XML 54 R18.htm IDEA: XBRL DOCUMENT
v2.4.1.9

BENEFIT PLANS | 12 Months Ended
--- | ---
Dec. 31, 2014
BENEFIT PLANS [Abstract] |
BENEFIT PLANS | Note 10, Benefit Plans: During the fourth quarter of 2014, we settled the obligations associated with our defined benefit pension plan (the "Pension Plan"). The Pension Plan covered substantially all employees hired on or before December 31, 2005 and was closed to any employees hired after that date. The benefits are based on years of service and the employee's final average compensation. No new benefits were earned under the Pension Plan for additional years of service after December 31, 2006. Plan participants not yet retired received vested benefits from the plan assets by electing either a lump sum distribution, roll-over contribution to a 401(k) or individual retirement plans, or an annuity contract with a third-party insurance company. Retired participants automatically received annuities. Pension settlement charges of $21,623,000 million, before tax, were recorded during the fourth quarter of 2014 as payments were made from the Plan in accordance with the participants' elections. The remaining $813,000 plan assets will fund additional plan termination professional fees, administration expenses and any required adjustments identified to amounts settled, with the remainder distributed equally to current plan participants after final IRS approval is obtained. Accordingly, we have no future obligations related to the terminated Pension Plan. We also have a non-qualified, non-contributory supplemental executive retirement plan (the "SERP") for employees whose retirement benefits are reduced due to their annual compensation levels. The SERP provides annual benefits amounting to 55% of final average earnings less benefits payable from our pension plan and Social Security benefits. The SERP limits the total amount of annual retirement benefits that may be paid to a participant from all sources (Retirement Plan, Social Security and the SERP) to $125,000. The SERP is not funded so we pay benefits directly to participants. The following table summarizes information about our pension plan and SERP.
|  | Pension Plan |  |  | SERP |
(In thousands) |  | 2014 |  |  | 2013 |  |  | 2014 |  |  | 2013 |
Change in benefit obligation: |  |  |  |  |  |  |  |  |  |  |  |
Benefit obligation at beginning of the year |  | $ | 73,456 |  |  | $ | 80,610 |  |  | $ | 5,974 |  |  | $ | 6,368 |
Service cost |  |  | — |  |  |  | — |  |  |  | 117 |  |  |  | 134 |
Interest cost |  |  | 3,232 |  |  |  | 3,278 |  |  |  | 289 |  |  |  | 259 |
Plan settlements |  |  | (83,453 | ) |  |  | — |  |  |  | — |  |  |  | — |
Special termination benefits |  |  | 813 |  |  |  | — |  |  |  | — |  |  |  | — |
Actuarial losses (gains) |  |  | 10,700 |  |  |  | (6,838 | ) |  |  | 1,095 |  |  |  | (595 | )
Benefits paid |  |  | (3,935 | ) |  |  | (3,594 | ) |  |  | (205 | ) |  |  | (192 | )
Benefit obligation at end of year |  |  | 813 |  |  |  | 73,456 |  |  |  | 7,270 |  |  |  | 5,974 |
Change in plan assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fair value of plan assets at beginning of year |  |  | 82,904 |  |  |  | 73,842 |  |  |  | — |  |  |  | — |
Employer contribution |  |  | — |  |  |  | 4,200 |  |  |  | 205 |  |  |  | 192 |
Actual return on plan assets |  |  | 5,297 |  |  |  | 8,456 |  |  |  | — |  |  |  | — |
Plan settlements |  |  | (83,453 | ) |  |  | — |  |  |  | — |  |  |  | — |
Benefits paid |  |  | (3,935 | ) |  |  | (3,594 | ) |  |  | (205 | ) |  |  | (192 | )
Fair value of plan assets at end of year |  |  | 813 |  |  |  | 82,904 |  |  |  | — |  |  |  | — |
Funded status of the plan – (underfunded) |  | $ | — |  |  | $ | 9,448 |  |  | $ | (7,270 | ) |  | $ | (5,974 | )
Accumulated benefit obligations |  | $ | — |  |  | $ | 73,456 |  |  | $ | 7,270 |  |  | $ | 5,974 |
Amounts recognized in the consolidated balance sheets consist of:
