Haverty Furniture Companies (HVT) 10-Q 3 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	Apr. 30, 2018
Entity Information [Line Items]
Entity Registrant Name	HAVERTY FURNITURE COMPANIES INC
Entity Central Index Key	216,085
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2018
Common Stock [Member]
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		19,309,712
Class A Common Stock [Member]
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		1,767,296

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents	$ 72,093	$ 79,491
Restricted cash equivalents	8,141	8,115
Accounts receivable, net	2,101	2,408
Inventories	109,024	103,437
Prepaid expenses	9,058	11,314
Other current assets	5,981	5,922
Total current assets	206,398	210,687
Accounts receivable, long-term, net	212	254
Property and equipment	226,995	229,215
Deferred income taxes	13,095	12,375
Other assets	9,089	8,798
Total assets	455,789	461,329
Current liabilities
Accounts payable	19,598	20,501
Customer deposits	28,313	27,813
Accrued liabilities	33,020	37,582
Current portion of lease obligations	3,835	3,788
Total current liabilities	84,766	89,684
Lease obligations, less current portion	49,826	50,803
Other liabilities	26,675	26,700
Total liabilities	161,267	167,187
Capital Stock, par value $1 per share
Preferred Stock, Authorized - 1,000 shares; Issued: None	0	0
Additional paid-in capital	90,174	88,978
Retained earnings	290,044	287,390
Accumulated other comprehensive loss	(2,119)	(2,144)
Less treasury stock at cost - Common Stock (2018 - 9,670 and 2017 - 9,498) and Convertible Class A Common Stock (2018 and 2017 - 522)	(114,846)	(111,322)
Total stockholders' equity	294,522	294,142
Total liabilities and stockholders' equity	455,789	461,329
Common Stock [Member]
Capital Stock, par value $1 per share
Common Stock	28,979	28,950
Convertible Class A Common Stock [Member]
Capital Stock, par value $1 per share
Common Stock	$ 2,290	$ 2,290

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares shares in Thousands	Mar. 31, 2018	Dec. 31, 2017
Stockholders' equity
Preferred Stock, par value (in dollars per share)	$ 1	$ 1
Preferred Stock, shares authorized (in shares)	1,000	1,000
Preferred Stock, shares issued (in shares)	0	0
Common Stock, par value (in dollars per share)	$ 1	$ 1
Common Stock [Member]
Stockholders' equity
Common Stock, shares authorized (in shares)	50,000	50,000
Common Stock, shares issued (in shares)	28,979	28,950
Treasury Stock, common stock shares (in shares)	9,670	9,498
Convertible Class A Common Stock [Member]
Stockholders' equity
Common Stock, shares authorized (in shares)	15,000	15,000
Common Stock, shares issued (in shares)	2,290	2,290
Treasury Stock, common stock shares (in shares)	522	522

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Net sales	$ 199,442	$ 200,427
Cost of goods sold	90,535	90,831
Gross profit	108,907	109,596
Credit service charges	32	45
Gross profit and other revenue	108,939	109,641
Expenses:
Selling, general and administrative	101,004	100,374
Provision for doubtful accounts	2	102
Other (income) expense, net	(995)	(1,158)
Total expenses	100,011	99,318
Income before interest and income taxes	8,928	10,323
Interest expense, net	471	583
Income before income taxes	8,457	9,740
Income tax expense	2,144	3,754
Net income	6,313	5,986
Other comprehensive income
Adjustments related to retirement plans; net of tax expense of $9 in 2018 and 2017	25	16
Comprehensive income	$ 6,338	$ 6,002
Common Stock [Member]
Basic earnings per share:
Common Stock (in dollars per share)	$ 0.30	$ 0.28
Diluted earnings per share:
Common Stock (in dollars per share)	0.29	0.28
Cash dividends per share:
Common Stock (in dollars per share)	0.18	0.1200
Class A Common Stock [Member]
Basic earnings per share:
Common Stock (in dollars per share)	0.28	0.27
Diluted earnings per share:
Common Stock (in dollars per share)	0.28	0.27
Cash dividends per share:
Common Stock (in dollars per share)	$ 0.17	$ 0.1125

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Other comprehensive income
Adjustments related to retirement plans, tax expense	$ 9	$ 9

