Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2016	Feb. 21, 2017	Jun. 30, 2016
Document And Entity Information
Entity Registrant Name	TILE SHOP HOLDINGS, INC.
Entity Central Index Key	0001552800
Entity Filer Category	Large Accelerated Filer
Document Type	10-K
Document Fiscal Period Focus	FY
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2016
Current Fiscal Year End Date	--12-31
Trading Symbol	tts
Amendment Flag	false
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Common Stock, Shares Outstanding (in shares)		51,609,221
Entity Public Float			$ 756,087,352

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 6,067	$ 10,330
Restricted cash	3,000	219
Trade receivables, net	2,414	1,966
Inventories	74,295	69,878
Prepaid inventory	110	568
Income tax receivable	1,670	735
Other current assets, net	8,645	3,557
Total Current Assets	96,201	87,253
Property, plant and equipment, net	141,037	135,115
Deferred tax assets	21,391	20,846
Long-term restricted cash	3,881
Other assets	2,763	1,793
Total Assets	265,273	245,007
Current liabilities:
Accounts payable	20,321	14,584
Current portion of long-term debt	6,286	4,744
Income tax payable	120	1,101
Other accrued liabilities	33,461	19,327
Total Current Liabilities	60,188	39,756
Long-term debt, net	22,126	51,178
Capital lease obligation, net	697	797
Deferred rent	37,595	34,983
Other long-term liabilities	5,768	3,092
Total Liabilities	126,374	129,806
Stockholders’ Equity:
Common stock, par value $0.0001; authorized: 100,000,000 shares; issued and outstanding: 51,607,143 and 51,437,973 shares, respectively	5	5
Preferred stock, par value $0.0001; authorized: 10,000,000 shares; issued and outstanding: 0 shares
Additional paid-in-capital	185,998	180,192
Accumulated deficit	(47,058)	(64,985)
Accumulated other comprehensive (loss) income	(46)	(11)
Total Stockholders' Equity	138,899	115,201
Total Liabilities and Stockholders' Equity	$ 265,273	$ 245,007

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2016	Dec. 31, 2015
Consolidated Balance Sheets [Abstract]
Common stock, par value (per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	51,607,143	51,437,973
Common stock, shares outstanding	51,607,143	51,437,973
Preferred stock, par value (per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Consolidated Statements of Operations [Abstract]
Net sales	$ 324,157	$ 292,987	$ 257,192
Cost of sales	97,261	89,377	78,300
Gross profit	226,896	203,610	178,892
Selling, general and administrative expenses	193,983	174,384	157,316
Income from operations	32,913	29,226	21,576
Interest expense	(1,715)	(2,584)	(3,141)
Other income (expense)	141	130	(506)
Income before income taxes	31,339	26,772	17,929
Provision for income taxes	(12,876)	(11,076)	(7,382)
Net income	$ 18,463	$ 15,696	$ 10,547
Income per common share:
Basic	$ 0.36	$ 0.31	$ 0.21
Diluted	$ 0.36	$ 0.31	$ 0.21
Weighted average shares outstanding:
Basic	51,418,600	51,161,059	51,015,354
Diluted	51,880,113	51,304,982	51,029,790

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Consolidated Statements of Comprehensive (Loss) Income [Abstract]
Net income	$ 18,463	$ 15,696	$ 10,547
Currency translation adjustment	(35)	(11)
Other comprehensive (loss) income	(35)	(11)
Comprehensive income	$ 18,428	$ 15,685	$ 10,547

Consolidated Statements of Stockholders' Equity (Deficit) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained (Deficit) Earnings [Member]	Accumulated Other Comprehensive (Loss) Income [Member]	Total
Balance at Dec. 31, 2013	$ 5,000	$ 169,719,000	$ (91,228,000)		$ 78,496,000
Balance (in shares) at Dec. 31, 2013	51,229,720
Issuance of restricted shares
Issuance of restricted shares (in shares)	76,066
Stock based compensation		$ 4,617,000			$ 4,617,000
Stock option exercises		35,000			35,000
Stock option exercises (in shares)	8,219
Net income			$ 10,547,000		10,547,000
Balance (in shares) at Dec. 31, 2014	51,314,005
Balance at Dec. 31, 2014	$ 5,000	$ 174,371,000	$ (80,681,000)		$ 93,695,000
Issuance of restricted shares
Issuance of restricted shares (in shares)	54,036
Stock based compensation		$ 5,545,000			$ 5,545,000
Stock option exercises		276,000			276,000
Stock option exercises (in shares)	69,932
Foreign currency translation adjustments				$ (11,000)	(11,000)
Net income			$ 15,696,000		$ 15,696,000
Balance (in shares) at Dec. 31, 2015	51,437,973				51,437,973
Balance at Dec. 31, 2015	$ 5,000	180,192,000	(64,985,000)	(11,000)	$ 115,201,000
Reclassification of impact of ASU 2016-09 (see Note 1)		687,000	(536,000)		151,000
Adjusted balance	$ 5,000	$ 180,879,000	$ (65,521,000)	$ (11,000)	$ 115,352,000
Issuance of restricted shares
Issuance of restricted shares (in shares)	73,384
Stock based compensation		$ 4,333,000			$ 4,333,000
Stock option exercises	$ 95,786	786,000			786,000
Foreign currency translation adjustments				$ (35,000)	(35,000)
Net income			$ 18,463,000		$ 18,463,000
Balance (in shares) at Dec. 31, 2016	51,607,143				51,607,143
Balance at Dec. 31, 2016	$ 5,000	$ 185,998,000	$ (47,058,000)	$ (46,000)	$ 138,899,000

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash Flows From Operating Activities
Net income	$ 18,463	$ 15,696	$ 10,547
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation & amortization	23,042	22,236	19,925
Amortization of debt issuance costs	487	308	210
Debt issuance cost writeoff		194
Loss on disposals of property, plant and equipment	447	143	633
Deferred rent	2,382	2,785	7,364
Stock based compensation	4,333	5,545	4,617
Deferred income taxes	(395)	5,743	1,190
Changes in operating assets and liabilities:
Trade receivables	(448)	(254)	(514)
Inventories	(4,417)	(1,021)	(1,101)
Prepaid expenses and other current assets	(5,849)	(1,387)	3,675
Accounts payable	4,195	945	(5,174)
Income tax receivable/ payable	(1,917)	5,304	4,591
Accrued expenses and other liabilities	13,229	4,027	1,238
Net cash provided by operating activities	53,552	60,264	47,201
Cash Flows From Investing Activities
Proceeds from cash surrender value of life insurance policy			687
Change in value of life insurance policy			(10)
Purchases of property, plant and equipment	(27,256)	(18,994)	(41,229)
Proceeds from the sale of property, plant and equipment	4
Net cash used in investing activities	(27,252)	(18,994)	(40,552)
Cash Flows From Financing Activities
Release of restricted cash	1,926		766
Payments of long-term debt and capital lease obligations	(37,822)	(124,025)	(26,412)
Advances on line of credit	10,000	88,000	23,000
Contributions to NMTC fund	(6,683)
Payment of NMTC closing costs	1,269
Proceeds from exercise of stock options	842	276	35
Employee taxes paid for shares withheld	(56)
Debt issuance costs		(968)
Security deposits	(4)	29	(40)
Net cash used in financing activities	(30,528)	(36,688)	(2,651)
Effect of exchange rate changes on cash	(35)	(11)
Net change in cash	(4,263)	4,571	3,998
Cash and cash equivalents beginning of period	10,330	5,759	1,761
Cash and cash equivalents end of period	6,067	10,330	5,759
Supplemental disclosure of cash flow information
Purchases of property, plant and equipment included in accounts payable and accrued expenses	2,271	898	849
Cash paid for interest	1,811	2,692	3,146
Cash paid for income taxes, net of refunds	$ 15,162	$ 22	$ 2,792

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2016

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 1: Summary of Significant Accounting Policies

Nature of Business

Tile Shop Holdings, Inc. (“Holdings”, and together with its wholly owned subsidiaries, the “Company”) was incorporated in Delaware in June 2012. On August 21, 2012, Holdings consummated the transactions contemplated pursuant to that certain Contribution and Merger Agreement dated as of June 27, 2012, among Holdings, JWC Acquisition Corp., a publicly-held Delaware corporation (“JWCAC”), The Tile Shop, LLC, a privately-held Delaware limited liability company (“The Tile Shop”), and certain other parties. Through a series of transactions, The Tile Shop was contributed to and became a subsidiary of Holdings and Holdings effected a business combination with and became a successor issuer to JWCAC. These transactions are referred to herein as the “Business Combination.”

The Company is a specialty retailer of manufactured and natural stone tiles, setting and maintenance materials, and related accessories in retail locations in the United States. The Company’s assortment includes over 4,000 products from around the world that consist of natural stone, ceramic, porcelain, glass, cement, wood look, and metal tiles. Natural stone products include marble, granite, quartz, sandstone, travertine, slate, and onyx tiles. The majority of the tile products are sold under the Company's proprietary Rush River and Fired Earth brand names. The Company purchases tile products, accessories and tools directly from its network of vendors. The Company manufactures its own setting and maintenance materials, such as thinset, grout, and sealers under the Superior brand name. As of December 31, 2016, the Company operated 123 stores in 31 states and the District of Columbia, with an average size of approximately 21,100 square feet. The Company also sells products on its website.

Basis of Presentation

The consolidated financial statements of Holdings include the accounts of its wholly owned subsidiaries, and variable interest entities, for which the Company is the primary beneficiary. See Note 11, “New Market Tax Credit,” for the discussion of financing arrangements involving certain entities that are variable interest entities that are included in these consolidated financial statements. All significant intercompany transactions have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles in the United States (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. The Company bases its estimates and judgments on historical experience and on various other assumptions that it believes are reasonable under the circumstances. The amount of assets and liabilities reported on the Company's balance sheets and the amounts of income and expenses reported for each of the periods presented are affected by estimates and assumptions, which are used for, but not limited to, the accounting for revenue recognition and related reserves for sales returns, useful lives of property, plant and equipment, determining impairment on long-lived assets, valuation of inventory, compensation expense on stock based compensation plans and income taxes. Actual results may differ from these estimates.

Reclassification

Certain amounts in the prior year’s audited financial statements have been reclassified for comparative purposes to conform with the current year’s presentation. Specifically, debt issuance costs presented in the prior year Consolidated Balance Sheet have been reclassified to conform to current year presentation. Refer to the “New Accounting Pronouncements” section of this footnote for additional discussion.

Cash and Cash Equivalents

The Company had cash and cash equivalents of $6.1 million and $10.3 million at December 31, 2016, and 2015, respectively. The Company considers all highly liquid investments with a maturity date of three months or less when purchased to be cash equivalents. The Company accepts a range of debit and credit cards, and these transactions are generally transmitted to a bank for reimbursement within 24 hours. The payments due from the banks for these debit and credit card transactions are generally received, or settled, within 24 to 48 hours of the transmission date. The Company considers all debit and credit card transactions that settle in less than seven days to be cash and cash equivalents. Amounts due from the banks for these transactions classified as cash and cash equivalents totaled $3.0 million and $1.8 million at December 31, 2016 and December 31, 2015, respectively.

Restricted Cash

Cash and cash equivalents that are restricted as to withdrawal or are under the terms of use for current operations are included in the restricted balance on the balance sheet. Cash and cash equivalents that are restricted as to withdrawal and designated for expenditure in the construction of noncurrent assets are included in long-term restricted cash on the balance sheet.

Trade Receivables

Trade receivables are carried at original invoice amount less an estimate made for doubtful accounts. Management determines the allowance for doubtful accounts on a specific identification basis as well as by using historical experience applied to an aging of accounts. Trade receivables are written off when deemed uncollectible. Recoveries of trade receivables previously written off are recorded when received. The allowance for doubtful accounts was $70,000 and $113,500 as of December 31, 2016 and 2015, respectively. The Company does not accrue interest on accounts receivable.

Inventories

Inventories are stated at the lower of cost (determined using the weighted average cost method) or market. Inventories consist primarily of merchandise held for sale. Inventories were comprised of the following at December 31, 2016 and 2015:



	2016		2015
	(in thousands)
Finished goods	$	61,949	$	59,503
Raw materials		2,312		2,681
Finished goods in transit		10,034		7,694
Total	$	74,295	$	69,878

The Company provides provisions for losses related to shrinkage and other amounts that are not otherwise expected to be fully recoverable. These provisions are calculated based on historical shrinkage, selling price, margin and current business trends. The provision for losses related to shrinkage and other amounts was $163,000 and $337,000 as of December 31, 2016 and 2015, respectively.

