Company: NC
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0000789933-25-000041
Chunk: 26

Company: NACCO INDUSTRIES INC
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 26
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 accompanying Unaudited Condensed Consolidated Balance Sheets. We recognized a loss of $0.4 million and $1.0 million during the three and six months ended June 30, 2025, respectively, and a loss of $0.5 million and $0.2 million during the three and six months ended June 30, 2024, respectively, related to the investment in these equity securities. 

13

The change in fair value of equity securities is reported on the line (Gain) loss on equity securities in the Other (income) expense section of the Unaudited Condensed Consolidated Statements of Operations. There were no transfers into or out of Levels 1, 2 or 3 during the six months ended June 30, 2025 and 2024.

NOTE 6—Unconsolidated Subsidiaries 

Each of our wholly owned Unconsolidated Subsidiaries, within the Utility Coal Mining and Contract Mining segments, meet the definition of a VIE. The Unconsolidated Subsidiaries are capitalized primarily with debt financing provided by or supported by their respective customers, and generally without recourse to us. Although we own 100% of the equity and manage the daily operations of the Unconsolidated Subsidiaries, we have determined that the equity capital provided by us is not sufficient to adequately finance the ongoing activities or absorb any expected losses without additional support from the customers. The customers have a controlling financial interest and have the power to direct the activities that most significantly affect the economic performance of the entities. As a result, we are not the primary beneficiary and therefore do not consolidate these entities' financial positions or results of operations. See Note 1 for a discussion of these entities.The Investment in the unconsolidated subsidiaries and related tax positions totaled $16.1 million and $14.1 million at June 30, 2025 and December 31, 2024, respectively. Our risk of loss relating to these entities is limited to our invested capital, which was $4.8 million and $5.5 million at June 30, 2025 and December 31, 2024, respectively. Earnings of Unconsolidated Subsidiaries were $12.9 million and $28.3 million during the three and six months ended June 30, 2025, respectively, and $13.5 million and $26.8 million during the three and six months ended June 30, 202