.1 million of accumulated other comprehensive losses were released into other expense (income), net in the consolidated results of operations during the three months ended March 31, 2022.
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Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are measured at cost less accumulated depreciation, amortization and accumulated impairment losses. Depreciation and amortization are recorded generally using the straight-line method over the estimated useful lives of the assets. Estimated lives for buildings are up to 40 years, and for machinery, equipment and furniture and fixtures range from to seven years. Leasehold improvements are depreciated over the shorter of the estimated useful life or the term of the lease. The units-of-production method is used to amortize certain tooling for sourced products. Costs incurred to develop software for internal use are capitalized and amortized over the estimated useful life of the software. Gains or losses from the sale of assets are included in selling, general and administrative expenses. Repairs and maintenance are charged to expense as incurred. Interest is capitalized for qualifying long-term capital asset projects as a part of the historical cost of acquiring the asset. The Company evaluates long-lived assets for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets to be held and used is measured by a comparison of the carrying amount of the asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount exceeds the fair value of the asset. Fair value is estimated at the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
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Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill represents the excess of the purchase price of acquisitions over the estimated fair value of the net assets acquired. Goodwill is not amortized but evaluated at least annually for impairment. The Company conducts its annual test for impairment as of October 1 of each year and it may be conducted more frequently if changes in circumstances or the occurrence of events indicates that a potential impairment exists. Using a qualitative assessment in the current year, the Company determined that it was more-likely-than-not that the goodwill was not impaired and a quantitative test for impairment was not required. Intangible assets with finite lives are amortized over their estimated useful lives, which represent the period over which the asset is expected to contribute directly or indirectly to future cash flows. Intangible assets with finite lives are reviewed for impairment whenever events and circumstances indicate the carrying value of such assets may not be recoverable and exceed their fair value. If an impairment loss exists, the carrying amount of the intangible asset is adjusted to a new cost basis. The new cost basis is amortized over the remaining useful life of the asset.
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Environmental Liabilities | Environmental Liabilities The Company and environmental consultants are investigating or remediating historical environmental contamination at some current and former sites operated by the Company or by businesses has acquired. Liabilities for environmental matters are recorded in the period when it is determined to be probable and reasonably estimable that the Company will incur costs. When only a range of amounts is reasonably estimable and no amount within the range is more probable than another, the Company records the low end of the range. Environmental liabilities are recorded on an undiscounted basis and associated expense is recorded in selling, general and administrative expenses. When recovery of a portion of an environmental liability is probable, such amounts are recognized as a reduction to selling, general and administrative expenses and included in prepaid expenses and other current assets (current portion) and other non-current assets until settled.
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Revenue Recognition | Revenue Recognition Revenue is recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Sales taxes are excluded from revenue. At contract inception, the Company assesses the goods and services promised in its contracts with customers and identifies a performance obligation for each promised good or service that is distinct. The Company has elected to account for shipping and handling activities performed after a customer obtains control of the goods as activities to fulfill the promise to transfer the goods, and therefore these activities are not assessed as a separate service to customers. The amount of revenue recognized varies primarily with price concessions and changes in returns. The Company offers price concessions to its customers for incentive offerings, special pricing agreements, price competition, promotions or other volume-based arrangements. The Company determines whether price concessions offered to its customers are a reduction of the transaction price and revenue or are advertising expense, depending on whether the Company receives a distinct good or service from its customers and, if so, whether the Company can reasonably estimate the fair value of that distinct good or service. The Company evaluated such agreements with its customers and determined they should be accounted for as variable consideration. To estimate variable consideration, the Company applies both the expected value method and most likely amount method based on the form of variable consideration, according to which method would provide the better prediction. The expected value method involves a probability weighted determination of the expected amount, whereas the most likely amount method identifies the single most likely outcome in a range of possible amounts.
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Product Development Costs | Product Development Costs Expenses associated with the development of new products and changes to existing products are charged to expense as incurred.
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Foreign Currency | Foreign Currency Assets and liabilities of foreign operations are translated into U.S. dollars at the fiscal year-end exchange rate. Revenue and expenses of all foreign operations are translated using average monthly exchange rates prevailing during the year. The related translation adjustments, including translation on long-term intra-entity foreign currency transactions, are recorded as a separate component of stockholders’ equity.
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Financial Instruments | Financial Instruments Financial instruments held by the Company include cash and cash equivalents, trade receivables, accounts payable, revolving credit agreements, interest rate swap agreements and forward foreign currency exchange contracts. The Company does not hold or issue financial instruments or derivative financial instruments for trading purposes. 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 holds these derivative contracts with high-quality financial institutions and limits the amount of credit exposure to any one institution. The Company does not currently hold any nonderivative instruments designated as hedges or any derivatives designated as fair value hedges. 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) (“AOCI”). Deferred gains or losses are reclassified from AOCI to the 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 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 SOFR (Secured Overnight Financing Rate). For cash flow hedges, the Company formally assesses, both at inception and on a quarterly basis thereafter, whether the designated derivative instrument is highly effective in offsetting changes in cash flows of the hedged item. Changes in the fair value of interest rate swap agreements that are effective as hedges are recorded in AOCI. Deferred gains or losses are reclassified from AOCI to the 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, net. The Company discontinues hedge accounting prospectively when the derivative is not highly effective as a hedge, the underlying hedged transaction is no longer probable or the hedging instrument expires, is sold, terminated or exercised. 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 in other expense, net. Cash flows from hedging activities are reported in the Consolidated Statements of Cash Flows in the same classification as the hedged item, generally as a component of cash flows from operations.
