Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 27, 2018 | Jun. 30, 2017 | |
Entity Information [Line Items] | |||
Entity Registrant Name | HAVERTY FURNITURE COMPANIES INC | ||
Entity Central Index Key | 216,085 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 477,498,547 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Common Stock [Member] | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 19,427,144 | ||
Class A Common Stock [Member] | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 1,767,296 |
Consolidated BALANCE SHEETS
Consolidated BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 79,491 | $ 63,481 |
Restricted cash and cash equivalents | 8,115 | 8,034 |
Accounts receivable, net | 2,408 | 4,244 |
Inventories | 103,437 | 102,020 |
Prepaid expenses | 11,314 | 8,836 |
Other current assets | 5,922 | 7,500 |
Total current assets | 210,687 | 194,115 |
Accounts receivable, long-term, net | 254 | 462 |
Property and equipment | 229,215 | 233,667 |
Deferred income taxes | 12,375 | 18,376 |
Other assets | 8,798 | 7,885 |
Total assets | 461,329 | 454,505 |
Current liabilities | ||
Accounts payable | 20,501 | 25,662 |
Customer deposits | 27,813 | 24,923 |
Accrued liabilities | 37,582 | 41,904 |
Current portion of lease obligations | 3,788 | 3,461 |
Total current liabilities | 89,684 | 95,950 |
Lease obligations, less current portion | 50,803 | 52,013 |
Other liabilities | 26,700 | 24,671 |
Total liabilities | 167,187 | 172,634 |
Capital Stock, par value $1 per share | ||
Preferred Stock, Authorized - 1,000 shares; Issued: None | ||
Additional paid-in capital | 88,978 | 86,273 |
Retained earnings | 287,390 | 277,707 |
Accumulated other comprehensive income (loss) | (2,144) | (1,830) |
Less treasury stock at cost - Common Stock (2017 - 9,498 and 2016 - 9,506) and Convertible Class A Common Stock (2017 and 2016 - 522) | (111,322) | (111,412) |
Total stockholders' equity | 294,142 | 281,871 |
Total liabilities and stockholders' equity | 461,329 | 454,505 |
Common Stock [Member] | ||
Capital Stock, par value $1 per share | ||
Common Stock | 28,950 | 28,793 |
Convertible Class A Common Stock [Member] | ||
Capital Stock, par value $1 per share | ||
Common Stock | $ 2,290 | $ 2,340 |
Consolidated BALANCE SHEETS (Pa
Consolidated BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Stockholders' equity | ||
Preferred Stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred Stock, shares authorized (in shares) | 1,000 | 1,000 |
Preferred Stock, shares issued (in shares) | 0 | 0 |
Common Stock, par value (in dollars per share) | $ 1 | $ 1 |
Common Stock [Member] | ||
Stockholders' equity | ||
Common Stock, shares authorized (in shares) | 50,000 | 50,000 |
Common Stock, shares issued (in shares) | 28,950 | 28,793 |
Treasury Stock, common stock shares (in shares) | 9,498 | 9,506 |
Convertible Class A Common Stock [Member] | ||
Stockholders' equity | ||
Common Stock, shares authorized (in shares) | 15,000 | 15,000 |
Common Stock, shares issued (in shares) | 2,290 | 2,340 |
Treasury Stock, common stock shares (in shares) | 522 | 522 |
Consolidated Statements of COMP
Consolidated Statements of COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net sales | $ 819,866 | $ 821,571 | $ 804,870 |
Cost of goods sold | 374,943 | 378,234 | 374,094 |
Gross profit | 444,923 | 443,337 | 430,776 |
Credit service charges | 161 | 229 | 286 |
Gross profit and other revenue | 445,084 | 443,566 | 431,062 |
Expenses: | |||
Selling, general and administrative | 402,884 | 399,236 | 384,801 |
Provision for doubtful accounts | 224 | 383 | 314 |
Other income, net | (3,358) | (4,107) | (1,617) |
Total expenses | 399,750 | 395,512 | 383,498 |
Income before interest and income taxes | 45,334 | 48,054 | 47,564 |
Interest expense, net | 2,111 | 2,233 | 2,289 |
Income before income taxes | 43,223 | 45,821 | 45,275 |
Income tax expense | 22,148 | 17,465 | 17,486 |
Net income | 21,075 | 28,356 | 27,789 |
Other comprehensive (loss) income, net of tax: | |||
Defined benefit pension plans adjustments; net of tax expense (benefit) of $105, $66 and $141 | (314) | 108 | 230 |
Comprehensive income | $ 20,761 | $ 28,464 | $ 28,019 |
Common Stock [Member] | |||
Basic earnings per share: | |||
Common Stock (in dollars per share) | $ 1 | $ 1.32 | $ 1.24 |
Diluted earnings per share: | |||
Common Stock (in dollars per share) | 0.98 | 1.30 | 1.22 |
Class A Common Stock [Member] | |||
Basic earnings per share: | |||
Common Stock (in dollars per share) | 0.95 | 1.27 | 1.18 |
Diluted earnings per share: | |||
Common Stock (in dollars per share) | $ 0.94 | $ 1.27 | $ 1.17 |
Consolidated Statements of COM5
Consolidated Statements of COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other comprehensive income | |||
Defined benefit pension plan adjustments, tax expense (benefit) | $ (105) | $ 66 | $ 141 |
Consolidated Statements of STOC
Consolidated Statements of STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Common Stock [Member]Class A Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total | Class A Common Stock [Member] |
Balance at Dec. 31, 2014 | $ 28,327 | $ 2,603 | $ (76,436) | $ 79,726 | $ 260,031 | $ (2,168) | ||
Balance (in shares) at Dec. 31, 2014 | 28,326,770 | 2,603,410 | (8,281,277) | |||||
Conversion of Class A Common Stock | $ 49 | $ (49) | ||||||
Conversion of Class A Common Stock (in shares) | 48,951 | (48,951) | ||||||
Stock compensation transactions, net | $ 110 | |||||||
Stock compensation transactions, net (in shares) | 110,037 | |||||||
Stock option and restricted stock issuances | (1,312) | |||||||
Tax (cost) benefit related to stock-based plans | 253 | |||||||
Directors' Compensation Plan | $ 136 | 479 | ||||||
Directors' Compensation Plan (in shares) | 14,274 | |||||||
Purchases | $ (14,002) | |||||||
Purchases (in shares) | (617,021) | |||||||
Amortization of restricted stock | 4,033 | |||||||
Net income | 27,789 | $ 27,789 | ||||||
Cash dividends | (8,060) | $ (702) | ||||||
Pension liabilities adjustment, net of taxes | 230 | |||||||
Balance at Dec. 31, 2015 | $ 28,486 | $ 2,554 | $ (90,302) | 83,179 | 279,760 | (1,938) | 301,739 | |
Balance (in shares) at Dec. 31, 2015 | 28,485,758 | 2,554,459 | (8,884,024) | |||||
Conversion of Class A Common Stock | $ 214 | $ (214) | ||||||
Conversion of Class A Common Stock (in shares) | 214,400 | (214,400) | ||||||
Stock compensation transactions, net | $ 93 | |||||||
Stock compensation transactions, net (in shares) | 92,577 | |||||||
Stock option and restricted stock issuances | (975) | |||||||
Tax (cost) benefit related to stock-based plans | (121) | |||||||
Directors' Compensation Plan | $ 172 | 318 | ||||||
Directors' Compensation Plan (in shares) | 16,248 | |||||||
Purchases | $ (21,282) | |||||||
Purchases (in shares) | (1,160,539) | |||||||
Amortization of restricted stock | 3,872 | |||||||
Net income | 28,356 | 28,356 | ||||||
Cash dividends | (30,409) | (2,735) | ||||||
Pension liabilities adjustment, net of taxes | 108 | |||||||
Balance at Dec. 31, 2016 | $ 28,793 | $ 2,340 | $ (111,412) | 86,273 | 277,707 | (1,830) | 281,871 | |
Balance (in shares) at Dec. 31, 2016 | 28,792,735 | 2,340,059 | (10,028,315) | |||||
Conversion of Class A Common Stock | $ 50 | $ (50) | ||||||
Conversion of Class A Common Stock (in shares) | 50,353 | (50,353) | ||||||
Stock compensation transactions, net | $ 107 | |||||||
Stock compensation transactions, net (in shares) | 107,149 | |||||||
Stock option and restricted stock issuances | (1,662) | |||||||
Tax (cost) benefit related to stock-based plans | 0 | |||||||
Directors' Compensation Plan | $ 90 | 549 | ||||||
Directors' Compensation Plan (in shares) | 7,812 | |||||||
Purchases | $ 0 | |||||||
Purchases (in shares) | 0 | |||||||
Amortization of restricted stock | 3,818 | |||||||
Net income | 21,075 | 21,075 | ||||||
Cash dividends | (11,392) | $ (919) | ||||||
Pension liabilities adjustment, net of taxes | (314) | |||||||
Balance at Dec. 31, 2017 | $ 28,950 | $ 2,290 | $ (111,322) | $ 88,978 | $ 287,390 | $ (2,144) | $ 294,142 | |
Balance (in shares) at Dec. 31, 2017 | 28,950,237 | 2,289,706 | (10,020,503) |
Consolidated Statements of STO7
Consolidated Statements of STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Class A Common Stock [Member] | ||||
Treasury stock (in shares) | 522,410 | 522,410 | 522,410 | 522,410 |
Cash dividends, common stock (in dollars per share) | $ 0.95 | $ 0.51 | $ 1.365 | $ 0.34 |
Common Stock [Member] | ||||
Cash dividends, common stock (in dollars per share) | $ 0.54 | $ 1.44 | $ 0.36 |
Consolidated Statements of CASH
Consolidated Statements of CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 21,075 | $ 28,356 | $ 27,789 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 30,516 | 29,045 | 25,756 |
Gain on insurance recovery | (2,848) | (3,338) | 0 |
Proceeds from insurance recovery received for business interruption and destroyed inventory | 2,867 | 2,599 | 0 |
Stock-based compensation expense | 3,818 | 3,872 | 4,033 |
Excess tax benefit from stock-based plans | 0 | (80) | (397) |
Deferred income taxes | 5,559 | (1,120) | (3,019) |
Provision for doubtful accounts | 224 | 383 | 314 |
Other | 82 | (400) | (160) |
Changes in operating assets and liabilities: | |||
Accounts receivable | 1,820 | 1,514 | 960 |
Inventories | (2,112) | 6,876 | (2,305) |
Customer deposits | 2,890 | 3,887 | (2,650) |
Other assets and liabilities | (932) | (9,508) | (590) |
Accounts payable and accrued liabilities | (10,502) | (2,032) | 2,501 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 52,457 | 60,054 | 52,232 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Capital expenditures | (24,465) | (29,838) | (27,143) |
Maturities of investments | 0 | 12,725 | 7,250 |
Purchase of commercial paper and certificates of deposit | 0 | 0 | (9,975) |
Proceeds from insurance for destroyed property and equipment | 1,987 | 3,011 | 0 |
Other investing activities | 870 | 915 | 1,513 |
NET CASH USED IN INVESTING ACTIVITIES | (21,608) | (13,187) | (28,355) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from borrowings under revolving credit facilities | 0 | 0 | 0 |
Payments of borrowings under revolving credit facilities | 0 | 0 | 0 |
Net change in borrowings under revolving credit facilities | 0 | 0 | 0 |
Construction allowance receipts | 1,590 | 1,574 | 6,701 |
Payments on lease obligations | (3,482) | (3,125) | (2,534) |
Excess tax benefit from stock-based plans | 0 | 80 | 397 |
Dividends paid | (11,392) | (30,409) | (8,060) |
Common stock repurchased | 0 | (21,282) | (14,002) |
Taxes on vested restricted shares | (1,555) | (883) | (1,201) |
NET CASH USED IN FINANCING ACTIVITIES | (14,839) | (54,045) | (18,699) |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 16,010 | (7,178) | 5,178 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 63,481 | 70,659 | 65,481 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | $ 79,491 | $ 63,481 | $ 70,659 |
DESCRIPTION OF BUSINESS AND SUM
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Note 1, Description of Business and Summary of Significant Accounting Policies: Business: Haverty Furniture Companies, Inc. ("Havertys," "we," "our," or "us") is a retailer of a broad line of residential furniture in the middle to upper-middle price ranges. We have 124 showrooms in 16 states at December 31, 2017. All of our stores are operated using the Havertys name and we do not franchise our stores. We offer financing through a third-party finance company as well as an internal revolving charge credit plan. Basis of Presentation: The consolidated financial statements include the accounts of Havertys and its wholly-owned subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates: The preparation of financial statements in conformity with United States of America generally accepted accounting principles ("US GAAP") requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Cash and Cash Equivalents: Cash and cash equivalents includes all liquid investments with a maturity date of less than three months when purchased. Cash equivalents also include amounts due from third-party financial institutions for credit and debit card transactions which typically settle within five days. Restricted Cash and Cash Equivalents: Our insurance carrier requires us to collateralize a portion of our workers' compensation obligations. These funds are investments in money market funds held by an agent. The agreement with our carrier governing these funds is on an annual basis expiring on December 31. Inventories: Inventories are stated at the lower of cost or market. Cost is determined using the last-in, first-out (LIFO) method. Property and Equipment: Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is provided over the estimated useful lives of the assets using the straight-line method. Leasehold improvements and buildings under lease are amortized over the shorter of the estimated useful life or the lease term of the related asset. Amortization