HAMILTON BEACH BRANDS HOLDING CO, 10-Q filed on 11/7/2019
Quarterly Report
v3.19.3
Document and Entity Information - shares
9 Months Ended
Sep. 30, 2019
Nov. 01, 2019
Entity Information [Line Items]    
Entity Registrant Name HAMILTON BEACH BRANDS HOLDING COMPANY  
Entity Central Index Key 0001709164  
Current Fiscal Year End Date --12-31  
Entity Filer Category Accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company true  
Entity Ex Transition Period false  
Document Type 10-Q  
Document Period End Date Sep. 30, 2019  
Document Fiscal Year Focus 2019  
Document Fiscal Period Focus Q3  
Amendment Flag false  
Entity Current Reporting Status Yes  
Entity Shell Company false  
Shares Outstanding Class A    
Entity Information [Line Items]    
Shares Outstanding (in shares)   9,147,309
Shares Outstanding Class B    
Entity Information [Line Items]    
Shares Outstanding (in shares)   4,369,489
v3.19.3
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Sep. 30, 2018
Assets      
Cash and cash equivalents $ 1,866 $ 6,352 $ 2,139
Trade receivables, net 106,135 102,592 113,683
Inventory 181,847 144,691 183,831
Prepaid expenses and other current assets 22,445 24,514 20,766
Total current assets 312,293 278,149 320,419
Property, plant and equipment, net 22,653 22,630 23,309
Goodwill 6,253 6,253 6,253
Other intangible assets, net 3,483 4,519 4,864
Deferred income taxes 6,161 8,163 10,450
Deferred costs 8,925 8,012 10,306
Other non-current assets 1,561 2,701 3,322
Total assets 361,329 330,427 378,923
Liabilities and stockholders' equity      
Accounts payable 147,206 132,968 143,955
Accounts payable to NACCO Industries, Inc. 220 2,419 2,480
Revolving credit agreements 59,702 11,624 69,883
Accrued compensation 15,568 17,023 16,575
Accrued product returns 8,266 10,941 9,601
Accrued cooperative advertising 9,940 10,314 8,950
Other current liabilities 20,711 21,612 18,189
Total current liabilities 261,613 206,901 269,633
Revolving credit agreements 30,000 35,000 30,000
Other long-term liabilities 14,961 23,088 24,840
Total liabilities 306,574 264,989 324,473
Stockholders' equity      
Capital in excess of par value 54,143 51,714 51,366
Treasury stock, at cost; 129,687 shares as of June 30,2019, no shares as of December 31, 2018 and June 30, 2018, respectively (5,960) 0 0
Retained earnings 24,955 30,897 17,031
Accumulated other comprehensive loss (18,522) (17,310) (14,084)
Total stockholders' equity 54,755 65,438 54,450
Total liabilities and stockholders' equity 361,329 330,427 378,923
Class A Common Stock      
Stockholders' equity      
Common stock 95 93 92
Class B Common Stock      
Stockholders' equity      
Common stock $ 44 $ 44 $ 45
v3.19.3
Condensed Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Income Statement [Abstract]        
Revenue $ 169,778 $ 196,901 $ 463,582 $ 501,475
Cost of sales 129,194 146,550 352,618 372,478
Gross profit 40,584 50,351 110,964 128,997
Selling, general and administrative expenses 36,182 39,211 108,306 117,328
Amortization of intangible assets 345 345 1,036 1,036
Operating profit 4,057 10,795 1,622 10,633
Interest expense, net 864 1,001 2,514 2,422
Other expense (income), net 688 (426) 230 (253)
Income (loss) before income taxes 2,505 10,220 (1,122) 8,464
Income tax expense 2,108 2,176 1,186 1,712
Net income (loss) $ 397 $ 8,044 $ (2,308) $ 6,752
Basic and diluted loss per share (in usd per share) $ 0.03 $ 0.59 $ (0.17) $ 0.49
Basic weighted average shares outstanding (in shares) 13,579 13,704 13,726 13,694
Diluted weighted average shares outstanding (in shares) 13,595 13,713 13,726 13,697
v3.19.3
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Statement of Comprehensive Income [Abstract]        
Net income (loss) $ 397 $ 8,044 $ (2,308) $ 6,752
Foreign currency translation adjustment (312) 1,257 244 1,282
Loss on long-term intra-entity foreign currency transactions (509) (53) (373) (1,066)
Cash flow hedging activity (127) (301) (1,570) 452
Reclassification of hedging activities into earnings 122 (102) 268 105
Reclassification of pension adjustments into earnings 127 115 219 415
Total other comprehensive income (loss), net of tax (699) 916 (1,212) 1,188
Comprehensive income (loss) $ (302) $ 8,960 $ (3,520) $ 7,940
v3.19.3
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Operating activities    
Net income (loss) $ (2,308) $ 6,752
Adjustments to reconcile net income (loss) to net cash used for operating activities:    
Depreciation and amortization 3,279 3,775
Deferred income taxes 2,969 1,900
Share-based compensation expense 2,430 3,270
Impairment of property, plant and equipment 975 244
Other 142 (3,064)
Net changes in operating assets and liabilities:    
Affiliate payable (2,199) (6,709)
Trade receivables (4,897) (4,992)
Inventory (37,641) (49,087)
Other assets (231) (6,524)
Accounts payable 14,927 943
Other liabilities (12,577) 6,912
Net cash used for operating activities (35,131) (46,580)
Investing activities    
Expenditures for property, plant and equipment (3,305) (7,240)
Other 37 7
Net cash used for investing activities (3,268) (7,233)
Financing activities    
Net additions to revolving credit agreements 43,074 48,538
Cash dividends paid (3,634) (3,492)
Purchase of treasury stock (5,960) 0
Net cash provided by financing activities 33,480 45,046
Effect of exchange rate changes on cash 433 0
Cash and cash equivalents    
Decrease for the period (4,486) (8,767)
Balance at the beginning of the period 6,352 10,906
Balance at the end of the period $ 1,866 $ 2,139
v3.19.3
Condensed Consolidated Statements of Changes in Equity - USD ($)
$ in Thousands
Total
Capital in excess of par value
Treasury stock
Retained earnings
Accumulated other comprehensive income (loss)
Class A Common Stock
Common Stock
Class B Common Stock
Common Stock
Balance, beginning of period at Dec. 31, 2017 $ 46,408 $ 47,773   $ 12,603 $ (14,104) $ 88 $ 48
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income (loss) (418)     (418)      
Issuance of common stock, net of conversions 324 323       4 (3)
Share-based compensation expense 955 955          
Cash dividends on Class A Common and Class B Common (1,162)     (1,162)      
Other comprehensive loss 1,206       1,206    
Reclassification adjustment to net income 324       324    
Balance, end of period at Mar. 31, 2018 47,637 49,051   12,191 (13,742) 92 45
Balance, beginning of period at Dec. 31, 2017 46,408 47,773   12,603 (14,104) 88 48
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income (loss) 6,752            
Balance, end of period at Sep. 30, 2018 54,450 51,366   17,031 (14,084) 92 45
Balance, beginning of period at Mar. 31, 2018 47,637 49,051   12,191 (13,742) 92 45
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income (loss) (874)     (874)      
Issuance of common stock, net of conversions 198 198          
Share-based compensation expense 1,472 1,472          
Cash dividends on Class A Common and Class B Common (1,165)     (1,165)      
Other comprehensive loss (1,441)       (1,441)    
Reclassification adjustment to net income 183       183    
Balance, end of period at Jun. 30, 2018 46,010 50,721   10,152 (15,000) 92 45
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income (loss) 8,044     8,044      
Issuance of common stock, net of conversions 246 246          
Share-based compensation expense 399 399          
Cash dividends on Class A Common and Class B Common (1,165)     (1,165)      
Other comprehensive loss 903       903    
Reclassification adjustment to net income 13       13    
Balance, end of period at Sep. 30, 2018 54,450 51,366   17,031 (14,084) 92 45
Balance, beginning of period at Dec. 31, 2018 65,438 51,714 $ 0 30,897 (17,310) 93 44
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income (loss) (1,761)     (1,761)      
Issuance of common stock, net of conversions 1 (1)       2  
Share-based compensation expense 807 807          
Cash dividends on Class A Common and Class B Common (1,177)     (1,177)      
Other comprehensive loss (221)       (221)    
Reclassification adjustment to net income (8)       (8)    
Balance, end of period at Mar. 31, 2019 63,079 52,520 0 27,959 (17,539) 95 44
Balance, beginning of period at Dec. 31, 2018 65,438 51,714 0 30,897 (17,310) 93 44
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income (loss) (2,308)            
Purchase of treasury stock (6,000)            
Balance, end of period at Sep. 30, 2019 54,755 54,143 (5,960) 24,955 (18,522) 95 44
Balance, beginning of period at Mar. 31, 2019 63,079 52,520 0 27,959 (17,539) 95 44
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income (loss) (944)     (944)      
Share-based compensation expense 822 822          
Cash dividends on Class A Common and Class B Common (1,242)     (1,242)      
Other comprehensive loss (530)       (530)    
Reclassification adjustment to net income 246       246    
Purchase of treasury stock (2,334)   (2,334)        
Balance, end of period at Jun. 30, 2019 59,097 53,342 (2,334) 25,773 (17,823) 95 44
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income (loss) 397     397 0    
Share-based compensation expense 801 801     0    
Cash dividends on Class A Common and Class B Common (1,215)     (1,215) 0    
Other comprehensive loss (948)       (948)    
Reclassification adjustment to net income 249       249    
Purchase of treasury stock (3,626)   (3,626)        
Balance, end of period at Sep. 30, 2019 $ 54,755 $ 54,143 $ (5,960) $ 24,955 $ (18,522) $ 95 $ 44
v3.19.3
Condensed Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares
3 Months Ended
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Statement of Stockholders' Equity [Abstract]            
Cash Dividends on Class A Common and Class B Common per share (in usd per share) $ 0.09 $ 0.09 $ 0.085 $ 0.085 $ 0.085 $ 0.085
v3.19.3
Basis of Presentation
9 Months Ended
Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation
Basis of Presentation

