HAMILTON BEACH BRANDS HOLDING CO, 10-K/A filed on 7/24/2020
Amended Annual Report
v3.20.2
Document and Entity Information - USD ($)
12 Months Ended
Dec. 31, 2019
Jul. 17, 2020
Jun. 30, 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    
Entity Shell Company false    
Document Type 10-K/A    
Document Period End Date Dec. 31, 2019    
Document Fiscal Year Focus 2019    
Document Fiscal Period Focus FY    
Amendment Flag true    
Amendment Description Restatement of prior periods due to accounting irregularities at its Mexican subsidiaries    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Public Float     $ 130,361,017
Shares Outstanding Class A      
Entity Information [Line Items]      
Shares Outstanding   9,607,176  
Shares Outstanding Class B      
Entity Information [Line Items]      
Shares Outstanding   4,062,422  
v3.20.2
Consolidated Statements of Operations - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 9 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Jun. 30, 2019
Jun. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Income Statement [Abstract]                              
Total revenues $ 204,570 $ 149,508 $ 131,065 $ 126,642 $ 198,166 $ 171,301 $ 135,583 $ 125,032 $ 257,707 $ 260,615 $ 407,216 $ 431,916 $ 611,786 $ 630,082 $ 612,056
Cost of sales 162,173 118,562 102,558 99,940 156,173 132,897 104,856 97,104 202,498 201,960 321,060 334,857 483,234 491,030 475,939
Gross profit 42,397 30,946 28,507 26,702 41,993 38,404 30,727 27,928 55,209 58,655 86,155 97,059 128,552 139,052 136,117
Selling, general and administrative expenses 22,996 26,165 24,976 26,246 25,599 26,296 26,437 25,789 51,222 52,225 77,385 78,522 100,381 104,121 96,780
Amortization of intangible assets 341 345 346 345 345 345 346 345 691 691 1,036 1,036 1,377 1,381 1,381
Operating profit 19,060 4,439 3,185 111 16,050 11,763 3,944 1,794 3,296 5,738 7,734 17,501 26,794 33,550 37,956
Interest expense, net 767 756 789 663 711 886 809 510 1,452 1,319 2,208 2,205 2,975 2,916 1,572
Other expense (income), net (710) 681 (132) (197) 429 (433) 679 (526) (329) 153 352 (280) (358) 149 (692)
Income from continuing operations before income taxes 19,003 3,002 2,528 (355) 14,910 11,310 2,456 1,810 2,173 4,266 5,174 15,576 24,177 30,485 37,076
Income tax expense 5,699 2,449 630 307 3,420 2,280 811 916 937 1,727 3,385 4,007 9,084 7,426 18,967
Net income from continuing operations 13,304 553 1,898 (662) 11,490 9,030 1,645 894 1,236 2,539 1,789 11,569 15,093 23,059 18,109
Loss from discontinued operations, net of tax (20,608) (2,753) (2,516) (2,723) 2,371 (1,889) (2,766) (3,077) (5,239) (5,843) (7,992) (7,732) (28,600) (5,361) (2,225)
Net income (loss) $ (7,304) $ (2,200) $ (618) $ (3,385) $ 13,861 $ 7,141 $ (1,121) $ (2,183) $ (4,003) $ (3,304) $ (6,203) $ 3,837 $ (13,507) $ 17,698 $ 15,884
Earnings Per Share, Basic and Diluted [Abstract]                              
Basic and diluted earnings per share, continuing operations (in dollars per share) $ 0.98 $ 0.04 $ 0.14 $ (0.05) $ 0.84 $ 0.66 $ 0.12 $ 0.07 $ 0.09 $ 0.19 $ 0.13 $ 0.84 $ 1.10 $ 1.68 $ 1.32
Basic and diluted earnings per share, discontinued operations (in dollars per share) (1.52) (0.20) (0.18) (0.20) 0.17 (0.14) (0.20) (0.22) (0.38) (0.43) (0.58) (0.56) (2.09) (0.39) (0.16)
Basic and diluted earnings per share (in dollars per share) $ (0.54) $ (0.16) $ (0.04) $ (0.25) $ 1.01 $ 0.52 $ (0.08) $ (0.15) $ (0.29) $ (0.24) $ (0.45) $ 0.28 $ (0.99) $ 1.29 $ 1.16
Basic weighted average shares outstanding (in shares) 13,518,000 13,579,000 13,813,000 13,786,000 13,714,000 13,704,000 13,695,000 13,683,000 13,800,000 13,689,000 13,726,000 13,694,000 13,690,000 13,699,000 13,673,000
Diluted weighted average shares outstanding (in shares) 13,625,000 13,595,000 13,826,000 13,786,000 13,844,000 13,713,000 13,704,000 13,692,000 13,813,000 13,693,000 13,731,000 13,697,000 13,726,000 13,731,000 13,685,000
v3.20.2
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 9 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Jun. 30, 2019
Jun. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Statement of Comprehensive Income [Abstract]                              
Net income (loss) $ (7,304) $ (2,200) $ (618) $ (3,385) $ 13,861 $ 7,141 $ (1,121) $ (2,183) $ (4,003) $ (3,304) $ (6,203) $ 3,837 $ (13,507) $ 17,698 $ 15,884
Foreign currency translation adjustment 201 (18) 113 214 (1,135) 902 (412) 573 327 161 309 1,063 510 (73) 648
Loss on long-term intra-entity foreign currency transactions 294 (509) 121 15 60 (53) (1,013) 0 136 (1,013) (373) (1,066) (79) (1,006) 0
Cash flow hedging activity (143) (127) (877) (422) (352) (301) 464 289 (1,299) 753 (1,426) 452 (1,569) 100 (749)
Reclassification of hedging activities into earnings 81 122 144 2 48 (102) 41 166 146 207 268 105 349 153 641
Pension plan adjustment 1,410 0 0 0 (1,920) 0 0 0 0 0 0 0 1,410 (1,920) 1,510
Reclassification of pension adjustments into earnings 35 127 102 84 141 115 142 158 186 300 313 415 348 556 306
Total other comprehensive income (loss), net of tax 1,878 (405) (397) (107) (3,158) 561 (778) 1,186 (504) 408 (909) 969 969 (2,190) 2,356
Comprehensive income (loss) $ (5,426) $ (2,605) $ (1,015) $ (3,492) $ 10,703 $ 7,702 $ (1,899) $ (997) $ (4,507) $ (2,896) $ (7,112) $ 4,805 $ (12,538) $ 15,508 $ 18,240
v3.20.2
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Current assets                  
Cash and cash equivalents $ 2,142 $ 1,559 $ 1,029 $ 1,636 $ 4,420 $ 1,567 $ 1,393 $ 1,784  
Trade receivables, net 108,381 103,091 86,268 79,102 98,361 112,309 76,132 79,358  
Inventory 109,806 161,043 121,472 120,707 122,808 155,744 138,721 132,749  
Prepaid expenses and other current assets 11,345 14,086 16,412 17,379 15,396 12,595 14,569 14,615  
Current assets of discontinued operations 5,383 22,830 21,255 24,692 27,879 32,185 30,704 29,086  
Total current assets 237,057 302,609 246,436 243,516 268,864 314,400 261,519 257,592  
Property, plant and equipment, net 22,324 22,193 21,649 20,984 20,842 20,988 19,088 17,643 $ 15,979
Goodwill 6,253 6,253 6,253 6,253 6,253 6,253 6,253 6,253  
Other intangible assets, net 3,141 3,483 3,828 4,174 4,519 4,864 5,209 5,555  
Deferred income taxes 6,248 5,640 3,754 3,166 5,794 7,704 8,877 10,419  
Deferred costs 10,941 8,804 8,564 8,316 7,868 10,153 9,825 10,187  
Other non-current assets 2,085 1,553 1,984 2,403 2,672 3,282 3,178 3,068  
Non-current assets of discontinued operations 614 1,744 4,420 4,446 4,606 5,313 5,688 5,661  
Total assets 288,663 352,279 296,888 293,258 321,418 372,957 319,637 316,378  
Current liabilities                  
Accounts payable 111,348 140,011 86,199 73,720 119,271 131,620 92,488 96,924  
Accounts payable to NACCO Industries, Inc. 496 220 220 2,425 2,416 2,480 2,769 7,814  
Revolving credit agreements 23,497 50,152 51,505 54,812 11,624 60,083 66,326 63,308  
Accrued compensation 15,027 14,650 11,725 8,398 15,878 15,421 11,984 9,238  
Accrued product returns 8,697 8,266 8,224 9,314 10,698 9,601 9,648 10,815  
Other current liabilities 12,534 25,880 21,382 17,705 22,922 22,488 15,769 21,227  
Current liabilities of discontinued operations 29,723 24,713 20,048 21,473 22,820 29,693 26,830 21,509  
Total current liabilities 201,322 263,892 199,303 187,847 205,629 271,386 225,814 230,835  
Revolving credit agreements 35,000 30,000 30,000 30,000 35,000 30,000 30,000 20,000  
Other long-term liabilities 16,075 14,258 14,699 18,619 22,011 22,343 21,654 21,831  
Non-current liabilities of discontinued operations 0 1,585 3,697 3,834 1,960 2,293 2,416 2,565  
Total liabilities 252,397 309,735 247,699 240,300 264,600 326,022 279,884 275,231  
Stockholders’ equity                  
Preferred stock, par value $0.01 per share 0       0        
Capital in excess of par value 54,509       51,714        
Treasury stock (5,960) (5,960) (2,334) 0 0 0 0 0  
Retained earnings 3,710 12,231 15,646 17,506 22,068 9,373 3,397 5,683  
Accumulated other comprehensive loss (16,132) (18,009) (17,604) (17,207) (17,101) (13,941) (14,502) (13,724)  
Total stockholders’ equity 36,266 42,544 49,189 52,958 56,818 46,935 39,753 41,147  
Total liabilities and stockholders' equity 288,663 352,279 296,888 293,258 321,418 372,957 319,637 316,378  
Class A Common stock, par value $0.01 per share; 9,805 and 9,291 shares issued as of December 31, 2019 and 2018, respectively                  
Stockholders’ equity                  
Common stock 98 95 95 95 93 92 92 92  
