Business Segments

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Business Segments

Business Segments

NACCO is an operating 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 are generated from its consolidated mining operations and value-added mining services. MLMC's customer, KMRC RH, LLC until April 30, 2016 and Choctaw Generation Limited Partnership, LLLP subsequent to April 30, 2016, accounted for approximately 69%, 57% and 39% of NACoal's revenues for the years ended December 31, 2016, 2015 and 2014, respectively. NAM's largest customer, Cemex, accounted for approximately 16% of NACoal's revenues for the year ended December 31, 2016. Centennial's largest customer was the Alabama Coal Cooperative and accounted for approximately 16% and 27% of NACoal's revenues for the years ended December 31, 2015 and 2014, respectively. Wal-Mart accounted for approximately 32%, 32% and 33% of HBB’s revenues in 2016, 2015 and 2014, respectively. Amazon accounted for approximately 10% of HBB's revenues in 2016. HBB’s five largest customers accounted for approximately 54%, 52% and 56% of HBB’s revenues for the years ended December 31, 2016, 2015 and 2014, 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 $11.5 million, $9.3 million and $8.5 million for 2016, 2015 and 2014, respectively.

	2016			2015			2014
Revenues from external customers
NACoal	$	111,081		$	147,998		$	172,702
HBB	605,170			620,977			559,683
KC	144,351			150,988			168,545
Eliminations	(4,164		)	(4,103		)	(4,148		)
Total	$	856,438		$	915,860		$	896,782
Gross profit (loss)
NACoal	$	12,341		$	(10,816	)	$	(3,139	)
HBB	128,414			123,139			117,570
KC	65,391			67,000			71,621
NACCO and Other	(259		)	(416		)	(461		)
Eliminations	(34		)	589			(519		)
Total	$	205,853		$	179,496		$	185,072
Selling, general and administrative expenses, including Amortization of intangible assets
NACoal	$	44,347		$	38,867		$	36,147
HBB	85,406			88,336			81,798
KC	65,014			66,864			79,056
NACCO and Other	7,020			3,845			4,996
Total	$	201,787		$	197,912		$	201,997

	2016			2015			2014
Operating profit (loss)
NACoal	$	5,619		$	521		$	(89,030	)
HBB	43,033			34,801			35,772
KC	376			165			(7,075		)
NACCO and Other	(7,278		)	(4,248		)	(5,456		)
Eliminations	(35		)	588			(520		)
Total	$	41,715		$	31,827		$	(66,309	)
Interest expense
NACoal	$	4,317		$	4,961		$	6,034
HBB	1,165			1,831			1,137
KC	209			131			367
NACCO and Other	1			1			28
Total	$	5,692		$	6,924		$	7,566
Interest income
NACoal	$	(177	)	$	(416	)	$	(823	)
HBB	—			(56		)	(4		)
NACCO and Other	(19		)	(2		)	(4		)
Total	$	(196	)	$	(474	)	$	(831	)
Other (income) expense, including asset retirement obligations
NACoal	$	1,447		$	(1,683	)	$	44
HBB	770			1,526			1,136
KC	67			86			65
NACCO and Other	(535		)	649			2,284
Total	$	1,749		$	578		$	3,529
Income tax provision (benefit)
NACoal	$	(8,212	)	$	(7,960	)	$	(43,308	)
HBB	14,541			11,751			10,359
KC	455			368			(2,904		)
NACCO and Other	(1,909		)	(1,550		)	(2,420		)
Eliminations	(12		)	206			(182		)
Total	$	4,863		$	2,815		$	(38,455	)
Net Income (loss)
NACoal	$	8,244		$	5,619		$	(50,977	)
HBB	26,557			19,749			23,144
KC	(355		)	(420		)	(4,603		)
NACCO and Other	(4,816		)	(3,346		)	(5,344		)
Eliminations	(23		)	382			(338		)
Total	$	29,607		$	21,984		$	(38,118	)

	2016			2015			2014
Total assets
NACoal	$	287,011		$	303,138		$	389,964
HBB	257,167			253,874			270,265
KC	54,004			56,177			56,260
NACCO and Other	109,022			64,069			96,918
Eliminations	(39,183		)	(21,850		)	(42,887		)
Total	$	668,021		$	655,408		$	770,520
Depreciation, depletion and amortization
NACoal	$	12,682		$	17,067		$	22,003
HBB	4,681			4,750			2,693
KC	1,545			1,558			3,048
NACCO and Other	368			305			326
Total	$	19,276		$	23,680		$	28,070
Capital expenditures, excluding acquisitions of business
NACoal	$	10,109		$	4,116		$	51,228
HBB	4,814			4,365			4,516
KC	1,188			1,806			1,193
NACCO and Other	56			328			563
Total	$	16,167		$	10,615		$	57,500

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
2016
Revenues from unaffiliated customers, based on the customers’ location	$	737,448	$	118,990	$	856,438
Long-lived assets	$	157,022	$	5,082	$	162,104
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