The unaudited interim condensed consolidated financial statements of Hamilton Beach Brands Holding Company and its subsidiaries ("Hamilton Beach Holding” or the “Company”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments of a normal recurring nature considered necessary for a fair presentation have been included. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2018.

The Company operates through its subsidiaries, Hamilton Beach Brands, Inc. ("HBB") and The Kitchen Collection, LLC ("KC"). HBB is a leading designer, marketer and distributor of branded, small electric household and specialty housewares appliances, as well as commercial products for restaurants, bars and hotels. KC is a national specialty retailer of kitchenware primarily in outlet malls throughout the United States ("U.S."). 

Operating results for the three and nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the remainder of the year due to the highly seasonal nature of our primary markets. A majority of revenue and operating profit occurs in the second half of the calendar year when sales of our products to retailers and consumers increase significantly for the fall holiday-selling season.

Prior period interest income amounts have been reclassified from other expense (income), net to interest expense, net and prior period non-trade customer receivable amounts have been reclassified from trade receivables, net to prepaid expenses and other current assets to conform to the current period presentation.

The following new accounting policy is reflected in these quarterly financial statements as a result of the share repurchases made during the first nine months of 2019:

Treasury Stock

The Company records the aggregate purchase price of treasury stock at cost and includes treasury stock as a reduction to stockholders' equity.
v3.19.3
Recently Issued Accounting Standards
9 Months Ended
Sep. 30, 2019
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]  
Recently Issued Accounting Standards
Recently Issued Accounting Standards

Accounting Standards Adopted

In March 2017, the FASB issued ASU 2017-07, "Compensation - Retirement Benefits (Topic 715)," which amends the requirements in U.S. GAAP related to the income statement presentation of the components of net periodic benefit cost for an entity's sponsored defined benefit pension and other post-retirement plans. The Company adopted this guidance on January 1, 2019. The change in presentation of the components of net periodic pension cost was applied retrospectively which resulted in $0.2 million and $0.6 million of net periodic pension income for the three and nine months ended September 30, 2018, respectively, being reclassified from selling, general and administrative expenses to other expense (income), net.

Accounting Standards Not Yet Adopted

The Company is an emerging growth company and has elected not to opt out of the extended transition period for complying with new or revised accounting standards, which means that when a standard is issued or revised and it has different application dates for public or nonpublic entities, the Company can adopt the new or revised standard at the time nonpublic entities adopt the new or revised standard.

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)," which requires an entity to recognize assets and liabilities for the rights and obligations created by leased assets. For nonpublic entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company is planning to adopt ASU 2016-02 for its year ending December 31, 2020 and is currently evaluating to what extent ASU 2016-02 will affect the Company's financial position, results of operations, cash flows and related disclosures.

