Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 28, 2021 | Jun. 30, 2020 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | HAVERTY FURNITURE COMPANIES, INC | ||
Entity Central Index Key | 0000216085 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Document Transition Report | false | ||
Entity File Number | 1-14445 | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 58-0281900 | ||
Entity Address, Address Line One | 780 Johnson Ferry Road, Suite 800 | ||
Entity Address, City or Town | Atlanta | ||
Entity Address, State or Province | GA | ||
Entity Address, Postal Zip Code | 30342 | ||
City Area Code | 404 | ||
Local Phone Number | 443-2900 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 291,882,249 | ||
Common Stock [Member] | |||
Document and Entity Information [Abstract] | |||
Title of 12(b) Security | Common Stock | ||
Trading Symbol | HVT | ||
Security Exchange Name | NYSE | ||
Entity Common Stock, Shares Outstanding | 16,744,079 | ||
Class A Common Stock [Member] | |||
Document and Entity Information [Abstract] | |||
Title of 12(b) Security | Class A Common Stock | ||
Trading Symbol | HVTA | ||
Security Exchange Name | NYSE | ||
Entity Common Stock, Shares Outstanding | 1,467,580 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 200,058 | $ 75,739 |
Restricted cash equivalents | 6,713 | 6,663 |
Inventories | 89,908 | 104,817 |
Prepaid expenses | 9,580 | 7,652 |
Other current assets | 9,985 | 9,652 |
Total current assets | 316,244 | 204,523 |
Property and equipment, net | 108,366 | 156,534 |
Right-of-use lease assets | 228,749 | 175,474 |
Deferred income taxes | 15,814 | 13,198 |
Other assets | 11,199 | 10,343 |
Total assets | 680,372 | 560,072 |
Current liabilities | ||
Accounts payable | 31,429 | 27,830 |
Customer deposits | 86,183 | 30,121 |
Accrued liabilities | 52,963 | 39,654 |
Current lease liabilities | 33,466 | 29,411 |
Total current liabilities | 204,041 | 127,016 |
Noncurrent lease liabilities | 200,200 | 149,594 |
Other liabilities | 23,164 | 22,959 |
Total liabilities | 427,405 | 299,569 |
Capital Stock, par value $1 per share | ||
Preferred Stock, Authorized - 1,000 shares; Issued: None | ||
Additional paid-in capital | 96,850 | 93,208 |
Retained earnings | 304,626 | 295,999 |
Accumulated other comprehensive loss | (2,560) | (2,087) |
Treasury stock at cost - Common Stock (2020 - 12,862 shares; 2019 - 11,850 shares) and Convertible Class A Common Stock (2020 and 2019 - 522 shares) | (177,545) | (158,102) |
Total stockholders' equity | 252,967 | 260,503 |
Total liabilities and stockholders' equity | 680,372 | 560,072 |
Common Stock [Member] | ||
Capital Stock, par value $1 per share | ||
Common Stock | 29,600 | 29,431 |
Total stockholders' equity | 29,600 | 29,431 |
Common Stock [Member] | Convertible Class A Common Stock [Member] | ||
Capital Stock, par value $1 per share | ||
Common Stock | 1,996 | 2,054 |
Total stockholders' equity | $ 1,996 | $ 2,054 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Stockholders' equity | ||
Capital 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 [Member] | ||
Stockholders' equity | ||
Common Stock, shares authorized (in shares) | 50,000 | 50,000 |
Common Stock, shares issued (in shares) | 29,600 | 29,431 |
Treasury Stock, shares (in shares) | 12,862 | 11,850 |
Common Stock [Member] | Convertible Class A Common Stock [Member] | ||
Stockholders' equity | ||
Common Stock, shares authorized (in shares) | 15,000 | 15,000 |
Common Stock, shares issued (in shares) | 1,996 | 2,054 |
Treasury Stock, shares (in shares) | 522 | 522 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net sales | $ 748,252 | $ 802,291 | $ 817,733 |
Cost of goods sold | 329,258 | 367,803 | 371,191 |
Gross profit | 418,994 | 434,488 | 446,542 |
Expenses: | |||
Selling, general and administrative | 377,288 | 407,456 | 404,856 |
Other income, net | (34,899) | (405) | (145) |
Total expenses | 342,389 | 407,051 | 404,711 |
Income before interest and income taxes | 76,605 | 27,437 | 41,831 |
Interest (income) expense, net | (126) | (1,287) | 1,423 |
Income before income taxes | 76,731 | 28,724 | 40,408 |
Income tax expense | 17,583 | 6,859 | 10,101 |
Net income | 59,148 | 21,865 | 30,307 |
Other comprehensive (loss) income, net of tax: | |||
Defined benefit pension plan adjustments; net of tax expense (benefit) of $(159), $(238) and $226 | (473) | (622) | 679 |
Comprehensive income | $ 58,675 | $ 21,243 | $ 30,986 |
Common Stock [Member] | |||
Basic earnings per share: | |||
Basic earnings per share (in dollars per share) | $ 3.18 | $ 1.10 | $ 1.45 |
Diluted earnings per share: | |||
Diluted earnings per share (in dollars per share) | 3.12 | 1.08 | 1.42 |
Common Stock [Member] | Class A Common Stock [Member] | |||
Basic earnings per share: | |||
Basic earnings per share (in dollars per share) | 3.04 | 1.04 | 1.39 |
Diluted earnings per share: | |||
Diluted earnings per share (in dollars per share) | $ 3.04 | $ 1.03 | $ 1.39 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other comprehensive (loss) income, net of tax: | |||
Defined benefit pension plan adjustments, tax expense (benefit) | $ (159) | $ (238) | $ 226 |
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 Loss [Member] | Total | Cumulative Effect, Period of Adoption, Adjustment [Member]Retained Earnings [Member] |
Beginning balance at Dec. 31, 2017 | $ 28,950 | $ 2,290 | $ (111,322) | $ 88,978 | $ 287,390 | $ (2,144) | $ 133 | |
Balance (in shares) at Dec. 31, 2017 | 28,950 | 2,290 | (10,020) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Conversion of Class A Common Stock | $ 10 | |||||||
Conversion of Class A Common Stock (in shares) | 10 | |||||||
Stock compensation transactions, net | $ 119 | |||||||
Stock compensation transactions, net (in shares) | 119 | |||||||
Conversion to Common Stock | $ (10) | |||||||
Conversion to Common Stock (in shares) | (10) | |||||||
Stock option and restricted stock issuances | (1,352) | |||||||
Director's compensation plan | $ 1,029 | (590) | ||||||
Directors' compensation plan (in shares) | 88 | |||||||
Purchases | $ (18,732) | |||||||
Purchases (in shares) | (890) | |||||||
Stock-based compensation | 4,358 | |||||||
Net income | 30,307 | $ 30,307 | ||||||
Cash dividends | $ (32,595) | $ (2,869) | (35,464) | |||||
Pension liabilities adjustment, net of taxes | 679 | (679) | ||||||
Ending balance at Dec. 31, 2018 | $ 29,079 | $ 2,280 | $ (129,025) | 91,394 | 282,366 | (1,465) | 274,629 | 6,824 |
Balance (in shares) at Dec. 31, 2018 | 29,079 | 2,280 | (10,822) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Conversion of Class A Common Stock | $ 226 | |||||||
Conversion of Class A Common Stock (in shares) | 226 | |||||||
Stock compensation transactions, net | $ 126 | |||||||
Stock compensation transactions, net (in shares) | 126 | |||||||
Conversion to Common Stock | $ (226) | |||||||
Conversion to Common Stock (in shares) | (226) | |||||||
Stock option and restricted stock issuances | (1,568) | |||||||
Director's compensation plan | $ 680 | (53) | ||||||
Directors' compensation plan (in shares) | 55 | |||||||
Purchases | $ (29,757) | |||||||
Purchases (in shares) | (1,605) | |||||||
Stock-based compensation | 3,435 | |||||||
Net income | 21,865 | 21,865 | ||||||
Cash dividends | $ (13,913) | $ (1,143) | (15,056) | |||||
Pension liabilities adjustment, net of taxes | (622) | 622 | ||||||
Ending balance at Dec. 31, 2019 | $ 29,431 | $ 2,054 | $ (158,102) | 93,208 | 295,999 | (2,087) | 260,503 | $ 0 |
Balance (in shares) at Dec. 31, 2019 | 29,431 | 2,054 | (12,372) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Conversion of Class A Common Stock | $ 58 | |||||||
Conversion of Class A Common Stock (in shares) | 58 | |||||||
Stock compensation transactions, net | $ 111 | |||||||
Stock compensation transactions, net (in shares) | 111 | |||||||
Conversion to Common Stock | $ (58) | |||||||
Conversion to Common Stock (in shares) | (58) | |||||||
Stock option and restricted stock issuances | (1,063) | |||||||
Director's compensation plan | $ 265 | 330 | ||||||
Directors' compensation plan (in shares) | 21 | |||||||
Purchases | $ (19,708) | |||||||
Purchases (in shares) | (1,033) | |||||||
Stock-based compensation | 4,375 | |||||||
Net income | 59,148 | 59,148 | ||||||
Cash dividends | $ (46,564) | $ (3,957) | (50,521) | |||||
Pension liabilities adjustment, net of taxes | (473) | 473 | ||||||
Ending balance at Dec. 31, 2020 | $ 29,600 | $ 1,996 | $ (177,545) | $ 96,850 | $ 304,626 | $ (2,560) | $ 252,967 | |
Balance (in shares) at Dec. 31, 2020 | 29,600 | 1,996 | (13,384) |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - Common Stock [Member] - $ / shares shares in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Treasury stock (in shares) | 12,862 | 12,862 | 11,850 | ||
Cash dividends, common stock (in dollars per share) | $ 2 | $ 1 | $ 2.77 | $ 0.76 | $ 1.72 |
Class A Common Stock [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Treasury stock (in shares) | 522 | 522 | 522 | 522 | 522 |
Cash dividends, common stock (in dollars per share) | $ 1.90 | $ 0.95 | $ 2.62 | $ 0.72 | $ 1.63 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flows from Operating Activities | |||
Net income | $ 59,148 | $ 21,865 | $ 30,307 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 18,207 | 20,596 | 29,806 |
Net loss on asset impairment | 0 | 2,415 | 0 |
Stock-based compensation | 4,375 | 3,435 | 4,358 |
Deferred income taxes | (2,458) | (2,691) | (439) |
Net (gain) loss on sale of land, property and equipment | (34,746) | (13) | 425 |
Other | 595 | 719 | 465 |
Changes in operating assets and liabilities: | |||
Inventories | 14,909 | 1,023 | (2,403) |
Customer deposits | 56,062 | 5,656 | (3,348) |
Other assets and liabilities | (3,250) | 1,833 | 9,731 |
Accounts payable and accrued liabilities | 17,349 | 8,581 | 1,490 |
Net cash provided by operating activities | 130,191 | 63,419 | 70,392 |
Cash Flows from Investing Activities | |||
Capital expenditures | (10,927) | (16,841) | (21,473) |
Proceeds from sale of land, property and equipment | 76,285 | 2,270 | 2,446 |
Other | 0 | 0 | 55 |
Net cash used in investing activities | 65,358 | (14,571) | (18,972) |
Cash Flows from Financing Activities | |||
Proceeds from borrowings under revolving credit facilities | 43,800 | 0 | 0 |
Payments of borrowings under revolving credit facilities | (43,800) | 0 | 0 |
Net change in borrowings under revolving credit facilities | 0 | 0 | 0 |
Payments on lease obligations | 0 | 0 | (3,788) |
Dividends paid | (50,521) | (15,056) | (35,464) |
Common stock repurchased | (19,708) | (29,757) | (18,732) |
Taxes on vested restricted shares | (951) | (1,442) | (1,233) |
Net cash used in financing activities | (71,180) | (46,255) | (59,217) |
Increase (decrease) in cash, cash equivalents and restricted cash equivalents during the period | 124,369 | 2,593 | (7,797) |
Cash, Cash Equivalents and Restricted Cash Equivalents at Beginning of Year | 82,402 | 79,809 | 87,606 |
Cash and Cash Equivalents and Restricted Cash Equivalents at End of Year | 206,771 | 82,402 | 79,809 |
Supplemental Disclosures | |||
Cash paid during the period for income taxes, net of refunds | 18,169 | 9,068 | 8,409 |
Cash paid for interest | $ 365 | $ 126 | $ 2,425 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
