Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 29, 2019 | Oct. 25, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Period End Date | Sep. 29, 2019 | |
Entity File Number | 001-33994 | |
Entity Registrant Name | INTERFACE INC | |
Entity Incorporation, State or Country Code | GA | |
Entity Tax Identification Number | 58-1451243 | |
Entity Address, Address Line One | 1280 West Peachtree Street | |
Entity Address, City or Town | Atlanta | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30309 | |
City Area Code | 770 | |
Local Phone Number | 437-6800 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Document Quarterly Report | true | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock, $0.10 Par Value Per Share | |
Trading Symbol | TILE | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 58,418,844 | |
Entity Central Index Key | 0000715787 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-29 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2019 | |
Document Transition Report | false |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Sep. 29, 2019 | Dec. 30, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 85,212 | $ 80,989 |
Accounts receivable, net | 176,705 | 179,004 |
Inventories, net | 265,101 | 258,657 |
Prepaid expenses and other current assets | 37,771 | 40,229 |
Total current assets | 564,789 | 558,879 |
Property and equipment, net | 309,972 | 292,888 |
Operating lease right-of-use assets | 110,051 | 0 |
Deferred tax asset | 16,805 | 15,601 |
Goodwill and intangibles, net | 343,073 | 343,542 |
Other assets | 79,847 | 73,734 |
Total assets | 1,424,537 | 1,284,644 |
Current liabilities | ||
Accounts payable | 72,505 | 66,301 |
Accrued expenses | 134,930 | 125,971 |
Current portion of operating lease liabilities | 15,780 | 0 |
Current portion of long-term debt | 31,757 | 31,315 |
Total current liabilities | 254,972 | 223,587 |
Long-term debt | 594,581 | 587,266 |
Operating lease liabilities | 91,480 | 0 |
Deferred income taxes | 38,976 | 26,488 |
Other long-term liabilities | 87,150 | 92,640 |
Total liabilities | 1,067,159 | 929,981 |
Commitments and Contingencies | ||
Shareholders’ equity | ||
Preferred stock | 0 | 0 |
Common stock | 5,843 | 5,951 |
Additional paid-in capital | 248,524 | 270,269 |
Retained earnings | 273,421 | 222,214 |
Accumulated other comprehensive loss – foreign currency translation | (121,026) | (101,487) |
Accumulated other comprehensive (loss) income – cash flow hedge | (7,588) | 1,326 |
Accumulated other comprehensive loss – pension liability | (41,796) | (43,610) |
Total shareholders’ equity | 357,378 | 354,663 |
Total liabilities and shareholders’ equity | $ 1,424,537 | $ 1,284,644 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
NET SALES | $ 348,352 | $ 318,325 | $ 1,003,547 | $ 842,514 |
Cost of Sales | 212,590 | 218,380 | 613,797 | 539,839 |
GROSS PROFIT ON SALES | 135,762 | 99,945 | 389,750 | 302,675 |
Selling, General and Administrative Expenses | 91,414 | 84,160 | 286,123 | 230,199 |
Restructuring Charges | 672 | 0 | 672 | 0 |
OPERATING INCOME | 43,676 | 15,785 | 102,955 | 72,476 |
Interest Expense | 6,577 | 4,852 | 20,180 | 9,207 |
Other Expense | 1,015 | 1,570 | 2,333 | 5,350 |
INCOME BEFORE INCOME TAX EXPENSE | 36,084 | 9,363 | 80,442 | 57,919 |
Income Tax Expense | 9,874 | 1,191 | 17,674 | 14,061 |
NET INCOME | $ 26,210 | $ 8,172 | $ 62,768 | $ 43,858 |
Earnings Per Share - Basic (USD per share) | $ 0.45 | $ 0.14 | $ 1.06 | $ 0.74 |
Earnings Per Share - Diluted (USD per share) | $ 0.45 | $ 0.14 | $ 1.06 | $ 0.74 |
Common Shares Outstanding – Basic (in shares) | 58,433 | 59,496 | 59,117 | 59,553 |
Common Shares Outstanding – Diluted (in shares) | 58,434 | 59,536 | 59,122 | 59,594 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 26,210 | $ 8,172 | $ 62,768 | $ 43,858 |
Other Comprehensive (Loss) Income, Foreign Currency Translation Adjustment | (18,585) | 4,964 | (19,539) | (6,979) |
Other Comprehensive (Loss) Income, Cash Flow Hedge | (941) | 286 | (8,914) | 2,565 |
Other Comprehensive Income (Loss), Pension Liability Adjustment | 1,076 | (196) | 1,814 | 1,047 |
Comprehensive Income | $ 7,760 | $ 13,226 | $ 36,129 | $ 40,491 |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 29, 2019 | Sep. 30, 2018 | |
OPERATING ACTIVITIES: | ||
Net income | $ 62,768 | $ 43,858 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 33,578 | 27,067 |
Stock compensation amortization expense | 6,494 | 9,181 |
Deferred income taxes and other | (11,806) | (10,705) |
Amortization of acquired intangible assets | 4,581 | 2,414 |
Amortization of acquired inventory step-up | 0 | 17,849 |
Working capital changes: | ||
Accounts receivable | (928) | (5,540) |
Inventories | (11,809) | (27,037) |
Prepaid expenses and current assets | (4,481) | (9,398) |
Accounts payable and accrued expenses | 11,507 | 10,987 |
CASH PROVIDED BY OPERATING ACTIVITIES | 89,904 | 58,676 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (53,881) | (28,853) |
Cash paid for business, net of cash acquired | 0 | (400,697) |
Other | 85 | 531 |
CASH USED IN INVESTING ACTIVITIES | (53,796) | (429,019) |
FINANCING ACTIVITIES: | ||
Repayments of long-term debt | (65,416) | (51,403) |
Borrowing of long-term debt | 76,000 | 479,837 |
Tax withholding payments for share-based compensation | (3,278) | (1,056) |
Proceeds from issuance of common stock | 60 | 207 |
Debt issuance costs | 0 | (8,757) |
Dividends paid | (11,561) | (11,602) |
Repurchase of common stock | (25,154) | (14,485) |
Other | (808) | 0 |
CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES: | (30,157) | 392,741 |
Net cash provided by operating, investing and financing activities | 5,951 | 22,398 |
Effect of exchange rate changes on cash | (1,728) | (2,104) |
CASH AND CASH EQUIVALENTS: | ||
Net change during the period | 4,223 | 20,294 |
Balance at beginning of period | 80,989 | 87,037 |
Balance at end of period | $ 85,212 | $ 107,331 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 29, 2019 | |
Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation As contemplated by the Securities and Exchange Commission (the “Commission”) instructions to Form 10-Q, the following footnotes have been condensed and, therefore, do not contain all disclosures required in connection with annual financial statements. Reference should be made to the Company’s year-end financial statements and notes thereto contained in its Annual Report on Form 10-K for the fiscal year ended December 30, 2018 , as filed with the Commission. The financial information included in this report has been prepared by the Company, without audit. In the opinion of management, the financial information included in this report contains all adjustments necessary for a fair presentation of the results for the interim periods. Nevertheless, the results shown for interim periods are not necessarily indicative of results to be expected for the full year. The December 30, 2018 , consolidated condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States. Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued a new accounting standard regarding leases. The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months . Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company adopted the new lease standard on December 30, 2018, using the modified retrospective approach and recorded operating lease right-of-use assets and operating lease liabilities for approximately $115 million respectively, with no cumulative-effect adjustment to retained earnings. The Company elected to apply the practical expedients allowed by the standard, which resulted in the Company not having to reassess whether expired or existing contracts contained a lease as well as retaining the historical classification of our leases. The Company also elected the hindsight practical expedient in evaluating lessee options and elected to combine lease and non-lease components in calculating the right-of-use asset and lease liability for all leases, except data center assets. See Note 8 entitled “Leases” for additional information. In February 2018, the FASB issued Accounting Standard Update (“ASU”) 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” to address a narrow-scope financial reporting issue that arose as a consequence of the U.S. Tax Cuts and Jobs Act. Existing guidance requires that deferred tax liabilities and assets be adjusted for a change in tax laws or rates with the effect included in income from continuing operations in the reporting period that includes the enactment date. That guidance is applicable even in situations in which the related income tax effects of items in accumulated other comprehensive income were originally recognized in other comprehensive income (rather than in net income), such as amounts related to benefit plans and hedging activity. As a result, the tax effects of items within accumulated other comprehensive income do not reflect the appropriate tax rate (the difference is referred to as stranded tax effects). The new guidance allows for a reclassification of these amounts to retained earnings, thereby eliminating these stranded tax effects. The new guidance is effective for interim and annual periods beginning after December 15, 2018. The adoption of this standard did not have a material effect on the Company’s consolidated financial statements as the Company did not elect to reclassify stranded tax effects into retained earnings. In June 2018, the FASB issued ASU 2018-07, “Improvements to Nonemployee Share-Based Payment Accounting.” This standard will require that the accounting treatment for non-employee share-based payments for goods or services be consistent with current Generally Accepted Accounting Principles (“GAAP”) for employee share-based payments, including measurement of awards at grant-date fair value and the application of probability to evaluate performance conditions. This standard will also eliminate the current GAAP requirement to reassess the classification of non-employee share-based payments awards upon vesting. The new guidance is effective for interim and annual periods beginning after December 15, 2018. The adoption of this standard did not have a material effect on the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In December 2017, the FASB issued ASU 2017-04, “Intangibles – Goodwill and Other,” that provides for the elimination of Step 2 from the goodwill impairment test. Under the new guidance, impairment charges are recognized to the extent the carrying amount of a reporting unit exceeds its fair value with certain limitations. The new guidance is effective for any annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company does not anticipate that the adoption of the new standard will have a material effect on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Changes to the Disclosure Requirements for Fair Value Measurement.” This standard eliminates the current requirement to disclose the amount or reason for transfers between level 1 and level 2 of the fair value hierarchy and the requirement to disclose the valuation methodology for level 3 fair value measurements. The standard includes additional disclosure requirements for level 3 fair value measurements, including the requirement to disclose the changes in unrealized gains and losses in other comprehensive income during the period and permits the disclosure of other relevant quantitative information for certain unobservable inputs. The new guidance is effective for interim and annual periods beginning after December 15, 2019. Early adoption is permitted. The Company does not anticipate that the adoption of the new standard will have a material effect on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, “Internal-Use Software – Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement.” This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement service contract with the guidance to capitalize implementation costs of internal use software. The ASU also requires that the costs for implementation activities during the application development phase be capitalized in a hosting arrangement service contract, and costs during the preliminary and post implementation phase are expensed. The new guidance is effective for interim and annual periods beginning after December 15, 2019. Early adoption is permitted. The Company is currently evaluating the impact of adoption of this standard, but does not anticipate that the adoption will have a material effect on its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13 “Financial Instruments -- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” This ASU requires a financial asset (including trade receivables) to be presented at the net amount expected to be collected through the use of valuation allowances for credit losses. The income statement will reflect the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. This standard is effective for annual reporting periods beginning after December 15, 2019, including interim periods within that reporting period. The new standard provides both a modified retrospective or prospective adoption method. The Company is currently evaluating the impact of adoption of this update, but does not anticipate that the adoption will have a material effect on its consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 29, 2019 | |