Income Taxes

The Company recognizes deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statements or tax returns. Deferred tax liabilities and assets are determined based on the difference between the financial statement basis and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The Company estimates the degree to which tax assets and credit carry forwards will result in a benefit based on expected profitability by tax jurisdiction. A valuation allowance for such tax assets and loss carry forwards is provided when it is determined to be more likely than not that the benefit of such deferred tax asset will not be realized in future periods. If it becomes more likely than not that a tax asset will be used, the related valuation allowance on such assets would be reduced.

The Company records interest and penalties relating to uncertain tax positions in income tax expense. As of December 31, 2016 and 2015, the Company has not recognized any liabilities for uncertain tax positions nor has the Company accrued interest and penalties related to uncertain tax positions.

Revenue Recognition

The Company recognizes sales at the time that the customer takes possession of the merchandise or when final delivery of the product has occurred. The Company recognizes service revenue, which consists primarily of freight charges for home delivery, when the service has been rendered. The Company is required to charge and collect sales and other taxes on sales to the Company's customers and remit these taxes back to government authorities. Total revenues do not include sales tax because the Company is a pass-through conduit for collecting and remitting sales tax. Sales are reduced by an allowance for anticipated sales returns that the Company estimates based on historical returns. The process to establish a sales return reserve contains uncertainties because it requires management to make assumptions and to apply judgment to estimate future returns and exchanges. The customer may receive a refund or exchange the original product for a replacement of equal or similar quality for a period of six months from the time of original purchase. Products received back under this policy are reconditioned pursuant to state laws and resold.

The Company generally requires customers to pay a deposit when purchasing inventory that is not regularly carried at the store location, or not currently in stock. These deposits are included in other accrued liabilities until the customer takes possession of the merchandise.

Sales Return Reserve

Customers may return purchased items for an exchange or refund. The Company records a reserve for estimated product returns, net of cost of sales based on historical return trends together with current product sales performance. A summary of activity in the Company's sales returns reserve follows:



	2016		2015		2014
	(in thousands)
Balance at beginning of year	$	2,781	$	3,292	$	2,850
Additions for sales returns		31,334		26,522		28,517
Deductions from reserve		(31,035)		(27,033)		(28,075)
Balance at end of year	$	3,080	$	2,781	$	3,292

Cost of Sales and Selling, General and Administrative Expenses

The following table illustrates the primary costs classified in each major expense category:

Cost of Sales

Cost of products sold;

Freight expenses to bring products into the Company's distribution centers;

Custom and duty expenses;

Customer shipping and handling expenses;

Physical inventory losses;

Costs incurred at distribution centers in connection with the receiving process;

Labor and overhead costs incurred to manufacture inventory

Selling, General & Administrative Expenses

All other payroll and benefit costs for retail, corporate and distribution employees;

Occupancy, utilities and maintenance costs of retail and corporate facilities;

Freight expenses to move inventory from the Company's distribution centers to the Company's stores;

Depreciation and amortization;

Advertising costs

Our largest supplier accounted for approximately 12% of our total purchases in 2016.

Stock Based Compensation

The Company recognizes expense for its stock based compensation based on the fair value of the awards that are granted. Compensation expense is recognized on a straight-line basis over the requisite service period, net of actual forfeitures. The Company may issue incentive awards in the form of stock options, restricted stock awards and other equity awards to employees and non-employee directors. Compensation cost is recognized ratably over the requisite service period of the related stock based compensation award.

Concentration of Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and bank deposits. By their nature, all such instruments involve risks including credit risks of non-performance by counterparties. A substantial portion of the Company's cash and cash equivalents and bank deposits are invested with banks with high investment grade credit ratings.

Segments

The Company’s operations consist primarily of retail sales of manufactured and natural stone tiles, setting and maintenance materials, and related accessories in stores located in the United States and through its website. The Company’s chief operating decision maker only reviews the consolidated results of the Company and accordingly, the Company has concluded it has one reportable segment.

Advertising Costs

Advertising costs were $6.9 million, $6.5 million and $5.7 million, for the years ended December 31, 2016, 2015 and 2014, respectively, and are included in selling, general and administrative expenses in the consolidated statements of operations. The Company’s advertising consists primarily of digital media, direct marketing, events and traditional print media that is expensed at the time the media is distributed.

Pre-opening Costs

The Company’s pre-opening costs are those typically associated with the opening of a new store and generally include rent expense, payroll costs and promotional costs. The Company expenses pre-opening costs as incurred which are recorded in selling, general and administrative expenses. During the years ended December 31, 2016, 2015 and 2014, the Company reported pre-opening costs of $0.9 million, $0.5 million and $1.5 million, respectively.

Property, Plant and Equipment

Property, plant equipment and leasehold improvements are recorded at cost. Improvements are capitalized while repairs and maintenance costs are charged to selling, general and administrative expenses when incurred. Property, plant and equipment are depreciated or amortized using the straight-line method over each asset’s estimated useful life. Leasehold improvements and fixtures at leased locations are amortized using the straight-line method over the shorter of the lease term (including renewal terms) or the estimated useful life of the asset. The cost and accumulated depreciation of assets sold or otherwise disposed of are removed from the accounts and any gain or loss thereon is included in other income and expense.



	Asset life (in years)
Buildings and building improvements		40
Leasehold improvements	8	–	26
Furniture and fixtures	2	–	7
Machinery and equipment	5	–	10
Computer equipment and software	3	–	7
Vehicles		5

Internal Use Software

The Company capitalizes software development costs incurred during the application development stage related to new software or major enhancements to the functionality of existing software that is developed solely to meet the Company’s internal operational needs and when there are no plans to market the software externally. Costs capitalized include external direct costs of materials and services and internal payroll and payroll-related costs. Any costs during the preliminary project stage or related to training or maintenance are expensed as incurred. Capitalization ceases when the software project is substantially complete and ready for its intended use. The capitalization and ongoing assessment of recoverability of development costs requires considerable judgment by management with respect to certain external factors, including, but not limited to, technological and economic feasibility, and estimated economic life. As of December 31, 2016 and 2015, $0.4 million and $0.9 million was included in computer equipment and software, respectively. The majority of the costs capitalized relate to amounts invoiced by external consultants. The costs are amortized over estimated useful lives of three to five years. There was $0.5 million, $0.5 million and $0.3 million depreciation expense related to capitalized software during the years ended December 31, 2016, 2015 and 2014, respectively.

Leases

The Company leases its store and corporate headquarters locations. Assets held under capital leases are included in property, plant and equipment and amortization is included in depreciation expense. Operating lease rentals are expensed on a straight-line basis over the life of the lease beginning on the date the Company takes possession of the property. Tenant improvement allowances are amounts received from a lessor for improvements to leased properties and are amortized against rent expense over the life of the respective leases. At lease inception, the Company determines the lease term by assuming the exercise of those renewal options that are reasonably assured. The exercise of lease renewal options is at the Company’s sole discretion. The lease term is used to determine whether a lease is capital or operating and is used to calculate straight-line rent expense. Additionally, the depreciable life of leased assets and leasehold improvements is limited by the expected lease term. Rent expense is included in selling, general and administrative expenses. Certain leases require the Company to pay real estate taxes, insurance, maintenance and other operating expenses associated with the leased premises. These expenses are also classified in selling, general and administrative expenses.

Self-Insurance

The Company is self-insured for certain employee health benefit and workers compensation claims. The Company estimates a liability for aggregate losses below stop-loss coverage limits based on estimates of the ultimate costs to be incurred to settle known claims and claims not reported as of the balance sheet date. The estimated liability is not discounted and is based on a number of assumptions and factors including historical trends, and economic conditions. As of December 31, 2016 and 2015, an accrual of $0.7 million and $0.5 million related to estimated employee health benefit claims was included in other current liabilities, respectively. As of December 31, 2016 and 2015, an accrual of $1.2 million and $0.6 million related to estimated workers compensation claims was included in other current liabilities, respectively.

The Company has a standby letter of credit outstanding related to the Company's worker's compensation insurance policy. As of December 31, 2016 and 2015, the standby letter of credit totaled $1.1 million and $0.9 million, respectively.

New Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In August 2014, the Financial Accounting Standards Board (“FASB”) issued a standard requiring an entity’s management to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern within one year after the date of the financial statements. The guidance also sets forth a series of disclosures that are required in the event the entity’s management concludes that there is substantial doubt about the entity’s ability to continue as a going concern. The adoption of this new standard did not have a material effect on the Company’s financial statements.

In February 2015, the FASB issued a new accounting standard that modifies current consolidation guidance. The standard makes changes to both the variable interest entity model and the voting interest entity model, including modifying the evaluation of whether limited partnerships or similar legal entities are variable interest entities or voting interest entities and amending the guidance for assessing how relationships of related parties affect the consolidation analysis of variable interest entities. The standard was effective for the Company as of the beginning of fiscal 2016. The adoption of this new standard did not have a material effect on the Company’s financial statements.

In April 2015, the FASB issued a standard that requires debt issuance costs related to a recognized debt liability be presented in the Consolidated Balance Sheet as a direct deduction from the carrying amount of that debt liability. The Company adopted the provisions of this statement in the first quarter of 2016 and prior periods have been retrospectively adjusted. The adoption of this standard resulted in a $0.1 million reduction of other current assets, net, a $0.3 million reduction of other assets, a $0.3 million reduction of the current portion of long-term debt, and a $0.1 million reduction of long-term debt in the Consolidated Balance Sheet for the period ended December 31, 2015.

In March 2016, the FASB issued a standard that amends and simplifies the accounting for stock compensation. The guidance addresses various stock compensation aspects including accounting for income taxes, classification of excess tax benefits on the statement of cash flows, forfeitures, minimum statutory tax withholding requirements, and classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax withholding purposes, among other things. In order to simplify the accounting for stock based compensation, the Company made a change in accounting policy to account for forfeitures when they occur, and as a result, we recognized a $0.5 million cumulative-effect reduction to retained earnings under the modified retrospective approach. During the third quarter of 2016, the Company recognized an adjustment to reduce additional paid-in capital and share based compensation by $0.1 million to account for current year forfeiture activity. We elected prospective transition for the requirement to classify excess tax benefits as an operating activity in the Consolidated Statement of Cash Flows. The adoption did not have a material impact on the amounts reported in the Consolidated Statement of Cash Flows for the year ended December 31, 2016. Additionally, the Company will prospectively recognize all excess tax benefits and tax deficiencies as income tax expense or benefit in the Consolidated Statement of Operations as a discrete item in the period in which awards vest. The adoption did not have a material impact on the amounts reported in the Consolidated Statement of Operations for the year ended December 31, 2016. The Company applied the modified retrospective method to recognize the cumulative effect of previously unrecognized excess tax benefits in opening retained earnings. The adoption did not have a material impact on the amounts reported in the Consolidated Balance Sheet for the year ended December 31, 2015. The Company also retrospectively applied the requirement to present employee taxes paid when an employer withholds shares for tax-withholding purposes as a financing activity in the Consolidated Statement of Cash Flows. The adoption did not have a material impact on the amounts reported in the Consolidated Statement of Cash Flows for the years ended December 31, 2016 and 2015.

Accounting Pronouncements Not Yet Adopted

In May 2014, the FASB issued a final standard on revenue from contracts with customers. This new standard introduces a comprehensive revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. In 2016, the FASB issued several amendments to the standard, including principal versus agent considerations when another party is involved in providing goods or services to a customer, the application of identifying performance obligations, and the recognition of expected breakage amounts either proportionally in earnings as redemptions occur or when redemption is remote. The Company continues to assess the impacts of this standard, including evaluating if its current polices to account for samples, gift cards, and sales returns will change under the new standard. As the Company finalizes its assessment, the Company will take steps to define its accounting policies under the new standard, establish new processes and controls when warranted, and ensure these processes are designed to capture the information necessary to conform to the transitional disclosure requirements. The standard is effective for the Company in fiscal 2018 and provides for either full retrospective adoption or modified retrospective adoption by which the cumulative effect of the change is recognized in retained earnings at the date of initial application. The Company has elected to adopt this standard using the modified retrospective approach.

In July 2015, the FASB issued a standard which simplifies the subsequent measurement of inventory. Currently, an entity is required to measure inventory at the lower of cost or market, whereby market can be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. The changes require that inventory be measured at the lower of cost and net realizable value, thereby eliminating the use of the other two market methodologies. Net realizable value is defined as the estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. These changes become effective for the Company in fiscal 2017. The Company is currently assessing the effect the new standard will have on its consolidated financial statements.

In February 2016, the FASB issued a standard that primarily requires organizations that lease assets to recognize the rights and obligations created by those leases on the Consolidated Balance Sheet. The standard is effective in 2019, with early adoption permitted. The Company is currently assessing the effect the new standard will have on its consolidated financial statements.

In August 2016, the FASB issued an accounting standards update with new guidance on how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments in the standards update provide guidance on eight specific cash flow issues. The standards update is effective retrospectively for fiscal years and interim periods beginning after December 15, 2017, with early adoption permitted. The Company is currently assessing the effect the new standard will have on its consolidated financial statements.

In November 2016, the FASB issued new guidance on restricted cash on the statement of cash flows. The new guidance requires the classification and presentation of changes in restricted cash and cash equivalents in the statement of cash flows. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning and ending balances shown on the statement of cash flows. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. The guidance should be applied retrospectively after adoption. Restricted cash and long-term restricted cash balances were $3.0 million and $3.9 million, respectively, as of December 31, 2016. Upon adopting the new standard, the Company anticipates that the fluctuations in the restricted cash and long-term restricted cash balances will impact its statement of cash flows.

Property, Plant and Equipment

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Note 2: Property Plant and Equipment:

Property, plant and equipment consisted of the following at December 31:



	2016		2015
	(in thousands)
Land	$	904	$	904
Building and building improvements		21,916		21,515
Leasehold improvements		77,404		72,154
Furniture and fixtures		119,589		112,376
Machinery and equipment		26,433		24,457
Computer equipment and software		24,002		15,286
Vehicles		3,136		2,859
Construction in progress		3,543		2,199
Total property, plant and equipment		276,927		251,750
Less accumulated depreciation		(135,890)		(116,635)
Total property, plant and equipment, net	$	141,037	$	135,115

Depreciation expense on property and equipment, including capital leases, was $23.0 million, $22.2 million and $19.9 million for the years ended December 31, 2016, 2015 and 2014, respectively. No asset impairment charges were recorded for the years ended December 31, 2016, 2015, and 2014, respectively.

Accrued Liabilities

12 Months Ended

Dec. 31, 2016

Accrued Liabilities [Abstract]

Accrued Liabilities

Note 3: Accrued Liabilities

Accrued liabilities consisted of the following at December 31:



	2016		2015
	(in thousands)
Shareholder litigation accrual	$	9,500	$	-
Customer deposits		7,742		6,026
Accrued wages and salaries		4,962		4,336
Sales return reserve		3,080		2,781
Payroll & sales taxes		2,691		3,043
Other current liabilities		5,486		3,141
Total accrued liabilities	$	33,461	$	19,327

Long-term Debt

12 Months Ended

Dec. 31, 2016

Long-term Debt [Abstract]

Long-term Debt

Note 4: Long-term Debt

Long-term debt, net of debt issuance costs, consisted of the following at December 31:



	2016				2015
			Unamortized				Unamortized
			Debt Issuance				Debt Issuance
	Principal		Costs		Principal		Costs
	(in thousands)
Term note payable - interest at 2.27% and 2.18% at December 31, 2016 and 2015	$	17,721	$	(114)	$	47,450	$	(428)
Commercial bank credit facility		10,000		-		8,000		-
Variable interest rate bonds (0.89% and 0.35% at December 31, 2016 and 2015), which mature April 1, 2023, collateralized by buildings and equipment		805		-		900		-
Total debt obligations		28,526		(114)		56,350		(428)
Less: current portion		6,350		(64)		5,095		(351)
Debt obligations, net of current portion	$	22,176	$	(50)	$	51,255	$	(77)

Approximate annual aggregate maturities of debts, net of debt issuance costs, are as follows: (in thousands):



Fiscal year
2017	$	6,350
2018		8,855
2019		2,831
2020		10,115
2021		120
Thereafter		255
Total future maturities payments	$	28,526
Less: debt issuance costs		114
Total future maturities payments, net of debt issuance costs	$	28,412

On June 2, 2015, the Company and its operating subsidiary, The Tile Shop, LLC, entered into a credit agreement with Fifth Third Bank, Bank of America, N.A., and Huntington National Bank (as amended, the “Credit Agreement”). On December 9, 2016, the Credit Agreement was amended to permit an additional New Markets Tax Credit Financing arrangement and on February 10, 2017, the Credit Agreement was amended to permit the Company to make certain dividend payments. The Credit Agreement provides the Company with a $125.0 million senior secured credit facility, comprised of a five-year $50.0 million term loan and a $75.0 million revolving line of credit. The Credit Agreement is secured by virtually all of the assets of the Company, including but not limited to, inventory, receivables, equipment and real property. Borrowings pursuant to the Credit Agreement bear interest at either a base rate or a LIBOR-based rate, at the option of the Company. The LIBOR-based rate will range from LIBOR plus 1.50% to 2.00%, depending on The Tile Shop’s leverage ratio. The base rate is equal to the greatest of: (a) the Federal funds rate plus 0.50%, (b) the Fifth Third Bank “prime rate,” and (c) the Eurodollar rate plus 1.00%, in each case plus 0.50% to 1.00% depending on The Tile Shop’s leverage ratio. At December 31, 2016 the base interest rate was 4.25% and the LIBOR-based interest rate was 2.27%. Borrowings outstanding consisted of $10.0 million on the revolving line of credit and $17.7 million on the term loan as of December 31, 2016. There was $65.0 million available for borrowing on the revolving line of credit as of December 31, 2016. Additional borrowings pursuant to the Credit Agreement may be used to support the Company’s growth and for working capital purposes. The Company incurred $1.0 million of debt issuance costs in connection with the Credit Agreement. These costs were capitalized as other current and other noncurrent assets, and will be amortized over the five-year life of the Credit Agreement. The term loan requires quarterly principal payments as follows (in thousands):



Period
March 31, 2017 to June 30, 2017	$	1,250
September 30, 2017 to June 30, 2018		1,875
September 30, 2018 to March 31, 2020		2,500

The Credit Agreement contains customary events of default, conditions to borrowings, and restrictive covenants, including restrictions on the Company’s ability to dispose of assets, make acquisitions, incur additional debt, incur liens, make investments, or enter into transactions with affiliates on other than terms that could be obtained in an arm’s length transaction. The Credit Agreement also includes financial and other covenants including covenants to maintain certain fixed charge coverage ratios and rent adjusted leverage ratios. The Company was in compliance with the covenants as of December 31, 2016.

The Credit Agreement superseded and replaced in its entirety the Company’s senior secured credit facility with Bank of America, N.A. dated October 3, 2012, as amended on April 30, 2013, July 8, 2013, March 26, 2014 and September 29, 2014. The Company used the $50.0 million term loan and $23.0 million drawn on the line of credit pursuant to the Credit Agreement to refinance all of the existing indebtedness outstanding under the Company’s prior credit facility in the amount of approximately $73.0 million, which consisted of $72.8 million in unpaid principal and approximately $0.2 million in accrued and unpaid interest and fees. The Company also recorded a $0.2 million charge in interest expense to write-off of the unamortized deferred financing fees associated with the October 3, 2012 credit facility as of the date of the termination.

As of December 31, 2016 and 2015, the Company had accrued $0.0 million and $0.1 million of interest expense, respectively. Accrued interest is included in other current liabilities.

Capital Leases:

The Company has one lease for store facilities that is accounted for as a capital lease. This lease expires in 2022. Assets acquired under capital leases are included in property, plant and equipment.

As of December 31, 2016, minimum lease payments under the Company's capital lease obligation were as follows (in thousands):



Fiscal year
2017	$	211
2018		215
2019		216
2020		216
2021		215
Thereafter		90
Less: amounts representing interest		(366)
Present value of future minimum lease payments		797
Less: current portion		100
Capital lease obligations, net of current portion	$	697

Commitments and Contingencies

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies [Abstract]

Commitments and Contingencies

Note 5: Commitments and Contingencies

Operating leases:

The Company leases buildings and office space under various operating lease agreements. In addition to rent, most leases require payments of real estate taxes, insurance, and common area maintenance. The leases generally have an initial lease term of ten to fifteen years and contain renewal options and escalation clauses. For leases that contain fixed escalation of the minimum rent or rent holidays, rent expense is recognized on a straight-line basis through the end of the lease term including assumed renewals. The difference between the straight-line rent amounts and amounts payable under the leases is recorded as deferred rent. For the years ended December 31, 2016, 2015 and 2014, rent expense was $29.7 million, $27.2 million, and $25.2 million, respectively.

Annual minimum rentals under non-cancelable operating leases are as follows, for the years ended December 31 (in thousands):



Fiscal year
2017	$	29,722
2018		30,358
2019		30,958
2020		30,833
2021		30,630
Thereafter		368,716
Total future maturities payments	$	521,217

Legal proceedings:

The Company, two of its former executive officers, three of its outside directors, two of its former directors, and certain companies affiliated with the directors, are defendants in a consolidated class action brought under the federal securities laws and now pending in the United States District Court for the District of Minnesota under the caption Beaver County Employees’ Retirement Fund, et al. v. Tile Shop Holdings, Inc., et al. Several related actions were filed in 2013 and subsequently consolidated. The plaintiffs are three investors who represent classes consisting of (1) all purchasers of Tile Shop common stock between August 22, 2012 and January 28, 2014 (the “class period”), seeking to pursue remedies under the Securities Exchange Act of 1934; and (2) all purchasers of Tile Shop common stock pursuant and/or traceable to the Company’s December 2012 registration statement, seeking to pursue remedies under the Securities Act of 1933. Six firms who were underwriters in the December 2012 secondary public offering are also named as defendants. The plaintiffs allege that during the class period, defendants failed to disclose certain related party transactions in the Company’s SEC filings and press releases. The plaintiffs assert claims under Sections 11, 12(a)(2), and 15 of the Securities Act of 1933, and under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. In addition to attorneys’ fees and costs, the plaintiffs seek to recover damages on behalf of class members. Subsequent to December 31, 2016, the parties have entered into a Stipulation of Settlement (“Stipulation”) dated January 13, 2017 to settle all claims. Pursuant to the Stipulation, $9.5 million will be paid on behalf of all defendants. The Company has agreed to pay $5.0 million of that amount and the insurance company providing coverage for the initial tier of the Company’s directors and officer’s policy has agreed to pay $4.5 million of the settlement. The Company and the insurance provider subsequently transferred money to an escrow account that had been established to hold the settlement fund. The settlement is subject to court approval. The court has scheduled a hearing on whether to grant final approval of the settlement for May 3, 2017.

The net charge of $5.0 million was recorded in selling, general and administrative expenses in the Consolidated Statement of Operations during the year ended December 31, 2016. The Company recorded a $9.5 million other current liability and a $4.5 million other current asset in the Consolidated Balance Sheet as of December 31, 2016 to reflect the Company’s obligation to the class and the corresponding receivable from the insurance company. The Company will pursue recovery of this amount as well as other legal fees incurred in connection with this case from its insurance providers who cover losses under the directors and offers policy exceeding the initial tier of coverage.

The Company also is a Defendant in three actions brought derivatively on behalf of the Company by three shareholders in the Court of Chancery for the State of Delaware (“Delaware Chancery Court”). Two of the actions were filed in 2015 and then consolidated (the “Consolidated Actions”). On July 31, 2015, the plaintiff-shareholders in the Consolidated Actions filed a consolidated complaint. The consolidated complaint names as defendants four current members of the Company’s Board of Directors, two of its former Directors, and a former employee of the Company. The third action (the “Third Action”) was filed on or about September 28, 2016 against seven members of the Company’s Board of Directors, a former officer, and a former employee. All of the complaints track many of the same factual allegations as have been made in the above-described federal securities class action. They allege that the defendant-directors and/or officer breached their fiduciary duties by failing to adopt adequate internal controls for the Company, by approving false and misleading statements issued by the Company, by causing the Company to violate generally accepted accounting principles and SEC regulations, by engaging in or approving alleged insider trading, and by permitting the Company’s primary product to contain illegal amounts of lead. The complaints also allege claims for insider trading and/or unjust enrichment. The complaints seek damages, disgorgement, an award of attorneys’ fees and other expenses, and an order compelling changes to the Company’s corporate governance and internal procedures. In 2015, the defendants moved to dismiss the Consolidated Actions, or in the alternative, to stay the Consolidated Actions pending resolution of the Beaver County Employees’ Retirement Fund action described above. Subsequently, upon agreement of the parties, the Court entered an Order staying the Consolidated Actions. Recently the Company moved to dismiss the newly-filed Third Action, or in the alternative, to stay the Third Action until resolution of the Beaver County Employees’ Retirement Fund action described above, or until the Company’s Board of Directors takes action on the demand described below. That motion has not yet been decided.