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 120 showrooms in 16 states at December 31, 2020. All of our stores are operated using the Havertys name and we do not franchise our stores. We offer financing through third-party finance companies as well as an internal revolving charge credit plan. COVID-19: In December 2019, a novel strain of coronavirus, subsequently named COVID-19, emerged from China and spread worldwide. The World Health Organization declared COVID-19 a pandemic and a national health emergency was declared by the United States beginning on March 1, 2020. In response, many states and local governments began a series of restrictions on public gatherings, stay at home orders and advisories and quarantining of people who may have been exposed to the virus. In an effort to mitigate the spread of COVID‑19 and protect our team members, customers, and communities, Havertys closed all of its stores on March 19 and halted deliveries on March 21, with the expectation at that time of reopening stores on April 2. Affected team members were paid during this period and most corporate personnel transitioned to working remotely. On April 1, we extended our store closure for another 30 days and furloughed 3,033 team members or approximately 87% of our workforce. During this period, we paid the cost of enrolled health benefits of those furloughed. Given the dramatic shock to the economy caused by the pandemic and uncertainty of the ongoing impact, we made a permanent reduction in our workforce of approximately 1,200 team members effective April 30 and extended the furlough of approximately 730 team members until June 1. We reopened 103 of our stores on May 1 and the remaining 17 were opened by June 20 and deliveries restarted on May 5. The pandemic continues to disrupt several segments of the economy. Although our stores and other businesses are open, some business segments remain closed or are operating on a reduced scale. Our business has been very strong since reopening. Consumers not negatively impacted financially are spending on their homes. The COVID-19 pandemic is complex and continues to evolve w 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. Certain prior period amounts have been reclassified to conform to the current period presentation. Use of Estimates: The preparation of financial statements in conformity with United States of America generally accepted accounting principles (“U.S. 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 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 are amortized over the shorter of the estimated useful life or the lease term of the related asset. Amortization of buildings under lease was included in depreciation expense prior to the adoption of Accounting Standard Update (“ASU”) 2016-02 on January 1, 2019. See Leases below. 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 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 expected returns and sales tax, at the time the merchandise is delivered to the customer. The liability for sales returns, including the impact on gross profit, is estimated based on historical return levels and recognized at the transaction price. We also recognize a return asset, and corresponding adjustment to cost of sales, for our right to recover the goods returned by the customer, measured at the former carrying amount of the goods, less any expected recovery cost. At each financial reporting date, we assess our estimates of expected returns, refund liabilities, and return assets. When we receive payment from customers before delivery of merchandise, the amount received is recorded as a customer deposit. Net sales also includes amounts generated by product protection plans. We act as an agent for these sales and the service is provided by a third-party. Revenue, net of related costs, is recognized at the time the covered merchandise is delivered to the customer. We do not sell gift cards or have a loyalty program. We internally finance less than 1% of sales. We do not adjust the promised consideration for the effects of a significant financing component since receivables from internally financed sales are typically paid within one year of delivery. We expense sales commissions within SG&A at the time revenue is recognized because the amortization period would be one year or less. We do not disclose the value of unsatisfied performance obligations because delivery is made within one year of the customer purchase. 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 $71,838,000, $77,668,000 and $80,383,000 in 2020, 2019 and 2018, respectively. Leases: On January 1, 2019 we adopted Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842), using the modified retrospective method and did not restate prior periods. The adoption of ASU 2016-02 had an immaterial impact on our consolidated statement of income and our consolidated statement of cash flows for the years ended December 31, 2019 and 2018. We determine if an arrangement contains a lease in whole or in part at the inception of the contract. Right‑of-use (ROU) assets represent our right to use an underlying asset for the lease term while lease liabilities represent our obligation to make lease payments arising from the lease. All leases greater than 12 months result in the recognition of a ROU asset and a liability at the lease commencement date based on the present value of the lease payments over the lease term. As most of our leases do not provide the information required to determine the implicit rate, we use our incremental borrowing rate in determining the present value of lease payments. Our incremental borrowing rate approximates the rate we would get if borrowing on a collateralized basis based on information available at commencement date. We use the implicit rate when readily determinable. Our lease terms include all non-cancelable periods and may include options to extend (or to not terminate) the lease when it is reasonably certain that we will exercise that option. Leases that have a term of 12 months or less at the commencement date are expensed on a straight-line basis over the lease term and do not result in the recognition of an asset or a liability. Lease expense for operating leases is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components, primarily related to real estate and we account for the lease and non-lease components as a single lease component. See Note 8, "Leases," for additional information. 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 $327,000 and $181,000 at December 31, 2020 and 2019, respectively. We incurred approximately $39,862,000, $49,724,000 and $48,315,000 in advertising expense during 2020, 2019 and 2018, respectively. Interest (Income) Expense, net: Interest income is generated by our cash equivalents and restricted cash equivalents. Interest expense is comprised of amounts incurred primarily related to our lease obligations recorded on our balance sheet prior to the adoption of ASU 2016-02. The total amount of interest expense was approximately $391,000, $152,000 and $2,451,000 during 2020, 2019 and 2018, respectively. Other Income, net: Other income, net includes any gains or losses on sales of property and equipment and other income or expense items outside of core operations. On May 18, 2020, Havertys completed a sale and leaseback transaction which generated a gain of $31,600,000 and is included in other income. See Note 8, “Leases,” for additional information. The sale of former retail locations and other operating assets generated additional gains of $3,500,000 in 2020, minor 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 $7,810,000 and $7,802,000 at December 31, 2020 and 2019, 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 $7,949,000 and $7,530,000 at December 31, 2020 and 2019, respectively, and are included in other 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. We evaluate right-of-use assets at the same level and exclude operating lease liabilities when evaluating for impairment. When evaluating 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 discounted future cash flows. 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. An impairment loss of $2,415,000 for a retail store was recorded during the fourth quarter of 2019 and no impairment losses were recorded in 2020 and 2018. The economic disruption due to COVID-19 was determined to be a triggering event during the second quarter of 2020, and as a result, management assessed its long-term assets, including right-of-use assets for impairment. No impairment loss was required to be recorded. 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 $2,560,000 and $2,087,000 at December 31, 2020 and 2019, respectively. See Note 11 for the amounts reclassified out of AOCI to SG&A expense related to our supplemental executive retirement plan. Recently Issued Accounting Pronouncements: Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of ASUs to the FASB’s Accounting Standards Codification. We considered the applicability and impact of all ASUs. We assessed and determined none were either applicable or are expected to have minimal impact on our consolidated financial position or results of operations. |
Revenues and Segment Reporting
Revenues and Segment Reporting | 12 Months Ended |
Dec. 31, 2020 | |
Revenues and Segment Reporting [Abstract] | |
Revenues | Note 2, Revenues and Segment Reporting The following table presents our revenues disaggregated by each major product category and service for each of the last three years (dollars in thousands, amounts and percentages may not always add due to rounding): Year Ended December 31, 2020 2019 2018 Net Sales % of Net Sales Net Sales % of Net Sales Net Sales % of Net Sales Merchandise: Case Goods Bedroom Furniture $ 116,753 15.6 % $ 127,500 15.9 % $ 131,673 16.1 % Dining Room Furniture 79,766 10.7 88,877 11.1 92,865 11.4 Occasional 65,764 8.8 65,565 8.2 72,193 8.8 262,283 35.1 281,942 35.1 296,731 36.3 Upholstery 315,714 42.2 321,024 40.0 326,114 39.9 Mattresses 72,855 9.7 90,583 11.3 85,055 10.4 Accessories and Other (1) 97,400 13.0 108,742 13.6 109,833 13.4 $ 748,252 100.0 % $ 802,291 100.0 % $ 817,733 100.0 % (1) Includes delivery charges and product protection. Estimated refunds for returns and allowances are recorded based on estimated margin using our historical return patterns. We record estimated refunds for sales returns on a gross basis and the carrying value of the return asset is presented separately from inventory. Estimated return inventory of $853,000 and $765,000 at December 31, 2020 and 2019, respectively, is included in the line item “Other current assets” and the estimated refund liability of $2,378,000 and $2,023,000 at December 31, 2020 and 2019, respectively, is included in the line item “Accrued liabilities” on the Consolidated Balance Sheets. We record customer deposits when payments are received in advance of the delivery of merchandise, which totaled $86,183,000 and $30,121,000 at December 31, 2020 and December 31, 2019, respectively. Of the customer deposit liabilities at December 31, 2019, approximately $113,000 has not been recognized through net sales in the twelve months ended December 31, 2020. We typically offer our customers an opportunity for us to deliver their purchases and most choose this service. Delivery fees of approximately $30,824,000, $34,580,000 and $34,405,000 were charged to customers in 2020, 2019 and 2018, respectively, and are included in net sales. The costs associated with deliveries are included in selling, general and administrative expenses and were approximately $35,885,000, $39,796,000 and $40,236,000 in 2020, 2019 and 2018, respectively. |
Segment Reporting | We operate within a single |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2020 | |
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 $22,394,000 and $21,758,000 at December 31, 2020 and 2019, 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 $636,000 in 2020, $1,811,000 in 2019 and $770,000 in 2018. During 2020, 2019 and 2018, there were liquidations of LIFO inventory layers. The effect of the liquidations (included in the preceding LIFO impact amounts) decreased cost of goods sold. The effect of the liquidations during 2020 decreased cost of goods sold by approximately $562,000 or $0.03 per diluted share of common stock. 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, 2020 | |
Property and Equipment [Abstract] | |
Property and Equipment | Note 4, Property and Equipment: Property and equipment are summarized as follows: (In thousands) 2020 2019 Land and improvements $ 32,903 $ 44,044 Buildings and improvements 191,272 243,386 Furniture and fixtures 83,532 83,801 Equipment 49,734 52,687 Construction in progress 1,993 497 359,434 424,415 Less accumulated depreciation (251,068 ) (267,881 ) Property and equipment, net $ 108,366 $ 156,534 |
