Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 16, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Lumber Liquidators Holdings, Inc. | ||
Entity Central Index Key | 1,396,033 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 28,248,606 | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 403.8 | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current Assets: | ||
Cash and Cash Equivalents | $ 10,271 | $ 26,703 |
Merchandise Inventories | 301,892 | 244,402 |
Prepaid Expenses | 5,367 | 5,931 |
Refundable Income Taxes | 31,429 | 19,596 |
Deferred Tax Asset | 6,090 | 21,045 |
Other Current Assets | 5,346 | 5,111 |
Total Current Assets | 360,395 | 322,788 |
Property and Equipment, net | 115,004 | 121,997 |
Goodwill | 9,693 | 9,693 |
Other Assets | 3,542 | 1,724 |
Total Assets | 488,634 | 456,202 |
Current Liabilities: | ||
Accounts Payable | 120,647 | 55,247 |
Customer Deposits and Store Credits | 32,639 | 33,771 |
Accrued Compensation | 9,193 | 6,057 |
Sales and Income Tax Liabilities | 4,249 | 3,914 |
Other Current Liabilities | 19,984 | 28,755 |
Total Current Liabilities | 186,712 | 127,744 |
Other Long-Term Liabilities | 21,142 | 20,252 |
Deferred Tax Liability | 9,888 | 10,638 |
Revolving Credit Facility | 40,000 | 20,000 |
Total Liabilities | 257,742 | 178,634 |
Stockholders' Equity: | ||
Common Stock ($0.001 par value; 35,000,000 shares authorized; 31,102,436 and 29,913,274 shares issued and 28,248,606 and 27,088,460 shares outstanding at December 31, 2016 and 2015, respectively) | 31 | 30 |
Treasury Stock, at cost (2,853,830 and 2,824,814 shares, respectively) | (139,420) | (138,987) |
Additional Capital | 202,700 | 180,590 |
Retained Earnings | 169,037 | 237,600 |
Accumulated Other Comprehensive Loss | (1,456) | (1,665) |
Total Stockholders' Equity | 230,892 | 277,568 |
Total Liabilities and Stockholders' Equity | $ 488,634 | $ 456,202 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Common Stock, par value | $ 0.001 | $ 0.001 |
Common Stock, shares authorized | 35,000,000 | 35,000,000 |
Common Stock, shares, issued | 31,102,436 | 29,913,274 |
Common Stock, shares outstanding | 28,248,606 | 27,088,460 |
Treasury Stock, shares | 2,853,830 | 2,824,814 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
Net Sales | $ 960,588 | $ 978,776 | $ 1,047,419 |
Cost of Sales | 656,719 | 699,918 | 629,252 |
Gross Profit | 303,869 | 278,858 | 418,167 |
Selling, General and Administrative Expenses | 397,504 | 362,051 | 314,094 |
Operating (Loss) Income | (93,635) | (83,193) | 104,073 |
Other Expense (Income) | 638 | 234 | 490 |
Total (Loss) Income Before Income Taxes | (94,273) | (83,427) | 103,583 |
Income Tax (Benefit) Expense | (25,710) | (26,994) | 40,212 |
Net (Loss) Income | $ (68,563) | $ (56,433) | $ 63,371 |
Net (Loss) Income per Common Share Basic | $ (2.51) | $ (2.08) | $ 2.32 |
Net (Loss) Income per Common Share Diluted | $ (2.51) | $ (2.08) | $ 2.31 |
Weighted Average Common Shares Outstanding: | |||
Basic | 27,284,434 | 27,082,299 | 27,264,882 |
Diluted | 27,284,434 | 27,082,299 | 27,485,852 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net (Loss) Income | $ (68,563) | $ (56,433) | $ 63,371 |
Foreign Currency Translation Adjustments | 209 | (869) | (234) |
Total Other Comprehensive (Loss) Income | 209 | (869) | (234) |
Comprehensive (Loss) Income | $ (68,354) | $ (57,302) | $ 63,137 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Treasury Stock [Member] | Additional Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Beginning Balance at Dec. 31, 2013 | $ 30 | $ (85,382) | $ 164,581 | $ 230,662 | $ (562) | $ 309,329 |
Beginning Balance (in shares) at Dec. 31, 2013 | 27,557,570 | 2,133,307 | ||||
Stock-Based Compensation Expense | 5,744 | $ 5,744 | ||||
Exercise of Stock Options (in shares) | 149,707 | 149,707 | ||||
Exercise of Stock Options | 3,150 | $ 3,150 | ||||
Excess Tax Benefits on Stock Option Exercises | 4,004 | 4,004 | ||||
Release of Restricted Shares (in shares) | 45,503 | |||||
Common Stock Repurchased (in shares) | 683,473 | |||||
Common Stock Repurchased (in shares) | (683,473) | |||||
Common Stock Repurchased | $ (53,310) | (53,310) | ||||
Translation Adjustment | (234) | (234) | ||||
Net (Loss) Income | 63,371 | 63,371 | ||||
Ending Balance at Dec. 31, 2014 | $ 30 | $ (138,692) | 177,479 | 294,033 | (796) | 332,054 |
Ending Balance (in shares) at Dec. 31, 2014 | 27,069,307 | 2,816,780 | ||||
Stock-Based Compensation Expense | 4,080 | 4,080 | ||||
Excess Tax Benefits on Stock Option Exercises | (969) | (969) | ||||
Release of Restricted Shares (in shares) | 19,153 | |||||
Common Stock Repurchased (in shares) | 8,034 | |||||
Common Stock Repurchased | $ (295) | (295) | ||||
Translation Adjustment | (869) | (869) | ||||
Net (Loss) Income | (56,433) | (56,433) | ||||
Ending Balance at Dec. 31, 2015 | $ 30 | $ (138,987) | 180,590 | 237,600 | (1,665) | 277,568 |
Ending Balance (in shares) at Dec. 31, 2015 | 27,088,460 | 2,824,814 | ||||
Stock-Based Compensation Expense | 5,487 | $ 5,487 | ||||
Exercise of Stock Options (in shares) | 58,774 | 60,781 | ||||
Exercise of Stock Options | 539 | $ 539 | ||||
Excess Tax Benefits on Stock Option Exercises | (675) | (675) | ||||
Stock Issued upon Legal Settlement | $ 1 | 16,759 | 16,760 | |||
Stock Issued upon Legal Settlement (in shares) | 1,000,000 | |||||
Release of Restricted Shares (in shares) | 101,372 | |||||
Common Stock Repurchased (in shares) | 29,016 | |||||
Common Stock Repurchased | $ (433) | (433) | ||||
Translation Adjustment | 209 | 209 | ||||
Net (Loss) Income | (68,563) | (68,563) | ||||
Ending Balance at Dec. 31, 2016 | $ 31 | $ (139,420) | $ 202,700 | $ 169,037 | $ (1,456) | $ 230,892 |
Ending Balance (in shares) at Dec. 31, 2016 | 28,248,606 | 2,853,830 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Flows from Operating Activities: | |||
Net (Loss) Income | $ (68,563) | $ (56,433) | $ 63,371 |
Adjustments to Reconcile Net (Loss) Income to Net Cash Provided by Operating Activities: | |||
Depreciation and Amortization | 17,505 | 17,392 | 14,714 |
Deferred Income Taxes | 14,205 | (12,064) | (152) |
Stock-Based Compensation Expense | 5,568 | 3,941 | 5,593 |
Stock-Based Portion of Provision for Securities Class Action | 16,760 | ||
Impairment Charges related to Property and Equipment | 4,392 | ||
Inventory Lower of Cost or Market Adjustments | 3,723 | 26,162 | |
Deconsolidation of Variable Interest Entity | 1,457 | ||
Changes in Operating Assets and Liabilities: | |||
Merchandise Inventories | (62,054) | 42,773 | (62,140) |
Accounts Payable | 64,025 | (21,450) | 21,478 |
Customer Deposits and Store Credits | (988) | (1,075) | 12,623 |
Prepaid Expenses and Other Current Assets | (11,465) | (18,385) | (1,836) |
Other Assets and Liabilities | (6,317) | 22,494 | 3,436 |
Net Cash Provided by Operating Activities | (27,601) | 9,204 | 57,087 |
Cash Flows from Investing Activities: | |||
Purchases of Property and Equipment | (8,908) | (22,478) | (71,138) |
Other Investing Activities | 575 | ||
Net Cash Used in Investing Activities | (8,333) | (22,478) | (71,138) |
Cash Flows from Financing Activities: | |||
Payments for Stock Repurchases | (433) | (295) | (53,310) |
Proceeds from the Exercise of Stock Options | 539 | 3,150 | |
Excess Tax Benefit from Stock-Based Compensation | 54 | 4,004 | |
Payments for Debt Issuance Costs | (933) | ||
Payments on Capital Lease Obligations | (469) | ||
Borrowings on Revolving Credit Facility | 37,000 | 39,000 | 53,000 |
Payments on Revolving Credit Facility | (17,000) | (19,000) | (53,000) |
Net Cash Provided by (Used in) Financing Activities | 18,758 | 19,705 | (46,156) |
Effect of Exchange Rates on Cash and Cash Equivalents | 744 | (15) | (140) |
Net Increase (Decrease) in Cash and Cash Equivalents | (16,432) | 6,416 | (60,347) |
Cash and Cash Equivalents, Beginning of Year | 26,703 | 20,287 | 80,634 |
Cash and Cash Equivalents, End of Year | 10,271 | $ 26,703 | $ 20,287 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Borrowing on capital lease obligation to acquire equipment | $ 351 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1. Summary of Significant Accounting Policies Nature of Business Lumber Liquidators Holdings, Inc. and its direct and indirect subsidiaries (collectively and, where applicable, individually, the “Company”) engage in business as a multi-channel specialty retailer of hardwood flooring, and hardwood flooring enhancements and accessories, operating as a single operating segment. The Company offers an extensive assortment of exotic and domestic hardwood species, engineered hardwood, laminate and resilient vinyl flooring direct to the consumer. The Company also features the renewable flooring products, bamboo and cork, and provides a wide selection of flooring enhancements and accessories, including moldings, noise-reducing underlay, adhesives and flooring tools. The Company also provides in-home delivery and installation services to certain of its customers. The Company sells primarily to homeowners or to contractors on behalf of homeowners through a network of 383 store locations in primary or secondary metropolitan areas. The Company’s store spanned 46 states in the United States (“U.S.”) and included eight stores in Canada at December 31, 2016. In addition to the store locations, the Company’s products may be ordered, and customer questions/concerns addressed, through both its call center in Toano, Virginia, and its website, www.lumberliquidators.com. The Company finishes the majority of the Bellawood products on its finishing lines in Toano, Virginia, which along with the call center, corporate offices, and a distribution center, represent the “Corporate Headquarters.” Organization and Basis of Financial Statement Presentation The consolidated financial statements of Lumber Liquidators Holdings, Inc., a Delaware corporation, include the accounts of its wholly owned subsidiaries. All significant intercompany transactions have been eliminated in consolidation. In 2014, the Company entered into an arrangement to begin to vertically integrate its domestic hardwood supply to feed its finishing lines. During 2015, the Company decided to discontinue certain of these vertical integration initiatives, which were previously consolidated as a variable interest entity, and terminated its prior arrangement. As a result, the Company recorded a charge of $1,457 in cost of sales in its consolidated statements of operations upon deconsolidation of the variable interest entity. The charge was measured as the difference between the fair value of the assets received upon termination and the carrying value of the related net assets. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the US. requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Cash and Cash Equivalents The Company had cash and cash equivalents of $10,271 and $26,703 at December 31, 2016 and 2015, respectively. The Company considers all highly liquid investments with a maturity date of three months or less when purchased to be cash equivalents, of which there was nil at December 31, 2016 and 2015, respectively. The Company accepts a range of debit and credit cards, and these transactions are generally transmitted to a bank for reimbursement within 24 hours. The payments due from the banks for these debit and credit card transactions are generally received, or settled, within 24 to 48 hours of the transmission date. The Company considers all debit and credit card transactions that settle in less than seven days to be cash and cash equivalents. Amounts due from the banks for these transactions classified as cash equivalents totaled $9,609 and $8,551 at December 31, 2016 and 2015, respectively. Credit Programs Credit is offered to the Company’s customers through a proprietary credit card, underwritten by a third party financial institution and generally at no recourse to the Company. A credit line is offered to the Company’s professional customers through the Lumber Liquidators Commercial Credit Program. This commercial credit program is underwritten by a third party financial institution, generally with no recourse to the Company. As part of the credit program, the Company’s customers may tender their Lumber Liquidators credit card to receive installation services. As of December 31, 2016, we utilized a network of associates to perform certain customer-facing, consultative services and coordinate the installation of our flooring products by third-party independent contractors in 258 of our stores. In our remaining stores, installation services are provided through a national arrangement with the Company’s third party independent contractors, who are responsible for all credits and program fees for the related transactions. The Company has agreed to indemnify the financial institution against any losses related to these credits or fees. There are no maximum potential future payments under the guarantee. The Company is able to seek recovery from the independent contractor of any amounts paid on its behalf. The Company believes that the risk of significant loss from the guarantee of these obligations is remote. Fair Value of Financial Instruments The carrying amounts of financial instruments such as cash and cash equivalents, accounts payable and other liabilities approximate s fair value because of the s hort-term nature of these items. The carrying amount of obligations under our revolving credit facility approximate s fair value due to the variable rate of interest. The fair value of the revolving credit facility is classified as Level 1 as defined in the Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) 820 fair value hierarchy. During 2015, certain non-financial assets, including property and equipment, have been written down and measured in the consolidated financial statements at fair value. Fair value was based on expected future cash flows using Level 3 inputs under ASC 820. Merchandise Inventories The Company values merchandise inventories at the lower of cost or market value. Merchandise cost is determined using the average cost method. All of the hardwood flooring purchased from vendors is either prefinished or unfinished, and in immediate saleable form. The Company adds the finish to, and boxes, various species of unfinished product, to produce certain proprietary products, primarily Bellawood, at its finishing facility. These finishing and boxing costs are included in the average unit cost of related merchandise inventory. The Company maintains an inventory reserve for loss or obsolescence based on historical results and current sales trends. This reserve was $7,070 and $26,882 at December 31, 2016 and 2015, respectively. During the year ended December 31, 2015, the Company recorded inventory impairment charges related to its laminate flooring sourced from China, in connection with changes in the executive management team and based on the evaluation of the alternatives for disposal, and it was determined that it would not sell the inventory of laminate flooring sourced from China in its stores. As a result of that decision, the Company recorded a charge to reduce the remaining carrying value of this laminate flooring and related moldings to its net realizable value of zero . The Company recorded total charges related to laminate flooring sourced from China of $22,499 in cost of sales for the year ended December 31, 2015 in the accompanying consolidated statements of operations. This inventory is being held in a warehouse and costs related to any future disposal will be recognized as incurred. During the year ended December 31, 2015, the Company determined that it would refocus on its core business and it would not pursue an expansion into the tile flooring business in the near term. As a result, the Company recorded a lower of cost or market adjustment of $3,663 for certain tile flooring and related accessories, which is recorded in cost of sales for the year ended December 31, 2015 in the accompanying consolidated statements of operations. Impairment of Long-Lived Assets The Company evaluates potential impairment losses on long-lived assets used in operations when events and circumstances indicate that the assets may be impaired, and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amounts of those assets. If impairment exists and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amount of those assets, an impairment loss is recorded based on the difference between the carrying value and fair value of the assets. No impairment charges were recognized in 2016 or 2014. In the third quarter of 2015, the Company finalized the termination of its agreement relating to certain vertical integration initiatives which changed the Company’s expectations of future cash flows from related long-lived assets. As a result, the Company tested certain long-lived assets for impairment. The Company recorded a $3,043 impairment charge within selling, general and administrative (“SG&A”) expenses for the three months ended September 30, 3015 in its accompanying consolidated statements of income. The impairment charge was measured under an income approach utilizing forecasted discounted cash flows. Fair value was based on expected future cash flows using Level 3 inputs under ASC 820. The most significant unobservable input used in the fair value analysis relates to the estimated sales price of the long-lived assets. In the second quarter of 2015, the Company concluded that its decision not to pursue an expansion into the tile flooring business in the near term was a triggering event requiring assessment of recoverability for certain of its long-lived assets. As a result, the Company tested the long-lived assets for impairment related to its store locations selling a significant assortment of tile flooring. In the second quarter of 2015, the Company recorded a $1,350 impairment charge, which is recorded within SG&A expenses for the year ended December 31, 3015 in the accompanying consolidated statements of income. The impairment charge was measured under an income approach utilizing forecasted discounted cash flows. Fair value was based on expected future cash flows using Level 3 inputs under ASC 820. The most significant unobservable input used in the fair value analysis relates to the estimated sales price of the long-lived assets. Goodwill and Other Indefinite-Lived Intangibles Goodwill represents the costs in excess of the fair value of net assets acquired associated with acquisitions by the Company. Other assets include $800 for an indefinite-lived intangible asset for the phone number 1-800-HARDWOOD and related internet domain names. The Company evaluates these assets for impairment on an annual basis, or whenever events or changes in circumstance indicate that the asset carrying value exceeds its fair value . Based on the analysis performed, the Company has concluded that no impairment in the value of these assets has occurred. Self-Insurance The Company is self-insured for certain employee health benefit claims and for certain workers’ compensation claims. The Company estimates a liability for aggregate losses below stop-loss coverage limits based on estimates of the ultimate costs to be incurred to settle known claims and claims incurred but not reported as of the balance sheet date. The estimated liability is not discounted and is based on a number of assumptions and factors including historical and industry trends and economic conditions. This liability could be affected if future occurrences and claims differ from these assumptions and historical trends. As of December 31, 2016 and 2015, an accrual of $2,130 and $1,976 related to estimated claims was included in other current liabilities, respectively. Recognition of Net Sales The Company recognizes net sales for products purchased at the time the customer takes possession of the merchandise. Service revenue, primarily installation revenue and freight charges for in-home delivery, is included in net sales and recognized when the service has been rendered. The Company reports sales exclusive of sales taxes collected from customers and remitted to governmental taxing authorities, and net of an allowance for anticipated sales returns based on historical and current sales trends and experience. The sales returns allowance and related changes were not significant for 2016, 2015 or 2014. In total, we offer more than 400 different flooring product stock-keeping units; however, no single flooring product represented more than 2% of our sales mix. By major product category, our sales mix was as follows: 2016 2015 2014 Solid and Engineered Hardwood $ 318,397 33% $ 378,501 39% $ 406,887 39% Bamboo, Cork, Vinyl Plank and Other 255,071 26% 221,776 22% 212,735 20% Moldings and Accessories 172,517 18% 184,144 19% 195,539 19% Laminate 149,745 16% 153,722 16% 199,775 19% Non-Merchandise Services 64,858 7% 40,633 4% 32,483 3% Total $ 960,588 100% $ 978,776 100% $ 1,047,419 100% The Company generally requires customers to pay a deposit, equal to approximately half of the retail sales value, when purchasing merchandise inventories not regularly carried in a given store location, or not currently in stock. These deposits are included in customer deposits and store credits until the customer takes possession of the merchandise. Cost of Sales Cost of sales includes the cost of the product sold, cost of installation services, transportation costs from vendor to the Company’s distribution centers or store locations, any applicable finishing costs related to production of the Company’s proprietary brands, transportation costs from distribution centers to store locations, transportation