Commitments and Contingencies

12 Months Ended

Dec. 31, 2012

Commitments and Contingencies Disclosure [Text Block]

Commitments and Contingencies

  During the first quarter of 2012, we entered into a lease agreement for a new corporate office and showroom location that will allow for the consolidation of our corporate offices and our High Point Market showroom into a single multi-purpose facility in High Point, North Carolina.  In addition, we entered into a lease agreement to open a new showroom within the Las Vegas Design Center located within the World Market Center Las Vegas in January 2013.  During 2012 we leased warehouse and distribution space, showroom and office space and certain technology equipment.  Rental expenses charged to operations were $2.5 million, $1.8 million and $1.1 million in 2012, 2011 and 2010 respectively.

   At December 31, 2012, our total capital lease obligation was $717,000 for certain machinery and equipment, of which $137,000 was classified as a short-term liability, with the remaining $580,000 classified as a long-term liability.  The asset carries a gross value of $973,000, with accumulated depreciation of $149,000.

At December 31, 2012, the future minimum lease payments for our current capital and operating leases were as follows (in thousands):

	Capital	Operating	Total
2013	$   147	$  1,454	$  1,601
2014	147	1,464	1,611
2015	147	1,610	1,757
2016	147	1,204	1,351
2017	147	812	959
Thereafter	12	3,663	3,675
Total minimum lease payments	747	10,207	10,954
Less amount representing interest	30		30
Present value of total minimum lease payments	$   717	$10,207	$ 10,924

During 2011 we entered into an agreement for the issuance of letters of credit to cover estimated exposures, most notably with workman’s compensation claims.  This agreement requires us to maintain a compensating balance with the issuer for the amounts outstanding.  We currently have letters of credit outstanding in the amount of $1.7 million.  The compensating balance amount is reflected as restricted cash on the balance sheet.

  In the normal course of business, we are involved in claims and lawsuits, none of which currently, in management’s opinion, will have a material adverse affect on our Consolidated Financial Statements.