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Leases | 12 Months Ended
--- | ---
Dec. 31, 2023
Leases [Abstract] |
Leases | Leases The Company recognizes right-of-use assets (“ROU assets”) and lease liabilities for operating leases of real estate, mining and other equipment that expire at various dates through 2033. The majority of the Company's leases are operating leases. NACCO does not recognize leases with a term of 12 months or less on the balance sheet. Instead, the Company recognizes the related lease expense on a straight-line basis over the lease term. The Company accounts for lease and non-lease components as a single lease component. The Company's lease agreements do not contain lease payments that depend on an index or a rate, as such, minimum lease payments do not include variable lease payments. Leased assets and liabilities include the following at December 31:
Description | Location | 2023 | 2022 |  |  |
Assets |  |  |  |  |  |
Operating | Operating lease right-of-use assets | $ | 8,667 |  | $ | 6,419 |  |  |  |
Finance | Property, plant and equipment, net (a) | 107 |  | 843 |  |  |  |
Liabilities |  |  |  |  |  |
Current |  |  |  |  |  |
Operating | Other current liabilities | $ | 1,485 |  | $ | 1,039 |  |  |  |
Finance | Current maturities of long-term debt | 28 |  | 776 |  |  |  |
Non-current |  |  |  |  |  |
Operating | Operating lease liabilities | $ | 8,782 |  | $ | 7,528 |  |  |  |
Finance | Long-term debt | 84 |  | 19 |  |  |  |
(a) Finance leased assets are recorded net of accumulated amortization of less than $0.1 million and $0.2 million as of December 31, 2023 and December 31, 2022, respectively. The components of lease expense for the years ended December 31 are as follows:
Description | Location | 2023 | 2022
Lease expense |  |  |
Operating lease cost | Selling, general and administrative expenses | $ | 1,712 |  | $ | 1,881 |
Finance lease cost: |  |  |
Amortization of leased assets | Cost of sales | 61 |  | 128 |
Interest on lease liabilities | Interest expense | 7 |  | 13 |
Variable lease expense | Selling, general and administrative expenses | 572 |  | 534 |
Short-term lease expense | Selling, general and administrative expenses | 3,214 |  | 3,434 |
Total lease expense |  | $ | 5,566 |  | $ | 5,990 |
Future minimum finance and operating lease payments were as follows at December 31, 2023:
| Finance Leases |  | Operating Leases |  | Total
2024 | $ | 36 |  |  | $ | 2,238 |  |  | $ | 2,274 |
2025 | 33 |  |  | 2,014 |  |  | 2,047 |
2026 | 33 |  |  | 2,003 |  |  | 2,036 |
2027 | 21 |  |  | 1,593 |  |  | 1,614 |
2028 | 9 |  |  | 1,607 |  |  | 1,616 |
Subsequent to 2028 | — |  |  | 3,935 |  |  | 3,935 |
Total minimum lease payments | 132 |  |  | 13,390 |  |  | $ | 13,522 |
Amounts representing interest | 20 |  |  | 3,123 |  |  |
Present value of net minimum lease payments | $ | 112 |  |  | $ | 10,267 |  |  |
As most of the Company's leases do not provide an implicit rate, the Company determines the incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. The Company considers its credit rating and the current economic environment in determining this collateralized rate. The assumptions used in accounting for ASC 842 for the years ended December 31 are as follows:
| 2023 | 2022
Weighted average remaining lease term (years) |  |
Operating | 6.81 | 7.66
Finance | 3.97 | 1.41
Weighted average discount rate |  |
Operating | 8.13 | % | 7.13 | %
Finance | 8.69 | % | 3.11 | %
The following table details cash paid for amounts included in the measurement of lease liabilities for the years ended December 31:
| 2023 | 2022
Operating cash flows from operating leases | $ | 1,823 |  | $ | 2,097 |
Operating cash flows from finance leases | 7 |  | 13 |
Financing cash flows from finance leases | 786 |  | 183 |