of buildings under lease is included in depreciation expense. Estimated useful lives for financial reporting purposes are as follows: Buildings 25 – 33 years Improvements 5 – 15 years Furniture and Fixtures 3 – 15 years Equipment 3 – 15 years Buildings under lease 15 years Customer Deposits: Customer deposits consist of cash collections on sales of undelivered merchandise, customer advance payments, and deposits on credit sales for undelivered merchandise. Revenue Recognition: We recognize revenue from merchandise sales and related service fees, net of sales taxes, upon delivery to the customer. A reserve for merchandise returns and customer allowances is estimated based on our historical returns and allowance experience and current sales levels. We typically offer our customers an opportunity for us to deliver their purchases and most choose this service. Delivery fees of approximately $25,728,000, $25,467,000 and $27,650,000 were charged to customers in 2017, 2016 and 2015, respectively, and are included in net sales. The costs associated with deliveries are included in selling, general and administrative expenses and were approximately $39,582,000, $39,222,000 and $37,730,000 in 2017, 2016 and 2015, respectively. Credit service charges are recognized as revenue as assessed to customers according to contract terms. The costs associated with credit approval, account servicing and collections are included in selling, general and administrative expenses. Cost of Goods Sold: Our cost of goods sold includes the direct costs of products sold, warehouse handling and transportation costs. Selling, General and Administrative Expenses: Our selling, general and administrative ("SG&A") expenses are comprised of advertising, selling, occupancy, delivery and administrative costs as well as certain warehouse expenses. The costs associated with our purchasing, warehousing, delivery and other distribution costs included in SG&A expense were approximately $77,368,000, $77,266,000 and $73,803,000 in 2017, 2016 and 2015, respectively. Leases: In the case of certain leased stores, we may be extensively involved in the construction or major structural modifications of the leased properties. As a result of this involvement, we are deemed the "owner" for accounting purposes during the construction period, and are required to capitalize the total fair market value of the portion of the leased property we use, excluding land, on our consolidated balance sheet. Following construction completion, we perform an analysis under ASC 840, " Leases Deferred Escalating Minimum Rent and Lease Incentives: Certain of our operating leases contain predetermined fixed escalations of the minimum rentals during the term of the lease. For these leases, we recognize the related rental expense on a straight-line basis over the life of the lease, beginning with the point at which we obtain control and possession of the leased properties, and record the difference between the amounts charged to operations and amounts paid as accrued liabilities. The liability for deferred escalating minimum rent approximated $8,565,000 and $8,797,000 at December 31, 2017 and 2016, respectively. Any operating lease incentives we receive are deferred and subsequently amortized on a straight-line basis over the life of the lease as a reduction of rent expense. The liability for lease incentives approximated $1,139,000 and $676,000 at December 31, 2017 and 2016, respectively. Advertising Expense: Advertising costs, which include television, radio, newspaper, digital, and other media advertising, are expensed upon first showing. The total amount of prepaid advertising costs included in other current assets was approximately $602,000 and $324,000 at December 31, 2017 and 2016, respectively. We incurred approximately $47,921,000, $45,132,000 and $45,784,000 in advertising expense during 2017, 2016 and 2015, respectively. Interest expense is comprised of amounts incurred related to our debt and lease obligations recorded on our balance sheet, net of interest income. The total amount of interest expense was approximately $2,512,000, $2,568,000 and $2,615,000 during 2017, 2016 and 2015, respectively. Other Income, net: Other income, net includes any gains or losses on sales of property and equipment and miscellaneous income or expense items outside of core operations. We had a store receive significant damage on December 27, 2015 from a blizzard. We reduced the value of the property and its contents at December 31, 2015 to zero and recorded an insurance recovery receivable. During 2016, we recorded $2,228,000 in gains for the insurance recovery on the building and $1,110,000 for inventory, business interruption and other expenses. We received additional amounts in 2017 for the remaining full replacement value of the building as construction was completed and recognized a gain of $1,351,000. During 2017 we also recorded $1,500,000 in gains from insured losses related to a store damaged by a faulty underground sprinkler line and losses from Hurricane Irma. The sale of former retail locations also generated gains of $525,000 in 2017 and $700,000 in 2016. Other income, net for the year ended December 31, 2015 includes proceeds received of $800,000 for the settlement related to credit card litigation. Self-Insurance: We are self-insured, for amounts up to a deductible per occurrence, for losses related to general liability, workers' compensation and vehicle claims. We are primarily self-insured for employee group health care claims. We have purchased insurance coverage in order to establish certain limits to our exposure on a per claim basis. We maintain an accrual for these costs based on claims filed and an estimate of claims incurred but not reported or paid, based on historical data and actuarial estimates. The current portion of these self-insurance reserves is included in accrued liabilities and the non-current portion is included in other liabilities. These reserves totaled $8,975,000 and $9,095,000 at December 31, 2017 and 2016, respectively. Fair Values of Financial Instruments: The fair values of our cash and cash equivalents, restricted cash and cash equivalents, accounts receivable, accounts payable and customer deposits approximate their carrying amounts due to their short-term nature. The assets that are related to our self-directed, non-qualified deferred compensation plans for certain executives and employees are valued using quoted market prices, a Level 1 valuation technique. The assets totaled approximately $5,986,000 and $4,410,000 at December 31, 2017 and 2016, respectively, and are included in other assets. The related liability of the same amount is included in other liabilities. Impairment of Long-Lived Assets: We review long-lived assets for impairment when circumstances indicate the carrying amount of an asset may not be recoverable. If an indicator of impairment is identified, we evaluate the long-lived assets at the individual property or store level, which is the lowest level at which individual cash flows can be identified. When evaluating these assets for potential impairment, we first compare the carrying amount of the asset to the store's estimated future cash flows (undiscounted and without interest charges). If the estimated future cash flows are less than the carrying amount of the asset, an impairment loss calculation is prepared. The impairment loss calculation compares the carrying amount of the asset to the store's assets' estimated fair value, which is determined on the basis of fair value for similar assets or future cash flows (discounted and with interest charges). If required, an impairment loss is recorded in SG&A expense for the difference in the asset's carrying value and the asset's estimated fair value. No such losses were recorded in 2017, 2016 or 2015. Earnings Per Share: We report our earnings per share using the two class method. The income per share for each class of common stock is calculated assuming 100% of our earnings are distributed as dividends to each class of common stock based on their contractual rights. See Note 13 for the computational components of basic and diluted earnings per share. Accumulated Other Comprehensive Income (Loss): Accumulated other comprehensive income (loss) ("AOCI"), net of income taxes, was comprised of unrecognized retirement liabilities totaling approximately $2,144,000 and $1,830,000 at December 31, 2017 and 2016, respectively. See Note 11 for the amounts reclassified out of AOCI to SG&A expense related to our supplemental executive retirement plan. Recently Issued and Adopted Accounting Pronouncement: Changes to GAAP are established by the Financial Accounting Standards Board (FASB) in the form of accounting standards updates (ASU's) to the FASB's Accounting Standards Codification (ASC). We considered the applicability and impact of all ASU's. ASU's not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position or results of operations. Share-based Payments. Revenue Recognition. The FASB has issued several amendments to the revenue standard, including clarification on accounting for principal versus agent considerations (i.e., reporting gross versus net). These amendments do not change the core principle of the standard, but provide clarity and implementation guidance. This standard is effective for Havertys beginning January 1, 2018 and will not have a material effect on Havertys' financial condition, results of operations or liquidity. We sell home furnishings and recognize revenue at delivery and this will not change under the new standard. We have substantially completed our comprehensive implementation plan, including the implementation of new controls and processes designed to comply with ASU 2014-09. We will use the modified retrospective (or cumulative-effect) adoption method. We will recognize an inventory asset related to product returns and a related liability for returns and allowances and adjust our existing reserve and deferred income tax assets with the impact increasing retained earnings approximately $130,000. Leases. Segment Information We operate within a single reportable segment. The following table presents the net sales of each major product category and service for each of the last three years: Year Ended December 31, (In thousands) 2017 2016 2015 Net Sales % of Net Sales Net Sales % of Net Sales Net Sales % of Net Sales Merchandise: Case Goods Bedroom Furniture $ 132,484 16.2 % $ 132,250 16.1 % $ 135,855 16.9 % Dining Room Furniture 92,921 11.3 94,918 11.5 92,966 11.6 Occasional 75,909 9.2 81,996 10.0 79,219 9.8 301,314 36.7 309,164 37.6 308,040 38.3 Upholstery 330,340 40.3 328,903 40.0 321,484 39.9 Mattresses 88,311 10.8 86,659 10.6 84,897 10.6 Accessories and Other (1) 99,901 12.2 96,845 11.8 90,449 11.2 $ 819,866 100.0 % $ 821,571 100.0 % $ 804,870 100.0 % (1) Includes delivery charges and product protection. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2017 | |
ACCOUNTS RECEIVABLE [Abstract] | |
ACCOUNTS RECEIVABLE | Note 2, Accounts Receivable: Amounts financed under our in-house credit programs, as a percent of net sales including sales tax, were approximately 0.6% in 2017, 1.0% in 2016 and 1.4% in 2015. The credit program selected most often by our customers is "12 months no interest with equal monthly payments." The terms of the other programs vary as to payment terms (30 days to three years) and interest rates (0% to 21%). The receivables are collateralized by the merchandise sold. Accounts receivable balances resulting from certain credit promotions have scheduled payment amounts which extend beyond one year. These receivable balances have been historically collected earlier than the scheduled dates. The amounts due per the scheduled payment dates approximate as follows: $2,604,000 in 2018, $273,000 in 2019, $39,000 in 2020 and $16,000 in 2021 for receivables outstanding at December 31, 2017. Accounts receivable are shown net of the allowance for doubtful accounts of approximately $270,000 and $360,000 at December 31, 2017 and 2016, respectively. We provide an allowance utilizing a methodology which considers the balances in problem and delinquent categories of accounts, historical write-offs, existing economic conditions and management judgment. We assess the adequacy of the allowance account at the end of each quarter. Interest assessments are continued on past-due accounts but no "interest on interest" is recorded. Delinquent accounts are generally written off automatically after the passage of nine months without receiving a full scheduled monthly payment. Accounts are written off sooner in the event of a discharged bankruptcy or other circumstances that make further collections unlikely. We believe that the carrying value of existing customer receivables, net of allowances, approximates fair value because of their short average maturity. Concentrations of credit risk with respect to customer receivables are limited due to the large number of customers comprising our account base and their dispersion across 16 states. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2017 | |
INVENTORIES [Abstract] | |
INVENTORIES | Note 3, Inventories Inventories are measured using the last-in, first-out (LIFO) method of valuation because it results in a better matching of current costs and revenues. The excess of current costs over our carrying value of inventories was approximately $19,177,000 and $17,946,000 at December 31, 2017 and 2016, respectively. The use of the LIFO valuation method as compared to the FIFO method had a negative impact on our cost of goods sold of approximately $1,231,000 in 2017 and $438,000 in 2015 and a positive impact of approximately $1,448,000 in 2016. During 2016, inventory quantities declined resulting in liquidations of LIFO inventory layers. The effect of the liquidations (included in the preceding LIFO impact amounts) decreased cost of goods sold by an immaterial amount. We believe this information is meaningful to the users of these consolidated financial statements for analyzing the effects of price changes, for better understanding our financial position and for comparing such effects with other companies. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2017 | |
PROPERTY AND EQUIPMENT [Abstract] | |
PROPERTY AND EQUIPMENT | Note 4, Property and Equipment: Property and equipment are summarized as follows: (In thousands) 2017 2016 Land and improvements $ 47,804 $ 48,264 Buildings and improvements 279,209 270,156 Furniture and fixtures 103,695 115,263 Equipment 48,745 47,222 Buildings under lease 56,902 55,894 Construction in progress 7,124 3,876 543,479 540,675 Less accumulated depreciation (295,491 ) (292,003 ) Less accumulated lease amortization (18,773 ) (15,005 ) Property and equipment, net $ 229,215 $ 233,667 |
CREDIT ARRANGEMENT
CREDIT ARRANGEMENT | 12 Months Ended |
Dec. 31, 2017 | |
CREDIT ARRANGEMENT [Abstract] | |
CREDIT ARRANGEMENT | Note 5, Credit Arrangement: In March 2016 we entered into the First Amendment to Amended and Restated Credit Agreement (the "Credit Agreement") with a bank. The Credit Agreement amends our revolving credit facility to increase the aggregate commitments from $50.0 million to $60.0 million, extend the maturity date to March 31, 2021 from September 1, 2016, lower the commitment fees on unused amounts, reduce the applicable margin for interest rates on borrowings, modify the borrowing base calculation, and change the collateral reporting requirements. We have not had any borrowings under the revolving credit facility since its origination in 2008. The $60.0 million revolving credit facility is secured by inventory, accounts receivable, cash and certain other personal property. Our Credit Agreement includes negative covenants that limit our ability to, among other things (a) incur, assume or permit to exist additional indebtedness or guarantees; (b) incur liens and engage in sale leaseback transactions or real estate sales in excess of $100.0 million; (c) pay dividends or redeem or repurchase capital stock; (d) engage in certain transactions with affiliates; and (e) alter the business that the Company conducts. Availability fluctuates under a borrowing base calculation and is reduced by outstanding letters of credit. The borrowing base was $53.4 million and there were no outstanding letters of credit at December 31, 2017. Amounts available are based on the lesser of the borrowing base or the $60.0 million line amount and reduced by $6.0 million since a fixed charge coverage ratio test was not met for the immediately preceding twelve months, resulting in a net availability of $47.4 million. There were no borrowed amounts outstanding under the Credit Agreement at December 31, 2017. |
ACCRUED LIABILITIES AND OTHER L
ACCRUED LIABILITIES AND OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2017 | |
ACCRUED LIABILITIES AND OTHER LIABILITIES [Abstract] | |
ACCRUED LIABILITIES AND OTHER LIABILITIES | Note 6, Accrued Liabilities and Other Liabilities: Accrued liabilities and other liabilities consist of the following: (In thousands) 2017 2016 Accrued liabilities: Employee compensation, related taxes and benefits $ 13,527 $ 15,024 Taxes other than income and withholding 8,677 10,856 Self-insurance reserves 5,962 5,945 Other 9,416 10,079 $ 37,582 $ 41,904 Other liabilities: Straight-line lease liability $ 8,565 $ 8,797 Self-insurance reserves 3,013 3,150 Other 15,122 12,724 $ 26,700 $ 24,671 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2017 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | Note 7, Income Taxes: On December 22, 2017, the President signed into Public Law No. 115-97, commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"). The Tax Act contains significant changes to corporate taxes, including a permanent reduction of the corporate tax rate from 35% to 21% effective January 1, 2018. The Tax Act's other major changes applicable to Havertys include the elimination of certain deductions and an enhanced and extended option to claim accelerated depreciation deductions on qualified property. In December 2017, the Securities and Exchange Commission (SEC) staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act We remeasured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 25%. However, we are still analyzing certain aspects of the Tax Act and refining our calculations, which could potentially affect the measurement of some of these balances or potentially give rise to new deferred tax amounts. At December 31, 2017, we have made a reasonable estimate of the effects on our existing deferred tax balances. The provisional amount recorded related to the remeasurement of our deferred tax balance was an additional expense of $10,639,000. As we complete our analysis of the Tax Act, collect and prepare necessary data, and interpret any additional guidance issued by the IRS and other standard-setting bodies, we may make adjustments to the provisional amounts. We recognized a tax benefit of $4,771,000 for the remeasurement of deferred tax assets and liabilities for which our accounting is complete. Income tax expense (benefit) consists of the following: (In thousands) 2017 2016 2015 Current Federal $ 14,239 $ 16,259 $ 17,598 State 2,350 2,326 2,907 16,589 18,585 20,505 Deferred Federal 5,829 (690 ) (2,476 ) State (270 ) (430 ) (543 ) 5,559 (1,120 ) (3,019 ) $ 22,148 $ 17,465 $ 17,486 The differences between income tax expense in the accompanying Consolidated Financial Statements and the amount computed by applying the statutory Federal income tax rate are as follows: (In thousands) 2017 2016 2015 Statutory rates applied to income before income taxes $ 15,129 $ 16,037 $ 15,846 State income taxes, net of Federal tax benefit 1,306 1,494 1,487 Net permanent differences 95 99 (11 ) Other (250 ) (165 ) 164 Tax Act, net impact 5,868 — — $ 22,148 $ 17,465 $ 17,486 Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The amounts in the following table are grouped based on broad categories of items that generate the deferred tax assets and liabilities. (In thousands) 2017 2016 Deferred tax assets: Accounts receivable $ 433 $ 808 Property and equipment 6,434 10,276 Leases 4,356 5,913 Accrued liabilities 8,171 12,217 Retirement benefits 492 513 Other 62 69 Total deferred tax assets 19,948 29,796 Deferred tax liabilities: Inventory 7,034 10,082 Other 539 1,338 Total deferred tax liabilities 7,573 11,420 Net deferred tax assets $ 12,375 $ 18,376 We review our deferred tax assets to determine the need for a valuation allowance. Based on evidence we conclude that it is more-likely-than-not that our deferred tax assets will be realized and therefore a valuation allowance is not required. We file income tax returns in the U.S. federal jurisdiction and various state and local jurisdictions. With respect to U.S. federal, state and local jurisdictions, with limited exceptions, we are no longer subject to income tax audits for years before 2014. Uncertain Tax Positions No uncertain tax positions were identified for the years currently open under statute of limitations. Interest and penalties associated with uncertain tax positions, if any, are recognized as components of income tax expense. |
LONG-TERM DEBT AND LEASE OBLIGA
LONG-TERM DEBT AND LEASE OBLIGATIONS | 12 Months Ended |
Dec. 31, 2017 | |
LONG-TERM DEBT AND LEASE OBLIGATIONS [Abstract] | |
LONG-TERM DEBT AND LEASE OBLIGATIONS | Note 8, Long-Term Debt and Lease Obligations: Long-term debt and lease obligations are summarized as follows: (In thousands) 2017 2016 Revolving credit notes (a) $ — $ — Lease obligations (b) 54,591 55,474 54,591 55,474 Less portion classified as current (3,788 ) (3,461 ) $ 50,803 $ 52,013 (a) We have a revolving credit agreement as described in Note 5. (b) These obligations are related to properties under lease with aggregate net book values of approximately $38,129,000 and $40,889,000 at December 31, 2017 and 2016, respectively. The approximate aggregate maturities of these lease obligations during the five years subsequent to December 31, 2017 and thereafter are as follows: 2018 - $3,788,000; 2019 - $4,018,000, 2020 - $4,222,000; 2021 - $3,672,000; 2022 - $3,776,000 and $35,115,000 thereafter. These maturities are net of imputed interest of approximately $15,294,000 at December 31, 2017. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2017 | |
STOCKHOLDERS' EQUITY [Abstract] | |
STOCKHOLDERS' EQUITY | Note 9, Stockholders' Equity: Common Stock has a preferential dividend rate of at least 105% of the dividend paid on Class A Common Stock. Class A Common Stock has greater voting rights which include: voting as a separate class for the election of 75% of the total number of directors and on all other matters subject to shareholder vote, each share of Class A Common Stock has ten votes and votes with the Common Stock as a single class. Class A Common Stock is convertible at the holder's option at any time into Common Stock on a 1-for-1 basis; Common Stock is not convertible into Class A Common Stock. A special cash dividend of $1.00 for Common Stock and $0.95 for Class A Common Stock was paid in the fourth quarter of 2016. Aggregate dividends paid on Common Stock was $10,473,000, $27,674,000 and $7,358,000 in 2017, 2016 and 2015, respectively. Aggregate dividends paid on Class A Common Stock was $919,000, $2,735,000 and $702,000 in 2017, 2016 and 2015, respectively. |
BENEFIT PLANS
BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2017 | |
BENEFIT PLANS [Abstract] | |
BENEFIT PLANS | Note 10, Benefit Plans: We have a non-qualified, non-contributory supplemental executive retirement plan (the "SERP") for employees whose retirement benefits are reduced due to their annual compensation levels. The SERP provides annual benefits amounting to 55% of final average earnings less benefits payable from Social Security benefits and our former pension plan which was settled in 2014. The SERP limits the total amount of annual retirement benefits that may be paid to a participant from all sources (former pension plan, Social Security and the SERP) to $125,000. The SERP is not funded so we pay benefits directly to participants. The SERP was frozen as of December 31, 2015 and no additional benefits were accrued after that date. The following table summarizes information about our SERP. (In thousands) 2017 2016 Change in benefit obligation: Benefit obligation at beginning of the year $ 7,674 $ 7,719 Interest cost 321 341 Actuarial losses (gains) 509 (72 ) Benefits paid (305 ) (314 ) Benefit obligation at end of year 8,199 7,674 Change in plan assets: Employer contribution 305 314 Benefits paid (305 ) (314 ) Fair value of plan assets at end of year — — Funded status of the plan – (underfunded) $ (8,199 ) $ (7,674 ) Accumulated benefit obligations $ 8,199 $ 7,674 Amounts recognized in the consolidated balance sheets consist of: (In thousands) 2017 2016 Current liabilities $ (365 ) $ (369 ) Noncurrent liabilities (7,834 ) (7,305 ) $ (8,199 ) $ (7,674 ) The net actuarial loss recognized in accumulated other comprehensive income (loss) before the effect of income taxes was $1,968,000 in 2017 and $1,550,000 in 2016. Net pension cost included the following components: SERP (In thousands) 2017 2016 2015 Service cost-benefits earned during the period $ — $ — $ 129 Interest cost on projected benefit obligation 321 341 314 Amortization of prior service cost — — 210 Amortization of actuarial loss 90 102 169 Curtailment loss recognized — — 222 Net pension costs $ 411 $ 443 $ 1,044 The net periodic benefit cost for the SERP for the year ended December 31, 2015, includes the impact of freezing the plan as of December 31, 2015, which resulted in fully recognizing the outstanding prior service cost basis at that date. The estimated amount that will be amortized from accumulated other comprehensive loss into net periodic cost in 2018 is approximately $143,000 for the SERP. Assumptions We use a measurement date of December 31 for our SERP plan. Assumptions used to determine net periodic benefit cost for years ended December 31 are as follows: SERP 2017 2016 2015 Discount rate 4.30 % 4.58 % 4.09 % Rate of compensation increase n/a n/a 3.50 % Assumptions used to determine benefit obligations at December 31 for the SERP are as follows: 2017 2016 Discount rate 3.68 % 4.30 % Rate of compensation increase n/a n/a Cash Flows The following schedule outlines the expected benefit payments related to the SERP in future years. These expected benefits were estimated based on the same actuarial assumptions used to determine benefit obligations at December 31, 2017. (In thousands) 2018 2019 2020 2021 2022 2023-2027 Benefit Payments $ 365 $ 376 $ 404 $ 431 $ 431 $ 2,437 Other Plans We have an employee savings/retirement (401(k)) plan to which substantially all our employees may contribute. We match employee contributions 100% of the first 1% of eligible pay and 50% of the next 5% contributed by participants. We expensed matching employer contributions of approximately $3,932,000, $3,884,000 and $3,661,000 in 2017, 2016 and 2015, respectively. We offer no post-retirement benefits other than the plans discussed above and no significant post-employment benefits. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2017 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | Note 11, Accumulated Other Comprehensive Income (loss): The following summarizes the changes in the balance and the reclassifications out of accumulated other comprehensive income (loss) on our Consolidated Balance Sheets to the Consolidated Statements of Comprehensive Income (amounts in thousands): Year Ended December 31, 2017 2016 2015 Beginning balance $ (1,830 ) $ (1,938 ) $ (2,168 ) Other comprehensive income (loss) Defined benefit pension plan: Net loss (gain) during year (509 ) 72 (230 ) Amortization of prior service cost (1) — — 432 Amortization of net loss (1) 90 102 169 (419 ) 174 371 Tax expense (benefit) (105 ) 66 141 Total other comprehensive income (loss) (314 ) 108 230 Ending balance $ (2,144 ) $ (1,830 ) $ (1,938 ) (1) These amounts are included in the computation of net periodic pension costs and were reclassified to selling, general and administrative costs. For 2015, this includes $222,000 in curtailment loss on the SERP. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2017 | |
STOCK-BASED COMPENSATION PLANS [Abstract] | |
STOCK-BASED COMPENSATION PLANS | Note 12, Stock-Based Compensation Plans: We have issued and outstanding awards for Common Stock under two employee compensation plans, the 2014 Long Term Incentive Plan (the "2014 LTIP Plan") and the 2004 Long Term Incentive Plan (the "2004 LTIP Plan"). No new awards may be granted under the 2004 LTIP Plan. As of December 31, 2017, approximately 842,000 shares were available for awards and options under the 2014 LTIP Plan. The following table summarizes our equity award activity during the years ended December 31, 2017, 2016 and 2015: Restricted Stock Award Stock-Settled Appreciation Rights Shares or Units Weighted-Average Award Price Rights Weighted-Average Award Price Outstanding at December 31, 2014 321,322 $ 20.49 129,975 $ 16.04 Granted 176,135 23.97 — Restrictions lapsed or exercised (1) (147,595 ) 18.94 (29,100 ) 8.74 Forfeited or expired (5,372 ) 24.84 — Outstanding at December 31, 2015 344,490 $ 22.87 100,875 $ 18.14 Granted 209,394 18.80 — Restrictions lapsed or exercised (140,864 ) 20.55 — Forfeited or expired (15,700 ) 20.45 — Outstanding at December 31, 2016 397,320 $ 21.64 100,875 $ 18.14 Granted 199,382 22.00 — Restrictions lapsed or exercised (1) (157,406 ) 22.02 (43,875 ) 18.14 Forfeited or expired (5,032 ) 20.09 — Outstanding at December 31, 2017 434,264 $ 21.69 57,000 $ 18.14 Exercisable at December 31, 2017 57,000 $ 18.14 Restricted units expected to vest 417,590 $ 21.71 Exercisable at December 31, 2016 74,875 $ 18.14 Exercisable at December 31, 2015 48,875 $ 18.14 (1) The total intrinsic value of stock-settled appreciation rights exercised was approximately $457,000 in 2015 and $284,000 in 2017. The fair value for stock-settled appreciation rights were estimated at the date of grant using a Black‑Scholes pricing model. The aggregate intrinsic value of vested and outstanding stock-settled appreciation rights at December 31, 2017 was approximately $257,000. The total fair value of restricted common stock shares that vested in 2017, 2016 and 2015 was approximately $3,972,000, $2,577,000 and $3,097,000, respectively. The aggregate intrinsic value of outstanding restricted stock awards was $9,836,000 at December 31, 2017. Grants of restricted common stock, restricted units, performance units and stock-settled appreciation rights have been made to certain officers and key employees under the 2004 and the 2014 LTIP Plan. The restrictions on the restricted units generally lapse or vest annually, primarily over four year periods. The performance units are based on one-year performance periods but cliff vest in three years from grant date. The compensation for all awards is being charged to selling, general and administrative expense over the respective grants' vesting periods, primarily on a straight-line basis, and was approximately $3,818,000, $3,872,000 and $4,033,000 in 2017, 2016 and 2015, respectively. The tax benefit recognized related to all awards was approximately $1,451,000, $1,471,000 and $1,533,000 in 2017, 2016 and 2015, respectively. As of December 31, 2017, the total compensation cost related to unvested equity awards was approximately $4,486,000 and is expected to be recognized over a weighted-average period of 2.3 years. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2017 | |
EARNINGS PER SHARE [Abstract] | |
EARNINGS PER SHARE | Note 13, Earnings Per Share: The following is a reconciliation of the income (loss) and number of shares used in calculating the diluted earnings per share for Common Stock and Class A Common Stock (amounts in thousands except per share data): Numerator: 2017 2016 2015 Common: Distributed earnings $ 10,473 $ 27,674 $ 7,358 Undistributed earnings 8,896 (1,869 ) 17,995 Basic 19,369 25,805 25,353 Class A Common earnings 1,706 2,551 2,436 Diluted $ 21,075 $ 28,356 $ 27,789 Class A Common: Distributed earnings $ 919 $ 2,735 $ 702 Undistributed earnings 787 (184 ) 1,734 $ 1,706 $ 2,551 $ 2,436 Denominator: 2017 2016 2015 Common: Weighted average shares outstanding - basic 19,381 19,492 20,430 Assumed conversion of Class A Common Stock 1,801 2,014 2,067 Dilutive options, awards and common stock equivalents 417 341 301 Total weighted average diluted Common Stock 21,599 21,847 22,798 Class A Common: Weighted average shares outstanding 1,801 2,014 2,067 Basic net earnings per share Common Stock $ 1.00 $ 1.32 $ 1.24 Class A Common Stock $ 0.95 $ 1.27 $ 1.18 Diluted net earnings per share Common Stock $ 0.98 $ 1.30 $ 1.22 Class A Common Stock $ 0.94 $ 1.27 $ 1.17 |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Dec. 31, 2017 | |
COMMITMENTS [Abstract] | |
COMMITMENTS | Note 14, Commitments: We lease certain property and equipment under operating leases. Initial lease terms range from 5 years to 30 years and certain leases contain renewal options ranging from one to 25 years or provide for options to purchase the related property at fair market value or at predetermined purchase prices. The leases generally require us to pay all maintenance, property taxes and insurance costs. The following schedule outlines the future minimum lease payments and rentals under operating leases: (In thousands) Operating Leases 2018 $ 31,643 2019 28,862 2020 26,264 2021 21,074 2022 14,428 Subsequent to 2022 31,203 Total minimum lease payments $ 153,474 Step rent and other lease concessions (free rent periods) are taken into account in computing lease expense on a straight-line basis. Landlord allowances for capital improvements have not been significant, but are recorded as a reduction of expense over the term of the lease. Net rental expense applicable to operating leases consisted of the following for the years ended December 31: (In thousands) 2017 2016 2015 Property Minimum $ 27,543 $ 26,594 $ 27,211 Additional rentals based on sales 21 4 27 Sublease income (90 ) (58 ) (206 ) 27,474 26,540 27,032 Equipment 3,084 3,031 2,943 $ 30,558 $ 29,571 $ 29,975 |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2017 | |
SUPPLEMENTAL CASH FLOW INFORMATION [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | Note 15, Supplemental Cash Flow Information: (In thousands) 2017 2016 2015 Cash paid for income taxes 18,763 $ 26,574 $ 13,509 Income tax refunds received 9 100 5 Cash paid for interest 2,486 2,540 2,583 Noncash financing and investing activity: Fixed assets acquired (adjusted) related to capital lease and financing obligations 1,009 3,890 3,176 Increase in financing obligations 2,598 5,474 6,594 |
SELECTED QUARTERLY FINANCIAL DA
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2017 | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) [Abstract] | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | Note 16, Selected Quarterly Financial Data (Unaudited): The following is a summary of the unaudited quarterly results of operations for the years ended December 31, 2017 and 2016 (in thousands, except per share data): 2017 Quarter Ended March 31 June 30 September 30 December 31 Net sales $ 200,427 $ 196,829 $ 207,647 $ 214,962 Gross profit 109,596 107,119 112,015 116,193 Credit service charges 45 42 38 35 Income before taxes 9,740 9,694 9,719 14,070 Net income 5,986 6,185 5,983 2,921 Basic net earnings per share: Common 0.28 0.29 0.28 0.14 Class A Common 0.27 0.28 0.27 0.13 Diluted net earnings per share: Common 0.28 0.29 0.28 0.13 Class A Common 0.27 0.27 0.27 0.13 The fourth quarter includes $1.9 million of other income primarily from gains on insurance recoveries of $1.3 million. The fourth quarter also includes additional income tax expense of $5.9 million due to the Tax Act. 2016 Quarter Ended March 31 June 30 September 30 December 31 Net sales $ 194,511 $ 194,774 $ 211,690 $ 220,595 Gross profit 104,419 104,160 113,737 121,020 Credit service charges 65 54 54 56 Income before taxes 7,587 8,762 12,125 17,347 Net income 4,669 5,374 7,336 10,947 Basic net earnings per share: Common 0.21 0.25 0.35 0.52 Class A Common 0.20 0.24 0.33 0.50 Diluted net earnings per share: Common 0.21 0.24 0.34 0.51 Class A Common 0.20 0.23 0.33 0.51 Because of rounding the amounts will not necessarily add to the totals computed for the year. Also because of rounding and the use of the two class method in calculating per share data, the quarterly per share data will not necessarily add to the annual totals. |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2017 | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS [Abstract] | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | Schedule II – Valuation and Qualifying Accounts Haverty Furniture Companies, Inc. Column A Column B Column C Column D Column E (In thousands) Balance at beginning of period Additions charged to costs and expenses Deductions Describe (1)(2) Balance at end of period Year ended December 31, 2017: Allowance for doubtful accounts $ 360 $ 314 $ 404 $ 270 Reserve for cancelled sales and allowances $ 1,772 $ 11,601 $ 11,909 $ 1,464 Year ended December 31, 2016: Allowance for doubtful accounts $ 395 $ 418 $ 453 $ 360 Reserve for cancelled sales and allowances $ 1,659 $ 11,402 $ 11,289 $ 1,772 Year ended December 31, 2015: Allowance for doubtful accounts $ 350 $ 269 $ 224 $ 395 Reserve for cancelled sales and allowances $ 1,627 $ 11,466 $ 11,434 $ 1,659 (1) Allowance for doubtful accounts: uncollectible accounts written off, net of recoveries. (2) Reserve for cancelled sales and allowances: impact of sales cancelled after delivery plus amount of allowance given to customers. |
DESCRIPTION OF BUSINESS AND S26
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Basis of Presentation | Basis of Presentation: The consolidated financial statements include the accounts of Havertys and its wholly-owned subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates: The preparation of financial statements in conformity with United States of America generally accepted accounting principles ("US GAAP") requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents: Cash and cash equivalents includes all liquid investments with a maturity date of less than three months when purchased. Cash equivalents also include amounts due from third-party financial institutions for credit and debit card transactions which typically settle within five days. |
Restricted Cash and Cash Equivalents | Restricted Cash and Cash Equivalents: Our insurance carrier requires us to collateralize a portion of our workers' compensation obligations. These funds are investments in money market funds held by an agent. The agreement with our carrier governing these funds is on an annual basis expiring on December 31. |