By letter dated May 19, 2016, a shareholder of the Company, through his attorney and prior to filing the Third Action, demanded that the Board of Directors investigate alleged breaches of fiduciary duty related to the same matters described above, and take action against certain present and former officers and directors of the Company. The Board of Directors has appointed a committee of two independent directors to investigate and evaluate the matters raised in the demand letter, and to recommend to the Company’s Board of Directors what actions, if any should be taken by the Company with respect to the matters raised in the demand letter.

Given the uncertainty of litigation and the preliminary stage of these cases, the Company cannot reasonably estimate the possible loss or range of loss that may result from these actions. The Company maintains directors and officers liability insurance policies that may reduce the Company’s exposure, if any. In the event the Company incurs a loss, the Company will pursue recoveries to the maximum extent available under these policies.

The Company is also, from time to time, subject to claims and disputes arising in the normal course of business. In the opinion of management, while the outcome of such claims and disputes cannot be predicted with certainty, the Company’s ultimate liability in connection with these matters is not expected to have a material adverse effect on the results of operations, financial position, or cash flows.

Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2016

Fair Value of Financial Instruments [Abstract]

Fair Value of Financial Instruments

Note 6: Fair Value of Financial Instruments:

Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. To measure fair value, the Company uses a three-tier valuation hierarchy based upon observable and non-observable inputs:

Level 1 – Unadjusted quoted prices that are available in active markets for the identical assets or liabilities at the measurement date.

Level 2 – Significant other observable inputs available at the measurement date, other than quoted prices included in Level 1, either directly or indirectly, including:

Quoted prices for similar assets or liabilities in active markets;

Quoted prices for identical or similar assets or liabilities in non-active markets;

Inputs other than quoted prices that are observable for the asset or liability; and

Inputs that are derived principally from or corroborated by other observable market data.

Level 3 – Significant unobservable inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment.

The following table sets forth by Level within the fair value hierarchy the Company’s financial assets that were accounted for at fair value on a recurring basis at December 31, 2016 and December 31, 2015 according to the valuation techniques the Company uses to determine their fair values. There have been no transfers of assets among the fair value hierarchies presented.



	Pricing	Fair Value at
	Category	December 31, 2016		December 31, 2015
Assets	(in thousands)
Cash and cash equivalents	Level 1	$	6,067	$	10,330
Restricted cash	Level 1		3,000		219
Long-term restricted cash	Level 1		3,881		-

The following methods and assumptions were used to estimate the fair value of each class of financial instrument. There have been no changes in the valuation techniques used by the Company to value the Company’s financial instruments.

Cash and cash equivalents: Consists of cash on hand and bank deposits. The value was measured using quoted market prices in active markets. The carrying amount approximates fair value.

Restricted cash: Consists of cash and cash equivalents held in bank deposit accounts restricted as to withdrawal or are under the terms of use for current operations. The value was measured using quoted market prices in active markets. The carrying amount approximates fair value.

Long term restricted cash: Consists of cash and cash equivalents held in bank deposit accounts restricted as to withdrawal and designated for expenditure in the construction of noncurrent assets. The value was measured using quoted market prices in active markets. The carrying amount approximates fair value.

Fair value measurements also apply to certain non-financial assets and liabilities measured at fair value on a nonrecurring basis. Property, plant and equipment is measured at fair value when an impairment is recognized and the related assets are written down to fair value. The Company did not recognize any significant impairment losses during 2016 or 2015. The carrying value of the Company’s borrowings under its credit agreement approximate fair value based upon the market interest rates available to the Company for debt obligations with similar risks and maturities.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Related Party Transactions	12 Months Ended
Related Party Transactions	Dec. 31, 2016
Related Party Transactions [Abstract]
Related Party Transactions	Note 7: Related Party Transactions The Company employs Adam Rucker, son of Robert A. Rucker, a member of our Board of Directors, as a Director of Information Technology. In fiscal 2016, the Company paid Adam Rucker a total of $140,000, consisting of base salary and cash bonus. In fiscal 2015, the Company paid Adam Rucker a total of $127,000, consisting of base salary and cash bonus. Also in 2015, the Company granted stock options to Adam Rucker that had a combined grant date fair value of $44,000. In fiscal 2014, the Company paid Adam Rucker $104,000 consisting of base salary and cash bonus. Adam Rucker also received the standard benefits provided to other Company employees during 2016, 2015 and 2014.

Earnings Per Share

12 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

Earnings Per Share

Note 8: Earnings Per Share

Basic earnings per share is calculated by dividing net income by the weighted-average number of shares outstanding during the period. Diluted earnings per share is calculated by dividing net income by the weighted-average number of common shares outstanding, after taking into consideration all dilutive potential common shares outstanding during the period.

Basic and diluted net income per share was calculated as follows:



	2016		2015		2014
	(in thousands, except share and per share data)
Net income	$	18,463	$	15,696	$	10,547
Weighted-average shares outstanding - basic		51,418,600		51,161,059		51,015,354
Dilutive common stock equivalents		461,513		143,923		14,436
Weighted-average shares outstanding - diluted		51,880,113		51,304,982		51,029,790
Basic net income per share	$	0.36	$	0.31	$	0.21
Diluted net income per share	$	0.36	$	0.31	$	0.21
Antidilutive Shares		373,255		568,014		1,042,579

Equity Incentive Plans

12 Months Ended

Dec. 31, 2016

Equity Incentive Plans [Abstract]

Equity Incentive Plans

Note 9: Equity Incentive Plans

2012 Plan:

Under the 2012 Omnibus Award Plan (the “2012 Plan”), 2,500,000 shares of the Company’s common stock were initially reserved for issuance pursuant to a variety of stock based compensation awards, including stock options, and restricted stock awards. The number of shares initially reserved for issuance or transfer pursuant to awards under the 2012 Plan was to be increased on the first day of each calendar year beginning in 2013 and ending in 2022, in an amount equal to the lesser of (A) 2,500,000 shares, (B) six percent (6%) of the shares of common stock outstanding (on an as-converted basis) on the last day of the immediately preceding calendar year, and (C) such smaller number of shares of stock as determined by the Company’s Board of Directors. During 2013, (i) 2,500,000 shares of common stock were added to the 2012 Plan reserve effective January 1, 2013 in accordance with the automatic share increase provision of the 2012 Plan, (ii) the 2012 Plan was amended to eliminate the automatic share increase for subsequent years, and (iii) the 2012 Plan was amended to authorize grants of performance-based awards, which may be paid in cash or equity. The amendments to the 2012 Plan were approved by the Company’s stockholders in July 2013.

Stock Options:

During the years ended December 31, 2016, 2015 and 2014, the Company granted stock options to its employees that included service condition requirements. The options provide for certain acceleration of vesting and cancellation of options under different circumstances, such as a change in control, death, disability and termination of service. The Company recognizes compensation expense on a straight-line basis over the requisite service period, net of actual forfeitures. For the portion of the options that contain both a market and service condition, the Company recognizes compensation expense, net of actual forfeitures, using graded vesting over the requisite service period.

The fair value of each option grant was estimated on the date of grant using the Black-Scholes option pricing model. The assumptions used in the option valuation models are outlined in the following table:



	2016			2015			2014
Risk-free interest rate	1.15%	–	1.52%	0.90%	–	1.07%	0.78%	–	1.05%
Expected life (in years)	5	–	7		5			5
Expected volatility	52%	–	53%	52%	–	53%		52%

The computation of the expected volatility assumptions used in the option valuation models was based on historical volatilities of the Company. The Company used the “simplified” method for an expected life as prescribed in SEC Staff Accounting Bulletin (“SAB”) No. 110, for companies that do not have adequate historical data. The risk-free interest rate was based on the U.S. Treasury yield at the time of grant. The expected dividend yield was zero for all stock options granted prior to December 31, 2016 based on the fact that, at that time, the Company had not paid dividends or a plan to pay dividends in the future. To the extent that actual outcomes differ from the Company's assumptions, the Company is not required to true up grant-date fair value-based expense to final intrinsic values. The weighted average fair value of stock options granted was $7.37, $5.00, and $5.13 during the years ended December 31, 2016, 2015 and 2014, respectively.

Stock based compensation related to options for the years ended December 31, 2016, 2015 and 2014 was $3.2 million, $3.6 million, and $2.8 million, respectively, and was included in selling, general and administrative expenses in the consolidated statements of operations. As of December 31, 2016, the total future compensation cost related to non-vested options not yet recognized in the consolidated statement of operations was $5.3 million and is expected to be recognized over a weighted-average period of 3.3 years.

The following table summarizes stock option activity:



	Shares	Weighted Average Exercise Price		Weighted Avg Grant Date Fair Value		Weighted Avg Remaining Contractual Term (Years)	Aggregate Intrinsic Value (in thousands)
Balance, January 1, 2014	2,274,917	$	14.02	$	6.92	8.9	$	13,051
Granted	768,750	$	11.47	$	5.13
Exercised	(15,917)	$	10.00	$	5.19
Cancelled/Forfeited	(556,750)	$	13.93	$	6.60
Balance, December 31, 2014	2,471,000	$	13.27	$	6.45	7.6	$	38
Granted	482,671	$	10.91	$	5.00
Exercised	(69,932)	$	10.00	$	5.17
Cancelled/Forfeited	(258,794)	$	11.81	$	5.61
Balance, December 31, 2015	2,624,945	$	13.07	$	6.30	6.5	$	12,757
Granted	443,500	$	15.43	$	7.37
Exercised	(95,786)	$	10.47	$	5.40
Cancelled/Forfeited	(612,118)	$	12.33	$	5.68
Balance, December 31, 2016	2,360,541	$	13.84	$	6.71	5.7	$	15,971
Exercisable at December 31, 2016	1,358,430	$	13.60	$	6.79	5.7
Vested and expected to vest, December 31, 2016	2,660,291	$	13.40	$	6.46	5.7	$	18,834

The aggregate intrinsic value is the difference between the exercise price and the closing price of the Company’s stock on December 31. The intrinsic value of the stock options exercised during 2016 and 2015 was $0.9 million and $0.4 million, respectively.

Options outstanding as of December 31, 2016 are as follows:



Range of Exercise Price				Weighted Average
			Options	Exercise Price		Remaining Contractual Life-Years
$5.00	to	$10.00	1,090,007	$	9.66	5.47
$10.01	to	$15.00	648,034	$	12.42	4.97
$15.01	to	$20.00	320,500	$	17.76	7.27
$20.01	to	$25.00	64,000	$	23.14	6.73
$25.01	to	$30.00	238,000	$	29.02	6.72

Restricted Stock:

The following table summarizes restricted stock activity:



	Shares	Weighted Avg Grant Date Fair Value
Nonvested, December 31, 2013	230,896	$	15.84
Granted	76,066	$	11.93
Vested	(117,727)	$	15.19
Forfeited	-	$	-
Nonvested, December 31, 2014	189,235	$	14.67
Granted	54,036	$	12.45
Vested	(164,235)	$	12.50
Forfeited	-	$	-
Nonvested, December 31, 2015	79,036	$	17.67
Granted	73,384	$	17.60
Vested	(66,536)	$	15.55
Forfeited	-	$	-
Nonvested, December 31, 2016	85,884	$	19.25

The total expense associated with restricted stock for the years ended December 31, 2016, 2015, and 2014 was $1.1 million, $1.9 million, and $1.8 million, respectively. As of December 31, 2016, there was $1.2 million of total unrecognized expense related to unvested restricted stock awards, which are expected to vest, and will be expensed through 2021. The fair value of restricted stock granted in fiscal year 2016 was $1.3 million. The total fair value of restricted stock that vested during the year ended December 31, 2015 was $0.9 million. Using the closing stock price of $19.55 on December 31, 2016, the number of restricted shares outstanding and expected to vest was 85,884, with an intrinsic value of $1.7 million.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References + Details

Income Taxes

12 Months Ended

Dec. 31, 2016

Income Taxes [Abstract]

Income Taxes

Note 10: Income Taxes

The Tile Shop, LLC tax returns for periods 2010 through the Business Combination on August 21, 2012 are subject to examination by the IRS; however, these tax liabilities are the responsibility of the former The Tile Shop members. The Company’s federal and state tax returns for the periods ended December 31, 2013, December 31, 2014, and December 31, 2015 remain subject to examination.

