Interface (TILE) 10-Q 10 May 22 2022 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Apr. 03, 2022	May 05, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Apr. 3, 2022
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
Trading Symbol	TILE
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		59,467,426
Entity Central Index Key	0000715787
Amendment Flag	false
Current Fiscal Year End Date	--01-01
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2022

Consolidated Condensed Balance

Consolidated Condensed Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Apr. 03, 2022	Jan. 02, 2022
Current assets
Cash and cash equivalents	$ 76,088	$ 97,252
Accounts receivable, net	144,994	171,676
Inventories, net	319,367	265,092
Prepaid expenses and other current assets	43,330	38,320
Total current assets	583,779	572,340
Property, plant and equipment, net	320,778	329,801
Operating lease right-of-use assets	85,323	90,561
Deferred tax asset	23,096	23,994
Goodwill and intangibles, net	212,437	223,204
Other assets	84,372	90,157
Total assets	1,309,785	1,330,057
Current liabilities
Accounts payable	86,975	85,924
Accrued expenses	130,047	146,298
Current portion of operating lease liabilities	13,906	14,588
Current portion of long-term debt	14,939	15,002
Total current liabilities	245,867	261,812
Long-term debt	506,803	503,056
Operating lease liabilities	73,454	77,905
Deferred income taxes	35,585	36,723
Other long-term liabilities	81,196	87,163
Total liabilities	942,905	966,659
Commitments and contingencies
Shareholders’ equity
Preferred stock, par value $1.00 per share; 5,000 shares authorized; none issued or outstanding at April 3, 2022 and January 2, 2022	0	0
Common stock, par value $0.10 per share; 120,000 shares authorized; 59,328 and 59,055 shares issued and outstanding at April 3, 2022 and January 2, 2022, respectively	5,933	5,905
Additional paid-in capital	254,867	253,110
Retained earnings	274,135	261,434
Accumulated other comprehensive loss – foreign currency translation	(113,625)	(100,441)
Accumulated other comprehensive loss – cash flow hedge	(2,081)	(2,722)
Accumulated other comprehensive loss – pension liability	(52,349)	(53,888)
Total shareholders’ equity	366,880	363,398
Total liabilities and shareholders’ equity	$ 1,309,785	$ 1,330,057

Consolidated Condensed Statemen

Consolidated Condensed Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 03, 2022	Apr. 04, 2021
Income Statement [Abstract]
Net sales	$ 288,002	$ 253,260
Cost of sales	181,203	157,222
Gross profit on sales	106,799	96,038
Selling, general and administrative expenses	78,492	79,302
Restructuring and asset impairment charges	887	(130)
Operating income	27,420	16,866
Interest expense	6,850	7,256
Other expense, net	170	715
Income before income tax expense	20,400	8,895
Income tax expense	7,107	1,957
Net income	$ 13,293	$ 6,938
Earnings per share - basic (in dollars per share)	$ 0.22	$ 0.12
Earnings per share - diluted (in dollars per share)	$ 0.22	$ 0.12
Common shares outstanding – basic (in shares)	59,248	58,730
Common shares outstanding – diluted (in shares)	59,248	58,730

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2022	Apr. 04, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 13,293	$ 6,938
Other comprehensive loss, after tax:
Foreign currency translation adjustment	(13,184)	(19,597)
Reclassification from accumulated other comprehensive loss - discontinued cash flow hedge	641	749
Pension liability adjustment	1,539	89
Other comprehensive loss	(11,004)	(18,759)
Comprehensive income (loss)	$ 2,289	$ (11,821)

Consolidated Condensed Statem_2

Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2022	Apr. 04, 2021
OPERATING ACTIVITIES:
Net income	$ 13,293	$ 6,938
Adjustments to reconcile net income to cash (used in) provided by operating activities:
Depreciation and amortization	10,670	11,934
Stock compensation amortization expense	2,182	924
Deferred income taxes and other	4,196	230
Amortization of acquired intangible assets	1,342	1,421
Working capital changes:
Accounts receivable	26,135	9,794
Inventories	(56,464)	(19,046)
Prepaid expenses and other current assets	(5,252)	(15,852)
Accounts payable and accrued expenses	(13,798)	28,512
Cash (used in) provided by operating activities	(17,696)	24,855
INVESTING ACTIVITIES:
Capital expenditures	(4,781)	(5,214)
Cash used in investing activities	(4,781)	(5,214)
FINANCING ACTIVITIES:
Repayments of long-term debt	(44,729)	(30,239)
Borrowing of long-term debt	48,500	18,000
Tax withholding payments for share-based compensation	(398)	(179)
Debt issuance costs	0	(36)
Finance lease payments	(479)	(527)
Cash provided by (used in) financing activities	2,894	(12,981)
Net cash (used in) provided by operating, investing and financing activities	(19,583)	6,660
Effect of exchange rate changes on cash	(1,581)	(2,790)
CASH AND CASH EQUIVALENTS:
Net (decrease) increase	(21,164)	3,870
Balance, beginning of period	97,252	103,053
Balance, end of period	$ 76,088	$ 106,923

Consolidated Condensed Balanc_2

Consolidated Condensed Balance Sheets (Parenthetical) - $ / shares	Apr. 03, 2022	Jan. 02, 2022
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)	59,328,000	59,055,000
Common stock, shares outstanding (in shares)	59,328,000	59,055,000

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Apr. 03, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation References in this Quarterly Report on Form 10-Q to “Interface,” “the Company,” “we,” “our,” “ours” and “us” refer to Interface, Inc. and its subsidiaries or any of them, unless the context requires otherwise. As contemplated by the Securities and Exchange Commission (the “Commission”) instructions to Form 10-Q, the following footnotes have been condensed and, therefore, do not contain all disclosures required in connection with annual financial statements. Reference should be made to the Company’s year-end financial statements and notes thereto contained in its Annual Report on Form 10-K for the fiscal year ended January 2, 2022, as filed with the Commission. The financial information included in this report has been prepared by the Company, without audit. In the opinion of management, the financial information included in this report contains all adjustments necessary for a fair presentation of the results for the interim periods. All such adjustments are of a normal recurring nature unless otherwise disclosed. Nevertheless, the results shown for interim periods are not necessarily indicative of results to be expected for the full year. The January 2, 2022, consolidated condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States (“GAAP”). The three-month periods ended April 3, 2022 and April 4, 2021 both include 13 weeks. Risks and Uncertainties Global economic challenges, including the impact of the COVID-19 pandemic, the war in Ukraine, rising inflation and supply chain disruptions could cause economic uncertainty and volatility. The Company considered these impacts and subsequent general uncertainties and volatility in the global economy on the assumptions and estimates used herein. The Company determined that except for the continued impacts to our global supply chain, production volume, raw material shortages, raw material cost increases, higher freight costs, shipping delays and labor shortages, gross profit margins, 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 April 3, 2022. The Company’s primary credit facility has various financial and other covenants including, but not limited to, a covenant to not exceed a maximum secured net debt to EBITDA ratio, as defined by the credit facility agreement. The Company is currently in compliance with all covenants under the credit facility agreement and anticipates that it will remain in compliance with the covenants for the foreseeable future. COVID-19 Impact We continue to monitor our operations and have implemented various programs to mitigate the effects of COVID-19 on our business. Our global supply chain and manufacturing operations continue to experience increased impacts of COVID-19 including raw material shortages, raw material cost increases, higher freight costs, shipping delays, and labor shortages. During the first quarter of 2022, new government imposed COVID-19 lockdowns in parts of China adversely impacted sales in that region.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Apr. 03, 2022
Revenues [Abstract]
Revenue Recognition	REVENUE RECOGNITION Revenue from sales of carpet, modular resilient flooring, rubber flooring, and other flooring-related material was approximately 99% of total revenue for both three-month periods ended April 3, 2022 and April 4, 2021. The remaining 1% of revenue was generated from the installation of carpet and other flooring-related material for both three-month periods. Disaggregation of Revenue For the three months ended April 3, 2022 and April 4, 2021, revenue from the Company’s customers is broken down by geography as follows: Three Months Ended Geography April 3, 2022 April 4, 2021 Americas 54.4% 50.1% Europe 32.6% 35.1% Asia-Pacific 13.0% 14.8% Revenue from the Company’s customers in the Americas corresponds to the AMS operating segment, and the EAAA operating segment includes revenue from the Europe and Asia-Pacific geographies. See Note 11 entitled “Segment Information” for additional information.