Revenues [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION Revenue from sales of carpet, modular resilient flooring, rubber flooring, and other flooring-related material was approximately 98% of total revenue for the nine months ended September 29, 2019 . The remaining 2% of revenue was generated from the installation of carpet and other flooring-related material. Disaggregation of Revenue For the nine months ended September 29, 2019 , revenue from the Company’s customers is broken down by geography as follows: Geography Percentage of Net Sales Americas 56.2% Europe 29.4% Asia-Pacific 14.4% Impairment Losses The Company does not recognize any impairment losses related to its revenue contracts due primarily to the short-term and straightforward nature of these contracts. |
Inventories
Inventories | 9 Months Ended |
Sep. 29, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Inventories are summarized as follows: September 29, 2019 December 30, 2018 (In thousands) Finished Goods $ 189,919 $ 180,847 Work in Process 16,949 17,762 Raw Materials 58,233 60,048 Inventories, net $ 265,101 $ 258,657 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 29, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The Company computes basic earnings per share (“EPS”) by dividing net income by the weighted average common shares outstanding, including participating securities outstanding, during the period as discussed below. Diluted EPS reflects the potential dilution beyond shares for basic EPS that could occur if securities or other contracts to issue common stock were exercised, converted into common stock or resulted in the issuance of common stock that would have shared in the Company’s earnings. The Company includes all unvested stock awards which contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid, in the number of shares outstanding in our basic and diluted EPS calculations when the inclusion of these shares would be dilutive. Unvested share-based awards of restricted stock are paid dividends equally with all other shares of common stock. As a result, the Company includes all outstanding restricted stock awards in the calculation of basic and diluted EPS. Distributed earnings include common stock dividends and dividends earned on unvested share-based payment awards. Undistributed earnings represent earnings that were available for distribution but were not distributed. The following tables show distributed and undistributed earnings: Three Months Ended Nine Months Ended September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 Earnings Per Share: Basic Earnings Per Share: Distributed Earnings $ 0.07 $ 0.07 $ 0.19 $ 0.20 Undistributed Earnings 0.38 0.07 0.87 0.54 Total $ 0.45 $ 0.14 $ 1.06 $ 0.74 Diluted Earnings Per Share: Distributed Earnings $ 0.07 $ 0.07 $ 0.19 $ 0.20 Undistributed Earnings 0.38 0.07 0.87 0.54 Total $ 0.45 $ 0.14 $ 1.06 $ 0.74 Basic earnings per share $ 0.45 $ 0.14 $ 1.06 $ 0.74 Diluted earnings per share $ 0.45 $ 0.14 $ 1.06 $ 0.74 The following table presents net income that was attributable to participating securities: Three Months Ended Nine Months Ended September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 (In millions) Net Income Attributable to Participating Securities $ 0.2 $ 0.1 $ 0.6 $ 0.4 The weighted average shares for basic and diluted EPS were as follows: Three Months Ended Nine Months Ended September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 (In thousands) Weighted Average Shares Outstanding 57,915 58,917 58,599 58,974 Participating Securities 518 579 518 579 Shares for Basic Earnings Per Share 58,433 59,496 59,117 59,553 Dilutive Effect of Stock Options 1 40 5 41 Shares for Diluted Earnings Per Share 58,434 59,536 59,122 59,594 For all periods presented, there were no stock options or participating securities excluded from the computation of diluted EPS. |
Long-term Debt
Long-term Debt | 9 Months Ended |
Sep. 29, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Debt | LONG-TERM DEBT Syndicated Credit Facility On August 7, 2018, the Company amended and restated its syndicated credit facility (the “Facility”) in connection with the nora Holding GmbH (“nora”) acquisition. The purpose of the amended and restated Facility was to fund the nora purchase price and related fees and expenses of the acquisition, and to increase the credit available to the Company and its subsidiaries following the closing of the nora acquisition in view of the larger enterprise. At September 29, 2019 , the amended and restated Facility provided to the Company and certain of its subsidiaries a multicurrency revolving loan and U.S. denominated and multicurrency term loans. Interest on base rate loans was charged at varying rates computed by applying a margin depending on the Company’s consolidated net leverage ratio as of the most recently completed fiscal quarter. Interest on LIBOR-based loans and fees for letters of credit were charged at varying rates computed by applying a margin over the applicable LIBOR rate, depending on the Company’s consolidated net leverage ratio as of the most recently completed fiscal quarter. In addition, the Company paid a commitment fee per annum (depending on the Company’s consolidated net leverage ratio as of the most recently completed fiscal quarter) on the unused portion of the Facility. In connection with the amended and restated Facility as discussed above, the Company recorded $8.8 million of debt issuance costs in the third quarter of 2018 associated with the new term loans that are reflected as a reduction of long-term debt in accordance with applicable accounting standards. As these fees are expensed over the life of the outstanding borrowing, the debt balance will increase by the same amount as the fees that are expensed. As of September 29, 2019 , the unamortized debt costs recorded as a reduction of long-term debt were $6.8 million . As of September 29, 2019 , the Company had outstanding $588.0 million of term loan borrowing and $45.1 million of revolving loan borrowings under the Facility, and had $2.5 million in letters of credit outstanding under the Facility. As of September 29, 2019 , the weighted average interest rate on borrowings outstanding under the Facility was 3.62% . Under the Facility, the Company is required to make quarterly amortization payments of the term loan borrowings, which commenced in the fourth quarter of 2018 . The amortization payments are due on the last day of the calendar quarter. The Company is currently in compliance with all covenants under the Facility and anticipates that it will remain in compliance with the covenants for the foreseeable future. Other Lines of Credit Subsidiaries of the Company have an aggregate of the equivalent of $9.4 million of other lines of credit available at interest rates ranging from 2.0% to 6.0% . As of September 29, 2019 , there were no borrowings outstanding under these lines of credit. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 29, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTS Interest Rate Risk Management In the third quarter of 2017 and the first quarter of 2019, the Company entered into interest rate swap transactions in notional amounts of $100 million and $150 million , respectively, to fix the variable interest rate on a portion of its term loan borrowing in order to manage a portion of its exposure to interest rate fluctuations. The Company’s objective and strategy with respect to these interest rate swaps is to protect the Company against adverse fluctuations in interest rates by reducing its exposure to variability to cash flows relating to interest payments on a portion of its outstanding debt. The Company is meeting its objective by hedging the risk of changes in its cash flows (interest payments) attributable to changes in LIBOR, the designated benchmark interest rate being hedged (the “hedged risk”), on an amount of the Company’s debt principal equal to the outstanding swap notional amounts. Cash Flow Interest Rate Swap Both of the interest rate swaps described above are designated and qualify as cash flow hedges of forecasted interest payments. The Company reports the effective portion of the fair value gain or loss on the swaps as a component of other comprehensive income (or other comprehensive loss). Gains or losses (if any) on any ineffective portion of derivative instruments in cash flow hedging relationships are recorded in the period in which they occur as a component of interest expense in the consolidated condensed statement of operations and as a component of operating activities in the consolidated condensed statement of cash flows. The aggregate notional amount of the interest rate swaps as of September 29, 2019 was $250 million . Forward Contracts Our nora operations are party to currency forward contracts designed to hedge the cash flow risk of intercompany sales from the manufacturing facility in Europe to the Americas. The Company’s objective and strategy with respect to these currency forward contracts is to protect the Company against adverse fluctuations in currency rates by reducing its exposure to variability in cash flows related to receipt of payment on intercompany sales. The Company is meeting its objective by hedging the risk of changes in its cash flows (intercompany payments for inventory) attributable to changes in the U.S. dollar/Euro exchange rate (the “hedged risk”). Changes in fair value attributable to components other than exchange rates will be excluded from the assessment of effectiveness and amortized to earnings on a straight-line basis. Changes in fair value related to the effective portion of these contracts will be reflected as a component of other comprehensive income (or other comprehensive loss). As of September 29, 2019 , all foreign currency forward contracts have expired. The table below sets forth the fair value of derivative instruments as of September 29, 2019 (in thousands): Asset Derivatives as of Liability Derivatives as of Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivative instruments designated as hedging instruments: Foreign currency contracts Other current assets $ — Accrued expenses $ — Interest rate swap contracts Other current assets — Accrued expenses 7,588 $ — $ 7,588 The table below sets forth the fair value of derivative instruments as of December 30, 2018 (in thousands): Asset Derivatives as of Liability Derivatives as of Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivative instruments designated as hedging instruments: Foreign currency contracts Other current assets $ 651 Other current liabilities $ — Interest rate swap contract Other current assets $ 1,794 Other current liabilities — $ 2,445 — There was no significant impact to earnings from the changes in fair value of derivatives designated as cash flow hedges or from amounts excluded from the assessment of hedge effectiveness during the three and nine months ended September 29, 2019 . The amount of hedged items expected to be reclassified from accumulated other comprehensive income in the next 12 months is not significant. The following table summarizes the impact that changes in the fair value of derivatives designated as cash flow hedges and included in the assessment of hedge effectiveness had on accumulated other comprehensive income during the three and nine months ended September 29, 2019 , and September 30, 2018 (in thousands): Three Months Ended Nine Months Ended September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 (In thousands) Foreign currency contracts gain (loss) $ 627 $ (167 ) $ 468 $ (167 ) Interest rate swap contracts (loss) gain (1,568 ) 453 (9,382 ) 2,732 (Loss) gain recognized in accumulated other comprehensive income $ (941 ) $ 286 $ (8,914 ) $ 2,565 The following table summarizes the losses reclassified from accumulated other comprehensive income during the three and nine months ended September 29, 2019 (in thousands): Three Months Ended Nine Months Ended Statement of Operations Location September 29, 2019 September 29, 2019 (In thousands) Foreign currency contracts Cost of sales $ 450 $ 450 |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 29, 2019 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | SHAREHOLDERS’ EQUITY The following tables depict the activity in the accounts which make up shareholders’ equity for the three and nine months ended September 29, 2019 and September 30, 2018 : SHARES COMMON STOCK ADDITIONAL PAID-IN CAPITAL RETAINED EARNINGS PENSION LIABILITY FOREIGN CURRENCY TRANSLATION ADJUSTMENT CASH FLOW HEDGE (In thousands) Balance at December 30, 2018 59,508 $ 5,951 $ 270,269 $ 222,214 $ (43,610 ) $ (101,487 ) $ 1,326 Net income — — — 7,059 — — — Stock issuances under employee plans 509 51 379 — — — — Other issuances of common stock 224 22 3,900 — — — — Unamortized stock compensation expense related to restricted stock awards — — (3,922 ) — — — — Cash dividends paid — — — (3,900 ) — — — Forfeitures and compensation expense related to stock awards (225 ) (22 ) 29 — — — — Share repurchases — — — — — — — Pension liability adjustment — — — — (91 ) — — Foreign currency translation adjustment — — — — — (5,203 ) — Cash flow hedge unrealized loss — — — — — — (3,306 ) Balance, at March 31, 2019 60,016 $ 6,002 $ 270,655 $ 225,373 $ (43,701 ) $ (106,690 ) $ (1,980 ) Net income — — — 29,499 — — — Stock issuances under employee plans 2 — 6 — — — — Other issuances of common stock (1 ) — — — — — — Unamortized stock compensation expense related to restricted stock awards — — 52 — — — — Cash dividends paid — — — (3,863 ) — — — Forfeitures and compensation expense related to stock awards (28 ) (3 ) 1,506 — — — — Share repurchases (1,556 ) (156 ) (24,998 ) — — — — Pension liability adjustment — — — — 829 — — Foreign currency translation adjustment — — — — — 4,249 — Cash flow hedge unrealized loss — — — — — — (4,667 ) Balance, at June 30, 2019 58,433 $ 5,843 $ 247,221 $ 251,009 $ (42,872 ) $ (102,441 ) $ (6,647 ) Net income — — — 26,210 — — — Stock issuances under employee plans — — — — — — — Other issuances of common stock — — — — — — — Unamortized stock compensation expense related to restricted stock awards — — — — — — — Cash dividends paid — — — (3,798 ) — — — Forfeitures and compensation expense related to stock awards — — 1,303 — — — — Share repurchases — — — — — — — Pension liability adjustment — — — — 1,076 — — Foreign currency translation adjustment — — — — — (18,585 ) — Cash flow hedge unrealized loss — — — — — — (941 ) Balance at September 29, 2019 58,433 $ 5,843 $ 248,524 $ 273,421 $ (41,796 ) $ (121,026 ) $ (7,588 ) SHARES COMMON STOCK ADDITIONAL PAID-IN CAPITAL RETAINED EARNINGS PENSION LIABILITY FOREIGN CURRENCY TRANSLATION ADJUSTMENT CASH FLOW HEDGE (In thousands) Balance, at December 31, 2017 59,806 $ 5,981 $ 271,271 $ 187,433 $ (56,554 ) $ (78,943 ) $ 904 Net income — — — 15,084 — — — Stock issuances under employee plans 175 17 102 — — — — Other issuances of common stock 187 19 4,769 — — — — Unamortized stock compensation expense related to restricted stock awards — — (4,788 ) — — — — Cash dividends paid — — — (3,868 ) — — — Forfeitures and compensation expense related to stock awards (55 ) (6 ) 3,185 — — — — Share repurchases (615 ) (61 ) (14,424 ) — — — — Pension liability adjustment — — — — (2,216 ) — — Foreign currency translation adjustment — — — — — 8,830 — Cash flow hedge unrealized gain — — — — — — 1,632 Balance, at April 1, 2018 59,498 $ 5,950 $ 260,115 $ 198,649 $ (58,770 ) $ (70,113 ) $ 2,536 Net income — — — 20,602 — — — Stock issuances under employee plans 4 — 35 — — — — Other issuances of common stock — — — — — — — Unamortized stock compensation expense related to restricted stock awards — — — — — — — Cash dividends paid — — — (3,868 ) — — — Forfeitures and compensation expense related to stock awards (9 ) (1 ) 2,135 — — — — Share repurchases — — — — — — — Pension liability adjustment — — — — 3,459 — — Foreign currency translation adjustment — — — — — (20,773 ) — Cash flow hedge unrealized gain — — — — — — 647 Balance, at July 1, 2018 59,493 $ 5,949 $ 262,285 $ 215,383 $ (55,311 ) $ (90,886 ) $ 3,183 Net income — — — 8,172 — — — Stock issuances under employee plans 10 1 86 — — — — Other issuances of common stock 2 1 40 — — — — Unamortized stock compensation expense related to restricted stock awards — — (40 ) — — — — Cash dividends paid — — — (3,866 ) — — — Forfeitures and compensation expense related to stock awards — — 2,929 — — — — Share repurchases — — — — — — — Pension liability adjustment — — — — (196 ) — — Foreign currency translation adjustment — — — — — 4,964 — Cash flow hedge unrealized gain — — — — — — 286 Balance, at September 30, 2018 59,505 $ 5,951 $ 265,300 $ 219,689 $ (55,507 ) $ (85,922 ) $ 3,469 Repurchase of Common Stock In the second quarter of 2017, the Company adopted a share repurchase program in which the Company was authorized to repurchase up to $100.0 million of its outstanding shares of common stock. During the second quarter of 2019, the Company repurchased the remaining $25.2 million of its outstanding shares of common stock authorized pursuant to this share repurchase program, thus completing the program. Stock Option Awards In accordance with accounting standards, the Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. That cost will be recognized over the period in which the employee is required to provide the services – the requisite service period (usually the vesting period) – in exchange for the award. All outstanding stock options vested prior to the end of 2013, and therefore there was no stock option compensation expense in the first nine months of 2019 or 2018 . As of September 29, 2019 , there were 27,500 stock options outstanding and exercisable, at an average exercise price of $12.43 per share. There were no stock options granted in 2019 or 2018. There were 10,000 stock options exercised and 5,000 stock options forfeited in the first nine months of 2019 . There were 20,000 stock options exercised in the first nine months of 2018 and no forfeitures during those nine months. The aggregate intrinsic value of the outstanding and exercisable stock options was not significant as of September 29, 2019 . Restricted Stock Awards During the nine months ended September 29, 2019 and September 30, 2018 , the Company granted restricted stock awards for 224,000 and 194,000 shares of common stock, respectively. Awards of restricted stock (or a portion thereof) vest with respect to each recipient over a one to three -year period from the date of grant, provided the individual remains in the employment or service of the Company as of the vesting date. Additionally, certain awards (or a portion thereof) could vest earlier in the event of a change in control of the Company, or upon involuntary termination without cause. Compensation expense related to restricted stock grants was $2.5 million and $2.9 million for the nine months ended September 29, 2019 , and September 30, 2018 , respectively. The Company estimates forfeitures for restricted stock and reduces compensation expense accordingly. The Company has reduced its expense by the assumed forfeiture rate and will evaluate actual experience against the assumed forfeiture rate going forward. The following table summarizes restricted stock outstanding as of September 29, 2019 , as well as activity during the nine months then ended: Restricted Shares Weighted Average Grant Date Fair Value Outstanding at December 30, 2018 549,000 $ 27.65 Granted 224,000 17.54 Vested (218,000 ) 18.27 Forfeited or canceled (37,000 ) 20.88 Outstanding at September 29, 2019 518,000 $ 27.71 As of September 29, 2019 , the unrecognized total compensation cost related to unvested restricted stock was $4.7 million . That cost is expected to be recognized by the end of 2022. Performance Share Awards During the nine months ended September 29, 2019 and September 30, 2018 , the Company issued awards of performance shares to certain employees. These awards vest based on the achievement of certain performance-based goals over a performance period of one to three years , subject to the employee’s continued employment through the last date of the performance period, and will be settled in shares of our common stock or in cash at the Company’s election. The number of shares that may be issued in settlement of the performance shares to the award recipients may be greater (up to 200% ) or lesser than the nominal award amount depending on actual performance achieved as compared to the performance targets set forth in the awards. The following table summarizes the performance shares outstanding as of September 29, 2019 , as well as the activity during the nine months then ended: Shares Weighted Average Grant Date Fair Value Outstanding at December 30, 2018 759,500 $ 20.17 Granted 344,500 17.54 Vested (472,000 ) 18.85 Forfeited or canceled (57,000 ) 20.42 Outstanding at September 29, 2019 575,000 $ 19.65 Compensation expense related to the performance shares was $4.0 million and $6.3 million for the nine months ended September 29, 2019 , and September 30, 2018 , respectively. Unrecognized compensation expense related to these performance shares was approximately $4.8 million as of September 29, 2019 . That cost is expected to be recognized by the end of 2022. The tax benefits recognized with regard to restricted stock and performance shares were approximately $1.1 million for the nine months ended September 29, 2019 . |
Leases
Leases | 9 Months Ended |
Sep. 29, 2019 | |
Leases [Abstract] | |
Leases | LEASES General On December 31, 2018, the Company adopted the new lease standard using the transition methodology allowed by the standard to initially apply the new lease guidance at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The comparative prior year periods presented in these financial statements continue to be in accordance with previous GAAP. We have operating and finance leases for manufacturing equipment, corporate offices, showrooms, distribution facilities, design centers, as well as computer and office equipment. Our leases have terms ranging from 1 to 20 years , some of which may include options to extend the lease term for up to 5 years , and certain leases may include an option to terminate the lease. Our lease terms may include these options to extend or terminate a lease when it is reasonably certain that we will exercise that option. We record a right-of-use asset and lease liability for operating and finance leases once a contract that contains a lease is executed and we have the right to control the use of the leased asset. The right-of-use asset is measured as the present value of the lease obligation. The discount rate used to calculate the present value of the lease liability was the Company’s incremental borrowing rate for the applicable geographical region. As of September 29, 2019 , there were no significant right-of-use assets and lease obligations from leases that had not commenced as of the end of the third quarter. The table below represents a summary of the balances recorded in the consolidated condensed balance sheet related to our leases as of September 29, 2019 : September 29, 2019 (In thousands) Balance Sheet Location Operating Leases Finance Leases Operating lease right-of-use assets $ 110,051 Current portion of operating lease liabilities $ 15,780 Operating lease liabilities 91,480 Total operating lease liabilities $ 107,260 Property and equipment $ 3,951 Accrued expenses $ 1,150 Other long-term liabilities 972 Total finance lease liabilities $ 2,122 Lease Costs Three Months Ended Nine Months Ended September 29, 2019 September 29, 2019 Lease cost (In thousands) Finance lease cost: Amortization of right-of-use assets $ 112 $ 536 Interest on lease liabilities 12 31 Operating lease cost 6,023 17,624 Short-term lease cost 363 1,509 Variable lease cost 561 1,319 Total lease cost $ 7,071 $ 21,019 Other supplemental information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 12 $ 31 Operating cash flows from operating leases 5,653 16,158 Financing cash flows from finance leases 291 808 Right-of-use assets obtained in exchange for new finance lease liabilities 252 803 Right-of-use assets obtained in exchange for new operating lease liabilities 1,437 7,973 September 29, 2019 Weighted-average remaining lease term – finance leases (in years) 2.25 Weighted-average remaining lease term – operating leases (in years) 10.75 Weighted-average discount rate – finance leases 2.25 % Weighted-average discount rate – operating leases 5.85 % Maturity Analysis Maturity analysis of lease payments under non-cancellable leases were as follows: Fiscal Year Operating Leases Finance Leases (In thousands) 2019 (excluding the nine months ended September 29, 2019) $ 5,690 $ 304 2020 20,432 1,141 2021 16,257 469 2022 13,007 174 2023 10,924 84 Thereafter 83,263 14 Total future minimum lease payments (undiscounted) 149,573 2,186 Less: Present value discount (42,313 ) (64 ) Total lease liability $ 107,260 $ 2,122 At December 30, 2018 , aggregate minimum rent commitments under operating leases with initial or remaining terms of one year or more consisted of the following: Fiscal Year Amount (In thousands) 2019 $ 26,113 2020 22,066 2021 16,453 2022 8,692 2023 5,186 Thereafter 15,237 Total minimum rent commitments $ 93,747 Practical Expedients and Policy Elections The Company elected the package of practical expedients permitted under the transition guidance of the new lease standard, which, among other things, allows us to carry forward the historical lease classification and not reassess any initial direct costs for existing leases. In addition, we elected the hindsight practical expedient to determine the lease term, which allows us to use hindsight when considering the impact of options to extend or terminate a lease as well as the option to purchase the underlying asset. We also made an accounting policy election not to separate lease and non-lease components for all asset classes, except for data center assets, and will account for the lease payments as a single component. We made an accounting policy election to exclude leases with an initial term of 12 months or less from the calculation of the right-of-use asset and lease liability recorded on the consolidated condensed balance sheet. These leases primarily represent month-to-month operating leases for vehicles and office equipment where we were reasonably certain that we would not elect an option to extend the lease. |
