Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 27, 2024 | Jun. 30, 2023 | |
Entity Listings [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-14445 | ||
Entity Registrant Name | HAVERTY FURNITURE COMPANIES, INC | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 58-0281900 | ||
Entity Address, Address Line One | 780 Johnson Ferry Road, | ||
Entity Address, Address Line Two | 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 | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 455,006,020 | ||
Documents Incorporated by Reference | Portions of the registrant’s Proxy Statement for the Annual Meeting of Stockholders to be held May 6 , 2024 are incorporated by reference into Part III of this Annual Report on Form 10-K. | ||
Entity Central Index Key | 0000216085 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Common Stock | |||
Entity Listings [Line Items] | |||
Title of 12(b) Security | Common Stock | ||
Trading Symbol | HVT | ||
Security Exchange Name | NYSE | ||
Entity Common Stock, Shares Outstanding | 14,864,697 | ||
Class A Common Stock | |||
Entity Listings [Line Items] | |||
Title of 12(b) Security | Class A Common Stock | ||
Trading Symbol | HVTA | ||
Security Exchange Name | NYSE | ||
Entity Common Stock, Shares Outstanding | 1,281,395 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | GRANT THORNTON LLP |
Auditor Location | Atlanta, Georgia |
Auditor Firm ID | 248 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 120,635 | $ 123,126 |
Restricted cash equivalents | 7,142 | 6,804 |
Inventories | 93,956 | 118,333 |
Prepaid expenses | 17,067 | 9,707 |
Other current assets | 12,793 | 18,283 |
Total current assets | 251,593 | 276,253 |
Property and equipment, net | 171,588 | 137,475 |
Right-of-use lease assets | 202,306 | 207,390 |
Deferred income taxes | 15,641 | 15,501 |
Other assets | 13,005 | 12,430 |
Total assets | 654,133 | 649,049 |
Current liabilities | ||
Accounts payable | 18,781 | 23,345 |
Customer deposits | 35,837 | 47,969 |
Accrued liabilities | 46,289 | 48,676 |
Current lease liabilities | 37,357 | 34,442 |
Total current liabilities | 138,264 | 154,432 |
Noncurrent lease liabilities | 180,397 | 186,845 |
Other liabilities | 27,106 | 18,373 |
Total liabilities | 345,767 | 359,650 |
Capital Stock, par value $1 per share | ||
Preferred Stock, Authorized – 1,000 shares; Issued: None | ||
Additional paid-in capital | 113,307 | 108,706 |
Retained earnings | 419,472 | 398,393 |
Accumulated other comprehensive loss | (983) | (756) |
Treasury stock at cost – Common Stock (2023 – 15,355; 2022 – 15,140) and Convertible Class A Common Stock (2023 and 2022 – 522) | (255,454) | (248,756) |
Total stockholders’ equity | 308,366 | 289,399 |
Total liabilities and stockholders’ equity | 654,133 | 649,049 |
Common Stock | ||
Capital Stock, par value $1 per share | ||
Common Stock/Class A Common Stock, value, issued | 30,220 | 30,006 |
Class A Common Stock | ||
Capital Stock, par value $1 per share | ||
Common Stock/Class A Common Stock, value, issued | $ 1,804 | $ 1,806 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
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 | ||
Stockholders’ equity | ||
Common stock, shares authorized (in shares) | 50,000 | 50,000 |
Common stock, shares issued (in shares) | 30,220 | 30,006 |
Treasury stock, shares (in shares) | 15,355 | 15,140 |
Class A Common Stock | ||
Stockholders’ equity | ||
Common stock, shares authorized (in shares) | 15,000 | 15,000 |
Common stock, shares issued (in shares) | 1,804 | 1,806 |
Treasury stock, shares (in shares) | 522 | 522 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Net sales | $ 862,133 | $ 1,047,215 | $ 1,012,799 |
Cost of goods sold | 339,041 | 442,990 | 438,174 |
Gross profit | 523,092 | 604,225 | 574,625 |
Expenses: | |||
Selling, general and administrative | 455,812 | 486,298 | 456,267 |
Other expense (income), net | 77 | 44 | 54 |
Total expenses | 455,889 | 486,342 | 456,321 |
Income before interest and income taxes | 67,203 | 117,883 | 118,304 |
Interest income, net | 5,508 | 1,618 | 231 |
Income before income taxes | 72,711 | 119,501 | 118,535 |
Income tax expense | 16,392 | 30,143 | 27,732 |
Net income | 56,319 | 89,358 | 90,803 |
Other comprehensive (loss) income, net of tax: | |||
Defined benefit pension plan adjustments; net of tax expense (benefit) of $(76), $513 and $89 | (227) | 1,537 | 267 |
Comprehensive income | $ 56,092 | $ 90,895 | $ 91,070 |
Common Stock | |||
Other comprehensive (loss) income, net of tax: | |||
Basic earnings per share (in dollars per share) | $ 3.48 | $ 5.43 | $ 5.06 |
Diluted earnings per share (in dollars per share) | 3.36 | 5.24 | 4.90 |
Class A Common Stock | |||
Other comprehensive (loss) income, net of tax: | |||
Basic earnings per share (in dollars per share) | 3.29 | 5.17 | 4.75 |
Diluted earnings per share (in dollars per share) | $ 3.25 | $ 5.07 | $ 4.69 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Defined benefit pension plan adjustments, tax expense (benefit) | $ (76) | $ 513 | $ 89 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Class A Common Stock | Common Stock Common Stock | Common Stock Class A Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Dec. 31, 2020 | 29,600,000 | 1,996,000 | |||||||
Beginning balance at Dec. 31, 2020 | $ 29,600 | $ 1,996 | $ (177,545) | $ 96,850 | $ 304,626 | $ (2,560) | |||
Beginning balance (in shares) at Dec. 31, 2020 | (13,384,000) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Conversion of Class A Common Stock (in shares) | 187,000 | ||||||||
Conversion of Class A Common Stock | $ 187 | ||||||||
Stock compensation transactions, net (in shares) | 120,000 | ||||||||
Stock compensation transactions, net | $ 120 | ||||||||
Conversion to Common Stock (in shares) | (187,000) | ||||||||
Conversion to Common Stock | $ (187) | ||||||||
Directors' compensation plan (in shares) | 25,000 | ||||||||
Directors’ Compensation Plan | $ 346 | 523 | |||||||
Purchases (in shares) | (1,232,000) | ||||||||
Purchases | $ (41,809) | ||||||||
Shares issued under incentive plans, net | (3,014) | ||||||||
Stock-based compensation expense | 8,213 | ||||||||
Net income | $ 90,803 | 90,803 | |||||||
Cash dividends per share: Common Stock: 2023 – $2.18; 2022 - $2.09; and 2021 – $2.97 Class A Common Stock: 2023 - $2.05; 2022 - $1.96; and 2021– $2.79 | $ (48,837) | $ (3,609) | (52,446) | ||||||
Pension liabilities adjustment, net of taxes | 267 | 267 | |||||||
Ending balance (in shares) at Dec. 31, 2021 | 29,907,000 | 1,809,000 | |||||||
Ending balance (in shares) at Dec. 31, 2021 | (522,000) | (14,591,000) | |||||||
Ending balance at Dec. 31, 2021 | 255,970 | $ 29,907 | $ 1,809 | $ (219,008) | 102,572 | 342,983 | (2,293) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Conversion of Class A Common Stock (in shares) | 3,000 | ||||||||
Conversion of Class A Common Stock | $ 3 | ||||||||
Stock compensation transactions, net (in shares) | 96,000 | ||||||||
Stock compensation transactions, net | $ 96 | ||||||||
Conversion to Common Stock (in shares) | (3,000) | ||||||||
Conversion to Common Stock | $ (3) | ||||||||
Directors' compensation plan (in shares) | 16,000 | ||||||||
Directors’ Compensation Plan | $ 250 | 707 | |||||||
Purchases (in shares) | (1,087,000) | ||||||||
Purchases | $ (29,998) | ||||||||
Shares issued under incentive plans, net | (1,768) | ||||||||
Stock-based compensation expense | 7,195 | ||||||||
Net income | 89,358 | 89,358 | |||||||
Cash dividends per share: Common Stock: 2023 – $2.18; 2022 - $2.09; and 2021 – $2.97 Class A Common Stock: 2023 - $2.05; 2022 - $1.96; and 2021– $2.79 | $ (31,432) | $ (2,516) | (33,948) | ||||||
Pension liabilities adjustment, net of taxes | 1,537 | 1,537 | |||||||
Ending balance (in shares) at Dec. 31, 2022 | 30,006,000 | 1,806,000 | |||||||
Ending balance (in shares) at Dec. 31, 2022 | (15,140,000) | (522,000) | (15,662,000) | ||||||