Inventories

Inventories	3 Months Ended
	Apr. 03, 2022
Inventory Disclosure [Abstract]
Inventories	INVENTORIES Inventories are summarized as follows: April 3, 2022 January 2, 2022 (in thousands) Finished goods $ 227,257 $ 182,896 Work-in-process 18,505 15,185 Raw materials 73,605 67,011 Inventories, net $ 319,367 $ 265,092

Earnings Per Share

Earnings Per Share	3 Months Ended
	Apr. 03, 2022
Earnings Per Share [Abstract]
Earnings Per Share	EARNINGS PER SHARE The Company computes basic earnings per share (“EPS”) by dividing net income by the weighted average common shares outstanding, including participating securities outstanding, during the period as discussed below. Diluted EPS reflects the potential dilution beyond shares for basic EPS that could occur if securities or other contracts to issue common stock were exercised, converted into common stock or resulted in the issuance of common stock that would have shared in the Company’s earnings. The Company includes all unvested stock awards which contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid, in the number of shares outstanding in the 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: Three Months Ended April 3, 2022 April 4, 2021 (in thousands, except per share data) Numerator: Net income $ 13,293 $ 6,938 Less: distributed and undistributed earnings available to participating securities (190) (89) Distributed and undistributed earnings available to common shareholders $ 13,103 $ 6,849 Denominator: Weighted average shares outstanding 58,403 57,979 Participating securities 845 751 Shares for basic EPS 59,248 58,730 Dilutive effect of stock options — — Shares for diluted EPS 59,248 58,730 Basic EPS $ 0.22 $ 0.12 Diluted EPS $ 0.22 $ 0.12

Long-Term Debt

Long-Term Debt	3 Months Ended
	Apr. 03, 2022
Debt Disclosure [Abstract]
Long-Term Debt	LONG-TERM DEBT Long-term debt consisted of the following: April 3, 2022 January 2, 2022 Outstanding Principal Interest Rate (1) Outstanding Principal Interest Rate (1) (in thousands) (in thousands) Syndicated Credit Facility: Revolving loan borrowings $ 15,000 1.89 % $ 7,500 4.00 % Term loan borrowings 213,498 1.88 % 217,631 1.84 % Total borrowings under Syndicated Credit Facility 228,498 1.88 % 225,131 1.91 % 5.50% Senior Notes due 2028 300,000 5.50 % 300,000 5.50 % Total debt 528,498 525,131 Less: Unamortized debt issuance costs (6,756) (7,073) Total debt, net 521,742 518,058 Less: Current portion of long-term debt (14,939) (15,002) Total long-term debt, net $ 506,803 $ 503,056 (1) Represents the stated rate of interest, without the effect of debt issuance costs. 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. Interest on base rate loans is charged at varying rates computed by applying a margin depending on the Company’s consolidated net leverage ratio as of the most recently completed fiscal quarter. Interest on Eurocurrency-based loans and fees for letters of credit are charged at varying rates computed by applying a margin 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 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. As of both April 3, 2022 and January 2, 2022, the Company had $1.6 million in letters of credit outstanding under the Facility. As of both April 3, 2022 and January 2, 2022, the carrying value of the Company’s borrowings under the Facility approximated its fair value as the Facility bears interest rates that are similar to existing market rates. Under the Facility, the Company is required to make quarterly amortization payments of the term loan borrowings, which 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 The 5.50% Senior Notes due 2028 (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. 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. As of April 3, 2022, the estimated fair value of the Senior Notes was $289.5 million, compared with a carrying value recorded in the Company’s consolidated condensed balance sheet of $300.0 million, excluding unamortized debt issuance costs. The fair value of the Senior Notes is derived using quoted prices for similar instruments and is considered Level 2 within the fair value hierarchy. Other Lines of Credit Subsidiaries of the Company had an aggregate of the equivalent of $4.0 million of other lines of credit available at interest rates ranging from 3.5% to 4.5% as of April 3, 2022, and $6.0 million of other lines of credit available at interest rates ranging from 3.5% to 6.0% as of January 2, 2022. As of April 3, 2022 and January 2, 2022, 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. As these fees are expensed over the life of the outstanding borrowing, the debt balance will increase by the same amount as the fees that are expensed. As of April 3, 2022 and January 2, 2022, the unamortized debt issuance costs recorded as a reduction of long-term debt were $6.8 million and $7.1 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 $1.5 million and $1.6 million as of April 3, 2022 and January 2, 2022, respectively. These amounts are included in other assets in the Company’s consolidated condensed balance sheets. The Company amortizes these costs over the life of the related debt.

Derivative Instruments

Derivative Instruments	3 Months Ended
	Apr. 03, 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 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. Losses recorded in accumulated other comprehensive loss for these terminated interest rate swaps are reclassified and recorded in the consolidated condensed statements of operations to the extent it is probable that a portion of the original forecasted transactions related to the portion of the hedged debt repaid will not occur by the end of the originally specified time period. See Note 14 entitled “Items Reclassified From Accumulated Other Comprehensive Loss” for additional information. As of April 3, 2022 and January 2, 2022, the remaining accumulated other comprehensive loss associated with the terminated interest rate swaps was $2.9 million and $3.8 million, respectively, and will be amortized to earnings over the remaining term of the interest rate swaps prior to termination. We expect that approximately $2.3 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. 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 April 3, 2022 and January 2, 2022, the Company had no outstanding foreign currency options. The following table summarizes gains on derivatives not designated as hedging instruments within the consolidated condensed statements of operations for the three months ended April 4, 2021: Three Months Ended Statement of Operations Location April 4, 2021 (in thousands) Foreign currency options gain Other expense, net $ 185

Shareholders' Equity

Shareholders' Equity	3 Months Ended
	Apr. 03, 2022
Stockholders' Equity Note [Abstract]
Shareholders' Equity	SHAREHOLDERS’ EQUITY The following tables depict the activity in the accounts which make up shareholders’ equity for the three months ended April 3, 2022 and April 4, 2021: SHARES COMMON STOCK ADDITIONAL PAID-IN CAPITAL RETAINED PENSION LIABILITY FOREIGN CURRENCY TRANSLATION ADJUSTMENT CASH FLOW (in thousands) Balance, at January 2, 2022 59,055 $ 5,905 $ 253,110 $ 261,434 $ (53,888) $ (100,441) $ (2,722) Net income — — — 13,293 — — — Restricted stock issuances 303 30 3,966 — — — — Unamortized compensation expense related to restricted stock awards — — (3,996) — — — — Cash dividends declared, $0.01 per common share — — — (592) — — — Compensation expense related to stock awards, net of shares received for tax withholdings (30) (2) 1,787 — — — — Pension liability adjustment — — — — 1,539 — — Foreign currency translation adjustment — — — — — (13,184) — Reclassification out of accumulated other comprehensive loss - discontinued cash flow hedge — — — — — — 641 Balance, at April 3, 2022 59,328 $ 5,933 $ 254,867 $ 274,135 $ (52,349) $ (113,625) $ (2,081) SHARES COMMON STOCK ADDITIONAL PAID-IN CAPITAL RETAINED PENSION LIABILITY FOREIGN CURRENCY TRANSLATION ADJUSTMENT 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 — — — 6,938 — — — Restricted stock issuances 376 38 5,277 — — — — Unamortized compensation expense related to restricted stock awards — — (5,315) — — — — Cash dividends declared, $0.01 per common share — — — (589) — — — Compensation expense related to stock awards, net of forfeitures and shares received for tax withholdings (26) (2) 689 — — — — Pension liability adjustment — — — — 89 — — Foreign currency translation adjustment — — — — — (19,597) — Reclassification out of accumulated other comprehensive loss - discontinued cash flow hedge — — — — — — 749 Balance, at April 4, 2021 59,014 $ 5,901 $ 248,571 $ 214,911 $ (69,199) $ (79,928) $ (5,441) Restricted Stock Awards During the three months ended April 3, 2022 and April 4, 2021, the Company granted restricted stock awards for 302,600 and 375,600 shares of common stock, respectively. Awards of restricted stock (or a portion thereof) vest with respect to each recipient over a one Compensation expense related to restricted stock grants was $1.2 million and $0.7 million for the three months ended April 3, 2022, and April 4, 2021, respectively. The Company has reduced its expense for any restricted stock forfeited during the period. The following table summarizes restricted stock outstanding as of April 3, 2022, as well as activity during the three months then ended: Restricted Shares Weighted Average Outstanding at January 2, 2022 683,800 $ 21.06 Granted 302,600 13.21 Vested (87,900) 17.54 Forfeited or canceled — — Outstanding at April 3, 2022 898,500 $ 18.76 As of April 3, 2022, the unrecognized total compensation cost related to unvested restricted stock was $7.9 million. That cost is expected to be recognized by the end of 2025. Performance Share Awards During the three months ended April 3, 2022 and April 4, 2021, 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 April 3, 2022, as well as the activity during the three months then ended: Performance Shares Weighted Average Outstanding at January 2, 2022 718,100 $ 14.98 Granted 227,800 13.19 Vested — — Forfeited or canceled (115,100) 17.54 Outstanding at April 3, 2022 830,800 $ 14.13 Compensation expense related to the performance shares was $1.0 million and $0.2 million for the three months ended April 3, 2022 and April 4, 2021, respectively. The Company has reduced its expense for performance shares forfeited during the period. Unrecognized compensation expense related to these performance shares was approximately $8.6 million as of April 3, 2022. Depending on the performance of the Company, any compensation expense related to these outstanding performance shares will be recognized by the end of 2025. The tax benefit recognized with regard to restricted stock and performance shares was approximately $0.3 million for the three months ended April 3, 2022.