costs for the delivery of products from store locations to customers, certain costs of quality control procedures, inventory adjustments including shrinkage, and costs to produce samples, reduced by vendor allowances. The Company offers a range of limited warranties from the durability of the finish on its prefinished products to its services provided. These limited warranties range from one to 100 years. Warranty reserves are based primarily on claims experience, sales history and other considerations, including payments made to satisfy customers for claims not directly related to the warranty on the Company’s products. Warranty costs are recorded in cost of sales. This reserve was $1,780 and $1,688 at December 31, 2016 and 2015, respectively. The Company is able to seek recovery from its vendors and third party independent contractors of installation services for certain amounts paid. Vendor allowances primarily consist of volume rebates that are earned as a result of attaining certain purchase levels and reimbursement for the cost of producing samples. Vendor allowances are accrued as earned, with those allowances received as a result of attaining certain purchase levels accrued over the incentive period based on estimates of purchases. Volume rebates earned are initially recorded as a reduction in merchandise inventories and a subsequent reduction in cost of sales when the related product is sold. Reimbursement received for the cost of producing samples is recorded as an offset against cost of sales. Accrual for Air Quality Emissions Screening Test Costs The Company offers a free indoor air quality testing program for customers who purchased laminate flooring sourced from China during the period from February 22, 2012 to February 27, 2015. The Company establishes a reserve to provide for the estimated future expenses required to support the program. Reserve estimates are based on management’s judgment, considering such factors as cost per air quality testing request, recent historical experience, and the anticipated number of future requests for the duration of the program. Management reviews and adjusts these estimates, if necessary, on a quarterly basis based on any differences in actual and expected program cost experience. Advertising Costs Advertising costs charged to selling, general and administrative (“SG&A”) expenses, net of vendor allowances, were $80,079 , $77,455 and $82,604 in 2016, 2015 and 2014, respectively. The Company uses various types of media to brand its name and advertise its products. Media production costs are generally expensed as incurred, except for direct mail, which is expensed when the finished piece enters the postal system. Media placement costs are generally expensed in the month the advertising occurs, except for contracted endorsements and sports agreements, which are generally expensed ratably over the contract period. Amounts paid in advance are included in prepaid expenses and totaled $747 and $1,495 at December 31, 2016 and 2015, respectively. Store Opening Costs Costs to open new store locations are charged to SG&A expenses as incurred, net of any vendor support. Other Vendor Consideration Consideration from non-merchandise vendors, including royalties and rebates, are generally recorded as an offset to SG&A expenses when earned. Depreciation and Amortization Property and equipment is carried at cost and depreciated on the straight-line method over the estimated useful lives. The estimated useful lives for leasehold improvements are the shorter of the estimated useful lives or the remainder of the lease terms. For leases with optional renewal periods for which renewal is not reasonably assured , the Company uses the original lease term, excluding optional renewal periods, to determine the appropriate estimated useful lives. Capitalized software costs are capitalized from the time that technological feasibility is established until the software is ready for use. The estimated useful lives are generally as follows: Years Buildings and Building Improvements 15 to 40 Property and Equipment 5 to 25 Computer Software and Hardware 3 to 10 Leasehold Improvements 1 to 15 Operating Leases The Company has operating leases for its stores, Corporate Headquarters, certain of its distribution facilities, supplemental office facilities and certain equipment. The lease agreements for certain stores and distribution facilities contain rent escalation clauses, rent holidays and tenant improvement allowances. For scheduled rent escalation clauses during the lease terms or for rental payments commencing at a date other than the date of initial occupancy, the Company records minimum rental expenses in SG&A expenses on a straight-line basis over the terms of the leases. The difference between the rental expense and rent paid is recorded as deferred rent on the consolidated balance sheets. For tenant improvement allowances, the Company records deferred rent on the consolidated balance sheets and amortizes the deferred rent over the terms of the leases as reductions to rental expense. Stock-Based Compensation The Company records compensation expense associated with stock options and other forms of equity compensation in accordance with FASB ASC 718. The Company may issue incentive awards in the form of stock options, restricted shares and other equity awards to employees, non-employee directors and other service providers. The Company recognizes expense for its stock-based compensation based on the fair value of the awards that are granted. Compensation expense is recognized only for those awards expected to vest, with forfeitures estimated at the date of grant based on historical experience and future expectations. Measured compensation cost is recognized ratably over the requisite service period of the entire related stock-based compensation award. Foreign Currency Translation The Company’s Canadian operations use the Canadian dollar as the functional currency. Assets and liabilities are translated at exchange rates in effect at the balance sheet date. Revenues and expenses are translated at the average monthly exchange rates during the year. Resulting translation adjustments are recorded as a component of accumulated other comprehensive income on the consolidated balance sheets. Income Taxes Income taxes are accounted for in accordance with FASB ASC 740 (“ASC 740”). Income taxes are provided for under the asset and liability method and consider differences between the tax and financial accounting bases. The tax effects of these differences are reflected on the consolidated balance sheets as deferred income taxes and measured using the effective tax rate expected to be in effect when the differences reverse. ASC 740 also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some portion of the deferred tax asset will not be realized. In evaluating the need for a valuation allowance, the Company takes into account various factors, including the nature, frequency and severity of current and cumulative losses, expected level of future taxable income, the duration of statutory carryforward periods and tax planning alternatives. In future periods, any valuation allowance will be re-evaluated in accordance with ASC 740, and a change, if required, will be recorded through income tax expense in the period such determination is made. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the relevant taxing authorities, based on the technical merits of its position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company classifies interest and penalties related to income tax matters as a component of income tax expense. Net Income per Common Share Basic net income per common share is determined by dividing net income by the weighted average number of common shares outstanding during the year. Diluted net income per common share is determined by dividing net income by the weighted average number of common shares outstanding during the year, plus the dilutive effect of common stock equivalents, including stock options and restricted shares. Common stock and common stock equivalents included in the computation represent shares issuable upon assumed exercise of outstanding stock options and release of restricted shares, except when the effect of their inclusion would be antidilutive. Recent Accounting Pronouncements In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 requires management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about a Company’s ability to continue as a going concern for a period of one year following the date its financial statements are issued. ASU 2014–15 provides guidance on the form of management’s evaluation as well as requires additional disclosures under certain conditions. The Company adopted ASU 2014-15 during the fourth quarter of fiscal 2016, which did not have an impact on the Company’s consolidated financial statements. In November 2015, the FASB issued Accounting Standards Update No. 2015-17 (“ASU 2015-17”), which amends ASC Topic 740, Balance Sheet Classification of Deferred Taxes. In summary, the core principle of Topic 740 is that an entity classifies both current and noncurrent deferred income tax assets and liabilities in the noncurrent section of the statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by this amendment. The amendments in ASU 2015-17 are effective for annual reporting periods beginning after December 15, 2016, and interim periods within those fiscal years. Early application is permitted for all entities as of the beginning of an interim or annual reporting period. The Company will adopt this new guidance during the first quarter of 2017. The Company has assessed the impact of implementing the new guidance on its consolidated financial statements. The adoption of this guidance will have no impact on its results of operations or cash flows, but will have a material impact in the presentation of its financial position through the reclassification of current deferred tax assets to a noncurrent long term deferred liability. At December 31, 2016, the Company reported a current deferred tax asset in the amount of $6,090 and a long-term deferred tax liability of $9,888 . Had the Company elected to early adopt the standard, the December 31, 2016, balance sheet would have reflected a noncurrent deferred tax liability of $3,798 and a current deferred tax asset of zero . In March 2016, the FASB issued Accounting Standards Update No. 2016-09, which amends ASC Topic 718, Compensation – Stock Compensation, which simplifies the accounting for employee share-based payments. The Company plans to adopt the new standard, which changes how entities account for certain aspects of share-based payments, in the first quarter of 2017. The new standard requires the immediate recognition of all excess tax benefits and deficiencies in the income statement (rather than equity) on a prospective basis. The standard also requires classification of excess tax benefits as an operating activity as opposed to a financing activity in the statements of cash flows. The Company has elected to apply this amendment of the standard on a retrospective basis starting in the first quarter of 2017. In 2016, the Company presented cash flows from excess tax benefits of approximately $54 within financing activities. The standard also clarifies that all cash payments made to taxing authorities on the employees' behalf for shares withheld should be presented as financing activities on the statements of cash flows, which is consistent with the Company’s current practice. Finally, the standard provides for a policy election to either estimate the number of awards that are expected to vest or account for forfeitures as they occur. The Company will continue to include the impact of estimated forfeitures when determining share-based compensation expense. In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (“ASU 2014-09”), which creates ASC Topic 606, Revenue from Contracts with Customers, and supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification. In addition, ASU 2014-09 supersedes the cost guidance in Subtopic 605-35, Revenue Recognition — Construction-Type and Production-Type Contracts, and creates new Subtopic 340-40, Other Assets and Deferred Costs — Contracts with Customers. In summary, the core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which deferred the effective date of ASU 2014-09 to reporting periods beginning after December 15, 2017. Early adoption is permitted for reporting periods beginning after December 15, 2016. The Company will adopt this ASU on January 1, 2018. Companies may use either a full retrospective or a modified retrospective approach to adopt this ASU. We established a cross-functional team in 2016 to review our current accounting policies and practices, assess the effect of the standard on our revenue contracts and identify potential differences. In addition, we are in the process of evaluating changes to our business processes and controls to support recognition and disclosure under the new standard. While we are continuing to assess all potential impacts of the standard, we currently believe the most significant impacts will relate to our assessment of (i) determining when our merchandise and installation sales order arrangements meet the definition of a contract when both arrangements are offered to our customers, (ii) determining the transaction price relative to sales returns and promotional sales activities, as well as the cost to us of financing arrangements we offer to our customers and sales commission costs we pay to our employees; and (iii) the potential impact on gross versus net presentation and classification relative to the performance of our installation sales. However, we cannot currently estimate the impact of this change upon adoption of this standard. We are also continuing to review the impact of this standard on potential disclosure changes in our financial statements as well as which transition approach will be applied. In February 2016, the FASB issued Accounting Standards Update No. 2016-02 (“ASU 2016-02”), which creates ASC Topic 842, Leases, and supersedes the lease accounting requirements in Topic 840, Leases. In summary, Topic 842 requires organizations that lease assets — referred to as “lessees” — to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. The amendments in ASU 2016-02 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Therefore, the amendments in ASU 2016-02 will become effective for the Company at the beginning of its 2019 fiscal year. The Company is currently assessing the impact of implementing the new guidance on its consolidated financial statements. When implemented, the standard is expected to have a material impact as operating leases will be recognized on the Company’s consolidated balance sheet. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property and Equipment [Abstract] | |
Property and Equipment | Note 2. Property and Equipment Property and equipment consisted of: December 31, 2016 2015 Land $ 5,951 $ 4,937 Building 44,283 44,234 Property and Equipment 61,358 59,015 Computer Software and Hardware 47,637 44,026 Leasehold Improvement 38,361 35,495 Assets under Construction 1,102 1,623 198,692 189,330 Less: Accumulated Depreciation and Amortization 83,688 67,333 Property and Equipment, net $ 115,004 $ 121,997 As of December 31, 201 6 and 201 5 , the Company had capitalized $ 35,650 and $34,024 of computer software costs, respectively. Amortization expense related to these assets was $ 3,604 , $3,501 and $3,212 for 201 6 , 201 5 and 201 4 , respectively. |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Other Liabilities [Abstract] | |
Other Liabilities | Note 3. Other Liabilities Other current liabilities consisted of: December 31, 2016 2015 Accrued Legal and Settlement Expense $ 4,266 $ 14,011 Other 15,718 14,744 Other Current Liabilities, net $ 19,984 $ 28,755 Other long-term liabilities consisted of: December 31, 2016 2015 Deferred Rent $ 5,858 $ 6,713 Lease Incentive Obligation 3,038 3,522 Antidumping Charges and Other 12,246 10,017 Other Long Term Liabilities, net $ 21,142 $ 20,252 |
Revolving Credit Agreement
Revolving Credit Agreement | 12 Months Ended |
Dec. 31, 2016 | |
Revolving Credit Agreement [Abstract] | |
Revolving Credit Agreement | Note 4. Revolving Credit Agreement On August 17, 2016, the Company, Lumber Liquidators, Inc. (“LLI”) and Lumber Liquidators Services, LLC (“LL Services” and collectively with LLI, the “Borrowers”), entered into a Third Amended and Restated Credit Agreement (the “Credit Agreement”) with Bank of America, N.A. (the “Bank”) and Wells Fargo Bank, N.A. (“Wells” and, collectively with the Bank, the “Lenders”) with the Bank as administrative agent and collateral agent (in this capacity, the “Agent”) and Wells as syndication agent. The Credit Agreement amended and restated the Second Amended and Restated Credit Agreement (the “Existing Revolver”) that was entered into between LLI and the Bank on April 24, 2015. Under the Credit Agreement, the Agent and the Lenders increased the maximum amount of borrowings under the revolving credit facility (the “Revolving Credit Facility”) from $100 million under the Existing Revolver to $150 million (but subject to the borrowing base as described in the Credit Agreement). The Borrowers also have the option to increase the Revolving Credit Facility up to a maximum total amount of $200 million subject to the satisfaction of the conditions to such increase specified in the Credit Agreement. At December 31, 2016, the Company had $90,687 available to borrow under the Revolver, which was net of $4,313 in outstanding letters of credit, $40,000 in outstanding borrowings and certain limitations based on the borrowing base and the fixed charge coverage ratio covenant. The Credit Agreement matures on August 17, 2021 , is guaranteed by the Company and its other domestic subsidiaries other than LLI and LL Services and secured by security interests in the Collateral (as defined in the Credit Agreement), which includes substantially all assets of the Company including, among other things, the Company’s inventory and accounts receivables as under the Existing Revolver and the Company’s East Coast distribution center located in Sandston, Virginia. Under the terms of the Credit Agreement, the Company has the ability to release the East Coast distribution center from the Collateral under certain conditions. The Revolving Credit Facility has no mandated payment provisions and a fee of 0.25% per annum on the average daily unused portion, paid quarterly in arrears. Loans outstanding under the Revolving Credit Facility can bear interest based on the Base Rate or the LIBOR Rate, each as defined in the Credit Agreement. Interest on Base Rate loans is charged at varying per annum rates computed by applying a margin ranging from 0.50% to 0.75% (dependent on the Company’s average daily excess borrowing availability under the Revolving Credit Facility during the most recently completed fiscal quarter) over the Base Rate. Interest on LIBOR Rate loans and fees for standby letters of credit are charged at varying per annum rates computed by applying a margin ranging from 1.50% to 1.75% (dependent on the Company’s average daily excess borrowing availability under the Revolving Credit Facility during the most recently completed fiscal quarter) over the applicable LIBOR rate for one, two, three or six month interest periods as selected by the Company. The Credit Agreement contains a fixed charge coverage ratio covenant that becomes effective in the event that the Company’s excess borrowing availability under the Revolving Credit Facility falls below the greater of $15,000 or 10% of the maximum revolver amount . As described in Note 12, s ubsequent to December 31, 2016 , we borrowed an add itional $25,000 under our ABL due to a build in inventory and payments against outstanding accounts payable. The outstanding balance of the ABL was $65,000 , which decreased our availability under the ABL to approximately $65,700 . |
Leases