Ending balance at Dec. 31, 2022 | 289,399 | $ 30,006 | $ 1,806 | $ (248,756) | 108,706 | 398,393 | (756) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Conversion of Class A Common Stock (in shares) | 2,000 | ||||||||
Conversion of Class A Common Stock | $ 2 | ||||||||
Stock compensation transactions, net (in shares) | 212,000 | ||||||||
Stock compensation transactions, net | $ 212 | ||||||||
Conversion to Common Stock (in shares) | (2,000) | ||||||||
Conversion to Common Stock | $ (2) | ||||||||
Directors' compensation plan (in shares) | 12,000 | ||||||||
Directors’ Compensation Plan | $ 197 | 880 | |||||||
Purchases (in shares) | (227,000) | ||||||||
Purchases | $ (6,895) | ||||||||
Shares issued under incentive plans, net | (4,289) | ||||||||
Stock-based compensation expense | 8,010 | ||||||||
Net income | 56,319 | 56,319 | |||||||
Cash dividends per share: Common Stock: 2023 – $2.18; 2022 - $2.09; and 2021 – $2.97 Class A Common Stock: 2023 - $2.05; 2022 - $1.96; and 2021– $2.79 | $ (32,612) | $ (2,628) | (35,240) | ||||||
Pension liabilities adjustment, net of taxes | (227) | (227) | |||||||
Ending balance (in shares) at Dec. 31, 2023 | 30,220,000 | 1,804,000 | |||||||
Ending balance (in shares) at Dec. 31, 2023 | (15,355,000) | (522,000) | (15,877,000) | ||||||
Ending balance at Dec. 31, 2023 | $ 308,366 | $ 30,220 | $ 1,804 | $ (255,454) | $ 113,307 | $ 419,472 | $ (983) |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Class A Common Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Treasury stock (in shares) | 522 | 522 | 522 |
Cash dividends (in dollar per share) | $ 2.05 | $ 1.96 | $ 2.79 |
Common Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Treasury stock (in shares) | 15,355 | 15,140 | |
Cash dividends (in dollar per share) | $ 2.18 | $ 2.09 | $ 2.97 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash Flows from Operating Activities | |||
Net income | $ 56,319 | $ 89,358 | $ 90,803 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 18,603 | 16,926 | 16,304 |
Stock-based compensation | 8,010 | 7,195 | 8,213 |
Deferred income taxes | (1,171) | 584 | 234 |
Net (gain) loss on sale of land, property and equipment | 71 | 128 | (77) |
Other | 1,160 | 960 | 869 |
Changes in operating assets and liabilities: | |||
Inventories | 24,377 | (6,303) | (22,123) |
Customer deposits | (12,132) | (50,928) | 12,714 |
Other assets and liabilities | 8,643 | (923) | (3,244) |
Accounts payable and accrued liabilities | (6,677) | (5,982) | (6,451) |
Net cash provided by operating activities | 97,203 | 51,015 | 97,242 |
Cash Flows from Investing Activities | |||
Capital expenditures | (53,115) | (28,411) | (34,090) |
Proceeds from sale of property and equipment | 53 | 86 | 88 |
Net cash used in investing activities | (53,062) | (28,325) | (34,002) |
Cash Flows from Financing Activities | |||
Dividends paid | (35,240) | (33,948) | (52,446) |
Common stock repurchased | (6,895) | (29,998) | (41,809) |
Taxes on vested restricted shares | (4,159) | (1,676) | (2,894) |
Net cash used in financing activities | (46,294) | (65,622) | (97,149) |
Cash Equivalents | (2,153) | (42,932) | (33,909) |
Beginning of Year | 129,930 | 172,862 | 206,771 |
End of Year | 127,777 | 129,930 | 172,862 |
Supplemental Disclosures | |||
Cash paid during the period for income taxes, net of refunds | 23,264 | 27,957 | 32,395 |
Cash paid for interest | $ 162 | $ 127 | $ 126 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | Description of Business and Summary of Significant Accounting Policies: Business: Haverty Furniture Companies, Inc. (“Havertys,” “we,” “our,” or “us”) is a retailer of a broad line of residential furniture in the middle to upper-middle price ranges. We have 124 showrooms in 16 states at December 31, 2023. All of our stores are operated using the Havertys name and we do not franchise our stores. We also have an online presence through which our customers can make purchases. We offer financing through third-party finance companies. Basis of Presentation: The consolidated financial statements include the accounts of Havertys and its wholly-owned subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates: The preparation of financial statements in conformity with United States of America generally accepted accounting principles (“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 include 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. Our cash is held in Federal Deposit Insurance Corporation (“FDIC”) insured accounts at various banks which at times may exceed federally insured amounts. 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. Other Current Assets: Other current assets include receivables from third-party finance companies used by customers to finance purchases and receivables from landlords for tenant incentives. 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. 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. Contingencies: We are involved in lawsuits, claims and proceedings incident to the ordinary course of our business. We review the need for any loss contingency reserves and establish reserves when, in the opinion of management, it is probable that a matter would result in liability, and the amount of loss, if any, can be reasonably estimated. Generally, in view of the inherent difficulty of predicting the outcome of these matters, it may not be possible to determine whether any loss is probable or to reasonably estimate the amount of the loss until the matter is close to resolution, in which case no reserve is established until that time. Claims against us could result in costly litigation, require significant amounts of management time and result in the diversion of significant operational resources. We expense any litigation-related amounts as incurred. The results of these lawsuits, claims and proceedings cannot be predicted with certainty. However, we believe that the ultimate resolution of these current matters will not have a material adverse effect on our Consolidated Financial Statements taken as a whole. 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 include 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 have a loyalty program. 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, administrative costs, and certain warehouse and transportation related expenses including accessorial and demurrage fees. The costs associated with our purchasing, warehousing, delivery and other distribution costs included in SG&A expense were approximately $92,363,000, $101,486,000 and $94,239,000 in 2023, 2022 and 2021, respectively. Leases: 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 $1,064,000 and $118,000 at December 31, 2023 and 2022, respectively. We incurred approximately $43,448,000, $51,381,000 and $49,338,000 in advertising expense during 2023, 2022 and 2021, respectively. Interest Income, net: We report interest income net of interest expense. Interest income is generated by our cash equivalents and restricted cash equivalents. Interest expense is comprised of charges incurred related to our credit facility. The total amount of interest expense was approximately $162,000, $154,000 and $152,000 during 2023, 2022 and 2021, 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. 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 $7,686,000 and $8,096,000 at December 31, 2023 and 2022, 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. 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 estimated fair value of the store’s assets, 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. No impairment losses were recorded in 2023, 2022, and 2021. 