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Fair Value Measurements | Fair Value Measurements The Company defines the fair value measurement of its financial assets and liabilities as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. Described below are the three levels of inputs that may be used to measure fair value: Level 1 - Quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities. Level 2 - Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. Level 3 - Unobservable inputs are used when little or no market data is available. The hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The classification of fair value measurements within the hierarchy is based upon the lowest level of input that is significant to the measurement.
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Stock Compensation | Stock Compensation Pursuant to the Executive Long-Term Equity Incentive Plan (the “Executive Plan”) established in September 2017, and amended and restated in March 2022, the Company grants shares of Class A Common, subject to transfer restrictions, as a means of retaining and rewarding selected employees for long-term performance. Shares awarded under the Executive Plan are fully vested and entitle the stockholder to all rights of common stock ownership except that shares may not be assigned, pledged or otherwise transferred during the restriction period. In general, the restriction period ends after , or ten years from the award date or at the earliest of (1) three years after the participant’s retirement date, or (2) the participant’s death or permanent disability. The Company issued 169,227, 150,062 and 158,272 shares of Class A Common in the years ended December 31, 2023, 2022 and 2021, respectively. After the issuance of these shares, there were 553,341 shares of Class A Common available for issuance under this plan. Stock compensation expense related to the Executive Plan was $4.2 million, $2.3 million and $2.1 million for the years ended December 31, 2023, 2022 and 2021, respectively, and was based on the fair value of Class A Common on the grant date. The Company also has a stock compensation plan for non-employee directors of the Company under which a portion of the annual retainer for each non-employee director is paid in transfer-restricted shares of Class A Common. For the year ended December 31, 2023, $110,000 ($150,000 for the Chairman) of the non-employee director’s annual retainer of $175,000 ($250,000 for the Chairman) was paid in transfer-restricted shares of Class A Common. For the year ended December 31, 2022, $110,000 ($150,000 for the Chairman) of the non-employee director’s annual retainer of $175,000 ($250,000 for the Chairman) was paid in transfer-restricted shares of Class A Common. Shares awarded under the plan are fully vested and entitle the stockholder to all rights of common stock ownership except that shares may not be assigned, pledged or otherwise transferred during the restriction period. In general, the transfer restriction period ends at the earliest of (1) ten years after the Quarter Date with respect to which such Required Shares were issued or transferred, (2) the date of the director’s death or date the director terminates service as a director due to permanent disability, (3) five years (or earlier with the approval of the Board) after the director’s date of retirement from the Board, or (4) the date the director has both retired from the Board and has reached age 70. Pursuant to this plan, the Company issued 100,238, 90,223 and 57,735 shares in the years ended December 31, 2023, 2022 and 2021, respectively. In addition to the mandatory retainer fee received in transfer-restricted stock, directors may elect to receive shares of Class A Common in lieu of cash for up to 100% of the balance of their annual retainer, committee retainer and any committee chairman’s fees. These voluntary shares are not subject to any restrictions. There were no shares issued under voluntary elections in 2023 and 2022. Total shares issued under voluntary elections were 1,768 in 2021. After the issuance of these shares, there were 93,408 shares of Class A Common available for issuance under this plan. Stock compensation expense related to these awards was $1.2 million, $1.1 million and $1.1 million for the years ended December 31, 2023, 2022 and 2021, respectively. Stock compensation expense represents fair value based on the market price of the shares of Class A Common on the grant date.
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Leases | Leases The Company adopted Topic 842 on January 1, 2022. The Company determines whether an arrangement is a lease at inception, considering whether the contract conveys a right to control the use of the identified asset for a period of time in exchange for consideration. Leases are classified as operating or finance leases at the commencement date of the lease. Operating leases are included in Right-of-use lease assets, Lease liabilities and Lease liabilities, non-current on the Consolidated Balance Sheets. Right-of-use lease assets and lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. Lease liabilities are classified between current and non-current liabilities based on their contractual payment terms. The right-of-use lease asset includes prepaid rent and reflects the unamortized balance of lease incentives. The Company’s leases may include renewal options, and the renewal option is included in the lease term if it is concluded that it is reasonably certain that we will exercise that option. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company has operating leases for real estate, equipment and production specific tooling assets used by our third-party suppliers. The Company has finance leases for certain equipment. The Company has elected not to record short-term leases with initial terms of twelve months or less in its Consolidated Balance Sheets. Lease expense for operating leases is recognized on a straight-line basis over the lease term. Lease expense for finance leases is recognized on a straight-line basis over the lease term unless a purchase option is exercised to transfer title at the end of the lease term in which case the expense is amortized over the useful life of the asset. Variable lease payments that do not depend on an index or a rate, such as the Company’s proportionate share of actual costs for utilities, common area maintenance, insurance and property taxes, are excluded from the measurement of the lease liability, unless subject to fixed minimum requirements, and are recognized as variable lease cost when the obligation for that payment is incurred. The Company combines lease and non-lease components as a single component for all asset classes. Lease expense is classified as cost of sales or selling, general and administrative expenses in its Consolidated Statements of Operations based on the use of the leased item. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. The Company’s estimated incremental borrowing rate reflects a secured rate based on recent debt issuances, its estimated credit rating, lease term, as well as publicly available data for instruments with similar characteristics.