Inventories | Inventories: Inventories are stated at the lower of cost or market. Cost is determined using the last-in, first-out (LIFO) method. |
Property and Equipment | Property and Equipment: Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is provided over the estimated useful lives of the assets using the straight-line method. Leasehold improvements and buildings under lease are amortized over the shorter of the estimated useful life or the lease term of the related asset. Amortization of buildings under lease is included in depreciation expense. Estimated useful lives for financial reporting purposes are as follows: Buildings 25 – 33 years Improvements 5 – 15 years Furniture and Fixtures 3 – 15 years Equipment 3 – 15 years Buildings under lease 15 years |
Customer Deposits | Customer Deposits: Customer deposits consist of cash collections on sales of undelivered merchandise, customer advance payments, and deposits on credit sales for undelivered merchandise. |
Revenue Recognition | Revenue Recognition: We recognize revenue from merchandise sales and related service fees, net of sales taxes, upon delivery to the customer. A reserve for merchandise returns and customer allowances is estimated based on our historical returns and allowance experience and current sales levels. We typically offer our customers an opportunity for us to deliver their purchases and most choose this service. Delivery fees of approximately $25,728,000, $25,467,000 and $27,650,000 were charged to customers in 2017, 2016 and 2015, respectively, and are included in net sales. The costs associated with deliveries are included in selling, general and administrative expenses and were approximately $39,582,000, $39,222,000 and $37,730,000 in 2017, 2016 and 2015, respectively. Credit service charges are recognized as revenue as assessed to customers according to contract terms. The costs associated with credit approval, account servicing and collections are included in selling, general and administrative expenses. |
Cost of Goods Sold | Cost of Goods Sold: Our cost of goods sold includes the direct costs of products sold, warehouse handling and transportation costs. |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses: Our selling, general and administrative ("SG&A") expenses are comprised of advertising, selling, occupancy, delivery and administrative costs as well as certain warehouse expenses. The costs associated with our purchasing, warehousing, delivery and other distribution costs included in SG&A expense were approximately $77,368,000, $77,266,000 and $73,803,000 in 2017, 2016 and 2015, respectively. |
Leases | Leases: In the case of certain leased stores, we may be extensively involved in the construction or major structural modifications of the leased properties. As a result of this involvement, we are deemed the "owner" for accounting purposes during the construction period, and are required to capitalize the total fair market value of the portion of the leased property we use, excluding land, on our consolidated balance sheet. Following construction completion, we perform an analysis under ASC 840, " Leases |
Deferred Escalating Minimum Rent and Lease Incentives | Deferred Escalating Minimum Rent and Lease Incentives: Certain of our operating leases contain predetermined fixed escalations of the minimum rentals during the term of the lease. For these leases, we recognize the related rental expense on a straight-line basis over the life of the lease, beginning with the point at which we obtain control and possession of the leased properties, and record the difference between the amounts charged to operations and amounts paid as accrued liabilities. The liability for deferred escalating minimum rent approximated $8,565,000 and $8,797,000 at December 31, 2017 and 2016, respectively. Any operating lease incentives we receive are deferred and subsequently amortized on a straight-line basis over the life of the lease as a reduction of rent expense. The liability for lease incentives approximated $1,139,000 and $676,000 at December 31, 2017 and 2016, respectively. |
Advertising Expense | Advertising Expense: Advertising costs, which include television, radio, newspaper, digital, and other media advertising, are expensed upon first showing. The total amount of prepaid advertising costs included in other current assets was approximately $602,000 and $324,000 at December 31, 2017 and 2016, respectively. We incurred approximately $47,921,000, $45,132,000 and $45,784,000 in advertising expense during 2017, 2016 and 2015, respectively. |
Interest Expense, net | Interest Expense, net: Interest expense is comprised of amounts incurred related to our debt and lease obligations recorded on our balance sheet, net of interest income. The total amount of interest expense was approximately $2,512,000, $2,568,000 and $2,615,000 during 2017, 2016 and 2015, respectively. |
Other Income, net | Other Income, net: Other income, net includes any gains or losses on sales of property and equipment and miscellaneous income or expense items outside of core operations. We had a store receive significant damage on December 27, 2015 from a blizzard. We reduced the value of the property and its contents at December 31, 2015 to zero and recorded an insurance recovery receivable. During 2016, we recorded $2,228,000 in gains for the insurance recovery on the building and $1,110,000 for inventory, business interruption and other expenses. We received additional amounts in 2017 for the remaining full replacement value of the building as construction was completed and recognized a gain of $1,351,000. During 2017 we also recorded $1,500,000 in gains from insured losses related to a store damaged by a faulty underground sprinkler line and losses from Hurricane Irma. The sale of former retail locations also generated gains of $525,000 in 2017 and $700,000 in 2016. Other income, net for the year ended December 31, 2015 includes proceeds received of $800,000 for the settlement related to credit card litigation. |
Self-Insurance | Self-Insurance: We are self-insured, for amounts up to a deductible per occurrence, for losses related to general liability, workers' compensation and vehicle claims. We are primarily self-insured for employee group health care claims. We have purchased insurance coverage in order to establish certain limits to our exposure on a per claim basis. We maintain an accrual for these costs based on claims filed and an estimate of claims incurred but not reported or paid, based on historical data and actuarial estimates. The current portion of these self-insurance reserves is included in accrued liabilities and the non-current portion is included in other liabilities. These reserves totaled $8,975,000 and $9,095,000 at December 31, 2017 and 2016, respectively. |
Fair Values of Financial Instruments | Fair Values of Financial Instruments: The fair values of our cash and cash equivalents, restricted cash and cash equivalents, accounts receivable, accounts payable and customer deposits approximate their carrying amounts due to their short-term nature. The assets that are related to our self-directed, non-qualified deferred compensation plans for certain executives and employees are valued using quoted market prices, a Level 1 valuation technique. The assets totaled approximately $5,986,000 and $4,410,000 at December 31, 2017 and 2016, respectively, and are included in other assets. The related liability of the same amount is included in other liabilities. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets: We review long-lived assets for impairment when circumstances indicate the carrying amount of an asset may not be recoverable. If an indicator of impairment is identified, we evaluate the long-lived assets at the individual property or store level, which is the lowest level at which individual cash flows can be identified. When evaluating these assets for potential impairment, we first compare the carrying amount of the asset to the store's estimated future cash flows (undiscounted and without interest charges). If the estimated future cash flows are less than the carrying amount of the asset, an impairment loss calculation is prepared. The impairment loss calculation compares the carrying amount of the asset to the store's assets' estimated fair value, which is determined on the basis of fair value for similar assets or future cash flows (discounted and with interest charges). If required, an impairment loss is recorded in SG&A expense for the difference in the asset's carrying value and the asset's estimated fair value. No such losses were recorded in 2017, 2016 or 2015. |
Earnings Per Share | Earnings Per Share: We report our earnings per share using the two class method. The income per share for each class of common stock is calculated assuming 100% of our earnings are distributed as dividends to each class of common stock based on their contractual rights. See Note 13 for the computational components of basic and diluted earnings per share. |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss): Accumulated other comprehensive income (loss) ("AOCI"), net of income taxes, was comprised of unrecognized retirement liabilities totaling approximately $2,144,000 and $1,830,000 at December 31, 2017 and 2016, respectively. See Note 11 for the amounts reclassified out of AOCI to SG&A expense related to our supplemental executive retirement plan. |
Recently Issued and Adopted Accounting Pronouncement | Recently Issued and Adopted Accounting Pronouncement: Changes to GAAP are established by the Financial Accounting Standards Board (FASB) in the form of accounting standards updates (ASU's) to the FASB's Accounting Standards Codification (ASC). We considered the applicability and impact of all ASU's. ASU's not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position or results of operations. Share-based Payments. Revenue Recognition. The FASB has issued several amendments to the revenue standard, including clarification on accounting for principal versus agent considerations (i.e., reporting gross versus net). These amendments do not change the core principle of the standard, but provide clarity and implementation guidance. This standard is effective for Havertys beginning January 1, 2018 and will not have a material effect on Havertys' financial condition, results of operations or liquidity. We sell home furnishings and recognize revenue at delivery and this will not change under the new standard. We have substantially completed our comprehensive implementation plan, including the implementation of new controls and processes designed to comply with ASU 2014-09. We will use the modified retrospective (or cumulative-effect) adoption method. We will recognize an inventory asset related to product returns and a related liability for returns and allowances and adjust our existing reserve and deferred income tax assets with the impact increasing retained earnings approximately $130,000. Leases. |
Segment Information | Segment Information We operate within a single reportable segment. The following table presents the net sales of each major product category and service for each of the last three years: Year Ended December 31, (In thousands) 2017 2016 2015 Net Sales % of Net Sales Net Sales % of Net Sales Net Sales % of Net Sales Merchandise: Case Goods Bedroom Furniture $ 132,484 16.2 % $ 132,250 16.1 % $ 135,855 16.9 % Dining Room Furniture 92,921 11.3 94,918 11.5 92,966 11.6 Occasional 75,909 9.2 81,996 10.0 79,219 9.8 301,314 36.7 309,164 37.6 308,040 38.3 Upholstery 330,340 40.3 328,903 40.0 321,484 39.9 Mattresses 88,311 10.8 86,659 10.6 84,897 10.6 Accessories and Other (1) 99,901 12.2 96,845 11.8 90,449 11.2 $ 819,866 100.0 % $ 821,571 100.0 % $ 804,870 100.0 % (1) Includes delivery charges and product protection. |
DESCRIPTION OF BUSINESS AND S27
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Estimated Useful Lives of Property and Equipment | Estimated useful lives for financial reporting purposes are as follows: Buildings 25 – 33 years Improvements 5 – 15 years Furniture and Fixtures 3 – 15 years Equipment 3 – 15 years Buildings under lease 15 years |
Schedule of Segment Reporting Major Product Category and Service | We operate within a single reportable segment. The following table presents the net sales of each major product category and service for each of the last three years: Year Ended December 31, (In thousands) 2017 2016 2015 Net Sales % of Net Sales Net Sales % of Net Sales Net Sales % of Net Sales Merchandise: Case Goods Bedroom Furniture $ 132,484 16.2 % $ 132,250 16.1 % $ 135,855 16.9 % Dining Room Furniture 92,921 11.3 94,918 11.5 92,966 11.6 Occasional 75,909 9.2 81,996 10.0 79,219 9.8 301,314 36.7 309,164 37.6 308,040 38.3 Upholstery 330,340 40.3 328,903 40.0 321,484 39.9 Mattresses 88,311 10.8 86,659 10.6 84,897 10.6 Accessories and Other (1) 99,901 12.2 96,845 11.8 90,449 11.2 $ 819,866 100.0 % $ 821,571 100.0 % $ 804,870 100.0 % (1) Includes delivery charges and product protection. |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