Leases

Leases	3 Months Ended
	Apr. 03, 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. The Company records a right-of-use asset and lease liability for leases extending beyond one year for operating and finance leases once a contract that contains a lease is executed and we have the right to control the use of the leased asset. The right-of-use asset is measured as the present value of the lease obligation. The discount rate used to calculate the present value of the lease liability was the Company’s incremental borrowing rate for the applicable geographical region. As of April 3, 2022, there were no significant leases that had not commenced. The table below represents a summary of the balances recorded in the consolidated condensed balance sheets related to the Company’s leases as of April 3, 2022 and January 2, 2022: April 3, 2022 January 2, 2022 Balance Sheet Location Operating Leases Finance Leases Operating Leases Finance Leases (in thousands) Operating lease right-of-use assets $ 85,323 $ 90,561 Current portion of operating lease liabilities $ 13,906 $ 14,588 Operating lease liabilities 73,454 77,905 Total operating lease liabilities $ 87,360 $ 92,493 Property, plant and equipment, net $ 4,475 $ 6,547 Accrued expenses $ 1,806 $ 1,837 Other long-term liabilities 3,055 3,201 Total finance lease liabilities $ 4,861 $ 5,038 Lease Costs Three Months Ended April 3, 2022 April 4, 2021 (in thousands) Finance lease cost: Amortization of right-of-use assets $ 517 $ 279 Interest on lease liabilities 29 32 Operating lease cost 4,918 5,886 Short-term lease cost 227 463 Variable lease cost 616 806 Total lease cost $ 6,307 $ 7,466 Other Supplemental Information Three Months Ended April 3, 2022 April 4, 2021 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 21 $ 32 Operating cash flows from operating leases 4,635 5,200 Financing cash flows from finance leases 479 527 Right-of-use assets obtained in exchange for new finance lease liabilities 382 1,273 Right-of-use assets obtained in exchange for new operating lease liabilities 20 2,378 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 April 3, 2022 and January 2, 2022: April 3, 2022 January 2, 2022 Weighted-average remaining lease term – finance leases (in years) 3.37 3.20 Weighted-average remaining lease term – operating leases (in years) 9.89 9.97 Weighted-average discount rate – finance leases 2.90 % 2.82 % Weighted-average discount rate – operating leases 5.89 % 5.87 % 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 (excluding the three months ended April 3, 2022) $ 13,077 $ 1,433 2023 13,540 1,582 2024 11,980 1,208 2025 10,162 487 2026 10,387 165 Thereafter 59,149 260 Total future minimum lease payments (undiscounted) 118,295 5,135 Less: Present value discount (30,935) (274) Total lease liability $ 87,360 $ 4,861
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. The Company records a right-of-use asset and lease liability for leases extending beyond one year for operating and finance leases once a contract that contains a lease is executed and we have the right to control the use of the leased asset. The right-of-use asset is measured as the present value of the lease obligation. The discount rate used to calculate the present value of the lease liability was the Company’s incremental borrowing rate for the applicable geographical region. As of April 3, 2022, there were no significant leases that had not commenced. The table below represents a summary of the balances recorded in the consolidated condensed balance sheets related to the Company’s leases as of April 3, 2022 and January 2, 2022: April 3, 2022 January 2, 2022 Balance Sheet Location Operating Leases Finance Leases Operating Leases Finance Leases (in thousands) Operating lease right-of-use assets $ 85,323 $ 90,561 Current portion of operating lease liabilities $ 13,906 $ 14,588 Operating lease liabilities 73,454 77,905 Total operating lease liabilities $ 87,360 $ 92,493 Property, plant and equipment, net $ 4,475 $ 6,547 Accrued expenses $ 1,806 $ 1,837 Other long-term liabilities 3,055 3,201 Total finance lease liabilities $ 4,861 $ 5,038 Lease Costs Three Months Ended April 3, 2022 April 4, 2021 (in thousands) Finance lease cost: Amortization of right-of-use assets $ 517 $ 279 Interest on lease liabilities 29 32 Operating lease cost 4,918 5,886 Short-term lease cost 227 463 Variable lease cost 616 806 Total lease cost $ 6,307 $ 7,466 Other Supplemental Information Three Months Ended April 3, 2022 April 4, 2021 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 21 $ 32 Operating cash flows from operating leases 4,635 5,200 Financing cash flows from finance leases 479 527 Right-of-use assets obtained in exchange for new finance lease liabilities 382 1,273 Right-of-use assets obtained in exchange for new operating lease liabilities 20 2,378 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 April 3, 2022 and January 2, 2022: April 3, 2022 January 2, 2022 Weighted-average remaining lease term – finance leases (in years) 3.37 3.20 Weighted-average remaining lease term – operating leases (in years) 9.89 9.97 Weighted-average discount rate – finance leases 2.90 % 2.82 % Weighted-average discount rate – operating leases 5.89 % 5.87 % 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 (excluding the three months ended April 3, 2022) $ 13,077 $ 1,433 2023 13,540 1,582 2024 11,980 1,208 2025 10,162 487 2026 10,387 165 Thereafter 59,149 260 Total future minimum lease payments (undiscounted) 118,295 5,135 Less: Present value discount (30,935) (274) Total lease liability $ 87,360 $ 4,861

Employee Benefit Plans

Employee Benefit Plans	3 Months Ended
	Apr. 03, 2022
Retirement Benefits [Abstract]
Employee Benefit Plans	EMPLOYEE BENEFIT PLANS During both three-month periods ended April 3, 2022 and April 4, 2021, the Company recorded multi-employer pension expense related to multi-employer contributions of $0.7 million. The following tables provide the components of net periodic benefit cost for the three months ended April 3, 2022 and April 4, 2021: Three Months Ended Defined Benefit Retirement Plans (Europe) April 3, 2022 April 4, 2021 (in thousands) Interest cost $ 916 $ 572 Expected return on plan assets (1,059) (849) Amortization of prior service cost 32 29 Amortization of net actuarial losses 275 404 Net periodic benefit cost $ 164 $ 156 Three Months Ended Salary Continuation Plan April 3, 2022 April 4, 2021 (in thousands) Interest cost $ 193 $ 176 Amortization of net actuarial losses 139 186 Net periodic benefit cost $ 332 $ 362 Three Months Ended nora Defined Benefit Plan April 3, 2022 April 4, 2021 (in thousands) Service cost $ 225 $ 277 Interest cost 110 103 Amortization of net actuarial losses 50 92 Net periodic benefit cost $ 385 $ 472 In accordance with applicable accounting standards, the service cost component of net periodic benefit costs is presented within operating income in the consolidated condensed statements of operations, while all other components of net periodic benefit costs are presented within other expense, net, in the consolidated condensed statements of operations.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	Apr. 03, 2022
Goodwill [Abstract]
Goodwill and Intangible Assets	GOODWILL AND INTANGIBLE ASSETS The changes in the carrying amounts of goodwill attributable to each reportable segment for the three months ended April 3, 2022 are as follows: AMS EAAA Total (in thousands) Balance, at January 2, 2022 $ 108,505 $ 38,520 $ 147,025 Foreign currency translation (5,325) (1,890) (7,215) Balance, at April 3, 2022 $ 103,180 $ 36,630 $ 139,810

Segment Information

Segment Information	3 Months Ended
	Apr. 03, 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. The Company 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 includes 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 (“AOI”), which includes allocations of corporate selling, general and administrative expenses. AOI excludes nora purchase accounting amortization, Thailand plant closure inventory write-down, and restructuring charges, asset impairment, severance and other charges. Intersegment revenues for the three months ended April 3, 2022 and April 4, 2021 were $17.3 million and $15.7 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 for the three months ended April 3, 2022 and April 4, 2021 is presented in the following table: Three Months Ended April 3, 2022 April 4, 2021 (in thousands) Net sales AMS $ 156,509 $ 126,967 EAAA 131,493 126,293 Total net sales $ 288,002 $ 253,260 Segment AOI AMS $ 21,138 $ 11,913 EAAA 9,504 8,011 Depreciation and amortization AMS $ 4,058 $ 4,723 EAAA 6,612 7,211 Total depreciation and amortization $ 10,670 $ 11,934 A reconciliation of the Company’s total operating segment assets to the corresponding consolidated amounts follows: April 3, 2022 January 2, 2022 (in thousands) Assets AMS $ 546,993 $ 652,423 EAAA 687,535 691,844 Total segment assets 1,234,528 1,344,267 Corporate assets 132,386 146,204 Eliminations (57,129) (160,414) Total reported assets $ 1,309,785 $ 1,330,057 Reconciliations of operating income to income before income tax expense and segment AOI are presented as follows: Three Months Ended April 3, 2022 April 4, 2021 (in thousands) AMS operating income $ 21,250 $ 11,647 EAAA operating income 6,170 5,219 Consolidated operating income 27,420 16,866 Interest expense 6,850 7,256 Other expense, net 170 715 Income before income tax expense $ 20,400 $ 8,895 Three Months Ended April 3, 2022 Three Months Ended April 4, 2021 AMS EAAA AMS EAAA (in thousands) Operating income $ 21,250 $ 6,170 $ 11,647 $ 5,219 Purchase accounting amortization — 1,342 — 1,421 Thailand plant closure inventory write-down — 1,115 — — Restructuring, asset impairment, severance and other charges (112) 877 266 1,371 AOI $ 21,138 $ 9,504 $ 11,913 $ 8,011