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326)," which requires an entity to recognize credit losses as an allowance rather than as a write-down. For nonpublic entities, the amendments are effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company is planning to adopt ASU 2016-03 for its year ending December 31, 2021 and is currently evaluating to what extent ASU 2016-13 will affect the Company's financial position, results of operations, cash flows and related disclosures.
v3.19.3
Transfer of Financial Assets
9 Months Ended
Sep. 30, 2019
Transfers and Servicing [Abstract]  
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. The Company utilizes this arrangement as an integral part of financing working capital.  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 are accounted for as sold receivables which 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 $36.9 million and $104.8 million of trade receivables during the three and nine months ending September 30, 2019, respectively, $37.0 million and $107.2 million of trade receivables during the three and nine months ending September 30, 2018, respectively, and $165.4 million during the year ending December 31, 2018. The loss incurred on sold receivables in the consolidated results of operations for the three and nine months ended September 30, 2019 and 2018 was not material. The Company does not carry any servicing assets or liabilities. Cash proceeds from this arrangement are reflected as operating activities in the Condensed Consolidated Statements of Cash Flows.
v3.19.3
Inventory
9 Months Ended
Sep. 30, 2019
Inventory Disclosure [Abstract]  
Inventory
Inventory

Inventory is summarized as follows:
 
SEPTEMBER 30
2019
 
DECEMBER 31
2018
 
SEPTEMBER 30
2018
HBB
$
161,043

 
$
122,697

 
$
155,744

KC
20,804

 
21,994

 
28,087

 Total inventory
$
181,847

 
$
144,691

 
$
183,831

v3.19.3
Fair Value Disclosure
9 Months Ended
Sep. 30, 2019
Fair Value Disclosures [Abstract]  
Fair Value Disclosure
Fair Value Disclosure

The following table presents the Company's assets and liabilities accounted for at fair value on a recurring basis:
Description
 
Balance Sheet Location
 
SEPTEMBER 30
2019
 
DECEMBER 31
2018
 
SEPTEMBER 30
2018
Assets:
 
 
 

 
 
 
 
Interest rate swap agreements
 
 
 

 

 
 
Current
 
Prepaid expenses and other current assets
 
$

 
$
349

 
$
440

Long-term
 
Other non-current assets
 

 
710

 
1,268

Foreign currency exchange contracts
 
 
 

 

 
 
Current
 
Prepaid expenses and other current assets
 

 
231

 
29

 
 
 
 
$

 
$
1,290

 
$
1,737

Liabilities:
 
 
 
 
 
 
 
 
Interest rate swap agreements
 
 
 
 
 
 
 
 
Current
 
Other current liabilities
 
$
4

 
$

 
$

Long-term
 
Other long-term liabilities
 
244

 

 

Foreign currency exchange contracts
 
 
 

 

 
 
Current
 
Other current liabilities
 
78

 
87

 
310

 
 
 
 
$
326

 
$
87

 
$
310



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 LIBOR 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, and also incorporates the effect of its subsidiary and counterparty credit risk into the valuation.

During the periods ended September 30, 2019, December 31, 2018 and September 30, 2018, there were no transfers into or out of Levels 1, 2 or 3.

Nonrecurring Fair Value Measurements: The Company evaluates long-lived assets for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. Certain factors, such as the estimated property, plant and equipment salvage value, used for this nonrecurring fair value measurement are considered a Level 3 input. At September 30, 2019, the Company determined the carrying value of KC’s long-lived assets compared to the estimated undiscounted future cash flows were not recoverable as the Company lowered KC’s outlook for the prospect of a future return to profitability due to the continued decrease in comparable store sales. Based on the estimated selling price of KC’s property, plant and equipment in an orderly transaction between market participants, the Company recorded a $1.0 million impairment charge in selling, general and administrative expenses during the third quarter of 2019.
v3.19.3
Stockholders' Equity
9 Months Ended
Sep. 30, 2019
Equity [Abstract]  
Stockholders' Equity
Stockholders' Equity

Capital Stock: The following table sets forth the Company's authorized capital stock information:
 
SEPTEMBER 30
2019
 
DECEMBER 31
2018
 
SEPTEMBER 30
2018
 
(In thousands)
Preferred stock, par value $0.01 per share
 
 

 

Preferred stock authorized
5,000

 
5,000

 
5,000

Preferred stock outstanding

 

 

 
 
 
 
 
 
Class A Common stock, par value $0.01 per share
 
 
 
 
 
Class A Common stock authorized
70,000

 
70,000

 
70,000

Class A Common issued(1)(2)
9,488

 
9,291

 
9,238

 
 
 
 
 
 
Class B Common stock, par value $0.01 per share, convertible into Class A on a one-for-one basis
 
 
 
 
 
Class B Common stock authorized
30,000

 
30,000

 
30,000

Class B Common issued(1)
4,377

 
4,422

 
4,465

(1) Class B Common converted to Class A Common were 6 and 44 shares during the three and nine months ending September 30, 2019, respectively, and 11 and 343 shares during the three and nine months ending September 30, 2018, respectively.
(2) The Company issued Class A Common shares of 13 and 153 during the three and nine months ending September 30, 2019, respectively, and 9 and 30 during the three and nine months ending September 30, 2018, respectively.

Stock Repurchase Program:  In May 2018, the Company established a stock repurchase program allowing for the purchase of up to $25.0 million of the Company's Class A Common Stock outstanding through December 31, 2019. During the nine months ended September 30, 2019, the Company repurchased 364,893 shares at prevailing market prices for an aggregate purchase price of $6.0 million. There were no share repurchases during the twelve months ended December 31, 2018.
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:
 
Foreign Currency
 
Deferred Gain (Loss) on Cash Flow Hedging
 
Pension Plan Adjustment
 
Total
 
 
Balance, January 1, 2019
$
(9,099
)
 
$
1,023

 
$
(9,234
)
 
$
(17,310
)
Other comprehensive income (loss)
362

 
(774
)
 

 
(412
)
Reclassification adjustment to net loss

 
3

 
(49
)
 
(46
)
Tax effects
(17
)
 
207

 
39

 
229

Balance, March 31, 2019
$
(8,754
)
 
$
459

 
$
(9,244
)
 
$
(17,539
)
Other comprehensive income (loss)
360

 
(1,198
)
 

 
(838
)
Reclassification adjustment to net loss

 
202

 
142

 
344

Tax effects
(13
)
 
263

 
(40
)
 
210

Balance, June 30, 2019
$
(8,407
)
 
$
(274
)
 
$
(9,142
)
 
$
(17,823
)
Other comprehensive loss
(852
)
 
(166
)
 

 
(1,018
)
Reclassification adjustment to net income

 
171

 
166

 
337

Tax effects
31

 
(10
)
 
(39
)
 
(18
)
Balance, September 30, 2019
$
(9,228
)
 
$
(279
)
 
$
(9,015
)
 
$
(18,522
)
 
 
 
 
 
 
 
 
Balance, January 1, 2018
$
(7,934
)
 
$
508

 
$
(6,678
)
 
$
(14,104
)
Reclassification due to adoption of ASU 2018-02

 
118

 
(1,286
)
 
(1,168
)
Other comprehensive income
917

 
379

 