Leases | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Leases | Note 5. Leases The Company has operating leases for its stores, Corporate Headquarters and West Coast distribution center, supplemental office facilities and certain equipment. The store location leases are operating leases and generally have five -year base periods with one or more five -year renewal periods. The Corporate Headquarters has an operating lease with a base term running through December 31, 2019 . The West Coast distribution center has an operating lease with a base term running through October 31, 2024 . As of December 31, 201 6 , 201 5 and 2014 , the Company leased the Corporate Headquarters, which includes a store location and 29 , 30 and 30 of its locations, representing 7.8% , 8.3% and 8.8% of the total number of store leases in operation, respectively, from the Company’s founder. During 2016 and 2015, the Company also leased a warehouse from the Company’s founder . Effective December 31, 2016, upon the departure of the Company’s founder from the board of directors, these entities no longer meet the criteria of a related party. Rental expense is as follows: Year Ended December 31, 2016 2015 2014 Rental expense $ 30,348 $ 28,825 $ 27,995 Rental expense to related parties 3,440 3,070 2,837 At December 31, 2016, t he future minimum rental payments under non-cancellable operating leases were as follows: Operating Leases Headquarters Lease Store Leases Distribution Centers & Other Leases Total Operating Leases 2017 $ 1,309 $ 28,366 $ 2,503 $ 32,178 2018 1,348 23,822 2,392 27,562 2019 1,389 19,368 2,305 23,062 2020 - 15,864 2,360 18,224 2021 - 10,098 2,081 12,179 Thereafter - 9,342 6,372 15,714 Total minimum lease payments $ 4,046 $ 106,860 $ 18,013 $ 128,919 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | Note 6. Stockholders’ Equity Net Income per Common Share The following table sets forth the computation of basic and diluted net income per common share: Year Ended December 31, 2016 2015 2014 Net (Loss) Income $ (68,563) $ (56,433) $ 63,371 Weighted Average Common Shares Outstanding—Basic 27,284,434 27,082,299 27,264,882 Effect of Dilutive Securities: Common Stock Equivalents — — 220,970 Weighted Average Common Shares Outstanding—Diluted 27,284,434 27,082,299 27,485,852 Net (Loss) Income per Common Share—Basic $ (2.51) $ (2.08) $ 2.32 Net (Loss) Income per Common Share—Diluted $ (2.51) $ (2.08) $ 2.31 The following have been excluded from the computation of Weighted Average Common Shares Outstanding—Diluted because the effect would be antidilutive: As of December 31, 2016 2015 2014 Stock Options 885,725 650,759 184,252 Restricted Shares 516,072 225,027 16,999 Stock Issuance On November 17, 2016, the Company issued 1 million shares of its common stock to a court approved settlement fund in connection with a final court approval of a definitive settlement agreement as discussed in Note 10. These shares were valued at $16,760 based on the closing price of the Company shares of $16.76 on the settlement date. These shares have been included in the Company’s calculation of weighted average common shares outstanding from the date of issuance. See “Securities Litigation Matter” in Note 10. Stock Repurchase Program In 2012, the Company’s Board of Directors (“Board”) authorized the repurchase of up to $100,000 of the Company’s common stock from time to time on the open market or in privately negotiated transactions. In January 2014, the Company’s Board authorized the repurchase of up to an additional $50,000 of the Company’s common stock, bringing the total authorization to $150,000 and at December 31, 2015, the Company had $14,728 remaining under this authorization. The Company did not purchase any shares under this program during the years ended December 31, 2016 or December 31, 2015. During the year ended December 31, 2014, the Company repurchased 671,200 shares of its common stock on the open market at an average price of $77.68 per share for an aggregate cost of $52,138 . The Company has not purchased any stock through privately negotiated transactions. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | Note 7. Stock-Based Compensation S tock-based compensation expense included in SG&A expenses consisted of: Year Ended December 31, 2016 2015 (1) 2014 Stock Options, Restricted Shares and Stock Appreciation Rights $ 5,568 $ 3,941 $ 5,593 ___________________ 1 Includes the impact of actual forfeitures in the period due to the resignation of certain senior executives. Overview On May 23 , 201 6 , the Company’s stockholders approved the Amended and Restated Lumber Liquidators Holdings, Inc. 2011 Equity Compensation Plan (the “ Amended 2011 Plan”), which succeeded the Lumber Liquidators Holdings, Inc. 2011 Equity Compensation Plan, which was initially approved by the Company’s stockholders on May 6, 2011, and succeeded the Lumber Liquidators Holdings, Inc. 2007 Equity Compensation Plan. The Amended 2011 Plan is an equity incentive plan for employees, non-employee directors and other service providers from which the Company may grant stock options, restricted shares, stock appreciation rights (“SARs”) and other equity awards. The total number of shares of common stock authorized for issuance under the Amended 2011 Plan is 6.1 million. As of December 31, 2016, 1. 1 million shares of common stock were available for future grants. Stock options granted under the Amended 2011 Plan expire no later than ten years from the date of grant and the exercise price shall not be less than the fair market value of the shares on the date of grant. Vesting periods are assigned to stock options and restricted shares on a grant by grant basis at the discretion of the Board. The Company issues new shares of common stock upon exercise of stock options and vesting of restricted shares. The Company also maintains the Lumber Liquidators Holdings, Inc. Outside Directors Deferral Plan under which each of the Company’s non-employee directors has the opportunity to elect annually to defer certain fees until departure from the Board. A non-employee director may elect to defer up to 100% of his or her fees and have such fees invested in deferred stock units. Deferred stock units must be settled in common stock upon the director’s departure from the Board. There were 131,506 and 95,553 deferred stock units outstanding at December 31, 201 6 and 201 5 , respectively. Stock Options The following table summarizes activity related to stock options: Shares Weighted Average Exercise Price Remaining Average Contractual Term (Years) Aggregate Intrinsic Value Balance, December 31, 2013 749,490 $ 33.04 7.3 $ 52,358 Granted 79,126 100.05 Exercised (149,707) 21.04 Forfeited (26,101) 60.71 Balance, December 31, 2014 652,808 $ 42.81 6.9 $ 18,113 Granted 410,164 25.34 Exercised - 0.00 Forfeited (370,196) 44.71 Balance, December 31, 2015 692,776 $ 31.45 7.7 $ 1,283 Granted 443,147 13.51 Exercised (60,781) 9.37 Forfeited (239,528) 27.16 Balance, December 31, 2016 835,614 $ 24.86 7.5 $ 1,167 Exercisable at December 31, 2016 257,220 $ 33.93 $ 99 Vested and expected to vest December 31, 2016 835,614 $ 24.86 $ 1,167 The aggregate intrinsic value is the difference between the exercise price and the closing price of the Company’s common stock on December 31. The intrinsic value of the stock options exercised during 201 6 , 201 5 and 201 4 was $343 , nil and $10,278 , respectively. As of December 31, 201 6 , total unrecognized compensation cost related to unvested options was approximately $3,612 , net of estimated forfeitures, which is expected to be recognized over a weighted average period of approximately 4.0 years. The fair value of each stock option award is estimated by management on the date of the grant using the Black-Scholes-Merton option pricing model. The weighted average fair value of options granted during 201 6 , 201 5 and 201 4 was $6.75 , $11.87 and $43.21 , respectively. The following are the ranges of assumptions for the periods noted: Year Ended December 31, 2016 2015 2014 Expected dividend rate 0 % 0 % 0 % Expected stock price volatility 55 % 50 % 45 % Risk-free interest rate 1.3 % 1.7 % 1.8 % Expected term of options 5.5 years 5.5 years 5.5 years The expected stock price volatility is based on the historical volatility of the Company’s stock price. The volatilities are estimated for a period of time equal to the expected term of the related option. The risk-free interest rate is based on the implied yield of U.S. Treasury zero-coupon issues with an equivalent remaining term. The expected term of the options represents the estimated period of time until exercise and is determined by considering the contractual terms, vesting schedule and expectations of future employee behavior. Restricted Shares The following table summarizes activity related to restricted shares: Shares Weighted Average Grant Date Fair Value Nonvested, December 31, 2013 178,335 $ 22.82 Granted 38,260 89.46 Released (45,503) 95.02 Forfeited (14,003) 54.90 Nonvested, December 31, 2014 157,089 $ 15.00 Granted 386,517 18.30 Released (27,187) 41.57 Forfeited (54,748) 45.93 Nonvested, December 31, 2015 461,671 $ 12.95 Granted 343,517 12.41 Released (130,523) 14.65 Forfeited (88,478) 18.29 Nonvested, December 31, 2016 586,187 $ 11.97 The fair value of restricted shares released during 201 6 , 201 5 and 201 4 was $1,617 , $941 and $4,371 , respectively. As of December 31, 201 6 , total unrecognized compensation cost related to unvested restricted shares was approximately $4,697 , net of estimated forfeitures, which is expected to be recognized over a weighted average period of approximately 2.4 years. Stock Appreciation Rights The following table summarizes activity related to SARs: Shares Weighted Average Exercise Price Remaining Average Contractual Term (Years) Aggregate Intrinsic Value Balance, December 31, 2013 16,156 $ 33.04 7.3 $ 938 Granted 1,941 100.05 Forfeited (1,870) 60.71 Balance, December 31, 2014 16,227 $ 42.81 6.9 $ 389 Granted - 0.00 Forfeited (170) 93.68 Balance, December 31, 2015 16,057 $ 47.58 6.8 $ - Granted 13,071 15.31 Forfeited (460) 62.87 Balance, December 31, 2016 28,668 $ 32.63 7.5 $ 6 Exercisable at December 31, 2016 13,727 $ 42.28 5.7 $ - The fair value method, estimated by management using the Black-Scholes-Merton o ption pricing model, is used to recognize compensation cost associated with SARs. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | Note 8. Income Taxes The components of (loss) income before income taxes were as follows: Year Ended December 31, 2016 2015 2014 United States $ (92,874) $ (80,136) $ 105,447 Foreign (1,399) (3,291) (1,864) Total (Loss) Income before Income Taxes $ (94,273) $ (83,427) $ 103,583 The (benefit) provision for income taxes consisted of the following: Year Ended December 31, 2016 2015 2014 Current Federal $ (36,801) $ (14,088) $ 34,615 State (3,269) (975) 5,614 Foreign 155 133 135 Total Current (39,915) (14,930) 40,364 Deferred Federal 11,184 (9,276) (22) State 3,021 (2,788) (130) Foreign - - - Total Deferred 14,205 (12,064) (152) Income Tax (Benefit) Expense $ (25,710) $ (26,994) $ 40,212 The reconciliation of significant differences between income tax expense applying the federal statutory rate and the actual income tax expense at the effective rate are as follows: Year Ended December 31, 2016 2015 2014 Income Tax (Benefit) Expense at Federal Statutory Rate $ (32,995) 35.0 % $ (29,200) 35.0 % $ 36,254 35.0 % (Decreases) Increases: State Income Taxes, Net of Federal Income Tax Benefit (2,275) 2.4 % (2,401) 2.9 % 3,711 3.6 % Valuation Allowance 15,207 (16.1) % 210 (0.2) % 458 0.4 % Foreign Operations (2,465) 2.6 % 1,075 (1.3) % 329 0.3 % Non-deductible penalty 875 (0.9) % 3,887 (4.7) % - - % Capital Loss (4,020) 4.3 % - - % - - % Other (37) - % (565) 0.7 % (540) (0.5) % Income Tax (Benefit) Expense $ (25,710) 27.3 % $ (26,994) 32.4 % $ 40,212 38.8 % The tax effects of temporary differences that result in significant portions of the deferred tax accounts are as follows: December 31, 2016 2015 Deferred Tax Liabilities: Depreciation and Amortization and Other $ (19,157) $ (20,368) Total Gross Deferred Tax Liabilities (19,157) (20,368) Deferred Tax Assets: Stock-Based Compensation Expense 3,941 3,794 Reserves and Accruals 10,241 9,825 Employee Benefits 1,144 1,034 Inventory Reserves 3,336 10,699 Inventory Capitalization 5,218 4,457 Foreign Net Operating Losses 2,781 2,433 Loss Carryforwards and Other 6,338 966 Total Gross Deferred Tax Assets 32,999 33,208 Less Valuation Allowance (17,640) (2,433) Total Net Deferred Tax Assets 15,359 30,775 Net Deferred Tax Asset (Liability) $ (3,798) $ 10,407 For 2016, the U.S. operations were in a cumulative loss position. As such, the Company has recorded a valuation allowance on its net deferred tax assets. For the year ended December 31, 2016, the valuation allowance increased by $ 1 4,859 . In future periods, the allowance could be reduced if sufficient evidence exists indicating that it is more likely than not that a portion or all of these deferred tax assets will be realized. In both 201 6 and 201 5 , the Canadian operations were in a cumulative loss position. As such, the Company has recorded a full valuation allowance on the net deferred tax assets in Canada. For the year ended December 31, 201 6 , the valuation allowance increased by $348 . In future periods, the allowance could be reduced if sufficient evidence exists indicating that it is more likely than not that a portion or all of these deferred tax assets will be realized. As of December 31, 201 6 and 201 5 , the Company had foreign net operating loss carryforwards of $12,912 and $11,797 , respectively, which begin to expire in 2030 . These net operating losses may be carried forward up to 20 years to offset future taxable income. The Company (received)/ made income tax (refunds)/ payments of $ (27,422) , $7,855 and $33,281 in 201 6 , 201 5 and 201 4 , respectively. The reconciliation of unrecognized tax benefits was as follows: Year Ended December 31, 2016 2015 Balance at beginning of year $ 396 $ 1,232 (Decrease) increase based on tax position related to the current year 123 (180) Decreases in tax positions for prior years - (434) Settlements - (11) Lapse of statute (311) (211) Balance at end of year $ 208 $ 396 As of December 31, 2016, the Company had $ 208 of gross unrecognized tax benefits, $135 of which, if recognized, would affect the effective tax rate. It is reasonably possible that the amount of the unrecognized tax benefit with respect to certain of the uncertain tax positions will increase or decrease during the next 12 months; however, the Company does not expect the change to have a significant effect on its results of operations, financial position or cash flows. As of December 31, 2015, the Company had $ 396 of gross unrecognized tax benefits, $ 257 of which, if recognized , would affect the effective tax rate. The Company files income tax returns with the U.S. federal government and various st ate and foreign jurisdictions. The Internal Revenue Service has initiated audits of the Company’s income tax returns for the years 2013 through 2015 . |
Profit-sharing Plan
Profit-sharing Plan | 12 Months Ended |
Dec. 31, 2016 | |
Profit-sharing Plan [Abstract] | |
Profit-sharing Plan | Note 9. Profit-sharing Plan The Company maintains a profit-sharing plan, qualified under Section 401(k) of the Internal Revenue Code, for all eligible employees. Employees are eligible to participate following the completion of three months of service and attainment of age 21. The plan is a safe harbor plan , with company matching contributions of 100% of the fir st 3% of employee contributions and 50% of the nex t 2% of employee contributions. Both deferrals and Roth contributions are allowed up to 50% of an employee’s eligible compensation, subject to annual IRS limits. Additionally, e mployees are now immediately 100% vested in the Company ’s matching contributions . The Company’s matching contributions, included in SG&A expenses, totaled $2,286 , $2,019 and $1,937 in 201 6 , 201 5 and 201 4 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 10. Commitments and Contingencies 2016 Settlements and Resolutions During 2016, the Company settled or resolved several outstanding legal matters. These include: · Lacey Act Related Matters - On October 7, 2015 , the Company reached a settlement with the Department of Justice (DOJ) with respect to its allegations of violations of the Lacey Act in its importation of certain wood flooring products and the court entered final judgment on February 3, 2016. In connection with this settlement the Company agreed to pay a total of $10,000 in fines, community service payments and forfeited proceeds , are subject to a five -year probation period and implemented the Lacey Compliance Plan. The Company has paid $8,200 of the settlement amount and expects to pay $1,800 in the first quarter of 2018. In addition, the Company also reached a settlement with the DOJ and paid $3,155 with respect to certain engineered hardwood flooring determined by the Company to have Lacey Act compliance concerns. Final judgment related to this matter was entered on January 8, 2016 . · California Air Resources Board – In March 2016, the Company entered into a settlement agreement with the California Air Resources Board (“CARB”), which did not constitute an admission of wrongdoing by the Company and provided that CARB release the Company from any and all claims that CARB may have had related to certain of its laminate products imported from China. Under the terms of the settlement agreement, the Company paid a total of $2,500 . Additionally, the Company agreed to implement certain voluntary measures, including a risk-based supplier audit program and testing research program. · Consumer Product Safety Commission Matter – On June 15, 2016, the Company entered into an agreement with the Office of Compliance and Field Operations of the Consumer Product Safety Commission (“CPSC”) with respect to its laminate products sourced from China. The agreement marked the completion of the CPSC’s evaluation of the safety of those products and did not constitute an admission of wrongdoing by the Company. Under the terms of the agreement, the Company has continued to offer an indoor air quality testing program to its customers at no cost. The Company has continued to provide testing data from this program to the CPSC. · Prop 65 Matter – On April 4, 2016 , the Company’s motion for judgment was granted and, subsequently, the court entered judgment in its favor. In exchange for the Company’s withdrawal of the memorandum of costs it had filed with the court, the p laintiffs in this matter paid the Company $100 and in exchange for agreeing to waive their right to appeal the court’s judgment in the Company’s favor. · Securities Class Action – On November 17, 2016 , the Company received final court approval of the Securities Class Action Stipulation. As a result of the Securities Class Action Stipulation, the Company, through its insurers and in conjunction with the settlement of the Derivative Class Action Settlement described below, contributed $26,000 to a settlement fund that will be used to compensate individuals who purchased the Company’s shares of common stock between February 22, 2012 and February 27, 2015. Additionally, the Company issued 1 million shares of its common stock to the settlement fund on N ovember 17, 2016, valued at $16,760 in the aggregate based on the closing price of the shares at that date. As of December 31, 2016, no remaining amounts are recorded in the Company’s consolidated balance sheet related to this matter. See detailed discussion of this matter below. · Derivative Litigation Matters – On November 17, 2016, the Company received final court approval the Consolidated Derivative Stipulation. As a result of the Consolidated Derivative Stipulation, the Company implemented certain corporate governance changes, received a $26,000 insurance payment (which the Company used to fully fund the securities class action settlement summarized above), and paid additional net expenses of $2,500 related to the derivative class action settlement. See detailed discussion of this matter below. Governmental Investigations In M ar c h 2015, the Company r eceived a g r and ju r y subpoena i s sued in conn e ction with a c ri m inal inv e stigation being conducted by the U . S. Attorney’s Office for the E astern District of Virginia (the “ U .S. Attorney”). In a ddition, on May 19, 20 1 5, J u ly 13, 20 1 5 and March 11, 2016, the Company r e ceived s u bp o e n as fr o m the N e w Y o r k Regional O f f ice of the S E C in connection wi t h an in q u iry by the SEC staff. Based on t h e s u bp o e n as, the Company b e lieves the focus of both the U . S. Attorney investigation a n d S E C investigation primarily relate to compliance with disclosur e , fin a nci a l r e p o r tin g an d t r a d in g r e q ui r e m e n t s un d e r the federal securiti e s laws since 2011. The Company is fully cooper a ting with the inv e s tigations by the U. S . A ttorn e y and S EC staff and continues to produce documents responsive to the subpoenas and pursuant to other requests received from the U.S. Attorney’s Office. Given that the investigation by the U.S. Attorney and S E C staff are still ongoing, the Company cannot estimate the reasonably p o ssi b le lo s s o r r a n g e o f loss t h a t may r e s u lt from this matter. Litigation Relating to Chinese Laminates Formaldehyde-Related Cases Begi n n ing o n or ab o u t March 3, 20 1 5, n u merous p u r p orted class a c tion ca s e s were filed in various U.S. fe d e ral d istrict courts and state c o urts involving cl a ims of excessive f o r m aldehy d e emissi o n s from the Company’s flooring pro d ucts (collectively, t h e “Products L iabil i ty C a ses”). The plaintiffs in these vari o u s acti o ns sou g ht reco v e ry u n der a variety of theorie s , which alt h ou g h not id e n tic a l a r e general l y s imila r , i n cluding negligence, b r each of wa r ranty, state consumer p r ot e ction act violations, state un f air competition a c t viol a tions, st a te deceptive t r ade pra c tices a c t viola t ions, f alse a d ve r ti s i n g, fr a udulent con c ealment, neglige n t misrepresentation, failure to wa r n , unjust en r ichment a n d similar claims. The purpo r ted classes c o nsisted either or both of all U.S. c o ns u m ers or state con s umers t h at p u rc h a s e d t h e s u bject pro d ucts in certain time p e rio d s. T h e p lai n tiffs al s o sou g ht vari o us forms of d e clar a tory and injun c tive relief and v a rious damages, in c luding restit u tion, actual, compensatory, consequenti a l, a n d , in certain cases, punitive damages, a n d int e rest, c o sts, and attorney s ’ f e es incurr e d by the plai n tiffs and oth e r purported cl a ss members in conne c tion w ith the alleged cl a ims, and orders c ertifying the a c ti o ns as class actions. Plai n tiffs did not q u a n tify damag e s sought f r om the Company in these class actions. On June 12, 2015, the U n it e d States Judicial P a nel on Multi D i s tr i