Leases | LEASES General On December 31, 2018, the Company adopted the new lease standard using the transition methodology allowed by the standard to initially apply the new lease guidance at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The comparative prior year periods presented in these financial statements continue to be in accordance with previous GAAP. We have operating and finance leases for manufacturing equipment, corporate offices, showrooms, distribution facilities, design centers, as well as computer and office equipment. Our leases have terms ranging from 1 to 20 years , some of which may include options to extend the lease term for up to 5 years , and certain leases may include an option to terminate the lease. Our lease terms may include these options to extend or terminate a lease when it is reasonably certain that we will exercise that option. We record a right-of-use asset and lease liability for operating and finance leases once a contract that contains a lease is executed and we have the right to control the use of the leased asset. The right-of-use asset is measured as the present value of the lease obligation. The discount rate used to calculate the present value of the lease liability was the Company’s incremental borrowing rate for the applicable geographical region. As of September 29, 2019 , there were no significant right-of-use assets and lease obligations from leases that had not commenced as of the end of the third quarter. The table below represents a summary of the balances recorded in the consolidated condensed balance sheet related to our leases as of September 29, 2019 : September 29, 2019 (In thousands) Balance Sheet Location Operating Leases Finance Leases Operating lease right-of-use assets $ 110,051 Current portion of operating lease liabilities $ 15,780 Operating lease liabilities 91,480 Total operating lease liabilities $ 107,260 Property and equipment $ 3,951 Accrued expenses $ 1,150 Other long-term liabilities 972 Total finance lease liabilities $ 2,122 Lease Costs Three Months Ended Nine Months Ended September 29, 2019 September 29, 2019 Lease cost (In thousands) Finance lease cost: Amortization of right-of-use assets $ 112 $ 536 Interest on lease liabilities 12 31 Operating lease cost 6,023 17,624 Short-term lease cost 363 1,509 Variable lease cost 561 1,319 Total lease cost $ 7,071 $ 21,019 Other supplemental information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 12 $ 31 Operating cash flows from operating leases 5,653 16,158 Financing cash flows from finance leases 291 808 Right-of-use assets obtained in exchange for new finance lease liabilities 252 803 Right-of-use assets obtained in exchange for new operating lease liabilities 1,437 7,973 September 29, 2019 Weighted-average remaining lease term – finance leases (in years) 2.25 Weighted-average remaining lease term – operating leases (in years) 10.75 Weighted-average discount rate – finance leases 2.25 % Weighted-average discount rate – operating leases 5.85 % Maturity Analysis Maturity analysis of lease payments under non-cancellable leases were as follows: Fiscal Year Operating Leases Finance Leases (In thousands) 2019 (excluding the nine months ended September 29, 2019) $ 5,690 $ 304 2020 20,432 1,141 2021 16,257 469 2022 13,007 174 2023 10,924 84 Thereafter 83,263 14 Total future minimum lease payments (undiscounted) 149,573 2,186 Less: Present value discount (42,313 ) (64 ) Total lease liability $ 107,260 $ 2,122 At December 30, 2018 , aggregate minimum rent commitments under operating leases with initial or remaining terms of one year or more consisted of the following: Fiscal Year Amount (In thousands) 2019 $ 26,113 2020 22,066 2021 16,453 2022 8,692 2023 5,186 Thereafter 15,237 Total minimum rent commitments $ 93,747 Practical Expedients and Policy Elections The Company elected the package of practical expedients permitted under the transition guidance of the new lease standard, which, among other things, allows us to carry forward the historical lease classification and not reassess any initial direct costs for existing leases. In addition, we elected the hindsight practical expedient to determine the lease term, which allows us to use hindsight when considering the impact of options to extend or terminate a lease as well as the option to purchase the underlying asset. We also made an accounting policy election not to separate lease and non-lease components for all asset classes, except for data center assets, and will account for the lease payments as a single component. We made an accounting policy election to exclude leases with an initial term of 12 months or less from the calculation of the right-of-use asset and lease liability recorded on the consolidated condensed balance sheet. These leases primarily represent month-to-month operating leases for vehicles and office equipment where we were reasonably certain that we would not elect an option to extend the lease. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 29, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS The following tables provide the components of net periodic benefit cost for the three-month and nine -month periods ended September 29, 2019 and September 30, 2018 , respectively: Three Months Ended Nine Months Ended Defined Benefit Retirement Plans (Europe) September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 (In thousands) (In thousands) Service cost $ 181 $ 178 $ 550 $ 547 Interest cost 1,223 1,270 3,770 3,941 Expected return on assets (1,378 ) (1,503 ) (4,251 ) (4,667 ) Amortization of prior service cost 16 (11 ) 48 4 Amortization of net actuarial losses 240 270 742 839 Net periodic benefit cost $ 282 $ 204 $ 859 $ 664 Three Months Ended Nine Months Ended Salary Continuation Plan September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 (In thousands) (In thousands) Service cost $ — $ — $ — $ — Interest cost 288 271 865 812 Amortization of net actuarial losses 94 116 281 348 Net periodic benefit cost $ 382 $ 387 $ 1,146 $ 1,160 Three Months Ended Nine Months Ended Nora Defined Benefit Plan September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 (In thousands) (In thousands) Service cost $ 213 $ 134 $ 646 $ 134 Interest cost 170 99 515 99 Net periodic benefit cost $ 383 $ 233 $ 1,161 $ 233 In accordance with applicable accounting standards, the service cost component of net periodic benefit costs is presented within Operating Income in the consolidated condensed statement of operations, while all other components of net periodic benefit costs are presented within other expense in the consolidated condensed statement of operations. |
Acquisition of Nora
Acquisition of Nora | 9 Months Ended |
Sep. 29, 2019 | |
Business Combinations [Abstract] | |
Acquisition of Nora | ACQUISITION OF NORA On August 7, 2018, the Company completed the acquisition of nora for a purchase price of €385.1 million , or $447.2 million at the exchange rate as of the transaction date, including acquired cash of €40.0 million ( $46.5 million ) for a net purchase price of €345.1 million ( $400.7 million ). The transaction was accounted for as a business combination using the acquisition method of accounting, which requires, among other things, that assets acquired and liabilities assumed be recorded at their fair market values as of the acquisition date. The results of operations for this acquisition have been consolidated with those of the Company from the acquisition date forward. Tangible assets and liabilities of nora systems GmbH were valued as of the acquisition date using a market analysis, and intangible assets were valued using a discounted cash flow analysis. During the second quarter of 2019, the Company recognized a measurement period adjustment to adjust provisional amounts initially recorded for assumed deferred tax liabilities. This measurement period adjustment resulted in an increase to assumed deferred tax liabilities of $17.2 million and a corresponding increase to goodwill. The fair values of the assets acquired and liabilities assumed are final and include all measurement period adjustments. The following table summarizes the fair values of the assets acquired and liabilities assumed at the acquisition date, including all measurement period adjustments. As of August 7, 2018 (In thousands) Assets acquired (excluding goodwill) $ 359,335 Liabilities assumed (114,049 ) Net assets acquired 245,286 Purchase price 447,192 Goodwill, excess of purchase price $ 201,906 On August 7, 2018, acquired intangible assets of $103.3 million include $60.8 million of trademarks and tradenames that are not subject to amortization and will instead be subject to annual impairment testing, or more frequent testing should there be a significant change in business conditions. The remaining intangible assets include developed technology of $39.1 million that will be amortized on a straight-line basis over the estimated useful life of 7 years and backlog of $3.4 million that will be amortized on a straight-line basis over the estimated useful life of 6 months . The acquired inventory includes a step-up of inventory to fair value of approximately $26.6 million which will be recognized in earnings over the expected turns of the inventory. This step-up of inventory to fair value was fully amortized by the end of 2018. The 2018 period below represents the pro forma consolidated statement of operations as if nora had been included in the consolidated results of the Company beginning January 1, 2018 to the acquisition date. These are estimated for pro forma purposes only and do not necessarily reflect what the consolidated results of the Company would have been had the Company owned nora as of the first day of 2018. Nine Months Ended September 30, 2018 (In thousands) Revenue $ 1,001,919 Net income 74,390 Pro forma net income for 2018 excludes any transaction related costs as these are non-recurring costs for the combined Company. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 29, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION Based on applicable accounting standards, the Company has determined that it has three operating segments – namely, the Americas, Europe and Asia-Pacific geographic regions. Pursuant to accounting standards, the Company has aggregated the three operating segments into one reporting segment because they have similar economic characteristics, and the operating segments are similar in all of the following areas: (a) the nature of the products and services; (b) the nature of the production processes; (c) the type or class of customer for their products and services; (d) the methods used to distribute their products or provide their services; and (e) the nature of the regulatory environment. While the Company operates as one reporting segment for the reasons discussed, included below is selected information on our operating segments. Summary information by operating segment follows: AMERICAS EUROPE ASIA- PACIFIC TOTAL (In thousands) Three Months Ended September 29, 2019: Net Sales $ 195,900 $ 106,115 $ 46,337 $ 348,352 Depreciation and amortization 3,238 4,255 2,035 9,528 Total assets 704,088 619,307 196,921 1,520,316 Three Months Ended September 30, 2018: Net Sales $ 182,660 $ 88,223 $ 47,442 $ 318,325 Depreciation and amortization 3,373 3,181 2,144 8,698 Nine Months Ended September 29, 2019: Net Sales $ 563,776 $ 294,830 $ 144,941 $ 1,003,547 Depreciation and amortization 9,789 13,586 6,275 29,650 Nine Months Ended September 30, 2018: Net Sales $ 494,265 $ 220,645 $ 127,604 $ 842,514 Depreciation and amortization 10,464 7,483 6,564 24,511 A reconciliation of the Company’s total operating segment depreciation and amortization, and assets to the corresponding consolidated amounts follows: Three Months Ended Nine Months Ended DEPRECIATION AND AMORTIZATION September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 (In thousands) Total segment depreciation and amortization $ 9,528 $ 8,698 $ 29,650 $ 24,511 Corporate depreciation and amortization 1,352 1,179 3,928 2,556 Reported depreciation and amortization $ 10,880 $ 9,877 $ 33,578 $ 27,067 ASSETS September 29, 2019 (In thousands) Total segment assets $ 1,520,316 Corporate assets 141,286 Eliminations (237,065 ) Reported total assets $ 1,424,537 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information Supplemental Cash Flow Information | 9 Months Ended |
Sep. 29, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | SUPPLEMENTAL CASH FLOW INFORMATION Cash payments for interest amounted to $18.1 million and $7.4 million for the nine months ended September 29, 2019 and September 30, 2018 , respectively. Income tax payments, net of refunds amounted to $26.5 million and $21.2 million for the nine months ended September 29, 2019 and September 30, 2018 , respectively. |
Income Taxes Income Taxes
Income Taxes Income Taxes | 9 Months Ended |