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	3 Months Ended
	Apr. 03, 2022
Supplemental Cash Flow Information [Abstract]
Supplemental Cash Flow Information	SUPPLEMENTAL CASH FLOW INFORMATION Cash payments for interest amounted to $1.3 million and $1.6 million for the three months ended April 3, 2022 and April 4, 2021, respectively. Income tax payments, net of refunds, amounted to $2.8 million and $3.2 million for the three months ended April 3, 2022 and April 4, 2021, respectively. Non-Cash Financing Activities On March 15, 2022, the Company declared cash dividends on its common stock of $0.6 million, which were paid during the second quarter of 2022 to shareholders of record as of April 1, 2022. At April 3, 2022, the dividends were recorded within accrued expenses in the consolidated condensed balance sheet. See Note 8 entitled “Leases” for supplemental disclosures related to finance and operating leases.

Income Taxes

Income Taxes	3 Months Ended
	Apr. 03, 2022
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXES The Company determines its provision for income taxes for interim periods using an estimate of its annual effective tax rate and records any changes affecting the estimated annual effective tax rate in the interim period in which the change occurs, including discrete tax items. During the three months ended April 3, 2022, the Company recorded a total income tax provision of $7.1 million on pre-tax income of $20.4 million resulting in an effective tax rate of 34.8%, as compared to a total income tax provision of $2.0 million on pre-tax income of $8.9 million resulting in an effective tax rate of 22.0% during the three months ended April 4, 2021. The increase in the effective tax rate for the period ended April 3, 2022 as compared to the period ended April 4, 2021 was primarily due to a non-recurring favorable change to unrecognized tax benefits in the period ended April 4, 2021, unfavorable changes related to company-owned life insurance, an increase in non-deductible executive compensation, and non-deductible charges related to the closure of the Company’s manufacturing facility in Thailand in the first quarter of 2022. In the first three months of 2022, the Company increased its liability for unrecognized tax benefits by $0.3 million. As of April 3, 2022, the Company had accrued approximately $8.5 million for unrecognized tax benefits. In accordance with applicable accounting standards, the Company’s deferred tax asset as of April 3, 2022 reflects a reduction for $2.8 million of these unrecognized tax benefits.

Items Reclassified from Accumul

Items Reclassified from Accumulated Other Comprehensive Loss	3 Months Ended
	Apr. 03, 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 condensed statements of operations during the three months ended April 3, 2022 and April 4, 2021 are reflected in the table below: Three Months Ended Statement of Operations Location April 3, 2022 April 4, 2021 (in thousands) Interest rate swap contracts loss Interest expense $ (893) $ (1,061) Amortization of benefit plan net actuarial losses and prior service cost Other expense, net (496) (711) Total loss reclassified from AOCI $ (1,389) $ (1,772)

Restructuring and Other Charges

Restructuring and Other Charges	3 Months Ended
	Apr. 03, 2022
Restructuring and Related Activities [Abstract]
Restructuring and Other Charges	RESTRUCTURING AND OTHER CHARGES Restructuring and asset impairment charges by reportable segment are presented as follows: Three Months Ended April 3, 2022 April 4, 2021 (in thousands) AMS $ — $ — EAAA 887 (130) Total restructuring and asset impairment charges $ 887 $ (130) A summary of the restructuring reserve balance, recorded within accrued expenses in the consolidated condensed balance sheets, for the 2021 and 2019 restructuring plans is presented below: Workforce Reduction Asset Impairment 2021 Plan 2019 Plan 2021 Plan Total (in thousands) Balance, at January 2, 2022 $ 2,257 $ 97 $ — $ 2,354 Charged to expenses 1 — 886 887 Deductions (957) (97) — (1,054) Charged to other accounts — — (886) (886) Balance, at April 3, 2022 $ 1,301 $ — $ — $ 1,301 Below is a discussion of the restructuring plan activities under the 2021 and 2019 restructuring plans. 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 at the end of the first quarter of 2022. Expected charges and cumulative charges incurred to date under the 2021 restructuring plan are as follows: Workforce Reduction Retention Bonuses (2) Asset Impairment Total (in thousands) Estimated expected charges (1) $ 2,258 $ 500 $ 2,536 $ 5,000 — $ 6,000 Cumulative charges incurred to date (1) 2,258 — 2,536 4,794 (1) Charges are attributable to the EAAA reportable segment. (2) The retention bonuses will be recognized through the end of fiscal year 2022 as earned over the requisite service periods. In addition, during the three months ended April 3, 2022, in conjunction with the closure of its Thailand Facility, the Company recorded a write-down of inventory of $1.1 million within cost of sales in the consolidated condensed statements of operations. 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 fiscal year 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 condensed statement of operations in fiscal year 2022, with the remaining portion of the annualized savings expected to be realized in fiscal year 2023. 2019 Restructuring Plan

Significant Accounting Policies

Significant Accounting Policies (Policies)	3 Months Ended
	Apr. 03, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation References in this Quarterly Report on Form 10-Q to “Interface,” “the Company,” “we,” “our,” “ours” and “us” refer to Interface, Inc. and its subsidiaries or any of them, unless the context requires otherwise. As contemplated by the Securities and Exchange Commission (the “Commission”) instructions to Form 10-Q, the following footnotes have been condensed and, therefore, do not contain all disclosures required in connection with annual financial statements. Reference should be made to the Company’s year-end financial statements and notes thereto contained in its Annual Report on Form 10-K for the fiscal year ended January 2, 2022, as filed with the Commission. The financial information included in this report has been prepared by the Company, without audit. In the opinion of management, the financial information included in this report contains all adjustments necessary for a fair presentation of the results for the interim periods. All such adjustments are of a normal recurring nature unless otherwise disclosed. Nevertheless, the results shown for interim periods are not necessarily indicative of results to be expected for the full year. The January 2, 2022, consolidated condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States (“GAAP”). The three-month periods ended April 3, 2022 and April 4, 2021 both include 13 weeks.
Risks and Uncertainties	Risks and UncertaintiesGlobal economic challenges, including the impact of the COVID-19 pandemic, the war in Ukraine, rising inflation and supply chain disruptions could cause economic uncertainty and volatility. The Company considered these impacts and subsequent general uncertainties and volatility in the global economy on the assumptions and estimates used herein. The Company determined that except for the continued impacts to our global supply chain, production volume, raw material shortages, raw material cost increases, higher freight costs, shipping delays and labor shortages, gross profit margins, 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 April 3, 2022. The Company’s primary credit facility has various financial and other covenants including, but not limited to, a covenant to not exceed a maximum secured net debt to EBITDA ratio, as defined by the credit facility agreement. The Company is currently in compliance with all covenants under the credit facility agreement and anticipates that it will remain in compliance with the covenants for the foreseeable future.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Apr. 03, 2022
Revenues [Abstract]
Disaggregation of Revenue	For the three months ended April 3, 2022 and April 4, 2021, revenue from the Company’s customers is broken down by geography as follows: Three Months Ended Geography April 3, 2022 April 4, 2021 Americas 54.4% 50.1% Europe 32.6% 35.1% Asia-Pacific 13.0% 14.8%

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Apr. 03, 2022
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories are summarized as follows: April 3, 2022 January 2, 2022 (in thousands) Finished goods $ 227,257 $ 182,896 Work-in-process 18,505 15,185 Raw materials 73,605 67,011 Inventories, net $ 319,367 $ 265,092

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Apr. 03, 2022
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table shows the computation of basic and diluted EPS: Three Months Ended April 3, 2022 April 4, 2021 (in thousands, except per share data) Numerator: Net income $ 13,293 $ 6,938 Less: distributed and undistributed earnings available to participating securities (190) (89) Distributed and undistributed earnings available to common shareholders $ 13,103 $ 6,849 Denominator: Weighted average shares outstanding 58,403 57,979 Participating securities 845 751 Shares for basic EPS 59,248 58,730 Dilutive effect of stock options — — Shares for diluted EPS 59,248 58,730 Basic EPS $ 0.22 $ 0.12 Diluted EPS $ 0.22 $ 0.12

Long-Term Debt (Tables)

Long-Term Debt (Tables)	3 Months Ended
	Apr. 03, 2022
Debt Disclosure [Abstract]
Schedule of Long-Term Debt Instruments	Long-term debt consisted of the following: April 3, 2022 January 2, 2022 Outstanding Principal Interest Rate (1) Outstanding Principal Interest Rate (1) (in thousands) (in thousands) Syndicated Credit Facility: Revolving loan borrowings $ 15,000 1.89 % $ 7,500 4.00 % Term loan borrowings 213,498 1.88 % 217,631 1.84 % Total borrowings under Syndicated Credit Facility 228,498 1.88 % 225,131 1.91 % 5.50% Senior Notes due 2028 300,000 5.50 % 300,000 5.50 % Total debt 528,498 525,131 Less: Unamortized debt issuance costs (6,756) (7,073) Total debt, net 521,742 518,058 Less: Current portion of long-term debt (14,939) (15,002) Total long-term debt, net $ 506,803 $ 503,056 (1) Represents the stated rate of interest, without the effect of debt issuance costs.

