Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 01, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Lumber Liquidators Holdings, Inc. | ||
Entity Central Index Key | 0001396033 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 28,640,264 | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 686.4 | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Cash and Cash Equivalents | $ 11,565 | $ 19,938 |
Merchandise Inventories | 318,272 | 262,280 |
Prepaid Expenses | 6,299 | 9,108 |
Deposit for Legal Settlement | 21,500 | |
Other Current Assets | 8,667 | 6,670 |
Total Current Assets | 366,303 | 297,996 |
Property and Equipment, net | 93,689 | 100,491 |
Goodwill | 9,693 | 9,693 |
Other Assets | 5,832 | 2,615 |
Total Assets | 475,517 | 410,795 |
Current Liabilities: | ||
Accounts Payable | 73,412 | 67,676 |
Customer Deposits and Store Credits | 40,332 | 38,546 |
Accrued Compensation | 9,265 | 12,101 |
Sales and Income Tax Liabilities | 4,200 | 4,273 |
Accrual for Legal Matters and Settlements Current | 97,625 | 36,960 |
Other Current Liabilities | 17,290 | 18,605 |
Total Current Liabilities | 242,124 | 178,161 |
Other Long-Term Liabilities | 20,203 | 19,235 |
Deferred Tax Liability | 792 | 552 |
Revolving Credit Facility | 65,000 | 15,000 |
Total Liabilities | 328,119 | 212,948 |
Stockholders' Equity: | ||
Common Stock ($0.001 par value; 35,000 shares authorized; 31,578 and 31,397 shares issued and 28,627 and 28,490 shares outstanding at December 31, 2018 and 2017, respectively) | 32 | 31 |
Treasury Stock, at cost (2,951 and 2,907 shares, respectively) | (141,828) | (140,875) |
Additional Capital | 213,744 | 208,629 |
Retained Earnings | 76,835 | 131,214 |
Accumulated Other Comprehensive Loss | (1,385) | (1,152) |
Total Stockholders' Equity | 147,398 | 197,847 |
Total Liabilities and Stockholders' Equity | $ 475,517 | $ 410,795 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Common Stock, par value | $ 0.001 | $ 0.001 |
Common Stock, shares authorized | 35,000 | 35,000 |
Common Stock, shares, issued | 31,578 | 31,397 |
Common Stock, shares outstanding | 28,627 | 28,490 |
Treasury Stock, shares | 2,951 | 2,907 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Net Merchandise Sales | $ 955,949 | $ 938,269 | $ 895,612 |
Net Services Sales | 128,687 | 90,664 | 64,976 |
Total Net Sales | 1,084,636 | 1,028,933 | 960,588 |
Cost of Merchandise Sold | 596,411 | 591,087 | 608,834 |
Cost of Services Sold | 95,285 | 68,785 | 47,885 |
Total Cost of Sales | 691,696 | 659,872 | 656,719 |
Gross Profit | 392,940 | 369,061 | 303,869 |
Selling, General and Administrative Expenses | 443,513 | 406,027 | 397,504 |
Operating Loss | (50,573) | (36,966) | (93,635) |
Other Expense | 2,827 | 1,591 | 638 |
Loss Before Income Taxes | (53,400) | (38,557) | (94,273) |
Income Tax Expense (Benefit) | 979 | (734) | (25,710) |
Net Loss | $ (54,379) | $ (37,823) | $ (68,563) |
Net Loss per Common Share—Basic | $ (1.90) | $ (1.33) | $ (2.51) |
Net Loss per Common Share—Diluted | $ (1.90) | $ (1.33) | $ (2.51) |
Weighted Average Common Shares Outstanding: | |||
Basic | 28,571 | 28,407 | 27,284 |
Diluted | 28,571 | 28,407 | 27,284 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net Loss | $ (54,379) | $ (37,823) | $ (68,563) |
Other Comprehensive (Loss) Income: | |||
Foreign Currency Translation Adjustments | (233) | 304 | 209 |
Total Other Comprehensive (Loss) Income | (233) | 304 | 209 |
Comprehensive Loss | $ (54,612) | $ (37,519) | $ (68,354) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Treasury Stock [Member] | Additional Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Beginning Balance at Dec. 31, 2015 | $ 30 | $ (138,987) | $ 180,590 | $ 237,600 | $ (1,665) | $ 277,568 |
Beginning Balance (in shares) at Dec. 31, 2015 | 27,088 | 2,825 | ||||
Stock-Based Compensation Expense | 5,487 | $ 5,487 | ||||
Exercise of Stock Options (in shares) | 59 | 60,781 | ||||
Exercise of Stock Options | 539 | $ 539 | ||||
Excess Tax Benefits on Stock Option Exercises | (675) | (675) | ||||
Stock Issued upon Legal Settlement | $ 1 | 16,759 | 16,760 | |||
Stock Issued upon Legal Settlement (in shares) | 1,000 | |||||
Release of Restricted Shares (in shares) | 101 | |||||
Common Stock Repurchased (in shares) | 29 | |||||
Common Stock Repurchased | $ (433) | (433) | ||||
Translation Adjustment | 209 | 209 | ||||
Net Loss | (68,563) | (68,563) | ||||
Ending Balance at Dec. 31, 2016 | $ 31 | $ (139,420) | 202,700 | 169,037 | (1,456) | 230,892 |
Ending Balance (in shares) at Dec. 31, 2016 | 28,248 | 2,854 | ||||
Stock-Based Compensation Expense | 4,582 | $ 4,582 | ||||
Exercise of Stock Options (in shares) | 88 | 87,955 | ||||
Exercise of Stock Options | 1,347 | $ 1,347 | ||||
Release of Restricted Shares (in shares) | 154 | |||||
Common Stock Repurchased (in shares) | 53 | |||||
Common Stock Repurchased | $ (1,455) | (1,455) | ||||
Translation Adjustment | 304 | 304 | ||||
Net Loss | (37,823) | (37,823) | ||||
Ending Balance at Dec. 31, 2017 | $ 31 | $ (140,875) | 208,629 | 131,214 | (1,152) | 197,847 |
Ending Balance (in shares) at Dec. 31, 2017 | 28,490 | 2,907 | ||||
Stock-Based Compensation Expense | 4,346 | $ 4,346 | ||||
Exercise of Stock Options (in shares) | 44 | 43,510 | ||||
Exercise of Stock Options | 770 | $ 770 | ||||
Release of Restricted Shares | $ 1 | (1) | ||||
Release of Restricted Shares (in shares) | 93 | |||||
Common Stock Repurchased (in shares) | 44 | |||||
Common Stock Repurchased | $ (953) | (953) | ||||
Translation Adjustment | (233) | (233) | ||||
Net Loss | (54,379) | (54,379) | ||||
Ending Balance at Dec. 31, 2018 | $ 32 | $ (141,828) | $ 213,744 | $ 76,835 | $ (1,385) | $ 147,398 |
Ending Balance (in shares) at Dec. 31, 2018 | 28,627 | 2,951 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash Flows from Operating Activities: | |||
Net Loss | $ (54,379) | $ (37,823) | $ (68,563) |
Adjustments to Reconcile Net Loss: | |||
Depreciation and Amortization | 18,425 | 17,739 | 17,505 |
Deferred Income Taxes (Benefit) Provision | 240 | (3,246) | 14,205 |
Stock-Based Compensation Expense | 4,091 | 4,735 | 5,568 |
Provision for Inventory Obsolescence Reserves | 3,108 | 6,349 | 3,723 |
Impairment and Loss on Disposal of Fixed Assets | 1,818 | 1,498 | |
Stock-Based Portion of Provision for Securities Class Action | 16,760 | ||
Changes in Operating Assets and Liabilities: | |||
Merchandise Inventories | (59,179) | 32,614 | (62,054) |
Accounts Payable | 4,852 | (52,475) | 64,025 |
Customer Deposits and Store Credits | 1,685 | 6,001 | (988) |
Prepaid Expenses and Other Current Assets | 2,902 | 28,962 | (11,411) |
Accrual for Legal Matters and Settlements | 63,951 | 36,960 | |
Deposit for Legal Settlement | (21,500) | ||
Other Assets and Liabilities | (9,000) | (1,922) | (6,317) |
Net Cash (Used in) Provided by Operating Activities | (42,986) | 39,392 | (27,547) |
Cash Flows from Investing Activities: | |||
Purchases of Property and Equipment | (14,332) | (7,411) | (8,908) |
Proceeds from Disposal of Fixed Assets | 871 | 2,273 | |
Other Investing Activities | 800 | 575 | |
Net Cash Used in Investing Activities | (13,461) | (4,338) | (8,333) |
Cash Flows from Financing Activities: | |||
Borrowings on Revolving Credit Facility | 74,000 | 40,000 | 37,000 |
Payments on Revolving Credit Facility | (24,000) | (65,000) | (17,000) |
Proceeds from the Exercise of Stock Options | 770 | 1,347 | 539 |
Payments for Stock Repurchases | (953) | (1,455) | (433) |
Payments on Financed Insurance Obligations | (612) | (734) | |
Payments on Capital Lease Obligations | (351) | (469) | |
Payments for Debt Issuance Costs | (933) | ||
Net Cash Provided by (Used in) Financing Activities | 49,205 | (26,193) | 18,704 |
Effect of Exchange Rates on Cash and Cash Equivalents | (1,131) | 806 | 744 |
Net (Decrease) Increase in Cash and Cash Equivalents | (8,373) | 9,667 | (16,432) |
Cash and Cash Equivalents, Beginning of Year | 19,938 | 10,271 | 26,703 |
Cash and Cash Equivalents, End of Year | $ 11,565 | 19,938 | 10,271 |
Supplemental disclosure of non-cash operating and financing activities [Abstract] | |||
Financed Insurance Premiums | $ 1,346 | ||
Supplemental disclosure of non-cash investing and financing activities: | |||
Borrowing on capital lease obligation to acquire equipment | $ 351 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Lumber Liquidators Holdings, Inc. Notes to Consolidated Financial Statements (amounts in thousands, except share data and per share amounts) Note 1. Summary of Significant Accounting Policies Nature of Business Lumber Liquidators Holdings, Inc. and its direct and indirect subsidiaries (collectively and, where applicable, individually, the “Company”) engage in business as a multi-channel specialty retailer of hard-surface flooring, and hard-surface flooring enhancements and accessories, operating as a single operating segment. The Company offers an extensive assortment of exotic and domestic hardwood species, engineered hardwood, laminate, resilient vinyl, waterproof vinyl plank and porcelain tile flooring direct to the consumer. The Company also features the renewable flooring products, bamboo and cork, and provides a wide selection of flooring enhancements and accessories, including moldings, noise-reducing underlayment, adhesives and flooring tools. The Company also provides in-home delivery and installation services to its customers. The Company sells primarily to homeowners or to contractors on behalf of homeowners through a network of store locations in metropolitan areas. The Company’s stores spanned 47 states in the United States (“U.S.”) and included eight stores in Canada at December 31, 2018. In addition to the store locations, the Company’s products may be ordered, and customer questions/concerns addressed, through both its call center in Toano, Virginia, and its website, www.lumberliquidators.com. The Company finished the majority of its Bellawood products on its finishing lines in Toano, Virginia, which along with the call center, corporate offices, and a distribution center, represent the “Corporate Headquarters.” In July of 2018, the Company announced its plan to sell its finishing line equipment to an unaffiliated third-party purchaser and to relocate its corporate headquarters to Richmond, Virginia, in 2019. The Company ceased finishing floors in January 2019. Organization and Basis of Financial Statement Presentation The consolidated financial statements of Lumber Liquidators Holdings, Inc., a Delaware corporation, include the accounts of its wholly owned subsidiaries. All significant intercompany transactions have been eliminated in consolidation. In order to conform to the current year presentation, the Company has reclassified net services sales and net cost of services sold on the accompanying consolidated statements of operations for the years ended December 31, 2017 and 2016, respectively, to separate line items from total net sales with the remainder being classified as net merchandise sales and cost of merchandise sold. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. During 2018 and 2017, the Company has recognized significant liabilities related to various legal and regulatory matters. While the payment of these liabilities has had, and is expected to have, a material adverse impact on the Company’s liquidity and cash flow from operations, the Company estimates that it has sufficient liquidity through amounts available under its Revolving Credit Facility and forecasted cash flows from operations to fund its working capital, including these legal and regulatory liabilities. The Company prepares its forecasted cash flow and liquidity estimates based on assumptions that it believes to be reasonable but are also inherently uncertain. Actual future cash flows could differ from these estimates. Cash and Cash Equivalents The Company had cash and cash equivalents of $11.6 million and $19.9 million at December 31, 2018 and 2017, respectively. The Company considers all highly liquid investments with a maturity date of three months or less when purchased to be cash equivalents, of which there was zero at December 31, 2018 and 2017, respectively. The Company accepts a range of debit and credit cards, and these transactions are generally transmitted to a bank for reimbursement within 24 hours. The payments due from the banks for these debit and credit card transactions are generally received, or settled, within 24 to 48 hours of the transmission date. The Company considers all debit and credit card transactions that settle in less than seven days to be cash and cash equivalents. Amounts due from the banks for these transactions classified as cash equivalents totaled $7 .3 million and $1 3.3 million at December 31, 2018 and 2017, respectively. Credit Programs Credit is offered to the Company’s customers through a proprietary credit card, underwritten by a third-party financial institution and at no recourse to the Company. A credit line is offered to the Company’s professional customers through the Lumber Liquidators Commercial Credit Program. This commercial credit program is underwritten by a third-party financial institution, generally with no recourse to the Company. As part of the credit program, the Company’s customers may tender their Lumber Liquidators credit card to receive installation services. As of December 31, 2018, the Company utilized a network of associates to perform certain customer-facing, consultative services and coordinate the installation of its flooring products by third-party independent contractors in all of its stores. Fair Value of Financial Instruments The carrying amounts of financial instruments such as cash and cash equivalents, accounts payable and other liabilities approximates fair value because of the short-term nature of these items. The carrying amount of obligations under its Revolving Credit Facility approximates fair value due to the variable rate of interest. Merchandise Inventories The Company values merchandise inventories at the lower of cost and net realizable value. The method by which amounts are removed from inventory is weighted average cost. All of the hardwood flooring purchased from vendors is either prefinished or unfinished, and in immediate saleable form. Inventory cost includes the costs of bringing an article to its existing condition and location such as shipping and handling and import tariffs. Prior to the sale of the finishing line equipment in 2018, the Company would add the finish to, and box, various species of unfinished product, to produce certain proprietary products, primarily Bellawood. Any finishing and boxing costs were included in the average unit cost of related merchandise inventory. In addition, the Company maintains an inventory reserve for loss or obsolescence based on historical results and current sales trends. This reserve was $6.8 million and $5.6 million at December 31, 2018 and 2017, respectively. Impairment of Long-Lived Assets The Company evaluates potential impairment losses on long-lived assets used in operations when events and circumstances indicate that the assets may be impaired, and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amounts of those assets. If impairment exists and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amount of those assets, an impairment loss is recorded based on the difference between the carrying value and fair value of the assets. During 2018, the Company decided to exit the finishing business and entered into an agreement to sell this equipment to a third party, which altered the Company’s expectations of future cash flows from these long-lived assets. As a result, the Company tested certain long-lived assets for impairment and recorded a $1.8 million impairment charge within selling, general and administrative (“SG&A”) expenses in its accompanying consolidated statements of operations. The charge was measured as the difference between the fair value (Level 2 inputs under ASC 820) of the assets and the carrying value of the related net assets based on the contract to sell to a third party. The Company received $0.8 million in connection with this transaction during 2018 and has $1.0 million in assets held-for-sale, included in Other Current Assets on the Consolidated Balance Sheet as of December 31, 2018. During 2017, the Company determined that the carrying value of certain assets that had once been part of a discontinued vertical integration strategy was above their fair value and recorded an impairment charge of $1.5 million within SG&A expenses in the consolidated statements of operations. The charge was measured as the difference between the fair value (Level 2 inputs under the fair value hierarchy) of the assets and the carrying value of the related net assets based on a contract to sell to a third party. No impairment charges were recognized in 2016. Goodwill and Other Indefinite-Lived Intangibles Goodwill represents the costs in excess of the fair value of net assets acquired associated with acquisitions by the Company. Other assets include $0.8 million for an indefinite-lived intangible asset for the phone number 1‑800‑HARDWOOD and related internet domain names. The Company evaluates these assets for impairment on an annual basis, or whenever events or changes in circumstance indicate that the asset carrying value exceeds its fair value . Based on the analysis performed, the Company has concluded that no impairment in the value of these assets has occurred. Self-Insurance The Company is self-insured for certain employee health benefit claims and for certain workers’ compensation claims. The Company estimates a liability for aggregate losses below stop-loss coverage limits based on estimates of the ultimate costs to be incurred to settle known claims and claims incurred but not reported as of the balance sheet date. The estimated liability is not discounted and is based on a number of assumptions and factors including historical and industry trends and economic conditions. This liability could be affected if future occurrences and claims differ from these assumptions and historical trends. As of December 31, 2018 and 2017, the Company had accruals of $2.4 million and $2.1 million, respectively, related to estimated claims was included in other current liabilities. Recognition of Net Sales In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (“Topic 606”), Revenue from Contracts with Customers , which superseded the revenue recognition requirements in Topic 605, Revenue Recognition , including most industry-specific revenue recognition guidance. The core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services and when control of those goods and services has passed to the customer. The Company adopted Topic 606 as of January 1, 2018 using the modified retrospective transition method. However, because adoption of the standard did not change the timing or amount of the Company’s recognition of revenue and because the Company does not recognize revenues for partial contracts, there was no adjustment to retained earnings needed as part of the adoption of the new standard. The Company generates revenues primarily by retailing merchandise in the form of hardwood and porcelain flooring and accessories. Additionally, the Company expands its revenues by offering services to deliver and/or install this merchandise for its customers; it considers these services to be separate performance obligations. The separate performance obligations are detailed on the customer’s invoice(s) and the customer often purchases flooring merchandise without purchasing installation or delivery services. Sales occur through a network of 413 stores, which spanned 47 states, including eight stores in Canada at December 31, 2018. In addition, both the merchandise and services can be ordered through a call center and from the Company’s website, www.lumberliquidators.com. The Company’s agreements with its customers are of short duration (less than a year) and as such the Company has elected not to disclose revenue for partially satisfied contracts that will be completed in the days following the end of a period as permitted by GAAP. The Company reports its revenues exclusive of sales taxes collected from customers and remitted to governmental taxing authorities, consistent with past practice. Revenue is based on consideration specified in a contract with a customer and excludes any sales incentives from vendors and amounts collected on behalf of third parties. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product to a customer or performing service for a customer. Revenues from installation and freight services are recognized when the delivery is made or the installation is complete, which approximates the recognition of revenue over time due to the short duration of service provided. The price of the Company’s merchandise and services is specified in the respective contract and detailed on the invoice agreed to with the customer including any discounts. The Company generally requires customers to pay a deposit, equal to approximately half of the retail sales value, when ordering merchandise not regularly carried in a given location or not currently in stock. In addition, the Company generally does not extend credit to its customers with payment due in full at the time the customer takes possession of merchandise or when the service is provided. Customer payments and deposits received in advance of the customer taking possession of the merchandise or receiving the services are recorded as deferred revenues in the accompanying consolidated balance sheet caption Customer Deposits and Store Credits. The following table shows the activity in this account for the periods noted: Year Ended December 31, 2018 2017 2016 Customer Deposits and Store Credits, Beginning Balance $ (38,546) $ (32,639) $ (33,771) New Deposits (1,155,019) (1,101,841) (1,021,880) Recognition of Revenue 1,084,636 1,028,933 960,588 Sales Tax included in Customer Deposits 67,125 66,028 63,422 Other 1,472 973 (998) Customer Deposits and Store Credits, Ending Balance $ (40,332) $ (38,546) $ (32,639) Subject to limitations under the Company’s policy, return of unopened merchandise is accepted for 90 days. The amount of revenue recognized for flooring merchandise is adjusted for expected returns, which are estimated based on the Company’s historical data, current sales levels and forecasted economic trends. The Company uses the expected value method to estimate returns because it has a large number of contracts with similar characteristics. The Company previously recognized revenue in full, recorded an allowance for expected returns (contra-revenue) and recorded a separate refund liability for expected returns. The Company reduces revenue by the amount of expected returns and records it within Accrued Expenses and Other on the consolidated balance sheet. The Company continues to estimate the amount of returns based on the historical data. In addition, the Company recognizes a related asset for the right to recover returned merchandise and records it in the Other Current Assets caption of the accompanying consolidated balance sheet. This amount was $1.2 million at December 31, 2018. The Company recognizes sales commissions as incurred since the amortization period is less than one year. The Company offers a range of limited warranties for the durability of the finish on its prefinished products. These limited warranties range from one to 100 years, with lifetime warranties for certain of the Company’s products. Warranty reserves are based primarily on claims experience, sales history and other considerations. Warranty costs are recorded in Cost of Sales. We offer hundreds of different flooring products; however, no single flooring product represented a significant portion of our sales mix. By major product category, our sales mix was as follows: Year Ended December 31, 2018 2017 2016 Manufactured Products 1 $ 392,512 36 % $ 315,369 31 % $ 248,234 26 % Solid and Engineered Hardwood 367,026 34 % 423,301 41 % 452,248 47 % Moldings and Accessories and Other 196,411 18 % 199,599 19 % 195,130 20 % Installation and Delivery Services 128,687 12 % 90,664 9 % 64,976 7 % Total $ 1,084,636 100 % $ 1,028,933 100 % $ 960,588 100 % 1 Includes laminate, vinyl, engineered vinyl plank and porcelain tile. Cost of Sales Cost of sales includes the cost of products sold, including tariffs, the cost of installation services, and transportation costs from vendors to the Company’s distribution centers or store locations. It also includes any applicable finishing costs related to production of the Company’s proprietary brands, transportation costs from distribution centers to store locations, transportation costs for the delivery of products from store locations to customers, certain costs of quality control procedures, warranty and customer satisfaction costs, inventory adjustments including obsolescence and shrinkage, and costs to produce samples, which are net of vendor allowances. The Company offers a range of limited warranties for the durability of the finish on its prefinished products to its services provided. These limited warranties range from one to 100 years, with lifetime warranties for certain of the Company’s products. Warranty reserves are based primarily on claims experience, sales history and other considerations, including payments made to satisfy customers for claims not directly related to the warranty on the Company’s products. Warranty costs are recorded in cost of sales. This reserve was $1.4 million and $1. 6 million at December 31, 2018 and 2017, respectively. The Company seeks recovery from its vendors and third-party independent contractors of installation services for certain amounts paid. Vendor allowances primarily consist of volume rebates that are earned as a result of attaining certain purchase levels and reimbursement for the cost of producing samples. Vendor allowances are accrued as earned, with those allowances received as a result of attaining certain purchase levels accrued over the incentive period based on estimates of purchases. Volume rebates earned are initially recorded as a reduction in merchandise inventories and a subsequent reduction in cost of sales when the related product is sold. Reimbursement received for the cost of producing samples is recorded as an offset against cost of sales. Accrual for Air Quality Emissions Screening Test Costs The Company offers a free indoor air quality testing program for customers who purchased laminate flooring sourced from China during the period from February 22, 2012 to February 27, 2015. The Company established a reserve to provide for the estimated future expenses required to support the program. Reserve estimates are based on management’s judgment, considering such factors as cost per air quality testing request, recent historical experience, and the anticipated number of future requests for the duration of the program. Management reviews and adjusts these estimates, if necessary, on a quarterly basis based on any differences in actual and expected program cost experience. During the second quarter of 2017, the Company reduced its estimate of the number of test kit requests based on its experience, and reduced its estimate of the administrative costs of the Air Quality Testing Program. The revised estimates were in part prompted by the CPSC’s July 2017 decision to close this case with the Company and terminate its monitoring activity of the Air Quality Testing Program. The Company will continue to offer tests kits to qualifying customers, but the lower total estimated future costs of the Air Quality Testing Program resulted in a reduction in the reserve and the corresponding offset to cost of sales of $1 million. At December 31, 2017, the Company’s estimate of its future costs for the Air Quality Testing Program through June 30, 2018 was approximately $0.1 million. Since that time, costs related to the Company’s Air Quality Testing Program have been expensed as incurred and have not been significant. Advertising Costs Advertising costs charged to selling, general and administrative (“SG&A”) expenses, net of vendor allowances, were $74,242, $76,586 and $80,079 in 2018, 2017 and 2016, respectively. The Company uses various types of media to brand its name and advertise its products. Media production costs are generally expensed as incurred, except for direct mail, which is expensed when the finished piece enters the postal system. Media placement costs are generally expensed in the month the advertising occurs, except for contracted endorsements and sports agreements, which are generally expensed ratably over the contract period. Amounts paid in advance are included in prepaid expenses and totaled $564 and $1,077 at December 31, 2018 and 2017, respectively. Store Opening Costs Costs to open new store locations are charged to SG&A expenses as incurred, net of any vendor support. Other Vendor Consideration Consideration from non-merchandise vendors, including royalties and rebates, are generally recorded as an offset to SG&A expenses when earned. Depreciation and Amortization Property and equipment is carried at cost and depreciated on the straight-line method over the estimated useful lives. The estimated useful lives for leasehold improvements are the shorter of the estimated useful lives or the remainder of the lease terms. For leases with optional renewal periods for which renewal is not reasonably assured, the Company uses the original lease term, excluding optional renewal periods, to determine the appropriate estimated useful lives. Capitalized software costs are capitalized from the time that technological feasibility is established until the software is ready for use. The estimated useful lives are generally as follows: Years Buildings and Building Improvements 7 to 40 Property and Equipment 3 to 15 Computer Software and Hardware 3 to 10 Leasehold Improvements 1 to 15 Operating Leases The Company has operating leases for its stores, current corporate headquarters in Toano, Virginia, certain of its distribution facilities, supplemental office facilities and certain equipment. The lease agreements for certain stores and distribution facilities contain rent escalation clauses, rent holidays and tenant improvement allowances. For scheduled rent escalation clauses during the lease terms or for rental payments commencing at a date other than the date of initial occupancy, the Company records minimum rental expenses in SG&A expenses on a straight-line basis over the terms of the leases. The difference between the rental expense and rent paid is recorded as deferred rent on the consolidated balance sheets. For tenant improvement allowances, the Company records deferred rent on the consolidated balance sheets and amortizes the deferred rent over the terms of the leases as reductions to rental expense. Stock-Based Compensation The Company records compensation expense associated with stock options and other forms of equity compensation in accordance with ASC 718. The Company may issue incentive awards, including performance-based awards, in the form of stock options, restricted shares and other equity awards to employees, non-employee directors and other service providers. The Company recognizes expense for the majority of its stock-based compensation based on the fair value of the awards that are granted. For awards granted to non-employee directors, expense is recognized based on the fair value of the award at the end of a reporting period. For performance-based awards granted to certain members of senior management, the Company recognizes expense after assessing the probability of the achievement of certain financial metrics on a periodic basis. Compensation expense is recognized only for those awards expected to vest, with forfeitures estimated at the date of grant based on historical experience and future expectations. Measured compensation cost is recognized ratably over the requisite service period of the entire related stock-based compensation award. Foreign Currency Translation The Company’s Canadian operations use the Canadian dollar as the functional currency. Assets and liabilities are translated at exchange rates in effect at the balance sheet date. Revenues and expenses are translated at the average monthly exchange rates during the year. Resulting translation adjustments are recorded as a component of accumulated other comprehensive income on the consolidated balance sheets. Income Taxes Income taxes are accounted for in accordance with ASC 740 (“ASC 740”). Income taxes are provided for under the asset and liability method and consider differences between the tax and financial accounting bases. The tax effects of these differences are reflected on the consolidated balance sheets as deferred income taxes and measured using the effective tax rate expected to be in effect when the differences reverse. ASC 740 also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some portion of the deferred tax asset will not be realized. In evaluating the need for a valuation allowance, the Company takes into account various factors, including the nature, frequency and severity of current and cumulative losses, expected level of future taxable income, the duration of statutory carryforward periods and tax planning alternatives. In future periods, any valuation allowance will be re-evaluated in accordance with ASC 740, and a change, if required, will be recorded through income tax expense in the period such determination is made. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the relevant taxing authorities, based on the technical merits of its position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company classifies interest and penalties related to income tax matters as a component of income tax expense. Net Income per Common Share Basic net income per common share is determined by dividing net income by the weighted average number of common shares outstanding during the year. Diluted net income per common share is determined by dividing net income by the weighted average number of common shares outstanding during the year, plus the dilutive effect of common stock equivalents, including stock options and restricted shares. Common stock and common stock equivalents included in the computation represent shares issuable upon assumed exercise of outstanding stock options and release of restricted shares, except when the effect of their inclusion would be antidilutive. Recent Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued Accounting Standards Update No. 2016-02 (“ASU 2016-02”), which creates ASC Topic 842, Leases , and supersedes the lease accounting requirements in Topic 840, Leases . In summary, Topic 842 requires organizations that lease assets — referred to as “lessees” — to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. The amendments in ASU 2016-02 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company adopted this ASU on January 1, 2019 on a modified retrospective basis and will not restate prior periods. The Company has implemented software to track and account for the leases, assessed the impact of the new guidance on its consolidated financial statements and financial controls. Presentation of leases within the consolidated statements of operations and consolidated statements of cash flows will be generally consistent with the current lease accounting guidance. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, will allow the Company to carryforward the historical lease classification. On January 1, 2019, the Company will make an accounting policy election that payments under agreements with an initial term of 12 months or less will not be included on the Consolidated Balance Sheet but will be recognized in the Consolidated Statements of Operations on a straight-line basis over the term of the agreement. The Company estimates that the adoption of the standard will result in recognition of right-of-use lease assets and lease liabilities in the approximate range of $115 million to $125 million on the Company’s consolidated Balance Sheet primarily related to more than 400 store operating leases. In August 2018, the FASB issued Accounting Standards Update No. 2018-15 (“ASU 2018-15”), which provides guidance on the accounting for costs of implementation activities performed in a cloud computing arrangement that is a service contract, as initially published in Accounting Standards Update No. 2015-05, Intangibles—Goodwill and Other—Internal-Use Software: Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. In summary, the new standard requires customers of cloud computing services to recognize an intangible asset for the software license and, to the extent that payments attributable to the software license are made over time, a liability is also recognized. The new standard also allows customers of cloud computing services to capitalize certain implementation costs. The amendments in ASU 2018-15 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Therefore, the new standard will become effective for the Company at the beginning of its 2020 fiscal year, although early adoption is permitted for all entities. The Company will evaluate the impact of ASU 2018-15 when recording cloud computing arrangements. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property and Equipment [Abstract] | |
Property and Equipment | Note 2. Property and Equipment Property and equipment consisted of: December 31, 2018 2017 Land $ 4,937 $ 4,937 Building 44,319 44,299 Property and Equipment 53,411 60,337 Computer Software and Hardware 54,375 50,415 Leasehold Improvement 46,297 40,277 Assets under Construction 767 596 204,106 200,861 Less: Accumulated Depreciation and Amortization 110,417 100,370 Property and Equipment, net $ 93,689 $ 100,491 As of December 31, 2018 and 2017, the Company had cumulatively capitalized $40,230 and $37,905 of computer software costs, respectively. Amortization expense related to these assets was $ 4,331 , $3,875 and $3,604 for 2018, 2017 and 2016, respectively. |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities [Abstract] | |
Other Liabilities | Note 3. Other Liabilities Other long-term liabilities consisted of: December 31, 2018 2017 Antidumping and Countervailing Duties Accrual $ 11,456 $ 10,372 Deferred Rent 4,850 5,150 Lease Incentive Obligation 2,864 2,872 Other 1,033 841 Other Long Term Liabilities $ 20,203 $ 19,235 |
Revolving Credit Facility
Revolving Credit Facility | 12 Months Ended |
Dec. 31, 2018 | |
Revolving Credit Facility [Abstract] | |
Revolving Credit Facility | Note 4. Revolving Credit Facility On August 17, 2016, the Company, Lumber Liquidators, Inc. (“LLI”) and Lumber Liquidators Services, LLC (“LL Services” and collectively with LLI, the “Borrowers”), entered into a Third Amended and Restated Credit Agreement (the “Revolving Credit Facility”) with Bank of America, N.A. (the “Bank”) and Wells Fargo Bank, N.A. (“Wells Fargo” and, collectively with the Bank, the “Lenders”) with the Bank as administrative agent and collateral agent (in this capacity, the “Agent”) and Wells Fargo as syndication agent. The maximum amount of borrowings under the Revolving Credit Facility is $150 million (but subject to the borrowing base as described in the agreement). At December 31, 2018, the Company had $67.9 million available to borrow under the Revolving Loan, which was net of $ 2.1 million in outstanding letters of credit, $65 million in outstanding borrowings and certain limitations based on the borrowing base and the fixed charge coverage ratio covenant. The Revolving Credit Facility matures on August 17, 2021, is guaranteed by the Company and its other domestic subsidiaries other than LLI and LL Services and secured by security interests in the Collateral (as defined in the agreement), which includes substantially all assets of the Company including, among other things, the Company’s inventory and accounts receivables and the Company’s East Coast distribution center located in Sandston, Virginia. Under the terms of the agreement, the Company has the ability to release the East Coast distribution center from the Collateral under certain conditions. The Revolving Credit Facility has no mandated payment provisions and a fee of 0.25% per annum on the average daily unused portion, paid quarterly in arrears. Loans outstanding under the Revolving Credit Facility can bear interest based on the Base Rate or the LIBOR Rate, each as defined in the agreement. Interest on Base Rate loans is charged at varying per annum rates computed by applying a margin ranging from 0.50% to 0.75% (dependent on the Company’s average daily excess borrowing availability under the Revolving Credit Facility during the most recently completed fiscal quarter) over the Base Rate. Interest on LIBOR Rate loans and fees for standby letters of credit are charged at varying per annum rates computed by applying a margin ranging from 1.50% to 1.75% (dependent on the Company’s average daily excess borrowing availability under the Revolving Credit Facility during the most recently completed fiscal quarter) over the applicable LIBOR rate for one, two, three or six month interest periods as selected by the Company. At December 31, 2018, the Company’s Revolving Credit Facility carried an interest rate of 4.125%. The Credit Agreement contains a fixed charge coverage ratio covenant that becomes effective in the event that the Company’s excess borrowing availability under the Revolving Credit Facility falls below the greater of $15 million, or 10% of the maximum revolver amount. This covenant – though not currently operable – would not have been met at December 31, 2018. This covenant was met at December 31, 2017. On March 8, 2019, we entered into a commitment letter with the Lenders, subject to customary closing conditions, that provides for an increase in the Revolving Loan up to a maximum amount of $175 million, and a new “First in Last Out” tranche of $25 million incremental to the $175 million but within the same Revolving Credit Facility. This will also extend the term of the loan until March 2024. We expect to close on this expanded Revolving Credit Facility in late March or early April 2019. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Leases | Note 5. Leases The Company has operating leases for its stores, current corporate headquarters in Toano, Virginia, West Coast distribution center, supplemental office facilities and certain equipment. The Company has also entered into an agreement for a future corporate headquarters in Richmond, Virginia which has a ten-year term that commences in late 2019 once the Company takes possession of the property. The store location leases are operating leases and generally have five-year base periods with one or more five-year renewal periods. The current corporate headquarters in Toano, Virginia and the supplemental office facility in Richmond, Virginia have operating leases with base terms running through December 31, 2019. The West Coast distribution center has an operating lease with a base term running through October 31, 2024. Total rent expense was $3 4.1 million, $3 2.5 million and $ 30.3 million in 2018, 2017 and 2016, respectively. As of December 31, 2016, the Company leased the current corporate headquarters, which includes a store location and 29 of its locations, representing 7.8% of the total number of store leases then in operation from the Company’s founder. During 2016, the Company also leased a warehouse from its founder, which was subsequently vacated in December 2017. Effective December 31, 2016, upon the departure of the Company’s founder from the board of directors, these entities no longer meet the criteria of a related party. Rent expense to this related party was $3.4 million in 2016. At December 31, 2018, the future minimum rental payments under non-cancellable operating leases were as follows: Operating Leases Distribution Total Headquarters & Centers & Other Operating Store Leases Leases Leases 2019 $ 33,689 $ 2,385 $ 36,074 2020 30,697 2,123 32,820 2021 24,402 2,168 26,570 2022 18,492 2,147 20,639 2023 12,496 2,186 14,682 Thereafter 22,374 2,054 24,428 Total minimum lease payments $ 142,150 $ 13,063 $ 155,213 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | Note 6. Stockholders’ Equity Net Income per Common Share The following table sets forth the computation of basic and diluted net income per common share: Year Ended December 31, 2018 2017 2016 Net Loss $ (54,379) $ (37,823) $ (68,563) Weighted Average Common Shares Outstanding—Basic 28,571 28,407 27,284 Effect of Dilutive Securities: Common Stock Equivalents — — — Weighted Average Common Shares Outstanding—Diluted 28,571 28,407 27,284 Net Loss per Common Share—Basic $ (1.90) $ (1.33) $ (2.51) Net Loss per Common Share—Diluted $ (1.90) $ (1.33) $ (2.51) The following have been excluded from the computation of Weighted Average Common Shares Outstanding—Diluted because the effect would be antidilutive: As of December 31, 2018 2017 2016 Stock Options 643,422 653,019 666,538 Restricted Shares 407,319 432,777 516,072 Stock Issuance On November 17, 2016, the Company issued 1 million shares of its common stock to a court approved settlement fund in connection with a final court approval of a definitive settlement agreement as discussed in Note 10. These shares were valued at $16.8 million based on the closing price of the Company shares of $16.76 on the settlement date. These shares have been included in the Company’s calculation of weighted average common shares outstanding from the date of issuance. Stock Repurchase Program In 2012, the Company’s Board of Directors (“Board”) authorized the repurchase of up to $100 million of the Company’s common stock from time to time on the open market or in privately negotiated transactions. In January 2014, the Company’s Board authorized the repurchase of up to an additional $50 million of the Company’s common stock, bringing the total authorization to $150 million and at December 31, 2015, the Company had $14.7 million remaining under this authorization. The Company did not purchase any shares under this program during the three-years ended December 31, 2018. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | Note 7. Stock-Based Compensation Overview The Company has an equity incentive plan (the “Plan”) for employees, non-employee directors and other service providers from which the Company may grant stock options, restricted shares, stock appreciation rights (“SARs”) and other equity awards. The total number of shares of common stock authorized for issuance under the Plan is 6.1 million. As of December 31, 2018, 0.8 million shares of common stock were available for future grants. Stock options granted under the Plan expire no later than ten years from the date of grant and the exercise price shall not be less than the fair market value of the shares on the date of grant. Vesting periods are assigned to stock options and restricted shares on a grant-by-grant basis at the discretion of the Board. The Company issues new shares of common stock upon exercise of stock options and vesting of restricted shares. The Company also maintains the Lumber Liquidators Holdings, Inc. Outside Directors Deferral Plan under which each of the Company’s non-employee directors has the opportunity to elect annually to defer certain fees until departure from the Board. A non-employee director may elect to defer up to 100% of his or her fees and have such fees invested in deferred stock units. Deferred stock units must be settled in common stock upon the director’s departure from the Board. There were 132,348 and 122,007 deferred stock units outstanding at December 31, 2018 and 2017, respectively. Stock Options The following table summarizes activity related to stock options: Remaining Weighted Average Aggregate Average Contractual Intrinsic Shares Exercise Price Term (Years) Value Balance, December 31, 2015 692,776 $ 31.45 7.7 $ 1,283 Granted 443,147 13.51 Exercised (60,781) 9.37 Forfeited (239,528) 27.16 Balance, December 31, 2016 835,614 $ 24.86 7.5 $ 1,167 Granted 127,984 22.09 Exercised (87,955) 15.31 Forfeited (185,975) 25.62 Balance, December 31, 2017 689,668 $ 25.31 7.7 $ 8,530 Granted 215,297 20.54 Exercised (43,510) 17.70 Forfeited (128,870) 33.25 Balance, December 31, 2018 732,585 $ 22.97 7.3 $ — Exercisable at December 31, 2018 303,898 $ 28.47 $ — Vested and expected to vest December 31, 2018 732,585 $ 22.97 $ — The aggregate intrinsic value is the difference between the exercise price and the closing price of the Company’s common stock on December 31. The intrinsic value of the stock options exercised during 2018, 2017 and 2016 was $ 341 , $828 and $343, respectively. As of December 31, 2018, total unrecognized compensation cost related to unvested options was approximately $2,7 04 , net of estimated forfeitures, which is expected to be recognized over a weighted average period of approximately 2.2 years. The fair value of each stock option award is estimated by management on the date of the grant using the Black-Scholes-Merton option pricing model. The weighted average fair value of options granted during 2018, 2017 and 2016 was $1 0.69 , $11.20 and $6.75, respectively. The following are the average assumptions for the periods noted: Year Ended December 31, 2018 2017 2016 Expected dividend rate — % — % — % Expected stock price volatility 55 % 55 % 55 % Risk-free interest rate 2.8 % 1.7 % 1.3 % Expected term of options 5.5 years 5.5 years 5.5 years The expected stock price volatility is based on the historical volatility of the Company’s stock price. The volatilities are estimated for a period of time equal to the expected term of the related option. The risk-free interest rate is based on the implied yield of U.S. Treasury zero-coupon issues with an equivalent remaining term. The expected term of the options represents the estimated period of time until exercise and is determined by considering the contractual terms, vesting schedule and expectations of future employee behavior. Restricted Shares The following table summarizes activity related to restricted shares: Weighted Average Grant Date Fair Shares Value Nonvested, December 31, 2015 461,671 $ 23.61 Granted 343,517 12.41 Released (130,523) 24.23 Forfeited (88,478) 18.29 Nonvested, December 31, 2016 586,187 $ 17.71 Granted 207,196 19.56 Released (205,349) 18.31 Forfeited (108,288) 15.68 Nonvested, December 31, 2017 479,746 $ 18.71 Granted 224,835 22.39 Released (137,064) 18.67 Forfeited (80,305) 17.98 Nonvested, December 31, 2018 487,212 $ 20.54 The fair value of restricted shares released during 2018, 2017 and 2016 was $2,923, $5,151 and $ 1,617 , respectively. As of December 31, 2018, total unrecognized compensation cost related to unvested restricted shares was approximately $3,953, net of estimated forfeitures, which is expected to be recognized over a weighted average period of approximately 2. 1 years. During 2018, the Company granted 30,887 shares of performance-based restricted stock awards, vesting over a three-year period, with a grant date fair value of approximately $0.7 million to certain members of senior management in connection with the achievement of specific key financial metrics measured over a two-year period. The number of awards that will ultimately vest is contingent upon the achievement of these key financial metrics by the end of year two. The Company assesses the probability of achieving these metrics on a quarterly basis. Once these amounts have been determined, half of the shares will vest at the end of year two and the remaining half will vest at the end of year three. These awards are included above in Restricted Shares Granted for 2018. Stock Appreciation Rights The following table summarizes activity related to SARs: Remaining Weighted Average Aggregate Average Contractual Intrinsic Shares Exercise Price Term (Years) Value Balance, December 31, 2015 16,057 $ 47.58 6.8 $ — Granted 13,071 15.31 Exercised — — Forfeited (460) 62.87 Balance, December 31, 2016 28,668 $ 32.63 7.5 $ 6 Granted 2,899 17.39 Exercised (165) 24.35 Forfeited (14,852) 45.93 Balance, December 31, 2017 16,550 $ 18.10 8.6 $ 251 Granted 1,738 23.31 Exercised — — Forfeited (335) 86.16 Balance, December 31, 2018 17,953 $ 17.33 7.8 $ — Exercisable at December 31, 2018 7,504 $ 17.69 7.5 $ — The fair value method, estimated by management using the Black-Scholes-Merton option pricing model, is used to recognize compensation cost associated with SARs. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes [Abstract] | |
Income Taxes | Note 8. Income Taxes The Tax Cuts and Jobs Act (the “Tax Act”) was enacted in the fourth quarter of 2017. The Tax Act reduced the U.S. federal corporate tax rate from 35% to 21%, eliminated the 20‑year limit on the carryforward of losses, and resulted in the Company remeasuring its existing deferred tax balances as of December 31, 2017. Generally, the Tax Act became effective in 2018, and it altered the deductibility of certain items (e.g., certain compensation, interest, entertainment expenses), and allowed qualifying capital expenditures to be deducted fully in the year of purchase. As of December 31, 2018, the Company has completed the analysis of the tax effects of the Tax Act based on guidance issued to-date and has reflected all applicable changes (including, to executive compensation, deductibility of meals and entertainment expenses, and interest expense) in its financial statements. Changes from our original estimates were minimal. The Company continues to monitor developments by federal and state rulemaking authorities regarding implementation of the Tax Act. As further guidance and clarification is issued by the IRS or state tax jurisdictions, the Company will recognize the impact through its provision for income taxes in the period that the guidance becomes effective. The Company’s deferred tax assets and liabilities are based on the rates at which they are expected to reverse in the future, which is generally 21%. The Company’s valuation allowance is based on the new provisions in the Tax Act including the elimination of the 20‑year net operating loss carryforward, the 80% limitation on the usage of certain net operating losses going forward and the impact of these provisions on the Company’s indefinite-lived deferred tax assets and liabilities. The amount recorded related to the remeasurement of the deferred tax balance and valuation allowance was $8.1 million as of December 31, 2017. The net effect of the Tax Act was a $3.1 million tax benefit recorded in 2017. The components of Loss before Income Taxes were as follows: Year Ended December 31, 2018 2017 2016 United States $ (52,473) $ (38,258) $ (92,874) Foreign (927) (299) (1,399) Total Loss before Income Taxes $ (53,400) $ (38,557) $ (94,273) The expense (benefit) for income taxes consisted of the following: Year Ended December 31, 2018 2017 2016 Current Federal $ — $ 2,254 $ (36,801) State 607 146 (3,269) Foreign 132 112 155 Total Current 739 2,512 (39,915) Deferred Federal 140 (2,087) 11,184 State 100 (1,159) 3,021 Total Deferred 240 (3,246) 14,205 Income Tax Expense (Benefit) $ 979 $ (734) $ (25,710) Tax expense in the amount of $216 was recognized as a component of income tax expense during 2018 resulting from the exercise of stock options and the release of restricted shares. Prior to the adoption of Accounting Standards Update No. 2016-09, which amends ASC Topic 718, Compensation – Stock Compensation , in 2017, excess tax benefits and shortfalls were recognized as adjustments to additional paid-in capital. Year Ended December 31, 2018 2017 2016 Income Tax Benefit at Federal Statutory Rate $ (11,214) 21.0 % $ (13,495) 35.0 % $ (32,995) 35.0 % Increases (Decreases): State Income Taxes, Net of Federal Income Tax Benefit 723 (1.3) % (740) 1.9 % (2,275) 2.4 % Valuation Allowance 3,897 (7.3) % 3,826 (10.0) % 15,207 (16.1) % Foreign Operations 132 (0.3) % 221 (0.5) % (2,465) 2.6 % Uncertain Tax Position related to Investigatory Settlements 2,919 (5.5) — — % — — % Non-Deductible Fines and Penalties 4,011 (7.5) % 1,156 (3.0) % 875 (0.9) % Federal Rate Change — — % 8,088 (21.0) % — — % Capital Loss — — % — — % (4,020) 4.3 % Other 511 (0.9) % 210 (0.5) % (37) — % Income Tax Expense (Benefit) $ 979 (1.8) % $ (734) 1.9 % $ (25,710) 27.3 % The tax effects of temporary differences that result in significant portions of the deferred tax accounts based on a 21% federal rate in both 2018 and 2017, are as follows: December 31, 2018 2017 Deferred Tax Liabilities: Depreciation and Amortization and Other $ (10,672) $ (11,664) Total Gross Deferred Tax Liabilities (10,672) (11,664) Deferred Tax Assets: Stock-Based Compensation Expense 2,348 2,375 Legal Settlement Reserves 14,251 9,120 Other Accruals and Reserves 4,811 5,598 Employee Benefits 1,018 1,745 Inventory Reserves 1,896 1,708 Inventory Capitalization 3,492 2,647 Foreign Net Operating Losses 3,153 2,891 Net Operating Loss Carryforwards 2,445 3,789 Capital Loss Carryforwards and Other 2,784 2,815 Total Gross Deferred Tax Assets 36,198 32,688 Less Valuation Allowance (26,318) (21,576) Total Net Deferred Tax Assets 9,880 11,112 Net Deferred Tax Liability $ (792) $ (552) For 2018 and 2017, the Company’s U.S. operations were in a cumulative loss position. As such, the Company has recorded a valuation allowance on its net deferred tax assets. The valuation allowance increased by $4,742 and $3,826 for the years ended December 31, 2018 and 2017, respectively. In future periods, the allowance could be reduced if sufficient evidence exists indicating that it is more likely than not that a portion or all of these deferred tax assets will be realized. In both 2018 and 2017, the Company’s Canadian operations were in a cumulative loss position. As such, the Company has recorded a full valuation allowance on the net deferred tax assets in Canada. The valuation allowance increased by $232 and $110 for the years ended December 31, 2018 and 2017, respectively. In future periods, the allowance could be reduced if sufficient evidence exists indicating that it is more likely than not that a portion or all of these deferred tax assets will be realized. As of December 31, 2018 and 2017, the Company had U.S. federal net operating loss carryforwards of $11,483 and $5,183, respectively, of which the pre-2018 net operating losses begin to expire in 2037. However, under the 2017 Tax Act net operating losses in years 2018 and future will not expire. As of December 31, 2018 and 2017, respectively, the Company had state net loss carryforwards of $52,230 and $48,247, which begin to expire in 2022. The Company had foreign net operating loss carryforwards of $12,239 and $11,522 at December 31, 2018 and 2017, respectively, which begin to expire in 2030. The Company received income tax refunds (net of payments) of $148, $29,467 and $27,422 in 2018, 2017 and 2016, respectively. As of December 31, 2018 and 2017, the Company had $3,610 and $27, respectively of gross unrecognized tax benefits related to Uncertain Tax Positions ($3,465 and $21, respectively net of federal tax benefit). It is reasonably possible that the amount of the unrecognized tax benefit with respect to certain of the uncertain tax positions will increase or decrease during the next 12 months; however, the Company does not expect the change to have a significant effect on its results of operations, financial position or cash flows. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits, excluding interest and penalties, is as follows: Year Ended December 31, 2018 2017 2016 Balance at beginning of year 27 208 396 Increases for tax positions related to current year 3,583 — 123 Increases for tax positions related to prior years — 33 — Lapse of statue — (208) (311) Federal tax rate change — (6) — Balance at end of year $ 3,610 $ 27 $ 208 Included in the additions of unrecognized tax benefits in the fiscal year ended December 31, 2018, is approximately $3.6 million for an uncertain tax position related to the deductibility of the $33 million settlement related to the governmental investigations. The Company files income tax returns with the U.S. federal government and various state and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities. As of December 31, 2018, the Internal Revenue Service has completed audits of the Company’s income tax returns through 2016 . |
401(K) Plan
401(K) Plan | 12 Months Ended |
Dec. 31, 2018 | |
401(K) Plan [Abstract] | |
401(K) Plan | Note 9. 401(k) Plan The Company maintains a plan, qualified under Section 401(k) of the Internal Revenue Code, for all eligible employees. Employees are eligible to participate following the completion of three months of service and attainment of age 21. The plan is a safe harbor plan, with company matching contributions of 100% of the first 3% of employee contributions and 50% of the next 2% of employee contributions. Both deferrals and Roth contributions are allowed up to 50% of an employee’s eligible compensation, subject to annual IRS limits. Additionally, employees are immediately 100% vested in the Company’s matching contributions. The Company’s matching contributions, included in SG&A expenses, totaled $2, 642 , $2,284 and $2,286 in 2018, 2017 and 2016, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 10. Commitments and Contingencies The Company has been actively resolving various legal and other matters that have arisen in recent years. Certain other matters remain outstanding. More detailed discussion of many of the matters noted below are included in this Form 10‑K under the caption “Item 3 Legal Proceedings.” 2018, 2017 and 2016 Settlements and Resolutions During 2018, 2017 and 2016, the Company recorded accruals in accordance with GAAP related to several legal matters. These include: 2018 2017 2016 Governmental Investigations Formaldehyde-Abrasion MDLs Lacey Act Related Matter Litigation Related to Bamboo California Air Resources Board CPSC Matter Securities Class Action Derivative Litigation Matters Governmental Investigations In 2015 and early 2016, the Company received subpoenas issued in connection with a criminal investigation being conducted by the DOJ and the SEC. The focus of the investigations primarily related to compliance with disclosure, financial reporting and trading requirements under the federal securities laws. The Company cooperated with the investigations, produced documents and other information responsive to subpoenas and other requests received from the parties. Subsequent to year end, the Company reached an agreement with the U.S. Attorney, the DOJ and SEC regarding the investigation. The Company has entered into a DPA with the U.S. Attorney and the DOJ and a Cease-and-Desist Order with the SEC, under which it is required, among other things, to (1) pay a fine in the amount of $19,095,648 to the United States Treasury, (2) forfeit to the U.S. Attorney and the DOJ the sum of $13,904,352, of which up to $6,097,298 will be submitted by the Company to the SEC in disgorgement and prejudgment interest under the Order and (3) adopt a new compliance program, or modify its existing one, including internal controls, compliance policies, and procedures in order to ensure that the Company maintains an effective system of internal account controls designed to ensure the making and keeping of fair and accurate books, records and accounts, as well as a compliance program designed to prevent and detect violations of certain federal securities laws throughout its operations. The Agreements also provide that the Company will continue to cooperate with the U.S. Attorney, the DOJ and the SEC in all matters relating to the conduct described in the Agreements and, at the request of the U.S. Attorney, the DOJ or the SEC, the Company will cooperate fully with other domestic or foreign law enforcement authorities and agencies in any investigation of the Company in any and all matters relating to the Agreements. In the event the Company breaches the DPA, there is a risk the government would seek to impose remedies provided for in the DPA, including instituting criminal prosecution against the Company. The Company has accrued the fines in Selling, General, and Administrative expense in 2018, with $33 million recorded in Accrual for Legal Matters and Settlements Current in its Consolidated Balance Sheet. Litigation Relating to Bamboo Flooring In 2014, Dana Gold (“Gold”) filed a purported class action lawsuit alleging that certain bamboo flooring that the Company sells (the “Strand Bamboo Product”) is defective (the “Gold Litigation”). The plaintiffs sought financial damages and, in addition to attorneys’ fees and costs, the plaintiffs wanted a declaration that the Company’s actions violated the law. The trial was scheduled to begin in late February 2019. Following settlement discussions with the respect to the Gold Litigation, on March 15, 2019, the Company entered into a Memorandum of Understanding with Gold and certain other lead plaintiffs in the Gold Litigation (the “MOU”), which would resolve all disputes on a nationwide basis. Under the terms of the MOU, the Company will contribute $14 million in cash and provide $14 million in store-credit vouchers, with a potential additional $2 million in store-credit vouchers based on obtaining a claim’s percentage of more than 7%, for an aggregate settlement of up to $30 million. The MOU is subject to certain