 
1,296

Reclassification adjustment to net loss

 
230

 
202

 
432

Tax effects

 
(154
)
 
(44
)
 
(198
)
Balance, March 31, 2018
$
(7,017
)
 
$
1,081

 
$
(7,806
)
 
$
(13,742
)
Other comprehensive income (loss)
(1,999
)
 
624

 

 
(1,375
)
Reclassification adjustment to net loss

 
54

 
188

 
242

Tax effects
94

 
(173
)
 
(46
)
 
(125
)
Balance, June 30, 2018
$
(8,922
)
 
$
1,586

 
$
(7,664
)
 
$
(15,000
)
Other comprehensive income
1,138

 
(425
)
 

 
713

Reclassification adjustment to net income

 
(143
)
 
152

 
9

Tax effects
66

 
165

 
(37
)
 
194

Balance, September 30, 2018
$
(7,718
)
 
$
1,183

 
$
(7,549
)
 
$
(14,084
)
v3.19.3
Revenue
9 Months Ended
Sep. 30, 2019
Revenue Recognition and Deferred Revenue [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. A description of the performance obligations for each segment is as follows:

HBB

Product revenue - Product revenue consists of sales of small electric household and specialty housewares appliances to traditional brick and mortar and e-commerce retailers, distributors and directly to the end consumer as well as sales of commercial products for restaurants, bars and hotels. Transactions with these customers generally originate upon the receipt of a purchase order from the customer, which in some cases are governed by master sales agreements, specifying product(s) that the customer desires. Contracts for product revenue generally 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 product is shipped from the Company's facility, or delivered to customers, depending on the shipping terms. The amount of consideration received and revenue recognized varies with changes in incentives, returns and consideration paid to customers for advertising arrangements.

License revenues - 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, tradenames, patents, trade dress, and/or logos (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 satisfying the performance obligation (over time).

KC

Product revenue - KC sells a variety of kitchenware products from a number of highly recognizable name brands to individual consumers. Products are sold through brick and mortar retail stores whereby customers come into KC stores, explore the assortment of merchandise available for sale, select various products that they desire to purchase, bring those products to the sales register and pay the cashier the agreed-upon price using either cash, check or credit card. Once the sale is complete, a receipt is generated and provided to the customer as proof of purchase. Therefore, the sales process is both originated and completed simultaneously at the point of sale. Revenue from product sales is recognized at the point in time when control transfers to the customer, which occurs when the products are scanned at the sales register. The amount of consideration received and revenue recognized varies with changes in returns.

HBB’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 one to three years.  There is no guarantee to the customer as HBB may repair or replace, at its option, those products returned under warranty.  Accordingly, the Company determined that no separate performance obligation exists.

The following table presents the Company's revenue on a disaggregated basis for the three and nine months ending:
 
THREE MONTHS ENDED SEPTEMBER 30
 
2019
 
2018
 
HBB
 
KC
 
Consolidated (1)
 
HBB
 
KC
 
Consolidated (1)
Type of good or service:
 
 
 
 
 
 
 
 
 
 
 
  Products
$
149,876

 
$
20,288

 
$
168,753

 
$
171,346

 
$
25,884

 
$
195.783

  Licensing
1,025

 

 
1,025

 
1,118

 

 
1,118

     Total revenue
$
150,901

 
$
20,288

 
$
169,778

 
$
172,464

 
$
25,884

 
$
196,901

 
 
 
 
 
 
 
 
 
 
 
 
 
NINE MONTHS ENDED SEPTEMBER 30
 
2019
 
2018
 
HBB
 
KC
 
Consolidated (1)
 
HBB
 
KC
 
Consolidated (1)
Type of good or service:
 
 
 
 
 
 
 
 
 
 
 
  Products
$
405,129

 
$
57,824

 
$
460,231

 
$
430,941

 
$
70,746

 
$
498.669

  Licensing
3,351

 

 
3,351

 
2,806

 

 
2,806

     Total revenue
$
408,480

 
$
57,824

 
$
463,582

 
$
433,747

 
$
70,746

 
$
501,475


(1) Includes the required intercompany eliminations between HBB and KC.
v3.19.3
Contingencies
9 Months Ended
Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]  
Contingencies
Contingencies

Various legal and regulatory proceedings and claims have been or may be asserted against Hamilton Beach Holding relating to the conduct of its businesses, including product liability, patent infringement, asbestos related claims, environmental and other claims. These proceedings and claims are incidental to the ordinary course of business of the Company. Management believes that it has meritorious defenses and will vigorously defend the Company in these actions. Any costs that management estimates will be paid as a result of these claims are accrued when the liability is considered probable and the amount 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.

These matters 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, results of operations and cash flows of the period in which the ruling occurs, or in future periods.

HBB is a defendant in a legal proceeding in which the plaintiff alleges that certain HBB products infringe the plaintiff’s patents. On May 3, 2019, the jury returned its verdict finding that the Company had infringed certain patents of the plaintiff and, as a result, awarded the plaintiff damages in the amount of $3.2 million. Accordingly, the Company recorded $3.2 million expense in selling, general and administrative expenses during the second quarter of 2019 for the contingent loss. On September 23, 2019 the Company filed post-trial motions challenging the jury verdict of infringement and the award of damages and the plaintiffs filed motions seeking interest, post-trial accounting, injunctive relief, and attorneys’ fees.  A hearing date on the post-trial motions has not been set.  The Company maintains that its products do not infringe on the plaintiff’s patents and will vigorously defend against the plantiff's post-trial motions.

Environmental matters

HBB is investigating or remediating historical environmental contamination at some current and former sites operated by HBB or by businesses it acquired. Based on the current stage of the investigation or remediation at each known site, HBB 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.

HBB'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 HBB's estimate of the time required to remediate the sites changes. HBB's revised estimates may differ materially from original estimates.

At September 30, 2019, December 31, 2018, and September 30, 2018, HBB had accrued undiscounted obligations of $4.5 million, $8.2 million, and $8.6 million respectively, for environmental investigation and remediation activities. The reduction in the amount accrued at September 30, 2019 compared to December 31, 2018 is the result of a reduction to the accrual recorded in the second quarter of 2019 due to a change in the expected type and extent of investigation and remediation activities associated with one of the sites based upon additional testing and assessment performed with respect to that site in the second quarter of 2019. In addition, HBB estimates that it is reasonably possible that it may incur additional expenses in the range of zero to $3.9 million related to the environmental investigation and remediation at these sites.
v3.19.3
Business Segments
9 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
Business Segments
Business Segments

The Company manages its subsidiaries primarily by reportable segment, which are HBB and KC. The Company includes the required intercompany eliminations between its reportable segments and intercompany revenue based on current market prices of similar third-party transactions. Costs incurred as a stand-alone public entity are allocated to the HBB segment. The only material assets held by Hamilton Beach Brands Holding Company are its investments in consolidated subsidiaries. Substantially all of its cash flows are provided by dividends paid or distributions made by its subsidiaries.
 