|  | Pension Plan |  |  | SERP |
(In thousands) |  | 2014 |  |  | 2013 |  |  | 2014 |  |  | 2013 |
Noncurrent assets |  | $ | — |  |  | $ | 9,448 |  |  | $ | — |  |  | $ | — |
Current liabilities |  |  | — |  |  |  | — |  |  |  | (228 | ) |  |  | (214 | )
Noncurrent liabilities |  |  | — |  |  |  | — |  |  |  | (7,042 | ) |  |  | (5,760 | )
|  | $ | — |  |  | $ | 9,448 |  |  | $ | (7,270 | ) |  | $ | (5,974 | )
Amounts recognized in accumulated other comprehensive income (loss) before the effect of income taxes consist of:
| Pension Plan |  | SERP |
(In thousands) | 2014 |  | 2013 |  | 2014 |  | 2013 |
Prior service cost |  | $ | — |  |  | $ | — |  |  | $ | (432 | ) |  | $ | (641 | )
Net actuarial loss |  |  | — |  |  |  | (11,176 | ) |  |  | (1,663 | ) |  |  | (568 | )
|  | $ | — |  |  | $ | (11,176 | ) |  | $ | (2,095 | ) |  | $ | (1,209 | )
Net pension cost included the following components:
|  | Pension Plan |  |  | SERP |
(In thousands) |  | 2014 |  |  | 2013 |  |  | 2012 |  |  | 2014 |  |  | 2013 |  |  | 2012 |
Service cost-benefits earned during the period |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 117 |  |  | $ | 134 |  |  | $ | 97 |
Interest cost on projected benefit obligation |  |  | 3,232 |  |  |  | 3,278 |  |  |  | 3,506 |  |  |  | 289 |  |  |  | 259 |  |  |  | 262 |
Expected return on plan assets |  |  | (4,475 | ) |  |  | (4,948 | ) |  |  | (4,474 | ) |  |  | — |  |  |  | — |  |  |  | — |
Amortization of prior service cost |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 210 |  |  |  | 210 |  |  |  | 210 |
Amortization of actuarial loss |  |  | 244 |  |  |  | 1,627 |  |  |  | 1,847 |  |  |  |  |  |  |  | 68 |  |  |  | 26 |
Settlement loss recognized |  |  | 20,810 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Special termination benefit recognized |  |  | 813 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Net pension costs |  | $ | 20,624 |  |  | $ | (43 | ) |  | $ | 879 |  |  | $ | 616 |  |  | $ | 671 |  |  | $ | 595 |
The estimated amount that will be amortized from accumulated other comprehensive loss into net periodic cost in 2015 is approximately $324,000 for the SERP. Assumptions We use a measurement date of December 31 for our pension and SERP plan. Assumptions used to determine benefit obligations at December 31 are as follows:
|  | Pension Plan |  |  | SERP |
|  | 2014 |  | 2013 |  |  | 2014 |  | 2013 |
Discount rate |  |  | n/a |  |  | 4.93% |  |  |  | 4.09% |  |  | 4.96% |
Rate of compensation increase |  |  | n/a |  |  | n/a |  |  |  | 3.50% |  |  | 3.50% |
Assumptions used to determine net periodic benefit cost for years ended December 31 are as follows:
|  | Pension Plan |  | SERP |
|  | 2014 |  | 2013 |  | 2012 |  | 2014 |  | 2013 |  | 2012 |
Discount rate |  |  | 4.93% |  |  | 4.13% |  |  | 4.60% |  |  | 4.96% |  |  | 4.08% |  |  | 4.60% |
Expected long-term return on plan assets |  |  | 6.00% |  |  | 6.65% |  |  | 6.75% |  |  | n/a |  |  | n/a |  |  | n/a |
Rate of compensation increase |  |  | n/a |  |  | n/a |  |  | n/a |  |  | 3.50% |  |  | 3.50% |  |  | 3.50% |
For purposes of determining the periodic expense of our defined benefit plan, we use fair market value of plan assets as the market related value. Prior to the termination and settlement of the obligations of the pension plan its assets were held in audited institutional mutual funds and collective trusts. Since the net asset values of these funds were not quoted on actively traded markets, they were classified in a Level 2 valuation category. Some of the holdings in these funds were valued using quoted market prices for similar instruments in active markets, a Level 2 valuation technique. The remaining assets were valued using quoted market prices, a Level 1 valuation technique. The fair values by asset category are as follows (in thousands):
|  | Fair Value Measurements |
|  | December 31, 2014 |  |  | December 31, 2013 |