Derivative Instruments (Tables)

Derivative Instruments (Tables)	3 Months Ended
	Apr. 03, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives Not Designated as Hedging Instruments	The following table summarizes gains on derivatives not designated as hedging instruments within the consolidated condensed statements of operations for the three months ended April 4, 2021: Three Months Ended Statement of Operations Location April 4, 2021 (in thousands) Foreign currency options gain Other expense, net $ 185

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	3 Months Ended
	Apr. 03, 2022
Stockholders' Equity Note [Abstract]
Schedule of Shareholders' Equity	The following tables depict the activity in the accounts which make up shareholders’ equity for the three months ended April 3, 2022 and April 4, 2021: SHARES COMMON STOCK ADDITIONAL PAID-IN CAPITAL RETAINED PENSION LIABILITY FOREIGN CURRENCY TRANSLATION ADJUSTMENT CASH FLOW (in thousands) Balance, at January 2, 2022 59,055 $ 5,905 $ 253,110 $ 261,434 $ (53,888) $ (100,441) $ (2,722) Net income — — — 13,293 — — — Restricted stock issuances 303 30 3,966 — — — — Unamortized compensation expense related to restricted stock awards — — (3,996) — — — — Cash dividends declared, $0.01 per common share — — — (592) — — — Compensation expense related to stock awards, net of shares received for tax withholdings (30) (2) 1,787 — — — — Pension liability adjustment — — — — 1,539 — — Foreign currency translation adjustment — — — — — (13,184) — Reclassification out of accumulated other comprehensive loss - discontinued cash flow hedge — — — — — — 641 Balance, at April 3, 2022 59,328 $ 5,933 $ 254,867 $ 274,135 $ (52,349) $ (113,625) $ (2,081) SHARES COMMON STOCK ADDITIONAL PAID-IN CAPITAL RETAINED PENSION LIABILITY FOREIGN CURRENCY TRANSLATION ADJUSTMENT 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 — — — 6,938 — — — Restricted stock issuances 376 38 5,277 — — — — Unamortized compensation expense related to restricted stock awards — — (5,315) — — — — Cash dividends declared, $0.01 per common share — — — (589) — — — Compensation expense related to stock awards, net of forfeitures and shares received for tax withholdings (26) (2) 689 — — — — Pension liability adjustment — — — — 89 — — Foreign currency translation adjustment — — — — — (19,597) — Reclassification out of accumulated other comprehensive loss - discontinued cash flow hedge — — — — — — 749 Balance, at April 4, 2021 59,014 $ 5,901 $ 248,571 $ 214,911 $ (69,199) $ (79,928) $ (5,441)
Schedule of Restricted Stock Outstanding and Activity	The following table summarizes restricted stock outstanding as of April 3, 2022, as well as activity during the three months then ended: Restricted Shares Weighted Average Outstanding at January 2, 2022 683,800 $ 21.06 Granted 302,600 13.21 Vested (87,900) 17.54 Forfeited or canceled — — Outstanding at April 3, 2022 898,500 $ 18.76
Schedule of Performance Shares Outstanding and Activity	The following table summarizes the performance shares outstanding as of April 3, 2022, as well as the activity during the three months then ended: Performance Shares Weighted Average Outstanding at January 2, 2022 718,100 $ 14.98 Granted 227,800 13.19 Vested — — Forfeited or canceled (115,100) 17.54 Outstanding at April 3, 2022 830,800 $ 14.13

Leases (Tables)

Leases (Tables)	3 Months Ended
	Apr. 03, 2022
Leases [Abstract]
Balance Sheet Information, Lessee	The table below represents a summary of the balances recorded in the consolidated condensed balance sheets related to the Company’s leases as of April 3, 2022 and January 2, 2022: April 3, 2022 January 2, 2022 Balance Sheet Location Operating Leases Finance Leases Operating Leases Finance Leases (in thousands) Operating lease right-of-use assets $ 85,323 $ 90,561 Current portion of operating lease liabilities $ 13,906 $ 14,588 Operating lease liabilities 73,454 77,905 Total operating lease liabilities $ 87,360 $ 92,493 Property, plant and equipment, net $ 4,475 $ 6,547 Accrued expenses $ 1,806 $ 1,837 Other long-term liabilities 3,055 3,201 Total finance lease liabilities $ 4,861 $ 5,038
Schedule of Lease Cost	Lease Costs Three Months Ended April 3, 2022 April 4, 2021 (in thousands) Finance lease cost: Amortization of right-of-use assets $ 517 $ 279 Interest on lease liabilities 29 32 Operating lease cost 4,918 5,886 Short-term lease cost 227 463 Variable lease cost 616 806 Total lease cost $ 6,307 $ 7,466
Other Supplemental Information, Lessee	Other Supplemental Information Three Months Ended April 3, 2022 April 4, 2021 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 21 $ 32 Operating cash flows from operating leases 4,635 5,200 Financing cash flows from finance leases 479 527 Right-of-use assets obtained in exchange for new finance lease liabilities 382 1,273 Right-of-use assets obtained in exchange for new operating lease liabilities 20 2,378
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 April 3, 2022 and January 2, 2022: April 3, 2022 January 2, 2022 Weighted-average remaining lease term – finance leases (in years) 3.37 3.20 Weighted-average remaining lease term – operating leases (in years) 9.89 9.97 Weighted-average discount rate – finance leases 2.90 % 2.82 % Weighted-average discount rate – operating leases 5.89 % 5.87 %
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 (excluding the three months ended April 3, 2022) $ 13,077 $ 1,433 2023 13,540 1,582 2024 11,980 1,208 2025 10,162 487 2026 10,387 165 Thereafter 59,149 260 Total future minimum lease payments (undiscounted) 118,295 5,135 Less: Present value discount (30,935) (274) Total lease liability $ 87,360 $ 4,861
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 (excluding the three months ended April 3, 2022) $ 13,077 $ 1,433 2023 13,540 1,582 2024 11,980 1,208 2025 10,162 487 2026 10,387 165 Thereafter 59,149 260 Total future minimum lease payments (undiscounted) 118,295 5,135 Less: Present value discount (30,935) (274) Total lease liability $ 87,360 $ 4,861

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	3 Months Ended
	Apr. 03, 2022
Retirement Benefits [Abstract]
Schedule of Net Periodic Benefit Costs	The following tables provide the components of net periodic benefit cost for the three months ended April 3, 2022 and April 4, 2021: Three Months Ended Defined Benefit Retirement Plans (Europe) April 3, 2022 April 4, 2021 (in thousands) Interest cost $ 916 $ 572 Expected return on plan assets (1,059) (849) Amortization of prior service cost 32 29 Amortization of net actuarial losses 275 404 Net periodic benefit cost $ 164 $ 156 Three Months Ended Salary Continuation Plan April 3, 2022 April 4, 2021 (in thousands) Interest cost $ 193 $ 176 Amortization of net actuarial losses 139 186 Net periodic benefit cost $ 332 $ 362 Three Months Ended nora Defined Benefit Plan April 3, 2022 April 4, 2021 (in thousands) Service cost $ 225 $ 277 Interest cost 110 103 Amortization of net actuarial losses 50 92 Net periodic benefit cost $ 385 $ 472

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Apr. 03, 2022
Goodwill [Abstract]
Schedule of Goodwill	The changes in the carrying amounts of goodwill attributable to each reportable segment for the three months ended April 3, 2022 are as follows: AMS EAAA Total (in thousands) Balance, at January 2, 2022 $ 108,505 $ 38,520 $ 147,025 Foreign currency translation (5,325) (1,890) (7,215) Balance, at April 3, 2022 $ 103,180 $ 36,630 $ 139,810