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash Flows from Operating Activities:
Net income	$ 6,313	$ 5,986
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	7,535	7,582
Stock-based compensation expense	1,571	1,316
Gain on insurance recovery	(307)	(1,170)
Proceeds from insurance recovery	266	311
Other	(762)	115
Changes in operating assets and liabilities:
Accounts receivable	347	798
Inventories	(5,587)	(6,238)
Customer deposits	500	2,340
Other assets and liabilities	2,688	1,068
Accounts payable and accrued liabilities	(4,270)	(6,349)
Net cash provided by operating activities	8,294	5,759
Cash Flows from Investing Activities:
Capital expenditures	(7,128)	(5,182)
Proceeds from insurance for destroyed property and equipment	55	989
Other	0	32
Net cash used in investing activities	(7,073)	(4,161)
Cash Flows from Financing Activities:
Payments on lease obligations	(930)	(849)
Dividends paid	(3,792)	(2,521)
Common stock repurchased	(3,524)	0
Other	(347)	(201)
Net cash used in financing activities	(8,593)	(3,571)
Decrease in cash, cash equivalents and restricted cash equivalents during the period	(7,372)	(1,973)
Cash, cash equivalents and restricted cash equivalents at beginning of period	87,606	71,515
Cash, cash equivalents and restricted cash equivalents at end of period	$ 80,234	$ 69,542

Business and Reporting Policies

Business and Reporting Policies	3 Months Ended
	Mar. 31, 2018
Business and Reporting Policies [Abstract]
Business and Reporting Policies	NOTE A – Business and Reporting Policies Haverty Furniture Companies, Inc. ("Havertys," "the Company," "we," "our," or "us") is a retailer of a broad line of residential furniture in the middle to upper-middle price ranges. We operate all of our stores using the Havertys brand and do not franchise our concept. We operate within a single reportable segment. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all information and footnotes required by United States of America generally accepted accounting principles ("U.S. GAAP") for complete financial statements. The Company believes that the disclosures made are adequate to make the information not misleading. The financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation. We believe all adjustments, normal and recurring in nature, considered necessary for a fair presentation have been included. We suggest that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and accompanying footnotes included in our latest Annual Report on Form 10-K. The preparation of interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities, and reported amounts of revenue and expenses. Actual results could differ from those estimates. The Company is subject to various claims and legal proceedings covering a wide range of matters that arise in the ordinary course of its business activities. We believe that any liability that may ultimately result from the resolution of these matters will not have a material adverse effect on our financial condition, results of operations or cash flows.

Recently Issued Accounting Pron

Recently Issued Accounting Pronouncements	3 Months Ended
	Mar. 31, 2018
Recently Issued Accounting Pronouncements [Abstract]
Recently Issued Accounting Pronouncements	NOTE B - Recently Issued Accounting Pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board (FASB) in the form of accounting standards updates (ASU's) to the FASB's Accounting Standards Codification (ASC). The Company considers the applicability and impact of all ASU's. Newly effective ASU's not noted herein were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position or results of operations. Leases. changes to processes and internal controls to meet the standard's reporting and disclosure requirements. For example, software has been purchased that will assist in recognition of additional assets and liabilities to be included on the balance sheet related to operating leases with durations greater than twelve months, with certain allowable exceptions. We continue to evaluate the expected financial impact of this standard on our consolidated financial position and results of operations.