Class B Common stock, par value $0.01 per share, convertible into Class A on a one-for-one basis; 4,076 and 4,422 shares issued as of December 31, 2019 and 2018, respectively                  
Stockholders’ equity                  
Common stock $ 41 44 44 44 $ 44 45 45 45  
Capital in excess of par value   $ 54,143 $ 53,342 $ 52,520   $ 51,366 $ 50,721 $ 49,051  
v3.20.2
Consolidated Balance Sheets (Parenthetical)
shares in Thousands
Dec. 31, 2019
$ / shares
shares
Dec. 31, 2018
$ / shares
shares
Preferred stock, par value (in usd per share) $ 0.01 $ 0.01
Class A Common Stock    
Common stock, par value (in usd per share) $ 0.01 $ 0.01
Common stock, shares, issued (in shares) | shares 9,805 9,291
Class B Common Stock    
Common stock, par value (in usd per share) $ 0.01 $ 0.01
Common stock, shares, issued (in shares) | shares 4,076 4,422
Common stock, convertible conversion ratio 1 1
v3.20.2
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Income (loss) from continuing operations, net of tax $ 15,093 $ 23,059 $ 18,109
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities:      
Depreciation and amortization 4,002 4,277 4,072
Deferred income taxes 1,487 5,474 3,475
Stock compensation expense 2,797 3,618 323
Other 616 837 (1,167)
Net changes in operating assets and liabilities:      
Affiliate payable (1,920) (5,300) 866
Trade receivables (22,769) 18,529 (8,128)
Inventory 13,674 (12,255) (16,566)
Other assets 1,127 (4,586) (1,295)
Accounts payable (7,043) (7,719) 25,009
Other liabilities (6,842) (7,979) 3,605
Net cash provided by operating activities from continuing operations 222 17,955 28,303
Investing activities      
Expenditures for property, plant and equipment (4,122) (7,759) (6,198)
Other 0 0 21
Net cash used for investing activities from continuing operations (4,122) (7,759) (6,177)
Financing activities      
Net additions (reductions) to revolving credit agreements 11,873 (4,597) 12,630
Purchase of treasury stock (5,960) 0 0
Cash dividends to NACCO Industries, Inc. 0 0 (38,000)
Net cash provided by (used for) financing activities from continuing operations 1,062 (9,255) (26,532)
Cash flows from discontinued operations      
Net cash provided by (used for) operating activities from discontinued operations 3,953 (5,499) 5,137
Net cash provided by (used for) investing activities from discontinued operations 585 (305) (1,176)
Net cash used for financing activities from discontinued operations (103) 0 (70)
Cash provided by (used for) discontinued operations 4,435 (5,804) 3,891
Effect of exchange rate changes on cash (785) 309 81
Cash and Cash Equivalents      
(Decrease) increase for the year from continuing operations (3,623) 1,250 (4,325)
Balance at the beginning of the year 6,352 10,906 11,340
Balance at the end of the year 7,164 6,352 10,906
Common Class A and B      
Financing activities      
Cash dividends to NACCO Industries, Inc. $ (4,851) $ (4,658) $ (1,162)
v3.20.2
Consolidated Statements of Equity - USD ($)
$ in Thousands
Total
Common Class A and B
Total Stockholders' Equity
Total Stockholders' Equity
Common Class A and B
Common Stock
Class A Common Stock
Common Stock
Class B Common Stock
Capital in Excess of Par Value (1)
Treasury Stock
Retained Earnings (1)
Retained Earnings (1)
Common Class A and B
Accumulated Other Comprehensive Income (Loss)
As Previously Reported
As Previously Reported
Common Class A and B
As Previously Reported
Total Stockholders' Equity
As Previously Reported
Common Stock
Class A Common Stock
As Previously Reported
Common Stock
Class B Common Stock
As Previously Reported
Capital in Excess of Par Value (1)
As Previously Reported
Treasury Stock
As Previously Reported
Retained Earnings (1)
As Previously Reported
Retained Earnings (1)
Common Class A and B
As Previously Reported
Accumulated Other Comprehensive Income (Loss)
Restatement Impacts
Restatement Impacts
Total Stockholders' Equity
Restatement Impacts
Common Stock
Class A Common Stock
Restatement Impacts
Common Stock
Class B Common Stock
Restatement Impacts
Capital in Excess of Par Value (1)
Restatement Impacts
Treasury Stock
Restatement Impacts
Retained Earnings (1)
Restatement Impacts
Accumulated Other Comprehensive Income (Loss)
Balance, beginning of period at Dec. 31, 2016 $ 62,948   $ 62,948   $ 0 $ 0 $ 75,031 $ 0 $ 4,016   $ (16,099) $ 65,268   $ 65,268 $ 0 $ 0 $ 75,031 $ 0 $ 6,738   $ (16,501) $ (2,320) $ (2,320) $ 0 $ 0 $ 0 $ 0 $ (2,722) $ 402
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                                          
Net income 15,884   15,884           15,884     17,905             17,905     (2,021)           (2,021)  
Issuance of common stock, net of conversions 0       88 48 (136)         0     88 48 (136)                        
Cash dividends (38,000) $ (1,162) (38,000) $ (1,162)     (27,122)   (10,878) $ (1,162)   (38,000) $ (1,162)       (27,122)   (10,878) $ (1,162)                  
Other comprehensive loss 1,409   1,409               1,409 1,450                 1,450 (41)             (41)
Reclassification adjustment to net income 947   947               947 947                 947                
Balance, end of period at Dec. 31, 2017 42,026   42,026   88 48 47,773 0 7,860   (13,743) 46,408     88 48 47,773 0 12,603   (14,104) (4,382)   0 0 0 0 (4,743) 361
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                                          
Net income (2,183)               (2,183)     (418)                   (1,765)              
Issuance of common stock, net of conversions 324       4 (3) 323                                            
Stock compensation expense 955           955                                            
Cash dividends (1,162)               (1,162)                                        
Other comprehensive loss 863                   863                                    
Reclassification adjustment to net income 324                   324                                    
Balance, end of period at Mar. 31, 2018 41,147       92 45 49,051   5,683   (13,724)                                    
Balance, beginning of period at Dec. 31, 2017 42,026   42,026   88 48 47,773 0 7,860   (13,743) 46,408     88 48 47,773 0 12,603   (14,104) (4,382)   0 0 0 0 (4,743) 361
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                                          
Net income (3,304)                     (1,292)                   (2,012)              
Balance, end of period at Jun. 30, 2018 39,753       92 45 50,721   3,397   (14,502)                                    
Balance, beginning of period at Dec. 31, 2017 42,026   42,026   88 48 47,773 0 7,860   (13,743) 46,408     88 48 47,773 0 12,603   (14,104) (4,382)   0 0 0 0 (4,743) 361
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                                          
Net income 3,837                     6,752                   (2,915)              
Balance, end of period at Sep. 30, 2018 46,935       92 45 51,366   9,373   (13,941)                                    
Balance, beginning of period at Dec. 31, 2017 42,026   42,026   88 48 47,773 0 7,860   (13,743) 46,408     88 48 47,773 0 12,603   (14,104) (4,382)   0 0 0 0 (4,743) 361
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                                          
Net income 17,698   17,698           17,698     21,784             21,784     (4,086)           (4,086)  
Issuance of common stock, net of conversions 324       5 (4) 323         324     5 (4) 323                        
Purchase of treasury stock 0                     0                                  
Stock compensation expense 3,618           3,618         3,618         3,618                        
Cash dividends (4,658) $ (4,658)             (4,658) (4,658)   (4,658)             (4,658)                    
Reclassification due to adoption of ASU 2018-02 0               1,168   (1,168)                                    
Other comprehensive loss (2,899)   (2,899)               (2,899) (2,841)                 (2,841) (58)             (58)
Reclassification adjustment to net income 709   709           0   709 803             0   803 (94)             (94)
Balance, end of period at Dec. 31, 2018 56,818   56,818   93 44 51,714 0 22,068   (17,101) 65,438     93 44 51,714 0 30,897   (17,310) (8,620)   0 0 0 0 (8,829) 209
Balance, beginning of period at Mar. 31, 2018 41,147       92 45 49,051   5,683   (13,724)                                    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                                          