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Treasury Stock | Treasury Stock The Company records the aggregate purchase price of treasury stock at cost and includes treasury stock as a reduction to stockholders’ equity.
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Income Taxes | Income Taxes Tax law requires certain items to be included in the tax return at different times than the items are reflected in the financial statements. Some of these differences are permanent, such as expenses that are not deductible for tax purposes, and some differences are temporary, reversing over time, such as depreciation expense. These temporary differences create deferred tax assets and liabilities using currently enacted tax rates. The objective of accounting for income taxes is to recognize the amount of taxes payable or refundable for the current year, and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in the financial statements or tax returns. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the provision for income taxes in the period that includes the enactment date. The Company is required to estimate the timing of the recognition of deferred tax assets and liabilities, make assumptions about the future deductibility of deferred tax assets and assess deferred tax liabilities based on enacted law and tax rates for the appropriate tax jurisdictions to determine the amount of such deferred tax assets and liabilities. Changes in the calculated deferred tax assets and liabilities may occur in certain circumstances, including statutory income tax rate changes, statutory tax law changes or changes in the Company’s structure or tax status. The Company’s tax assets, liabilities and tax expense are supported by historical earnings and losses and the Company’s best estimates and assumptions of future earnings by jurisdiction. The Company assesses whether a valuation allowance should be established against the Company’s deferred tax assets based on consideration of all available evidence, both positive and negative, using a more likely than not standard. This assessment considers, among other matters, scheduled reversals of deferred tax liabilities, projected future taxable income, tax-planning strategies and results of recent operations. The assumptions about future taxable income require significant judgment and are consistent with the plans and estimates the Company is using to manage the underlying businesses. When the Company determines, based on all available evidence, that it is more likely than not that deferred tax assets will not be realized, a valuation allowance is established.
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Accounting Standards Adopted and Recently Issued Accounting Standards | Accounting Standards Adopted In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326)," which requires an entity to recognize and present financial assets at the net amount expected to be collected. This guidance replaces the current incurred loss impairment methodology for recognizing credit losses for financial assets and requires consideration of a broader range of reasonable and supportable information for estimating credit losses. The Company considers a combination of factors, such as historical losses, the aging of trade receivables, customers’ financial strength, credit standing and payment and default history in determining the appropriate estimate of expected credit losses. The Company adopted ASU 2016-13 and related amendments for the fiscal year beginning January 1, 2023; however, the adoption of this guidance did not have a material impact on the Company’s financial condition, results of operations or cash flows. In September 2022, the FASB issued ASU 2022-04, “Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations.” The new accounting rules create certain disclosure requirements for a buyer in a supplier finance program. The new accounting rules require qualitative and quantitative disclosures including key terms of the program, balance sheet presentation of related amounts, and the obligation amount the buyer has confirmed as valid to the finance provider, including a rollforward of the obligation. Only the amount of the obligation outstanding is required to be disclosed in interim periods. The accounting rules do not impact the recognition, measurement, or financial statement presentation of supplier finance program obligations. The Company adopted this guidance in the first quarter of 2023. The new accounting rules did not have an impact on the Company’s financial condition, results of operations or cash flows. The Company included a new disclosure in accordance with the new accounting rules. The annual requirement for the rollforward of the obligation is not effective until the fiscal year beginning January 1, 2024. The Company is planning to adopt at this time. Recently Issued Accounting Standards In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which updates reportable segment disclosure requirements on an annual and interim basis. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. Updates should be applied retrospectively to all prior periods presented in the financial statements. The Company is currently in the process of evaluating the impact of the new requirements but does not expect the adoption of this guidance to have a material impact on the Company’s consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which enhances income tax disclosure requirements primarily involving more detailed disclosure for income taxes paid and the effective tax rate reconciliation. The amendments are effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied prospectively but retrospective application is permitted. The Company is currently in the process of evaluating the impact of the new requirements but does not expect the adoption of this guidance to have a material impact on the Company’s consolidated financial statements.