THREE MONTHS ENDED
SEPTEMBER 30
 
NINE MONTHS ENDED
SEPTEMBER 30
 
2019
 
2018
 
2019
 
2018
Revenue
 
 
 
 
 
 
 
HBB
$
150,901

 
$
172,464

 
$
408,480

 
$
433,747

KC
20,288

 
25,884

 
57,824

 
70,746

Eliminations
(1,411
)
 
(1,447
)
 
(2,722
)
 
(3,018
)
Total
$
169,778

 
$
196,901

 
$
463,582

 
$
501,475

 
 
 
 
 
 
 
 
Operating profit (loss)
 

 
 
 
 

 
 
HBB
$
7,291

 
$
13,238

 
$
11,905

 
$
21,212

KC
(3,143
)
 
(2,407
)
 
(10,063
)
 
(10,545
)
Eliminations
(91
)
 
(36
)
 
(220
)
 
(34
)
Total
$
4,057

 
$
10,795

 
$
1,622

 
$
10,633

 
 
 
 
 
 
 
 
Depreciation and amortization
 
 
 
 
 
 
 
HBB
$
972

 
$
1,055

 
$
2,813

 
$
2,991

KC
154

 
258

 
466

 
784

Total
$
1,126

 
$
1,313

 
$
3,279

 
$
3,775

 
 
 
 
 
 
 
 
Capital expenditures
 
 
 
 
 
 
 
HBB
$
1,184

 
$
2,610

 
$
3,156

 
$
6,964

KC
30

 
75

 
149

 
276

Total
$
1,214

 
$
2,685

 
$
3,305

 
$
7,240

v3.19.3
Income Taxes
9 Months Ended
Sep. 30, 2019
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes

The Company recognized income tax expense of $2.1 million and $1.2 million on income before taxes of $2.5 million in the three months ended September 30, 2019 and a loss before taxes of $1.1 million for the nine months ended September 30, 2019. Income tax expense includes $1.9 million of deferred tax expense related to a change in judgment regarding the valuation allowance recorded against deferred tax assets of KC.
v3.19.3
Subsequent Events
9 Months Ended
Sep. 30, 2019
Subsequent Events [Abstract]  
Subsequent Events
Subsequent Events

During the three months ended September 30, 2019, KC continued to experience decreased comparable store sales as a result of declining foot traffic. Further deterioration in foot traffic has lowered the Company's outlook for the prospect of a future return to profitability. As a result, on October 10, 2019, the board of directors of the Company approved the wind down of the retail operations of KC and the closure of all of its 160 stores by the end of 2019. During the fourth quarter, KC expects to incur expenses in the range of $4.0 million to $6.0 million primarily for severance obligations and professional fees. The Company expects KC's total cash expenditures relating to the wind down, excluding cash expenditures in the ordinary course as KC continues to operate, to be in the range of $6.0 million to $8.0 million. These charges and expenses do not include lease termination obligations as the amount is subject to negotiation and is not known at this time. The Company’s estimate of the charges and expenses are preliminary and subject to change until finalized. The Company expects that the historical and future financial results of KC will be classified as discontinued operations in the period during which the assets are abandoned, which is currently anticipated to occur during the quarter ending December 31, 2019.

On October 23, 2019, KC and its lender entered into a Forbearance Agreement (the “Forbearance Agreement”) with respect to KC's secured revolving line of credit ("KC Facility"). The wind down of KC's operations constitutes an event of default under the KC Facility. Under the terms of the Forbearance Agreement, the lender has agreed to forebear from exercising its rights and remedies as a result of the events of default pending accelerated payment in full of the obligations under the KC facility on or before December 15, 2019. The Forbearance Agreement reduces the amount of the aggregate commitments to $15.0 million and converts all LIBO rate loans to base rate loans and triggers default interest. In addition, KC will pay a forbearance fee of $12,500 each week until all obligations under the KC Facility are paid in full. The Company has not guaranteed any of the obligations of KC under the KC Facility.
v3.19.3
Basis of Presentation (Policies)
9 Months Ended
Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation
The unaudited interim condensed consolidated financial statements of Hamilton Beach Brands Holding Company and its subsidiaries ("Hamilton Beach Holding” or the “Company”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments of a normal recurring nature considered necessary for a fair presentation have been included. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2018.

The Company operates through its subsidiaries, Hamilton Beach Brands, Inc. ("HBB") and The Kitchen Collection, LLC ("KC"). HBB is a leading designer, marketer and distributor of branded, small electric household and specialty housewares appliances, as well as commercial products for restaurants, bars and hotels. KC is a national specialty retailer of kitchenware primarily in outlet malls throughout the United States ("U.S."). 

Operating results for the three and nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the remainder of the year due to the highly seasonal nature of our primary markets. A majority of revenue and operating profit occurs in the second half of the calendar year when sales of our products to retailers and consumers increase significantly for the fall holiday-selling season.

Prior period interest income amounts have been reclassified from other expense (income), net to interest expense, net and prior period non-trade customer receivable amounts have been reclassified from trade receivables, net to prepaid expenses and other current assets to conform to the current period presentation.

The following new accounting policy is reflected in these quarterly financial statements as a result of the share repurchases made during the first nine months of 2019:

Accounting Standard Adopted and Not Yet Adopted
Accounting Standards Adopted

In March 2017, the FASB issued ASU 2017-07, "Compensation - Retirement Benefits (Topic 715)," which amends the requirements in U.S. GAAP related to the income statement presentation of the components of net periodic benefit cost for an entity's sponsored defined benefit pension and other post-retirement plans. The Company adopted this guidance on January 1, 2019. The change in presentation of the components of net periodic pension cost was applied retrospectively which resulted in $0.2 million and $0.6 million of net periodic pension income for the three and nine months ended September 30, 2018, respectively, being reclassified from selling, general and administrative expenses to other expense (income), net.

Accounting Standards Not Yet Adopted

The Company is an emerging growth company and has elected not to opt out of the extended transition period for complying with new or revised accounting standards, which means that when a standard is issued or revised and it has different application dates for public or nonpublic entities, the Company can adopt the new or revised standard at the time nonpublic entities adopt the new or revised standard.

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)," which requires an entity to recognize assets and liabilities for the rights and obligations created by leased assets. For nonpublic entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company is planning to adopt ASU 2016-02 for its year ending December 31, 2020 and is currently evaluating to what extent ASU 2016-02 will affect the Company's financial position, results of operations, cash flows and related disclosures.