Credit Arrangement
Credit Arrangement | 12 Months Ended |
Dec. 31, 2020 | |
Credit Agreement [Abstract] | |
Credit Arrangement | Note 5, Credit Arrangement: On May 15, 2020 we entered into the Third Amendment to Amended and Restated Credit Agreement (as amended, the “Credit Agreement”) with a bank to permit certain sale-leaseback transactions as more fully described in Note 8. Our first borrowings under the facility, since its origination in 2008, was in March 2020 and the $43.8 million borrowed was repaid June 2020. The Credit Agreement is a $60.0 million revolving credit facility secured by our inventory, accounts receivable, cash, and certain other personal property, and matures on September 27, 2024. Availability fluctuates based on a borrowing base calculation reduced by outstanding letters of credit. Amounts available to borrow are based on the lesser of the borrowing base or the $60.0 million-line amount. The credit facility contains covenants that, among other things, limit our ability to incur certain types of debt or liens, enter into mergers and consolidations or use proceeds of borrowing for other than permitted uses. The covenants also limit our ability to pay dividends if unused availability is less than $12.5 million. We borrowed $43.8 million under the Credit Agreement in March 2020 and repaid the borrowings in June 2020. The interest rates on the outstanding balance were based on the three-month Euro dollar LIBOR rate plus 1.25% and on a weighted average basis was approximately 2.37%. Total interest paid under the Credit Agreement was $0.4 million for the year ended December 31, 2020. The borrowing base was $15.3 million at December 31, 2020 and there were no outstanding letters of credit, accordingly, the net availability was $15.3 million. |
Accrued Liabilities and Other L
Accrued Liabilities and Other Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
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) 2020 2019 Accrued liabilities: Employee compensation, related taxes and benefits $ 22,070 $ 12,405 Taxes other than income and withholding 8,386 8,483 Self-insurance reserves 5,296 5,346 Other 17,211 13,420 $ 52,963 $ 39,654 Other liabilities: Self-insurance reserves 2,514 2,456 Other 20,650 20,503 $ 23,164 $ 22,959 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes [Abstract] | |
Income Taxes | Note 7, Income Taxes: The provision for income taxes for the years ended December 31 consist of the following: (In thousands) 2020 2019 2018 Current Federal $ 16,831 $ 7,701 $ 8,422 State 3,210 1,849 2,118 20,041 9,550 10,540 Deferred Federal (1,217 ) (2,217 ) (232 ) State (1,241 ) (474 ) (207 ) (2,458 ) (2,691 ) (439 ) Total income tax expense $ 17,583 $ 6,859 $ 10,101 CARES Act On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") was signed into law. The CARES Act provides numerous tax provisions and other stimulus measures, including temporary suspension of certain payment requirements for the employer-paid portion of social security taxes, the creation of certain refundable employee retention credits, and technical corrections from prior tax legislation for tax depreciation of certain qualified improvement property. We elected to defer the employer-paid portion of social security taxes beginning with pay dates on and after April 1, 2020 and through December 31, 2020 and have deferred $1,607,000 which is included in accrued liabilities. During 2020, we recorded $2,301,000 for refundable employee retention credits reducing selling, general and administrative expenses. We also benefited from the technical correction for qualified leasehold improvements eligible for 100% tax bonus depreciation which reduced our 2019 income tax liability by approximately $2,053,000 and we adjusted our deferred income taxes and income taxes receivable accordingly. 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) 2020 2019 2018 Statutory rates applied to income before income taxes $ 16,164 $ 6,032 $ 8,486 State income taxes, net of Federal tax benefit 2,057 1,149 1,616 Net permanent differences 520 228 220 Other 48 (128 ) (218 ) Leases — (418 ) — State tax credits (1,206 ) (4 ) (3 ) $ 17,583 $ 6,859 $ 10,101 The 2020 effective tax rate differs from the federal statutory rate primarily due to state income taxes partially offset by benefits associated with state tax credits. We completed the computations and recorded in the fourth quarter of 2020, state quality jobs credits of $1,527,000 generated in 2018, 2019, and 2020. 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) 2020 2019 Deferred tax assets: Property and equipment $ 8,868 $ 10,517 Lease Liabilities 58,417 44,751 Accrued liabilities 9,885 9,386 Retirement benefits 662 504 State tax credits 943 21 Other 660 574 Total deferred tax assets 79,435 65,753 Deferred tax liabilities: 7,135 Inventory related 7,135 7,912 Right-of-use lease assets 56,032 44,152 Other 454 491 Total deferred tax liabilities 63,621 52,555 Net deferred tax assets $ 15,814 $ 13,198 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 2016. Uncertain Tax Positions Interest and penalties associated with uncertain tax positions, if any, are recognized as components of income tax expense. No amounts for uncertain tax positions were recorded for the years currently open under statute of limitations. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | Note 8 – Leases We have operating leases for retail stores, offices, warehouses, and certain equipment. Our leases have remaining lease terms of between and , some of which include options to extend the leases for up to . We determine if an arrangement is or contains a lease at lease inception. In April 2020, the Financial Accounting Standards Board issued guidance allowing entities to make a policy election to account for lease concessions related to the COVID-19 pandemic as though enforceable rights and obligations for those concessions existed. The election applies to any lessor-provided lease concession related to the impact of the COVID-19 pandemic, provided the concession does not result in a substantial increase in the rights of the lessor or in the obligations of the lessee. During the year ended December 31, 2020, we received concessions from certain landlords in the form of rent deferrals of approximately $4.5 million and abatements of approximately $1.8 million. We have elected to account for these rent concessions as though enforceable rights and obligations for those concessions existed in the original lease agreements and have recorded a non-interest bearing payable for the deferred rent payments. On May 18, 2020, we completed a sale and leaseback transaction of three facilities which we initiated in April 2020 as part of our business continuity plan. The Coppell, TX location has approximately 394,000 distribution square feet used to serve our western stores, 44,000 retail square feet, and 20,000 square feet of office space used for a call center and general management purposes. The Lakeland, FL property is a distribution center with approximately 335,000 square feet and the Colonial Heights propert is a distribution facility with 129,000 square feet. The facilities were leased back to Havertys via 15-year operating lease agreements with renewal options. The total sales price for these properties, excluding costs and taxes, was $70.0 million and their net book value was approximately $37.9 million. The gain of approximately $31.6 million was recognized in the second quarter of 2020 and is included in other income. As of December 31, 2020, we have entered into one lease for an additional retail location which has not yet commenced and is under construction. The table below presents the operating lease assets and liabilities recognized on the consolidated balance sheets as of December 31: (in thousands) 2020 2019 Operating Lease Assets: Right-of use lease assets $ 228,749 $ 175,474 Operating Lease Liabilities: Current lease liabilities $ 33,466 $ 29,411 Non-current lease liabilities 200,200 149,594 Total operating lease liabilities $ 233,666 $ 179,005 Our leases generally do not provide an implicit rate, and therefore we use our incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate we would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of the lease. The weighted-average remaining lease term and weighted-average discount rate for operating leases as of December 31 are: 2020 2019 Weighted-average remaining lease term 8.8 years 7.2 years Weighted-average discount rate 6.07% 6.61% The table below reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancelable operating leases with terms of more than one year to the total lease liabilities recognized on the consolidated balance sheet as of December 31, 2020: (in thousands) Operating Leases 2021 $ 46,398 2022 41,993 2023 35,423 2024 31,467 2025 26,209 Thereafter 123,753 Total undiscounted future minimum lease payments 305,243 Less: difference between undiscounted lease payments and discounted operating lease liabilities (71,577 ) Total operating lease liabilities $ 233,666 Certain of our lease agreements for retail stores include variable lease payments, generally based on sales volume. The variable portion of payments are not included in the initial measurement of the right‑of-use asset or lease liability due to uncertainty of the payment amount and are recorded as lease expense in the period incurred. Certain of our equipment lease agreements include variable lease costs, generally based on usage of the underlying asset (mileage, fuel, etc.). The variable portion of payments are not included in the initial measurement of the right-of-use asset or lease liability due to uncertainty of the payment amount and are recorded as lease expense in the period incurred. Components of lease expense which are included in selling, general, and administrative expenses within our consolidated statements of comprehensive income were as follows: Year ended December 31, (in thousands) 2020 2019 Operating lease cost $ 44,854 $ 41,681 Short-term lease cost — 90 Variable lease cost 5,827 5,653 Total lease expense $ 50,681 $ 47,424 Supplemental cash flow information related to leases is as follows: Year ended December 31, (In thousands) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 39,341 $ 40,403 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 89,082 $ 31,888 For leases accounted for under ASC 840, 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 which are included in selling, general, and administrative expenses within our consolidated statements of comprehensive income were as follows: (In thousands) 2018 Property Minimum $ 27,124 Additional rentals based on sales 22 Sublease income (130 ) 27,016 Equipment 3,029 $ 30,045 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
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 $2.00 and $1.00 for Common Stock and $1.90 and $0.95 for Class A Common Stock was paid in the fourth quarter of 2020 and the fourth quarter of 2018, respectively. Total dividends paid on Common Stock were $46,564,000, $13,913,000 and $32,595,000 in 2020, 2019 and 2018, respectively. Total dividends paid on Class A Common Stock were $3,957,000, $1,143,000 and $2,869,000 in 2020, 2019 and 2018, respectively. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
