Company: NC
Filing Date: 2025-04-07
Form Type: ARS
Source: 0000789933-25-000013
Chunk: 162

Company: NACCO INDUSTRIES INC
Filing Date: 2025-04-07
Form: ARS
Chunk 162
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 balances results from the timing difference between our performance and the customer’s payment. We have no contract assets recognized from the costs to obtain or fulfill a contract with a customer. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NACCO INDUSTRIES, INC. AND SUBSIDIARIES (Tabular Amounts in Thousands, Except Per Share, Percentage Data and Oil and Gas Disclosures) F-19

NOTE 4—Inventories Inventories are summarized as follows: December 31 2024 2023 Coal $ 27,076 $ 23,784 Mining supplies 67,532 53,216 Total inventories $ 94,608 $ 77,000 The weighted average method is used for inventory valuation. During the year ended December 31, 2024 and 2023, we recorded $9.6 million and $7.5 million of inventory impairment charges, respectively, in the line Cost of sales in the accompanying Consolidated Statements of Operations as mining costs exceeded net realizable value of coal inventory at MLMC. NOTE 5—Property, Plant and Equipment, Net Property, plant and equipment, net includes the following: December 31 2024 2023 Coal lands and real estate $ 70,766 $ 58,353 Mineral interests 69,148 68,150 Plant and equipment 317,933 325,655 Property, plant and equipment, at cost 457,847 452,158 Less allowances for depreciation, depletion, amortization and impairment 198,390 228,256 $ 259,457 $ 223,902 Total depreciation, depletion and amortization expense on property, plant and equipment was $24.1 million and $26.4 million during 2024 and 2023, respectively. During 2023, we recorded a non-cash, long-lived asset impairment charge of $65.9 million. See Note 9 for further discussion of the impairment charge. NOTE 6—Intangible Assets We have a coal supply agreement intangible asset which is subject to amortization based on units of production over the term of the lignite sales agreement which expires in 2032. The gross and net balances are set forth in the following table: Gross Carrying Amount Accumulated Amortization and Impairment Net Balance Balance at December 31, 2024 Coal supply agreement $ 84,200 $ (78,725) $ 5,475 Balance at December 31, 2023 Coal supply agreement