HAVERTY FURNITURE COMPANIES INCHVT

HAVERTY FURNITURE COMPANIES INC Segments Disclosure

10-KFiled Feb 26, 20262 min read
Segment Reporting:
We operate within a single reportable segment. We use a market area approach for both financial and operational decision making. Each of these market areas are considered individual operating segments. The individual operating segments all have similar economic characteristics. The retail stores within the market areas are similar in size and carry substantially identical products selected for the same target customer. We also use the same distribution methods chain-wide. The accounting policies of our single reportable segment are described in Note 1 - Description of Business and Summary of Significant Accounting Policies.
Our chief operating decision maker (CODM) is our President and Chief Executive Officer. Segment information is prepared on the same basis that our CODM manages our operating segments and evaluates results. The measure used by our CODM to assess performance and make operating decisions is income before income taxes as reported on our consolidated statements of comprehensive income. Our CODM uses income before income taxes to evaluate performance and make key operating decisions, such as determining new store openings to expand our retail footprint. Asset information is provided to the CODM on a consolidated basis.
The following table presents significant segment expenses and other segment items regularly reviewed by our CODM:
Year Ended December 31,
(in 000's)202520242023
Net Sales$758,995 $722,899 $862,133 
Less:
Cost of goods sold
(exclusive of depreciation and amortization)		298,498 283,821 339,041 
Selling, general, and administrative
  Advertising and marketing48,769 45,487 49,102 
  Selling110,601 107,628 126,163 
  Occupancy101,840 96,875 91,269 
  Warehouse, delivery, and transportation58,377 60,810 74,442 
  General and administrative119,740 108,421 114,836 
    Total selling, general and administrative(a)
439,327 419,221 455,812 
Other segment items(b)
543 214 (77)
Interest income5,282 6,245 5,670 
Interest expense(162)(163)(162)
Income before income taxes26,833 26,153 72,711 
Income tax expense7,103 6,197 16,392 
Consolidated net income$19,730 $19,956 $56,319 
(a)Depreciation and amortization expense included in selling, general and administrative expense was $23.8 million, $21.6 million, and $18.6 million for December 31, 2025, 2024, and 2023, respectively.
(b)Other segment items include gains (losses) on asset disposals and miscellaneous income (expense).

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

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