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Credit Arrangement
6 Months Ended
Jun. 30, 2011
Credit Arrangement [Abstract]  
Credit Arrangement
NOTE E – Credit Arrangement

Havertys has a $60,000,000 revolving credit facility (the “Credit Agreement”) with two banks which is secured by inventory, accounts receivable, cash and certain other personal property.  Our Credit Agreement includes negative covenants that limit our ability to, among other things (a) create unsecured funded indebtedness or capital lease obligations collectively in excess of $15,000,000 in aggregate outstandings at any one time, (b) create indebtedness secured by real estate or engage in sale leaseback transactions which together exceed $60,000,000 in the aggregate, (c) sell or dispose of real property or other assets in excess of $30,000,000 in the aggregate, or (d) pay dividends in excess of $6,000,000 or repurchase capital stock in excess of $5,000,000 during any trailing twelve month period.

Availability fluctuates under a borrowing base calculation and is reduced by outstanding letters of credit.  The borrowing base was $51.7 million at June 30, 2011.  Amounts available are reduced by $10 million since a fixed charge coverage ratio test was not met for the immediately preceding twelve month, resulting in a net availability of $41.7 million.  There were no borrowed amounts outstanding under the Credit Agreement at June 30, 2011. We are in compliance with the terms of the Credit Agreement at June 30, 2011 and there exists no default or event of default.  The Credit Agreement has provisions for commitment fees on unused amounts and terminates in December 2011.