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, "Earnings Per Share" 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 $983,000 and $756,000 at December 31, 2023 and 2022, respectively. See Note 11, "Accumulated Other Comprehensive Loss" 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, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenues and Segment Reporting | 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, 2023 2022 2021 Net Sales % of Net Sales Net Sales % of Net Sales Net Sales % of Net Sales Merchandise: Case Goods Bedroom Furniture $ 132,072 15.3 % $ 168,432 16.1 % $ 156,033 15.4 % Dining Room Furniture 97,969 11.4 118,139 11.3 109,522 10.8 Occasional 68,592 8.0 85,278 8.1 86,849 8.6 298,633 34.6 371,849 35.5 352,404 34.8 Upholstery 370,921 43.0 445,306 42.5 433,525 42.8 Mattresses 74,798 8.7 85,208 8.1 90,224 8.9 Accessories and Other (1) 117,781 13.7 144,852 13.8 136,646 13.5 $ 862,133 100.0 % $ 1,047,215 100.0 % $ 1,012,799 100.0 % (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 $624,000 and $875,000 at December 31, 2023 and 2022, respectively, is included in the line item “Other current assets” and the estimated refund liability of $1,969,000 and $2,588,000 at December 31, 2023 and 2022, 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 $35,837,000 and $47,969,000 at December 31, 2023 and December 31, 2022, respectively. Of the customer deposit liabilities at December 31, 2022, approximately $293,000 has not been recognized through net sales in the twelve months ended December 31, 2023. We typically offer our customers an opportunity for us to deliver their purchases and most choose this service. Delivery fees of approximately $36,187,000, $52,199,000 and $50,002,000 were charged to customers in 2023, 2022 and 2021, respectively, and are included in net sales. The costs associated with deliveries are included in selling, general and administrative expenses and were approximately $42,361,000, $48,071,000, and $45,914,000 in 2023, 2022 and 2021, respectively. We operate within a single reportable segment. We use a market area approach for both financial and operational decision making. Each of these market areas are considered individual operating segments. The individual operating segments all have similar economic characteristics. The retail stores within the market areas are similar in size and carry substantially identical products selected for the same target customer. We also use the same distribution methods chain-wide. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories: Inventories are measured using the last-in, first-out (LIFO) method of valuation. The excess of current costs over our carrying value of inventories was approxim ately $36,133,000 a nd $45,545,000 at December 31, 2023 and 2022, respectively. The use of the LIFO valuation method as compared to the FIFO method had a positive impact on our cost of goods sold of approximately $9,412,000 in 2023, and a negative impact of approximately $10,841,000 in 2022 and $12,310,000 in 2021 . During 2023, there were liquidations of LIFO inventory layers. The effect of the liquidations during 2023 (included in the preceding LIFO impact amount) decreased cost of goods sold by approximately $410,000 or $0.02 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, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment: Property and equipment are summarized as follows: (In thousands) 2023 2022 Land and improvements $ 37,261 $ 35,015 Buildings and improvements 254,995 217,293 Furniture and fixtures 100,857 98,305 Equipment 64,735 61,270 Construction in progress 5,581 5,423 463,429 417,306 Less accumulated depreciation (291,841) (279,831) Property and equipment, net $ 171,588 $ 137,475 |
Credit Arrangement
Credit Arrangement | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Credit Arrangement | Credit Arrangement: In October 2022 we entered into the Fourth Amendment to Amended and Restated Credit Agreement (as amended, the “Credit Agreement”) with a bank to increase the revolving credit facility to $80,000,000, extend the maturity date to October 24, 2027, and replace the LIBOR rate with the SOFR rate as the interest rate benchmark. The Credit Agreement is a $80,000,000 revolving credit facility secured by our inventory, accounts receivable, cash, and certain other personal property. 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 $80,000,000 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 $12,500,000. |
Accrued Liabilities and Other L
Accrued Liabilities and Other Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities and Other Liabilities | Accrued Liabilities and Other Liabilities: Accrued liabilities and other liabilities consist of the following: (In thousands) 2023 2022 Accrued liabilities: Employee compensation, related taxes and benefits $ 19,312 $ 22,262 Taxes other than income and withholding 11,293 8,862 Self-insurance reserves 5,593 5,892 Other 10,091 11,660 $ 46,289 $ 48,676 Other liabilities: Deferred compensation 9,783 8,158 SERP, noncurrent 6,594 6,342 Self-insurance reserves 2,093 2,204 Other 8,636 1,669 $ 27,106 $ 18,373 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes: The provision for income taxes for the years ended December 31 consist of the following: (In thousands) 2023 2022 2021 Current Federal $ 14,015 $ 25,318 $ 22,832 State 3,548 4,241 4,666 17,563 29,559 27,498 Deferred Federal 474 (628) 589 State (1,645) 1,212 (355) (1,171) 584 234 Total income tax expense $ 16,392 $ 30,143 $ 27,732 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) 2023 2022 2021 Statutory rates applied to income before income taxes $ 15,274 $ 25,095 $ 24,949 State income taxes, net of Federal tax benefit 2,042 4,888 3,836 Nondeductible compensation expense 878 368 358 Other (1,802) (208) (1,411) $ 16,392 $ 30,143 $ 27,732 Our effective tax rate differs from the federal statutory rate primarily due to state income taxes. 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) 2023 2022 Deferred tax assets: Property and equipment $ 8,183 $ 7,414 Lease liabilities 54,390 55,322 Accrued liabilities 11,899 11,786 Retirement benefits 136 60 State tax credits 1,710 1,158 Other 531 702 Total deferred tax assets 76,849 76,442 Deferred tax liabilities: Inventory related 9,145 7,058 Right-of-use lease assets 51,123 53,320 Other 940 563 Total deferred tax liabilities 61,208 60,941 Net deferred tax assets $ 15,641 $ 15,501 We review our deferred tax assets to determine the need for a valuation allowance. Based on evidence, we concluded 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 2020. 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, 2023 | |
Leases [Abstract] | |
Leases | Leases: We have operating leases for retail stores, offices, warehouses, and certain equipment. Our leases have remaining lease terms of between 1 year and 12 years, some of which include options to extend the leases for up to 20 years. We determine if an arrangement is or contains a lease at lease inception. Our leases do not have any residual value guarantees or any restrictions or covenants imposed by lessors. We have lease agreements for real estate with lease and non-lease components, which are accounted for separately. As of December 31, 2023, there were no leases for retail locations which had not yet commenced. The table below presents the operating lease assets and liabilities recognized on the consolidated balance sheets as of December 31: (in thousands) 2023 2022 Operating Lease Assets: Right-of use lease assets $ 202,306 $ 207,390 Operating Lease Liabilities: Current lease liabilities $ 37,357 $ 34,442 Non-current lease liabilities 180,397 186,845 Total operating lease liabilities $ 217,754 $ 221,287 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: 2023 2022 Weighted-average remaining lease term 6.7 years 7.6 years Weighted-average discount rate 6.07 % 5.52 % 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, 2023: (in thousands) Operating Leases 2024 $ 49,177 2025 45,848 2026 39,904 2027 33,279 2028 28,198 Thereafter 70,454 Total undiscounted future minimum lease payments 266,860 Less: difference between undiscounted lease payments and discounted operating lease liabilities (49,106) Total operating lease liabilities $ 217,754 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) 2023 