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326)," which requires an entity to recognize credit losses as an allowance rather than as a write-down. For nonpublic entities, the amendments are effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company is planning to adopt ASU 2016-03 for its year ending December 31, 2021 and is currently evaluating to what extent ASU 2016-13 will affect the Company's financial position, results of operations, cash flows and related disclosures.
v3.19.3
Inventory (Tables)
9 Months Ended
Sep. 30, 2019
Inventory Disclosure [Abstract]  
Schedule of Inventory
Inventory is summarized as follows:
 
SEPTEMBER 30
2019
 
DECEMBER 31
2018
 
SEPTEMBER 30
2018
HBB
$
161,043

 
$
122,697

 
$
155,744

KC
20,804

 
21,994

 
28,087

 Total inventory
$
181,847

 
$
144,691

 
$
183,831

v3.19.3
Fair Value Disclosure (Tables)
9 Months Ended
Sep. 30, 2019
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following table presents the Company's assets and liabilities accounted for at fair value on a recurring basis:
Description
 
Balance Sheet Location
 
SEPTEMBER 30
2019
 
DECEMBER 31
2018
 
SEPTEMBER 30
2018
Assets:
 
 
 

 
 
 
 
Interest rate swap agreements
 
 
 

 

 
 
Current
 
Prepaid expenses and other current assets
 
$

 
$
349

 
$
440

Long-term
 
Other non-current assets
 

 
710

 
1,268

Foreign currency exchange contracts
 
 
 

 

 
 
Current
 
Prepaid expenses and other current assets
 

 
231

 
29

 
 
 
 
$

 
$
1,290

 
$
1,737

Liabilities:
 
 
 
 
 
 
 
 
Interest rate swap agreements
 
 
 
 
 
 
 
 
Current
 
Other current liabilities
 
$
4

 
$

 
$

Long-term
 
Other long-term liabilities
 
244

 

 

Foreign currency exchange contracts
 
 
 

 

 
 
Current
 
Other current liabilities
 
78

 
87

 
310

 
 
 
 
$
326

 
$
87

 
$
310

v3.19.3
Stockholders' Equity (Tables)
9 Months Ended
Sep. 30, 2019
Equity [Abstract]  
Schedule of Capital Stock
The following table sets forth the Company's authorized capital stock information:
 
SEPTEMBER 30
2019
 
DECEMBER 31
2018
 
SEPTEMBER 30
2018
 
(In thousands)
Preferred stock, par value $0.01 per share
 
 

 

Preferred stock authorized
5,000

 
5,000

 
5,000

Preferred stock outstanding

 

 

 
 
 
 
 
 
Class A Common stock, par value $0.01 per share
 
 
 
 
 
Class A Common stock authorized
70,000

 
70,000

 
70,000

Class A Common issued(1)(2)
9,488

 
9,291

 
9,238

 
 
 
 
 
 
Class B Common stock, par value $0.01 per share, convertible into Class A on a one-for-one basis
 
 
 
 
 
Class B Common stock authorized
30,000

 
30,000

 
30,000

Class B Common issued(1)
4,377

 
4,422

 
4,465

(1) Class B Common converted to Class A Common were 6 and 44 shares during the three and nine months ending September 30, 2019, respectively, and 11 and 343 shares during the three and nine months ending September 30, 2018, respectively.
(2) The Company issued Class A Common shares of 13 and 153 during the three and nine months ending September 30, 2019, respectively, and 9 and 30 during the three and nine months ending September 30, 2018, respectively.
Schedule of Accumulated Other Comprehensive Income (Loss) Reclassifications
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:
 
Foreign Currency
 
Deferred Gain (Loss) on Cash Flow Hedging
 
Pension Plan Adjustment
 
Total
 
 
Balance, January 1, 2019
$
(9,099
)
 
$
1,023

 
$
(9,234
)
 
$
(17,310
)
Other comprehensive income (loss)
362

 
(774
)
 

 
(412
)
Reclassification adjustment to net loss

 
3

 
(49
)
 
(46
)
Tax effects
(17
)
 
207

 
39

 
229

Balance, March 31, 2019
$
(8,754
)
 
$
459

 
$
(9,244
)
 
$
(17,539
)
Other comprehensive income (loss)
360

 
(1,198
)
 

 
(838
)
Reclassification adjustment to net loss

 
202

 
142

 
344

Tax effects
(13
)
 
263

 
(40
)
 
210

Balance, June 30, 2019
$
(8,407
)
 
$
(274
)
 
$
(9,142
)
 
$
(17,823
)
Other comprehensive loss
(852
)
 
(166
)
 

 
(1,018
)
Reclassification adjustment to net income

 
171

 
166

 
337

Tax effects
31

 
(10
)
 
(39
)
 
(18
)
Balance, September 30, 2019
$
(9,228
)
 
$
(279
)
 
$
(9,015
)
 
$
(18,522
)
 
 
 
 
 
 
 
 
Balance, January 1, 2018
$
(7,934
)
 
$
508

 
$
(6,678
)
 
$
(14,104
)
Reclassification due to adoption of ASU 2018-02

 
118

 
(1,286
)
 
(1,168
)
Other comprehensive income
917

 
379

 

 
1,296

Reclassification adjustment to net loss

 
230

 
202

 
432

Tax effects

 
(154
)
 
(44
)
 
(198
)
Balance, March 31, 2018
$
(7,017
)
 
$
1,081

 
$
(7,806
)
 
$
(13,742
)
Other comprehensive income (loss)
(1,999
)
 
624

 

 
(1,375
)
Reclassification adjustment to net loss

 
54

 
188

 
242

Tax effects
94

 
(173
)
 
(46
)
 
(125
)
Balance, June 30, 2018
$
(8,922
)
 
$
1,586

 
$
(7,664
)
 
$
(15,000
)
Other comprehensive income
1,138

 
(425
)
 

 
713

Reclassification adjustment to net income

 
(143
)
 
152

 
9

Tax effects
66

 
165

 
(37
)
 
194

Balance, September 30, 2018
$
(7,718
)
 
$
1,183

 
$
(7,549
)
 
$
(14,084
)
v3.19.3
Revenue (Tables)
9 Months Ended
Sep. 30, 2019
Revenue Recognition and Deferred Revenue [Abstract]  
Disaggregation of Revenue
The following table presents the Company's revenue on a disaggregated basis for the three and nine months ending:
 
THREE MONTHS ENDED SEPTEMBER 30
 
2019
 
2018
 
HBB
 
KC
 
Consolidated (1)
 
HBB
 
KC
 
Consolidated (1)
Type of good or service:
 
 
 
 
 
 
 
 
 
 
 
  Products
$
149,876

 
$
20,288

 
$
168,753

 
$
171,346

 
$
25,884

 
$
195.783

  Licensing
1,025

 