contingencies, including the execution of a definitive settlement agreement, board approval, and court approvals of the definitive settlement agreement. The entry into the MOU or any subsequent execution of a definitive settlement agreement does not constitute an admission by the Company of any fault or liability and the Company does not admit any fault or liability. There can be no assurance that a settlement will be finalized and approved or as to the ultimate outcome of the litigation. If a final, court-approved settlement is not reached, the Company will defend the matter vigorously and believes there are meritorious defenses and legal standards that must be met for, among other things, success on the merits. The Company has accrued within SG&A a $28 million liability in 2018 with the offset in the caption “Other Current Liabilities”. The Company has notified its insurance carriers and continues to pursue coverage. As the insurance claim is still pending, the Company has not recognized any insurance recovery related to the Gold Litigation. In addition, there are a number of other claims and lawsuits alleging damages similar to those in the Gold Litigation. The Company disputes these claims and intends to defend such matters vigorously. Given the uncertainty of litigation, the preliminary stage of the cases, and the legal standards that must be met for success on the merits, the Company is unable to estimate the amount of loss, or range of possible loss, at this time that may result from these actions. Accordingly, no accruals have been made with respect to these matters. Any such losses could, potentially, have a material adverse effect, individually or collectively, on the Company’s results of operations, financial condition, and liquidity. Litigation Relating to Chinese Laminates Formaldehyde-Abrasion MDLs On March 15, 2018, the Company entered into a settlement agreement with the lead plaintiffs in the Formaldehyde MDL (as defined in Item 3 of this Form 10-K) and Abrasion MDL (as defined in Item 3 of this Form 10-K), cases more fully described in Item 3 of this Annual Report on Form 10-K. Under the terms of the settlement agreement, the Company agreed to fund $22 million in cash and provide $14 million in store-credit vouchers for an aggregate settlement of $36 million to settle claims brought on behalf of purchasers of Chinese-made laminate flooring sold by the Company between January 1, 2009 and May 31, 2015. The Company deposited $22 million into an escrow account administered by the court and plaintiffs’ counsel in accordance with the final settlement. The final approval order by the United States District Court for the Eastern District of Virginia has been appealed and is pending. The Company does not anticipate any change to its obligations, but must wait until the appeals are adjudicated or withdrawn. If the appeals were to result in the settlement being set aside, the Company would receive $21.5 million back from the escrow agent. Accordingly, the Company has accounted for the payment of $21.5 million as a deposit in the accompanying consolidated financial statements. To date, insurers have denied coverage with respect to the Formaldehyde MDL and Abrasion MDL. The $36 million aggregate settlement amount was accrued within Selling, General and Administrative expenses in 2017. For approximately three years after a final ruling has been reached in this matter, plaintiffs will be able to redeem vouchers for product. Some of the states have alternative expiration dates while others have an indefinite amount of time to redeem vouchers. The Company will account for the sales of these products by relieving the relevant liability, reducing inventory used in the transaction and offsetting SG&A expenses for any profit. The Company does not know the timing or pace of voucher redemption. In addition to those purchasers who opted out of the above settlement (the “Opt Outs”), there are a number of individual claims and lawsuits alleging personal injuries, breach of warranty claims, or violation of state consumer protection statutes that remain pending (collectively, the “Related Laminate Matters”). Certain of these Related Laminate Matters were settled in 2018, while some remain in settlement negotiations. The Company recognized charges to earnings of $3 million and $1 million for the years ended December 31, 2018 and 2017, respectively, within selling, general and administrative expenses for these Remaining Laminate Matters. As of December 31, 2018 the remaining accrual related to these matters is $1.0 million, which has been included in the Accrual for Legal Settlements on the Consolidated Balance Sheet. While the Company believes that a further loss associated with the Opt Outs and Related Laminate Matters is reasonably possible, the Company is unable to reasonably estimate the amount or range of possible loss beyond what has been provided. If the Company incurs losses with the respect to the Opt Outs or further losses with respect to Related Laminate Matters, the ultimate resolution of these actions could have a material adverse effect on the Company’s results of operations, financial condition, and liquidity. Canadian Litigation On or about April 1, 2015, Sarah Steele (“Steele”) filed a purported class action lawsuit in the Ontario, Canada Superior Court of Justice against the Company. In the complaint, Steele’s allegations include strict liability, breach of implied warranty of fitness for a particular purpose, breach of implied warranty of merchantability, fraud by concealment, civil negligence, negligent misrepresentation and breach of implied covenant of good faith and fair dealing. Steele did not quantify any alleged damages in her complaint, but seeks compensatory damages, punitive, exemplary and aggravated damages, statutory remedies, attorneys’ fees and costs. While the Company believes that a loss associated with the Steele litigation is possible, the Company is unable to reasonably estimate the amount or range of possible loss. Lacey Act Related Matters On October 7, 2015, the Company reached a settlement with the Department of Justice (DOJ) with respect to its allegations of violations of the Lacey Act in its importation of certain wood flooring products and the court entered final judgment on February 3, 2016. In connection with this settlement the Company agreed to pay a total of $10 million in fines, community service payments and forfeited proceeds and is subject to a five-year probation period and implemented the Lacey Compliance Plan. The Company has paid the settlement amount including the remaining $1.8 million in the first quarter of 2018. In addition, the Company reached a settlement with the DOJ and paid $3.2 million with respect to certain engineered hardwood flooring determined by the Company to have Lacey Act compliance concerns. California Air Resources Board In March 2016, the Company entered into a settlement agreement with the California Air Resources Board (“CARB”), which did not constitute an admission of wrongdoing by the Company and provided that CARB release the Company from any and all claims that CARB may have had related to certain of its laminate products imported from China. Under the terms of the settlement agreement, the Company paid a total of $2.5 million. Additionally, the Company agreed to implement certain voluntary measures, including a risk-based supplier audit program and testing research program. Consumer Product Safety Commission Matter On June 15, 2016, the Company entered into an agreement with the Office of Compliance and Field Operations of the Consumer Product Safety Commission (“CPSC”) with respect to its laminate products sourced from China. The agreement marked the completion of the CPSC’s evaluation of the safety of those products and did not constitute an admission of wrongdoing by the Company. Under the terms of the agreement, the Company has continued to offer an indoor air quality testing program to its customers at no cost. The CPSC ceased its monitoring of the Company’s program in July of 2017. Securities Class Action On November 17, 2016, the Company received final court approval of the Securities Class Action Stipulation. As a result of the Securities Class Action Stipulation, the Company, through its insurers and in conjunction with the settlement of the Derivative Class Action Settlement described below, contributed $26 million to a settlement fund that will be used to compensate individuals who purchased the Company’s shares of common stock between February 22, 2012 and February 27, 2015. Additionally, the Company issued 1 million shares of its common stock to the settlement fund on November 17, 2016, valued at $16.8 million in the aggregate based on the closing price of the shares at that date. Derivative Litigation Matters On November 17, 2016, the Company received final court approval the Consolidated Derivative Stipulation. As a result of the Consolidated Derivative Stipulation, the Company implemented certain corporate governance changes, received a $26 million insurance payment (which the Company used to fully fund the securities class action settlement summarized above), and paid additional net expenses of $2.5 million related to the derivative class action settlement. Employee Classification Matter During the second half of 2017, current and former store managers, filed purported class action lawsuits in New York and California on behalf of all current and former store managers, store managers in training, installation sales managers, and similarly situated current and former employees holding comparable positions but different titles (collectively, the “Putative Class Employees”), alleging that the Company violated the Fair Labor Standards Act and certain state laws by classifying the Putative Class Employees as exempt. In both cases the plaintiffs did not quantify any alleged damages but, in addition to attorneys’ fees and costs, the plaintiffs seek class certification, unspecified amount for unpaid wages and overtime wages, liquidated and/or punitive damages, declaratory relief, restitution, statutory penalties, injunctive relief and other damages. The Company disputes the claims and intends to defend both matters vigorously. Given the uncertainty of litigation, the preliminary stage of the case and the legal standards that must be met for, among other things, class certification and success on the merits, the Company is unable to estimate the amount of loss, or range of possible loss, at this time that may result from these actions. Accordingly, no accruals have been made with respect to these matters. Any such losses could potentially have a material adverse effect, individually or collectively, on the Company’s results of operations, financial condition, and liquidity. Antidumping and Countervailing Duties Investigation In October 2010, a conglomeration of domestic manufacturers of multilayered wood flooring filed a petition seeking the imposition of antidumping (“AD”) and countervailing duties (“CVD”) with the United States Department of Commerce (“DOC”) and the United States International Trade Commission (“ITC”) against imports of multilayered wood flooring from China. This ruling applies to companies importing multilayered wood flooring from Chinese suppliers subject to the AD and CVD orders. The Company’s multilayered wood flooring imports from China accounted for approximately 7%, 8%, and 7% of its flooring purchases in 2018, 2017 and 2016, respectively. The Company’s consistent view through the course of this matter has been, and remains, that its imports are neither dumped nor subsidized. As such, it has appealed the original imposition of AD and CVD fees. As part of its processes in these proceedings, the DOC conducts annual reviews of the AD and CVD rates. In such cases, the DOC will issue preliminary rates that are not binding and are subject to comment by interested parties. After consideration of the comments received, the DOC will issue final rates for the applicable period, which may lag by a year or more. At the time of import, the Company makes deposits at the then prevailing rate, even while the annual review is in process. When rates are declared final by the DOC, the Company accrues a receivable or payable depending on where that final rate compares to the deposits it has made. The Company and/or the domestic manufacturers can appeal the final rate for any period and can place a hold on final settlement by U.S. Customs and Border Protection while the appeals are pending. In addition to its overall appeal of the imposition of AD and CVD, which is still pending, the Company as well as other involved parties have appealed many of the final rate determinations. Those appeals are pending and, at times, have resulted in delays in settling the shortfalls and refunds shown in the table below. Because of the length of time for finalization of rates as well as appeals, any subsequent adjustment of AD and CVD rates typically flows through a period different from those in which the inventory was originally purchased and/or sold. The first 5-year Sunset Review of the AD and CVD orders on multilayered wood flooring (the “Sunset Review”) determined, in December 2017, that the AD and CVD orders will remain in place. Results by period for the Company are shown below. The column labeled ‘December 31, 2018 Receivable/Liability Balance’ represents the amount the Company would receive or pay (net of any collections or payments) as the result of subsequent adjustment to rates whether due to finalization by the DOC or because of action of a court based on appeals by various parties. It does not include any initial amounts paid for AD or CVD in the current period at the in-effect rate at that time. The Company recorded net interest expense related to antidumping of $1.2 million, with the amount included in other expense on the Statements of Operations. The estimated associated interest payable and receivable for each period is not included in the table below and is included in the same financial statement line item on the Company’s consolidated balance sheet as the associated liability and receivable balance for each period. Review Rates at which December 31, 2018 Period Period Covered Company Final Rate Receivable/Liability Deposited Balance Antidumping 1 May 2011 through 6.78% and 3.3% 0.73% 1 $1.3 million November 2012 receivable 1 2 December 2012 through 3.30% 13.74% $4.1 million November 2013 liability 3 December 2013 through 3.3% and 5.92% 17.37% $5.5 million November 2014 liability 4 December 2014 through 5.92% and 13.74% 0.0% $0. 03 million November 2015 receivable 5 December 2015 through 5.92%. 13.74%. and 17.37% 0.0% 2 $2.6 million November 2016 receivable 2 6 December 2016 through 17.37% and 0.0% Pending 3 NA November 2017 7 December 2017 through 0.00% Pending NA November 2018 Included on the Consolidated Balance Sheet in Other Current Assets $2.63 million Included on the Consolidated Balance Sheet in Other Assets $1.3 million Included on the Consolidated Balance Sheet in Other Long-Term Liabilities $9.6 million Countervailing 1&2 April 2011 through 1.50% 0.83% / 0.99% $0.2 million December 2012 receivable 3 January 2013 through 1.50% 1.38% $0.05 million 4 January 2014 through 1.50% and 0.83% 1.06% $0.02 million 5 January 2015 through 0.83% and 0.99% Final at 0.11% and 0.85% 4 $0.08 million 4 6 January 2016 through 0.99% and 1.38% Pending NA 7 January 2017 through 1.38% and 1.06% Pending NA 8 January 2018 through 1.06% Pending NA Included on the Consolidated Balance Sheet in Other Current Assets $0.08 million Included on the Consolidated Balance Sheet in Other Assets $0.27 million 1 In the second quarter of 2018, the Court of International Trade sustained the DOC’s recommendation to reduce the rate for the first annual review period to 0.73% (from 5.92%). As a result, the Company reversed its $0.8 million liability and recorded a $1.3 million receivable with a corresponding reduction of Cost of Sales during the year ended December 31, 2018. 2 In the third quarter of 2018, the DOC issued the final rates for review period 5 at 0.0%. As a result, the Company recorded a receivable of $2.8 million with a corresponding reduction of Cost of Sales during the year ended December 31, 2018. 3 The preliminary AD rate was a maximum of 48.26%. If the preliminary ruling regarding the AD Rate were to be finalized, the Company anticipates it would record a net liability of approximately $1. 1 million. 4 In June 2018, the DOC issued the final rates for review period 5 at 0.11% and 0.85% depending on vendor. As a result, in the second quarter of 2018 the Company recorded a receivable of $0.07 million for deposits made at previous preliminary rates, with a corresponding reduction of Cost of Sales. Other Matters The Company is also, from time to time, subject to claims and disputes arising in the normal course of business. In the opinion of management, while the outcome of any such claims and disputes cannot be predicted with certainty, its ultimate liability in connection with these matters is not expected to have a material adverse effect on the Company’s results of operations, financial position or liquidity. |
Selected Quarterly Financial In
Selected Quarterly Financial Information (unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Selected Quarterly Financial Information (unaudited) [Abstract] | |
Selected Quarterly Financial Information (unaudited) | Note 11. Selected Quarterly Financial Information (unaudited) The following tables present the Company’s unaudited quarterly results for 2018 and 2017. Quarter Ended March 31, June 30, September 30, December 31, 2018 2018 2018 2018 Net Sales $ 261,772 $ 283,474 $ 270,469 $ 268,921 Gross Profit 94,972 101,310 100,682 95,976 Selling, General and Administrative Expenses 96,418 102,223 93,987 150,885 Operating (Loss) Income (1,446) (913) 6,695 (54,909) Net (Loss) Income $ (1,972) $ (1,454) $ 5,923 $ (56,876) Net (Loss) Income per Common Share - Basic $ (0.07) $ (0.05) $ 0.21 $ (1.99) Net (Loss) Income per Common Share - Diluted $ (0.07) $ (0.05) $ 0.21 $ (1.99) Number of Stores Opened in Quarter, net 5 8 3 4 Comparable Store Net Sales Increase 2.9 % 4.7 % 2.1 % 0.4 % Quarter Ended March 31, June 30, September 30, December 31, 2017 2017 2017 2017 Net Sales $ 248,389 $ 263,500 $ 257,185 $ 259,859 Gross Profit 86,799 97,455 92,687 92,120 Selling, General and Administrative Expenses 112,215 92,335 109,962 91,515 Operating (Loss) Income (25,416) 5,120 (17,275) 605 Net (Loss) Income $ (26,372) $ 4,475 $ (18,915) $ 2,989 Net (Loss) Income per Common Share - Basic $ (0.93) $ 0.16 $ (0.66) $ 0.10 Net (Loss) Income per Common Share - Diluted $ (0.93) $ 0.16 $ (0.66) $ 0.10 Number of Stores Opened in Quarter 2 — 2 6 Comparable Store Net Sales Increase 4.7 % 8.8 % 3.8 % 4.5 % The following tables present certain items impacting gross profit and SG&A in the Company’s unaudited quarterly results for 2018 and 2017. Operating loss for each of the quarterly periods was impacted by the unusual items in both gross profit and SG&A discussed above and summarized below. These items either relate to revised estimates of legacy reserves, or are significant and infrequent in nature. Quarter Ended March 31, June 30, September 30, December 31, 2018 2018 2018 2018 Gross Margin Items: Antidumping Adjustments $ — $ (2,126) $ (2,822) $ — Tariff Adjustments — — — (1,711) Sub-Total Items above $ — $ (2,126) $ (2,822) $ (1,711) SG&A Items: Accrual for Legal Matters and Settlements $ 250 $ 2,701 $ — $ 61,000 Legal and Professional Fees 1 3,067 3,325 2,991 2,324 All Other 2 — — 1,769 — Sub-Total Items above $ 3,317 $ 6,026 $ 4,760 $ 63,324 Quarter Ended March 31, June 30, September 30, December 31, 2017 2017 2017 2017 Gross Margin Items: Antidumping Adjustments $ — $ (2,797) $ — $ — Indoor Air Quality Testing Program — (993) — — Sub-Total Items above $ — $ (3,790) $ — $ — SG&A Items: Securities and Derivatives Class Action $ 18,000 $ — $ 18,000 $ 960 Legal and Professional Fees 1 2,408 3,526 2,940 2,440 All Other 2 — — 1,459 1,687 Sub-Total Items above $ 20,408 $ 3,526 $ 22,399 $ 5,087 1 Represents charges to earnings related to our defense of various significant legal actions during the period. This does not include all legal costs incurred by the Company. 2 All other primarily relates to various payroll factors, including our retention initiatives, and impairment charges related to discontinuing non-core investments. |
Schedule II - Analysis of Valua
Schedule II - Analysis of Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