The Company records interest and penalties through income tax relating to uncertain tax positions. As of December 31, 2016, 2015 and 2014, the Company has not recognized any liabilities for uncertain tax positions nor has the Company accrued interest and penalties related to uncertain tax positions.

The components of the provision for income taxes (benefit) consist of the following:



	Years Ended December 31,
	2016		2015		2014
	(in thousands)
Current
Federal	$	10,831	$	3,691	$	4,851
State		2,560		1,886		1,351
International		30		-		-
Total Current		13,421		5,577		6,202
Deferred
Federal		(363)		5,252		1,076
State		(182)		247		104
Total Deferred		(545)		5,499		1,180
Total Provision for Income Taxes	$	12,876	$	11,076	$	7,382

A majority of all of the Company's income is from domestic operations.

The following table reflects the effective income tax rate reconciliation for the years ended December 31, 2016, 2015 and 2014:



	2016		2015		2014
Federal statutory rate	35.0	%	35.0	%	35.0	%
State income taxes, net of the federal tax benefit	4.4		4.4		5.0
Stock based compensation	1.6		1.4		1.5
Other	0.1		0.6		(0.3)
Effective tax rate	41.1	%	41.4	%	41.2	%

Components of net deferred income taxes are as follows at December 31:



	2016		2015
	(in thousands)
Deferred income tax assets:
Section 743 carryforward	$	27,251	$	29,843
Leasehold improvement reimbursements		5,299		5,592
Inventory		1,707		1,606
Deferred rent		6,794		5,549
Stock based compensation		3,112		2,488
Other		3,064		1,023
Total deferred income tax assets	$	47,227	$	46,101

Deferred income tax liabilities
Depreciation		25,836		25,255
Total deferred income tax liabilities		25,836		25,255
Net deferred income tax assets	$	21,391	$	20,846

The Company has not recorded U.S. deferred income taxes on approximately $0.5 million of its non-U.S. subsidiaries' undistributed earnings because such amounts are intended to be reinvested outside the United States indefinitely. If these earnings were repatriated to the United States, the Company would be required to accrue and pay U.S. federal income taxes and foreign withholding taxes, as adjusted for foreign tax credits.

New Market Tax Credit	12 Months Ended
New Market Tax Credit	Dec. 31, 2016
New Market Tax Credit [Abstract]
New Market Tax Credit	Note 11: New Market Tax Credit 2016 New Market Tax Credit In December 2016, the Company entered into a financing transaction with U.S. Bank Community, LLC (“U.S. Bank”) related to a $9.2 million expansion of the Company’s facility in Durant, Oklahoma. U.S. Bank made a capital contribution to, and Tile Shop Lending made a loan to, Twain Investment Fund 192 LLC (the “Investment Fund”) under a qualified New Markets Tax Credit (“NMTC”) program. The NMTC program was provided for in the Community Renewal Tax Relief Act of 2000 (the “Act”) and is intended to induce capital investment in qualified lower income communities. The Act permits taxpayers to claim credits against their Federal income taxes for up to 39% of qualified investments in the equity of community development entities (“CDEs”). CDEs are privately managed investment institutions that are certified to make qualified low-income community investments. In December 2016, Tile Shop Lending loaned $6.7 million to the Investment Funds at an interest rate of 1.37% per year and with a maturity of December 31, 2046. The Investment Fund then contributed the loan to a CDE, which, in turn, loaned the funds on similar terms to Tile Shop of Oklahoma, LLC, an indirect, wholly-owned subsidiary of Holdings. The proceeds of the loans from the CDEs (including loans representing the capital contribution made by the investors, net of syndication fees) were used to partially fund the distribution center project. In December 2016, the investors also contributed $3.1 million to the Investment Funds and, by virtue of such contribution, are entitled to substantially all of the tax benefits derived from the NMTCs, while the Company effectively received net loan proceeds equal to the investors’ contributions to the Investment Fund. This transaction includes a put/call provision whereby the Company may be obligated or entitled to repurchase the investors’ interest. The Company believes that the investors will exercise the put option in December 2023 at the end of the recapture period. The value attributed to the put/call is de minimis. The NMTC is subject to 100% recapture for a period of seven years as provided in the Internal Revenue Code. The Company is required to be in compliance with various regulations and contractual provisions that apply to the NMTC arrangement. Non-compliance with applicable requirements could result in projected tax benefits not being realized and, therefore, could require the Company to indemnify the investors for any loss or recapture of NMTCs related to the financing until such time as the obligation to deliver tax benefits is relieved. The Company does not anticipate any credit recaptures will be required in connection with this arrangement. The Company has determined that the financing arrangement with the Investment Funds and CDEs contains a variable interest entity (“VIE”). The ongoing activities of the Investment Funds – collecting and remitting interest and fees and NMTC compliance – were all considered in the initial design and are not expected to significantly affect economic performance throughout the life of the Investment Funds. Management considered the contractual arrangements that obligate the Company to deliver tax benefits and provide various other guarantees to the structure; U.S. Bank’s lack of a material interest in the underling economics of the project; and the fact that the Company is obligated to absorb losses of the Investment Fund. The Company concluded that it is the primary beneficiary of the VIE and consolidated the Investment Funds, as a VIE, in accordance with the accounting standards for consolidation. U.S. Bank’s contributions of $3.1 million, are included in cash, restricted cash, long-term restricted cash, other accrued liabilities, and other long-term liabilities in the Consolidated Balance Sheet. The benefit of this contribution will be recognized as a decrease in depreciation expense as the Company amortizes the contribution liability over the seven-year compliance period as it is being earned through the ongoing compliance with the conditions of the NMTC program. The Company incurred $1.2 million of closing costs in connection with this transaction which are classified as other current assets and other non-current assets in the Consolidated Balance Sheet. The direct costs incurred in connection with this arrangement will be amortized over the seven year compliance period of the NMTC program. After closing on this transaction, the Company is able to request reimbursement for certain expenditures made in connection with the expansion of the distribution center in Durant, Oklahoma from the Investment Fund. Expenditures that qualify for reimbursement include building costs, equipment purchases, and other expenditures tied to the expansion of the facility. As of December 31, 2016, the balance available in the Investment Fund available for reimbursement to the Company was $6.9 million. The Company classified $3.0 million of the Investment Fund balance to be used toward the purchase of current assets as restricted cash and $3.9 million of the Investment Fund balance to be used toward the purchase of long-term assets as long-term restricted cash in the Consolidated Balance Sheet at December 31, 2016. 2013 New Market Tax Credit In July 2013, the Company entered into a financing transaction with U.S. Bank and Chase Community Equity (“Chase”, and collectively with Chase, the “investors”) related to a $19.1 million acquisition, rehabilitation, and construction of the Company’s distribution center and manufacturing facilities in Durant, Oklahoma. In this transaction, Tile Shop Lending loaned $13.5 million to the Tile Shop Investment Fund LLC. The investors contributed $5.6 million to the Tile Shop Investment Fund LLC. The investors are entitled to the tax benefits derived from the NMTC by virtue of their contribution while the Company received the proceeds, net of syndication fees, to apply toward the construction project. This transaction includes a put/call provision whereby the Company may be obligated or entitled to repurchase the investors’ interest. The Company believes that the investors will exercise the put option in September 2020 at the end of the recapture period. The value attributed to the put/call is de minimis. The NMTC is subject to 100% recapture for a period of seven years as provided in the Internal Revenue Code. The Company is required to be in compliance with various regulations and contractual provisions that apply to the NMTC arrangement. Non-compliance with applicable requirements could result in projected tax benefits not being realized and, therefore, could require the Company to indemnify the investors for any loss or recapture of NMTCs related to the financing until such time as the obligation to deliver tax benefits is relieved. The Company does not anticipate any credit recaptures will be required in connection with this arrangement. The Company determined that this financing arrangement contains a VIE. The ongoing activities of the Tile Shop Investment Fund LLC – collecting and remitting interest and fees and NMTC compliance – were all considered in the initial design and are not expected to significantly affect economic performance throughout the life of the Tile Shop Investment Fund LLC. Management considered the contractual arrangements that obligate the Company to deliver tax benefits and provide various other guarantees to the structure; the investors lack of a material interest in the underling economics of the project; and the fact that the Company is obligated to absorb losses of the Investment Fund. The Company concluded that it is the primary beneficiary of the VIE and consolidated the Tile Shop Investment Fund LLC, as a VIE, in accordance with the accounting standards for consolidation. In 2013, the investor’s contributions, of $5.6 million, net of syndication fees were included in cash, restricted cash, other accrued liabilities and other long-term liabilities in the Consolidated Balance Sheet. The Company incurred $1.2 million of syndication fees in connection with this transaction which were classified as other current assets and other non-current assets in the Consolidated Balance Sheet. The Company is recognizing the benefit of this net $4.4 million contribution over the seven-year compliance period as it is being earned through the on-going compliance with the conditions of the NMTC program. As of December 31, 2016, the balance of the contribution liability was $2.4 million, of which $0.7 million is classified as other accrued liabilities on the Consolidated Balance Sheet and $1.7 million is classified as other long-term liabilities on the Consolidated Balance Sheet.

Retirement Savings Plan	12 Months Ended
Retirement Savings Plan	Dec. 31, 2016
Retirement Savings Plan [Abstract]
Retirement Savings Plan	Note 12: Retirement Savings Plan The Company has a 401(k) profit sharing plan covering substantially all full-time employees. Employee contributions are limited to the maximum amount allowable by the Internal Revenue Code. The Company matched $0.5 million, $0.4 million, and $0.5 million of employee contributions in 2016, 2015, and 2014 and made no discretionary contributions for any of the years presented.

Quarterly Financial Data

12 Months Ended

Dec. 31, 2016

Quarterly Financial Data [Abstract]

Quarterly Financial Data

Note 13: Quarterly Financial Data (Unaudited)

Quarterly results of operations for the years ended December 31, 2016 and 2015 are summarized below (in thousands, except per share amounts):



	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
	(in thousands)
2016
Net sales	$	84,714	$	84,270	$	78,559	$	76,614
Gross profit		59,705		58,699		55,159		53,333
Income from operations		11,756		11,709		7,798		1,650
Net income		6,758		6,849		4,583		273
Basic earnings per share		0.13		0.13		0.09		0.01
Diluted earnings per share		0.13		0.13		0.09		0.01

2015
Net sales	$	72,963	$	75,706	$	72,404	$	71,914
Gross profit		50,971		51,293		50,713		50,633
Income from operations		7,195		8,438		6,666		6,927
Net income		3,659		4,490		3,761		3,786
Basic earnings per share		0.07		0.09		0.07		0.08
Diluted earnings per share		0.07		0.09		0.07		0.08

The decrease in income from operations in the fourth quarter of 2016, compared to the fourth quarter of 2015, is due to a $5.5 million of the increase in special charges related to litigation discussed in footnote 5.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2016

Summary of Significant Accounting Policies [Abstract]

Basis of Presentation

Use of Estimates

Reclassification

Cash and Cash Equivalents

Restricted Cash

Trade Receivables

Inventories



	2016		2015
	(in thousands)
Finished goods	$	61,949	$	59,503
Raw materials		2,312		2,681
Finished goods in transit		10,034		7,694
Total	$	74,295	$	69,878

Income Taxes

Revenue Recognition

Sales Return Reserve



	2016		2015		2014
	(in thousands)
Balance at beginning of year	$	2,781	$	3,292	$	2,850
Additions for sales returns		31,334		26,522		28,517
Deductions from reserve		(31,035)		(27,033)		(28,075)
Balance at end of year	$	3,080	$	2,781	$	3,292

Cost of Sales and Selling, General and Administrative Expenses

The following table illustrates the primary costs classified in each major expense category:

Cost of Sales

Cost of products sold;

Freight expenses to bring products into the Company's distribution centers;

Custom and duty expenses;

Customer shipping and handling expenses;

Physical inventory losses;

Costs incurred at distribution centers in connection with the receiving process;

Labor and overhead costs incurred to manufacture inventory

Selling, General & Administrative Expenses

All other payroll and benefit costs for retail, corporate and distribution employees;

Occupancy, utilities and maintenance costs of retail and corporate facilities;

Freight expenses to move inventory from the Company's distribution centers to the Company's stores;

Depreciation and amortization;

Advertising costs

Our largest supplier accounted for approximately 12% of our total purchases in 2016.