Leases | Leases The Company recognizes right-of-use assets (“ROU assets”) and lease liabilities for operating leases of real estate, mining and other equipment that expire at various dates through 2033. The majority of the Company's leases are operating leases. NACCO does not recognize leases with a term of 12 months or less on the balance sheet. Instead, the Company recognizes the related lease expense on a straight-line basis over the lease term. The Company accounts for lease and non-lease components as a single lease component. The Company's lease agreements do not contain lease payments that depend on an index or a rate, as such, minimum lease payments do not include variable lease payments. Leased assets and liabilities include the following at December 31:
Description | Location | 2023 | 2022 |  |  |
Assets |  |  |  |  |  |
Operating | Operating lease right-of-use assets | $ | 8,667 |  | $ | 6,419 |  |  |  |
Finance | Property, plant and equipment, net (a) | 107 |  | 843 |  |  |  |
Liabilities |  |  |  |  |  |
Current |  |  |  |  |  |
Operating | Other current liabilities | $ | 1,485 |  | $ | 1,039 |  |  |  |
Finance | Current maturities of long-term debt | 28 |  | 776 |  |  |  |
Non-current |  |  |  |  |  |
Operating | Operating lease liabilities | $ | 8,782 |  | $ | 7,528 |  |  |  |
Finance | Long-term debt | 84 |  | 19 |  |  |  |
(a) Finance leased assets are recorded net of accumulated amortization of less than $0.1 million and $0.2 million as of December 31, 2023 and December 31, 2022, respectively. The components of lease expense for the years ended December 31 are as follows:
Description | Location | 2023 | 2022
Lease expense |  |  |
Operating lease cost | Selling, general and administrative expenses | $ | 1,712 |  | $ | 1,881 |
Finance lease cost: |  |  |
Amortization of leased assets | Cost of sales | 61 |  | 128 |
Interest on lease liabilities | Interest expense | 7 |  | 13 |
Variable lease expense | Selling, general and administrative expenses | 572 |  | 534 |
Short-term lease expense | Selling, general and administrative expenses | 3,214 |  | 3,434 |
Total lease expense |  | $ | 5,566 |  | $ | 5,990 |
Future minimum finance and operating lease payments were as follows at December 31, 2023:
| Finance Leases |  | Operating Leases |  | Total
2024 | $ | 36 |  |  | $ | 2,238 |  |  | $ | 2,274 |
2025 | 33 |  |  | 2,014 |  |  | 2,047 |
2026 | 33 |  |  | 2,003 |  |  | 2,036 |
2027 | 21 |  |  | 1,593 |  |  | 1,614 |
2028 | 9 |  |  | 1,607 |  |  | 1,616 |
Subsequent to 2028 | — |  |  | 3,935 |  |  | 3,935 |
Total minimum lease payments | 132 |  |  | 13,390 |  |  | $ | 13,522 |
Amounts representing interest | 20 |  |  | 3,123 |  |  |
Present value of net minimum lease payments | $ | 112 |  |  | $ | 10,267 |  |  |
As most of the Company's leases do not provide an implicit rate, the Company determines the incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. The Company considers its credit rating and the current economic environment in determining this collateralized rate. The assumptions used in accounting for ASC 842 for the years ended December 31 are as follows:
| 2023 | 2022
Weighted average remaining lease term (years) |  |
Operating | 6.81 | 7.66
Finance | 3.97 | 1.41
Weighted average discount rate |  |
Operating | 8.13 | % | 7.13 | %
Finance | 8.69 | % | 3.11 | %
The following table details cash paid for amounts included in the measurement of lease liabilities for the years ended December 31:
| 2023 | 2022
Operating cash flows from operating leases | $ | 1,823 |  | $ | 2,097 |
Operating cash flows from finance leases | 7 |  | 13 |
Financing cash flows from finance leases | 786 |  | 183 |

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
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