2022 2021 Operating lease cost $ 49,148 $ 46,449 $ 46,774 Variable lease cost 6,170 6,969 6,680 Total lease expense $ 55,318 $ 53,418 $ 53,454 Supplemental cash flow information related to leases is as follows: Year Ended December 31, (In thousands) 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 46,622 $ 40,513 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 53,419 $ 25,419 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity: Common Stock has a preferential dividend rate of at least 105% of the dividend paid on Class A Common Stock. Class A Common Stock has greater voting rights which include: voting as a separate class for the election of 75% of the total number of directors and on all other matters subject to shareholder vote, each share of Class A Common Stock has ten votes and votes with the Common Stock as a single class. Class A Common Stock is convertible at the holder’s option at any time into Common Stock on a 1-for-1 basis; Common Stock is not convertible into Class A Common Stock. A special cash dividend of $1.00 for Common Stock and $0.95 for Class A Common Stock was paid in the fourth quarter of 2023 and 2022. Total dividends paid on Common Stock were $32,612,000, $31,432,000 and $48,837,000 in 2023, 2022 and 2021, respectively. Total dividends paid on Class A Common Stock were $2,628,000, $2,516,000 and $3,609,000 in 2023, 2022 and 2021, respectively. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Benefit Plans | 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 was frozen as of December 31, 2015 and no additional benefits were earned or have been accrued after that date. 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 following table summarizes information about our SERP. (In thousands) 2023 2022 Change in benefit obligation: Benefit obligation at beginning of the year $ 6,806 $ 8,756 Interest cost 361 241 Actuarial (gains) losses 303 (1,832) Benefits paid (380) (359) Benefit obligation at end of year 7,090 6,806 Change in plan assets: Employer contribution 380 359 Benefits paid (380) (359) Fair value of plan assets at end of year — — Funded status of the plan – (underfunded) $ (7,090) $ (6,806) Accumulated benefit obligations $ 7,090 $ 6,806 Amounts recognized in the consolidated balance sheets consist of: (In thousands) 2023 2022 Current liabilities $ (496) $ (464) Noncurrent liabilities (6,594) (6,342) $ (7,090) $ (6,806) The net actuarial loss recognized in accumulated other comprehensive income (loss) before the effect of income taxes was $451,000 in 2023 and $148,000 in 2022. Net pension cost included the following components: (In thousands) 2023 2022 2021 Interest cost on projected benefit obligation $ 361 $ 241 $ 213 Amortization of actuarial loss — 218 257 Net pension costs $ 361 $ 459 $ 470 There are no actuarial loss amounts expected to be amortized from accumulated other comprehensive loss into net periodic cost in 2024. 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: 2023 2022 2021 Discount rate 5.43 % 2.80 % 2.41 % 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: 2023 2022 Discount rate 5.14 % 5.43 % 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, 2023. (In thousands) 2024 2025 2026 2027 2028 2029-2033 Benefit Payments $ 496 $ 539 $ 592 $ 610 $ 592 $ 2,729 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 per participant of $13,200 in 2023 and $12,200 in 2022 and $11,600 in 2021. We expensed employer contributions of approximately $6,050,000, $6,431,000 and $6,046,000 in 2023, 2022 and 2021, 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 $72,000, $69,000 and $74,000 in 2023, 2022, and 2021, 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 $9,772,000 and $8,152,000 at December 31, 2023 and 2022, respectively, and are included in other assets. The related liability under the plans of approximately $9,783,000 and $8,158,000 at December 31, 2023 and 2022, 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, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | 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) 2023 2022 2021 Beginning balance $ (756) $ (2,293) $ (2,560) Other comprehensive income (loss) Defined benefit pension plan: Net gain (loss) during year (303) 1,832 99 Amortization of net loss (1) — 218 257 (303) 2,050 356 Tax expense (benefit) (76) 513 89 Total other comprehensive (loss) income (227) 1,537 267 Ending balance $ (983) $ (756) $ (2,293) (1) |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation Plans | Stock-Based Compensation Plans: We have issued and outstanding awards under two employee compensation plans, the 2021 Long-Term Incentive Plan (the “2021 LTIP Plan”) and the 2014 Long Term Incentive Plan (the “2014 LTIP Plan”). No new awards may be granted under the 2014 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, 2023, approximately 1,003,000 shares were available for awards under the 2021 LTIP Plan. The following table summarizes our equity award activity during the years ended December 31, 2023, 2022, and 2021: Service-Based Performance-Based Shares or Units (#) Weighted-Average Shares or Units(#) Weighted-Average Outstanding at December 31, 2020 239,281 20.77 213,895 21.08 Granted 120,221 33.29 93,685 32.83 Awards vested or rights exercised (130,323) 21.28 (56,578) 22.95 Forfeited (10,097) 25.85 — — Units forfeited due to performance — — 77,265 20.42 Outstanding at December 31, 2021 219,082 27.10 328,267 23.96 Granted 155,681 28.88 103,104 28.86 Awards vested or rights exercised (122,680) 27.13 (34,940) 20.28 Forfeited (14,781) 28.55 (19,033) 26.12 Additional units earned due to performance — — 59,249 32.83 Outstanding at December 31, 2022 237,302 28.16 436,647 26.56 Granted 177,098 33.02 106,557 33.08 Awards vested or rights exercised (147,930) 27.12 (190,700) 20.50 Forfeited (16,535) 30.93 (3,070) 32.75 Additional units earned due to performance — — 3,753 28.86 Outstanding at December 31, 2023 249,935 32.05 353,187 31.77 Restricted units expected to vest 249,935 32.05 328,573 31.67 The total fair value of service-based restricted stock awards that vested in 2023, 2022 and 2021 was approximately $3,789,000, $3,338,000 and $6,069,000, respectively. The aggregate intrinsic value of outstanding restricted stock awards was $8,873,000 at December 31, 2023. The restrictions on the service-based awards generally lapse or vest annually, primarily over one-year or three-year periods. The total fair value of performance-based restricted stock awards that vested in 2023, 2022 and 2021 was approximately $7,182,000, $993,000 and $2,046,000, respectively. The aggregate intrinsic value of outstanding performance awards at December 31, 2023 expected to vest was $11,664,000. The performance awards are based on one-year performance periods but cliff vest in approximately three years from grant date. The compensation fo |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share: The following is a reconciliation of the income 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: 2023 2022 2021 Common: Distributed earnings $ 32,612 $ 31,432 $ 48,837 Undistributed earnings 19,491 51,290 35,653 Basic 52,103 82,722 84,490 Class A Common earnings 4,216 6,636 6,313 Diluted $ 56,319 $ 89,358 $ 90,803 Class A Common: Distributed earnings $ 2,628 $ 2,516 $ 3,609 Undistributed earnings 1,588 4,120 2,704 $ 4,216 $ 6,636 $ 6,313 Denominator: 2023 2022 2021 Common: Weighted average shares outstanding - basic 14,988 15,225 16,710 Assumed conversion of Class A Common Stock 1,282 1,284 1,330 Dilutive awards and common stock equivalents 504 529 503 Total weighted average diluted Common Stock 16,774 17,038 18,543 Class A Common: Weighted average shares outstanding 1,282 1,284 1,330 Basic net earnings per share Common Stock $ 3.48 $ 5.43 $ 5.06 Class A Common Stock $ 3.29 $ 5.17 $ 4.75 Diluted net earnings per share Common Stock $ 3.36 $ 5.24 $ 4.90 Class A Common Stock $ 3.25 $ 5.07 $ 4.69 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-09, 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 Additions Deductions Balance at Year ended December 31, 2023: Refund on estimated returns and allowances $ 2,588 $ 20,722 $ 21,341 $ 1,969 Year ended December 31, 2022: Refund on estimated returns and allowances $ 2,447 $ 26,802 $ 26,661 $ 2,588 Year ended December 31, 2021: Reserve for cancelled sales and allowances $ 2,378 $ 25,563 $ 25,494 $ 2,447 (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, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [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. |