Recently Adopted Accounting Sta

Recently Adopted Accounting Standards	3 Months Ended
	Mar. 31, 2018
Recently Adopted Accounting Standards [Abstract]
Recently Adopted Accounting Standards	NOTE C – Recently Adopted Accounting Standards ASU 2014-09 On January 1, 2018, we adopted ASU 2014-09, Revenue - Revenue from Contracts with Customers (ASC Topic 606 or "the new standard"). The new standard requires a company to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration the company expects to receive in exchange for those goods or services. We sell home furnishings and recognize revenue at delivery. Havertys does not have a loyalty program or sell gift certificates. We also do not offer coupons for redemption for future purchases, such as those that other retailers might issue for general marketing purposes or for those issued based in conjunction with prior purchases. The product protection plan we offer is handled by a third-party and we have no performance obligation or inventory risk associated with this service. Havertys is acting as an agent for these sales and records this revenue at the time the covered products are delivered to the customer. Estimated refunds for returns and allowances are recorded based on estimated margin using our historical return patterns. Under the new standard, we record estimated refunds for sales returns on a gross basis rather than on a net basis. The standard requires the carrying value of the return asset to be presented separately from inventory and subject to impairment testing on its own, separately from inventory on hand. At March 31, 2018, the estimated return inventory was $0.7 million and is included in the line item "Other current assets" and the estimated refund liability was $2.0 million and is included in the line item "Accrued liabilities" on the Condensed Consolidated Balance Sheets. We record customer deposits when payments are received in advance of the delivery of merchandise, which totaled $28.3 million and $27.8 million at March 31, 2018 and December 31, 2017, respectively. Of the customer deposit liabilities at December 31, 2017, approximately $19.8 million was recognized through net sales in the three months ended March 31, 2018. We adopted ASU 2014-09 using the modified retrospective method. Results for reporting periods beginning after January 1, 2018 are presented under the new standard, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting. We expect the impact of the adoption of the new standard to be immaterial to our net income on an ongoing basis. The cumulative effect of the changes made to our consolidated January 1, 2018 balance sheet for the adoption of the new revenue standard were as follows (in thousands): Balance at December 31, 2017 Adjustments Due to ASU 2014-09 Balance at January 1, 2018 Balance Sheet Assets Estimated to be returned inventory $ — $ 786 $ 786 Deferred income taxes 12,375 (44 ) 12,331 Liabilities Refund on estimated returns and allowances — 2,072 2,072 Reserve for cancelled sales and allowances 1,463 (1,463 ) — Equity Retained earnings 287,390 133 287,523 Upon adoption of ASC Topic 606, we adopted the following policy elections and practical expedients: · Our contracts are similar as to customer types, deliverables, timing of transfer of goods and other characteristics and we elected to use the portfolio method in accounting for our contracts. · We exclude from revenue amounts collected from customers for sales tax. · We finance less than 1% of sales. We do not adjust the promised amount of consideration for the effects of a significant financing component since receivables from financed sales are paid within one year of delivery. · We expense sales commissions within SG&A at the time revenue is recognized because the amortization period would have been one year or less. · We do not disclose the value of unsatisfied performance obligations because delivery is made within one year of the customer purchase. The following table presents the differences resulting from the adoption of ASC Topic 606 on line items in our condensed consolidated balance sheet. The impact of the adoption on line items in our other financial statements was not material. March 31, 2018 (in thousands) As Reported Balances Without Adoption of ASC 606 Effect of Change Higher/(Lower) Balance Sheet Assets Estimated to be returned inventory (included in other current assets) $ 745 $ — $ 745 Deferred income taxes 13,095 13,139 (44 ) Liabilities Refund on estimated returns and allowances (included in other current liabilities) 1,971 — 1,971 Reserve for cancelled sales and allowances (included in other current liabilities) — 1,407 (1,407 ) Equity Retained Earnings 290,044 289,907 137 The following table presents our revenues disaggregated by revenue source. Three Months Ended March 31, 2018 2017 (In thousands) Net Sales % of Net Sales Net Sales % of Net Sales Merchandise: Case Goods Bedroom Furniture $ 31,113 15.6 % $ 31,966 15.9 % Dining Room Furniture 21,634 10.8 21,413 10.7 Occasional 18,459 9.3 19,203 9.6 71,206 35.7 72,582 36.2 Upholstery 81,798 41.0 82,124 41.0 Mattresses 19,678 9.9 21,242 10.6 Accessories and Other (1) 26,760 13.4 24,479 12.2 $ 199,442 100.0 % $ 200,427 100.0 % (1) Includes delivery charges and product protection. ASU 2016-18 We adopted ASU 2016-18, Statement of Cash Flows (ASC Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force) on January 1, 2018 using the required retrospective transition method. This ASU requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the statement of cash flows. Our restricted cash equivalents are funds used to collateralize a portion of our workers' compensation obligations as required by our insurance carrier. These escrowed funds are shown as restricted cash and cash equivalents on our balance sheets and are investments in money market funds held by an agent. The annual agreement with our carrier governing these funds expires on December 31, 2018. The following table provides a reconciliation of cash, cash equivalents, and restricted cash equivalents reported within the balance sheet that sum to the total of the same such amounts shown in the statement of cash flows. March 31, 2018 December 31, 2017 March 31, 2017 December 31, 2016 (In thousands) (Unaudited) (Unaudited) Cash and cash equivalents $ 72,093 $ 79,491 $ 61,495 $ 63,481 Restricted cash equivalents 8,141 8,115 8,047 8,034 Total cash, cash equivalents and restricted cash equivalents $ 80,234 $ 87,606 $ 69,542 $ 71,515