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 have been accrued after that date. The following table summarizes information about our SERP. (In thousands) 2020 2019 Change in benefit obligation: Benefit obligation at beginning of the year $ 8,299 $ 7,394 Interest cost 266 315 Actuarial losses 791 906 Benefits paid (355 ) (316 ) Benefit obligation at end of year 9,001 8,299 Change in plan assets: Employer contribution 355 316 Benefits paid (355 ) (316 ) Fair value of plan assets at end of year — — Funded status of the plan – (underfunded) $ (9,001 ) $ (8,299 ) Accumulated benefit obligations $ 9,001 $ 8,299 Amounts recognized in the consolidated balance sheets consist of: (In thousands) 2020 2019 Current liabilities $ (438 ) $ (406 ) Noncurrent liabilities (8,563 ) (7,893 ) $ (9,001 ) $ (8,299 ) The net actuarial loss recognized in accumulated other comprehensive income (loss) before the effect of income taxes was $2,554,000 in 2020 and $1,923,000 in 2019. Net pension cost included the following components: SERP (In thousands) 2020 2019 2018 Interest cost on projected benefit obligation $ 266 $ 315 $ 290 Amortization of actuarial loss 159 46 136 Net pension costs $ 425 $ 361 $ 426 The estimated amount that will be amortized from accumulated other comprehensive loss into net periodic cost in 2021 is approximately $260,000. 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 2020 2019 2018 Discount rate 3.29% 4.36% 3.68% Rate of compensation increase n/a n/a n/a Assumptions used to determine benefit obligations at December 31 for the SERP are as follows: 2020 2019 Discount rate 2.41% 3.29% 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, 2020. (In thousands) 2021 2022 2023 2024 2025 _ Benefit Payments $ 438 $ 437 $ 427 433 $ 478 $ 2,668 Other Plans We have an employee savings/retirement (401(k)) plan to which substantially all our employees may contribute. We match employee contributions 100% up to 4% of a participant’s compensation, with a maximum match of $11,200 per participant. We suspended the matching contribution for six weeks during 2020 as part of our business continuity plan and in 2018 made an additional discretionary contribution. We expensed employer contributions of approximately $4,069,000, $5,173,000 and $4,770,000 in 2020, 2019 and 2018, respectively. We offer participation in a self-directed, non-qualified deferred compensation plan to certain executives and employees. The plan allows a participant to defer a portion of their income. We may also make annual contributions based on the participant's annual deferral, and our contributions were approximately $43,000, $61,000, and $55,000 in 2020, 2019, and 2018, respectively. The investments for the plan (and its predecessor plan) are held in rabbi trusts and are used to meet the obligations of the plans and precludes us from using such assets for operating purposes. The plans' assets totaled approximately $7,949,000 and $7,530,000 at December 31, 2020 and 2019, respectively, and are included in other assets. The related liability under the plans of approximately $8,063,000 and $7,540,000 at December 31, 2020 and 2019, respectively, is included in other liabilities. We offer no post-retirement benefits other than the plans discussed above and no significant post-employment benefits. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | Note 11, Accumulated Other Comprehensive Loss: The following summarizes the changes in the balance and the reclassifications out of accumulated other comprehensive loss on our Consolidated Balance Sheets to the Consolidated Statements of Comprehensive Income: Year Ended December 31, (In thousands) 2020 2019 2018 Beginning balance $ (2,087 ) $ (1,465 ) $ (2,144 ) Other comprehensive income (loss) Defined benefit pension plan: Net gain (loss) during year (791 ) (906 ) 769 Amortization of net loss (1) 159 46 136 (632 ) (860 ) 905 Tax expense (benefit) (159 ) (238 ) 226 Total other comprehensive income (loss) (473 ) (622 ) 679 Ending balance $ (2,560 ) $ (2,087 ) $ (1,465 ) (1) These amounts are included in the computation of net periodic pension costs and were reclassified to selling, general and administrative costs. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2020 | |
Stock Based Compensation Plan [Abstract] | |
Stock Based Compensation Plan | Note 12, Stock-Based Compensation Plans: We have issued and outstanding awards 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. Grants of stock-settled appreciation rights, restricted units, and performance units have been made to certain officers and key employees. All equity awards are settled in shares of Common Stock. As of December 31, 2020, approximately 307,000 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, 2020, 2019, and 2018: Service-Based Restricted Stock Awards Performance-Based Restricted Stock Awards Stock-Settled Appreciation Rights Shares or Units (#) Weighted-Average Award Price($) Shares or Units(#) Weighted-Average Award Price ($) Rights(#) Weighted-Average Award Price($) Outstanding at December 31, 2017 254,490 21.88 179,774 21.42 57,000 18.14 Granted 141,722 22.73 103,940 22.95 — — Awards vested or rights exercised (132,872 ) 22.45 (48,661 ) 24.10 — — Forfeited (14,198 ) 21.94 (25,299 ) 21.40 — — Outstanding at December 31, 2018 249,142 22.05 209,754 21.56 57,000 18.14 Granted 137,768 20.24 113,522 20.29 — — Awards vested or rights exercised (133,364 ) 22.27 (57,351 ) 18.93 (49,500 ) 18.14 Forfeited (18,736 ) 21.25 (51,116 ) 22.45 — — Outstanding at December 31, 2019 234,810 20.93 214,809 21.38 7,500 18.14 Granted 145,375 20.42 120,727 20.42 — — Awards vested or rights exercised (130,434 ) 20.69 (44,875 ) 22.12 (7,500 ) 18.14 Forfeited (10,470 ) 20.41 (76,766 ) 20.29 — — Outstanding at December 31, 2020 239,281 20.77 213,895 21.08 — — Restricted units expected to vest 239,281 20.77 289,510 20.90 — — Exercisable at December 31, 2019 — — — — 7,500 18.14 Exercisable at December 31, 2018 — — — — 57,000 18.14 The total fair value of service-based restricted stock awards that vested in 2020, 2019 and 2018 was approximately $1,798,000, $2,491,000 and $2,594,000, respectively. The aggregate intrinsic value of outstanding restricted stock awards was $6,621,000 at December 31, 2020. The restrictions on the service-based awards generally lapse or vest annually, primarily over three-year or four-year periods. The total fair value of performance-based restricted stock awards that vested in 2020, 2019 and 2018 was approximately $755,000, $1,389,000 and $988,000, respectively. The aggregate intrinsic value of outstanding performance awards at December 31, 2020 expected to vest was $5,918,000. The performance awards are based on one-year performance periods but cliff vest in approximately three years from grant date. The fair value for stock-settled appreciation rights were estimated at the date of grant using a Black‑Scholes pricing model. There were no stock-settled appreciation rights outstanding at December 31, 2020. The total intrinsic value of stock-settled appreciation rights exercised was approximately $18,000 in 2020 and $107,000 in 2019. 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 $4,375,000, $3,435,000 and $4,358,000 in 2020, 2019 and 2018, respectively. Forfeitures are recognized as they occur. The tax expense recognized related to all awards was approximately $293,000, $98,000 and $143,000 in 2020, 2019 and 2018, respectively. As of December 31, 2020, the total compensation cost related to unvested equity awards was approximately $6,165,000 and is expected to be recognized over a weighted-average period of two years. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
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: 2020 2019 2018 Common: Distributed earnings $ 46,564 $ 13,913 $ 32,595 Undistributed earnings 7,954 6,284 (4,741 ) Basic 54,518 20,197 27,854 Class A Common earnings 4,630 1,668 2,453 Diluted $ 59,148 $ 21,865 $ 30,307 Class A Common: Distributed earnings $ 3,957 $ 1,143 $ 2,869 Undistributed earnings 673 525 (416 ) $ 4,630 $ 1,668 $ 2,453 Denominator: 2020 2019 2018 Common: Weighted average shares outstanding - basic 17,128 18,360 19,182 Assumed conversion of Class A Common Stock 1,522 1,611 1,765 Dilutive options, awards and common stock equivalents 282 290 348 Total weighted average diluted Common Stock 18,932 20,261 21,295 Class A Common: Weighted average shares outstanding 1,522 1,611 1,765 Basic net earnings per share Common Stock $ 3.18 $ 1.10 $ 1.45 Class A Common Stock $ 3.04 $ 1.04 $ 1.39 Diluted net earnings per share Common Stock $ 3.12 $ 1.08 $ 1.42 Class A Common Stock $ 3.04 $ 1.03 $ 1.39 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Selected Quarterly Financial Data (Unaudited) [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Note 14, Selected Quarterly Financial Data (Unaudited): The following is a summary of the unaudited quarterly results of operations for the years ended December 31, 2020 and 2019 (in thousands, except per share data): 2020 Quarter Ended March 31 June 30 September 30 December 31 Net sales $ 179,432 $ 109,968 $ 217,513 $ 241,339 Gross profit 99,553 59,646 122,177 137,619 Income before taxes 2,300 18,625 24,532 31,274 Net income 1,819 13,640 18,261 25,428 Basic net earnings per share: Common 0.10 0.73 0.98 1.40 Class A Common 0.09 0.69 0.94 1.33 Diluted net earnings per share: Common 0.09 0.72 0.97 1.37 Class A Common 0.09 0.69 0.93 1.35 During the quarter ended December 31, 2020, we recognized the benefit of state income tax credits that reduced income tax expense by $1.2 million. 2019 Quarter Ended March 31 June 30 September 30 December 31 Net sales $ 187,242 $ 191,893 $ 209,320 $ 213,837 Gross profit 103,083 103,557 112,019 115,830 Income before taxes 4,725 8,237 8,169 7,592 Net income 3,621 6,046 6,097 6,100 Basic net earnings per share: Common 0.18 0.30 0.31 0.32 Class A Common 0.17 0.28 0.30 0.30 Diluted net earnings per share: Common 0.17 0.29 0.31 0.31 Class A Common 0.17 0.27 0.30 0.30 During the quarter ended December 31, 2019, an impairment loss of $2.4 million related to a retail store was recorded. We recognized a deferred tax benefit related to leases that reduced income tax expense by $0.4 million in the quarter ended December 31, 2019. 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, 2020 | |
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, 2020: Refund on estimated returns and allowances $ 2,023 $ 17,094 $ 16,739 $ 2,378 Year ended December 31, 2019: Refund on estimated returns and allowances $ 1,950 $ 18,748 $ 18,675 $ 2,023 Year ended December 31, 2018: Reserve for cancelled sales and allowances $ 2,072 $ 19,252 $ 19,374 $ 1,950 (1) Reserve for cancelled sales and allowances: impact of sales cancelled after delivery plus amount of allowance given to customers. (2) Refund on estimated returns and allowances: impact of sales cancelled after delivery plus amount of allowance given to customers. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Description of Business and Summary of Significant Accounting Policies [Abstract] | |
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. |
Reclassifications | Certain prior period amounts have been reclassified to conform to the current period presentation. |
Use of Estimates | Use of Estimates: The preparation of financial statements in conformity with United States of America generally accepted accounting principles (“U.S. 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 Equivalents | Restricted 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 are amortized over the shorter of the estimated useful life or the lease term of the related asset. Amortization of buildings under lease was included in depreciation expense prior to the adoption of Accounting Standard Update (“ASU”) 2016-02 on January 1, 2019. See Leases below. 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 |
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 expected returns and sales tax, at the time the merchandise is delivered to the customer. The liability for sales returns, including the impact on gross profit, is estimated based on historical return levels and recognized at the transaction price. We also recognize a return asset, and corresponding adjustment to cost of sales, for our right to recover the goods returned by the customer, measured at the former carrying amount of the goods, less any expected recovery cost. At each financial reporting date, we assess our estimates of expected returns, refund liabilities, and return assets. When we receive payment from customers before delivery of merchandise, the amount received is recorded as a customer deposit. Net sales also includes amounts generated by product protection plans. We act as an agent for these sales and the service is provided by a third-party. Revenue, net of related costs, is recognized at the time the covered merchandise is delivered to the customer. We do not sell gift cards or have a loyalty program. We internally finance less than 1% of sales. We do not adjust the promised consideration for the effects of a significant financing component since receivables from internally financed sales are typically paid within one year of delivery. We expense sales commissions within SG&A at the time revenue is recognized because the amortization period would be one year or less. We do not disclose the value of unsatisfied performance obligations because delivery is made within one year of the customer purchase. |