PROPERTY AND EQUIPMENT [Abstract] | |
Schedule of Property and Equipment | Property and equipment are summarized as follows: (In thousands) 2017 2016 Land and improvements $ 47,804 $ 48,264 Buildings and improvements 279,209 270,156 Furniture and fixtures 103,695 115,263 Equipment 48,745 47,222 Buildings under lease 56,902 55,894 Construction in progress 7,124 3,876 543,479 540,675 Less accumulated depreciation (295,491 ) (292,003 ) Less accumulated lease amortization (18,773 ) (15,005 ) Property and equipment, net $ 229,215 $ 233,667 |
ACCRUED LIABILITIES AND OTHER29
ACCRUED LIABILITIES AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
ACCRUED LIABILITIES AND OTHER LIABILITIES [Abstract] | |
Schedule of Accrued Liabilities and Other Liabilities | Accrued liabilities and other liabilities consist of the following: (In thousands) 2017 2016 Accrued liabilities: Employee compensation, related taxes and benefits $ 13,527 $ 15,024 Taxes other than income and withholding 8,677 10,856 Self-insurance reserves 5,962 5,945 Other 9,416 10,079 $ 37,582 $ 41,904 Other liabilities: Straight-line lease liability $ 8,565 $ 8,797 Self-insurance reserves 3,013 3,150 Other 15,122 12,724 $ 26,700 $ 24,671 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
INCOME TAXES [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense (benefit) consists of the following: (In thousands) 2017 2016 2015 Current Federal $ 14,239 $ 16,259 $ 17,598 State 2,350 2,326 2,907 16,589 18,585 20,505 Deferred Federal 5,829 (690 ) (2,476 ) State (270 ) (430 ) (543 ) 5,559 (1,120 ) (3,019 ) $ 22,148 $ 17,465 $ 17,486 |
Schedule of Effective Income Tax Rate Reconciliation | The differences between income tax expense in the accompanying Consolidated Financial Statements and the amount computed by applying the statutory Federal income tax rate are as follows: (In thousands) 2017 2016 2015 Statutory rates applied to income before income taxes $ 15,129 $ 16,037 $ 15,846 State income taxes, net of Federal tax benefit 1,306 1,494 1,487 Net permanent differences 95 99 (11 ) Other (250 ) (165 ) 164 Tax Act, net impact 5,868 — — $ 22,148 $ 17,465 $ 17,486 |
Schedule of Deferred Tax Assets and Liabilities | The amounts in the following table are grouped based on broad categories of items that generate the deferred tax assets and liabilities. (In thousands) 2017 2016 Deferred tax assets: Accounts receivable $ 433 $ 808 Property and equipment 6,434 10,276 Leases 4,356 5,913 Accrued liabilities 8,171 12,217 Retirement benefits 492 513 Other 62 69 Total deferred tax assets 19,948 29,796 Deferred tax liabilities: Inventory 7,034 10,082 Other 539 1,338 Total deferred tax liabilities 7,573 11,420 Net deferred tax assets $ 12,375 $ 18,376 |
LONG-TERM DEBT AND LEASE OBLI31
LONG-TERM DEBT AND LEASE OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
LONG-TERM DEBT AND LEASE OBLIGATIONS [Abstract] | |
Schedule of Long-Term Debt and Lease Obligations | Long-term debt and lease obligations are summarized as follows: (In thousands) 2017 2016 Revolving credit notes (a) $ — $ — Lease obligations (b) 54,591 55,474 54,591 55,474 Less portion classified as current (3,788 ) (3,461 ) $ 50,803 $ 52,013 (a) We have a revolving credit agreement as described in Note 5. (b) These obligations are related to properties under lease with aggregate net book values of approximately $38,129,000 and $40,889,000 at December 31, 2017 and 2016, respectively. |
BENEFIT PLANS (Tables)
BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
BENEFIT PLANS [Abstract] | |
Schedule of Information about our SERP | The following table summarizes information about our SERP. (In thousands) 2017 2016 Change in benefit obligation: Benefit obligation at beginning of the year $ 7,674 $ 7,719 Interest cost 321 341 Actuarial losses (gains) 509 (72 ) Benefits paid (305 ) (314 ) Benefit obligation at end of year 8,199 7,674 Change in plan assets: Employer contribution 305 314 Benefits paid (305 ) (314 ) Fair value of plan assets at end of year — — Funded status of the plan – (underfunded) $ (8,199 ) $ (7,674 ) Accumulated benefit obligations $ 8,199 $ 7,674 |
Schedule of Amounts Recognized in Consolidated Balance Sheets | Amounts recognized in the consolidated balance sheets consist of: (In thousands) 2017 2016 Current liabilities $ (365 ) $ (369 ) Noncurrent liabilities (7,834 ) (7,305 ) $ (8,199 ) $ (7,674 ) |
Schedule of Net Pension Costs | Net pension cost included the following components: SERP (In thousands) 2017 2016 2015 Service cost-benefits earned during the period $ — $ — $ 129 Interest cost on projected benefit obligation 321 341 314 Amortization of prior service cost — — 210 Amortization of actuarial loss 90 102 169 Curtailment loss recognized — — 222 Net pension costs $ 411 $ 443 $ 1,044 |
Schedule of Assumptions Used | We use a measurement date of December 31 for our SERP plan. Assumptions used to determine net periodic benefit cost for years ended December 31 are as follows: SERP 2017 2016 2015 Discount rate 4.30 % 4.58 % 4.09 % Rate of compensation increase n/a n/a 3.50 % Assumptions used to determine benefit obligations at December 31 for the SERP are as follows: 2017 2016 Discount rate 3.68 % 4.30 % Rate of compensation increase n/a n/a |
Schedule of Expected Future Benefit Payments | These expected benefits were estimated based on the same actuarial assumptions used to determine benefit obligations at December 31, 2017. (In thousands) 2018 2019 2020 2021 2022 2023-2027 Benefit Payments $ 365 $ 376 $ 404 $ 431 $ 431 $ 2,437 |
ACCUMULATED OTHER COMPREHENSI33
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following summarizes the changes in the balance and the reclassifications out of accumulated other comprehensive income (loss) on our Consolidated Balance Sheets to the Consolidated Statements of Comprehensive Income (amounts in thousands): Year Ended December 31, 2017 2016 2015 Beginning balance $ (1,830 ) $ (1,938 ) $ (2,168 ) Other comprehensive income (loss) Defined benefit pension plan: Net loss (gain) during year (509 ) 72 (230 ) Amortization of prior service cost (1) — — 432 Amortization of net loss (1) 90 102 169 (419 ) 174 371 Tax expense (benefit) (105 ) 66 141 Total other comprehensive income (loss) (314 ) 108 230 Ending balance $ (2,144 ) $ (1,830 ) $ (1,938 ) (1) These amounts are included in the computation of net periodic pension costs and were reclassified to selling, general and administrative costs. For 2015, this includes $222,000 in curtailment loss on the SERP. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
STOCK-BASED COMPENSATION PLANS [Abstract] | |
Share Option and Award Activity | The following table summarizes our equity award activity during the years ended December 31, 2017, 2016 and 2015: Restricted Stock Award Stock-Settled Appreciation Rights Shares or Units Weighted-Average Award Price Rights Weighted-Average Award Price Outstanding at December 31, 2014 321,322 $ 20.49 129,975 $ 16.04 Granted 176,135 23.97 — Restrictions lapsed or exercised (1) (147,595 ) 18.94 (29,100 ) 8.74 Forfeited or expired (5,372 ) 24.84 — Outstanding at December 31, 2015 344,490 $ 22.87 100,875 $ 18.14 Granted 209,394 18.80 — Restrictions lapsed or exercised (140,864 ) 20.55 — Forfeited or expired (15,700 ) 20.45 — Outstanding at December 31, 2016 397,320 $ 21.64 100,875 $ 18.14 Granted 199,382 22.00 — Restrictions lapsed or exercised (1) (157,406 ) 22.02 (43,875 ) 18.14 Forfeited or expired (5,032 ) 20.09 — Outstanding at December 31, 2017 434,264 $ 21.69 57,000 $ 18.14 Exercisable at December 31, 2017 57,000 $ 18.14 Restricted units expected to vest 417,590 $ 21.71 Exercisable at December 31, 2016 74,875 $ 18.14 Exercisable at December 31, 2015 48,875 $ 18.14 (1) The total intrinsic value of stock-settled appreciation rights exercised was approximately $457,000 in 2015 and $284,000 in 2017. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
EARNINGS PER SHARE [Abstract] | |
Reconciliation of Income (Loss) and Number of Shares used in Calculating Diluted Earnings Per Share | The following is a reconciliation of the income (loss) and number of shares used in calculating the diluted earnings per share for Common Stock and Class A Common Stock (amounts in thousands except per share data): Numerator: 2017 2016 2015 Common: Distributed earnings $ 10,473 $ 27,674 $ 7,358 Undistributed earnings 8,896 (1,869 ) 17,995 Basic 19,369 25,805 25,353 Class A Common earnings 1,706 2,551 2,436 Diluted $ 21,075 $ 28,356 $ 27,789 Class A Common: Distributed earnings $ 919 $ 2,735 $ 702 Undistributed earnings 787 (184 ) 1,734 $ 1,706 $ 2,551 $ 2,436 Denominator: 2017 2016 2015 Common: Weighted average shares outstanding - basic 19,381 19,492 20,430 Assumed conversion of Class A Common Stock 1,801 2,014 2,067 Dilutive options, awards and common stock equivalents 417 341 301 Total weighted average diluted Common Stock 21,599 21,847 22,798 Class A Common: Weighted average shares outstanding 1,801 2,014 2,067 Basic net earnings per share Common Stock $ 1.00 $ 1.32 $ 1.24 Class A Common Stock $ 0.95 $ 1.27 $ 1.18 Diluted net earnings per share Common Stock $ 0.98 $ 1.30 $ 1.22 Class A Common Stock $ 0.94 $ 1.27 $ 1.17 |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
COMMITMENTS [Abstract] | |
Future Minimum Lease Payments and Rentals under Operating Leases | The following schedule outlines the future minimum lease payments and rentals under operating leases: (In thousands) Operating Leases 2018 $ 31,643 2019 28,862 2020 26,264 2021 21,074 2022 14,428 Subsequent to 2022 31,203 Total minimum lease payments $ 153,474 |
Net Rental Expense Applicable to Operating Leases | Net rental expense applicable to operating leases consisted of the following for the years ended December 31: (In thousands) 2017 2016 2015 Property Minimum $ 27,543 $ 26,594 $ 27,211 Additional rentals based on sales 21 4 27 Sublease income (90 ) (58 ) (206 ) 27,474 26,540 27,032 Equipment 3,084 3,031 2,943 $ 30,558 $ 29,571 $ 29,975 |
SUPPLEMENTAL CASH FLOW INFORM37
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
SUPPLEMENTAL CASH FLOW INFORMATION [Abstract] | |
Supplemental Cash Flow Information | (In thousands) 2017 2016 2015 Cash paid for income taxes 18,763 $ 26,574 $ 13,509 Income tax refunds received 9 100 5 Cash paid for interest 2,486 2,540 2,583 Noncash financing and investing activity: Fixed assets acquired (adjusted) related to capital lease and financing obligations 1,009 3,890 3,176 Increase in financing obligations 2,598 5,474 6,594 |
SELECTED QUARTERLY FINANCIAL 38
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) [Abstract] | |
Selected Quarterly Financial Data | The following is a summary of the unaudited quarterly results of operations for the years ended December 31, 2017 and 2016 (in thousands, except per share data): 2017 Quarter Ended March 31 June 30 September 30 December 31 Net sales $ 200,427 $ 196,829 $ 207,647 $ 214,962 Gross profit 109,596 107,119 112,015 116,193 Credit service charges 45 42 38 35 Income before taxes 9,740 9,694 9,719 14,070 Net income 5,986 6,185 5,983 2,921 Basic net earnings per share: Common 0.28 0.29 0.28 0.14 Class A Common 0.27 0.28 0.27 0.13 Diluted net earnings per share: Common 0.28 0.29 0.28 0.13 Class A Common 0.27 0.27 0.27 0.13 2016 Quarter Ended March 31 June 30 September 30 December 31 Net sales $ 194,511 $ 194,774 $ 211,690 $ 220,595 Gross profit 104,419 104,160 113,737 121,020 Credit service charges 65 54 54 56 Income before taxes 7,587 8,762 12,125 17,347 Net income 4,669 5,374 7,336 10,947 Basic net earnings per share: Common 0.21 0.25 0.35 0.52 Class A Common 0.20 0.24 0.33 0.50 Diluted net earnings per share: Common 0.21 0.24 0.34 0.51 Class A Common 0.20 0.23 0.33 0.51 |
DESCRIPTION OF BUSINESS AND S39
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)ShowroomState | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||
Number of showrooms | Showroom | 124 | ||
Number of states | State | 16 | ||
Cash and Cash Equivalents [Abstract] | |||
Period of settlement for amounts due from third-party financial institutions for credit and debit card transactions | 5 days | ||
Other Income, net [Abstract] | |||
Insurance recovery receivable | $ 0 | ||
Gains on insurance recovery | $ 2,848 | $ 3,338 | 0 |
Gain on sale of former retail location | 525 | 700 | |
Settlement related to credit card litigation | 800 | ||
Revenue Recognition [Abstract] | |||
Delivery fees | 25,728 | 25,467 | 27,650 |
Deliveries expense | 39,582 | 39,222 | 37,730 |
Selling, General and Administrative Expenses [Abstract] | |||
Purchasing, warehousing, delivery and other distribution costs | 77,368 | 77,266 | 73,803 |