ct L itigation (the “ M DL Pane l ” ) issued an order transferring a n d c o ns o li d ati n g ten o f the r e lated f e deral c lass actions to the United St a tes Dist r ict Cou r t f o r the E astern D istrict of Vi r g i nia (the “Virginia Court ” ). In a series of s ubsequent c o nditional transfer order s , the M DL Panel has transferred the other cases to t h e Vir g inia C ourt. The Company c o ntin u es to seek to have any new l y filed cases transferred and con s olidated in the Virginia Court and, u l timatel y , it expects all federal class actio n s i n vol v i n g f o r m al d ehyde allegations, includi n g any newly filed cases, to be tr a n s f er r ed and consolid a ted in the Vi rg inia Court. T h e consolidated ca s e in the Virginia Court is caption e d In re: L u m b er Liquidato r s C h ines e -Manufac t u red F loor i ng Products Marketing, Sales, Pract i ces and Products L iability Litigatio n (the “MDL”) . Pursuant to a co u r t order, plaintiffs f il e d a Repr e s e n ta t ive Class Action Complaint in the Virginia Court on September 11, 2015. T h e complaint ch a llenged the Company’s labeling o f its fl o o ring prod u cts and as s e rted claims u nder California, New York, Illinois, Florida and Texas law for fraudulent concealment, violation of consumer protection statutes, negligent misrepresentation and declaratory relief, as well as a claim fo r breach of implied warr a n ty un d er Calif o r nia law. T h ereafter, o n September 18, 201 5 , plai n t iffs filed the First A m ended Representative C la s s Action C o mplaint (“FARC”) in which they added impli e d war r anty claims under N e w Yo r k , Illinois, Flo r ida and Texas l a w, as well as a fede r al w a rr a nty cl a im. The Company fil e d a motion to dismiss and ans w ered the FARC. Th e Virginia Court granted the motion a s to claims for negl i g ent misrepresentation filed o n behalf of cer t ain plainti f fs, de f er r ed as to c lass act i on allegation s , and ot h e rwise d e n ied t h e m o t i on. The Company al s o filed a m o tion to strike nationwide cl a s s allegations, on which the V ir g inia Court has not yet r u le d . The Company also filed a motion to strike all personal injury claims made in class action complaints. Plaintiffs subsequently agreed and the Virginia Court has ordered that no Chinese formaldehyde class action pending in this lawsuit will seek damages for personal injury on a class-wide basis. The order does not affect any claims for personal injury brought solely on an individual basis. The Company’s motions for summary judgment on plaintiffs’ First Amended Representative Complaint in the MDL and to exclude expert reports and testimony by plaintiffs’ experts related to deconstructive testing are both currently pending before the Eastern District of Virginia. In a d dition, on or about April 1, 2015, S a rah St e ele (“Steel e ”) filed a purport e d c lass action la w s uit in the Ontario, Can a da Sup e rior Court of Justi c e against the Company. I n the compl a int, Ste e le ’ s a lleg a tions include ( i ) st r ict liability, (ii) b r each of impli e d warranty of fitn e s s for a parti c ular purpose, (ii i ) breach of implied warranty of m e rchantability, ( i v) fraud by con c ealment, ( v ) civil negligence, (vi) ne g ligent misrepr e s e n tation, a n d (vii) breach of implied cove n a n t o f go o d faith and fa i r dealin g . Steele did n o t q u antify any alle g ed damages in her complaint but, in addition to attorneys’ f ees a n d c o sts, Steele see ks (i) comp e n satory damages, (ii) punitive, e x e m plary and a g gr a v at e d d a mages, and (iii) statutory remedies related to the Company’s brea c h of various laws in c ludi n g the Sales of Goods Act, the Consum e r Protection Act, the Competition A c t, the Co n su m er Packa g ing and L a b elli n g Act and the Canada Con s umer Prod u ct Safety Act. Abrasion-Related Cases On M ay 20, 2015, a pur p ort e d class ac t ion titl e d A b ad v . L u m b er L i q u i d at o rs, I n c . w as fil e d in the United Sta t es District Court f o r t h e Ce n tral Distri c t o f Ca l if o rnia and two a m e n ded compl a ints were s u bsequ e ntly filed. In the Se c o nd Amend e d Complaint (“SA C ”), the plaintiffs ( collectively, the “Abad Abrasion Plaintif f s”) sought to ce r tify a nat i onal c lass composed of “ A ll Pe r sons in the U n it e d States w h o purchased Defenda n t ’s Dream Home bra n d laminate fl o o rin g p r o du c t s f r o m De f e n d a n t f o r person a l use in their homes , ” o r , i n the alte r n a t ive, 32 state w ide classes f r om C a lifornia, North Ca r o lina, T e xas, New Jers e y , Florida, Nevada, C onnecticut, I o wa, Minn e sot a , N eb r as k a, G e o r g ia, Ma r y l a n d , Massac hu setts, N ew Y o r k , W est V ir g ini a , Kansas, Kentucky, Mississip p i, Pe n n s y l v a n ia, S o u th Car o li n a, Te nn essee, Vir g i n ia, W a shi ng to n , Mai n e, M i chi g a n , Miss o u r i, Ohio, O k lahoma, Wiscon s in, India n a, Illinois a n d L o uisiana. The products that are the subject of these complaints are part of the same products at issue in the MDL. The S AC alleges vio l ations of e a ch of t h ese sta t es’ consumer protections statu t es and the f e de r al M agnuson-Moss War r anty A c t, as w ell as b r each of implied w ar r anty and f raudul e nt con c ealment. T h e Abad Abr a s ion Plaintiffs did not quantify a n y al l eg e d damages in the SAC but, in a d dition to a ttorneys’ fees and costs, sought a n o r d e r c erti f ying the a c tion a s a cl a ss action, an o r de r ado p tin g th e Abad A b rasi o n P l ai n tiff s ’ class defi n itions and findi n g that the Abad A b r asion Plaintiffs are their p r oper rep r esent a tiv e s , an ord e r appointing th e ir c o un s e l as c lass counsel, injunctive r elief pro h ibiting the Company f r o m c o ntinu i ng to advertise and/or sell laminate flooring products with false a b rasion class r a tings, r e s titution of a ll monies it re c eiv e d from the Abad A b rasion Plai n tiffs and class memb e rs, damages (actual, compensatory, and cons e q uential) and punitive damag e s . The Abad Abrasion Plaintiffs filed a Third Amended Complaint and the Company moved to dismiss the Third Amended Complaint. The court decided that it would decide the motion only as to the California plaintiffs (hereinafter referred to as the Abad Abrasion Plaintiffs) and ordered that all the non-California plaintiffs (collectively, the “Non-California Abrasion Plaintiffs”) be dropped from the action with leave to re-file. Many of the Non-California Abrasion Plaintiffs re-filed separate complaints in the Central District of California within the required 60-day period, which were then transferred to the district court located in the place of residence of each Non-California Abrasion Plaintiff. These complaints included similar causes of action and sought similar relief as those of the Abad Abrasion Plaintiffs. On October 3, 2016, the M DL Pane l issued an order transferring a n d c o ns o li d ati n g sixteen o f the f e deral abrasion c lass actions to the Virginia Court. In subsequent conditional transfer orders, the MDL Panel transferred other cases to the Virginia Court. The Company will seek to have any additional related cases transferred and con s olidated in the Virginia Court. T h e consolidated ca s e in the Virginia Court is caption e d In re: L u m b er Liquidato r s C h ines e -Manufac t u red Laminate F loor i ng Durability Marketing and Sales Pract i ces Litigatio n (the “Abrasion MDL”) . The Virginia Court issued an initial pretrial order instructing all parties to undertake certain discovery and planning tasks and scheduled certain preliminary conferences. In addition to the MDL, the Steele matters, and the Abrasion MDL, there are a number of individual claims and lawsuits alleging (i) damages due to excessive formaldehyde emissions and (ii) damages similar to those in the Abrasion MDL. While the Company believes that a loss associated with these additional matters, the MDL, the Steele matters and the Abrasion MDL is reasonably possible, given the uncertainty of litigation, the legal standards that must be met for, among other things, class certification and success on the merits , the Company is unable to estimate the amount of loss, or range of possible loss, at this time that may result from these actions. Further, the Company does not have insurance coverage with respect to the MDL and Steele matters, and may have limited insurance coverage relative to the Abrasion MDL. In the event that a settlement is reached related to these matters, the amount of such settlement may be material to the Company’s results of operations and financial condition and may have a material adverse impact on its liquidity. Gold Matter On or about December 8, 2014, D a na Gold ( “ G o ld ” ) fil e d a purpo r ted class a ction l awsuit in the United S tates Dist r ict Court f o r the N o rt h e r n Distri c t o f Cali fo r n ia alle g ing that the M o r n ing Star b amboo flo o ring (the “Bamb o o Pro d uct”) that the Company sells is defecti v e. On February 1 3 , 2 01 5 , Gold filed an amen d ed c o mplaint that added three additional plaintiffs ( c olle c tiv e ly with Gold, “ G old P laintiffs” ) . The Company m o ved to dismiss t h e amen d ed complaint. The co ur t dis m i s sed most of G o ld Plaintiff s ’ c l aims but allowed c ertain omission -b ased claims to proce e d. Gold P l aintiffs filed a S e cond Amended Complaint on D ece m be r 1 6 , 2 0 15 , a n d the n a T hi rd A m ended Co m p laint on Jan u ary 2 0 , 2 0 16. In t h e T h ird Ame n ded Com p lai n t, Gold Plaintiffs allege th a t the Company has enga g e d in u n fair b u siness practi c es and u n fair c o mpetition b y falsely re p r esenting t h e q u ality a n d characteristics of t h e Bamboo Prod u c t and by conce a ling the B a mboo Prod u c t ’s def e ctive nature. Gold Pla i ntiffs seek the c ertification of a class of i n divid u als in t h e United States who p u rc h a sed t h e Bam b oo Pr o duct, as well as seven s t ate s u bclasses o f in d ivid u als who are r e s idents of C a lifornia, New York, Illinoi s , West V irgini a , M inne s ota, Penn s ylvania, a n d Fl o r i d a, res p ecti v el y , and p u rchased t h e Bam b o o Pr o duc t f o r perso n a l, famil y , or hou s e h old u s e . G o ld P l ai n tiffs did not q u a n tify any alleged dam a g es in t h e ir c o mplaint b u t, in additi o n to attorneys’ fees and costs, Gold Plaintiffs seek (i) a declaration that the Company’s actions violate the law and that it is financially responsible for notifying all purported class memb e rs, (ii) in j u nctive relief requir i ng the Company to re p lace a n d / o r r e pair all of the Bamboo Product insta l led in structures owned by the pu r ported class members, and ( iii) a de c laration that the Company m u st disg o r g e , f o r the benef i t of the p u rported clas s e s , all or part of the p r o f its r e cei v ed f r om t h e s a le of the alle g edly defe c tive Bamboo Product and/or to make full restitution to Gold Plai n tiffs and the purported class members. Fact disco v ery in the matter is now complete and the motion for class certification is in process. In addition, there are a number of individual claims and lawsuits alleging damages similar to those in the Gold matter. The Company dispu tes these and the Gold Plainti f fs’ cla i ms and intends to de f end such m a tters vigorously. Given the unc e rtainty of l itigat i o n, the p r eliminary stage of the case, and the legal standards th a t must be m e t f o r, among other things, c lass certific a tion a n d success on the merit s , the Company c a nnot estimate the re a s onably possib l e l o ss or r an g e of l o ss t h at m ay r e s ult from t h is a ction. Antidumping and Countervailing D u ties Investigation In O ctober 2010, a conglomerat i on of domestic manufactur e rs of multilayered wood flooring filed a p e tition se e k ing the imposition of a n tidumping ( “ AD”) and c o untervailing duti e s (“C V D ”) with the U n ited States D ep a rtment of Comm e rce (“DOC ” ) and the United St a tes Intern a tional Tr a d e Commis s i o n (“I T C”) a g a inst imports of multilayered wood flooring from China. T h is ruling applies to companies importing multilayered wood flooring from Chinese suppliers subject to the AD and CVD orders . The Company’s multilayered wood flooring imports from China ac c ounted for app r oximately 7% , 6% and 1 0 % o f its fl o o ri n g purchases in 2016, 2015 and 20 1 4, respectively. The Company’s consistent view through the course of this matter has been, and remains, that its imports are neither dumped nor subsidized. As part of its p r o c esses in these procee d ing s , the DOC con d u c ts a n nual r eviews of the CVD and AD r ates. In such cases, the DOC will issue pr e liminary rat e s th a t are not binding and are subject to comment by inter e s t ed p a rties. Aft e r c o nsideration of the comm e n ts rece i ved, the D O C will issue f inal r a tes for the applicable pe r iod, which may lag by a year or more. As rates are adju s t e d through the administrative r e vi e ws, the Company adjusts its payments p r o spectively based on the fi n al rate. The Company will begin to pay the finalized rates on each applicable future purchase when recognized by U.S. Customs and Border Protection. T h e DOC made its initial d e ter m inatio n s regar d ing CVD and AD rates o n A p ril 6, 2 0 11 and May 26, 2 011, res p ecti v el y . O n De c ember 8, 2011, orders were issued setting final A D and CVD r a tes at a maximum of 3 . 3% and 1.5% , respectively. These r ates bec a me ef f e c tive in the form of additional du ty d e p o sits, w h ich the Company has paid, and applied r e troactively to the D OC initial determinati o ns. Follo w ing the is s u ance of the orde r s issued on December 8, 2011, a number of app e als we r e f iled by sev e ral parties, in c luding the Company, with the Court of In t ernation a l T r ade ( “CI T ”) c h a llenging, among other things, ce r tain aspects that may impact the validi t y of the AD and CVD ord e rs and the a p plicable rates. The appeal of the CVD o r d e r was dis m issed in June 2 0 15. On Ja n u ary 2 3 , 2 015, the CIT i s sued a d e cisi o n rejecting the challen g e of the AD r a te f o r all but o n e Chi n ese ex p o rter. T h is decision was finalized on J u ly 6, 2 015, and appealed to the C ourt o f Appeals f o r the Fe d e ral Circuit (“CAFC”) o n July 3 1 , 2 0 15. On February 15, 2017, the CAFC vacated the CIT’s prior decision with instructions to the DOC to recalculate its AD rate. The schedule for the DOC’s recalculation has not yet been set. The Company is unable to determine the impact of the CAFC’s decision to vacate the initial determination of AD rates; however, the DOC’s recalculation could materially impact the Company’s previously recorded loss related to annual reviews of AD rates discussed below. In the first DOC annual review in this matter, AD rates for the period from May 26, 2011 through No v ember 30, 2 012 and CVD rates from April 6, 2011 thr o u gh December 31, 2 0 11 were modified to a maximum of 5.92% and a maximum of 0.83% , respectively, which resulted in an additional payment obligation for the Company, based on best estimates and shipments during the applicable window, of $833 . We recorded this as a long-term liability on our accompanying consolidated balance sheet and in cost of sales in our second quarter 2015 financial statements. T h e s e r a tes have been appe a led to the CIT by several parties, including the Company. While the appeal is still pending, the CIT has issued a remand to the DOC requesting reconsideration of certain AD rate calculations. Pursuant to the second annual review, in early July 2015, the DOC finalized the AD rate for the period from December 1, 2012 through November 30, 2013 at a maximum of 13.74% and the CVD rate for the period from January 1, 2012 through December 31, 2012 at a maximum of 0.99% . The Company believes the best estimate of the probable loss was $4,089 for shipments during the applicable time periods, which was recorded as a long-term liability on its accompanying consolidated balance sheet and included in cost of sales in its second quarter 2015 financial statements. Beginning in July 2015, the Company began paying these rates on each applicable purchase. The rates relating to this second annual review have been appealed to the CIT and that appeal is pending. The third annual review of the AD and CVD rates was initiated in February 2015. The third AD review covered shipments from December 1, 2013 through November 30, 2014. The third CVD review covered shipments from January 1, 2013 through December 31, 2013. In May 2016, the DOC issued the final CVD rate in the third review, which was a maximum of 1.38% . On July 13, 2016, the DOC set the final AD rate at a maximum of 17.37% . The Company has appealed the AD rates. As these rates are now final, the Company believes its best estimate of the probable loss associated with AD and CVD is approximately $5,500 for shipments during the applicable time periods. During the quarter ended June 30, 2016, the Company recorded this amount in other long-term liabilities in its balance sheet and as a charge to earnings in cost of sales on its statement of operations. The total amount recorded in other long-term liabilities through the third annual review in the accompanying balance sheet as of December 31, 2016 a nd December 31, 2015 was $10,400 and $4,900 respectively. In February 2016, the DOC initiated the fourth annual review of AD and CVD rates, which will follow a similar schedule as the preceding review. The AD review covers shipments from December 1, 2014 through November 30, 2015. The CVD review covers shipments from January 1, 2014 through December 31, 2014. In December 2016 and January 2017, the DOC issued non-binding preliminary results in the fourth annual review for AD rates and CVD rates, respectively. The preliminary AD rate was a maximum of 4.92% and the CVD preliminary rate was a maximum of 1.68% . The final results in the fourth annual review are currently expected to be issued in April (AD) and May (CVD) 2017. The Company paid AD and CVD rates in excess of preliminary amounts for shipments during the periods impacted by the fourth annual review. The Company has not recorded a gain contingency as a result of this preliminary review. If the final rate is determined to be above the rates paid, the Company may incur additional expense or may receive a return of funds if the final rate is set below these rates. The DOC initiated the fifth annual review of AD and CVD rates in February 2017, which is expected to follow the same schedule as preceding reviews. The AD review covers shipments from December 1, 2015 through November 30, 2016. The CVD review covers shipments from January 1, 2015 through December 31, 2015. The 5 -year Sunset Review of the antidumping and countervailing duty orders on multilayered wood flooring (the “Sunset Review”) began in November 2016 at the ITC to determine whether to terminate the orders. The Company filed a notice of appearance and documentation required at this phase of the proceeding and intends to participate fully in the Sunset Review. The Sunset Review is expected to be completed in late 2017 or early 2018. Securities Class Action and Derivative Litigation Matters Derivative Litigation Matter - Consolidated Cases On o r a b o u t M ar c h 1 1 , 2 01 5 , R. A n d r e Kl e in ( “ K lein”) f iled a s h a r eholder derivative suit in the Un i ted States D istrict Court f o r the E a s t ern Dist r ict o f Vir g i n ia a g ai ns t the Company’s di r ectors at that time, as w ell as its Senior V ice President, Supply Chai n , f o r m er Chief Merchan d ising Officer and f o r m er Chief Fin a n c ial Offic e r (collectively, t h e “Klein Defendants”). On or ab o u t A p ril 1, 2 01 5 , Phuc Doan (“Doan”) filed a shareholder derivative suit in the United States District Court for the E a s t e rn District of Virginia against the Company’s di r ectors a t that time, as w e ll as its Seni o r Vi c e P r esi d e n t, S u p pl y Ch ai n , former Chief Merchandising Officer and former Chief Financial Officer (collectively, the “Doan Defendants”). On or about April 15 , 2 01 5 , Amalgamated Bank, as trustee f o r the L o n gview 6 00 Small Cap In d ex F u nd, filed a share h older d e rivative suit in the United S tates Dist r ict Court f o r the E aste r n District of V i rginia again s t the Company’s dire c tors at that time, a s well as its f o r m er Chief Mercha n d ising Officer, f o rmer C h ief Financial Officer, Senior Vice Pre s ident, Supply C h ain a n d its f o r m er C h ief Executive O ffi c er and P resident ( c oll e ctiv e ly, the “ A m a lgamat e d Def e ndants,” and, with the Kl ein and Doan De f end a n ts, the “I ndividual Def e ndant s ”). The Company was named as a nominal def e ndant on l y in these three suits. On May 2 7 , 2 0 15, the c o urt co n solidated the K lein, D o an, and Amalgam a ted Bank s u its, appointed lead plaintif f s and lead counsel for the con s oli d ated action, a n d ca p tioned the con s olidated acti o n as In r e L u m b e r Liq u idat o r s H o ldin g s, I nc. Shareholder D erivative L itigation (the “Consolidated Derivative Litigation Matter”). I n the complaints, K lein ’ s, Doan’s and A m algamated Bank’s (coll e ctively, “Pl a intiffs”) allegations include (i) breach of fiducia r y duties, (ii) abuse of