Interim LIFO Calculations

Interim LIFO Calculations	3 Months Ended
	Mar. 31, 2018
Interim LIFO Calculations [Abstract]
Interim LIFO Calculations	NOTE D – Interim LIFO Calculations An actual valuation of inventory under the LIFO method can be made only at the end of each year based on actual inventory levels and costs at that time. Accordingly, interim LIFO calculations must necessarily be based on management's estimates of inventory levels and inflation rates. Since these estimates may be affected by factors beyond management's control, interim results are subject to change based upon the final year-end LIFO inventory valuations.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2018
Fair Value of Financial Instruments [Abstract]
Fair Value of Financial Instruments	NOTE E – Fair Value of Financial Instruments The fair values of our cash and cash equivalents, restricted cash and cash equivalents, accounts receivable, accounts payable and customer deposits approximate their carrying values due to their short-term nature. The assets related to our self-directed, non-qualified deferred compensation plans for certain executives and employees are valued using quoted market prices multiplied by the number of shares held, a Level 1 valuation technique. The assets related to our deferred compensation plans totaled approximately $6.4 million at March 31, 2018 and $6.0 million at December 31, 2017 and are included in other assets. The related liabilities of the same amounts are included in other liabilities.

Credit Arrangement

Credit Arrangement	3 Months Ended
	Mar. 31, 2018
Credit Arrangement [Abstract]
Credit Arrangement	NOTE F – Credit Arrangement We have a $60.0 million revolving credit facility secured by our inventory, accounts receivable, cash, and certain other personal property. Availability fluctuates based on a borrowing base calculation reduced by outstanding letters of credit. Amounts available to borrow are based on the lesser of the borrowing base or the $60.0 million line amount, reduced by $6.0 million if a fixed charge coverage ratio test for the immediately preceding 12 months are not met. The credit facility contains covenants that, among other things, limit our ability to incur certain types of debt or liens, pay dividends, enter into mergers and consolidations or use proceeds of borrowing for other than permitted uses. The borrowing base was $55.6 million at March 31, 2018, there were no outstanding letters of credit, and the net availability was $49.6 million. We have not had any borrowings under the facility, which matures March 31, 2021, since its origination in 2008.

Other income, net

Other income, net	3 Months Ended
	Mar. 31, 2018
Other income, net [Abstract]
Other income, net	NOTE G – Other income, net Other income includes gains from real estate sales and insurance recoveries on stores damaged or destroyed of approximately $0.9 million and $1.2 million for the three months ended March 31, 2018 and 2017, respectively.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2018
Income Taxes [Abstract]
Income Taxes	NOTE H – Income Taxes The Tax Cuts and Jobs Act (the "Tax Act") was signed into law on December 22, 2017. The Tax Act significantly revised the U.S. corporate income tax by lowering the statutory corporate tax rate from 35% to 21%. It also eliminated certain deductions and enhanced and extended through 2026 the option to claim accelerated depreciation deductions on qualified property. Under the guidance provided in the SEC's Staff Accounting Bulletin No. 118 ("SAB 118"), we recorded provisional amounts for the impact of the Tax Act during the fourth quarter of 2017. We did not make any adjustments to the provisional amounts during the first quarter of 2018 . Our tax provision for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter we update our estimate of the annual effective tax rate, and if our estimated tax rate changes, we make a year to date adjustment. Our effective tax rate for the three months ended March 31, 2018 and 2017 was 25.4% and 38.5%, respectively. The primary difference in the effective rate and the statutory rate is due to state income taxes.