Deferred Escalating Minimum Rent and Lease Incentives [Abstract] | |||
Liability for deferred escalating minimum rent | 8,565 | 8,797 | |
Lease incentives | 1,139 | 676 | |
Advertising Expense [Abstract] | |||
Prepaid advertising cost | 602 | 324 | |
Advertising expense | 47,921 | 45,132 | 45,784 |
Interest Expense, net [Abstract] | |||
Interest expense | 2,512 | 2,568 | 2,615 |
Self-Insurance [Abstract] | |||
Self-insurance reserves | 8,975 | 9,095 | |
Fair Values of Financial Instruments [Abstract] | |||
Deferred compensation plans | $ 5,986 | $ 4,410 | |
Earnings Per Share [Abstract] | |||
Percentage of earnings or losses assumed in calculation | 100.00% | 100.00% | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |||
Accumulated other comprehensive (loss) | $ (2,144) | $ (1,830) | |
Other Expenses [Member] | |||
Other Income, net [Abstract] | |||
Gains on insurance recovery | 1,110 | ||
Hurricane Irma [Member] | |||
Other Income, net [Abstract] | |||
Gains on insurance recovery | 1,500 | ||
Buildings [Member] | |||
Other Income, net [Abstract] | |||
Gains on insurance recovery | $ 1,351 | 2,228 | |
Buildings [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life of property and equipment | 25 years | ||
Buildings [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life of property and equipment | 33 years | ||
Improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life of property and equipment | 5 years | ||
Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life of property and equipment | 15 years | ||
Furniture and Fixtures [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life of property and equipment | 3 years | ||
Furniture and Fixtures [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life of property and equipment | 15 years | ||
Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life of property and equipment | 3 years | ||
Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life of property and equipment | 15 years | ||
Buildings under Lease [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life of property and equipment | 15 years | ||
ASU 2016-09 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Excess tax (cost) benefit related to stock-based plans | $ (121) | $ 253 | |
ASU 2014-09 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect on adoption method in increasing retained earnings | $ 130 |
DESCRIPTION OF BUSINESS AND S40
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Schedule of Major Product Category and Service [Abstract] | ||||||||||||
Net sales | $ 214,962 | $ 207,647 | $ 196,829 | $ 200,427 | $ 220,595 | $ 211,690 | $ 194,774 | $ 194,511 | $ 819,866 | $ 821,571 | $ 804,870 | |
Percentage of net sales | 100.00% | 100.00% | 100.00% | |||||||||
Reportable Segment [Member] | Case Goods [Member] | ||||||||||||
Schedule of Major Product Category and Service [Abstract] | ||||||||||||
Net sales | $ 301,314 | $ 309,164 | $ 308,040 | |||||||||
Percentage of net sales | 36.70% | 37.60% | 38.30% | |||||||||
Reportable Segment [Member] | Case Goods [Member] | Bedroom Furniture [Member] | ||||||||||||
Schedule of Major Product Category and Service [Abstract] | ||||||||||||
Net sales | $ 132,484 | $ 132,250 | $ 135,855 | |||||||||
Percentage of net sales | 16.20% | 16.10% | 16.90% | |||||||||
Reportable Segment [Member] | Case Goods [Member] | Dining Room Furniture [Member] | ||||||||||||
Schedule of Major Product Category and Service [Abstract] | ||||||||||||
Net sales | $ 92,921 | $ 94,918 | $ 92,966 | |||||||||
Percentage of net sales | 11.30% | 11.50% | 11.60% | |||||||||
Reportable Segment [Member] | Case Goods [Member] | Occasional [Member] | ||||||||||||
Schedule of Major Product Category and Service [Abstract] | ||||||||||||
Net sales | $ 75,909 | $ 81,996 | $ 79,219 | |||||||||
Percentage of net sales | 9.20% | 10.00% | 9.80% | |||||||||
Reportable Segment [Member] | Upholstery [Member] | ||||||||||||
Schedule of Major Product Category and Service [Abstract] | ||||||||||||
Net sales | $ 330,340 | $ 328,903 | $ 321,484 | |||||||||
Percentage of net sales | 40.30% | 40.00% | 39.90% | |||||||||
Reportable Segment [Member] | Mattresses [Member] | ||||||||||||
Schedule of Major Product Category and Service [Abstract] | ||||||||||||
Net sales | $ 88,311 | $ 86,659 | $ 84,897 | |||||||||
Percentage of net sales | 10.80% | 10.60% | 10.60% | |||||||||
Reportable Segment [Member] | Accessories and Other [Member] | ||||||||||||
Schedule of Major Product Category and Service [Abstract] | ||||||||||||
Net sales | [1] | $ 99,901 | $ 96,845 | $ 90,449 | ||||||||
Percentage of net sales | [1] | 12.20% | 11.80% | 11.20% | ||||||||
[1] | Includes delivery charges and product protection. |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)State | Dec. 31, 2016USD ($) | Dec. 31, 2015 | |
ACCOUNTS RECEIVABLE [Abstract] | |||
Percentage of amounts financed under in-house credit programs, as a percent of net sales including sales tax | 0.60% | 1.00% | 1.40% |
Duration of no interest credit programs | 12 months | ||
Accounts receivable due per scheduled payment [Abstract] | |||
2,018 | $ 2,604 | ||
2,019 | 273 | ||
2,020 | 39 | ||
2,021 | 16 | ||
Allowance for doubtful accounts | $ 270 | $ 360 | |
Account write-off period | 9 months | ||
Number of states in which accounts receivable originated | State | 16 | ||
Minimum [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Term of other programs | 30 days | ||
Interest rate of other programs | 0.00% | ||
Maximum [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Term of other programs | 3 years | ||
Interest rate of other programs | 21.00% |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
INVENTORIES [Abstract] | |||
Excess of current costs over carrying value of inventories | $ 19,177 | $ 17,946 | |
Positive (negative) effect of LIFO valuation method as compared to the FIFO method | $ (1,231) | $ 1,448 | $ (438) |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 543,479 | $ 540,675 |
Less accumulated depreciation | (295,491) | (292,003) |
Less accumulated lease amortization | (18,773) | (15,005) |
Property and equipment, net | 229,215 | 233,667 |
Land and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 47,804 | 48,264 |
Buildings and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 279,209 | 270,156 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 103,695 | 115,263 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 48,745 | 47,222 |
Buildings under Lease [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 56,902 | 55,894 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 7,124 | $ 3,876 |
CREDIT ARRANGEMENT (Details)
CREDIT ARRANGEMENT (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Credit Agreement [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 60 | $ 50 |
Maturity date | Mar. 31, 2021 | Sep. 1, 2016 |
Sale leaseback transactions or real estate sales as covenant | $ 100 | |
Current borrowing base | 53.4 | |
Reduction in borrowing base due to deficit in fixed charges coverage ratio test | $ 6 | |
Number of trailing months to compute fixed charges coverage ratio | 12 months | |
Net availability | $ 47.4 | |
Letter of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Outstanding letters of credit | $ 0 |
ACCRUED LIABILITIES AND OTHER45
ACCRUED LIABILITIES AND OTHER LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accrued liabilities [Abstract] | ||
Employee compensation, related taxes and benefits | $ 13,527 | $ 15,024 |
Taxes other than income and withholding | 8,677 | 10,856 |
Self-insurance reserves | 5,962 | 5,945 |
Other | 9,416 | 10,079 |
Accrued liabilities | 37,582 | 41,904 |
Other liabilities [Abstract] | ||
Straight-line lease liability | 8,565 | 8,797 |
Self-insurance reserves | 3,013 | 3,150 |
Other | 15,122 | 12,724 |
Other liabilities | $ 26,700 | $ 24,671 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Line Items] | |||||
Corporate tax rate | 35.00% | ||||
Deferred tax assets and liabilities expected to reverse, percentage | 25.00% | ||||
Additional provision for income tax expense | $ 5,900 | $ 10,639 | |||
Income tax (benefit) | (4,771) | ||||
Current [Abstract] | |||||
Federal | 14,239 | $ 16,259 | $ 17,598 | ||
State | 2,350 | 2,326 | 2,907 | ||
Current income tax expense (benefit) | 16,589 | 18,585 | 20,505 | ||
Deferred [Abstract] | |||||
Federal | 5,829 | (690) | (2,476) | ||
State | (270) | (430) | (543) | ||
Deferred income tax expense (benefit) | 5,559 | (1,120) | (3,019) | ||
Income tax expense (benefit) | 22,148 | 17,465 | 17,486 | ||
Effective income tax rate reconciliation [Abstract] | |||||
Statutory rates applied to income before income taxes | 15,129 | 16,037 | 15,846 | ||
State income taxes, net of Federal tax benefit | 1,306 | 1,494 | 1,487 | ||
Net permanent differences | 95 | 99 | (11) | ||
Other | (250) | (165) | 164 | ||
Tax Act, net impact | 5,868 | 0 | 0 | ||
Income tax expense (benefit) | 22,148 | 17,465 | $ 17,486 | ||
Deferred tax assets [Abstract] | |||||
Accounts receivable | 433 | 433 | 808 | ||
Property and equipment | 6,434 | 6,434 | 10,276 | ||
Leases | 4,356 | 4,356 | 5,913 | ||
Accrued liabilities | 8,171 | 8,171 | 12,217 | ||
Retirement benefits | 492 | 492 | 513 | ||
Other | 62 | 62 | 69 | ||
Total deferred tax assets | 19,948 | 19,948 | 29,796 | ||
Deferred tax liabilities [Abstract] | |||||
Inventory | 7,034 | 7,034 | 10,082 | ||
Other | 539 | 539 | 1,338 | ||
Total deferred tax liabilities | 7,573 | 7,573 | 11,420 | ||
Net deferred tax assets | $ 12,375 | $ 12,375 | $ 18,376 | ||
Plan [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Corporate tax rate | 21.00% |
LONG-TERM DEBT AND LEASE OBLI47
LONG-TERM DEBT AND LEASE OBLIGATIONS (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Long term debt and lease obligations [Abstract] | |||
Long term debt and capital lease obligations | $ 54,591 | $ 55,474 | |
Less portion classified as current | (3,788) | (3,461) | |
Long term debt and capital lease obligations non current | 50,803 | 52,013 | |
Net book value of capitalized leased retail stores | 38,129 | 40,889 | |
Aggregate maturities of lease obligations [Abstract] | |||
2,018 | 3,788 | ||
2,019 | 4,018 | ||
2,020 | 4,222 | ||
2,021 | 3,672 | ||
2,022 | 3,776 | ||
Thereafter | 35,115 | ||
Imputed Interest | 15,294 | ||
Revolving Credit Notes [Member] | |||
Long term debt and lease obligations [Abstract] | |||
Long term debt and capital lease obligations | [1] | 0 | 0 |
Lease Obligations [Member] | |||
Long term debt and lease obligations [Abstract] | |||
Long term debt and capital lease obligations | [2] | $ 54,591 | $ 55,474 |
[1] | We have a revolving credit agreement as described in Note 5. | ||
[2] | These obligations are related to properties under lease with aggregate net book values of approximately $38,129,000 and $40,889,000 at December 31, 2017 and 2016, respectively. |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016$ / shares | Dec. 31, 2017USD ($)Vote$ / shares | Dec. 31, 2016USD ($)$ / shares | Dec. 31, 2015USD ($)$ / shares | |
Common Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Common stock dividend paid in cash (in dollars per share) | $ / shares | $ 1 | |||
Aggregate dividends paid on common Stock | $ | $ 10,473 | $ 27,674 | $ 7,358 | |
Class A Common Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Preferential dividend rate of common stock of dividends paid | 105.00% | |||
Percentage of number of directors elected under stock voting right | 75.00% | |||
Number of votes per share | Vote | 10 | |||
Conversion basis | 1-for-1 basis | |||
Common stock dividend paid in cash (in dollars per share) | $ / shares | $ 0.95 | $ 0.51 | $ 1.365 | $ 0.34 |
Aggregate dividends paid on common Stock | $ | $ 919 | $ 2,735 | $ 702 |
BENEFIT PLANS (Details)
BENEFIT PLANS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net actuarial loss recognized in accumulated other comprehensive income (loss) | $ 1,968 | $ 1,550 | ||
Amounts recognized in balance sheets [Abstract] | ||||
Current liabilities | (365) | (369) | ||
Noncurrent liabilities | (7,834) | (7,305) | ||
Total amount recognized in balance sheet | (8,199) | (7,674) | ||
Net pension cost [Abstract] | ||||
Amortization of prior service cost | [1] | 0 | 0 | $ (432) |
Amortization of actuarial loss | [1] | $ (90) | (102) | (169) |
Curtailment loss recognized | 222 | |||
SERP [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage of final average earnings as annual benefits | 55.00% | |||
Maximum amount of annual retirement benefits | $ 125 | |||
Change in benefit obligation [Roll Forward] | ||||
Benefit obligation at beginning of the year | 7,674 | 7,719 | ||
Interest cost | 321 | 341 | 314 | |
Actuarial losses (gains) | 509 | (72) | ||
Benefits paid | (305) | (314) | ||
Benefit obligation at end of year | 8,199 | 7,674 | 7,719 | |
Change in plan assets [Roll Forward] | ||||
Employer contribution | 305 | 314 | ||
Benefits paid | (305) | (314) | ||
Fair value of plan assets at end of year | 0 | 0 | ||