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 include 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. Our cash is held in Federal Deposit Insurance Corporation (“FDIC”) insured accounts at various banks which at times may exceed federally insured amounts. |
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. |
Other Current Assets | Other Current Assets: Other current assets include receivables from third-party finance companies used by customers to finance purchases and receivables from landlords for tenant incentives. |
Property and Equipment | Property and Equipment: |
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. |
Contingencies | Contingencies: We are involved in lawsuits, claims and proceedings incident to the ordinary course of our business. We review the need for any loss contingency reserves and establish reserves when, in the opinion of management, it is probable that a matter would result in liability, and the amount of loss, if any, can be reasonably estimated. Generally, in view of the inherent difficulty of predicting the outcome of these matters, it may not be possible to determine whether any loss is probable or to reasonably estimate the amount of the loss until the matter is close to resolution, in which case no reserve is established until that time. Claims against us could result in costly litigation, require significant amounts of management time and result in the diversion of significant operational resources. We expense any litigation-related amounts as incurred. The results of these lawsuits, claims and proceedings cannot be predicted with certainty. However, we believe that the ultimate resolution of these current matters will not have a material adverse effect on our Consolidated Financial Statements taken as a whole. |
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 include 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 have a loyalty program. 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: |
Leases | Leases: 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: |
Interest Income, net | Interest Income, net: |
Other Income, net | Other Income, net: |
Self-Insurance | Self-Insurance: |
Fair Value 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. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets: |
Earnings Per Share | 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 $983,000 and $756,000 at December 31, 2023 and 2022, respectively. See Note 11, "Accumulated Other Comprehensive Loss" 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, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of 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, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of 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, 2023 2022 2021 Net Sales % of Net Sales Net Sales % of Net Sales Net Sales % of Net Sales Merchandise: Case Goods Bedroom Furniture $ 132,072 15.3 % $ 168,432 16.1 % $ 156,033 15.4 % Dining Room Furniture 97,969 11.4 118,139 11.3 109,522 10.8 Occasional 68,592 8.0 85,278 8.1 86,849 8.6 298,633 34.6 371,849 35.5 352,404 34.8 Upholstery 370,921 43.0 445,306 42.5 433,525 42.8 Mattresses 74,798 8.7 85,208 8.1 90,224 8.9 Accessories and Other (1) 117,781 13.7 144,852 13.8 136,646 13.5 $ 862,133 100.0 % $ 1,047,215 100.0 % $ 1,012,799 100.0 % (1) |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment are summarized as follows: (In thousands) 2023 2022 Land and improvements $ 37,261 $ 35,015 Buildings and improvements 254,995 217,293 Furniture and fixtures 100,857 98,305 Equipment 64,735 61,270 Construction in progress 5,581 5,423 463,429 417,306 Less accumulated depreciation (291,841) (279,831) Property and equipment, net $ 171,588 $ 137,475 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Accrued liabilities and other liabilities consist of the following: (In thousands) 2023 2022 Accrued liabilities: Employee compensation, related taxes and benefits $ 19,312 $ 22,262 Taxes other than income and withholding 11,293 8,862 Self-insurance reserves 5,593 5,892 Other 10,091 11,660 $ 46,289 $ 48,676 Other liabilities: Deferred compensation 9,783 8,158 SERP, noncurrent 6,594 6,342 Self-insurance reserves 2,093 2,204 Other 8,636 1,669 $ 27,106 $ 18,373 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | The provision for income taxes for the years ended December 31 consist of the following: (In thousands) 2023 2022 2021 Current Federal $ 14,015 $ 25,318 $ 22,832 State 3,548 4,241 4,666 17,563 29,559 27,498 Deferred Federal 474 (628) 589 State (1,645) 1,212 (355) (1,171) 584 234 Total income tax expense $ 16,392 $ 30,143 $ 27,732 |
Schedule of 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) 2023 2022 2021 Statutory rates applied to income before income taxes $ 15,274 $ 25,095 $ 24,949 State income taxes, net of Federal tax benefit 2,042 4,888 3,836 Nondeductible compensation expense 878 368 358 Other (1,802) (208) (1,411) $ 16,392 $ 30,143 $ 27,732 |
Schedule of Deferred Tax Assets and Liabilities | 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) 2023 2022 Deferred tax assets: Property and equipment $ 8,183 $ 7,414 Lease liabilities 54,390 55,322 Accrued liabilities 11,899 11,786 Retirement benefits 136 60 State tax credits 1,710 1,158 Other 531 702 Total deferred tax assets 76,849 76,442 Deferred tax liabilities: Inventory related 9,145 7,058 Right-of-use lease assets 51,123 53,320 Other 940 563 Total deferred tax liabilities 61,208 60,941 Net deferred tax assets $ 15,641 $ 15,501 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of 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) 2023 2022 Operating Lease Assets: Right-of use lease assets $ 202,306 $ 207,390 Operating Lease Liabilities: Current lease liabilities $ 37,357 $ 34,442 Non-current lease liabilities 180,397 186,845 Total operating lease liabilities $ 217,754 $ 221,287 |
Schedule of 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: 2023 2022 Weighted-average remaining lease term 6.7 years 7.6 years Weighted-average discount rate 6.07 % 5.52 % |
Schedule of Reconciliation of 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, 2023: (in thousands) Operating Leases 2024 $ 49,177 2025 45,848 2026 39,904 2027 33,279 2028 28,198 Thereafter 70,454 Total undiscounted future minimum lease payments 266,860 Less: difference between undiscounted lease payments and discounted operating lease liabilities (49,106) Total operating lease liabilities $ 217,754 |
Schedule 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) 2023 2022 2021 Operating lease cost $ 49,148 $ 46,449 $ 46,774 Variable lease cost 6,170 6,969 6,680 Total lease expense $ 55,318 $ 53,418 $ 53,454 |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases is as follows: Year Ended December 31, (In thousands) 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 46,622 $ 40,513 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 53,419 $ 25,419 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Change in Benefit Obligation, Plan Assets and Funded Status | The following table summarizes information about our SERP. (In thousands) 2023 2022 Change in benefit obligation: Benefit obligation at beginning of the year $ 6,806 $ 8,756 Interest cost 361 241 Actuarial (gains) losses 303 (1,832) Benefits paid (380) (359) Benefit obligation at end of year 7,090 6,806 Change in plan assets: Employer contribution 380 359 Benefits paid (380) (359) Fair value of plan assets at end of year — — Funded status of the plan – (underfunded) $ (7,090) $ (6,806) Accumulated benefit obligations $ 7,090 $ 6,806 |