Sep. 29, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company determines its provision for income taxes for interim periods using an estimate of its annual effective tax rate and records any changes affecting the estimated annual effective tax rate in the interim period in which the change occurs, including discrete tax items. For the nine months ended September 29, 2019 , the Company’s effective tax rate was 22.0% , as compared to 24.3% in the first nine months of 2018 . The effective tax rate decreased due to the favorable impact of discrete items recognized during the period related to company-owned life insurance and the remeasurement of unrecognized tax benefits. Accounting standards require that all tax positions be analyzed using a two-step approach. The first step requires an entity to determine if a tax position is more-likely-than-not to be sustained upon examination. In the second step, the tax benefit is measured as the largest amount of benefit, determined on a cumulative probability basis, that is more-likely-than-not to be realized upon ultimate settlement. In the first nine months of 2019 , the Company decreased its liability for unrecognized tax benefits by $2.2 million . As of September 29, 2019 , the Company had accrued approximately $25.9 million for unrecognized tax benefits. In accordance with applicable accounting standards, the Company’s deferred tax asset as of September 29, 2019 reflected a reduction of $2.8 million related to these unrecognized tax benefits. |
Items Reclassified From Other C
Items Reclassified From Other Comprehensive Income | 9 Months Ended |
Sep. 29, 2019 | |
Equity [Abstract] | |
Items Reclassified From Other Comprehensive Income | ITEMS RECLASSIFIED FROM OTHER COMPREHENSIVE INCOME During the first nine months of 2019 and 2018 , the Company reclassified $1.1 million and $1.2 million , respectively, out of accumulated other comprehensive income related to the Company’s defined benefit retirement plans and salary continuation plan. These reclassifications were included in the other expense line item of the Company’s consolidated condensed statement of operations. Other reclassifications out of accumulated other comprehensive income related to currency forward contracts are discussed in Note 6 entitled "Derivative Instruments". |
Restructuring and Asset Impairm
Restructuring and Asset Impairment Charges | 9 Months Ended |
Sep. 29, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Asset Impairment Charges | RESTRUCTURING AND ASSET IMPAIRMENT CHARGES On December 29, 2018, the Company committed to a new restructuring plan in its continuing efforts to improve efficiencies and decrease costs across its worldwide operations, and more closely align its operating structure with its business strategy. The plan involves (i) a restructuring of its sales and administrative operations in the United Kingdom, (ii) a reduction of approximately 200 employees, primarily in the Europe and Asia-Pacific geographic regions, and (iii) the write-down of certain underutilized and impaired assets that include information technology assets and obsolete manufacturing equipment. As a result of this plan, the Company recorded a pre-tax restructuring and asset impairment charge in the fourth quarter of 2018 of approximately $20.5 million . The charge was comprised of severance expenses (approximately $10.8 million ), impairment of assets (approximately $8.6 million ) and other items (approximately $1.1 million ). The charge was expected to result in future cash expenditures of $12.0 million , primarily for severance payments (approximately $10.8 million ). The restructuring plan is expected to be substantially completed during 2019 , and is expected to yield gross annual savings of approximately $12 million in fiscal 2019 . The Company expects to redeploy in 2019 essentially all of the anticipated savings toward the funding of sales and strategic growth initiatives, yielding negligible net savings on the Company’s income statement. In the third quarter of 2019 the Company recorded $0.7 million of restructuring charges related to additional lease exit costs in connection with the restructuring plan announced on December 29, 2018. A summary of these restructuring activities is presented below: Balance at Beginning of Year Deductions 2019 Charged to Expenses 2019 Balance at (in thousands) Workforce Reduction $ 10,763 $ 5,892 $ — $ 4,871 Other Exit Costs 1,144 370 672 1,446 Total $ 11,907 $ 6,262 $ 672 $ 6,317 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 29, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation As contemplated by the Securities and Exchange Commission (the “Commission”) instructions to Form 10-Q, the following footnotes have been condensed and, therefore, do not contain all disclosures required in connection with annual financial statements. Reference should be made to the Company’s year-end financial statements and notes thereto contained in its Annual Report on Form 10-K for the fiscal year ended December 30, 2018 , as filed with the Commission. The financial information included in this report has been prepared by the Company, without audit. In the opinion of management, the financial information included in this report contains all adjustments necessary for a fair presentation of the results for the interim periods. Nevertheless, the results shown for interim periods are not necessarily indicative of results to be expected for the full year. The December 30, 2018 , consolidated condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued a new accounting standard regarding leases. The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months . Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company adopted the new lease standard on December 30, 2018, using the modified retrospective approach and recorded operating lease right-of-use assets and operating lease liabilities for approximately $115 million respectively, with no cumulative-effect adjustment to retained earnings. The Company elected to apply the practical expedients allowed by the standard, which resulted in the Company not having to reassess whether expired or existing contracts contained a lease as well as retaining the historical classification of our leases. The Company also elected the hindsight practical expedient in evaluating lessee options and elected to combine lease and non-lease components in calculating the right-of-use asset and lease liability for all leases, except data center assets. See Note 8 entitled “Leases” for additional information. In February 2018, the FASB issued Accounting Standard Update (“ASU”) 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” to address a narrow-scope financial reporting issue that arose as a consequence of the U.S. Tax Cuts and Jobs Act. Existing guidance requires that deferred tax liabilities and assets be adjusted for a change in tax laws or rates with the effect included in income from continuing operations in the reporting period that includes the enactment date. That guidance is applicable even in situations in which the related income tax effects of items in accumulated other comprehensive income were originally recognized in other comprehensive income (rather than in net income), such as amounts related to benefit plans and hedging activity. As a result, the tax effects of items within accumulated other comprehensive income do not reflect the appropriate tax rate (the difference is referred to as stranded tax effects). The new guidance allows for a reclassification of these amounts to retained earnings, thereby eliminating these stranded tax effects. The new guidance is effective for interim and annual periods beginning after December 15, 2018. The adoption of this standard did not have a material effect on the Company’s consolidated financial statements as the Company did not elect to reclassify stranded tax effects into retained earnings. In June 2018, the FASB issued ASU 2018-07, “Improvements to Nonemployee Share-Based Payment Accounting.” This standard will require that the accounting treatment for non-employee share-based payments for goods or services be consistent with current Generally Accepted Accounting Principles (“GAAP”) for employee share-based payments, including measurement of awards at grant-date fair value and the application of probability to evaluate performance conditions. This standard will also eliminate the current GAAP requirement to reassess the classification of non-employee share-based payments awards upon vesting. The new guidance is effective for interim and annual periods beginning after December 15, 2018. The adoption of this standard did not have a material effect on the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In December 2017, the FASB issued ASU 2017-04, “Intangibles – Goodwill and Other,” that provides for the elimination of Step 2 from the goodwill impairment test. Under the new guidance, impairment charges are recognized to the extent the carrying amount of a reporting unit exceeds its fair value with certain limitations. The new guidance is effective for any annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company does not anticipate that the adoption of the new standard will have a material effect on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Changes to the Disclosure Requirements for Fair Value Measurement.” This standard eliminates the current requirement to disclose the amount or reason for transfers between level 1 and level 2 of the fair value hierarchy and the requirement to disclose the valuation methodology for level 3 fair value measurements. The standard includes additional disclosure requirements for level 3 fair value measurements, including the requirement to disclose the changes in unrealized gains and losses in other comprehensive income during the period and permits the disclosure of other relevant quantitative information for certain unobservable inputs. The new guidance is effective for interim and annual periods beginning after December 15, 2019. Early adoption is permitted. The Company does not anticipate that the adoption of the new standard will have a material effect on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, “Internal-Use Software – Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement.” This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement service contract with the guidance to capitalize implementation costs of internal use software. The ASU also requires that the costs for implementation activities during the application development phase be capitalized in a hosting arrangement service contract, and costs during the preliminary and post implementation phase are expensed. The new guidance is effective for interim and annual periods beginning after December 15, 2019. Early adoption is permitted. The Company is currently evaluating the impact of adoption of this standard, but does not anticipate that the adoption will have a material effect on its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13 “Financial Instruments -- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” This ASU requires a financial asset (including trade receivables) to be presented at the net amount expected to be collected through the use of valuation allowances for credit losses. The income statement will reflect the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. This standard is effective for annual reporting periods beginning after December 15, 2019, including interim periods within that reporting period. The new standard provides both a modified retrospective or prospective adoption method. The Company is currently evaluating the impact of adoption of this update, but does not anticipate that the adoption will have a material effect on its consolidated financial statements. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Revenues [Abstract] | |
Disaggregation of Revenue | For the nine months ended September 29, 2019 , revenue from the Company’s customers is broken down by geography as follows: Geography Percentage of Net Sales Americas 56.2% Europe 29.4% Asia-Pacific 14.4% |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories are summarized as follows: September 29, 2019 December 30, 2018 (In thousands) Finished Goods $ 189,919 $ 180,847 Work in Process 16,949 17,762 Raw Materials 58,233 60,048 Inventories, net $ 265,101 $ 258,657 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Earnings Per Share [Abstract] | |
Distributed And Undistributed Earnings | The following tables show distributed and undistributed earnings: Three Months Ended Nine Months Ended September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 Earnings Per Share: Basic Earnings Per Share: Distributed Earnings $ 0.07 $ 0.07 $ 0.19 $ 0.20 Undistributed Earnings 0.38 0.07 0.87 0.54 Total $ 0.45 $ 0.14 $ 1.06 $ 0.74 Diluted Earnings Per Share: Distributed Earnings $ 0.07 $ 0.07 $ 0.19 $ 0.20 Undistributed Earnings 0.38 0.07 0.87 0.54 Total $ 0.45 $ 0.14 $ 1.06 $ 0.74 Basic earnings per share $ 0.45 $ 0.14 $ 1.06 $ 0.74 Diluted earnings per share $ 0.45 $ 0.14 $ 1.06 $ 0.74 |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents net income that was attributable to participating securities: Three Months Ended Nine Months Ended September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 (In millions) Net Income Attributable to Participating Securities $ 0.2 $ 0.1 $ 0.6 $ 0.4 The weighted average shares for basic and diluted EPS were as follows: Three Months Ended Nine Months Ended September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 (In thousands) Weighted Average Shares Outstanding 57,915 58,917 58,599 58,974 Participating Securities 518 579 518 579 Shares for Basic Earnings Per Share 58,433 59,496 59,117 59,553 Dilutive Effect of Stock Options 1 40 5 41 Shares for Diluted Earnings Per Share 58,434 59,536 59,122 59,594 |