Funded status of the plan - (underfunded) | (8,199) | (7,674) | ||
Accumulated benefit obligations | 8,199 | 7,674 | ||
Net pension cost [Abstract] | ||||
Service cost-benefits earned during the period | 0 | 0 | 129 | |
Interest cost on projected benefit obligation | 321 | 341 | 314 | |
Amortization of prior service cost | 0 | 0 | 210 | |
Amortization of actuarial loss | 90 | 102 | 169 | |
Curtailment loss recognized | 0 | 0 | 222 | |
Net pension costs | 411 | $ 443 | $ 1,044 | |
Estimated amount that will be amortized from accumulated other comprehensive loss into net periodic cost | $ 143 | |||
[1] | These amounts are included in the computation of net periodic pension costs and were reclassified to selling, general and administrative costs. For 2015, this includes $222,000 in curtailment loss on the SERP. |
BENEFIT PLANS, Assumptions (Det
BENEFIT PLANS, Assumptions (Details) - SERP [Member] | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Weighted-average assumptions used to determine net periodic benefit cost [Abstract] | ||||||
Discount rate | 4.30% | 4.58% | 4.09% | |||
Rate of compensation increase | [1] | [1] | 3.50% | |||
Weighted-average assumptions used to determine benefit obligations [Abstract] | ||||||
Discount rate | 3.68% | 4.30% | ||||
Rate of compensation increase | [1] | |||||
[1] | n/a |
BENEFIT PLANS, Expected Benefit
BENEFIT PLANS, Expected Benefit Payments (Details) - SERP [Member] $ in Thousands | Dec. 31, 2017USD ($) |
Expected future benefit payments [Abstract] | |
2,018 | $ 365 |
2,019 | 376 |
2,020 | 404 |
2,021 | 431 |
2,022 | 431 |
2023-2027 | $ 2,437 |
BENEFIT PLANS, Other Plans (Det
BENEFIT PLANS, Other Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Plans [Abstract] | |||
Employer contribution matching, first 1% of employee contribution | 100.00% | ||
Employer contribution percent of employee contribution, 100% matching | 1.00% | ||
Employer contribution matching, next 5% of employee contribution | 50.00% | ||
Employer contribution percent of employee contribution, 50% matching | 5.00% | ||
Expense incurred as matching contribution | $ 3,932 | $ 3,884 | $ 3,661 |
ACCUMULATED OTHER COMPREHENSI53
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | $ 281,871 | $ 301,739 | ||
Defined benefit pension plan [Abstract] | ||||
Net loss (gain) during year | (509) | 72 | $ (230) | |
Amortization of prior service cost | [1] | 0 | 0 | 432 |
Amortization of net loss | [1] | 90 | 102 | 169 |
Defined benefit pension plan | (419) | 174 | 371 | |
Tax expense (benefit) | (105) | 66 | 141 | |
Total other comprehensive income (loss) | (314) | 108 | 230 | |
Balance | 294,142 | 281,871 | 301,739 | |
Curtailment (loss) | (222) | |||
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | (1,830) | (1,938) | (2,168) | |
Defined benefit pension plan [Abstract] | ||||
Balance | $ (2,144) | $ (1,830) | $ (1,938) | |
[1] | These amounts are included in the computation of net periodic pension costs and were reclassified to selling, general and administrative costs. For 2015, this includes $222,000 in curtailment loss on the SERP. |
STOCK-BASED COMPENSATION PLAN54
STOCK-BASED COMPENSATION PLANS (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2017USD ($)Plan$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of compensation plans | Plan | 2 | |||||
Shares available for grant under 2014 LTIP Plan (in shares) | 842,000 | |||||
Additional Disclosures [Abstract] | ||||||
Stock based compensation expense | $ | $ 3,818 | $ 3,872 | $ 4,033 | |||
Tax benefit recognized related to all awards | $ | 1,451 | $ 1,471 | $ 1,533 | |||
Total compensation cost related to unvested equity awards | $ | $ 4,486 | |||||
Weighted-average period of recognition of cost | 2 years 3 months 18 days | |||||
Restricted Stock Award [Member] | ||||||
Shares or Units and Rights [Roll Forward] | ||||||
Outstanding, beginning balance (in shares) | 397,320 | 344,490 | 321,322 | |||
Granted (in shares) | 199,382 | 209,394 | 176,135 | |||
Restrictions lapsed or exercised (in shares) | (157,406) | [1] | (140,864) | (147,595) | [1] | |
Forfeited or expired (in shares) | (5,032) | (15,700) | (5,372) | |||
Restricted units expected to vest (in shares) | 417,590 | |||||
Outstanding, ending balance (in shares) | 434,264 | 397,320 | 344,490 | |||
Weighted-Average Award Price [Roll Forward] | ||||||
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 21.64 | $ 22.87 | $ 20.49 | |||
Granted (in dollars per share) | $ / shares | 22 | 18.80 | 23.97 | |||
Restrictions lapsed or exercised (in dollars per share) | $ / shares | 22.02 | [1] | 20.55 | 18.94 | [1] | |
Forfeited or expired (in dollars per share) | $ / shares | 20.09 | 20.45 | 24.84 | |||
Restricted units expected to vest (in dollars per share) | $ / shares | 21.71 | |||||
Outstanding, ending balance (in dollars per share) | $ / shares | $ 21.69 | $ 21.64 | $ 22.87 | |||
Additional Disclosures [Abstract] | ||||||
Aggregate intrinsic value of outstanding awards | $ | $ 9,836 | |||||
Fair value of vested restricted common stock | $ | $ 3,972 | $ 2,577 | $ 3,097 | |||
Vesting period of awards | 4 years | |||||
Stock-Settled Appreciation Rights [Member] | ||||||
Shares or Units and Rights [Roll Forward] | ||||||
Outstanding, beginning balance (in shares) | 100,875 | 100,875 | 129,975 | |||
Granted (in shares) | 0 | 0 | 0 | |||
Restrictions lapsed or exercised (in shares) | (43,875) | [1] | 0 | (29,100) | [1] | |
Forfeited or expired (in shares) | 0 | 0 | 0 | |||
Outstanding, ending balance (in shares) | 57,000 | 100,875 | 100,875 | |||
Exercisable, ending balance (in shares) | 57,000 | 74,875 | 48,875 | |||
Weighted-Average Award Price [Roll Forward] | ||||||
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 18.14 | $ 18.14 | $ 16.04 | |||
Granted (in dollars per share) | $ / shares | 0 | |||||
Restrictions lapsed or exercised (in dollars per share) | $ / shares | [1] | 18.14 | 8.74 | |||
Outstanding, ending balance (in dollars per share) | $ / shares | 18.14 | 18.14 | 18.14 | |||
Exercisable, ending balance (in dollars per share) | $ / shares | $ 18.14 | $ 18.14 | $ 18.14 | |||
Additional Disclosures [Abstract] | ||||||
Intrinsic value of awards exercised | $ | $ 284 | $ 457 | ||||
Aggregate intrinsic value of vested awards | $ | 257 | |||||
Aggregate intrinsic value of outstanding awards | $ | $ 257 | |||||
Performance Units [Member] | ||||||
Additional Disclosures [Abstract] | ||||||
Vesting period of awards | 3 years | |||||
Performance period | 1 year | |||||
[1] | The total intrinsic value of stock-settled appreciation rights exercised was approximately $457,000 in 2015 and $284,000 in 2017. |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Common Stock [Member] | |||||||||||
Numerator [Abstract] | |||||||||||
Distributed earnings | $ 10,473 | $ 27,674 | $ 7,358 | ||||||||
Undistributed earnings | 8,896 | (1,869) | 17,995 | ||||||||
Basic | 19,369 | 25,805 | 25,353 | ||||||||
Class A Common earnings | 1,706 | 2,551 | 2,436 | ||||||||
Diluted | $ 21,075 | $ 28,356 | $ 27,789 | ||||||||
Denominator [Abstract] | |||||||||||
Weighted average shares outstanding - basic (in shares) | 19,381 | 19,492 | 20,430 | ||||||||
Assumed conversion of Class A Common Stock (in shares) | 1,801 | 2,014 | 2,067 | ||||||||
Dilutive options, awards and common stock equivalents (in shares) | 417 | 341 | 301 | ||||||||
Total weighted average diluted Common Stock (in shares) | 21,599 | 21,847 | 22,798 | ||||||||
Basic net earnings per share [Abstract] | |||||||||||
Common stock (in dollars per share) | $ 0.14 | $ 0.28 | $ 0.29 | $ 0.28 | $ 0.52 | $ 0.35 | $ 0.25 | $ 0.21 | $ 1 | $ 1.32 | $ 1.24 |
Diluted net earnings per share [Abstract] | |||||||||||
Common stock (in dollars per share) | 0.13 | 0.28 | 0.29 | 0.28 | 0.51 | 0.34 | 0.24 | 0.21 | $ 0.98 | $ 1.30 | $ 1.22 |
Class A Common Stock [Member] | |||||||||||
Numerator [Abstract] | |||||||||||
Distributed earnings | $ 919 | $ 2,735 | $ 702 | ||||||||
Undistributed earnings | 787 | (184) | 1,734 | ||||||||
Class A Common earnings | $ 1,706 | $ 2,551 | $ 2,436 | ||||||||
Denominator [Abstract] | |||||||||||
Weighted average shares outstanding (in shares) | 1,801 | 2,014 | 2,067 | ||||||||
Basic net earnings per share [Abstract] | |||||||||||
Common stock (in dollars per share) | 0.13 | 0.27 | 0.28 | 0.27 | 0.50 | 0.33 | 0.24 | 0.20 | $ 0.95 | $ 1.27 | $ 1.18 |
Diluted net earnings per share [Abstract] | |||||||||||
Common stock (in dollars per share) | $ 0.13 | $ 0.27 | $ 0.27 | $ 0.27 | $ 0.51 | $ 0.33 | $ 0.23 | $ 0.20 | $ 0.94 | $ 1.27 | $ 1.17 |
COMMITMENTS (Details)
COMMITMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Future minimum lease payments and rentals under operating leases [Abstract] | |||
2,018 | $ 31,643 | ||
2,019 | 28,862 | ||
2,020 | 26,264 | ||
2,021 | 21,074 | ||
2,022 | 14,428 | ||
Subsequent to 2022 | 31,203 | ||
Total minimum lease payments | 153,474 | ||
Net rental expense applicable to operating leases [Abstract] | |||
Rent expense under operating lease | $ 30,558 | $ 29,571 | $ 29,975 |
Minimum [Member] | |||
Operating Leased Assets [Line Items] | |||
Initial lease term | 5 years | ||
Renewal of lease term | 1 year | ||
Maximum [Member] | |||
Operating Leased Assets [Line Items] | |||
Initial lease term | 30 years | ||
Renewal of lease term | 25 years | ||
Property [Member] | |||
Net rental expense applicable to operating leases [Abstract] | |||
Minimum | $ 27,543 | 26,594 | 27,211 |
Additional rentals based on sales | 21 | 4 | 27 |
Sublease income | (90) | (58) | (206) |
Rent expense under operating lease | 27,474 | 26,540 | 27,032 |
Equipment [Member] | |||
Net rental expense applicable to operating leases [Abstract] | |||
Rent expense under operating lease | $ 3,084 | $ 3,031 | $ 2,943 |
SUPPLEMENTAL CASH FLOW INFORM57
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
SUPPLEMENTAL CASH FLOW INFORMATION [Abstract] | |||
Cash paid for income taxes | $ 18,763 | $ 26,574 | $ 13,509 |
Income tax refunds received | 9 | 100 | 5 |
Cash paid for interest | 2,486 | 2,540 | 2,583 |
Noncash financing and investing activity [Abstract] | |||
Fixed assets acquired (adjusted) related to capital lease and financing obligations | 1,009 | 3,890 | 3,176 |
Increase in financing obligations | $ 2,598 | $ 5,474 | $ 6,594 |
SELECTED QUARTERLY FINANCIAL 58
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Selected quarterly financial data [Abstract] | |||||||||||
Net sales | $ 214,962 | $ 207,647 | $ 196,829 | $ 200,427 | $ 220,595 | $ 211,690 | $ 194,774 | $ 194,511 | $ 819,866 | $ 821,571 | $ 804,870 |
Gross profit | 116,193 | 112,015 | 107,119 | 109,596 | 121,020 | 113,737 | 104,160 | 104,419 | 444,923 | 443,337 | 430,776 |
Credit service charges | 35 | 38 | 42 | 45 | 56 | 54 | 54 | 65 | 161 | 229 | 286 |
Income before taxes | 14,070 | 9,719 | 9,694 | 9,740 | 17,347 | 12,125 | 8,762 | 7,587 | 43,223 | 45,821 | 45,275 |
Net income | 2,921 | $ 5,983 | $ 6,185 | $ 5,986 | $ 10,947 | $ 7,336 | $ 5,374 | $ 4,669 | 21,075 | $ 28,356 | $ 27,789 |
Diluted net earnings per share [Abstract] | |||||||||||
Other income | 1,900 | ||||||||||
Insurance recoveries | 1,300 | ||||||||||
Additional provision for income tax expense | $ 5,900 | $ 10,639 | |||||||||
Common Stock [Member] | |||||||||||
Basic net earnings per share [Abstract] | |||||||||||
Common stock (in dollars per share) | $ 0.14 | $ 0.28 | $ 0.29 | $ 0.28 | $ 0.52 | $ 0.35 | $ 0.25 | $ 0.21 | $ 1 | $ 1.32 | $ 1.24 |
Diluted net earnings per share [Abstract] | |||||||||||
Common stock (in dollars per share) | 0.13 | 0.28 | 0.29 | 0.28 | 0.51 | 0.34 | 0.24 | 0.21 | 0.98 | 1.30 | 1.22 |
Class A Common Stock [Member] | |||||||||||
Basic net earnings per share [Abstract] | |||||||||||
Common stock (in dollars per share) | 0.13 | 0.27 | 0.28 | 0.27 | 0.50 | 0.33 | 0.24 | 0.20 | 0.95 | 1.27 | 1.18 |
Diluted net earnings per share [Abstract] | |||||||||||
Common stock (in dollars per share) | $ 0.13 | $ 0.27 | $ 0.27 | $ 0.27 | $ 0.51 | $ 0.33 | $ 0.23 | $ 0.20 | $ 0.94 | $ 1.27 | $ 1.17 |
SCHEDULE II - VALUATION AND Q59
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Allowance for Doubtful Accounts [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at beginning of period | $ 360 | $ 395 | $ 350 | |
Additions charged to costs and expenses | 314 | 418 | 269 | |
Deductions Describe | [1],[2] | 404 | 453 | 224 |
Balance at end of period | 270 | 360 | 395 | |
Reserve for Cancelled Sales and Allowances [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at beginning of period | 1,772 | 1,659 | 1,627 | |
Additions charged to costs and expenses | 11,601 | 11,402 | 11,466 | |
Deductions Describe | [1],[2] | 11,909 | 11,289 | 11,434 |
Balance at end of period | $ 1,464 | $ 1,772 | $ 1,659 | |
[1] | Allowance for doubtful accounts: uncollectible accounts written off, net of recoveries. | |||
[2] | Reserve for cancelled sales and allowances: impact of sales cancelled after delivery plus amount of allowance given to customers. |