Net income (1,121)               (1,121)     (874)                   (247)              
Issuance of common stock, net of conversions 198           198                                            
Stock compensation expense 1,472           1,472                                            
Cash dividends (1,165)               (1,165)                                        
Other comprehensive loss (961)                   (961)                                    
Reclassification adjustment to net income 183                   183                                    
Balance, end of period at Jun. 30, 2018 39,753       92 45 50,721   3,397   (14,502)                                    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                                          
Net income 7,141               7,141     8,044                   (903)              
Issuance of common stock, net of conversions 246           246                                            
Stock compensation expense 399           399                                            
Cash dividends (1,165)               (1,165)                                        
Other comprehensive loss 548                   548                                    
Reclassification adjustment to net income 13                   13                                    
Balance, end of period at Sep. 30, 2018 46,935       92 45 51,366   9,373   (13,941)                                    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                                          
Net income 13,861               13,861     15,032                   (1,171)              
Issuance of common stock, net of conversions (444)       1 (1) (444)                                            
Stock compensation expense 792           792                                            
Cash dividends (1,166)               (1,166)                                        
Other comprehensive loss (3,349)                   (3,349)                                    
Reclassification adjustment to net income 189                   189                                    
Balance, end of period at Dec. 31, 2018 56,818   56,818   93 44 51,714 0 22,068   (17,101) 65,438     93 44 51,714 0 30,897   (17,310) (8,620)   0 0 0 0 (8,829) 209
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                                          
Net income (3,385)               (3,385)     (1,761)                   (1,624)              
Issuance of common stock, net of conversions 1       2   (1)                                            
Stock compensation expense 807           807                                            
Cash dividends (1,177)           0   (1,177)                                        
Other comprehensive loss (192)                   (192)                                    
Reclassification adjustment to net income 86                   86                     100              
Balance, end of period at Mar. 31, 2019 52,958       95 44 52,520 0 17,506   (17,207)                                    
Balance, beginning of period at Dec. 31, 2018 56,818   56,818   93 44 51,714 0 22,068   (17,101) 65,438     93 44 51,714 0 30,897   (17,310) (8,620)   0 0 0 0 (8,829) 209
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                                          
Net income (4,003)                     (2,705)                   (1,298)              
Balance, end of period at Jun. 30, 2019 49,189       95 44 53,342 (2,334) 15,646   (17,604)                                    
Balance, beginning of period at Dec. 31, 2018 56,818   56,818   93 44 51,714 0 22,068   (17,101) 65,438     93 44 51,714 0 30,897   (17,310) (8,620)   0 0 0 0 (8,829) 209
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                                          
Net income (6,203)                     (2,308)                   (3,895)              
Balance, end of period at Sep. 30, 2019 42,544       95 44 54,143 (5,960) 12,231   (18,009)                                    
Balance, beginning of period at Dec. 31, 2018 56,818   56,818   93 44 51,714 0 22,068   (17,101) 65,438     93 44 51,714 0 30,897   (17,310) (8,620)   0 0 0 0 (8,829) 209
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                                          
Net income (13,507)   (13,507)           (13,507)     (3,522)             (3,522)     (9,985)           (9,985)  
Issuance of common stock, net of conversions 0       5 (3) (2)         0     5 (3) (2)                        
Purchase of treasury stock (5,960)             (5,960)       (5,960)           (5,960)                      
Stock compensation expense 2,797           2,797         2,632         2,632         165       165      
Cash dividends (4,851)     $ (4,851)         (4,851) $ (4,851)   (4,851)             (4,851)                    
Other comprehensive loss 272   272               272 719                 719 (447)             (447)
Reclassification adjustment to net income 697   697               697 603                 603 94             94
Balance, end of period at Dec. 31, 2019 36,266   36,266   98 41 54,509 (5,960) 3,710   (16,132) 55,059     98 41 54,344 (5,960) 22,524   (15,988) (18,793)   0 0 165 0 (18,814) (144)
Balance, beginning of period at Mar. 31, 2019 52,958       95 44 52,520 0 17,506   (17,207)                                    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                                          
Net income (618)               (618)     (944)                   326              
Purchase of treasury stock (2,334)             (2,334)                                          
Stock compensation expense 822           822                                            
Cash dividends (1,242)           0   (1,242)                                        
Other comprehensive loss (643)                   (643)                                    
Reclassification adjustment to net income 246                   246                                    
Balance, end of period at Jun. 30, 2019 49,189       95 44 53,342 (2,334) 15,646   (17,604)                                    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                                          
Net income (2,200)               (2,200)     397                   (2,597)              
Purchase of treasury stock (3,626)             (3,626)                                          
Stock compensation expense 801           801                                            
Cash dividends (1,215)           0   (1,215)                                        
Other comprehensive loss (654)                   (654)                                    
Reclassification adjustment to net income 249                   249                                    
Balance, end of period at Sep. 30, 2019 42,544       95 44 54,143 (5,960) 12,231   (18,009)                                    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                                          
Net income (7,304)               (7,304)     (1,214)                   (6,090)              
Issuance of common stock, net of conversions (1)       3 (3) (1)                                            
Purchase of treasury stock 0             0                                          
Stock compensation expense 367           367                                            
Cash dividends (1,217)           0   (1,217)                                        
Other comprehensive loss 1,761                   1,761                                    
Reclassification adjustment to net income 116                   116                                    
Balance, end of period at Dec. 31, 2019 $ 36,266   $ 36,266   $ 98 $ 41 $ 54,509 $ (5,960) $ 3,710   $ (16,132) $ 55,059     $ 98 $ 41 $ 54,344 $ (5,960) $ 22,524   $ (15,988) $ (18,793)   $ 0 $ 0 $ 165 $ 0 $ (18,814) $ (144)
v3.20.2
Consolidated Statements of Equity (Parenthetical) - $ / shares
3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Statement of Stockholders' Equity [Abstract]                      
Common stock dividends (in dollars per share) $ 0.9 $ 0.9 $ 0.9 $ 0.085 $ 0.085 $ 0.085 $ 0.085 $ 0.085 $ 0.355 $ 0.34 $ 0.085
v3.20.2
Nature of Operations and Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2019
Accounting Policies [Abstract]  
Nature of Operations and Summary of Significant Accounting Policies
Nature of Operations and Summary of Significant Accounting Policies

