Company: NC
Filing Date: 2025-03-05
Form Type: 10-K
Source: 0000789933-25-000006
Chunk: 126

Company: NACCO INDUSTRIES INC
Filing Date: 2025-03-05
Form: 10-K
Item: Item 7
Chunk 126
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$24,311 $(71,342)   NAMining5,772 3,348    Minerals Management28,927 19,418    Unallocated Items(23,317)(21,461)   Eliminations12 (100)Total operating profit (loss)$35,705 $(70,137)   Interest expense5,566 2,460    Interest income(4,428)(6,081)   Closed mine obligations2,381 3,585    Gain on equity securities(1,805)(1,958)   Other, net 345 (3,985)Other expense (income), net2,059 (5,979)Income (loss) before income tax benefit33,646 (64,158)Income tax benefit(95)(24,571)Net income (loss)$33,741 $(39,587)Effective income tax rate(0.3)%38.3 %

The components of the change in revenues and operating profit are discussed below in Segment Results.

Other expense (income), net

Interest expense increased in 2024 compared with 2023 due to higher average borrowings as well as an increase in interest rates.

Interest income decreased in 2024 compared with 2023 due to lower earnings on reduced cash balances.

Gain on equity securities represents changes in the market price of invested assets reported at fair value. The change during 2024 compared with 2023 was due to fluctuations in the market prices of the exchange-traded equity securities. See Note 9 to the Consolidated Financial Statements in this Form 10-K for further discussion of our invested assets reported at fair value. 

During 2023, our Board of Directors approved the termination of the Combined Defined Benefit Plan and participants were offered lump-sum distributions as part of the termination process. As a result of the lump-sum distributions, we recognized a non-cash, pension settlement charge of $1.8 million in 2023 on the line Other, net within the accompanying Consolidated Statements of Operations. See Note 14 to the Consolidated Financial Statements in this Form 10-K for further information on the Combined Defined Benefit Plan. 

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Table of ContentsItem 7.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSNACCO INDUSTRIES, INC. AND SUBSIDIARIES(Tabular Amounts in Thousands, Except Per Share and