Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 29, 2019 | Feb. 18, 2020 | Jun. 28, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 29, 2019 | ||
Document Transition Report | false | ||
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 | ||
Title of 12(b) Security | Common Stock, $0.10 Par Value Per Share | ||
Security Exchange Name | NASDAQ | ||
Trading Symbol | TILE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 879,270,883 | ||
Entity Common Stock, Shares Outstanding | 58,299,201 | ||
Entity Central Index Key | 0000715787 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-29 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2019 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Net sales | $ 1,343,029 | $ 1,179,573 | $ 996,443 |
Cost of sales | 817,575 | 755,216 | 610,422 |
Gross profit on sales | 525,454 | 424,357 | 386,021 |
Selling, general and administrative expenses | 381,604 | 327,449 | 267,151 |
Restructuring, asset impairment and other charges | 12,947 | 20,529 | 7,299 |
Operating income | 130,903 | 76,379 | 111,571 |
Interest expense | 25,656 | 15,436 | 7,128 |
Other expense | 3,431 | 5,952 | 3,904 |
Income before income tax expense | 101,816 | 54,991 | 100,539 |
Income tax expense | 22,616 | 4,738 | 47,293 |
Net income | $ 79,200 | $ 50,253 | $ 53,246 |
Net income per share – basic (in dollars per share) | $ 1.34 | $ 0.84 | $ 0.86 |
Net income per share – diluted (in dollars per share) | $ 1.34 | $ 0.84 | $ 0.86 |
Basic weighted average common shares outstanding (in shares) | 58,943 | 59,544 | 61,996 |
Diluted weighted average common shares outstanding (in shares) | 58,948 | 59,566 | 62,040 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 79,200 | $ 50,253 | $ 53,246 |
Other comprehensive income (loss), after tax | |||
Foreign currency translation adjustment | (11,652) | (22,544) | 31,579 |
Cash flow hedge (losses) gains | (5,489) | 422 | 904 |
Pension liability adjustment | (13,090) | 12,944 | (1,692) |
Comprehensive income | $ 48,969 | $ 41,075 | $ 84,037 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 29, 2019 | Dec. 30, 2018 |
Current assets | ||
Cash and cash equivalents | $ 81,301 | $ 80,989 |
Accounts receivable, net | 177,482 | 179,004 |
Inventories, net | 253,584 | 258,657 |
Prepaid expenses and other current assets | 35,768 | 40,229 |
Total current assets | 548,135 | 558,879 |
Property, plant and equipment, net | 324,585 | |
Property, plant and equipment, net | 292,888 | |
Operating lease right-of-use assets | 107,044 | |
Deferred tax asset | 19,683 | 15,601 |
Goodwill and intangibles, net | 346,474 | 343,542 |
Other assets | 77,128 | 73,734 |
Total assets | 1,423,049 | 1,284,644 |
Current liabilities | ||
Accounts payable | 75,687 | 66,301 |
Accrued expenses | 140,652 | 125,971 |
Current portion of operating lease liabilities | 15,914 | |
Current portion of long-term debt | 31,022 | 31,315 |
Total current liabilities | 263,275 | 223,587 |
Long-term debt | 565,178 | 587,266 |
Operating lease liabilities | 91,829 | |
Deferred income taxes | 35,550 | 26,488 |
Other long-term liabilities | 99,015 | 92,640 |
Total liabilities | 1,054,847 | 929,981 |
Commitments and contingencies | ||
Shareholders’ equity | ||
Preferred stock | 0 | 0 |
Common stock | 5,842 | 5,951 |
Additional paid-in capital | 250,306 | 270,269 |
Retained earnings | 286,056 | 222,214 |
Accumulated other comprehensive loss – foreign currency translation | (113,139) | (101,487) |
Accumulated other comprehensive income – cash flow hedge | (4,163) | 1,326 |
Accumulated other comprehensive loss – pension liability | (56,700) | (43,610) |
Total shareholders’ equity | 368,202 | 354,663 |
Total liabilities and shareholders’ equity | $ 1,423,049 | $ 1,284,644 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
OPERATING ACTIVITIES: | |||
Net income | $ 79,200 | $ 50,253 | $ 53,246 |
Adjustments to reconcile income to cash provided by operating activities | |||
Depreciation and amortization | 44,932 | 39,084 | 30,261 |
Stock compensation amortization expense | 8,691 | 14,496 | 7,247 |
Loss on disposal of impaired assets | 0 | 8,569 | 0 |
Enactment of U.S. Tax Cuts and Jobs Act expenses (benefit) | 0 | (6,739) | 15,174 |
Bad debt expense | 1,206 | 222 | 219 |
Deferred income taxes and other | (9,497) | (11,709) | 8,154 |
Amortization of acquired intangible assets | 5,903 | 5,387 | 0 |
Amortization of acquired inventory step-up | 0 | 26,666 | 0 |
Working capital changes: | |||
Accounts receivable | (930) | (10,113) | (10,313) |
Inventories | 2,573 | (18,784) | (13,629) |
Prepaid expenses and other current assets | (9,691) | (15,501) | 1,019 |
Accounts payable and accrued expenses | 19,381 | 9,936 | 11,975 |
Cash provided by operating activities | 141,768 | 91,767 | 103,353 |
INVESTING ACTIVITIES: | |||
Capital expenditures | (74,647) | (54,857) | (30,474) |
Cash paid for business, net of cash acquired | 0 | (400,697) | 0 |
Other | 425 | (131) | (614) |
Cash used in investing activities | (74,222) | (455,685) | (31,088) |
FINANCING ACTIVITIES: | |||
Revolving loan borrowing | 90,000 | 17,000 | 25,000 |
Revolving loan repayments | (87,664) | (64,504) | (57,014) |
Term loan borrowing | 0 | 462,847 | 0 |
Term loan repayments | (24,028) | (14,162) | (15,000) |
Repurchase of common stock | (25,154) | (14,485) | (91,576) |
Dividends paid | (15,358) | (15,471) | (15,487) |
Tax withholding payments for share-based compensation | (3,278) | (1,187) | (1,479) |
Debt issuance costs | 0 | (8,806) | (1,427) |
Proceeds from issuance of common stock | 60 | 294 | 0 |
Other | (1,255) | 0 | 0 |
Cash (used in) provided by financing activities | (66,677) | 361,526 | (156,983) |
Net cash provided by (used in) operating, investing and financing activities | 869 | (2,392) | (84,718) |
Effect of exchange rate changes on cash | (557) | (3,656) | 6,083 |
CASH AND CASH EQUIVALENTS: | |||
Net increase (decrease) | 312 | (6,048) | (78,635) |
Balance, beginning of year | 80,989 | 87,037 | 165,672 |
Balance, end of year | $ 81,301 | $ 80,989 | $ 87,037 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 29, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations The Company is a recognized leader in the worldwide commercial interiors market, offering modular carpet, luxury vinyl tile (“LVT”) and rubber flooring products. The Company manufactures modular carpet focusing on the high quality, designer-oriented sector of the market, sources LVT from a third party and focuses on the same sector of the market, and provides specialized carpet replacement, installation and maintenance services. Additionally, the Company offers Intersept , a proprietary antimicrobial used in a number of interior finishes. The Company also offers resilient rubber flooring since its acquisition of nora Holding GmbH on August 7, 2018. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. All of our subsidiaries are wholly-owned, and we are not a party to any joint venture, partnership or other variable interest entity that would potentially qualify for consolidation. All material intercompany accounts and transactions are eliminated. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Examples include provisions for returns, bad debts, product claims reserves, rebates, inventory obsolescence and the length of product life cycles, accruals associated with restructuring activities, income tax exposures and valuation allowances, environmental liabilities, and the carrying value of goodwill and property and equipment. Actual results could vary from these estimates. Revenue Recognition Effective January 1, 2018, the Company adopted a new accounting standard with regard to revenue from customers. The core principle of this standard is that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principle, the guidance provides that an entity should apply the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the entity satisfies a performance obligation. The Company elected the modified retrospective approach for adoption of this new standard, as is allowed by the standard. The Company did not have any significant impact from this standard as of the date of the adoption. Revenue Recognized from Contracts with Customers Contracts with customers typically take the form of invoices for purchase of materials from the Company. Customer payment terms vary by region and are typically less than 60 days. The performance obligation is the delivery of these materials to the customer’s control. During 2019 and 2018 , approximately 98% and 97% of the Company’s total revenue, respectively, was produced from the sale of carpet, resilient flooring, rubber flooring, and related products (TacTiles installation materials, etc.) and the revenue from sales of these products is recognized upon shipment, or in certain cases, upon delivery to the customer. The transaction price for these sales is readily identifiable. The remaining revenue for 2019 and 2018 of 2% and 3% , respectively, was generated from the installation of carpet and other flooring-related material. The remaining revenue generated by the Company is for contracts to sell and install carpet and related products at customer locations. For projects underway, the Company recognized installation revenue over time as the customer simultaneously received and consumed the benefit of the services. The installation of the carpet and related products is a separate performance obligation from the sale of carpet. The majority of these projects are completed within 5 days of the start of installation. The transaction price for these sale and installation contracts is readily determinable between flooring material and installation services and is specifically identified in the contract with the customer. The Company has utilized the portfolio approach to its contracts with customers, as its contracts with customers have similar characteristics and it is reasonable to expect that the effects from applying this approach are not materially different from applying the accounting standard to individual contracts. The Company does not have any other significant revenue streams outside of these sales of flooring material, and the sale and installation of flooring material, as described above. The Company does not record taxes collected from customers and remitted to governmental authorities on a gross basis. Performance Obligations As noted above, the Company primarily generates revenue through the sale of flooring material to end users either upon shipment or upon arrival of the product at its destination. In these instances, there typically is no other obligation to the customers other than the delivery of flooring material with the exception of warranty. The Company does offer a warranty to its customers which guarantees certain on-floor performance characteristics and warrants against manufacturing defects. The warranty is not a service warranty, and there is no ability to separate the warranty obligation from the sale of the flooring or purchase them separately. The Company’s incidence of warranty claims is extremely low, with less than 0.5% of revenue in claims on an annual basis for the last three fiscal years. Given the nature of the warranty as well as the financial impact, the Company has determined that there is no need to identify this warranty as a separate performance obligation and the Company will continue to account for warranty on an accrual basis. For the Company’s installation business, the sales of carpet and other flooring materials and installation services are separate deliverables which under the revenue recognition requirements should be characterized as separate performance obligations. Prior to the adoption of the new accounting standard, the Company historically had not separated these obligations and had accounted for these installation projects on a completed contract basis. The nature of the installation projects is such that the vast majority – an amount in excess of 90% of these installation projects – are completed in less than 5 days. The Company’s largest installation customers are retail and corporate customers, and these are on a project-by-project basis and are short-term installations. The Company has evaluated these projects at the end of the reporting period and recorded revenue in accordance with the accounting standards for projects which were underway as of the end of 2019 . Costs to Obtain Contracts The Company pays sales commissions to many of its sales personnel based upon their selling activity. These are direct costs associated with obtaining the contracts and are expensed as the revenue is earned. As these commissions become payable upon shipment (or in certain cases delivery) of product, the commission is earned as the revenue is recognized. There are no other material costs the Company incurs as part of obtaining the sales contract. Shipping and Handling Shipping and handling fees billed to customers are classified in net sales in the consolidated statements of operations. Shipping and handling costs incurred are classified in cost of sales in the consolidated statements of operations. Research and Development Research and development costs are expensed as incurred and are included in selling, general and administrative expenses and cost of sales in the consolidated statements of operations. Research and development expense was $17.8 million , $16.4 million , and $14.0 million for the years 2019 , 2018 and 2017 , respectively. Cash, Cash Equivalents and Short-Term Investments Highly liquid investments with insignificant interest rate risk and with original maturities of three months or less are classified as cash and cash equivalents. Investments with maturities greater than three months and less than one year are classified as short-term investments. Significant concentrations of credit risk may arise from the Company’s cash maintained at various banks, as from time to time cash balances may exceed the FDIC limits. The Company did no t hold any significant amounts of cash equivalents and short-term investments at December 29, 2019 and December 30, 2018 . Cash payments for interest amounted to approximately $22.7 million , $13.8 million , and $6.3 million for the years 2019 , 2018 , and 2017 , respectively. 2019 includes cash payments for interest related to the Company’s finance lease liabilities. Income tax payments amounted to approximately $34.8 million , $29.5 million and $19.1 million for the years 2019 , 2018 and 2017 , respectively. During the years 2019 , 2018 and 2017 , the Company received income tax refunds of $1.9 million , $0.8 million and $0.1 million , respectively. Inventories Inventories are carried at the lower of cost (standards approximating the first-in, first-out method) or net realizable value. Costs included in inventories are based on invoiced costs and/or production costs, as applicable. Included in production costs are material, direct labor and allocated overhead. The Company writes down inventories for the difference between the carrying value of the inventories and their estimated net realizable value. If actual market conditions are less favorable than those projected by management, additional write-downs may be required. Management estimates its reserves for inventory obsolescence by continuously examining its inventories to determine if there are indicators that carrying values exceed net realizable values. Experience has shown that significant indicators that could require the need for additional inventory write-downs are the age of the inventory, the length of its product life cycles, anticipated demand for the Company’s products, and current economic conditions. While management believes that adequate write-downs for inventory obsolescence have been made in the consolidated financial statements, consumer tastes and preferences will continue to change and the Company could experience additional inventory write-downs in the future. Rebates The Company has agreements to receive cash consideration from certain of its vendors, including rebates and cooperative marketing reimbursements. The amounts received from its vendors are generally presumed to be a reduction of the prices the Company pays for their products and, therefore, such amounts are reflected as either a reduction of cost of sales in the accompanying consolidated statements of operations, or, if the product inventory is still on hand at the reporting date, it is reflected as a reduction of “Inventories” on the accompanying consolidated balance sheets. Vendor rebates are typically dependent upon reaching minimum purchase thresholds. The Company evaluates the likelihood of reaching purchase thresholds using past experience and current year forecasts. When rebates can be reasonably estimated and receipt becomes probable, the Company records a portion of the rebate as the Company makes progress towards the purchase threshold. When the Company receives direct reimbursements for costs incurred in marketing the vendor’s product or service, the amount received is recorded as an offset to selling, general and administrative expenses in the accompanying consolidated statements of operations. Leases 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, which is based on the estimated rate for a fully collateralized borrowing that fully amortizes over a similar lease term at the commencement date and for the applicable geographical region. 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. We also made an accounting policy election not to separate lease and non-lease components for all asset classes and will account for the lease payments as a single component. Property and Equipment and Long-Lived Assets Property and equipment are carried at cost. Depreciation is computed using the straight-line method over the following estimated useful lives: buildings and improvements – ten to forty years ; and furniture and equipment – three to twelve years . Interest costs for the construction/development of certain long-term assets are capitalized and amortized over the related assets’ estimated useful lives. The Company capitalized net interest costs on qualifying expenditures of approximately $2.1 million , $0.7 million , and $0.6 million for the fiscal years 2019 , 2018 and 2017 , respectively. Depreciation expense amounted to approximately $41.5 million , $37.6 million , and $29.5 million for the years 2019 , 2018 , and 2017 respectively. Depreciation expense recorded to costs of sales in the consolidated statements of operations was $26.3 million , $21.8 million , and $14.8 million for the years 2019 , 2018 , and 2017 , respectively. Depreciation expense recorded in SG&A expenses in the consolidated statements of operations was $15.2 million , $15.8 million , and $14.7 million , for the years 2019 , 2018 , and 2017 , respectively. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the sum of the expected future undiscounted cash flow is less than the carrying amount of the asset, a loss is recognized for the difference between the fair value and carrying value of the asset. Repair and maintenance costs are charged to operating expense as incurred. Goodwill and Other Intangible Assets In connection with the nora acquisition on August 7, 2018, the Company recognized goodwill of $201.9 million and acquired intangible assets of $103.3 million . Goodwill includes all purchase price accounting adjustments of approximately $18.6 million related to additional liabilities that existed at the acquisition date. Goodwill and intangible assets were assigned pro-rata to the Company’s three operating segments. None of the goodwill is expected to be deductible for income tax purposes. As of December 29, 2019 , and December 30, 2018 , the net carrying amount of goodwill was $257.4 million and $245.8 million , respectively. Other intangible assets were $89.1 million and $97.7 million as of December 29, 2019 and December 30, 2018 , respectively. Amortization expense related to intangible assets during the years 2019 , 2018 and 2017 was $5.9 million , $5.4 million and $0.7 million , respectively and are recorded in cost of sales in the consolidated statements of operations. During the fourth quarters of 2019 , 2018 and 2017 , as of the last day of the third quarter of each year, the Company performed the annual goodwill impairment test. The Company performs this test at the reporting unit level, which is one level below the segment level for the Flooring segment. In performing the impairment testing, the Company prepared valuations of reporting units on both a market comparable methodology and an income methodology, and those valuations were compared with the respective carrying values of the reporting units to determine whether any goodwill impairment existed. In preparing the valuations, past, present and future expectations of performance were considered. The annual testing indicated no potential of goodwill impairment in any of the years presented. Each of the Company’s reporting units maintained fair values in excess of their respective carrying values as of the measurement date, and therefore no impairment was indicated as a result of the impairment testing. As of December 29, 2019 , if the Company’s estimates of the fair values of its reporting units which carry a goodwill balance were 10% lower, the Company still believes no goodwill impairment would have existed. However, the Company has experienced significant competitive pressure in fiscal 2019 along with volatility in the company stock price. As such, it is reasonably possible that such circumstances along with a recent acquisition may together warrant the need to write down the value of goodwill in the near term. The changes in the carrying amounts of goodwill for the years ended December 29, 2019 and December 30, 2018 are as follows (in thousands): BALANCE DECEMBER 31, 2018 ACQUISITIONS PURCHASE PRICE ACCOUNTING ADJUSTMENTS IMPAIRMENT FOREIGN CURRENCY TRANSLATION BALANCE DECEMBER 29, 2019 (in thousands) $ 245,815 $ — $ 17,181 $ — $ (5,557 ) $ 257,439 BALANCE JANUARY 1, 2018 ACQUISITIONS PURCHASE PRICE ACCOUNTING ADJUSTMENTS IMPAIRMENT FOREIGN CURRENCY TRANSLATION BALANCE DECEMBER 30, 2018 (in thousands) $ 68,754 $ 183,348 $ 1,377 — $ (7,664 ) $ 245,815 Product Warranties The Company typically provides limited warranties with respect to certain attributes of its carpet products (for example, warranties regarding excessive surface wear, edge ravel and static electricity) for periods ranging from ten to twenty years , depending on the particular carpet product and the environment in which it is to be installed. Similar limited warranties are provided on certain attributes of its rubber and LVT products, typically for a period of 5 to 15 years . The Company typically warrants that services performed will be free from defects in workmanship for a period of one year following completion. In the event of a breach of warranty, the remedy typically is limited to repair of the problem or replacement of the affected product. The Company records a provision related to warranty costs based on historical experience and periodically adjusts these provisions to reflect changes in actual experience. Warranty and sales allowance reserves amounted to $3.9 million and $3.5 million as of December 29, 2019 and December 30, 2018 , respectively, and are included in “Accrued Expenses” in the accompanying consolidated balance sheets. Income Taxes The Company accounts for income taxes under an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. In estimating future tax consequences, the Company generally considers all expected future events other than enactments of changes in tax laws or rates. The effect on deferred tax assets and liabilities of a change in tax rates will be recognized as income or expense in the period that includes the enactment date. The Company records a valuation allowance to reduce its deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will expire before realization of the benefit or that future deductibility is not probable. The ultimate realization of the deferred tax assets depends on the ability to generate sufficient taxable income of the appropriate character in the future. This requires us to use estimates and make assumptions regarding significant future events such as the taxability of entities operating in the various taxing jurisdictions. For uncertain tax positions, the Company applies the provisions of relevant authoritative guidance, which requires application of a “more likely than not” threshold to the recognition and derecognition of tax positions. The Company’s ongoing assessments of the more likely than not outcomes of tax authority examinations and related tax positions require significant judgment and can increase or decrease the Company’s effective tax rate as well as impact operating results. For further information, see Note 16 entitled “ Income Taxes .” Fair Values of Financial Instruments Fair values of cash and cash equivalents and short-term debt approximate cost due to the short period of time to maturity. Fair values of debt are based on quoted market prices or pricing models using current market rates and classified as level 2 within the fair value hierarchy. Translation of Foreign Currencies The financial position and results of operations of the Company’s foreign subsidiaries are measured using local currencies as the functional currency. Assets and liabilities of these subsidiaries are translated into U.S. dollars at the exchange rate in effect at each year-end. Income and expense items are translated at average exchange rates for the year. The resulting translation adjustments are recorded in the foreign currency translation adjustment account. In the event of a divestiture of a foreign subsidiary, the related foreign currency translation results are reversed from equity to income. Foreign exchange translation gains (losses) were ($11.7) million , ($22.5) million , and $31.6 million for the years 2019 , 2018 and 2017 , respectively. Earnings per Share Basic earnings per share is computed based on the average number of common shares outstanding. Diluted earnings per share reflects the increase in average common shares outstanding that would result from the assumed exercise of outstanding stock options, calculated using the treasury stock method. Stock-Based Compensation The Company has stock-based employee compensation plans, which are described more fully in Note 13 entitled “ Shareholders' Equity .” The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option pricing model. However, there were no stock options granted in 2019 , 2018 or 2017 . The Company recognizes expense related to its restricted stock and performance share grants based on the grant date fair value of the shares awarded, as determined by its market price at date of grant. Derivative Financial Instruments Derivatives are recognized on the balance sheet at fair value. For derivatives that meet the criteria as designated cash flow hedges, the effective portion of changes in the fair value of the derivative are recognized in other comprehensive income until the hedged item is recognized in earnings. Derivative liabilities are recorded in accrued expenses and derivative assets are recorded in other current assets in the consolidated balance sheet. Pension Benefits Net pension expense recorded is based on, among other things, assumptions about the discount rate, estimated return on plan assets and salary increases. While the Company believes these assumptions are reasonable, changes in these and other factors and differences between actual and assumed changes in the present value of liabilities or assets of the Company’s plans above certain thresholds could cause net annual expense to increase or decrease materially from year to year. The actuarial assumptions used in the Company’s salary continuation plan and foreign defined benefit plans reporting are reviewed periodically and compared with external benchmarks to ensure that they appropriately account for our future pension benefit obligation. The expected long-term rate of return on plan assets assumption is based on weighted average expected returns for each asset class. Expected returns reflect a combination of historical performance analysis and the forward-looking views of the financial markets, and include input from actuaries, investment service firms and investment managers. Allowances for Doubtful Accounts The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of customers to make required payments. Estimating this amount requires the Company to analyze the financial strengths of its customers. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. By its nature, such an estimate is highly subjective, and it is possible that the amount of accounts receivable that the Company is unable to collect may be different than the amount initially estimated. Reclassifications Certain prior period amounts have been reclassified to conform to current year financial statement presentation. These reclassifications had no effect on reported income, comprehensive income, cash flows, or shareholders’ equity as previously reported. Fiscal Year The Company’s fiscal year is the 52 or 53 week period ending on the Sunday nearest December 31. All references herein to “ 2019 ,” “ 2018 ,” and “ 2017 ,” mean the fiscal years ended December 29, 2019 , December 30, 2018 , and December 31, 2017 , respectively. Fiscal years 2019 , 2018 and 2017 were each comprised of 52 weeks. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 29, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS Recently Adopted Accounting Pronouncements On December 31, 2018, the Company adopted Accounting Standards Codification (“ASC”) Topic 842, “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 Company adopted the new lease standard using the modified retrospective approach and recorded operating lease right-of-use assets and operating lease liabilities for approximately $115.0 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 11 entitled “ Leases ” for additional information. On December 31, 208 the Company adopted, Accounting Standards Update (“ASU”) 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” which addresses a narrow-scope financial reporting issue that arose as a consequence of the U.S. Tax Cuts and Jobs Act. The former guidance required 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 was 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 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. On December 31, 2018, the Company adopted ASU 2018-07, “Improvements to Nonemployee Share-Based Payment Accounting.” This standard requires that the accounting treatment for non-employee share-based payments for goods or services be consistent with current accounting 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 also eliminates the current GAAP requirement to reassess the classification of non-employee share-based payments awards upon vesting. 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 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes.” The amendments in this update simplify the accounting for income taxes by removing certain exceptions to the general principles in ASC Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of ASC Topic 740 by clarifying and amending existing guidance. This new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. 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 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. 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. 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 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. The Company does not anticipate that the adoption of the new standard 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 does not expect the adoption of this ASU to have a significant impact on its consolidated financial statements, due to the short-term nature of its trade accounts receivable. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 29, 2019 | |