Nature of Operations

Hamilton Beach Brands Holding Company is an operating holding company and operates through its two wholly-owned subsidiaries Hamilton Beach Brands, Inc. (“HBB”) and The Kitchen Collection, LLC (“KC”) (collectively “Hamilton Beach Holding” or the “Company”). On October 10, 2019, the Company’s board of directors (the “Board”) approved the wind down of KC and its retail operations. By December 31, 2019, all KC stores were closed and the reportable segment qualifies to be reported as discontinued operations. On January 21, 2020, the Board approved the dissolution of the KC legal entity and a Certificate of Dissolution of Ohio Limited Liability Company was filed with the Ohio Secretary of State. See Note 3 for further information on discontinued operations.

The only material assets held by Hamilton Beach Brands Holding Company are its investments in its consolidated subsidiaries. Substantially all of its cash flows are provided by dividends paid or distributions made by its subsidiaries. Hamilton Beach Brands Holding Company has not guaranteed any obligations of its subsidiaries.

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. HBB operates in the consumer, commercial and specialty small appliance markets.

On September 29, 2017, NACCO Industries, Inc. ("NACCO"), Hamilton Beach Holding's former parent company, spun-off the Company to NACCO stockholders. In the spin-off, NACCO stockholders, in addition to retaining their shares of NACCO common stock, received one share of Hamilton Beach Brands Holding Company Class A common stock ("Class A Common") and one share of Hamilton Beach Brands Holding Company Class B common stock ("Class B Common") for each share of NACCO Class A or Class B common stock. In accordance with applicable authoritative accounting guidance, the Company accounted for the spin-off from NACCO based on the historical carrying value of assets and liabilities. As a result of the distribution of one share of Class A Common and one share of Class B Common for each share of NACCO Class A or NACCO Class B common stock, the earnings per share amounts for the Company for periods prior to the spin-off have been calculated based upon the number of shares distributed in the spin-off. NACCO did not receive any proceeds from the spin-off.

Basis of Presentation and Principles of Consolidation

The accompanying consolidated financial statements include the financial statements of the Company and have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Intercompany balances and transactions have been eliminated.

Prior period non-trade customer receivable amounts of $9.5 million have been reclassified from trade receivables, net to prepaid expenses and other current assets to conform to the current period presentation.

Segment Information

As of December 31, 2019, HBB is the Company’s single reportable operating segment. This is supported by the operational structure of HBB which is designed and managed to share resources across the entire suite of products offered by the business. Such resources include research and development, product design, marketing, operations, and administrative functions. The Company's chief operating decision maker does not regularly review financial information for individual product categories, sales channels, or geographic regions that would allow decisions to be made about allocation of resources or performance. Since the Company operates in one reportable segment, all required financial segment information can be found in the consolidated financial statements.

Discontinued Operations

A component of an entity that is disposed of by sale or abandonment is reported as discontinued operations if the transaction represents a strategic shift that will have a major effect on an entity's operations and financial results. The results of discontinued operations are aggregated and presented separately in the Consolidated Statement of Operations. Assets and liabilities of the discontinued operations are aggregated and reported separately as assets and liabilities of discontinued operations in the Consolidated Balance Sheet, including the comparative prior year period. KC’s cash flows are reflected as cash flows from discontinued operations within the Company’s Consolidated Statements of Cash Flows for each period presented.

Amounts presented in discontinued operations have been derived from our consolidated financial statements and accounting records using the historical basis of assets, liabilities, and historical results of KC. The discontinued operations exclude general corporate allocations.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses and disclosure of contingent assets and liabilities (if any). Actual results could differ from those estimates.

Cash and Cash Equivalents

Cash and cash equivalents include cash in banks and highly liquid investments with original maturities of three months or less.

Trade Receivables

Allowances for doubtful accounts are maintained against trade receivables for estimated losses resulting from the inability of customers to make required payments. These allowances are based on both recent trends of certain customers estimated to be a greater credit risk as well as general trends of the entire customer pool. Accounts are written off against the allowance when it becomes evident collection will not occur.
HBB maintains significant trade receivables balances with several large retail customers. At December 31, 2019 and 2018, receivables from HBB’s five largest customers represented 69% and 57%, respectively, of HBB's net trade receivables. HBB’s significant credit concentration is uncollateralized; however, historically, minimal credit losses have been incurred.

Transfer of Financial Assets

HBB has entered into an arrangement with a financial institution to sell certain U.S. trade receivables on a non-recourse basis. HBB utilizes this arrangement as an integral part of financing working capital.  Under the terms of the agreement, HBB 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, HBB derecognized $162.7 million, $165.4 million, and $164.0 million of trade receivables during 2019, 2018 and 2017, respectively.  The losses incurred on sold receivables in the consolidated results of operations for the years ended December 31, 2019, 2018, and 2017 were not material. The Company does not carry any servicing assets or liabilities. Cash proceeds from this arrangement are reflected as operating activities.