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 $71,838,000, $77,668,000 and $80,383,000 in 2020, 2019 and 2018, respectively. |
Leases | Leases: On January 1, 2019 we adopted Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842), using the modified retrospective method and did not restate prior periods. The adoption of ASU 2016-02 had an immaterial impact on our consolidated statement of income and our consolidated statement of cash flows for the years ended December 31, 2019 and 2018. We determine if an arrangement contains a lease in whole or in part at the inception of the contract. Right‑of-use (ROU) assets represent our right to use an underlying asset for the lease term while lease liabilities represent our obligation to make lease payments arising from the lease. All leases greater than 12 months result in the recognition of a ROU asset and a liability at the lease commencement date based on the present value of the lease payments over the lease term. As most of our leases do not provide the information required to determine the implicit rate, we use our incremental borrowing rate in determining the present value of lease payments. Our incremental borrowing rate approximates the rate we would get if borrowing on a collateralized basis based on information available at commencement date. We use the implicit rate when readily determinable. Our lease terms include all non-cancelable periods and may include options to extend (or to not terminate) the lease when it is reasonably certain that we will exercise that option. Leases that have a term of 12 months or less at the commencement date are expensed on a straight-line basis over the lease term and do not result in the recognition of an asset or a liability. Lease expense for operating leases is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components, primarily related to real estate and we account for the lease and non-lease components as a single lease component. See Note 8, "Leases," for additional information. |
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 $327,000 and $181,000 at December 31, 2020 and 2019, respectively. We incurred approximately $39,862,000, $49,724,000 and $48,315,000 in advertising expense during 2020, 2019 and 2018, respectively. |
Interest (Income) Expense, net | Interest (Income) Expense, net: Interest income is generated by our cash equivalents and restricted cash equivalents. Interest expense is comprised of amounts incurred primarily related to our lease obligations recorded on our balance sheet prior to the adoption of ASU 2016-02. The total amount of interest expense was approximately $391,000, $152,000 and $2,451,000 during 2020, 2019 and 2018, respectively. |
Other Income, net | Other Income, net: Other income, net includes any gains or losses on sales of property and equipment and other income or expense items outside of core operations. On May 18, 2020, Havertys completed a sale and leaseback transaction which generated a gain of $31,600,000 and is included in other income. See Note 8, “Leases,” for additional information. The sale of former retail locations and other operating assets generated additional gains of $3,500,000 in 2020, minor |
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 $7,810,000 and $7,802,000 at December 31, 2020 and 2019, 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 $7,949,000 and $7,530,000 at December 31, 2020 and 2019, respectively, and are included in other assets. |
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. We evaluate right-of-use assets at the same level and exclude operating lease liabilities when evaluating for impairment. When evaluating 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 discounted future cash flows. 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. An impairment loss of $2,415,000 for a retail store was recorded during the fourth quarter of 2019 and no impairment losses were recorded in 2020 and 2018. The economic disruption due to COVID-19 was determined to be a triggering event during the second quarter of 2020, and as a result, management assessed its long-term assets, including right-of-use assets for impairment. No impairment loss was required to be recorded. |
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 $2,560,000 and $2,087,000 at December 31, 2020 and 2019, respectively. See Note 11 for the amounts reclassified out of AOCI to SG&A expense related to our supplemental executive retirement plan. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements: Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of ASUs to the FASB’s Accounting Standards Codification. We considered the applicability and impact of all ASUs. We assessed and determined none were either applicable or are expected to have minimal impact on our consolidated financial position or results of operations. |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 |
Revenues and Segment Reporting
Revenues and Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenues and Segment Reporting [Abstract] | |
Revenues Disaggregated by Major Product Category and Service | The following table presents our revenues disaggregated by each major product category and service for each of the last three years (dollars in thousands, amounts and percentages may not always add due to rounding): Year Ended December 31, 2020 2019 2018 Net Sales % of Net Sales Net Sales % of Net Sales Net Sales % of Net Sales Merchandise: Case Goods Bedroom Furniture $ 116,753 15.6 % $ 127,500 15.9 % $ 131,673 16.1 % Dining Room Furniture 79,766 10.7 88,877 11.1 92,865 11.4 Occasional 65,764 8.8 65,565 8.2 72,193 8.8 262,283 35.1 281,942 35.1 296,731 36.3 Upholstery 315,714 42.2 321,024 40.0 326,114 39.9 Mattresses 72,855 9.7 90,583 11.3 85,055 10.4 Accessories and Other (1) 97,400 13.0 108,742 13.6 109,833 13.4 $ 748,252 100.0 % $ 802,291 100.0 % $ 817,733 100.0 % (1) Includes delivery charges and product protection. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property and Equipment [Abstract] | |
Property and Equipment | Property and equipment are summarized as follows: (In thousands) 2020 2019 Land and improvements $ 32,903 $ 44,044 Buildings and improvements 191,272 243,386 Furniture and fixtures 83,532 83,801 Equipment 49,734 52,687 Construction in progress 1,993 497 359,434 424,415 Less accumulated depreciation (251,068 ) (267,881 ) Property and equipment, net $ 108,366 $ 156,534 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Accrued Liabilities and Other Liabilities | Accrued liabilities and other liabilities consist of the following: (In thousands) 2020 2019 Accrued liabilities: Employee compensation, related taxes and benefits $ 22,070 $ 12,405 Taxes other than income and withholding 8,386 8,483 Self-insurance reserves 5,296 5,346 Other 17,211 13,420 $ 52,963 $ 39,654 Other liabilities: Self-insurance reserves 2,514 2,456 Other 20,650 20,503 $ 23,164 $ 22,959 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes [Abstract] | |
Provision for Income Taxes | The provision for income taxes for the years ended December 31 consist of the following: (In thousands) 2020 2019 2018 Current Federal $ 16,831 $ 7,701 $ 8,422 State 3,210 1,849 2,118 20,041 9,550 10,540 Deferred Federal (1,217 ) (2,217 ) (232 ) State (1,241 ) (474 ) (207 ) (2,458 ) (2,691 ) (439 ) Total income tax expense $ 17,583 $ 6,859 $ 10,101 |
Statutory to Effective Income Tax 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) 2020 2019 2018 Statutory rates applied to income before income taxes $ 16,164 $ 6,032 $ 8,486 State income taxes, net of Federal tax benefit 2,057 1,149 1,616 Net permanent differences 520 228 220 Other 48 (128 ) (218 ) Leases — (418 ) — State tax credits (1,206 ) (4 ) (3 ) $ 17,583 $ 6,859 $ 10,101 |
Deferred Tax Assets and Liabilities | (In thousands) 2020 2019 Deferred tax assets: Property and equipment $ 8,868 $ 10,517 Lease Liabilities 58,417 44,751 Accrued liabilities 9,885 9,386 Retirement benefits 662 504 State tax credits 943 21 Other 660 574 Total deferred tax assets 79,435 65,753 Deferred tax liabilities: 7,135 Inventory related 7,135 7,912 Right-of-use lease assets 56,032 44,152 Other 454 491 Total deferred tax liabilities 63,621 52,555 Net deferred tax assets $ 15,814 $ 13,198 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Operating Lease Assets and Liabilities Recognized | The table below presents the operating lease assets and liabilities recognized on the consolidated balance sheets as of December 31: (in thousands) 2020 2019 Operating Lease Assets: Right-of use lease assets $ 228,749 $ 175,474 Operating Lease Liabilities: Current lease liabilities $ 33,466 $ 29,411 Non-current lease liabilities 200,200 149,594 Total operating lease liabilities $ 233,666 $ 179,005 |
Weighted Average Remaining Lease Term and Discount Rate for Operating Leases | The weighted-average remaining lease term and weighted-average discount rate for operating leases as of December 31 are: 2020 2019 Weighted-average remaining lease term 8.8 years 7.2 years Weighted-average discount rate 6.07% 6.61% |
Undiscounted Future Minimum Lease Payments | The table below reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancelable operating leases with terms of more than one year to the total lease liabilities recognized on the consolidated balance sheet as of December 31, 2020: (in thousands) Operating Leases 2021 $ 46,398 2022 41,993 2023 35,423 2024 31,467 2025 26,209 Thereafter 123,753 Total undiscounted future minimum lease payments 305,243 Less: difference between undiscounted lease payments and discounted operating lease liabilities (71,577 ) Total operating lease liabilities $ 233,666 |
Components of Lease Expense | Components of lease expense which are included in selling, general, and administrative expenses within our consolidated statements of comprehensive income were as follows: Year ended December 31, (in thousands) 2020 2019 Operating lease cost $ 44,854 $ 41,681 Short-term lease cost — 90 Variable lease cost 5,827 5,653 Total lease expense $ 50,681 $ 47,424 |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases is as follows: Year ended December 31, (In thousands) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 39,341 $ 40,403 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 89,082 $ 31,888 |
Net Rental Expense Applicable to Operating Leases | (In thousands) 2018 Property Minimum $ 27,124 Additional rentals based on sales 22 Sublease income (130 ) 27,016 Equipment 3,029 $ 30,045 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Benefit Plans [Abstract] | |
Change in Benefit Obligation, Plan Assets and Funded Status | The following table summarizes information about our SERP. (In thousands) 2020 2019 Change in benefit obligation: Benefit obligation at beginning of the year $ 8,299 $ 7,394 Interest cost 266 315 Actuarial losses 791 906 Benefits paid (355 ) (316 ) Benefit obligation at end of year 9,001 8,299 Change in plan assets: Employer contribution 355 316 Benefits paid (355 ) (316 ) Fair value of plan assets at end of year — — Funded status of the plan – (underfunded) $ (9,001 ) $ (8,299 ) Accumulated benefit obligations $ 9,001 $ 8,299 |
Amounts Recognized in Consolidated Balance Sheets | Amounts recognized in the consolidated balance sheets consist of: (In thousands) 2020 2019 Current liabilities $ (438 ) $ (406 ) Noncurrent liabilities (8,563 ) (7,893 ) $ (9,001 ) $ (8,299 ) |
