UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
(Mark
One)
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2005
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number: 1-14445
HAVERTY FURNITURE COMPANIES, INC. THRIFT PLAN
(Title of the Plan)
Haverty Furniture Companies, Inc.
780 Johnson Ferry Road
Suite 800
Atlanta, Georgia 30342
(Name and address of the issuer of the securities held
pursuant to the Plan)
HAVERTY FURNITURE COMPANIES, INC.
THRIFT PLAN
FINANCIAL STATEMENTS
December 31, 2005 and 2004
HAVERTY FURNITURE COMPANIES, INC. THRIFT PLAN
FINANCIAL STATEMENTS
December 31, 2005 and 2004
____________________________________________________________________
CONTENTS
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
FINANCIAL STATEMENTS:
Statements of Net Assets Available for Benefits
Statement of Changes in Net Assets Available for Benefits
Notes to Financial Statements
SUPPLEMENTAL SCHEDULE:
Schedule of Assets Held for Investment Purposes
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Executive Compensation and Employee Benefits Committee and
Participants of Haverty Furniture Companies, Inc. Thrift Plan
We audited the accompanying statements of net assets
available for benefits of Haverty Furniture Companies, Inc.
Thrift Plan (the "Plan") as of December 31, 2005 and 2004, and
the related statement of changes in net assets available for
benefits for the year ended December 31, 2005. These financial
statements are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with the standards of
the Public Company Accounting Oversight Board (United States).
Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial
statements are free of material misstatement. The Plan is not
required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting. Our audit included
consideration of internal control over financial reporting as a
basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion
on the effectiveness of the Plan's internal control over
financial reporting. Accordingly, we express no such opinion.
An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the 2005 financial statements referred to
above present fairly, in all material respects, the net assets
available for benefits of the Plan as of December 31, 2005 and
2004, and the changes in its net assets available for benefits
for the year ended December 31, 2005, in conformity with
accounting principles generally accepted in the United States.
Our audits were performed for the purpose of forming an
opinion on the financial statements taken as a whole. The
accompanying supplemental schedule of assets held for investment
purposes as of December 31, 2005, is presented for the purpose of
additional analysis and is not a required part of the basic
financial statements. This supplemental schedule is the
responsibility of the Plan's management. The supplemental
schedule has been subjected to the auditing procedures applied in
the audit of the financial statements and, in our opinion, is
fairly stated in all material respects in relation to the
financial statements taken as a whole.
/s/ Windham Brannon, P.C.
Certified Public Accountants
June 5, 2006
HAVERTY FURNITURE COMPANIES, INC. THRIFT PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
December 31, 2005 and 2004
_____________________________________________________________________________
2005 2004
_____ _____
ASSETS
Investments, at fair value $ 59,184,832 $ 58,331,629
___________ ___________
NET ASSETS AVAILABLE FOR BENEFITS $ 59,184,832 $ 58,331,629
=========== ===========
The accompanying notes are an integral part of these financial statements.
HAVERTY FURNITURE COMPANIES, INC. THRIFT PLAN
STATEMENT OF CHANGES IN NET ASSETS
AVAILABLE FOR BENEFITS
For The Year Ended December 31, 2005
_____________________________________________________________________________
ADDITIONS:
Investment Income:
Net change in fair value of investments $ 1,977,969
Dividends on common stock 46,530
____________
Total Investment Income 2,024,499
____________
Contributions:
Employer 1,420,819
Participants 4,809,491
____________
Total Contributions 6,230,310
____________
Total Additions 8,254,809
____________
DEDUCTIONS:
Benefit payments (7,390,011)
Participant transaction charges (11,595)
____________
Total Deductions (7,401,606)
___________
NET INCREASE 853,203
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 58,331,629
___________
End of year $ 59,184,832
===========
The accompanying notes are an integral part of these financial statements.
HAVERTY FURNITURE COMPANIES, INC. THRIFT PLAN
NOTES TO FINANCIAL STATMENTS
December 31, 2005 and 2004
_____________________________________________________________________
1. DESCRIPTION OF THE PLAN
_______________________
The Haverty Furniture Companies, Inc. Thrift Plan (the
"Plan") is sponsored by Haverty Furniture Companies, Inc. (the
"Company" and "Plan Sponsor"). The Plan is a "qualified cash or
deferred arrangement" plan under Section 401(k) of the Internal
Revenue Code (the "Code"). The following description of the Plan
provides only general information. Further information about the
Plan is contained in the Plan document, copies of which are
available at the Company's Human Resources office.
Effective May 1, 2004, Fiserv Trust Corporation maintains
the Plan's assets under the terms of a trust agreement. Swerdlin
& Company provides record keeping services to the Plan.
