Business Segments

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Business Segments

Business Segments

NACCO is a holding company with the following reportable segments: NACoal, HBB and KC. See Note 1 for a discussion of the Company's industries and product lines. NACCO's non-operating segment, NACCO and Other, includes the accounts of the parent company and Bellaire.

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

The majority of NACoal's revenues is generated from its consolidated mining operations and dragline mining services. MLMC's customer, Choctaw Generation Limited Partnership until February 28, 2013 and KMRC RH, LLC subsequent to February 28, 2013, accounted for approximately 57%, 39% and 42% of NACoal's revenues for the years ended December 31, 2015, 2014 and 2013, respectively. Centennial's largest customer, Alabama Coal Cooperative, accounted for approximately 16%, 27% and 27% of NACoal's revenues for the years ended December 31, 2015, 2014 and 2013, respectively. Wal-Mart accounted for approximately 32%, 33% and 31% of HBB’s revenues in 2015, 2014 and 2013, respectively. HBB’s five largest customers accounted for approximately 52%, 56% and 55% of HBB’s revenues for the years ended December 31, 2015, 2014 and 2013, respectively. The loss of or significant reduction in sales to any key customer could result in significant decreases in NACoal's and HBB’s revenue and profitability and an inability to sustain or grow its business.

The management fees charged to operating subsidiaries represent an allocation of corporate overhead of the parent company. Management fees are allocated among all subsidiaries based upon the relative size and complexity of each subsidiary. The Company believes the allocation method is consistently applied and reasonable. Management fees included in the Selling, general and administrative expenses of the subsidiaries were $9.3 million, $8.5 million and $6.8 million for 2015, 2014 and 2013, respectively.

	2015			2014			2013
Revenues from external customers
NACoal	$	147,998		$	172,702		$	193,651
HBB	620,977			559,683			547,790
KC	150,988			168,545			196,033
Eliminations	(4,103		)	(4,148		)	(4,808		)
Total	$	915,860		$	896,782		$	932,666
Gross profit (loss)
NACoal	$	(10,816	)	$	(3,139	)	$	25,230
HBB	123,139			117,570			115,506
KC	67,000			71,621			80,972
NACCO and Other	(416		)	(461		)	(469		)
Eliminations	589			(519		)	52
Total	$	179,496		$	185,072		$	221,291
Selling, general and administrative expenses, including Amortization of intangible assets
NACoal	$	38,867		$	36,147		$	30,786
HBB	88,336			81,798			74,570
KC	66,864			79,056			91,878
NACCO and Other	3,845			4,996			5,765
Total	$	197,912		$	201,997		$	202,999

	2015			2014			2013
Operating profit (loss)
NACoal	$	521		$	(89,030	)	$	37,461
HBB	34,801			35,772			40,960
KC	165			(7,075		)	(10,903		)
NACCO and Other	(4,248		)	(5,456		)	(6,233		)
Eliminations	588			(520		)	51
Total	$	31,827		$	(66,309	)	$	61,336
Interest expense
NACoal	$	4,961		$	6,034		$	3,105
HBB	1,831			1,137			1,279
KC	131			367			390
NACCO and Other	1			28			1
Total	$	6,924		$	7,566		$	4,775
Interest income
NACoal	$	(416	)	$	(823	)	$	(19	)
HBB	(56		)	(4		)	(1		)
KC	—			—			—
NACCO and Other	(2		)	(4		)	(205		)
Total	$	(474	)	$	(831	)	$	(225	)
Other (income) expense, including asset retirement obligations
NACoal	$	(1,683	)	$	44		$	(1,013	)
HBB	1,526			1,136			462
KC	86			65			70
NACCO and Other	649			2,284			1,547
Total	$	578		$	3,529		$	1,066
Income tax provision (benefit)
NACoal	$	(7,960	)	$	(43,308	)	$	3,462
HBB	11,751			10,359			14,127
KC	368			(2,904		)	(4,479		)
NACCO and Other	(1,550		)	(2,420		)	(1,858		)
Eliminations	206			(182		)	18
Total	$	2,815		$	(38,455	)	$	11,270
Net Income (loss)
NACoal	$	5,619		$	(50,977	)	$	31,926
HBB	19,749			23,144			25,093
KC	(420		)	(4,603		)	(6,884		)
NACCO and Other	(3,346		)	(5,344		)	(5,718		)
Eliminations	382			(338		)	33
Total	$	21,984		$	(38,118	)	$	44,450

	2015			2014			2013
Total assets
NACoal	$	303,138		$	389,964		$	419,786
HBB	253,874			270,265			228,891
KC	56,177			56,260			70,014
NACCO and Other	64,069			96,918			131,085
Eliminations	(21,850		)	(42,887		)	(39,820		)
Total	$	655,408		$	770,520		$	809,956
Depreciation, depletion and amortization
NACoal	$	17,067		$	22,003		$	16,601
HBB	4,750			2,693			3,475
KC	1,558			3,048			4,162
NACCO and Other	305			326			334
Total	$	23,680		$	28,070		$	24,572
Capital expenditures, excluding acquisitions of business
NACoal	$	4,116		$	51,228		$	52,748
HBB	4,365			4,516			2,313
KC	1,806			1,193			2,150
NACCO and Other	328			563			238
Total	$	10,615		$	57,500		$	57,449

Data By Geographic Region

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

	United States		Other		Consolidated
2015
Revenues from unaffiliated customers, based on the customers’ location	$	795,071	$	120,789	$	915,860
Long-lived assets	$	151,618	$	5,564	$	157,182
2014
Revenues from unaffiliated customers, based on the customers’ location	$	779,890	$	116,892	$	896,782
Long-lived assets	$	182,116	$	5,780	$	187,896
2013
Revenues from unaffiliated customers, based on the customers’ location	$	813,609	$	119,057	$	932,666
Long-lived assets	$	246,902	$	5,486	$	252,388