 
1,025

 
1,118

 

 
1,118

     Total revenue
$
150,901

 
$
20,288

 
$
169,778

 
$
172,464

 
$
25,884

 
$
196,901

 
 
 
 
 
 
 
 
 
 
 
 
 
NINE MONTHS ENDED SEPTEMBER 30
 
2019
 
2018
 
HBB
 
KC
 
Consolidated (1)
 
HBB
 
KC
 
Consolidated (1)
Type of good or service:
 
 
 
 
 
 
 
 
 
 
 
  Products
$
405,129

 
$
57,824

 
$
460,231

 
$
430,941

 
$
70,746

 
$
498.669

  Licensing
3,351

 

 
3,351

 
2,806

 

 
2,806

     Total revenue
$
408,480

 
$
57,824

 
$
463,582

 
$
433,747

 
$
70,746

 
$
501,475


(1) Includes the required intercompany eliminations between HBB and KC.
v3.19.3
Business Segments (Tables)
9 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
Segment reporting information
 
THREE MONTHS ENDED
SEPTEMBER 30
 
NINE MONTHS ENDED
SEPTEMBER 30
 
2019
 
2018
 
2019
 
2018
Revenue
 
 
 
 
 
 
 
HBB
$
150,901

 
$
172,464

 
$
408,480

 
$
433,747

KC
20,288

 
25,884

 
57,824

 
70,746

Eliminations
(1,411
)
 
(1,447
)
 
(2,722
)
 
(3,018
)
Total
$
169,778

 
$
196,901

 
$
463,582

 
$
501,475

 
 
 
 
 
 
 
 
Operating profit (loss)
 

 
 
 
 

 
 
HBB
$
7,291

 
$
13,238

 
$
11,905

 
$
21,212

KC
(3,143
)
 
(2,407
)
 
(10,063
)
 
(10,545
)
Eliminations
(91
)
 
(36
)
 
(220
)
 
(34
)
Total
$
4,057

 
$
10,795

 
$
1,622

 
$
10,633

 
 
 
 
 
 
 
 
Depreciation and amortization
 
 
 
 
 
 
 
HBB
$
972

 
$
1,055

 
$
2,813

 
$
2,991

KC
154

 
258

 
466

 
784

Total
$
1,126

 
$
1,313

 
$
3,279

 
$
3,775

 
 
 
 
 
 
 
 
Capital expenditures
 
 
 
 
 
 
 