Inventory

Inventory is stated at the lower of cost or net realizable value with cost determined under the first-in, first-out (“FIFO”) method. Adjustments to the carrying value are recorded for estimated obsolescence or excess inventory equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions.

Property, Plant and Equipment

Property, plant and equipment are measured at cost less accumulated depreciation, amortization and accumulated impairment losses. Depreciation and amortization are recorded generally using the straight-line method over the estimated useful lives of the assets. Estimated lives for buildings are up to 40 years, and for machinery, equipment and furniture and fixtures range from three to seven years. Leasehold improvements are depreciated over the shorter of the estimated useful life or the term of the lease. The units-of-production method is used to amortize certain tooling for sourced products. Costs incurred to develop software for internal use are capitalized and amortized over the estimated useful life of the software. Gains or losses from the sale of assets are included in selling, general and administrative expenses. Repairs and maintenance are charged to expense as incurred. Interest is capitalized for qualifying long-term capital asset projects as a part of the historical cost of acquiring the asset.

The Company evaluates long-lived assets for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets to be held and used is measured by a comparison of the carrying amount of the asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount exceeds the fair value of the asset. Fair value is estimated at the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Goodwill and Intangible Assets

Goodwill represents the excess of the purchase price of all acquisitions over the estimated fair value of the net assets acquired. Goodwill is not amortized but evaluated at least annually for impairment. The Company conducts its annual test for impairment as of October 1 of each year and it may be conducted more frequently if changes in circumstances or the occurrence of events indicates that a potential impairment exists.  Using a qualitative assessment in the current year, the Company determined that it was not more-likely-than-not that the goodwill was impaired and a quantitative test for impairment was not required.

Intangible assets with finite lives are amortized over their estimated useful lives, which represent the period over which the asset is expected to contribute directly or indirectly to future cash flows. Intangible assets with finite lives are reviewed for impairment whenever events and circumstances indicate the carrying value of such assets may not be recoverable and exceed their fair value. If an impairment loss exists, the carrying amount of the intangible asset is adjusted to a new cost basis. The new cost basis is amortized over the remaining useful life of the asset.

No impairment has been recognized for identifiable intangible assets or goodwill for any period presented.

Environmental Liabilities

HBB and environmental consultants are investigating or remediating historical environmental contamination at some current and former sites operated by HBB or by businesses it acquired. Liabilities for environmental matters are recorded in the period when it is determined to be probable and reasonably estimable that the Company will incur costs. When only a range of amounts is reasonably estimable and no amount within the range is more probable than another, the Company records the low end of the range. Environmental liabilities are recorded on an undiscounted basis and recorded in selling, general, and administrative expenses. When recovery of a portion of an environmental liability is probable, such amounts are recognized as a reduction to selling, general, and administrative expenses and included in prepaid expenses and other current assets (current portion) and other non-current assets until settled.

Revenue Recognition

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. Sales taxes are excluded from revenue. At contract inception, the Company assesses the goods and services promised in its contracts with customers and identifies a performance obligation for each promised good or service that is distinct. The Company has elected to account for shipping and handling activities performed after a customer obtains control of the goods as activities to fulfill the promise to transfer the goods, and therefore these activities are not assessed as a separate service to customers. The amount of revenue recognized varies primarily with changes in returns. In addition, the Company offers price concessions to our customers for incentive offerings, special pricing agreements, price competition, promotions or other volume-based arrangements. We determine whether price concessions offered to its customers are a reduction of the transaction price and revenue or are advertising expense, depending on whether we receive a distinct good or service from our customers and, if so, whether we can reasonably estimate the fair value of that distinct good or service. We evaluated such agreements with our customers and determined they should be accounted for as variable consideration. As of December 31, 2019, we have determined that customer price concessions recorded as a reduction of revenue, certain of which were previously recorded in other current liabilities, meet all of the criteria specified in ASC 210-20, "Balance Sheet Offsetting". Accordingly, amounts related to such arrangements have been classified as a reduction of trade receivables, net as of December 31, 2019 (prior periods have not been adjusted as all the criteria in ASC 210-20 had not previously been met).

To estimate variable consideration, the Company applies both the expected value method and most likely amount method based on the form of variable consideration, according to which method would provide the better prediction. The expected value method involves a probability weighted determination of the expected amount, whereas the most likely amount method identifies the single most likely outcome in a range of possible amounts.

Product Development Costs

Expenses associated with the development of new products and changes to existing products are charged to expense as incurred. These costs, included in selling, general and administrative expenses, amounted to $12.1 million, $11.0 million, and $10.4 million in 2019, 2018, and 2017, respectively.

Foreign Currency

Assets and liabilities of foreign operations are translated into U.S. dollars at the fiscal year-end exchange rate. Revenue and expenses of all foreign operations are translated using average monthly exchange rates prevailing during the year. The related translation adjustments, including translation on long-term intra-entity foreign currency transactions, are recorded as a separate component of stockholders’ equity.

Financial Instruments

Financial instruments held by the Company include cash and cash equivalents, trade receivables, accounts payable, revolving credit agreements, interest rate swap agreements and forward foreign currency exchange contracts. The Company does not hold or issue financial instruments or derivative financial instruments for trading purposes. Interest rate swap agreements and forward foreign currency exchange contracts held by the Company have been designated as hedges of forecasted cash flows. The Company holds these derivative contracts with high-quality financial institutions and limits the amount of credit exposure to any one institution. The Company does not currently hold any nonderivative instruments designated as hedges or any derivatives designated as fair value hedges.

The Company uses forward foreign currency exchange contracts to partially reduce risks related to transactions denominated in foreign currencies. The Company offsets fair value amounts related to foreign currency exchange contracts executed with the same counterparty. These contracts hedge firm commitments and forecasted transactions relating to cash flows associated with sales and purchases denominated in currencies other than the subsidiaries’ functional currencies. Changes in the fair value of forward foreign currency exchange contracts that are effective as hedges are recorded in accumulated other comprehensive income (loss) (“AOCI”). Deferred gains or losses are reclassified from AOCI to the Consolidated Statements of Operations in the same period as the gains or losses from the underlying transactions are recorded and are generally recognized in cost of sales. The ineffective portion of derivatives that are classified as hedges is immediately recognized in earnings and generally recognized in cost of sales.

The Company uses interest rate swap agreements to partially reduce risks related to floating rate financing agreements that are subject to changes in the market rate of interest. Terms of the interest rate swap agreements require the Company to receive a variable interest rate and pay a fixed interest rate. The Company’s interest rate swap agreements and its variable rate financings are predominately based upon LIBOR (London Interbank Offered Rate). Changes in the fair value of interest rate swap agreements that are effective as hedges are recorded in AOCI. Deferred gains or losses are reclassified from AOCI to the Consolidated Statements of Operations in the same period as the gains or losses from the underlying transactions are recorded and are generally recognized in interest expense, net. The ineffective portion of derivatives that are classified as hedges is immediately recognized in earnings and included in interest expense, net. The Company periodically enters into foreign currency exchange contracts that do not meet the criteria for hedge accounting. These derivatives are used to reduce the Company’s exposure to foreign currency risk related to forecasted purchase or sales transactions or forecasted intercompany cash payments or settlements. Gains and losses on these derivatives are included in other expense, net.

Cash flows from hedging activities are reported in the Consolidated Statements of Cash Flows in the same classification as the hedged item, generally as a component of cash flows from operations.