control, (iii) gross mismanageme n t, ( iv) unjust e n r ichment, (v) insider trading, (vi) c o rpor a te w a s t e, (v i i) common-l a w c onspiracy, a n d (viii) statutory conspiracy. P laintiffs did not qu a n ti f y a n y alleged damages in their complaints but, in addition to attorneys’ fees and costs, Pl a intiffs s ee k (1) a decla r ation th a t the Indi v idual Defendants ha v e breac h ed a n d/or a ided and a b ett e d the b rea c h of t h eir fid u ciary duties to the Company, ( 2 ) a determination and awa r d to the Company of the d amages sustained by the Company as a r esult of the violations of e ach of the Individual D efendants, jointly and s e verall y , (3 ) a directive to the Company and the Indi v idual Defendants to take all n e cessa r y actions to r e f o rm and im p r o v e its corporate g o ver n ance and inte rn al procedures to c o m p ly with applicable l a ws and to protect the Company and its s h areholders from a r e pe a t of t h e events that led to the filing of this action, (4) a d e termina t ion and award to the Company of e x emplary d amages in an amou n t n ecessary to pu n i s h the I n d ividual Defen d a n ts a n d to make an example of the Individu a l De f end a n ts t o the community accordi n g to p r oof of t r ial, (5) the awa r ding of restitution to the Company f r om t h e I n di v i d u a l De f e n d a n ts, (6) a requirem e n t th a t the Company establishes corpora t e p o licies a n d p r o c ed u r e s pro h ibiting the use of C h inese manufact u r ers of its prod u cts, ( 7 ) a prohi b i ti o n against the Company from using wo o d or wo o d pro d ucts from the Russian Far East, ( 8 ) a requirement that the Company establish corporate p o licies and p r ocedu r es to ensure com p liance with CARB standar d s f o r all o f its flo o ri n g products, and ( 9 ) dis g orgem e nt and payment to the Company o f all com p ensation and p r o f its made by the I n divi d u al Def e n d ants, a n d each of them, at any time during which such Indi v idual De f end a n ts w ere b r eaching fiduciary duties owed to the Company and/or committing, or a iding and abetting the commitment of, corporate waste. On July 18, 2016, the Company entered into a definitive settlement agreement (the “Consolidated Derivative Stipulation”) and, on November 17, 2016, the court approved the settlement. A ll payments in connection with the settlement have been made. Under the terms of the Consolidated Derivative Stipulation, the Consolidated Derivative Litigation Matter was settled for a combination of corporate governance changes, a payment of $26,000 in insurance proceeds to the Company (which was then used to settle the pending Securities Class Action Litigation described below), and attorneys’ fees. During the first quarter of 2016, the Company determined that a probable loss was incurred related to the Derivative Litigation Matters and recognized a net charge to earnings of $2,500 within selling general and administrative expense in the statement of operations. Other Derivative Matters On J une 11, 20 1 5, t h e Special Committee of the Boa r d of Di r ectors ( the “Speci a l Committee”) e x e r cised its authority to c r eate a Demand Review Co m m ittee, which is c o mprised of t h ree independent directors and tasked with reviewing, analyzing, investigating and considering the allegations made in the Consolidated Derivative Litigation Matter and other derivative matters, including but not limited to the Costello matter and the McBride matter described below (“Other Derivative Matters”), and to report its recommendations thereon to the board of directors. Following an extensive review, investigation and analysis, including taking into consideration the report of independent counsel engaged to assist in the investigation of these matters, the Demand Revie |
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Dec. 31, 2016 | |
Selected Quarterly Financial Information [Abstract] | |
Selected Quarterly Financial Information (unaudited) | Note 11. Select ed Quarterly Financial Information (unaudited) The following tables present the Company’s unaudited quarterly results for 2016 and 2015. Quarter Ended March 31, 2016 June 30, 2016 September 30, 2016 December 31, 2016 Net Sales $ 233,513 $ 238,092 $ 244,082 $ 244,901 Gross Profit 76,109 70,584 76,689 80,487 Selling, General and Administrative Expenses 117,236 89,900 100,661 89,707 Operating (Loss) Income (41,127) (19,316) (23,972) (9,220) Net (Loss) Income $ (32,402) $ (12,230) $ (18,438) $ (5,493) Net income per Common Share - Basic $ (1.20) $ (0.45) $ (0.68) $ (0.20) Net income per Common Share - Diluted $ (1.20) $ (0.45) $ (0.68) $ (0.20) Number of Stores Opened in Quarter 1 4 1 3 Comparable store net sales (Decrease) Increase (13.9) % (7.2) % 1.0 % 2.8 % Quarter Ended March 31, 2015 June 30, 2015 September 30, 2015 December 31, 2015 Net Sales $ 259,961 $ 247,944 $ 236,064 $ 234,807 Gross Profit 91,612 62,284 70,996 53,966 Selling, General and Administrative Expenses 97,680 90,551 88,333 85,487 Operating (Loss) Income (6,068) (28,267) (17,337) (31,521) Net (Loss) Income $ (7,780) $ (20,347) $ (8,479) $ (19,827) Net income per Common Share - Basic $ (0.29) $ (0.75) $ (0.31) $ (0.73) Net income per Common Share - Diluted $ (0.29) $ (0.75) $ (0.31) $ (0.73) Number of Stores Opened in Quarter 4 7 7 4 Comparable store net sales (Decrease) Increase (1.8) % (10.0) % (14.6) % (17.2) % The following tables present certain items impacting gross profit and SG&A in the Company’s unaudited quarterly results for 2016 and 2015. Quarter Ended March 31, 2016 June 30, 2016 September 30, 2016 December 31, 2016 Gross profit: Antidumping Charges $ - $ 5,450 $ - $ - Indoor Air Quality Testing Program 2,895 3,292 - - SG&A: Securities and Derivatives Class Action 18,520 (600) 4,250 (2,910) Legal and Professional Fees 1 10,414 8,294 6,321 3,385 All Other 2 1,275 945 580 - Total $ 33,104 $ 17,381 $ 11,151 $ 475 Quarter Ended March 31, 2015 June 30, 2015 September 30, 2015 December 31, 2015 Gross profit: Inventory Impairments $ 1,063 $ 6,269 $ - $ 21,719 Antidumping Charges - 4,921 - - Indoor Air Quality Testing Program 2,313 4,918 2,412 (198) SG&A: Legal and Professional Fees 1 4,467 6,328 6,135 4,129 Lacey/DOJ Settlement 3 10,000 3,155 - - All Other 2 440 175 5,687 4,787 Total $ 18,283 $ 25,766 $ 14,234 $ 30,437 ___________________ 1 Represents charges to earnings related to our defense of various significant legal actions during the period. This does not include all legal costs incurred by the Company. 2 All other primarily relates to various payroll factors, including our retention initiatives, and impairment charges related to discontinuing non-core investments. 3 Represents settlement accruals related to the completed DOJ-Lacey Act investigation in 2015. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 12. Subsequent Events In February 2017 , the Company paid settlement amounts totaling $2,000 , as described in Note 10, under 2016 Resolutions in Lacey Act Related Matters. Due to a build in inventory and payments against outstanding accounts payable , s ubsequent to December 31, 2016 , the Company borrowed an additional $25,000 under its Revolving Credit Facility, as describ ed in Note 4. As of February 16, 2017 , the Company has $65,000 in outstanding borrowings under the Revolving Cre dit Facility, which decreased its availability un der the ABL to approximately $65,700 . |
Schedule II - Analysis of Valua
Schedule II - Analysis of Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Schedule II - Analysis of Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Analysis of Valuation and Qualifying Accounts | Lumber Liquidators Holdings, Inc. Schedule II – Analysis of Valuation and Qualifying Accounts For t he Years Ended December 31, 2016 , 201 5 and 201 4 (in thousands) Balance Beginning of Year Additions Charged to Cost and Expenses Deductions (1) Other Balance End of Year For the Year Ended December 31, 2014 Reserve deducted from assets to which it applies Inventory reserve for loss or obsolescence $ 1,275 $ 3,198 (2) $ (1,231) $ - $ 3,242 Income tax valuation allowance $ 1,765 $ 458 $ - $ - $ 2,223 For the Year Ended December 31, 2015 Reserve deducted from assets to which it applies Inventory reserve for loss or obsolescence $ 3,242 $ 28,897 (3) $ (5,257) $ - $ 26,882 Income tax valuation allowance $ 2,223 $ 210 $ - $ - $ 2,433 For the Year Ended December 31, 2016 Reserve deducted from assets to which it applies Inventory reserve for loss or obsolescence $ 26,882 $ 3,723 $ (23,535) $ - $ 7,070 Income tax valuation allowance $ 2,433 $ 15,207 $ - $ - $ 17,640 1 Deductions are for the purposes for which the reserve was created. 2 Addition of $1,200 for reserves related to the Company's Bellawood transition. 3 Includes $22,499 for laminate flooring sourced from China and $3,663 related to the tile exit. |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Nature of Business | Nature of Business Lumber Liquidators Holdings, Inc. and its direct and indirect subsidiaries (collectively and, where applicable, individually, the “Company”) engage in business as a multi-channel specialty retailer of hardwood flooring, and hardwood flooring enhancements and accessories, operating as a single operating segment. The Company offers an extensive assortment of exotic and domestic hardwood species, engineered hardwood, laminate and resilient vinyl flooring direct to the consumer. The Company also features the renewable flooring products, bamboo and cork, and provides a wide selection of flooring enhancements and accessories, including moldings, noise-reducing underlay, adhesives and flooring tools. The Company also provides in-home delivery and installation services to certain of its customers. The Company sells primarily to homeowners or to contractors on behalf of homeowners through a network of 383 store locations in primary or secondary metropolitan areas. The Company’s store spanned 46 states in the United States (“U.S.”) and included eight stores in Canada at December 31, 2016. In addition to the store locations, the Company’s products may be ordered, and customer questions/concerns addressed, through both its call center in Toano, Virginia, and its website, www.lumberliquidators.com. The Company finishes the majority of the Bellawood products on its finishing lines in Toano, Virginia, which along with the call center, corporate offices, and a distribution center, represent the “Corporate Headquarters.” |
Organization and Basis of Financial Statement Presentation | Organization and Basis of Financial Statement Presentation The consolidated financial statements of Lumber Liquidators Holdings, Inc., a Delaware corporation, include the accounts of its wholly owned subsidiaries. All significant intercompany transactions have been eliminated in consolidation. In 2014, the Company entered into an arrangement to begin to vertically integrate its domestic hardwood supply to feed its finishing lines. During 2015, the Company decided to discontinue certain of these vertical integration initiatives, which were previously consolidated as a variable interest entity, and terminated its prior arrangement. As a result, the Company recorded a charge of $1,457 in cost of sales in its consolidated statements of operations upon deconsolidation of the variable interest entity. The charge was measured as the difference between the fair value of the assets received upon termination and the carrying value of the related net assets. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the US. requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company had cash and cash equivalents of $10,271 and $26,703 at December 31, 2016 and 2015, respectively. The Company considers all highly liquid investments with a maturity date of three months or less when purchased to be cash equivalents, of which there was nil at December 31, 2016 and 2015, respectively. The Company accepts a range of debit and credit cards, and these transactions are generally transmitted to a bank for reimbursement within 24 hours. The payments due from the banks for these debit and credit card transactions are generally received, or settled, within 24 to 48 hours of the transmission date. The Company considers all debit and credit card transactions that settle in less than seven days to be cash and cash equivalents. Amounts due from the banks for these transactions classified as cash equivalents totaled $9,609 and $8,551 at December 31, 2016 and 2015, respectively. |
Credit Programs | Credit Programs Credit is offered to the Company’s customers through a proprietary credit card, underwritten by a third party financial institution and generally at no recourse to the Company. A credit line is offered to the Company’s professional customers through the Lumber Liquidators Commercial Credit Program. This commercial credit program is underwritten by a third party financial institution, generally with no recourse to the Company. As part of the credit program, the Company’s customers may tender their Lumber Liquidators credit card to receive installation services. As of December 31, 2016, we utilized a network of associates to perform certain customer-facing, consultative services and coordinate the installation of our flooring products by third-party independent contractors in 258 of our stores. In our remaining stores, installation services are provided through a national arrangement with the Company’s third party independent contractors, who are responsible for all credits and program fees for the related transactions. The Company has agreed to indemnify the financial institution against any losses related to these credits or fees. There are no maximum potential future payments under the guarantee. The Company is able to seek recovery from the independent contractor of any amounts paid on its behalf. The Company believes that the risk of significant loss from the guarantee of these obligations is remote. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of financial instruments such as cash and cash equivalents, accounts payable and other liabilities approximate s fair value because of the s hort-term nature of these items. The carrying amount of obligations under our revolving credit facility approximate s fair value due to the variable rate of interest. The fair value of the revolving credit facility is classified as Level 1 as defined in the Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) 820 fair value hierarchy. During 2015, certain non-financial assets, including property and equipment, have been written down and measured in the consolidated financial statements at fair value. Fair value was based on expected future cash flows using Level 3 inputs under ASC 820. |
Merchandise Inventories | Merchandise Inventories The Company values merchandise inventories at the lower of cost or market value. Merchandise cost is determined using the average cost method. All of the hardwood flooring purchased from vendors is either prefinished or unfinished, and in immediate saleable form. The Company adds the finish to, and boxes, various species of unfinished product, to produce certain proprietary products, primarily Bellawood, at its finishing facility. These finishing and boxing costs are included in the average unit cost of related merchandise inventory. The Company maintains an inventory reserve for loss or obsolescence based on historical results and current sales trends. This reserve was $7,070 and $26,882 at December 31, 2016 and 2015, respectively. During the year ended December 31, 2015, the Company recorded inventory impairment charges related to its laminate flooring sourced from China, in connection with changes in the executive management team and based on the evaluation of the alternatives for disposal, and it was determined that it would not sell the inventory of laminate flooring sourced from China in its stores. As a result of that decision, the Company recorded a charge to reduce the remaining carrying value of this laminate flooring and related moldings to its net realizable value of zero . The Company recorded total charges related to laminate flooring sourced from China of $22,499 in cost of sales for the year ended December 31, 2015 in the accompanying consolidated statements of operations. This inventory is being held in a warehouse and costs related to any future disposal will be recognized as incurred. During the year ended December 31, 2015, the Company determined that it would refocus on its core business and it would not pursue an expansion into the tile flooring business in the near term. As a result, the Company recorded a lower of cost or market adjustment of $3,663 for certain tile flooring and related accessories, which is recorded in cost of sales for the year ended December 31, 2015 in the accompanying consolidated statements of operations. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company evaluates potential impairment losses on long-lived assets used in operations when events and circumstances indicate that the assets may be impaired, and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amounts of those assets. If impairment exists and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amount of those assets, an impairment loss is recorded based on the difference between the carrying value and fair value of the assets. No impairment charges were recognized in 2016 or 2014. In the third quarter of 2015, the Company finalized the termination of its agreement relating to certain vertical integration initiatives which changed the Company’s expectations of future cash flows from related long-lived assets. As a result, the Company tested certain long-lived assets for impairment. The Company recorded a $3,043 impairment charge within selling, general and administrative (“SG&A”) expenses for the three months ended September 30, 3015 in its accompanying consolidated statements of income. The impairment charge was measured under an income approach utilizing forecasted discounted cash flows. Fair value was based on expected future cash flows using Level 3 inputs under ASC 820. The most significant unobservable input used in the fair value analysis relates to the estimated sales price of the long-lived assets. In the second quarter of 2015, the Company concluded that its decision not to pursue an expansion into the tile flooring business in the near term was a triggering event requiring assessment of recoverability for certain of its long-lived assets. As a result, the Company tested the long-lived assets for impairment related to its store locations selling a significant assortment of tile flooring. In the second quarter of 2015, the Company recorded a $1,350 impairment charge, which is recorded within SG&A expenses for the year ended December 31, 3015 in the accompanying consolidated statements of income. The impairment charge was measured under an income approach utilizing forecasted discounted cash flows. Fair value was based on expected future cash flows using Level 3 inputs under ASC 820. The most significant unobservable input used in the fair value analysis relates to the estimated sales price of the long-lived assets. |
Goodwill and Other Indefinite-Lived Intangibles | Goodwill and Other Indefinite-Lived Intangibles Goodwill represents the costs in excess of the fair value of net assets acquired associated with acquisitions by the Company. Other assets include $800 for an indefinite-lived intangible asset for the phone number 1-800-HARDWOOD and related internet domain names. The Company evaluates these assets for impairment on an annual basis, or whenever events or changes in circumstance indicate that the asset carrying value exceeds its fair value . Based on the analysis performed, the Company has concluded that no impairment in the value of these assets has occurred. |
Self-Insurance | Self-Insurance The Company is self-insured for certain employee health benefit claims and for certain workers’ compensation claims. The Company estimates a liability for aggregate losses below stop-loss coverage limits based on estimates of the ultimate costs to be incurred to settle known claims and claims incurred but not reported as of the balance sheet date. The estimated liability is not discounted and is based on a number of assumptions and factors including historical and industry trends and economic conditions. This liability could be affected if future occurrences and claims differ from these assumptions and historical trends. As of December 31, 2016 and 2015, an accrual of $2,130 and $1,976 related to estimated claims was included in other current liabilities, respectively. |
Recognition of Net Sales | Recognition of Net Sales The Company recognizes net sales for products purchased at the time the customer takes possession of the merchandise. Service revenue, primarily installation revenue and freight charges for in-home delivery, is included in net sales and recognized when the service has been rendered. The Company reports sales exclusive of sales taxes collected from customers and remitted to governmental taxing authorities, and net of an allowance for anticipated sales returns based on historical and current sales trends and experience. The sales returns allowance and related changes were not significant for 2016, 2015 or 2014. In total, we offer more than 400 different flooring product stock-keeping units; however, no single flooring product represented more than 2% of our sales mix. By major product category, our sales mix was as follows: 2016 2015 2014 Solid and Engineered Hardwood $ 318,397 33% $ 378,501 39% $ 406,887 39% Bamboo, Cork, Vinyl Plank and Other 255,071 26% 221,776 22% 212,735 20% Moldings and Accessories 172,517 18% 184,144 19% 195,539 19% Laminate 149,745 16% 153,722 16% 199,775 19% Non-Merchandise Services 64,858 7% 40,633 4% 32,483 3% Total $ 960,588 100% $ 978,776 100% $ 1,047,419 100% The Company generally requires customers to pay a deposit, equal to approximately half of the retail sales value, when purchasing merchandise inventories not regularly carried in a given store location, or not currently in stock. These deposits are included in customer deposits and store credits until the customer takes possession of the merchandise. |