Schedule II - Analysis of Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Analysis of Valuation and Qualifying Accounts | Lumber Liquidators Holdings, Inc. Schedule II – Analysis of Valuation and Qualifying Accounts For the Years Ended December 31, 2018, 2017 and 2016 (in thousands) Additions Balance Charged to Beginning Cost and Balance End of Year Expenses Deductions (1) Other of Year For the Year Ended December 31, 2016 Reserve deducted from assets to which it applies Inventory reserve for loss or obsolescence $ 26,882 $ 3,723 $ (23,535) $ — $ 7,070 Income tax valuation allowance $ 2,433 $ 15,207 $ — $ — $ 17,640 For the Year Ended December 31, 2017 Reserve deducted from assets to which it applies Inventory reserve for loss or obsolescence $ 7,070 $ 6,349 $ (7,788) $ — $ 5,631 Income tax valuation allowance $ 17,640 $ 3,936 (2) $ — $ — $ 21,576 For the Year Ended December 31, 2018 Reserve deducted from assets to which it applies Inventory reserve for loss or obsolescence $ 5,631 $ 3,108 $ (1,932) $ — $ 6,807 Income tax valuation allowance $ 21,576 $ 4,742 $ — $ — $ 26,318 1 Deductions are for the purposes for which the reserve was created, including the write-off of laminate flooring in 2016. 2 Includes the impact of the Tax Act, which was enacted on December 22, 2017. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Nature of Business | Nature of Business Lumber Liquidators Holdings, Inc. and its direct and indirect subsidiaries (collectively and, where applicable, individually, the “Company”) engage in business as a multi-channel specialty retailer of hard-surface flooring, and hard-surface flooring enhancements and accessories, operating as a single operating segment. The Company offers an extensive assortment of exotic and domestic hardwood species, engineered hardwood, laminate, resilient vinyl, waterproof vinyl plank and porcelain tile flooring direct to the consumer. The Company also features the renewable flooring products, bamboo and cork, and provides a wide selection of flooring enhancements and accessories, including moldings, noise-reducing underlayment, adhesives and flooring tools. The Company also provides in-home delivery and installation services to its customers. The Company sells primarily to homeowners or to contractors on behalf of homeowners through a network of store locations in metropolitan areas. The Company’s stores spanned 47 states in the United States (“U.S.”) and included eight stores in Canada at December 31, 2018. In addition to the store locations, the Company’s products may be ordered, and customer questions/concerns addressed, through both its call center in Toano, Virginia, and its website, www.lumberliquidators.com. The Company finished the majority of its Bellawood products on its finishing lines in Toano, Virginia, which along with the call center, corporate offices, and a distribution center, represent the “Corporate Headquarters.” In July of 2018, the Company announced its plan to sell its finishing line equipment to an unaffiliated third-party purchaser and to relocate its corporate headquarters to Richmond, Virginia, in 2019. The Company ceased finishing floors in January 2019. |
Organization and Basis of Financial Statement Presentation | Organization and Basis of Financial Statement Presentation The consolidated financial statements of Lumber Liquidators Holdings, Inc., a Delaware corporation, include the accounts of its wholly owned subsidiaries. All significant intercompany transactions have been eliminated in consolidation. In order to conform to the current year presentation, the Company has reclassified net services sales and net cost of services sold on the accompanying consolidated statements of operations for the years ended December 31, 2017 and 2016, respectively, to separate line items from total net sales with the remainder being classified as net merchandise sales and cost of merchandise sold. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. During 2018 and 2017, the Company has recognized significant liabilities related to various legal and regulatory matters. While the payment of these liabilities has had, and is expected to have, a material adverse impact on the Company’s liquidity and cash flow from operations, the Company estimates that it has sufficient liquidity through amounts available under its Revolving Credit Facility and forecasted cash flows from operations to fund its working capital, including these legal and regulatory liabilities. The Company prepares its forecasted cash flow and liquidity estimates based on assumptions that it believes to be reasonable but are also inherently uncertain. Actual future cash flows could differ from these estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company had cash and cash equivalents of $11.6 million and $19.9 million at December 31, 2018 and 2017, respectively. The Company considers all highly liquid investments with a maturity date of three months or less when purchased to be cash equivalents, of which there was zero at December 31, 2018 and 2017, respectively. The Company accepts a range of debit and credit cards, and these transactions are generally transmitted to a bank for reimbursement within 24 hours. The payments due from the banks for these debit and credit card transactions are generally received, or settled, within 24 to 48 hours of the transmission date. The Company considers all debit and credit card transactions that settle in less than seven days to be cash and cash equivalents. Amounts due from the banks for these transactions classified as cash equivalents totaled $7 .3 million and $1 3.3 million at December 31, 2018 and 2017, respectively. |
Credit Programs | Credit Programs Credit is offered to the Company’s customers through a proprietary credit card, underwritten by a third-party financial institution and at no recourse to the Company. A credit line is offered to the Company’s professional customers through the Lumber Liquidators Commercial Credit Program. This commercial credit program is underwritten by a third-party financial institution, generally with no recourse to the Company. As part of the credit program, the Company’s customers may tender their Lumber Liquidators credit card to receive installation services. As of December 31, 2018, the Company utilized a network of associates to perform certain customer-facing, consultative services and coordinate the installation of its flooring products by third-party independent contractors in all of its stores. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of financial instruments such as cash and cash equivalents, accounts payable and other liabilities approximates fair value because of the short-term nature of these items. The carrying amount of obligations under its Revolving Credit Facility approximates fair value due to the variable rate of interest. |
Merchandise Inventories | Merchandise Inventories The Company values merchandise inventories at the lower of cost and net realizable value. The method by which amounts are removed from inventory is weighted average cost. All of the hardwood flooring purchased from vendors is either prefinished or unfinished, and in immediate saleable form. Inventory cost includes the costs of bringing an article to its existing condition and location such as shipping and handling and import tariffs. Prior to the sale of the finishing line equipment in 2018, the Company would add the finish to, and box, various species of unfinished product, to produce certain proprietary products, primarily Bellawood. Any finishing and boxing costs were included in the average unit cost of related merchandise inventory. In addition, the Company maintains an inventory reserve for loss or obsolescence based on historical results and current sales trends. This reserve was $6.8 million and $5.6 million at December 31, 2018 and 2017, respectively. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company evaluates potential impairment losses on long-lived assets used in operations when events and circumstances indicate that the assets may be impaired, and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amounts of those assets. If impairment exists and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amount of those assets, an impairment loss is recorded based on the difference between the carrying value and fair value of the assets. During 2018, the Company decided to exit the finishing business and entered into an agreement to sell this equipment to a third party, which altered the Company’s expectations of future cash flows from these long-lived assets. As a result, the Company tested certain long-lived assets for impairment and recorded a $1.8 million impairment charge within selling, general and administrative (“SG&A”) expenses in its accompanying consolidated statements of operations. The charge was measured as the difference between the fair value (Level 2 inputs under ASC 820) of the assets and the carrying value of the related net assets based on the contract to sell to a third party. The Company received $0.8 million in connection with this transaction during 2018 and has $1.0 million in assets held-for-sale, included in Other Current Assets on the Consolidated Balance Sheet as of December 31, 2018. During 2017, the Company determined that the carrying value of certain assets that had once been part of a discontinued vertical integration strategy was above their fair value and recorded an impairment charge of $1.5 million within SG&A expenses in the consolidated statements of operations. The charge was measured as the difference between the fair value (Level 2 inputs under the fair value hierarchy) of the assets and the carrying value of the related net assets based on a contract to sell to a third party. No impairment charges were recognized in 2016. |
Goodwill and Other Indefinite-Lived Intangibles | Goodwill and Other Indefinite-Lived Intangibles Goodwill represents the costs in excess of the fair value of net assets acquired associated with acquisitions by the Company. Other assets include $0.8 million for an indefinite-lived intangible asset for the phone number 1‑800‑HARDWOOD and related internet domain names. The Company evaluates these assets for impairment on an annual basis, or whenever events or changes in circumstance indicate that the asset carrying value exceeds its fair value . Based on the analysis performed, the Company has concluded that no impairment in the value of these assets has occurred. |
Self-Insurance | Self-Insurance The Company is self-insured for certain employee health benefit claims and for certain workers’ compensation claims. The Company estimates a liability for aggregate losses below stop-loss coverage limits based on estimates of the ultimate costs to be incurred to settle known claims and claims incurred but not reported as of the balance sheet date. The estimated liability is not discounted and is based on a number of assumptions and factors including historical and industry trends and economic conditions. This liability could be affected if future occurrences and claims differ from these assumptions and historical trends. As of December 31, 2018 and 2017, the Company had accruals of $2.4 million and $2.1 million, respectively, related to estimated claims was included in other current liabilities. |
Recognition of Net Sales | Recognition of Net Sales In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (“Topic 606”), Revenue from Contracts with Customers , which superseded the revenue recognition requirements in Topic 605, Revenue Recognition , including most industry-specific revenue recognition guidance. The core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services and when control of those goods and services has passed to the customer. The Company adopted Topic 606 as of January 1, 2018 using the modified retrospective transition method. However, because adoption of the standard did not change the timing or amount of the Company’s recognition of revenue and because the Company does not recognize revenues for partial contracts, there was no adjustment to retained earnings needed as part of the adoption of the new standard. The Company generates revenues primarily by retailing merchandise in the form of hardwood and porcelain flooring and accessories. Additionally, the Company expands its revenues by offering services to deliver and/or install this merchandise for its customers; it considers these services to be separate performance obligations. The separate performance obligations are detailed on the customer’s invoice(s) and the customer often purchases flooring merchandise without purchasing installation or delivery services. Sales occur through a network of 413 stores, which spanned 47 states, including eight stores in Canada at December 31, 2018. In addition, both the merchandise and services can be ordered through a call center and from the Company’s website, www.lumberliquidators.com. The Company’s agreements with its customers are of short duration (less than a year) and as such the Company has elected not to disclose revenue for partially satisfied contracts that will be completed in the days following the end of a period as permitted by GAAP. The Company reports its revenues exclusive of sales taxes collected from customers and remitted to governmental taxing authorities, consistent with past practice. Revenue is based on consideration specified in a contract with a customer and excludes any sales incentives from vendors and amounts collected on behalf of third parties. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product to a customer or performing service for a customer. Revenues from installation and freight services are recognized when the delivery is made or the installation is complete, which approximates the recognition of revenue over time due to the short duration of service provided. The price of the Company’s merchandise and services is specified in the respective contract and detailed on the invoice agreed to with the customer including any discounts. The Company generally requires customers to pay a deposit, equal to approximately half of the retail sales value, when ordering merchandise not regularly carried in a given location or not currently in stock. In addition, the Company generally does not extend credit to its customers with payment due in full at the time the customer takes possession of merchandise or when the service is provided. Customer payments and deposits received in advance of the customer taking possession of the merchandise or receiving the services are recorded as deferred revenues in the accompanying consolidated balance sheet caption Customer Deposits and Store Credits. The following table shows the activity in this account for the periods noted: Year Ended December 31, 2018 2017 2016 Customer Deposits and Store Credits, Beginning Balance $ (38,546) $ (32,639) $ (33,771) New Deposits (1,155,019) (1,101,841) (1,021,880) Recognition of Revenue 1,084,636 1,028,933 960,588 Sales Tax included in Customer Deposits 67,125 66,028 63,422 Other 1,472 973 (998) Customer Deposits and Store Credits, Ending Balance $ (40,332) $ (38,546) $ (32,639) Subject to limitations under the Company’s policy, return of unopened merchandise is accepted for 90 days. The amount of revenue recognized for flooring merchandise is adjusted for expected returns, which are estimated based on the Company’s historical data, current sales levels and forecasted economic trends. The Company uses the expected value method to estimate returns because it has a large number of contracts with similar characteristics. The Company previously recognized revenue in full, recorded an allowance for expected returns (contra-revenue) and recorded a separate refund liability for expected returns. The Company reduces revenue by the amount of expected returns and records it within Accrued Expenses and Other on the consolidated balance sheet. The Company continues to estimate the amount of returns based on the historical data. In addition, the Company recognizes a related asset for the right to recover returned merchandise and records it in the Other Current Assets caption of the accompanying consolidated balance sheet. This amount was $1.2 million at December 31, 2018. The Company recognizes sales commissions as incurred since the amortization period is less than one year. The Company offers a range of limited warranties for the durability of the finish on its prefinished products. These limited warranties range from one to 100 years, with lifetime warranties for certain of the Company’s products. Warranty reserves are based primarily on claims experience, sales history and other considerations. Warranty costs are recorded in Cost of Sales. We offer hundreds of different flooring products; however, no single flooring product represented a significant portion of our sales mix. By major product category, our sales mix was as follows: Year Ended December 31, 2018 2017 2016 Manufactured Products 1 $ 392,512 36 % $ 315,369 31 % $ 248,234 26 % Solid and Engineered Hardwood 367,026 34 % 423,301 41 % 452,248 47 % Moldings and Accessories and Other 196,411 18 % 199,599 19 % 195,130 20 % Installation and Delivery Services 128,687 12 % 90,664 9 % 64,976 7 % Total $ 1,084,636 100 % $ 1,028,933 100 % $ 960,588 100 % 1 Includes laminate, vinyl, engineered vinyl plank and porcelain tile. |
Cost of Sales | Cost of Sales Cost of sales includes the cost of products sold, including tariffs, the cost of installation services, and transportation costs from vendors to the Company’s distribution centers or store locations. It also includes any applicable finishing costs related to production of the Company’s proprietary brands, transportation costs from distribution centers to store locations, transportation costs for the delivery of products from store locations to customers, certain costs of quality control procedures, warranty and customer satisfaction costs, inventory adjustments including obsolescence and shrinkage, and costs to produce samples, which are net of vendor allowances. The Company offers a range of limited warranties for the durability of the finish on its prefinished products to its services provided. These limited warranties range from one to 100 years, with lifetime warranties for certain of the Company’s products. Warranty reserves are based primarily on claims experience, sales history and other considerations, including payments made to satisfy customers for claims not directly related to the warranty on the Company’s products. Warranty costs are recorded in cost of sales. This reserve was $1.4 million and $1. 6 million at December 31, 2018 and 2017, respectively. The Company seeks recovery from its vendors and third-party independent contractors of installation services for certain amounts paid. Vendor allowances primarily consist of volume rebates that are earned as a result of attaining certain purchase levels and reimbursement for the cost of producing samples. Vendor allowances are accrued as earned, with those allowances received as a result of attaining certain purchase levels accrued over the incentive period based on estimates of purchases. Volume rebates earned are initially recorded as a reduction in merchandise inventories and a subsequent reduction in cost of sales when the related product is sold. Reimbursement received for the cost of producing samples is recorded as an offset against cost of sales. |
Accrual for Air Quality Emissions Screening Test Costs | Accrual for Air Quality Emissions Screening Test Costs The Company offers a free indoor air quality testing program for customers who purchased laminate flooring sourced from China during the period from February 22, 2012 to February 27, 2015. The Company established a reserve to provide for the estimated future expenses required to support the program. Reserve estimates are based on management’s judgment, considering such factors as cost per air quality testing request, recent historical experience, and the anticipated number of future requests for the duration of the program. Management reviews and adjusts these estimates, if necessary, on a quarterly basis based on any differences in actual and expected program cost experience. During the second quarter of 2017, the Company reduced its estimate of the number of test kit requests based on its experience, and reduced its estimate of the administrative costs of the Air Quality Testing Program. The revised estimates were in part prompted by the CPSC’s July 2017 decision to close this case with the Company and terminate its monitoring activity of the Air Quality Testing Program. The Company will continue to offer tests kits to qualifying customers, but the lower total estimated future costs of the Air Quality Testing Program resulted in a reduction in the reserve and the corresponding offset to cost of sales of $1 million. At December 31, 2017, the Company’s estimate of its future costs for the Air Quality Testing Program through June 30, 2018 was approximately $0.1 million. Since that time, costs related to the Company’s Air Quality Testing Program have been expensed as incurred and have not been significant. |
Advertising Costs | Advertising Costs Advertising costs charged to selling, general and administrative (“SG&A”) expenses, net of vendor allowances, were $74,242, $76,586 and $80,079 in 2018, 2017 and 2016, respectively. The Company uses various types of media to brand its name and advertise its products. Media production costs are generally expensed as incurred, except for direct mail, which is expensed when the finished piece enters the postal system. Media placement costs are generally expensed in the month the advertising occurs, except for contracted endorsements and sports agreements, which are generally expensed ratably over the contract period. Amounts paid in advance are included in prepaid expenses and totaled $564 and $1,077 at December 31, 2018 and 2017, respectively. |
Store Opening Costs | Store Opening Costs Costs to open new store locations are charged to SG&A expenses as incurred, net of any vendor support. |
Other Vendor Consideration | Other Vendor Consideration Consideration from non-merchandise vendors, including royalties and rebates, are generally recorded as an offset to SG&A expenses when earned. |
Depreciation and Amortization | Depreciation and Amortization Property and equipment is carried at cost and depreciated on the straight-line method over the estimated useful lives. The estimated useful lives for leasehold improvements are the shorter of the estimated useful lives or the remainder of the lease terms. For leases with optional renewal periods for which renewal is not reasonably assured, the Company uses the original lease term, excluding optional renewal periods, to determine the appropriate estimated useful lives. Capitalized software costs are capitalized from the time that technological feasibility is established until the software is ready for use. The estimated useful lives are generally as follows: Years Buildings and Building Improvements 7 to 40 Property and Equipment 3 to 15 Computer Software and Hardware 3 to 10 Leasehold Improvements 1 to 15 |