Stock Based Compensation Plan

Stock Based Compensation Plan	3 Months Ended
	Mar. 31, 2018
Stock Based Compensation Plan [Abstract]
Stock Based Compensation Plan	NOTE I – Stock Based Compensation Plan As more fully discussed in Note 12 of the notes to the consolidated financial statements in our 2017 Annual Report on Form 10-K, we have awards outstanding for Common Stock under stock-based employee compensation plans . The following table summarizes our award activity during the three months ended March 31, 2018: Service-Based Restricted Stock Awards Performance-Based Restricted Stock Awards Stock-Settled Appreciation Rights Shares or Units Weighted-Average Award Price Shares or Units Weighted-Average Award Price Rights Weighted-Average Award Price Outstanding at December 31, 2017 254,490 $ 21.88 179,774 $ 21.42 57,000 $ 18.14 Granted/Issued 116,035 22.95 103,940 22.95 — — Awards vested or rights exercised (1) — — (46,269 ) 20.35 — — Forfeited (400 ) 22.38 (7,033 ) — — — Outstanding at March 31, 2018 370,125 $ 22.21 230,412 $ 21.60 57,000 $ 18.14 Exercisable at March 31, 2018 — — — — 57,000 $ 18.14 Awards expected to vest 370,125 $ 22.21 214,481 $ 21.58 — — (1) Includes shares repurchased from employees for employee's tax liability. Grants of equity awards are made to certain officers and key employees under stockholder approved long-term incentive plans. The service-based awards generally vest over one or four years. The number of performance-based awards to be issued is based on the achievement of the criteria established at the time of the grant and cliff vest after three years. All awards are settled in shares of our common stock. The total fair value of performance-based shares that vested in 2018 was approximately, $1.1 million. The aggregate intrinsic value of service-based and performance-based awards at March 31 was $7.5 million and $4.6 million, respectively. The aggregate intrinsic value of vested and outstanding stock-settled appreciation rights at March 31, 2018 was approximately $0.1 million. The compensation for all awards is being charged to selling, general and administrative expenses over the respective grant's vesting periods, primarily on a straight-line basis. Stock based compensation expense for the three months ended March 31, 2018 and March 31, 2017 was approximately $1.6 million and $1.3 million, respectively. As of March 31, 2018, the remaining unamortized compensation cost related to unvested equity awards was approximately $7.8 million and is expected to be recognized over a weighted-average period of 2.5 years.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
Earnings Per Share	NOTE J – Earnings Per Share We report our earnings per share using the two-class method. The income per share for each class of common stock is calculated assuming 100% of our earnings are distributed as dividends to each class of common stock based on their contractual rights. The Common Stock of the Company has a preferential dividend rate of at least 105% of the dividend paid on the Class A Common Stock. The Class A Common Stock, which has ten votes per share as opposed to one vote per share for the Common Stock (on all matters other than the election of directors), may be converted at any time on a one-for-one basis into Common Stock at the option of the holder of the Class A Common Stock. Three Months Ended March 31, 2018 2017 Numerator: Common: Distributed earnings $ 3,491 $ 2,317 Undistributed earnings 2,320 3,180 Basic 5,811 5,497 Class A Common earnings 502 489 Diluted $ 6,313 $ 5,986 Class A Common: Distributed earnings $ 301 $ 204 Undistributed earnings 201 285 $ 502 $ 489 Denominator: Common: Weighted average shares outstanding - basic 19,418 19,297 Assumed conversion of Class A Common Stock 1,767 1,813 Dilutive options, awards and common stock equivalents 420 430 Total weighted-average diluted Common Stock 21,605 21,540 Class A Common: Weighted average shares outstanding 1,767 1,813 Basic earnings per share: Common Stock $ 0.30 $ 0.28 Class A Common Stock $ 0.28 $ 0.27 Diluted earnings per share: Common Stock $ 0.29 $ 0.28 Class A Common Stock $ 0.28 $ 0.27

Recently Issued Accounting Pr17

Recently Issued Accounting Pronouncements (Policies)	3 Months Ended
	Mar. 31, 2018
Recently Issued Accounting Pronouncements [Abstract]
Leases	Leases. changes to processes and internal controls to meet the standard's reporting and disclosure requirements. For example, software has been purchased that will assist in recognition of additional assets and liabilities to be included on the balance sheet related to operating leases with durations greater than twelve months, with certain allowable exceptions. We continue to evaluate the expected financial impact of this standard on our consolidated financial position and results of operations.

Recently Adopted Accounting S18

Recently Adopted Accounting Standards (Tables)	3 Months Ended
	Mar. 31, 2018
Recently Adopted Accounting Standards [Abstract]
Impacts of Adopting ASC 606	The cumulative effect of the changes made to our consolidated January 1, 2018 balance sheet for the adoption of the new revenue standard were as follows (in thousands): Balance at December 31, 2017 Adjustments Due to ASU 2014-09 Balance at January 1, 2018 Balance Sheet Assets Estimated to be returned inventory $ — $ 786 $ 786 Deferred income taxes 12,375 (44 ) 12,331 Liabilities Refund on estimated returns and allowances — 2,072 2,072 Reserve for cancelled sales and allowances 1,463 (1,463 ) — Equity Retained earnings 287,390 133 287,523
Reconciliation of Cash, Cash Equivalents, and Restricted Cash Equivalents	The following table presents the differences resulting from the adoption of ASC Topic 606 on line items in our condensed consolidated balance sheet. The impact of the adoption on line items in our other financial statements was not material. March 31, 2018 (in thousands) As Reported Balances Without Adoption of ASC 606 Effect of Change Higher/(Lower) Balance Sheet Assets Estimated to be returned inventory (included in other current assets) $ 745 $ — $ 745 Deferred income taxes 13,095 13,139 (44 ) Liabilities Refund on estimated returns and allowances (included in other current liabilities) 1,971 — 1,971 Reserve for cancelled sales and allowances (included in other current liabilities) — 1,407 (1,407 ) Equity Retained Earnings 290,044 289,907 137 The following table presents our revenues disaggregated by revenue source. Three Months Ended March 31, 2018 2017 (In thousands) Net Sales % of Net Sales Net Sales % of Net Sales Merchandise: Case Goods Bedroom Furniture $ 31,113 15.6 % $ 31,966 15.9 % Dining Room Furniture 21,634 10.8 21,413 10.7 Occasional 18,459 9.3 19,203 9.6 71,206 35.7 72,582 36.2 Upholstery 81,798 41.0 82,124 41.0 Mattresses 19,678 9.9 21,242 10.6 Accessories and Other (1) 26,760 13.4 24,479 12.2 $ 199,442 100.0 % $ 200,427 100.0 % (1) Includes delivery charges and product protection.