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Property, Plant and Equipment, Net (Tables) |
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Schedule of Property, Plant and Equipment, Net | Property, plant and equipment, net includes the following:
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Intangible Assets (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets | Intangible assets other than goodwill, which are subject to amortization, consist of the following:
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Current and Long-Term Financing (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | The following table summarizes HBB’s available and outstanding borrowings:
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Derivative Financial Instruments (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Interest Rate Derivatives | The following table summarizes the notional amounts, related rates and remaining terms of interest rate swap agreements for HBB as of December 31, in millions:
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Schedule of the Fair Value of Derivative Instruments Recorded in the Consolidated Balance Sheets | The following table summarizes the fair value of derivative instruments as of December 31, as recorded in the Consolidated Balance Sheets:
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Leasing Arrangements (Tables) |
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lessee Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Lease Cost, Supplemental Cash Flow and Non-cash Information |
(1) Primarily related to production specific tooling assets provided by third-party suppliers which are included in product purchases. (2) Leases with an initial term of 12 months or less The following table presents supplemental cash flow and non-cash information related to leases:
The following table summarizes the weighted-average lease term and discount rate.
(1) The discount rates used to present value the lease liabilities are based on estimates of the Company’s incremental borrowing rate.
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Schedule of Future Lease Payments for Operating Leases | The following table reconciles the undiscounted future lease payments for operating and finance leases to the lease liabilities recorded in the Consolidated Balance Sheet as of December 31, 2023:
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Stockholders' Equity and Earnings Per Share (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock by Class | The following table sets forth the Company’s authorized capital stock information:
(1) Class B Common converted to Class A Common were 228 shares during 2023 and 156 shares 2022. (2) The Company issued Class A Common of 270 during 2023 and 240 during 2022 related to the Company’s stock compensation plan.
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Schedule of Reclassification out of Accumulated Other Comprehensive Income (Loss) | The following table summarizes changes in accumulated other comprehensive income (loss) by component and related tax effects for periods shown:
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Schedule of Earnings (Loss) Per Share | The weighted average number of shares of Class A Common and Class B Common outstanding used to calculate basic and diluted earnings (loss) per share were as follows:
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Revenue (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disaggregation of Revenue | The following table presents the Company’s revenue on a disaggregated basis for the year ending:
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Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Income Tax Expense (Benefit) | The components of income (loss) before income taxes and the income tax expense (benefit) for the years ended December 31 are as follows:
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Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the federal statutory and effective income tax rate for the years ended December 31 is as follows:
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Schedule of Deferred Tax Assets and Liabilities | A detailed summary of the total deferred tax assets and liabilities in the Company’s Consolidated Balance Sheets resulting from differences in the book and tax basis of assets and liabilities follows:
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Schedule of Tax Credit Carryforwards | The following table summarizes the tax carryforwards and associated carryforward periods and related valuation allowances where the Company has determined that realization is uncertain:
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Schedule of Unrecognized Tax Benefits Roll Forward | The following is a reconciliation of the Company’s total gross unrecognized tax benefits, defined as the aggregate tax effect of differences between tax return positions and the benefits recognized in the financial statements for the years ended December 31, 2023, 2022 and 2021. Approximately $1.4 million, $0.2 million and $3.8 million of these gross amounts as of December 31, 2023, 2022 and 2021, respectively, relate to permanent items that, if recognized, would impact the effective income tax rate. This amount differs from the gross unrecognized tax benefits presented in the table below due to the decrease in U.S. federal income taxes which would occur upon the recognition of the state tax benefits included herein.
