Stockholders' Equity and Earnings Per Share

12 Months Ended

Dec. 31, 2016

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, 2016 was 25,000,000 shares and 6,756,176 shares, respectively. Treasury shares of Class A common stock totaling 3,007,334 and 2,950,796 at December 31, 2016 and 2015, respectively, have been deducted from shares outstanding.

Stock Repurchase Programs: On May 10, 2016, the Company's Board of Directors approved a stock repurchase program (the "2016 Stock Repurchase Program"), which provides for the purchase of up to $50 million of the Company's Class A Common Stock outstanding through December 31, 2017. The timing and amount of any repurchases under the 2016 Stock Repurchase Program are determined at the discretion of the Company's management based on a number of factors, including the availability of capital, other capital allocation alternatives and market conditions for the Company's Class A Common Stock. The 2016 Stock Repurchase Program does not require the Company to acquire any specific number of shares. It may be modified, suspended, extended or terminated by the Company at any time without prior notice and may be executed through open market purchases, privately negotiated transactions or otherwise. All or part of the repurchases under the 2016 Stock Repurchase Program may be implemented under a Rule 10b5-1 trading plan, which would allow repurchases under pre-set terms at times when the Company might otherwise be prevented from doing so. During 2016, the Company repurchased 109,261 shares of Class A Common Stock for an aggregate purchase price of $6.0 million at a weighted average purchase price of $55.32 per share. The Company’s previous $60 million stock repurchase program, under which the Company purchased a total of 1,122,866 shares of Class A Common Stock, was completed in October 2015.

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, 2016, 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, 2016 and no options remain outstanding at the end of either of the years ended December 31, 2016 or 2015. 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	2016			2015			2014			Location of loss (gain) reclassified from AOCI into income
	(In thousands)
Loss (gain) on cash flow hedging
Foreign exchange contracts	$	(11	)	$	(860	)	$	(108	)	Cost of sales
Interest rate contracts	1,187			1,460			1,495			Interest expense
	1,176			600			1,387			Total before income tax expense
Tax effect	(419		)	(191		)	(489		)	Income tax benefit
	$	757		$	409		$	898		Net of tax
Pension and postretirement plan
Actuarial loss	$	1,145		$	1,333		$	1,015		(a)
Prior-service credit	(49		)	(57		)	(75		)	(a)
	1,096			1,276			940			Total before income tax expense
Tax effect	(408		)	(420		)	(313		)	Income tax benefit
	$	688		$	856		$	627		Net of tax
Total reclassifications for the period	$	1,445		$	1,265		$	1,525		Net of tax

(a) These AOCI components are included in the computation of pension and postretirement expense. See Note 15 for a discussion of the Company's pension and postretirement 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:

	2016		2015		2014
Basic weighted average shares outstanding	6,818		7,001		7,590
Dilutive effect of restricted stock awards	36		21		N/A
Diluted weighted average shares outstanding	6,854		7,022		7,590
Basic earnings (loss) per share	$	4.34	$	3.14	$	(5.02	)
Diluted earnings (loss) per share	$	4.32	$	3.13	$	(5.02	)