Stock Based Compensation Plan (

Stock Based Compensation Plan (Tables)	3 Months Ended
	Mar. 31, 2018
Stock Based Compensation Plan [Abstract]
Stock Award Activity	The following table summarizes our award activity during the three months ended March 31, 2018: Service-Based Restricted Stock Awards Performance-Based Restricted Stock Awards Stock-Settled Appreciation Rights Shares or Units Weighted-Average Award Price Shares or Units Weighted-Average Award Price Rights Weighted-Average Award Price Outstanding at December 31, 2017 254,490 $ 21.88 179,774 $ 21.42 57,000 $ 18.14 Granted/Issued 116,035 22.95 103,940 22.95 — — Awards vested or rights exercised (1) — — (46,269 ) 20.35 — — Forfeited (400 ) 22.38 (7,033 ) — — — Outstanding at March 31, 2018 370,125 $ 22.21 230,412 $ 21.60 57,000 $ 18.14 Exercisable at March 31, 2018 — — — — 57,000 $ 18.14 Awards expected to vest 370,125 $ 22.21 214,481 $ 21.58 — — (1) Includes shares repurchased from employees for employee's tax liability.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
Reconciliation of Earnings (Loss) and Number of Shares used in Calculating Diluted Earnings (Loss) Per Share	The Common Stock of the Company has a preferential dividend rate of at least 105% of the dividend paid on the Class A Common Stock. The Class A Common Stock, which has ten votes per share as opposed to one vote per share for the Common Stock (on all matters other than the election of directors), may be converted at any time on a one-for-one basis into Common Stock at the option of the holder of the Class A Common Stock. Three Months Ended March 31, 2018 2017 Numerator: Common: Distributed earnings $ 3,491 $ 2,317 Undistributed earnings 2,320 3,180 Basic 5,811 5,497 Class A Common earnings 502 489 Diluted $ 6,313 $ 5,986 Class A Common: Distributed earnings $ 301 $ 204 Undistributed earnings 201 285 $ 502 $ 489 Denominator: Common: Weighted average shares outstanding - basic 19,418 19,297 Assumed conversion of Class A Common Stock 1,767 1,813 Dilutive options, awards and common stock equivalents 420 430 Total weighted-average diluted Common Stock 21,605 21,540 Class A Common: Weighted average shares outstanding 1,767 1,813 Basic earnings per share: Common Stock $ 0.30 $ 0.28 Class A Common Stock $ 0.28 $ 0.27 Diluted earnings per share: Common Stock $ 0.29 $ 0.28 Class A Common Stock $ 0.28 $ 0.27

Recently Adopted Accounting S21

Recently Adopted Accounting Standards, ASU 2014-09, Cumulative Impact of Changes on Balance Sheet (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Customer deposits	$ 28,313	$ 27,813
Customer deposits, revenue recognized	19,800
Assets [Abstract]
Estimated to be returned inventory	745	0
Deferred income taxes	13,095	12,375
Liabilities [Abstract]
Refund on estimated returns and allowances	1,971	0
Reserve for cancelled sales and allowances	0	1,463
Equity [Abstract]
Retained earnings	$ 290,044	287,390
Maximum [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Percentage of sales financed	1.00%
Payment period for receivables	1 year
Delivery period	1 year
ASU 2014-09 [Member]
Assets [Abstract]
Estimated to be returned inventory		786
Deferred income taxes		12,331
Liabilities [Abstract]
Refund on estimated returns and allowances		2,072
Reserve for cancelled sales and allowances		0
Equity [Abstract]
Retained earnings		287,523
Adjustments Due to ASC 606 [Member] | ASU 2014-09 [Member]
Assets [Abstract]
Estimated to be returned inventory	$ 745	786
Deferred income taxes	(44)	(44)
Liabilities [Abstract]
Refund on estimated returns and allowances	1,971	2,072
Reserve for cancelled sales and allowances	(1,407)	(1,463)
Equity [Abstract]
Retained earnings	137	$ 133
Balance Without Adoption of ASC 606 [Member] | ASU 2014-09 [Member]
Assets [Abstract]
Estimated to be returned inventory	0
Deferred income taxes	13,139
Liabilities [Abstract]
Refund on estimated returns and allowances	0
Reserve for cancelled sales and allowances	1,407
Equity [Abstract]
Retained earnings	$ 289,907