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Retirement Benefit Plans (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assumptions Used in Accounting for the Defined Benefit Plan | The weighted-average assumptions used in accounting for the defined benefit plans were as follows for the years ended December 31:
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Schedule of Net Periodic Benefit Income and Expense for the Defined Benefit Plan | Set forth below is a detail of the net periodic pension (income) expense, included in other expense (income), net for the defined benefit plans for the years ended December 31:
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Schedule of Changes in Plan Assets and Benefit Obligations Recognized in Comprehensive Loss (Income) | Set forth below is the detail of other changes in plan assets and benefit obligations recognized in other comprehensive loss (income) for the years ended December 31:
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Schedule of Changes in Benefit Obligations during the year and Funded Status of Defined Benefit Plan | The following table sets forth the changes in the benefit obligation and the plan assets during the year and the funded status of the defined benefit plans as of December 31:
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Schedule of Future Benefit Payments | Future pension benefit payments expected to be paid from assets of the pension plans are:
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Schedule of Actual and Target Allocation Percentage for Pension Plan Assets | The following is the actual allocation percentage and target allocation percentage for the U.S. pension plan assets as of December 31:
The following is the actual allocation percentage and target allocation percentage for the Non-U.S. pension plan assets as of December 31:
|
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Schedule of Fair Value of Pension Plan Assets | Following are the values as of December 31:
|
Data by Geographic Region (Tables) |
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | Revenue and property, plant and equipment related to operations outside the U.S., based on customer and asset location, are as follows:
|
Nature of Operations and Summary of Significant Accounting Policies (Segment Information) (Details) |
12 Months Ended |
---|---|
Dec. 31, 2023
segment
| |
Accounting Policies [Abstract] | |
Number of reportable segments | 1 |
Number of operating segments | 1 |
Nature of Operations and Summary of Significant Accounting Policies (Trade Receivables) (Details) |
12 Months Ended | |
---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Five Largest Customers | Consolidated Net Accounts Receivable | Customer Concentration Risk | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk (as a percent) | 72.00% | 73.00% |
Nature of Operations and Summary of Significant Accounting Policies (Accounts Payable - Supplier Finance Program) (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Supplier Finance Program [Line Items] | ||
Limit on payment obligations | $ 60.0 | |
Outstanding payment obligations, current | $ 55.0 | $ 23.3 |
Supplier Finance Program, Obligation, Current, Statement of Financial Position [Extensible Enumeration] | Accounts payable | Accounts payable |
Supplier finance program, obligation, settlement | $ 48.9 | $ 23.3 |
Maximum | ||
Supplier Finance Program [Line Items] | ||
Limit on payment obligations | $ 85.0 |
Nature of Operations and Summary of Significant Accounting Policies (Transfer of Financial Assets) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Accounting Policies [Abstract] | |||
Accounts receivable derecognized | $ 128.7 | $ 118.5 | $ 140.7 |
Loss on sale of accounts receivable | $ 0.0 | $ 0.0 | $ 0.0 |
Nature of Operations and Summary of Significant Accounting Policies (Assets Held for Sale) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2022 |
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Accounting Policies [Abstract] | ||||
Accumulated other comprehensive loss | $ 2,100 | $ 0 | $ 2,085 | $ 0 |
Nature of Operations and Summary of Significant Accounting Policies (Property, Plant and Equipment, Net) (Details) |
Dec. 31, 2023 |
---|---|
Buildings | |
Property, Plant and Equipment [Line Items] | |
Useful life (in years) | 40 years |
Machinery, Equipment, Furniture, and Fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life (in years) | 3 years |
Machinery, Equipment, Furniture, and Fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life (in years) | 7 years |
Nature of Operations and Summary of Significant Accounting Policies (Goodwill and Intangible Assets) (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Accounting Policies [Abstract] | |||
Goodwill and intangible asset impairment | $ 0 | $ 0 | $ 0 |
Nature of Operations and Summary of Significant Accounting Policies (Product Development Costs) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Accounting Policies [Abstract] | |||
Product development costs | $ 12.4 | $ 11.8 | $ 8.6 |
Intangible Assets (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Finite-Lived Intangible Assets, Net [Abstract] | |||
Gross Carrying Amount | $ 3,100 | $ 3,100 | |
Accumulated Amortization | (1,808) | (1,608) | |
Net Balance | 1,292 | 1,492 | |
Amortization of intangible assets | 200 | 200 | $ 200 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2024 | 200 | ||
2025 | 200 | ||