Derivative Instruments (Tables
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The table below sets forth the fair value of derivative instruments as of September 29, 2019 (in thousands): Asset Derivatives as of Liability Derivatives as of Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivative instruments designated as hedging instruments: Foreign currency contracts Other current assets $ — Accrued expenses $ — Interest rate swap contracts Other current assets — Accrued expenses 7,588 $ — $ 7,588 The table below sets forth the fair value of derivative instruments as of December 30, 2018 (in thousands): Asset Derivatives as of Liability Derivatives as of Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivative instruments designated as hedging instruments: Foreign currency contracts Other current assets $ 651 Other current liabilities $ — Interest rate swap contract Other current assets $ 1,794 Other current liabilities — $ 2,445 — |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following table summarizes the impact that changes in the fair value of derivatives designated as cash flow hedges and included in the assessment of hedge effectiveness had on accumulated other comprehensive income during the three and nine months ended September 29, 2019 , and September 30, 2018 (in thousands): Three Months Ended Nine Months Ended September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 (In thousands) Foreign currency contracts gain (loss) $ 627 $ (167 ) $ 468 $ (167 ) Interest rate swap contracts (loss) gain (1,568 ) 453 (9,382 ) 2,732 (Loss) gain recognized in accumulated other comprehensive income $ (941 ) $ 286 $ (8,914 ) $ 2,565 The following table summarizes the losses reclassified from accumulated other comprehensive income during the three and nine months ended September 29, 2019 (in thousands): Three Months Ended Nine Months Ended Statement of Operations Location September 29, 2019 September 29, 2019 (In thousands) Foreign currency contracts Cost of sales $ 450 $ 450 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stockholders Equity | The following tables depict the activity in the accounts which make up shareholders’ equity for the three and nine months ended September 29, 2019 and September 30, 2018 : SHARES COMMON STOCK ADDITIONAL PAID-IN CAPITAL RETAINED EARNINGS PENSION LIABILITY FOREIGN CURRENCY TRANSLATION ADJUSTMENT CASH FLOW HEDGE (In thousands) Balance at December 30, 2018 59,508 $ 5,951 $ 270,269 $ 222,214 $ (43,610 ) $ (101,487 ) $ 1,326 Net income — — — 7,059 — — — Stock issuances under employee plans 509 51 379 — — — — Other issuances of common stock 224 22 3,900 — — — — Unamortized stock compensation expense related to restricted stock awards — — (3,922 ) — — — — Cash dividends paid — — — (3,900 ) — — — Forfeitures and compensation expense related to stock awards (225 ) (22 ) 29 — — — — Share repurchases — — — — — — — Pension liability adjustment — — — — (91 ) — — Foreign currency translation adjustment — — — — — (5,203 ) — Cash flow hedge unrealized loss — — — — — — (3,306 ) Balance, at March 31, 2019 60,016 $ 6,002 $ 270,655 $ 225,373 $ (43,701 ) $ (106,690 ) $ (1,980 ) Net income — — — 29,499 — — — Stock issuances under employee plans 2 — 6 — — — — Other issuances of common stock (1 ) — — — — — — Unamortized stock compensation expense related to restricted stock awards — — 52 — — — — Cash dividends paid — — — (3,863 ) — — — Forfeitures and compensation expense related to stock awards (28 ) (3 ) 1,506 — — — — Share repurchases (1,556 ) (156 ) (24,998 ) — — — — Pension liability adjustment — — — — 829 — — Foreign currency translation adjustment — — — — — 4,249 — Cash flow hedge unrealized loss — — — — — — (4,667 ) Balance, at June 30, 2019 58,433 $ 5,843 $ 247,221 $ 251,009 $ (42,872 ) $ (102,441 ) $ (6,647 ) Net income — — — 26,210 — — — Stock issuances under employee plans — — — — — — — Other issuances of common stock — — — — — — — Unamortized stock compensation expense related to restricted stock awards — — — — — — — Cash dividends paid — — — (3,798 ) — — — Forfeitures and compensation expense related to stock awards — — 1,303 — — — — Share repurchases — — — — — — — Pension liability adjustment — — — — 1,076 — — Foreign currency translation adjustment — — — — — (18,585 ) — Cash flow hedge unrealized loss — — — — — — (941 ) Balance at September 29, 2019 58,433 $ 5,843 $ 248,524 $ 273,421 $ (41,796 ) $ (121,026 ) $ (7,588 ) SHARES COMMON STOCK ADDITIONAL PAID-IN CAPITAL RETAINED EARNINGS PENSION LIABILITY FOREIGN CURRENCY TRANSLATION ADJUSTMENT CASH FLOW HEDGE (In thousands) Balance, at December 31, 2017 59,806 $ 5,981 $ 271,271 $ 187,433 $ (56,554 ) $ (78,943 ) $ 904 Net income — — — 15,084 — — — Stock issuances under employee plans 175 17 102 — — — — Other issuances of common stock 187 19 4,769 — — — — Unamortized stock compensation expense related to restricted stock awards — — (4,788 ) — — — — Cash dividends paid — — — (3,868 ) — — — Forfeitures and compensation expense related to stock awards (55 ) (6 ) 3,185 — — — — Share repurchases (615 ) (61 ) (14,424 ) — — — — Pension liability adjustment — — — — (2,216 ) — — Foreign currency translation adjustment — — — — — 8,830 — Cash flow hedge unrealized gain — — — — — — 1,632 Balance, at April 1, 2018 59,498 $ 5,950 $ 260,115 $ 198,649 $ (58,770 ) $ (70,113 ) $ 2,536 Net income — — — 20,602 — — — Stock issuances under employee plans 4 — 35 — — — — Other issuances of common stock — — — — — — — Unamortized stock compensation expense related to restricted stock awards — — — — — — — Cash dividends paid — — — (3,868 ) — — — Forfeitures and compensation expense related to stock awards (9 ) (1 ) 2,135 — — — — Share repurchases — — — — — — — Pension liability adjustment — — — — 3,459 — — Foreign currency translation adjustment — — — — — (20,773 ) — Cash flow hedge unrealized gain — — — — — — 647 Balance, at July 1, 2018 59,493 $ 5,949 $ 262,285 $ 215,383 $ (55,311 ) $ (90,886 ) $ 3,183 Net income — — — 8,172 — — — Stock issuances under employee plans 10 1 86 — — — — Other issuances of common stock 2 1 40 — — — — Unamortized stock compensation expense related to restricted stock awards — — (40 ) — — — — Cash dividends paid — — — (3,866 ) — — — Forfeitures and compensation expense related to stock awards — — 2,929 — — — — Share repurchases — — — — — — — Pension liability adjustment — — — — (196 ) — — Foreign currency translation adjustment — — — — — 4,964 — Cash flow hedge unrealized gain — — — — — — 286 Balance, at September 30, 2018 59,505 $ 5,951 $ 265,300 $ 219,689 $ (55,507 ) $ (85,922 ) $ 3,469 |
Share-based Payment Arrangement, Restricted Stock Unit, Activity | The following table summarizes restricted stock outstanding as of September 29, 2019 , as well as activity during the nine months then ended: Restricted Shares Weighted Average Grant Date Fair Value Outstanding at December 30, 2018 549,000 $ 27.65 Granted 224,000 17.54 Vested (218,000 ) 18.27 Forfeited or canceled (37,000 ) 20.88 Outstanding at September 29, 2019 518,000 $ 27.71 |
Schedule of Nonvested Performance-based Units Activity | The following table summarizes the performance shares outstanding as of September 29, 2019 , as well as the activity during the nine months then ended: Shares Weighted Average Grant Date Fair Value Outstanding at December 30, 2018 759,500 $ 20.17 Granted 344,500 17.54 Vested (472,000 ) 18.85 Forfeited or canceled (57,000 ) 20.42 Outstanding at September 29, 2019 575,000 $ 19.65 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Leases [Abstract] | |
Schedule of Lease Cost | Lease Costs Three Months Ended Nine Months Ended September 29, 2019 September 29, 2019 Lease cost (In thousands) Finance lease cost: Amortization of right-of-use assets $ 112 $ 536 Interest on lease liabilities 12 31 Operating lease cost 6,023 17,624 Short-term lease cost 363 1,509 Variable lease cost 561 1,319 Total lease cost $ 7,071 $ 21,019 Other supplemental information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 12 $ 31 Operating cash flows from operating leases 5,653 16,158 Financing cash flows from finance leases 291 808 Right-of-use assets obtained in exchange for new finance lease liabilities 252 803 Right-of-use assets obtained in exchange for new operating lease liabilities 1,437 7,973 September 29, 2019 Weighted-average remaining lease term – finance leases (in years) 2.25 Weighted-average remaining lease term – operating leases (in years) 10.75 Weighted-average discount rate – finance leases 2.25 % Weighted-average discount rate – operating leases 5.85 % The table below represents a summary of the balances recorded in the consolidated condensed balance sheet related to our leases as of September 29, 2019 : September 29, 2019 (In thousands) Balance Sheet Location Operating Leases Finance Leases Operating lease right-of-use assets $ 110,051 Current portion of operating lease liabilities $ 15,780 Operating lease liabilities 91,480 Total operating lease liabilities $ 107,260 Property and equipment $ 3,951 Accrued expenses $ 1,150 Other long-term liabilities 972 Total finance lease liabilities $ 2,122 |
Lease Liability Maturity Schedule | Maturity analysis of lease payments under non-cancellable leases were as follows: Fiscal Year Operating Leases Finance Leases (In thousands) 2019 (excluding the nine months ended September 29, 2019) $ 5,690 $ 304 2020 20,432 1,141 2021 16,257 469 2022 13,007 174 2023 10,924 84 Thereafter 83,263 14 Total future minimum lease payments (undiscounted) 149,573 2,186 Less: Present value discount (42,313 ) (64 ) Total lease liability $ 107,260 $ 2,122 |
Lease Liability Maturity Schedule | Maturity analysis of lease payments under non-cancellable leases were as follows: Fiscal Year Operating Leases Finance Leases (In thousands) 2019 (excluding the nine months ended September 29, 2019) $ 5,690 $ 304 2020 20,432 1,141 2021 16,257 469 2022 13,007 174 2023 10,924 84 Thereafter 83,263 14 Total future minimum lease payments (undiscounted) 149,573 2,186 Less: Present value discount (42,313 ) (64 ) Total lease liability $ 107,260 $ 2,122 |
Schedule of Future Minimum Rental Payments for Operating Leases | At December 30, 2018 , aggregate minimum rent commitments under operating leases with initial or remaining terms of one year or more consisted of the following: Fiscal Year Amount (In thousands) 2019 $ 26,113 2020 22,066 2021 16,453 2022 8,692 2023 5,186 Thereafter 15,237 Total minimum rent commitments $ 93,747 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | The following tables provide the components of net periodic benefit cost for the three-month and nine -month periods ended September 29, 2019 and September 30, 2018 , respectively: Three Months Ended Nine Months Ended Defined Benefit Retirement Plans (Europe) September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 (In thousands) (In thousands) Service cost $ 181 $ 178 $ 550 $ 547 Interest cost 1,223 1,270 3,770 3,941 Expected return on assets (1,378 ) (1,503 ) (4,251 ) (4,667 ) Amortization of prior service cost 16 (11 ) 48 4 Amortization of net actuarial losses 240 270 742 839 Net periodic benefit cost $ 282 $ 204 $ 859 $ 664 Three Months Ended Nine Months Ended Salary Continuation Plan September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 (In thousands) (In thousands) Service cost $ — $ — $ — $ — Interest cost 288 271 865 812 Amortization of net actuarial losses 94 116 281 348 Net periodic benefit cost $ 382 $ 387 $ 1,146 $ 1,160 Three Months Ended Nine Months Ended Nora Defined Benefit Plan September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 (In thousands) (In thousands) Service cost $ 213 $ 134 $ 646 $ 134 Interest cost 170 99 515 99 Net periodic benefit cost $ 383 $ 233 $ 1,161 $ 233 |
Acquisition of Nora (Tables)
Acquisition of Nora (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the fair values of the assets acquired and liabilities assumed at the acquisition date, including all measurement period adjustments. As of August 7, 2018 (In thousands) Assets acquired (excluding goodwill) $ 359,335 Liabilities assumed (114,049 ) Net assets acquired 245,286 Purchase price 447,192 Goodwill, excess of purchase price $ 201,906 |
Business Acquisition, Pro Forma Information | The 2018 period below represents the pro forma consolidated statement of operations as if nora had been included in the consolidated results of the Company beginning January 1, 2018 to the acquisition date. These are estimated for pro forma purposes only and do not necessarily reflect what the consolidated results of the Company would have been had the Company owned nora as of the first day of 2018. Nine Months Ended September 30, 2018 (In thousands) Revenue $ 1,001,919 Net income 74,390 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Summary information by operating segment follows: AMERICAS EUROPE ASIA- PACIFIC TOTAL (In thousands) Three Months Ended September 29, 2019: Net Sales $ 195,900 $ 106,115 $ 46,337 $ 348,352 Depreciation and amortization 3,238 4,255 2,035 9,528 Total assets 704,088 619,307 196,921 1,520,316 Three Months Ended September 30, 2018: Net Sales $ 182,660 $ 88,223 $ 47,442 $ 318,325 Depreciation and amortization 3,373 3,181 2,144 8,698 Nine Months Ended September 29, 2019: Net Sales $ 563,776 $ 294,830 $ 144,941 $ 1,003,547 Depreciation and amortization 9,789 13,586 6,275 29,650 Nine Months Ended September 30, 2018: Net Sales $ 494,265 $ 220,645 $ 127,604 $ 842,514 Depreciation and amortization 10,464 7,483 6,564 24,511 |
