Stockholders' Equity and Earnings Per Share

12 Months Ended

Dec. 31, 2015

Equity [Abstract]

Stockholders' Equity and Earnings Per Share

Stockholders' Equity and Earnings Per Share

NACCO Industries, Inc. Class A common stock is traded on the New York Stock Exchange under the ticker symbol “NC.” Because of transfer restrictions on Class B common stock, no trading market has developed, or is expected to develop, for the Company's Class B common stock. The Class B common stock is convertible into Class A common stock on a one-for-one basis at any time at the request of the holder. The Company's Class A common stock and Class B common stock have the same cash dividend rights per share. 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 Class A common stock has one vote per share and the Class B common stock has ten votes per share. The total number of authorized shares of Class A common stock and Class B common stock at December 31, 2015 was 25,000,000 shares and 6,756,176 shares, respectively. Treasury shares of Class A common stock totaling 2,950,796 and 2,548,336 at December 31, 2015 and 2014, respectively, have been deducted from shares outstanding.

Stock Repurchase Programs: On November 12, 2013, the Company's Board of Directors approved a stock repurchase program (the "2013 Stock Repurchase Program") providing for the purchase of up to $60 million of the Company's outstanding Class A Common Stock through December 31, 2015. As of October 6, 2015, the Company completed the 2013 Stock Repurchase Program under which the Company purchased a total of 1,122,866 shares of Class A Common Stock for an aggregate purchase price of $60.0 million. During 2015, the average purchase price per share and number of shares repurchased under 2013 Program were $54.22 per share and 442,853 shares, respectively. Under a previous stock repurchase program, which was in place from November 2011 to November 2013, the Company repurchased an additional 624,000 shares of Class A common stock for an aggregate purchase price of $35.6 million.

Stock Options: The 1975 and 1981 stock option plans, as amended, provide for the granting to officers and other key employees of options to purchase Class A common stock and Class B common stock of the Company at a price not less than the market value of such stock at the date of grant. Options become exercisable over a four-year period and expire ten years from the date of the grant. During the three-year period ending December 31, 2015, there were 80,701 shares of Class A common stock and 80,100 shares of Class B common stock available for grant. However, no options were granted during the three-year period ended December 31, 2015 and no options remain outstanding at the end of any of the years ended December 31, 2015 or 2014. At present, the Company does not intend to issue additional stock options.

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

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

	Amount reclassified from AOCI
Details about AOCI components	2015			2014			2013			Location of loss (gain) reclassified from AOCI into income
	(In thousands)
Loss (gain) on cash flow hedging
Foreign exchange contracts	$	(860	)	$	(108	)	$	(213	)	Cost of sales
Interest rate contracts	1,460			1,495			460			Interest expense
	600			1,387			247			Total before income tax expense
Tax effect	(191		)	(489		)	(95		)	Income tax expense (benefit)
	$	409		$	898		$	152		Net of tax
Pension and postretirement plan
Actuarial loss	$	1,333		$	1,015		$	1,995		(a)
Prior-service credit	(57		)	(75		)	(154		)	(a)
	1,276			940			1,841			Total before income tax expense
Tax effect	(420		)	(313		)	(740		)	Income tax expense (benefit)
	$	856		$	627		$	1,101		Net of tax
Total reclassifications for the period	$	1,265		$	1,525		$	1,253		Net of tax

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

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

	2015		2014			2013
Basic weighted average shares outstanding	7,001		7,590			8,105
Dilutive effect of restricted stock awards	21		N/A			19
Diluted weighted average shares outstanding	7,022		7,590			8,124
Basic earnings (loss) per share	$	3.14	$	(5.02	)	$	5.48
Diluted earnings (loss) per share	$	3.13	$	(5.02	)	$	5.47