Schedule of Amounts Recognized in Consolidated Balance Sheets | Amounts recognized in the consolidated balance sheets consist of: (In thousands) 2023 2022 Current liabilities $ (496) $ (464) Noncurrent liabilities (6,594) (6,342) $ (7,090) $ (6,806) |
Schedule of Net Pension Costs | Net pension cost included the following components: (In thousands) 2023 2022 2021 Interest cost on projected benefit obligation $ 361 $ 241 $ 213 Amortization of actuarial loss — 218 257 Net pension costs $ 361 $ 459 $ 470 |
Schedule of 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: 2023 2022 2021 Discount rate 5.43 % 2.80 % 2.41 % 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: 2023 2022 Discount rate 5.14 % 5.43 % Rate of compensation increase n/a n/a |
Schedule of 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, 2023. (In thousands) 2024 2025 2026 2027 2028 2029-2033 Benefit Payments $ 496 $ 539 $ 592 $ 610 $ 592 $ 2,729 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [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) 2023 2022 2021 Beginning balance $ (756) $ (2,293) $ (2,560) Other comprehensive income (loss) Defined benefit pension plan: Net gain (loss) during year (303) 1,832 99 Amortization of net loss (1) — 218 257 (303) 2,050 356 Tax expense (benefit) (76) 513 89 Total other comprehensive (loss) income (227) 1,537 267 Ending balance $ (983) $ (756) $ (2,293) (1) |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Equity Award Activity | The following table summarizes our equity award activity during the years ended December 31, 2023, 2022, and 2021: Service-Based Performance-Based Shares or Units (#) Weighted-Average Shares or Units(#) Weighted-Average Outstanding at December 31, 2020 239,281 20.77 213,895 21.08 Granted 120,221 33.29 93,685 32.83 Awards vested or rights exercised (130,323) 21.28 (56,578) 22.95 Forfeited (10,097) 25.85 — — Units forfeited due to performance — — 77,265 20.42 Outstanding at December 31, 2021 219,082 27.10 328,267 23.96 Granted 155,681 28.88 103,104 28.86 Awards vested or rights exercised (122,680) 27.13 (34,940) 20.28 Forfeited (14,781) 28.55 (19,033) 26.12 Additional units earned due to performance — — 59,249 32.83 Outstanding at December 31, 2022 237,302 28.16 436,647 26.56 Granted 177,098 33.02 106,557 33.08 Awards vested or rights exercised (147,930) 27.12 (190,700) 20.50 Forfeited (16,535) 30.93 (3,070) 32.75 Additional units earned due to performance — — 3,753 28.86 Outstanding at December 31, 2023 249,935 32.05 353,187 31.77 Restricted units expected to vest 249,935 32.05 328,573 31.67 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | The following is a reconciliation of the income 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: 2023 2022 2021 Common: Distributed earnings $ 32,612 $ 31,432 $ 48,837 Undistributed earnings 19,491 51,290 35,653 Basic 52,103 82,722 84,490 Class A Common earnings 4,216 6,636 6,313 Diluted $ 56,319 $ 89,358 $ 90,803 Class A Common: Distributed earnings $ 2,628 $ 2,516 $ 3,609 Undistributed earnings 1,588 4,120 2,704 $ 4,216 $ 6,636 $ 6,313 Denominator: 2023 2022 2021 Common: Weighted average shares outstanding - basic 14,988 15,225 16,710 Assumed conversion of Class A Common Stock 1,282 1,284 1,330 Dilutive awards and common stock equivalents 504 529 503 Total weighted average diluted Common Stock 16,774 17,038 18,543 Class A Common: Weighted average shares outstanding 1,282 1,284 1,330 Basic net earnings per share Common Stock $ 3.48 $ 5.43 $ 5.06 Class A Common Stock $ 3.29 $ 5.17 $ 4.75 Diluted net earnings per share Common Stock $ 3.36 $ 5.24 $ 4.90 Class A Common Stock $ 3.25 $ 5.07 $ 4.69 |
Description of Business and S_4
Description of Business and Summary of Significant Accounting Policies - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) store state | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Number of showrooms | store | 124 | ||
Number of states | state | 16 | ||
Settlement period for credit and debit card transactions | 5 days | ||
Purchasing, warehousing, delivery and other distribution costs | $ 92,363,000 | $ 101,486,000 | $ 94,239,000 |
Prepaid advertising costs | 1,064,000 | 118,000 | |
Advertising expense | 43,448,000 | 51,381,000 | 49,338,000 |
Interest expense | 162,000 | 154,000 | 152,000 |
Self insurance reserve | 7,686,000 | 8,096,000 | |
Impairment loss | $ 0 | 0 | $ 0 |
Percentage of earnings distributed as dividends in earnings per share calculation | 100% | ||
Accumulated other comprehensive loss | $ (983,000) | $ (756,000) |
Description of Business and S_5
Description of Business and Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Property and Equipment (Details) | Dec. 31, 2023 |
Buildings | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 25 years |
Buildings | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 33 years |
Improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 15 years |
Furniture and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 15 years |
Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 15 years |
Revenues and Segment Reportin_2
Revenues and Segment Reporting - Schedule of Revenues Disaggregated by Major Product Category and Service (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Abstract] | |||
Net sales | $ 862,133 | $ 1,047,215 | $ 1,012,799 |
Percentage of net sales | 100% | 100% | 100% |
Case Goods | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | $ 298,633 | $ 371,849 | $ 352,404 |
Percentage of net sales | 34.60% | 35.50% | 34.80% |
Bedroom Furniture | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | $ 132,072 | $ 168,432 | $ 156,033 |
Percentage of net sales | 15.30% | 16.10% | 15.40% |
Dining Room Furniture | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | $ 97,969 | $ 118,139 | $ 109,522 |
Percentage of net sales | 11.40% | 11.30% | 10.80% |
Occasional | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | $ 68,592 | $ 85,278 | $ 86,849 |
Percentage of net sales | 8% | 8.10% | 8.60% |
Upholstery | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | $ 370,921 | $ 445,306 | $ 433,525 |
Percentage of net sales | 43% | 42.50% | 42.80% |
Mattresses | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | $ 74,798 | $ 85,208 | $ 90,224 |
Percentage of net sales | 8.70% | 8.10% | 8.90% |
Accessories and Other | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | $ 117,781 | $ 144,852 | $ 136,646 |
Percentage of net sales | 13.70% | 13.80% | 13.50% |
Revenues and Segment Reportin_3
Revenues and Segment Reporting - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Disaggregation of Revenue [Line Items] | |||
Customer deposits | $ 35,837 | $ 47,969 | |
Customer deposits not recognized through net sales | 293 | ||
Net sales | 862,133 | 1,047,215 | $ 1,012,799 |
Costs associated with deliveries | $ 42,361 | 48,071 | 45,914 |
Number of reportable segments | segment | 1 | ||
Shipping and Handling | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 36,187 | 52,199 | $ 50,002 |
Other Current Assets | |||
Disaggregation of Revenue [Line Items] | |||
Return inventory | 624 | 875 | |
Accrued Liabilities | |||
Disaggregation of Revenue [Line Items] | |||
Refunds for returns and allowances | $ 1,969 | $ 2,588 |
Inventories (Details)
Inventories (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |||
Excess of replacement or current costs over stated LIFO value | $ 36,133 | $ 45,545 | |
Impact of LIFO vs. FIFO valuation method | 9,412 | $ (10,841) | $ (12,310) |
LIFO inventory amount | $ 410 | ||
LIFO inventory, diluted (in dollars per share) | $ 0.02 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property and Equipment [Abstract] | ||
Property and equipment | $ 463,429 | $ 417,306 |