Reconciliation of Depreciation, Amortization, and Assets from Segments to Consolidated | A reconciliation of the Company’s total operating segment depreciation and amortization, and assets to the corresponding consolidated amounts follows: Three Months Ended Nine Months Ended DEPRECIATION AND AMORTIZATION September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 (In thousands) Total segment depreciation and amortization $ 9,528 $ 8,698 $ 29,650 $ 24,511 Corporate depreciation and amortization 1,352 1,179 3,928 2,556 Reported depreciation and amortization $ 10,880 $ 9,877 $ 33,578 $ 27,067 ASSETS September 29, 2019 (In thousands) Total segment assets $ 1,520,316 Corporate assets 141,286 Eliminations (237,065 ) Reported total assets $ 1,424,537 |
Reconciliation of Assets from Segment to Consolidated | ASSETS September 29, 2019 (In thousands) Total segment assets $ 1,520,316 Corporate assets 141,286 Eliminations (237,065 ) Reported total assets $ 1,424,537 |
Restructuring and Asset Impai_2
Restructuring and Asset Impairment Charges (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | A summary of these restructuring activities is presented below: Balance at Beginning of Year Deductions 2019 Charged to Expenses 2019 Balance at (in thousands) Workforce Reduction $ 10,763 $ 5,892 $ — $ 4,871 Other Exit Costs 1,144 370 672 1,446 Total $ 11,907 $ 6,262 $ 672 $ 6,317 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) | Dec. 30, 2018 | Sep. 29, 2019 |
Operating lease right-of-use assets | $ 0 | $ 110,051,000 |
Operating lease liabilities | $ 107,260,000 | |
Cumulative effect on retained earnings | 0 | |
Accounting Standards Update 2016-02 | ||
Operating lease right-of-use assets | 115,000,000 | |
Operating lease liabilities | $ 115,000,000 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) | 9 Months Ended |
Sep. 29, 2019 | |
Carpet, Modular Resilient Flooring, and Related Products | |
Percent of revenue due to contracts with customers (percentage) | 98.00% |
Installation of Carpet and Other Flooring Related Material | |
Percent of revenue due to contracts with customers (percentage) | 2.00% |
Revenue Recognition - Disaggre
Revenue Recognition - Disaggregation of Revenue (Details) | 9 Months Ended |
Sep. 29, 2019 | |
Americas | |
Percentage of net sales (percentage) | 56.20% |
Europe | |
Percentage of net sales (percentage) | 29.40% |
Asia-Pacific | |
Percentage of net sales (percentage) | 14.40% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Dec. 30, 2018 |
Inventory Disclosure [Abstract] | ||
Finished Goods | $ 189,919 | $ 180,847 |
Work in Process | 16,949 | 17,762 |
Raw Materials | 58,233 | 60,048 |
Inventories, net | $ 265,101 | $ 258,657 |
Earnings Per Share - Distribute
Earnings Per Share - Distributed and Undistributed Earnings (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Basic Earnings Per Share: | ||||
Distributed Earnings (in dollars per share) | $ 0.07 | $ 0.07 | $ 0.19 | $ 0.20 |
Undistributed Earnings (in dollars per share) | 0.38 | 0.07 | 0.87 | 0.54 |
Basic earnings per share, total (in dollars per share) | 0.45 | 0.14 | 1.06 | 0.74 |
Diluted Earnings Per Share: | ||||
Distributed Earnings (in dollars per share) | 0.07 | 0.07 | 0.19 | 0.20 |
Undistributed Earnings (in dollars per share) | 0.38 | 0.07 | 0.87 | 0.54 |
Diluted earnings per share, total (in dollars per share) | 0.45 | 0.14 | 1.06 | 0.74 |
Basic earnings per share (in dollars per share) | 0.45 | 0.14 | 1.06 | 0.74 |
Diluted earnings per share (in dollars per share) | $ 0.45 | $ 0.14 | $ 1.06 | $ 0.74 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation of Income (Loss) Per Shares (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net income | $ 26,210 | $ 8,172 | $ 62,768 | $ 43,858 |
Weighted Average Shares Outstanding (in shares) | 57,915 | 58,917 | 58,599 | 58,974 |
Participating Securities (in shares) | 518 | 579 | 518 | 579 |
Shares for Basic Earnings Per Share (in shares) | 58,433 | 59,496 | 59,117 | 59,553 |
Dilutive Effect of Stock Options (in shares) | 1 | 40 | 5 | 41 |
Shares for Diluted Earnings Per Share (in shares) | 58,434 | 59,536 | 59,122 | 59,594 |
Participating Securities | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net income | $ 200 | $ 100 | $ 600 | $ 400 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of EPS | 0 | 0 | 0 | 0 |
Long-term Debt - Narrative (Det
Long-term Debt - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Debt Instrument [Line Items] | |||
Debt issuance costs | $ 0 | $ 8,757,000 | |
Other Line Of Credit | |||
Debt Instrument [Line Items] | |||
Revolving loan borrowings under the Facility | 0 | ||
Line of credit facility, maximum borrowing capacity | $ 9,400,000 | ||
Other Line Of Credit | Minimum | |||
Debt Instrument [Line Items] | |||
Line of credit facility, interest rate during period (percentage) | 2.00% | ||
Other Line Of Credit | Maximum | |||
Debt Instrument [Line Items] | |||
Line of credit facility, interest rate during period (percentage) | 6.00% | ||
Syndicated Facility Agreement | |||
Debt Instrument [Line Items] | |||
Term loan borrowings outstanding | $ 588,000,000 | ||
Revolving loan borrowings under the Facility | 45,100,000 | ||
Letters of credit outstanding | $ 2,500,000 | ||
Long-term debt, weighted average interest rate, at point in time (percentage) | 3.62% | ||
Syndicated Facility Agreement | Term Loan | |||
Debt Instrument [Line Items] | |||
Debt issuance costs | $ 8,800,000 | ||
Unamortized debt costs | $ 6,800,000 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - USD ($) $ in Millions | Sep. 29, 2019 | Mar. 31, 2019 | Oct. 01, 2017 |
Interest Rate Swap 1 | |||
Derivative [Line Items] | |||
Derivative, notional amount | $ 100 | ||
Interest Rate Swap 2 | |||
Derivative [Line Items] | |||
Derivative, notional amount | $ 150 | ||
Interest rate swap contracts (loss) gain | |||
Derivative [Line Items] | |||
Derivative, notional amount | $ 250 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Value of Derivative Instruments (Details) - Derivative instruments designated as hedging instruments: - Cash Flow Hedging - USD ($) $ in Thousands | Sep. 29, 2019 | Dec. 30, 2018 |
Derivative [Line Items] | ||
Liability Derivatives | $ 0 | |
Other current assets | ||
Derivative [Line Items] | ||
Asset Derivatives | $ 0 | 2,445 |
Accounts Payable and Accrued Liabilities | ||
Derivative [Line Items] | ||
Liability Derivatives | 7,588 | |
Foreign currency contracts gain (loss) | Other current assets | ||
Derivative [Line Items] | ||
Asset Derivatives | 0 | 651 |
Foreign currency contracts gain (loss) | Accounts Payable and Accrued Liabilities | ||
Derivative [Line Items] | ||
Liability Derivatives | 0 | 0 |
Interest rate swap contracts (loss) gain | Other current assets | ||
Derivative [Line Items] | ||
Asset Derivatives | 0 | 1,794 |
Interest rate swap contracts (loss) gain | Accounts Payable and Accrued Liabilities | ||
Derivative [Line Items] | ||
Liability Derivatives | $ 7,588 | |
Interest rate swap contracts (loss) gain | Other Current Liabilities | ||
Derivative [Line Items] | ||
Liability Derivatives | $ 0 |
Derivative Instruments - Cash F
Derivative Instruments - Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Derivative [Line Items] | ||||
Foreign currency contracts, losses reclassified from AOCI | $ 450 | $ 450 | ||
Cash Flow Hedging | Derivative instruments designated as hedging instruments | ||||
Derivative [Line Items] | ||||
(Loss) gain recognized in accumulated other comprehensive income | (941) | $ 286 | (8,914) | $ 2,565 |
Foreign currency contracts gain (loss) | Cash Flow Hedging | Derivative instruments designated as hedging instruments | ||||
Derivative [Line Items] | ||||
(Loss) gain recognized in accumulated other comprehensive income | 627 | (167) | 468 | (167) |
Interest rate swap contracts (loss) gain | Cash Flow Hedging | Derivative instruments designated as hedging instruments | ||||
Derivative [Line Items] | ||||
(Loss) gain recognized in accumulated other comprehensive income | $ (1,568) | $ 453 | $ (9,382) | $ 2,732 |
Shareholders' Equity - Activity
Shareholders' Equity - Activity in Shareholders' Equity (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jul. 01, 2018 | Mar. 31, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance | $ 354,663 | $ 354,663 | ||||||
Net income | $ 26,210 | $ 8,172 | 62,768 | $ 43,858 | ||||
Share repurchases | $ (25,200) | |||||||
Pension liability adjustment | 1,076 | (196) | 1,814 | 1,047 | ||||
Foreign currency translation adjustment | (18,585) | 4,964 | (19,539) | (6,979) | ||||
Cash flow hedge unrealized gain (loss) | (941) | $ 286 | (8,914) | $ 2,565 | ||||
Balance | $ 357,378 | $ 357,378 | ||||||
Common Stock | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance (in shares) | 58,433 | 60,016 | 59,508 | 59,493 | 59,498 | 59,806 | 59,508 | 59,806 |
Balance | $ 5,843 | $ 6,002 | $ 5,951 | $ 5,949 | $ 5,950 | $ 5,981 | $ 5,951 | $ 5,981 |
Stock issuances under employee plans (shares) | 2 | 509 | 10 | 4 | 175 | |||
Stock issuances under employee plans | $ 51 | $ 1 | $ 17 | |||||
Other issuances of common stock (in shares) | (1) | 224 | 2 | 187 | ||||
Other issuances of common stock | $ 22 | $ 1 | $ 19 | |||||
Forfeitures and compensation expense related to stock awards (in shares) | (28) | (225) | (9) | (55) | ||||
Forfeitures and compensation expense related to stock awards | $ (3) | $ (22) | $ (1) | $ (6) | ||||
Share repurchases (in shares) | (1,556) | (615) | ||||||
Share repurchases | $ (156) | $ (61) | ||||||
Balance (in shares) | 58,433 | 58,433 | 60,016 | 59,505 | 59,493 | 59,498 | 58,433 | 59,505 |
Balance | $ 5,843 | $ 5,843 | $ 6,002 | $ 5,951 | $ 5,949 | $ 5,950 | $ 5,843 | $ 5,951 |
ADDITIONAL PAID-IN CAPITAL | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance | 247,221 | 270,655 | 270,269 | 262,285 | 260,115 | 271,271 | 270,269 | 271,271 |
Stock issuances under employee plans | 6 | 379 | 86 | 35 | 102 | |||
Other issuances of common stock | 3,900 | 40 | 4,769 | |||||
Unamortized stock compensation expense related to restricted stock awards | 52 | (3,922) | (40) | (4,788) | ||||
Forfeitures and compensation expense related to stock awards | 1,303 | 1,506 | 29 | 2,929 | 2,135 | 3,185 | ||
Share repurchases | (24,998) | (14,424) | ||||||
Balance | 248,524 | 247,221 | 270,655 | 265,300 | 262,285 | 260,115 | 248,524 | 265,300 |
RETAINED EARNINGS | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance | 251,009 | 225,373 | 222,214 | 215,383 | 198,649 | 187,433 | 222,214 | 187,433 |
Net income | 26,210 | 29,499 | 7,059 | 8,172 | 20,602 | 15,084 | ||
Cash dividends paid | (3,798) | (3,863) | (3,900) | (3,866) | (3,868) | (3,868) | ||
Balance | 273,421 | 251,009 | 225,373 | 219,689 | 215,383 | 198,649 | 273,421 | 219,689 |
PENSION LIABILITY | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance | (42,872) | (43,701) | (43,610) | (55,311) | (58,770) | (56,554) | (43,610) | (56,554) |
Pension liability adjustment | 1,076 | 829 | (91) | (196) | 3,459 | (2,216) | ||
Balance | (41,796) | (42,872) | (43,701) | (55,507) | (55,311) | (58,770) | (41,796) | (55,507) |
FOREIGN CURRENCY TRANSLATION ADJUSTMENT | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance | (102,441) | (106,690) | (101,487) | (90,886) | (70,113) | (78,943) | (101,487) | (78,943) |
Foreign currency translation adjustment | (18,585) | 4,249 | (5,203) | 4,964 | (20,773) | 8,830 | ||
Balance | (121,026) | (102,441) | (106,690) | (85,922) | (90,886) | (70,113) | (121,026) | (85,922) |
CASH FLOW HEDGE | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance | (6,647) | (1,980) | 1,326 | 3,183 | 2,536 | 904 | 1,326 | 904 |
Cash flow hedge unrealized gain (loss) | (941) | (4,667) | (3,306) | 286 | 647 | 1,632 | ||
Balance | $ (7,588) | $ (6,647) | $ (1,980) | $ 3,469 | $ 3,183 | $ 2,536 | $ (7,588) | $ 3,469 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares repurchased | $ 25,200,000 | ||||
Stock options outstanding (in shares) | 27,500 | ||||
Options, exercise price range (dollars per share) | $ 12.43 | ||||
Stock options granted in period (in shares) | 0 | 0 | |||
Stock options exercised in period (in shares) | 10,000 | 20,000 | |||
Stock options forfeited in period (in shares) | 5,000 | 0 | |||
Share-based Payment Arrangement, Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock compensation expense | $ 0 | $ 0 | |||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock compensation expense | $ 2,500,000 | $ 2,900,000 | |||
Stock options granted (in shares) | 224,000 | 194,000 | |||
Unrecognized compensation costs related to unvested restricted stock | $ 4,700,000 | ||||