Net Pension Costs | Net pension cost included the following components: SERP (In thousands) 2020 2019 2018 Interest cost on projected benefit obligation $ 266 $ 315 $ 290 Amortization of actuarial loss 159 46 136 Net pension costs $ 425 $ 361 $ 426 |
Assumptions | SERP 2020 2019 2018 Discount rate 3.29% 4.36% 3.68% Rate of compensation increase n/a n/a n/a Assumptions used to determine benefit obligations at December 31 for the SERP are as follows: 2020 2019 Discount rate 2.41% 3.29% Rate of compensation increase n/a n/a |
Expected Future Benefit Payments | 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, 2020. (In thousands) 2021 2022 2023 2024 2025 _ Benefit Payments $ 438 $ 437 $ 427 433 $ 478 $ 2,668 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | The following summarizes the changes in the balance and the reclassifications out of accumulated other comprehensive loss on our Consolidated Balance Sheets to the Consolidated Statements of Comprehensive Income: Year Ended December 31, (In thousands) 2020 2019 2018 Beginning balance $ (2,087 ) $ (1,465 ) $ (2,144 ) Other comprehensive income (loss) Defined benefit pension plan: Net gain (loss) during year (791 ) (906 ) 769 Amortization of net loss (1) 159 46 136 (632 ) (860 ) 905 Tax expense (benefit) (159 ) (238 ) 226 Total other comprehensive income (loss) (473 ) (622 ) 679 Ending balance $ (2,560 ) $ (2,087 ) $ (1,465 ) (1) These amounts are included in the computation of net periodic pension costs and were reclassified to selling, general and administrative costs. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stock Based Compensation Plan [Abstract] | |
Share Option and Award Activity | The following table summarizes our equity award activity during the years ended December 31, 2020, 2019, and 2018: Service-Based Restricted Stock Awards Performance-Based Restricted Stock Awards Stock-Settled Appreciation Rights Shares or Units (#) Weighted-Average Award Price($) Shares or Units(#) Weighted-Average Award Price ($) Rights(#) Weighted-Average Award Price($) Outstanding at December 31, 2017 254,490 21.88 179,774 21.42 57,000 18.14 Granted 141,722 22.73 103,940 22.95 — — Awards vested or rights exercised (132,872 ) 22.45 (48,661 ) 24.10 — — Forfeited (14,198 ) 21.94 (25,299 ) 21.40 — — Outstanding at December 31, 2018 249,142 22.05 209,754 21.56 57,000 18.14 Granted 137,768 20.24 113,522 20.29 — — Awards vested or rights exercised (133,364 ) 22.27 (57,351 ) 18.93 (49,500 ) 18.14 Forfeited (18,736 ) 21.25 (51,116 ) 22.45 — — Outstanding at December 31, 2019 234,810 20.93 214,809 21.38 7,500 18.14 Granted 145,375 20.42 120,727 20.42 — — Awards vested or rights exercised (130,434 ) 20.69 (44,875 ) 22.12 (7,500 ) 18.14 Forfeited (10,470 ) 20.41 (76,766 ) 20.29 — — Outstanding at December 31, 2020 239,281 20.77 213,895 21.08 — — Restricted units expected to vest 239,281 20.77 289,510 20.90 — — Exercisable at December 31, 2019 — — — — 7,500 18.14 Exercisable at December 31, 2018 — — — — 57,000 18.14 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
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: 2020 2019 2018 Common: Distributed earnings $ 46,564 $ 13,913 $ 32,595 Undistributed earnings 7,954 6,284 (4,741 ) Basic 54,518 20,197 27,854 Class A Common earnings 4,630 1,668 2,453 Diluted $ 59,148 $ 21,865 $ 30,307 Class A Common: Distributed earnings $ 3,957 $ 1,143 $ 2,869 Undistributed earnings 673 525 (416 ) $ 4,630 $ 1,668 $ 2,453 Denominator: 2020 2019 2018 Common: Weighted average shares outstanding - basic 17,128 18,360 19,182 Assumed conversion of Class A Common Stock 1,522 1,611 1,765 Dilutive options, awards and common stock equivalents 282 290 348 Total weighted average diluted Common Stock 18,932 20,261 21,295 Class A Common: Weighted average shares outstanding 1,522 1,611 1,765 Basic net earnings per share Common Stock $ 3.18 $ 1.10 $ 1.45 Class A Common Stock $ 3.04 $ 1.04 $ 1.39 Diluted net earnings per share Common Stock $ 3.12 $ 1.08 $ 1.42 Class A Common Stock $ 3.04 $ 1.03 $ 1.39 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019 (in thousands, except per share data): 2020 Quarter Ended March 31 June 30 September 30 December 31 Net sales $ 179,432 $ 109,968 $ 217,513 $ 241,339 Gross profit 99,553 59,646 122,177 137,619 Income before taxes 2,300 18,625 24,532 31,274 Net income 1,819 13,640 18,261 25,428 Basic net earnings per share: Common 0.10 0.73 0.98 1.40 Class A Common 0.09 0.69 0.94 1.33 Diluted net earnings per share: Common 0.09 0.72 0.97 1.37 Class A Common 0.09 0.69 0.93 1.35 2019 Quarter Ended March 31 June 30 September 30 December 31 Net sales $ 187,242 $ 191,893 $ 209,320 $ 213,837 Gross profit 103,083 103,557 112,019 115,830 Income before taxes 4,725 8,237 8,169 7,592 Net income 3,621 6,046 6,097 6,100 Basic net earnings per share: Common 0.18 0.30 0.31 0.32 Class A Common 0.17 0.28 0.30 0.30 Diluted net earnings per share: Common 0.17 0.29 0.31 0.31 Class A Common 0.17 0.27 0.30 0.30 |
Description of Business and S_4
Description of Business and Summary of Significant Accounting Policies, Business (Details) | Dec. 31, 2020StoreState |
Description of Business and Summary of Significant Accounting Policies [Abstract] | |
Number of showrooms | Store | 120 |
Number of states | State | 16 |
Description of Business and S_5
Description of Business and Summary of Significant Accounting Policies, COVID-19 (Details) - COVID-19 [Member] | May 01, 2020Store | May 31, 2020TeamMember | Apr. 30, 2020TeamMember | Jun. 20, 2020Store | Dec. 31, 2020 |
COVID-19 [Abstract] | |||||
Store closure extension period | 30 days | ||||
Number of team members furloughed | 730 | 3,033 | |||
Percentage of team members furloughed | 87.00% | ||||
Number of team members included in permanent workforce reduction | 1,200 | ||||
Number of stores reopened | Store | 103 | 17 |
Description of Business and S_6
Description of Business and Summary of Significant Accounting Policies, Cash and Cash Equivalents (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Settlement period for credit and debit card transactions | 5 days |
Description of Business and S_7
Description of Business and Summary of Significant Accounting Policies, Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Buildings [Member] | Minimum [Member] | |
Property, Plant and Equipment [Abstract] | |
Estimated useful life | 25 years |
Buildings [Member] | Maximum [Member] | |
Property, Plant and Equipment [Abstract] | |
Estimated useful life | 33 years |
Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Abstract] | |
Estimated useful life | 5 years |
Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Abstract] | |
Estimated useful life | 15 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment [Abstract] | |
Estimated useful life | 3 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment [Abstract] | |
Estimated useful life | 15 years |
Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Abstract] | |
Estimated useful life | 3 years |
Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Abstract] | |
Estimated useful life | 15 years |
Description of Business and S_8
Description of Business and Summary of Significant Accounting Policies, Revenue Recognition (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue Recognition [Abstract] | |
Percentage of sales internally financed | 1.00% |
Payment period for receivables from internally financed sales | 1 year |
Description of Business and S_9
Description of Business and Summary of Significant Accounting Policies, Selling, General and Administrative Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Selling, General and Administrative Expenses [Abstract] | |||
Purchasing, warehousing, delivery and other distribution costs | $ 71,838 | $ 77,668 | $ 80,383 |
Description of Business and _10
Description of Business and Summary of Significant Accounting Policies, Advertising Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Advertising Expense [Abstract] | |||
Prepaid advertising costs | $ 327 | $ 181 | |
Advertising expense | $ 39,862 | $ 49,724 | $ 48,315 |
Description of Business and _11
Description of Business and Summary of Significant Accounting Policies, Interest (Income) Expense, net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Interest (Income) Expense, net [Abstract] | |||
Interest expense | $ 391 | $ 152 | $ 2,451 |
Description of Business and _12
Description of Business and Summary of Significant Accounting Policies, Other Income, net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Income, net [Abstract] | |||
Gain on sale and leaseback transaction | $ 31,600 | ||
Gains (losses) on sale of former retail locations and other operating assets | $ 3,500 | $ (425) |
Description of Business and _13
Description of Business and Summary of Significant Accounting Policies, Self-Insurance (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Self-Insurance [Abstract] | ||
Self-insurance reserves | $ 7,810 | $ 7,802 |
Description of Business and _14
Description of Business and Summary of Significant Accounting Policies, Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Level 1 [Member] | Other Assets [Member] | ||
Fair Values of Financial Instruments [Abstract] | ||
Deferred compensation plans | $ 7,949 | $ 7,530 |
Description of Business and _15
Description of Business and Summary of Significant Accounting Policies, Impairment of Long-Lived Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2018 | |
Impairment of Long-Lived Assets [Abstract] | |||
Impairment loss | $ 2,415 | $ 0 | $ 0 |
Description of Business and _16
Description of Business and Summary of Significant Accounting Policies, Earnings Per Share (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Percentage of earnings distributed as dividends in earnings per share calculation | 100.00% | 100.00% |
Description of Business and _17
Description of Business and Summary of Significant Accounting Policies, Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accumulated Other Comprehensive Income (Loss) [Abstract] | ||
Accumulated other comprehensive loss | $ (2,560) | $ (2,087) |
Revenues and Segment Reportin_2
Revenues and Segment Reporting (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($)Segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | ||
Disaggregation of Revenue [Abstract] | ||||||||||||
Net sales | $ 241,339 | $ 217,513 | $ 109,968 | $ 179,432 | $ 213,837 | $ 209,320 | $ 191,893 | $ 187,242 | $ 748,252 | $ 802,291 | $ 817,733 | |
Percentage of net sales | 100.00% | 100.00% | 100.00% | |||||||||
Customer deposits | 86,183 | 30,121 | $ 86,183 | $ 30,121 | ||||||||
Customer deposits not recognized through net sales | 113 | |||||||||||
Costs associated with deliveries | $ 35,885 | 39,796 | $ 40,236 | |||||||||
Number of reportable segments | Segment | 1 | |||||||||||
Other Current Assets [Member] | ||||||||||||
Disaggregation of Revenue [Abstract] | ||||||||||||
Return inventory | 853 | 765 | $ 853 | 765 | ||||||||
Accrued Liabilities [Member] | ||||||||||||
Disaggregation of Revenue [Abstract] | ||||||||||||
Refunds for returns and allowances | $ 2,378 | $ 2,023 | 2,378 | 2,023 | ||||||||
Case Goods [Member] | ||||||||||||
Disaggregation of Revenue [Abstract] | ||||||||||||
Net sales | $ 262,283 | $ 281,942 | $ 296,731 | |||||||||
Percentage of net sales | 35.10% | 35.10% | 36.30% | |||||||||
Bedroom Furniture [Member] | ||||||||||||
Disaggregation of Revenue [Abstract] | ||||||||||||
Net sales | $ 116,753 | $ 127,500 | $ 131,673 | |||||||||
Percentage of net sales | 15.60% | 15.90% | 16.10% | |||||||||
Dining Room Furniture [Member] | ||||||||||||
Disaggregation of Revenue [Abstract] | ||||||||||||
Net sales | $ 79,766 | $ 88,877 | $ 92,865 | |||||||||
Percentage of net sales | 10.70% | 11.10% | 11.40% | |||||||||
Occasional [Member] | ||||||||||||
Disaggregation of Revenue [Abstract] | ||||||||||||
Net sales | $ 65,764 | $ 65,565 | $ 72,193 | |||||||||
Percentage of net sales | 8.80% | 8.20% | 8.80% | |||||||||
Upholstery [Member] | ||||||||||||
Disaggregation of Revenue [Abstract] | ||||||||||||
Net sales | $ 315,714 | $ 321,024 | $ 326,114 | |||||||||
Percentage of net sales | 42.20% | 40.00% | 39.90% | |||||||||