Eligibility
-----------
Company employees become eligible for participation in the
Plan after they attain 21 years of age and complete 60 days of
continuous, active employment. Plan entry dates are the first
day of each month. An employee who is included in a unit of
employees covered by a collective bargaining agreement is
excluded from participating in the Plan unless provided in the
written agreement.
Contributions
-------------
Eligible employees are automatically enrolled into the Plan
and pre-tax contributions are withheld at 2% of eligible
compensation unless the employee elects not to contribute to the
Plan. Eligible employees may elect to defer up to 80% of their
compensation through payroll deductions, subject to statutory
limitations. Participants age 50 and older may make additional
catch-up contributions to the Plan.
The Company matches employee contributions at the rate of
50% for all contributions up to and including 2%, and 25% for all
contributions between 3% and 6% of each participant's annual
compensation. Additional amounts may be contributed at the
option of the Company's Board of Directors. No such additional
amounts were elected to be contributed in 2005 or 2004. The
Company's matching contributions will be allocated to the
participant's directed accounts.
HAVERTY FURNITURE COMPANIES, INC. THRIFT PLAN
NOTES TO FINANCIAL STATMENTS
December 31, 2005 and 2004
_____________________________________________________________________
Participant Accounts
--------------------
Participants direct the investment of their contributions
into various investment options offered by the Plan. The Company
currently offers a money market fund, seven mutual funds, and the
Company's common stock via the Haverty Unitized Stock Fund.
Participants may change their investment options on a daily
basis. Each participant's account is credited with the
participant's contributions, rollovers, the Company's
contribution, and earnings on the investments in their account.
The benefit to which a participant is entitled is the benefit
that can be provided from the participant's vested account.
There are restrictions on purchases of Haverty Furniture
Companies, Inc. common stock through the Plan via the Haverty
Unitized Stock Fund (the "Fund"). The restrictions are as
follows: 1) A maximum of one purchase transaction is allowed each
thirty-day period; 2) Sell transactions are allowed each day, but
sales out of the Fund may not exceed $50,000 in a single day; 3)
The Fund cannot exceed 30% of a participant's total account
balance, or a maximum of $50,000; and 4) Section 16 reporting
officers and regional managers are prohibited from investing in
the Fund.
Vesting
-------
Participants are immediately vested in their contributions
plus actual earnings thereon. Vesting in the employer
contribution portion of their accounts plus actual earnings
thereon is based on the number of years of service with the
Company. The vesting schedule is as follows:
Percentage of
Years of Service Contributions Vested
________________ ____________________
Less than 2 years 0%
2 40%
3 60%
4 80%
5 100%
Forfeitures of employer contributions are used to offset
employer matching contributions for the same and/or future Plan
years. Forfeited non-vested amounts of approximately $99,790 and
$92,600 were used to reduce employer contributions during the
years ended December 31, 2005 and 2004, respectively.
HAVERTY FURNITURE COMPANIES, INC. THRIFT PLAN
NOTES TO FINANCIAL STATMENTS
December 31, 2005 and 2004
_____________________________________________________________________
Payment of Benefits
-------------------
At the time of death, total disability, retirement, or
termination of services, the participant or their beneficiary may
receive payment of the vested interest in their account.
The participant may elect to receive the portion of his/her
account that is invested in the Haverty Unitized Stock Fund in
cash, in whole shares of stock, or a combination of the two. All
other investments are paid in a cash lump sum.
Participants are eligible to receive hardship withdrawals
when certain conditions are met.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
__________________________________________
Basis of Accounting
-------------------
The financial statements of the Plan are prepared using the
accrual method of accounting.
Use of Estimates
----------------
The preparation of financial statements in conformity with
accounting principles generally accepted in the United States
requires management to make estimates and assumptions that affect
the amounts reported in the financial statements and accompanying
notes. Actual results may differ from those estimates, and such
differences may be material to the financial statements.
Contributions
-------------
Contributions are considered payable to the Plan upon the
withholding of such contributions from the participant's
paycheck.
Investment Valuation
--------------------
The Plan's investments in mutual funds and money market
funds are stated at fair value based on quoted market prices.
The Haverty Unitized Stock Fund consists of a 95% Haverty's stock
position ("HVT") and a 5% money market position. Each day the
value of the portfolio is determined by the sum of the closing
price of HVT multiplied by the number of shares held plus the
value of the money market position as well as any accrued
interest.