Stock Based Compensation

Concentration of Risk

Segments

Advertising Costs

Pre-opening Costs

Property, Plant and Equipment



	Asset life (in years)
Buildings and building improvements		40
Leasehold improvements	8	–	26
Furniture and fixtures	2	–	7
Machinery and equipment	5	–	10
Computer equipment and software	3	–	7
Vehicles		5

Internal Use Software

Leases

Self-Insurance

New Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Accounting Pronouncements Not Yet Adopted

Summary Of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2016

Summary of Significant Accounting Policies [Abstract]

Schedule of Inventories



	2016		2015
	(in thousands)
Finished goods	$	61,949	$	59,503
Raw materials		2,312		2,681
Finished goods in transit		10,034		7,694
Total	$	74,295	$	69,878

Summary of Activity in Sales Returns Reserve



	2016		2015		2014
	(in thousands)
Balance at beginning of year	$	2,781	$	3,292	$	2,850
Additions for sales returns		31,334		26,522		28,517
Deductions from reserve		(31,035)		(27,033)		(28,075)
Balance at end of year	$	3,080	$	2,781	$	3,292

Summary of Estimated Useful Lives of Property, Plant and Equipment



	Asset life (in years)
Buildings and building improvements		40
Leasehold improvements	8	–	26
Furniture and fixtures	2	–	7
Machinery and equipment	5	–	10
Computer equipment and software	3	–	7
Vehicles		5

Property, Plant and Equipment (Tables)

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Abstract]

Summary of Property, Plant and Equipment



	2016		2015
	(in thousands)
Land	$	904	$	904
Building and building improvements		21,916		21,515
Leasehold improvements		77,404		72,154
Furniture and fixtures		119,589		112,376
Machinery and equipment		26,433		24,457
Computer equipment and software		24,002		15,286
Vehicles		3,136		2,859
Construction in progress		3,543		2,199
Total property, plant and equipment		276,927		251,750
Less accumulated depreciation		(135,890)		(116,635)
Total property, plant and equipment, net	$	141,037	$	135,115

Accrued Liabilities (Tables)

12 Months Ended

Dec. 31, 2016

Accrued Liabilities [Abstract]

Schedule of Accrued Liabilities



	2016		2015
	(in thousands)
Shareholder litigation accrual	$	9,500	$	-
Customer deposits		7,742		6,026
Accrued wages and salaries		4,962		4,336
Sales return reserve		3,080		2,781
Payroll & sales taxes		2,691		3,043
Other current liabilities		5,486		3,141
Total accrued liabilities	$	33,461	$	19,327

Long-term Debt (Tables)

12 Months Ended

Dec. 31, 2016

Long-term Debt [Abstract]

Schedule of Long-Term Debt



	2016				2015
			Unamortized				Unamortized
			Debt Issuance				Debt Issuance
	Principal		Costs		Principal		Costs
	(in thousands)
Term note payable - interest at 2.27% and 2.18% at December 31, 2016 and 2015	$	17,721	$	(114)	$	47,450	$	(428)
Commercial bank credit facility		10,000		-		8,000		-
Variable interest rate bonds (0.89% and 0.35% at December 31, 2016 and 2015), which mature April 1, 2023, collateralized by buildings and equipment		805		-		900		-
Total debt obligations		28,526		(114)		56,350		(428)
Less: current portion		6,350		(64)		5,095		(351)
Debt obligations, net of current portion	$	22,176	$	(50)	$	51,255	$	(77)

Schedule of Principal Payments on Term Loans



Fiscal year
2017	$	6,350
2018		8,855
2019		2,831
2020		10,115
2021		120
Thereafter		255
Total future maturities payments	$	28,526
Less: debt issuance costs		114
Total future maturities payments, net of debt issuance costs	$	28,412

Summary of Quarterly Term Loan Principal Payments



Period
March 31, 2017 to June 30, 2017	$	1,250
September 30, 2017 to June 30, 2018		1,875
September 30, 2018 to March 31, 2020		2,500

Summary of Minimum Lease Payments Under Capital Lease Obligations



Fiscal year
2017	$	211
2018		215
2019		216
2020		216
2021		215
Thereafter		90
Less: amounts representing interest		(366)
Present value of future minimum lease payments		797
Less: current portion		100
Capital lease obligations, net of current portion	$	697

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6479336&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=64930739&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

+ Details

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies [Abstract]

Schedule of Annual Minimum Rentals Under Non-Cancelable Operating Leases



Fiscal year
2017	$	29,722
2018		30,358
2019		30,958
2020		30,833
2021		30,630
Thereafter		368,716
Total future maturities payments	$	521,217

Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2016

Fair Value of Financial Instruments [Abstract]

Summary of Fair Value of Financial Assets Measured on a Recurring Basis



	Pricing	Fair Value at
	Category	December 31, 2016		December 31, 2015
Assets	(in thousands)
Cash and cash equivalents	Level 1	$	6,067	$	10,330
Restricted cash	Level 1		3,000		219
Long-term restricted cash	Level 1		3,881		-

Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

Schedule of Earnings Per Share



	2016		2015		2014
	(in thousands, except share and per share data)
Net income	$	18,463	$	15,696	$	10,547
Weighted-average shares outstanding - basic		51,418,600		51,161,059		51,015,354
Dilutive common stock equivalents		461,513		143,923		14,436
Weighted-average shares outstanding - diluted		51,880,113		51,304,982		51,029,790
Basic net income per share	$	0.36	$	0.31	$	0.21
Diluted net income per share	$	0.36	$	0.31	$	0.21
Antidilutive Shares		373,255		568,014		1,042,579

Equity Incentive Plans (Tables)

12 Months Ended

Dec. 31, 2016

Equity Incentive Plans [Abstract]

Summary of Assumptions Used in Option Valuation



	2016			2015			2014
Risk-free interest rate	1.15%	–	1.52%	0.90%	–	1.07%	0.78%	–	1.05%
Expected life (in years)	5	–	7		5			5
Expected volatility	52%	–	53%	52%	–	53%		52%

Summary of Stock Option Activity



	Shares	Weighted Average Exercise Price		Weighted Avg Grant Date Fair Value		Weighted Avg Remaining Contractual Term (Years)	Aggregate Intrinsic Value (in thousands)
Balance, January 1, 2014	2,274,917	$	14.02	$	6.92	8.9	$	13,051
Granted	768,750	$	11.47	$	5.13
Exercised	(15,917)	$	10.00	$	5.19
Cancelled/Forfeited	(556,750)	$	13.93	$	6.60
Balance, December 31, 2014	2,471,000	$	13.27	$	6.45	7.6	$	38
Granted	482,671	$	10.91	$	5.00
Exercised	(69,932)	$	10.00	$	5.17
Cancelled/Forfeited	(258,794)	$	11.81	$	5.61
Balance, December 31, 2015	2,624,945	$	13.07	$	6.30	6.5	$	12,757
Granted	443,500	$	15.43	$	7.37
Exercised	(95,786)	$	10.47	$	5.40
Cancelled/Forfeited	(612,118)	$	12.33	$	5.68
Balance, December 31, 2016	2,360,541	$	13.84	$	6.71	5.7	$	15,971
Exercisable at December 31, 2016	1,358,430	$	13.60	$	6.79	5.7
Vested and expected to vest, December 31, 2016	2,660,291	$	13.40	$	6.46	5.7	$	18,834

Summary of Stock Options Outstanding



Range of Exercise Price				Weighted Average
			Options	Exercise Price		Remaining Contractual Life-Years
$5.00	to	$10.00	1,090,007	$	9.66	5.47
$10.01	to	$15.00	648,034	$	12.42	4.97
$15.01	to	$20.00	320,500	$	17.76	7.27
$20.01	to	$25.00	64,000	$	23.14	6.73
$25.01	to	$30.00	238,000	$	29.02	6.72

Summary of Restricted Stock Activity



	Shares	Weighted Avg Grant Date Fair Value
Nonvested, December 31, 2013	230,896	$	15.84
Granted	76,066	$	11.93
Vested	(117,727)	$	15.19
Forfeited	-	$	-
Nonvested, December 31, 2014	189,235	$	14.67
Granted	54,036	$	12.45
Vested	(164,235)	$	12.50
Forfeited	-	$	-
Nonvested, December 31, 2015	79,036	$	17.67
Granted	73,384	$	17.60
Vested	(66,536)	$	15.55
Forfeited	-	$	-
Nonvested, December 31, 2016	85,884	$	19.25

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Taxes [Abstract]

Schedule of Components of Provision for Income Taxes



	Years Ended December 31,
	2016		2015		2014
	(in thousands)
Current
Federal	$	10,831	$	3,691	$	4,851
State		2,560		1,886		1,351
International		30		-		-
Total Current		13,421		5,577		6,202
Deferred
Federal		(363)		5,252		1,076
State		(182)		247		104
Total Deferred		(545)		5,499		1,180
Total Provision for Income Taxes	$	12,876	$	11,076	$	7,382

Schedule of Effective Income Tax Rate Reconciliation



	2016		2015		2014
Federal statutory rate	35.0	%	35.0	%	35.0	%
State income taxes, net of the federal tax benefit	4.4		4.4		5.0
Stock based compensation	1.6		1.4		1.5
Other	0.1		0.6		(0.3)
Effective tax rate	41.1	%	41.4	%	41.2	%

Schedule of Components of Net Deferred Income Taxes



	2016		2015
	(in thousands)
Deferred income tax assets:
Section 743 carryforward	$	27,251	$	29,843
Leasehold improvement reimbursements		5,299		5,592
Inventory		1,707		1,606
Deferred rent		6,794		5,549
Stock based compensation		3,112		2,488
Other		3,064		1,023
Total deferred income tax assets	$	47,227	$	46,101

Deferred income tax liabilities
Depreciation		25,836		25,255
Total deferred income tax liabilities		25,836		25,255
Net deferred income tax assets	$	21,391	$	20,846

Quarterly Financial Data (Tables)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Data [Abstract]

Schedule of Quarterly Results of Operations



	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
	(in thousands)
2016
Net sales	$	84,714	$	84,270	$	78,559	$	76,614
Gross profit		59,705		58,699		55,159		53,333
Income from operations		11,756		11,709		7,798		1,650
Net income		6,758		6,849		4,583		273
Basic earnings per share		0.13		0.13		0.09		0.01
Diluted earnings per share		0.13		0.13		0.09		0.01

2015
Net sales	$	72,963	$	75,706	$	72,404	$	71,914
Gross profit		50,971		51,293		50,713		50,633
Income from operations		7,195		8,438		6,666		6,927
Net income		3,659		4,490		3,761		3,786
Basic earnings per share		0.07		0.09		0.07		0.08
Diluted earnings per share		0.07		0.09		0.07		0.08

Summary of Significant Accounting Policies (Narrative) (Details)	3 Months Ended	12 Months Ended
	Sep. 30, 2016 USD ($)	Dec. 31, 2016 USD ($) ft² store state item	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)
Summary Of Significant Accunting Policies [Line Items]
Number of products \| item		4,000
Number of stores \| store		123
Number of states in which entity operates \| state		31
Cash and cash equivalents		$ 6,067,000	$ 10,330,000	$ 5,759,000	$ 1,761,000
Due from banks		3,000,000	1,800,000
Allowance for doubtful accounts		70,000	113,500
Inventory, provision for shrinkage and other		163,000	337,000
Advertising costs		6,900,000	6,500,000	5,700,000
Pre-opening costs		900,000	500,000	1,500,000
Capitalized software		400,000	900,000
Capitalized software, amortization expense		500,000	500,000	300,000
Self-insurance liability, current		700,000	500,000
Workers' compensation liability, current		1,200,000	600,000
Other current assets, net		8,645,000	3,557,000
Other assets		2,763,000	1,793,000
Current portion of long-term debt		6,286,000	4,744,000
Long-term debt, net		22,126,000	51,178,000
Cumulative-effect adjustment			151,000
Additional paid-in-capital		185,998,000	180,192,000
Stock based compensation		4,333,000	5,545,000	$ 4,617,000
Restricted cash		3,000,000	219,000
Long-term restricted cash		$ 3,881,000
Total Purchases [Member]
Summary Of Significant Accunting Policies [Line Items]
Concentration risk percentage		12.00%
Workers' Compensation Standby Letters Of Credit [Member]
Summary Of Significant Accunting Policies [Line Items]
Line of credit outstanding		$ 1,100,000	900,000
Accounting Standards Update 2015-03 [Member] \| Adjustment [Member]
Summary Of Significant Accunting Policies [Line Items]
Other current assets, net			(100,000)
Other assets			(300,000)
Current portion of long-term debt			(300,000)
Long-term debt, net			(100,000)
Accounting Standards Update 2016-09 [Member] \| Adjustment [Member]
Summary Of Significant Accunting Policies [Line Items]
Cumulative-effect adjustment			$ (500,000)
Additional paid-in-capital	$ (100,000)
Stock based compensation	$ (100,000)
Average [Member]
Summary Of Significant Accunting Policies [Line Items]
Area of store \| ft²		21,100
Minimum [Member]
Summary Of Significant Accunting Policies [Line Items]
Capitalized software, estimated useful life		3 years
Maximum [Member]
Summary Of Significant Accunting Policies [Line Items]
Capitalized software, estimated useful life		5 years