Mattresses [Member] | ||||||||||||
Disaggregation of Revenue [Abstract] | ||||||||||||
Net sales | $ 72,855 | $ 90,583 | $ 85,055 | |||||||||
Percentage of net sales | 9.70% | 11.30% | 10.40% | |||||||||
Accessories and Other [Member] | ||||||||||||
Disaggregation of Revenue [Abstract] | ||||||||||||
Net sales | [1] | $ 97,400 | $ 108,742 | $ 109,833 | ||||||||
Percentage of net sales | 13.00% | 13.60% | 13.40% | |||||||||
Delivery Fees [Member] | ||||||||||||
Disaggregation of Revenue [Abstract] | ||||||||||||
Net sales | $ 30,824 | $ 34,580 | $ 34,405 | |||||||||
[1] | Includes delivery charges and product protection. |
Inventories (Details)
Inventories (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Inventories [Abstract] | |||
Excess of current costs over carrying value of inventories | $ 22,394 | $ 21,758 | |
Impact of LIFO vs. FIFO valuation method | $ (636) | $ (1,811) | $ (770) |
Effect of liquidations of LIFO inventory layers on diluted earnings per share | $ (0.03) | ||
Cost of Goods Sold [Member] | |||
Inventories [Abstract] | |||
Effect of liquidations of LIFO inventory layers on income | $ (562) |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property and Equipment [Abstract] | ||
Property and equipment, gross | $ 359,434 | $ 424,415 |
Less accumulated depreciation | (251,068) | (267,881) |
Property and equipment, net | 108,366 | 156,534 |
Land and Improvements [Member] | ||
Property and Equipment [Abstract] | ||
Property and equipment, gross | 32,903 | 44,044 |
Buildings and Improvements [Member] | ||
Property and Equipment [Abstract] | ||
Property and equipment, gross | 191,272 | 243,386 |
Furniture and Fixtures [Member] | ||
Property and Equipment [Abstract] | ||
Property and equipment, gross | 83,532 | 83,801 |
Equipment [Member] | ||
Property and Equipment [Abstract] | ||
Property and equipment, gross | 49,734 | 52,687 |
Construction in Progress [Member] | ||
Property and Equipment [Abstract] | ||
Property and equipment, gross | $ 1,993 | $ 497 |
Credit Arrangement (Details)
Credit Arrangement (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Credit Agreement [Abstract] | |||||
Proceeds from borrowings | $ 43,800 | $ 0 | $ 0 | ||
Repayment of borrowings | 43,800 | 0 | 0 | ||
Interest paid | 365 | $ 126 | $ 2,425 | ||
Credit Agreement [Member] | |||||
Credit Agreement [Abstract] | |||||
Proceeds from borrowings | $ 43,800 | ||||
Repayment of borrowings | $ 43,800 | ||||
Maximum borrowing capacity | $ 60,000 | ||||
Maturity date | Sep. 27, 2024 | ||||
Covenant limit for unused availability to pay dividends | $ 12,500 | ||||
Weighted average interest rate | 2.37% | ||||
Interest paid | $ 400 | ||||
Borrowing base | 15,300 | ||||
Outstanding letters of credit | 0 | ||||
Net availability | $ 15,300 | ||||
Credit Agreement [Member] | Euro Dollar LIBOR Rate [Member] | |||||
Credit Agreement [Abstract] | |||||
Term of variable interest rate | 3 months | ||||
Basis spread on variable rate | 1.25% |
Accrued Liabilities and Other_3
Accrued Liabilities and Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accrued Liabilities [Abstract] | ||
Employee compensation, related taxes and benefits | $ 22,070 | $ 12,405 |
Taxes other than income and withholding | 8,386 | 8,483 |
Self-insurance reserves | 5,296 | 5,346 |
Other | 17,211 | 13,420 |
Accrued liabilities | 52,963 | 39,654 |
Other Liabilities [Abstract] | ||
Self-insurance reserves | 2,514 | 2,456 |
Other | 20,650 | 20,503 |
Other liabilities | $ 23,164 | $ 22,959 |
Income Taxes, Provision for Inc
Income Taxes, Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current [Abstract] | |||
Federal | $ 16,831 | $ 7,701 | $ 8,422 |
State | 3,210 | 1,849 | 2,118 |
Current income tax expense | 20,041 | 9,550 | 10,540 |
Deferred [Abstract] | |||
Federal | (1,217) | (2,217) | (232) |
State | (1,241) | (474) | (207) |
Deferred income tax benefit | (2,458) | (2,691) | (439) |
Income tax expense | $ 17,583 | $ 6,859 | $ 10,101 |
Income Taxes, CARES Act (Detail
Income Taxes, CARES Act (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
CARES Act [Abstract] | ||
Tax bonus depreciation percentage | 100.00% | |
Decrease in income tax liability | $ (2,053) | |
Selling, General and Administrative Expenses [Member] | ||
CARES Act [Abstract] | ||
Refundable employee retention credits | $ 2,301 | |
Accrued Liabilities [Member] | ||
CARES Act [Abstract] | ||
Deferred employer-paid portion of social security taxes | $ 1,607 |
Income Taxes, Statutory to Effe
Income Taxes, Statutory to Effective Income Tax Reconciliation (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statutory to Effective Income Tax Reconciliation [Abstract] | |||||
Statutory rates applied to income before income taxes | $ 16,164,000 | $ 6,032,000 | $ 8,486,000 | ||
State income taxes, net of Federal tax benefit | 2,057,000 | 1,149,000 | 1,616,000 | ||
Net permanent differences | 520,000 | 228,000 | 220,000 | ||
Other | 48,000 | (128,000) | (218,000) | ||
Leases | $ (400,000) | 0 | (418,000) | 0 | |
State tax credits | $ (1,200,000) | (1,206,000) | (4,000) | (3,000) | |
Income tax expense | 17,583,000 | 6,859,000 | 10,101,000 | ||
State quality jobs credits | $ 1,527,000 | $ 1,527,000 | $ 1,527,000 |
Income Taxes, Deferred Tax Asse
Income Taxes, Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Tax Assets [Abstract] | ||
Property and equipment | $ 8,868 | $ 10,517 |
Lease liabilities | 58,417 | 44,751 |
Accrued liabilities | 9,885 | 9,386 |
Retirement benefits | 662 | 504 |
State tax credits | 943 | 21 |
Other | 660 | 574 |
Total deferred tax assets | 79,435 | 65,753 |
Deferred Tax Liabilities [Abstract] | ||
Inventory related | 7,135 | 7,912 |
Right-of-use lease assets | 56,032 | 44,152 |
Other | 454 | 491 |
Total deferred tax liabilities | 63,621 | 52,555 |
Net deferred tax assets | $ 15,814 | $ 13,198 |
Leases (Details)
Leases (Details) ft² in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)Lease | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | May 18, 2020USD ($)ft²Property | |
Sale and Leaseback Transaction [Abstract] | |||||
Number of properties included in sale and leaseback transaction | Property | 3 | ||||
Term of operating lease | 15 years | ||||
Purchase price | $ 70,000 | ||||
Net book value of three properties | $ 37,900 | ||||
Gain on sale and leaseback transaction | $ 31,600 | ||||
Number of additional leases not yet commenced | Lease | 1 | ||||
Operating Lease Assets [Abstract] | |||||
Right-of use lease assets | $ 228,749 | $ 175,474 | |||
Operating Lease Liabilities [Abstract] | |||||
Current lease liabilities | 33,466 | 29,411 | |||
Non-current lease liabilities | 200,200 | 149,594 | |||
Total operating lease liabilities | $ 233,666 | $ 179,005 | |||
Weighted-Average Remaining Lease Term and Discount Rate [Abstract] | |||||
Weighted-average remaining lease term | 8 years 9 months 18 days | 7 years 2 months 12 days | |||
Weighted-average discount rate | 6.07% | 6.61% | |||
Undiscounted Future Minimum Lease Payments [Abstract] | |||||
2021 | $ 46,398 | ||||
2022 | 41,993 | ||||
2023 | 35,423 | ||||
2024 | 31,467 | ||||
2025 | 26,209 | ||||
Thereafter | 123,753 | ||||
Total undiscounted future minimum lease payments | 305,243 | ||||
Less: difference between undiscounted lease payments and discounted operating lease liabilities | (71,577) | ||||
Total operating lease liabilities | 233,666 | $ 179,005 | |||
Cash Paid for Amounts Included in the Measurement of Lease Liabilities [Abstract] | |||||
Operating cash flows from operating leases | 39,341 | 40,403 | |||
Right-of-use Assets Obtained in Exchange for Lease Obligations [Abstract] | |||||
Operating leases | 89,082 | 31,888 | |||
Other Income [Member] | |||||
Sale and Leaseback Transaction [Abstract] | |||||
Gain on sale and leaseback transaction | $ 31,600 | ||||
Selling, General and Administrative Expenses [Member] | |||||
Lease Expense [Abstract] | |||||
Operating lease cost | 44,854 | 41,681 | |||
Short-term lease cost | 0 | 90 | |||
Variable lease cost | 5,827 | 5,653 | |||
Total lease expense | 50,681 | $ 47,424 | |||
Net Rental Expense Applicable to Operating Leases [Abstract] | |||||
Rent expense under operating lease | $ 30,045 | ||||
Coppell, Texas [Member] | Distribution Space [Member] | |||||
Sale and Leaseback Transaction [Abstract] | |||||
Area of property | ft² | 394 | ||||
Coppell, Texas [Member] | Retail Space [Member] | |||||
Sale and Leaseback Transaction [Abstract] | |||||
Area of property | ft² | 44 | ||||
Coppell, Texas [Member] | Office Space [Member] | |||||
Sale and Leaseback Transaction [Abstract] | |||||
Area of property | ft² | 20 | ||||
Lakeland, Florida [Member] | Distribution Space [Member] | |||||
Sale and Leaseback Transaction [Abstract] | |||||
Area of property | ft² | 335 | ||||
Colonial Heights, Virginia [Member] | Distribution Space [Member] | |||||
Sale and Leaseback Transaction [Abstract] | |||||
Area of property | ft² | 129 | ||||
COVID-19 [Member] | |||||
Operating Leases [Abstract] | |||||
Rent deferrals | 4,500 | ||||
Rent abatements | $ 1,800 | ||||
Minimum [Member] | |||||
Operating Leases [Abstract] | |||||
Remaining lease term | 1 year | ||||
Maximum [Member] | |||||
Operating Leases [Abstract] | |||||
Remaining lease term | 14 years | ||||
Term of lease extension | 20 years | ||||
Property [Member] | |||||
Net Rental Expense Applicable to Operating Leases [Abstract] | |||||
Minimum | 27,124 | ||||
Additional rentals based on sales | 22 | ||||
Sublease income | (130) | ||||
Rent expense under operating lease | 27,016 | ||||
Equipment [Member] | |||||
Net Rental Expense Applicable to Operating Leases [Abstract] | |||||
Rent expense under operating lease | $ 3,029 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - Common Stock [Member] $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2020$ / shares | Dec. 31, 2018$ / shares | Dec. 31, 2020USD ($)Vote$ / shares | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2018USD ($)$ / shares | |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||
Cash dividend paid (in dollars per share) | $ / shares | $ 2 | $ 1 | $ 2.77 | $ 0.76 | $ 1.72 |
Cash dividends paid | $ | $ 46,564 | $ 13,913 | $ 32,595 | ||
Minimum [Member] | |||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||
Preferential dividend rate as a percentage of dividend paid on Class A Common Stock | 105.00% | 105.00% | |||
Class A Common Stock [Member] | |||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||
Percentage of directors that can be voted on in election | 75.00% | ||||
Number of votes per share | Vote | 10 | ||||
Conversion basis | 1-for-1 basis | ||||
Cash dividend paid (in dollars per share) | $ / shares | $ 1.90 | $ 0.95 | $ 2.62 | $ 0.72 | $ 1.63 |
Cash dividends paid | $ | $ 3,957 | $ 1,143 | $ 2,869 |
Benefit Plans, Change in Benefi
Benefit Plans, Change in Benefit Obligation, Plan Assets and Funded Status (Details) - SERP [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Benefit Plans [Abstract] | |||
Percentage of final average earnings | 55.00% | ||
Maximum annual retirement benefits paid to participant from all sources | $ 125 | ||
Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of the year | 8,299 | $ 7,394 | |
Interest cost | 266 | 315 | $ 290 |
Actuarial losses | 791 | 906 | |
Benefits paid | (355) | (316) | |
Benefit obligation at end of year | 9,001 | 8,299 | $ 7,394 |
Change in Plan Assets [Roll Forward] | |||
Employer contribution | 355 | 316 | |
Benefits paid | (355) | (316) | |
Fair value of plan assets at end of year | 0 | 0 | |
Funded status of the plan - (underfunded) | (9,001) | (8,299) | |
Accumulated benefit obligations | $ 9,001 | $ 8,299 |
Benefit Plans, Amounts Recogniz
Benefit Plans, Amounts Recognized in Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Amounts Recognized in Consolidated Balance Sheets [Abstract] | ||
Current liabilities | $ (438) | $ (406) |
Noncurrent liabilities | (8,563) | (7,893) |
Total amounts recognized | (9,001) | (8,299) |
Net actuarial loss recognized in accumulated other comprehensive loss | $ 2,554 | $ 1,923 |
Benefit Plans, Net Pension Cost