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Apr. 03, 2022
Segment Reporting [Abstract]
Schedule of Operating Segment Information	Segment information for the three months ended April 3, 2022 and April 4, 2021 is presented in the following table: Three Months Ended April 3, 2022 April 4, 2021 (in thousands) Net sales AMS $ 156,509 $ 126,967 EAAA 131,493 126,293 Total net sales $ 288,002 $ 253,260 Segment AOI AMS $ 21,138 $ 11,913 EAAA 9,504 8,011 Depreciation and amortization AMS $ 4,058 $ 4,723 EAAA 6,612 7,211 Total depreciation and amortization $ 10,670 $ 11,934
Reconciliation of Assets from Segment to Consolidated	A reconciliation of the Company’s total operating segment assets to the corresponding consolidated amounts follows: April 3, 2022 January 2, 2022 (in thousands) Assets AMS $ 546,993 $ 652,423 EAAA 687,535 691,844 Total segment assets 1,234,528 1,344,267 Corporate assets 132,386 146,204 Eliminations (57,129) (160,414) Total reported assets $ 1,309,785 $ 1,330,057
Reconciliation of Operating Income to Income Before Income Tax Expense and Segment AOI	Reconciliations of operating income to income before income tax expense and segment AOI are presented as follows: Three Months Ended April 3, 2022 April 4, 2021 (in thousands) AMS operating income $ 21,250 $ 11,647 EAAA operating income 6,170 5,219 Consolidated operating income 27,420 16,866 Interest expense 6,850 7,256 Other expense, net 170 715 Income before income tax expense $ 20,400 $ 8,895 Three Months Ended April 3, 2022 Three Months Ended April 4, 2021 AMS EAAA AMS EAAA (in thousands) Operating income $ 21,250 $ 6,170 $ 11,647 $ 5,219 Purchase accounting amortization — 1,342 — 1,421 Thailand plant closure inventory write-down — 1,115 — — Restructuring, asset impairment, severance and other charges (112) 877 266 1,371 AOI $ 21,138 $ 9,504 $ 11,913 $ 8,011

Items Reclassified from Accum_2

Items Reclassified from Accumulated Other Comprehensive Loss (Tables)	3 Months Ended
	Apr. 03, 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 condensed statements of operations during the three months ended April 3, 2022 and April 4, 2021 are reflected in the table below: Three Months Ended Statement of Operations Location April 3, 2022 April 4, 2021 (in thousands) Interest rate swap contracts loss Interest expense $ (893) $ (1,061) Amortization of benefit plan net actuarial losses and prior service cost Other expense, net (496) (711) Total loss reclassified from AOCI $ (1,389) $ (1,772)

Restructuring and Other Charg_2

Restructuring and Other Charges (Tables)	3 Months Ended
	Apr. 03, 2022
Restructuring and Related Activities [Abstract]
Summary of Restructuring and Asset Impairment Charges by Reportable Segment	Restructuring and asset impairment charges by reportable segment are presented as follows: Three Months Ended April 3, 2022 April 4, 2021 (in thousands) AMS $ — $ — EAAA 887 (130) Total restructuring and asset impairment charges $ 887 $ (130)
Schedule of Restructuring Reserve by Plan and Type of Cost	A summary of the restructuring reserve balance, recorded within accrued expenses in the consolidated condensed balance sheets, for the 2021 and 2019 restructuring plans is presented below: Workforce Reduction Asset Impairment 2021 Plan 2019 Plan 2021 Plan Total (in thousands) Balance, at January 2, 2022 $ 2,257 $ 97 $ — $ 2,354 Charged to expenses 1 — 886 887 Deductions (957) (97) — (1,054) Charged to other accounts — — (886) (886) Balance, at April 3, 2022 $ 1,301 $ — $ — $ 1,301
Schedule of Expected and Cumulative Restructuring Charges	Expected charges and cumulative charges incurred to date under the 2021 restructuring plan are as follows: Workforce Reduction Retention Bonuses (2) Asset Impairment Total (in thousands) Estimated expected charges (1) $ 2,258 $ 500 $ 2,536 $ 5,000 — $ 6,000 Cumulative charges incurred to date (1) 2,258 — 2,536 4,794 (1) Charges are attributable to the EAAA reportable segment. (2) The retention bonuses will be recognized through the end of fiscal year 2022 as earned over the requisite service periods.

Revenue Recognition - Narrative

Revenue Recognition - Narrative (Details)	3 Months Ended
	Apr. 03, 2022	Apr. 04, 2021
Carpet, Modular Resilient Flooring, and Related Products
Percent of revenue due to contracts with customers (percentage)	99.00%	99.00%
Installation of Carpet and Other Flooring Related Material
Percent of revenue due to contracts with customers (percentage)	1.00%	1.00%

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregation of Revenue (Details)	3 Months Ended
	Apr. 03, 2022	Apr. 04, 2021
Americas
Percentage of net sales	54.40%	50.10%
Europe
Percentage of net sales	32.60%	35.10%
Asia-Pacific
Percentage of net sales	13.00%	14.80%

Inventories - Summary of Invent

Inventories - Summary of Inventories (Details) - USD ($) $ in Thousands	Apr. 03, 2022	Jan. 02, 2022
Inventory Disclosure [Abstract]
Finished goods	$ 227,257	$ 182,896
Work-in-process	18,505	15,185
Raw materials	73,605	67,011
Inventories, net	$ 319,367	$ 265,092

Earnings Per Share - Basic and

Earnings Per Share - Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 03, 2022	Apr. 04, 2021
Earnings Per Share [Abstract]
Net income	$ 13,293	$ 6,938
Distributed and undistributed earnings available to participating securities, basic	(190)	(89)
Distributed and undistributed earnings available to participating securities, diluted	(190)	(89)
Distributed and undistributed earnings available to common shareholders, basic	13,103	6,849
Distributed and undistributed earnings available to common shareholders, diluted	$ 13,103	$ 6,849
Weighted average shares outstanding (in shares)	58,403	57,979
Participating securities (in shares)	845	751
Shares for basic earnings per share (in shares)	59,248	58,730
Dilutive effect of stock options (in shares)	0	0
Shares for diluted earnings per share (in shares)	59,248	58,730
Earnings per share - basic (in dollars per share)	$ 0.22	$ 0.12
Earnings per share - diluted (in dollars per share)	$ 0.22	$ 0.12

Long-Term Debt - Summary of Lon

Long-Term Debt - Summary of Long-Term Debt (Details) - USD ($) $ in Thousands	Apr. 03, 2022	Jan. 02, 2022
Debt Instrument [Line Items]
Long-term debt, gross	$ 528,498	$ 525,131
Unamortized debt issuance costs, recorded as a reduction of long-term debt, net	(6,756)	(7,073)
Total debt, net	521,742	518,058
Current portion of long-term debt	(14,939)	(15,002)
Total long-term debt, net	506,803	503,056
Syndicated Facility Agreement
Debt Instrument [Line Items]
Long-term debt, gross	$ 228,498	$ 225,131
Weighted average interest rate on borrowings outstanding (percentage)	1.88%	1.91%
Syndicated Facility Agreement | Revolving loan facility
Debt Instrument [Line Items]
Long-term debt, gross	$ 15,000	$ 7,500
Long-term debt, bearing variable interest, rate (percentage)	1.89%	4.00%
Syndicated Facility Agreement | Term Loan
Debt Instrument [Line Items]
Long-term debt, gross	$ 213,498	$ 217,631
Long-term debt, bearing variable interest, rate (percentage)	1.88%	1.84%
Senior Notes
Debt Instrument [Line Items]
Long-term debt, gross	$ 300,000	$ 300,000
Long-term debt, bearing fixed interest, rate (percentage)	5.50%	5.50%

Long-Term Debt - Narrative (Det

Long-Term Debt - Narrative (Details) - USD ($)	3 Months Ended	12 Months Ended
	Apr. 03, 2022	Jan. 02, 2022
Debt Instrument [Line Items]
Long-term debt, gross	$ 528,498,000	$ 525,131,000
Unamortized debt issuance costs, recorded as a reduction of long-term debt, net	6,756,000	7,073,000
Other Line of Credit
Debt Instrument [Line Items]
Revolving loan facility, maximum borrowing capacity	4,000,000	6,000,000
Revolving loan facility, borrowings outstanding	$ 0	$ 0
Other Line of Credit | Minimum
Debt Instrument [Line Items]
Revolving loan facility, interest rate (percentage)	3.50%	3.50%
Other Line of Credit | Maximum
Debt Instrument [Line Items]
Revolving loan facility, interest rate (percentage)	4.50%	6.00%
Syndicated Facility Agreement
Debt Instrument [Line Items]
Letters of credit outstanding	$ 1,600,000	$ 1,600,000
Long-term debt, gross	228,498,000	225,131,000
Unamortized debt issuance costs, revolving loan facility, net	1,500,000	1,600,000
Syndicated Facility Agreement | Term Loan
Debt Instrument [Line Items]
Long-term debt, gross	213,498,000	217,631,000
Term Loan and Senior Notes
Debt Instrument [Line Items]
Unamortized debt issuance costs, recorded as a reduction of long-term debt, net	$ 6,800,000	7,100,000
Senior Notes
Debt Instrument [Line Items]
Stated interest rate (percentage)	5.50%
Long-term debt, fair value	$ 289,500,000
Long-term debt, gross	$ 300,000,000	$ 300,000,000

