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Leases

12 Months Ended

Dec. 31, 2024

Leases [Abstract]

Leases

Leases

We recognize 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 2036. The majority of our leases are operating leases. NACCO does not recognize leases with a term of 12 months or less on the balance sheet. Instead, we recognize the related lease expense on a straight-line basis over the lease term. We account for lease and non-lease components as a single lease component. Our 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			2024			2023
Assets
Operating			Operating lease right-of-use assets			$	9,661		$	8,667
Finance			Property, plant and equipment, net (a)			79			107
Liabilities
Current
Operating			Other current liabilities			$	1,973		$	1,485
Finance			Current maturities of long-term debt			27			28
Non-current
Operating			Operating lease liabilities			$	9,042		$	8,782
Finance			Long-term debt			57			84

(a) Finance leased assets are recorded net of accumulated amortization of less than $0.1 million as of December 31, 2024 and December 31, 2023.

The components of lease expense for the years ended December 31 are as follows:

Description			Location			2024			2023
Lease expense
Operating lease cost			Selling, general and administrative expenses			$	2,191		$	1,712
Finance lease cost:
Amortization of leased assets			Cost of sales			28			61
Interest on lease liabilities			Interest expense			8			7
Variable lease expense			Selling, general and administrative expenses			955			572
Short-term lease expense			Selling, general and administrative expenses			5,808			3,214
Total lease expense						$	8,990		$	5,566

Future minimum finance and operating lease payments were as follows at December 31, 2024:

			Finance Leases						Operating Leases						Total
2025			$	33					$	2,769					$	2,802
2026			33						2,441						2,474
2027			21						1,801						1,822
2028			9						1,822						1,831
2029			—						1,536						1,536
Subsequent to 2029			—						3,940						3,940
Total minimum lease payments			96						14,309						$	14,405
Amounts representing interest			12						3,294
Present value of net minimum lease payments			$	84					$	11,015

As most of our leases do not provide an implicit rate, we determine the incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. We consider our 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:

			2024			2023
Weighted average remaining lease term (years)
Operating			6.70			6.81
Finance			3.01			3.97
Weighted average discount rate
Operating			8.26		%	8.13		%
Finance			8.80		%	8.69		%

The following table details cash paid for amounts included in the measurement of lease liabilities for the years ended December 31:

			2024			2023
Operating cash flows from operating leases			$	2,509		$	1,823
Operating cash flows from finance leases			8			7
Financing cash flows from finance leases			25			786

Leases

Leases

We recognize 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 2036. The majority of our leases are operating leases. NACCO does not recognize leases with a term of 12 months or less on the balance sheet. Instead, we recognize the related lease expense on a straight-line basis over the lease term. We account for lease and non-lease components as a single lease component. Our 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			2024			2023
Assets
Operating			Operating lease right-of-use assets			$	9,661		$	8,667
Finance			Property, plant and equipment, net (a)			79			107
Liabilities
Current
Operating			Other current liabilities			$	1,973		$	1,485
Finance			Current maturities of long-term debt			27			28
Non-current
Operating			Operating lease liabilities			$	9,042		$	8,782
Finance			Long-term debt			57			84

(a) Finance leased assets are recorded net of accumulated amortization of less than $0.1 million as of December 31, 2024 and December 31, 2023.

The components of lease expense for the years ended December 31 are as follows:

Description			Location			2024			2023
Lease expense
Operating lease cost			Selling, general and administrative expenses			$	2,191		$	1,712
Finance lease cost:
Amortization of leased assets			Cost of sales			28			61
Interest on lease liabilities			Interest expense			8			7
Variable lease expense			Selling, general and administrative expenses			955			572
Short-term lease expense			Selling, general and administrative expenses			5,808			3,214
Total lease expense						$	8,990		$	5,566

Future minimum finance and operating lease payments were as follows at December 31, 2024:

			Finance Leases						Operating Leases						Total
2025			$	33					$	2,769					$	2,802
2026			33						2,441						2,474
2027			21						1,801						1,822
2028			9						1,822						1,831
2029			—						1,536						1,536
Subsequent to 2029			—						3,940						3,940
Total minimum lease payments			96						14,309						$	14,405
Amounts representing interest			12						3,294
Present value of net minimum lease payments			$	84					$	11,015

As most of our leases do not provide an implicit rate, we determine the incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. We consider our 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:

			2024			2023
Weighted average remaining lease term (years)
Operating			6.70			6.81
Finance			3.01			3.97
Weighted average discount rate
Operating			8.26		%	8.13		%
Finance			8.80		%	8.69		%

The following table details cash paid for amounts included in the measurement of lease liabilities for the years ended December 31:

			2024			2023
Operating cash flows from operating leases			$	2,509		$	1,823
Operating cash flows from finance leases			8			7
Financing cash flows from finance leases			25			786

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- References

No definition available.

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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

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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

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