Benefit Plans, Net Pension Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net Pension Costs [Abstract] | |||
Amortization from accumulated other comprehensive loss in 2021 | $ 260 | ||
SERP [Member] | |||
Net Pension Costs [Abstract] | |||
Interest cost on projected benefit obligation | 266 | $ 315 | $ 290 |
Amortization of actuarial loss | 159 | 46 | 136 |
Net pension costs | $ 425 | $ 361 | $ 426 |
Benefit Plans, Assumptions (Det
Benefit Plans, Assumptions (Details) - SERP [Member] | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Assumptions Used to Determine Net Pension Costs [Abstract] | ||||
Discount rate | 3.29% | 4.36% | 3.68% | |
Rate of compensation increase | [1] | |||
Assumptions Used to Determine Benefit Obligations [Abstract] | ||||
Discount rate | 2.41% | 3.29% | ||
Rate of compensation increase | [1] | |||
[1] | n/a |
Benefit Plans, Expected Future
Benefit Plans, Expected Future Benefit Payments (Details) - SERP [Member] $ in Thousands | Dec. 31, 2020USD ($) |
Expected Future Benefit Payments [Abstract] | |
2021 | $ 438 |
2022 | 437 |
2023 | 427 |
2024 | 433 |
2025 | 478 |
2026-2030 | $ 2,668 |
Benefit Plans, Other Plans (Det
Benefit Plans, Other Plans (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employee Savings/Retirement 401(k) Plan [Member] | |||
Other Plans [Abstract] | |||
Employer matching contribution percentage | 100.00% | ||
Employer matching contribution, percent of employee contribution | 4.00% | ||
Maximum employer matching contribution per participant | $ 11,200 | ||
Employer contributions | 4,069,000 | $ 5,173,000 | $ 4,770,000 |
Deferred Compensation Plan [Member] | |||
Other Plans [Abstract] | |||
Employer matching contribution | 43,000 | 61,000 | $ 55,000 |
Deferred Compensation Plan [Member] | Other Assets [Member] | |||
Other Plans [Abstract] | |||
Plans' assets | 7,949,000 | 7,530,000 | |
Deferred Compensation Plan [Member] | Other Liabilities [Member] | |||
Other Plans [Abstract] | |||
Recorded liability | $ 8,063,000 | $ 7,540,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Accumulated Other Comprehensive Loss [Roll Forward] | ||||
Beginning balance | $ 260,503 | $ 274,629 | ||
Other Comprehensive Income (Loss) [Abstract] | ||||
Ending balance | 252,967 | 260,503 | $ 274,629 | |
Accumulated Other Comprehensive Loss [Member] | ||||
Accumulated Other Comprehensive Loss [Roll Forward] | ||||
Beginning balance | (2,087) | (1,465) | (2,144) | |
Other Comprehensive Income (Loss) [Abstract] | ||||
Ending balance | (2,560) | (2,087) | (1,465) | |
Defined Benefit Pension Plan [Member] | ||||
Other Comprehensive Income (Loss) [Abstract] | ||||
Other comprehensive income (loss), before tax | (632) | (860) | 905 | |
Tax expense (benefit) | (159) | (238) | 226 | |
Total other comprehensive income (loss) | (473) | (622) | 679 | |
Defined Benefit Pension Plan Net Gain (Loss) [Member] | ||||
Other Comprehensive Income (Loss) [Abstract] | ||||
Other comprehensive income (loss) before reclassifications | (791) | (906) | 769 | |
Reclassification from accumulated other comprehensive loss | [1] | $ 159 | $ 46 | $ 136 |
[1] | These amounts are included in the computation of net periodic pension costs and were reclassified to selling, general and administrative costs. |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)Plan$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | |
Stock-Based Compensation Plans [Abstract] | |||
Number of employee compensation plans | Plan | 2 | ||
Additional Disclosures [Abstract] | |||
Tax expense recognized | $ | $ 293 | $ 98 | $ 143 |
Compensation cost related to unvested equity awards | $ | $ 6,165 | ||
Weighted-average period for recognition of cost | 2 years | ||
Selling, General and Administrative Expense [Member] | |||
Additional Disclosures [Abstract] | |||
Stock-based compensation expense | $ | $ 4,375 | $ 3,435 | $ 4,358 |
2014 LTIP Plan [Member] | |||
Stock-Based Compensation Plans [Abstract] | |||
Shares available for grant (in shares) | 307,000 | ||
Service-Based Restricted Stock Awards [Member] | |||
Equity Award Activity [Roll Forward] | |||
Outstanding, beginning balance (in shares) | 234,810 | 249,142 | 254,490 |
Granted (in shares) | 145,375 | 137,768 | 141,722 |
Awards vested or rights exercised (in shares) | (130,434) | (133,364) | (132,872) |
Forfeited (in shares) | (10,470) | (18,736) | (14,198) |
Outstanding, ending balance (in shares) | 239,281 | 234,810 | 249,142 |
Expected to vest (in shares) | 239,281 | ||
Weighted-Average Award Price [Roll Forward] | |||
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 20.93 | $ 22.05 | $ 21.88 |
Granted (in dollars per share) | $ / shares | 20.42 | 20.24 | 22.73 |
Awards vested or rights exercised (in dollars per share) | $ / shares | 20.69 | 22.27 | 22.45 |
Forfeited (in dollars per share) | $ / shares | 20.41 | 21.25 | 21.94 |
Outstanding, ending balance (in dollars per share) | $ / shares | 20.77 | $ 20.93 | $ 22.05 |
Expected to vest (in dollars per share) | $ / shares | $ 20.77 | ||
Additional Disclosures [Abstract] | |||
Fair value of vested shares | $ | $ 1,798 | $ 2,491 | $ 2,594 |
Aggregate intrinsic value of outstanding awards | $ | $ 6,621 | ||
Service-Based Restricted Stock Awards [Member] | Minimum [Member] | |||
Additional Disclosures [Abstract] | |||
Vesting period of awards | 3 years | ||
Service-Based Restricted Stock Awards [Member] | Maximum [Member] | |||
Additional Disclosures [Abstract] | |||
Vesting period of awards | 4 years | ||
Performance-Based Restricted Stock Awards [Member] | |||
Equity Award Activity [Roll Forward] | |||
Outstanding, beginning balance (in shares) | 214,809 | 209,754 | 179,774 |
Granted (in shares) | 120,727 | 113,522 | 103,940 |
Awards vested or rights exercised (in shares) | (44,875) | (57,351) | (48,661) |
Forfeited (in shares) | (76,766) | (51,116) | (25,299) |
Outstanding, ending balance (in shares) | 213,895 | 214,809 | 209,754 |
Expected to vest (in shares) | 289,510 | ||
Weighted-Average Award Price [Roll Forward] | |||
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 21.38 | $ 21.56 | $ 21.42 |
Granted (in dollars per share) | $ / shares | 20.42 | 20.29 | 22.95 |
Awards vested or rights exercised (in dollars per share) | $ / shares | 22.12 | 18.93 | 24.10 |
Forfeited (in dollars per share) | $ / shares | 20.29 | 22.45 | 21.40 |
Outstanding, ending balance (in dollars per share) | $ / shares | 21.08 | $ 21.38 | $ 21.56 |
Expected to vest (in dollars per share) | $ / shares | $ 20.90 | ||
Additional Disclosures [Abstract] | |||
Fair value of vested shares | $ | $ 755 | $ 1,389 | $ 988 |
Aggregate intrinsic value of outstanding awards | $ | $ 5,918 | ||
Performance period | 1 year | ||
Cliff vesting period | 3 years | ||
Stock-Settled Appreciation Rights [Member] | |||
Equity Award Activity [Roll Forward] | |||
Outstanding, beginning balance (in shares) | 7,500 | 57,000 | 57,000 |
Granted (in shares) | 0 | 0 | 0 |
Awards vested or rights exercised (in shares) | (7,500) | (49,500) | 0 |
Forfeited (in shares) | 0 | 0 | 0 |
Outstanding, ending balance (in shares) | 0 | 7,500 | 57,000 |
Exercisable (in shares) | 7,500 | 57,000 | |
Weighted-Average Award Price [Roll Forward] | |||
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 18.14 | $ 18.14 | $ 18.14 |
Granted (in dollars per share) | $ / shares | 0 | 0 | 0 |
Awards vested or rights exercised (in dollars per share) | $ / shares | 18.14 | 18.14 | 0 |
Forfeited (in dollars per share) | $ / shares | 0 | 0 | 0 |
Outstanding, ending balance (in dollars per share) | $ / shares | $ 0 | 18.14 | 18.14 |
Exercisable, ending balance (in dollars per share) | $ / shares | $ 18.14 | $ 18.14 | |
Additional Disclosures [Abstract] | |||
Intrinsic value of awards exercised | $ | $ 18 | $ 107 |
Earnings Per Share (Details)
Earnings Per Share (Details) - Common Stock [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator [Abstract] | |||||||||||
Distributed earnings | $ 46,564 | $ 13,913 | $ 32,595 | ||||||||
Undistributed earnings | 7,954 | 6,284 | (4,741) | ||||||||
Basic | 54,518 | 20,197 | 27,854 | ||||||||
Diluted | $ 59,148 | $ 21,865 | $ 30,307 | ||||||||
Denominator [Abstract] | |||||||||||
Weighted average shares outstanding - basic (in shares) | 17,128 | 18,360 | 19,182 | ||||||||
Assumed conversion of Class A Common Stock (in shares) | 1,522 | 1,611 | 1,765 | ||||||||
Dilutive options, awards and common stock equivalents (in shares) | 282 | 290 | 348 | ||||||||
Total weighted average diluted Common Stock (in shares) | 18,932 | 20,261 | 21,295 | ||||||||
Earnings Per Share [Abstract] | |||||||||||
Basic earnings per share (in dollars per share) | $ 1.40 | $ 0.98 | $ 0.73 | $ 0.10 | $ 0.32 | $ 0.31 | $ 0.30 | $ 0.18 | $ 3.18 | $ 1.10 | $ 1.45 |
Diluted earnings per share (in dollars per share) | 1.37 | 0.97 | 0.72 | 0.09 | 0.31 | 0.31 | 0.29 | 0.17 | $ 3.12 | $ 1.08 | $ 1.42 |
Class A Common Stock [Member] | |||||||||||
Numerator [Abstract] | |||||||||||
Distributed earnings | $ 3,957 | $ 1,143 | $ 2,869 | ||||||||
Undistributed earnings | 673 | 525 | (416) | ||||||||
Basic | $ 4,630 | $ 1,668 | $ 2,453 | ||||||||
Denominator [Abstract] | |||||||||||
Weighted average shares outstanding (in shares) | 1,522 | 1,611 | 1,765 | ||||||||
Earnings Per Share [Abstract] | |||||||||||
Basic earnings per share (in dollars per share) | 1.33 | 0.94 | 0.69 | 0.09 | 0.30 | 0.30 | 0.28 | 0.17 | $ 3.04 | $ 1.04 | $ 1.39 |
Diluted earnings per share (in dollars per share) | $ 1.35 | $ 0.93 | $ 0.69 | $ 0.09 | $ 0.30 | $ 0.30 | $ 0.27 | $ 0.17 | $ 3.04 | $ 1.03 | $ 1.39 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Selected Quarterly Financial Data (Unaudited) [Abstract] | |||||||||||
Net sales | $ 241,339 | $ 217,513 | $ 109,968 | $ 179,432 | $ 213,837 | $ 209,320 | $ 191,893 | $ 187,242 | $ 748,252 | $ 802,291 | $ 817,733 |
Gross profit | 137,619 | 122,177 | 59,646 | 99,553 | 115,830 | 112,019 | 103,557 | 103,083 | 418,994 | 434,488 | 446,542 |
Income before taxes | 31,274 | 24,532 | 18,625 | 2,300 | 7,592 | 8,169 | 8,237 | 4,725 | 76,731 | 28,724 | 40,408 |
Net income | 25,428 | $ 18,261 | $ 13,640 | $ 1,819 | 6,100 | $ 6,097 | $ 6,046 | $ 3,621 | 59,148 | 21,865 | 30,307 |
Earnings Per Share [Abstract] | |||||||||||
State tax credits | $ (1,200) | (1,206) | (4) | (3) | |||||||
Impairment loss | 2,415 | 0 | 0 | ||||||||
Deferred tax benefit related to leases | $ (400) | $ 0 | $ (418) | $ 0 | |||||||
Common Stock [Member] | |||||||||||
Earnings Per Share [Abstract] | |||||||||||
Basic earnings per share (in dollars per share) | $ 1.40 | $ 0.98 | $ 0.73 | $ 0.10 | $ 0.32 | $ 0.31 | $ 0.30 | $ 0.18 | $ 3.18 | $ 1.10 | $ 1.45 |
Diluted earnings per share (in dollars per share) | 1.37 | 0.97 | 0.72 | 0.09 | 0.31 | 0.31 | 0.29 | 0.17 | 3.12 | 1.08 | 1.42 |
Common Stock [Member] | Class A Common Stock [Member] | |||||||||||
Earnings Per Share [Abstract] | |||||||||||
Basic earnings per share (in dollars per share) | 1.33 | 0.94 | 0.69 | 0.09 | 0.30 | 0.30 | 0.28 | 0.17 | 3.04 | 1.04 | 1.39 |
Diluted earnings per share (in dollars per share) | $ 1.35 | $ 0.93 | $ 0.69 | $ 0.09 | $ 0.30 | $ 0.30 | $ 0.27 | $ 0.17 | $ 3.04 | $ 1.03 | $ 1.39 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Refund on Estimated Returns and Allowances [Member] | ||||
Valuation and Qualifying Accounts [Roll Forward] | ||||
Balance at beginning of period | $ 2,023 | $ 1,950 | ||
Additions charged to costs and expenses | 17,094 | 18,748 | ||
Deductions | [1] | 16,739 | 18,675 | |
Balance at end of period | $ 2,378 | 2,023 | $ 1,950 | |
Reserve for Cancelled Sales and Allowances [Member] | ||||
Valuation and Qualifying Accounts [Roll Forward] | ||||
Balance at beginning of period | $ 1,950 | 2,072 | ||
Additions charged to costs and expenses | 19,252 | |||
Deductions | [2] | 19,374 | ||
Balance at end of period | $ 1,950 | |||
[1] | Refund on estimated returns and allowances: impact of sales cancelled after delivery plus amount of allowance given to customers. | |||
[2] | Reserve for cancelled sales and allowances: impact of sales cancelled after delivery plus amount of allowance given to customers. |