Cost of Sales | Cost of Sales Cost of sales includes the cost of the product sold, cost of installation services, transportation costs from vendor to the Company’s distribution centers or store locations, any applicable finishing costs related to production of the Company’s proprietary brands, transportation costs from distribution centers to store locations, transportation costs for the delivery of products from store locations to customers, certain costs of quality control procedures, inventory adjustments including shrinkage, and costs to produce samples, reduced by vendor allowances. The Company offers a range of limited warranties from the durability of the finish on its prefinished products to its services provided. These limited warranties range from one to 100 years. Warranty reserves are based primarily on claims experience, sales history and other considerations, including payments made to satisfy customers for claims not directly related to the warranty on the Company’s products. Warranty costs are recorded in cost of sales. This reserve was $1,780 and $1,688 at December 31, 2016 and 2015, respectively. The Company is able to seek recovery from its vendors and third party independent contractors of installation services for certain amounts paid. Vendor allowances primarily consist of volume rebates that are earned as a result of attaining certain purchase levels and reimbursement for the cost of producing samples. Vendor allowances are accrued as earned, with those allowances received as a result of attaining certain purchase levels accrued over the incentive period based on estimates of purchases. Volume rebates earned are initially recorded as a reduction in merchandise inventories and a subsequent reduction in cost of sales when the related product is sold. Reimbursement received for the cost of producing samples is recorded as an offset against cost of sales. |
Accrual for Air Quality Emissions Screening Test Costs | Accrual for Air Quality Emissions Screening Test Costs The Company offers a free indoor air quality testing program for customers who purchased laminate flooring sourced from China during the period from February 22, 2012 to February 27, 2015. The Company establishes a reserve to provide for the estimated future expenses required to support the program. Reserve estimates are based on management’s judgment, considering such factors as cost per air quality testing request, recent historical experience, and the anticipated number of future requests for the duration of the program. Management reviews and adjusts these estimates, if necessary, on a quarterly basis based on any differences in actual and expected program cost experience. |
Advertising Costs | Advertising Costs Advertising costs charged to selling, general and administrative (“SG&A”) expenses, net of vendor allowances, were $80,079 , $77,455 and $82,604 in 2016, 2015 and 2014, respectively. The Company uses various types of media to brand its name and advertise its products. Media production costs are generally expensed as incurred, except for direct mail, which is expensed when the finished piece enters the postal system. Media placement costs are generally expensed in the month the advertising occurs, except for contracted endorsements and sports agreements, which are generally expensed ratably over the contract period. Amounts paid in advance are included in prepaid expenses and totaled $747 and $1,495 at December 31, 2016 and 2015, respectively. |
Store Opening Costs | Store Opening Costs Costs to open new store locations are charged to SG&A expenses as incurred, net of any vendor support. |
Other Vendor Consideration | Other Vendor Consideration Consideration from non-merchandise vendors, including royalties and rebates, are generally recorded as an offset to SG&A expenses when earned. |
Depreciation and Amortization | Depreciation and Amortization Property and equipment is carried at cost and depreciated on the straight-line method over the estimated useful lives. The estimated useful lives for leasehold improvements are the shorter of the estimated useful lives or the remainder of the lease terms. For leases with optional renewal periods for which renewal is not reasonably assured , the Company uses the original lease term, excluding optional renewal periods, to determine the appropriate estimated useful lives. Capitalized software costs are capitalized from the time that technological feasibility is established until the software is ready for use. The estimated useful lives are generally as follows: Years Buildings and Building Improvements 15 to 40 Property and Equipment 5 to 25 Computer Software and Hardware 3 to 10 Leasehold Improvements 1 to 15 |
Operating Leases | Operating Leases The Company has operating leases for its stores, Corporate Headquarters, certain of its distribution facilities, supplemental office facilities and certain equipment. The lease agreements for certain stores and distribution facilities contain rent escalation clauses, rent holidays and tenant improvement allowances. For scheduled rent escalation clauses during the lease terms or for rental payments commencing at a date other than the date of initial occupancy, the Company records minimum rental expenses in SG&A expenses on a straight-line basis over the terms of the leases. The difference between the rental expense and rent paid is recorded as deferred rent on the consolidated balance sheets. For tenant improvement allowances, the Company records deferred rent on the consolidated balance sheets and amortizes the deferred rent over the terms of the leases as reductions to rental expense. |
Stock-Based Compensation | Stock-Based Compensation The Company records compensation expense associated with stock options and other forms of equity compensation in accordance with FASB ASC 718. The Company may issue incentive awards in the form of stock options, restricted shares and other equity awards to employees, non-employee directors and other service providers. The Company recognizes expense for its stock-based compensation based on the fair value of the awards that are granted. Compensation expense is recognized only for those awards expected to vest, with forfeitures estimated at the date of grant based on historical experience and future expectations. Measured compensation cost is recognized ratably over the requisite service period of the entire related stock-based compensation award. |
Foreign Currency Translation | Foreign Currency Translation The Company’s Canadian operations use the Canadian dollar as the functional currency. Assets and liabilities are translated at exchange rates in effect at the balance sheet date. Revenues and expenses are translated at the average monthly exchange rates during the year. Resulting translation adjustments are recorded as a component of accumulated other comprehensive income on the consolidated balance sheets. |
Income Taxes | Income Taxes Income taxes are accounted for in accordance with FASB ASC 740 (“ASC 740”). Income taxes are provided for under the asset and liability method and consider differences between the tax and financial accounting bases. The tax effects of these differences are reflected on the consolidated balance sheets as deferred income taxes and measured using the effective tax rate expected to be in effect when the differences reverse. ASC 740 also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some portion of the deferred tax asset will not be realized. In evaluating the need for a valuation allowance, the Company takes into account various factors, including the nature, frequency and severity of current and cumulative losses, expected level of future taxable income, the duration of statutory carryforward periods and tax planning alternatives. In future periods, any valuation allowance will be re-evaluated in accordance with ASC 740, and a change, if required, will be recorded through income tax expense in the period such determination is made. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the relevant taxing authorities, based on the technical merits of its position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company classifies interest and penalties related to income tax matters as a component of income tax expense. |
Net Income per Common Share | Net Income per Common Share Basic net income per common share is determined by dividing net income by the weighted average number of common shares outstanding during the year. Diluted net income per common share is determined by dividing net income by the weighted average number of common shares outstanding during the year, plus the dilutive effect of common stock equivalents, including stock options and restricted shares. Common stock and common stock equivalents included in the computation represent shares issuable upon assumed exercise of outstanding stock options and release of restricted shares, except when the effect of their inclusion would be antidilutive. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 requires management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about a Company’s ability to continue as a going concern for a period of one year following the date its financial statements are issued. ASU 2014–15 provides guidance on the form of management’s evaluation as well as requires additional disclosures under certain conditions. The Company adopted ASU 2014-15 during the fourth quarter of fiscal 2016, which did not have an impact on the Company’s consolidated financial statements. In November 2015, the FASB issued Accounting Standards Update No. 2015-17 (“ASU 2015-17”), which amends ASC Topic 740, Balance Sheet Classification of Deferred Taxes. In summary, the core principle of Topic 740 is that an entity classifies both current and noncurrent deferred income tax assets and liabilities in the noncurrent section of the statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by this amendment. The amendments in ASU 2015-17 are effective for annual reporting periods beginning after December 15, 2016, and interim periods within those fiscal years. Early application is permitted for all entities as of the beginning of an interim or annual reporting period. The Company will adopt this new guidance during the first quarter of 2017. The Company has assessed the impact of implementing the new guidance on its consolidated financial statements. The adoption of this guidance will have no impact on its results of operations or cash flows, but will have a material impact in the presentation of its financial position through the reclassification of current deferred tax assets to a noncurrent long term deferred liability. At December 31, 2016, the Company reported a current deferred tax asset in the amount of $6,090 and a long-term deferred tax liability of $9,888 . Had the Company elected to early adopt the standard, the December 31, 2016, balance sheet would have reflected a noncurrent deferred tax liability of $3,798 and a current deferred tax asset of zero . In March 2016, the FASB issued Accounting Standards Update No. 2016-09, which amends ASC Topic 718, Compensation – Stock Compensation, which simplifies the accounting for employee share-based payments. The Company plans to adopt the new standard, which changes how entities account for certain aspects of share-based payments, in the first quarter of 2017. The new standard requires the immediate recognition of all excess tax benefits and deficiencies in the income statement (rather than equity) on a prospective basis. The standard also requires classification of excess tax benefits as an operating activity as opposed to a financing activity in the statements of cash flows. The Company has elected to apply this amendment of the standard on a retrospective basis starting in the first quarter of 2017. In 2016, the Company presented cash flows from excess tax benefits of approximately $54 within financing activities. The standard also clarifies that all cash payments made to taxing authorities on the employees' behalf for shares withheld should be presented as financing activities on the statements of cash flows, which is consistent with the Company’s current practice. Finally, the standard provides for a policy election to either estimate the number of awards that are expected to vest or account for forfeitures as they occur. The Company will continue to include the impact of estimated forfeitures when determining share-based compensation expense. In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (“ASU 2014-09”), which creates ASC Topic 606, Revenue from Contracts with Customers, and supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification. In addition, ASU 2014-09 supersedes the cost guidance in Subtopic 605-35, Revenue Recognition — Construction-Type and Production-Type Contracts, and creates new Subtopic 340-40, Other Assets and Deferred Costs — Contracts with Customers. In summary, the core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which deferred the effective date of ASU 2014-09 to reporting periods beginning after December 15, 2017. Early adoption is permitted for reporting periods beginning after December 15, 2016. The Company will adopt this ASU on January 1, 2018. Companies may use either a full retrospective or a modified retrospective approach to adopt this ASU. We established a cross-functional team in 2016 to review our current accounting policies and practices, assess the effect of the standard on our revenue contracts and identify potential differences. In addition, we are in the process of evaluating changes to our business processes and controls to support recognition and disclosure under the new standard. While we are continuing to assess all potential impacts of the standard, we currently believe the most significant impacts will relate to our assessment of (i) determining when our merchandise and installation sales order arrangements meet the definition of a contract when both arrangements are offered to our customers, (ii) determining the transaction price relative to sales returns and promotional sales activities, as well as the cost to us of financing arrangements we offer to our customers and sales commission costs we pay to our employees; and (iii) the potential impact on gross versus net presentation and classification relative to the performance of our installation sales. However, we cannot currently estimate the impact of this change upon adoption of this standard. We are also continuing to review the impact of this standard on potential disclosure changes in our financial statements as well as which transition approach will be applied. In February 2016, the FASB issued Accounting Standards Update No. 2016-02 (“ASU 2016-02”), which creates ASC Topic 842, Leases, and supersedes the lease accounting requirements in Topic 840, Leases. In summary, Topic 842 requires organizations that lease assets — referred to as “lessees” — to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. The amendments in ASU 2016-02 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Therefore, the amendments in ASU 2016-02 will become effective for the Company at the beginning of its 2019 fiscal year. The Company is currently assessing the impact of implementing the new guidance on its consolidated financial statements. When implemented, the standard is expected to have a material impact as operating leases will be recognized on the Company’s consolidated balance sheet. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Sales Mix by Major Product | In total, we offer more than 400 different flooring product stock-keeping units; however, no single flooring product represented more than 2% of our sales mix. By major product category, our sales mix was as follows: 2016 2015 2014 Solid and Engineered Hardwood $ 318,397 33% $ 378,501 39% $ 406,887 39% Bamboo, Cork, Vinyl Plank and Other 255,071 26% 221,776 22% 212,735 20% Moldings and Accessories 172,517 18% 184,144 19% 195,539 19% Laminate 149,745 16% 153,722 16% 199,775 19% Non-Merchandise Services 64,858 7% 40,633 4% 32,483 3% Total $ 960,588 100% $ 978,776 100% $ 1,047,419 100% |
Estimated Useful Lives of Property Plant and Equipment | The estimated useful lives are generally as follows: Years Buildings and Building Improvements 15 to 40 Property and Equipment 5 to 25 Computer Software and Hardware 3 to 10 Leasehold Improvements 1 to 15 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of: December 31, 2016 2015 Land $ 5,951 $ 4,937 Building 44,283 44,234 Property and Equipment 61,358 59,015 Computer Software and Hardware 47,637 44,026 Leasehold Improvement 38,361 35,495 Assets under Construction 1,102 1,623 198,692 189,330 Less: Accumulated Depreciation and Amortization 83,688 67,333 Property and Equipment, net $ 115,004 $ 121,997 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Liabilities [Abstract] | |
Other Current Liabilities | Other current liabilities consisted of: December 31, 2016 2015 Accrued Legal and Settlement Expense $ 4,266 $ 14,011 Other 15,718 14,744 Other Current Liabilities, net $ 19,984 $ 28,755 |
Other Long-Term Liabilities | Other long-term liabilities consisted of: December 31, 2016 2015 Deferred Rent $ 5,858 $ 6,713 Lease Incentive Obligation 3,038 3,522 Antidumping Charges and Other 12,246 10,017 Other Long Term Liabilities, net $ 21,142 $ 20,252 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Rental Expense | Rental expense is as follows: Year Ended December 31, 2016 2015 2014 Rental expense $ 30,348 $ 28,825 $ 27,995 Rental expense to related parties 3,440 3,070 2,837 |
Future Minimum Rental Payments under Non-Cancellable Operating Leases | At December 31, 2016, t he future minimum rental payments under non-cancellable operating leases were as follows: Operating Leases Headquarters Lease Store Leases Distribution Centers & Other Leases Total Operating Leases 2017 $ 1,309 $ 28,366 $ 2,503 $ 32,178 2018 1,348 23,822 2,392 27,562 2019 1,389 19,368 2,305 23,062 2020 - 15,864 2,360 18,224 2021 - 10,098 2,081 12,179 Thereafter - 9,342 6,372 15,714 Total minimum lease payments $ 4,046 $ 106,860 $ 18,013 $ 128,919 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity [Abstract] | |
Computation of Basic and Diluted Net Income Per Common Share | The following table sets forth the computation of basic and diluted net income per common share: Year Ended December 31, 2016 2015 2014 Net (Loss) Income $ (68,563) $ (56,433) $ 63,371 Weighted Average Common Shares Outstanding—Basic 27,284,434 27,082,299 27,264,882 Effect of Dilutive Securities: Common Stock Equivalents — — 220,970 Weighted Average Common Shares Outstanding—Diluted 27,284,434 27,082,299 27,485,852 Net (Loss) Income per Common Share—Basic $ (2.51) $ (2.08) $ 2.32 Net (Loss) Income per Common Share—Diluted $ (2.51) $ (2.08) $ 2.31 |
Anti-Dilutive Securities Excluded from Computation of Weighted Average Common Shares Outstanding Diluted | The following have been excluded from the computation of Weighted Average Common Shares Outstanding—Diluted because the effect would be antidilutive: As of December 31, 2016 2015 2014 Stock Options 885,725 650,759 184,252 Restricted Shares 516,072 225,027 16,999 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation Expense | S tock-based compensation expense included in SG&A expenses consisted of: Year Ended December 31, 2016 2015 (1) 2014 Stock Options, Restricted Shares and Stock Appreciation Rights $ 5,568 $ 3,941 $ 5,593 ___________________ 1 Includes the impact of actual forfeitures in the period due to the resignation of certain senior executives. |
Summary of Activity Related to Stock Options | The following table summarizes activity related to stock options: Shares Weighted Average Exercise Price Remaining Average Contractual Term (Years) Aggregate Intrinsic Value Balance, December 31, 2013 749,490 $ 33.04 7.3 $ 52,358 Granted 79,126 100.05 Exercised (149,707) 21.04 Forfeited (26,101) 60.71 Balance, December 31, 2014 652,808 $ 42.81 6.9 $ 18,113 Granted 410,164 25.34 Exercised - 0.00 Forfeited (370,196) 44.71 Balance, December 31, 2015 692,776 $ 31.45 7.7 $ 1,283 Granted 443,147 13.51 Exercised (60,781) 9.37 Forfeited (239,528) 27.16 Balance, December 31, 2016 835,614 $ 24.86 7.5 $ 1,167 Exercisable at December 31, 2016 257,220 $ 33.93 $ 99 Vested and expected to vest December 31, 2016 835,614 $ 24.86 $ 1,167 |
Ranges of Assumptions | The following are the ranges of assumptions for the periods noted: Year Ended December 31, 2016 2015 2014 Expected dividend rate 0 % 0 % 0 % Expected stock price volatility 55 % 50 % 45 % Risk-free interest rate 1.3 % 1.7 % 1.8 % Expected term of options 5.5 years 5.5 years 5.5 years |
Summary of Activity Related to Restricted Stock Awards | The following table summarizes activity related to restricted shares: Shares Weighted Average Grant Date Fair Value Nonvested, December 31, 2013 178,335 $ 22.82 Granted 38,260 89.46 Released (45,503) 95.02 Forfeited (14,003) 54.90 Nonvested, December 31, 2014 157,089 $ 15.00 Granted 386,517 18.30 Released (27,187) 41.57 Forfeited (54,748) 45.93 Nonvested, December 31, 2015 461,671 $ 12.95 Granted 343,517 12.41 Released (130,523) 14.65 Forfeited (88,478) 18.29 Nonvested, December 31, 2016 586,187 $ 11.97 |
Summary of Activities Related to Stock Appreciation Rights | The following table summarizes activity related to SARs: Shares Weighted Average Exercise Price Remaining Average Contractual Term (Years) Aggregate Intrinsic Value Balance, December 31, 2013 16,156 $ 33.04 7.3 $ 938 Granted 1,941 100.05 Forfeited (1,870) 60.71 Balance, December 31, 2014 16,227 $ 42.81 6.9 $ 389 Granted - 0.00 Forfeited (170) 93.68 Balance, December 31, 2015 16,057 $ 47.58 6.8 $ - Granted 13,071 15.31 Forfeited (460) 62.87 Balance, December 31, 2016 28,668 $ 32.63 7.5 $ 6 Exercisable at December 31, 2016 13,727 $ 42.28 5.7 $ - |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes [Abstract] | |
Components of (Loss) Income Before Income Taxes | The components of (loss) income before income taxes were as follows: Year Ended December 31, 2016 2015 2014 United States $ (92,874) $ (80,136) $ 105,447 Foreign (1,399) (3,291) (1,864) Total (Loss) Income before Income Taxes $ (94,273) $ (83,427) $ 103,583 |
(Benefit) Provision for Income Taxes | Year Ended December 31, 2016 2015 2014 United States $ (92,874) $ (80,136) $ 105,447 Foreign (1,399) (3,291) (1,864) Total (Loss) Income before Income Taxes $ (94,273) $ (83,427) $ 103,583 The (benefit) provision for income taxes consisted of the following: Year Ended December 31, 2016 2015 2014 Current Federal $ (36,801) $ (14,088) $ 34,615 State (3,269) (975) 5,614 Foreign 155 133 135 Total Current (39,915) (14,930) 40,364 Deferred Federal 11,184 (9,276) (22) State 3,021 (2,788) (130) Foreign - - - Total Deferred 14,205 (12,064) (152) Income Tax (Benefit) Expense $ (25,710) $ (26,994) $ 40,212 |
Reconciliation of Significant Differences Between Income Tax Expenses Applying Federal Statutory Rate to Actual Income Tax Expense at Effective Rate | The reconciliation of significant differences between income tax expense applying the federal statutory rate and the actual income tax expense at the effective rate are as follows: Year Ended December 31, 2016 2015 2014 Income Tax (Benefit) Expense at Federal Statutory Rate $ (32,995) 35.0 % $ (29,200) 35.0 % $ 36,254 35.0 % (Decreases) Increases: State Income Taxes, Net of Federal Income Tax Benefit (2,275) 2.4 % (2,401) 2.9 % 3,711 3.6 % Valuation Allowance 15,207 (16.1) % 210 (0.2) % 458 0.4 % Foreign Operations (2,465) 2.6 % 1,075 (1.3) % 329 0.3 % Non-deductible penalty 875 (0.9) % 3,887 (4.7) % - - % Capital Loss (4,020) 4.3 % - - % - - % Other (37) - % (565) 0.7 % (540) (0.5) % Income Tax (Benefit) Expense $ (25,710) 27.3 % $ (26,994) 32.4 % $ 40,212 38.8 % |
Tax Effects of Temporary Differences that Result in Significant Portions of Deferred Tax Accounts | The tax effects of temporary differences that result in significant portions of the deferred tax accounts are as follows: December 31, 2016 2015 Deferred Tax Liabilities: Depreciation and Amortization and Other $ (19,157) $ (20,368) Total Gross Deferred Tax Liabilities (19,157) (20,368) Deferred Tax Assets: Stock-Based Compensation Expense 3,941 3,794 Reserves and Accruals 10,241 9,825 Employee Benefits 1,144 1,034 Inventory Reserves 3,336 10,699 Inventory Capitalization 5,218 4,457 Foreign Net Operating Losses 2,781 2,433 Loss Carryforwards and Other 6,338 966 Total Gross Deferred Tax Assets 32,999 33,208 Less Valuation Allowance (17,640) (2,433) Total Net Deferred Tax Assets 15,359 30,775 Net Deferred Tax Asset (Liability) $ (3,798) $ 10,407 |
Reconciliation of Unrecognized Tax Benefits | The reconciliation of unrecognized tax benefits was as follows: Year Ended December 31, 2016 2015 Balance at beginning of year $ 396 $ 1,232 (Decrease) increase based on tax position related to the current year 123 (180) Decreases in tax positions for prior years - (434) Settlements - (11) Lapse of statute (311) (211) Balance at end of year $ 208 $ 396 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies [Abstract] | |
Rollforward of the Reserve for Air Quality Testing Program | A rollforward of the reserve for the Company’s air quality testing program was as follows: 2016 2015 Balance at January 1 $ 809 $ - Provision 6,187 10,873 Reversal - (1,428) Payments (5,496) (8,636) Balance at December 31 $ 1,500 $ 809 |
Condensed Quarterly Financial I
Condensed Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Selected Quarterly Financial Information [Abstract] | |
Unaudited Quarterly Results | The following tables present the Company’s unaudited quarterly results for 2016 and 2015. Quarter Ended March 31, 2016 June 30, 2016 September 30, 2016 December 31, 2016 Net Sales $ 233,513 $ 238,092 $ 244,082 $ 244,901 Gross Profit 76,109 70,584 76,689 80,487 Selling, General and Administrative Expenses 117,236 89,900 100,661 89,707 Operating (Loss) Income (41,127) (19,316) (23,972) (9,220) Net (Loss) Income $ (32,402) $ (12,230) $ (18,438) $ (5,493) Net income per Common Share - Basic $ (1.20) $ (0.45) $ (0.68) $ (0.20) Net income per Common Share - Diluted $ (1.20) $ (0.45) $ (0.68) $ (0.20) Number of Stores Opened in Quarter 1 4 1 3 Comparable store net sales (Decrease) Increase (13.9) % (7.2) % 1.0 % 2.8 % Quarter Ended March 31, 2015 June 30, 2015 September 30, 2015 December 31, 2015 Net Sales $ 259,961 $ 247,944 $ 236,064 $ 234,807 Gross Profit 91,612 62,284 70,996 53,966 Selling, General and Administrative Expenses 97,680 90,551 88,333 85,487 Operating (Loss) Income (6,068) (28,267) (17,337) (31,521) Net (Loss) Income $ (7,780) $ (20,347) $ (8,479) $ (19,827) Net income per Common Share - Basic $ (0.29) $ (0.75) $ (0.31) $ (0.73) Net income per Common Share - Diluted $ (0.29) $ (0.75) $ (0.31) $ (0.73) Number of Stores Opened in Quarter 4 7 7 4 Comparable store net sales (Decrease) Increase (1.8) % (10.0) % (14.6) % (17.2) % |
Schedule of Certain Items Impacting Gross Profit and Selling General and Administrative Expenses | The following tables present certain items impacting gross profit and SG&A in the Company’s unaudited quarterly results for 2016 and 2015. Quarter Ended March 31, 2016 June 30, 2016 September 30, 2016 December 31, 2016 Gross profit: Antidumping Charges $ - $ 5,450 $ - $ - Indoor Air Quality Testing Program 2,895 3,292 - - SG&A: Securities and Derivatives Class Action 18,520 (600) 4,250 (2,910) Legal and Professional Fees 1 10,414 8,294 6,321 3,385 All Other 2 1,275 945 580 - Total $ 33,104 $ 17,381 $ 11,151 $ 475 Quarter Ended March 31, 2015 June 30, 2015 September 30, 2015 December 31, 2015 Gross profit: Inventory Impairments $ 1,063 $ 6,269 $ - $ 21,719 Antidumping Charges - 4,921 - - Indoor Air Quality Testing Program 2,313 4,918 2,412 (198) SG&A: Legal and Professional Fees 1 4,467 6,328 6,135 4,129 Lacey/DOJ Settlement 3 10,000 3,155 - - All Other 2 440 175 5,687 4,787 Total $ 18,283 $ 25,766 $ 14,234 $ 30,437 ___________________ 1 Represents charges to earnings related to our defense of various significant legal actions during the period. This does not include all legal costs incurred by the Company. 2 All other primarily relates to various payroll factors, including our retention initiatives, and impairment charges related to discontinuing non-core investments. 3 Represents settlement accruals related to the completed DOJ-Lacey Act investigation in 2015. |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2016USD ($)statestoreterritoryitem | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Organization And Business Operations [Line Items] | ||||||
Number of states in which stores operates | state | 46 | |||||
Number of domestic stores | store | 383 | |||||
Number of Canadian stores | territory | 8 | |||||
Deconsolidation of variable interest entity | $ 1,457 | $ 1,457 | ||||
Cash and cash equivalents | $ 10,271 | 26,703 | $ 20,287 | $ 80,634 | ||
Number of stores with third-party independent contractors | store | 258 | |||||
Due from Banks | $ 9,609 | 8,551 | ||||
Inventory valuation reserves | 7,070 | 26,882 | ||||
Asset impairment charge | $ 3,043 | |||||
Inventory lower of cost or market adjustment | 3,723 | 26,162 | ||||
Long-lived asset impairment charge | 1,350 | 0 | 0 | |||
Indefinite-lived intangible assets (excluding goodwill) | $ 800 | |||||
Minimum number of products offered | item | 400 | |||||
Current self insurance reserve | $ 2,130 | 1,976 | ||||
Minimum years of product warranty | 1 year | |||||
Maximum years of product warranty | 100 years | |||||
Product warranty reserve | $ 1,780 | 1,688 | ||||
Advertising expense | 80,079 | 77,455 | 82,604 | |||
Prepaid advertising | 747 | 1,495 | ||||
Current deferred tax asset | 6,090 | 21,045 | ||||
Long term deferred tax liability | 9,888 | 10,638 | ||||
Current deferred tax asset, if early adopted standard | 0 | |||||
Noncurrent deferred tax liability, if early adopted standard | 3,798 | |||||
Excess tax benefit from stock-based compensation | $ 54 | $ 4,004 | ||||
Sales Revenue, Net [Member] | ||||||
Organization And Business Operations [Line Items] | ||||||
Concentration risk, percentage | 2.00% | |||||
Laminate [Member] | ||||||
Organization And Business Operations [Line Items] | ||||||
Asset impairment charge | 22,499 | |||||
Engineered hardwood inventory | $ 0 | |||||
Tile Flooring and Related Accessories [Member] | ||||||
Organization And Business Operations [Line Items] | ||||||
Inventory lower of cost or market adjustment | $ 3,663 | |||||
Short-term Investments [Member] | ||||||
Organization And Business Operations [Line Items] | ||||||
Cash equivalents | $ 0 | $ 0 |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Sales Mix by Major Product) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Product Information [Line Items] | |||
Net sales | $ 960,588 | $ 978,776 | $ 1,047,419 |
Sales Revenue, Product Line [Member] | |||
Product Information [Line Items] | |||
Percent | 100.00% | 100.00% | 100.00% |
Solid and Engineered Hardwood [Member] | |||
Product Information [Line Items] | |||
Net sales | $ 318,397 | $ 378,501 | $ 406,887 |
Solid and Engineered Hardwood [Member] | Sales Revenue, Product Line [Member] | |||
Product Information [Line Items] | |||
Percent | 33.00% | 39.00% | 39.00% |
Bamboo, Cork, Vinyl Plank and Other [Member] | |||
Product Information [Line Items] | |||
Net sales | $ 255,071 | $ 221,776 | $ 212,735 |
Bamboo, Cork, Vinyl Plank and Other [Member] | Sales Revenue, Product Line [Member] | |||
Product Information [Line Items] | |||
Percent | 26.00% | 22.00% | 20.00% |
Moldings and Accessories [Member] | |||
Product Information [Line Items] | |||
Net sales | $ 172,517 | $ 184,144 | $ 195,539 |
Moldings and Accessories [Member] | Sales Revenue, Product Line [Member] | |||
Product Information [Line Items] | |||
Percent | 18.00% | 19.00% | 19.00% |
Laminate [Member] | |||
Product Information [Line Items] | |||
Net sales | $ 149,745 | $ 153,722 | $ 199,775 |
Laminate [Member] | Sales Revenue, Product Line [Member] | |||
Product Information [Line Items] | |||
Percent | 16.00% | 16.00% | 19.00% |
Non-Merchandise Services [Member] | |||
Product Information [Line Items] | |||
Net sales | $ 64,858 | $ 40,633 | $ 32,483 |
Non-Merchandise Services [Member] | Sales Revenue, Product Line [Member] | |||
Product Information [Line Items] | |||
Percent | 7.00% | 4.00% | 3.00% |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Estimated Useful Lives) (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Property and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Property and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 25 years |
Building and Building Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 15 years |
Building and Building Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 40 years |
Computer Software and Hardware [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Computer Software and Hardware [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Leasehold Improvement [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 1 year |
Leasehold Improvement [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 15 years |
Property and Equipment (Narrati
Property and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property and Equipment [Abstract] | |||
Capitalized Computer Software, Gross | $ 35,650 | $ 34,024 | |
Capitalized Computer Software, Amortization | $ 3,604 | $ 3,501 | $ 3,212 |
Property and Equipment (Schedul
Property and Equipment (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | $ 198,692 | $ 189,330 |
Less: Accumulated Depreciation and Amortization | 83,688 | 67,333 |
Property and Equipment, net | 115,004 | 121,997 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | 5,951 | 4,937 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | 44,283 | 44,234 |
Property and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | 61,358 | 59,015 |
Computer Software and Hardware [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | 47,637 | 44,026 |
Leasehold Improvement [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | 38,361 | 35,495 |
Asset under Construction [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | $ 1,102 | $ 1,623 |
Other Liabilities (Other Curren
Other Liabilities (Other Current Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Other Liabilities [Abstract] | ||
Accrued Legal and Settlement Expense | $ 4,266 | $ 14,011 |
Other | 15,718 | 14,744 |
Other Current Liabilities, net | $ 19,984 | $ 28,755 |
Other Liabilities (Other Long-T
Other Liabilities (Other Long-Term Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Other Liabilities [Abstract] | ||
Deferred Rent | $ 5,858 | $ 6,713 |
Lease Incentive Obligation | 3,038 | 3,522 |
Antidumping Charges and Other | 12,246 | 10,017 |
Other Long Term Liabilities, net | $ 21,142 | $ 20,252 |
Revolving Credit Agreement (Nar
Revolving Credit Agreement (Narrative) (Details) - USD ($) $ in Thousands | Feb. 16, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Aug. 16, 2016 |
Line of Credit Facility [Line Items] | |||||
Outstanding balance | $ 40,000 | $ 20,000 | |||
Additional borrowing on Revolving Credit Facility | $ 37,000 | $ 39,000 | $ 53,000 | ||
Credit Agreement [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit facility, covenant terms | The Credit Agreement contains a fixed charge coverage ratio covenant that becomes effective in the event that the Company's excess borrowing availability under the Revolving Credit Facility falls below the greater of $15,000 or 10% of the maximum revolver amount | ||||
Credit facility maturity date | Aug. 17, 2021 | ||||
Outstanding balance | $ 40,000 | ||||
Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 100,000 | ||||
Line of credit covenant trigger | 15,000 | ||||
Revolving Credit Facility [Member] | Credit Agreement [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 150,000 | ||||
Credit facility, unused capacity, commitment fee percentage | 0.25% | ||||
Decription of variable rate basis | Interest on Base Rate loans is charged at varying per annum rates computed by applying a margin ranging from 0.50% to 0.75% (dependent on the Company's average daily excess borrowing availability under the Revolving Credit Facility during the most recently completed fiscal quarter) over the Base Rate. Interest on LIBOR Rate loans and fees for standby letters of credit are charged at varying per annum rates computed by applying a margin ranging from 1.50% to 1.75% (dependent on the Company's average daily excess borrowing availability under the Revolving Credit Facility during the most recently completed fiscal quarter) over the applicable LIBOR rate for one, two, three or six month interest periods as selected by the Company. | ||||
Credit facility remaining borrowing capacity | $ 90,687 | ||||
Letter of Credit [Member] | Credit Agreement [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Outstanding balance | $ 4,313 | ||||
Minimum [Member] | Revolving Credit Facility [Member] | Base Rate [Member] | Credit Agreement [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 0.50% | ||||
Minimum [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Credit Agreement [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 1.50% | ||||
Maximum [Member] | Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility, unused capacity, commitment fee percentage | 10.00% | ||||
Maximum [Member] | Revolving Credit Facility [Member] | Credit Agreement [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 200,000 | ||||
Maximum [Member] | Revolving Credit Facility [Member] | Base Rate [Member] | Credit Agreement [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 0.75% | ||||
Maximum [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Credit Agreement [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 1.75% | ||||
Subsequent Event [Member] | Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Outstanding balance | $ 65,000 | ||||
Credit facility remaining borrowing capacity | 65,700 | ||||
Additional borrowing on Revolving Credit Facility | $ 25,000 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - store | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Leased Assets [Line Items] | |||
Operating Leases Term | 5 years | ||
Corporate Headquarters [Member] | |||
Operating Leased Assets [Line Items] | |||
Lease Expiration Date | Dec. 31, 2019 | ||
West Coast Distribution Centers [Member] | |||
Operating Leased Assets [Line Items] | |||
Lease Expiration Date | Oct. 31, 2024 | ||
Controlled Companies [Member] | |||
Operating Leased Assets [Line Items] | |||
Related Party Leased Stores | 29 | 30 | 30 |
Percentage Aggregate Number Store Lease in Operation | 7.80% | 8.30% | 8.80% |
Minimum [Member] | |||
Operating Leased Assets [Line Items] | |||
Operating Lease Renewal Options | 1 year | ||
Maximum [Member] | |||
Operating Leased Assets [Line Items] | |||
Operating Lease Renewal Options | 5 years |
Leases (Rental Expense) (Detail
Leases (Rental Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Leased Assets [Line Items] | |||
Rental expense | $ 30,348 | $ 28,825 | $ 27,995 |
Controlled Companies [Member] | |||
Operating Leased Assets [Line Items] | |||
Rental expense | $ 3,440 | $ 3,070 | $ 2,837 |
Leases (Future Minimum Rental P
Leases (Future Minimum Rental Payments under Non-Cancellable Operating Leases) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Operating Leased Assets [Line Items] | |
2,017 | $ 32,178 |
2,018 | 27,562 |
2,019 | 23,062 |
2,020 | 18,224 |
2,021 | 12,179 |
Thereafter | 15,714 |
Total minimum lease payments | 128,919 |
Store Leases[Member] | |
Operating Leased Assets [Line Items] | |
2,017 | 28,366 |
2,018 | 23,822 |
2,019 | 19,368 |
2,020 | 15,864 |
2,021 | 10,098 |
Thereafter | 9,342 |
Total minimum lease payments | 106,860 |
Distribution Centers & Other Leases [Member] | |
Operating Leased Assets [Line Items] | |
2,017 | 2,503 |
2,018 | 2,392 |
2,019 | 2,305 |
2,020 | 2,360 |
2,021 | 2,081 |
Thereafter | 6,372 |
Total minimum lease payments | 18,013 |
Headquarters Leases [Member] | |
Operating Leased Assets [Line Items] | |
2,017 | 1,309 |
2,018 | 1,348 |
2,019 | 1,389 |
Total minimum lease payments | $ 4,046 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 17, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jan. 31, 2014 | Dec. 31, 2012 |
Stock Repurchase Programs [Line Items] | ||||||
Shares issued as part of settlement agreement | 1,000,000 | |||||
Value of shares issued as part of settlement agreement | $ 16,760 | $ 16,760 | ||||
Share price | $ 16.76 | |||||
Total aggregate costs | $ 433 | $ 295 | $ 53,310 | |||
Stock Repurchase Program [Member] | ||||||
Stock Repurchase Programs [Line Items] | ||||||
Stock repurchase program, authorized amount | 150,000 | $ 50,000 | $ 100,000 | |||
Common stock repurchased, remaining authorized amount | $ 14,728 | |||||
Shares repurchased | 0 | 0 | 671,200 | |||
Average price per share | $ 77.68 | |||||
Total aggregate costs | $ 52,138 |
Stockholders' Equity (Computati
Stockholders' Equity (Computation of Basic and Diluted Net Income Per Common Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stockholders' Equity [Abstract] | |||||||||||
Net (Loss) Income | $ (5,493) | $ (18,438) | $ (12,230) | $ (32,402) | $ (19,827) | $ (8,479) | $ (20,347) | $ (7,780) | $ (68,563) | $ (56,433) | $ 63,371 |
Weighted Average Common Shares Outstanding Basic | 27,284,434 | 27,082,299 | 27,264,882 | ||||||||
Effect of Dilutive Securities: | |||||||||||
Common Stock Equivalents | 220,970 | ||||||||||
Weighted Average Common Shares Outstanding Diluted | 27,284,434 | 27,082,299 | 27,485,852 | ||||||||
Net (Loss) Income per Common Share Basic | $ (0.20) | $ (0.68) | $ (0.45) | $ (1.20) | $ (0.73) | $ (0.31) | $ (0.75) | $ (0.29) | $ (2.51) | $ (2.08) | $ 2.32 |
Net (Loss) Income per Common Share Diluted | $ (0.20) | $ (0.68) | $ (0.45) | $ (1.20) | $ (0.73) | $ (0.31) | $ (0.75) | $ (0.29) | $ (2.51) | $ (2.08) | $ 2.31 |
Stockholders' Equity (Anti-Dilu
Stockholders' Equity (Anti-Dilutive Securities Excluded from Computation of Weighted Average Common Shares Outstanding-Diluted) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of earning per share | 885,725 | 650,759 | 184,252 |
Restricted Shares [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of earning per share | 516,072 | 225,027 | 16,999 |
Stock Based Compensation (Narra
Stock Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock options exercised intrinsic value | $ 343 | $ 0 | $ 10,278 |
Unrecognized compensation cost related to unvested option | $ 3,612 | ||