Fair Value Measurements

The Company defines the fair value measurement of its financial assets and liabilities as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

A fair value hierarchy requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value.

Described below are the three levels of inputs that may be used to measure fair value:

Level 1 - Quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities.
Level 2 - Observable prices that are based on inputs not quoted on active markets, but corroborated by market data.
Level 3 - Unobservable inputs are used when little or no market data is available.

The hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The classification of fair value measurements within the hierarchy is based upon the lowest level of input that is significant to the measurement.

Stock Compensation

Pursuant to the Executive Long-Term Equity Incentive Plan (the "Executive Plan") established in September 2017, the Company grants stock of Class A Common, subject to transfer restrictions, as a means of retaining and rewarding selected employees for long-term performance. Stock awarded under the Executive Plan are fully vested and entitle the stockholder to all rights of common stock ownership except that shares may not be assigned, pledged or otherwise transferred during the restriction period. In general, the restriction period ends after three, five or ten years from the award date or at the earliest of (i) three years after the participant's retirement date, or (ii) the participant's death or permanent disability. The Company issued 118,688 and 5,512 shares of stock of Class A Common in the years ended December 31, 2019 and 2018, respectively. No stock was issued in the year ended December 31, 2017 under the Executive Plan. Stock compensation expense related to the Executive Plan was $1.6 million and $2.7 million for the years ended December 31, 2019 and 2018, respectively, and was based on the fair value of Class A Common on the grant date.
Treasury Stock

The Company records the aggregate purchase price of treasury stock at cost and includes treasury stock as a reduction to stockholders' equity.

Income Taxes

Tax law requires certain items to be included in the tax return at different times than the items are reflected in the financial statements. Some of these differences are permanent, such as expenses that are not deductible for tax purposes, and some differences are temporary, reversing over time, such as depreciation expense. These temporary differences create deferred tax assets and liabilities using currently enacted tax rates. The objective of accounting for income taxes is to recognize the amount of taxes payable or refundable for the current year, and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in the financial statements or tax returns. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the provision for income taxes in the period that includes the enactment date. Management is required to estimate the timing of the recognition of deferred tax assets and liabilities, make assumptions about the future deductibility of deferred tax assets and assess deferred tax liabilities based on enacted law and tax rates for the appropriate tax jurisdictions to determine the amount of such deferred tax assets and liabilities. Changes in the calculated deferred tax assets and liabilities may occur in certain circumstances, including statutory income tax rate changes, statutory tax law changes, or changes in the Company's structure or tax status.

The Company's tax assets, liabilities, and tax expense are supported by historical earnings and losses and the Company's best estimates and assumptions of future earnings. The Company assesses whether a valuation allowance should be established against the Company's deferred tax assets based on consideration of all available evidence, both positive and negative, using a more likely than not standard. This assessment considers, among other matters, scheduled reversals of deferred tax liabilities, projected future taxable income, tax-planning strategies, and results of recent operations. The assumptions about future taxable income require significant judgment and are consistent with the plans and estimates the Company is using to manage the underlying businesses. When the Company determines, based on all available evidence, that it is more likely than not that deferred tax assets will not be realized, a valuation allowance is established.

Accounting Standards Adopted

In March 2017, the FASB issued ASU 2017-07, "Compensation - Retirement Benefits (Topic 715)," which amends the requirements in 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 $0.7 million and $0.9 million of net periodic pension income for the years end December 31, 2018, and 2017, 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, 2020, and interim periods within fiscal years beginning after December 15, 2021. Early adoption is permitted. The Company is planning to adopt ASU 2016-02 for its year ending December 31, 2021 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, 2021, and interim periods within fiscal years beginning after December 15, 2021. Early adoption is permitted. The Company is planning to adopt ASU 2016-03 for its year ending December 31, 2022 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.
v3.20.2
Restatement and Revision of Previously Issued Consolidated Financial Statements
12 Months Ended
Dec. 31, 2019
Accounting Changes and Error Corrections [Abstract]  
Restatement and Revision of Previously Issued Consolidated Financial Statements
Restatement of Previously Issued Consolidated Financial Statements

Restatement
During the quarter ended March 31, 2020, the Company discovered certain accounting irregularities at its Mexican subsidiaries. The Company’s Audit Review Committee commenced an internal investigation, with the assistance of outside counsel and other third party experts. As a result of this investigation, the Company, along with the Audit Review Committee and its third party experts, concluded that certain former employees of one of the Company’s Mexican subsidiaries engaged in unauthorized transactions with the Company’s Mexican subsidiaries that resulted in expenditures being deferred on the balance sheet beyond the period for which the costs pertained. As a result, the Company recorded a non-cash write-off for certain amounts included in the Company’s historical consolidated financial statements in trade receivables and prepaid expenses and other current assets, among other corrections, related to these transactions, and restated its consolidated financial statements as of and for the years ended December 31, 2019, 2018, and 2017 and each of the quarters during the years ended December 31, 2019 and 2018. During the course of the investigation, certain expenses at the Company's Mexican subsidiaries were found to be incorrectly classified within the consolidated statement of operations and have also been corrected in the restatement. These misstatements are described in restatement reference (a) through (d) below. The restated interim financial information for the relevant unaudited interim financial information for the quarterly periods of 2019 and 2018, is included in Note 16, Quarterly Results of Operations (Unaudited).
The restatement also includes corrections for other errors identified as immaterial, individually and in the aggregate, to our consolidated financial statements.


Description of Misstatements

(a) Write-off of Assets: Certain former employees of one of the Company's Mexican subsidiaries engaged in unauthorized transactions with the Company’s Mexican subsidiaries and vendors in which the employees had an interest. In doing so, expenditures were deferred on the balance sheet beyond the period for which the costs pertained. The amounts were recorded as trade receivables, prepaid expenses and other current assets, and reductions in accrued liabilities. The amounts have been written off to selling, general and administrative expenses. Where these write-offs caused the balance in prepaid expenses and other current assets to become a liability, the balance has been reclassified from prepaid expenses and other assets to other current liabilities.

(b) Reversal of Revenue: Certain former employees of one of our Mexican subsidiaries engaged in sales activities to customers in which the employees had an interest. The Company concluded that these unauthorized transactions did not meet the criteria for revenue recognition at the time of sale and the revenue has been reversed.

(c) Correction of misclassification of Selling and Marketing Expenses: Certain former employees of one of our Mexican subsidiaries engaged a third-party, in which the employees had an interest, to perform selling and marketing activities on behalf of the Mexican subsidiaries. Amounts paid for the selling and marketing activities had previously been treated as variable consideration and reflected as a reduction to revenue; however, the amounts should be reflected as selling, general and administrative expenses.

(d) Correction for the timing of recognition of customer price concessions: Customer price concessions at our Mexican subsidiaries were not accrued timely in order to obscure the increased expenses due to unauthorized transactions as described above.

    
(e) Tax adjustments for corrections: The tax impacts of the corrections have been recorded.