Less accumulated depreciation | (291,841) | (279,831) |
Property and equipment, net | 171,588 | 137,475 |
Land and improvements | ||
Property and Equipment [Abstract] | ||
Property and equipment | 37,261 | 35,015 |
Buildings and improvements | ||
Property and Equipment [Abstract] | ||
Property and equipment | 254,995 | 217,293 |
Furniture and fixtures | ||
Property and Equipment [Abstract] | ||
Property and equipment | 100,857 | 98,305 |
Equipment | ||
Property and Equipment [Abstract] | ||
Property and equipment | 64,735 | 61,270 |
Construction in progress | ||
Property and Equipment [Abstract] | ||
Property and equipment | $ 5,581 | $ 5,423 |
Credit Arrangement (Details)
Credit Arrangement (Details) - Revolving Credit Facility [Member] - USD ($) | 1 Months Ended | |
Oct. 31, 2022 | Dec. 31, 2023 | |
Credit Agreement [Abstract] | ||
Line of credit facility, maximum borrowing capacity | $ 80,000,000 | |
Debt instrument, maturity date | Oct. 24, 2027 | |
Net availability | $ 80,000,000 | |
Covenant limit for unused availability to pay dividends | $ 12,500,000 | |
Borrowing base | 130,507,000 | |
Outstanding letters of credit | $ 0 |
Accrued Liabilities and Other_3
Accrued Liabilities and Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accrued liabilities: | ||
Employee compensation, related taxes and benefits | $ 19,312 | $ 22,262 |
Taxes other than income and withholding | 11,293 | 8,862 |
Self-insurance reserves | 5,593 | 5,892 |
Other | 10,091 | 11,660 |
Accrued liabilities | 46,289 | 48,676 |
Other liabilities: | ||
Deferred compensation | 9,783 | 8,158 |
SERP, noncurrent | 6,594 | 6,342 |
Self-insurance reserves | 2,093 | 2,204 |
Other | 8,636 | 1,669 |
Other liabilities | $ 27,106 | $ 18,373 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current | |||
Federal | $ 14,015 | $ 25,318 | $ 22,832 |
State | 3,548 | 4,241 | 4,666 |
Current income tax expense | 17,563 | 29,559 | 27,498 |
Deferred | |||
Federal | 474 | (628) | 589 |
State | (1,645) | 1,212 | (355) |
Deferred income tax expense (benefit) | (1,171) | 584 | 234 |
Total income tax expense | $ 16,392 | $ 30,143 | $ 27,732 |
Income Taxes - Schedule of Stat
Income Taxes - Schedule of Statutory to Effective Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Statutory rates applied to income before income taxes | $ 15,274 | $ 25,095 | $ 24,949 |
State income taxes, net of Federal tax benefit | 2,042 | 4,888 | 3,836 |
Nondeductible compensation expense | 878 | 368 | 358 |
Other | (1,802) | (208) | (1,411) |
Total income tax expense | $ 16,392 | $ 30,143 | $ 27,732 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Property and equipment | $ 8,183 | $ 7,414 |
Lease liabilities | 54,390 | 55,322 |
Accrued liabilities | 11,899 | 11,786 |
Retirement benefits | 136 | 60 |
State tax credits | 1,710 | 1,158 |
Other | 531 | 702 |
Total deferred tax assets | 76,849 | 76,442 |
Deferred tax liabilities: | ||
Inventory related | 9,145 | 7,058 |
Right-of-use lease assets | 51,123 | 53,320 |
Other | 940 | 563 |
Total deferred tax liabilities | 61,208 | 60,941 |
Net deferred tax assets | $ 15,641 | $ 15,501 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Dec. 31, 2023 |
Minimum | |
Sale Leaseback Transaction [Line Items] | |
Remaining lease term | 1 year |
Maximum | |
Sale Leaseback Transaction [Line Items] | |
Remaining lease term | 12 years |
Renewal term | 20 years |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Assets and Liabilities Recognized (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Operating Lease Assets: | ||
Right-of use lease assets | $ 202,306 | $ 207,390 |
Operating Lease Liabilities: | ||
Current lease liabilities | 37,357 | 34,442 |
Non-current lease liabilities | 180,397 | 186,845 |
Total operating lease liabilities | $ 217,754 | $ 221,287 |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Remaining Lease Term and Discount Rate for Operating Leases (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Weighted-average remaining lease term | 6 years 8 months 12 days | 7 years 7 months 6 days |
Weighted-average discount rate | 6.07% | 5.52% |
Leases - Schedule of Reconcilia
Leases - Schedule of Reconciliation of Undiscounted Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2024 | $ 49,177 | |
2025 | 45,848 | |
2026 | 39,904 | |
2027 | 33,279 | |
2028 | 28,198 | |
Thereafter | 70,454 | |
Total undiscounted future minimum lease payments | 266,860 | |
Less: difference between undiscounted lease payments and discounted operating lease liabilities | (49,106) | |
Total operating lease liabilities | $ 217,754 | $ 221,287 |
Leases - Schedule of Lease Expe
Leases - Schedule of Lease Expense (Details) - Selling, General and Administrative Expenses - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Sale Leaseback Transaction [Line Items] | |||
Operating lease cost | $ 49,148 | $ 46,449 | $ 46,774 |
Variable lease cost | 6,170 | 6,969 | 6,680 |
Total lease expense | $ 55,318 | $ 53,418 | $ 53,454 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 46,622 | $ 40,513 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | $ 53,419 | $ 25,419 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 $ / shares | Dec. 31, 2023 USD ($) vote shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Class of Stock [Line Items] | ||||
Common stock, conversion ratio | shares | 1 | |||
Class A Common Stock | ||||
Class of Stock [Line Items] | ||||
Preferential dividend rate as a percentage of dividend paid on Class A Common Stock | 105% | |||
Percentage of directors that can be voted on in election | 75% | |||
Number of votes per share | vote | 10 | |||
Cash dividend paid (in dollars per share) | $ / shares | $ 0.95 | |||
Cash dividends paid | $ | $ 2,628 | $ 2,516 | $ 3,609 | |
Common Stock | ||||
Class of Stock [Line Items] | ||||
Cash dividend paid (in dollars per share) | $ / shares | $ 1 | |||
Cash dividends paid | $ | $ 32,612 | $ 31,432 | $ 48,837 |
Benefit Plans - Narrative (Deta
Benefit Plans - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Net actuarial loss recognized in accumulated other comprehensive income (loss) | $ 451,000 | $ 148,000 | |
Deferred Compensation, Excluding Share-based Payments and Retirement Benefits | |||
Other Plans [Abstract] | |||
Employer matching contribution | 72,000 | 69,000 | $ 74,000 |
Deferred Compensation, Excluding Share-based Payments and Retirement Benefits | Other Noncurrent Assets | |||
Other Plans [Abstract] | |||
Plans' assets | 9,772,000 | 8,152,000 | |
Deferred Compensation, Excluding Share-based Payments and Retirement Benefits | Other Liabilities | |||
Other Plans [Abstract] | |||
Recorded liability | $ 9,783,000 | 8,158,000 | |
SERP | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Percentage of final average earnings | 55% | ||
Maximum annual retirement benefits paid to participant from all sources | $ 125,000 | ||
Employee Savings/Retirement 401(k) Plan | |||
Other Plans [Abstract] | |||
Employer matching contribution percentage | 100% | ||
Employer matching contribution, percent of employee contribution | 4% | ||
Maximum employer matching contribution per participant | $ 13,200 | 12,200 | 11,600 |
Employer contributions | $ 6,050,000 | $ 6,431,000 | $ 6,046,000 |
Benefit Plans - Schedule of Cha
Benefit Plans - Schedule of Change in Benefit Obligation, Plan Assets and Funded Status (Details) - SERP - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of the year | $ 6,806 | $ 8,756 | |
Interest cost | 361 | 241 | $ 213 |
Actuarial (gains) losses | 303 | (1,832) | |
Benefits paid | (380) | (359) | |
Benefit obligation at end of year | 7,090 | 6,806 | $ 8,756 |
Employer contribution | 380 | 359 | |
Benefits paid | (380) | (359) | |
Fair value of plan assets at end of year | 0 | 0 | |
Funded status of the plan – (underfunded) | (7,090) | (6,806) | |
Accumulated benefit obligations | $ 7,090 | $ 6,806 |
Benefit Plans - Schedule of Amo
Benefit Plans - Schedule of Amounts Recognized in Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Amounts Recognized in Consolidated Balance Sheets [Abstract] | ||