Derivative Instruments - Narrat

Derivative Instruments - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 03, 2022	Jan. 02, 2022	Dec. 02, 2020
Interest Rate Swap
Derivative [Line Items]
Derivative, notional amount			$ 250
Accumulated other comprehensive income (loss), gain (loss) of discontinued cash flow hedge, before tax	$ (2.9)	$ (3.8)
Discontinued cash flow hedge, gain (loss) expected to be reclassified to earnings in the next twelve months	(2.3)
Foreign Currency Option
Derivative [Line Items]
Derivative, notional amount	$ 0	$ 0

Derivative Instruments - Deriva

Derivative Instruments - Derivatives Not Designated as Hedging Instruments (Details) $ in Thousands	3 Months Ended
	Apr. 04, 2021USD ($)
Derivative instruments not designated as hedging instruments | Foreign Currency Option | Other Expense, Net
Derivative [Line Items]
Foreign currency options gain	$ 185

Shareholders' Equity - Activity

Shareholders' Equity - Activity in Shareholders' Equity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 03, 2022	Apr. 04, 2021
Increase (Decrease) in Shareholders' Equity [Roll Forward]
Balance at beginning of period	$ 363,398
Net income	13,293	$ 6,938
Pension liability adjustment	1,539	89
Foreign currency translation adjustment	(13,184)	(19,597)
Reclassification out of accumulated other comprehensive loss - discontinued cash flow hedge	(641)	$ (749)
Balance at end of period	$ 366,880
Cash dividends declared, per common share (in dollars per share)	$ 0.01	$ 0.01
COMMON STOCK
Increase (Decrease) in Shareholders' Equity [Roll Forward]
Balance at beginning of period (in shares)	59,055	58,664
Balance at beginning of period	$ 5,905	$ 5,865
Restricted stock issuances (in shares)	303	376
Restricted stock issuances	$ 30	$ 38
Compensation expense related to stock awards, net of forfeitures and shares received for tax withholdings (in shares)	(30)	(26)
Compensation expense related to stock awards, net of forfeitures and shares received for tax withholdings	$ (2)	$ (2)
Balance at end of period (in shares)	59,328	59,014
Balance at end of period	$ 5,933	$ 5,901
ADDITIONAL PAID-IN CAPITAL
Increase (Decrease) in Shareholders' Equity [Roll Forward]
Balance at beginning of period	253,110	247,920
Restricted stock issuances	3,966	5,277
Unamortized compensation expense related to restricted stock awards	(3,996)	(5,315)
Compensation expense related to stock awards, net of forfeitures and shares received for tax withholdings	1,787	689
Balance at end of period	254,867	248,571
RETAINED EARNINGS
Increase (Decrease) in Shareholders' Equity [Roll Forward]
Balance at beginning of period	261,434	208,562
Net income	13,293	6,938
Cash dividends declared	(592)	(589)
Balance at end of period	274,135	214,911
PENSION LIABILITY
Increase (Decrease) in Shareholders' Equity [Roll Forward]
Balance at beginning of period	(53,888)	(69,288)
Pension liability adjustment	1,539	89
Balance at end of period	(52,349)	(69,199)
FOREIGN CURRENCY TRANSLATION ADJUSTMENT
Increase (Decrease) in Shareholders' Equity [Roll Forward]
Balance at beginning of period	(100,441)	(60,331)
Foreign currency translation adjustment	(13,184)	(19,597)
Balance at end of period	(113,625)	(79,928)
CASH FLOW HEDGE
Increase (Decrease) in Shareholders' Equity [Roll Forward]
Balance at beginning of period	(2,722)	(6,190)
Reclassification out of accumulated other comprehensive loss - discontinued cash flow hedge	641	749
Balance at end of period	$ (2,081)	$ (5,441)

Shareholders' Equity - Narrativ

Shareholders' Equity - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 03, 2022	Apr. 04, 2021
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock awards granted (in shares)	302,600	375,600
Stock compensation expense	$ 1.2	$ 0.7
Unrecognized compensation expense related to unvested restricted stock	$ 7.9
Restricted Stock | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	1 year
Restricted Stock | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	3 years
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock awards granted (in shares)	227,800
Stock compensation expense	$ 1	$ 0.2
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	$ 8.6
Performance Shares | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	1 year
Performance Shares | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	3 years
Restricted Stock and Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense, tax benefit	$ 0.3

Shareholders' Equity - Restrict

Shareholders' Equity - Restricted Stock Outstanding (Details) - Restricted Stock - $ / shares	3 Months Ended
	Apr. 03, 2022	Apr. 04, 2021
Shares
Outstanding at beginning of period (in shares)	683,800
Granted (in shares)	302,600	375,600
Vested (in shares)	(87,900)
Forfeited or canceled (in shares)	0
Outstanding at end of period (in shares)	898,500
Weighted Average Grant Date Fair Value
Outstanding at beginning of period, weighted average grant date fair value (in dollars per share)	$ 21.06
Granted, weighted average grant date fair value (in dollars per share)	13.21
Vested, weighted average grant date fair value (in dollars per share)	17.54
Forfeited or canceled, weighted average grant date fair value (in dollars per share)	0
Outstanding at end of period, weighted average grant date fair value (in dollars per share)	$ 18.76

Shareholders' Equity - Performa

Shareholders' Equity - Performance Shares Outstanding (Details) - Performance Shares	3 Months Ended
	Apr. 03, 2022$ / sharesshares
Shares
Outstanding at beginning of period (in shares) | shares	718,100
Granted (in shares) | shares	227,800
Vested (in shares) | shares	0
Forfeited or canceled (in shares) | shares	(115,100)
Outstanding at end of period (in shares) | shares	830,800
Weighted Average Grant Date Fair Value
Outstanding at beginning of period, weighted average grant date fair value (in dollars per share) | $ / shares	$ 14.98
Granted, weighted average grant date fair value (in dollars per share) | $ / shares	13.19
Vested, weighted average grant date fair value (in dollars per share) | $ / shares	0
Forfeited or canceled, weighted average grant date fair value (in dollars per share) | $ / shares	17.54
Outstanding at end of period, weighted average grant date fair value (in dollars per share) | $ / shares	$ 14.13

Leases - Narrative (Details)

Leases - Narrative (Details)	3 Months Ended
	Apr. 03, 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	Apr. 03, 2022	Jan. 02, 2022
Leases [Abstract]
Operating lease right-of-use assets	$ 85,323	$ 90,561
Current portion of operating lease liabilities	13,906	14,588
Operating lease liabilities	73,454	77,905
Total operating lease liabilities	87,360	92,493
Property, plant and equipment, net	$ 4,475	$ 6,547
Finance lease right-of-use asset, consolidated condensed balance sheet location	Property, plant and equipment, net	Property, plant and equipment, net
Accrued expenses	$ 1,806	$ 1,837
Finance lease liability, current, consolidated condensed balance sheet location	Accrued expenses	Accrued expenses
Other long-term liabilities	$ 3,055	$ 3,201
Finance lease liability, noncurrent, consolidated condensed balance sheet location	Other long-term liabilities	Other long-term liabilities
Total finance lease liabilities	$ 4,861	$ 5,038

Leases - Lease Costs (Details)

Leases - Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2022	Apr. 04, 2021
Leases [Abstract]
Finance lease cost: Amortization of right-of-use assets	$ 517	$ 279
Finance lease cost: Interest on lease liabilities	29	32
Operating lease cost	4,918	5,886
Short-term lease cost	227	463
Variable lease cost	616	806
Total lease cost	$ 6,307	$ 7,466

Leases - Other Supplemental Inf

Leases - Other Supplemental Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2022	Apr. 04, 2021
Statement of Financial Position [Abstract]
Operating cash flows from finance leases	$ 21	$ 32
Operating cash flows from operating leases	4,635	5,200
Financing cash flows from finance leases	479	527
Right-of-use assets obtained in exchange for new finance lease liabilities	382	1,273
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 20	$ 2,378

Leases - Lease Term and Discoun

Leases - Lease Term and Discount Rate (Details)	Apr. 03, 2022	Jan. 02, 2022
Statement of Financial Position [Abstract]
Weighted-average remaining lease term – finance leases (in years)	3 years 4 months 13 days	3 years 2 months 12 days
Weighted-average remaining lease term – operating leases (in years)	9 years 10 months 20 days	9 years 11 months 19 days
Weighted-average discount rate – finance leases (percentage)	2.90%	2.82%
Weighted-average discount rate – operating leases (percentage)	5.89%	5.87%

Leases - Maturity of Lease Paym

Leases - Maturity of Lease Payments (Details) - USD ($) $ in Thousands	Apr. 03, 2022	Jan. 02, 2022
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
2022 (excluding the three months ended April 3, 2022)	$ 13,077
2023	13,540
2024	11,980
2025	10,162
2026	10,387
Thereafter	59,149
Total future minimum lease payments (undiscounted)	118,295
Less: Present value discount	(30,935)
Total lease liability	87,360	$ 92,493
Lessee, Finance Lease, Liability, Payment, Due [Abstract]
2022 (excluding the three months ended April 3, 2022)	1,433
2023	1,582
2024	1,208
2025	487
2026	165
Thereafter	260
Total future minimum lease payments (undiscounted)	5,135
Less: Present value discount	(274)
Total lease liability	$ 4,861	$ 5,038