2026 | 200 | ||
2027 | 200 | ||
2028 | $ 200 | ||
Intangible assets, weighted average amortization period (in years) | 6 years 6 months | ||
Trademarks | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Gross Carrying Amount | $ 3,100 | 3,100 | |
Accumulated Amortization | (1,808) | (1,608) | |
Net Balance | $ 1,292 | $ 1,492 |
Current and Long-Term Financing (Debt Schedule) (Details) - USD ($) $ in Thousands |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Line of Credit Facility [Line Items] | ||
Total outstanding borrowings | $ 50,000 | $ 110,895 |
Total available borrowings, net of limitations, under revolving credit agreements | 148,097 | 149,227 |
Unused available borrowings | $ 98,097 | $ 38,332 |
Weighted average stated interest rate on total borrowings | 6.84% | 3.80% |
Weighted average effective interest rate on total borrowings (including interest rate swap agreements) | 4.25% | 3.49% |
Line of Credit | Revolving credit agreements | ||
Line of Credit Facility [Line Items] | ||
Total outstanding borrowings | $ 50,000 | $ 110,895 |
Derivative Financial Instruments (Narrative) (Details) - USD ($) $ in Millions |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Foreign currency exchange contracts | ||
Derivative [Line Items] | ||
Notional amount | $ 16.9 | $ 11.3 |
Fair value of foreign currency exchange contracts | (0.5) | 0.1 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | 25.0 | 0.0 |
Interest rate swap agreements receivable | $ 4.0 | $ 5.4 |
Derivative Financial Instruments (Interest Rate Derivatives) (Details) - USD ($) $ in Millions |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | $ 25.0 | $ 50.0 |
Average Fixed Rate | 1.60% | 0.90% |
Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | $ 25.0 | $ 0.0 |
Average Fixed Rate | 1.40% | 0.00% |
Delayed start interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | $ 25.0 | $ 50.0 |
Average Fixed Rate | 1.80% | 1.60% |
Derivative Financial Instruments (Fair Value of Derivative Instruments as Recorded in Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Asset Derivatives | ||
Total derivatives, asset derivatives | $ 4,012 | $ 5,550 |
Liability Derivatives | ||
Total derivatives, liability derivatives | 538 | 101 |
Prepaid expenses and other current assets | ||
Asset Derivatives | ||
Interest rate swap agreements, asset derivatives | 511 | 837 |
Foreign currency exchange contracts, asset derivatives | 0 | 174 |
Other current liabilities | ||
Liability Derivatives | ||
Interest rate swap agreements, liability derivatives | 0 | 0 |
Foreign currency exchange contracts, liability derivatives | 538 | 101 |
Other non-current assets | ||
Asset Derivatives | ||
Interest rate swap agreements, asset derivatives | 3,501 | 4,539 |
Other long-term liabilities | ||
Liability Derivatives | ||
Interest rate swap agreements, liability derivatives | $ 0 | $ 0 |
Leasing Arrangements (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2023 |
Dec. 31, 2023 |
|
Lessee, Lease, Description [Line Items] | ||
Impairment charges | $ 0.5 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease terms (in years) | 1 month | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease terms (in years) | 11 years | |
Extend lease terms (in years) | 5 years |
Leasing Arrangements (Lease Cost) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Leases [Abstract] | ||
Operating lease cost | $ 8,380 | $ 7,841 |
Finance lease cost | ||
Amortization of leased assets | 29 | 0 |
Interest on lease liabilities | 14 | 0 |
Finance lease cost | 43 | 0 |
Variable lease cost | 354,024 | 357,569 |
Short-term lease cost | 280 | 834 |
Total lease cost | $ 362,727 | $ 366,244 |
Leasing Arrangements (Supplemental Cash Flow and Non-cash Information) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Lessee Disclosure [Abstract] | ||
Cash paid for amounts included in the measurement of lease liabilities – operating cash flows from leases | $ 8,429 | $ 7,750 |
Right-of-use assets obtained in exchange for lease obligations of operating leases – non-cash activity | 981 | 5,430 |
Right-of-use assets obtained in exchange for lease obligations of finance leases – non-cash activity | $ 377 | $ 0 |
Leasing Arrangements (Undiscounted Future Lease Payments for Operating Leases) (Details) $ in Thousands |
Dec. 31, 2023
USD ($)
|
---|---|
Undiscounted Future Lease Payments | |
2024 | $ 8,398 |
2025 | 6,609 |
2026 | 6,062 |
2027 | 5,768 |
2028 | 5,566 |
Thereafter | 27,780 |
Total lease payments | 60,183 |
Less: impact of discounting | 12,091 |
Present value of lease payments | $ 48,092 |
Leasing Arrangements (Weighted Average Remaining Lease Term and Discount Rate) (Details) |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Lessee Disclosure [Abstract] | ||
Weighted average remaining lease term - operating leases | 9 years | 9 years 8 months 12 days |
Weighted average remaining lease term - finance leases | 4 years 6 months | 0 years |
Weighted average discount rate - operating leases | 5.00% | 4.80% |
Weighted average discount rate - finance leases | 7.60% | 0.00% |
Stockholders' Equity and Earnings Per Share (Narrative) (Details) $ in Millions |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2023
USD ($)
series
vote
shares
|
Dec. 31, 2022
USD ($)
shares
|
Dec. 31, 2021
shares
|
Nov. 30, 2023
shares
|
Feb. 28, 2022
shares
|
|
Class of Stock [Line Items] | |||||
Number of series of preferred stock | series | 1 | ||||
Stock repurchased (in shares) | shares | 250,772 | 261,049 | 0 | ||