HBB
$
1,184

 
$
2,610

 
$
3,156

 
$
6,964

KC
30

 
75

 
149

 
276

Total
$
1,214

 
$
2,685

 
$
3,305

 
$
7,240

v3.19.3
Recently Issued Accounting Standards (Details) - Restatement Adjustment - Accounting Standards Update 2017-07 - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2018
Sep. 30, 2018
Other Income, Net    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Reclassification of net periodic benefit income $ (0.2) $ (0.4)
Selling, General and Administrative Expenses    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Reclassification of net periodic benefit income $ 0.2 $ 0.6
v3.19.3
Transfer of Financial Assets (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Dec. 31, 2018
Transfers and Servicing [Abstract]          
Accounts receivable derecognized $ 36.9 $ 37.0 $ 104.8 $ 107.2 $ 165.4
v3.19.3
Inventory (Details) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Sep. 30, 2018
Segment Reporting Information [Line Items]      
Total inventory $ 181,847 $ 144,691 $ 183,831
HBB      
Segment Reporting Information [Line Items]      
Total inventory 161,043 122,697 155,744
KC      
Segment Reporting Information [Line Items]      
Total inventory $ 20,804 $ 21,994 $ 28,087
v3.19.3
Fair Value Disclosure (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2019
Sep. 30, 2018
Dec. 31, 2018
Liabilities:        
Impairment of property, plant and equipment   $ 975 $ 244  
Fair value measurements, recurring        
Assets:        
Assets at fair value $ 0 0 1,737 $ 1,290
Liabilities:        
Liabilities at fair value 326 326 310 87
Prepaid expenses and other current assets | Fair value measurements, recurring        
Assets:        
Interest rate swap agreements 0 0 440 349
Foreign currency exchange contracts 0 0 29 231
Liabilities:        
Interest rate swap agreements 4 4 0 0
Other non-current assets | Fair value measurements, recurring        
Assets:        
Interest rate swap agreements 0 0 1,268 710
Other long-term liabilities | Fair value measurements, recurring        
Liabilities:        
Interest rate swap agreements 244 244 0 0
Other current liabilities | Fair value measurements, recurring        
Liabilities:        
Foreign currency exchange contracts 78 $ 78 $ 310 $ 87
Level 3 | Fair value measurements, nonrecurring        
Liabilities:        
Impairment of property, plant and equipment $ 1,000      
v3.19.3
Stockholders' Equity - Schedule of Capital Stock (Details) - shares
shares in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Dec. 31, 2018
Class of Stock [Line Items]          
Preferred stock, shares authorized (in shares) 5,000 5,000 5,000 5,000 5,000
Preferred stock, shares outstanding (in shares) 0 0 0 0 0
Class A Common Stock          
Class of Stock [Line Items]          
Common stock, shares authorized (in shares) 70,000 70,000 70,000 70,000 70,000
Common stock, shares issued (in shares) 9,488 9,238 9,488 9,238 9,291
Class A Common shares issued (in shares) 13 9 153 30  
Class B Common Stock          
Class of Stock [Line Items]          
Common stock, shares authorized (in shares) 30,000 30,000 30,000 30,000 30,000
Common stock, shares issued (in shares) 4,377 4,465 4,377 4,465 4,422
Class B Common converted to Class A Common (in shares) 6 11 44 343  
v3.19.3
Stockholders' Equity - Narrative (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2019
Jun. 30, 2019
Sep. 30, 2019
Dec. 31, 2018
May 31, 2018
Class of Stock [Line Items]          
Shares repurchased (in shares)     364,893 0  
Shares repurchased $ 3,626 $ 2,334 $ 6,000    
Stock Repurchase Program | Class A Common Stock          
Class of Stock [Line Items]          
Approved repurchase amount (up to)         25,000,000.0
v3.19.3
Stockholders' Equity - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Thousands
3 Months Ended
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
AOCI Attributable to Parent, Net of Tax [Roll Forward]            
Beginning balance     $ 65,438      
Reclassification due to adoption of ASU 2018-02           $ (1,168)
Other comprehensive income (loss) $ (1,018) $ (838) (412) $ 713 $ (1,375) 1,296
Reclassification adjustment to net loss 337 344 (46) 9 242 432
Tax effects (18) 210 229 194 (125) (198)
Ending balance 54,755     54,450    
Foreign Currency            
AOCI Attributable to Parent, Net of Tax [Roll Forward]            
Beginning balance (8,407) (8,754) (9,099) (8,922) (7,017) (7,934)
Reclassification due to adoption of ASU 2018-02           0
Other comprehensive income (loss) (852) 360 362 1,138 (1,999) 917
Reclassification adjustment to net loss 0 0 0 0 0 0
Tax effects 31 (13) (17) 66 94 0
Ending balance (9,228) (8,407) (8,754) (7,718) (8,922) (7,017)
Deferred Gain (Loss) on Cash Flow Hedging            
AOCI Attributable to Parent, Net of Tax [Roll Forward]            
Beginning balance (274) 459 1,023 1,586 1,081 508
Reclassification due to adoption of ASU 2018-02           118
Other comprehensive income (loss) (166) (1,198) (774) (425) 624 379
Reclassification adjustment to net loss 171 202 3 (143) 54 230
Tax effects (10) 263 207 165 (173) (154)
Ending balance (279) (274) 459 1,183 1,586 1,081
Pension Plan Adjustment            
AOCI Attributable to Parent, Net of Tax [Roll Forward]            
Beginning balance (9,142) (9,244) (9,234) (7,664) (7,806) (6,678)
Reclassification due to adoption of ASU 2018-02           (1,286)
Other comprehensive income (loss) 0 0 0 0 0 0
Reclassification adjustment to net loss 166 142 (49) 152 188 202
Tax effects (39) (40) 39 (37) (46) (44)
Ending balance (9,015) (9,142) (9,244) (7,549) (7,664) (7,806)
Accumulated other comprehensive income (loss)            
AOCI Attributable to Parent, Net of Tax [Roll Forward]            
Beginning balance (17,823) (17,539) (17,310) (15,000) (13,742) (14,104)
Ending balance $ (18,522) $ (17,823) $ (17,539) $ (14,084) $ (15,000) $ (13,742)
v3.19.3
Revenue (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Disaggregation of Revenue [Line Items]        
Revenue $ 169,778 $ 196,901 $ 463,582 $ 501,475
Products        
Disaggregation of Revenue [Line Items]        
Revenue 168,753 195,783 460,231 498,669
Licensing        
Disaggregation of Revenue [Line Items]        
Revenue 1,025 1,118 3,351 2,806
HBB        
Disaggregation of Revenue [Line Items]        
Revenue 150,901 172,464 408,480 433,747
HBB | Products        
Disaggregation of Revenue [Line Items]        
Revenue 149,876 171,346 405,129 430,941
HBB | Licensing        
Disaggregation of Revenue [Line Items]        
Revenue 1,025 1,118 3,351 2,806
KC        
Disaggregation of Revenue [Line Items]        
Revenue 20,288 25,884 57,824 70,746
KC | Products        
Disaggregation of Revenue [Line Items]        
Revenue 20,288 25,884 57,824 70,746
KC | Licensing        
Disaggregation of Revenue [Line Items]        
Revenue $ 0 $ 0 $ 0 $ 0
Maximum        
Disaggregation of Revenue [Line Items]        
Warranty term     3 years  
Maximum | Electric appliances        
Disaggregation of Revenue [Line Items]        
Warranty term     10 years  
Minimum        
Disaggregation of Revenue [Line Items]        
Warranty term     1 year  
v3.19.3
Contingencies (Details) - USD ($)
3 Months Ended
May 03, 2019
Jun. 30, 2019
Sep. 30, 2019
Dec. 31, 2018
Sep. 30, 2018
Loss Contingencies [Line Items]          
Damages awarded to plaintiff $ 3,200,000        
Litigation settlement expense   $ 3,200,000      
Accrual for environmental investigation and remediation activities     $ 4,500,000 $ 8,200,000 $ 8,600,000
Minimum          
Loss Contingencies [Line Items]          
Estimate of additional expenses     0    
Maximum          
Loss Contingencies [Line Items]          
Estimate of additional expenses     $ 3,900,000    
v3.19.3
Business Segments (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Segment Reporting Information [Line Items]        
Revenues $ 169,778 $ 196,901 $ 463,582 $ 501,475
Operating profit (loss) 4,057 10,795 1,622 10,633
Depreciation and amortization 1,126 1,313 3,279 3,775
Capital expenditures 1,214 2,685 3,305 7,240
HBB        
Segment Reporting Information [Line Items]        
Revenues 150,901 172,464 408,480 433,747
KC        
Segment Reporting Information [Line Items]        
Revenues 20,288 25,884 57,824 70,746
Operating segments | HBB        
Segment Reporting Information [Line Items]        
Revenues 150,901 172,464 408,480 433,747
Operating profit (loss) 7,291 13,238 11,905 21,212
Depreciation and amortization 972 1,055 2,813 2,991
Capital expenditures 1,184 2,610 3,156 6,964
Operating segments | KC        
Segment Reporting Information [Line Items]        
Revenues 20,288 25,884 57,824 70,746
Operating profit (loss) (3,143) (2,407) (10,063) (10,545)
Depreciation and amortization 154 258 466 784
Capital expenditures 30 75 149 276
Eliminations        
Segment Reporting Information [Line Items]        
Revenues (1,411) (1,447) (2,722) (3,018)
Operating profit (loss) $ (91) $ (36) $ (220) $ (34)
v3.19.3
Income Taxes (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Income Tax Disclosure [Abstract]        
Income tax expense $ 2,108 $ 2,176 $ 1,186 $ 1,712
Income (loss) before income taxes 2,505 $ 10,220 (1,122) $ 8,464
Valuation allowance related to deferred tax assets $ 1,900   $ 1,900  
v3.19.3
Subsequent Events (Details) - Subsequent Event
Oct. 23, 2019
USD ($)
Oct. 10, 2019
USD ($)
store
Subsequent Event [Line Items]    
Number of planned store closures | store   160
Minimum | Severance Obligations and Professional Fees    
Subsequent Event [Line Items]    
Expected cost of restructuring   $ 4,000,000
Minimum | Cash Expenditures Related to Wind Down    
Subsequent Event [Line Items]    
Expected cost of restructuring   6,000,000
Maximum | Severance Obligations and Professional Fees    
Subsequent Event [Line Items]    
Expected cost of restructuring   6,000,000
Maximum | Cash Expenditures Related to Wind Down    
Subsequent Event [Line Items]    
Expected cost of restructuring   $ 8,000,000
KC    
Subsequent Event [Line Items]    
Aggregate commitments $ 15,000,000  
Forbearance fees $ 12,500  
v3.19.3
Label Element Value
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption $ 0
AOCI Attributable to Parent [Member]  
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption (1,168,000)
Retained Earnings [Member]  
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption $ 1,168,000