Operating Leases | Operating Leases The Company has operating leases for its stores, current corporate headquarters in Toano, Virginia, certain of its distribution facilities, supplemental office facilities and certain equipment. The lease agreements for certain stores and distribution facilities contain rent escalation clauses, rent holidays and tenant improvement allowances. For scheduled rent escalation clauses during the lease terms or for rental payments commencing at a date other than the date of initial occupancy, the Company records minimum rental expenses in SG&A expenses on a straight-line basis over the terms of the leases. The difference between the rental expense and rent paid is recorded as deferred rent on the consolidated balance sheets. For tenant improvement allowances, the Company records deferred rent on the consolidated balance sheets and amortizes the deferred rent over the terms of the leases as reductions to rental expense. |
Stock-Based Compensation | Stock-Based Compensation The Company records compensation expense associated with stock options and other forms of equity compensation in accordance with ASC 718. The Company may issue incentive awards, including performance-based awards, in the form of stock options, restricted shares and other equity awards to employees, non-employee directors and other service providers. The Company recognizes expense for the majority of its stock-based compensation based on the fair value of the awards that are granted. For awards granted to non-employee directors, expense is recognized based on the fair value of the award at the end of a reporting period. For performance-based awards granted to certain members of senior management, the Company recognizes expense after assessing the probability of the achievement of certain financial metrics on a periodic basis. Compensation expense is recognized only for those awards expected to vest, with forfeitures estimated at the date of grant based on historical experience and future expectations. Measured compensation cost is recognized ratably over the requisite service period of the entire related stock-based compensation award. |
Foreign Currency Translation | Foreign Currency Translation The Company’s Canadian operations use the Canadian dollar as the functional currency. Assets and liabilities are translated at exchange rates in effect at the balance sheet date. Revenues and expenses are translated at the average monthly exchange rates during the year. Resulting translation adjustments are recorded as a component of accumulated other comprehensive income on the consolidated balance sheets. |
Income Taxes | Income Taxes Income taxes are accounted for in accordance with ASC 740 (“ASC 740”). Income taxes are provided for under the asset and liability method and consider differences between the tax and financial accounting bases. The tax effects of these differences are reflected on the consolidated balance sheets as deferred income taxes and measured using the effective tax rate expected to be in effect when the differences reverse. ASC 740 also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some portion of the deferred tax asset will not be realized. In evaluating the need for a valuation allowance, the Company takes into account various factors, including the nature, frequency and severity of current and cumulative losses, expected level of future taxable income, the duration of statutory carryforward periods and tax planning alternatives. In future periods, any valuation allowance will be re-evaluated in accordance with ASC 740, and a change, if required, will be recorded through income tax expense in the period such determination is made. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the relevant taxing authorities, based on the technical merits of its position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company classifies interest and penalties related to income tax matters as a component of income tax expense. |
Net Income per Common Share | Net Income per Common Share Basic net income per common share is determined by dividing net income by the weighted average number of common shares outstanding during the year. Diluted net income per common share is determined by dividing net income by the weighted average number of common shares outstanding during the year, plus the dilutive effect of common stock equivalents, including stock options and restricted shares. Common stock and common stock equivalents included in the computation represent shares issuable upon assumed exercise of outstanding stock options and release of restricted shares, except when the effect of their inclusion would be antidilutive. |
Recent Accounting Pronouncements Not Yet Adopted | Recent Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued Accounting Standards Update No. 2016-02 (“ASU 2016-02”), which creates ASC Topic 842, Leases , and supersedes the lease accounting requirements in Topic 840, Leases . In summary, Topic 842 requires organizations that lease assets — referred to as “lessees” — to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. The amendments in ASU 2016-02 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company adopted this ASU on January 1, 2019 on a modified retrospective basis and will not restate prior periods. The Company has implemented software to track and account for the leases, assessed the impact of the new guidance on its consolidated financial statements and financial controls. Presentation of leases within the consolidated statements of operations and consolidated statements of cash flows will be generally consistent with the current lease accounting guidance. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, will allow the Company to carryforward the historical lease classification. On January 1, 2019, the Company will make an accounting policy election that payments under agreements with an initial term of 12 months or less will not be included on the Consolidated Balance Sheet but will be recognized in the Consolidated Statements of Operations on a straight-line basis over the term of the agreement. The Company estimates that the adoption of the standard will result in recognition of right-of-use lease assets and lease liabilities in the approximate range of $115 million to $125 million on the Company’s consolidated Balance Sheet primarily related to more than 400 store operating leases. In August 2018, the FASB issued Accounting Standards Update No. 2018-15 (“ASU 2018-15”), which provides guidance on the accounting for costs of implementation activities performed in a cloud computing arrangement that is a service contract, as initially published in Accounting Standards Update No. 2015-05, Intangibles—Goodwill and Other—Internal-Use Software: Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. In summary, the new standard requires customers of cloud computing services to recognize an intangible asset for the software license and, to the extent that payments attributable to the software license are made over time, a liability is also recognized. The new standard also allows customers of cloud computing services to capitalize certain implementation costs. The amendments in ASU 2018-15 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Therefore, the new standard will become effective for the Company at the beginning of its 2020 fiscal year, although early adoption is permitted for all entities. The Company will evaluate the impact of ASU 2018-15 when recording cloud computing arrangements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of Deferred Revenues | The following table shows the activity in this account for the periods noted: Year Ended December 31, 2018 2017 2016 Customer Deposits and Store Credits, Beginning Balance $ (38,546) $ (32,639) $ (33,771) New Deposits (1,155,019) (1,101,841) (1,021,880) Recognition of Revenue 1,084,636 1,028,933 960,588 Sales Tax included in Customer Deposits 67,125 66,028 63,422 Other 1,472 973 (998) Customer Deposits and Store Credits, Ending Balance $ (40,332) $ (38,546) $ (32,639) |
Sales Mix by Major Product | We offer hundreds of different flooring products; however, no single flooring product represented a significant portion of our sales mix. By major product category, our sales mix was as follows: Year Ended December 31, 2018 2017 2016 Manufactured Products 1 $ 392,512 36 % $ 315,369 31 % $ 248,234 26 % Solid and Engineered Hardwood 367,026 34 % 423,301 41 % 452,248 47 % Moldings and Accessories and Other 196,411 18 % 199,599 19 % 195,130 20 % Installation and Delivery Services 128,687 12 % 90,664 9 % 64,976 7 % Total $ 1,084,636 100 % $ 1,028,933 100 % $ 960,588 100 % 1 Includes laminate, vinyl, engineered vinyl plank and porcelain tile. |
Estimated Useful Lives of Property Plant and Equipment | The estimated useful lives are generally as follows: Years Buildings and Building Improvements 7 to 40 Property and Equipment 3 to 15 Computer Software and Hardware 3 to 10 Leasehold Improvements 1 to 15 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of: December 31, 2018 2017 Land $ 4,937 $ 4,937 Building 44,319 44,299 Property and Equipment 53,411 60,337 Computer Software and Hardware 54,375 50,415 Leasehold Improvement 46,297 40,277 Assets under Construction 767 596 204,106 200,861 Less: Accumulated Depreciation and Amortization 110,417 100,370 Property and Equipment, net $ 93,689 $ 100,491 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities [Abstract] | |
Other Long-Term Liabilities | Other long-term liabilities consisted of: December 31, 2018 2017 Antidumping and Countervailing Duties Accrual $ 11,456 $ 10,372 Deferred Rent 4,850 5,150 Lease Incentive Obligation 2,864 2,872 Other 1,033 841 Other Long Term Liabilities $ 20,203 $ 19,235 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Future Minimum Rental Payments under Non-Cancellable Operating Leases | At December 31, 2018, the future minimum rental payments under non-cancellable operating leases were as follows: Operating Leases Distribution Total Headquarters & Centers & Other Operating Store Leases Leases Leases 2019 $ 33,689 $ 2,385 $ 36,074 2020 30,697 2,123 32,820 2021 24,402 2,168 26,570 2022 18,492 2,147 20,639 2023 12,496 2,186 14,682 Thereafter 22,374 2,054 24,428 Total minimum lease payments $ 142,150 $ 13,063 $ 155,213 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity [Abstract] | |
Computation of Basic and Diluted Net Income Per Common Share | The following table sets forth the computation of basic and diluted net income per common share: Year Ended December 31, 2018 2017 2016 Net Loss $ (54,379) $ (37,823) $ (68,563) Weighted Average Common Shares Outstanding—Basic 28,571 28,407 27,284 Effect of Dilutive Securities: Common Stock Equivalents — — — Weighted Average Common Shares Outstanding—Diluted 28,571 28,407 27,284 Net Loss per Common Share—Basic $ (1.90) $ (1.33) $ (2.51) Net Loss per Common Share—Diluted $ (1.90) $ (1.33) $ (2.51) |
Anti-Dilutive Securities Excluded from Computation of Weighted Average Common Shares Outstanding Diluted | The following have been excluded from the computation of Weighted Average Common Shares Outstanding—Diluted because the effect would be antidilutive: As of December 31, 2018 2017 2016 Stock Options 643,422 653,019 666,538 Restricted Shares 407,319 432,777 516,072 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Stock-Based Compensation [Abstract] | |
Summary of Activity Related to Stock Options | The following table summarizes activity related to stock options: Remaining Weighted Average Aggregate Average Contractual Intrinsic Shares Exercise Price Term (Years) Value Balance, December 31, 2015 692,776 $ 31.45 7.7 $ 1,283 Granted 443,147 13.51 Exercised (60,781) 9.37 Forfeited (239,528) 27.16 Balance, December 31, 2016 835,614 $ 24.86 7.5 $ 1,167 Granted 127,984 22.09 Exercised (87,955) 15.31 Forfeited (185,975) 25.62 Balance, December 31, 2017 689,668 $ 25.31 7.7 $ 8,530 Granted 215,297 20.54 Exercised (43,510) 17.70 Forfeited (128,870) 33.25 Balance, December 31, 2018 732,585 $ 22.97 7.3 $ — Exercisable at December 31, 2018 303,898 $ 28.47 $ — Vested and expected to vest December 31, 2018 732,585 $ 22.97 $ — |
Ranges of Assumptions | The following are the average assumptions for the periods noted: Year Ended December 31, 2018 2017 2016 Expected dividend rate — % — % — % Expected stock price volatility 55 % 55 % 55 % Risk-free interest rate 2.8 % 1.7 % 1.3 % Expected term of options 5.5 years 5.5 years 5.5 years |
Summary of Activity Related to Restricted Stock Awards | The following table summarizes activity related to restricted shares: Weighted Average Grant Date Fair Shares Value Nonvested, December 31, 2015 461,671 $ 23.61 Granted 343,517 12.41 Released (130,523) 24.23 Forfeited (88,478) 18.29 Nonvested, December 31, 2016 586,187 $ 17.71 Granted 207,196 19.56 Released (205,349) 18.31 Forfeited (108,288) 15.68 Nonvested, December 31, 2017 479,746 $ 18.71 Granted 224,835 22.39 Released (137,064) 18.67 Forfeited (80,305) 17.98 Nonvested, December 31, 2018 487,212 $ 20.54 |
Summary of Activities Related to Stock Appreciation Rights | The following table summarizes activity related to SARs: Remaining Weighted Average Aggregate Average Contractual Intrinsic Shares Exercise Price Term (Years) Value Balance, December 31, 2015 16,057 $ 47.58 6.8 $ — Granted 13,071 15.31 Exercised — — Forfeited (460) 62.87 Balance, December 31, 2016 28,668 $ 32.63 7.5 $ 6 Granted 2,899 17.39 Exercised (165) 24.35 Forfeited (14,852) 45.93 Balance, December 31, 2017 16,550 $ 18.10 8.6 $ 251 Granted 1,738 23.31 Exercised — — Forfeited (335) 86.16 Balance, December 31, 2018 17,953 $ 17.33 7.8 $ — Exercisable at December 31, 2018 7,504 $ 17.69 7.5 $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes [Abstract] | |
Components of (Loss) Income Before Income Taxes | Year Ended December 31, 2018 2017 2016 United States $ (52,473) $ (38,258) $ (92,874) Foreign (927) (299) (1,399) Total Loss before Income Taxes $ (53,400) $ (38,557) $ (94,273) |
(Benefit) Provision for Income Taxes | Year Ended December 31, 2018 2017 2016 Current Federal $ — $ 2,254 $ (36,801) State 607 146 (3,269) Foreign 132 112 155 Total Current 739 2,512 (39,915) Deferred Federal 140 (2,087) 11,184 State 100 (1,159) 3,021 Total Deferred 240 (3,246) 14,205 Income Tax Expense (Benefit) $ 979 $ (734) $ (25,710) |
Reconciliation of Significant Differences Between Income Tax Expenses Applying Federal Statutory Rate to Actual Income Tax Expense at Effective Rate | Year Ended December 31, 2018 2017 2016 Income Tax Benefit at Federal Statutory Rate $ (11,214) 21.0 % $ (13,495) 35.0 % $ (32,995) 35.0 % Increases (Decreases): State Income Taxes, Net of Federal Income Tax Benefit 723 (1.3) % (740) 1.9 % (2,275) 2.4 % Valuation Allowance 3,897 (7.3) % 3,826 (10.0) % 15,207 (16.1) % Foreign Operations 132 (0.3) % 221 (0.5) % (2,465) 2.6 % Uncertain Tax Position related to Investigatory Settlements 2,919 (5.5) — — % — — % Non-Deductible Fines and Penalties 4,011 (7.5) % 1,156 (3.0) % 875 (0.9) % Federal Rate Change — — % 8,088 (21.0) % — — % Capital Loss — — % — — % (4,020) 4.3 % Other 511 (0.9) % 210 (0.5) % (37) — % Income Tax Expense (Benefit) $ 979 (1.8) % $ (734) 1.9 % $ (25,710) 27.3 % |
Tax Effects of Temporary Differences that Result in Significant Portions of Deferred Tax Accounts | December 31, 2018 2017 Deferred Tax Liabilities: Depreciation and Amortization and Other $ (10,672) $ (11,664) Total Gross Deferred Tax Liabilities (10,672) (11,664) Deferred Tax Assets: Stock-Based Compensation Expense 2,348 2,375 Legal Settlement Reserves 14,251 9,120 Other Accruals and Reserves 4,811 5,598 Employee Benefits 1,018 1,745 Inventory Reserves 1,896 1,708 Inventory Capitalization 3,492 2,647 Foreign Net Operating Losses 3,153 2,891 Net Operating Loss Carryforwards 2,445 3,789 Capital Loss Carryforwards and Other 2,784 2,815 Total Gross Deferred Tax Assets 36,198 32,688 Less Valuation Allowance (26,318) (21,576) Total Net Deferred Tax Assets 9,880 11,112 Net Deferred Tax Liability $ (792) $ (552) |
Reconciliation of the Beginning and Ending Amount of Gross Unrecognized Tax Benefits, Excluding Interest and Penalties | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits, excluding interest and penalties, is as follows: Year Ended December 31, 2018 2017 2016 Balance at beginning of year 27 208 396 Increases for tax positions related to current year 3,583 — 123 Increases for tax positions related to prior years — 33 — Lapse of statue — (208) (311) Federal tax rate change — (6) — Balance at end of year $ 3,610 $ 27 $ 208 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies [Abstract] | |
Schedule of Other Commitments | Review Rates at which December 31, 2018 Period Period Covered Company Final Rate Receivable/Liability Deposited Balance Antidumping 1 May 2011 through 6.78% and 3.3% 0.73% 1 $1.3 million November 2012 receivable 1 2 December 2012 through 3.30% 13.74% $4.1 million November 2013 liability 3 December 2013 through 3.3% and 5.92% 17.37% $5.5 million November 2014 liability 4 December 2014 through 5.92% and 13.74% 0.0% $0. 03 million November 2015 receivable 5 December 2015 through 5.92%. 13.74%. and 17.37% 0.0% 2 $2.6 million November 2016 receivable 2 6 December 2016 through 17.37% and 0.0% Pending 3 NA November 2017 7 December 2017 through 0.00% Pending NA November 2018 Included on the Consolidated Balance Sheet in Other Current Assets $2.63 million Included on the Consolidated Balance Sheet in Other Assets $1.3 million Included on the Consolidated Balance Sheet in Other Long-Term Liabilities $9.6 million Countervailing 1&2 April 2011 through 1.50% 0.83% / 0.99% $0.2 million December 2012 receivable 3 January 2013 through 1.50% 1.38% $0.05 million 4 January 2014 through 1.50% and 0.83% 1.06% $0.02 million 5 January 2015 through 0.83% and 0.99% Final at 0.11% and 0.85% 4 $0.08 million 4 6 January 2016 through 0.99% and 1.38% Pending NA 7 January 2017 through 1.38% and 1.06% Pending NA 8 January 2018 through 1.06% Pending NA Included on the Consolidated Balance Sheet in Other Current Assets $0.08 million Included on the Consolidated Balance Sheet in Other Assets $0.27 million 1 In the second quarter of 2018, the Court of International Trade sustained the DOC’s recommendation to reduce the rate for the first annual review period to 0.73% (from 5.92%). As a result, the Company reversed its $0.8 million liability and recorded a $1.3 million receivable with a corresponding reduction of Cost of Sales during the year ended December 31, 2018. 2 In the third quarter of 2018, the DOC issued the final rates for review period 5 at 0.0%. As a result, the Company recorded a receivable of $2.8 million with a corresponding reduction of Cost of Sales during the year ended December 31, 2018. 3 The preliminary AD rate was a maximum of 48.26%. If the preliminary ruling regarding the AD Rate were to be finalized, the Company anticipates it would record a net liability of approximately $1. 1 million. 4 In June 2018, the DOC issued the final rates for review period 5 at 0.11% and 0.85% depending on vendor. As a result, in the second quarter of 2018 the Company recorded a receivable of $0.07 million for deposits made at previous preliminary rates, with a corresponding reduction of Cost of Sales. |
Selected Quarterly Financial _2
Selected Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Selected Quarterly Financial Information (unaudited) [Abstract] | |
Unaudited Quarterly Results | The following tables present the Company’s unaudited quarterly results for 2018 and 2017. Quarter Ended March 31, June 30, September 30, December 31, 2018 2018 2018 2018 Net Sales $ 261,772 $ 283,474 $ 270,469 $ 268,921 Gross Profit 94,972 101,310 100,682 95,976 Selling, General and Administrative Expenses 96,418 102,223 93,987 150,885 Operating (Loss) Income (1,446) (913) 6,695 (54,909) Net (Loss) Income $ (1,972) $ (1,454) $ 5,923 $ (56,876) Net (Loss) Income per Common Share - Basic $ (0.07) $ (0.05) $ 0.21 $ (1.99) Net (Loss) Income per Common Share - Diluted $ (0.07) $ (0.05) $ 0.21 $ (1.99) Number of Stores Opened in Quarter, net 5 8 3 4 Comparable Store Net Sales Increase 2.9 % 4.7 % 2.1 % 0.4 % Quarter Ended March 31, June 30, September 30, December 31, 2017 2017 2017 2017 Net Sales $ 248,389 $ 263,500 $ 257,185 $ 259,859 Gross Profit 86,799 97,455 92,687 92,120 Selling, General and Administrative Expenses 112,215 92,335 109,962 91,515 Operating (Loss) Income (25,416) 5,120 (17,275) 605 Net (Loss) Income $ (26,372) $ 4,475 $ (18,915) $ 2,989 Net (Loss) Income per Common Share - Basic $ (0.93) $ 0.16 $ (0.66) $ 0.10 Net (Loss) Income per Common Share - Diluted $ (0.93) $ 0.16 $ (0.66) $ 0.10 Number of Stores Opened in Quarter 2 — 2 6 Comparable Store Net Sales Increase 4.7 % 8.8 % 3.8 % 4.5 % |