HAVERTY FURNITURE COMPANIES, INC. THRIFT PLAN
NOTES TO FINANCIAL STATMENTS
December 31, 2005 and 2004
_____________________________________________________________________
Investment Income
-----------------
Net change in fair value of investments includes realized
and unrealized gains and losses on investments and interest and
dividends on mutual funds. Dividend income is recorded on the ex-
dividend date. Purchases and sales of securities are recorded on
a trade date basis.
Payment of Benefits
-------------------
Benefits are recorded when paid.
Participant Transaction Charges
-------------------------------
A portion of the transaction fees for hardship withdrawals
are charged directly to participants. The Plan Sponsor paid all
other administrative expenses of the Plan during 2005 and 2004.
3. INVESTMENTS
___________
The fair values of individual investments that represent 5%
or more of the Plan's net assets are as follows:
2005 2004
____ ____
Federated Short-Term U.S. Government Fund $ 3,715,110 $ 3,225,053
Dodge & Cox Balanced Fund 22,267,020 18,898,240
Fidelity Magellan Fund * 10,545,404
Lord Abbett Affiliated Fund 6,092,222 6,699,247
T. Rowe Small Cap Stock Fund 3,631,533 3,221,892
Vanguard Institutional Index Fund 16,379,667 8,264,803
Haverty Unitized Stock Fund * 3,673,793
* Investment was less than 5% of net assets
HAVERTY FURNITURE COMPANIES, INC. THRIFT PLAN
NOTES TO FINANCIAL STATMENTS
December 31, 2005 and 2004
_____________________________________________________________________
The Plan's investments (including investments purchased and
sold, as well as held during the year) appreciated (depreciated)
in fair value as determined by quoted market prices as follows:
Mutual funds $ 3,028,472
Haverty Unitized Stock Fund (1,050,503)
_____________
$ 1,977,969
=============
4. INCOME TAX STATUS
_________________
The Plan was restated effective January 1, 2005. The
restated Plan has not received a determination letter from the
Internal Revenue Service. The plan administrator and the Plan's
tax counsel believe that the Plan is currently designed and being
operated in compliance with the applicable requirements of the
Internal Revenue Code; therefore, no provision for income taxes
has been included in the Plan's financial statements.
5. TRANSACTIONS WITH PARTIES-IN-INTEREST
_____________________________________
At December 31, 2005 and 2004, respectively, the Plan held
283,992 and 193,177 units of The Haverty Unitized Stock Fund,
which invests in Haverty Furniture Companies, Inc. common stock,
in addition to limited investments in short-term money market
investments. The fair value of the Fund at December 31, 2005 and
2004 was $2,070,301 and $3,673,793, respectively. During 2005
and 2004, the Plan received $46,530 and $55,627, respectively, in
dividends on Haverty Furniture Companies, Inc. common stock which
was used to purchase additional units of the Fund.
6. PLAN TERMINATION
________________
Although it has not expressed any intent to do so, the
Company has the right under the Plan to discontinue its
contributions at any time and to terminate the Plan subject to
the provisions of ERISA. In the event of Plan termination,
participants will become fully vested in their accounts.
Supplemental Schedule
HAVERTY FURNITURE COMPANIES, INC. THRIFT PLAN
EIN: 58-0281900 PN: 003
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
December 31, 2005
(a) (b) Identity of Issue, Borrower, (c) Description (e)
Lessor or Similar Party of Investments Current Value
* Fiserv Trust Corporation Money Market Fund $ 132,765
Federated Short-Term U.S. Government Trust Mutual Fund 3,715,110
Federated U.S. Government Security 2-5 Years Fund Mutual Fund 2,036,894
Dodge & Cox Balanced Fund Mutual Fund 22,267,020
Fidelity Magellan Fund Mutual Fund 480
Lord Abbett Affiliated Fund Mutual Fund 6,092,222
T. Rowe Small Cap Stock Mutual Fund 3,631,533
American Funds Europacific Growth Mutual Fund 2,421,279
Vanguard Institutional Growth Index Fund Mutual Fund 437,561
Vanguard Institutional Index Fund Mutual Fund 16,379,667
* Haverty Furniture Companies, Inc. Common Stock 2,070,301
___________
$ 59,184,832
===========
* Indicates a party-in-interest to the Plan.
Note: Column (d) has not been presented as that information is not required.
SIGNATURES
Pursuant to the requirements of the Securities Exchange
Act of 1934, the trustees (or other persons who administer the
employee benefit plan) have duly caused this annual report to
be signed on its behalf by the undersigned hereunto duly
authorized.
HAVERTY FURNITURE COMPANIES, INC.
THRIFT PLAN
By: HAVERTY FURNITURE COMPANIES, INC.
By: /s/ Bonnie A. Webb
________________________________
Bonnie A. Webb
Assistant Vice President, Human Resources
Date: June 28, 2006