Weighted average period of recognition | 4 years | ||
Weighted average fair value of option granted | $ 6.75 | $ 11.87 | $ 43.21 |
Two Thousand And Eleven Plan [Member] | |||
Common stock shares authorized for issuance | 6,100,000 | ||
Common stock available for future grant | 1,100,000 | ||
Two Thousand And Eleven Plan [Member] | Maximum [Member] | |||
Share based compensation stock options expiration period | 10 years | ||
Non Employee Director [Member] | |||
Deferred stock units outstanding | 131,506 | 95,553 | |
Non Employee Director [Member] | Maximum [Member] | |||
Deferred percentage of director fees invested in deferred stock units | 100.00% | ||
Restricted Shares [Member] | |||
Weighted average period of recognition | 2 years 4 months 24 days | ||
Fair value of restricted stock awards released | $ 1,617 | $ 941 | $ 4,371 |
Unrecognized compensation cost related to unvested restricted stock awards | $ 4,697 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock-Based Compensation [Abstract] | |||
Stock Options, Restricted Shares and Stock Appreciation Right | $ 5,568 | $ 3,941 | $ 5,593 |
Stock Options, Restricted Shares and Stock Appreciation Rights | $ 5,568 | $ 3,941 | $ 5,593 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Activity Related to Stock Options) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Shares | ||||
Beginning Balance | 692,776 | 652,808 | 749,490 | |
Granted | 443,147 | 410,164 | 79,126 | |
Exercised | (60,781) | (149,707) | ||
Forfeited | (239,528) | (370,196) | (26,101) | |
Ending Balance | 835,614 | 692,776 | 652,808 | 749,490 |
Ending Balance, Exercisable | 257,220 | |||
Ending Balance, Vested and expected to vest | 835,614 | |||
Weighted Average Exercise Price | ||||
Beginning Balance | $ 31.45 | $ 42.81 | $ 33.04 | |
Granted | 13.51 | 25.34 | 100.05 | |
Exercised | 9.37 | 0 | 21.04 | |
Forfeited | 27.16 | 44.71 | 60.71 | |
Ending Balance | 24.86 | $ 31.45 | $ 42.81 | $ 33.04 |
Ending Balance, Exercisable | 33.93 | |||
Ending Balance, Vested and expected to vest | $ 24.86 | |||
Remaining Average Contractual Term (Years) for outstanding shares | ||||
Remaining Average Contractual Term (Years) for outstanding shares | 7 years 6 months | 7 years 8 months 12 days | 6 years 10 months 24 days | 7 years 3 months 18 days |
Aggregate Intrinsic Value | ||||
Aggregate Intrinsic Value | $ 1,167 | $ 1,283 | $ 18,113 | $ 52,358 |
Aggregate Intrinsic Value, Exercisable | 99 | |||
Aggregate Intrinsic Value, Vested and expected to vest | $ 1,167 |
Stock-Based Compensation (Range
Stock-Based Compensation (Ranges of Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock-Based Compensation [Abstract] | |||
Expected dividend rate | 0.00% | 0.00% | 0.00% |
Expected stock price volatility | 55.00% | 50.00% | 45.00% |
Risk-free interest rate | 1.30% | 1.70% | 1.80% |
Risk-free interest rate, minimum | 1.70% | 1.80% | |
Expected term of options | 5 years 6 months | 5 years 6 months | 5 years 6 months |
Stock-Based Compensation (Sum49
Stock-Based Compensation (Summary of Activity Related to Restricted Stock Awards) (Details) - Restricted Shares [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Shares | |||
Beginning Balance | 461,671 | 157,089 | 178,335 |
Granted | 343,517 | 386,517 | 38,260 |
Released | (130,523) | (27,187) | (45,503) |
Forfeited | (88,478) | (54,748) | (14,003) |
Ending Balance | 586,187 | 461,671 | 157,089 |
Weighted Average Grant Date Fair Value | |||
Beginning Balance | $ 12.95 | $ 15 | $ 22.82 |
Granted | 12.41 | 18.30 | 89.46 |
Released | 14.65 | 41.57 | 95.02 |
Forfeited | 18.29 | 45.93 | 54.90 |
Ending Balance | $ 11.97 | $ 12.95 | $ 15 |
Stock-Based Compensation (Sum50
Stock-Based Compensation (Summary of Activities Related to Stock Appreciation Rights) (Details) - Stock Appreciation Rights (SARs) [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Shares | ||||
Beginning Balance | 16,057 | 16,227 | 16,156 | |
Granted | 13,071 | 1,941 | ||
Forfeited | (460) | (170) | (1,870) | |
Ending Balance | 28,668 | 16,057 | 16,227 | 16,156 |
Ending Balance, Exercisable | 13,727 | |||
Weighted Average Exercise Price | ||||
Beginning Balance | $ 47.58 | $ 42.81 | $ 33.04 | |
Granted | 15.31 | 0 | 100.05 | |
Forfeited | 62.87 | 93.68 | 60.71 | |
Ending Balance | 32.63 | $ 47.58 | $ 42.81 | $ 33.04 |
Ending Balance, Exercisable | $ 42.28 | |||
Remaining average contractual term | ||||
Remaining average contractual term | 7 years 6 months | 6 years 9 months 18 days | 6 years 10 months 24 days | 7 years 3 months 18 days |
Remaining average contractual term, Exercisable | 5 years 8 months 12 days | |||
Aggregate Intrinsic Value | ||||
Aggregate intrinsic value | $ 6 | $ 389 | $ 938 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Line Items] | |||
Income tax refunds | $ 27,422 | ||
Income tax paid | $ 7,855 | $ 33,281 | |
Operating loss carryforwards, valuation allowance increased | 15,207 | 210 | 458 |
Unrecognized tax benefits | 208 | 396 | $ 1,232 |
Unrecognized tax benefits that would impact effective tax rate | 135 | 257 | |
CANADA | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards, valuation allowance increased | 348 | ||
Net operating losses carryforwards | $ 12,912 | $ 11,797 | |
Operating loss carryforwards, expiration year | 2,030 | ||
Operating loss carryforwards, offset period | 20 years | ||
U.S. | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards, valuation allowance increased | $ 14,859 |
Income Taxes (Components of Inc
Income Taxes (Components of Income (Loss) Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Abstract] | |||
United States | $ (92,874) | $ (80,136) | $ 105,447 |
Foreign | (1,399) | (3,291) | (1,864) |
Total (Loss) Income Before Income Taxes | $ (94,273) | $ (83,427) | $ 103,583 |
Income Taxes ((Benefit) Provisi
Income Taxes ((Benefit) Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current | |||
Federal | $ (36,801) | $ (14,088) | $ 34,615 |
State | (3,269) | (975) | 5,614 |
Foreign | 155 | 133 | 135 |
Total Current | (39,915) | (14,930) | 40,364 |
Deferred | |||
Federal | 11,184 | (9,276) | (22) |
State | 3,021 | (2,788) | (130) |
Foreign | |||
Total Deferred | 14,205 | (12,064) | (152) |
Income Tax (Benefit) Expense | $ (25,710) | $ (26,994) | $ 40,212 |
Income Taxes (Effective Income
Income Taxes (Effective Income Tax Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Abstract] | |||
Income Tax (Benefit) Expense at Federal Statutory Rate | $ (32,995) | $ (29,200) | $ 36,254 |
State Income Taxes, Net of Federal Income Tax Benefit | (2,275) | (2,401) | 3,711 |
Valuation Allowance | 15,207 | 210 | 458 |
Foreign Operations | (2,465) | 1,075 | 329 |
Non-deductible penalty | 875 | 3,887 | |
Capital Loss | (4,020) | ||
Other | (37) | (565) | (540) |
Income Tax (Benefit) Expense | $ (25,710) | $ (26,994) | $ 40,212 |
Income Tax Expense at Federal Statutory Rate | 35.00% | 35.00% | 35.00% |
State Income Taxes, Net of Federal Income Tax Benefit | 2.40% | 2.90% | 3.60% |
Valuation Allowance | (16.10%) | (0.20%) | 0.40% |
Foreign Operations | 2.60% | (1.30%) | 0.30% |
Non-deductible penalty | (0.90%) | (4.70%) | |
Capital Loss | 4.30% | ||
Other | 0.70% | (0.50%) | |
Total | 27.30% | 32.40% | 38.80% |
Income Taxes (Tax Effects of Te
Income Taxes (Tax Effects of Temporary Differences Result in Significant Portions of Deferred Tax Accounts) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred Tax Liabilities: | ||
Depreciation and Amortization and Other | $ (19,157) | $ (20,368) |
Total Gross Deferred Tax Liabilities | (19,157) | (20,368) |
Deferred Tax Assets: | ||
Stock-Based Compensation Expense | 3,941 | 3,794 |
Reserves and Accruals | 10,241 | 9,825 |
Employee Benefits | 1,144 | 1,034 |
Inventory Reserves | 3,336 | 10,699 |
Inventory Capitalization | 5,218 | 4,457 |
Foreign Net Operating Losses | 2,781 | 2,433 |
Loss Carryforwards and Other | 6,338 | 966 |
Total Gross Deferred Tax Assets | 32,999 | 33,208 |
Less Valuation Allowance | (17,640) | (2,433) |
Total Net Deferred Tax Assets | 15,359 | 30,775 |
Net Deferred Tax Asset (Liability) | $ 10,407 | |
Deferred tax liability | $ (3,798) |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Abstract] | ||
Balance | $ 396 | $ 1,232 |
Increase based on tax position related to the current year | 123 | |
(Decrease) based on tax position related to the current year | (180) | |
Decreases in tax positions for prior years | (434) | |
Settlements | (11) | |
Lapse of statute | (311) | (211) |
Balance | $ 208 | $ 396 |
Profit Sharing Plan (Narrative)
Profit Sharing Plan (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | 36 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | |
Profit-sharing Plan [Abstract] | ||||
Employer matching contribution percentage | 100.00% | |||
Employer matching contribution Additional percentage | 50.00% | |||
Eligible service age for profit-sharing plan | 21 years | |||
Eligible service period for profit-sharing plan | 3 months | |||
Employer contribution percentage | 3.00% | |||
Employer contribution Additional percentage | 2.00% | |||
Company matching contribution to benefit plans | $ 2,286 | $ 2,019 | $ 1,937 | |
Company matching contribution percentage vested | 100.00% |
Commitments and Contingencies58
Commitments and Contingencies (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | Nov. 17, 2016 | Oct. 07, 2015 | Feb. 28, 2017 | Jan. 31, 2017 | Dec. 31, 2016 | Jul. 31, 2016 | May 31, 2016 | Mar. 31, 2016 | Jul. 31, 2015 | Dec. 31, 2011 | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2011 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Nov. 30, 2012 | Mar. 31, 2018 | Jun. 30, 2016 | Jun. 30, 2015 |
Loss Contingencies [Line Items] | ||||||||||||||||||||
Stock Issued upon Legal Settlement (in shares) | 1 | |||||||||||||||||||
Stock Issued upon Legal Settlement | $ 16,760 | $ 16,760 | ||||||||||||||||||
Share Price | $ 16.76 | |||||||||||||||||||
Air Quality Testing Program Accrual | $ 1,500 | $ 1,500 | $ 1,500 | $ 1,500 | $ 809 | |||||||||||||||
Antidumping Duties [Member] | ||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||
Environmental Compliance Plan, Outside Audit Period | 5 years | |||||||||||||||||||
Loss Contingency Multilayered Handwood Products Purchase Percentage | 7.00% | 6.00% | 10.00% | |||||||||||||||||
Loss Contingency Purchase Price Of Antidumping Duty Rate | 3.30% | |||||||||||||||||||
Loss Contingency Purchase Price Of Countervailing Duties Rate | 1.50% | |||||||||||||||||||
Antidumping Duties [Member] | First Annual Review [Member] | ||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||
Loss Contingency, Estimate of Possible Loss | $ 833 | |||||||||||||||||||
Loss Contingency Modified Purchase Price Of Antidumping Duty Rate | 5.92% | |||||||||||||||||||
Loss Contingency Modified Purchase Price Of Countervailing Duties Rate | 0.83% | |||||||||||||||||||
Antidumping Duties [Member] | Second Annual Review [Member] | ||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||
Loss Contingency, Estimate of Possible Loss | $ 4,089 | |||||||||||||||||||
Loss Contingency Modified Purchase Price Of Antidumping Duty Rate | 13.74% | |||||||||||||||||||
Loss Contingency Purchase Price Of Countervailing Duties Rate | 0.99% | |||||||||||||||||||
Antidumping Duties [Member] | Third Annual Review [Member] | ||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||
Loss Contingency, Estimate of Possible Loss | $ 5,500 | |||||||||||||||||||
Loss Contingency Modified Purchase Price Of Antidumping Duty Rate | 17.37% | |||||||||||||||||||
Loss Contingency Modified Purchase Price Of Countervailing Duties Rate | 1.38% | |||||||||||||||||||
Antidumping Duties [Member] | Third Annual Review [Member] | Other Noncurrent Liabilities [Member] | ||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||
Loss Contingency, Estimate of Possible Loss | $ 10,400 | $ 10,400 | 10,400 | $ 10,400 | $ 4,900 | |||||||||||||||
Antidumping Duties [Member] | Fourth Annual Review [Member] | ||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||
Loss Contingency Modified Purchase Price Of Antidumping Duty Rate | 4.92% | |||||||||||||||||||
Antidumping Duties [Member] | Fourth Annual Review [Member] | Subsequent Event [Member] | ||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||
Loss Contingency Modified Purchase Price Of Countervailing Duties Rate | 1.68% | |||||||||||||||||||
Lacey Act Related Matters [Member] | ||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||
Settlement Agreement Date | October 7, 2015 | |||||||||||||||||||
Settlement Payment | $ 8,200 | |||||||||||||||||||
Environmental Compliance Plan, Probation Period | 5 years | |||||||||||||||||||
Lacey Act Related Matters [Member] | Scenario, Forecast [Member] | ||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||
Settlement Liability, Noncurrent | $ 1,800 | |||||||||||||||||||
Lacey Act Related Matters [Member] | Subsequent Event [Member] | ||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||
Settlement Payment | $ 2,000 | |||||||||||||||||||
Prop 65 Matter [Member] | ||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||
Settlement Agreement Date | April 4, 2016 | |||||||||||||||||||
Proceeds from Legal Settlements | $ 100 | |||||||||||||||||||
Department Of Justice [Member] | ||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||
Settlement Agreement Date | January 8, 2016 | |||||||||||||||||||
Litigation Settlement, Amount | $ 3,155 | |||||||||||||||||||
California Air Resources Board [Member] | ||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||
Settlement Payment | $ 2,500 | |||||||||||||||||||
Securities Litigation Matter [Member] | ||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||
Settlement Agreement Date | November 17, 2016 | |||||||||||||||||||
Settlement Liability, Noncurrent | $ 0 | $ 0 | 0 | $ 0 | ||||||||||||||||
Loss Contingency, Damages Paid, Value | $ 26,000 | |||||||||||||||||||
Stock Issued upon Legal Settlement (in shares) | 1 | |||||||||||||||||||
Stock Issued upon Legal Settlement | $ 16,760 | |||||||||||||||||||
Share Price | $ 16.76 | |||||||||||||||||||
Other Selling, General and Administrative Expense | $ (2,910) | |||||||||||||||||||
Litigation Settlement, Expense | $ 16,760 | |||||||||||||||||||
Derivative Litigation Matters [Member] | ||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||
Settlement Liability, Current | $ 2,500 | |||||||||||||||||||
Loss Contingency, Damages Paid, Value | $ 2,500 | |||||||||||||||||||
Loss Contingency, Damages Awarded, Value | $ 26,000 | |||||||||||||||||||
Fine [Member] | Lacey Act Related Matters [Member] | ||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||
Litigation Settlement, Amount | $ 10,000 |
Commitments and Contingencies59
Commitments and Contingencies (Reserve for Air Quality Testing Program) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies [Abstract] | ||
Air quality testing program accrual, Beginning balance | $ 809 | |
Provision | 6,187 | 10,873 |
Reversal | (1,428) | |
Payments | (5,496) | (8,636) |
Air quality testing program accrual, Ending balance | $ 1,500 | $ 809 |
Condensed Quarterly Financial60
Condensed Quarterly Financial Information (Unaudited Quarterly Results) (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016USD ($)store$ / shares | Sep. 30, 2016USD ($)store$ / shares | Jun. 30, 2016USD ($)store$ / shares | Mar. 31, 2016USD ($)store$ / shares | Dec. 31, 2015USD ($)store$ / shares | Sep. 30, 2015USD ($)store$ / shares | Jun. 30, 2015USD ($)store$ / shares | Mar. 31, 2015USD ($)store$ / shares | Dec. 31, 2016USD ($)$ / shares | Dec. 31, 2015USD ($)$ / shares | Dec. 31, 2014USD ($)$ / shares | |
Net Sales | $ 244,901 | $ 244,082 | $ 238,092 | $ 233,513 | $ 234,807 | $ 236,064 | $ 247,944 | $ 259,961 | $ 960,588 | $ 978,776 | $ 1,047,419 |
Gross Profit | 80,487 | 76,689 | 70,584 | 76,109 | 53,966 | 70,996 | 62,284 | 91,612 | 303,869 | 278,858 | 418,167 |
Selling, General and Administrative Expenses | 89,707 | 100,661 | 89,900 | 117,236 | 85,487 | 88,333 | 90,551 | 97,680 | 397,504 | 362,051 | 314,094 |
Operating (Loss) Income | (9,220) | (23,972) | (19,316) | (41,127) | (31,521) | (17,337) | (28,267) | (6,068) | (93,635) | (83,193) | 104,073 |
Net (Loss) Income | $ (5,493) | $ (18,438) | $ (12,230) | $ (32,402) | $ (19,827) | $ (8,479) | $ (20,347) | $ (7,780) | $ (68,563) | $ (56,433) | $ 63,371 |
Net Income per Common Share - Basic | $ / shares | $ (0.20) | $ (0.68) | $ (0.45) | $ (1.20) | $ (0.73) | $ (0.31) | $ (0.75) | $ (0.29) | $ (2.51) | $ (2.08) | $ 2.32 |
Net (Loss) Income per Common Share -- Diluted | $ / shares | $ (0.20) | $ (0.68) | $ (0.45) | $ (1.20) | $ (0.73) | $ (0.31) | $ (0.75) | $ (0.29) | $ (2.51) | $ (2.08) | $ 2.31 |
Number of Stores Opened in Quarter | store | 3 | 1 | 4 | 1 | 4 | 7 | 7 | 4 | |||
Comparable store net sales (Decrease) Increase | 2.80% | 1.00% | (7.20%) | (13.90%) | (17.20%) | (14.60%) | (10.00%) | (1.80%) | |||
Inventory Lower of Cost or Market Adjustments | $ 3,723 | $ 26,162 | |||||||||
Impairment of Long-Lived Assets | $ 1,350 | $ 0 | $ 0 | ||||||||
Tile Flooring and Related Accessories [Member] | |||||||||||
Inventory Lower of Cost or Market Adjustments | $ 3,663 |
Condensed Quarterly Financial61
Condensed Quarterly Financial Information (Certain Items Impacting Gross Profit and SG&A) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Interim Period, Costs Not Allocable [Line Items] | ||||||||||||
Gross profit | $ 80,487 | $ 76,689 | $ 70,584 | $ 76,109 | $ 53,966 | $ 70,996 | $ 62,284 | $ 91,612 | $ 303,869 | $ 278,858 | $ 418,167 | |
SG&A | 89,707 | 100,661 | 89,900 | 117,236 | 85,487 | 88,333 | 90,551 | 97,680 | $ 397,504 | $ 362,051 | $ 314,094 | |
Inventory Impairments [Member] | ||||||||||||
Interim Period, Costs Not Allocable [Line Items] | ||||||||||||
Gross profit | 21,719 | 6,269 | 1,063 | |||||||||
Antidumping Charges [Member] | ||||||||||||
Interim Period, Costs Not Allocable [Line Items] | ||||||||||||
Gross profit | 5,450 | 4,921 | ||||||||||
Indoor Air Quality Testing Program [Member] | ||||||||||||
Interim Period, Costs Not Allocable [Line Items] | ||||||||||||
Gross profit | 3,292 | 2,895 | (198) | 2,412 | 4,918 | 2,313 | ||||||
Securities and Derivatives Class Action [Member] | ||||||||||||
Interim Period, Costs Not Allocable [Line Items] | ||||||||||||
SG&A | (2,910) | 4,250 | (600) | 18,520 | ||||||||
Legal and Professional Fees [Member] | ||||||||||||
Interim Period, Costs Not Allocable [Line Items] | ||||||||||||
SG&A | [1] | 3,385 | 6,321 | 8,294 | 10,414 | 4,129 | 6,135 | 6,328 | 4,467 | |||
Lacey and DOJ Settlement [Member] | ||||||||||||
Interim Period, Costs Not Allocable [Line Items] | ||||||||||||
SG&A | [2] | 3,155 | 10,000 | |||||||||
All Other [Member] | ||||||||||||
Interim Period, Costs Not Allocable [Line Items] | ||||||||||||
SG&A | [3] | 580 | 945 | 1,275 | 4,787 | 5,687 | 175 | 440 | ||||
Selling, General and Administrative Expenses [Member] | ||||||||||||
Interim Period, Costs Not Allocable [Line Items] | ||||||||||||
SG&A | $ 475 | $ 11,151 | $ 17,381 | $ 33,104 | $ 30,437 | $ 14,234 | $ 25,766 | $ 18,283 | ||||
[1] | Represents charges to earnings related to our defense of various significant legal actions during the period. This does not include all legal costs incurred by the Company. | |||||||||||
[2] | Represents settlement accruals related to the completed DOJ-Lacey Act investigation in 2015. | |||||||||||
[3] | All other primarily relates to various payroll factors, including our retention initiatives, and impairment charges related to discontinuing non-core investments. |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - USD ($) $ in Thousands | Feb. 16, 2017 | Feb. 28, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Subsequent Event [Line Items] | |||||
Additional borrowing on Revolving Credit Facility | $ 37,000 | $ 39,000 | $ 53,000 | ||
Revolving Credit Facility | 40,000 | $ 20,000 | |||
Lacey Act Related Matters [Member] | |||||
Subsequent Event [Line Items] | |||||
Settlement Payment | $ 8,200 | ||||
Subsequent Event [Member] | Lacey Act Related Matters [Member] | |||||
Subsequent Event [Line Items] | |||||
Settlement Payment | $ 2,000 | ||||
Revolving Credit Facility [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Additional borrowing on Revolving Credit Facility | $ 25,000 | ||||
Revolving Credit Facility | 65,000 | ||||
Credit facility remaining borrowing capacity | $ 65,700 |
Schedule II - Analysis of Val63
Schedule II - Analysis of Valuation and Qualifying Accounts (Valuation of Qualifying Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Inventory Reserve for Loss or Obsolescence [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance Beginning of Year | $ 26,882 | $ 3,242 | $ 1,275 |
Additions Charged to Cost and Expenses | 3,723 | 28,897 | 3,198 |
Deductions | (23,535) | (5,257) | (1,231) |
Other | |||
Balance End of Year | 7,070 | 26,882 | 3,242 |
Income Tax Valuation Allowance [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance Beginning of Year | 2,433 | 2,223 | 1,765 |
Additions Charged to Cost and Expenses | 15,207 | 210 | 458 |
Deductions | |||
Other | |||
Balance End of Year | $ 17,640 | 2,433 | 2,223 |
Bellawood [Member] | Inventory Reserve for Loss or Obsolescence [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Valuation Allowances and Reserves, Reserves of Businesses Acquired | $ 1,200 | ||
Tile [Member] | Inventory Reserve for Loss or Obsolescence [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Additions Charged to Cost and Expenses | 3,663 | ||
Laminate Flooring [Member] | Inventory Reserve for Loss or Obsolescence [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Additions Charged to Cost and Expenses | $ 22,499 |