Summary of Significant Accounting Policies (Schedule of Retrospective Application Of Change in Accounting Principle) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other current assets, net	$ 8,645	$ 3,557
Total Current Assets	96,201	87,253
Other assets	2,763	1,793
Total Assets	265,273	245,007
Current portion of long-term debt	6,286	4,744
Long-term debt, net	22,126	51,178
Total Liabilities	126,374	129,806
Total Liabilities and Stockholders' Equity	$ 265,273	$ 245,007

Summary of Significant Accounting Policies (Schedule of Inventories) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Summary of Significant Accounting Policies [Abstract]
Finished goods	$ 61,949	$ 59,503
Raw materials	2,312	2,681
Finished goods in transit	10,034	7,694
Total	$ 74,295	$ 69,878

Summary of Significant Accounting Policies (Summary of Activity In Sales Returns Reserve) (Details) - Sales Returns Reserve [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at beginning of year	$ 2,781	$ 3,292	$ 2,850
Additions for sales returns	31,334	26,522	28,517
Deductions from reserve	(31,035)	(27,033)	(28,075)
Balance at end of year	$ 3,080	$ 2,781	$ 3,292

Summary of Significant Accounting Policies (Summary of Estimated Useful Lives of Property, Plant and Equipment) (Details)	12 Months Ended
	Dec. 31, 2016
Buildings and Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Asset life (in years)	40 years
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Asset life (in years)	5 years
Minimum [Member] \| Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Asset life (in years)	8 years
Minimum [Member] \| Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Asset life (in years)	2 years
Minimum [Member] \| Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Asset life (in years)	5 years
Minimum [Member] \| Computer Equipment And Software [Member]
Property, Plant and Equipment [Line Items]
Asset life (in years)	3 years
Maximum [Member] \| Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Asset life (in years)	26 years
Maximum [Member] \| Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Asset life (in years)	7 years
Maximum [Member] \| Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Asset life (in years)	10 years
Maximum [Member] \| Computer Equipment And Software [Member]
Property, Plant and Equipment [Line Items]
Asset life (in years)	7 years

Property, Plant and Equipment (Narrative) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Abstract]
Depreciation & amortization	$ 23,042,000	$ 22,236,000	$ 19,925,000
Asset impairment charges	$ 0	$ 0	$ 0

Property, Plant and Equipment (Summary of Property, Plant and Equipment) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	$ 276,927	$ 251,750
Less accumulated depreciation	(135,890)	(116,635)
Total property, plant and equipment, net	141,037	135,115
Land [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	904	904
Buildings and Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	21,916	21,515
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	77,404	72,154
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	119,589	112,376
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	26,433	24,457
Computer Equipment And Software [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	24,002	15,286
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	3,136	2,859
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	$ 3,543	$ 2,199

Accrued Liabilities (Schedule of Other Accrued Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Accrued Liabilities [Abstract]
Shareholder litigation accrual	$ 9,500
Customer deposits	7,742	$ 6,026
Accrued wages and salaries	4,962	4,336
Sales return reserve	3,080	2,781
Payroll & sales taxes	2,691	3,043
Other current liabilities	5,486	3,141
Total accrued liabilities	$ 33,461	$ 19,327

Long-term Debt (Narrative) (Details) - USD ($) $ in Thousands		12 Months Ended
	Jun. 02, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Advances on line of credit		$ 10,000	$ 88,000	$ 23,000
Debt issuance cost writeoff			194
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Accrued interest expense, current		$ 0	$ 100
Term Loan [Member]
Debt Instrument [Line Items]
Credit facility effective interest rate		2.27%	2.18%
Previous Credit Agreement [Member]
Debt Instrument [Line Items]
Repayments of long-term debt	$ 73,000
Accrued and unpaid interest and fees paid	200
Debt issuance cost writeoff	200
Previous Credit Agreement [Member] \| Debt Principal [Member]
Debt Instrument [Line Items]
Repayments of long-term debt	72,800
Credit Agreement [Member]
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity		$ 125,000
Credit facility term		5 years
Debt issuance costs	1,000
Credit Agreement [Member] \| London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Credit facility effective interest rate		2.27%
Credit Agreement [Member] \| Federal Funds Rate [Member]
Debt Instrument [Line Items]
Credit facility, spread on variable interest rate		0.50%
Credit Agreement [Member] \| Eurodollar [Member]
Debt Instrument [Line Items]
Credit facility, spread on variable interest rate		1.00%
Credit Agreement [Member] \| Base Rate [Member]
Debt Instrument [Line Items]
Credit facility effective interest rate		4.25%
Credit Agreement [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Credit facility, interest rate based on leverage ratio		0.50%
Credit Agreement [Member] \| Minimum [Member] \| London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Credit facility, spread on variable interest rate		1.50%
Credit Agreement [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Credit facility, interest rate based on leverage ratio		1.00%
Credit Agreement [Member] \| Maximum [Member] \| London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Credit facility, spread on variable interest rate		2.00%
Credit Agreement [Member] \| Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity		$ 75,000
Line of credit outstanding		10,000
Credit facility, available borrowing capacity		65,000
Advances on line of credit	23,000
Credit Agreement [Member] \| Term Loan [Member]
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity		$ 50,000
Credit facility term		5 years
Loan payable		$ 17,700
Proceeds from term loan	$ 50,000

Long-term Debt (Schedule of Long-Term Debt) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Total future maturities payments	$ 28,526	$ 56,350
Unamortized Debt Issuance Costs, Total debt obligations	(114)	(428)
Principal, Less: current portion	6,350	5,095
Unamortized Debt Issuance Costs, Less: current portion	(64)	(351)
Principal, Debt obligations, net of current poriton	22,176	51,255
Unamortized Debt Issuance Costs, Debt obligations, net of current portion	(50)	(77)
Term Loan [Member]
Debt Instrument [Line Items]
Total future maturities payments	17,721	47,450
Unamortized Debt Issuance Costs, Total debt obligations	$ (114)	$ (428)
Effective interest rate	2.27%	2.18%
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Total future maturities payments	$ 10,000	$ 8,000
Variable Rate Debt [Member]
Debt Instrument [Line Items]
Total future maturities payments	$ 805	$ 900
Effective interest rate	0.89%	0.35%

Long-term Debt (Schedule of Principal Payments on Term Loans) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Long-term Debt [Abstract]
2017	$ 6,350
2018	8,855
2019	2,831
2020	10,115
2021	120
Thereafter	255
Total future maturities payments	28,526	$ 56,350
Less: debt issuance costs	114	$ 428
Total future maturities payments, net of debt issuance costs	$ 28,412

Long-Term Debt (Summary of Quarterly Term Loan Principal Payments) (Details) - Credit Agreement [Member] $ in Thousands	12 Months Ended
	Dec. 31, 2016 USD ($)
March 31, 2017 to June 30, 2017 [Member]
Debt Instrument [Line Items]
Quarterly principal payments	$ 1,250
September 30, 2017 to June 30, 2018 [Member]
Debt Instrument [Line Items]
Quarterly principal payments	1,875
September 30, 2018 to March 31, 2020 [Member]
Debt Instrument [Line Items]
Quarterly principal payments	$ 2,500

Long-Term Debt (Summary of Minimum Lease Payments Under Capital Lease Obligations) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Long-term Debt [Abstract]
2017	$ 211
2018	215
2019	216
2020	216
2021	215
Thereafter	90
Less: amounts representing interest	(366)
Present value of future minimum lease payments	797
Less: current portion	100
Capital lease obligations, net of current portion	$ 697	$ 797

Commitments and Contingencies (Narrative) (Details) $ in Millions	2 Months Ended	3 Months Ended	8 Months Ended	12 Months Ended
	Feb. 24, 2017 USD ($)	Dec. 31, 2016 USD ($) lawsuit	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($) plaintiff defendant lawsuit	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Loss Contingencies [Line Items]
Rent expense \| $				$ 29.7	$ 27.2	$ 25.2
Settlement charge \| $		$ 5.5
Beaver County Employees' Retirement Fund, et al v. Tile Shop Holdings, Inc. [Member]
Loss Contingencies [Line Items]
Number of plaintiffs \| plaintiff				3
Settlement charge \| $				$ 5.0
Settlement, other current liability \| $		9.5		9.5
Settlement, other current assets \| $		$ 4.5		$ 4.5
Beaver County Employees' Retirement Fund, et al v. Tile Shop Holdings, Inc. [Member] \| Scenario, Forecast [Member]
Loss Contingencies [Line Items]
Settlement paid \| $			$ 5.0
Settlement amountt paid by insurance policy \| $			$ 4.5
Beaver County Employees' Retirement Fund, et al v. Tile Shop Holdings, Inc. [Member] \| Subsequent Event [Member]
Loss Contingencies [Line Items]
Settlement amount \| $	$ 9.5
Beaver County Employees' Retirement Fund, et al v. Tile Shop Holdings, Inc. [Member] \| Former Executive Officers [Member]
Loss Contingencies [Line Items]
Number of defendants				2
Beaver County Employees' Retirement Fund, et al v. Tile Shop Holdings, Inc. [Member] \| Directors [Member]
Loss Contingencies [Line Items]
Number of defendants				3
Beaver County Employees' Retirement Fund, et al v. Tile Shop Holdings, Inc. [Member] \| Former Directors [Member]
Loss Contingencies [Line Items]
Number of defendants				2
Beaver County Employees' Retirement Fund, et al v. Tile Shop Holdings, Inc. [Member] \| Underwriting Firms [Member]
Loss Contingencies [Line Items]
Number of defendants				6
Tile Shop Holdings, Inc. Stockholder Derivative Litigation [Member]
Loss Contingencies [Line Items]
Number of plaintiffs \| plaintiff				3
Number of actions \| lawsuit		3		3
Number of actions consolidated \| lawsuit				2
Tile Shop Holdings, Inc. Stockholder Derivative Litigation, 2015 [Member] \| Directors [Member]
Loss Contingencies [Line Items]
Number of defendants				4
Tile Shop Holdings, Inc. Stockholder Derivative Litigation, 2015 [Member] \| Former Directors [Member]
Loss Contingencies [Line Items]
Number of defendants				2
Tile Shop Holdings, Inc. Stockholder Derivative Litigation, 2015 [Member] \| Former Employee [Member]
Loss Contingencies [Line Items]
Number of defendants				1
Tile Shop Holdings, Inc. Stockholder Derivative Litigation, 2016 [Member] \| Former Executive Officers [Member]
Loss Contingencies [Line Items]
Number of defendants				1
Tile Shop Holdings, Inc. Stockholder Derivative Litigation, 2016 [Member] \| Directors [Member]
Loss Contingencies [Line Items]
Number of defendants				7
Tile Shop Holdings, Inc. Stockholder Derivative Litigation, 2016 [Member] \| Former Employee [Member]
Loss Contingencies [Line Items]
Number of defendants				1

Commitments and Contingencies (Schedule of Annual Minimum Rentals Under Non-Cancelable Operating Leases) (Details) $ in Thousands	Dec. 31, 2016 USD ($)
Commitments and Contingencies [Abstract]
2017	$ 29,722
2018	30,358
2019	30,958
2020	30,833
2021	30,630
Thereafter	368,716
Total future maturities payments	$ 521,217

Fair Value of Financial Instruments (Summary of Fair Value of Financial Assets Measured on a Recurring Basis) (Details) - Level 1 [Member] - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	$ 6,067	$ 10,330
Restricted cash	3,000	$ 219
Long-term restricted cash	$ 3,881

Related Party Transactions (Narrative) (Details) - Director Of Information Technology [Member] - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Related Party Transaction [Line Items]
Grant date fair value of options		$ 44,000
Base Salary And Cash Bonus [Member]
Related Party Transaction [Line Items]
Amount of related party transaction	$ 140,000	$ 127,000	$ 104,000