(f) Correction of other immaterial errors

Description of Restatement Tables

The following tables present the impact of the restatement on our previously reported consolidated statements of operations, statements of comprehensive income (loss), balance sheets, statements of equity, and statements of cash flows for the years ended December 31, 2019 and December 31, 2018 and the impact of the restatement on our previously reported consolidated statements of operations, statements of comprehensive income (loss), statements of equity, and statements of cash flows for the year ended December 31, 2017. The values as previously reported were derived from our Annual Report on Form 10-K for the fiscal year ended December 31, 2019 filed on February 26, 2020.
CONSOLIDATED STATEMENTS OF OPERATIONS
 
Year Ended December 31, 2019
 
As Previously Reported
 
Restatement Impacts
 
Restatement References
 
As Restated
 
(In thousands, except per share data)
Revenue
$
612,843

 
$
(1,057
)
 
a,b,c,d,f
 
$
611,786

Cost of sales
483,298

 
(64
)
 
f
 
483,234

Gross profit
129,545

 
(993
)
 

 
128,552

Selling, general and administrative expenses
91,302

 
9,079

 
a,c,f
 
100,381

Amortization of intangible assets
1,377

 

 

 
1,377

Operating profit
36,866

 
(10,072
)
 

 
26,794

Interest expense, net
2,975

 

 

 
2,975

Other expense (income), net
(502
)
 
144

 
f
 
(358
)
Income from continuing operations before income taxes
34,393

 
(10,216
)
 

 
24,177

Income tax expense
9,315

 
(231
)
 
e
 
9,084

Net income from continuing operations
25,078

 
(9,985
)
 

 
15,093

Loss from discontinued operations, net of tax
(28,600
)
 

 

 
(28,600
)
Net income (loss)
$
(3,522
)
 
$
(9,985
)
 

 
$
(13,507
)
 

 

 

 

Basic and diluted earnings (loss) per share:


 


 

 


Continuing operations
$
1.83

 
$
(0.73
)
 

 
$
1.10

Discontinued operations
(2.09
)
 

 

 
(2.09
)
Basic and diluted earnings (loss) per share
$
(0.26
)
 
$
(0.73
)
 

 
$
(0.99
)
 


 


 

 


Basic weighted average shares outstanding
13,690

 


 

 
13,690

Diluted weighted average shares outstanding
13,726

 


 

 
13,726

(a) Write-off of Assets: The correction of these misstatements resulted in a decrease to revenue of $0.4 million and an increase to selling, general and administrative ("SG&A") expense of $6.9 million
(b) Reversal of Revenue: The correction of these misstatements resulted in a decrease to revenue of $1.1 million
(c) Correction of misclassification of Selling and Marketing Expenses: The correction of these misstatements resulted in an increase to revenue and an increase to SG&A expense of $1.6 million
(d) Correction for the timing of recognition of customer price concessions: The correction of these misstatements resulted in a decrease to revenue of $1.3 million
(e) Tax adjustments for corrections: The correction of these misstatements resulted in a decrease to income tax expense of $0.2 million
(f) Correction of other immaterial errors: The correction of these misstatements resulted in an increase to revenue of $0.1 million, a decrease to cost of sales of $0.1 million, an increase to SG&A expense of $0.6 million, and an increase in other expense of $0.1 million


CONSOLIDATED STATEMENTS OF OPERATIONS
 
Year Ended December 31, 2018
 
As Previously Reported
 
Restatement Impacts
 
Restatement References
 
As Restated
Revenue
$
629,710

 
$
372

 
c,f
 
$
630,082

Cost of sales
492,195

 
(1,165
)
 
f
 
491,030

Gross profit
137,515

 
1,537

 
 
 
139,052

Selling, general and administrative expenses
97,964

 
6,157

 
a,c,f
 
104,121

Amortization of intangible assets
1,381

 

 
 
 
1,381

Operating profit
38,170

 
(4,620
)
 
 
 
33,550

Interest expense, net
2,916

 

 
 
 
2,916

Other expense (income), net
293

 
(144
)
 
f
 
149

Income from continuing operations before income taxes
34,961

 
(4,476
)
 
 
 
30,485

Income tax expense
7,816

 
(390
)
 
e
 
7,426

Net income from continuing operations
27,145

 
(4,086
)
 
 
 
23,059

Loss from discontinued operations, net of tax
(5,361
)
 

 
 
 
(5,361
)
Net income (loss)
$
21,784

 
$
(4,086
)
 
 
 
$
17,698

 

 


 
 
 

Basic and diluted earnings (loss) per share:


 



 
 
 


Continuing operations
$
1.98

 
$
(0.30
)
 
 
 
$
1.68

Discontinued operations
(0.39
)
 

 
 
 
(0.39
)
Basic and diluted earnings (loss) per share
$
1.59

 
$
(0.30
)
 
 
 
$
1.29

 


 



 
 
 


Basic weighted average shares outstanding
13,699

 


 
 
 
13,699

Diluted weighted average shares outstanding
13,731

 


 
 
 
13,731


(a) Write-off of Assets: The correction of these misstatements resulted in an increase to selling, general and administrative ("SG&A") expense of $4.9 million
(c) Correction of misclassification of Selling and Marketing Expenses: The correction of these misstatements resulted in an increase to revenue and an increase to SG&A expense of $1.5 million
(e) Tax adjustments for corrections: The correction of these misstatements resulted in a decrease to income tax expense of $0.4 million
(f) Correction of other immaterial errors: The correction of these misstatements resulted in a decrease to revenue of $1.1 million, a decrease to cost of sales of $1.2 million, a decrease to SG&A expense of $0.2 million, and a decrease in other expense of $0.1 million


CONSOLIDATED STATEMENTS OF OPERATIONS
 
Year Ended December 31, 2017
 
As Previously Reported
 
Restatement Impacts
 
Restatement References
 
As Restated
Revenue
$
612,229

 
$
(173
)
 
c,d,f
 
$
612,056

Cost of sales
477,220

 
(1,281
)
 
f
 
475,939

Gross profit
135,009

 
1,108

 
 
 
136,117

Selling, general and administrative expenses
93,700

 
3,080

 
a,c,f
 
96,780

Amortization of intangible assets
1,381

 

 
 
 
1,381

Operating profit
39,928

 
(1,972
)
 
 
 
37,956

Interest expense, net
1,572

 

 
 
 
1,572

Other expense (income), net
(692
)
 

 
 
 
(692
)
Income from continuing operations before income taxes
39,048

 
(1,972
)
 
 
 
37,076

Income tax expense
18,918

 
49

 
e
 
18,967

Net income from continuing operations
20,130

 
(2,021
)
 
 
 
18,109

Loss from discontinued operations, net of tax
(2,225
)
 

 
 
 
(2,225
)
Net income (loss)
$
17,905

 
$
(2,021
)
 
 
 
$
15,884

 

 


 
 
 

Basic and diluted earnings (loss) per share:


 



 
 
 


Continuing operations
$
1.47

 
$
(0.15
)
 
 
 
$
1.32

Discontinued operations
(0.16
)
 

 
 
 
(0.16
)
Basic and diluted earnings (loss) per share
$
1.31

 
$
(0.15
)
 
 
 
$
1.16

 


 



 
 
 


Basic weighted average shares outstanding
13,673

 


 
 
 
13,673

Diluted weighted average shares outstanding
13,685

 


 
 
 
13,685

(a) Write-off of Assets: The correction of these misstatements resulted in an increase to selling, general and administrative ("SG&A") expense of $1.3 million
(c) Correction of misclassification of Selling and Marketing Expenses: The correction of these misstatements resulted in an increase to revenue and an increase to SG&A expense of $1.6 million
(d) Correction for the timing of recognition of customer price concessions: The correction of these misstatements resulted in a decrease to revenue of $0.3 million
(e) Tax adjustments for corrections: The correction of these misstatements resulted in an increase to income tax expense of $0.1 million
(f) Correction of other immaterial errors: The correction of these misstatements resulted in a decrease to revenue of $1.5 million, a decrease to cost of sales of $1.3 million, and an increase to SG&A expense of $0.2 million
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
 