Schedule of Certain Items Impacting Gross Profit and Selling General and Administrative Expenses | The following tables present certain items impacting gross profit and SG&A in the Company’s unaudited quarterly results for 2018 and 2017. Operating loss for each of the quarterly periods was impacted by the unusual items in both gross profit and SG&A discussed above and summarized below. These items either relate to revised estimates of legacy reserves, or are significant and infrequent in nature. Quarter Ended March 31, June 30, September 30, December 31, 2018 2018 2018 2018 Gross Margin Items: Antidumping Adjustments $ — $ (2,126) $ (2,822) $ — Tariff Adjustments — — — (1,711) Sub-Total Items above $ — $ (2,126) $ (2,822) $ (1,711) SG&A Items: Accrual for Legal Matters and Settlements $ 250 $ 2,701 $ — $ 61,000 Legal and Professional Fees 1 3,067 3,325 2,991 2,324 All Other 2 — — 1,769 — Sub-Total Items above $ 3,317 $ 6,026 $ 4,760 $ 63,324 Quarter Ended March 31, June 30, September 30, December 31, 2017 2017 2017 2017 Gross Margin Items: Antidumping Adjustments $ — $ (2,797) $ — $ — Indoor Air Quality Testing Program — (993) — — Sub-Total Items above $ — $ (3,790) $ — $ — SG&A Items: Securities and Derivatives Class Action $ 18,000 $ — $ 18,000 $ 960 Legal and Professional Fees 1 2,408 3,526 2,940 2,440 All Other 2 — — 1,459 1,687 Sub-Total Items above $ 20,408 $ 3,526 $ 22,399 $ 5,087 1 Represents charges to earnings related to our defense of various significant legal actions during the period. This does not include all legal costs incurred by the Company. 2 All other primarily relates to various payroll factors, including our retention initiatives, and impairment charges related to discontinuing non-core investments. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2017USD ($) | Dec. 31, 2018USD ($)statestore | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Organization And Business Operations [Line Items] | |||||
Number of states in which stores operates | state | 47 | ||||
Cash and cash equivalents | $ 11,565 | $ 19,938 | $ 10,271 | $ 26,703 | |
Due from Banks | 7,300 | 13,300 | |||
Inventory valuation reserves | 6,800 | 5,600 | |||
Inventory lower of cost or market adjustment | 3,108 | 6,349 | 3,723 | ||
Received from sale of equipment | 800 | ||||
Proceeds from assets held for sale | 1,000 | ||||
Long-lived asset impairment charge | 1,800 | 1,500 | 0 | ||
Indefinite-lived intangible assets (excluding goodwill) | 800 | ||||
Reduction of indoor air quality testing program reserve | $ 1,000 | ||||
Indoor air quality testing program reserve | 100 | ||||
Current self insurance reserve | $ 2,400 | 2,100 | |||
Minimum years of product warranty | 1 year | ||||
Maximum years of product warranty | 100 years | ||||
Right to recover merchandise asset | $ 1,200 | ||||
Product warranty reserve | 1,400 | 1,600 | |||
Advertising expense | 74,242 | 76,586 | $ 80,079 | ||
Prepaid advertising | 564 | 1,077 | |||
Long term deferred tax liability | $ 792 | 552 | |||
U.S. | |||||
Organization And Business Operations [Line Items] | |||||
Number of stores | store | 413 | ||||
CANADA | |||||
Organization And Business Operations [Line Items] | |||||
Number of stores | store | 8 | ||||
Short-term Investments [Member] | |||||
Organization And Business Operations [Line Items] | |||||
Cash equivalents | $ 0 | $ 0 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Schedule of Deferred Revenues) (Details) - Customer Deposits and Store Credits [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Deferred Revenue Arrangement [Line Items] | |||
Customer Deposits and Store Credits, Beginning Balance | $ (38,546) | $ (32,639) | $ (33,771) |
New Deposits | (1,155,019) | (1,101,841) | (1,021,880) |
Recognition of Revenue | 1,084,636 | 1,028,933 | 960,588 |
Sales Tax included in Customer Deposits | 67,125 | 66,028 | 63,422 |
Other | 1,472 | 973 | (998) |
Customer Deposits and Store Credits, Ending Balance | $ (40,332) | $ (38,546) | $ (32,639) |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Sales Mix by Major Product) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Product Information [Line Items] | |||
Net sales | $ 955,949 | $ 938,269 | $ 895,612 |
Sales Revenue, Product Line [Member] | |||
Product Information [Line Items] | |||
Net sales | $ 1,084,636 | $ 1,028,933 | $ 960,588 |
Percent | 100.00% | 100.00% | 100.00% |
Manufactured Products | Sales Revenue, Product Line [Member] | |||
Product Information [Line Items] | |||
Net sales | $ 392,512 | $ 315,369 | $ 248,234 |
Percent | 36.00% | 31.00% | 26.00% |
Solid and Engineered Hardwood | Sales Revenue, Product Line [Member] | |||
Product Information [Line Items] | |||
Net sales | $ 367,026 | $ 423,301 | $ 452,248 |
Percent | 34.00% | 41.00% | 47.00% |
Moldings and Accessories and Other | Sales Revenue, Product Line [Member] | |||
Product Information [Line Items] | |||
Net sales | $ 196,411 | $ 199,599 | $ 195,130 |
Percent | 18.00% | 19.00% | 20.00% |
Installation and Delivery Services | Sales Revenue, Product Line [Member] | |||
Product Information [Line Items] | |||
Net sales | $ 128,687 | $ 90,664 | $ 64,976 |
Percent | 12.00% | 9.00% | 7.00% |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Estimated Useful Lives) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Property and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Property and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 15 years |
Building and Building Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 7 years |
Building and Building Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 40 years |
Computer Software and Hardware [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Computer Software and Hardware [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Leasehold Improvement [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 1 year |
Leasehold Improvement [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 15 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Recent Accounting Pronouncements Not Yet Adopted (Details) - ASU 2016-02 $ in Millions | Jan. 01, 2019USD ($)store |
Number of leased stores | store | 400 |
Forecast | Maximum [Member] | |
Lease liabilities | $ 125 |
Forecast | Minimum [Member] | |
Right to use lease assets | $ 115 |
Property and Equipment (Narrati
Property and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property and Equipment [Abstract] | |||
Capitalized Computer Software, Gross | $ 40,230 | $ 37,905 | |
Capitalized Computer Software, Amortization | $ 4,331 | $ 3,875 | $ 3,604 |
Property and Equipment (Schedul
Property and Equipment (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | $ 204,106 | $ 200,861 |
Less: Accumulated Depreciation and Amortization | 110,417 | 100,370 |
Property and Equipment, net | 93,689 | 100,491 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | 4,937 | 4,937 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | 44,319 | 44,299 |
Property and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | 53,411 | 60,337 |
Computer Software and Hardware [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | 54,375 | 50,415 |
Leasehold Improvement [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | 46,297 | 40,277 |
Asset under Construction [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | $ 767 | $ 596 |
Other Liabilities (Other Long-T
Other Liabilities (Other Long-Term Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Other Liabilities [Abstract] | ||
Antidumping and Countervailing Accrual | $ 11,456 | $ 10,372 |
Deferred Rent | 4,850 | 5,150 |
Lease Incentive Obligation | 2,864 | 2,872 |
Other | 1,033 | 841 |
Other Long Term Liabilities | $ 20,203 | $ 19,235 |
Revolving Credit Facility (Narr
Revolving Credit Facility (Narrative) (Details) - USD ($) $ in Thousands | Mar. 08, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Line of Credit Facility [Line Items] | |||
Outstanding balance | $ 65,000 | $ 15,000 | |
Interest rate | 4.125% | ||
Credit Agreement [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility, covenant terms | The Credit Agreement contains a fixed charge coverage ratio covenant that becomes effective in the event that the Company's excess borrowing availability under the Revolving Credit Facility falls below the greater of $15 million, or 10% of the maximum revolver amount. | ||
Line of credit facility, covenant compliance | This covenant – though not currently operable – would not have been met at December 31, 2018. This covenant was met at December 31, 2017. | ||
Credit facility maturity date | Aug. 17, 2021 | ||
Outstanding balance | $ 15,000 | ||
Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of credit covenant trigger | 65,000 | ||
Revolving Credit Facility [Member] | Subsequent Event [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 175,000 | ||
Credit facility maturity date | Mar. 1, 2024 | ||
Revolving Credit Facility [Member] | Credit Agreement [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 150,000 | ||
Credit facility, unused capacity, commitment fee percentage | 0.25% | ||
Description of variable rate basis | Interest on Base Rate loans is charged at varying per annum rates computed by applying a margin ranging from 0.50% to 0.75% (dependent on the Company's average daily excess borrowing availability under the Revolving Credit Facility during the most recently completed fiscal quarter) over the Base Rate. Interest on LIBOR Rate loans and fees for standby letters of credit are charged at varying per annum rates computed by applying a margin ranging from 1.50% to 1.75% (dependent on the Company's average daily excess borrowing availability under the Revolving Credit Facility during the most recently completed fiscal quarter) over the applicable LIBOR rate for one, two, three or six month interest periods as selected by the Company. | ||
Credit facility remaining borrowing capacity | $ 67,900 | ||
Letter of Credit [Member] | Credit Agreement [Member] | |||
Line of Credit Facility [Line Items] | |||
Outstanding balance | $ 2,100 | ||
Minimum [Member] | Revolving Credit Facility [Member] | First in Last Out Tranche [Member] | Subsequent Event [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 25,000 | ||
Minimum [Member] | Revolving Credit Facility [Member] | Base Rate [Member] | Credit Agreement [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 0.50% | ||
Minimum [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Credit Agreement [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.50% | ||
Maximum [Member] | Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Credit facility, unused capacity, commitment fee percentage | 10.00% | ||
Maximum [Member] | Revolving Credit Facility [Member] | First in Last Out Tranche [Member] | Subsequent Event [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 175,000 | ||
Maximum [Member] | Revolving Credit Facility [Member] | Base Rate [Member] | Credit Agreement [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 0.75% | ||
Maximum [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Credit Agreement [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.75% |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)store | Dec. 31, 2016USD ($) | |
Operating Leased Assets [Line Items] | |||
Operating Leases Term | 5 years | ||
Operating Leases, Rent Expense, Net | $ 34.1 | $ 32.5 | $ 30.3 |
Corporate Headquarters [Member] | |||
Operating Leased Assets [Line Items] | |||
Lease Expiration Date | Dec. 31, 2019 | ||
Corporate Headquarters [Member] | Director [Member] | |||
Operating Leased Assets [Line Items] | |||
Operating Leases, Rent Expense, Net | $ 3.4 | ||
West Coast Distribution Centers [Member] | |||
Operating Leased Assets [Line Items] | |||
Lease Expiration Date | Oct. 31, 2024 | ||
Controlled Companies [Member] | |||
Operating Leased Assets [Line Items] | |||
Related Party Leased Stores | store | 29 | ||
Percentage Aggregate Number Store Lease in Operation | 7.80% | ||
Minimum [Member] | |||
Operating Leased Assets [Line Items] | |||
Operating Lease Renewal Options | 1 year | ||
Maximum [Member] | |||
Operating Leased Assets [Line Items] | |||
Operating Lease Renewal Options | 5 years |
Leases (Future Minimum Rental P
Leases (Future Minimum Rental Payments under Non-Cancellable Operating Leases) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Leased Assets [Line Items] | |
2019 | $ 36,074 |
2020 | 32,820 |
2021 | 26,570 |
2022 | 20,639 |
2023 | 14,682 |
Thereafter | 24,428 |
Total minimum lease payments | 155,213 |
Store Leases[Member] | |
Operating Leased Assets [Line Items] | |
2019 | 33,689 |
2020 | 30,697 |
2021 | 24,402 |
2022 | 18,492 |
2023 | 12,496 |
Thereafter | 22,374 |
Total minimum lease payments | 142,150 |
Distribution Centers & Other Leases [Member] | |
Operating Leased Assets [Line Items] | |
2019 | 2,385 |
2020 | 2,123 |
2021 | 2,168 |
2022 | 2,147 |
2023 | 2,186 |
Thereafter | 2,054 |
Total minimum lease payments | $ 13,063 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 17, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 31, 2014 | Dec. 31, 2012 |
Stock Repurchase Programs [Line Items] | |||||||
Shares issued as part of settlement agreement | 1,000,000 | ||||||
Value of shares issued as part of settlement agreement | $ 16,800 | $ 16,760 | |||||
Share price | $ 16.76 | ||||||
Stock Repurchase Program [Member] | |||||||
Stock Repurchase Programs [Line Items] | |||||||
Stock repurchase program, authorized amount | $ 150,000 | $ 50,000 | $ 100,000 | ||||
Common stock repurchased, remaining authorized amount | $ 14,700 | ||||||
Shares repurchased | 0 | 0 | 0 |
Stockholders' Equity (Computati
Stockholders' Equity (Computation of Basic and Diluted Net Income Per Common Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stockholders' Equity [Abstract] | |||||||||||
Net Loss | $ (56,876) | $ 5,923 | $ (1,454) | $ (1,972) | $ 2,989 | $ (18,915) | $ 4,475 | $ (26,372) | $ (54,379) | $ (37,823) | $ (68,563) |
Weighted Average Common Shares Outstanding Basic | 28,571 | 28,407 | 27,284 | ||||||||
Effect of Dilutive Securities: | |||||||||||
Weighted Average Common Shares Outstanding Diluted | 28,571 | 28,407 | 27,284 | ||||||||
Net Loss per Common Share—Basic | $ (1.99) | $ 0.21 | $ (0.05) | $ (0.07) | $ 0.10 | $ (0.66) | $ 0.16 | $ (0.93) | $ (1.90) | $ (1.33) | $ (2.51) |
Net Loss per Common Share—Diluted | $ (1.99) | $ 0.21 | $ (0.05) | $ (0.07) | $ 0.10 | $ (0.66) | $ 0.16 | $ (0.93) | $ (1.90) | $ (1.33) | $ (2.51) |
Stockholders' Equity (Anti-Dilu
Stockholders' Equity (Anti-Dilutive Securities Excluded from Computation of Weighted Average Common Shares Outstanding-Diluted) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stock Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of earning per share | 643,422 | 653,019 | 666,538 |
Restricted Shares [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of earning per share | 407,319 | 432,777 | 516,072 |
Stock Based Compensation (Narra
Stock Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stock options exercised intrinsic value | $ 341 | $ 828 | $ 343 |
Unrecognized compensation cost related to unvested option | $ 2,704 | ||
Weighted average period of recognition | 2 years 2 months 12 days | ||
Weighted average fair value of option granted | $ 10.69 | $ 11.20 | $ 6.75 |
Two Thousand And Eleven Plan [Member] | |||
Common stock shares authorized for issuance | 6,100,000 | ||
Common stock available for future grant | 800,000 | ||
Two Thousand And Eleven Plan [Member] | Maximum [Member] | |||
Share based compensation stock options expiration period | 10 years | ||
Non Employee Director [Member] | |||
Deferred stock units outstanding | 132,348 | 122,007 | |
Non Employee Director [Member] | Maximum [Member] | |||
Deferred percentage of director fees invested in deferred stock units | 100.00% | ||
Restricted Shares [Member] | |||
Weighted average period of recognition | 2 years 1 month 6 days | ||
Fair value of restricted stock awards released | $ 2,923 | $ 5,151 | $ 1,617 |
Unrecognized compensation cost related to unvested restricted stock awards | $ 3,953 | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Awards granted | 224,835 | 207,196 | 343,517 |
Performance-Base Restricted Stock Awards | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Awards granted | 30,887 | ||
Grant date fair value of awards | $ 700 | ||
Vesting period of grants | 3 years | ||
Performance-Base Restricted Stock Awards | Senior Management | Tranche One | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Vesting period of grants | 2 years | ||
Percentage of awards vested | 50.00% | ||
Performance-Base Restricted Stock Awards | Senior Management | Tranche Two | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Vesting period of grants | 3 years | ||
Percentage of awards vested | 50.00% |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Activity Related to Stock Options) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Shares | ||||
Beginning Balance | 689,668 | 835,614 | 692,776 | |
Granted | 215,297 | 127,984 | 443,147 | |
Exercised | (43,510) | (87,955) | (60,781) | |
Forfeited | (128,870) | (185,975) | (239,528) | |
Ending Balance | 732,585 | 689,668 | 835,614 | 692,776 |
Ending Balance, Exercisable | 303,898 | |||
Ending Balance, Vested and expected to vest | 732,585 | |||
Weighted Average Exercise Price | ||||
Beginning Balance | $ 25.31 | $ 24.86 | $ 31.45 | |
Granted | 20.54 | 22.09 | 13.51 | |
Exercised | 17.70 | 15.31 | 9.37 | |
Forfeited | 33.25 | 25.62 | 27.16 | |
Ending Balance | 22.97 | $ 25.31 | $ 24.86 | $ 31.45 |
Ending Balance, Exercisable | 28.47 | |||
Ending Balance, Vested and expected to vest | $ 22.97 | |||
Remaining Average Contractual Term (Years) for outstanding shares | ||||
Remaining Average Contractual Term (Years) for outstanding shares | 7 years 3 months 18 days | 7 years 8 months 12 days | 7 years 6 months | 7 years 8 months 12 days |
Aggregate Intrinsic Value | ||||
Aggregate Intrinsic Value | $ 8,530 | $ 1,167 | $ 1,283 |
Stock-Based Compensation (Range
Stock-Based Compensation (Ranges of Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stock-Based Compensation [Abstract] | |||
Expected dividend rate | 0.00% | 0.00% | 0.00% |
Expected stock price volatility | 55.00% | 55.00% | 55.00% |
Risk-free interest rate | 2.80% | 1.70% | 1.30% |
Expected term of options | 5 years 6 months | 5 years 6 months | 5 years 6 months |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary of Activity Related to Restricted Stock Awards) (Details) - Restricted Shares [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Shares | |||
Beginning Balance | 479,746 | 586,187 | 461,671 |
Granted | 224,835 | 207,196 | 343,517 |
Released | (137,064) | (205,349) | (130,523) |
Forfeited | (80,305) | (108,288) | (88,478) |
Ending Balance | 487,212 | 479,746 | 586,187 |
Weighted Average Grant Date Fair Value | |||
Beginning Balance | $ 18.71 | $ 17.71 | $ 23.61 |
Granted | 22.39 | 19.56 | 12.41 |
Released | 18.67 | 18.31 | 24.23 |
Forfeited | 17.98 | 15.68 | 18.29 |
Ending Balance | $ 20.54 | $ 18.71 | $ 17.71 |
Stock-Based Compensation (Sum_3
Stock-Based Compensation (Summary of Activities Related to Stock Appreciation Rights) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Weighted Average Exercise Price | ||||
Exercised | $ 17.70 | $ 15.31 | $ 9.37 | |
Stock Appreciation Rights (SARs) [Member] | ||||
Shares | ||||
Beginning Balance | 16,550 | 28,668 | 16,057 | |
Granted | 1,738 | 2,899 | 13,071 | |
Exercised | (165) | |||
Forfeited | (335) | (14,852) | (460) | |
Ending Balance | 17,953 | 16,550 | 28,668 | 16,057 |
Ending Balance, Exercisable | 7,504 | |||
Weighted Average Exercise Price | ||||
Beginning Balance | $ 18.10 | $ 32.63 | $ 47.58 | |
Granted | 23.31 | 17.39 | 15.31 | |
Exercised | 24.35 | |||
Forfeited | 86.16 | 45.93 | 62.87 | |
Ending Balance | 17.33 | $ 18.10 | $ 32.63 | $ 47.58 |
Ending Balance, Exercisable | $ 17.69 | |||
Remaining average contractual term | ||||
Remaining average contractual term | 7 years 9 months 18 days | 8 years 7 months 6 days | 7 years 6 months | 6 years 9 months 18 days |
Remaining average contractual term, Exercisable | 7 years 6 months | |||
Aggregate Intrinsic Value | ||||
Aggregate intrinsic value | $ 0 | $ 251 | $ 6 | $ 0 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Line Items] | ||||
U.S. Federal corporate tax rate | 21.00% | 35.00% | 35.00% | |
Provisional amount of remeasurement of deferred tax balance and valuation allowance | $ 8,100 | |||
Net tax expense (benefit) of Tax Act | 3,100 | |||
Income tax refunds | $ 148 | 29,467 | $ 27,422 | |
Excess tax benefit recognized as a component of income tax expense | 216 | |||
Operating loss carryforwards, valuation allowance increased | 3,897 | 3,826 | 15,207 | |
Unrecognized tax benefits | 3,610 | 27 | $ 208 | $ 396 |
Uncertain tax position | 3,465 | 21 | ||
Securities Litigation Matter [Member] | ||||
Income Taxes [Line Items] | ||||
Unrecognized tax benefits | 3,600 | |||
Settlement amount | 33,000 | |||
Domestic Tax Authority [Member] | ||||
Income Taxes [Line Items] | ||||
Net operating losses carryforwards | $ 11,483 | 5,183 | ||
Operating loss carryforwards, expiration year | 2037 | |||
State and Local Jurisdiction [Member] | ||||
Income Taxes [Line Items] | ||||
Net operating losses carryforwards | $ 52,230 | 48,247 | ||
Operating loss carryforwards, expiration year | 2022 | |||
Foreign Tax Authority [Member] | ||||
Income Taxes [Line Items] | ||||
Net operating losses carryforwards | $ 12,239 | 11,522 | ||
Operating loss carryforwards, expiration year | 2030 | |||
CANADA | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards, valuation allowance increased | $ 232 | 110 | ||
U.S. | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards, valuation allowance increased | $ 4,742 | $ 3,826 |
Income Taxes (Components of Inc
Income Taxes (Components of Income (Loss) Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Abstract] | |||
United States | $ (52,473) | $ (38,258) | $ (92,874) |
Foreign | (927) | (299) | (1,399) |
Loss Before Income Taxes | $ (53,400) | $ (38,557) | $ (94,273) |
Income Taxes ((Benefit) Provisi
Income Taxes ((Benefit) Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current | |||
Federal | $ 2,254 | $ (36,801) | |
State | $ 607 | 146 | (3,269) |
Foreign | 132 | 112 | 155 |
Total Current | 739 | 2,512 | (39,915) |
Deferred | |||
Federal | 140 | (2,087) | 11,184 |
State | 100 | (1,159) | 3,021 |
Total Deferred | 240 | (3,246) | 14,205 |
Income Tax (Benefit) Expense | $ 979 | $ (734) | $ (25,710) |
Income Taxes (Effective Income
Income Taxes (Effective Income Tax Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Abstract] | |||
