Company: NC
Filing Date: 2025-04-07
Form Type: ARS
Source: 0000789933-25-000013
Chunk: 170

Company: NACCO INDUSTRIES INC
Filing Date: 2025-04-07
Form: ARS
Chunk 170
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 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 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-25

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