Year Ended December 31, 2019
 
As Previously Reported
 
Restatement Impacts
 
As Restated
 
(In thousands)
Net income (loss)
$
(3,522
)
 
$
(9,985
)
 
$
(13,507
)
Other comprehensive income (loss), net of tax:


 

 


Foreign currency translation adjustment
1,101

 
(591
)
 
510

(Loss) gain on long-term intra-entity foreign currency transactions
(79
)
 

 
(79
)
Cash flow hedging activity
(1,713
)
 
144

 
(1,569
)
Reclassification of hedging activities into earnings
349

 

 
349

Pension plan adjustment
1,410

 

 
1,410

Reclassification of pension adjustments into earnings
254

 
94

 
348

Total other comprehensive income (loss), net of tax
1,322

 
(353
)
 
969

Comprehensive income (loss)
$
(2,200
)
 
$
(10,338
)
 
$
(12,538
)
See description of the net income (loss) impacts in the consolidated statement of operations for the year ended December 31, 2019 section above.
The decrease to foreign currency translation adjustments is the result of the translation impacts of restatements in the write-off of assets, reversal of revenue and timing of recognition of customer pricing concessions categories.
The increases to cash flow hedging and the reclassification of pension adjustments are from the correction of other immaterial errors.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
 
Year Ended December 31, 2018
 
As Previously Reported
 
Restatement Impacts
 
As Restated
Net income (loss)
$
21,784

 
$
(4,086
)
 
$
17,698

Other comprehensive income (loss), net of tax:


 

 


Foreign currency translation adjustment
(159
)
 
86

 
(73
)
(Loss) gain on long-term intra-entity foreign currency transactions
(1,006
)
 

 
(1,006
)
Cash flow hedging activity
244

 
(144
)
 
100

Reclassification of hedging activities into earnings
153

 

 
153

Pension plan adjustment
(1,920
)
 

 
(1,920
)
Reclassification of pension adjustments into earnings
650

 
(94
)
 
556

Total other comprehensive loss, net of tax
(2,038
)
 
(152
)
 
(2,190
)
Comprehensive income (loss)
$
19,746

 
$
(4,238
)
 
$
15,508


See description of the net income (loss) impacts in the consolidated statement of operations for the year ended December 31, 2018 section above.
The increase to foreign currency translation adjustments is the result of the translation impacts of restatements in the write-off of assets category.
The decreases to cash flow hedging and the reclassification of pension adjustments are from the correction of other immaterial errors.


CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
 
Year Ended December 31, 2017
 
As Previously Reported
 
Restatement Impacts
 
As Restated
Net income (loss)
$
17,905

 
$
(2,021
)
 
$
15,884

Other comprehensive income (loss), net of tax:


 

 


Foreign currency translation adjustment
689

 
(41
)
 
648

(Loss) gain on long-term intra-entity foreign currency transactions

 

 

Cash flow hedging activity
(749
)
 

 
(749
)
Reclassification of hedging activities into earnings
641

 

 
641

Pension plan adjustment
1,510

 

 
1,510

Reclassification of pension adjustments into earnings
306

 

 
306

Total other comprehensive income (loss), net of tax
2,397

 
(41
)
 
2,356

Comprehensive income (loss)
$
20,302

 
$
(2,062
)
 
$
18,240

See description of the net income (loss) impacts in the consolidated statement of operations for the year ended December 31, 2017 section above.
The decrease to foreign currency translation adjustments is the result of the translation impacts of restatements in the write-off of assets category.
CONSOLIDATED BALANCE SHEETS

December 31, 2019
 
As Previously Reported

Restatement Impacts

Restatement Reference

As Restated
 
(In thousands)
Assets
 

 




Current assets
 

 




Cash and cash equivalents
$
2,142


$




$
2,142

Trade receivables, net
113,781


(5,400
)

a,b,d

108,381

Inventory
109,621


185


f

109,806

Prepaid expenses and other current assets
23,102


(11,757
)

a,b,f

11,345

Current assets of discontinued operations
5,383






5,383

Total current assets
254,029


(16,972
)



237,057

Property, plant and equipment, net
22,324






22,324

Goodwill
6,253






6,253

Other intangible assets, net
3,141






3,141

Deferred income taxes
3,853


2,395


e

6,248

Deferred costs
10,941






10,941

Other non-current assets
2,085






2,085

Non-current assets of discontinued operations
614






614

Total assets
$
303,240


$
(14,577
)



$
288,663

Liabilities and stockholders' equity







Current liabilities







Accounts payable
$
111,117


$
231


f

$
111,348

Accounts payable to NACCO Industries, Inc.
496






496

Revolving credit agreements
23,497






23,497

Accrued compensation
14,277


750


f

15,027

Accrued product returns
8,697






8,697

Other current liabilities
12,873


(339
)

a,e

12,534

Current liabilities of discontinued operations
29,723






29,723

Total current liabilities
200,680


642




201,322

Revolving credit agreements
35,000






35,000

Other long-term liabilities
12,501


3,574


e

16,075

Total liabilities
248,181


4,216




252,397

Stockholders’ equity







Preferred stock, par value $0.01 per share







Class A Common stock, par value $0.01 per share; 9,805 shares issued as of December 31, 2019
98






98

Class B Common stock, par value $0.01 per share, convertible into Class A on a one-for-one basis; 4,076 shares issued as of December 31, 2019
41






41

Capital in excess of par value
54,344


165


f

54,509

Treasury stock
(5,960
)





(5,960
)
Retained earnings
22,524


(18,814
)

a,b,d,e,f

3,710

Accumulated other comprehensive loss
(15,988
)

(144
)

a,b,d,e

(16,132
)
Total stockholders’ equity
55,059


(18,793
)



36,266

Total liabilities and stockholders' equity
$
303,240


$
(14,577
)



$
288,663


(a) Write-off of Assets: The correction of these misstatements resulted in a decrease to trade receivables of $2.5 million, a reduction to prepaid expenses and other current assets of $12.4 million, and an increase to other current liabilities of $0.9 million
(b) Reversal of Revenue: The correction of these misstatements resulted in a decrease to trade receivables of $1.3 million and an increase to prepaid expenses and other current assets of $0.2 million
(d) Correction for the timing of recognition of customer price concessions: The correction of these misstatements resulted in a decrease to trade receivables of $1.6 million
(e) Tax adjustments for corrections: The correction of these misstatements resulted in an increase to deferred income taxes of $2.4 million, a decrease to other current liabilities of $1.2 million, and an increase to other long-term liabilities of $3.6 million
(f) Correction of other immaterial errors: The correction of these misstatements resulted in an increase to prepaid expenses and other current assets of $0.5 million, an increase to inventory of $0.2 million, an increase to accounts payable of $0.2 million, an increase to accrued compensation of $0.7 million, and an increase to capital in excess of par of $0.2 million


CONSOLIDATED BALANCE SHEETS
`
December 31, 2018
 
As Previously Reported
 
Restatement Impacts
 
Restatement Reference
 
As Restated
Assets
 
 
 
 
 
 
 
Current assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
4,420

 
$

 
 
 
$
4,420

Trade receivables, net
100,821

 
(2,460
)
 
a,f