Recently Adopted Accounting S22

Recently Adopted Accounting Standards, Revenues Disaggregated by Source (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2018	Mar. 31, 2017
Revenue [Abstract]
Net sales		$ 199,442	$ 200,427
Percentage of net sales	[1]	100.00%	100.00%
Case Goods [Member]
Revenue [Abstract]
Net sales		$ 71,206	$ 72,582
Percentage of net sales		35.70%	36.20%
Bedroom Furniture [Member]
Revenue [Abstract]
Net sales		$ 31,113	$ 31,966
Percentage of net sales		15.60%	15.90%
Dining Room Furniture [Member]
Revenue [Abstract]
Net sales		$ 21,634	$ 21,413
Percentage of net sales		10.80%	10.70%
Occasional [Member]
Revenue [Abstract]
Net sales		$ 18,459	$ 19,203
Percentage of net sales		9.30%	9.60%
Upholstery [Member]
Revenue [Abstract]
Net sales		$ 81,798	$ 82,124
Percentage of net sales		41.00%	41.00%
Mattresses [Member]
Revenue [Abstract]
Net sales		$ 19,678	$ 21,242
Percentage of net sales		9.90%	10.60%
Accessories and Other [Member]
Revenue [Abstract]
Net sales	[1]	$ 26,760	$ 24,479
Percentage of net sales	[1]	13.40%	12.20%
[1]	Includes delivery charges and product protection.

Recently Adopted Accounting S23

Recently Adopted Accounting Standards, ASU 2016-18, Statement of Cash Flows (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Statement of Cash Flows [Abstract]
Cash and cash equivalents	$ 72,093	$ 79,491
Restricted cash equivalents	8,141	8,115
Total cash, cash equivalents and restricted cash equivalents	80,234	87,606	$ 69,542	$ 71,515
ASU 2016-18 [Member]
Statement of Cash Flows [Abstract]
Cash and cash equivalents	72,093	79,491	61,495	63,481
Restricted cash equivalents	8,141	8,115	8,047	8,034
Total cash, cash equivalents and restricted cash equivalents	$ 80,234	$ 87,606	$ 69,542	$ 71,515

Fair Value of Financial Instr24

Fair Value of Financial Instruments (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Level 1 [Member]
Fair Values of Financial Instruments [Abstract]
Deferred compensation plans	$ 6.4	$ 6

Credit Arrangement (Details)

Credit Arrangement (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018USD ($)
Credit Agreement [Member]
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 60
Reduction in borrowing base due to deficit in fixed charges coverage ratio test	$ 6
Number of trailing months to compute fixed charges coverage ratio	12 months
Current borrowing base	$ 55.6
Net availability	$ 49.6
Maturity date	Mar. 31, 2021
Letter of Credit [Member]
Line of Credit Facility [Line Items]
Outstanding letters of credit	$ 0

Other income, net (Details)

Other income, net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Other income, net [Abstract]
Other income from real estate sales and insurance recoveries	$ 995	$ 1,158

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Income Taxes [Abstract]
Statutory corporate tax rate	21.00%		35.00%
Effective tax rate	25.40%	38.50%