Income Tax (Benefit) Expense at Federal Statutory Rate | $ (11,214) | $ (13,495) | $ (32,995) |
State Income Taxes, Net of Federal Income Tax Benefit | 723 | (740) | (2,275) |
Valuation Allowance | 3,897 | 3,826 | 15,207 |
Foreign Operations | 132 | 221 | (2,465) |
Uncertain Tax Position related to Investigatory Settlements | 2,919 | ||
Non-Deductible Fines and Penalties | 4,011 | 1,156 | 875 |
Federal Rate Change | 8,088 | ||
Capital Loss | (4,020) | ||
Other | 511 | 210 | (37) |
Income Tax (Benefit) Expense | $ 979 | $ (734) | $ (25,710) |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Income Tax Expense at Federal Statutory Rate | 21.00% | 35.00% | 35.00% |
State Income Taxes, Net of Federal Income Tax Benefit | (1.30%) | 1.90% | 2.40% |
Valuation Allowance | (7.30%) | (10.00%) | (16.10%) |
Foreign Operations | (0.30%) | (0.50%) | 2.60% |
Uncertain Tax Position related to Investigatory Settlements | (5.50%) | ||
Non-Deductible Fines and Penalties | (7.50%) | (3.00%) | (0.90%) |
Federal Rate Change | (21.00%) | ||
Capital Loss | 4.30% | ||
Other | (0.90%) | (0.50%) | |
Total | (1.80%) | 1.90% | 27.30% |
Income Taxes (Tax Effects of Te
Income Taxes (Tax Effects of Temporary Differences Result in Significant Portions of Deferred Tax Accounts) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Tax Liabilities: | ||
Depreciation and Amortization and Other | $ (10,672) | $ (11,664) |
Total Gross Deferred Tax Liabilities | (10,672) | (11,664) |
Deferred Tax Assets: | ||
Stock-Based Compensation Expense | 2,348 | 2,375 |
Legal Settlement Reserves | 14,251 | 9,120 |
Other Accruals and Reserves | 4,811 | 5,598 |
Employee Benefits | 1,018 | 1,745 |
Inventory Reserves | 1,896 | 1,708 |
Inventory Capitalization | 3,492 | 2,647 |
Foreign Net Operating Losses | 3,153 | 2,891 |
Net Operating Loss Carryforwards | 2,445 | 3,789 |
Loss Carryforwards and Other | 2,784 | 2,815 |
Total Gross Deferred Tax Assets | 36,198 | 32,688 |
Less Valuation Allowance | (26,318) | (21,576) |
Total Net Deferred Tax Assets | 9,880 | 11,112 |
Net Deferred Tax (Liability) Asset | $ (792) | $ (552) |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Abstract] | |||
Balance at beginning of year | $ 27 | $ 208 | $ 396 |
Increases for tax positions related to current year | 3,583 | 123 | |
Increases for tax positions related to prior years | 33 | ||
Lapse of statue | (208) | (311) | |
Federal tax rate change | (6) | ||
Balance at end of year | $ 3,610 | $ 27 | $ 208 |
401(K) Plan (Narrative) (Detail
401(K) Plan (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | 36 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | |
401(K) Plan [Abstract] | ||||
Employer matching contribution percentage | 100.00% | |||
Employer matching contribution Additional percentage | 50.00% | |||
Eligible service age for profit-sharing plan | 21 years | |||
Eligible service period for profit-sharing plan | 3 months | |||
Employer contribution percentage | 3.00% | |||
Employer contribution Additional percentage | 2.00% | |||
Company matching contribution to benefit plans | $ 2,642 | $ 2,284 | $ 2,286 | |
Company matching contribution percentage vested | 100.00% |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) - USD ($) shares in Millions | Mar. 16, 2019 | Mar. 15, 2019 | Mar. 08, 2019 | Mar. 15, 2018 | Nov. 17, 2016 | Oct. 07, 2015 | Mar. 31, 2016 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Loss Contingencies [Line Items] | |||||||||||
Accrual for Legal Matters and Settlements Current | $ 97,625,000 | $ 36,960,000 | |||||||||
Stock Issued upon Legal Settlement (in shares) | 1 | ||||||||||
Stock Issued upon Legal Settlement | $ 16,800,000 | $ 16,760,000 | |||||||||
Antidumping Duties [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Loss Contingency Multilayered Hardwood Products Purchase Percentage | 7.00% | 8.00% | 7.00% | ||||||||
Sunset review period | 5 years | ||||||||||
Antidumping Duties [Member] | Other Expense [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Net interest expense | $ 1,200,000 | ||||||||||
Litigation Relating to Formaldehyde Abrasion MDL's [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Litigation Settlement, Amount | $ 36,000,000 | ||||||||||
Accrual for Legal Matters and Settlements Long-term | $ 1,000,000 | ||||||||||
Estimated period for final ruling (in years) | 3 years | ||||||||||
Escrow Deposit | 22,000,000 | ||||||||||
Amount receive back from escrow agent | 21,500,000 | ||||||||||
Book value of escrow deposit | 21,500,000 | ||||||||||
Litigation Settlement, Expense | $ 3,000,000 | $ 1,000,000 | |||||||||
Litigation Relating to Formaldehyde Abrasion MDL's [Member] | Selling, General, and Administrative Expense [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Litigation Settlement, Expense | $ 36,000,000 | ||||||||||
Lacey Act Related Matters [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Probation period | 5 years | ||||||||||
Settlement Payment | $ 1,800,000 | ||||||||||
Litigation Relating to Bamboo Flooring | Subsequent Event [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Settlement Agreement Date | March 15, 2019 | ||||||||||
Litigation Settlement, Amount | $ 30,000,000 | ||||||||||
Percent of floor damage submit as proof | 7.00% | ||||||||||
Litigation Relating to Bamboo Flooring | Subsequent Event [Member] | Other Current Liabilities [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Accrual for Legal Matters and Settlements Current | $ 28,000,000 | ||||||||||
California Air Resources Board [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Settlement Payment | $ 2,500,000 | ||||||||||
Securities Litigation Matter [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Litigation Settlement, Amount | 33,000,000 | ||||||||||
Accrual for Legal Matters and Settlements Current | 33,000,000 | ||||||||||
Loss Contingency, Damages Paid, Value | $ 26,000,000 | ||||||||||
Stock Issued upon Legal Settlement (in shares) | 1 | ||||||||||
Stock Issued upon Legal Settlement | $ 16,800,000 | ||||||||||
Derivative Litigation Matters [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Loss Contingency, Damages Paid, Value | 2,500,000 | ||||||||||
Loss Contingency, Damages Awarded, Value | $ 26,000,000 | ||||||||||
United States Attorney [Member] | Securities Litigation Matter [Member] | Subsequent Event [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Litigation Settlement, Amount | $ 19,095,648 | ||||||||||
Department of Justice [Member] | Securities Litigation Matter [Member] | Subsequent Event [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Litigation Settlement, Amount | 13,904,352 | ||||||||||
Securities and Exchange Commission [Member] | Securities Litigation Matter [Member] | Subsequent Event [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Litigation Settlement, Amount | $ 6,097,298 | ||||||||||
Fine [Member] | Lacey Act Related Matters [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Litigation Settlement, Amount | $ 10,000,000 | ||||||||||
Cash and or Common Stock [Member] | Litigation Relating to Formaldehyde Abrasion MDL's [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Litigation Settlement, Amount | 22,000,000 | ||||||||||
Cash Payments [Member] | Litigation Relating to Bamboo Flooring | Subsequent Event [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Litigation Settlement, Amount | 14,000,000 | ||||||||||
In Store Credit [Member] | Litigation Relating to Formaldehyde Abrasion MDL's [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Litigation Settlement, Amount | $ 14,000,000 | ||||||||||
In Store Credit [Member] | Litigation Relating to Bamboo Flooring | Subsequent Event [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Litigation Settlement, Amount | 14,000,000 | ||||||||||
Loss Contingency, Damages Awarded, Value | $ 2,000,000 | ||||||||||
Solid and Engineered Hardwood | Lacey Act Related Matters [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Settlement Payment | $ 3,200,000 |
Commitments and Contingencies_3
Commitments and Contingencies (Schedule of Other Commitments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | 19 Months Ended | 21 Months Ended | |||||||||||||
Mar. 31, 2018 | Dec. 31, 2018 | Nov. 30, 2018 | Dec. 31, 2017 | Nov. 30, 2017 | Dec. 31, 2016 | Nov. 30, 2016 | Dec. 31, 2015 | Nov. 30, 2015 | Dec. 31, 2014 | Nov. 30, 2014 | Dec. 31, 2013 | Nov. 30, 2013 | Nov. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2018 | Jun. 30, 2018 | |
Antidumping Duties [Member] | Other Current Assets [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Contingent Receivable | $ 2,630 | ||||||||||||||||
Antidumping Duties [Member] | Other Assets [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Contingent Receivable | 1,300 | ||||||||||||||||
Antidumping Duties [Member] | Other Noncurrent Liabilities [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Contingent Liability | 9,600 | ||||||||||||||||
Antidumping Duties [Member] | First Annual Review [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Loss Contingency Modified Purchase Price Of Antidumping Duty Rate | 5.92% | 0.73% | |||||||||||||||
Contingent Liability | $ 800 | ||||||||||||||||
Contingent Receivable | 1,300 | ||||||||||||||||
Antidumping Duties [Member] | Second Annual Review [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Loss Contingency Purchase Price Of Antidumping Duty Rate | 3.30% | ||||||||||||||||
Loss Contingency Modified Purchase Price Of Antidumping Duty Rate | 13.74% | ||||||||||||||||
Contingent Liability | 4,100 | ||||||||||||||||
Antidumping Duties [Member] | Third Annual Review [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Loss Contingency Modified Purchase Price Of Antidumping Duty Rate | 17.37% | ||||||||||||||||
Contingent Liability | 5,500 | ||||||||||||||||
Antidumping Duties [Member] | Fourth Annual Review [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Loss Contingency Modified Purchase Price Of Antidumping Duty Rate | 0.00% | ||||||||||||||||
Contingent Receivable | 30 | ||||||||||||||||
Antidumping Duties [Member] | Fifth Annual Review [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Loss Contingency Modified Purchase Price Of Antidumping Duty Rate | 0.00% | ||||||||||||||||
Contingent Receivable | 2,600 | $ 2,800 | |||||||||||||||
Antidumping Duties [Member] | Sixth Annual Review [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Loss Contingency Modified Purchase Price Of Antidumping Duty Rate | 48.26% | ||||||||||||||||
Contingent Liability | $ 1,100 | ||||||||||||||||
Antidumping Duties [Member] | Seventh Annual Review [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Loss Contingency Purchase Price Of Antidumping Duty Rate | 0.00% | ||||||||||||||||
Countervailing Duties [Member] | Other Current Assets [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Contingent Receivable | 80 | ||||||||||||||||
Countervailing Duties [Member] | Other Assets [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Contingent Receivable | 270 | ||||||||||||||||
Countervailing Duties [Member] | First and Second Annual Review [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Loss Contingency Purchase Price Of Countervailing Duties Rate | 1.50% | ||||||||||||||||
Contingent Receivable | 200 | ||||||||||||||||
Countervailing Duties [Member] | Third Annual Review [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Loss Contingency Purchase Price Of Countervailing Duties Rate | 1.50% | ||||||||||||||||
Loss Contingency Modified Purchase Price Of Countervailing Duties Rate | 1.38% | ||||||||||||||||
Contingent Receivable | 50 | ||||||||||||||||
Countervailing Duties [Member] | Fourth Annual Review [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Loss Contingency Modified Purchase Price Of Countervailing Duties Rate | 1.06% | ||||||||||||||||
Contingent Receivable | 20 | ||||||||||||||||
Countervailing Duties [Member] | Fifth Annual Review [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Contingent Receivable | $ 80 | $ 70 | |||||||||||||||
Countervailing Duties [Member] | Eighth Annual Review [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Loss Contingency Purchase Price Of Countervailing Duties Rate | 1.06% | ||||||||||||||||
Countervailing Duties [Member] | Minimum [Member] | First and Second Annual Review [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Loss Contingency Modified Purchase Price Of Countervailing Duties Rate | 0.83% | ||||||||||||||||
Countervailing Duties [Member] | Minimum [Member] | Fifth Annual Review [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Loss Contingency Modified Purchase Price Of Countervailing Duties Rate | 0.11% | ||||||||||||||||
Countervailing Duties [Member] | Maximum [Member] | First and Second Annual Review [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Loss Contingency Modified Purchase Price Of Countervailing Duties Rate | 0.99% | ||||||||||||||||
Countervailing Duties [Member] | Maximum [Member] | Fifth Annual Review [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Loss Contingency Modified Purchase Price Of Countervailing Duties Rate | 0.85% | ||||||||||||||||
Deposit One [Member] | Antidumping Duties [Member] | First Annual Review [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Loss Contingency Purchase Price Of Antidumping Duty Rate | 6.78% | ||||||||||||||||
Deposit One [Member] | Antidumping Duties [Member] | Third Annual Review [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Loss Contingency Purchase Price Of Antidumping Duty Rate | 3.30% | ||||||||||||||||
Deposit One [Member] | Antidumping Duties [Member] | Fourth Annual Review [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Loss Contingency Purchase Price Of Antidumping Duty Rate | 5.92% | ||||||||||||||||
Deposit One [Member] | Antidumping Duties [Member] | Fifth Annual Review [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Loss Contingency Purchase Price Of Antidumping Duty Rate | 5.92% | ||||||||||||||||
Deposit One [Member] | Antidumping Duties [Member] | Sixth Annual Review [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Loss Contingency Purchase Price Of Antidumping Duty Rate | 17.37% | ||||||||||||||||
Deposit One [Member] | Countervailing Duties [Member] | Fourth Annual Review [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Loss Contingency Purchase Price Of Countervailing Duties Rate | 1.50% | ||||||||||||||||
Deposit One [Member] | Countervailing Duties [Member] | Fifth Annual Review [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Loss Contingency Purchase Price Of Countervailing Duties Rate | 0.83% | ||||||||||||||||
Deposit One [Member] | Countervailing Duties [Member] | Sixth Annual Review [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Loss Contingency Purchase Price Of Countervailing Duties Rate | 0.99% | ||||||||||||||||
Deposit One [Member] | Countervailing Duties [Member] | Seventh Annual Review [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Loss Contingency Purchase Price Of Countervailing Duties Rate | 1.38% | ||||||||||||||||
Deposit Two [Member] | Antidumping Duties [Member] | First Annual Review [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Loss Contingency Purchase Price Of Antidumping Duty Rate | 3.30% | ||||||||||||||||
Deposit Two [Member] | Antidumping Duties [Member] | Third Annual Review [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Loss Contingency Purchase Price Of Antidumping Duty Rate | 5.92% | ||||||||||||||||
Deposit Two [Member] | Antidumping Duties [Member] | Fourth Annual Review [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Loss Contingency Purchase Price Of Antidumping Duty Rate | 13.74% | ||||||||||||||||
Deposit Two [Member] | Antidumping Duties [Member] | Fifth Annual Review [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Loss Contingency Purchase Price Of Antidumping Duty Rate | 13.74% | ||||||||||||||||
Deposit Two [Member] | Antidumping Duties [Member] | Sixth Annual Review [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Loss Contingency Purchase Price Of Antidumping Duty Rate | 0.00% | ||||||||||||||||
Deposit Two [Member] | Countervailing Duties [Member] | Fourth Annual Review [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Loss Contingency Purchase Price Of Countervailing Duties Rate | 0.83% | ||||||||||||||||
Deposit Two [Member] | Countervailing Duties [Member] | Fifth Annual Review [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Loss Contingency Purchase Price Of Countervailing Duties Rate | 0.99% | ||||||||||||||||
Deposit Two [Member] | Countervailing Duties [Member] | Sixth Annual Review [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Loss Contingency Purchase Price Of Countervailing Duties Rate | 1.38% | ||||||||||||||||
Deposit Two [Member] | Countervailing Duties [Member] | Seventh Annual Review [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Loss Contingency Purchase Price Of Countervailing Duties Rate | 1.06% | ||||||||||||||||
Deposit Three [Member] | Antidumping Duties [Member] | Fifth Annual Review [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Loss Contingency Purchase Price Of Antidumping Duty Rate | 17.37% |
Selected Quarterly Financial _3
Selected Quarterly Financial Information (Unaudited Quarterly Results) (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018USD ($)store$ / shares | Sep. 30, 2018USD ($)store$ / shares | Jun. 30, 2018USD ($)store$ / shares | Mar. 31, 2018USD ($)store$ / shares | Dec. 31, 2017USD ($)store$ / shares | Sep. 30, 2017USD ($)store$ / shares | Jun. 30, 2017USD ($)$ / shares | Mar. 31, 2017USD ($)store$ / shares | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2016USD ($)$ / shares | |
Selected Quarterly Financial Information (unaudited) [Abstract] | |||||||||||
Net Sales | $ 268,921 | $ 270,469 | $ 283,474 | $ 261,772 | $ 259,859 | $ 257,185 | $ 263,500 | $ 248,389 | $ 1,084,636 | $ 1,028,933 | $ 960,588 |
Gross Profit | 95,976 | 100,682 | 101,310 | 94,972 | 92,120 | 92,687 | 97,455 | 86,799 | 392,940 | 369,061 | 303,869 |
Selling, General and Administrative Expenses | 150,885 | 93,987 | 102,223 | 96,418 | 91,515 | 109,962 | 92,335 | 112,215 | 443,513 | 406,027 | 397,504 |
Operating (Loss) Income | (54,909) | 6,695 | (913) | (1,446) | 605 | (17,275) | 5,120 | (25,416) | (50,573) | (36,966) | (93,635) |
Net Loss | $ (56,876) | $ 5,923 | $ (1,454) | $ (1,972) | $ 2,989 | $ (18,915) | $ 4,475 | $ (26,372) | $ (54,379) | $ (37,823) | $ (68,563) |
Net Income per Common Share - Basic | $ / shares | $ (1.99) | $ 0.21 | $ (0.05) | $ (0.07) | $ 0.10 | $ (0.66) | $ 0.16 | $ (0.93) | $ (1.90) | $ (1.33) | $ (2.51) |
Net (Loss) Income per Common Share -- Diluted | $ / shares | $ (1.99) | $ 0.21 | $ (0.05) | $ (0.07) | $ 0.10 | $ (0.66) | $ 0.16 | $ (0.93) | $ (1.90) | $ (1.33) | $ (2.51) |
Number of Stores Opened in Quarter | store | 4 | 3 | 8 | 5 | 6 | 2 | 2 | ||||
Comparable store net sales (Decrease) Increase | 0.40% | 2.10% | 4.70% | 2.90% | 4.50% | 3.80% | 8.80% | 4.70% |
Selected Quarterly Financial _4
Selected Quarterly Financial Information (Certain Items Impacting Gross Profit and SG&A) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interim Period, Costs Not Allocable [Line Items] | |||||||||||
Gross profit | $ 95,976 | $ 100,682 | $ 101,310 | $ 94,972 | $ 92,120 | $ 92,687 | $ 97,455 | $ 86,799 | $ 392,940 | $ 369,061 | $ 303,869 |
SG&A | 150,885 | 93,987 | 102,223 | 96,418 | 91,515 | 109,962 | 92,335 | 112,215 | $ 443,513 | $ 406,027 | $ 397,504 |
Antidumping Adjustments [Member] | |||||||||||
Interim Period, Costs Not Allocable [Line Items] | |||||||||||
Gross profit | (2,822) | (2,126) | (2,797) | ||||||||
Tariff Adjustments [Member] | |||||||||||
Interim Period, Costs Not Allocable [Line Items] | |||||||||||
Gross profit | (1,711) | ||||||||||
Indoor Air Quality Testing Program [Member] | |||||||||||
Interim Period, Costs Not Allocable [Line Items] | |||||||||||
Gross profit | (993) | ||||||||||
Accrual for Legal Matters and Settlements | |||||||||||
Interim Period, Costs Not Allocable [Line Items] | |||||||||||
SG&A | 61,000 | 2,701 | 250 | ||||||||
Securities and Derivatives Class Action [Member] | |||||||||||
Interim Period, Costs Not Allocable [Line Items] | |||||||||||
Securities and Derivatives Class Action Expense (Income) | 960 | 18,000 | 18,000 | ||||||||
Legal and Professional Fees [Member] | |||||||||||
Interim Period, Costs Not Allocable [Line Items] | |||||||||||
SG&A | 2,324 | 2,991 | 3,325 | 3,067 | 2,440 | 2,940 | 3,526 | 2,408 | |||
All Other [Member] | |||||||||||
Interim Period, Costs Not Allocable [Line Items] | |||||||||||
SG&A | 1,769 | 1,687 | 1,459 | ||||||||
Gross Margin Items [Member] | |||||||||||
Interim Period, Costs Not Allocable [Line Items] | |||||||||||
Gross profit | (1,711) | (2,822) | (2,126) | (3,790) | |||||||
Selling, General, and Administrative Expense [Member] | |||||||||||
Interim Period, Costs Not Allocable [Line Items] | |||||||||||
SG&A | $ 63,324 | $ 4,760 | $ 6,026 | $ 3,317 | $ 5,087 | $ 22,399 | $ 3,526 | $ 20,408 |
Schedule II - Analysis of Val_2
Schedule II - Analysis of Valuation and Qualifying Accounts (Valuation of Qualifying Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Inventory Reserve for Loss or Obsolescence [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance Beginning of Year | $ 5,631 | $ 7,070 | $ 26,882 |
Additions Charged to Cost and Expenses | 3,108 | 6,349 | 3,723 |
Deductions | (1,932) | (7,788) | (23,535) |
Other | |||
Balance End of Year | 6,807 | 5,631 | 7,070 |
Income Tax Valuation Allowance [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance Beginning of Year | 21,576 | 17,640 | 2,433 |
Additions Charged to Cost and Expenses | 4,742 | 3,936 | 15,207 |
Deductions | |||
Other | |||
Balance End of Year | $ 26,318 | $ 21,576 | $ 17,640 |