Revenues [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION Effective January 1, 2018, the Company adopted a new accounting standard regarding revenue recognition from contracts with customers. The Company elected the modified retrospective approach for adoption of this new standard. The Company did not have any significant impact from this standard as of the date of the adoption. Revenue from sales of carpet, modular resilient flooring, rubber flooring, and other flooring-related material was approximately 98% of total revenue for 2019 . The remaining 2% of revenue was generated from the installation of carpet and other flooring-related material. Disaggregation of Revenue For 2019 , revenue from the Company’s customers is broken down by geography as follows: Geography Percentage of Net Sales Americas 56.4% Europe 29.3% Asia-Pacific 14.3% |
Receivables
Receivables | 12 Months Ended |
Dec. 29, 2019 | |
Receivables [Abstract] | |
Receivables | RECEIVABLES The Company has adopted credit policies and standards intended to reduce the inherent risk associated with potential increases in its concentration of credit risk due to increasing trade receivables from sales to owners and users of commercial office facilities and with specifiers such as architects, engineers and contracting firms. Management believes that credit risks are further moderated by the diversity of its end customers and geographic sales areas. The Company performs ongoing credit evaluations of its customers’ financial condition and requires collateral as deemed necessary. The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of customers to make required payments. If the financial condition of its customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. As of December 29, 2019 and December 30, 2018 , the allowance for bad debts amounted to $3.8 million and $3.5 million , respectively, for all accounts receivable of the Company. Reserves for warranty and returns allowances amounted to $3.9 million and $3.5 million as of December 29, 2019 and December 30, 2018 , respectively. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 29, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS Fair Value Measurements of Plan Assets Accounting standards establish a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure estimated fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy under applicable accounting standards are described below: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 Inputs to the valuation methodology include: • quoted prices for similar assets in active markets; • quoted prices for identical or similar assets in inactive markets; • inputs other than quoted prices that are observable for the asset; and • inputs that are derived principally or corroborated by observable data by correlation or other Level 3 Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. As of December 29, 2019 and December 30, 2018 , the Company had approximately $23.3 million and $24.3 million , respectively, of Company-owned life insurance, which is measured on a readily determinable cash surrender value on a recurring basis. This Company-owned life insurance is classified as a Level 2 asset within the fair value hierarchy. Due to the short maturity of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, their carrying values approximate fair value. As of December 29, 2019 , the carrying value of the Company’s borrowings under its Syndicated Credit Facility approximates fair value as the Facility bears interest rates that are similar to existing market rates. The fair value of the Company’s derivative instruments is determined using discounted cash flow valuation models. The significant inputs used in these models are readily available in public markets, or can be derived from other observable market transactions, and therefore are classified as Level 2 within the fair value hierarchy. |
Inventories
Inventories | 12 Months Ended |
Dec. 29, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Inventories are summarized as follows: END OF FISCAL YEAR 2019 2018 (in thousands) Finished goods $ 184,336 $ 180,847 Work-in-process 13,152 17,762 Raw materials 56,096 60,048 Inventory, Net $ 253,584 $ 258,657 Reserves for inventory obsolescence amounted to $28.3 million and $28.1 million as of December 29, 2019 and December 30, 2018 , respectively, and have been netted against amounts presented above. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 29, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consisted of the following: END OF FISCAL YEAR 2019 2018 (in thousands) Land $ 17,777 $ 16,870 Buildings 148,833 143,725 Equipment (1) 615,149 565,251 781,759 725,846 Accumulated depreciation and amortization (2) (457,174 ) (432,958 ) Property, plant and equipment $ 324,585 $ 292,888 (1) 2019 includes $5.9 million of leased equipment. (2) 2019 includes $0.9 million of accumulated amortization on leased equipment. The estimated cost to complete construction-in-progress at December 29, 2019 , was approximately $57.2 million . |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 29, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | ACCRUED EXPENSES Accrued expenses are summarized as follows: END OF FISCAL YEAR 2019 2018 (in thousands) Compensation $ 86,696 $ 80,877 Interest 1,485 374 Restructuring 11,445 11,907 Taxes 16,809 14,539 Accrued purchases 4,910 5,329 Warranty and sales allowances 3,853 3,495 Other 15,454 9,450 Accrued Expenses $ 140,652 $ 125,971 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 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 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 December 29, 2019 , the amended and restated Facility provided to the Company and certain of its subsidiaries a multicurrency revolving loan facility up to $300.0 million , as well as other U.S. denominated and multicurrency term loans. On December 18, 2019, the Company amended its Facility, with certain of its wholly-owned foreign subsidiaries as co-borrowers. The purpose of this amendment was to provide for certain provisions, including but not limited to the following: • the amendment of certain covenants in the Facility to add new exceptions which will allow the Company and its subsidiaries to accomplish certain intercompany investments and other intercompany transactions desired to be made by the Company and its subsidiaries, and • amendments to add provisions relating to treatment of certain qualified financial contracts, to modify certain existing provisions dealing with the replacement of LIBOR as a benchmark interest rate with an alternative benchmark rate in the event that LIBOR in the future ceases to be available as a bench mark rate. Interest Rates and Fees Interest on base rate loans is charged at varying rates computed by applying a margin ranging from 0.25% to 1.25% , 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 are 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. Interest on multi-currency-based loans and fees for letters of credit are charged at varying rates computed by applying a margin ranging from 1.25% to 2.25% over the applicable Eurocurrency rate, depending on the Company’s consolidated net leverage ratio as of the most recently completed fiscal quarter. In addition, the Company pays a commitment fee ranging from 0.20% to 0.35% 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. Covenants The Facility contains standard and customary covenants for agreements of this type, including various reporting, affirmative and negative covenants. Among other things, these covenants limit the Company’s and its subsidiaries’ ability to: • create or incur liens on assets; • make acquisitions of or investments in businesses (in excess of certain specified amounts); • engage in any material line of business substantially different from the Company’s current lines of business; • incur indebtedness or contingent obligations; • sell or dispose of assets (in excess of certain specified amounts); • pay dividends or repurchase the Company’s stock (in excess of certain specified amounts); • repay other indebtedness prior to maturity unless the Company meets certain conditions; and • enter into sale and leaseback transactions. The Facility also requires the Company to remain in compliance with the following financial covenants as of the end of each fiscal quarter, based on the Company’s consolidated results for the year then ended: • Consolidated Net Leverage Ratio: Must be no greater than 4.25 : 1.00 , subject to a step-down as described in the Facility Agreement. • Consolidated Interest Coverage Ratio: Must be no less than 2.25 : 1.00 . Events of Default If the Company breaches or fails to perform any of the affirmative or negative covenants under the Facility, or if other specified events occur (such as a bankruptcy or similar event or a change of control of Interface, Inc. or certain subsidiaries, or if the Company breaches or fails to perform any covenant or agreement contained in any instrument relating to any of the Company’s other indebtedness exceeding $20 million ), after giving effect to any applicable notice and right to cure provisions, an event of default will exist. If an event of default exists and is continuing, the lenders’ Administrative Agent may, and upon the written request of a specified percentage of the lender group shall: • declare all commitments of the lenders under the facility terminated; • declare all amounts outstanding or accrued thereunder immediately due and payable; and • exercise other rights and remedies available to them under the agreement and applicable law. Collateral Pursuant to an Amended and Restated Security and Pledge Agreement, the Facility is secured by substantially all of the assets of the Company and its domestic subsidiaries (subject to exceptions for certain immaterial subsidiaries), including all of the stock of the Company’s domestic subsidiaries and up to 65% of the stock of its first-tier material foreign subsidiaries. If an event of default occurs under the Facility, the lenders’ Administrative Agent may, upon the request of a specified percentage of lenders, exercise remedies with respect to the collateral, including, in some instances, foreclosing mortgages on real estate assets, taking possession of or selling personal property assets, collecting accounts receivables, or exercising proxies to take control of the pledged stock of domestic and first-tier material foreign subsidiaries. As of December 29, 2019 , the Company had outstanding $581.6 million of term loan borrowing and $20.9 million of revolving loan borrowings under the Facility, and had $2.2 million in letters of credit outstanding under the Facility. As of December 29, 2019 , the weighted average interest rate on borrowings outstanding under the Facility was 3.27% . Under the amended and restated 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. Interest Rate Risk Management In the third quarter of 2017 and the first quarter of 2019, the Company entered into interest rate swap transactions to fix the variable interest rate on a portion of its term loan borrowings 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. Other Lines of Credit Subsidiaries of the Company have an aggregate of the equivalent of $9.5 million of other lines of credit available at interest rates ranging from 2.0% to 6.0% . As of December 29, 2019 and December 30, 2018 , there were no borrowings outstanding under these lines of credit. Borrowing Costs In connection with the amended and restated Facility on August 7, 2018, as discussed above, the Company recorded $8.8 million of debt issuance costs associated with the new term loans, which are reflected as a reduction of long-term debt in accordance with applicable accounting standards. These fees are amortized straight-line, which approximates the effective interest method, over the life of the outstanding borrowing, the debt balance will increase by the same amount as the fees that are amortized. As of December 29, 2019 , the unamortized debt costs recorded as a reduction of long-term debt was $6.3 million . Other deferred borrowing costs, which include underwriting, legal and other direct costs related to the issuance of revolving debt, net of accumulated amortization, were $1.3 million and $1.8 million , as of December 29, 2019 and December 30, 2018 , respectively. These amounts are included in other long term assets in the Company’s consolidated balance sheets. The Company amortizes these costs over the life of the related debt. Expenses related to such costs for the years 2019 , 2018 , and 2017 amounted to $0.4 million , $0.5 million , and $0.5 million , respectively for each of those years. Future Maturities The aggregate maturities of borrowings for each of the five fiscal years subsequent to 2019 are as follows: FISCAL YEAR AMOUNT (in thousands) 2020 $ 31,022 2021 31,022 2022 31,022 2023 509,450 2024 — Thereafter — Total Debt $ 602,516 Total long-term debt in the consolidated balance sheet includes a reduction for unamortized debt issuance costs of $6.3 million which are excluded from the maturities table above. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 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 this interest rate swap 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 changes in fair value of the swaps as a component of other comprehensive income (or other comprehensive loss). The aggregate notional amount of the swaps as of December 29, 2019 was $250 million . Forward Contracts Our nora operations, from time to time, 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 December 29, 2019 , all foreign currency forward contracts have expired. The table below sets forth the fair value of derivative instruments as of December 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 contract Other current assets — Accrued expenses 5,801 $ — $ 5,801 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 2019 . We expect that approximately $1.6 million related to cash flow hedges will be reclassified from accumulated other comprehensive income as an increase to interest expense in the next 12 months. 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, net of tax (in thousands): Fiscal Year Fiscal Year Fiscal Year 2019 2018 2017 (in thousands) Foreign currency contracts gain (loss) $ 468 $ (468 ) $ — Interest rate swap contracts (loss) gain (5,957 ) 890 904 (Loss) gain recognized in accumulated other comprehensive income $ (5,489 ) $ 422 $ 904 The following table summarizes the gains and losses reclassified from accumulated other comprehensive income into earnings during 2019 (in thousands): Fiscal Year Statement of Operations Location 2019 (in thousands) Foreign currency contracts (loss) Cost of sales $ (450 ) Interest rate swap contracts gain Interest expense 151 Total $ (299 ) |
Leases
Leases | 12 Months Ended |
Dec. 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. As of December 29, 2019 , there were no significant right-of-use assets and lease obligations from leases that had not commenced as of the end of fiscal 2019 . The table below represents a summary of the balances recorded in the consolidated balance sheet related to our leases as of December 29, 2019 : December 29, 2019 (In thousands) Balance Sheet Location Operating Leases Finance Leases Operating lease right-of-use assets $ 107,044 Current portion of operating lease liabilities $ 15,914 Operating lease liabilities 91,829 Total operating lease liabilities $ 107,743 Property and equipment $ 5,007 Accrued expenses $ 1,489 Other long-term liabilities 1,673 Total finance lease liabilities $ 3,162 Lease Costs Fiscal Year 2019 Lease cost (In thousands) Finance lease cost: Amortization of right-of-use assets $ 890 Interest on lease liabilities 51 Operating lease cost 24,246 Short-term lease cost 2,057 Variable lease cost 3,665 Total lease cost $ 30,909 Other supplemental information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 51 Operating cash flows from operating leases 22,597 Financing cash flows from finance leases 1,255 Right-of-use assets obtained in exchange for new finance lease liabilities 2,240 Right-of-use assets obtained in exchange for new operating lease liabilities 12,655 Rental expense amounted to approximately $28.5 million and $22.0 million for the years 2018 and 2017 , respectively. December 29, 2019 Weighted-average remaining lease term – finance leases (in years) 2.76 Weighted-average remaining lease term – operating leases (in years) 10.60 Weighted-average discount rate – finance leases 2.06 % Weighted-average discount rate – operating leases 5.86 % Maturity Analysis Maturity analysis of lease payments under non-cancellable leases were as follows: Fiscal Year Operating Leases Finance Leases (In thousands) 2020 $ 21,659 $ 1,543 2021 17,264 861 2022 13,825 475 2023 11,504 290 2024 9,959 88 Thereafter 75,360 — Total future minimum lease payments (undiscounted) 149,571 3,257 Less: Present value discount (41,828 ) (95 ) Total lease liability $ 107,743 $ 3,162 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. |
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. As of December 29, 2019 , there were no significant right-of-use assets and lease obligations from leases that had not commenced as of the end of fiscal 2019 . The table below represents a summary of the balances recorded in the consolidated balance sheet related to our leases as of December 29, 2019 : December 29, 2019 (In thousands) Balance Sheet Location Operating Leases Finance Leases Operating lease right-of-use assets $ 107,044 Current portion of operating lease liabilities $ 15,914 Operating lease liabilities 91,829 Total operating lease liabilities $ 107,743 Property and equipment $ 5,007 Accrued expenses $ 1,489 Other long-term liabilities 1,673 Total finance lease liabilities $ 3,162 Lease Costs Fiscal Year 2019 Lease cost (In thousands) Finance lease cost: Amortization of right-of-use assets $ 890 Interest on lease liabilities 51 Operating lease cost 24,246 Short-term lease cost 2,057 Variable lease cost 3,665 Total lease cost $ 30,909 Other supplemental information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 51 Operating cash flows from operating leases 22,597 Financing cash flows from finance leases 1,255 Right-of-use assets obtained in exchange for new finance lease liabilities 2,240 Right-of-use assets obtained in exchange for new operating lease liabilities 12,655 Rental expense amounted to approximately $28.5 million and $22.0 million for the years 2018 and 2017 , respectively. December 29, 2019 Weighted-average remaining lease term – finance leases (in years) 2.76 Weighted-average remaining lease term – operating leases (in years) 10.60 Weighted-average discount rate – finance leases 2.06 % Weighted-average discount rate – operating leases 5.86 % Maturity Analysis Maturity analysis of lease payments under non-cancellable leases were as follows: Fiscal Year Operating Leases Finance Leases (In thousands) 2020 $ 21,659 $ 1,543 2021 17,264 861 2022 13,825 475 2023 11,504 290 2024 9,959 88 Thereafter 75,360 — Total future minimum lease payments (undiscounted) 149,571 3,257 Less: Present value discount (41,828 ) (95 ) Total lease liability $ 107,743 $ 3,162 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. |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 29, 2019 | |
Equity [Abstract] | |
Preferred Stock | PREFERRED STOCK The Company is authorized to designate and issue up to 5,000,000 shares of $1.00 par value preferred stock in one or more series and to determine the rights and preferences of each series, to the extent permitted by the Articles of Incorporation, and to fix the terms of such preferred stock without any vote or action by the shareholders. The issuance of any series of preferred stock may have an adverse effect on the rights of holders of common stock and could decrease the amount of earnings and assets available for distribution to holders of common stock. In addition, any issuance of preferred stock could have the effect of delaying, deferring or preventing a change in control of the Company. As of December 29, 2019 and December 30, 2018 , there were no shares of preferred stock issued. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 29, 2019 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | SHAREHOLDERS’ EQUITY The Company is authorized to issue 120 million shares of $0.10 par value Common Stock. The Company’s Common Stock is traded on the Nasdaq Global Select Market under the symbol TILE. The Company paid cash dividends totaling $0.26 per share in 2019 , $0.26 per share in 2018 , and $0.25 per share in 2017 , to each share of Common Stock. The future declaration and payment of dividends is at the discretion of the Company’s Board, and depends upon, among other things, the Company’s investment policy and opportunities, results of operations, financial condition, cash requirements, future prospects, and other factors that may be considered relevant at the time of the Board’s determination. Such other factors include limitations contained in the agreement for its Syndicated Credit Facility, which specifies conditions as to when any dividend payments may be made. As such, the Company may discontinue its dividend payments in the future if its Board determines that a cessation of dividend payments is proper in light of the factors indicated above. In 2016, the Company adopted a share purchase program to authorize the repurchase of up to $50 million of common stock. This program had no specific expiration date. During the first three months of 2017, the Company completed the $50 million repurchase program. In the second quarter of 2017, the Company adopted a new share repurchase program in which the Company was authorized to repurchase up to $100 million of its outstanding shares of common stock. The program had no specific expiration date. Pursuant to the above-described programs, the Company has repurchased shares in the past three years as follows. During 2017 , the Company repurchased and retired 4,628,300 shares of common stock at a weighted average purchase price of $19.76 per share. During 2018 , the Company repurchased and retired a combined total of 615,000 shares under these plans, at an average purchase price of $23.54 per share. During 2019 , the Company repurchased and retired a combined total of 1,556,000 shares under these plans, at an average purchase price of $16.13 per share. As of December 29, 2019 , the Company had completed the authorized share repurchase program. All treasury stock is accounted for using the cost method. The following tables depict the activity in the accounts which make up shareholders equity for the years 2019 , 2018 , and 2017 . 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 — — — 79,200 — — — Stock issuances under employee plans 511 51 636 — — — — Other issuances of common stock 223 22 3,900 — — — — Unamortized stock compensation expense related to stock awards — — (4,139 ) — — — — Cash dividends paid — — — (15,358 ) — — — Forfeitures and compensation expense related to stock awards (270 ) (26 ) 4,638 — — — — Share repurchases (1,556 ) (156 ) (24,998 ) — — — — Pension liability adjustment — — — — (13,090 ) — — Foreign currency translation adjustment — — — — — (11,652 ) — Cash flow hedge unrealized gain — — — — — — (5,489 ) Balance, at December 29, 2019 58,416 $ 5,842 $ 250,306 $ 286,056 $ (56,700 ) $ (113,139 ) $ (4,163 ) SHARES COMMON STOCK ADDITIONAL PAID-IN CAPITAL RETAINED PENSION LIABILITY FOREIGN CURRENCY TRANSLATION ADJUSTMENT CASH FLOW HEDGE (in thousands) Balance, at December 31, 2017 59,806 $ 5,981 $ 271,271 $ 187,432 $ (56,554 ) $ (78,943 ) $ 904 Net income — — — 50,253 — — — Stock issuances under employee plans 224 22 476 — — — — Other issuances of common stock 182 18 4,809 — — — — Unamortized stock compensation expense related to stock awards — — (4,710 ) — — — — Cash dividends paid — — — (15,471 ) — — — Forfeitures and compensation expense related to stock awards (89 ) (9 ) 12,847 — — — — Share repurchases (615 ) (61 ) (14,424 ) — — — — Pension liability adjustment — — — — 12,944 — — Foreign currency translation adjustment — — — — — (22,544 ) — Cash flow hedge unrealized gain (loss) — — — — — — 422 Balance, at December 30, 2018 59,508 $ 5,951 $ 270,269 $ 222,214 $ (43,610 ) $ (101,487 ) $ 1,326 SHARES COMMON STOCK ADDITIONAL PAID-IN CAPITAL RETAINED PENSION LIABILITY FOREIGN CURRENCY TRANSLATION ADJUSTMENT CASH FLOW HEDGE (in thousands) Balance, at January 1, 2017 64,238 $ 6,424 $ 359,451 $ 140,238 $ (54,862 ) $ (110,522 ) $ — Net income — — — 53,246 — — — Stock issuances under employee plans 36 4 508 — — — — Other issuances of common stock 253 25 4,507 — — — — Unamortized stock compensation expense related to stock awards — — (4,532 ) — — — — Cash dividends paid — — — (15,487 ) — — — Forfeitures and compensation expense related to stock awards (93 ) (9 ) 5,574 — — — — Share repurchases (4,628 ) (463 ) (91,113 ) — — — — Pension liability adjustment — — — — (1,692 ) — — Foreign currency translation adjustment — — — — — 31,579 — Cash flow hedge unrealized gain (loss) — — — — — — 904 Windfall tax benefit - share-based payment awards — — (3,124 ) — — — — Adoption of new accounting standard - share-based payment awards — — — 9,435 — — — Balance, at December 31, 2017 59,806 $ 5,981 $ 271,271 $ 187,432 $ (56,554 ) $ (78,943 ) $ 904 Stock Options The Company has an Omnibus Stock Incentive Plan (“Omnibus Plan”) under which a committee of independent directors is authorized to grant directors and key employees, including officers, options to purchase the Company’s Common Stock. Options are exercisable for shares of Common Stock at a price not less than 100% of the fair market value on the date of grant. The options become exercisable either immediately upon the grant date or ratably over a time period ranging from one to five years from the date of the grant. The Company’s options expire at the end of time periods ranging from three to ten years from the date of the grant. In May 2015, the shareholders approved an amendment and restatement of the Omnibus Plan. This amendment and restatement extended the term of the Omnibus Plan until February 2025, and set the number of shares authorized for issuance or transfer on or after the effective date of the amendment and restatement at 5,161,020 shares, except that each share issued pursuant to an award other than a stock option reduces the number of such authorized shares by 1.33 shares. Accounting standards require that the Company measure the cost of employee services received in exchange for an award of equity instruments based on the grant date fair market value of the award. That expense will be recognized over the period that the employee is required to provide the services – the requisite service period (usually the vesting period) – in exchange for the award. The grant date fair value for options and similar instruments will be estimated using option pricing models. Under accounting standards, the Company is required to select a valuation technique or option pricing model. The Company uses the Black-Scholes model. Accounting standards require that the Company estimate forfeitures for stock options and reduce 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. This expense reduction is not significant to the Company. All outstanding stock options vested prior to 2015 and therefore there were no stock option compensation expenses during 2019 , 2018 or 2017 . The following table summarizes stock options outstanding as of December 29, 2019 , as well as activity during the previous fiscal year: Shares Weighted Average Exercise Price Outstanding at December 30, 2018 42,500 $ 9.56 Granted — — Exercised (10,000 ) 4.31 Forfeited or canceled (5,000 ) 4.31 Outstanding at December 29, 2019 (a) 27,500 $ 12.43 Exercisable at December 29, 2019 (b) 27,500 $ 12.43 (a) At December 29, 2019 , the weighted-average remaining contractual life of options outstanding was less than 1 year. (b) At December 29, 2019 , the weighted-average remaining contractual life of options exercisable was less than 1 year. At December 29, 2019 , the aggregate intrinsic values of in-the-money options outstanding and options exercisable were $0.1 million and $0.1 million , respectively (the intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the option). Restricted Stock Awards During fiscal years 2019 , 2018 and 2017 , the Company granted restricted stock awards totaling 223,500 , 194,000 , and 253,000 shares, respectively, of Common Stock. These awards (or a portion thereof) vest with respect to each recipient over a one to five 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, these shares (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 awards of restricted stock was $3.3 million , $4.1 million and $2.8 million for 2019 , 2018 and 2017 , respectively. These grants are made primarily to executive-level personnel at the Company and, as a result, no compensation costs have been capitalized. 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 forfeiture rate has been developed using historical data regarding actual forfeitures as well as an estimate of future expected forfeitures under our restricted stock grants. The following table summarizes restricted stock outstanding as of December 29, 2019 , as well as activity during the previous fiscal year: Shares Weighted Average Grant Date Fair Value Outstanding at December 30, 2018 549,000 $ 27.65 Granted 223,500 17.54 Vested (241,200 ) 18.41 Forfeited or canceled (63,100 ) 19.88 Outstanding at December 29, 2019 468,200 $ 28.63 As of December 29, 2019 , the unrecognized total compensation cost related to unvested restricted stock was $3.4 million . That cost is expected to be recognized by the end of 2022 . As stated above, accounting standards require the Company to estimate forfeitures in calculating the expense related to stock-based compensation, as opposed to only recognizing these forfeitures and the corresponding reduction in expense as they occur. Performance Share Awards In each of the years 2017-2019, 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 expense related to these performance shares is captured in selling, general and administrative expense on the consolidated statement of operations. The following table summarizes the performance shares outstanding as of December 29, 2019 , as well as the activity during the year: Shares Weighted Average Grant Date Fair Value Outstanding at December 30, 2018 759,500 $ 20.17 Granted 344,500 17.54 Vested (360,000 ) 19.63 Forfeited or canceled (232,000 ) 18.10 Outstanding at December 29, 2019 512,000 $ 19.71 Compensation expense related to the performance shares for 2019 , 2018 , and 2017 was $5.4 million , $10.4 million and $4.5 million , respectively. Unrecognized compensation expense related to these performance shares was approximately $3.1 million as of December 29, 2019 . That cost is expected to be recognized by the end of 2022 . The tax benefit recognized with respect to restricted stock and performance shares was $1.4 million , $2.4 million , and $2.6 million in 2019 , 2018 , and 2017 , respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 29, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The Company calculates basic and diluted earnings per common share using the two-class method. Basic earnings (loss) per share (“EPS”) is calculated by dividing net income (loss), by the weighted average common shares outstanding, including participating securities outstanding, during the period as depicted 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. Income attributable to non-controlling interest is included in the computation of basic and diluted earnings per share, where applicable. The Company includes all unvested stock awards that contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid, in the number of common 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: Fiscal Year 2019 2018 2017 Earnings per share: Basic earnings per share Distributed earnings $ 0.26 $ 0.26 $ 0.25 Undistributed earnings 1.08 0.58 0.61 $ 1.34 $ 0.84 $ 0.86 Diluted earnings per share Distributed earnings $ 0.26 $ 0.26 $ 0.25 Undistributed earnings 1.08 0.58 0.61 $ 1.34 $ 0.84 $ 0.86 The following table presents net income that was attributable to participating securities: Fiscal Year 2019 2018 2017 (in millions) Net income attributable to participating securities $ 0.6 $ 0.5 $ 0.4 The weighted average shares for basic and diluted EPS were as follows: Fiscal Year 2019 2018 2017 (in thousands) Weighted Average Shares Outstanding 58,475 58,995 61,528 Participating Securities 468 549 468 Shares for Basic Earnings Per Share 58,943 59,544 61,996 Dilutive Effect of Stock Options 5 22 44 Shares for Diluted Earnings Per Share 58,948 59,566 62,040 For all periods presented, there were no stock options excluded from the determination of diluted EPS. |
Restructuring and Other Charges
Restructuring and Other Charges | 12 Months Ended |
Dec. 29, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | RESTRUCTURING AND OTHER CHARGES For fiscal years 2019 , 2018 , and 2017 the Company recorded restructuring, asset impairment, and other charges of $12.9 million , $20.5 million , and $7.3 million , respectively, in the consolidated statements of operations. The 2019 charge of $12.9 million includes $5.0 million of other non-cash charges unrelated to the 2019 exit activity and a net $1.0 million reduction in restructuring costs related to the 2018 restructuring plan. As of December 29, 2019 the total restructuring reserve was $11.4 million for both the 2019 and 2018 restructuring plans. Below is a discussion of restructuring activities by year. 2019 Restructuring Plan On December 23, 2019, the Company committed to a new restructuring plan that continues to focus on efforts to improve efficiencies and decrease costs across its worldwide operations, and more closely align its operating structure with its business strategy. The plan involved a reduction of approximately 105 employees and early termination of two office leases. As a result of this plan, the Company recorded a pre-tax restructuring charge in the fourth quarter of 2019 of approximately $9.0 million . The charge is comprised of severance expenses ( $8.8 million ) and lease exit costs ( $0.2 million .) The restructuring plan is expected to result in future cash expenditures of approximately $9.0 million for payment of the employee severance and lease exit costs, as described above. The Company expects to complete the restructuring plan in fiscal year 2020, and expects the plan to yield annualized savings of approximately $6.0 million . A portion of the annualized savings is expected to be realized on the income statement in fiscal year 2020, with the remaining portion of the annualized savings expected to be realized in fiscal year 2021. A summary of the 2019 restructuring activities is presented below: Charged to Expenses 2019 Deductions 2019 Charged to Other Accounts 2019 Balance at December 29, 2019 Workforce Reduction $ 8,827 $ 193 $ — $ 8,634 Other Exit Costs 188 — 49 139 Total $ 9,015 $ 193 $ 49 $ 8,773 Other Non-Cash Charges On December 23, 2019, unrelated to the restructuring activity discussed above, the Company recorded other non-cash charges of approximately $5.0 million primarily related to adjusting the carrying value of certain insurance related assets. These charges are recorded in restructuring and other charges in the 2019 consolidated statement of operations. 2018 Restructuring Plan 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 involved (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 was substantially completed at the end of fiscal 2019. The Company redeployed 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. In the fourth quarter of 2019 , the Company adjusted its previously recorded severance expenses in connection with the 2018 restructuring plan and recognized a reduction in restructuring costs of $1.7 million in 2019 . A summary of these 2018 restructuring activities is presented below: Balance at Beginning of Year Deductions 2019 Charged to Expenses 2019 Balance at December 29, 2019 (in thousands) Workforce Reduction $ 10,763 $ 7,122 $ (1,743 ) $ 1,898 Other Exit Costs 1,144 1,042 672 774 Total $ 11,907 $ 8,164 $ (1,071 ) $ 2,672 2016 Restructuring Plan and 2017 Charge In the fourth quarter of 2016, the Company committed to a separate restructuring plan. The plan involved (i) a substantial restructuring of the FLOR business model that included closure of its headquarters office and most retail FLOR stores, (ii) a reduction of approximately 70 FLOR employees and a number of employees in the commercial carpet tile business, primarily in the Americas and Europe regions, and (iii) the write-down of certain underutilized and impaired assets that included information technology assets, intellectual property assets, and obsolete manufacturing, office and retail store equipment. As a result of this plan, the Company incurred pre-tax restructuring and asset impairment charges of $19.8 million in the fourth quarter of 2016 and $7.3 million in the first quarter of 2017. This plan was completed at the end of fiscal year 2018. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 29, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Income before taxes on income consisted of the following: FISCAL YEAR 2019 2018 2017 (in thousands) U.S. operations $ 46,463 $ 35,728 $ 53,407 Foreign operations 55,353 19,263 47,132 Income before taxes $ 101,816 $ 54,991 $ 100,539 Provisions for federal, foreign and state income taxes in the consolidated statements of operations consisted of the following components: FISCAL YEAR 2019 2018 2017 (in thousands) Current expense/(benefit): Federal $ 8,414 $ (3,549 ) $ 10,245 Foreign 14,513 14,548 11,923 State 2,312 2,628 1,414 Current expense 25,239 13,627 23,582 Deferred expense/(benefit): Federal (625 ) 2,145 20,467 Foreign (2,198 ) (11,228 ) 1,214 State 200 194 2,030 Deferred expense/(benefit) (2,623 ) (8,889 ) 23,711 Total income tax expense $ 22,616 $ 4,738 $ 47,293 The Company’s effective tax rate was 22.2% , 8.6% and 47.0% for fiscal years 2019 , 2018 and 2017 , respectively. The following summary reconciles income taxes at the U.S. federal statutory rate of 21% applicable for 2019 and 2018 and 35% applicable for 2017 to the Company’s actual income tax expense: FISCAL YEAR 2019 2018 2017 (in thousands) Income taxes at U.S. federal statutory rate $ 21,381 $ 11,548 $ 35,189 Increase (decrease) in taxes resulting from: State income taxes, net of federal tax effect 2,321 2,228 2,055 Non-deductible business expenses 933 1,352 695 Non-deductible employee compensation 1,453 2,566 80 Tax effects of Company owned life insurance (636 ) 235 (1,295 ) Tax effects of Tax Act: One-time transition tax on foreign earnings — (5,000 ) 11,707 Remeasurement of net Deferred Tax Asset — (1,739 ) 3,467 Tax effects of undistributed earnings from foreign subsidiaries not deemed to be indefinitely reinvested (183 ) 61 523 Foreign and U.S. tax effects attributable to foreign operations 783 (2,226 ) (4,575 ) Valuation allowance effect – NOL 133 (79 ) (858 ) Federal tax credits (700 ) (2,863 ) (632 ) Changes in unrecognized tax benefits (3,324 ) (1,010 ) 874 Other 455 (335 ) 63 Income tax expense $ 22,616 $ 4,738 $ 47,293 On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was enacted into law. Among the significant changes resulting from the law, the Tax Act reduced the U.S. federal income tax rate from 35% to 21% effective for the year beginning January 1, 2018 and created a modified territorial tax system with a one-time mandatory “transition toll tax” on previously unrepatriated foreign earnings. In accordance with SEC Staff Bulletin No. 118 (“SAB 118”), the Company recorded certain provisional estimates for the impact of the Tax Act as of December 31, 2017. Under the transitional provisions of SAB 118, the Company had a one-year measurement period to complete the accounting for the initial tax effects of the Tax Act. During the year ended December 30, 2018, the Company completed its accounting for the provisional estimates of the Tax Act and finalized its measurement period adjustments related to the one-time transition tax and remeasurement of its net deferred tax asset, as further discussed below. While the Company’s accounting for the recorded impact of the Tax Act is deemed complete, these amounts are based on prevailing regulations and currently available information, and any additional guidance issued by the IRS could impact the amounts in future periods. Impacts of Deemed Repatriation: The Tax Act imposed a one-time transition tax on unrepatriated post-1986 accumulated earnings and profits of certain foreign subsidiaries (“E&P”). As of December 31, 2017, the Company recorded a provisional tax expense of $11.7 million related to the one-time transition tax. As of December 30, 2018, the Company had completed its assessment of the one-time transition tax which resulted in a $5.0 million decrease to the previously recorded provisional amount. Remeasurement of Deferred Tax Assets and Liabilities: As of December 31, 2017, the Company recorded a provisional tax expense of $3.5 million related to the remeasurement of its net deferred tax asset to reflect the change in corporate tax rate from 35% to 21% . As of December 30, 2018, the Company had completed the accounting of remeasuring its net deferred tax asset which resulted in a $1.7 million decrease to the previously recorded provisional amount. Deferred income taxes for the years ended December 29, 2019 and December 30, 2018 , reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The temporary differences that give rise to significant portions of the deferred tax assets and liabilities are as follows: FISCAL YEAR 2019 2018 (in thousands) Deferred tax assets Lease liability $ 29,782 $ — Net operating loss carryforwards 3,090 2,349 Derivative instruments 1,638 — Deferred compensation 20,194 18,945 Inventory 3,200 4,712 Prepaids, accruals and reserves 7,935 6,473 Pensions 9,229 4,290 Other 71 — Deferred tax asset (gross) 75,139 36,769 Valuation allowance on net operating loss carryforwards (971 ) (1,067 ) Deferred tax asset (net) $ 74,168 $ 35,702 Deferred tax liabilities Property and equipment $ 23,770 $ 24,871 Intangible assets 33,760 18,699 Lease asset 29,301 — Foreign currency 3,026 2,357 Foreign withholding taxes on unremitted earnings 178 348 Other — 314 Deferred tax liabilities 90,035 46,589 Net deferred tax liabilities $ 15,867 $ 10,887 Management believes, based on the Company’s history of taxable income and expectations for the future, that it is more likely than not that future taxable income will be sufficient to fully utilize the federal deferred tax assets at December 29, 2019 . During the year ended December 29, 2019 , significant changes to the Company’s deferred tax balances included a $17.2 million increase in intangible deferred liability primarily related to its acquisition of nora. Beginning in 2018, the Tax Act included two new U.S. tax base erosion provisions, the global intangible low-taxed income (“GILTI”) provisions and the base-erosion and anti-abuse tax (“BEAT”) provisions. The Company has elected to account for tax effects of GILTI in the period when incurred, and therefore has not provided any deferred tax impacts of GILTI in its consolidated financial statements. The Company had approximately $7.5 million in foreign net operating losses for which the Company applied a valuation allowance against $0.9 million of such losses. The Company had approximately $87.6 million in state net operating loss carryforwards relating to continuing operations with expiration dates through 2035. The Company has provided a valuation allowance against $14.6 million of such losses, which the Company does not expect to utilize. In addition, the Company has approximately $36.0 million in state net operating loss carryforwards relating to discontinued operations against which a full valuation allowance has been provided. As of December 29, 2019 , and December 30, 2018 , non-current deferred tax assets were reduced by approximately $2.8 million and $2.8 million , respectively, of unrecognized tax benefits. Historically, the Company has not provided for U.S. federal and state income taxes on the undistributed accumulated earnings of its foreign subsidiaries, with the exception of its Canada subsidiaries, because such earnings were deemed to be permanently reinvested. Due to the passage of the Tax Act on December 22, 2017, the Company was required to recognize U.S. taxes as a result of the one-time transition tax on the higher of its accumulated earnings as of November 2, 2017, or December 31, 2017. Although the one-time transition tax on unrepatriated post-1986 accumulated earnings and profits of certain non-U.S. subsidiaries, the GILTI provisions and the dividends received deduction created as a result of the Tax Act generally eliminates additional U.S. federal income taxes on dividends from our foreign subsidiaries, the Company continues to assert that all of its undistributed earnings in its non-U.S. subsidiaries, excluding subsidiaries within Canada, are indefinitely reinvested outside of the U.S. The Company expects that domestic cash resources will be sufficient to fund its domestic operations and cash commitments in the future. In the event the Company determines not to continue to assert that all or part of its undistributed earnings in its non-U.S. subsidiaries are permanently reinvested, an actual repatriation from its non-U.S. subsidiaries could still be subject to additional foreign withholding and U.S. state taxes, the determination of which is not practicable. The Company’s federal income tax returns are subject to examination for the years 2016 to the present. In addition, certain federal tax attribute carryovers established since 2001 could be adjusted as these amounts are still subject to examination. The Company files returns in numerous state and local jurisdictions and in general it is subject to examination by the state tax authorities for the years 2014 to the present. The Company files returns in numerous foreign jurisdictions and in general it is subject to examination by the foreign tax authorities for the years 2008 to the present. During a check of the 2015 tax return of the Company’s UK subsidiary, Her Majesty’s Revenue & Customs (“HMRC”) issued a discovery assessment for the years 2012 through 2014 related to its intra-group financing arrangement. The discovery assessment is currently under appeal. HMRC has extended its check to tax year 2016, however, it has not issued an assessment beyond the 2014 tax year. Management believes it is reasonably possible HMRC may propose additional assessments for tax years 2015 & 2016; but does not anticipate the adjustments related to its intra-group financing arrangement would result in a material change to its financial position. The Company will continue to evaluate the recognition criteria for unrecognized tax benefits as it relates to the HMRC review; however, as of December 29, 2019 , recognition thresholds had not been met. As of December 29, 2019 , and December 30, 2018 , the Company had $25.5 million and $28.1 million , respectively, of unrecognized tax benefits. It is reasonably possible that approximately $10.5 million of unrecognized tax benefits may be recognized within the next 12 months due to a lapse of statute of limitations. If any of the $25.5 million of unrecognized tax benefits as of December 29, 2019 are recognized, there would be a favorable impact on the Company’s effective tax rate in future periods. If the unrecognized tax benefits are not favorably settled, $22.7 million of the total amount of unrecognized tax benefits would require the use of cash in future periods. The Company recognizes accrued interest and income tax penalties related to unrecognized tax benefits as a component of income tax expense. As of December 29, 2019 , the Company had accrued interest and penalties of $2.9 million , which is included in the total unrecognized tax benefit noted above. The timing of the ultimate resolution of the Company’s tax matters and the payment and receipt of related cash is dependent on a number of factors, many of which are outside the Company’s control. A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits is as follows: FISCAL YEAR 2019 2018 2017 (in thousands) Balance at beginning of year $ 28,143 $ 29,221 $ 27,888 Increases related to tax positions taken during the current year 318 671 627 Increases related to tax positions taken during the prior years 1,093 180 709 Decreases related to tax positions taken during the prior years (2,809 ) — — Decreases related to settlements with taxing authorities — — — Decreases related to lapse of applicable statute of limitations (1,266 ) (1,861 ) (462 ) Changes due to foreign currency translation 7 (68 ) 459 Balance at end of year $ 25,486 $ 28,143 $ 29,221 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 29, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES From time to time, the Company is a party to legal proceedings, whether arising in the ordinary course of business or otherwise. Some of the proceedings the Company is involved in are summarized below. SEC Investigation The Company received a letter in November 2017 from the Securities & Exchange Commission (the “SEC”) requesting that the Company voluntarily provide information and documents in connection with an investigation into the Company’s historical quarterly earnings per share (“EPS”) calculations and rounding practices during the period 2014-2017. The Company subsequently received several subpoenas from the SEC requesting additional documents and information. In the fourth quarter of 2018, the Company conducted at the SEC’s request an internal investigation into these and other related issues for seven quarters in 2015, 2016 and 2017. On April 23, 2019, Gregory J. Bauer, the Company’s Vice President and Chief Accounting Officer, went on paid administrative leave from the Company after it was learned that in 2018 in the process of collecting materials from 2015, 2016 and 2017 for production to the SEC, he added certain notes to those materials that were then produced to the SEC. The Company believes at this time, however, that the after-the-fact inclusion of these notes had no impact on the EPS calculations that are the subject of the above-described investigation or on subsequent EPS calculations. Since the inception of the investigation, the Company has cooperated and continues to cooperate with the SEC’s investigation. Lawsuit by Former CEO in Connection with Termination On January 19, 2020, the Company’s Board of Directors voted to terminate for cause the employment of Jay D. Gould, then President and Chief Executive Officer, effective immediately, for violations of the Company’s working environment policies. He remains a member of the Board of Directors of the Company. On February 14, 2020, Mr. Gould filed a lawsuit against the Company in the United States District Court of the Northern District of Georgia, Gould v. Interface, Inc. , Case No. 1:20-cv-00695. In his lawsuit, Mr. Gould asserts several claims against the Company in connection with his termination, including that the termination was a wrongful retaliation against Mr. Gould and breached his employment contract with the Company, that public statements made by the Company in connection with his termination defamed Mr. Gould (two counts) and that the Company’s investigation into Mr. Gould’s conduct that preceded the termination was negligently performed. Among other unspecified relief, Mr. Gould seeks $10 million in damages for the breach contract claim and $100 million for each of the other four claims, as well as attorneys’ fees. The Company believes the lawsuit is without merit and intends to defend vigorously against it. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 29, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS Defined Contribution and Deferred Compensation Plans The Company has a 401(k) retirement investment plan (“401(k) Plan”), which is open to all eligible U.S. employees with at least six months of service. The 401(k) Plan calls for Company matching contributions on a sliding scale based on the level of the employee’s contribution. The Company may, at its discretion, make additional contributions to the 401(k) Plan based on the attainment of certain performance targets by its subsidiaries. The Company’s matching contributions are funded bi-monthly and totaled approximately $3.3 million , $3.2 million , and $3.0 million for the years 2019 , 2018 , and 2017 , respectively. No discretionary contributions were made in 2019 , 2018 , or 2017 . Under the Company’s nonqualified savings plans (“NSPs”), the Company provides eligible employees the opportunity to enter into agreements for the deferral of a specified percentage of their compensation, as defined in the NSPs. The NSPs call for Company matching contributions on a sliding scale based on the level of the employee’s contribution. The obligations of the Company under such agreements to pay the deferred compensation in the future in accordance with the terms of the NSPs are unsecured general obligations of the Company. Participants have no right, interest or claim in the assets of the Company, except as unsecured general creditors. The Company has established a rabbi trust to hold, invest and reinvest deferrals and contributions under the NSPs. If a change in control of the Company occurs, as defined in the NSPs, the Company will contribute an amount to the rabbi trust sufficient to pay the obligation owed to each participant. Deferred compensation in connection with the NSPs totaled $31.9 million and $28.7 million at December 29, 2019 and December 30, 2018 , respectively. The Company invests the deferrals in insurance instruments with readily determinable cash surrender values. The value of the insurance instruments was $30.1 million and $26.4 million as of December 29, 2019 and December 30, 2018 , respectively. Foreign Defined Benefit Plans The Company has trusteed defined benefit retirement plans which cover many of its European employees. The benefits under these defined benefit retirement plans are generally based on years of service and the employee’s average monthly compensation. In connection with the nora acquisition on August 7, 2018, the Company acquired an additional defined benefit plan, which covers certain employees in Germany (the “nora Plan”). The nora plan has no plan assets. The Company uses a year-end measurement date for the plans, which is the closest practical date to the Company’s fiscal year end. On December 31, 2019, a plan amendment was executed to eliminate future service accruals in the Dutch defined benefit plan. The Dutch plan will remain in existence and continue to pay vested benefits. The reduction in future benefit accruals resulted in a curtailment of the plan. Participants in the Dutch plan will no longer accrue benefits under the plan after December 31, 2019, and will participate in an industry-wide multi-employer plan beginning in fiscal year 2020. Although the Dutch plan is frozen to new participants, vested benefits prior to the curtailment will continue to be accounted for in accordance with applicable accounting standards for defined benefit plans. The Dutch plan is financed by assets held in an insurance contract. The guarantee provision included in the insurance contract, that existed to fund any shortfall between the fair value of plan investments and the benefit obligation, expired on December 31, 2019. The Company will fund the cost to guarantee vested benefits and this amount will be recorded as an obligation on the Company’s Consolidated Balance Sheet. The curtailment of the Dutch plan resulted in a decrease to the projected benefit obligation with an offsetting actuarial gain recognized in accumulated other comprehensive income of approximately $2.4 million in fiscal 2019 . The accumulated net actuarial loss for the Dutch plan, after the impact of the curtailment, was $16.7 million at December 29, 2019 . This amount will be reclassified out of accumulated other comprehensive income and increase pension expense over the life expectancy of vested participants when the actuarial loss exceeds the 10% corridor. The curtailment also resulted in a $0.5 million reclassification of prior service cost from accumulated other comprehensive income, which was recognized as a reduction of pension expense in fiscal 2019 . As discussed above, the Company still has an obligation to pay vested benefits in the frozen Dutch plan. As of December 29, 2019 , the under-funded status of the Dutch plan, after the impact of the curtailment, of $8.7 million is recorded on the Consolidated Balance Sheet in other long-term liabilities. Pension expense was $2.3 million , $1.7 million , and $1.9 million for the years 2019 , 2018 and 2017 , respectively. Plan assets are primarily invested in insurance contracts and equity and fixed income securities. As of December 29, 2019 , for the European plans, the Company had a net liability recorded of $48.4 million , an amount equal to their underfunded status, and had recorded in Other Comprehensive Income an amount equal to $47.6 million (net of taxes of approximately $16.6 million ) related to the future amounts to be recorded in net post-retirement benefit costs. The tables presented below set forth the funded status of the Company’s significant foreign defined benefit plans and required disclosures in accordance with applicable accounting standards: FISCAL YEAR 2019 2018 (in thousands) Change in benefit obligation Benefit obligation, beginning of year $ 285,508 $ 320,548 Service cost 1,589 1,112 Interest cost 5,676 5,467 Benefits and expenses paid (13,034 ) (11,850 ) Business combinations — 36,903 Actuarial loss (gain) 37,409 (53,753 ) Curtailment gain (2,421 ) — Member contributions 221 233 Currency translation adjustment (107 ) (13,152 ) Benefit obligation, end of year $ 314,841 $ 285,508 Change in plan assets Plan assets, beginning of year $ 249,313 $ 307,166 Actual return on assets 24,999 (37,495 ) Company contributions 3,954 4,095 Benefits paid (13,034 ) (11,850 ) Currency translation adjustment 1,218 (12,603 ) Plan assets, end of year $ 266,450 $ 249,313 Reconciliation to balance sheet Funded status benefit asset/(liability) $ (48,391 ) $ (36,195 ) Amounts recognized in accumulated other comprehensive income (after tax) Unrecognized actuarial loss $ 47,561 $ 37,141 Unamortized prior service credits — (437 ) Total amount recognized $ 47,561 $ 36,704 Accumulated Benefit Obligation $ 314,841 $ 284,581 The pension liability above includes non-current liabilities of $48.4 million and $35.3 million as of December 29, 2019 and December 30, 2018 , respectively. The above disclosure represents the aggregation of information related to the Company’s three defined benefit plans which cover many of its European employees. As of December 29, 2019 and December 30, 2018 , one of these plans, which primarily covers certain employees in the United Kingdom (the “UK Plan”), had assets in excess of the accumulated benefit obligation. The nora Plan is an unfunded defined benefit plan and the accumulated benefit obligation exceeded plan assets. The following table summarizes this information as of December 29, 2019 and December 30, 2018 . END OF FISCAL YEAR 2019 2018 (in thousands) UK Plan Projected Benefit Obligation $ 170,958 $ 157,351 Accumulated Benefit Obligation 170,958 157,351 Plan Assets 174,156 158,990 Dutch Plan Projected Benefit Obligation $ 100,996 $ 91,837 Accumulated Benefit Obligation 100,996 90,910 Plan Assets 92,294 90,323 Nora Plan Projected Benefit Obligation $ 42,887 $ 36,320 Accumulated Benefit Obligation 42,887 36,320 Plan Assets — — FISCAL YEAR 2019 2018 2017 (in thousands) Components of net periodic benefit cost Service cost $ 1,589 $ 1,112 $ 1,628 Interest cost 5,676 5,467 5,559 Expected return on plan assets (5,561 ) (6,234 ) (6,496 ) Amortization of prior service cost 63 (27 ) (34 ) Amortization of net actuarial (gains)/losses 991 1,394 1,287 Curtailment gain (453 ) — — Net periodic benefit cost $ 2,305 $ 1,712 $ 1,944 During 2019 , other comprehensive income was impacted after tax by approximately $10.9 million comprised of actuarial loss of approximately $11.4 million and amortization of $0.5 million . FISCAL YEAR 2019 2018 2017 Weighted average assumptions used to determine net periodic benefit cost Discount rate 1.9 % 1.9 % 2.0 % Expected return on plan assets 2.1 % 1.8 % 2.3 % Rate of compensation 1.75 % 1.75 % 1.75 % Weighted average assumptions used to determine benefit obligations Discount rate 1.7 % 2.5 % 2.2 % Rate of compensation 1.75 % 1.75 % 1.75 % The expected long-term rate of return on plan assets assumption is based on weighted average expected returns for each asset class. Expected returns reflect a combination of historical performance analysis and the forward-looking views of the financial markets, and include input from actuaries, investment service firms and investment managers. The investment objectives of the foreign defined benefit plans are to maximize the return on the investments without exceeding the limits of the prudent pension fund investment, to ensure that the assets would be sufficient to exceed minimum funding requirements, and to achieve a favorable return against the performance expectation based on historic and projected rates of return over the short term. The goal is to optimize the long-term return on plan assets at a moderate level of risk, by balancing higher-returning assets, such as equity securities, with less volatile assets, such as fixed income securities. The assets are managed by professional investment firms and performance is evaluated periodically against specific benchmarks. The plans’ net assets did not include the Company’s own stock at December 29, 2019 or December 30, 2018 . Dutch Plan Assets and Indexation Benefit As is common in Dutch pension plans, the Dutch Plan includes a provision for discretionary benefit increases termed “indexation.” The indexation benefit is meant to adjust pension benefits for cost-of-living increases, similar to U.S. consumer price index-based cost-of-living adjustments for U.S. retirement plans. The indexation benefit is not guaranteed, and is only provided for and paid out if sufficient assets are available due to favorable asset returns. Both the vested benefit amounts as well as amounts related to the discretionary indexation benefits under the Dutch Plan are paid pursuant to an insurance contract with a private insurer (the “Contract”). The Plan itself is financed by investment assets held within the Contract. Prior to December 31, 2019, the Contract guaranteed payment of vested benefits, regardless of whether Plan assets held through the Contract were ultimately sufficient to pay vested amounts, and also provided for payment of the indexation amount on a contingent basis if the actual return on Dutch Plan assets were sufficient to pay it. This type of insurance arrangement is common in The Netherlands, although not necessarily common in other jurisdictions. After the plan curtailment on December 31, 2019, as discussed above, any shortfall in plan assets to pay vested benefits will be funded by the Company. As it relates to the indexation benefit for 2017 and 2016, prior actual and future projected returns on Dutch Plan assets had been determined to be sufficient to provide for the indexation benefit for these years, therefore the Company and the insurer agreed that it was appropriate to provide the indexation benefit under the Contract. The indexation benefit became payable by the insurer under the Contract, and consequently was recorded as a Plan asset. The corresponding obligation to pay the indexation amount to pensioners thus became a pension liability. During 2018, the Company and the insurer, based on the expected future returns under the investment assets included in the insurance contract, determined that the indexation was not probable and was not included as an asset and liability as of the end of 2018. As of December 31, 2017, this indexation liability and corresponding asset was $32.7 million . The inclusion or exclusion of this amount does not have any impact on the funded status of the plan, as both the indexation asset and liability are recorded at the same amount. This indexation asset, along with the remainder of the assets under the Dutch Plan, are identified as Level Three assets under the fair value hierarchy. Under the express terms of the Contract, contract value is the greater of (i) the value of the discounted vested benefits of the Dutch Plan (i.e., the benefit amount guaranteed by the insurance company), and (ii) the fair value of the underlying investment assets held by the insurance company under the Contract. As between those two values, the former was the greater for 2019 and 2018 and this represents the plan assets as shown above for the Dutch Plan. However, as explained above, the Contract also will pay the indexation benefit if sufficient assets are available, which the Company believes not to be probable as of the end of 2019 based on recent returns. This indexation was considered probable as of the end of 2018 , and the Company believed that it was appropriate to include the value of the indexation payments, that were added to the vested benefit amounts. As explained above, these indexation benefits will be paid out of the Contract if asset returns continue to exceed expectations. At December 30, 2018, the asset returns were not of an expected amount to allow for indexation and the Company can, at any time, remove this indexation benefit. The removal of the indexation asset is presented as a negative return on assets, and the removal of the indexation liability is represented by a change in actuarial assumptions in the company’s presentation of 2018 projected benefit obligation. The indexation benefit for 2019 is not significant. The Company’s actual weighted average asset allocations for 2019 and 2018 , and the targeted asset allocation for 2020, of the foreign defined benefit plans by asset category, are as follows: FISCAL YEAR 2020 2019 2018 Target Allocation Percentage of Plan Assets at Year End Asset Category: Equity Securities 15% — 20% 3% 16% Debt and Debt Securities 35% — 45% 61% 44% Short-term investments —% — —% 1% 3% Other investments 40% — 50% 35% 37% 100% 100% 100% The following table sets forth by level within the fair value hierarchy the foreign defined benefit plans’ assets at fair value, as of December 29, 2019 and December 30, 2018 . The nora plan is currently unfunded. As required by accounting standards, assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. As noted above, the Dutch pension plan assets as represented by the insurance contract are classified as a Level 3 asset and included in the “Other” asset category. Pension Plan Assets by Category as of December 29, 2019 Dutch Plan UK Plan Total (in thousands) Level 1 $ — $ 64,151 $ 64,151 Level 2 — 87,047 87,047 Level 3 92,294 22,958 115,252 Total $ 92,294 $ 174,156 $ 266,450 Pension Plan Assets by Category as of December 30, 2018 Dutch Plan UK Plan Total (in thousands) Level 1 $ — $ 79,146 $ 79,146 Level 2 — 60,913 60,913 Level 3 90,323 18,931 109,254 Total $ 90,323 $ 158,990 $ 249,313 The tables below detail the foreign defined benefit plans’ assets by asset allocation and fair value hierarchy: FISCAL YEAR 2019 Level 1 Level 2 Level 3 (in thousands) Asset Class Equity Securities $ 8,143 $ — $ — Debt and Debt Securities 54,686 87,047 19,996 Short-term investments (1) 1,322 — — Other investments (2) — — 95,256 $ 64,151 $ 87,047 $ 115,252 FISCAL YEAR 2018 Level 1 Level 2 Level 3 (in thousands) Asset Class Equity Securities $ 39,392 $ — $ — Debt and Debt Securities 33,134 60,913 16,012 Short-term Investments (1) 6,620 — — Other Investments (2) — — 93,242 $ 79,146 $ 60,913 $ 109,254 (1) Short-term investments are generally invested in interest-bearing accounts. (2) Other investments is comprised of insurance contracts. With the exception of the Dutch Plan assets as discussed above, the assets identified as level 3 above in 2019 and 2018 relate to insured annuities and direct lending assets held by the UK Plan. The fair value of these assets was calculated using the present value of the future cash flows due under the insurance annuities and for the direct lending assets the value is based on the asset value from the latest available valuation with adjustments for any drawdowns and distribution payments made between the valuation date and the reporting date. The table below indicates the change in value related to these level 3 assets during 2019 and 2018 : FISCAL YEAR 2019 2018 (in thousands) Balance of level 3 assets, beginning of year $ 109,254 $ 150,977 Actual return on plan assets 5,463 (37,610 ) Purchases, sales and settlements, net 663 — Assets transferred into level 3 2,101 696 Translation adjustment (2,229 ) (4,809 ) Ending Balance of level 3 assets $ 115,252 $ 109,254 During 2020 , the Company expects to contribute $4.4 million to the plans. It is anticipated that future benefit payments for the foreign defined benefit plans will be as follows: FISCAL YEAR EXPECTED PAYMENTS (in thousands) 2020 $ 10,671 2021 10,772 2022 10,836 2023 11,068 2024 11,292 2025-2029 58,556 Domestic Defined Benefit Plan The Company maintains a domestic non-qualified salary continuation plan (“SCP”), which is designed to induce selected officers of the Company to remain in the employ of the Company by providing them with retirement, disability and death benefits in addition to those which they may receive under the Company’s other retirement plans and benefit programs. The SCP entitles participants to: (i) retirement benefits upon normal retirement at age 65 (or early retirement as early as age 55 ) after completing at least 15 years of service with the Company (unless otherwise provided in the SCP), payable for the remainder of their lives (or, if elected by a participant, a reduced benefit is payable for the remainder of the participant’s life and any surviving spouse’s life) and in no event less than 10 years under the death benefit feature; (ii) disability benefits payable for the period of any total disability; and (iii) death benefits payable to the designated beneficiary of the participant for a period of up to 10 years. Benefits are determined according to one of three formulas contained in the SCP, and the SCP is administered by the Compensation Committee of the Company’s Board of Directors, which has full discretion in choosing participants and the benefit formula applicable to each. The Company’s obligations under the SCP are currently unfunded (although the Company uses insurance instruments to hedge its exposure thereunder). The Company is required to contribute the present value of its obligations thereunder to an irrevocable grantor trust in the event of a change in control as defined in the SCP. The Company uses a year-end measurement date for the domestic SCP. The tables presented below set forth the required disclosures in accordance with applicable accounting standards, and amounts recognized in the consolidated financial statements related to the domestic SCP. There is no service cost component of the change in benefit obligation in 2019 and 2018 as there are no longer any active participants in the plan. FISCAL YEAR 2019 2018 (in thousands) Change in benefit obligation Benefit obligation, beginning of year $ 29,142 $ 31,919 Interest cost 1,154 1,082 Benefits paid (2,030 ) (2,030 ) Actuarial loss (gain) 3,474 (1,829 ) Benefit obligation, end of year $ 31,740 $ 29,142 The amounts recognized in the consolidated balance sheets are as follows: 2019 2018 (in thousands) Current liabilities $ 2,030 $ 2,030 Non-current liabilities 29,710 27,112 Total benefit obligation $ 31,740 $ 29,142 The components of the amounts in accumulated other comprehensive income, after tax, are as follows: 2019 2018 (in thousands) Unrecognized actuarial loss $ 9,139 $ 6,906 The accumulated benefit obligation related to the SCP was $31.7 million and $29.1 million as of December 29, 2019 and December 30, 2018 , respectively. The SCP is currently unfunded; as such, the benefit obligations disclosed are also the benefit obligations in excess of the plan assets. The Company uses insurance instruments to help limit its exposure under the SCP. 2019 2018 2017 (in thousands, except for assumptions) Assumptions used to determine net periodic benefit cost Discount rate 4.10 % 3.50 % 3.85 % Rate of compensation — — — Assumptions used to determine benefit obligations Discount rate 3.05 % 4.10 % 3.50 % Rate of compensation — — — Components of net periodic benefit cost Service cost $ — $ — $ — Interest cost 1,154 1,082 1,256 Amortizations 375 464 364 Net periodic benefit cost $ 1,529 $ 1,546 $ 1,620 The changes in other comprehensive income during 2019 related to the SCP as a result of plan activity and valuation were approximately $2.2 million , after tax, primarily comprised of a net loss during the period of $2.5 million and amortization of loss of $0.3 million . During 2019 , the Company contributed $2.0 million in the form of direct benefit payments for its domestic SCP. It is anticipated that future benefit payments for the SCP will be as follows: FISCAL YEAR EXPECTED PAYMENTS (in thousands) 2020 $ 2,030 2021 2,030 2022 2,030 2023 2,030 2024 2,030 2025-2029 9,624 |
Acquisition of Nora
Acquisition of Nora | 12 Months Ended |
Dec. 29, 2019 | |
Business Combinations [Abstract] | |
Acquisition of Nora | ACQUISITION OF NORA On June 14, 2018, the Company entered into a share purchase and transfer agreement to acquire the issued and outstanding shares of nora, nora’s outstanding third-party debt, and receivables related to nora’s shareholder loans. Nora is the holding company for a Germany-based manufacturer and multinational marketer of resilient floor coverings, including rubber flooring. In connection with the signing of the nora share purchase and transfer agreement, the Company entered into a derivative instrument to address the foreign currency risk associated with a portion of the nora purchase price. This option instrument did not qualify for hedge accounting, and the mark-to-market expense of $2.8 million to record the instrument at fair value at the end of the second quarter of 2018 was recorded in other expense in our consolidated statement of operations during the second quarter. The option instrument had a notional value of €315 million (or approximately $364 million as of the end of the second quarter of 2018) and an initial maturity of 120 days . Upon completion of the nora acquisition as discussed below, the option instrument was terminated and the Company recognized a loss of approximately $1.4 million upon termination, which was recorded in other expense in our Consolidated Condensed Statement of Operations during the third quarter of 2018. 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 ). Nora is an industry leader in the rubber flooring market, and this acquisition is expected to advance the Company’s growth strategy in expanding market segments, particularly in the healthcare, life sciences and education market segments. Similar to Interface, nora operates on an international footprint and the Company expects the acquisition will also allow for geographic sales synergies as well. 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 now final and include all measurement period adjustments. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date. These amounts were finalized during the second quarter 2019 . 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 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 six 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. As of December 29, 2019 , recognized goodwill of $192.7 million and net intangible assets of $89.1 million were assigned pro-rata to the Company’s three operating segments. None of the goodwill is expected to be deductible for income tax purposes. The Company recognized $9.5 million of transaction costs related to the nora acquisition for 2018. Approximately $5.3 million of these expenses are included in selling, general and administrative expenses in the consolidated statement of operations and $4.2 million are included in other expenses related to the derivative instrument the Company used to address the foreign currency risk associated with a portion of the nora purchase price. The Company also recognized $8.8 million of debt issuance costs in connection with the amended and restated Syndicated Credit Facility, which were recorded as a reduction of long-term debt in the consolidated balance sheet at year end 2018. The following represents the pro forma consolidated statement of operations as if nora had been included in the consolidated results of the Company as of January 1, 2017. These are estimated for pro forma purposes only and do not necessarily reflect the results had nora been included as of the beginning of 2017 . Pro Forma Consolidated Statement of Operations (In thousands) 2018 2017 Revenue $ 1,340,449 $ 1,229,766 Net income 96,909 48,655 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 | 12 Months Ended |
Dec. 29, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION The Company has determined that it has three operating segments – namely, the Americas, Europe and Asia-Pacific geographic regions. 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. Nora results are included in the 2018 figures as of the date of acquisition through the end of 2018, and are included in our operating segments based on the geographic split of the operations. 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) 2019 Net Sales $ 757,112 $ 393,194 $ 192,723 $ 1,343,029 Depreciation and amortization 12,917 18,452 8,302 39,671 Total assets 728,683 618,375 200,251 1,547,309 2018 Net Sales $ 682,261 $ 319,677 $ 177,635 $ 1,179,573 Depreciation and amortization 13,732 12,862 8,567 35,161 Total assets 482,510 546,758 200,684 1,229,952 2017 Net Sales $ 588,052 $ 246,399 $ 161,992 $ 996,443 Depreciation and amortization 13,548 6,049 8,662 28,259 A reconciliation of the Company’s total operating segment depreciation and amortization, and assets to the corresponding consolidated amounts follows: FISCAL YEAR ENDED 2019 2018 2017 (in thousands) DEPRECIATION AND AMORTIZATION Total segment depreciation and amortization $ 39,671 $ 35,161 $ 28,259 Corporate depreciation and amortization 5,261 3,923 2,002 Reported depreciation and amortization $ 44,932 $ 39,084 $ 30,261 ASSETS Total segment assets $ 1,547,309 $ 1,229,952 Corporate assets 141,942 123,100 Eliminations (266,202 ) (68,408 ) Reported total assets $ 1,423,049 $ 1,284,644 The Company has a large and diverse customer base, which includes numerous customers located in foreign countries. No single unaffiliated customer accounted for more than 10% of total sales in any year during the past three years. Sales to customers in foreign markets in 2019 , 2018 and 2017 were approximately 49% , 49% and 48% , respectively, of total net sales. These sales were primarily to customers in Europe, Canada, Asia, Australia and Latin America. With the exception of the United States, no one country represented more than 10% of the Company’s net sales. Revenue and long-lived assets related to operations in the United States and other countries are as follows: FISCAL YEAR 2019 2018 2017 (in thousands) SALES TO UNAFFILIATED CUSTOMERS (1) United States $ 681,868 $ 600,093 $ 514,783 Foreign countries 661,161 579,480 481,660 Net sales $ 1,343,029 $ 1,179,573 $ 996,443 LONG-LIVED ASSETS (2) United States $ 132,390 $ 88,336 Foreign countries 192,195 204,552 Total long-lived assets $ 324,585 $ 292,888 (1) Revenue attributed to geographic areas is based on the location of the customer. (2) Long-lived assets include tangible assets physically located in foreign countries. |
Quarterly Data and Share Inform
Quarterly Data and Share Information (Unaudited) | 12 Months Ended |
Dec. 29, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Data and Share Information (Unaudited) | QUARTERLY DATA AND SHARE INFORMATION (UNAUDITED) The following tables set forth, for the fiscal periods indicated, selected consolidated financial data and information regarding the market price per share of the Company’s Common Stock. The prices represent the reported high and low sale prices during the period presented. FISCAL YEAR 2019 FIRST QUARTER (1) SECOND QUARTER (2) THIRD QUARTER (3) FOURTH QUARTER (4) (in thousands, except per share data) Net sales $ 297,688 $ 357,507 $ 348,352 $ 339,482 Gross profit 115,398 138,590 135,762 135,704 Net income 7,059 29,499 26,210 16,432 Basic income per share $ 0.12 $ 0.50 $ 0.45 $ 0.28 Diluted income per share $ 0.12 $ 0.50 $ 0.45 $ 0.28 Share prices High $ 19.40 $ 17.22 $ 15.84 $ 17.68 Low $ 13.87 $ 14.30 $ 10.37 $ 13.32 (1) Results for the first quarter of 2019 include purchase accounting amortization of $1.9 million . (2) Results for the second quarter of 2019 include purchase accounting amortization of $1.3 million . (3) Results for the third quarter of 2019 include purchase accounting amortization of $1.3 million and restructuring and other charges of $0.7 million . (4) Results for the fourth quarter of 2019 include purchase accounting amortization of $1.3 million and restructuring and other charges of $12.3 million . FISCAL YEAR 2018 FIRST QUARTER SECOND QUARTER (1) THIRD QUARTER (2) FOURTH QUARTER (3) (in thousands, except per share data) Net sales $ 240,563 $ 283,626 $ 318,325 $ 337,059 Gross profit 93,582 109,148 99,945 121,682 Net income 15,084 20,602 8,172 6,395 Basic income per share $ 0.25 $ 0.35 $ 0.14 $ 0.11 Diluted income per share $ 0.25 $ 0.35 $ 0.14 $ 0.11 Share prices High $ 26.25 $ 26.10 $ 24.50 $ 23.50 Low $ 22.10 $ 21.25 $ 21.70 $ 13.45 (1) Results for the second quarter of 2018 include transaction related expenses of $5.8 million . (2) Results for the third quarter of 2018 include purchase accounting amortization of $20.3 million and transaction related expenses of $2.4 million . (3) Results for the fourth quarter of 2018 include tax benefit of $6.7 million as a result of the finalization of the Company’s analysis of the U.S. Tax Cuts and Jobs Act, as well as restructuring and asset impairment charges of $20.5 million . Results for the fourth quarter of 2018 include purchase accounting amortization of $11.8 million and transaction related expense of $1.2 million . |
Items Reclassified from Other C
Items Reclassified from Other Comprehensive Income | 12 Months Ended |
Dec. 29, 2019 | |
Equity [Abstract] | |
Items Reclassified from Other Comprehensive Income | ITEMS RECLASSIFIED FROM OTHER COMPREHENSIVE INCOME During 2019 , 2018 , and 2017 , the Company reclassified $1.0 million , $1.8 million , and $1.6 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 selling, general and administrative expenses line item of the Company’s consolidated statement of operations. Other reclassifications out of accumulated other comprehensive income related to currency forward contracts are discussed in Note 10 entitled “ Derivative Instruments ”. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 29, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On January 19, 2020, the Company’s Board of Directors voted to terminate for cause the employment of then President and Chief Executive Officer, Jay Gould. As of December 29, 2019, the Company had accrued compensation expense for bonuses and equity awards to this individual. Because the termination was for cause, the Company is not obligated to pay these amounts, and the Company consequently expects to reverse $4.4 million in accrued expenses related to these obligations in the first quarter of 2020. As disclosed in Note 17 , subsequent to his termination, the former officer filed a lawsuit against the Company alleging, among other things, that the termination was unlawfully retaliatory and constituted a breach of his employment contract, and that the Company defamed him in connection with the termination. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Dec. 29, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts and Reserves | SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS AND RESERVES COLUMN A BALANCE, AT BEGINNING OF YEAR COLUMN B CHARGED TO COSTS AND EXPENSES (A) COLUMN C CHARGED TO OTHER ACCOUNTS COLUMN D DEDUCTIONS (DESCRIBE) (B) COLUMN E BALANCE, AT END OF YEAR (in thousands) Allowance for Doubtful Accounts: Year Ended: December 29, 2019 $ 3,540 $ 881 $ — $ 628 $ 3,793 December 30, 2018 3,493 1,848 — 1,801 3,540 December 31, 2017 3,780 635 — 922 3,493 (A) Includes changes in foreign currency exchange rates as well as the addition of the nora reserves since the acquisition date. (B) Write off of bad debt, and recovering of previously provided for amounts. COLUMN A BALANCE, AT BEGINNING OF YEAR COLUMN B CHARGED TO COSTS AND EXPENSES (A) COLUMN C CHARGED TO OTHER ACCOUNTS(B) COLUMN D DEDUCTIONS (DESCRIBE) (C) COLUMN E BALANCE, AT END OF YEAR (in thousands) Restructuring Reserve: Year Ended: December 29, 2019 $ 11,907 $ 7,944 $ 49 $ 8,357 $ 11,445 December 30, 2018 2,568 11,961 8,569 2,622 11,907 December 31, 2017 10,291 3,999 3,300 3,724 2,568 (A) Includes changes in foreign currency exchange rates as well as the nora reserves since the acquisition date. (B) Direct reduction of asset carrying value, not included in restructuring reserve. (C) Cash payments. COLUMN A BALANCE, AT BEGINNING OF YEAR COLUMN B CHARGED TO COSTS AND EXPENSES (A) COLUMN C CHARGED TO OTHER ACCOUNTS COLUMN D DEDUCTIONS (DESCRIBE) (B) COLUMN E BALANCE, AT END OF YEAR (in thousands) Warranty and Sales Allowances Reserves : Year ended: December 29, 2019 $ 3,495 $ 1,519 $ — $ 1,161 $ 3,853 December 30, 2018 4,111 1,074 — 1,690 3,495 December 31, 2017 5,529 2,071 — 3,489 4,111 (A) Includes changes in foreign currency exchange rates as well as the nora reserves since the acquisition date. (B) Represents credits and costs applied against reserve and adjustments to reflect actual exposure. (All other Schedules for which provision is made in the applicable accounting requirements of the Securities and Exchange Commission are omitted because they are either not applicable or the required information is shown in the Company’s Consolidated Financial Statements or the Notes thereto.) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 29, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. All of our subsidiaries are wholly-owned, and we are not a party to any joint venture, partnership or other variable interest entity that would potentially qualify for consolidation. All material intercompany accounts and transactions are eliminated. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Examples include provisions for returns, bad debts, product claims reserves, rebates, inventory obsolescence and the length of product life cycles, accruals associated with restructuring activities, income tax exposures and valuation allowances, environmental liabilities, and the carrying value of goodwill and property and equipment. Actual results could vary from these estimates. |
Revenue Recognition | Revenue Recognition Effective January 1, 2018, the Company adopted a new accounting standard with regard to revenue from customers. The core principle of this standard is that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principle, the guidance provides that an entity should apply the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the entity satisfies a performance obligation. The Company elected the modified retrospective approach for adoption of this new standard, as is allowed by the standard. The Company did not have any significant impact from this standard as of the date of the adoption. Revenue Recognized from Contracts with Customers Contracts with customers typically take the form of invoices for purchase of materials from the Company. Customer payment terms vary by region and are typically less than 60 days. The performance obligation is the delivery of these materials to the customer’s control. During 2019 and 2018 , approximately 98% and 97% of the Company’s total revenue, respectively, was produced from the sale of carpet, resilient flooring, rubber flooring, and related products (TacTiles installation materials, etc.) and the revenue from sales of these products is recognized upon shipment, or in certain cases, upon delivery to the customer. The transaction price for these sales is readily identifiable. The remaining revenue for 2019 and 2018 of 2% and 3% , respectively, was generated from the installation of carpet and other flooring-related material. The remaining revenue generated by the Company is for contracts to sell and install carpet and related products at customer locations. For projects underway, the Company recognized installation revenue over time as the customer simultaneously received and consumed the benefit of the services. The installation of the carpet and related products is a separate performance obligation from the sale of carpet. The majority of these projects are completed within 5 days of the start of installation. The transaction price for these sale and installation contracts is readily determinable between flooring material and installation services and is specifically identified in the contract with the customer. The Company has utilized the portfolio approach to its contracts with customers, as its contracts with customers have similar characteristics and it is reasonable to expect that the effects from applying this approach are not materially different from applying the accounting standard to individual contracts. The Company does not have any other significant revenue streams outside of these sales of flooring material, and the sale and installation of flooring material, as described above. The Company does not record taxes collected from customers and remitted to governmental authorities on a gross basis. Performance Obligations As noted above, the Company primarily generates revenue through the sale of flooring material to end users either upon shipment or upon arrival of the product at its destination. In these instances, there typically is no other obligation to the customers other than the delivery of flooring material with the exception of warranty. The Company does offer a warranty to its customers which guarantees certain on-floor performance characteristics and warrants against manufacturing defects. The warranty is not a service warranty, and there is no ability to separate the warranty obligation from the sale of the flooring or purchase them separately. The Company’s incidence of warranty claims is extremely low, with less than 0.5% of revenue in claims on an annual basis for the last three fiscal years. Given the nature of the warranty as well as the financial impact, the Company has determined that there is no need to identify this warranty as a separate performance obligation and the Company will continue to account for warranty on an accrual basis. For the Company’s installation business, the sales of carpet and other flooring materials and installation services are separate deliverables which under the revenue recognition requirements should be characterized as separate performance obligations. Prior to the adoption of the new accounting standard, the Company historically had not separated these obligations and had accounted for these installation projects on a completed contract basis. The nature of the installation projects is such that the vast majority – an amount in excess of 90% of these installation projects – are completed in less than 5 days. The Company’s largest installation customers are retail and corporate customers, and these are on a project-by-project basis and are short-term installations. The Company has evaluated these projects at the end of the reporting period and recorded revenue in accordance with the accounting standards for projects which were underway as of the end of 2019 . Costs to Obtain Contracts The Company pays sales commissions to many of its sales personnel based upon their selling activity. These are direct costs associated with obtaining the contracts and are expensed as the revenue is earned. As these commissions become payable upon shipment (or in certain cases delivery) of product, the commission is earned as the revenue is recognized. There are no other material costs the Company incurs as part of obtaining the sales contract. Shipping and Handling Shipping and handling fees billed to customers are classified in net sales in the consolidated statements of operations. Shipping and handling costs incurred are classified in cost of sales in the consolidated statements of operations. |
Research and Development | Research and Development |
Cash, Cash Equivalents and Short-Term Investments | Cash, Cash Equivalents and Short-Term Investments |
Inventories | Inventories Inventories are carried at the lower of cost (standards approximating the first-in, first-out method) or net realizable value. Costs included in inventories are based on invoiced costs and/or production costs, as applicable. Included in production costs are material, direct labor and allocated overhead. The Company writes down inventories for the difference between the carrying value of the inventories and their estimated net realizable value. If actual market conditions are less favorable than those projected by management, additional write-downs may be required. Management estimates its reserves for inventory obsolescence by continuously examining its inventories to determine if there are indicators that carrying values exceed net realizable values. Experience has shown that significant indicators that could require the need for additional inventory write-downs are the age of the inventory, the length of its product life cycles, anticipated demand for the Company’s products, and current economic conditions. While management believes that adequate write-downs for inventory obsolescence have been made in the consolidated financial statements, consumer tastes and preferences will continue to change and the Company could experience additional inventory write-downs in the future. |
Rebates | Rebates The Company has agreements to receive cash consideration from certain of its vendors, including rebates and cooperative marketing reimbursements. The amounts received from its vendors are generally presumed to be a reduction of the prices the Company pays for their products and, therefore, such amounts are reflected as either a reduction of cost of sales in the accompanying consolidated statements of operations, or, if the product inventory is still on hand at the reporting date, it is reflected as a reduction of “Inventories” on the accompanying consolidated balance sheets. Vendor rebates are typically dependent upon reaching minimum purchase thresholds. The Company evaluates the likelihood of reaching purchase thresholds using past experience and current year forecasts. When rebates can be reasonably estimated and receipt becomes probable, the Company records a portion of the rebate as the Company makes progress towards the purchase threshold. When the Company receives direct reimbursements for costs incurred in marketing the vendor’s product or service, the amount received is recorded as an offset to selling, general and administrative expenses in the accompanying consolidated statements of operations. |
Leases | Leases 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, which is based on the estimated rate for a fully collateralized borrowing that fully amortizes over a similar lease term at the commencement date and for the applicable geographical region. 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. We also made an accounting policy election not to separate lease and non-lease components for all asset classes and will account for the lease payments as a single component. |
Property and Equipment and Long-Lived Assets | Property and Equipment and Long-Lived Assets Property and equipment are carried at cost. Depreciation is computed using the straight-line method over the following estimated useful lives: buildings and improvements – ten to forty years ; and furniture and equipment – three to twelve years . Interest costs for the construction/development of certain long-term assets are capitalized and amortized over the related assets’ estimated useful lives. The Company capitalized net interest costs on qualifying expenditures of approximately $2.1 million , $0.7 million , and $0.6 million for the fiscal years 2019 , 2018 and 2017 , respectively. Depreciation expense amounted to approximately $41.5 million , $37.6 million , and $29.5 million for the years 2019 , 2018 , and 2017 respectively. Depreciation expense recorded to costs of sales in the consolidated statements of operations was $26.3 million , $21.8 million , and $14.8 million for the years 2019 , 2018 , and 2017 , respectively. Depreciation expense recorded in SG&A expenses in the consolidated statements of operations was $15.2 million , $15.8 million , and $14.7 million , for the years 2019 , 2018 , and 2017 , respectively. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the sum of the expected future undiscounted cash flow is less than the carrying amount of the asset, a loss is recognized for the difference between the fair value and carrying value of the asset. Repair and maintenance costs are charged to operating expense as incurred. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets In connection with the nora acquisition on August 7, 2018, the Company recognized goodwill of $201.9 million and acquired intangible assets of $103.3 million . Goodwill includes all purchase price accounting adjustments of approximately $18.6 million related to additional liabilities that existed at the acquisition date. Goodwill and intangible assets were assigned pro-rata to the Company’s three operating segments. None of the goodwill is expected to be deductible for income tax purposes. As of December 29, 2019 , and December 30, 2018 , the net carrying amount of goodwill was $257.4 million and $245.8 million , respectively. Other intangible assets were $89.1 million and $97.7 million as of December 29, 2019 and December 30, 2018 , respectively. Amortization expense related to intangible assets during the years 2019 , 2018 and 2017 was $5.9 million , $5.4 million and $0.7 million , respectively and are recorded in cost of sales in the consolidated statements of operations. During the fourth quarters of 2019 , 2018 and 2017 , as of the last day of the third quarter of each year, the Company performed the annual goodwill impairment test. The Company performs this test at the reporting unit level, which is one level below the segment level for the Flooring segment. In performing the impairment testing, the Company prepared valuations of reporting units on both a market comparable methodology and an income methodology, and those valuations were compared with the respective carrying values of the reporting units to determine whether any goodwill impairment existed. In preparing the valuations, past, present and future expectations of performance were considered. The annual testing indicated no potential of goodwill impairment in any of the years presented. Each of the Company’s reporting units maintained fair values in excess of their respective carrying values as of the measurement date, and therefore no impairment was indicated as a result of the impairment testing. As of December 29, 2019 , if the Company’s estimates of the fair values of its reporting units which carry a goodwill balance were 10% |
Product Warranties | Product Warranties The Company typically provides limited warranties with respect to certain attributes of its carpet products (for example, warranties regarding excessive surface wear, edge ravel and static electricity) for periods ranging from ten to twenty years , depending on the particular carpet product and the environment in which it is to be installed. Similar limited warranties are provided on certain attributes of its rubber and LVT products, typically for a period of 5 to 15 years . The Company typically warrants that services performed will be free from defects in workmanship for a period of one year following completion. In the event of a breach of warranty, the remedy typically is limited to repair of the problem or replacement of the affected product. The Company records a provision related to warranty costs based on historical experience and periodically adjusts these provisions to reflect changes in actual experience. Warranty and sales allowance reserves amounted to $3.9 million and $3.5 million as of December 29, 2019 and December 30, 2018 , respectively, and are included in “Accrued Expenses” in the accompanying consolidated balance sheets. |
Income Taxes | The Company accounts for income taxes under an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. In estimating future tax consequences, the Company generally considers all expected future events other than enactments of changes in tax laws or rates. The effect on deferred tax assets and liabilities of a change in tax rates will be recognized as income or expense in the period that includes the enactment date. The Company records a valuation allowance to reduce its deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will expire before realization of the benefit or that future deductibility is not probable. The ultimate realization of the deferred tax assets depends on the ability to generate sufficient taxable income of the appropriate character in the future. This requires us to use estimates and make assumptions regarding significant future events such as the taxability of entities operating in the various taxing jurisdictions. For uncertain tax positions, the Company applies the provisions of relevant authoritative guidance, which requires application of a “more likely than not” threshold to the recognition and derecognition of tax positions. The Company’s ongoing assessments of the more likely than not outcomes of tax authority examinations and related tax positions require significant judgment and can increase or decrease the Company’s effective tax rate as well as impact operating results. For further information, see Note 16 entitled “ Income Taxes .” |
Fair Values of Financial Instruments | Fair Values of Financial Instruments Fair values of cash and cash equivalents and short-term debt approximate cost due to the short period of time to maturity. Fair values of debt are based on quoted market prices or pricing models using current market rates and classified as level 2 within the fair value hierarchy. |
Translation of Foreign Currencies | Translation of Foreign Currencies |
Earnings Per Share | Basic earnings per share is computed based on the average number of common shares outstanding. Diluted earnings per share reflects the increase in average common shares outstanding that would result from the assumed exercise of outstanding stock options, calculated using the treasury stock method. |
Stock-Based Compensation | Stock-Based Compensation The Company has stock-based employee compensation plans, which are described more fully in Note 13 entitled “ Shareholders' Equity .” The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option pricing model. However, there were no stock options granted in 2019 , 2018 or 2017 . The Company recognizes expense related to its restricted stock and performance share grants based on the grant date fair value of the shares awarded, as determined by its market price at date of grant. |
Derivative Financial Instruments | Derivative Financial Instruments Derivatives are recognized on the balance sheet at fair value. For derivatives that meet the criteria as designated cash flow hedges, the effective portion of changes in the fair value of the derivative are recognized in other comprehensive income until the hedged item is recognized in earnings. Derivative liabilities are recorded in accrued expenses and derivative assets are recorded in other current assets in the consolidated balance sheet. |
Pension Benefits | Pension Benefits Net pension expense recorded is based on, among other things, assumptions about the discount rate, estimated return on plan assets and salary increases. While the Company believes these assumptions are reasonable, changes in these and other factors and differences between actual and assumed changes in the present value of liabilities or assets of the Company’s plans above certain thresholds could cause net annual expense to increase or decrease materially from year to year. The actuarial assumptions used in the Company’s salary continuation plan and foreign defined benefit plans reporting are reviewed periodically and compared with external benchmarks to ensure that they appropriately account for our future pension benefit obligation. The expected long-term rate of return on plan assets assumption is based on weighted average expected returns for each asset class. Expected returns reflect a combination of historical performance analysis and the forward-looking views of the financial markets, and include input from actuaries, investment service firms and investment managers. |
Allowances for Doubtful Accounts | Allowances for Doubtful Accounts The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of customers to make required payments. Estimating this amount requires the Company to analyze the financial strengths of its customers. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. By its nature, such an estimate is highly subjective, and it is possible that the amount of accounts receivable that the Company is unable to collect may be different than the amount initially estimated. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to current year financial statement presentation. These reclassifications had no effect on reported income, comprehensive income, cash flows, or shareholders’ equity as previously reported. |
Fiscal Year | Fiscal Year The Company’s fiscal year is the 52 or 53 week period ending on the Sunday nearest December 31. All references herein to “ 2019 ,” “ 2018 ,” and “ 2017 ,” mean the fiscal years ended December 29, 2019 , December 30, 2018 , and December 31, 2017 , respectively. Fiscal years 2019 , 2018 and 2017 were each comprised of 52 weeks. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements On December 31, 2018, the Company adopted Accounting Standards Codification (“ASC”) Topic 842, “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 Company adopted the new lease standard using the modified retrospective approach and recorded operating lease right-of-use assets and operating lease liabilities for approximately $115.0 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 11 entitled “ Leases ” for additional information. On December 31, 208 the Company adopted, Accounting Standards Update (“ASU”) 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” which addresses a narrow-scope financial reporting issue that arose as a consequence of the U.S. Tax Cuts and Jobs Act. The former guidance required 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 was 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 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. On December 31, 2018, the Company adopted ASU 2018-07, “Improvements to Nonemployee Share-Based Payment Accounting.” This standard requires that the accounting treatment for non-employee share-based payments for goods or services be consistent with current accounting 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 also eliminates the current GAAP requirement to reassess the classification of non-employee share-based payments awards upon vesting. 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 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes.” The amendments in this update simplify the accounting for income taxes by removing certain exceptions to the general principles in ASC Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of ASC Topic 740 by clarifying and amending existing guidance. This new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. 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 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. 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. 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 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. The Company does not anticipate that the adoption of the new standard 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 does not expect the adoption of this ASU to have a significant impact on its consolidated financial statements, due to the short-term nature of its trade accounts receivable. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 29, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Goodwill | The changes in the carrying amounts of goodwill for the years ended December 29, 2019 and December 30, 2018 are as follows (in thousands): BALANCE DECEMBER 31, 2018 ACQUISITIONS PURCHASE PRICE ACCOUNTING ADJUSTMENTS IMPAIRMENT FOREIGN CURRENCY TRANSLATION BALANCE DECEMBER 29, 2019 (in thousands) $ 245,815 $ — $ 17,181 $ — $ (5,557 ) $ 257,439 BALANCE JANUARY 1, 2018 ACQUISITIONS PURCHASE PRICE ACCOUNTING ADJUSTMENTS IMPAIRMENT FOREIGN CURRENCY TRANSLATION BALANCE DECEMBER 30, 2018 (in thousands) $ 68,754 $ 183,348 $ 1,377 — $ (7,664 ) $ 245,815 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 29, 2019 | |
Revenues [Abstract] | |
Disaggregation of Revenue | For 2019 , revenue from the Company’s customers is broken down by geography as follows: Geography Percentage of Net Sales Americas 56.4% Europe 29.3% Asia-Pacific 14.3% |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 29, 2019 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories are summarized as follows: END OF FISCAL YEAR 2019 2018 (in thousands) Finished goods $ 184,336 $ 180,847 Work-in-process 13,152 17,762 Raw materials 56,096 60,048 Inventory, Net $ 253,584 $ 258,657 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 29, 2019 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | Property, plant and equipment consisted of the following: END OF FISCAL YEAR 2019 2018 (in thousands) Land $ 17,777 $ 16,870 Buildings 148,833 143,725 Equipment (1) 615,149 565,251 781,759 725,846 Accumulated depreciation and amortization (2) (457,174 ) (432,958 ) Property, plant and equipment $ 324,585 $ 292,888 (1) 2019 includes $5.9 million of leased equipment. (2) 2019 includes $0.9 million of accumulated amortization on leased equipment. |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 29, 2019 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses | Accrued expenses are summarized as follows: END OF FISCAL YEAR 2019 2018 (in thousands) Compensation $ 86,696 $ 80,877 Interest 1,485 374 Restructuring 11,445 11,907 Taxes 16,809 14,539 Accrued purchases 4,910 5,329 Warranty and sales allowances 3,853 3,495 Other 15,454 9,450 Accrued Expenses $ 140,652 $ 125,971 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 29, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Future Maturities of Borrowings | The aggregate maturities of borrowings for each of the five fiscal years subsequent to 2019 are as follows: FISCAL YEAR AMOUNT (in thousands) 2020 $ 31,022 2021 31,022 2022 31,022 2023 509,450 2024 — Thereafter — Total Debt $ 602,516 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 29, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value of Derivative Instruments | The table below sets forth the fair value of derivative instruments as of December 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 contract Other current assets — Accrued expenses 5,801 $ — $ 5,801 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, net of tax (in thousands): Fiscal Year Fiscal Year Fiscal Year 2019 2018 2017 (in thousands) Foreign currency contracts gain (loss) $ 468 $ (468 ) $ — Interest rate swap contracts (loss) gain (5,957 ) 890 904 (Loss) gain recognized in accumulated other comprehensive income $ (5,489 ) $ 422 $ 904 The following table summarizes the gains and losses reclassified from accumulated other comprehensive income into earnings during 2019 (in thousands): Fiscal Year Statement of Operations Location 2019 (in thousands) Foreign currency contracts (loss) Cost of sales $ (450 ) Interest rate swap contracts gain Interest expense 151 Total $ (299 ) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 29, 2019 | |
Leases [Abstract] | |
Schedule of Lease Cost | The table below represents a summary of the balances recorded in the consolidated balance sheet related to our leases as of December 29, 2019 : December 29, 2019 (In thousands) Balance Sheet Location Operating Leases Finance Leases Operating lease right-of-use assets $ 107,044 Current portion of operating lease liabilities $ 15,914 Operating lease liabilities 91,829 Total operating lease liabilities $ 107,743 Property and equipment $ 5,007 Accrued expenses $ 1,489 Other long-term liabilities 1,673 Total finance lease liabilities $ 3,162 Lease Costs Fiscal Year 2019 Lease cost (In thousands) Finance lease cost: Amortization of right-of-use assets $ 890 Interest on lease liabilities 51 Operating lease cost 24,246 Short-term lease cost 2,057 Variable lease cost 3,665 Total lease cost $ 30,909 Other supplemental information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 51 Operating cash flows from operating leases 22,597 Financing cash flows from finance leases 1,255 Right-of-use assets obtained in exchange for new finance lease liabilities 2,240 Right-of-use assets obtained in exchange for new operating lease liabilities 12,655 Rental expense amounted to approximately $28.5 million and $22.0 million for the years 2018 and 2017 , respectively. December 29, 2019 Weighted-average remaining lease term – finance leases (in years) 2.76 Weighted-average remaining lease term – operating leases (in years) 10.60 Weighted-average discount rate – finance leases 2.06 % Weighted-average discount rate – operating leases 5.86 % |
Lease Liability Maturity Schedule | Maturity analysis of lease payments under non-cancellable leases were as follows: Fiscal Year Operating Leases Finance Leases (In thousands) 2020 $ 21,659 $ 1,543 2021 17,264 861 2022 13,825 475 2023 11,504 290 2024 9,959 88 Thereafter 75,360 — Total future minimum lease payments (undiscounted) 149,571 3,257 Less: Present value discount (41,828 ) (95 ) Total lease liability $ 107,743 $ 3,162 |
Lease Liability Maturity Schedule | Maturity analysis of lease payments under non-cancellable leases were as follows: Fiscal Year Operating Leases Finance Leases (In thousands) 2020 $ 21,659 $ 1,543 2021 17,264 861 2022 13,825 475 2023 11,504 290 2024 9,959 88 Thereafter 75,360 — Total future minimum lease payments (undiscounted) 149,571 3,257 Less: Present value discount (41,828 ) (95 ) Total lease liability $ 107,743 $ 3,162 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 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 years 2019 , 2018 , and 2017 . 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 — — — 79,200 — — — Stock issuances under employee plans 511 51 636 — — — — Other issuances of common stock 223 22 3,900 — — — — Unamortized stock compensation expense related to stock awards — — (4,139 ) — — — — Cash dividends paid — — — (15,358 ) — — — Forfeitures and compensation expense related to stock awards (270 ) (26 ) 4,638 — — — — Share repurchases (1,556 ) (156 ) (24,998 ) — — — — Pension liability adjustment — — — — (13,090 ) — — Foreign currency translation adjustment — — — — — (11,652 ) — Cash flow hedge unrealized gain — — — — — — (5,489 ) Balance, at December 29, 2019 58,416 $ 5,842 $ 250,306 $ 286,056 $ (56,700 ) $ (113,139 ) $ (4,163 ) SHARES COMMON STOCK ADDITIONAL PAID-IN CAPITAL RETAINED PENSION LIABILITY FOREIGN CURRENCY TRANSLATION ADJUSTMENT CASH FLOW HEDGE (in thousands) Balance, at December 31, 2017 59,806 $ 5,981 $ 271,271 $ 187,432 $ (56,554 ) $ (78,943 ) $ 904 Net income — — — 50,253 — — — Stock issuances under employee plans 224 22 476 — — — — Other issuances of common stock 182 18 4,809 — — — — Unamortized stock compensation expense related to stock awards — — (4,710 ) — — — — Cash dividends paid — — — (15,471 ) — — — Forfeitures and compensation expense related to stock awards (89 ) (9 ) 12,847 — — — — Share repurchases (615 ) (61 ) (14,424 ) — — — — Pension liability adjustment — — — — 12,944 — — Foreign currency translation adjustment — — — — — (22,544 ) — Cash flow hedge unrealized gain (loss) — — — — — — 422 Balance, at December 30, 2018 59,508 $ 5,951 $ 270,269 $ 222,214 $ (43,610 ) $ (101,487 ) $ 1,326 SHARES COMMON STOCK ADDITIONAL PAID-IN CAPITAL RETAINED PENSION LIABILITY FOREIGN CURRENCY TRANSLATION ADJUSTMENT CASH FLOW HEDGE (in thousands) Balance, at January 1, 2017 64,238 $ 6,424 $ 359,451 $ 140,238 $ (54,862 ) $ (110,522 ) $ — Net income — — — 53,246 — — — Stock issuances under employee plans 36 4 508 — — — — Other issuances of common stock 253 25 4,507 — — — — Unamortized stock compensation expense related to stock awards — — (4,532 ) — — — — Cash dividends paid — — — (15,487 ) — — — Forfeitures and compensation expense related to stock awards (93 ) (9 ) 5,574 — — — — Share repurchases (4,628 ) (463 ) (91,113 ) — — — — Pension liability adjustment — — — — (1,692 ) — — Foreign currency translation adjustment — — — — — 31,579 — Cash flow hedge unrealized gain (loss) — — — — — — 904 Windfall tax benefit - share-based payment awards — — (3,124 ) — — — — Adoption of new accounting standard - share-based payment awards — — — 9,435 — — — Balance, at December 31, 2017 59,806 $ 5,981 $ 271,271 $ 187,432 $ (56,554 ) $ (78,943 ) $ 904 |
Summary of Stock Options Outstanding and Activity | The following table summarizes stock options outstanding as of December 29, 2019 , as well as activity during the previous fiscal year: Shares Weighted Average Exercise Price Outstanding at December 30, 2018 42,500 $ 9.56 Granted — — Exercised (10,000 ) 4.31 Forfeited or canceled (5,000 ) 4.31 Outstanding at December 29, 2019 (a) 27,500 $ 12.43 Exercisable at December 29, 2019 (b) 27,500 $ 12.43 (a) At December 29, 2019 , the weighted-average remaining contractual life of options outstanding was less than 1 year. (b) At December 29, 2019 , the weighted-average remaining contractual life of options exercisable was less than 1 year. |
Summary of Restricted Stock Outstanding and Activity | The following table summarizes restricted stock outstanding as of December 29, 2019 , as well as activity during the previous fiscal year: Shares Weighted Average Grant Date Fair Value Outstanding at December 30, 2018 549,000 $ 27.65 Granted 223,500 17.54 Vested (241,200 ) 18.41 Forfeited or canceled (63,100 ) 19.88 Outstanding at December 29, 2019 468,200 $ 28.63 |
Summary of Performance Shares Outstanding and Activity | The following table summarizes the performance shares outstanding as of December 29, 2019 , as well as the activity during the year: Shares Weighted Average Grant Date Fair Value Outstanding at December 30, 2018 759,500 $ 20.17 Granted 344,500 17.54 Vested (360,000 ) 19.63 Forfeited or canceled (232,000 ) 18.10 Outstanding at December 29, 2019 512,000 $ 19.71 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 29, 2019 | |
Earnings Per Share [Abstract] | |
Distributed and Undistributed Earnings | The following tables show distributed and undistributed earnings: Fiscal Year 2019 2018 2017 Earnings per share: Basic earnings per share Distributed earnings $ 0.26 $ 0.26 $ 0.25 Undistributed earnings 1.08 0.58 0.61 $ 1.34 $ 0.84 $ 0.86 Diluted earnings per share Distributed earnings $ 0.26 $ 0.26 $ 0.25 Undistributed earnings 1.08 0.58 0.61 $ 1.34 $ 0.84 $ 0.86 |
Schedule of Net Income and Weighted Average Shares for Basic and Diluted EPS | The following table presents net income that was attributable to participating securities: Fiscal Year 2019 2018 2017 (in millions) Net income attributable to participating securities $ 0.6 $ 0.5 $ 0.4 The weighted average shares for basic and diluted EPS were as follows: Fiscal Year 2019 2018 2017 (in thousands) Weighted Average Shares Outstanding 58,475 58,995 61,528 Participating Securities 468 549 468 Shares for Basic Earnings Per Share 58,943 59,544 61,996 Dilutive Effect of Stock Options 5 22 44 Shares for Diluted Earnings Per Share 58,948 59,566 62,040 |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 12 Months Ended |
Dec. 29, 2019 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring Activities | A summary of the 2019 restructuring activities is presented below: Charged to Expenses 2019 Deductions 2019 Charged to Other Accounts 2019 Balance at December 29, 2019 Workforce Reduction $ 8,827 $ 193 $ — $ 8,634 Other Exit Costs 188 — 49 139 Total $ 9,015 $ 193 $ 49 $ 8,773 A summary of these 2018 restructuring activities is presented below: Balance at Beginning of Year Deductions 2019 Charged to Expenses 2019 Balance at December 29, 2019 (in thousands) Workforce Reduction $ 10,763 $ 7,122 $ (1,743 ) $ 1,898 Other Exit Costs 1,144 1,042 672 774 Total $ 11,907 $ 8,164 $ (1,071 ) $ 2,672 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 29, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Before Taxes on Income | Income before taxes on income consisted of the following: FISCAL YEAR 2019 2018 2017 (in thousands) U.S. operations $ 46,463 $ 35,728 $ 53,407 Foreign operations 55,353 19,263 47,132 Income before taxes $ 101,816 $ 54,991 $ 100,539 |
Schedule of Provisions for Federal, Foreign and State Income Taxes | Provisions for federal, foreign and state income taxes in the consolidated statements of operations consisted of the following components: FISCAL YEAR 2019 2018 2017 (in thousands) Current expense/(benefit): Federal $ 8,414 $ (3,549 ) $ 10,245 Foreign 14,513 14,548 11,923 State 2,312 2,628 1,414 Current expense 25,239 13,627 23,582 Deferred expense/(benefit): Federal (625 ) 2,145 20,467 Foreign (2,198 ) (11,228 ) 1,214 State 200 194 2,030 Deferred expense/(benefit) (2,623 ) (8,889 ) 23,711 Total income tax expense $ 22,616 $ 4,738 $ 47,293 |
Schedule of Effective Income Tax Rate Reconciliation | The following summary reconciles income taxes at the U.S. federal statutory rate of 21% applicable for 2019 and 2018 and 35% applicable for 2017 to the Company’s actual income tax expense: FISCAL YEAR 2019 2018 2017 (in thousands) Income taxes at U.S. federal statutory rate $ 21,381 $ 11,548 $ 35,189 Increase (decrease) in taxes resulting from: State income taxes, net of federal tax effect 2,321 2,228 2,055 Non-deductible business expenses 933 1,352 695 Non-deductible employee compensation 1,453 2,566 80 Tax effects of Company owned life insurance (636 ) 235 (1,295 ) Tax effects of Tax Act: One-time transition tax on foreign earnings — (5,000 ) 11,707 Remeasurement of net Deferred Tax Asset — (1,739 ) 3,467 Tax effects of undistributed earnings from foreign subsidiaries not deemed to be indefinitely reinvested (183 ) 61 523 Foreign and U.S. tax effects attributable to foreign operations 783 (2,226 ) (4,575 ) Valuation allowance effect – NOL 133 (79 ) (858 ) Federal tax credits (700 ) (2,863 ) (632 ) Changes in unrecognized tax benefits (3,324 ) (1,010 ) 874 Other 455 (335 ) 63 Income tax expense $ 22,616 $ 4,738 $ 47,293 |
Schedule of Deferred Tax Assets and Liabilities | The temporary differences that give rise to significant portions of the deferred tax assets and liabilities are as follows: FISCAL YEAR 2019 2018 (in thousands) Deferred tax assets Lease liability $ 29,782 $ — Net operating loss carryforwards 3,090 2,349 Derivative instruments 1,638 — Deferred compensation 20,194 18,945 Inventory 3,200 4,712 Prepaids, accruals and reserves 7,935 6,473 Pensions 9,229 4,290 Other 71 — Deferred tax asset (gross) 75,139 36,769 Valuation allowance on net operating loss carryforwards (971 ) (1,067 ) Deferred tax asset (net) $ 74,168 $ 35,702 Deferred tax liabilities Property and equipment $ 23,770 $ 24,871 Intangible assets 33,760 18,699 Lease asset 29,301 — Foreign currency 3,026 2,357 Foreign withholding taxes on unremitted earnings 178 348 Other — 314 Deferred tax liabilities 90,035 46,589 Net deferred tax liabilities $ 15,867 $ 10,887 |
Schedule of Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits is as follows: FISCAL YEAR 2019 2018 2017 (in thousands) Balance at beginning of year $ 28,143 $ 29,221 $ 27,888 Increases related to tax positions taken during the current year 318 671 627 Increases related to tax positions taken during the prior years 1,093 180 709 Decreases related to tax positions taken during the prior years (2,809 ) — — Decreases related to settlements with taxing authorities — — — Decreases related to lapse of applicable statute of limitations (1,266 ) (1,861 ) (462 ) Changes due to foreign currency translation 7 (68 ) 459 Balance at end of year $ 25,486 $ 28,143 $ 29,221 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 29, 2019 | |
Retirement Benefits [Abstract] | |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | The following table summarizes this information as of December 29, 2019 and December 30, 2018 . END OF FISCAL YEAR 2019 2018 (in thousands) UK Plan Projected Benefit Obligation $ 170,958 $ 157,351 Accumulated Benefit Obligation 170,958 157,351 Plan Assets 174,156 158,990 Dutch Plan Projected Benefit Obligation $ 100,996 $ 91,837 Accumulated Benefit Obligation 100,996 90,910 Plan Assets 92,294 90,323 Nora Plan Projected Benefit Obligation $ 42,887 $ 36,320 Accumulated Benefit Obligation 42,887 36,320 Plan Assets — — The tables presented below set forth the required disclosures in accordance with applicable accounting standards, and amounts recognized in the consolidated financial statements related to the domestic SCP. There is no service cost component of the change in benefit obligation in 2019 and 2018 as there are no longer any active participants in the plan. FISCAL YEAR 2019 2018 (in thousands) Change in benefit obligation Benefit obligation, beginning of year $ 29,142 $ 31,919 Interest cost 1,154 1,082 Benefits paid (2,030 ) (2,030 ) Actuarial loss (gain) 3,474 (1,829 ) Benefit obligation, end of year $ 31,740 $ 29,142 The tables presented below set forth the funded status of the Company’s significant foreign defined benefit plans and required disclosures in accordance with applicable accounting standards: FISCAL YEAR 2019 2018 (in thousands) Change in benefit obligation Benefit obligation, beginning of year $ 285,508 $ 320,548 Service cost 1,589 1,112 Interest cost 5,676 5,467 Benefits and expenses paid (13,034 ) (11,850 ) Business combinations — 36,903 Actuarial loss (gain) 37,409 (53,753 ) Curtailment gain (2,421 ) — Member contributions 221 233 Currency translation adjustment (107 ) (13,152 ) Benefit obligation, end of year $ 314,841 $ 285,508 Change in plan assets Plan assets, beginning of year $ 249,313 $ 307,166 Actual return on assets 24,999 (37,495 ) Company contributions 3,954 4,095 Benefits paid (13,034 ) (11,850 ) Currency translation adjustment 1,218 (12,603 ) Plan assets, end of year $ 266,450 $ 249,313 Reconciliation to balance sheet Funded status benefit asset/(liability) $ (48,391 ) $ (36,195 ) Amounts recognized in accumulated other comprehensive income (after tax) Unrecognized actuarial loss $ 47,561 $ 37,141 Unamortized prior service credits — (437 ) Total amount recognized $ 47,561 $ 36,704 Accumulated Benefit Obligation $ 314,841 $ 284,581 |
Schedule of Net Periodic Benefit Cost | FISCAL YEAR 2019 2018 2017 (in thousands) Components of net periodic benefit cost Service cost $ 1,589 $ 1,112 $ 1,628 Interest cost 5,676 5,467 5,559 Expected return on plan assets (5,561 ) (6,234 ) (6,496 ) Amortization of prior service cost 63 (27 ) (34 ) Amortization of net actuarial (gains)/losses 991 1,394 1,287 Curtailment gain (453 ) — — Net periodic benefit cost $ 2,305 $ 1,712 $ 1,944 |
Schedule of Assumptions Used to Determine Net Periodic Benefit Cost | The accumulated benefit obligation related to the SCP was $31.7 million and $29.1 million as of December 29, 2019 and December 30, 2018 , respectively. The SCP is currently unfunded; as such, the benefit obligations disclosed are also the benefit obligations in excess of the plan assets. The Company uses insurance instruments to help limit its exposure under the SCP. 2019 2018 2017 (in thousands, except for assumptions) Assumptions used to determine net periodic benefit cost Discount rate 4.10 % 3.50 % 3.85 % Rate of compensation — — — Assumptions used to determine benefit obligations Discount rate 3.05 % 4.10 % 3.50 % Rate of compensation — — — Components of net periodic benefit cost Service cost $ — $ — $ — Interest cost 1,154 1,082 1,256 Amortizations 375 464 364 Net periodic benefit cost $ 1,529 $ 1,546 $ 1,620 During 2019 , other comprehensive income was impacted after tax by approximately $10.9 million comprised of actuarial loss of approximately $11.4 million and amortization of $0.5 million . FISCAL YEAR 2019 2018 2017 Weighted average assumptions used to determine net periodic benefit cost Discount rate 1.9 % 1.9 % 2.0 % Expected return on plan assets 2.1 % 1.8 % 2.3 % Rate of compensation 1.75 % 1.75 % 1.75 % Weighted average assumptions used to determine benefit obligations Discount rate 1.7 % 2.5 % 2.2 % Rate of compensation 1.75 % 1.75 % 1.75 % |
Schedule of Allocation of Plan Assets | The Company’s actual weighted average asset allocations for 2019 and 2018 , and the targeted asset allocation for 2020, of the foreign defined benefit plans by asset category, are as follows: FISCAL YEAR 2020 2019 2018 Target Allocation Percentage of Plan Assets at Year End Asset Category: Equity Securities 15% — 20% 3% 16% Debt and Debt Securities 35% — 45% 61% 44% Short-term investments —% — —% 1% 3% Other investments 40% — 50% 35% 37% 100% 100% 100% The tables below detail the foreign defined benefit plans’ assets by asset allocation and fair value hierarchy: FISCAL YEAR 2019 Level 1 Level 2 Level 3 (in thousands) Asset Class Equity Securities $ 8,143 $ — $ — Debt and Debt Securities 54,686 87,047 19,996 Short-term investments (1) 1,322 — — Other investments (2) — — 95,256 $ 64,151 $ 87,047 $ 115,252 FISCAL YEAR 2018 Level 1 Level 2 Level 3 (in thousands) Asset Class Equity Securities $ 39,392 $ — $ — Debt and Debt Securities 33,134 60,913 16,012 Short-term Investments (1) 6,620 — — Other Investments (2) — — 93,242 $ 79,146 $ 60,913 $ 109,254 (1) Short-term investments are generally invested in interest-bearing accounts. (2) Other investments is comprised of insurance contracts. Pension Plan Assets by Category as of December 29, 2019 Dutch Plan UK Plan Total (in thousands) Level 1 $ — $ 64,151 $ 64,151 Level 2 — 87,047 87,047 Level 3 92,294 22,958 115,252 Total $ 92,294 $ 174,156 $ 266,450 Pension Plan Assets by Category as of December 30, 2018 Dutch Plan UK Plan Total (in thousands) Level 1 $ — $ 79,146 $ 79,146 Level 2 — 60,913 60,913 Level 3 90,323 18,931 109,254 Total $ 90,323 $ 158,990 $ 249,313 |
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets | The table below indicates the change in value related to these level 3 assets during 2019 and 2018 : FISCAL YEAR 2019 2018 (in thousands) Balance of level 3 assets, beginning of year $ 109,254 $ 150,977 Actual return on plan assets 5,463 (37,610 ) Purchases, sales and settlements, net 663 — Assets transferred into level 3 2,101 696 Translation adjustment (2,229 ) (4,809 ) Ending Balance of level 3 assets $ 115,252 $ 109,254 |
Schedule of Expected Future Benefit Payments | During 2019 , the Company contributed $2.0 million in the form of direct benefit payments for its domestic SCP. It is anticipated that future benefit payments for the SCP will be as follows: FISCAL YEAR EXPECTED PAYMENTS (in thousands) 2020 $ 2,030 2021 2,030 2022 2,030 2023 2,030 2024 2,030 2025-2029 9,624 During 2020 , the Company expects to contribute $4.4 million to the plans. It is anticipated that future benefit payments for the foreign defined benefit plans will be as follows: FISCAL YEAR EXPECTED PAYMENTS (in thousands) 2020 $ 10,671 2021 10,772 2022 10,836 2023 11,068 2024 11,292 2025-2029 58,556 |
Schedule of Amounts Recognized in Consolidated Balance Sheet and Accumulated Other Comprehensive Income | The components of the amounts in accumulated other comprehensive income, after tax, are as follows: 2019 2018 (in thousands) Unrecognized actuarial loss $ 9,139 $ 6,906 The amounts recognized in the consolidated balance sheets are as follows: 2019 2018 (in thousands) Current liabilities $ 2,030 $ 2,030 Non-current liabilities 29,710 27,112 Total benefit obligation $ 31,740 $ 29,142 |
Acquisition of Nora (Tables)
Acquisition of Nora (Tables) | 12 Months Ended |
Dec. 29, 2019 | |
Business Combinations [Abstract] | |
Schedule of Estimated Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date. These amounts were finalized during the second quarter 2019 . 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 |
Schedule of Business Acquisition, Pro Forma Information | The following represents the pro forma consolidated statement of operations as if nora had been included in the consolidated results of the Company as of January 1, 2017. These are estimated for pro forma purposes only and do not necessarily reflect the results had nora been included as of the beginning of 2017 . Pro Forma Consolidated Statement of Operations (In thousands) 2018 2017 Revenue $ 1,340,449 $ 1,229,766 Net income 96,909 48,655 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 29, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Operating Segment Information | Summary information by operating segment follows: AMERICAS EUROPE ASIA- PACIFIC TOTAL (in thousands) 2019 Net Sales $ 757,112 $ 393,194 $ 192,723 $ 1,343,029 Depreciation and amortization 12,917 18,452 8,302 39,671 Total assets 728,683 618,375 200,251 1,547,309 2018 Net Sales $ 682,261 $ 319,677 $ 177,635 $ 1,179,573 Depreciation and amortization 13,732 12,862 8,567 35,161 Total assets 482,510 546,758 200,684 1,229,952 2017 Net Sales $ 588,052 $ 246,399 $ 161,992 $ 996,443 Depreciation and amortization 13,548 6,049 8,662 28,259 |
Reconciliation of Depreciation, Amortization, and Assets from Operating Segments to Consolidated | A reconciliation of the Company’s total operating segment depreciation and amortization, and assets to the corresponding consolidated amounts follows: FISCAL YEAR ENDED 2019 2018 2017 (in thousands) DEPRECIATION AND AMORTIZATION Total segment depreciation and amortization $ 39,671 $ 35,161 $ 28,259 Corporate depreciation and amortization 5,261 3,923 2,002 Reported depreciation and amortization $ 44,932 $ 39,084 $ 30,261 ASSETS Total segment assets $ 1,547,309 $ 1,229,952 Corporate assets 141,942 123,100 Eliminations (266,202 ) (68,408 ) Reported total assets $ 1,423,049 $ 1,284,644 |
Schedule of Revenue and Long-lived Assets | Revenue and long-lived assets related to operations in the United States and other countries are as follows: FISCAL YEAR 2019 2018 2017 (in thousands) SALES TO UNAFFILIATED CUSTOMERS (1) United States $ 681,868 $ 600,093 $ 514,783 Foreign countries 661,161 579,480 481,660 Net sales $ 1,343,029 $ 1,179,573 $ 996,443 LONG-LIVED ASSETS (2) United States $ 132,390 $ 88,336 Foreign countries 192,195 204,552 Total long-lived assets $ 324,585 $ 292,888 (1) Revenue attributed to geographic areas is based on the location of the customer. (2) Long-lived assets include tangible assets physically located in foreign countries. |
Quarterly Data and Share Info_2
Quarterly Data and Share Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 29, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | The following tables set forth, for the fiscal periods indicated, selected consolidated financial data and information regarding the market price per share of the Company’s Common Stock. The prices represent the reported high and low sale prices during the period presented. FISCAL YEAR 2019 FIRST QUARTER (1) SECOND QUARTER (2) THIRD QUARTER (3) FOURTH QUARTER (4) (in thousands, except per share data) Net sales $ 297,688 $ 357,507 $ 348,352 $ 339,482 Gross profit 115,398 138,590 135,762 135,704 Net income 7,059 29,499 26,210 16,432 Basic income per share $ 0.12 $ 0.50 $ 0.45 $ 0.28 Diluted income per share $ 0.12 $ 0.50 $ 0.45 $ 0.28 Share prices High $ 19.40 $ 17.22 $ 15.84 $ 17.68 Low $ 13.87 $ 14.30 $ 10.37 $ 13.32 (1) Results for the first quarter of 2019 include purchase accounting amortization of $1.9 million . (2) Results for the second quarter of 2019 include purchase accounting amortization of $1.3 million . (3) Results for the third quarter of 2019 include purchase accounting amortization of $1.3 million and restructuring and other charges of $0.7 million . (4) Results for the fourth quarter of 2019 include purchase accounting amortization of $1.3 million and restructuring and other charges of $12.3 million . FISCAL YEAR 2018 FIRST QUARTER SECOND QUARTER (1) THIRD QUARTER (2) FOURTH QUARTER (3) (in thousands, except per share data) Net sales $ 240,563 $ 283,626 $ 318,325 $ 337,059 Gross profit 93,582 109,148 99,945 121,682 Net income 15,084 20,602 8,172 6,395 Basic income per share $ 0.25 $ 0.35 $ 0.14 $ 0.11 Diluted income per share $ 0.25 $ 0.35 $ 0.14 $ 0.11 Share prices High $ 26.25 $ 26.10 $ 24.50 $ 23.50 Low $ 22.10 $ 21.25 $ 21.70 $ 13.45 (1) Results for the second quarter of 2018 include transaction related expenses of $5.8 million . (2) Results for the third quarter of 2018 include purchase accounting amortization of $20.3 million and transaction related expenses of $2.4 million . (3) Results for the fourth quarter of 2018 include tax benefit of $6.7 million as a result of the finalization of the Company’s analysis of the U.S. Tax Cuts and Jobs Act, as well as restructuring and asset impairment charges of $20.5 million . Results for the fourth quarter of 2018 include purchase accounting amortization of $11.8 million and transaction related expense of $1.2 million . |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) | Aug. 07, 2018USD ($) | Dec. 29, 2019USD ($)Segmentshares | Dec. 30, 2018USD ($)shares | Dec. 31, 2017USD ($)shares |
Summary of Significant Accounting Policies [Line Items] | ||||
Percent of warranty claims to revenue (less than) (percentage) | 0.50% | 0.30% | 0.30% | |
Percentage of installation projects completed in less than five days (percent) | 0.90 | |||
Research and development expense | $ 17,800,000 | $ 16,400,000 | $ 14,000,000 | |
Cash equivalents | 0 | 0 | ||
Short-term investments | 0 | |||
Interest paid | 22,700,000 | 13,800,000 | 6,300,000 | |
Income taxes paid | 34,800,000 | 29,500,000 | 19,100,000 | |
Proceeds from income tax refunds | 1,900,000 | 800,000 | 100,000 | |
Interest costs capitalized | 2,100,000 | 700,000 | 600,000 | |
Depreciation | 41,500,000 | 37,600,000 | 29,500,000 | |
Accumulated amortization of goodwill | 77,300,000 | |||
Accumulated impairment losses recognized | 212,600,000 | |||
Goodwill | 257,439,000 | 245,815,000 | 68,754,000 | |
Purchase price accounting adjustments | $ 17,181,000 | 1,377,000 | ||
Number of operating segments | Segment | 3 | |||
Other intangible assets | $ 89,100,000 | 97,700,000 | ||
Amortization of intangible assets | $ 5,903,000 | 5,387,000 | 0 | |
Patent defense costs | 0 | 0 | ||
Fair value estimates of reporting units, threshold for no goodwill impairment, percent of decrease in fair value estimates | 10.00% | |||
Workmanship warranty period | 1 year | |||
Warranty and sales allowance reserves | $ 3,900,000 | 3,500,000 | ||
Foreign exchange translation gains (losses) | $ (11,652,000) | $ (22,544,000) | $ 31,579,000 | |
Share-based compensation, options granted (in shares) | shares | 0 | 0 | 0 | |
Nora | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Goodwill | $ 201,906,000 | $ 192,700,000 | ||
Intangible assets acquired | 103,300,000 | 89,100,000 | ||
Purchase price accounting adjustments | 18,600,000 | |||
Goodwill expected to be deductible for income tax purposes | $ 0 | 0 | ||
Amortization of intangible assets | $ 5,900,000 | $ 5,400,000 | $ 700,000 | |
Building and Improvements | Minimum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 10 years | |||
Building and Improvements | Maximum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 40 years | |||
Furniture and Equipment | Minimum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 3 years | |||
Furniture and Equipment | Maximum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 12 years | |||
Carpet, Modular Resilient Flooring, and Related Products | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Percent of revenue due to contracts with customers (percentage) | 98.00% | 97.00% | ||
Installation of Carpet and Other Flooring Related Material | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Percent of revenue due to contracts with customers (percentage) | 2.00% | 3.00% | ||
Carpet Products | Minimum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Product warranty period | 10 years | |||
Carpet Products | Maximum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Product warranty period | 20 years | |||
Luxury Vinyl Tile Products | Minimum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Product warranty period | 5 years | |||
Luxury Vinyl Tile Products | Maximum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Product warranty period | 15 years | |||
Cost of Sales | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Depreciation | $ 26,300,000 | $ 21,800,000 | 14,800,000 | |
Selling, General and Administrative Expenses | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Depreciation | $ 15,200,000 | $ 15,800,000 | $ 14,700,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Changes in Carrying Amounts of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2019 | Dec. 30, 2018 | |
Goodwill [Roll Forward] | ||
BALANCE DECEMBER 31, 2018 | $ 245,815 | $ 68,754 |
ACQUISITIONS | 0 | 183,348 |
PURCHASE PRICE ACCOUNTING ADJUSTMENTS | 17,181 | 1,377 |
IMPAIRMENT | 0 | 0 |
FOREIGN CURRENCY TRANSLATION | (5,557) | (7,664) |
BALANCE DECEMBER 29, 2019 | $ 257,439 | $ 245,815 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Details) - USD ($) | Dec. 30, 2018 | Dec. 29, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease right-of-use assets | $ 107,044,000 | |
Operating lease liability | $ 107,743,000 | |
Cumulative-effect adjustment to retained earnings | $ 0 | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease right-of-use assets | 115,000,000 | |
Operating lease liability | $ 115,000,000 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) | 12 Months Ended | |
Dec. 29, 2019 | Dec. 30, 2018 | |
Carpet, Modular Resilient Flooring, and Related Products | ||
Disaggregation of Revenue [Line Items] | ||
Percent of revenue due to contracts with customers (percentage) | 98.00% | 97.00% |
Installation of Carpet and Other Flooring Related Material | ||
Disaggregation of Revenue [Line Items] | ||
Percent of revenue due to contracts with customers (percentage) | 2.00% | 3.00% |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) | 12 Months Ended |
Dec. 29, 2019 | |
Americas | |
Disaggregation of Revenue [Line Items] | |
Percentage of net sales | 56.40% |
Europe | |
Disaggregation of Revenue [Line Items] | |
Percentage of net sales | 29.30% |
Asia-Pacific | |
Disaggregation of Revenue [Line Items] | |
Percentage of net sales | 14.30% |
Receivables (Details)
Receivables (Details) - USD ($) $ in Millions | Dec. 29, 2019 | Dec. 30, 2018 |
Receivables [Abstract] | ||
Allowance for bad debts | $ 3.8 | $ 3.5 |
Reserves for warranty and returns allowances | $ 3.9 | $ 3.5 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Dec. 29, 2019 | Dec. 30, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Company-owned life insurance | $ 23.3 | $ 24.3 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Details) - USD ($) $ in Thousands | Dec. 29, 2019 | Dec. 30, 2018 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 184,336 | $ 180,847 |
Work-in-process | 13,152 | 17,762 |
Raw materials | 56,096 | 60,048 |
Inventory, Net | $ 253,584 | $ 258,657 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Millions | Dec. 29, 2019 | Dec. 30, 2018 |
Inventory Disclosure [Abstract] | ||
Inventory valuation reserves | $ 28.3 | $ 28.1 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 29, 2019 | Dec. 30, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 725,846 | |
Property and equipment, gross | $ 781,759 | |
Accumulated depreciation and amortization | (457,174) | |
Accumulated depreciation and amortization | (432,958) | |
Property, plant and equipment | 324,585 | |
Property, plant and equipment | 292,888 | |
Leased equipment | 5,900 | |
Accumulated amortization on leased equipment | 900 | |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 17,777 | 16,870 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 148,833 | 143,725 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 565,251 | |
Property and equipment, gross | $ 615,149 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Narrative (Details) $ in Millions | Dec. 29, 2019USD ($) |
Property, Plant and Equipment [Abstract] | |
Estimated cost to complete construction-in-progress | $ 57.2 |
Accrued Expenses - Summary of A
Accrued Expenses - Summary of Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 29, 2019 | Dec. 30, 2018 |
Payables and Accruals [Abstract] | ||
Compensation | $ 86,696 | $ 80,877 |
Interest | 1,485 | 374 |
Restructuring | 11,445 | 11,907 |
Taxes | 16,809 | 14,539 |
Accrued purchases | 4,910 | 5,329 |
Warranty and sales allowances | 3,853 | 3,495 |
Other | 15,454 | 9,450 |
Accrued Expenses | $ 140,652 | $ 125,971 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) | Aug. 07, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||||
Threshold of other indebtedness triggering default | $ 20,000,000 | |||
Term loan borrowing, outstanding | 602,516,000 | |||
Payments of debt issuance costs | $ 8,800,000 | 0 | $ 8,806,000 | $ 1,427,000 |
Unamortized debt costs recorded as reduction of long-term debt | 6,300,000 | |||
Other deferred borrowing costs | 6,300,000 | |||
Syndicated Facility Agreement | ||||
Debt Instrument [Line Items] | ||||
Revolving loan facility, maximum borrowing capacity | $ 300,000,000 | |||
Maximum percentage of first tier subsidiary stock pledged as collateral | 65.00% | |||
Revolving loan borrowings, outstanding | $ 20,900,000 | |||
Letters of credit, outstanding | $ 2,200,000 | |||
Weighted average interest rate on borrowings outstanding | 3.27% | |||
Syndicated Facility Agreement | Term Loan | ||||
Debt Instrument [Line Items] | ||||
Term loan borrowing, outstanding | $ 581,600,000 | |||
Syndicated Facility Agreement | Minimum | ||||
Debt Instrument [Line Items] | ||||
Revolving loan facility, interest rate | 0.25% | |||
Revolving loan facility, commitment fee percentage of unused capacity | 0.20% | |||
Syndicated Facility Agreement | Minimum | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Revolving loan facility, basis spread on variable rate | 1.25% | |||
Syndicated Facility Agreement | Maximum | ||||
Debt Instrument [Line Items] | ||||
Revolving loan facility, interest rate | 1.25% | |||
Revolving loan facility, commitment fee percentage of unused capacity | 0.35% | |||
Syndicated Facility Agreement | Maximum | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Revolving loan facility, basis spread on variable rate | 2.25% | |||
Other Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Revolving loan facility, maximum borrowing capacity | $ 9,500,000 | |||
Revolving loan borrowings, outstanding | $ 0 | 0 | ||
Other Line of Credit | Minimum | ||||
Debt Instrument [Line Items] | ||||
Revolving loan facility, interest rate | 2.00% | |||
Other Line of Credit | Maximum | ||||
Debt Instrument [Line Items] | ||||
Revolving loan facility, interest rate | 6.00% | |||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Other deferred borrowing costs | $ 1,300,000 | 1,800,000 | ||
Amortization of debt issuance costs | $ 400,000 | $ 500,000 | $ 500,000 | |
For Each Fiscal Quarter Thereafter | Syndicated Facility Agreement | ||||
Debt Instrument [Line Items] | ||||
Maximum consolidated net leverage ratio | 4.25 | |||
Minimum consolidated interest coverage ratio | 2.25 |
Long-Term Debt - Future Maturit
Long-Term Debt - Future Maturities of Borrowings (Details) $ in Thousands | Dec. 29, 2019USD ($) |
Debt Disclosure [Abstract] | |
2020 | $ 31,022 |
2021 | 31,022 |
2022 | 31,022 |
2023 | 509,450 |
2024 | 0 |
Thereafter | 0 |
Total Debt | $ 602,516 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2019 | Mar. 31, 2019 | Sep. 30, 2017 | |
Derivative [Line Items] | |||
Cash flow hedge, amount expected to be reclassified in the next twelve months | $ 1.6 | ||
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 | |||
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 | Dec. 29, 2019 | Dec. 30, 2018 |
Derivative [Line Items] | ||
Derivative asset, fair value | $ 0 | $ 2,445 |
Derivative liability, fair value | 5,801 | 0 |
Foreign currency contracts | Other current assets | ||
Derivative [Line Items] | ||
Derivative asset, fair value | 0 | 651 |
Foreign currency contracts | Accrued expenses | ||
Derivative [Line Items] | ||
Derivative liability, fair value | 0 | 0 |
Interest rate swap contract | Other current assets | ||
Derivative [Line Items] | ||
Derivative asset, fair value | 0 | 1,794 |
Interest rate swap contract | Accrued expenses | ||
Derivative [Line Items] | ||
Derivative liability, fair value | $ 5,801 | $ 0 |
Derivative Instruments - Cash F
Derivative Instruments - Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | |||
(Loss) gain recognized in accumulated other comprehensive income | $ (5,489) | $ 422 | $ 904 |
Losses reclassified from accumulated other comprehensive income: Foreign currency contracts gain (loss) | (299) | ||
Derivative instruments designated as hedging instruments | Cash flow hedging | Foreign currency contracts gain (loss) | |||
Derivative [Line Items] | |||
Foreign currency contracts gain (loss) | 468 | (468) | 0 |
Losses reclassified from accumulated other comprehensive income: Foreign currency contracts gain (loss) | (450) | ||
Derivative instruments designated as hedging instruments | Cash flow hedging | Interest rate swap contracts (loss) gain | |||
Derivative [Line Items] | |||
Interest rate swap contracts (loss) gain | (5,957) | $ 890 | $ 904 |
Losses reclassified from accumulated other comprehensive income: Foreign currency contracts gain (loss) | $ 151 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Lessee, Lease, Description [Line Items] | |||
Lease renewal term | 5 years | ||
Rental expense | $ 28.5 | $ 22 | |
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) $ in Thousands | Dec. 29, 2019USD ($) |
Leases [Abstract] | |
Operating lease right-of-use assets | $ 107,044 |
Current portion of operating lease liabilities | 15,914 |
Operating lease liabilities | 91,829 |
Total operating lease liabilities | 107,743 |
Property and equipment | 5,007 |
Accrued expenses | 1,489 |
Other long-term liabilities | 1,673 |
Total finance lease liabilities | $ 3,162 |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Leases [Abstract] | |||
Finance lease cost: Amortization of right-of-use assets | $ 890 | ||
Finance lease cost: Interest on lease liabilities | 51 | ||
Operating lease cost | 24,246 | ||
Short-term lease cost | 2,057 | ||
Variable lease cost | 3,665 | ||
Total lease cost | 30,909 | ||
Operating cash flows from finance leases | 51 | ||
Operating cash flows from operating leases | 22,597 | ||
Financing cash flows from finance leases | 1,255 | $ 0 | $ 0 |
Right-of-use assets obtained in exchange for new finance lease liabilities | 2,240 | ||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 12,655 | ||
Weighted-average remaining lease term – finance leases (in years) | 2 years 9 months 3 days | ||
Weighted-average remaining lease term – operating leases (in years) | 10 years 7 months 6 days | ||
Weighted-average discount rate – finance leases (percentage) | 2.06% | ||
Weighted-average discount rate – operating leases (percentage) | 5.86% |
Leases - Maturity of Lease Paym
Leases - Maturity of Lease Payments (Details) $ in Thousands | Dec. 29, 2019USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2020 | $ 21,659 |
2021 | 17,264 |
2022 | 13,825 |
2023 | 11,504 |
2024 | 9,959 |
Thereafter | 75,360 |
Total future minimum lease payments (undiscounted) | 149,571 |
Less: Present value discount | (41,828) |
Total lease liability | 107,743 |
Finance Lease, Liability, Payment, Due [Abstract] | |
2020 | 1,543 |
2021 | 861 |
2022 | 475 |
2023 | 290 |
2024 | 88 |
Thereafter | 0 |
Total future minimum lease payments (undiscounted) | 3,257 |
Less: Present value discount | (95) |
Total lease liability | $ 3,162 |
Preferred Stock (Details)
Preferred Stock (Details) - $ / shares | Dec. 29, 2019 | Dec. 30, 2018 |
Equity [Abstract] | ||
Preferred stock, shares authorized (in shares) | 5,000,000 | |
Preferred stock, par value (in dollars per share) | $ 1 | |
Preferred stock, shares issued (in shares) | 0 | 0 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) | 3 Months Ended | 12 Months Ended | |||||
Apr. 02, 2017USD ($) | Dec. 29, 2019USD ($)$ / sharesshares | Dec. 30, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Jun. 30, 2017USD ($) | Jul. 03, 2016USD ($) | May 31, 2015shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock, shares authorized (in shares) | shares | 120,000,000 | ||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.10 | ||||||
Common stock, cash dividends paid (in dollars per share) | $ / shares | $ 0.26 | $ 0.26 | $ 0.25 | ||||
Stock based compensation rate at which stock options exercisable | 100.00% | ||||||
Number of shares authorized for issuance or transfer (in shares) | shares | 5,161,020 | ||||||
Number of authorized stock reduced by issuance of other than stock option award | 1.33 | ||||||
Weighted-average remaining contractual life of options outstanding (less than) | 1 year | ||||||
Weighted-average remaining contractual life of options exercisable (less than) | 1 year | ||||||
Aggregate intrinsic value of options outstanding | $ 100,000 | ||||||
Aggregate intrinsic value of options exercisable | 100,000 | ||||||
Stock Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock compensation expenses | $ 0 | $ 0 | $ 0 | ||||
Stock Options | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 1 year | ||||||
Expiration period | 3 years | ||||||
Stock Options | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 5 years | ||||||
Expiration period | 10 years | ||||||
Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock compensation expenses | $ 3,300,000 | $ 4,100,000 | $ 2,800,000 | ||||
Restricted stock awards granted (in shares) | shares | 223,500 | 194,000 | 253,000 | ||||
Unrecognized compensation cost related to unvested restricted stock | $ 3,400,000 | ||||||
Restricted Stock | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 1 year | ||||||
Restricted Stock | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 5 years | ||||||
Performance Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock compensation expenses | $ 5,400,000 | $ 10,400,000 | $ 4,500,000 | ||||
Restricted stock awards granted (in shares) | 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 | $ 3,100,000 | ||||||
Performance Shares | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 1 year | ||||||
Performance Shares | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 3 years | ||||||
Restricted Stock and Performance Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Compensation expense, tax benefit | $ 1,400,000 | 2,400,000 | 2,600,000 | ||||
Common Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock repurchase program, authorized amount to be repurchased | $ 100,000,000 | $ 50,000,000 | |||||
Stock repurchased and retired, value | $ 50,000,000 | $ 156,000 | $ 61,000 | $ 463,000 | |||
Stock repurchased and retired (in shares) | shares | 1,556,000 | 615,000 | 4,628,300 | ||||
Weighted average purchase price (in dollars per share) | $ / shares | $ 16.13 | $ 23.54 | $ 19.76 |
Shareholders' Equity - Activity
Shareholders' Equity - Activity in Shareholders' Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 29, 2019 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Apr. 02, 2017 | Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Balance | $ 354,663 | $ 354,663 | ||||||||||
Net income | $ 16,432 | $ 26,210 | $ 29,499 | $ 7,059 | $ 6,395 | $ 8,172 | $ 20,602 | $ 15,084 | 79,200 | $ 50,253 | $ 53,246 | |
Foreign currency translation adjustment | (11,652) | (22,544) | $ 31,579 | |||||||||
Balance | $ 368,202 | $ 354,663 | $ 368,202 | $ 354,663 | ||||||||
COMMON STOCK | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Balance (in shares) | 59,508,000 | 59,806,000 | 64,238,000 | 59,508,000 | 59,806,000 | 64,238,000 | ||||||
Balance | $ 5,951 | $ 5,981 | $ 6,424 | $ 5,951 | $ 5,981 | $ 6,424 | ||||||
Stock issuances under employee plans (in shares) | 511,000 | 224,000 | 36,000 | |||||||||
Stock issuances under employee plans | $ 51 | $ 22 | $ 4 | |||||||||
Other issuances of common stock (in shares) | 223,000 | 182,000 | 253,000 | |||||||||
Other issuances of common stock | $ 22 | $ 18 | $ 25 | |||||||||
Forfeitures and compensation expense related to stock awards (in shares) | (270,000) | (89,000) | (93,000) | |||||||||
Forfeitures and compensation expense related to stock awards | $ (26) | $ (9) | $ (9) | |||||||||
Share repurchases (in shares) | (1,556,000) | (615,000) | (4,628,300) | |||||||||
Share repurchases | (50,000) | $ (156) | $ (61) | $ (463) | ||||||||
Balance (in shares) | 58,416,000 | 59,508,000 | 58,416,000 | 59,508,000 | 59,806,000 | |||||||
Balance | $ 5,842 | $ 5,951 | $ 5,842 | $ 5,951 | $ 5,981 | |||||||
ADDITIONAL PAID-IN CAPITAL | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Balance | 270,269 | 271,271 | 359,451 | 270,269 | 271,271 | 359,451 | ||||||
Stock issuances under employee plans | 636 | 476 | 508 | |||||||||
Other issuances of common stock | 3,900 | 4,809 | 4,507 | |||||||||
Unamortized stock compensation expense related to stock awards | (4,139) | (4,710) | (4,532) | |||||||||
Forfeitures and compensation expense related to stock awards | 4,638 | 12,847 | 5,574 | |||||||||
Share repurchases | (24,998) | (14,424) | (91,113) | |||||||||
Windfall tax benefit - share-based payment awards | (3,124) | |||||||||||
Balance | 250,306 | 270,269 | 250,306 | 270,269 | 271,271 | |||||||
RETAINED EARNINGS | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Balance | 222,214 | 187,432 | 140,238 | 222,214 | 187,432 | 140,238 | ||||||
Net income | 79,200 | 50,253 | 53,246 | |||||||||
Cash dividends paid | (15,358) | (15,471) | (15,487) | |||||||||
Adoption of new accounting standard - share-based payment awards | 9,435 | |||||||||||
Balance | 286,056 | 222,214 | 286,056 | 222,214 | 187,432 | |||||||
PENSION LIABILITY | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Balance | (43,610) | (56,554) | (54,862) | (43,610) | (56,554) | (54,862) | ||||||
Pension liability adjustment | (13,090) | 12,944 | (1,692) | |||||||||
Balance | (56,700) | (43,610) | (56,700) | (43,610) | (56,554) | |||||||
FOREIGN CURRENCY TRANSLATION ADJUSTMENT | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Balance | (101,487) | (78,943) | $ (110,522) | (101,487) | (78,943) | (110,522) | ||||||
Foreign currency translation adjustment | (11,652) | (22,544) | 31,579 | |||||||||
Balance | (113,139) | (101,487) | (113,139) | (101,487) | (78,943) | |||||||
CASH FLOW HEDGE | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Balance | $ 1,326 | $ 904 | 1,326 | 904 | ||||||||
Cash flow hedge unrealized gain | (5,489) | 422 | 904 | |||||||||
Balance | $ (4,163) | $ 1,326 | $ (4,163) | $ 1,326 | $ 904 |
Stockholders' Equity - Stock Op
Stockholders' Equity - Stock Options Outstanding (Details) - $ / shares | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Shares | |||
Outstanding at December 30, 2018 (in shares) | 42,500,000 | ||
Granted (in shares) | 0 | 0 | 0 |
Exercised (in shares) | (10,000,000) | ||
Forfeited or cancelled (in shares) | (5,000,000) | ||
Outstanding at December 29, 2019 (in shares) | 27,500,000 | 42,500,000 | |
Weighted Average Exercise Price | |||
Outstanding at December 30, 2018 (in dollars per share) | $ 9.56 | ||
Granted (in dollars per share) | 0 | ||
Exercised (in dollars per share) | 4.31 | ||
Forfeited or cancelled (in dollars per share) | 4.31 | ||
Outstanding at December 29, 2019 (in dollars per share) | $ 12.43 | $ 9.56 | |
Exercisable at December 29, 2019 (in shares) | 27,500,000 | ||
Exercisable at December 29, 2019, weighted average exercise price (in dollars per share) | $ 12.43 |
Shareholders' Equity - Restrict
Shareholders' Equity - Restricted Stock Outstanding (Details) - Restricted Stock - $ / shares | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Shares | |||
Outstanding at December 30, 2018 (in shares) | 549,000 | ||
Granted (in shares) | 223,500 | 194,000 | 253,000 |
Vested (in shares) | (241,200) | ||
Forfeited or cancelled (in shares) | (63,100) | ||
Outstanding at December 29, 2019 (in shares) | 468,200 | 549,000 | |
Weighted Average Grant Date Fair Value | |||
Outstanding at December 30, 2018 (in dollars per share) | $ 27.65 | ||
Granted (in dollars per share) | 17.54 | ||
Vested (in dollars per share) | 18.41 | ||
Forfeited or cancelled (in dollars per share) | 19.88 | ||
Outstanding at December 29, 2019 (in dollars per share) | $ 28.63 | $ 27.65 |
Shareholders' Equity - Performa
Shareholders' Equity - Performance Shares Outstanding (Details) - Performance Shares | 12 Months Ended |
Dec. 29, 2019$ / sharesshares | |
Performance Shares | |
Outstanding at December 30, 2018 (in shares) | shares | 759,500 |
Granted (in shares) | shares | 344,500 |
Vested (in shares) | shares | (360,000) |
Forfeited or cancelled (in shares) | shares | (232,000) |
Outstanding at December 29, 2019 (in shares) | shares | 512,000 |
Weighted Average Grant Date Fair Value | |
Outstanding at December 30, 2018 (in dollars per share) | $ / shares | $ 20.17 |
Granted (in dollars per share) | $ / shares | 17.54 |
Vested (in dollars per share) | $ / shares | 19.63 |
Forfeited or cancelled (in dollars per share) | $ / shares | 18.10 |
Outstanding at December 29, 2019 (in dollars per share) | $ / shares | $ 19.71 |
Earnings Per Share - Distribute
Earnings Per Share - Distributed and Undistributed Earnings (Details) - $ / shares | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Basic earnings per share | |||
Distributed earnings (in dollars per share) | $ 0.26 | $ 0.26 | $ 0.25 |
Undistributed earnings (in dollars per share) | 1.08 | 0.58 | 0.61 |
Basic earnings per share, total (in dollars per share) | 1.34 | 0.84 | 0.86 |
Diluted earnings per share | |||
Distributed earnings (in dollars per share) | 0.26 | 0.26 | 0.25 |
Undistributed earnings (in dollars per share) | 1.08 | 0.58 | 0.61 |
Diluted earnings per share (in dollars per share) | $ 1.34 | $ 0.84 | $ 0.86 |
Earnings Per Share - Net Income
Earnings Per Share - Net Income and Weighted Average Shares for Basic and Diluted EPS (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2019 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Net income attributable to participating securities | $ 16,432 | $ 26,210 | $ 29,499 | $ 7,059 | $ 6,395 | $ 8,172 | $ 20,602 | $ 15,084 | $ 79,200 | $ 50,253 | $ 53,246 |
Weighted Average Shares Outstanding (in shares) | 58,475 | 58,995 | 61,528 | ||||||||
Participating Securities (in shares) | 468 | 549 | 468 | ||||||||
Shares for Basic Earnings Per Share (in shares) | 58,943 | 59,544 | 61,996 | ||||||||
Dilutive Effect of Stock Options (in shares) | 5 | 22 | 44 | ||||||||
Shares for Diluted Earnings Per Share (in shares) | 58,948 | 59,566 | 62,040 | ||||||||
Participating Securities | |||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Net income attributable to participating securities | $ 600 | $ 500 | $ 400 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||
Antidilutive securities excluded from computation of EPS (in shares) | 0 | 0 | 0 |
Restructuring and Other Charg_3
Restructuring and Other Charges - Narrative (Details) $ in Thousands | Dec. 23, 2019USD ($)office | Dec. 29, 2018Employee | Dec. 29, 2019USD ($) | Sep. 29, 2019USD ($) | Dec. 30, 2018USD ($) | Apr. 02, 2017USD ($) | Jan. 01, 2017USD ($)Employee | Dec. 29, 2019USD ($) | Dec. 30, 2018USD ($) | Dec. 31, 2017USD ($) |
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring, asset impairment and other charges | $ 12,947 | $ 20,529 | $ 7,299 | |||||||
Non-cash charges | 5,000 | |||||||||
Number of employees eliminated | Employee | 200 | 70 | ||||||||
Severance expenses | $ 10,800 | |||||||||
Restructuring charges | $ 700 | $ 7,300 | $ 19,800 | |||||||
Restructuring plan, expected cost remaining | 12,000 | |||||||||
Other write-off | $ 5,000 | |||||||||
Restructuring and asset impairment charges | $ 12,300 | 700 | 20,500 | |||||||
Asset impairment charges | 8,600 | 0 | 8,569 | $ 0 | ||||||
Other restructuring costs | 1,100 | |||||||||
Adjustment to previously recorded severance expense | (1,700) | |||||||||
Employee Severance | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring plan, expected cost remaining | $ 10,800 | |||||||||
2018 Restructuring Plan | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Net reduction in restructuring reserve | 1,000 | |||||||||
Restructuring reserve | 2,672 | 11,907 | 2,672 | 11,907 | ||||||
Restructuring charges | 1,071 | |||||||||
2018 Restructuring Plan | Employee Severance | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring reserve | 1,898 | $ 10,763 | 1,898 | $ 10,763 | ||||||
Restructuring charges | 1,743 | |||||||||
2018 and 2019 Restructuring Plan | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring reserve | 11,400 | 11,400 | ||||||||
2019 Restructuring Plan | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring reserve | 8,773 | 8,773 | ||||||||
Number of employees eliminated | 105 | |||||||||
Severance expenses | 8,800 | |||||||||
Restructuring charges | 9,000 | |||||||||
Restructuring plan, expected cost remaining | 9,000 | 9,000 | ||||||||
Restructuring, expected savings | 6,000 | 6,000 | ||||||||
2019 Restructuring Plan | Employee Severance | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring reserve | 8,634 | $ 8,634 | ||||||||
Number of offices | office | 2 | |||||||||
2019 Restructuring Plan | Lease Exit Costs | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring charges | $ 200 |
Restructuring and Other Charg_4
Restructuring and Other Charges - Restructuring Activities Related to 2019 (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 29, 2019 | Sep. 29, 2019 | Apr. 02, 2017 | Jan. 01, 2017 | Dec. 29, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 700 | $ 7,300 | $ 19,800 | ||
2019 Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 9,000 | ||||
Deductions 2019 | $ 193 | ||||
Balance at End of Year | 8,773 | 8,773 | |||
Workforce Reduction | 2019 Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Deductions 2019 | 193 | ||||
Balance at End of Year | 8,634 | 8,634 | |||
Other Exit Costs | 2019 Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Deductions 2019 | 0 | ||||
Balance at End of Year | $ 139 | 139 | |||
Expenses | 2019 Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 9,015 | ||||
Expenses | Workforce Reduction | 2019 Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 8,827 | ||||
Expenses | Other Exit Costs | 2019 Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 188 | ||||
Other Accounts Other Than Expenses | 2019 Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 49 | ||||
Other Accounts Other Than Expenses | Workforce Reduction | 2019 Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 0 | ||||
Other Accounts Other Than Expenses | Other Exit Costs | 2019 Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 49 |
Restructuring and Other Charg_5
Restructuring and Other Charges - Restructuring Activities Related to 2018 Restructuring Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 29, 2019 | Apr. 02, 2017 | Jan. 01, 2017 | Dec. 29, 2019 | |
Restructuring Reserve [Roll Forward] | ||||
Charged in 2019 | $ 700 | $ 7,300 | $ 19,800 | |
2018 Restructuring Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at Beginning of Year | $ 11,907 | |||
Deductions 2019 | 8,164 | |||
Charged in 2019 | 1,071 | |||
Balance at End of Year | 2,672 | |||
2018 Restructuring Plan | Workforce Reduction | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at Beginning of Year | 10,763 | |||
Deductions 2019 | 7,122 | |||
Charged in 2019 | 1,743 | |||
Balance at End of Year | 1,898 | |||
2018 Restructuring Plan | Other Exit Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at Beginning of Year | 1,144 | |||
Deductions 2019 | 1,042 | |||
Charged in 2019 | (672) | |||
Balance at End of Year | $ 774 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Income Tax Disclosure [Line Items] | ||||
Effective income tax rate | 22.20% | 8.60% | 47.00% | |
Provisional tax expense related to one-time transition tax | $ 0 | $ (5,000) | $ 11,707 | |
Provisional tax expense related to remeasurement of net deferred tax asset | 3,500 | |||
Decrease of previously recorded provisional amount | 1,700 | |||
Increase of intangible deferred liability | 33,760 | 18,699 | ||
Reduction of non-current deferred tax assets | 2,800 | 2,800 | ||
Unrecognized tax benefits | 25,486 | $ 28,143 | $ 29,221 | $ 27,888 |
Amount of unrecognized tax benefit expected to be realized in next twelve months | 10,500 | |||
Unrecognized tax benefits require to settle through cash | 22,700 | |||
Unrecognized tax benefit, accrued interest and penalties | 2,900 | |||
Discontinued Operations | ||||
Income Tax Disclosure [Line Items] | ||||
State net operating loss carryforwards | 36,000 | |||
Nora | ||||
Income Tax Disclosure [Line Items] | ||||
Increase of intangible deferred liability | 17,200 | |||
Foreign Tax Authority [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Net operating loss carryforwards | 7,500 | |||
Valuation allowances on net operating loss carryforwards | 900 | |||
State and Local Jurisdiction | ||||
Income Tax Disclosure [Line Items] | ||||
Net operating loss carryforwards | 87,600 | |||
Valuation allowances on net operating loss carryforwards | $ 14,600 |
Income Taxes - Income Before Ta
Income Taxes - Income Before Taxes on Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. operations | $ 46,463 | $ 35,728 | $ 53,407 |
Foreign operations | 55,353 | 19,263 | 47,132 |
Income before income tax expense | $ 101,816 | $ 54,991 | $ 100,539 |
Income Taxes - Provisions for F
Income Taxes - Provisions for Federal, Foreign and State Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Current expense/(benefit): | |||
Federal | $ 8,414 | $ (3,549) | $ 10,245 |
Foreign | 14,513 | 14,548 | 11,923 |
State | 2,312 | 2,628 | 1,414 |
Current expense | 25,239 | 13,627 | 23,582 |
Deferred expense/(benefit): | |||
Federal | (625) | 2,145 | 20,467 |
Foreign | (2,198) | (11,228) | 1,214 |
State | 200 | 194 | 2,030 |
Deferred expense/(benefit) | (2,623) | (8,889) | 23,711 |
Total income tax expense | $ 22,616 | $ 4,738 | $ 47,293 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Income taxes at U.S. federal statutory rate | $ 21,381 | $ 11,548 | $ 35,189 |
State income taxes, net of federal tax effect | 2,321 | 2,228 | 2,055 |
Non-deductible business expenses | 933 | 1,352 | 695 |
Non-deductible employee compensation | 1,453 | 2,566 | 80 |
Tax effects of Company owned life insurance | (636) | 235 | (1,295) |
One-time transition tax on foreign earnings | 0 | (5,000) | 11,707 |
Remeasurement of net Deferred Tax Asset | 0 | (1,739) | 3,467 |
Tax effects of undistributed earnings from foreign subsidiaries not deemed to be indefinitely reinvested | (183) | 61 | 523 |
Foreign and U.S. tax effects attributable to foreign operations | 783 | (2,226) | (4,575) |
Valuation allowance effect – NOL | 133 | (79) | (858) |
Federal tax credits | (700) | (2,863) | (632) |
Changes in unrecognized tax benefits | (3,324) | (1,010) | 874 |
Other | 455 | (335) | 63 |
Total income tax expense | $ 22,616 | $ 4,738 | $ 47,293 |
Income Taxes - Net Deferred Tax
Income Taxes - Net Deferred Tax Liabilities (Details) - USD ($) $ in Thousands | Dec. 29, 2019 | Dec. 30, 2018 |
Deferred tax assets | ||
Lease liability | $ 29,782 | $ 0 |
Net operating loss carryforwards | 3,090 | 2,349 |
Derivative instruments | 1,638 | 0 |
Deferred compensation | 20,194 | 18,945 |
Inventory | 3,200 | 4,712 |
Prepaids, accruals and reserves | 7,935 | 6,473 |
Pensions | 9,229 | 4,290 |
Other | 71 | 0 |
Deferred tax asset (gross) | 75,139 | 36,769 |
Valuation allowance on net operating loss carryforwards | (971) | (1,067) |
Deferred tax asset (net) | 74,168 | 35,702 |
Deferred tax liabilities | ||
Property and equipment | 23,770 | 24,871 |
Intangible assets | 33,760 | 18,699 |
Lease asset | 29,301 | 0 |
Foreign currency | 3,026 | 2,357 |
Foreign withholding taxes on unremitted earnings | 178 | 348 |
Other | 0 | 314 |
Deferred tax liabilities | 90,035 | 46,589 |
Net deferred tax liabilities | $ 15,867 | $ 10,887 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 28,143 | $ 29,221 | $ 27,888 |
Increases related to tax positions taken during the current year | 318 | 671 | 627 |
Increases related to tax positions taken during the prior years | 1,093 | 180 | 709 |
Decreases related to tax positions taken during the prior years | (2,809) | 0 | 0 |
Decreases related to settlements with taxing authorities | 0 | 0 | 0 |
Decreases related to lapse of applicable statute of limitations | (1,266) | (1,861) | (462) |
Changes due to foreign currency translation | 7 | (68) | 459 |
Balance at end of year | $ 25,486 | $ 28,143 | $ 29,221 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - Subsequent Event $ in Millions | Feb. 14, 2020USD ($)claim |
Lawsuit By Former CEO In Connection With Termination, Breach of Contract | |
Loss Contingencies [Line Items] | |
Damages sought | $ 10 |
Lawsuit By Former CEO In Connection With Termination | |
Loss Contingencies [Line Items] | |
Number of claims | claim | 4 |
Damages sought | $ 100 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) | 12 Months Ended | ||
Dec. 29, 2019USD ($)Year | Dec. 30, 2018USD ($) | Dec. 31, 2017USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan eligibility period | 6 months | ||
Defined benefit plan, other comprehensive income | $ 56,700,000 | $ 43,610,000 | |
Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company's contributions | 3,954,000 | 4,095,000 | |
Curtailment, net actuarial gain recognized in accumulated other comprehensive income | 2,400,000 | ||
Accumulated net actuarial loss | 16,700,000 | ||
Reclassification of prior service cost from accumulated other comprehensive income | 500,000 | ||
Present value of guarantee costs to fund vested benefits | 8,700,000 | ||
Pension expense | 2,300,000 | 1,700,000 | $ 1,900,000 |
Defined benefit plan, funded status benefit assets (liability) | 48,391,000 | 36,195,000 | |
Defined benefit plan, other comprehensive income | 47,561,000 | 36,704,000 | |
Pension liability included in other non-current liabilities | $ 48,400,000 | 35,300,000 | |
Number of defined benefit plans | 3 | ||
Defined benefit plan, other comprehensive (income) loss | $ (10,900,000) | ||
Defined benefit plan, actuarial gain (loss) | 11,400,000 | ||
Defined benefit plan, loss due to amortization | 500,000 | ||
Defined benefit plan, indexation benefit | 32,700,000 | ||
Defined benefit plan, expected future contributions | 4,400,000 | ||
Accumulated benefit obligation | 314,841,000 | 284,581,000 | |
Foreign Plan | Accumulated Defined Benefit Plans Adjustment Attributable to Parent | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, taxes on other comprehensive income | 16,600,000 | ||
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company's contributions | 2,000,000 | ||
Defined benefit plan, other comprehensive (income) loss | 2,200,000 | ||
Defined benefit plan, actuarial gain (loss) | 2,500,000 | ||
Defined benefit plan, loss due to amortization | $ 300,000 | ||
Normal retirement age | Year | 65 | ||
Early retirement age | Year | 55 | ||
Minimum period of service for entitlement in plan | 15 years | ||
Minimum period under death benefit feature | 10 years | ||
Maximum period for death benefits payable to designated beneficiary | 10 years | ||
Accumulated benefit obligation | $ 31,700,000 | 29,100,000 | |
Nonqualified Savings Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Deferred compensation | 31,900,000 | 28,700,000 | |
Investment in insurance instruments | 30,100,000 | 26,400,000 | |
401(k) Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer matching contribution | 3,300,000 | 3,200,000 | 3,000,000 |
Discretionary contribution | $ 0 | $ 0 | $ 0 |
Employee Benefit Plans - Funded
Employee Benefit Plans - Funded Status of Defined Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | Dec. 29, 2019 | Dec. 30, 2018 | |
Amounts recognized in accumulated other comprehensive income (after tax) | |||||
Total amount recognized | $ 56,700 | $ 43,610 | |||
Foreign Plan | |||||
Change in benefit obligation | |||||
Benefit obligation, beginning of year | $ 285,508 | $ 320,548 | |||
Service cost | 1,589 | 1,112 | $ 1,628 | ||
Interest cost | 5,676 | 5,467 | 5,559 | ||
Benefits and expenses paid | (13,034) | (11,850) | |||
Business combinations | 0 | 36,903 | |||
Actuarial loss (gain) | 37,409 | (53,753) | |||
Curtailment gain | (2,421) | 0 | |||
Member contributions | 221 | 233 | |||
Currency translation adjustment | (107) | (13,152) | |||
Benefit obligation, end of year | 314,841 | 285,508 | 320,548 | ||
Change in plan assets | |||||
Plan assets, beginning of year | 249,313 | 307,166 | |||
Actual return on assets | 24,999 | (37,495) | |||
Company contributions | 3,954 | 4,095 | |||
Benefits paid | (13,034) | (11,850) | |||
Currency translation adjustment | 1,218 | (12,603) | |||
Plan assets, end of year | 266,450 | 249,313 | 307,166 | ||
Reconciliation to balance sheet | |||||
Funded status benefit asset/(liability) | (48,391) | (36,195) | |||
Amounts recognized in accumulated other comprehensive income (after tax) | |||||
Unrecognized actuarial loss | 47,561 | 37,141 | |||
Unamortized prior service credits | 0 | (437) | |||
Total amount recognized | 47,561 | 36,704 | |||
Accumulated Benefit Obligation | 314,841 | 284,581 | |||
Projected Benefit Obligation | 285,508 | 285,508 | 320,548 | 314,841 | 285,508 |
UK Plan | |||||
Change in benefit obligation | |||||
Benefit obligation, beginning of year | 157,351 | ||||
Benefit obligation, end of year | 170,958 | 157,351 | |||
Amounts recognized in accumulated other comprehensive income (after tax) | |||||
Accumulated Benefit Obligation | 170,958 | 157,351 | |||
Projected Benefit Obligation | 157,351 | 157,351 | 170,958 | 157,351 | |
Plan Assets | 174,156 | 158,990 | |||
Dutch Plan | |||||
Change in benefit obligation | |||||
Benefit obligation, beginning of year | 91,837 | ||||
Benefit obligation, end of year | 100,996 | 91,837 | |||
Amounts recognized in accumulated other comprehensive income (after tax) | |||||
Accumulated Benefit Obligation | 100,996 | 90,910 | |||
Projected Benefit Obligation | 91,837 | 91,837 | 100,996 | 91,837 | |
Plan Assets | 92,294 | 90,323 | |||
Nora Plan | |||||
Change in benefit obligation | |||||
Benefit obligation, beginning of year | 36,320 | ||||
Benefit obligation, end of year | 42,887 | 36,320 | |||
Amounts recognized in accumulated other comprehensive income (after tax) | |||||
Accumulated Benefit Obligation | 42,887 | 36,320 | |||
Projected Benefit Obligation | 36,320 | 36,320 | 42,887 | 36,320 | |
Plan Assets | 0 | 0 | |||
United States | |||||
Change in benefit obligation | |||||
Benefit obligation, beginning of year | 29,142 | 31,919 | |||
Service cost | 0 | 0 | 0 | ||
Interest cost | 1,154 | 1,082 | 1,256 | ||
Benefits and expenses paid | (2,030) | (2,030) | |||
Actuarial loss (gain) | 3,474 | (1,829) | |||
Benefit obligation, end of year | 31,740 | 29,142 | 31,919 | ||
Change in plan assets | |||||
Company contributions | 2,000 | ||||
Amounts recognized in the consolidated balance sheets | |||||
Current liabilities | (2,030) | (2,030) | |||
Non-current liabilities | (29,710) | (27,112) | |||
Amounts recognized in accumulated other comprehensive income (after tax) | |||||
Unrecognized actuarial loss | 9,139 | 6,906 | |||
Accumulated Benefit Obligation | 31,700 | 29,100 | |||
Projected Benefit Obligation | $ 29,142 | $ 29,142 | $ 31,919 | 31,740 | 29,142 |
Total benefit obligation | $ 31,740 | $ 29,142 |
Employee Benefit Plans - Net Pe
Employee Benefit Plans - Net Periodic Benefit Cost (Details) - Foreign Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 1,589 | $ 1,112 | $ 1,628 |
Interest cost | 5,676 | 5,467 | 5,559 |
Expected return on plan assets | (5,561) | (6,234) | (6,496) |
Amortization of prior service cost | 63 | (27) | (34) |
Amortization of net actuarial (gains)/losses | 991 | 1,394 | 1,287 |
Curtailment gain | (453) | 0 | 0 |
Net periodic benefit cost | $ 2,305 | $ 1,712 | $ 1,944 |
Employee Benefit Plans - Assump
Employee Benefit Plans - Assumptions Used to Determine Net Periodic (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Foreign Plan | |||
Weighted average assumptions used to determine net periodic benefit cost | |||
Discount rate | 1.90% | 1.90% | 2.00% |
Expected return on plan assets | 2.10% | 1.80% | 2.30% |
Rate of compensation | 1.75% | 1.75% | 1.75% |
Weighted average assumptions used to determine benefit obligations | |||
Discount rate | 1.70% | 2.50% | 2.20% |
Rate of compensation | 1.75% | 1.75% | 1.75% |
Components of net periodic benefit cost | |||
Service cost | $ 1,589 | $ 1,112 | $ 1,628 |
Interest cost | 5,676 | 5,467 | 5,559 |
Amortizations | 991 | 1,394 | 1,287 |
Net periodic benefit cost | $ 2,305 | $ 1,712 | $ 1,944 |
United States | |||
Weighted average assumptions used to determine net periodic benefit cost | |||
Discount rate | 4.10% | 3.50% | 3.85% |
Rate of compensation | 0.00% | 0.00% | 0.00% |
Weighted average assumptions used to determine benefit obligations | |||
Discount rate | 3.05% | 4.10% | 3.50% |
Rate of compensation | 0.00% | 0.00% | 0.00% |
Components of net periodic benefit cost | |||
Service cost | $ 0 | $ 0 | $ 0 |
Interest cost | 1,154 | 1,082 | 1,256 |
Amortizations | 375 | 464 | 364 |
Net periodic benefit cost | $ 1,529 | $ 1,546 | $ 1,620 |
Employee Benefit Plans - Assets
Employee Benefit Plans - Assets at Fair Value (Details) - USD ($) $ in Thousands | Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 |
Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | 100.00% | ||
Percentage of Plan Assets at Year End | 100.00% | 100.00% | |
Plan assets, fair value | $ 266,450 | $ 249,313 | $ 307,166 |
Foreign Plan | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 64,151 | 79,146 | |
Foreign Plan | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 87,047 | 60,913 | |
Foreign Plan | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | $ 115,252 | $ 109,254 | $ 150,977 |
Equity Securities | Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of Plan Assets at Year End | 3.00% | 16.00% | |
Equity Securities | Foreign Plan | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | $ 8,143 | $ 39,392 | |
Equity Securities | Foreign Plan | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Equity Securities | Foreign Plan | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | $ 0 | $ 0 | |
Equity Securities | Minimum | Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | 15.00% | ||
Equity Securities | Maximum | Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | 20.00% | ||
Debt and Debt Securities | Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of Plan Assets at Year End | 61.00% | 44.00% | |
Debt and Debt Securities | Foreign Plan | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | $ 54,686 | $ 33,134 | |
Debt and Debt Securities | Foreign Plan | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 87,047 | 60,913 | |
Debt and Debt Securities | Foreign Plan | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | $ 19,996 | $ 16,012 | |
Debt and Debt Securities | Minimum | Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | 35.00% | ||
Debt and Debt Securities | Maximum | Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | 45.00% | ||
Short-term investments | Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of Plan Assets at Year End | 1.00% | 3.00% | |
Short-term investments | Foreign Plan | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | $ 1,322 | $ 6,620 | |
Short-term investments | Foreign Plan | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Short-term investments | Foreign Plan | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | $ 0 | $ 0 | |
Short-term investments | Minimum | Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | 0.00% | ||
Short-term investments | Maximum | Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | 0.00% | ||
Other investments | Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of Plan Assets at Year End | 35.00% | 37.00% | |
Other investments | Foreign Plan | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | $ 0 | $ 0 | |
Other investments | Foreign Plan | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Other investments | Foreign Plan | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | $ 95,256 | 93,242 | |
Other investments | Minimum | Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | 40.00% | ||
Other investments | Maximum | Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | 50.00% | ||
Pension Plan | Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | $ 266,450 | 249,313 | |
Pension Plan | Foreign Plan | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 64,151 | 79,146 | |
Pension Plan | Foreign Plan | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 87,047 | 60,913 | |
Pension Plan | Foreign Plan | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 115,252 | 109,254 | |
Pension Plan | Netherlands | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 92,294 | 90,323 | |
Pension Plan | Netherlands | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Pension Plan | Netherlands | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Pension Plan | Netherlands | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 92,294 | 90,323 | |
Pension Plan | United Kingdom | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 174,156 | 158,990 | |
Pension Plan | United Kingdom | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 64,151 | 79,146 | |
Pension Plan | United Kingdom | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 87,047 | 60,913 | |
Pension Plan | United Kingdom | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | $ 22,958 | $ 18,931 |
Employee Benefit Plans - Change
Employee Benefit Plans - Change in Values Related to Level 3 Assets (Details) - Foreign Plan - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2019 | Dec. 30, 2018 | |
Change in plan assets | ||
Plan assets, beginning of year | $ 249,313 | $ 307,166 |
Actual return on plan assets | 24,999 | (37,495) |
Translation adjustment | 1,218 | (12,603) |
Plan assets, end of year | 266,450 | 249,313 |
Level 3 | ||
Change in plan assets | ||
Plan assets, beginning of year | 109,254 | 150,977 |
Actual return on plan assets | 5,463 | (37,610) |
Purchases, sales and settlements, net | 663 | 0 |
Assets transferred into level 3 | 2,101 | 696 |
Translation adjustment | (2,229) | (4,809) |
Plan assets, end of year | $ 115,252 | $ 109,254 |
Employee Benefit Plans - Future
Employee Benefit Plans - Future Benefit Payments (Details) $ in Thousands | Dec. 29, 2019USD ($) |
Foreign Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | $ 10,671 |
2021 | 10,772 |
2022 | 10,836 |
2023 | 11,068 |
2024 | 11,292 |
2025-2029 | 58,556 |
United States | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 2,030 |
2021 | 2,030 |
2022 | 2,030 |
2023 | 2,030 |
2024 | 2,030 |
2025-2029 | $ 9,624 |
Employee Benefit Plans - Amount
Employee Benefit Plans - Amounts Recognized In Consolidated Balance Sheet and Accumulated Other Comprehensive Income (Details) - United States - USD ($) $ in Thousands | Dec. 29, 2019 | Dec. 30, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Current liabilities | $ 2,030 | $ 2,030 |
Non-current liabilities | 29,710 | 27,112 |
Total benefit obligation | 31,740 | 29,142 |
Unrecognized actuarial loss | $ 9,139 | $ 6,906 |
Acquisition of Nora - Narrative
Acquisition of Nora - Narrative (Details) € in Millions | Aug. 07, 2018USD ($) | Aug. 07, 2018EUR (€) | Dec. 30, 2018USD ($) | Sep. 30, 2018USD ($) | Jul. 01, 2018USD ($) | Jul. 01, 2018USD ($) | Dec. 29, 2019USD ($) | Dec. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2019USD ($) | Jul. 01, 2018EUR (€) |
Business Acquisition [Line Items] | |||||||||||
Payments to acquire businesses, net of cash acquired | $ 0 | $ 400,697,000 | $ 0 | ||||||||
Measurement period adjustment, deferred tax liabilities | $ 17,200,000 | ||||||||||
Goodwill recognized | $ 245,815,000 | 257,439,000 | 245,815,000 | 68,754,000 | |||||||
Transaction costs related to acquisition | $ 1,200,000 | $ 2,400,000 | $ 5,800,000 | ||||||||
Payments of debt issuance costs | $ 8,800,000 | 0 | 8,806,000 | $ 1,427,000 | |||||||
Syndicated Facility Agreement | Term Loan | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Payments of debt issuance costs | 8,800,000 | ||||||||||
Nora | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Purchase price | 447,200,000 | € 385.1 | |||||||||
Cash acquired from acquisition | 46,500,000 | 40 | |||||||||
Payments to acquire businesses, net of cash acquired | 400,700,000 | € 345.1 | |||||||||
Intangible assets acquired | 103,300,000 | ||||||||||
Step-up of inventory | 26,600,000 | ||||||||||
Goodwill recognized | 201,906,000 | 192,700,000 | |||||||||
Intangible assets, net | 103,300,000 | 89,100,000 | |||||||||
Goodwill expected to be deductible for income tax purposes | 0 | $ 0 | |||||||||
Transaction costs related to acquisition | 9,500,000 | ||||||||||
Nora | Developed Technology Rights | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Intangible assets acquired | $ 39,100,000 | ||||||||||
Estimated useful life | 7 years | 7 years | |||||||||
Nora | Order or Production Backlog | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Intangible assets acquired | $ 3,400,000 | ||||||||||
Estimated useful life | 6 months | ||||||||||
Nora | Trademarks and Trade Names | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Intangible assets acquired | $ 60,800,000 | ||||||||||
Nora | Other Expense | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Loss recognized upon termination of option instrument | $ 1,400,000 | ||||||||||
Transaction costs related to acquisition | 4,200,000 | ||||||||||
Nora | Selling, General and Administrative Expenses | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Transaction costs related to acquisition | $ 5,300,000 | ||||||||||
Nora | Foreign Exchange Option | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Derivative, notional amount | $ 364,000,000 | $ 364,000,000 | € 315 | ||||||||
Derivative, term of contract | 120 days | ||||||||||
Nora | Foreign Exchange Option | Other Expense | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Mark-to-market expense | $ 2,800,000 |
Acquisition of Nora - Schedule
Acquisition of Nora - Schedule of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Dec. 29, 2019 | Dec. 30, 2018 | Aug. 07, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill, excess of purchase price | $ 257,439 | $ 245,815 | $ 68,754 | |
Nora | ||||
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 | $ 192,700 | $ 201,906 |
Acquisition of Nora - Pro Forma
Acquisition of Nora - Pro Forma Information (Details) - Nora - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | ||
Revenue | $ 1,340,449 | $ 1,229,766 |
Net income | $ 96,909 | $ 48,655 |
Segment Information - Narrative
Segment Information - Narrative (Details) - Segment | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | 3 | ||
Number of reporting segments | 1 | ||
Geographic Concentration Risk | Revenue Benchmark | Foreign countries | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 49.00% | 49.00% | 48.00% |
Segment Information - Operating
Segment Information - Operating Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2019 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | $ 339,482 | $ 348,352 | $ 357,507 | $ 297,688 | $ 337,059 | $ 318,325 | $ 283,626 | $ 240,563 | $ 1,343,029 | $ 1,179,573 | $ 996,443 |
Depreciation and amortization | 44,932 | 39,084 | 30,261 | ||||||||
Total assets | 1,423,049 | 1,284,644 | 1,423,049 | 1,284,644 | |||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 1,343,029 | 1,179,573 | 996,443 | ||||||||
Depreciation and amortization | 39,671 | 35,161 | 28,259 | ||||||||
Total assets | 1,547,309 | 1,229,952 | 1,547,309 | 1,229,952 | |||||||
AMERICAS | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 757,112 | 682,261 | 588,052 | ||||||||
Depreciation and amortization | 12,917 | 13,732 | 13,548 | ||||||||
Total assets | 728,683 | 482,510 | 728,683 | 482,510 | |||||||
EUROPE | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 393,194 | 319,677 | 246,399 | ||||||||
Depreciation and amortization | 18,452 | 12,862 | 6,049 | ||||||||
Total assets | 618,375 | 546,758 | 618,375 | 546,758 | |||||||
ASIA- PACIFIC | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 192,723 | 177,635 | 161,992 | ||||||||
Depreciation and amortization | 8,302 | 8,567 | $ 8,662 | ||||||||
Total assets | $ 200,251 | $ 200,684 | $ 200,251 | $ 200,684 |
Segment Information - Operati_2
Segment Information - Operating Segments Depreciation, Amortization, and Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $ 44,932 | $ 39,084 | $ 30,261 |
Assets | 1,423,049 | 1,284,644 | |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 39,671 | 35,161 | 28,259 |
Assets | 1,547,309 | 1,229,952 | |
Corporate, Non-Segment | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 5,261 | 3,923 | $ 2,002 |
Assets | 141,942 | 123,100 | |
Eliminations | |||
Segment Reporting Information [Line Items] | |||
Assets | $ (266,202) | $ (68,408) |
Segment Information - Revenue a
Segment Information - Revenue and Long-lived Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2019 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 339,482 | $ 348,352 | $ 357,507 | $ 297,688 | $ 337,059 | $ 318,325 | $ 283,626 | $ 240,563 | $ 1,343,029 | $ 1,179,573 | $ 996,443 |
Long-lived assets | 292,888 | 292,888 | |||||||||
Long-lived assets | 324,585 | 324,585 | |||||||||
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 681,868 | 600,093 | 514,783 | ||||||||
Long-lived assets | 88,336 | 88,336 | |||||||||
Long-lived assets | 132,390 | 132,390 | |||||||||
Foreign countries | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 661,161 | 579,480 | $ 481,660 | ||||||||
Long-lived assets | $ 204,552 | $ 204,552 | |||||||||
Long-lived assets | $ 192,195 | $ 192,195 |
Quarterly Data and Share Info_3
Quarterly Data and Share Information (Unaudited) - Consolidated Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2019 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Quarterly Data and Share Information [Line Items] | |||||||||||
Net sales | $ 339,482 | $ 348,352 | $ 357,507 | $ 297,688 | $ 337,059 | $ 318,325 | $ 283,626 | $ 240,563 | $ 1,343,029 | $ 1,179,573 | $ 996,443 |
Gross profit | 135,704 | 135,762 | 138,590 | 115,398 | 121,682 | 99,945 | 109,148 | 93,582 | 525,454 | 424,357 | 386,021 |
Net income | $ 16,432 | $ 26,210 | $ 29,499 | $ 7,059 | $ 6,395 | $ 8,172 | $ 20,602 | $ 15,084 | $ 79,200 | $ 50,253 | $ 53,246 |
Basic income per share (in dollars per share) | $ 0.28 | $ 0.45 | $ 0.50 | $ 0.12 | $ 0.11 | $ 0.14 | $ 0.35 | $ 0.25 | $ 1.34 | $ 0.84 | $ 0.86 |
Diluted income per share (in dollars per share) | $ 0.28 | $ 0.45 | $ 0.50 | $ 0.12 | $ 0.11 | $ 0.14 | $ 0.35 | 0.25 | 1.34 | 0.84 | $ 0.86 |
Purchase price accounting amortization | $ 1,300 | $ 1,300 | $ 1,300 | $ 1,900 | $ 11,800 | $ 20,300 | |||||
Restructuring and asset impairment charges | $ 12,300 | $ 700 | 20,500 | ||||||||
Transaction costs related to acquisition | 1,200 | $ 2,400 | $ 5,800 | ||||||||
Tax cuts and jobs act, income tax benefit | $ 6,700 | ||||||||||
High | |||||||||||
Quarterly Data and Share Information [Line Items] | |||||||||||
Share prices (in dollars per share) | $ 17.68 | $ 15.84 | $ 17.22 | $ 19.40 | $ 23.50 | $ 24.50 | $ 26.10 | 26.25 | 17.68 | 23.50 | |
Low | |||||||||||
Quarterly Data and Share Information [Line Items] | |||||||||||
Share prices (in dollars per share) | $ 13.32 | $ 10.37 | $ 14.30 | $ 13.87 | $ 13.45 | $ 21.70 | $ 21.25 | $ 22.10 | $ 13.32 | $ 13.45 |
Items Reclassified from Other_2
Items Reclassified from Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Selling, General and Administrative Expenses | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Reclassification adjustment from AOCI | $ 1 | $ 1.8 | $ 1.6 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | Dec. 29, 2019USD ($) |
Chief Executive Officer | |
Subsequent Event [Line Items] | |
Termination obligations | $ 4.4 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts and Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Allowance for Doubtful Accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | $ 3,540 | $ 3,493 | $ 3,780 |
Charged to costs and expenses | 881 | 1,848 | 635 |
Charged to other accounts | 0 | 0 | 0 |
Deductions (describe) | 628 | 1,801 | 922 |
Balance at end of year | 3,793 | 3,540 | 3,493 |
Restructuring Reserve | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 11,907 | 2,568 | 10,291 |
Charged to costs and expenses | 7,944 | 11,961 | 3,999 |
Charged to other accounts | 49 | 8,569 | 3,300 |
Deductions (describe) | 8,357 | 2,622 | 3,724 |
Balance at end of year | 11,445 | 11,907 | 2,568 |
Warranty and Sales Allowances Reserves | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 3,495 | 4,111 | 5,529 |
Charged to costs and expenses | 1,519 | 1,074 | 2,071 |
Charged to other accounts | 0 | 0 | 0 |
Deductions (describe) | 1,161 | 1,690 | 3,489 |
Balance at end of year | $ 3,853 | $ 3,495 | $ 4,111 |