Restricted Stock | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options, vesting period | 1 year | ||||
Restricted Stock | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options, vesting period | 3 years | ||||
Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock compensation expense | $ 4,000,000 | $ 6,300,000 | |||
Stock options granted (in shares) | 344,500 | ||||
Number of shares that may be issued in settlement of the performance shares to the award recipient, upper limit (percentage) | 200.00% | ||||
Unrecognized compensation expense | $ 4,800,000 | ||||
Performance Shares | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options, vesting period | 1 year | ||||
Performance Shares | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options, vesting period | 3 years | ||||
Restricted Stock and Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense, tax benefit | $ 1,100,000 | ||||
Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share repurchase program, authorized amount | $ 100,000,000 | ||||
Shares repurchased | $ 156,000 | $ 61,000 |
Shareholders' Equity - Restrict
Shareholders' Equity - Restricted Stock Outstanding (Details) - Restricted Stock - $ / shares | 9 Months Ended | |
Sep. 29, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Outstanding (in shares) | 549,000 | |
Granted (in shares) | 224,000 | 194,000 |
Vested (in shares) | (218,000) | |
Forfeited or canceled (in shares) | (37,000) | |
Outstanding (in shares) | 518,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Outstanding, weighted average grant date fair value (in dollars per share) | $ 27.65 | |
Granted, weighted average grant date fair value (in dollars per share) | 17.54 | |
Vested, weighted average grant date fair value (in dollars per share) | 18.27 | |
Forfeited or canceled (in dollars per share) | 20.88 | |
Outstanding, weighted average grant date fair value (in dollars per share) | $ 27.71 |
Shareholders' Equity - Performa
Shareholders' Equity - Performance Shares Outstanding (Details) - Performance Shares | 9 Months Ended |
Sep. 29, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | |
Outstanding (in shares) | shares | 759,500 |
Granted (in shares) | shares | 344,500 |
Vested (in shares) | shares | (472,000) |
Forfeited or canceled (in shares) | shares | (57,000) |
Outstanding (in shares) | shares | 575,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Outstanding, weighted average grant date fair value (in dollars per share) | $ / shares | $ 20.17 |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | 17.54 |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | 18.85 |
Forfeited or canceled (in dollars per share) | $ / shares | 20.42 |
Outstanding, weighted average grant date fair value (in dollars per share) | $ / shares | $ 19.65 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 9 Months Ended |
Sep. 29, 2019 | |
Lessee, Lease, Description [Line Items] | |
Lease renewal term | 5 years |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease contract term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease contract term | 20 years |
Leases - Balance Sheet Informat
Leases - Balance Sheet Information (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Dec. 30, 2018 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 110,051 | $ 0 |
Current portion of operating lease liabilities | 15,780 | 0 |
Operating lease liabilities | 91,480 | $ 0 |
Total operating lease liabilities | 107,260 | |
Property and equipment | 3,951 | |
Accrued expenses | 1,150 | |
Other long-term liabilities | 972 | |
Total finance lease liabilities | $ 2,122 |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 29, 2019USD ($) | Sep. 29, 2019USD ($) | |
Leases [Abstract] | ||
Finance lease cost: Amortization of right-of-use assets | $ 112 | $ 536 |
Finance lease cost: Interest on lease liabilities | 12 | 31 |
Operating lease cost | 6,023 | 17,624 |
Short-term lease cost | 363 | 1,509 |
Variable lease cost | 561 | 1,319 |
Total lease cost | 7,071 | 21,019 |
Operating cash flows from finance leases | 12 | 31 |
Operating cash flows from operating leases | 5,653 | 16,158 |
Financing cash flows from finance leases | 291 | 808 |
Right-of-use assets obtained in exchange for new finance lease liabilities | 252 | 803 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 1,437 | $ 7,973 |
Weighted-average remaining lease term – finance leases (in years) | 2 years 3 months | 2 years 3 months |
Weighted-average remaining lease term – operating leases (in years) | 10 years 9 months | 10 years 9 months |
Weighted-average discount rate – finance leases (percentage) | 2.25% | 2.25% |
Weighted-average discount rate – operating leases (percentage) | 5.85% | 5.85% |
Leases - Maturity of Lease Paym
Leases - Maturity of Lease Payments (Details) $ in Thousands | Sep. 29, 2019USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2019 (excluding the nine months ended September 29, 2019) | $ 5,690 |
2020 | 20,432 |
2021 | 16,257 |
2022 | 13,007 |
2023 | 10,924 |
Thereafter | 83,263 |
Total future minimum lease payments (undiscounted) | 149,573 |
Less: Present value discount | (42,313) |
Total lease liability | 107,260 |
Finance Lease, Liability, Payment, Due [Abstract] | |
2019 (excluding the nine months ended September 29, 2019) | 304 |
2020 | 1,141 |
2021 | 469 |
2022 | 174 |
2023 | 84 |
Thereafter | 14 |
Total future minimum lease payments (undiscounted) | 2,186 |
Less: Present value discount | (64) |
Total lease liability | $ 2,122 |
Leases - Minimum Rent Commitmen
Leases - Minimum Rent Commitments Under Operating Leases (Details) $ in Thousands | Dec. 30, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 26,113 |
2020 | 22,066 |
2021 | 16,453 |
2022 | 8,692 |
2023 | 5,186 |
Thereafter | 15,237 |
Total minimum rent commitments | $ 93,747 |
Employee Benefit Plans - Net Pe
Employee Benefit Plans - Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Nora Defined Benefit Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 213 | $ 134 | $ 646 | $ 134 |
Interest cost | 170 | 99 | 515 | 99 |
Net periodic benefit cost | 383 | 233 | 1,161 | 233 |
Foreign Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 181 | 178 | 550 | 547 |
Interest cost | 1,223 | 1,270 | 3,770 | 3,941 |
Expected return on assets | (1,378) | (1,503) | (4,251) | (4,667) |
Amortization of prior service cost | 16 | (11) | 48 | 4 |
Amortization of net actuarial losses | 240 | 270 | 742 | 839 |
Net periodic benefit cost | 282 | 204 | 859 | 664 |
United States | Salary Continuation Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 288 | 271 | 865 | 812 |
Amortization of net actuarial losses | 94 | 116 | 281 | 348 |
Net periodic benefit cost | $ 382 | $ 387 | $ 1,146 | $ 1,160 |
Acquisition of Nora - Narrative
Acquisition of Nora - Narrative (Details) $ in Thousands, € in Millions | Aug. 07, 2018USD ($) | Aug. 07, 2018EUR (€) | Jun. 30, 2019USD ($) | Sep. 29, 2019USD ($) | Sep. 30, 2018USD ($) |
Business Acquisition [Line Items] | |||||
Payments to acquire businesses, net of cash acquired | $ 0 | $ 400,697 | |||
Nora | |||||
Business Acquisition [Line Items] | |||||
Purchase price | $ 447,200 | € 385.1 | |||
Cash acquired from acquisition | 46,500 | 40 | |||
Payments to acquire businesses, net of cash acquired | 400,700 | € 345.1 | |||
Adjustment, deferred tax liabilities | $ 17,200 | ||||
Goodwill, purchase accounting adjustments | $ 17,200 | ||||
Intangible assets acquired | 103,300 | ||||
Step-up of inventory | 26,600 | ||||
Nora | Developed Technology Rights | |||||
Business Acquisition [Line Items] | |||||
Intangible assets acquired | $ 39,100 | ||||
Weighted average useful life | 7 years | 7 years | |||
Nora | Order or Production Backlog | |||||
Business Acquisition [Line Items] | |||||
Intangible assets acquired | $ 3,400 | ||||
Weighted average useful life | 6 months | 6 months | |||
Nora | Trademarks and Trade Names | |||||
Business Acquisition [Line Items] | |||||
Intangible assets acquired | $ 60,800 |
Acquisition of Nora - Schedule
Acquisition of Nora - Schedule of Assets Acquired and Liabilities Assumed (Details) - Nora $ in Thousands | Aug. 07, 2018USD ($) |
Business Acquisition [Line Items] | |
Assets acquired (excluding goodwill) | $ 359,335 |
Liabilities assumed | (114,049) |
Net assets acquired | 245,286 |
Purchase price | 447,192 |
Goodwill, excess of purchase price | $ 201,906 |
Acquisition of Nora - Pro Forma
Acquisition of Nora - Pro Forma Information (Details) - Nora $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Business Acquisition [Line Items] | |
Revenue | $ 1,001,919 |
Net income | $ 74,390 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 9 Months Ended |
Sep. 29, 2019 | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Number of reportable segments | 1 |
Segment Information - Operating
Segment Information - Operating Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | Dec. 30, 2018 | |
Segment Reporting Information [Line Items] | |||||
Net Sales | $ 348,352 | $ 318,325 | $ 1,003,547 | $ 842,514 | |
Depreciation and amortization | 10,880 | 9,877 | 33,578 | 27,067 | |
Total assets | 1,424,537 | 1,424,537 | $ 1,284,644 | ||
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 348,352 | 318,325 | 1,003,547 | 842,514 | |
Depreciation and amortization | 9,528 | 8,698 | 29,650 | 24,511 | |
Total assets | 1,520,316 | 1,520,316 | |||
AMERICAS | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 195,900 | 182,660 | 563,776 | 494,265 | |
Depreciation and amortization | 3,238 | 3,373 | 9,789 | 10,464 | |
Total assets | 704,088 | 704,088 | |||
EUROPE | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 106,115 | 88,223 | 294,830 | 220,645 | |
Depreciation and amortization | 4,255 | 3,181 | 13,586 | 7,483 | |
Total assets | 619,307 | 619,307 | |||
ASIA- PACIFIC | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 46,337 | 47,442 | 144,941 | 127,604 | |
Depreciation and amortization | 2,035 | $ 2,144 | 6,275 | $ 6,564 | |
Total assets | $ 196,921 | $ 196,921 |
Segment Information - Operati_2
Segment Information - Operating Segments Depreciation, Amortization, and Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | $ 10,880 | $ 9,877 | $ 33,578 | $ 27,067 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 9,528 | 8,698 | 29,650 | 24,511 |
Corporate, Non-Segment | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | $ 1,352 | $ 1,179 | $ 3,928 | $ 2,556 |
Segment Information - Reconcili
Segment Information - Reconciliation of Segment Assets (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Dec. 30, 2018 |
Total assets | $ 1,424,537 | $ 1,284,644 |
Operating Segments | ||
Total assets | 1,520,316 | |
Corporate, Non-Segment | ||
Total assets | 141,286 | |
Eliminations | ||
Total assets | $ (237,065) |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 29, 2019 | Sep. 30, 2018 | |
Supplemental Cash Flow Information [Abstract] | ||
Cash payments for interest | $ 18.1 | $ 7.4 |
Income tax payments, net of refunds | $ 26.5 | $ 21.2 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 29, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate, percent | 22.00% | 24.30% |
Unrecognized tax benefits, period decrease | $ 2.2 | |
Unrecognized tax benefits | 25.9 | |
Decrease in deferred tax assets | $ 2.8 |
Items Reclassified From Other_2
Items Reclassified From Other Comprehensive Income (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 29, 2019 | Sep. 30, 2018 | |
Other Expense | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Reclassification adjustment from AOCI | $ 1.1 | $ 1.2 |
Restructuring and Asset Impai_3
Restructuring and Asset Impairment Charges - Narrative (Details) $ in Thousands | Dec. 29, 2018 | Sep. 29, 2019USD ($) | Dec. 30, 2018USD ($) | Sep. 30, 2018USD ($) | Sep. 29, 2019USD ($) | Sep. 30, 2018USD ($) |
Restructuring Cost and Reserve [Line Items] | ||||||
Number of employees | 200 | |||||
Restructuring charges | $ 20,500 | |||||
Severance costs | 10,800 | |||||
Asset impairment charges | 8,600 | |||||
Other restructuring costs | $ 1,100 | |||||
Estimated restructuring costs remaining | $ 12,000 | $ 12,000 | ||||
Expected savings from restructuring | 12,000 | 12,000 | ||||
Restructuring Charges | 672 | $ 0 | 672 | $ 0 | ||
Workforce Reduction | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Estimated restructuring costs remaining | $ 10,800 | $ 10,800 |
Restructuring and Asset Impai_4
Restructuring and Asset Impairment Charges - Restructuring Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Restructuring Reserve [Roll Forward] | ||||
Charged to Expenses 2019 | $ 672 | $ 0 | $ 672 | $ 0 |
2018 Restructuring Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at Beginning of Year | 11,907 | |||
Deductions 2019 | 6,262 | |||
Charged to Expenses 2019 | 672 | |||
Balance at September 29, 2019 | 6,317 | 6,317 | ||
2018 Restructuring Plan | Workforce Reduction | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at Beginning of Year | 10,763 | |||
Deductions 2019 | 5,892 | |||
Charged to Expenses 2019 | 0 | |||
Balance at September 29, 2019 | 4,871 | 4,871 | ||
2018 Restructuring Plan | Other Exit Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at Beginning of Year | 1,144 | |||
Deductions 2019 | 370 | |||
Charged to Expenses 2019 | 672 | |||
Balance at September 29, 2019 | $ 1,446 | $ 1,446 |