Stock Based Compensation Plan28

Stock Based Compensation Plan (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended
		Mar. 31, 2018	Mar. 31, 2017
Additional Disclosures [Abstract]
Stock based compensation expense		$ 1.6	$ 1.3
Total compensation cost related to unvested equity awards		$ 7.8
Weighted-average period of recognition of cost		2 years 6 months
Service-Based Restricted Stock Awards [Member]
Shares or Units and Rights [Roll Forward]
Outstanding, beginning balance (in shares)		254,490
Granted/Issued (in shares)		116,035
Awards vested or rights exercised (in shares)	[1]	0
Forfeited (in shares)		(400)
Outstanding, ending balance (in shares)		370,125
Exercisable, ending balance (in shares)		0
Awards expected to vest (in shares)		370,125
Weighted-Average Award Price [Roll Forward]
Outstanding, beginning balance (in dollars per share)		$ 21.88
Granted/Issued (in dollars per share)		22.95
Awards vested or rights exercised (in dollars per share)	[1]	0
Forfeited (in dollars per share)		22.38
Outstanding, ending balance (in dollars per share)		22.21
Exercisable, ending balance (in dollars per share)		0
Awards expected to vest (in dollars per share)		$ 22.21
Additional Disclosures [Abstract]
Aggregate intrinsic value of outstanding awards		$ 7.5
Service-Based Restricted Stock Awards [Member] | Minimum [Member]
Additional Disclosures [Abstract]
Vesting period of awards		1 year
Service-Based Restricted Stock Awards [Member] | Maximum [Member]
Additional Disclosures [Abstract]
Vesting period of awards		4 years
Performance-Based Restricted Stock Awards [Member]
Shares or Units and Rights [Roll Forward]
Outstanding, beginning balance (in shares)		179,774
Granted/Issued (in shares)		103,940
Awards vested or rights exercised (in shares)	[1]	(46,269)
Forfeited (in shares)		(7,033)
Outstanding, ending balance (in shares)		230,412
Exercisable, ending balance (in shares)		0
Awards expected to vest (in shares)		214,481
Weighted-Average Award Price [Roll Forward]
Outstanding, beginning balance (in dollars per share)		$ 21.42
Granted/Issued (in dollars per share)		22.95
Awards vested or rights exercised (in dollars per share)	[1]	20.35
Forfeited (in dollars per share)		0
Outstanding, ending balance (in dollars per share)		21.60
Exercisable, ending balance (in dollars per share)		0
Awards expected to vest (in dollars per share)		$ 21.58
Additional Disclosures [Abstract]
Vesting period of awards		3 years
Fair value of vested shares		$ 1.1
Aggregate intrinsic value of outstanding awards		$ 4.6
Stock-Settled Appreciation Rights [Member]
Shares or Units and Rights [Roll Forward]
Outstanding, beginning balance (in shares)		57,000
Granted/Issued (in shares)		0
Awards vested or rights exercised (in shares)	[1]	0
Forfeited (in shares)		0
Outstanding, ending balance (in shares)		57,000
Exercisable, ending balance (in shares)		57,000
Awards expected to vest (in shares)		0
Weighted-Average Award Price [Roll Forward]
Outstanding, beginning balance (in dollars per share)		$ 18.14
Granted/Issued (in dollars per share)		0
Awards vested or rights exercised (in dollars per share)	[1]	0
Forfeited (in dollars per share)		0
Outstanding, ending balance (in dollars per share)		18.14
Exercisable, ending balance (in dollars per share)		18.14
Awards expected to vest (in dollars per share)		$ 0
Additional Disclosures [Abstract]
Aggregate intrinsic value of outstanding awards		$ 0.1
Aggregate intrinsic value of vested awards		$ 0.1
[1]	Includes shares repurchased from employees for employee's tax liability.

Earnings Per Share (Details)

Earnings Per Share (Details) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)Vote$ / sharesshares	Mar. 31, 2017USD ($)$ / sharesshares
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Percentage of earnings or losses assumed in calculation	100.00%
Preferential dividend rate of dividend paid on Class A Common Stock	105.00%
Common Stock [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Number of votes per share | Vote	1
Numerator [Abstract]
Distributed earnings	$ 3,491	$ 2,317
Undistributed earnings	2,320	3,180
Basic	5,811	5,497
Class A Common earnings	502	489
Diluted	$ 6,313	$ 5,986
Denominator [Abstract]
Weighted average shares outstanding - basic (in shares) | shares	19,418	19,297
Assumed conversion of Class A Common Stock (in shares) | shares	1,767	1,813
Dilutive options, awards and common stock equivalents (in shares) | shares	420	430
Total weighted-average diluted Common Stock (in shares) | shares	21,605	21,540
Basic earnings per share [Abstract]
Common Stock (in dollars per share) | $ / shares	$ 0.30	$ 0.28
Diluted earnings per share [Abstract]
Common Stock (in dollars per share) | $ / shares	$ 0.29	$ 0.28
Class A Common [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Number of votes per share | Vote	10
Numerator [Abstract]
Distributed earnings	$ 301	$ 204
Undistributed earnings	201	285
Class A Common earnings	$ 502	$ 489
Denominator [Abstract]
Weighted average shares outstanding (in shares) | shares	1,767	1,813
Basic earnings per share [Abstract]
Common Stock (in dollars per share) | $ / shares	$ 0.28	$ 0.27
Diluted earnings per share [Abstract]
Common Stock (in dollars per share) | $ / shares	$ 0.28	$ 0.27