Current liabilities | $ (496) | $ (464) |
Noncurrent liabilities | (6,594) | (6,342) |
Total amounts recognized | $ (7,090) | $ (6,806) |
Benefit Plans - Schedule of Net
Benefit Plans - Schedule of Net Pension Costs (Details) - SERP - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Net Pension Costs [Abstract] | |||
Interest cost on projected benefit obligation | $ 361 | $ 241 | $ 213 |
Amortization of actuarial loss | 0 | 218 | 257 |
Net pension costs | $ 361 | $ 459 | $ 470 |
Benefit Plans - Schedule of Ass
Benefit Plans - Schedule of Assumptions (Details) - SERP | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Assumptions Used to Determine Net Pension Costs [Abstract] | |||
Discount rate | 5.43% | 2.80% | 2.41% |
Assumptions Used to Determine Benefit Obligations [Abstract] | |||
Discount rate | 5.14% | 5.43% |
Benefit Plans - Schedule of Exp
Benefit Plans - Schedule of Expected Future Benefit Payments (Details) - SERP $ in Thousands | Dec. 31, 2023 USD ($) |
Benefit Payments | |
2024 | $ 496 |
2025 | 539 |
2026 | 592 |
2027 | 610 |
2028 | 592 |
2029-2033 | $ 2,729 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 289,399 | $ 255,970 | |
Defined benefit pension plan: | |||
Ending balance | 308,366 | 289,399 | $ 255,970 |
Accumulated Other Comprehensive Loss | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (756) | (2,293) | (2,560) |
Defined benefit pension plan: | |||
Ending balance | (983) | (756) | (2,293) |
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent | |||
Defined benefit pension plan: | |||
Net gain (loss) during year | (303) | 1,832 | 99 |
Amortization of net loss | 0 | 218 | 257 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | |||
Defined benefit pension plan: | |||
Other comprehensive income (loss), before tax | (303) | 2,050 | 356 |
Tax expense (benefit) | (76) | 513 | 89 |
Total other comprehensive (loss) income | $ (227) | $ 1,537 | $ 267 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) plan shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Stock-Based Compensation Plans [Abstract] | |||
Number of employee compensation plans | plan | 2 | ||
Tax (benefit) expense recognized | $ (766) | $ (73) | $ (1,011) |
Cost related to unvested equity awards | $ 6,130 | ||
Weighted average period for recognition | 1 year 8 months 12 days | ||
Selling, General and Administrative Expenses | |||
Stock-Based Compensation Plans [Abstract] | |||
Selling, general, and administrative expense | $ 8,010 | 7,195 | 8,213 |
Service-Based Restricted Stock Awards | |||
Stock-Based Compensation Plans [Abstract] | |||
Fair value of vested shares | 3,789 | 3,338 | 6,069 |
Aggregate intrinsic value of outstanding awards | $ 8,873 | ||
Service-Based Restricted Stock Awards | Minimum | |||
Stock-Based Compensation Plans [Abstract] | |||
Vesting period of awards | 1 year | ||
Service-Based Restricted Stock Awards | Maximum | |||
Stock-Based Compensation Plans [Abstract] | |||
Vesting period of awards | 3 years | ||
Performance-Based Restricted Stock Awards | |||
Stock-Based Compensation Plans [Abstract] | |||
Fair value of vested shares | $ 7,182 | $ 993 | $ 2,046 |
Aggregate intrinsic value of outstanding awards | $ 11,664 | ||
Performance period | 1 year | ||
Cliff vesting period | 3 years | ||
2021 LTIP Plan | |||
Stock-Based Compensation Plans [Abstract] | |||
Shares available for grant (in shares) | shares | 1,003,000 |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans - Schedule of Equity Award Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Service-Based Restricted Stock Awards | |||
Award Activity [Roll Forward] | |||
Outstanding, beginning balance (in shares) | 237,302 | 219,082 | 239,281 |
Granted (in shares) | 177,098 | 155,681 | 120,221 |
Awards vested or rights exercised (in shares) | (147,930) | (122,680) | (130,323) |
Forfeited (in shares) | (16,535) | (14,781) | (10,097) |
Units forfeited due to performance (in shares) | 0 | 0 | |
Additional units earned due to performance (in shares) | 0 | ||
Outstanding, ending balance (in shares) | 249,935 | 237,302 | 219,082 |
Expected to vest (in shares) | 249,935 | ||
Weighted-Average Award Price [Roll Forward] | |||
Outstanding, beginning balance (in dollars per share) | $ 28.16 | $ 27.10 | $ 20.77 |
Granted (in dollars per share) | 33.02 | 28.88 | 33.29 |
Awards vested or rights exercised (in dollars per share) | 27.12 | 27.13 | 21.28 |
Forfeited (in dollars per share) | 30.93 | 28.55 | 25.85 |
Units forfeited due to performance (in dollars per share) | 0 | 0 | |
Additional units earned due to performance (in dollars per share) | 0 | ||
Outstanding, ending balance (in dollars per share) | 32.05 | $ 28.16 | $ 27.10 |
Expected to vest (in dollars per share) | $ 32.05 | ||
Performance-Based Restricted Stock Awards | |||
Award Activity [Roll Forward] | |||
Outstanding, beginning balance (in shares) | 436,647 | 328,267 | 213,895 |
Granted (in shares) | 106,557 | 103,104 | 93,685 |
Awards vested or rights exercised (in shares) | (190,700) | (34,940) | (56,578) |
Forfeited (in shares) | (3,070) | (19,033) | 0 |
Units forfeited due to performance (in shares) | 59,249 | 77,265 | |
Additional units earned due to performance (in shares) | 3,753 | ||
Outstanding, ending balance (in shares) | 353,187 | 436,647 | 328,267 |
Expected to vest (in shares) | 328,573 | ||
Weighted-Average Award Price [Roll Forward] | |||
Outstanding, beginning balance (in dollars per share) | $ 26.56 | $ 23.96 | $ 21.08 |
Granted (in dollars per share) | 33.08 | 28.86 | 32.83 |
Awards vested or rights exercised (in dollars per share) | 20.50 | 20.28 | 22.95 |
Forfeited (in dollars per share) | 32.75 | 26.12 | 0 |
Units forfeited due to performance (in dollars per share) | 32.83 | 20.42 | |
Additional units earned due to performance (in dollars per share) | 28.86 | ||
Outstanding, ending balance (in dollars per share) | 31.77 | $ 26.56 | $ 23.96 |
Expected to vest (in dollars per share) | $ 31.67 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Common Stock | |||
Numerator: | |||
Distributed earnings | $ 32,612 | $ 31,432 | $ 48,837 |
Undistributed earnings | 19,491 | 51,290 | 35,653 |
Basic | 52,103 | 82,722 | 84,490 |
Diluted | $ 56,319 | $ 89,358 | $ 90,803 |
Denominator: | |||
Weighted average shares outstanding - basic (in shares) | 14,988 | 15,225 | 16,710 |
Assumed conversion of Class A Common Stock (in shares) | 1,282 | 1,284 | 1,330 |
Dilutive awards and common stock equivalents (in shares) | 504 | 529 | 503 |
Total weighted average diluted Common Stock (in shares) | 16,774 | 17,038 | 18,543 |
Basic net earnings per share | |||
Basic net earnings per share (in dollars per share) | $ 3.48 | $ 5.43 | $ 5.06 |
Diluted net earnings per share (in dollars per share) | $ 3.36 | $ 5.24 | $ 4.90 |
Class A Common Stock | |||
Numerator: | |||
Distributed earnings | $ 2,628 | $ 2,516 | $ 3,609 |
Undistributed earnings | 1,588 | 4,120 | 2,704 |
Basic | $ 4,216 | $ 6,636 | $ 6,313 |
Denominator: | |||
Weighted average shares outstanding (in shares) | 1,282 | 1,284 | 1,330 |
Basic net earnings per share | |||
Basic net earnings per share (in dollars per share) | $ 3.29 | $ 5.17 | $ 4.75 |
Diluted net earnings per share (in dollars per share) | $ 3.25 | $ 5.07 | $ 4.69 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Refund on estimated returns and allowances | |||
Valuation and Qualifying Accounts [Roll Forward] | |||
Balance at beginning of period | $ 2,588 | $ 2,447 | |
Additions charged to costs and expenses | 20,722 | 26,802 | |
Deductions describe | 21,341 | 26,661 | |
Balance at end of period | $ 1,969 | 2,588 | $ 2,447 |
Reserve for cancelled sales and allowances | |||
Valuation and Qualifying Accounts [Roll Forward] | |||
Balance at beginning of period | $ 2,447 | 2,378 | |
Additions charged to costs and expenses | 25,563 | ||
Deductions describe | 25,494 | ||
Balance at end of period | $ 2,447 |