Aggregate purchase price of stocks repurchased | $ | $ 3.1 | $ 3.0 | |||
Class A Common Stock | |||||
Class of Stock [Line Items] | |||||
Number of votes per share | vote | 1 | ||||
Approved repurchase amount (up to) | shares | 25,000,000 | 25,000,000 | |||
Class B Common Stock | |||||
Class of Stock [Line Items] | |||||
Number of votes per share | vote | 10 |
Stockholders' Equity and Earnings Per Share (Weighted Average Number of Shares Outstanding Reconciliation) (Details) - $ / shares shares in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Equity [Abstract] | |||
Basic weighted average shares outstanding (in shares) | 14,036 | 13,970 | 13,880 |
Dilutive effect of share-based compensation awards (in shares) | 24 | 26 | 50 |
Diluted weighted average shares outstanding (in shares) | 14,060 | 13,996 | 13,930 |
Basic earnings (loss) per share (in dollars per share) | $ 1.80 | $ 1.81 | $ 1.54 |
Diluted earnings (loss) per share (in dollars per share) | $ 1.80 | $ 1.81 | $ 1.53 |
Revenue (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 625,625 | $ 640,949 | $ 658,394 |
Consumer products | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 568,006 | 573,898 | 612,795 |
Commercial products | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 52,327 | 61,455 | 40,978 |
Licensing | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 5,292 | $ 5,596 | $ 4,621 |
Contingencies (Details) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2023
USD ($)
numberOfSite
|
Dec. 31, 2022
USD ($)
|
|
Loss Contingencies [Line Items] | ||
Accrual for environmental investigation and remediation activities | $ 3.4 | $ 3.2 |
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration] | Other current liabilities, Other long-term liabilities | Other current liabilities, Other long-term liabilities |
Portion of loss contingency proceeds representing restricted cash | $ 1.0 | |
Asset associated with reimbursement of costs | $ 1.3 | |
Loss contingency, number of sites associated with cost reimbursement | numberOfSite | 2 | |
Minimum | ||
Loss Contingencies [Line Items] | ||
Estimate of additional expenses | $ 0.0 | |
Maximum | ||
Loss Contingencies [Line Items] | ||
Estimate of additional expenses | $ 1.5 |
Income Taxes (Income Before Income Taxes and Provision for Income Taxes) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Income (loss) before income taxes | |||
Domestic | $ 24,008 | $ 34,400 | $ 27,187 |
Foreign | 7,688 | (1,971) | 1,770 |
Income (loss) before income taxes | 31,696 | 32,429 | 28,957 |
Current income tax expense (benefit): | |||
Federal | 3,412 | 6,297 | 2,520 |
State | 1,452 | 2,463 | 1,015 |
Foreign | 2,496 | (1,970) | 2,006 |
Total current | 7,360 | 6,790 | 5,541 |
Deferred income tax expense (benefit): | |||
Federal | 910 | (669) | 1,815 |
State | (9) | (153) | 556 |
Foreign | (1,807) | 1,194 | (261) |
Total deferred | (906) | 372 | 2,110 |
Income tax provision | $ 6,454 | $ 7,162 | $ 7,651 |
Income Taxes (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Income Tax Contingency [Line Items] | |||
Income tax refunds | $ 0.1 | $ 0.5 | $ 0.0 |
Cumulative unremitted earnings of foreign subsidiaries | $ 19.3 | ||
Undistributed earnings of foreign subsidiaries, payment period | 8 years | ||
Unrecognized tax benefits, permanent items | $ 1.4 | 0.2 | 3.8 |
Unrecognized tax benefits, income tax penalties and interest expense | 0.0 | 1.5 | (1.1) |
Income tax examination, penalties and interest accrued | 0.0 | 1.9 | |
Federal | |||
Income Tax Contingency [Line Items] | |||
Income tax payments | 3.1 | 5.3 | 6.4 |
Foreign and State | |||
Income Tax Contingency [Line Items] | |||
Income tax payments | $ 3.2 | $ 4.0 | $ 2.6 |
Income Taxes (Summary of the Total Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Deferred tax assets | ||
Tax carryforwards | $ 2,206 | $ 2,195 |
Lease liabilities | 2,208 | 2,219 |
Inventory | 1,420 | 1,216 |
Accrued expenses and reserves | 3,131 | 1,696 |
Other employee benefits | 316 | 2,835 |
Other | 302 | 1,155 |
Total deferred tax assets | 9,583 | 11,316 |
Less: Valuation allowances | (2,780) | (2,153) |
Deferred tax assets, net of valuation allowance | 6,803 | 9,163 |
Deferred tax liabilities | ||
Right-of-use lease assets | 70 | 69 |
Accrued pension benefits | 3,349 | 3,130 |
Depreciation and amortization | 803 | 2,847 |
Total deferred tax liabilities | 4,222 | 6,046 |
Net deferred tax asset | $ 2,581 | $ 3,117 |
Income Taxes (Summary of Operating Loss Carryforwards and Tax Credit Carryforwards) (Details) - USD ($) $ in Thousands |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Operating Loss Carryforwards [Line Items] | ||
Net deferred tax asset | $ 2,206 | $ 2,195 |
Non-U.S. | ||
Operating Loss Carryforwards [Line Items] | ||
Net deferred tax asset | 2,780 | 1,923 |
Valuation allowance | $ 2,780 | $ 1,923 |
Income Taxes (Gross Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Balance at beginning of period | $ 256 | $ 3,855 | $ 4,114 |
Additions (reductions) based on tax positions related to prior years | 769 | (3,476) | (110) |
Additions based on tax positions related to the current year | 493 | 71 | 40 |
Reductions for lapse of statute of limitations | (71) | (194) | 0 |
Reductions due to settlements with taxing authorities | 0 | 0 | (189) |
Balance at end of period | $ 1,447 | $ 256 | $ 3,855 |
Retirement Benefit Plans (Narrative) (Details) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023
USD ($)
plan
|
Dec. 31, 2022
USD ($)
|
Dec. 31, 2021
USD ($)
|
|