|  | Total |  |  | Level 1 |  |  | Level 2 |  |  | Total |  |  | Level 1 |  |  | Level 2 |
Money Market Funds |  | $ | 813 |  |  | $ | 813 |  |  | $ | — |  |  | $ | 380 |  |  | $ | 380 |  |  | $ | — |
Equity Securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Haverty Class A Common Stock |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 6,348 |  |  |  | 6,348 |  |  |  |  |
U.S. Large Cap Passive(a) |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 9,151 |  |  |  |  |  |  |  | 9,151 |
U.S. Small/Mid Cap Growth |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,183 |  |  |  |  |  |  |  | 1,183 |
U.S. Small/Mid Cap Value |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,174 |  |  |  |  |  |  |  | 1,174 |
International Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 6,316 |  |  |  |  |  |  |  | 6,316 |
Emerging Markets Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,530 |  |  |  |  |  |  |  | 1,530 |
|  |  | — |  |  |  | — |  |  |  | — |  |  |  | 25,702 |  |  |  | 6,348 |  |  |  | 19,354 |
Fixed Income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Opportunistic(b) |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 8,143 |  |  |  |  |  |  |  | 8,143 |
Passive |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 4,294 |  |  |  |  |  |  |  | 4,294 |
Long Duration Active(c) |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 16,964 |  |  |  |  |  |  |  | 16,964 |
Long Duration Passive |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 6,478 |  |  |  |  |  |  |  | 6,478 |
Long Duration Investment Grade(d) |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 20,943 |  |  |  |  |  |  |  | 20,943 |
|  |  | — |  |  |  | — |  |  |  | — |  |  |  | 56,822 |  |  |  | — |  |  |  | 56,822 |
Total |  | $ | 813 |  |  | $ | 813 |  |  | $ | — |  |  | $ | 82,904 |  |  | $ | 6,728 |  |  | $ | 76,176 |
(a) | This category comprises low-cost equity index funds not actively managed that track the S&P 500.
(b) | This fund invests primarily in U.S. dollar-denominated, investment grade bonds, including government securities, corporate bonds, and mortgage and asset-backed securities. This fund may also invest a significant portion of its assets in any combination of non-investment grade bonds, non-U.S. dollar denominated bonds, and bonds issued by issuers in emerging capital markets.
(c) | This category invests primarily in U.S. dollar-denominated, investment grade bonds, including government securities, corporate bonds, and mortgage and asset-backed securities, among others.
(d) | This category invests primarily in U.S. dollar-denominated, investment grade corporate bonds as well as U.S. Treasury bonds.
Cash Flows We did not make any contributions to the pension plan in 2014 and its remaining assets are expected to be distributed in 2015. The following schedule outlines the expected benefit payments related to the SERP in future years. These expected benefits were estimated based on the same actuarial assumptions used to determine benefit obligations at December 31, 2014.
(In thousands) |  | SERP |
2015 |  | $ | 228 |
2016 |  |  | 260 |
2017 |  |  | 369 |
2018 |  |  | 372 |
2019 |  |  | 379 |
2020-2024 |  |  | 2,098 |
Other Plans We have an employee savings/retirement (401(k)) plan to which substantially all our employees may contribute. We match employee contributions 100% of the first 1% of eligible pay and 50% of the next 5% contributed by participants. We expensed matching employer contributions of approximately $3,449,000, $3,104,000 and $2,907,000 in 2014, 2013 and 2012, respectively. We offer no post-retirement benefits other than the plans discussed above and no significant post-employment benefits.

X
- Details
Name: | us-gaap_CompensationAndRetirementDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for pension and other postretirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration