Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Jan. 02, 2022 | Feb. 18, 2022 | Jul. 02, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 2, 2022 | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 899,737,344 | ||
Entity Common Stock, Shares Outstanding | 59,282,711 | ||
Entity Central Index Key | 0000715787 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --01-02 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 | ||
Documents Incorporated by Reference | Portions of the Proxy Statement for the 2022 Annual Meeting of Shareholders are incorporated by reference into Part III. |
Audit Information
Audit Information | 12 Months Ended |
Jan. 02, 2022 | |
Audit Information [Abstract] | |
Auditor Name | BDO USA, LLP |
Auditor Location | Atlanta, Georgia |
Auditor Firm ID | 243 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Income Statement [Abstract] | |||
Net sales | $ 1,200,398 | $ 1,103,262 | $ 1,343,029 |
Cost of sales | 767,665 | 692,688 | 810,062 |
Gross profit on sales | 432,733 | 410,574 | 532,967 |
Selling, general and administrative expenses | 324,315 | 333,229 | 389,117 |
Restructuring, asset impairment and other charges | 3,621 | (4,626) | 12,947 |
Goodwill and intangible asset impairment charge | 0 | 121,258 | 0 |
Operating income (loss) | 104,797 | (39,287) | 130,903 |
Interest expense | 29,681 | 29,244 | 25,656 |
Other expense, net | 2,483 | 10,889 | 3,431 |
Income (loss) before income tax expense | 72,633 | (79,420) | 101,816 |
Income tax expense (benefit) | 17,399 | (7,491) | 22,616 |
Net income (loss) | $ 55,234 | $ (71,929) | $ 79,200 |
Earnings (loss) per share - basic (in dollars per share) | $ 0.94 | $ (1.23) | $ 1.34 |
Earnings (loss) per share - diluted (in dollars per share) | $ 0.94 | $ (1.23) | $ 1.34 |
Common shares outstanding - basic (in shares) | 58,971 | 58,547 | 58,943 |
Common shares outstanding - diluted (in shares) | 58,971 | 58,547 | 58,948 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 55,234 | $ (71,929) | $ 79,200 |
Other comprehensive income (loss), after tax: | |||
Foreign currency translation adjustment | (40,110) | 52,808 | (11,652) |
Cash flow hedge gain (loss) | 3,468 | ||
Cash flow hedge gain (loss) | (2,027) | (5,489) | |
Pension liability adjustment | 15,400 | (12,588) | (13,090) |
Other comprehensive income (loss) | (21,242) | 38,193 | (30,231) |
Comprehensive income (loss) | $ 33,992 | $ (33,736) | $ 48,969 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 |
Current assets | ||
Cash and cash equivalents | $ 97,252 | $ 103,053 |
Accounts receivable, net | 171,676 | 139,869 |
Inventories, net | 265,092 | 228,725 |
Prepaid expenses and other current assets | 38,320 | 23,747 |
Total current assets | 572,340 | 495,394 |
Property, plant and equipment, net | 329,801 | 359,036 |
Operating lease right-of-use assets | 90,561 | 98,013 |
Deferred tax asset | 23,994 | 18,175 |
Goodwill and intangibles, net | 223,204 | 253,536 |
Other assets | 90,157 | 81,857 |
Total assets | 1,330,057 | 1,306,011 |
Current liabilities | ||
Accounts payable | 85,924 | 58,687 |
Accrued expenses | 146,298 | 105,739 |
Current portion of operating lease liabilities | 14,588 | 13,555 |
Current portion of long-term debt | 15,002 | 15,319 |
Total current liabilities | 261,812 | 193,300 |
Long-term debt | 503,056 | 561,251 |
Operating lease liabilities | 77,905 | 86,468 |
Deferred income taxes | 36,723 | 34,307 |
Other long-term liabilities | 87,163 | 104,147 |
Total liabilities | 966,659 | 979,473 |
Commitments and contingencies | ||
Shareholders’ equity | ||
Preferred stock, par value $1.00 per share; 5,000 shares authorized; none issued or outstanding at January 2, 2022 and January 3, 2021 | 0 | 0 |
Common stock, par value $0.10 per share; 120,000 shares authorized; 59,055 and 58,664 shares issued and outstanding at January 2, 2022 and January 3, 2021, respectively | 5,905 | 5,865 |
Additional paid-in capital | 253,110 | 247,920 |
Retained earnings | 261,434 | 208,562 |
Accumulated other comprehensive loss – foreign currency translation | (100,441) | (60,331) |
Accumulated other comprehensive loss – cash flow hedge | (2,722) | (6,190) |
Accumulated other comprehensive loss – pension liability | (53,888) | (69,288) |
Total shareholders’ equity | 363,398 | 326,538 |
Total liabilities and shareholders’ equity | $ 1,330,057 | $ 1,306,011 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
OPERATING ACTIVITIES: | |||
Net income (loss) | $ 55,234 | $ (71,929) | $ 79,200 |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | |||
Depreciation and amortization | 46,345 | 45,920 | 44,932 |
Stock compensation amortization expense (benefit) | 5,467 | (502) | 8,691 |
Loss on disposal of fixed assets | 4,427 | 4,996 | 0 |
Bad debt expense | (263) | 3,843 | 1,206 |
Deferred income taxes and other | (16,379) | (20,794) | (9,497) |
Amortization of acquired intangible assets | 5,636 | 5,457 | 5,903 |
Goodwill and intangible asset impairment charge | 0 | 121,258 | 0 |
Working capital changes: | |||
Accounts receivable | (36,096) | 40,090 | (930) |
Inventories | (47,074) | 38,667 | 2,573 |
Prepaid expenses and other current assets | (4,800) | 12,967 | (9,691) |
Accounts payable and accrued expenses | 74,192 | (60,903) | 19,381 |
Cash provided by operating activities | 86,689 | 119,070 | 141,768 |
INVESTING ACTIVITIES: | |||
Capital expenditures | (28,071) | (62,949) | (74,647) |
Other | 0 | 1,260 | 425 |
Cash used in investing activities | (28,071) | (61,689) | (74,222) |
FINANCING ACTIVITIES: | |||
Revolving loan borrowing | 76,000 | 110,000 | 90,000 |
Revolving loan repayments | (71,500) | (131,024) | (87,664) |
Term loan repayments | (60,485) | (304,425) | (24,028) |
Proceeds from issuance of Senior Notes due 2028 | 0 | 300,000 | 0 |
Repurchase of common stock | 0 | 0 | (25,154) |
Dividends paid | (2,362) | (5,565) | (15,358) |
Tax withholding payments for share-based compensation | (193) | (1,511) | (3,278) |
Debt issuance costs | (36) | (7,896) | 0 |
Payments for debt extinguishment costs | 0 | (660) | 0 |
Proceeds from issuance of common stock | 0 | 93 | 60 |
Finance lease payments | (2,282) | (1,727) | (1,255) |
Cash used in financing activities | (60,858) | (42,715) | (66,677) |
Net cash provided by (used in) operating, investing and financing activities | (2,240) | 14,666 | 869 |
Effect of exchange rate changes on cash | (3,561) | 7,086 | (557) |
CASH AND CASH EQUIVALENTS: | |||
Net increase (decrease) | (5,801) | 21,752 | 312 |
Balance, beginning of year | 103,053 | 81,301 | 80,989 |
Balance, end of year | $ 97,252 | $ 103,053 | $ 81,301 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jan. 02, 2022 | Jan. 03, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (in shares) | 120,000,000 | 120,000,000 |
Common stock, shares issued (in shares) | 59,055,000 | 58,664,000 |
Common stock, shares outstanding (in shares) | 59,055,000 | 58,664,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 02, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Interface is a global flooring company specializing in carbon neutral carpet tile and resilient flooring, including luxury vinyl tile (“LVT”), vinyl sheet, and nora® rubber flooring. The Company manufactures modular carpet focusing on the high quality, designer-oriented sector of the market, sources resilient flooring including LVT from third parties and focuses on the same sector of the market, and provides specialized carpet replacement, installation and maintenance services. The Company also manufactures and sells resilient rubber flooring. In the first quarter of 2021, the Company largely completed its integration of the nora acquisition, and integration of its European and Asia-Pacific commercial areas, and determined that it has two operating and reportable segments – namely Americas (“AMS”) and Europe, Africa, Asia and Australia (collectively “EAAA”). The AMS operating segment is unchanged from prior year and continues to include the United States, Canada and Latin America geographic areas. See Note 20 entitled “Segment Information” for additional information. 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, plant and equipment. Actual results could vary from these estimates. Risks and Uncertainties In March 2020, the World Health Organization declared the COVID-19 outbreak a pandemic, and many companies have experienced disruptions in their operations. The Company considered the impact of COVID-19 on the assumptions and estimates used and determined that, except for the impact to our gross margins and our global supply chain in 2021, the 2020 goodwill and intangible asset impairment discussed in Note 12 entitled “Goodwill and Intangible Assets,” the decline in 2020 revenue, and its consequent impacts on production volume, operating income, net income, cash flows, and order rates, there were no other material adverse impacts on the Company’s results of operations and financial position at January 2, 2022. The Company’s Syndicated Credit Facility has various financial and other covenants including, but not limited to, a covenant to not exceed a maximum net debt to EBITDA ratio, as defined by the credit facility agreement. On July 15, 2020, November 17, 2020, and December 9, 2021, the Company amended its Syndicated Credit Facility; see Note 9 entitled “Long-Term Debt” for additional information. The full extent of the future impact of COVID-19 on the Company’s operations is uncertain. A prolonged COVID-19 pandemic may continue to have a material adverse impact on our operations, financial condition, and supply chains. It may negatively impact our ability to collect outstanding receivables, manage inventory, and service customers. The impact of COVID-19 could result in additional impairment losses related to goodwill, intangible assets, and property, plant and equipment. As the virus spreads through communities, it could impact the physical health, mental health, and productivity of our workforce as many of them are required to shelter in place and work from home for prolonged periods of time, and it could also impact our ability to reach our customers and collaborate with them as they are required to shelter in place and work from home for prolonged periods of time. The COVID-19 pandemic is having broad and negative implications on the global economy, which affects the size and timing of our customers’ capital budgets, and could result in delays or terminations of new and existing renovation projects, remodeling projects, new construction projects, and other projects where our products are used. COVID-19 Impact We continue to monitor our operations and have implemented various programs to mitigate the effects of COVID-19 on our business including reductions in employee headcount, labor costs, marketing expenses, consulting spend, travel costs, capital expenditures, and other cost reduction or avoidance initiatives. Government grants and payroll protection programs have been available globally to provide assistance to companies impacted by the pandemic. The Coronavirus Aid, Relief and Economic Security Act (“ CARES Act”) enacted in the United States (see Note 17 entitled “ Income Taxes ” for additional information) and a payroll protection program enacted in the Netherlands (the “NOW Program”) have provided benefits related to payroll costs either as reimbursements, lower payroll tax rates or deferral of payroll tax payments. The NOW Program has provided eligible companies with reimbursement of labor costs as an incentive to retain employees on the payroll. During fiscal year 2020, the Company received reimbursements under the NOW program and recognized a reduction in payroll costs of approximately $7.3 million, which were recorded as a $6.1 million reduction of selling, general and administrative expenses and a $1.2 million reduction of cost of sales in the consolidated statements of operations. We applied a grant analogy method to recognize the reimbursements under the NOW program as the Company believes it is probable that the benefits received will not be repaid. Revenue Recognition Revenue from contracts with customers is recognized 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. 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 2021, 2020 and 2019, approximately 98% of the Company’s total revenue 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 2021, 2020 and 2019 of 2% 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 based on a project cost input method 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 five 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 within revenues. The Company records such taxes collected as a liability on our consolidated balance sheets. 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 accounts 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. The nature of the installation projects is such that the vast majority – an amount in excess of 85% of these installation projects – are completed in less than five days. The Company’s largest installation customers are retail, education 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 each reporting period and recorded revenue in accordance with the accounting standards for projects which were underway as of the end of 2021, 2020 and 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 (“SG&A”) expenses and cost of sales in the consolidated statements of operations. Research and development expense was $19.3 million, $18.6 million, and $17.8 million for the years 2021, 2020 and 2019, 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 not hold any significant amounts of cash equivalents and short-term investments at January 2, 2022 and January 3, 2021. Cash payments for interest amounted to approximately $22.9 million, $32.0 million, and $22.7 million for the years 2021, 2020 and 2019, respectively. 2020 includes cash payments of $12.5 million to terminate the Company’s interest rate swap liabilities. Income tax payments amounted to approximately $23.1 million, $19.3 million and $34.8 million for the years 2021, 2020 and 2019, respectively. During the years 2021, 2020 and 2019, the Company received income tax refunds of $5.4 million, $7.5 million and $1.9 million, respectively. Allowances for Expected Credit Losses The Company maintains allowances for expected credit losses for estimated losses resulting from the inability of customers to make required payments. Estimating the amount of future expected losses requires the Company to consider historical losses from our customers, as well as current market conditions and future forecasts of our customers’ ability to make payments for goods and services. 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. 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 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 SG&A expenses in the accompanying consolidated statements of operations. Leases The Company records a right-of-use asset and lease liability for operating and finance leases once a contract that contains a lease is executed and the Company has 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 is 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. The Company 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 balance sheets. These leases primarily represent month-to-month operating leases for office equipment where we were reasonably certain that we would not elect an option to extend the lease. The Company also made an accounting policy election not to separate lease and non-lease components for all asset classes and accounts 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 three 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 Intangible Assets In accordance with applicable accounting standards, the Company tests goodwill for impairment annually and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. During the fourth quarters of 2021, 2020 and 2019, the Company performed the annual goodwill impairment test. In addition, during the first quarter of 2020—primarily due to anticipated impacts of the COVID-19 pandemic—the Company determined that there were indicators of impairment, and the Company proceeded with a goodwill impairment test as of the end of the first quarter. The Company tests goodwill at the reporting unit level, which is one level below the operating segment level. 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. See Note 12 entitled “Goodwill and Intangible Assets” for additional information. Trademark and tradename intangible assets acquired in connection with the nora acquisition are not subject to amortization, but are tested for impairment annually and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of the intangible asset below its carrying amount. During the first quarter of 2020—primarily due to anticipated impacts of the COVID-19 pandemic—the Company determined that there were indicators of impairment, and the Company proceeded with an impairment test as of the end of the first quarter. The Company prepared valuations of the intangible assets using the present value of cash flows under the relief from royalty method, which were compared to the carrying value of intangible assets to determine whether any impairment existed. See Note 12 entitled “Goodwill and Intangible Assets” for additional information. The Company’s other intangible assets consist of developed technology that is amortized on a straight-line basis over the estimated useful life of 7 years. 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 The Company records a provision related to warranty costs based on historical experience and future expectations and periodically adjusts these provisions to reflect changes in actual experience. Warranty and sales allowance reserves amounted to $2.7 million and $3.2 million as of January 2, 2022 and January 3, 2021, 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 17 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. See Note 5 entitled “Fair Value of Financial Instruments” for further information. 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 reclassified from equity to income. Foreign exchange translation gains (losses) were $(40.1) million, $52.8 million, and $(11.7) million for the years 2021, 2020 and 2019, respectively. Earnings per Share Basic earnings per share is computed based on the average number of common shares outstanding, including participating securities. 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. See Note 15 entitled “Earnings Per Share” for additional information. Stock-Based Compensation The Company has stock-based employee compensation plans, which are described more fully in Note 14 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 2021, 2020 or 2019. 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 changes in the fair value of the derivative are recognized in other comprehensive income (or other comprehensive loss) until the hedged item is recognized in earnings. Changes in the fair value of derivatives not designated as hedging instruments are recognized in earnings each period. Derivative liabilities are recorded in accrued expenses and derivative assets are recorded in other current assets in the consolidated balance sheets. Cash flows from all derivative instruments, including those not designated as hedging instruments, are classified in the same category as the cash flows from the items being hedged. 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. Reclassifications In the first quarter of 2021, the Company determined that it has two operating and reportable segments – namely Americas (“AMS”) and Europe, Africa, Asia and Australia (collectively “EAAA”). The AMS operating segment is unchanged from prior year and continues to include the United States, Canada and Latin America geographic areas. Segment disclosures for 2020 and 2019 have been restated to conform to the current reportable segment structure. See Note 20 entitled “Segment Information” for additional information. In 2020, the Company made certain classification and presentation changes related to customer service and other costs. Previously, these costs were presented as a component of cost of sales. Beginning in 2020, these costs are presented as a component of SG&A expense. The Company determined that this change better reflects how management views and operates the business. Reclassifications of the comparative prior year 2019 amounts as reported in the Company’s Annual Report on Form 10-K for the year ended December 29, 2019 have been made to conform to the current presentation as follows: Fiscal Year 2019 Statement of Operations Line Item As Reported Reclassification As Reclassified (in thousands) Cost of sales $ 817,575 $ (7,513) $ 810,062 Selling, general and administrative expenses 381,604 7,513 389,117 Total $ 1,199,179 $ — $ 1,199,179 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 “2021,” “2020,” and “2019,” mean the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively. Fiscal year 2021 is comprised of 52 weeks, 2020 is comprised of 53 weeks, and 2019 is comprised of 52 weeks. |
Risks and Uncertainties | Risks and Uncertainties In March 2020, the World Health Organization declared the COVID-19 outbreak a pandemic, and many companies have experienced disruptions in their operations. The Company considered the impact of COVID-19 on the assumptions and estimates used and determined that, except for the impact to our gross margins and our global supply chain in 2021, the 2020 goodwill and intangible asset impairment discussed in Note 12 entitled “Goodwill and Intangible Assets,” the decline in 2020 revenue, and its consequent impacts on production volume, operating income, net income, cash flows, and order rates, there were no other material adverse impacts on the Company’s results of operations and financial position at January 2, 2022. The Company’s Syndicated Credit Facility has various financial and other covenants including, but not limited to, a covenant to not exceed a maximum net debt to EBITDA ratio, as defined by the credit facility agreement. On July 15, 2020, November 17, 2020, and December 9, 2021, the Company amended its Syndicated Credit Facility; see Note 9 entitled “Long-Term Debt” for additional information. The full extent of the future impact of COVID-19 on the Company’s operations is uncertain. A prolonged COVID-19 pandemic may continue to have a material adverse impact on our operations, financial condition, and supply chains. It may negatively impact our ability to collect outstanding receivables, manage inventory, and service customers. The impact of COVID-19 could result in additional impairment losses related to goodwill, intangible assets, and property, plant and equipment. |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS Recently Adopted Accounting Pronouncements On January 4, 2021, the Company adopted Accounting Standards Update (“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 related to intraperiod tax allocation, the calculation of income taxes in interim periods, and the accounting for outside basis differences of foreign subsidiaries and equity method investments. The amendments also improve consistent application of and simplify GAAP for other areas of ASC Topic 740, including franchise or similar taxes partially based on income, the accounting for a step-up in tax basis goodwill, and interim recognition of an enacted change in tax laws or rates, by clarifying and amending existing guidance. The adoption of this standard did not have a material impact to the Company’s consolidated financial statements. In November 2021, the Financial Accounting Standards Board (“FASB”) issued ASU 2021-10, “ Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. ” The amendments in this update require annual disclosure of transactions with a government that provides assistance to an entity that is accounted for by applying a grant or contribution model by analogy. Required disclosures include the nature of the transaction and the accounting policy applied to account for the transaction, the financial statement line items affected by the transaction and significant terms and conditions. The amendments are effective for annual periods beginning after December 15, 2021. Early adoption is permitted. The Company adopted this ASU on January 2, 2022 and applied the disclosures retrospectively to transactions reflected in its financial statements at adoption, as permitted by the ASU. See Note 1 entitled “Summary of Significant Accounting Policies” of this Form 10-K for required information as it pertains to government assistance received during the COVID-19 pandemic under the NOW program enacted in the Netherlands. In March 2020, the FASB issued ASU 2020-04, “ Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting .” This standard addresses the risks from the discontinuation of the London Interbank Offered Rate (LIBOR) and provides optional expedients and exceptions to contracts, hedging relationships and other transactions that reference LIBOR if certain criteria are met. This new guidance is effective and may be applied beginning March 12, 2020 through December 31, 2022. As discussed in Note 9 entitled “Long-Term Debt”: the Company adopted this ASU on December 9, 2021 in connection with the fourth amendment to the Syndicated Credit Facility, which among other things, provided amendments to replace the LIBOR interest rate benchmark applicable to loans with specified successor benchmark rates. The adoption of this ASU did not have a material impact on our consolidated financial statements. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Jan. 02, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS Recently Adopted Accounting Pronouncements On January 4, 2021, the Company adopted Accounting Standards Update (“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 related to intraperiod tax allocation, the calculation of income taxes in interim periods, and the accounting for outside basis differences of foreign subsidiaries and equity method investments. The amendments also improve consistent application of and simplify GAAP for other areas of ASC Topic 740, including franchise or similar taxes partially based on income, the accounting for a step-up in tax basis goodwill, and interim recognition of an enacted change in tax laws or rates, by clarifying and amending existing guidance. The adoption of this standard did not have a material impact to the Company’s consolidated financial statements. In November 2021, the Financial Accounting Standards Board (“FASB”) issued ASU 2021-10, “ Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. ” The amendments in this update require annual disclosure of transactions with a government that provides assistance to an entity that is accounted for by applying a grant or contribution model by analogy. Required disclosures include the nature of the transaction and the accounting policy applied to account for the transaction, the financial statement line items affected by the transaction and significant terms and conditions. The amendments are effective for annual periods beginning after December 15, 2021. Early adoption is permitted. The Company adopted this ASU on January 2, 2022 and applied the disclosures retrospectively to transactions reflected in its financial statements at adoption, as permitted by the ASU. See Note 1 entitled “Summary of Significant Accounting Policies” of this Form 10-K for required information as it pertains to government assistance received during the COVID-19 pandemic under the NOW program enacted in the Netherlands. In March 2020, the FASB issued ASU 2020-04, “ Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting .” This standard addresses the risks from the discontinuation of the London Interbank Offered Rate (LIBOR) and provides optional expedients and exceptions to contracts, hedging relationships and other transactions that reference LIBOR if certain criteria are met. This new guidance is effective and may be applied beginning March 12, 2020 through December 31, 2022. As discussed in Note 9 entitled “Long-Term Debt”: the Company adopted this ASU on December 9, 2021 in connection with the fourth amendment to the Syndicated Credit Facility, which among other things, provided amendments to replace the LIBOR interest rate benchmark applicable to loans with specified successor benchmark rates. The adoption of this ASU did not have a material impact on our consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Jan. 02, 2022 | |
Revenues [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION Revenue from sales of carpet, modular resilient flooring, rubber flooring, and other flooring-related material was approximately 98% of total revenue for 2021, 2020 and 2019. The remaining 2% of revenue was generated from the installation of carpet and other flooring-related material in 2021, 2020 and 2019. Disaggregation of Revenue For fiscal years 2021, 2020 and 2019, revenue from the Company’s customers is broken down by geography as follows: Fiscal Year Geography 2021 2020 2019 Americas 54.3% 53.8% 56.4% Europe 31.7% 31.8% 29.3% Asia-Pacific 14.0% 14.4% 14.3% Revenue from the Company’s customers in the Americas corresponds to the AMS reportable segment, and the EAAA reportable segment includes revenue from the Europe and Asia-Pacific geographies. See Note 20 entitled “Segment Information” for additional information. |
Receivables
Receivables | 12 Months Ended |
Jan. 02, 2022 | |
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. 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 expected credit 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 January 2, 2022 and January 3, 2021, the allowance for expected credit losses amounted to $5.0 million and $6.6 million, respectively, for all accounts receivable of the Company. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Jan. 02, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS 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. The following table presents the carrying values and estimated fair values, including the level within the fair value hierarchy, of certain financial instruments: January 2, 2022 January 3, 2021 Carrying Value Fair Value (Level 1) Fair Value (Level 2) Carrying Value Fair Value (Level 2) (in thousands) Assets: Company-owned life insurance $ 22,378 $ — $ 22,378 $ 22,048 $ 22,048 Deferred compensation investments 35,578 15,557 20,021 33,939 33,939 Liabilities: Borrowings under Syndicated Credit Facility (1) $ 225,131 $ — $ 225,131 $ 285,215 $ 285,215 5.50% Senior Notes due 2028 (1) 300,000 — 315,039 300,000 315,999 (1) Carrying values exclude unamortized debt issuance costs and include amounts presented as current liabilities on the consolidated balance sheets. Company-Owned Life Insurance The fair value of Company-owned life insurance is measured on a readily determinable cash surrender value on a recurring basis. Company-owned life insurance is recorded at fair value within other assets in the consolidated balance sheets. Deferred Compensation Investments Assets associated with the Company’s non-qualified savings plans are held in a rabbi trust and consist of investments in mutual funds and insurance contracts. The fair value of the mutual funds is derived from quoted prices in active markets. The fair value of the insurance contracts is based on observable inputs related to the performance measurement funds that shadow the deferral investment allocations made by participants in the non-qualified savings plans. These investments are recorded at fair value within other assets in the consolidated balance sheets. See Note 19 entitled “Employee Benefit Plans” for additional information on the Company’s non-qualified savings plans. Syndicated Credit Facility and Senior Notes The Company’s liabilities for borrowings under the Syndicated Credit Facility (the “Facility”) and 5.50% Senior Notes due 2028 (the “Senior Notes”) are not recorded at fair value in the consolidated balance sheets. The carrying value of borrowings under the Facility approximates fair value as the Facility bears variable interest rates that are similar to existing market rates. The fair value of the Senior Notes is derived using quoted prices for similar instruments. Other Assets and Liabilities Due to the short maturity of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, their carrying values approximate fair value. See Note 19 entitled “Employee Benefit Plans” for additional information on defined benefit plan assets. |
Inventories
Inventories | 12 Months Ended |
Jan. 02, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Inventories are summarized as follows: End of Fiscal Year 2021 2020 (in thousands) Finished goods $ 182,896 $ 152,836 Work-in-process 15,185 17,109 Raw materials 67,011 58,780 Inventories, net $ 265,092 $ 228,725 Reserves for inventory obsolescence amounted to $27.1 million and $35.0 million as of January 2, 2022 and January 3, 2021, respectively, and have been netted against amounts presented above. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Jan. 02, 2022 | |
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 2021 2020 (in thousands) Land $ 17,237 $ 18,348 Buildings and improvements 176,980 176,702 Equipment and furniture (1) 642,390 657,796 836,607 852,846 Accumulated depreciation and amortization (2) (506,806) (493,810) Property, plant and equipment, net $ 329,801 $ 359,036 (1) Includes $14.8 million and $9.9 million of leased equipment for 2021 and 2020, respectively. (2) Includes $8.3 million and $3.8 million of accumulated amortization on leased equipment for 2021 and 2020, respectively. As of January 2, 2022 and January 3, 2021, construction-in-progress was approximately $44.6 million and $43.0 million, respectively. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Jan. 02, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | ACCRUED EXPENSES Accrued expenses are summarized as follows: End of Fiscal Year 2021 2020 (in thousands) Compensation $ 96,802 $ 79,306 Interest 1,577 2,507 Restructuring 2,354 1,064 Taxes 25,295 2,073 Accrued purchases 5,588 5,916 Warranty and sales allowances 2,702 3,248 Other 11,980 11,625 Accrued Expenses $ 146,298 $ 105,739 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Jan. 02, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | LONG-TERM DEBT Long-term debt consisted of the following: January 2, 2022 January 3, 2021 Outstanding Principal Interest Rate (1) Outstanding Principal Interest Rate (1) (in thousands) (in thousands) Syndicated Credit Facility: Revolving loan borrowings $ 7,500 4.00 % $ 3,000 4.00 % Term loan borrowings 217,631 1.84 % 282,215 1.87 % Total borrowings under Syndicated Credit Facility 225,131 1.91 % 285,215 1.89 % 5.50% Senior Notes due 2028 300,000 5.50 % 300,000 5.50 % Total debt 525,131 585,215 Less: Unamortized debt issuance costs (7,073) (8,645) Total debt, net 518,058 576,570 Less: Current portion of long-term debt (15,002) (15,319) Total long-term debt, net $ 503,056 $ 561,251 (1) Represents the stated rate of interest, without the effect of debt issuance costs or interest rate swaps. Syndicated Credit Facility The Company’s Syndicated Credit Facility (the “Facility”) provides to the Company U.S. denominated and multicurrency term loans and provides to the Company and certain of its subsidiaries a multicurrency revolving credit facility. At January 2, 2022, the 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. At January 2, 2022, the Company had available borrowing capacity of $290.9 million under the revolving loan facility. Amendments On December 18, 2019, the Company amended the Facility. 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 allowed 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 benchmark rate. On July 15, 2020, the Company entered into a second amendment to its Facility. This amendment, among other changes, provided for the following: (1) amended the consolidated net leverage ratio covenant making it less restrictive for a period of seven consecutive fiscal quarters beginning with the third quarter of fiscal year 2020 through the first quarter of fiscal year 2022 (the “Relief Period”); (2) amended the pricing grid used to determine interest rate margins on outstanding loans as well as the commitment fee on the unused portion of the Facility to include additional consolidated net leverage ratio levels with increased pricing at higher levels of leverage; (3) amended interest rate provisions to provide for an interest rate floor of either 0.00% or 0.75%, as applicable, on certain tranches of term loans outstanding; and (4) provided temporary restrictions during the Relief Period on the Company’s ability to make acquisitions, pay dividends, repurchase shares, or enter into new credit facilities without lender consent. The Company incurred approximately $1.5 million in debt issuance costs to execute this amendment. Of this amount, approximately $1.0 million of debt issuance costs associated with term loan borrowings was recorded as a reduction of long-term debt, and approximately $0.5 million of debt issuance costs associated with revolving loan borrowings was recorded in other assets in the consolidated balance sheet. These costs will be amortized over the life of the outstanding debt. On November 17, 2020, the Company entered into a third amendment to its Facility. The third amendment provided for, among other changes, the following amendments to the Facility: • the amendment of the maturity date of the Facility to November 2025; • the amendment of the 0.75% interest rate floor in respect of certain loans under the Facility with an interest rate floor of 0.00%; • amendments to the financial covenants to replace the consolidated net leverage ratio covenant with a consolidated secured net leverage ratio covenant that is not to exceed 3.00 to 1.00; • amendments to remove the Relief Period restrictions previously imposed pursuant to the second amendment; and • amendments to provide for the case where any interest rate benchmark in the future ceases to be available. In connection with the third amendment, the Company recognized a loss on extinguishment of debt of $3.6 million within interest expense in the consolidated statement of operations and recorded approximately $0.9 million of debt issuance costs. Of this amount, approximately $0.1 million of debt issuance costs associated with term loan borrowings was recorded as a reduction of long-term debt, and approximately $0.8 million of debt issuance costs associated with revolving loan borrowings was recorded in other assets in the consolidated balance sheet. On December 9, 2021, the Company entered into a fourth amendment to its Facility. The fourth amendment provided for, among other changes, the following amendments to the Facility, which became effective on December 16, 2021: • amendments to replace the LIBOR interest rate benchmark applicable to loans and other extensions of credit under the Facility denominated in British Pounds sterling and Euros with specified successor benchmark rates; • the amendment of certain provisions related to the implementation, use and administration of successor benchmark rates and to set forth certain borrowing requirements; and • amendments to provide for the case where any interest rate benchmark in the future ceases to be available. Interest Rates and Fees Interest on base rate loans is charged at varying rates computed by applying a margin ranging from 0.25% to 2.00%, depending on the Company’s consolidated net leverage ratio as of the most recently completed fiscal quarter. Interest on Eurocurrency-based loans and fees for letters of credit are charged at varying rates computed by applying a margin ranging from 1.25% to 3.00% 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 0.40% 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 Secured Net Leverage Ratio: Must be no greater than 3.00:1.00. • 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 a Second 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 both January 2, 2022 and January 3, 2021, the Company had $1.6 million in letters of credit outstanding under the Facility. Under the Facility, the Company is required to make quarterly amortization payments of the term loan borrowings. 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. 5.50% Senior Notes due 2028 On November 17, 2020, the Company issued $300.0 million aggregate principal amount of 5.50% Senior Notes due December 2028 (the “Senior Notes”). The Senior Notes bear an interest rate at 5.50% per annum and mature on December 1, 2028. Interest is paid semi-annually on June 1 and December 1 of each year, beginning on June 1, 2021. The Company used the net proceeds to repay approximately $269.7 million of outstanding term loan borrowings and approximately $21.0 million of outstanding revolving loan borrowings under its existing Facility. In connection with the issuance of the Senior Notes, the Company recorded approximately $5.7 million of debt issuance costs. These costs were recorded as a reduction of long-term debt in the consolidated balance sheet and will be amortized over the life of the outstanding debt. The Senior Notes are unsecured and are guaranteed, jointly and severally, by each of the Company’s material domestic subsidiaries, all of which also guarantee the obligations of the Company under its existing Facility. Redemption On or after December 1, 2023, the Company may redeem the Senior Notes, in whole or in part, at any time at the redemption prices listed below, plus accrued and unpaid interest, if any, to (but excluding) the redemption date, if redeemed during the 12-month period commencing on December 1 of the years set forth below: Period Redemption Price 2023 102.750 % 2024 101.375 % 2025 and thereafter 100.000 % In addition, the Company may redeem up to 35% of the aggregate principal amount of the Senior Notes before December 1, 2023 with the proceeds of certain equity offerings at a redemption price of 105.50%, plus accrued and unpaid interest, if any, to (but excluding) the redemption date. The Company may also redeem all or a part of the Senior Notes before December 1, 2023 at a price equal to 100% of the principal amount plus accrued and unpaid interest, if any, to (but excluding) the redemption date, plus a make-whole premium. If the Company experiences a change of control, the Company will be required to offer to purchase the Senior Notes at 101% of their principal amount, plus accrued and unpaid interest to (but excluding) the date of repurchase. Covenants The indenture governing the Senior Notes 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: • incur additional indebtedness; • declare or pay dividends, redeem stock or make other distributions to shareholders; • make investments; • create liens on their assets or use their assets as security in other transactions; • enter into mergers, consolidations or sales, transfers, leases or other dispositions of all or substantially all of the Company’s assets; • enter into certain transactions with affiliates; and • sell or transfer certain assets. Events of Default If the Company breaches or fails to perform any of the affirmative or negative covenants under the indenture governing the Senior Notes, or if other specified events occur (such as a bankruptcy or similar event), 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 terms of the indenture permit the trustee or the holders of at least 25% in principal amount of outstanding Senior Notes to declare the principal, premium, if any, and accrued but unpaid interest on all the Senior Notes to be due and payable. Other Lines of Credit Subsidiaries of the Company have an aggregate of the equivalent of $6.0 million of other lines of credit available at interest rates ranging from 3.5% to 6.0%. As of January 2, 2022 and January 3, 2021, there were no borrowings outstanding under these lines of credit. Borrowing Costs Debt issuance costs associated with the Company’s Senior Notes and term loans under the Facility 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, and over the life of the outstanding borrowing the debt balance will increase by the same amount as the fees that are amortized. As of January 2, 2022 and January 3, 2021, the unamortized debt issuance costs recorded as a reduction of long-term debt were $7.1 million and $8.6 million, respectively. Expenses related to such costs for the years 2021, 2020 and 2019 amounted to $1.6 million, $1.7 million, and $1.8 million, respectively. Other deferred borrowing costs, which include underwriting, legal and other direct costs related to the issuance of revolving debt, net of accumulated amortization, were $1.6 million and $2.0 million, as of January 2, 2022 and January 3, 2021, 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 2021, 2020 and 2019 amounted to $0.4 million, $0.4 million, and $0.4 million, respectively. Future Maturities The aggregate maturities of borrowings for each of the five fiscal years subsequent to 2021 are as follows: Fiscal Year Amount (in thousands) 2022 $ 15,002 2023 15,002 2024 15,002 2025 180,125 2026 — Thereafter 300,000 Total Debt $ 525,131 Total long-term debt in the consolidated balance sheet includes a reduction for unamortized debt issuance costs of $7.1 million which are excluded from the maturities table above. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Jan. 02, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTS Interest Rate Risk Management From time to time, the Company enters into interest rate swap transactions to fix the variable interest rate on a portion of its term loan borrowing in order to manage a portion of its exposure to interest rate fluctuations. The Company’s objective and strategy with respect to these interest rate swaps is to protect the Company against adverse fluctuations in interest rates by reducing its exposure to variability to cash flows relating to interest payments on a portion of its outstanding debt. Cash Flow Interest Rate Swaps The Company reports the changes in fair value of derivatives designated as hedging instruments as a component of other comprehensive income (or other comprehensive loss). In the fourth quarter of 2020, the Company terminated its designated interest rate swap transactions with a total notional value of $250 million. Hedge accounting was also discontinued at that time. The termination resulted in a loss of $3.9 million recorded in interest expense in the consolidated statements of operations in 2020 as it was probable that a portion of the original forecasted transactions related to the portion of the hedged debt that was repaid will not occur by the end of the originally specified time period. As of January 2, 2022 and January 3, 2021, the remaining accumulated other comprehensive loss associated with the terminated interest rate swaps was $3.8 million and $8.7 million, respectively, and will be amortized to earnings over the remaining term of the interest rate swaps prior to termination. We expect that approximately $2.8 million, before tax, related to the terminated interest rate swaps will be reclassified from accumulated other comprehensive loss as an increase to interest expense in the next 12 months. Forward Contracts The Company, from time to time, is 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 are 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 are reflected as a component of other comprehensive income (or other comprehensive loss). As of January 2, 2022 and January 3, 2021, there were no active forward currency contracts. Derivative Transactions Not Designated as Hedging Instruments Our EAAA segment, from time to time, purchases foreign currency options to economically hedge inventory purchases denominated in foreign currencies other than their functional currency. The Company’s objective with respect to these foreign currency options is to protect the Company against adverse fluctuations in currency rates by reducing its exposure to variability in cash flows related to payment on inventory purchases. These options are classified as non-designated derivative instruments. Gains and losses on the changes in fair value of these foreign currency options are recognized in earnings each period. As of January 2, 2022, the Company had no outstanding foreign currency options. The table below sets forth the fair value of derivative instruments as of January 3, 2021: Asset Derivatives as of January 3, 2021 Liability Derivatives as of January 3, 2021 Balance Sheet Fair Value Balance Sheet Fair Value (in thousands) Derivative instruments designated as hedging instruments: Interest rate swap contracts Other current assets $ — Accrued expenses $ — Derivative instruments not designated as hedging instruments: Foreign currency options Other current assets 37 Accrued expenses — $ 37 $ — 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 other comprehensive income (loss), net of tax: Fiscal Year 2020 2019 (in thousands) Foreign currency contracts gain $ — $ 468 Interest rate swap contracts loss (2,027) (5,957) Loss recognized in other comprehensive income (loss) $ (2,027) $ (5,489) Gains and losses from derivatives designated as cash flow hedges reclassified from accumulated other comprehensive loss into net income (loss) are discussed in Note 21 entitled “Items Reclassified From Accumulated Other Comprehensive Loss.” The following table summarizes gains and losses on derivatives not designated as hedging instruments within the consolidated statements of operations: Fiscal Year Statement of Operations Location 2021 2020 2019 (in thousands) Foreign currency options gain (loss) Other expense $ 408 $ 13 $ (627) |
Leases
Leases | 12 Months Ended |
Jan. 02, 2022 | |
Leases [Abstract] | |
Leases | LEASES General The Company has operating and finance leases for manufacturing equipment, corporate offices, showrooms, distribution facilities, design centers, as well as computer and office equipment. The Company’s 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 accounting may include these options to extend or terminate a lease when it is reasonably certain that we will exercise that option. As of January 2, 2022, there were no significant leases that had not commenced as of the end of fiscal year 2021. The table below represents a summary of the balances recorded in the consolidated balance sheets related to our leases as of January 2, 2022 and January 3, 2021: January 2, 2022 January 3, 2021 Balance Sheet Location Operating Leases Finance Leases Operating Leases Finance Leases (in thousands) Operating lease right-of-use assets $ 90,561 $ 98,013 Current portion of operating lease liabilities $ 14,588 $ 13,555 Operating lease liabilities 77,905 86,468 Total operating lease liabilities $ 92,493 $ 100,023 Property, plant and equipment, net $ 6,547 $ 6,138 Accrued expenses $ 1,837 $ 1,496 Other long-term liabilities 3,201 2,688 Total finance lease liabilities $ 5,038 $ 4,184 Lease Costs Fiscal Year 2021 2020 2019 (in thousands) Finance lease cost: Amortization of right-of-use assets $ 2,653 $ 1,251 $ 890 Interest on lease liabilities 140 86 51 Operating lease cost 21,581 25,213 24,246 Short-term lease cost 977 525 2,057 Variable lease cost 2,831 3,970 3,665 Total lease cost $ 28,182 $ 31,045 $ 30,909 Other Supplemental Information Fiscal Year 2021 2020 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 108 $ 86 $ 51 Operating cash flows from operating leases 22,210 22,206 22,597 Financing cash flows from finance leases 2,282 1,727 1,255 Right-of-use assets obtained in exchange for new finance lease liabilities 3,259 2,546 2,240 Right-of-use assets obtained in exchange for new operating lease liabilities 13,330 2,504 12,655 Lease Term and Discount Rate The table below presents the weighted average remaining lease terms and discount rates for finance and operating leases as of January 2, 2022 and January 3, 2021: End of Fiscal Year 2021 2020 Weighted-average remaining lease term – finance leases (in years) 3.20 3.35 Weighted-average remaining lease term – operating leases (in years) 9.97 10.61 Weighted-average discount rate – finance leases 2.82 % 2.64 % Weighted-average discount rate – operating leases 5.87 % 5.98 % Maturity Analysis A maturity analysis of lease payments under non-cancellable leases is presented as follows: Fiscal Year Operating Leases Finance Leases (in thousands) 2022 $ 17,883 $ 1,919 2023 13,734 1,541 2024 12,189 1,161 2025 10,455 466 2026 10,655 150 Thereafter 60,618 49 Total future minimum lease payments (undiscounted) 125,534 5,286 Less: Present value discount (33,041) (248) Total lease liability $ 92,493 $ 5,038 |
Leases | LEASES General The Company has operating and finance leases for manufacturing equipment, corporate offices, showrooms, distribution facilities, design centers, as well as computer and office equipment. The Company’s 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 accounting may include these options to extend or terminate a lease when it is reasonably certain that we will exercise that option. As of January 2, 2022, there were no significant leases that had not commenced as of the end of fiscal year 2021. The table below represents a summary of the balances recorded in the consolidated balance sheets related to our leases as of January 2, 2022 and January 3, 2021: January 2, 2022 January 3, 2021 Balance Sheet Location Operating Leases Finance Leases Operating Leases Finance Leases (in thousands) Operating lease right-of-use assets $ 90,561 $ 98,013 Current portion of operating lease liabilities $ 14,588 $ 13,555 Operating lease liabilities 77,905 86,468 Total operating lease liabilities $ 92,493 $ 100,023 Property, plant and equipment, net $ 6,547 $ 6,138 Accrued expenses $ 1,837 $ 1,496 Other long-term liabilities 3,201 2,688 Total finance lease liabilities $ 5,038 $ 4,184 Lease Costs Fiscal Year 2021 2020 2019 (in thousands) Finance lease cost: Amortization of right-of-use assets $ 2,653 $ 1,251 $ 890 Interest on lease liabilities 140 86 51 Operating lease cost 21,581 25,213 24,246 Short-term lease cost 977 525 2,057 Variable lease cost 2,831 3,970 3,665 Total lease cost $ 28,182 $ 31,045 $ 30,909 Other Supplemental Information Fiscal Year 2021 2020 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 108 $ 86 $ 51 Operating cash flows from operating leases 22,210 22,206 22,597 Financing cash flows from finance leases 2,282 1,727 1,255 Right-of-use assets obtained in exchange for new finance lease liabilities 3,259 2,546 2,240 Right-of-use assets obtained in exchange for new operating lease liabilities 13,330 2,504 12,655 Lease Term and Discount Rate The table below presents the weighted average remaining lease terms and discount rates for finance and operating leases as of January 2, 2022 and January 3, 2021: End of Fiscal Year 2021 2020 Weighted-average remaining lease term – finance leases (in years) 3.20 3.35 Weighted-average remaining lease term – operating leases (in years) 9.97 10.61 Weighted-average discount rate – finance leases 2.82 % 2.64 % Weighted-average discount rate – operating leases 5.87 % 5.98 % Maturity Analysis A maturity analysis of lease payments under non-cancellable leases is presented as follows: Fiscal Year Operating Leases Finance Leases (in thousands) 2022 $ 17,883 $ 1,919 2023 13,734 1,541 2024 12,189 1,161 2025 10,455 466 2026 10,655 150 Thereafter 60,618 49 Total future minimum lease payments (undiscounted) 125,534 5,286 Less: Present value discount (33,041) (248) Total lease liability $ 92,493 $ 5,038 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Jan. 02, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure | GOODWILL AND INTANGIBLE ASSETS In the first quarter of 2021, the Company determined that it has two operating and reportable segments – namely AMS and EAAA. See Note 20 entitled “Segment Information” for additional information. The Company tests goodwill for impairment at least annually at the reporting unit level. The Company’s reporting units remain unchanged following the realignment of its operating segments and consist of (1) the Americas, (2) Europe, Middle East and Africa (“EMEA”), and (3) Asia-Pacific. The Americas reporting unit is the same as the AMS reportable segment, and the EMEA and Asia-Pacific reporting units are one level below the EAAA reportable segment. During the first quarter of 2020, we performed a qualitative assessment of goodwill impairment indicators, considering macroeconomic conditions related to the COVID-19 pandemic and its potential impact to sales and operating income. We expected that the duration of the COVID-19 pandemic and its adverse impacts on the global economy, global travel restrictions, COVID-19 related government shutdowns, disruptions to our supply chain, distribution disruption, and disruption to our customers’ plans to spend capital on projects that use our products and services would result in lower revenue and operating income. As a result, we determined that there were indicators of impairment, and the Company proceeded with a quantitative assessment of goodwill for all reporting units at the end of the first quarter. In performing the quantitative goodwill impairment testing in the first quarter of 2020, 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. Our reporting units are one level below our operating segment level. In preparing the valuations, past, present and future expectations of performance were considered, including the impact of the COVID-19 pandemic. This methodology is consistent with the approach used to perform the annual quantitative goodwill assessment in prior years. The weighted average cost of capital used in the goodwill impairment testing ranged between 10.0% and 10.5%, which primarily fluctuated based on a country risk premium assigned to the geographical region of the reporting unit. There is inherent uncertainty associated with key assumptions used in our impairment testing including the duration of the economic downturn associated with the COVID-19 pandemic and the recovery period. As a result of the 2020 first quarter assessment, we determined that the fair value for two reporting units was less than the carrying value and recognized a goodwill impairment loss of $116.5 million in the first quarter of 2020. The expected decline in revenue due to the impact of COVID-19 contributed to the lower fair value of our EMEA and Asia-Pacific reporting units. As such, the goodwill impairment loss was allocated to our EMEA and Asia-Pacific reporting units in the amounts of $99.2 million and $17.3 million, respectively. We determined that the goodwill in our Americas reporting unit was not impaired as the fair value exceeded the carrying value by more than 90% at April 5, 2020. During the fourth quarters of 2021, 2020 and 2019, the Company performed the annual goodwill impairment test, consistent with the methodology discussed above. The Company performed this test at the reporting unit level, which is one level below the operating segment level. 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, including the ongoing impact of the COVID-19 pandemic in 2021 and 2020. 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 annual impairment testing. As of January 2, 2022, 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 full extent of the future impact of COVID-19 on the Company was and remains uncertain, and a prolonged COVID-19 pandemic could result in additional impairment of goodwill. As of January 2, 2022, and January 3, 2021, the net carrying amount of goodwill was $147.0 million and $165.8 million, respectively. The changes in the carrying amounts of goodwill attributable to each reportable segment for the years ended January 2, 2022 and January 3, 2021 are as follows: AMS EAAA Total (in thousands) Goodwill balance, at December 29, 2019 $ 116,202 $ 141,237 $ 257,439 Impairment — (116,495) (116,495) Foreign currency translation 6,142 18,691 24,833 Goodwill balance, at January 3, 2021 122,344 43,433 165,777 Foreign currency translation (13,839) (4,913) (18,752) Goodwill balance, at January 2, 2022 $ 108,505 $ 38,520 $ 147,025 |
Preferred Stock
Preferred Stock | 12 Months Ended |
Jan. 02, 2022 | |
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 January 2, 2022 and January 3, 2021, there were no shares of preferred stock issued. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Jan. 02, 2022 | |
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 $0.04 per share in 2021, $0.095 per share in 2020, and $0.26 per share in 2019, to each share of Common Stock, including participating securities. 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 and the indenture governing its 5.50% Senior Notes due 2028, which specify 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 the second quarter of 2017, the Company adopted a 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. During 2019, the Company repurchased and retired a combined total of 1,556,000 shares, 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 fiscal years 2021, 2020 and 2019: SHARES COMMON STOCK ADDITIONAL RETAINED PENSION FOREIGN CASH FLOW (in thousands) Balance, at January 3, 2021 58,664 $ 5,865 $ 247,920 $ 208,562 $ (69,288) $ (60,331) $ (6,190) Net income — — — 55,234 — — — Restricted stock issuances 429 43 6,066 — — — — Unamortized compensation expense related to restricted stock awards — — (6,109) — — — — Cash dividends declared — — — (2,362) — — — Compensation expense related to stock awards, net of forfeitures (38) (3) 5,233 — — — — Pension liability adjustment — — — — 15,400 — — Foreign currency translation adjustment — — — — — (40,110) — Reclassification out of accumulated other comprehensive loss - discontinued cash flow hedge — — — — — — 3,468 Balance, at January 2, 2022 59,055 $ 5,905 $ 253,110 $ 261,434 $ (53,888) $ (100,441) $ (2,722) SHARES COMMON STOCK ADDITIONAL RETAINED PENSION FOREIGN CASH FLOW (in thousands) Balance, at December 29, 2019 58,416 $ 5,842 $ 250,306 $ 286,056 $ (56,700) $ (113,139) $ (4,163) Net loss — — — (71,929) — — — Issuances of stock (other than restricted stock) 239 24 195 — — — — Restricted stock issuances 304 30 3,999 — — — — Unamortized compensation expense related to restricted stock awards — — (4,030) — — — — Cash dividends declared — — — (5,565) — — — Compensation expense related to stock awards, net of forfeitures (295) (31) (2,550) — — — — Pension liability adjustment — — — — (12,588) — — Foreign currency translation adjustment — — — — — 52,808 — Cash flow hedge unrealized loss — — — — — — (2,027) Balance, at January 3, 2021 58,664 $ 5,865 $ 247,920 $ 208,562 $ (69,288) $ (60,331) $ (6,190) SHARES COMMON STOCK ADDITIONAL RETAINED PENSION FOREIGN 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 — — — Issuances of stock (other than restricted stock) 511 51 636 — — — — Restricted stock issuances 223 22 3,900 — — — — Unamortized compensation expense related to restricted stock awards — — (4,139) — — — — Cash dividends declared — — — (15,358) — — — Compensation expense related to stock awards, net of forfeitures (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 loss — — — — — — (5,489) Balance, at December 29, 2019 58,416 $ 5,842 $ 250,306 $ 286,056 $ (56,700) $ (113,139) $ (4,163) Stock Options The Company has a stock incentive plan under which a committee of independent directors is authorized to grant directors and key employees, including officers, restricted stock, incentive stock options, nonqualified stock options, stock appreciation rights, deferred shares, performance shares and performance units. 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 three In May 2015, the shareholders approved an amendment and restatement of the then-existing Omnibus Stock Incentive Plan. This amendment and restatement extended the term of the Omnibus Plan 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 under the 2015 plan pursuant to an award other than a stock option reduced the number of such authorized shares by 1.33 shares. In May 2020, the shareholders approved the adoption of a new 2020 Omnibus Stock Incentive Plan (“2020 Omnibus Plan”). The aggregate number of shares of common stock that may be issued or transferred under the 2020 Omnibus Plan on or after the effective date of the plan is 3,700,000 (and the 1.33 multiplier discussed in the paragraph immediately above was eliminated). No award may be granted after the tenth anniversary of the effective date of the 2020 Omnibus Plan. 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. All outstanding stock options vested prior to the end of 2013, and therefore, there was no stock option compensation expense during 2021, 2020 or 2019. There were no stock options outstanding or exercisable as of January 2, 2022 or January 3, 2021. Restricted Stock Awards During fiscal years 2021, 2020 and 2019, the Company granted restricted stock awards totaling 428,400, 308,100, and 223,500 shares, respectively, of Common Stock. The weighted average grant date fair value of restricted stock awards granted during 2021, 2020 and 2019 was $14.26, $13.08, and $17.54, respectively. These awards (or a portion thereof) vest with respect to each recipient over a one three Compensation expense related to awards of restricted stock was $3.8 million, $1.3 million and $3.3 million for 2021, 2020 and 2019, 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 has reduced its expense for restricted stock forfeited during the period. The expense related to awards of restricted stock is captured in SG&A expenses on the consolidated statements of operations. The following table summarizes restricted stock outstanding as of January 2, 2022, as well as activity during the previous fiscal year: Restricted Shares Weighted Average Outstanding at January 3, 2021 436,900 $ 24.73 Granted 428,400 14.26 Vested (167,200) 13.68 Forfeited or canceled (14,300) 15.48 Outstanding at January 2, 2022 683,800 $ 21.06 As of January 2, 2022, the unrecognized total compensation cost related to unvested restricted stock was $5.1 million. That cost is expected to be recognized by the end of 2024. Performance Share Awards In each of the years 2021, 2020 and 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 The following table summarizes the performance shares outstanding as of January 2, 2022, as well as the activity during the year: Performance Shares Weighted Outstanding at January 3, 2021 405,300 $ 16.94 Granted 375,800 13.94 Vested — — Forfeited or canceled (63,000) 21.43 Outstanding at January 2, 2022 718,100 $ 14.98 Compensation expense (benefit) related to the performance shares for 2021, 2020 and 2019 was $1.7 million, $(1.8) million and $5.4 million, respectively. The Company has reduced its expense for performance shares forfeited during the period. Unrecognized compensation expense related to these performance shares was approximately $8.7 million as of January 2, 2022. Depending on the performance of the Company, any compensation expense related to these outstanding performance shares will be recognized by the end of 2024. The tax benefit recognized with respect to restricted stock and performance shares was $0.7 million, $0.6 million, and $1.4 million in 2021, 2020 and 2019, respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jan. 02, 2022 | |
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 table shows the computation of basic and diluted EPS: Fiscal Year 2021 2020 2019 (in thousands, except per share data) Numerator: Net income (loss) $ 55,234 $ (71,929) $ 79,200 Less: distributed and undistributed earnings available to participating securities (602) (42) (625) Distributed and undistributed earnings (loss) available to common shareholders $ 54,632 $ (71,971) $ 78,575 Denominator: Weighted average shares outstanding 58,328 58,110 58,475 Participating securities 643 437 468 Shares for basic EPS 58,971 58,547 58,943 Dilutive effect of stock options — — 5 Shares for diluted EPS 58,971 58,547 58,948 Basic EPS $ 0.94 $ (1.23) $ 1.34 Diluted EPS $ 0.94 $ (1.23) $ 1.34 |
Restructuring and Other Charges
Restructuring and Other Charges | 12 Months Ended |
Jan. 02, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | RESTRUCTURING AND OTHER CHARGES Restructuring, asset impairment and other charges by reportable segment are presented as follows: Fiscal Year 2021 2020 2019 (in thousands) AMS $ (1) $ (288) $ 2,590 EAAA 3,622 (4,338) 10,357 Total restructuring, asset impairment and other charges $ 3,621 $ (4,626) $ 12,947 A summary of restructuring activities for the 2021, 2019 and 2018 restructuring plans is presented below: Workforce Reduction Other Exit Costs Asset Impairment 2021 Plan 2019 Plan 2018 Plan 2019 Plan 2018 Plan 2021 Plan Total (in thousands) Balance, at December 30, 2018 $ — $ — $ 10,763 $ — $ 1,144 $ — $ 11,907 Charged to expenses — 8,827 (1,743) 188 672 — 7,944 Deductions — (193) (7,122) — (1,042) — (8,357) Charged to other accounts — — — (49) — — (49) Balance, at December 29, 2019 — 8,634 1,898 139 774 — 11,445 Charged to expenses — (3,704) (223) — (699) — (4,626) Deductions — (3,866) (1,675) (139) (75) — (5,755) Balance, at January 3, 2021 — 1,064 — — — — 1,064 Charged to expenses 2,257 (286) — — — 1,650 3,621 Deductions — (681) — — — — (681) Charged to other accounts — — — — — (1,650) (1,650) Balance, at January 2, 2022 $ 2,257 $ 97 $ — $ — $ — $ — $ 2,354 For 2021, the Company recorded restructuring and asset impairment charges of $3.6 million as a result of the 2021 restructuring plan described below, net of a reduction of $0.3 million of previously recognized restructuring charges under the 2019 plan due to changes in expected cash payments. For 2020, the Company recorded a reduction of $4.6 million of previously recognized restructuring charges due to changes in expected cash payments. For 2019, the Company recorded restructuring, asset impairment and other charges of $12.9 million in the consolidated statements of operations. The 2019 charges include other non-cash charges not included in the above table as further described below. As of January 2, 2022, the total restructuring reserve was $2.4 million for the 2021 and 2019 restructuring plans. The 2018 restructuring plan was completed as of January 3, 2021. Other Non-Cash Charges On December 23, 2019, unrelated to the restructuring activity presented in the table above, the Company recorded other non-cash charges of approximately $5.0 million (comprised of $2.8 million attributable to the AMS reportable segment and $2.2 million attributable to the EAAA reportable segment) primarily related to adjusting the carrying value of certain insurance related assets. These charges are recorded in restructuring, asset impairment and other charges in the 2019 consolidated statement of operations. 2021 Restructuring Plan On September 8, 2021, the Company committed to a new restructuring plan that continues to focus on efforts to improve efficiencies and decrease costs across its worldwide operations. The plan involves a reduction of approximately 188 employees and the closure of the Company’s manufacturing facility in Thailand, anticipated to occur at the end of the first quarter of 2022. As a result of this plan, the Company expects to incur pre-tax restructuring charges between the third quarter of 2021 and the fourth quarter of 2022 of approximately $4 million to $5 million. The expected charges are comprised of severance expenses ($2.2 million), retention bonuses ($0.5 million), and asset impairment and other charges ($2.0 million). The retention bonus costs of approximately $0.5 million will be recognized through the end of 2022 as earned over the requisite service periods. Restructuring charges of $3.9 million comprised of severance and asset impairment charges were recognized during 2021 within the EAAA reportable segment. The restructuring plan is expected to result in cash expenditures of approximately $3 million to $4 million for payment of the employee severance, employee retention bonuses and other costs of the shutdown of the Thailand manufacturing facility, as described above. The Company expects to complete the restructuring plan in 2022 and expects the plan to yield annualized savings of approximately $1.7 million. A portion of the annualized savings is expected to be realized on the consolidated statement of operations in 2022, with the remaining portion of the annualized savings expected to be realized in 2023. 2019 Restructuring Plan On December 23, 2019, the Company committed to a 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 (comprised of $1.1 million attributable to the AMS reportable segment and $7.9 million attributable to the EAAA reportable segment). The charge was comprised of severance expenses ($8.8 million) and lease exit costs ($0.2 million). The plan was expected to result in future cash expenditures of approximately $9.0 million for the payment of employee severance and lease exit costs. In 2021 and 2020, the Company recorded reductions of $0.3 million and $3.7 million, respectively, of the previously recognized charges due to changes in expected cash payments for employee severance. As of January 2, 2022, cumulative charges under the 2019 restructuring plan, net of reductions of previously recognized charges, were $0.8 million within the AMS reportable segment and $4.2 million within the EAAA reportable segment. The plan was substantially completed at the end of 2020, and the Company expected the plan to yield annualized savings of approximately $6.0 million. A portion of the annualized savings was realized on the consolidated statement of operations in 2020, with the remaining portion of the annualized savings realized in 2021. 2018 Restructuring Plan On December 29, 2018, the Company committed to a 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 included 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 (comprised of $7.7 million attributable to the AMS reportable segment and $12.8 million attributable to the EAAA reportable segment). 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 year 2019. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 02, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Income (loss) before income taxes consisted of the following: Fiscal Year 2021 2020 2019 (in thousands) U.S. operations $ 4,460 $ (7,104) $ 46,463 Foreign operations 68,173 (72,316) 55,353 Income (loss) before income taxes $ 72,633 $ (79,420) $ 101,816 Provisions for federal, foreign and state income taxes in the consolidated statements of operations consisted of the following components: Fiscal Year 2021 2020 2019 (in thousands) Current expense (benefit): Federal $ 1,987 $ (22,976) $ 8,414 Foreign 21,372 14,822 14,513 State 1,418 529 2,312 Current expense (benefit) 24,777 (7,625) 25,239 Deferred expense (benefit): Federal (2,841) 1,787 (625) Foreign (3,846) (2,422) (2,198) State (691) 769 200 Deferred expense (benefit) (7,378) 134 (2,623) Total income tax expense (benefit) $ 17,399 $ (7,491) $ 22,616 The Company’s effective tax rate was 24.0%, 9.4% and 22.2% for fiscal years 2021, 2020 and 2019, respectively. The following summary reconciles income taxes at the U.S. federal statutory rate of 21% applicable for all periods presented to the Company’s actual income tax expense: Fiscal Year 2021 2020 2019 (in thousands) Income taxes at U.S. federal statutory rate $ 15,253 $ (16,678) $ 21,381 Increase (decrease) in taxes resulting from: State income taxes, net of federal tax effect (87) (2,033) 2,321 Non-deductible business expenses 330 1,792 933 Non-deductible employee compensation 1,213 (210) 1,453 Tax effects of Company-owned life insurance (762) (898) (636) Tax effects of undistributed earnings from foreign subsidiaries not deemed to be indefinitely reinvested 1,219 748 (183) Foreign and U.S. tax effects attributable to foreign operations 1,748 (11,991) 783 Valuation allowance effect 1,349 12,927 133 Research and development tax credits (793) (780) (700) Goodwill impairment — 24,464 — Unrecognized tax benefits (2,663) (14,962) (3,324) Other 592 130 455 Income tax expense (benefit) $ 17,399 $ (7,491) $ 22,616 On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) was signed into law in response to the COVID-19 pandemic and provides certain tax relief to businesses. Tax provisions of the CARES Act include, among other things, the deferral of certain payroll taxes, relief for retaining employees, and certain income tax provisions for corporations. For the tax year ended January 3, 2021, the Company deferred $4.1 million in payroll taxes under the CARES Act which was paid as of January 2, 2022. In addition, for the year ended January 3, 2021, the Company benefited from the relaxed 163(j) limitation and the technical correction related to depreciation of leasehold improvements, both of which did not have a material impact on the Company’s effective tax rate for that year. Some of the provisions of the CARES Act, including the deferral of certain payroll taxes and the relaxed 163(j) limitation, are not applicable for tax years after 2020, and as a result the Company did not benefit from these provisions for the tax year ended January 2, 2022. In addition, the Company did not materially benefit from the provisions of the CARES Act that remained in effect during the tax year ended January 2, 2022. Deferred income taxes for the years ended January 2, 2022 and January 3, 2021, 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: End of Fiscal Year 2021 2020 (in thousands) Deferred tax assets Lease liability $ 25,426 $ 28,094 Net operating loss and interest carryforwards 5,962 4,031 Federal tax credit carryforwards 10,054 10,412 Derivative instruments 1,126 2,680 Deferred compensation 19,487 20,244 Inventory 3,100 4,004 Prepaids, accruals and reserves 8,777 3,659 Capitalized costs 4,805 — Pensions 6,431 11,485 Other 175 50 Deferred tax asset, gross 85,343 84,659 Valuation allowance (15,338) (13,919) Deferred tax asset, net $ 70,005 $ 70,740 Deferred tax liabilities Property and equipment $ 25,352 $ 27,322 Intangible assets 30,736 30,745 Lease asset 24,856 27,268 Foreign currency 458 606 Foreign withholding and U.S. state taxes on unremitted earnings 1,332 931 Deferred tax liabilities 82,734 86,872 Net deferred tax liabilities $ 12,729 $ 16,132 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 January 2, 2022. Beginning in 2018, the Company has elected to account for tax effects of the global intangible low-taxed income (“GILTI”), Foreign Derived Intangible Income (“FDII”), Internal Revenue Code Section 163(j) interest limitation (“Interest Limitation”) and base-erosion and anti-abuse tax (“BEAT”) provisions included in the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) in the period when incurred, and therefore has not provided any deferred tax impacts for these provisions in its consolidated financial statements. As of January 2, 2022, the Company has approximately $10.1 million of foreign tax credit carryforwards with expiration dates through 2029. A full valuation allowance has been provided as the Company does not expect to utilize these foreign tax credits before the expiration dates. As of January 2, 2022, the Company has approximately $153.0 million in state net operating loss carryforwards relating to continuing operations with expiration dates through 2041 and has provided a valuation allowance against $90.1 million of such losses, which the Company does not expect to utilize. In addition, as of January 2, 2022, the Company has approximately $25.7 million in state net operating loss carryforwards relating to discontinued operations against which a full valuation allowance has been provided. As of January 2, 2022, and January 3, 2021, non-current deferred tax assets were reduced by approximately $2.8 million and $3.0 million, respectively, of unrecognized tax benefits. Historically, the Company has not provided for U.S. income taxes and foreign withholding taxes on the undistributed accumulated earnings of its foreign subsidiaries, with the exception of its Canada subsidiaries and a specific portion of the undistributed earnings of foreign subsidiaries outside of Canada, because such earnings were deemed to be permanently reinvested. In September of 2021, as part of an overall restructuring plan, the Company made the decision to close its manufacturing facility in Thailand. As a result, the Company is no longer asserting that the undistributed earnings in its Thailand subsidiaries are permanently reinvested. The Company provided for U.S. income taxes and foreign withholding taxes on these earnings at January 2, 2022. Although the Tax Act created a dividends received deduction that 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 undistributed earnings for which U.S. income taxes and foreign withholding taxes have been provided, 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 2018 to the present. 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 2016 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 2010 to the present. As a result of an audit of the Company’s U.K. subsidiaries, Her Majesty’s Revenue & Customs (“HMRC”) issued notices of amendment to the Company’s U.K. tax returns for the years 2012 through 2017. Final assessments including the adjustments have not been issued. The adjustments result from the interest rate applied in the intra-group financing arrangement between a Company subsidiary in the U.K. and the Netherlands. In April of 2021, the Company filed requests with both the Competent Authority in the Netherlands and in the U.K. to initiate a mutual agreement procedure (“MAP”) related to the double taxation arising from the HMRC adjustments. Management believes it is more likely than not that the Company will obtain relief from double taxation through the MAP, and as such, does not anticipate these adjustments will result in a material change to its financial position. The Company will continue to evaluate the progress of the MAP and will recognize all related adjustments when the recognition thresholds have been met. As of January 2, 2022, and January 3, 2021, the Company had $8.2 million and $10.8 million, respectively, of unrecognized tax benefits. For the years ended January 2, 2022 and January 3, 2021, the Company recognized as income tax benefits $2.7 million and $15.0 million, respectively, of previously unrecognized tax benefits. Of the $15.0 million income tax benefits recognized for the year ended January 3, 2021, $12.7 million related to a worthless stock loss claimed on the Company’s exit of its broadloom business (discontinued operations). It is reasonably possible that approximately $2.5 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 $8.2 million of unrecognized tax benefits as of January 2, 2022 are recognized, there would be a favorable impact on the Company’s effective tax rate of approximately $7.5 million in future periods. If the unrecognized tax benefits are not favorably settled, $5.4 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 January 2, 2022, the Company had accrued interest and penalties of $0.9 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 2021 2020 2019 (in thousands) Balance at beginning of year $ 10,799 $ 25,486 $ 28,143 Increases related to tax positions taken during the current year 265 271 318 Increases related to tax positions taken during the prior years 198 536 1,093 Decreases related to tax positions taken during the prior years — (673) (2,809) Decreases related to lapse of applicable statute of limitations (2,309) (14,992) (1,266) Changes due to settlements (836) — — Changes due to foreign currency translation 103 171 7 Balance at end of year $ 8,220 $ 10,799 $ 25,486 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 02, 2022 | |
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. 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. 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 asserted 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 in excess of $10 million in damages for the breach of contract claim and $100 million for each of the other claims, as well as attorneys’ fees. The Court granted judgment on the pleadings in favor of the Company on Mr. Gould’s putative claim of negligent investigation, and Mr. Gould’s defamation claims were dismissed with prejudice by stipulation of the parties. The Company filed a motion for summary judgment on Mr. Gould’s remaining claims. On February 9, 2022, the U.S. Magistrate Judge overseeing the motion for summary judgment issued a Final Report and Recommendation that the Company’s motion for summary judgment be granted on all remaining claims, and each party has since filed objections to certain aspects of the report and recommendation. The motion for summary judgement remains pending with the Court. The Company believes the lawsuit is without merit and intends to defend vigorously against it. Putative Class Action Lawsuit As previously reported, the Securities & Exchange Commission (the “SEC”) conducted an investigation into the Company’s historical quarterly earnings per share calculations and rounding practices during the period 2014-2017. In the third quarter of 2020, the Company successfully reached a settlement with the SEC in this matter. The Company consented to the entry of an order by the SEC which states, among other things, that the Company was negligent in making certain accounting entries in 2015 and 2016. As part of the settlement, the Company did not admit or deny any wrongdoing. The Company paid a $5.0 million fine to resolve the matter, and was ordered to cease-and-desist from violating certain federal securities laws. On November 12, 2020, the Company, the Company’s current and former president and chief executive officer, and its current chief financial officer were named as defendants in a lawsuit filed in the United States District Court for the Eastern District of New York, Swanson v. Interface, Inc. et al. (case :120-cv-05518). The lawsuit is a federal securities law class action that alleges that the defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. The specific allegations relate to the subject matter of the concluded SEC investigation described above. The complaint does not quantify the damages sought. In the putative class action lawsuit, the Court has appointed a lead plaintiff, which filed an Amended Complaint that, among other things, added the Company’s former chief financial officer as a defendant. As in the original complaint, the allegations in the Amended Complaint relate to the subject matter of the concluded SEC investigation described above. The Company has filed a motion to dismiss the Amended Complaint in its entirety, and that motion is pending with the Court. The Company believes the putative class action is without merit and that the Company has good defenses to it. The Company intends to defend itself vigorously against the action. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jan. 02, 2022 | |
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 $3.0 million, $1.6 million, and $3.3 million for the years 2021, 2020 and 2019, respectively. No discretionary contributions were made in 2021, 2020 or 2019. 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. The deferred compensation liability in connection with the NSPs totaled $34.2 million and $33.1 million at January 2, 2022 and January 3, 2021, respectively. The Company invests the deferrals in insurance instruments with readily determinable cash surrender values and in exchange traded mutual funds beginning in fiscal 2021. The value of the insurance instruments was $20.0 million and $33.9 million as of January 2, 2022 and January 3, 2021, respectively. The fair value of the mutual fund investments at January 2, 2022 was $15.6 million. In 2020, the Company temporarily suspended its 401(k) and NSP matching contributions described above. These employer matching contributions were resumed in 2021. Multiemployer Plan As discussed below, on December 31, 2019, a plan amendment was executed to eliminate future service accruals in our defined benefit pension plan in the Netherlands (the “Dutch Plan”), which resulted in a curtailment of the plan. The Dutch Plan remains in existence and continues to pay vested benefits. Active participants no longer accrue benefits after December 31, 2019, and instead participate in the Industry-Wide Pension Fund (the “IWPF”) multi-employer plan beginning in fiscal year 2020. During 2021 and 2020, the Company recorded multi-employer pension expense related to multi-employer contributions of $2.6 million and $2.5 million, respectively. The Company’s contributions into the IWPF are less than 5% of total plan contributions. The IWPF is more than 95% funded at the end of 2020, which is the latest date plan information is available. The IWPF multi-employer plan is not considered to be significant based on the funded status of the plan and our contributions. 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 in 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. As described above, on December 31, 2019, a plan amendment was executed to eliminate future service accruals in the Dutch defined benefit plan. The Dutch Plan remains in existence and continues to pay vested benefits. The reduction in future benefit accruals resulted in a curtailment of the Dutch Plan. Participants in the Dutch Plan no longer accrue benefits under the plan after December 31, 2019 and participate in the IWPF 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 is 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 loss of approximately $2.4 million in fiscal year 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 loss 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 loss, which was recognized as a reduction of pension expense in fiscal year 2019. As discussed above, the Company still has an obligation to pay vested benefits in the frozen Dutch Plan. As of January 2, 2022, the under-funded status of the Dutch Plan of $4.5 million is recorded on the consolidated balance sheet in other long-term liabilities. Pension expense for our three European defined benefit plans was $2.5 million, $2.5 million, and $2.3 million for the years 2021, 2020 and 2019, respectively. Plan assets are primarily invested in insurance contracts and equity and fixed income securities. As of January 2, 2022, for the European plans, the Company had a net liability recorded of $38.8 million, an amount equal to their underfunded status, and had recorded in accumulated other comprehensive loss an amount equal to $45.2 million (net of taxes of approximately $15.4 million) related to the future amounts to be recorded in net periodic benefit costs. In the next fiscal year, approximately $1.4 million will be reclassified from accumulated other comprehensive loss into net periodic benefit cost. 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 2021 2020 (in thousands) Change in benefit obligation: Benefit obligation, beginning of year $ 364,443 $ 314,841 Service cost 1,087 1,070 Interest cost 2,687 4,038 Benefits and expenses paid (11,339) (12,041) Actuarial loss (gain) (19,723) 31,618 Currency translation adjustment (12,747) 24,917 Benefit obligation, end of year $ 324,408 $ 364,443 Change in plan assets: Plan assets, beginning of year $ 303,531 $ 266,450 Actual return on assets (2,817) 25,239 Company contributions 5,393 4,451 Benefits paid (11,339) (12,041) Currency translation adjustment (9,168) 19,432 Plan assets, end of year $ 285,600 $ 303,531 Funded status $ (38,808) $ (60,912) Amounts recognized in consolidated balance sheets: Other assets $ 10,975 $ — Current liabilities (1,049) (1,089) Other long-term liabilities, net of current portion (48,734) (59,823) Under funded status at end of fiscal year $ (38,808) $ (60,912) Amounts recognized in accumulated other comprehensive loss, after tax: Unrecognized actuarial loss $ 45,209 $ 58,257 Unamortized prior service credits — — Total amount recognized $ 45,209 $ 58,257 Accumulated benefit obligation $ 324,408 $ 364,443 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 January 2, 2022, 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 accumulated benefit obligation of the Dutch Plan exceeded plan assets as of January 2, 2022. The nora Plan is an unfunded defined benefit plan and the accumulated benefit obligation exceeded plan assets as of January 2, 2022. The following table summarizes this information as of January 2, 2022 and January 3, 2021. End of Fiscal Year 2021 2020 (in thousands) UK Plan Projected benefit obligation $ 181,997 $ 198,215 Accumulated benefit obligation 181,997 198,215 Plan assets 192,971 193,991 Dutch Plan Projected benefit obligation $ 97,108 $ 116,379 Accumulated benefit obligation 97,108 116,379 Plan assets 92,629 109,540 nora Plan Projected benefit obligation $ 45,303 $ 49,849 Accumulated benefit obligation 45,303 49,849 Plan assets — — Fiscal Year 2021 2020 2019 (in thousands) Components of net periodic benefit cost: Service cost $ 1,087 $ 1,070 $ 1,589 Interest cost 2,687 4,038 5,676 Expected return on plan assets (3,312) (4,256) (5,561) Amortization of prior service cost 114 106 63 Amortization of net actuarial (gains) losses 1,968 1,549 991 Curtailment gain — — (453) Net periodic benefit cost $ 2,544 $ 2,507 $ 2,305 In accordance with applicable accounting standards, the service cost component of net periodic benefit costs is presented within operating income in the consolidated statements of operations, while all other components of net periodic benefit costs are presented within other expense in the consolidated statements of operations. During 2021, other comprehensive loss was impacted by a net gain of approximately $11.8 million (net of $3.9 million of tax), comprised of actuarial gain of approximately $10.3 million (net of $3.4 million of tax) and amortization of loss of $1.5 million (net of $0.5 million of tax). Fiscal Year 2021 2020 2019 Weighted average assumptions used to determine net periodic benefit cost: Discount rate 0.9 % 1.0 % 1.9 % Expected return on plan assets 1.5 % 1.2 % 2.1 % Rate of compensation — % — % 1.75 % Weighted average assumptions used to determine benefit obligations: Discount rate 1.6 % 1.0 % 1.7 % Rate of compensation — % — % 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 to ensure that the assets are sufficient to exceed minimum funding requirements, and to achieve a favorable return against performance expectations based on historical 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 January 2, 2022 or January 3, 2021. 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 Dutch 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 Dutch 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 Dutch Plan curtailment on December 31, 2019, as discussed above, any shortfall in plan assets to pay vested benefits will be funded by the Company. The assets under the Dutch Plan, including any indexation benefit, are identified as level 3 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 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 2021 and 2020 and this represents the plan assets as shown above for the Dutch Plan. Because the Company will fund the cost to guarantee vested benefits, the Company has recorded a provision, which reduces the Dutch Plan assets, that consists of the net present value of the expected future guarantee payments due to the insurance company pursuant to the Company’s guarantee. 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 2021 based on recent returns. The indexation benefit for 2021 and 2020 is not significant. The Company’s actual weighted average asset allocations for 2021 and 2020, and the targeted asset allocation for 2022, of the foreign defined benefit plans by asset category, are as follows: Fiscal Year 2022 2021 2020 Asset Category Target Allocation Percentage of Plan Assets at Year End Equity securities —% — 3% —% 3% Debt and debt securities 50% — 60% 63% 60% Short-term investments 1% — 2% 4% —% Other investments 35% — 40% 33% 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 January 2, 2022 and January 3, 2021. 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 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 January 2, 2022 Dutch Plan UK Plan Total (in thousands) Level 1 $ — $ 57,338 $ 57,338 Level 2 — 107,136 107,136 Level 3 92,629 28,497 121,126 Total $ 92,629 $ 192,971 $ 285,600 Pension Plan Assets by Category as of January 3, 2021 Dutch Plan UK Plan Total (in thousands) Level 1 $ — $ 70,904 $ 70,904 Level 2 — 95,004 95,004 Level 3 109,540 28,083 137,623 Total $ 109,540 $ 193,991 $ 303,531 The tables below detail the foreign defined benefit plans’ assets by asset allocation and fair value hierarchy: End of Fiscal Year 2021 Asset Category Level 1 Level 2 Level 3 (in thousands) Equity securities $ — $ — $ — Debt and debt securities 45,516 107,136 27,176 Short-term investments (1) 11,822 — — Other investments (2) — — 93,950 $ 57,338 $ 107,136 $ 121,126 End of Fiscal Year 2020 Asset Category Level 1 Level 2 Level 3 (in thousands) Equity securities $ 9,113 $ — $ — Debt and debt securities 60,699 95,004 25,927 Short-term investments (1) 1,092 — — Other investments (2) — — 111,696 $ 70,904 $ 95,004 $ 137,623 (1) Short-term investments are generally invested in interest-bearing accounts. (2) Other investments are comprised of insurance contracts. Assets identified as level 2 above pertain to corporate bonds and other debt securities. The fair values of these assets are calculated based on quoted market prices for similar assets. With the exception of the Dutch Plan assets as discussed above, the assets identified as level 3 above in 2021 and 2020 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 range of discount rates used in the fair value calculation of level 3 assets held by the Dutch Plan and the UK Plan were 1.00% to 1.85% for 2021 and 0.50% to 1.30% for 2020. The weighted average discount rates were 1.01% and 0.52% for 2021 and 2020, respectively. These amounts are weighted based on the fair value of level 3 plan assets subject to fluctuations in the discount rate. Any changes in these variables will impact the fair value of level 3 assets. The table below indicates the change in value related to these level 3 assets during 2021 and 2020: Fiscal Year 2021 2020 (in thousands) Balance of level 3 assets, beginning of year $ 137,623 $ 115,252 Actual return on plan assets (1) (10,189) 6,767 Purchases, sales and settlements, net 440 437 Assets transferred into level 3 732 3,934 Translation adjustment (7,480) 11,233 Balance of level 3 assets, end of year $ 121,126 $ 137,623 (1) Includes $(6.6) million and $10.1 million for 2021 and 2020, respectively, of unrealized (losses) and gains recognized during the period in other comprehensive income (loss) for assets held at year end. During 2022, the Company expects to contribute $4.1 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) 2022 $ 10,880 2023 11,090 2024 11,321 2025 11,485 2026 11,632 2027-2031 60,632 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 2021 and 2020 as there are no longer any participants accruing benefits in the plan. Fiscal Year 2021 2020 (in thousands) Change in benefit obligation: Benefit obligation, beginning of year $ 33,834 $ 31,740 Interest cost 706 938 Benefits paid (1,965) (2,030) Actuarial loss (gain) (2,522) 3,186 Benefit obligation, end of year $ 30,053 $ 33,834 The amounts recognized in the consolidated balance sheets are as follows: End of Fiscal Year 2021 2020 (in thousands) Current liabilities $ 1,873 $ 2,030 Non-current liabilities 28,180 31,804 Total benefit obligation $ 30,053 $ 33,834 The components of the amounts in accumulated other comprehensive loss, after tax, are as follows: Fiscal Year 2021 2020 (in thousands) Unrecognized actuarial loss $ 8,679 $ 11,031 The accumulated benefit obligation related to the SCP was $30.1 million and $33.8 million as of January 2, 2022 and January 3, 2021, 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. Fiscal Year 2021 2020 2019 (in thousands, except for assumptions) Assumptions used to determine net periodic benefit cost: Discount rate 2.15 % 3.05 % 4.10 % Assumptions used to determine benefit obligations: Discount rate 2.65 % 2.15 % 3.05 % Components of net periodic benefit cost: Interest cost $ 706 $ 938 $ 1,154 Amortizations 743 558 375 Net periodic benefit cost $ 1,449 $ 1,496 $ 1,529 The changes in other comprehensive loss during 2021 related to the SCP as a result of plan activity was a net gain of approximately $2.3 million (net of $1.0 million of tax), primarily comprised of a net gain during the period of $1.8 million (net of $0.8 million of tax) and amortization of loss of $0.5 million (net of $0.2 million of tax). During 2021, 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) 2022 $ 1,873 2023 1,873 2024 1,873 2025 1,873 2026 1,873 2027-2031 8,886 |
Segment Information
Segment Information | 12 Months Ended |
Jan. 02, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION The Company determines that an operating segment exists if a component (i) engages in business activities from which it earns revenues and incurs expenses, (ii) has operating results that are regularly reviewed by the chief operating decision maker (“CODM”) and (iii) has discrete financial information. Additionally, accounting standards require the utilization of a “management approach” to report the financial results of operating segments, which is based on information used by the CODM to assess performance and make operating and resource allocation decisions. In the first quarter of 2021, the Company largely completed its integration of the nora acquisition, and integration of its European and Asia-Pacific commercial areas, and determined that it has two operating segments organized by geographical area – namely (a) Americas (“AMS”) and (b) Europe, Africa, Asia and Australia (collectively “EAAA”). The AMS operating segment is unchanged from prior year and continues to include the United States, Canada and Latin America geographic areas. Pursuant to the management approach discussed above, the Company’s CODM, our chief executive officer, evaluates performance at the AMS and EAAA operating segment levels and makes operating and resource allocation decisions based on segment adjusted operating income or loss (“AOI”), which includes allocations of corporate selling, general and administrative expenses. AOI excludes nora purchase accounting amortization, goodwill and intangible asset impairment charges, changes in equity award forfeiture accounting, restructuring charges, asset impairment, severance and other charges, and an SEC settlement fine. Intersegment revenues for 2021, 2020 and 2019 were $78.1 million, $71.5 million and $71.3 million, respectively. Intersegment revenues are eliminated from net sales presented below since these amounts are not included in the information provided to the CODM. The Company has determined that it has two reportable segments – AMS and EAAA as each operating segment meets the quantitative thresholds defined in the accounting guidance. Segment information below for fiscal years 2020 and 2019 have been restated to reflect our new reportable segment structure. Fiscal Year 2021 2020 2019 (in thousands) Net Sales AMS $ 651,216 $ 593,418 $ 757,112 EAAA 549,182 509,844 585,917 Total net sales $ 1,200,398 $ 1,103,262 $ 1,343,029 Segment AOI AMS $ 85,014 $ 89,097 $ 120,921 EAAA 37,268 21,403 28,832 Depreciation and Amortization AMS $ 17,963 $ 17,164 $ 15,884 EAAA 28,382 28,756 29,048 Total depreciation and amortization $ 46,345 $ 45,920 $ 44,932 A reconciliation of the Company’s total operating segment assets to the corresponding consolidated amounts follows: End of Fiscal Year 2021 2020 (in thousands) Assets AMS $ 652,423 $ 800,068 EAAA 691,844 682,295 Total segment assets 1,344,267 1,482,363 Corporate assets 146,204 111,073 Eliminations (160,414) (287,425) Total reported assets $ 1,330,057 $ 1,306,011 Total assets in the table above include operating lease right-of-use assets for fiscal years 2021 and 2020. Below is a summary of the operating lease right-of-use assets by reportable segment and a reconciliation to the consolidated amounts: End of Fiscal Year Operating Lease Right-of-Use Assets 2021 2020 (in thousands) AMS $ 12,662 $ 11,945 EAAA 67,741 74,265 Total segment operating lease right-of-use assets 80,403 86,210 Corporate operating lease right-of-use assets 10,158 11,803 Total operating lease right-of-use assets $ 90,561 $ 98,013 Reconciliations of operating income (loss) to income (loss) before income tax expense and segment AOI are presented as follows: Fiscal Year 2021 2020 2019 (in thousands) AMS operating income $ 81,445 $ 73,234 $ 118,332 EAAA operating income (loss) 23,352 (112,521) 12,571 Consolidated operating income (loss) 104,797 (39,287) 130,903 Interest expense 29,681 29,244 25,656 Other expense 2,483 10,889 3,431 Income (loss) before income tax expense $ 72,633 $ (79,420) $ 101,816 Fiscal Year 2021 2020 2019 AMS EAAA AMS EAAA AMS EAAA (in thousands) Operating income (loss) $ 81,445 $ 23,352 $ 73,234 $ (112,521) $ 118,332 $ 12,571 Purchase accounting amortization — 5,636 — 5,457 — 5,903 Goodwill and intangible asset impairment — — 2,695 118,563 — — Impact of change in equity award forfeiture accounting — — 757 650 — — Restructuring, asset impairment, severance and other charges 3,569 8,280 9,722 6,943 2,589 10,358 SEC fine — — 2,689 2,311 — — AOI $ 85,014 $ 37,268 $ 89,097 $ 21,403 $ 120,921 $ 28,832 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 2021, 2020 and 2019 were approximately 50%, 51% and 49%, respectively, of total net sales. These sales were primarily to customers in Europe, Canada, Asia, Australia and Latin America. Other than the United States in 2021, 2020 and 2019, and Germany in 2020, no one country represented more than 10% of the Company’s net sales during the past three years. Revenue and long-lived assets related to operations in the United States and other countries are as follows: Fiscal Year Sales to Unaffiliated Customers (1) 2021 2020 2019 (in thousands) United States $ 596,844 $ 545,183 $ 681,868 Germany 115,712 115,402 117,418 Other foreign countries 487,842 442,677 543,743 Total net sales $ 1,200,398 $ 1,103,262 $ 1,343,029 End of Fiscal Year Long-Lived Assets (2) 2021 2020 (in thousands) United States $ 157,194 $ 163,983 Germany 71,114 79,294 Netherlands 47,476 51,190 Other foreign countries 54,017 64,569 Total long-lived assets $ 329,801 $ 359,036 (1) Revenue attributed to geographic areas is based on the location of the customer. (2) Long-lived assets attributed to geographic areas are based on the physical location of the asset. 2021 includes $1.6 million and $4.9 million of leased equipment, net of accumulated amortization, in the United States and foreign countries, respectively. 2020 includes $1.8 million and $4.3 million of leased equipment, net of accumulated amortization, in the United States and foreign countries, respectively. |
Items Reclassified from Accumul
Items Reclassified from Accumulated Other Comprehensive Loss | 12 Months Ended |
Jan. 02, 2022 | |
Equity [Abstract] | |
Items Reclassified from Accumulated Other Comprehensive Loss | ITEMS RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE LOSS Amounts reclassified out of accumulated other comprehensive loss (“AOCI”), before tax, to the consolidated statements of operations for the fiscal years 2021, 2020 and 2019, are reflected in the tables below: Fiscal Year Statement of Operations Location 2021 2020 2019 (in thousands) Foreign currency contracts loss Cost of sales $ — $ — $ (450) Interest rate swap contracts gain (loss) (1) Interest expense (4,861) (7,287) 151 Amortization of benefit plan net actuarial losses and prior service cost (2) Other expense (2,825) (2,213) (976) Total loss reclassified from AOCI $ (7,686) $ (9,500) $ (1,275) (1) Other comprehensive income (loss) includes tax of $1.4 million, $(2.5) million and $(1.6) million for 2021, 2020 and 2019, respectively, related to cash flow hedges. (2) See Note 19 entitled “Employee Benefit Plans” for the tax effects in other comprehensive income (loss) related to the Company’s defined benefit plans. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Jan. 02, 2022 | |
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 COLUMN B COLUMN C COLUMN D COLUMN E (in thousands) Allowance for Expected Credit Losses Year ended: January 2, 2022 $ 6,643 $ (705) $ — $ 978 $ 4,960 January 3, 2021 3,793 3,777 — 927 6,643 December 29, 2019 3,540 881 — 628 3,793 (A) Includes changes in foreign currency exchange rates. (B) Write off of bad debt, and recovery of previously provided for amounts. COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E (in thousands) Warranty and Sales Allowances Reserves Year ended: January 2, 2022 $ 3,248 $ 366 $ — $ 912 $ 2,702 January 3, 2021 3,853 1,062 — 1,667 3,248 December 29, 2019 3,495 1,519 — 1,161 3,853 (A) Includes changes in foreign currency exchange rates. (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 |
Jan. 02, 2022 | |
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, plant and equipment. Actual results could vary from these estimates. |
Revenue Recognition | Revenue Recognition Revenue from contracts with customers is recognized 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. 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 2021, 2020 and 2019, approximately 98% of the Company’s total revenue 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 2021, 2020 and 2019 of 2% 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 based on a project cost input method 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 five 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 within revenues. The Company records such taxes collected as a liability on our consolidated balance sheets. 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 accounts 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. The nature of the installation projects is such that the vast majority – an amount in excess of 85% of these installation projects – are completed in less than five days. The Company’s largest installation customers are retail, education 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 each reporting period and recorded revenue in accordance with the accounting standards for projects which were underway as of the end of 2021, 2020 and 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 |
Allowances for Expected Credit Losses | Allowances for Expected Credit Losses The Company maintains allowances for expected credit losses for estimated losses resulting from the inability of customers to make required payments. Estimating the amount of future expected losses requires the Company to consider historical losses from our customers, as well as current market conditions and future forecasts of our customers’ ability to make payments for goods and services. 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. |
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 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 SG&A expenses in the accompanying consolidated statements of operations. |
Leases | Leases The Company records a right-of-use asset and lease liability for operating and finance leases once a contract that contains a lease is executed and the Company has 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 is 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. The Company 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 balance sheets. These leases primarily represent month-to-month operating leases for office equipment where we were reasonably certain that we would not elect an option to extend the lease. The Company also made an accounting policy election not to separate lease and non-lease components for all asset classes and accounts 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 three 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 Intangible Assets In accordance with applicable accounting standards, the Company tests goodwill for impairment annually and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. During the fourth quarters of 2021, 2020 and 2019, the Company performed the annual goodwill impairment test. In addition, during the first quarter of 2020—primarily due to anticipated impacts of the COVID-19 pandemic—the Company determined that there were indicators of impairment, and the Company proceeded with a goodwill impairment test as of the end of the first quarter. The Company tests goodwill at the reporting unit level, which is one level below the operating segment level. 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. See Note 12 entitled “Goodwill and Intangible Assets” for additional information. Trademark and tradename intangible assets acquired in connection with the nora acquisition are not subject to amortization, but are tested for impairment annually and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of the intangible asset below its carrying amount. During the first quarter of 2020—primarily due to anticipated impacts of the COVID-19 pandemic—the Company determined that there were indicators of impairment, and the Company proceeded with an impairment test as of the end of the first quarter. The Company prepared valuations of the intangible assets using the present value of cash flows under the relief from royalty method, which were compared to the carrying value of intangible assets to determine whether any impairment existed. See Note 12 entitled “Goodwill and Intangible Assets” for additional information. |
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 The Company records a provision related to warranty costs based on historical experience and future expectations and periodically adjusts these provisions to reflect changes in actual experience. Warranty and sales allowance reserves amounted to $2.7 million and $3.2 million as of January 2, 2022 and January 3, 2021, respectively, and are included in “Accrued Expenses” in the accompanying consolidated balance sheets. |
Income Taxes | 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 17 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. See Note 5 entitled “Fair Value of Financial Instruments” for further information. |
Translation of Foreign Currencies | Translation of Foreign Currencies |
Earnings Per Share | Earnings per Share Basic earnings per share is computed based on the average number of common shares outstanding, including participating securities. 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. See Note 15 entitled “Earnings Per Share” for additional information. |
Stock-Based Compensation | Stock-Based Compensation The Company has stock-based employee compensation plans, which are described more fully in Note 14 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 2021, 2020 or 2019. 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 changes in the fair value of the derivative are recognized in other comprehensive income (or other comprehensive loss) until the hedged item is recognized in earnings. Changes in the fair value of derivatives not designated as hedging instruments are recognized in earnings each period. Derivative liabilities are recorded in accrued expenses and derivative assets are recorded in other current assets in the consolidated balance sheets. Cash flows from all derivative instruments, including those not designated as hedging instruments, are classified in the same category as the cash flows from the items being hedged. |
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. |
Reclassifications | Reclassifications In the first quarter of 2021, the Company determined that it has two operating and reportable segments – namely Americas (“AMS”) and Europe, Africa, Asia and Australia (collectively “EAAA”). The AMS operating segment is unchanged from prior year and continues to include the United States, Canada and Latin America geographic areas. Segment disclosures for 2020 and 2019 have been restated to conform to the current reportable segment structure. See Note 20 entitled “Segment Information” for additional information. In 2020, the Company made certain classification and presentation changes related to customer service and other costs. Previously, these costs were presented as a component of cost of sales. Beginning in 2020, these costs are presented as a component of SG&A expense. The Company determined that this change better reflects how management views and operates the business. Reclassifications of the comparative prior year 2019 amounts as reported in the Company’s Annual Report on Form 10-K for the year ended December 29, 2019 have been made to conform to the current presentation as follows: Fiscal Year 2019 Statement of Operations Line Item As Reported Reclassification As Reclassified (in thousands) Cost of sales $ 817,575 $ (7,513) $ 810,062 Selling, general and administrative expenses 381,604 7,513 389,117 Total $ 1,199,179 $ — $ 1,199,179 |
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 “2021,” “2020,” and “2019,” mean the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively. Fiscal year 2021 is comprised of 52 weeks, 2020 is comprised of 53 weeks, and 2019 is comprised of 52 weeks. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements On January 4, 2021, the Company adopted Accounting Standards Update (“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 related to intraperiod tax allocation, the calculation of income taxes in interim periods, and the accounting for outside basis differences of foreign subsidiaries and equity method investments. The amendments also improve consistent application of and simplify GAAP for other areas of ASC Topic 740, including franchise or similar taxes partially based on income, the accounting for a step-up in tax basis goodwill, and interim recognition of an enacted change in tax laws or rates, by clarifying and amending existing guidance. The adoption of this standard did not have a material impact to the Company’s consolidated financial statements. In November 2021, the Financial Accounting Standards Board (“FASB”) issued ASU 2021-10, “ Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. ” The amendments in this update require annual disclosure of transactions with a government that provides assistance to an entity that is accounted for by applying a grant or contribution model by analogy. Required disclosures include the nature of the transaction and the accounting policy applied to account for the transaction, the financial statement line items affected by the transaction and significant terms and conditions. The amendments are effective for annual periods beginning after December 15, 2021. Early adoption is permitted. The Company adopted this ASU on January 2, 2022 and applied the disclosures retrospectively to transactions reflected in its financial statements at adoption, as permitted by the ASU. See Note 1 entitled “Summary of Significant Accounting Policies” of this Form 10-K for required information as it pertains to government assistance received during the COVID-19 pandemic under the NOW program enacted in the Netherlands. In March 2020, the FASB issued ASU 2020-04, “ Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting .” This standard addresses the risks from the discontinuation of the London Interbank Offered Rate (LIBOR) and provides optional expedients and exceptions to contracts, hedging relationships and other transactions that reference LIBOR if certain criteria are met. This new guidance is effective and may be applied beginning March 12, 2020 through December 31, 2022. As discussed in Note 9 entitled “Long-Term Debt”: the Company adopted this ASU on December 9, 2021 in connection with the fourth amendment to the Syndicated Credit Facility, which among other things, provided amendments to replace the LIBOR interest rate benchmark applicable to loans with specified successor benchmark rates. The adoption of this ASU did not have a material impact on our consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Reclassifications | In 2020, the Company made certain classification and presentation changes related to customer service and other costs. Previously, these costs were presented as a component of cost of sales. Beginning in 2020, these costs are presented as a component of SG&A expense. The Company determined that this change better reflects how management views and operates the business. Reclassifications of the comparative prior year 2019 amounts as reported in the Company’s Annual Report on Form 10-K for the year ended December 29, 2019 have been made to conform to the current presentation as follows: Fiscal Year 2019 Statement of Operations Line Item As Reported Reclassification As Reclassified (in thousands) Cost of sales $ 817,575 $ (7,513) $ 810,062 Selling, general and administrative expenses 381,604 7,513 389,117 Total $ 1,199,179 $ — $ 1,199,179 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Revenues [Abstract] | |
Disaggregation of Revenue | For fiscal years 2021, 2020 and 2019, revenue from the Company’s customers is broken down by geography as follows: Fiscal Year Geography 2021 2020 2019 Americas 54.3% 53.8% 56.4% Europe 31.7% 31.8% 29.3% Asia-Pacific 14.0% 14.4% 14.3% Revenue from the Company’s customers in the Americas corresponds to the AMS reportable segment, and the EAAA reportable segment includes revenue from the Europe and Asia-Pacific geographies. See Note 20 entitled “Segment Information” for additional information. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instruments | The following table presents the carrying values and estimated fair values, including the level within the fair value hierarchy, of certain financial instruments: January 2, 2022 January 3, 2021 Carrying Value Fair Value (Level 1) Fair Value (Level 2) Carrying Value Fair Value (Level 2) (in thousands) Assets: Company-owned life insurance $ 22,378 $ — $ 22,378 $ 22,048 $ 22,048 Deferred compensation investments 35,578 15,557 20,021 33,939 33,939 Liabilities: Borrowings under Syndicated Credit Facility (1) $ 225,131 $ — $ 225,131 $ 285,215 $ 285,215 5.50% Senior Notes due 2028 (1) 300,000 — 315,039 300,000 315,999 (1) Carrying values exclude unamortized debt issuance costs and include amounts presented as current liabilities on the consolidated balance sheets. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories are summarized as follows: End of Fiscal Year 2021 2020 (in thousands) Finished goods $ 182,896 $ 152,836 Work-in-process 15,185 17,109 Raw materials 67,011 58,780 Inventories, net $ 265,092 $ 228,725 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | Property, plant and equipment consisted of the following: End of Fiscal Year 2021 2020 (in thousands) Land $ 17,237 $ 18,348 Buildings and improvements 176,980 176,702 Equipment and furniture (1) 642,390 657,796 836,607 852,846 Accumulated depreciation and amortization (2) (506,806) (493,810) Property, plant and equipment, net $ 329,801 $ 359,036 (1) Includes $14.8 million and $9.9 million of leased equipment for 2021 and 2020, respectively. (2) Includes $8.3 million and $3.8 million of accumulated amortization on leased equipment for 2021 and 2020, respectively. |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses | Accrued expenses are summarized as follows: End of Fiscal Year 2021 2020 (in thousands) Compensation $ 96,802 $ 79,306 Interest 1,577 2,507 Restructuring 2,354 1,064 Taxes 25,295 2,073 Accrued purchases 5,588 5,916 Warranty and sales allowances 2,702 3,248 Other 11,980 11,625 Accrued Expenses $ 146,298 $ 105,739 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt consisted of the following: January 2, 2022 January 3, 2021 Outstanding Principal Interest Rate (1) Outstanding Principal Interest Rate (1) (in thousands) (in thousands) Syndicated Credit Facility: Revolving loan borrowings $ 7,500 4.00 % $ 3,000 4.00 % Term loan borrowings 217,631 1.84 % 282,215 1.87 % Total borrowings under Syndicated Credit Facility 225,131 1.91 % 285,215 1.89 % 5.50% Senior Notes due 2028 300,000 5.50 % 300,000 5.50 % Total debt 525,131 585,215 Less: Unamortized debt issuance costs (7,073) (8,645) Total debt, net 518,058 576,570 Less: Current portion of long-term debt (15,002) (15,319) Total long-term debt, net $ 503,056 $ 561,251 (1) Represents the stated rate of interest, without the effect of debt issuance costs or interest rate swaps. |
Senior Notes Redemption | On or after December 1, 2023, the Company may redeem the Senior Notes, in whole or in part, at any time at the redemption prices listed below, plus accrued and unpaid interest, if any, to (but excluding) the redemption date, if redeemed during the 12-month period commencing on December 1 of the years set forth below: Period Redemption Price 2023 102.750 % 2024 101.375 % 2025 and thereafter 100.000 % |
Schedule of Future Maturities of Borrowings | The aggregate maturities of borrowings for each of the five fiscal years subsequent to 2021 are as follows: Fiscal Year Amount (in thousands) 2022 $ 15,002 2023 15,002 2024 15,002 2025 180,125 2026 — Thereafter 300,000 Total Debt $ 525,131 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
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 January 3, 2021: Asset Derivatives as of January 3, 2021 Liability Derivatives as of January 3, 2021 Balance Sheet Fair Value Balance Sheet Fair Value (in thousands) Derivative instruments designated as hedging instruments: Interest rate swap contracts Other current assets $ — Accrued expenses $ — Derivative instruments not designated as hedging instruments: Foreign currency options Other current assets 37 Accrued expenses — $ 37 $ — |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive 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 other comprehensive income (loss), net of tax: Fiscal Year 2020 2019 (in thousands) Foreign currency contracts gain $ — $ 468 Interest rate swap contracts loss (2,027) (5,957) Loss recognized in other comprehensive income (loss) $ (2,027) $ (5,489) |
Derivatives Not Designated as Hedging Instruments | The following table summarizes gains and losses on derivatives not designated as hedging instruments within the consolidated statements of operations: Fiscal Year Statement of Operations Location 2021 2020 2019 (in thousands) Foreign currency options gain (loss) Other expense $ 408 $ 13 $ (627) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Leases [Abstract] | |
Balance Sheet Information, Lessee | The table below represents a summary of the balances recorded in the consolidated balance sheets related to our leases as of January 2, 2022 and January 3, 2021: January 2, 2022 January 3, 2021 Balance Sheet Location Operating Leases Finance Leases Operating Leases Finance Leases (in thousands) Operating lease right-of-use assets $ 90,561 $ 98,013 Current portion of operating lease liabilities $ 14,588 $ 13,555 Operating lease liabilities 77,905 86,468 Total operating lease liabilities $ 92,493 $ 100,023 Property, plant and equipment, net $ 6,547 $ 6,138 Accrued expenses $ 1,837 $ 1,496 Other long-term liabilities 3,201 2,688 Total finance lease liabilities $ 5,038 $ 4,184 |
Schedule of Lease Cost | Lease Costs Fiscal Year 2021 2020 2019 (in thousands) Finance lease cost: Amortization of right-of-use assets $ 2,653 $ 1,251 $ 890 Interest on lease liabilities 140 86 51 Operating lease cost 21,581 25,213 24,246 Short-term lease cost 977 525 2,057 Variable lease cost 2,831 3,970 3,665 Total lease cost $ 28,182 $ 31,045 $ 30,909 |
Other Supplemental Information, Lessee | Other Supplemental Information Fiscal Year 2021 2020 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 108 $ 86 $ 51 Operating cash flows from operating leases 22,210 22,206 22,597 Financing cash flows from finance leases 2,282 1,727 1,255 Right-of-use assets obtained in exchange for new finance lease liabilities 3,259 2,546 2,240 Right-of-use assets obtained in exchange for new operating lease liabilities 13,330 2,504 12,655 |
Weighted Average Lease Term And Discount Rate, Lessee | The table below presents the weighted average remaining lease terms and discount rates for finance and operating leases as of January 2, 2022 and January 3, 2021: End of Fiscal Year 2021 2020 Weighted-average remaining lease term – finance leases (in years) 3.20 3.35 Weighted-average remaining lease term – operating leases (in years) 9.97 10.61 Weighted-average discount rate – finance leases 2.82 % 2.64 % Weighted-average discount rate – operating leases 5.87 % 5.98 % |
Lease Liability Maturity Schedule | A maturity analysis of lease payments under non-cancellable leases is presented as follows: Fiscal Year Operating Leases Finance Leases (in thousands) 2022 $ 17,883 $ 1,919 2023 13,734 1,541 2024 12,189 1,161 2025 10,455 466 2026 10,655 150 Thereafter 60,618 49 Total future minimum lease payments (undiscounted) 125,534 5,286 Less: Present value discount (33,041) (248) Total lease liability $ 92,493 $ 5,038 |
Lease Liability Maturity Schedule | A maturity analysis of lease payments under non-cancellable leases is presented as follows: Fiscal Year Operating Leases Finance Leases (in thousands) 2022 $ 17,883 $ 1,919 2023 13,734 1,541 2024 12,189 1,161 2025 10,455 466 2026 10,655 150 Thereafter 60,618 49 Total future minimum lease payments (undiscounted) 125,534 5,286 Less: Present value discount (33,041) (248) Total lease liability $ 92,493 $ 5,038 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amounts of goodwill attributable to each reportable segment for the years ended January 2, 2022 and January 3, 2021 are as follows: AMS EAAA Total (in thousands) Goodwill balance, at December 29, 2019 $ 116,202 $ 141,237 $ 257,439 Impairment — (116,495) (116,495) Foreign currency translation 6,142 18,691 24,833 Goodwill balance, at January 3, 2021 122,344 43,433 165,777 Foreign currency translation (13,839) (4,913) (18,752) Goodwill balance, at January 2, 2022 $ 108,505 $ 38,520 $ 147,025 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Shareholders' Equity | The following tables depict the activity in the accounts which make up shareholders’ equity for fiscal years 2021, 2020 and 2019: SHARES COMMON STOCK ADDITIONAL RETAINED PENSION FOREIGN CASH FLOW (in thousands) Balance, at January 3, 2021 58,664 $ 5,865 $ 247,920 $ 208,562 $ (69,288) $ (60,331) $ (6,190) Net income — — — 55,234 — — — Restricted stock issuances 429 43 6,066 — — — — Unamortized compensation expense related to restricted stock awards — — (6,109) — — — — Cash dividends declared — — — (2,362) — — — Compensation expense related to stock awards, net of forfeitures (38) (3) 5,233 — — — — Pension liability adjustment — — — — 15,400 — — Foreign currency translation adjustment — — — — — (40,110) — Reclassification out of accumulated other comprehensive loss - discontinued cash flow hedge — — — — — — 3,468 Balance, at January 2, 2022 59,055 $ 5,905 $ 253,110 $ 261,434 $ (53,888) $ (100,441) $ (2,722) SHARES COMMON STOCK ADDITIONAL RETAINED PENSION FOREIGN CASH FLOW (in thousands) Balance, at December 29, 2019 58,416 $ 5,842 $ 250,306 $ 286,056 $ (56,700) $ (113,139) $ (4,163) Net loss — — — (71,929) — — — Issuances of stock (other than restricted stock) 239 24 195 — — — — Restricted stock issuances 304 30 3,999 — — — — Unamortized compensation expense related to restricted stock awards — — (4,030) — — — — Cash dividends declared — — — (5,565) — — — Compensation expense related to stock awards, net of forfeitures (295) (31) (2,550) — — — — Pension liability adjustment — — — — (12,588) — — Foreign currency translation adjustment — — — — — 52,808 — Cash flow hedge unrealized loss — — — — — — (2,027) Balance, at January 3, 2021 58,664 $ 5,865 $ 247,920 $ 208,562 $ (69,288) $ (60,331) $ (6,190) SHARES COMMON STOCK ADDITIONAL RETAINED PENSION FOREIGN 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 — — — Issuances of stock (other than restricted stock) 511 51 636 — — — — Restricted stock issuances 223 22 3,900 — — — — Unamortized compensation expense related to restricted stock awards — — (4,139) — — — — Cash dividends declared — — — (15,358) — — — Compensation expense related to stock awards, net of forfeitures (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 loss — — — — — — (5,489) Balance, at December 29, 2019 58,416 $ 5,842 $ 250,306 $ 286,056 $ (56,700) $ (113,139) $ (4,163) |
Schedule of Restricted Stock Outstanding and Activity | The following table summarizes restricted stock outstanding as of January 2, 2022, as well as activity during the previous fiscal year: Restricted Shares Weighted Average Outstanding at January 3, 2021 436,900 $ 24.73 Granted 428,400 14.26 Vested (167,200) 13.68 Forfeited or canceled (14,300) 15.48 Outstanding at January 2, 2022 683,800 $ 21.06 |
Schedule of Performance Shares Outstanding and Activity | The following table summarizes the performance shares outstanding as of January 2, 2022, as well as the activity during the year: Performance Shares Weighted Outstanding at January 3, 2021 405,300 $ 16.94 Granted 375,800 13.94 Vested — — Forfeited or canceled (63,000) 21.43 Outstanding at January 2, 2022 718,100 $ 14.98 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table shows the computation of basic and diluted EPS: Fiscal Year 2021 2020 2019 (in thousands, except per share data) Numerator: Net income (loss) $ 55,234 $ (71,929) $ 79,200 Less: distributed and undistributed earnings available to participating securities (602) (42) (625) Distributed and undistributed earnings (loss) available to common shareholders $ 54,632 $ (71,971) $ 78,575 Denominator: Weighted average shares outstanding 58,328 58,110 58,475 Participating securities 643 437 468 Shares for basic EPS 58,971 58,547 58,943 Dilutive effect of stock options — — 5 Shares for diluted EPS 58,971 58,547 58,948 Basic EPS $ 0.94 $ (1.23) $ 1.34 Diluted EPS $ 0.94 $ (1.23) $ 1.34 |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring, Asset Impairment and Other Charges by Reportable Segment | Restructuring, asset impairment and other charges by reportable segment are presented as follows: Fiscal Year 2021 2020 2019 (in thousands) AMS $ (1) $ (288) $ 2,590 EAAA 3,622 (4,338) 10,357 Total restructuring, asset impairment and other charges $ 3,621 $ (4,626) $ 12,947 |
Schedule of Restructuring Reserve by Plan and Type of Cost | A summary of restructuring activities for the 2021, 2019 and 2018 restructuring plans is presented below: Workforce Reduction Other Exit Costs Asset Impairment 2021 Plan 2019 Plan 2018 Plan 2019 Plan 2018 Plan 2021 Plan Total (in thousands) Balance, at December 30, 2018 $ — $ — $ 10,763 $ — $ 1,144 $ — $ 11,907 Charged to expenses — 8,827 (1,743) 188 672 — 7,944 Deductions — (193) (7,122) — (1,042) — (8,357) Charged to other accounts — — — (49) — — (49) Balance, at December 29, 2019 — 8,634 1,898 139 774 — 11,445 Charged to expenses — (3,704) (223) — (699) — (4,626) Deductions — (3,866) (1,675) (139) (75) — (5,755) Balance, at January 3, 2021 — 1,064 — — — — 1,064 Charged to expenses 2,257 (286) — — — 1,650 3,621 Deductions — (681) — — — — (681) Charged to other accounts — — — — — (1,650) (1,650) Balance, at January 2, 2022 $ 2,257 $ 97 $ — $ — $ — $ — $ 2,354 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (Loss) Before Income Taxes | Income (loss) before income taxes consisted of the following: Fiscal Year 2021 2020 2019 (in thousands) U.S. operations $ 4,460 $ (7,104) $ 46,463 Foreign operations 68,173 (72,316) 55,353 Income (loss) before income taxes $ 72,633 $ (79,420) $ 101,816 |
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 2021 2020 2019 (in thousands) Current expense (benefit): Federal $ 1,987 $ (22,976) $ 8,414 Foreign 21,372 14,822 14,513 State 1,418 529 2,312 Current expense (benefit) 24,777 (7,625) 25,239 Deferred expense (benefit): Federal (2,841) 1,787 (625) Foreign (3,846) (2,422) (2,198) State (691) 769 200 Deferred expense (benefit) (7,378) 134 (2,623) Total income tax expense (benefit) $ 17,399 $ (7,491) $ 22,616 |
Schedule of Effective Income Tax Rate Reconciliation | The following summary reconciles income taxes at the U.S. federal statutory rate of 21% applicable for all periods presented to the Company’s actual income tax expense: Fiscal Year 2021 2020 2019 (in thousands) Income taxes at U.S. federal statutory rate $ 15,253 $ (16,678) $ 21,381 Increase (decrease) in taxes resulting from: State income taxes, net of federal tax effect (87) (2,033) 2,321 Non-deductible business expenses 330 1,792 933 Non-deductible employee compensation 1,213 (210) 1,453 Tax effects of Company-owned life insurance (762) (898) (636) Tax effects of undistributed earnings from foreign subsidiaries not deemed to be indefinitely reinvested 1,219 748 (183) Foreign and U.S. tax effects attributable to foreign operations 1,748 (11,991) 783 Valuation allowance effect 1,349 12,927 133 Research and development tax credits (793) (780) (700) Goodwill impairment — 24,464 — Unrecognized tax benefits (2,663) (14,962) (3,324) Other 592 130 455 Income tax expense (benefit) $ 17,399 $ (7,491) $ 22,616 |
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: End of Fiscal Year 2021 2020 (in thousands) Deferred tax assets Lease liability $ 25,426 $ 28,094 Net operating loss and interest carryforwards 5,962 4,031 Federal tax credit carryforwards 10,054 10,412 Derivative instruments 1,126 2,680 Deferred compensation 19,487 20,244 Inventory 3,100 4,004 Prepaids, accruals and reserves 8,777 3,659 Capitalized costs 4,805 — Pensions 6,431 11,485 Other 175 50 Deferred tax asset, gross 85,343 84,659 Valuation allowance (15,338) (13,919) Deferred tax asset, net $ 70,005 $ 70,740 Deferred tax liabilities Property and equipment $ 25,352 $ 27,322 Intangible assets 30,736 30,745 Lease asset 24,856 27,268 Foreign currency 458 606 Foreign withholding and U.S. state taxes on unremitted earnings 1,332 931 Deferred tax liabilities 82,734 86,872 Net deferred tax liabilities $ 12,729 $ 16,132 |
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 2021 2020 2019 (in thousands) Balance at beginning of year $ 10,799 $ 25,486 $ 28,143 Increases related to tax positions taken during the current year 265 271 318 Increases related to tax positions taken during the prior years 198 536 1,093 Decreases related to tax positions taken during the prior years — (673) (2,809) Decreases related to lapse of applicable statute of limitations (2,309) (14,992) (1,266) Changes due to settlements (836) — — Changes due to foreign currency translation 103 171 7 Balance at end of year $ 8,220 $ 10,799 $ 25,486 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Retirement Benefits [Abstract] | |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | 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 2021 2020 (in thousands) Change in benefit obligation: Benefit obligation, beginning of year $ 364,443 $ 314,841 Service cost 1,087 1,070 Interest cost 2,687 4,038 Benefits and expenses paid (11,339) (12,041) Actuarial loss (gain) (19,723) 31,618 Currency translation adjustment (12,747) 24,917 Benefit obligation, end of year $ 324,408 $ 364,443 Change in plan assets: Plan assets, beginning of year $ 303,531 $ 266,450 Actual return on assets (2,817) 25,239 Company contributions 5,393 4,451 Benefits paid (11,339) (12,041) Currency translation adjustment (9,168) 19,432 Plan assets, end of year $ 285,600 $ 303,531 Funded status $ (38,808) $ (60,912) Amounts recognized in consolidated balance sheets: Other assets $ 10,975 $ — Current liabilities (1,049) (1,089) Other long-term liabilities, net of current portion (48,734) (59,823) Under funded status at end of fiscal year $ (38,808) $ (60,912) Amounts recognized in accumulated other comprehensive loss, after tax: Unrecognized actuarial loss $ 45,209 $ 58,257 Unamortized prior service credits — — Total amount recognized $ 45,209 $ 58,257 Accumulated benefit obligation $ 324,408 $ 364,443 End of Fiscal Year 2021 2020 (in thousands) UK Plan Projected benefit obligation $ 181,997 $ 198,215 Accumulated benefit obligation 181,997 198,215 Plan assets 192,971 193,991 Dutch Plan Projected benefit obligation $ 97,108 $ 116,379 Accumulated benefit obligation 97,108 116,379 Plan assets 92,629 109,540 nora Plan Projected benefit obligation $ 45,303 $ 49,849 Accumulated benefit obligation 45,303 49,849 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 2021 and 2020 as there are no longer any participants accruing benefits in the plan. Fiscal Year 2021 2020 (in thousands) Change in benefit obligation: Benefit obligation, beginning of year $ 33,834 $ 31,740 Interest cost 706 938 Benefits paid (1,965) (2,030) Actuarial loss (gain) (2,522) 3,186 Benefit obligation, end of year $ 30,053 $ 33,834 |
Schedule of Net Periodic Benefit Cost | Fiscal Year 2021 2020 2019 (in thousands) Components of net periodic benefit cost: Service cost $ 1,087 $ 1,070 $ 1,589 Interest cost 2,687 4,038 5,676 Expected return on plan assets (3,312) (4,256) (5,561) Amortization of prior service cost 114 106 63 Amortization of net actuarial (gains) losses 1,968 1,549 991 Curtailment gain — — (453) Net periodic benefit cost $ 2,544 $ 2,507 $ 2,305 |
Schedule of Assumptions Used to Determine Net Periodic Benefit Cost | Fiscal Year 2021 2020 2019 Weighted average assumptions used to determine net periodic benefit cost: Discount rate 0.9 % 1.0 % 1.9 % Expected return on plan assets 1.5 % 1.2 % 2.1 % Rate of compensation — % — % 1.75 % Weighted average assumptions used to determine benefit obligations: Discount rate 1.6 % 1.0 % 1.7 % Rate of compensation — % — % 1.75 % The accumulated benefit obligation related to the SCP was $30.1 million and $33.8 million as of January 2, 2022 and January 3, 2021, 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. Fiscal Year 2021 2020 2019 (in thousands, except for assumptions) Assumptions used to determine net periodic benefit cost: Discount rate 2.15 % 3.05 % 4.10 % Assumptions used to determine benefit obligations: Discount rate 2.65 % 2.15 % 3.05 % Components of net periodic benefit cost: Interest cost $ 706 $ 938 $ 1,154 Amortizations 743 558 375 Net periodic benefit cost $ 1,449 $ 1,496 $ 1,529 |
Schedule of Allocation of Plan Assets | The Company’s actual weighted average asset allocations for 2021 and 2020, and the targeted asset allocation for 2022, of the foreign defined benefit plans by asset category, are as follows: Fiscal Year 2022 2021 2020 Asset Category Target Allocation Percentage of Plan Assets at Year End Equity securities —% — 3% —% 3% Debt and debt securities 50% — 60% 63% 60% Short-term investments 1% — 2% 4% —% Other investments 35% — 40% 33% 37% 100% 100% 100% Pension Plan Assets by Category as of January 2, 2022 Dutch Plan UK Plan Total (in thousands) Level 1 $ — $ 57,338 $ 57,338 Level 2 — 107,136 107,136 Level 3 92,629 28,497 121,126 Total $ 92,629 $ 192,971 $ 285,600 Pension Plan Assets by Category as of January 3, 2021 Dutch Plan UK Plan Total (in thousands) Level 1 $ — $ 70,904 $ 70,904 Level 2 — 95,004 95,004 Level 3 109,540 28,083 137,623 Total $ 109,540 $ 193,991 $ 303,531 The tables below detail the foreign defined benefit plans’ assets by asset allocation and fair value hierarchy: End of Fiscal Year 2021 Asset Category Level 1 Level 2 Level 3 (in thousands) Equity securities $ — $ — $ — Debt and debt securities 45,516 107,136 27,176 Short-term investments (1) 11,822 — — Other investments (2) — — 93,950 $ 57,338 $ 107,136 $ 121,126 End of Fiscal Year 2020 Asset Category Level 1 Level 2 Level 3 (in thousands) Equity securities $ 9,113 $ — $ — Debt and debt securities 60,699 95,004 25,927 Short-term investments (1) 1,092 — — Other investments (2) — — 111,696 $ 70,904 $ 95,004 $ 137,623 (1) Short-term investments are generally invested in interest-bearing accounts. (2) Other investments are comprised of insurance contracts. |
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 2021 and 2020: Fiscal Year 2021 2020 (in thousands) Balance of level 3 assets, beginning of year $ 137,623 $ 115,252 Actual return on plan assets (1) (10,189) 6,767 Purchases, sales and settlements, net 440 437 Assets transferred into level 3 732 3,934 Translation adjustment (7,480) 11,233 Balance of level 3 assets, end of year $ 121,126 $ 137,623 (1) Includes $(6.6) million and $10.1 million for 2021 and 2020, respectively, of unrealized (losses) and gains recognized during the period in other comprehensive income (loss) for assets held at year end. |
Schedule of Expected Future Benefit Payments | During 2022, the Company expects to contribute $4.1 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) 2022 $ 10,880 2023 11,090 2024 11,321 2025 11,485 2026 11,632 2027-2031 60,632 During 2021, 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) 2022 $ 1,873 2023 1,873 2024 1,873 2025 1,873 2026 1,873 2027-2031 8,886 |
Schedule of Amounts Recognized in Consolidated Balance Sheet and Accumulated Other Comprehensive Loss | The amounts recognized in the consolidated balance sheets are as follows: End of Fiscal Year 2021 2020 (in thousands) Current liabilities $ 1,873 $ 2,030 Non-current liabilities 28,180 31,804 Total benefit obligation $ 30,053 $ 33,834 The components of the amounts in accumulated other comprehensive loss, after tax, are as follows: Fiscal Year 2021 2020 (in thousands) Unrecognized actuarial loss $ 8,679 $ 11,031 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Operating Segment Information | Segment information below for fiscal years 2020 and 2019 have been restated to reflect our new reportable segment structure. Fiscal Year 2021 2020 2019 (in thousands) Net Sales AMS $ 651,216 $ 593,418 $ 757,112 EAAA 549,182 509,844 585,917 Total net sales $ 1,200,398 $ 1,103,262 $ 1,343,029 Segment AOI AMS $ 85,014 $ 89,097 $ 120,921 EAAA 37,268 21,403 28,832 Depreciation and Amortization AMS $ 17,963 $ 17,164 $ 15,884 EAAA 28,382 28,756 29,048 Total depreciation and amortization $ 46,345 $ 45,920 $ 44,932 |
Reconciliation of Assets from Segment to Consolidated | A reconciliation of the Company’s total operating segment assets to the corresponding consolidated amounts follows: End of Fiscal Year 2021 2020 (in thousands) Assets AMS $ 652,423 $ 800,068 EAAA 691,844 682,295 Total segment assets 1,344,267 1,482,363 Corporate assets 146,204 111,073 Eliminations (160,414) (287,425) Total reported assets $ 1,330,057 $ 1,306,011 |
Balance Sheet Information by Operating Segment, Lessee | Total assets in the table above include operating lease right-of-use assets for fiscal years 2021 and 2020. Below is a summary of the operating lease right-of-use assets by reportable segment and a reconciliation to the consolidated amounts: End of Fiscal Year Operating Lease Right-of-Use Assets 2021 2020 (in thousands) AMS $ 12,662 $ 11,945 EAAA 67,741 74,265 Total segment operating lease right-of-use assets 80,403 86,210 Corporate operating lease right-of-use assets 10,158 11,803 Total operating lease right-of-use assets $ 90,561 $ 98,013 |
Reconciliation of Operating Income (Loss) to Income (Loss) Before Income Tax Expense and Segment AOI | Reconciliations of operating income (loss) to income (loss) before income tax expense and segment AOI are presented as follows: Fiscal Year 2021 2020 2019 (in thousands) AMS operating income $ 81,445 $ 73,234 $ 118,332 EAAA operating income (loss) 23,352 (112,521) 12,571 Consolidated operating income (loss) 104,797 (39,287) 130,903 Interest expense 29,681 29,244 25,656 Other expense 2,483 10,889 3,431 Income (loss) before income tax expense $ 72,633 $ (79,420) $ 101,816 Fiscal Year 2021 2020 2019 AMS EAAA AMS EAAA AMS EAAA (in thousands) Operating income (loss) $ 81,445 $ 23,352 $ 73,234 $ (112,521) $ 118,332 $ 12,571 Purchase accounting amortization — 5,636 — 5,457 — 5,903 Goodwill and intangible asset impairment — — 2,695 118,563 — — Impact of change in equity award forfeiture accounting — — 757 650 — — Restructuring, asset impairment, severance and other charges 3,569 8,280 9,722 6,943 2,589 10,358 SEC fine — — 2,689 2,311 — — AOI $ 85,014 $ 37,268 $ 89,097 $ 21,403 $ 120,921 $ 28,832 |
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 Sales to Unaffiliated Customers (1) 2021 2020 2019 (in thousands) United States $ 596,844 $ 545,183 $ 681,868 Germany 115,712 115,402 117,418 Other foreign countries 487,842 442,677 543,743 Total net sales $ 1,200,398 $ 1,103,262 $ 1,343,029 End of Fiscal Year Long-Lived Assets (2) 2021 2020 (in thousands) United States $ 157,194 $ 163,983 Germany 71,114 79,294 Netherlands 47,476 51,190 Other foreign countries 54,017 64,569 Total long-lived assets $ 329,801 $ 359,036 (1) Revenue attributed to geographic areas is based on the location of the customer. (2) Long-lived assets attributed to geographic areas are based on the physical location of the asset. 2021 includes $1.6 million and $4.9 million of leased equipment, net of accumulated amortization, in the United States and foreign countries, respectively. 2020 includes $1.8 million and $4.3 million of leased equipment, net of accumulated amortization, in the United States and foreign countries, respectively. |
Items Reclassified from Accum_2
Items Reclassified from Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Equity [Abstract] | |
Schedule of Items Reclassified out of Accumulated Other Comprehensive Loss | Amounts reclassified out of accumulated other comprehensive loss (“AOCI”), before tax, to the consolidated statements of operations for the fiscal years 2021, 2020 and 2019, are reflected in the tables below: Fiscal Year Statement of Operations Location 2021 2020 2019 (in thousands) Foreign currency contracts loss Cost of sales $ — $ — $ (450) Interest rate swap contracts gain (loss) (1) Interest expense (4,861) (7,287) 151 Amortization of benefit plan net actuarial losses and prior service cost (2) Other expense (2,825) (2,213) (976) Total loss reclassified from AOCI $ (7,686) $ (9,500) $ (1,275) (1) Other comprehensive income (loss) includes tax of $1.4 million, $(2.5) million and $(1.6) million for 2021, 2020 and 2019, respectively, related to cash flow hedges. (2) See Note 19 entitled “Employee Benefit Plans” for the tax effects in other comprehensive income (loss) related to the Company’s defined benefit plans. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Summary of Significant Accounting Policies [Line Items] | |||
Number of operating segments | 2 | ||
Number of reportable segments | 2 | ||
Reduction of payroll costs under NOW Program | $ 7,300,000 | ||
Payment terms for revenue from contract with customer | 60 days | ||
Percent of warranty claims to revenue (less than) (percentage) | 0.50% | 0.50% | 0.50% |
Percentage of installation projects completed in less than five days (percentage) | 85.00% | ||
Research and development expense | $ 19,300,000 | $ 18,600,000 | $ 17,800,000 |
Cash equivalents | 0 | 0 | |
Short-term investments | 0 | 0 | |
Interest paid | 22,900,000 | 32,000,000 | 22,700,000 |
Cash paid for termination of derivative | 12,500,000 | ||
Income taxes paid | 23,100,000 | 19,300,000 | 34,800,000 |
Proceeds from income tax refunds | 5,400,000 | 7,500,000 | 1,900,000 |
Interest costs capitalized | 500,000 | 1,900,000 | 2,100,000 |
Depreciation expense | $ 41,900,000 | 42,400,000 | 41,500,000 |
Workmanship warranty period | 1 year | ||
Warranty and sales allowance reserves | $ 2,700,000 | 3,200,000 | |
Foreign exchange translation gains (losses) | $ (40,110,000) | $ 52,808,000 | $ (11,652,000) |
Share-based compensation, options granted (in shares) | 0 | 0 | 0 |
Developed Technology Rights | |||
Summary of Significant Accounting Policies [Line Items] | |||
Estimated useful life | 7 years | ||
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% | 98.00% | 98.00% |
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% | 2.00% | 2.00% |
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] | |||
Reduction of payroll costs under NOW Program | $ 1,200,000 | ||
Selling, General and Administrative Expenses | |||
Summary of Significant Accounting Policies [Line Items] | |||
Reduction of payroll costs under NOW Program | $ 6,100,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Reclassifications (Details) - USD ($) | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Summary of Reclassifications [Line Items] | |||
Cost of sales | $ 767,665,000 | $ 692,688,000 | $ 810,062,000 |
Selling, general and administrative expenses | $ 324,315,000 | $ 333,229,000 | 389,117,000 |
Costs and Expenses | 1,199,179,000 | ||
As Reported | |||
Summary of Reclassifications [Line Items] | |||
Cost of sales | 817,575,000 | ||
Selling, general and administrative expenses | 381,604,000 | ||
Costs and Expenses | 1,199,179,000 | ||
Reclassification | |||
Summary of Reclassifications [Line Items] | |||
Cost of sales | (7,513,000) | ||
Selling, general and administrative expenses | 7,513,000 | ||
Costs and Expenses | $ 0 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Carpet, Modular Resilient Flooring, and Related Products | |||
Disaggregation of Revenue [Line Items] | |||
Percent of revenue due to contracts with customers (percentage) | 98.00% | 98.00% | 98.00% |
Installation of Carpet and Other Flooring Related Material | |||
Disaggregation of Revenue [Line Items] | |||
Percent of revenue due to contracts with customers (percentage) | 2.00% | 2.00% | 2.00% |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Americas | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of net sales | 54.30% | 53.80% | 56.40% |
Europe | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of net sales | 31.70% | 31.80% | 29.30% |
Asia-Pacific | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of net sales | 14.00% | 14.40% | 14.30% |
Receivables - Narrative (Detail
Receivables - Narrative (Details) - USD ($) $ in Millions | Jan. 02, 2022 | Jan. 03, 2021 |
Receivables [Abstract] | ||
Allowance for expected credit losses | $ 5 | $ 6.6 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Fair Value Schedule (Details) - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 |
Financial Instrument [Line Items] | ||
Company-owned life insurance, carrying value | $ 22,378 | $ 22,048 |
Long-term debt, gross | 525,131 | 585,215 |
Syndicated Facility Agreement | ||
Financial Instrument [Line Items] | ||
Long-term debt, gross | 225,131 | 285,215 |
Senior Notes | ||
Financial Instrument [Line Items] | ||
Long-term debt, gross | 300,000 | 300,000 |
Nonqualified Savings Plans | ||
Financial Instrument [Line Items] | ||
Deferred compensation investments, carrying value | 35,578 | 33,939 |
Nonqualified Savings Plans | Mutual Funds | ||
Financial Instrument [Line Items] | ||
Deferred compensation investments, carrying value | 15,600 | |
Nonqualified Savings Plans | Insurance Contracts | ||
Financial Instrument [Line Items] | ||
Deferred compensation investments, carrying value | 20,000 | 33,900 |
Level 1 | Nonqualified Savings Plans | Mutual Funds | ||
Financial Instrument [Line Items] | ||
Deferred compensation investments, fair value | 15,557 | |
Level 2 | ||
Financial Instrument [Line Items] | ||
Company-owned life insurance, fair value | 22,378 | 22,048 |
Level 2 | Syndicated Facility Agreement | ||
Financial Instrument [Line Items] | ||
Long-term debt, fair value | 225,131 | 285,215 |
Level 2 | Senior Notes | ||
Financial Instrument [Line Items] | ||
Long-term debt, fair value | 315,039 | 315,999 |
Level 2 | Nonqualified Savings Plans | Insurance Contracts | ||
Financial Instrument [Line Items] | ||
Deferred compensation investments, fair value | $ 20,021 | $ 33,939 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Details) - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 182,896 | $ 152,836 |
Work-in-process | 15,185 | 17,109 |
Raw materials | 67,011 | 58,780 |
Inventories, net | $ 265,092 | $ 228,725 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Millions | Jan. 02, 2022 | Jan. 03, 2021 |
Inventory Disclosure [Abstract] | ||
Inventory obsolescence reserves | $ 27.1 | $ 35 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 836,607 | $ 852,846 |
Accumulated depreciation and amortization | (506,806) | (493,810) |
Property, plant and equipment, net | 329,801 | 359,036 |
Leased equipment | 14,800 | 9,900 |
Leased equipment accumulated amortization | 8,300 | 3,800 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 17,237 | 18,348 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 176,980 | 176,702 |
Equipment and furniture | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 642,390 | $ 657,796 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Narrative (Details) - USD ($) $ in Millions | Jan. 02, 2022 | Jan. 03, 2021 |
Property, Plant and Equipment [Abstract] | ||
Construction-in-progress | $ 44.6 | $ 43 |
Accrued Expenses - Summary of A
Accrued Expenses - Summary of Accrued Expenses (Details) - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 |
Payables and Accruals [Abstract] | ||
Compensation | $ 96,802 | $ 79,306 |
Interest | 1,577 | 2,507 |
Restructuring | 2,354 | 1,064 |
Taxes | 25,295 | 2,073 |
Accrued purchases | 5,588 | 5,916 |
Warranty and sales allowances | 2,702 | 3,248 |
Other | 11,980 | 11,625 |
Accrued expenses | $ 146,298 | $ 105,739 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt (Details) - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 |
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 525,131 | $ 585,215 |
Unamortized debt issuance costs, recorded as reduction of long-term debt, net | (7,073) | (8,645) |
Total debt, net | 518,058 | 576,570 |
Current portion of long-term debt | (15,002) | (15,319) |
Total long-term debt, net | 503,056 | 561,251 |
Syndicated Facility Agreement | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 225,131 | $ 285,215 |
Weighted average interest rate on borrowings outstanding | 1.91% | 1.89% |
Syndicated Facility Agreement | Revolving loan facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 7,500 | $ 3,000 |
Long-term debt, bearing variable interest, percentage rate | 4.00% | 4.00% |
Syndicated Facility Agreement | Term Loan | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 217,631 | $ 282,215 |
Long-term debt, bearing variable interest, percentage rate | 1.84% | 1.87% |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 300,000 | $ 300,000 |
Long-term debt, bearing fixed interest, percentage rate | 5.50% | 5.50% |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) | Nov. 17, 2020 | Jul. 15, 2020 | Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 |
Debt Instrument [Line Items] | |||||
Payments of debt issuance costs | $ 36,000 | $ 7,896,000 | $ 0 | ||
Proceeds from issuance of Senior Notes due 2028 | 0 | 300,000,000 | 0 | ||
Repayments of term loan borrowing | 60,485,000 | 304,425,000 | 24,028,000 | ||
Repayments of revolving loan borrowing | 71,500,000 | 131,024,000 | 87,664,000 | ||
Unamortized debt issuance costs, recorded as reduction of long-term debt, net | 7,073,000 | 8,645,000 | |||
Other Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Revolving loan facility, maximum borrowing capacity | 6,000,000 | 6,000,000 | |||
Other line of credit borrowings, outstanding | $ 0 | $ 0 | |||
Other Line of Credit | Minimum | |||||
Debt Instrument [Line Items] | |||||
Revolving loan facility, interest rate | 3.50% | 3.50% | |||
Other Line of Credit | Maximum | |||||
Debt Instrument [Line Items] | |||||
Revolving loan facility, interest rate | 6.00% | 6.00% | |||
Syndicated Facility Agreement | |||||
Debt Instrument [Line Items] | |||||
Revolving loan facility, maximum borrowing capacity | $ 300,000,000 | ||||
Revolving loan facility, remaining borrowing capacity | 290,900,000 | ||||
Interest rate floor, minimum | 0.00% | ||||
Interest rate floor, maximum | 0.75% | ||||
Payments of debt issuance costs | $ 900,000 | $ 1,500,000 | |||
Interest rate floor | 0.00% | ||||
Loss on extinguishment of debt | $ 3,600,000 | ||||
Threshold of other indebtedness triggering default | $ 20,000,000 | ||||
Maximum percentage of first tier subsidiary stock pledged as collateral | 65.00% | ||||
Letters of credit, outstanding | $ 1,600,000 | $ 1,600,000 | |||
Unamortized debt issuance costs, revolving loan facility, net | $ 1,600,000 | 2,000,000 | |||
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 | Maximum | |||||
Debt Instrument [Line Items] | |||||
Revolving loan facility, interest rate | 2.00% | ||||
Revolving loan facility, commitment fee percentage of unused capacity | 0.40% | ||||
Syndicated Facility Agreement | LIBOR | Minimum | |||||
Debt Instrument [Line Items] | |||||
Revolving loan facility, basis spread on variable rate | 1.25% | ||||
Syndicated Facility Agreement | LIBOR | Maximum | |||||
Debt Instrument [Line Items] | |||||
Revolving loan facility, basis spread on variable rate | 3.00% | ||||
Syndicated Facility Agreement | For Each Fiscal Quarter Thereafter | |||||
Debt Instrument [Line Items] | |||||
Maximum consolidated net leverage ratio | 3 | ||||
Minimum consolidated interest coverage ratio | 2.25 | ||||
Syndicated Facility Agreement | Term Loan | |||||
Debt Instrument [Line Items] | |||||
Payments of debt issuance costs | 100,000 | 1,000,000 | |||
Repayments of term loan borrowing | 269,700,000 | ||||
Syndicated Facility Agreement | Revolving loan facility | |||||
Debt Instrument [Line Items] | |||||
Payments of debt issuance costs | 800,000 | $ 500,000 | |||
Repayments of revolving loan borrowing | 21,000,000 | ||||
Syndicated Facility Agreement | Revolving loan facility | |||||
Debt Instrument [Line Items] | |||||
Amortization of debt issuance costs | $ 400,000 | 400,000 | 400,000 | ||
Term Loan | |||||
Debt Instrument [Line Items] | |||||
Amortization of debt issuance costs | $ 1,800,000 | ||||
Term Loan and Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Unamortized debt issuance costs, recorded as reduction of long-term debt, net | 7,100,000 | 8,600,000 | |||
Amortization of debt issuance costs | $ 1,600,000 | $ 1,700,000 | |||
Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Payments of debt issuance costs | 5,700,000 | ||||
Proceeds from issuance of Senior Notes due 2028 | $ 300,000,000 | ||||
Debt instrument, interest rate, stated percentage | 5.50% | ||||
Percentage of principal declared due upon event of default | 25.00% | ||||
Senior Notes | Before December 1, 2023 Redemption Period | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption price, percentage | 100.00% | ||||
Senior Notes | Proceeds of Certain Equity Offerings | Before December 1, 2023 Redemption Period | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption price, percentage | 105.50% | ||||
Debt instrument, redemption price, percentage of principal amount redeemed | 35.00% | ||||
Senior Notes | Changes of Control | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption price, percentage | 101.00% |
Long-Term Debt - Senior Notes R
Long-Term Debt - Senior Notes Redemption (Details) - Senior Notes | 12 Months Ended |
Jan. 02, 2022 | |
2023 Debt Redemption Period | |
Debt Instrument [Line Items] | |
Debt instrument, redemption price, percentage | 102.75% |
2024 Debt Redemption Period | |
Debt Instrument [Line Items] | |
Debt instrument, redemption price, percentage | 101.375% |
2025 and Thereafter Debt Redemption Period | |
Debt Instrument [Line Items] | |
Debt instrument, redemption price, percentage | 100.00% |
Long-Term Debt - Future Maturit
Long-Term Debt - Future Maturities of Borrowings (Details) - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 |
Debt Disclosure [Abstract] | ||
2022 | $ 15,002 | |
2023 | 15,002 | |
2024 | 15,002 | |
2025 | 180,125 | |
2026 | 0 | |
Thereafter | 300,000 | |
Total Debt | $ 525,131 | $ 585,215 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Jan. 03, 2021 | Jan. 02, 2022 | Dec. 02, 2020 | |
Interest Rate Swap | |||
Derivative [Line Items] | |||
Derivative, notional amount | $ 250 | ||
Loss on discontinuation of cash flow hedge due to forecasted transaction probable of not occurring | $ 3.9 | ||
Accumulated other comprehensive income (loss), gain (loss) of discontinued cash flow hedge, before tax | (8.7) | $ (3.8) | |
Cash flow hedge, amount expected to be reclassified in the next twelve months | 2.8 | ||
Foreign Currency Option | |||
Derivative [Line Items] | |||
Derivative, notional amount | 0 | ||
Foreign Currency Forward Contract | |||
Derivative [Line Items] | |||
Derivative, notional amount | $ 0 | $ 0 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Value of Derivative Instruments (Details) $ in Thousands | Jan. 03, 2021USD ($) |
Other Current Assets [Member] | |
Derivative [Line Items] | |
Derivative Asset | $ 37 |
Accounts Payable and Accrued Liabilities [Member] | |
Derivative [Line Items] | |
Derivative Liability | 0 |
Derivative instruments designated as hedging instruments | Cash flow hedging | Interest Rate Swap | Other Current Assets [Member] | |
Derivative [Line Items] | |
Derivative Asset | 0 |
Derivative instruments designated as hedging instruments | Cash flow hedging | Interest Rate Swap | Accounts Payable and Accrued Liabilities [Member] | |
Derivative [Line Items] | |
Derivative Liability | 0 |
Not designated as hedging instrument | Foreign Currency Option | Other Current Assets [Member] | |
Derivative [Line Items] | |
Derivative Asset | 37 |
Not designated as hedging instrument | Foreign Currency Option | Accounts Payable and Accrued Liabilities [Member] | |
Derivative [Line Items] | |
Derivative Liability | $ 0 |
Derivative Instruments - Cash F
Derivative Instruments - Cash Flow Hedges Included in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 03, 2021 | Dec. 29, 2019 | |
Derivative [Line Items] | ||
Loss recognized in other comprehensive income (loss) | $ (2,027) | $ (5,489) |
Derivative instruments designated as hedging instruments | Cash flow hedging | Foreign currency contracts gain | ||
Derivative [Line Items] | ||
Foreign currency contracts gain | 0 | 468 |
Derivative instruments designated as hedging instruments | Cash flow hedging | Interest rate swap contracts loss | ||
Derivative [Line Items] | ||
Interest rate swap contracts loss | $ (2,027) | $ (5,957) |
Derivative Instruments - Deriva
Derivative Instruments - Derivatives Not Designated as Hedging Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Not designated as hedging instrument | Foreign Currency Option | Other Expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Foreign currency options gain (loss) | $ 408 | $ 13 | $ (627) |
Leases - Narrative (Details)
Leases - Narrative (Details) | 12 Months Ended |
Jan. 02, 2022 | |
Lessee, Lease, Description [Line Items] | |
Lease renewal term | 5 years |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease contract term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease contract term | 20 years |
Leases - Balance Sheet Informat
Leases - Balance Sheet Information (Details) - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 90,561 | $ 98,013 |
Current portion of operating lease liabilities | 14,588 | 13,555 |
Operating lease liabilities | 77,905 | 86,468 |
Total operating lease liabilities | 92,493 | 100,023 |
Property, plant and equipment, net | 6,547 | 6,138 |
Accrued expenses | $ 1,837 | $ 1,496 |
Finance lease liability, current, location | Accrued expenses | Accrued expenses |
Other long-term liabilities | $ 3,201 | $ 2,688 |
Finance lease liability, long-term, location | Other long-term liabilities | Other long-term liabilities |
Total finance lease liabilities | $ 5,038 | $ 4,184 |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Leases [Abstract] | |||
Finance lease cost: Amortization of right-of-use assets | $ 2,653 | $ 1,251 | $ 890 |
Finance lease cost: Interest on lease liabilities | 140 | 86 | 51 |
Operating lease cost | 21,581 | 25,213 | 24,246 |
Short-term lease cost | 977 | 525 | 2,057 |
Variable lease cost | 2,831 | 3,970 | 3,665 |
Total lease cost | $ 28,182 | $ 31,045 | $ 30,909 |
Leases - Other Supplemental Inf
Leases - Other Supplemental Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Leases [Abstract] | |||
Operating cash flows from finance leases | $ 108 | $ 86 | $ 51 |
Operating cash flows from operating leases | 22,210 | 22,206 | 22,597 |
Financing cash flows from finance leases | 2,282 | 1,727 | 1,255 |
Right-of-use assets obtained in exchange for new finance lease liabilities | 3,259 | 2,546 | 2,240 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 13,330 | $ 2,504 | $ 12,655 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | Jan. 02, 2022 | Jan. 03, 2021 |
Leases [Abstract] | ||
Weighted-average remaining lease term – finance leases (in years) | 3 years 2 months 12 days | 3 years 4 months 6 days |
Weighted-average remaining lease term – operating leases (in years) | 9 years 11 months 19 days | 10 years 7 months 9 days |
Weighted-average discount rate – finance leases (percentage) | 2.82% | 2.64% |
Weighted-average discount rate – operating leases (percentage) | 5.87% | 5.98% |
Leases - Maturity of Lease Paym
Leases - Maturity of Lease Payments (Details) - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2022 | $ 17,883 | |
2023 | 13,734 | |
2024 | 12,189 | |
2025 | 10,455 | |
2026 | 10,655 | |
Thereafter | 60,618 | |
Total future minimum lease payments (undiscounted) | 125,534 | |
Less: Present value discount | (33,041) | |
Total lease liability | 92,493 | $ 100,023 |
Finance Lease, Liability, Payment, Due [Abstract] | ||
2022 | 1,919 | |
2023 | 1,541 | |
2024 | 1,161 | |
2025 | 466 | |
2026 | 150 | |
Thereafter | 49 | |
Total future minimum lease payments (undiscounted) | 5,286 | |
Less: Present value discount | (248) | |
Total lease liability | $ 5,038 | $ 4,184 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Apr. 05, 2020USD ($) | Jan. 02, 2022USD ($) | Jan. 03, 2021USD ($) | Dec. 29, 2019USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Number of operating segments | 2 | |||
Number of reportable segments | 2 | |||
Goodwill and Intangible Assets [Line Items] | ||||
WACC, minimum | 10.00% | |||
WACC, maximum | 10.50% | |||
Goodwill, impairment loss | $ (116,500) | $ (116,495) | ||
Fair value estimates of reporting units, threshold for no goodwill impairment, percent of decrease in fair value estimates | 10.00% | |||
Impairment of intangible assets, indefinite-lived | $ 4,800 | |||
Indefinite-lived intangible assets, net | $ 56,100 | 60,400 | ||
Intangible assets subject to amortization, net | 20,100 | 27,300 | ||
Amortization of acquired intangible assets | 5,636 | 5,457 | $ 5,903 | |
Intangible assets subject to amortization, accumulated amortization | 23,000 | 15,700 | ||
Finite-lived intangible asset, expected amortization, 2022 | 6,000 | |||
Finite-lived intangible asset, expected amortization, 2023 | 6,000 | |||
Finite-lived intangible asset, expected amortization, 2024 | 6,000 | |||
Americas | ||||
Goodwill and Intangible Assets [Line Items] | ||||
Reporting unit, percentage of fair value in excess of carrying amount | 90.00% | |||
EMEA | ||||
Goodwill and Intangible Assets [Line Items] | ||||
Goodwill, impairment loss | $ (99,200) | |||
Asia-Pacific | ||||
Goodwill and Intangible Assets [Line Items] | ||||
Goodwill, impairment loss | (17,300) | |||
Operating Segments | AMS | ||||
Goodwill and Intangible Assets [Line Items] | ||||
Goodwill, impairment loss | 0 | |||
Impairment of intangible assets, indefinite-lived | 2,700 | |||
Amortization of acquired intangible assets | 0 | 0 | 0 | |
Operating Segments | EAAA | ||||
Goodwill and Intangible Assets [Line Items] | ||||
Goodwill, impairment loss | (116,495) | |||
Impairment of intangible assets, indefinite-lived | $ 2,100 | |||
Amortization of acquired intangible assets | $ 5,636 | $ 5,457 | $ 5,903 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Changes in Carrying Amounts of Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Apr. 05, 2020 | Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Goodwill [Line Items] | ||||
Goodwill | $ 147,025 | $ 165,777 | $ 257,439 | |
Goodwill, impairment loss | $ (116,500) | (116,495) | ||
Goodwill, foreign currency translation | (18,752) | 24,833 | ||
Operating Segments | AMS | ||||
Goodwill [Line Items] | ||||
Goodwill | 108,505 | 122,344 | 116,202 | |
Goodwill, impairment loss | 0 | |||
Goodwill, foreign currency translation | (13,839) | 6,142 | ||
Operating Segments | EAAA | ||||
Goodwill [Line Items] | ||||
Goodwill | 38,520 | 43,433 | $ 141,237 | |
Goodwill, impairment loss | (116,495) | |||
Goodwill, foreign currency translation | $ (4,913) | $ 18,691 |
Preferred Stock - Narrative (De
Preferred Stock - Narrative (Details) - $ / shares | Jan. 02, 2022 | Jan. 03, 2021 |
Equity [Abstract] | ||
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) | 12 Months Ended | |||||
Jan. 02, 2022USD ($)$ / sharesshares | Jan. 03, 2021USD ($)$ / sharesshares | Dec. 29, 2019USD ($)$ / sharesshares | May 22, 2020shares | Jun. 30, 2017USD ($) | May 31, 2015shares | |
Shareholders' Equity [Line Items] | ||||||
Common stock, shares authorized (in shares) | shares | 120,000,000 | 120,000,000 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.10 | $ 0.10 | ||||
Common stock, cash dividends declared (in dollars per share) | $ / shares | 0.04 | 0.095 | $ 0.26 | |||
Common stock, cash dividends paid (in dollars per share) | $ / shares | $ 0.04 | $ 0.095 | $ 0.26 | |||
Stock based compensation rate at which stock options exercisable (percentage) | 100.00% | |||||
Number of shares authorized for issuance or transfer (in shares) | shares | 3,700,000 | 5,161,020 | ||||
Number of authorized stock reduced by issuance of other than stock option award | 1.33 | |||||
Outstanding at end of year (in shares) | shares | 0 | 0 | ||||
Exercisable at end of year (in shares) | shares | 0 | 0 | ||||
Stock Options | ||||||
Shareholders' Equity [Line Items] | ||||||
Stock compensation expense (benefit) | $ | $ 0 | $ 0 | $ 0 | |||
Stock Options | Minimum | ||||||
Shareholders' Equity [Line Items] | ||||||
Vesting period (in years) | 1 year | |||||
Expiration period (in years) | 3 years | |||||
Stock Options | Maximum | ||||||
Shareholders' Equity [Line Items] | ||||||
Vesting period (in years) | 5 years | |||||
Expiration period (in years) | 10 years | |||||
Restricted Stock | ||||||
Shareholders' Equity [Line Items] | ||||||
Stock compensation expense (benefit) | $ | $ 3,800,000 | $ 1,300,000 | $ 3,300,000 | |||
Stock awards granted (in shares) | shares | 428,400 | 308,100 | 223,500 | |||
Stock awards granted, weighted average grant date fair value (in dollars per share) | $ / shares | $ 14.26 | $ 13.08 | $ 17.54 | |||
Unrecognized compensation cost related to unvested restricted stock | $ | $ 5,100,000 | |||||
Restricted Stock | Minimum | ||||||
Shareholders' Equity [Line Items] | ||||||
Vesting period (in years) | 1 year | |||||
Restricted Stock | Maximum | ||||||
Shareholders' Equity [Line Items] | ||||||
Vesting period (in years) | 3 years | |||||
Performance Shares | ||||||
Shareholders' Equity [Line Items] | ||||||
Stock compensation expense (benefit) | $ | $ 1,700,000 | $ (1,800,000) | $ 5,400,000 | |||
Stock awards granted (in shares) | shares | 375,800 | |||||
Stock awards granted, weighted average grant date fair value (in dollars per share) | $ / shares | $ 13.94 | |||||
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 related to unvested performance share awards | $ | $ 8,700,000 | |||||
Performance Shares | Minimum | ||||||
Shareholders' Equity [Line Items] | ||||||
Vesting period (in years) | 1 year | |||||
Performance Shares | Maximum | ||||||
Shareholders' Equity [Line Items] | ||||||
Vesting period (in years) | 3 years | |||||
Restricted Stock and Performance Shares | ||||||
Shareholders' Equity [Line Items] | ||||||
Compensation expense, tax benefit | $ | $ 700,000 | $ 600,000 | $ 1,400,000 | |||
Common Stock | ||||||
Shareholders' Equity [Line Items] | ||||||
Stock repurchase program, authorized amount to be repurchased | $ | $ 100,000,000 | |||||
Stock repurchased and retired (in shares) | shares | 1,556,000 | |||||
Weighted average purchase price (in dollars per share) | $ / shares | $ 16.13 |
Shareholders' Equity - Activity
Shareholders' Equity - Activity in Shareholders' Equity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance at beginning of year | $ 326,538 | ||
Net income (loss) | 55,234 | $ (71,929) | $ 79,200 |
Pension liability adjustment | (15,400) | 12,588 | 13,090 |
Foreign currency translation adjustment | (40,110) | 52,808 | $ (11,652) |
Reclassification out of accumulated other comprehensive loss - discontinued cash flow hedge | (3,468) | ||
Balance at end of year | $ 363,398 | $ 326,538 | |
COMMON STOCK | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance at beginning of year (in shares) | 58,664,000 | 58,416,000 | 59,508,000 |
Balance at beginning of year | $ 5,865 | $ 5,842 | $ 5,951 |
Issuances of stock (other than restricted stock) (in shares) | 239,000 | 511,000 | |
Issuances of stock (other than restricted stock) | $ 24 | $ 51 | |
Restricted stock issuances (in shares) | 429,000 | 304,000 | 223,000 |
Restricted stock issuances | $ 43 | $ 30 | $ 22 |
Compensation expense related to stock awards, net of forfeitures (in shares) | (38,000) | (295,000) | (270,000) |
Compensation expense related to stock awards, net of forfeitures | $ (3) | $ (31) | $ (26) |
Share repurchases (in shares) | (1,556,000) | ||
Share repurchases | $ (156) | ||
Balance at end of year (in shares) | 59,055,000 | 58,664,000 | 58,416,000 |
Balance at end of year | $ 5,905 | $ 5,865 | $ 5,842 |
ADDITIONAL PAID-IN CAPITAL | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance at beginning of year | 247,920 | 250,306 | 270,269 |
Issuances of stock (other than restricted stock) | 195 | 636 | |
Restricted stock issuances | 6,066 | 3,999 | 3,900 |
Unamortized compensation expense related to restricted stock awards | (6,109) | (4,030) | (4,139) |
Compensation expense related to stock awards, net of forfeitures | 5,233 | (2,550) | 4,638 |
Share repurchases | (24,998) | ||
Balance at end of year | 253,110 | 247,920 | 250,306 |
RETAINED EARNINGS | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance at beginning of year | 208,562 | 286,056 | 222,214 |
Net income (loss) | 55,234 | (71,929) | 79,200 |
Cash dividends declared | (2,362) | (5,565) | (15,358) |
Balance at end of year | 261,434 | 208,562 | 286,056 |
PENSION LIABILITY | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance at beginning of year | (69,288) | (56,700) | (43,610) |
Pension liability adjustment | 15,400 | (12,588) | (13,090) |
Balance at end of year | (53,888) | (69,288) | (56,700) |
FOREIGN CURRENCY TRANSLATION ADJUSTMENT | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance at beginning of year | (60,331) | (113,139) | (101,487) |
Foreign currency translation adjustment | (40,110) | 52,808 | (11,652) |
Balance at end of year | (100,441) | (60,331) | (113,139) |
CASH FLOW HEDGE | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance at beginning of year | (6,190) | (4,163) | 1,326 |
Cash flow hedge unrealized loss | (2,027) | (5,489) | |
Balance at end of year | (6,190) | $ (4,163) | |
CASH FLOW HEDGE | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance at beginning of year | (6,190) | ||
Reclassification out of accumulated other comprehensive loss - discontinued cash flow hedge | 3,468 | ||
Balance at end of year | $ (2,722) | $ (6,190) |
Shareholders' Equity - Restrict
Shareholders' Equity - Restricted Stock Outstanding (Details) - Restricted Stock - $ / shares | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Shares | |||
Outstanding at beginning of year (in shares) | 436,900 | ||
Granted (in shares) | 428,400 | 308,100 | 223,500 |
Vested (in shares) | (167,200) | ||
Forfeited or cancelled (in shares) | (14,300) | ||
Outstanding at end of year (in shares) | 683,800 | 436,900 | |
Weighted Average Grant Date Fair Value | |||
Outstanding at beginning of year, weighted average grant date fair value (in dollars per share) | $ 24.73 | ||
Granted, weighted average grant date fair value (in dollars per share) | 14.26 | $ 13.08 | $ 17.54 |
Vested, weighted average grant date fair value (in dollars per share) | 13.68 | ||
Forfeited or cancelled, weighted average grant date fair value (in dollars per share) | 15.48 | ||
Outstanding at end of year, weighted average grant date fair value (in dollars per share) | $ 21.06 | $ 24.73 |
Shareholders' Equity - Performa
Shareholders' Equity - Performance Shares Outstanding (Details) - Performance Shares | 12 Months Ended |
Jan. 02, 2022$ / sharesshares | |
Shares | |
Outstanding at beginning of year (in shares) | shares | 405,300 |
Granted (in shares) | shares | 375,800 |
Vested (in shares) | shares | 0 |
Forfeited or cancelled (in shares) | shares | (63,000) |
Outstanding at end of year (in shares) | shares | 718,100 |
Weighted Average Grant Date Fair Value | |
Outstanding at beginning of year, weighted average grant date fair value (in dollars per share) | $ / shares | $ 16.94 |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | 13.94 |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | 0 |
Forfeited or cancelled, weighted average grant date fair value (in dollars per share) | $ / shares | 21.43 |
Outstanding at end of year, weighted average grant date fair value (in dollars per share) | $ / shares | $ 14.98 |
Earnings Per Share - Basic and
Earnings Per Share - Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Numerator: | |||
Net income (loss) | $ 55,234 | $ (71,929) | $ 79,200 |
Distributed and undistributed earnings available to participating securities, basic | (602) | (42) | (625) |
Distributed and undistributed earnings available to participating securities, diluted | (602) | (42) | (625) |
Distributed and undistributed earnings (loss) available to common shareholders, basic | 54,632 | (71,971) | 78,575 |
Distributed and undistributed earnings (loss) available to common shareholders, diluted | $ 54,632 | $ (71,971) | $ 78,575 |
Denominator: | |||
Weighted average shares outstanding (in shares) | 58,328 | 58,110 | 58,475 |
Participating securities (in shares) | 643 | 437 | 468 |
Shares for basic earnings (loss) per share (in shares) | 58,971 | 58,547 | 58,943 |
Dilutive effect of stock options (in shares) | 0 | 0 | 5 |
Shares for diluted earnings (loss) per share (in shares) | 58,971 | 58,547 | 58,948 |
Earnings (loss) per share - basic (in dollars per share) | $ 0.94 | $ (1.23) | $ 1.34 |
Earnings (loss) per share - diluted (in dollars per share) | $ 0.94 | $ (1.23) | $ 1.34 |
Restructuring and Other Charg_3
Restructuring and Other Charges - Restructuring, Asset Impairment and Other Charges by Reportable Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Restructuring Activities [Line Items] | |||
Restructuring, asset impairment and other charges | $ 3,621 | $ (4,626) | $ 12,947 |
Operating Segments | AMS | |||
Restructuring Activities [Line Items] | |||
Restructuring, asset impairment and other charges | (1) | (288) | 2,590 |
Operating Segments | EAAA | |||
Restructuring Activities [Line Items] | |||
Restructuring, asset impairment and other charges | $ 3,622 | $ (4,338) | $ 10,357 |
Restructuring and Other Charg_4
Restructuring and Other Charges - Summary of Restructuring Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 29, 2019 | Sep. 29, 2019 | Dec. 30, 2018 | Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Restructuring Activities [Line Items] | ||||||
Restructuring reserve balance | $ 11,445 | $ 11,907 | $ 2,354 | $ 1,064 | $ 11,445 | |
Restructuring, asset impairment and other charges | 3,621 | (4,626) | 12,947 | |||
Restructuring charges | (4,626) | 7,944 | ||||
Deductions | (681) | (5,755) | (8,357) | |||
Charged to other accounts | (1,650) | (49) | ||||
2021 Restructuring Plan | Workforce Reduction | ||||||
Restructuring Activities [Line Items] | ||||||
Restructuring reserve balance | 0 | 0 | 2,257 | 0 | 0 | |
Restructuring, asset impairment and other charges | 2,257 | |||||
Restructuring charges | 0 | 0 | ||||
Deductions | 0 | 0 | 0 | |||
2021 Restructuring Plan | Asset Impairment | ||||||
Restructuring Activities [Line Items] | ||||||
Restructuring, asset impairment and other charges | 1,650 | |||||
Charged to other accounts | (1,650) | |||||
2019 Restructuring Plan | ||||||
Restructuring Activities [Line Items] | ||||||
Restructuring charges | 9,000 | |||||
2019 Restructuring Plan | Workforce Reduction | ||||||
Restructuring Activities [Line Items] | ||||||
Restructuring reserve balance | 8,634 | 0 | 97 | 1,064 | 8,634 | |
Restructuring, asset impairment and other charges | (286) | |||||
Restructuring charges | 8,800 | (3,704) | 8,827 | |||
Deductions | (681) | (3,866) | (193) | |||
2019 Restructuring Plan | Other Exit Costs | ||||||
Restructuring Activities [Line Items] | ||||||
Restructuring reserve balance | 139 | 0 | 0 | 0 | 139 | |
Restructuring, asset impairment and other charges | 0 | |||||
Restructuring charges | 200 | 0 | 188 | |||
Deductions | 0 | (139) | 0 | |||
Charged to other accounts | (49) | |||||
2018 Restructuring Plan | ||||||
Restructuring Activities [Line Items] | ||||||
Restructuring, asset impairment and other charges | 20,500 | |||||
2018 Restructuring Plan | Workforce Reduction | ||||||
Restructuring Activities [Line Items] | ||||||
Restructuring reserve balance | 1,898 | 10,763 | 0 | 0 | 1,898 | |
Restructuring, asset impairment and other charges | 0 | |||||
Restructuring charges | 10,800 | (223) | (1,743) | |||
Deductions | 0 | (1,675) | (7,122) | |||
2018 Restructuring Plan | Other Exit Costs | ||||||
Restructuring Activities [Line Items] | ||||||
Restructuring reserve balance | $ 774 | 1,144 | 0 | 0 | 774 | |
Restructuring, asset impairment and other charges | 0 | |||||
Restructuring charges | $ (700) | $ 1,100 | (699) | 672 | ||
Deductions | $ 0 | $ (75) | $ (1,042) |
Restructuring and Other Charg_5
Restructuring and Other Charges - Narrative (Details) $ in Thousands | Sep. 08, 2021 | Dec. 23, 2019USD ($)office | Dec. 29, 2018USD ($)Employee | Dec. 29, 2019USD ($) | Sep. 29, 2019USD ($) | Dec. 30, 2018USD ($) | Jan. 02, 2022USD ($) | Jan. 03, 2021USD ($) | Dec. 29, 2019USD ($) | Jan. 01, 2023USD ($) |
Restructuring Activities [Line Items] | ||||||||||
Restructuring, asset impairment and other charges | $ 3,621 | $ (4,626) | $ 12,947 | |||||||
Restructuring reserve | $ 11,445 | $ 11,907 | 2,354 | 1,064 | 11,445 | |||||
Other write-off | $ 5,000 | |||||||||
Restructuring charges | (4,626) | 7,944 | ||||||||
Operating Segments | AMS | ||||||||||
Restructuring Activities [Line Items] | ||||||||||
Restructuring, asset impairment and other charges | (1) | (288) | 2,590 | |||||||
Other write-off | 2,800 | |||||||||
Operating Segments | EAAA | ||||||||||
Restructuring Activities [Line Items] | ||||||||||
Restructuring, asset impairment and other charges | 3,622 | (4,338) | 10,357 | |||||||
Other write-off | $ 2,200 | |||||||||
2021 Restructuring Plan | ||||||||||
Restructuring Activities [Line Items] | ||||||||||
Number of employees eliminated | 188 | |||||||||
Restructuring, expected savings | 1,700 | |||||||||
2021 Restructuring Plan | Minimum | ||||||||||
Restructuring Activities [Line Items] | ||||||||||
Future cash expenditures for restructuring | 3,000 | |||||||||
2021 Restructuring Plan | Maximum | ||||||||||
Restructuring Activities [Line Items] | ||||||||||
Future cash expenditures for restructuring | 4,000 | |||||||||
2021 Restructuring Plan | Operating Segments | EAAA | ||||||||||
Restructuring Activities [Line Items] | ||||||||||
Restructuring, asset impairment and other charges | 3,900 | |||||||||
2021 Restructuring Plan | Operating Segments | EAAA | Minimum | ||||||||||
Restructuring Activities [Line Items] | ||||||||||
Restructuring, asset impairment and other charges | 4,000 | |||||||||
2021 Restructuring Plan | Operating Segments | EAAA | Maximum | ||||||||||
Restructuring Activities [Line Items] | ||||||||||
Restructuring, asset impairment and other charges | 5,000 | |||||||||
2021 Restructuring Plan | Employee Severance | ||||||||||
Restructuring Activities [Line Items] | ||||||||||
Restructuring, asset impairment and other charges | 2,257 | |||||||||
Restructuring reserve | 0 | 0 | 2,257 | 0 | 0 | |||||
Restructuring charges | 0 | 0 | ||||||||
2021 Restructuring Plan | Employee Severance | Operating Segments | EAAA | ||||||||||
Restructuring Activities [Line Items] | ||||||||||
Restructuring, asset impairment and other charges | 2,200 | |||||||||
2021 Restructuring Plan | Deferred Bonus | Subsequent Event | Operating Segments | EAAA | ||||||||||
Restructuring Activities [Line Items] | ||||||||||
Restructuring, asset impairment and other charges | $ 500 | |||||||||
2021 Restructuring Plan | Asset Impairment | ||||||||||
Restructuring Activities [Line Items] | ||||||||||
Restructuring, asset impairment and other charges | 1,650 | |||||||||
2021 Restructuring Plan | Asset Impairment | Subsequent Event | Operating Segments | EAAA | ||||||||||
Restructuring Activities [Line Items] | ||||||||||
Restructuring, asset impairment and other charges | $ 2,000 | |||||||||
2019 Restructuring Plan | ||||||||||
Restructuring Activities [Line Items] | ||||||||||
Number of employees eliminated | 105 | |||||||||
Number of offices | office | 2 | |||||||||
Restructuring charges | 9,000 | |||||||||
Future cash expenditures for restructuring | 9,000 | |||||||||
Restructuring, expected savings | 6,000 | |||||||||
2019 Restructuring Plan | Operating Segments | AMS | ||||||||||
Restructuring Activities [Line Items] | ||||||||||
Restructuring charges | 1,100 | |||||||||
Cumulative restructuring and other charges incurred to date | 800 | |||||||||
2019 Restructuring Plan | Operating Segments | EAAA | ||||||||||
Restructuring Activities [Line Items] | ||||||||||
Restructuring charges | 7,900 | |||||||||
Cumulative restructuring and other charges incurred to date | 4,200 | |||||||||
2019 Restructuring Plan | Employee Severance | ||||||||||
Restructuring Activities [Line Items] | ||||||||||
Restructuring, asset impairment and other charges | (286) | |||||||||
Adjustment to previously recorded severance expense | (300) | (3,700) | ||||||||
Restructuring reserve | 8,634 | 0 | 97 | 1,064 | 8,634 | |||||
Restructuring charges | 8,800 | (3,704) | 8,827 | |||||||
2019 Restructuring Plan | Other Exit Costs | ||||||||||
Restructuring Activities [Line Items] | ||||||||||
Restructuring, asset impairment and other charges | 0 | |||||||||
Restructuring reserve | 139 | 0 | 0 | 0 | 139 | |||||
Restructuring charges | 200 | 0 | 188 | |||||||
2018 Restructuring Plan | ||||||||||
Restructuring Activities [Line Items] | ||||||||||
Restructuring, asset impairment and other charges | 20,500 | |||||||||
Adjustment to previously recorded severance expense | (900) | |||||||||
Number of employees eliminated | Employee | 200 | |||||||||
Asset impairment charges | 8,600 | |||||||||
Future cash expenditures for restructuring | $ 12,000 | |||||||||
2018 Restructuring Plan | Operating Segments | AMS | ||||||||||
Restructuring Activities [Line Items] | ||||||||||
Restructuring, asset impairment and other charges | 7,700 | |||||||||
Cumulative restructuring and other charges incurred to date | 6,400 | |||||||||
2018 Restructuring Plan | Operating Segments | EAAA | ||||||||||
Restructuring Activities [Line Items] | ||||||||||
Restructuring, asset impairment and other charges | 12,800 | |||||||||
Cumulative restructuring and other charges incurred to date | 12,100 | |||||||||
2018 Restructuring Plan | Employee Severance | ||||||||||
Restructuring Activities [Line Items] | ||||||||||
Restructuring, asset impairment and other charges | 0 | |||||||||
Adjustment to previously recorded severance expense | (1,700) | |||||||||
Restructuring reserve | 1,898 | 10,763 | 0 | 0 | 1,898 | |||||
Restructuring charges | 10,800 | (223) | (1,743) | |||||||
Future cash expenditures for restructuring | $ 10,800 | |||||||||
2018 Restructuring Plan | Other Exit Costs | ||||||||||
Restructuring Activities [Line Items] | ||||||||||
Restructuring, asset impairment and other charges | 0 | |||||||||
Restructuring reserve | $ 774 | 1,144 | $ 0 | 0 | 774 | |||||
Restructuring charges | $ (700) | $ 1,100 | $ (699) | $ 672 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Income Tax Disclosure [Line Items] | ||||
Effective income tax rate (percentage) | 24.00% | 9.40% | 22.20% | |
Federal statutory income tax rate (percentage) | 21.00% | 21.00% | 21.00% | |
Deferred payroll taxes under CARES Act | $ 4,100 | |||
Deferred tax assets, capitalized costs | $ 4,805 | 0 | ||
Deferred tax assets, prepaids, accruals and reserves | 8,777 | 3,659 | ||
Deferred tax liabilities, intangible assets | 30,736 | 30,745 | ||
Reduction of non-current deferred tax assets by unrecognized tax benefits | 2,800 | 3,000 | ||
Unrecognized tax benefits | 8,220 | 10,799 | $ 25,486 | $ 28,143 |
Previously unrecognized tax benefits recognized as income tax benefits | (2,663) | (14,962) | $ (3,324) | |
Amount of unrecognized tax benefit reasonably possible to be recognized in next twelve months | 2,500 | |||
Unrecognized tax benefits that would impact effective tax rate | 7,500 | |||
Unrecognized tax benefits, cash required if unfavorably settled | 5,400 | |||
Unrecognized tax benefit, accrued interest and penalties | 900 | |||
Discontinued Operations | ||||
Income Tax Disclosure [Line Items] | ||||
Previously unrecognized tax benefits recognized as income tax benefits | $ 12,700 | |||
Foreign Tax Authority | ||||
Income Tax Disclosure [Line Items] | ||||
Tax credit carryforward | 10,100 | |||
State and Local Jurisdiction | Continuing Operations | ||||
Income Tax Disclosure [Line Items] | ||||
Net operating loss carryforwards | 153,000 | |||
Valuation allowances on net operating loss carryforwards | 90,100 | |||
State and Local Jurisdiction | Discontinued Operations | ||||
Income Tax Disclosure [Line Items] | ||||
Net operating loss carryforwards | 25,700 | |||
Valuation allowances on net operating loss carryforwards | $ 25,700 |
Income Taxes - Income (Loss) Be
Income Taxes - Income (Loss) Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Income Tax Disclosure [Abstract] | |||
U.S. operations | $ 4,460 | $ (7,104) | $ 46,463 |
Foreign operations | 68,173 | (72,316) | 55,353 |
Income (loss) before income tax expense | $ 72,633 | $ (79,420) | $ 101,816 |
Income Taxes - Provisions for F
Income Taxes - Provisions for Federal, Foreign and State Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Current expense (benefit): | |||
Federal | $ 1,987 | $ (22,976) | $ 8,414 |
Foreign | 21,372 | 14,822 | 14,513 |
State | 1,418 | 529 | 2,312 |
Current expense (benefit) | 24,777 | (7,625) | 25,239 |
Deferred expense (benefit): | |||
Federal | (2,841) | 1,787 | (625) |
Foreign | (3,846) | (2,422) | (2,198) |
State | (691) | 769 | 200 |
Deferred expense (benefit) | (7,378) | 134 | (2,623) |
Total income tax expense (benefit) | $ 17,399 | $ (7,491) | $ 22,616 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income taxes at U.S. federal statutory rate | $ 15,253 | $ (16,678) | $ 21,381 |
State income taxes, net of federal tax effect | (87) | (2,033) | 2,321 |
Non-deductible business expenses | 330 | 1,792 | 933 |
Non-deductible employee compensation | 1,213 | (210) | 1,453 |
Tax effects of Company-owned life insurance | (762) | (898) | (636) |
Tax effects of undistributed earnings from foreign subsidiaries not deemed to be indefinitely reinvested | 1,219 | 748 | (183) |
Foreign and U.S. tax effects attributable to foreign operations | 1,748 | (11,991) | 783 |
Valuation allowance effect | 1,349 | 12,927 | 133 |
Research and development tax credits | (793) | (780) | (700) |
Goodwill impairment | 0 | 24,464 | 0 |
Unrecognized tax benefits | (2,663) | (14,962) | (3,324) |
Other | 592 | 130 | 455 |
Total income tax expense (benefit) | $ 17,399 | $ (7,491) | $ 22,616 |
Income Taxes - Net Deferred Tax
Income Taxes - Net Deferred Tax Liabilities (Details) - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 |
Deferred tax assets | ||
Lease liability | $ 25,426 | $ 28,094 |
Net operating loss and interest carryforwards | 5,962 | 4,031 |
Federal tax credit carryforwards | 10,054 | 10,412 |
Derivative instruments | 1,126 | 2,680 |
Deferred compensation | 19,487 | 20,244 |
Inventory | 3,100 | 4,004 |
Prepaids, accruals and reserves | 8,777 | 3,659 |
Capitalized costs | 4,805 | 0 |
Pensions | 6,431 | 11,485 |
Other | 175 | 50 |
Deferred tax asset, gross | 85,343 | 84,659 |
Valuation allowance | (15,338) | (13,919) |
Deferred tax asset, net | 70,005 | 70,740 |
Deferred tax liabilities | ||
Property and equipment | 25,352 | 27,322 |
Intangible assets | 30,736 | 30,745 |
Lease asset | 24,856 | 27,268 |
Foreign currency | 458 | 606 |
Foreign withholding and U.S. state taxes on unremitted earnings | 1,332 | 931 |
Deferred tax liabilities | 82,734 | 86,872 |
Net deferred tax liabilities | $ 12,729 | $ 16,132 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Reconciliation of Unrecognized Tax Benefits | |||
Balance at beginning of year | $ 10,799 | $ 25,486 | $ 28,143 |
Increases related to tax positions taken during the current year | 265 | 271 | 318 |
Increases related to tax positions taken during the prior years | 198 | 536 | 1,093 |
Decreases related to tax positions taken during the prior years | 0 | (673) | (2,809) |
Decreases related to lapse of applicable statute of limitations | (2,309) | (14,992) | (1,266) |
Changes due to settlements | (836) | 0 | 0 |
Changes due to foreign currency translation | 103 | 171 | 7 |
Balance at end of year | $ 8,220 | $ 10,799 | $ 25,486 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | Feb. 14, 2020 | Jan. 03, 2021 |
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, Other Claims | ||
Loss Contingencies [Line Items] | ||
Damages sought | $ 100 | |
Securities and Exchange Commission (SEC) fine | ||
Loss Contingencies [Line Items] | ||
SEC fine | $ 5 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) | 12 Months Ended | ||
Jan. 02, 2022USD ($)Year | Jan. 03, 2021USD ($) | Dec. 29, 2019USD ($) | |
Employee Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan eligibility period | 6 months | ||
Multiemployer contributions percentage | 5.00% | ||
Multiemployer plan, pension, insignificant, employer contribution, cost | $ 2,600,000 | $ 2,500,000 | |
Multiemployer plan funded status | 95.00% | ||
Defined benefit plan, accumulated other comprehensive income (loss) | $ 53,888,000 | $ 69,288,000 | |
Weighted average discount rate for level 3 plan assets, foreign plans | 1.01% | 0.52% | |
Minimum | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Unobservable input for level 3 plan assets, foreign plans | 1.00% | 0.50% | |
Maximum | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Unobservable input for level 3 plan assets, foreign plans | 1.85% | 1.30% | |
401(k) Plan | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Employer matching contribution | $ 3,000,000 | $ 1,600,000 | $ 3,300,000 |
Employer discretionary contribution | 0 | 0 | 0 |
Foreign Plan | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Curtailment, net actuarial gain recognized in accumulated other comprehensive income | 2,400,000 | ||
Accumulated net actuarial loss, after impact of curtailment | 16,700,000 | ||
Curtailment, reclassification of prior service cost from accumulated other comprehensive income | 500,000 | ||
Liability, defined benefit pension plan | 4,500,000 | ||
Pension expense | 2,500,000 | 2,500,000 | $ 2,300,000 |
Defined benefit plan, funded status benefit assets (liability) | 38,808,000 | 60,912,000 | |
Defined benefit plan, accumulated other comprehensive income (loss) | 45,209,000 | 58,257,000 | |
Defined benefit plan, expected amortization, next fiscal year | $ 1,400,000 | ||
Number of defined benefit plans | 3 | ||
Defined benefit plan, other comprehensive (income) loss | $ 11,800,000 | ||
Other comprehensive (income) loss, defined benefit plan, before reclassification adjustment, tax | 3,900,000 | ||
Defined benefit plan, actuarial gain (loss) | 10,300,000 | ||
Other comprehensive income (loss), defined benefit plan, gain (loss) arising during period, tax | 3,400,000 | ||
Defined benefit plan, loss due to amortization | (1,500,000) | ||
Other comprehensive income (loss), defined benefit plan, gain (loss), reclassification adjustment from AOCI, tax | 500,000 | ||
Defined benefit plan, expected future contributions | 4,100,000 | ||
Accumulated benefit obligation | 324,408,000 | 364,443,000 | |
Company contributions | 5,393,000 | 4,451,000 | |
Foreign Plan | Accumulated Defined Benefit Plans Adjustment Attributable to Parent | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, accumulated other comprehensive income, tax | 15,400,000 | ||
United States | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, other comprehensive (income) loss | 2,300,000 | ||
Other comprehensive (income) loss, defined benefit plan, before reclassification adjustment, tax | 1,000,000 | ||
Defined benefit plan, actuarial gain (loss) | 1,800,000 | ||
Other comprehensive income (loss), defined benefit plan, gain (loss) arising during period, tax | 800,000 | ||
Defined benefit plan, loss due to amortization | (500,000) | ||
Other comprehensive income (loss), defined benefit plan, gain (loss), reclassification adjustment from AOCI, tax | $ 200,000 | ||
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 | $ 30,100,000 | 33,800,000 | |
Company contributions | 2,000,000 | ||
Nonqualified Savings Plans | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Deferred compensation liability | 34,200,000 | 33,100,000 | |
Deferred compensation investments | 35,578,000 | 33,939,000 | |
Nonqualified Savings Plans | Mutual Funds | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Deferred compensation investments | 15,600,000 | ||
Nonqualified Savings Plans | Insurance Contracts | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Deferred compensation investments | $ 20,000,000 | $ 33,900,000 |
Employee Benefit Plans - Funded
Employee Benefit Plans - Funded Status of Defined Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Amounts recognized in accumulated other comprehensive loss, after tax: | |||
Total amount recognized | $ 53,888 | $ 69,288 | |
Foreign Plan | |||
Change in benefit obligation: | |||
Benefit obligation, beginning of year | 364,443 | 314,841 | |
Service cost | 1,087 | 1,070 | $ 1,589 |
Interest cost | 2,687 | 4,038 | 5,676 |
Benefits and expenses paid | (11,339) | (12,041) | |
Actuarial loss (gain) | (19,723) | 31,618 | |
Currency translation adjustment | (12,747) | 24,917 | |
Benefit obligation, end of year | 324,408 | 364,443 | 314,841 |
Change in plan assets: | |||
Plan assets, beginning of year | 303,531 | 266,450 | |
Actual return on assets | (2,817) | 25,239 | |
Company contributions | 5,393 | 4,451 | |
Benefits paid | (11,339) | (12,041) | |
Currency translation adjustment | (9,168) | 19,432 | |
Plan assets, end of year | 285,600 | 303,531 | 266,450 |
Amounts recognized in the consolidated balance sheets | |||
Other assets | 10,975 | 0 | |
Current liabilities | (1,049) | (1,089) | |
Non-current liabilities | (48,734) | (59,823) | |
Funded status | (38,808) | (60,912) | |
Amounts recognized in accumulated other comprehensive loss, after tax: | |||
Unrecognized actuarial loss | 45,209 | 58,257 | |
Unamortized prior service credits | 0 | 0 | |
Total amount recognized | 45,209 | 58,257 | |
Accumulated benefit obligation | 324,408 | 364,443 | |
Projected benefit obligation | 324,408 | 364,443 | 314,841 |
Plan assets | 10,975 | 0 | |
UK Plan | |||
Change in benefit obligation: | |||
Benefit obligation, beginning of year | 198,215 | ||
Benefit obligation, end of year | 181,997 | 198,215 | |
Amounts recognized in the consolidated balance sheets | |||
Other assets | 192,971 | 193,991 | |
Amounts recognized in accumulated other comprehensive loss, after tax: | |||
Accumulated benefit obligation | 181,997 | 198,215 | |
Projected benefit obligation | 181,997 | 198,215 | |
Plan assets | 192,971 | 193,991 | |
Dutch Plan | |||
Change in benefit obligation: | |||
Benefit obligation, beginning of year | 116,379 | ||
Benefit obligation, end of year | 97,108 | 116,379 | |
Amounts recognized in the consolidated balance sheets | |||
Other assets | 92,629 | 109,540 | |
Amounts recognized in accumulated other comprehensive loss, after tax: | |||
Accumulated benefit obligation | 97,108 | 116,379 | |
Projected benefit obligation | 97,108 | 116,379 | |
Plan assets | 92,629 | 109,540 | |
Nora Plan | |||
Change in benefit obligation: | |||
Benefit obligation, beginning of year | 49,849 | ||
Benefit obligation, end of year | 45,303 | 49,849 | |
Amounts recognized in the consolidated balance sheets | |||
Other assets | 0 | 0 | |
Amounts recognized in accumulated other comprehensive loss, after tax: | |||
Accumulated benefit obligation | 45,303 | 49,849 | |
Projected benefit obligation | 45,303 | 49,849 | |
Plan assets | 0 | 0 | |
United States | |||
Change in benefit obligation: | |||
Benefit obligation, beginning of year | 33,834 | 31,740 | |
Interest cost | 706 | 938 | 1,154 |
Benefits and expenses paid | (1,965) | (2,030) | |
Actuarial loss (gain) | (2,522) | 3,186 | |
Benefit obligation, end of year | 30,053 | 33,834 | 31,740 |
Change in plan assets: | |||
Company contributions | 2,000 | ||
Amounts recognized in the consolidated balance sheets | |||
Current liabilities | (1,873) | (2,030) | |
Non-current liabilities | (28,180) | (31,804) | |
Amounts recognized in accumulated other comprehensive loss, after tax: | |||
Unrecognized actuarial loss | 8,679 | 11,031 | |
Accumulated benefit obligation | 30,100 | 33,800 | |
Projected benefit obligation | $ 30,053 | $ 33,834 | $ 31,740 |
Employee Benefit Plans - Net Pe
Employee Benefit Plans - Net Periodic Benefit Cost (Details) - Foreign Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Employee Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 1,087 | $ 1,070 | $ 1,589 |
Interest cost | 2,687 | 4,038 | 5,676 |
Expected return on plan assets | (3,312) | (4,256) | (5,561) |
Amortization of prior service cost | 114 | 106 | 63 |
Amortization of net actuarial (gains) losses | 1,968 | 1,549 | 991 |
Curtailment gain | 0 | 0 | (453) |
Net periodic benefit cost | $ 2,544 | $ 2,507 | $ 2,305 |
Employee Benefit Plans - Assump
Employee Benefit Plans - Assumptions Used to Determine Net Periodic (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Foreign Plan | |||
Weighted average assumptions used to determine net periodic benefit cost: | |||
Discount rate (percentage) | 0.90% | 1.00% | 1.90% |
Expected return on plan assets (percentage) | 1.50% | 1.20% | 2.10% |
Rate of compensation (percentage) | 0.00% | 0.00% | 1.75% |
Weighted average assumptions used to determine benefit obligations: | |||
Discount rate | 1.60% | 1.00% | 1.70% |
Rate of compensation | 0.00% | 0.00% | 1.75% |
Components of net periodic benefit cost: | |||
Service cost | $ 1,087 | $ 1,070 | $ 1,589 |
Interest cost | 2,687 | 4,038 | 5,676 |
Amortizations | 1,968 | 1,549 | 991 |
Net periodic benefit cost | $ 2,544 | $ 2,507 | $ 2,305 |
United States | |||
Weighted average assumptions used to determine net periodic benefit cost: | |||
Discount rate (percentage) | 2.15% | 3.05% | 4.10% |
Weighted average assumptions used to determine benefit obligations: | |||
Discount rate | 2.65% | 2.15% | 3.05% |
Components of net periodic benefit cost: | |||
Interest cost | $ 706 | $ 938 | $ 1,154 |
Amortizations | 743 | 558 | 375 |
Net periodic benefit cost | $ 1,449 | $ 1,496 | $ 1,529 |
Employee Benefit Plans - Assets
Employee Benefit Plans - Assets at Fair Value (Details) - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 |
Foreign Plan | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Target allocation (percentage) | 100.00% | ||
Plan assets at year end (percentage) | 100.00% | 100.00% | |
Plan assets, fair value | $ 285,600 | $ 303,531 | $ 266,450 |
Foreign Plan | Level 1 | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 57,338 | 70,904 | |
Foreign Plan | Level 2 | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 107,136 | 95,004 | |
Foreign Plan | Level 3 | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | $ 121,126 | $ 137,623 | $ 115,252 |
Foreign Plan | Equity securities | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets at year end (percentage) | 0.00% | 3.00% | |
Foreign Plan | Equity securities | Minimum | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Target allocation (percentage) | 0.00% | ||
Foreign Plan | Equity securities | Maximum | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Target allocation (percentage) | 3.00% | ||
Foreign Plan | Equity securities | Level 1 | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | $ 0 | $ 9,113 | |
Foreign Plan | Equity securities | Level 2 | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Foreign Plan | Equity securities | Level 3 | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | $ 0 | $ 0 | |
Foreign Plan | Debt and debt securities | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets at year end (percentage) | 63.00% | 60.00% | |
Foreign Plan | Debt and debt securities | Minimum | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Target allocation (percentage) | 50.00% | ||
Foreign Plan | Debt and debt securities | Maximum | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Target allocation (percentage) | 60.00% | ||
Foreign Plan | Debt and debt securities | Level 1 | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | $ 45,516 | $ 60,699 | |
Foreign Plan | Debt and debt securities | Level 2 | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 107,136 | 95,004 | |
Foreign Plan | Debt and debt securities | Level 3 | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | $ 27,176 | $ 25,927 | |
Foreign Plan | Short-term investments | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets at year end (percentage) | 4.00% | 0.00% | |
Foreign Plan | Short-term investments | Minimum | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Target allocation (percentage) | 1.00% | ||
Foreign Plan | Short-term investments | Maximum | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Target allocation (percentage) | 2.00% | ||
Foreign Plan | Short-term investments | Level 1 | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | $ 11,822 | $ 1,092 | |
Foreign Plan | Short-term investments | Level 2 | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Foreign Plan | Short-term investments | Level 3 | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | $ 0 | $ 0 | |
Foreign Plan | Other investments | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets at year end (percentage) | 33.00% | 37.00% | |
Foreign Plan | Other investments | Minimum | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Target allocation (percentage) | 35.00% | ||
Foreign Plan | Other investments | Maximum | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Target allocation (percentage) | 40.00% | ||
Foreign Plan | Other investments | Level 1 | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | $ 0 | $ 0 | |
Foreign Plan | Other investments | Level 2 | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Foreign Plan | Other investments | Level 3 | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 93,950 | 111,696 | |
Pension Plan | Foreign Plan | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 285,600 | 303,531 | |
Pension Plan | Foreign Plan | Level 1 | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 57,338 | 70,904 | |
Pension Plan | Foreign Plan | Level 2 | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 107,136 | 95,004 | |
Pension Plan | Foreign Plan | Level 3 | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 121,126 | 137,623 | |
Pension Plan | Netherlands | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 92,629 | 109,540 | |
Pension Plan | Netherlands | Level 1 | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Pension Plan | Netherlands | Level 2 | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Pension Plan | Netherlands | Level 3 | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 92,629 | 109,540 | |
Pension Plan | United Kingdom | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 192,971 | 193,991 | |
Pension Plan | United Kingdom | Level 1 | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 57,338 | 70,904 | |
Pension Plan | United Kingdom | Level 2 | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 107,136 | 95,004 | |
Pension Plan | United Kingdom | Level 3 | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | $ 28,497 | $ 28,083 |
Employee Benefit Plans - Change
Employee Benefit Plans - Change in Values Related to Level 3 Assets (Details) - Foreign Plan - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2022 | Jan. 03, 2021 | |
Change in plan assets: | ||
Plan assets, beginning of year | $ 303,531 | $ 266,450 |
Actual return on plan assets | (2,817) | 25,239 |
Translation adjustment | (9,168) | 19,432 |
Plan assets, end of year | 285,600 | 303,531 |
Level 3 | ||
Change in plan assets: | ||
Plan assets, beginning of year | 137,623 | 115,252 |
Actual return on plan assets | (10,189) | 6,767 |
Purchases, sales and settlements, net | 440 | 437 |
Assets transferred into level 3 | 732 | 3,934 |
Translation adjustment | (7,480) | 11,233 |
Plan assets, end of year | 121,126 | 137,623 |
Unrealized gains (losses) recognized in other comprehensive income (loss) for level 3 plan assets held at year end | $ (6,600) | $ 10,100 |
Employee Benefit Plans - Future
Employee Benefit Plans - Future Benefit Payments (Details) $ in Thousands | Jan. 02, 2022USD ($) |
Foreign Plan | |
Employee Benefit Plan Disclosure [Line Items] | |
2022 | $ 10,880 |
2023 | 11,090 |
2024 | 11,321 |
2025 | 11,485 |
2026 | 11,632 |
2027-2031 | 60,632 |
United States | |
Employee Benefit Plan Disclosure [Line Items] | |
2022 | 1,873 |
2023 | 1,873 |
2024 | 1,873 |
2025 | 1,873 |
2026 | 1,873 |
2027-2031 | $ 8,886 |
Employee Benefit Plans - Amount
Employee Benefit Plans - Amounts Recognized In Consolidated Balance Sheets and Accumulated Other Comprehensive Loss (Details) - United States - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 |
Employee Benefit Plan Disclosure [Line Items] | ||
Current liabilities | $ 1,873 | $ 2,030 |
Non-current liabilities | 28,180 | 31,804 |
Total benefit obligation | 30,053 | 33,834 |
Unrecognized actuarial loss | $ 8,679 | $ 11,031 |
Segment Information - Narrative
Segment Information - Narrative (Details) $ in Millions | 12 Months Ended | ||
Jan. 02, 2022USD ($)customerscountries | Jan. 03, 2021USD ($)customerscountries | Dec. 29, 2019USD ($)countriescustomers | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | 2 | ||
Number of reportable segments | 2 | ||
Intersegment revenues | $ | $ 78.1 | $ 71.5 | $ 71.3 |
Customer Concentration Risk | Revenue Benchmark | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, number of unaffiliated customers above threshold | customers | 0 | 0 | 0 |
Concentration risk, percentage threshold for disclosure | 10.00% | 10.00% | 10.00% |
Geographic Concentration Risk | Revenue Benchmark | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage threshold for disclosure | 10.00% | 10.00% | 10.00% |
Geographic Concentration Risk | Revenue Benchmark | Foreign Countries Other Than United States And Germany | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, number of countries above threshold | 0 | ||
Geographic Concentration Risk | Revenue Benchmark | Foreign countries | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage of net sales | 50.00% | 51.00% | 49.00% |
Concentration risk, number of countries above threshold | 0 | 0 |
Segment Information - Operating
Segment Information - Operating Segments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 1,200,398 | $ 1,103,262 | $ 1,343,029 |
Depreciation and amortization | 46,345 | 45,920 | 44,932 |
Operating Segments | AMS | |||
Segment Reporting Information [Line Items] | |||
Net sales | 651,216 | 593,418 | 757,112 |
AOI | 85,014 | 89,097 | 120,921 |
Depreciation and amortization | 17,963 | 17,164 | 15,884 |
Operating Segments | EAAA | |||
Segment Reporting Information [Line Items] | |||
Net sales | 549,182 | 509,844 | 585,917 |
AOI | 37,268 | 21,403 | 28,832 |
Depreciation and amortization | $ 28,382 | $ 28,756 | $ 29,048 |
Segment Information - Reconcili
Segment Information - Reconciliation of Segment Assets (Details) - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 1,330,057 | $ 1,306,011 |
Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 1,344,267 | 1,482,363 |
Operating Segments | AMS | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 652,423 | 800,068 |
Operating Segments | EAAA | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 691,844 | 682,295 |
Corporate, Non-Segment | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 146,204 | 111,073 |
Eliminations | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ (160,414) | $ (287,425) |
Segment Information - Reconci_2
Segment Information - Reconciliation of Segment AOI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Operating income (loss) | $ 104,797 | $ (39,287) | $ 130,903 |
Interest expense | 29,681 | 29,244 | 25,656 |
Other expense | 2,483 | 10,889 | 3,431 |
Income (loss) before income tax expense | 72,633 | (79,420) | 101,816 |
Amortization of acquired intangible assets | 5,636 | 5,457 | 5,903 |
Goodwill and intangible asset impairment charge | 0 | 121,258 | 0 |
Operating Segments | AMS | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Operating income (loss) | 81,445 | 73,234 | 118,332 |
Amortization of acquired intangible assets | 0 | 0 | 0 |
Goodwill and intangible asset impairment charge | 0 | 2,695 | 0 |
Impact of change in equity award forfeiture accounting | 0 | 757 | 0 |
Restructuring, asset impairment, severance and other charges | 3,569 | 9,722 | 2,589 |
SEC fine | 0 | 2,689 | 0 |
AOI | 85,014 | 89,097 | 120,921 |
Operating Segments | EAAA | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Operating income (loss) | 23,352 | (112,521) | 12,571 |
Amortization of acquired intangible assets | 5,636 | 5,457 | 5,903 |
Goodwill and intangible asset impairment charge | 0 | 118,563 | 0 |
Impact of change in equity award forfeiture accounting | 0 | 650 | 0 |
Restructuring, asset impairment, severance and other charges | 8,280 | 6,943 | 10,358 |
SEC fine | 0 | 2,311 | 0 |
AOI | $ 37,268 | $ 21,403 | $ 28,832 |
Segment Information - Operati_2
Segment Information - Operating Lease Right-of-Use Assets (Details) - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 |
Segment Reporting Information [Line Items] | ||
Operating lease right-of-use assets | $ 90,561 | $ 98,013 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Operating lease right-of-use assets | 80,403 | 86,210 |
Operating Segments | AMS | ||
Segment Reporting Information [Line Items] | ||
Operating lease right-of-use assets | 12,662 | 11,945 |
Operating Segments | EAAA | ||
Segment Reporting Information [Line Items] | ||
Operating lease right-of-use assets | 67,741 | 74,265 |
Corporate, Non-Segment | ||
Segment Reporting Information [Line Items] | ||
Operating lease right-of-use assets | $ 10,158 | $ 11,803 |
Segment Information - Revenue a
Segment Information - Revenue and Long-lived Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 1,200,398 | $ 1,103,262 | $ 1,343,029 |
Long-lived assets | 329,801 | 359,036 | |
Finance lease, right-of-use asset, net | 6,547 | 6,138 | |
United States | |||
Segment Reporting Information [Line Items] | |||
Net sales | 596,844 | 545,183 | 681,868 |
Long-lived assets | 157,194 | 163,983 | |
Finance lease, right-of-use asset, net | 1,600 | 1,800 | |
Germany | |||
Segment Reporting Information [Line Items] | |||
Net sales | 115,712 | 115,402 | 117,418 |
Long-lived assets | 71,114 | 79,294 | |
Netherlands | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 47,476 | 51,190 | |
Foreign Countries Other Than United States And Germany | |||
Segment Reporting Information [Line Items] | |||
Net sales | 487,842 | 442,677 | $ 543,743 |
Foreign Countries Other Than United States, Germany And Netherlands | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 54,017 | 64,569 | |
Other foreign countries | |||
Segment Reporting Information [Line Items] | |||
Finance lease, right-of-use asset, net | $ 4,900 | $ 4,300 |
Items Reclassified from Accum_3
Items Reclassified from Accumulated Other Comprehensive Loss - Schedule of Items Reclassified from Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Line Items] | |||
Total loss reclassified from accumulated other comprehensive loss | $ (7,686) | $ (9,500) | $ (1,275) |
Interest Rate Swap | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Line Items] | |||
Other comprehensive income (loss), cash flow hedge, tax | 1,400 | ||
Other comprehensive income (loss), cash flow hedge, tax | (2,500) | (1,600) | |
Cost of Sales | Foreign Currency Forward Contract | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Line Items] | |||
Gain (loss) reclassified from accumulated other comprehensive loss: cash flow hedge | 0 | 0 | (450) |
Interest Expense | Interest Rate Swap | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Line Items] | |||
Gain (loss) reclassified from accumulated other comprehensive loss: cash flow hedge | (7,287) | 151 | |
Gain (loss) reclassified from accumulated other comprehensive loss: discontinued cash flow hedge | (4,861) | ||
Other Expense | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Line Items] | |||
Amortization of benefit plan prior service cost and net actuarial losses | $ (2,825) | $ (2,213) | $ (976) |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts and Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Allowance for Expected Credit Losses | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | $ 6,643 | $ 3,793 | $ 3,540 |
Charged to costs and expenses | (705) | 3,777 | 881 |
Charged to other accounts | 0 | 0 | 0 |
Deductions (describe) | 978 | 927 | 628 |
Balance at end of year | 4,960 | 6,643 | 3,793 |
Warranty and Sales Allowances Reserves | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 3,248 | 3,853 | 3,495 |
Charged to costs and expenses | 366 | 1,062 | 1,519 |
Charged to other accounts | 0 | 0 | 0 |
Deductions (describe) | 912 | 1,667 | 1,161 |
Balance at end of year | $ 2,702 | $ 3,248 | $ 3,853 |