Defined Benefit Plan Disclosure [Line Items] | |||
Number of defined benefit pension plans | plan | 2 | ||
Defined contribution plan, total costs | $ 5,000 | $ 5,200 | $ 5,000 |
U.S. Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate for net periodic benefit (income) expense | 5.34% | 3.22% | 1.87% |
Discount rate for pension benefit obligation | 5.01% | 5.34% | 2.46% |
Expected long-term rate of return on assets used for the net periodic benefit (income) expense (as a percent) | 4.00% | 6.44% | 7.25% |
Pre-tax pension settlement loss | $ 0 | $ 347 | $ 0 |
Non-U.S. Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate for net periodic benefit (income) expense | 5.15% | 2.90% | 2.38% |
Discount rate for pension benefit obligation | 4.63% | 5.15% | 2.90% |
Expected long-term rate of return on assets used for the net periodic benefit (income) expense (as a percent) | 6.00% | 4.75% | 4.75% |
Retirement Benefit Plans (Assumptions Used in Accounting for Defined Benefit Plans) (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
U.S. Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate for pension benefit obligation | 5.01% | 5.34% | 2.46% |
Discount rate for net periodic benefit (income) expense | 5.34% | 3.22% | 1.87% |
Expected long-term rate of return on assets for net periodic pension (income) expense | 4.00% | 6.44% | 7.25% |
Non-U.S. Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate for pension benefit obligation | 4.63% | 5.15% | 2.90% |
Discount rate for net periodic benefit (income) expense | 5.15% | 2.90% | 2.38% |
Expected long-term rate of return on assets for net periodic pension (income) expense | 6.00% | 4.75% | 4.75% |
Retirement Benefit Plans (Net Periodic Pension Expense) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
U.S. Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | $ 674 | $ 478 | $ 338 |
Expected return on plan assets | (1,082) | (1,820) | (2,033) |
Amortization of actuarial loss (gain) | 358 | 520 | 591 |
Settlement loss | 0 | 347 | 0 |
Net periodic pension (income) expense | (50) | (475) | (1,104) |
Non-U.S. Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | 162 | 127 | 118 |
Expected return on plan assets | (258) | (261) | (260) |
Amortization of actuarial loss (gain) | 118 | (16) | 63 |
Net periodic pension (income) expense | $ 22 | $ (150) | $ (79) |
Retirement Benefit Plans (Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
U.S. Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current year actuarial loss (gain) | $ (33) | $ 5,558 | $ (2,228) |
Settlement loss | 0 | (347) | 0 |
Amortization of actuarial (loss) gain | (358) | (520) | (591) |
Total recognized in other comprehensive loss (income) | (391) | 4,691 | (2,819) |
Non-U.S. Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current year actuarial loss (gain) | (108) | (114) | (742) |
Amortization of actuarial (loss) gain | (118) | 16 | (63) |
Total recognized in other comprehensive loss (income) | $ (226) | $ (98) | $ (805) |
Retirement Benefit Plans (Expected Benefit Payments) (Details) $ in Thousands |
Dec. 31, 2023
USD ($)
|
---|---|
U.S. Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | $ 13,241 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
2028 | 0 |
2029-2033 | 0 |
Total | 13,241 |
Non-U.S. Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | 237 |
2025 | 244 |
2026 | 252 |
2027 | 263 |
2028 | 262 |
2029-2033 | 1,235 |
Total | $ 2,493 |
Data by Geographic Region (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from unaffiliated customers | $ 625,625 | $ 640,949 | $ 658,394 |
Property, plant and equipment, net | 27,401 | 27,830 | 30,485 |
U.S. | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from unaffiliated customers | 493,711 | 504,449 | 524,093 |
Property, plant and equipment, net | 23,068 | 24,207 | 26,604 |
Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from unaffiliated customers | 131,914 | 136,500 | 134,301 |
Property, plant and equipment, net | $ 4,333 | $ 3,623 | $ 3,881 |
Other | Property, Plant and Equipment | Geographic Concentration Risk | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk (or more) (as a percent) | 10.00% |
Subsequent Events (Details) $ in Thousands, € in Millions |
Feb. 02, 2024
USD ($)
|
Feb. 02, 2024
EUR (€)
|
Dec. 31, 2023
USD ($)
|
Dec. 31, 2023
EUR (€)
|
Dec. 31, 2022
USD ($)
|
---|---|---|---|---|---|
Debt Instrument [Line Items] | |||||
Total outstanding borrowings | $ 50,000 | $ 110,895 | |||
Secured Debt | HealthBeacon Facility Agreement | |||||
Debt Instrument [Line Items] | |||||
Total outstanding borrowings | $ 1,600 | € 1.5 | |||
Subsequent Event | HealthBeacon PLC | |||||
Debt Instrument [Line Items] | |||||
Business combination, consideration transferred | $ 7,500 | € 6.9 |
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Allowance for doubtful accounts | |||
Valuation allowances and reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 957 | $ 1,036 | $ 1,144 |
Charged to Costs and Expenses | 79 | (79) | (179) |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 0 | 0 | (71) |
Balance at End of Period | 1,036 | 957 | 1,036 |
Deferred tax valuation allowances | |||
Valuation allowances and reserves [Roll Forward] | |||
Balance at Beginning of Period | 2,153 | 2,095 | 2,102 |
Charged to Costs and Expenses | 6 | 568 | 170 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | (621) | 510 | 177 |
Balance at End of Period | $ 2,780 | $ 2,153 | $ 2,095 |
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