Employee Benefit Plans - Narrat

Employee Benefit Plans - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 03, 2022	Apr. 04, 2021
Retirement Plans (Europe)
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]
Multiemployer plan, employer contribution	$ 0.7	$ 0.7

Employee Benefit Plans - Schedu

Employee Benefit Plans - Schedule of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2022	Apr. 04, 2021
Retirement Plans (Europe)
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]
Interest cost	$ 916	$ 572
Expected return on plan assets	(1,059)	(849)
Amortization of prior service cost	32	29
Amortization of net actuarial losses	275	404
Net periodic benefit cost	164	156
Salary Continuation Plan | United States
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]
Interest cost	193	176
Amortization of net actuarial losses	139	186
Net periodic benefit cost	332	362
nora Defined Benefit Plan
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]
Service cost	225	277
Interest cost	110	103
Amortization of net actuarial losses	50	92
Net periodic benefit cost	$ 385	$ 472

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Changes in Carrying Amounts of Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2022	Jan. 02, 2022
Goodwill and Intangible Assets [Line Items]
Goodwill balance	$ 139,810	$ 147,025
Goodwill, foreign currency translation	(7,215)
Operating Segments | AMS
Goodwill and Intangible Assets [Line Items]
Goodwill balance	103,180	108,505
Goodwill, foreign currency translation	(5,325)
Operating Segments | EAAA
Goodwill and Intangible Assets [Line Items]
Goodwill balance	36,630	$ 38,520
Goodwill, foreign currency translation	$ (1,890)

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions	Apr. 03, 2022	Jan. 02, 2022
Goodwill [Abstract]
Carrying value of intangible assets, net (excluding goodwill)	$ 72.6	$ 76.2

Segment Information - Narrative

Segment Information - Narrative (Details) $ in Millions	3 Months Ended
	Apr. 03, 2022USD ($)	Apr. 04, 2021USD ($)
Segment Reporting [Abstract]
Number of operating segments	2
Number of reportable segments	2
Intersegment revenues	$ 17.3	$ 15.7

Segment Information - Operating

Segment Information - Operating Segments (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2022	Apr. 04, 2021
Segment Reporting Information [Line Items]
Net sales	$ 288,002	$ 253,260
Depreciation and amortization	10,670	11,934
Operating Segments | AMS
Segment Reporting Information [Line Items]
Net sales	156,509	126,967
AOI	21,138	11,913
Depreciation and amortization	4,058	4,723
Operating Segments | EAAA
Segment Reporting Information [Line Items]
Net sales	131,493	126,293
AOI	9,504	8,011
Depreciation and amortization	$ 6,612	$ 7,211

Segment Information - Reconcili

Segment Information - Reconciliation of Segment Assets (Details) - USD ($) $ in Thousands	Apr. 03, 2022	Jan. 02, 2022
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	$ 1,309,785	$ 1,330,057
Operating Segments
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	1,234,528	1,344,267
Operating Segments | AMS
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	546,993	652,423
Operating Segments | EAAA
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	687,535	691,844
Corporate, Non-Segment
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	132,386	146,204
Eliminations
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	$ (57,129)	$ (160,414)

Segment Information - Reconci_2

Segment Information - Reconciliation of Segment AOI (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2022	Apr. 04, 2021
Segment Reporting, Reconciling Item for Operating Income from Segment to Consolidated [Line Items]
Operating income	$ 27,420	$ 16,866
Interest expense	6,850	7,256
Other expense, net	170	715
Income before income tax expense	20,400	8,895
Purchase accounting amortization	1,342	1,421
Operating Segments | AMS
Segment Reporting, Reconciling Item for Operating Income from Segment to Consolidated [Line Items]
Operating income	21,250	11,647
Purchase accounting amortization	0	0
Thailand plant closure inventory write-down	0	0
Restructuring, asset impairment, severance and other charges	(112)	266
AOI	21,138	11,913
Operating Segments | EAAA
Segment Reporting, Reconciling Item for Operating Income from Segment to Consolidated [Line Items]
Operating income	6,170	5,219
Purchase accounting amortization	1,342	1,421
Thailand plant closure inventory write-down	1,115	0
Restructuring, asset impairment, severance and other charges	877	1,371
AOI	$ 9,504	$ 8,011

Supplemental Cash Flow Inform_2

Supplemental Cash Flow Information - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 03, 2022	Apr. 04, 2021
Supplemental Cash Flow Information [Abstract]
Cash payments for interest	$ 1.3	$ 1.6
Income tax payments, net of refunds	2.8	$ 3.2
Accrued Expenses
Non-Cash Financing Activities [Line Items]
Cash dividends declared on common stock	$ 0.6

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2022	Apr. 04, 2021
Income Tax Disclosure [Abstract]
Income tax expense	$ 7,107	$ 1,957
Income before income tax expense	$ 20,400	$ 8,895
Effective income tax rate (percentage)	34.80%	22.00%
Unrecognized tax benefits, period increase (decrease)	$ 300
Unrecognized tax benefits	8,500
Decrease in deferred tax assets	2,800
Amount of unrecognized tax benefit reasonably possible to be recognized in next twelve months	$ 2,600

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	3 Months Ended
	Apr. 03, 2022	Apr. 04, 2021
Reclassification Adjustment out of Accumulated Other Comprehensive Loss
Total loss reclassified from accumulated other comprehensive loss	$ (1,389)	$ (1,772)
Interest Expense
Reclassification Adjustment out of Accumulated Other Comprehensive Loss
Interest rate swap contracts loss	(893)	(1,061)
Other Expense, Net
Reclassification Adjustment out of Accumulated Other Comprehensive Loss
Amortization of benefit plan net actuarial losses and prior service cost	$ (496)	$ (711)

Restructuring and Other Charg_3

Restructuring and Other Charges - Restructuring and Asset Impairment Charges by Reportable Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2022	Apr. 04, 2021
Restructuring Activities [Line Items]
Restructuring and asset impairment charges	$ 887	$ (130)
Operating Segments | AMS
Restructuring Activities [Line Items]
Restructuring and asset impairment charges	0	0
Operating Segments | EAAA
Restructuring Activities [Line Items]
Restructuring and asset impairment charges	$ 887	$ (130)

Restructuring and Other Charg_4

Restructuring and Other Charges - Summary of Restructuring Reserve (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2022	Apr. 04, 2021	Jan. 02, 2022
Restructuring Activities [Line Items]
Restructuring reserve balance	$ 1,301		$ 2,354
Restructuring and asset impairment charges	887	$ (130)
Deductions	(1,054)
Charged to other accounts	(886)
2021 Restructuring Plan | Workforce Reduction
Restructuring Activities [Line Items]
Restructuring reserve balance	1,301		2,257
Restructuring and asset impairment charges	1
Deductions	(957)
2021 Restructuring Plan | Asset Impairment
Restructuring Activities [Line Items]
Restructuring and asset impairment charges	886
Charged to other accounts	(886)
2019 Restructuring Plan | Workforce Reduction
Restructuring Activities [Line Items]
Restructuring reserve balance	0		$ 97
Restructuring and asset impairment charges	0
Deductions	$ (97)

Restructuring and Other Charg_5

Restructuring and Other Charges - Narrative (Details) $ in Thousands	Sep. 08, 2021	Apr. 03, 2022USD ($)	Apr. 04, 2021USD ($)
Operating Segments | EAAA
Restructuring Activities [Line Items]
Thailand plant closure inventory write-down		$ 1,115	$ 0
2021 Restructuring Plan
Restructuring Activities [Line Items]
Number of employees eliminated	188
Expected annualized savings from restructuring		1,700
2021 Restructuring Plan | Minimum
Restructuring Activities [Line Items]
Cash expenditures for restructuring		3,000
2021 Restructuring Plan | Maximum
Restructuring Activities [Line Items]
Cash expenditures for restructuring		4,000
2021 Restructuring Plan | Operating Segments | EAAA | Cost of Sales
Restructuring Activities [Line Items]
Thailand plant closure inventory write-down		$ 1,100

Restructuring and Other Charg_6

Restructuring and Other Charges - Expected and Cumulative Charges (Details) - 2021 Restructuring Plan - Operating Segments - EAAA $ in Thousands	Apr. 03, 2022USD ($)
Restructuring Activities [Line Items]
Cumulative charges incurred to date	$ 4,794
Minimum
Restructuring Activities [Line Items]
Estimated expected charges	5,000
Maximum
Restructuring Activities [Line Items]
Estimated expected charges	6,000
Workforce Reduction
Restructuring Activities [Line Items]
Estimated expected charges	2,258
Cumulative charges incurred to date	2,258
Retention Bonuses
Restructuring Activities [Line Items]
Estimated expected charges	500
Cumulative charges incurred to date	0
Asset Impairment
Restructuring Activities [Line Items]
Estimated expected charges	2,536
Cumulative charges incurred to date	$ 2,536