Earnings Per Share (Schedule of Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Earnings Per Share [Abstract]
Net income	$ 273	$ 4,583	$ 6,849	$ 6,758	$ 3,786	$ 3,761	$ 4,490	$ 3,659	$ 18,463	$ 15,696	$ 10,547
Weighted-average shares outstanding - basic									51,418,600	51,161,059	51,015,354
Dilutive common stock equivalents									461,513	143,923	14,436
Weighted-average shares outstanding - diluted									51,880,113	51,304,982	51,029,790
Basic net income per share	$ 0.01	$ 0.09	$ 0.13	$ 0.13	$ 0.08	$ 0.07	$ 0.09	$ 0.07	$ 0.36	$ 0.31	$ 0.21
Diluted net income per share	$ 0.01	$ 0.09	$ 0.13	$ 0.13	$ 0.08	$ 0.07	$ 0.09	$ 0.07	$ 0.36	$ 0.31	$ 0.21
Antidilutive Shares									373,255	568,014	1,042,579

Equity Incentive Plans (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
2012 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for issuance					2,500,000
Additional shares authorized				2,500,000
Additional shares authorized as a percentage of outstanding stock				6.00%
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend yield		0.00%	0.00%
Weighted average fair value of options granted	$ 7.37	$ 5.00	$ 5.13
Stock-based compensation expense	$ 3.2	$ 3.6	$ 2.8
Compensation cost not yet recognized	$ 5.3
Compensation cost not yet recognized, weighted average period for recognition	3 years 3 months 18 days
Stock options outstanding	2,360,541	2,624,945	2,471,000	2,274,917
Stock options outstanding, weighted average exercise price	$ 13.84	$ 13.07	$ 13.27	$ 14.02
Intrinsic value of options exercised	$ 0.9	$ 0.4
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	1.1	$ 1.9	$ 1.8
Compensation cost not yet recognized	1.2
Fair value of grants in period	1.3
Total fair value of shares vested	$ 0.9
Share price	$ 19.55
Outstanding and expected to vest shares	85,884	79,036	189,235	230,896
Intrinsic value of outstanding shares expected to vest	$ 1.7

Equity Incentive Plans (Summary of Assumptions Used in Option Valuation) (Details) - Stock Options [Member]	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life (in years)		5 years	5 years
Expected volatility			52.00%
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate	1.15%	0.90%	0.78%
Expected life (in years)	5 years
Expected volatility	52.00%	52.00%
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate	1.52%	1.07%	1.05%
Expected life (in years)	7 years
Expected volatility	53.00%	53.00%

Equity Incentive Plans (Summary of Stock Option Activity) (Details) - Stock Options [Member] - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Beginning Balance	2,624,945	2,471,000	2,274,917
Shares, Granted	443,500	482,671	768,750
Shares, Exercised	(95,786)	(69,932)	(15,917)
Shares, Cancelled/Forfeited	(612,118)	(258,794)	(556,750)
Shares, Ending Balance	2,360,541	2,624,945	2,471,000	2,274,917
Shares, Exercisable	1,358,430
Shares, Vested and expected to vest	2,660,291
Weighted Average Exercise Price, Beginning Balance	$ 13.07	$ 13.27	$ 14.02
Weighted Average Exercise Price, Granted	15.43	10.91	11.47
Weighted Average Exercise Price, Exercises	10.47	10.00	10.00
Weighted Average Exercise Price, Cancelled/Forfeited	12.33	11.81	13.93
Weighted Average Exercise Price, Ending Balance	13.84	13.07	13.27	$ 14.02
Weighted Average Exercise Price, Exercisable	13.60
Weighted Average Exercise Price, Vested and expected to vest	13.40
Weighted Avg Grant Date Fair Value, Beginning Balance	6.30	6.45	6.92
Weighted Avg Grant Date Fair Value, Granted	7.37	5.00	5.13
Weighted Avg Grant Date Fair Value, Exercised	5.40	5.17	5.19
Weighted Avg Grant Date Fair Value, Cancelled/Forfeited	5.68	5.61	6.60
Weighted Avg Grant Date Fair Value, Ending Balance	$ 6.71	$ 6.30	$ 6.45	$ 6.92
Weighted Avg Grant Date Fair Value, Exercisable	6.79
Weighted Avg Grant Date Fair Value, Vested and expected to vest	$ 6.46
Weighted Avg Remaining Contractual Term (Years), Options Outstanding	5 years 8 months 12 days	6 years 6 months	7 years 7 months 6 days	8 years 10 months 24 days
Weighted Avg Remaining Contractual Term (Years), Exercisable	5 years 8 months 12 days
Weighted Avg Remaining Contractual Term (Years), Vested and expected to vest	5 years 8 months 12 days
Aggregate Intrinsic Value, Share Outstanding	$ 15,971	$ 12,757	$ 38	$ 13,051
Aggregate Intrinsic Value, Vested and expected to vest	$ 18,834

Equity Incentive Plans (Summary of Stock Options Outstanding) (Details) - Stock Options [Member] - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options	2,360,541	2,624,945	2,471,000	2,274,917
Exercise Price	$ 13.84	$ 13.07	$ 13.27	$ 14.02
Remaining Contractual Life-Years	5 years 8 months 12 days	6 years 6 months	7 years 7 months 6 days	8 years 10 months 24 days
$5.00 to $10.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Price, Lower Limit	$ 5.00
Range of Exercise Price, Upper Limit	$ 10.00
Options	1,090,007
Exercise Price	$ 9.66
Remaining Contractual Life-Years	5 years 5 months 19 days
$10.01 to $15.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Price, Lower Limit	$ 10.01
Range of Exercise Price, Upper Limit	$ 15.00
Options	648,034
Exercise Price	$ 12.42
Remaining Contractual Life-Years	4 years 11 months 19 days
$15.01 to $20.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Price, Lower Limit	$ 15.01
Range of Exercise Price, Upper Limit	$ 20.00
Options	320,500
Exercise Price	$ 17.76
Remaining Contractual Life-Years	7 years 3 months 7 days
$20.01 to $25.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Price, Lower Limit	$ 20.01
Range of Exercise Price, Upper Limit	$ 25.00
Options	64,000
Exercise Price	$ 23.14
Remaining Contractual Life-Years	6 years 8 months 23 days
$25.01 to $30.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Price, Lower Limit	$ 25.01
Range of Exercise Price, Upper Limit	$ 30.00
Options	238,000
Exercise Price	$ 29.02
Remaining Contractual Life-Years	6 years 8 months 19 days

Equity Incentive Plans (Summary of Restricted Stock Activity) (Details) - Restricted Stock [Member] - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Nonvested, Beginning Balance	79,036	189,235	230,896
Shares, Granted	73,384	54,036	76,066
Shares, Vested	(66,536)	(164,235)	(117,727)
Shares, Forfeited
Shares, Nonvested, Ending Balance	85,884	79,036	189,235
Weighted Avg Grant Date Fair Value, Nonvested, Beginning Balance	$ 17.67	$ 14.67	$ 15.84
Weighted Avg Grant Date Fair Value, Granted	17.60	12.45	11.93
Weighted Avg Grant Date Fair Value, Vested	15.55	12.50	15.19
Weighted Avg Grant Date Fair Value, Forfeited
Weighted Avg Grant Date Fair Value, Nonvested, Ending Balance	$ 19.25	$ 17.67	$ 14.67

Income Taxes (Schedule of Components of Net Deferred Income Taxes) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Taxes [Abstract]
Current, Federal	$ 10,831	$ 3,691	$ 4,851
Current, State	2,560	1,886	1,351
International	30
Total Current	13,421	5,577	6,202
Deferred, Federal	(363)	5,252	1,076
Deferred, State	(182)	247	104
Total Deferred	(545)	5,499	1,180
Total Provision for Income Taxes	$ 12,876	$ 11,076	$ 7,382

Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Taxes [Abstract]
Federal statutory rate	35.00%	35.00%	35.00%
State income taxes, net of the federal tax benefit	4.40%	4.40%	5.00%
Stock based compensation	1.60%	1.40%	1.50%
Other	0.10%	0.60%	(0.30%)
Effective tax rate	41.10%	41.40%	41.20%

Income Taxes (Schedule of Components of Net Deferred Income Taxes) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Income Taxes [Abstract]
Section 743 carryforward	$ 27,251	$ 29,843
Leasehold improvement reimbursements	5,299	5,592
Inventory	1,707	1,606
Deferred rent	6,794	5,549
Stock based compensation	3,112	2,488
Other	3,064	1,023
Total deferred income tax assets	47,227	46,101
Depreciation	25,836	25,255
Total deferred income tax liabilities	25,836	25,255
Net deferred income tax assets	$ 21,391	$ 20,846

New Market Tax Credit (Narrative) (Details) - USD ($) $ in Thousands	1 Months Ended		12 Months Ended
	Dec. 31, 2016	Jul. 31, 2013	Dec. 31, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Restricted cash	$ 6,900		$ 6,900
Restricted cash	3,000		3,000	$ 219
Long-term restricted cash	3,881		3,881
Contribution liability	2,400		2,400
Contribution liability, current	700		700
Contribution liability, noncurrent	1,700		1,700
Chase and US Bank [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Contribution to affiliate		$ 5,600
Twain Investment Fund 192 [Member] \| U.S. Bank Community [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Contribution to affiliate	3,100
Twain Investment Fund 192 [Member] \| Tile Shop Holdings [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Syndicate costs	1,200		$ 1,200
Twain Investment Fund 192 [Member] \| Tile Shop Lending [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan amount	$ 6,700
Loan interest rate	1.37%
Tile Shop Investment Fund [Member] \| Tile Shop Holdings [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Contribution to affiliate		4,400
Syndicate costs		1,200
Contribution liability compliance period			7 years
Tile Shop Investment Fund [Member] \| Tile Shop Lending [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan amount		13,500
U.S. Bank Community [Member] \| Oklahoma [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing agreement project cost	$ 9,200		$ 9,200
Chase and US Bank [Member] \| Oklahoma [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing agreement project cost		$ 19,100

Retirement Savings Plan (Narrative) (Details) - USD ($)	12 Months Ended			36 Months Ended
Retirement Savings Plan (Narrative) (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2016
Retirement Savings Plan [Abstract]
Matching contribution amount	$ 500,000	$ 400,000	$ 500,000
Discretionary contribution amount				$ 0

Quarterly Financial Data (Schedule of Quarterly Results of Operations) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Quarterly Financial Data [Abstract]
Net sales	$ 76,614	$ 78,559	$ 84,270	$ 84,714	$ 71,914	$ 72,404	$ 75,706	$ 72,963	$ 324,157	$ 292,987	$ 257,192
Gross profit	53,333	55,159	58,699	59,705	50,633	50,713	51,293	50,971	226,896	203,610	178,892
Income from operations	1,650	7,798	11,709	11,756	6,927	6,666	8,438	7,195	32,913	29,226	21,576
Net income	$ 273	$ 4,583	$ 6,849	$ 6,758	$ 3,786	$ 3,761	$ 4,490	$ 3,659	$ 18,463	$ 15,696	$ 10,547
Basic earnings per share	$ 0.01	$ 0.09	$ 0.13	$ 0.13	$ 0.08	$ 0.07	$ 0.09	$ 0.07	$ 0.36	$ 0.31	$ 0.21
Diluted earnings per share	$ 0.01	$ 0.09	$ 0.13	$ 0.13	$ 0.08	$ 0.07	$ 0.09	$ 0.07	$ 0.36	$ 0.31	$ 0.21
Settlement charge	$ 5,500

Subsequent Event (Narrative) (Details) - Subsequent Event [Member]	Feb. 14, 2017 $ / shares
Subsequent Event [Line Items]
Dividends payable, date declared	Feb. 14, 2017
Dividends payable, amount per share	$ 0.05
Dividends payable, date of record	Mar. 14, 2017
Dividends payable, date to be paid	Mar. 24, 2017

Subsequent Event	12 Months Ended
Subsequent Event	Dec. 31, 2016
Subsequent Event [Abstract]
Subsequent Event	Note 14: Subsequent Event On February 14, 2017, the Company declared a $0.05 dividend to stockholders of record as of the close of business on March 14, 2017. The dividend will be paid on March 24, 2017.

Income Taxes (Narrative) (Details) $ in Millions	Dec. 31, 2016 USD ($)
Income Taxes [Abstract]
Deferred income taxes on undistributed foreign earnings	$ 0.5