Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 16, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
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 | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 498,487,536 | ||
Entity Common Stock, Shares Outstanding | 58,200,963 | ||
Entity Central Index Key | 0000715787 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2023 | ||
Documents Incorporated by Reference | Portions of the Proxy Statement for the 2024 Annual Meeting of Shareholders are incorporated by reference into Part III. |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | BDO USA, P.C. |
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 | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Income Statement [Abstract] | |||
Net sales | $ 1,261,498 | $ 1,297,919 | $ 1,200,398 |
Cost of sales | 820,429 | 860,186 | 767,665 |
Gross profit | 441,069 | 437,733 | 432,733 |
Selling, general and administrative expenses | 339,049 | 324,190 | 324,315 |
Restructuring, asset impairment, other (gains) and charges | (2,502) | 1,965 | 3,621 |
Goodwill and intangible asset impairment charge | 0 | 36,180 | 0 |
Operating income | 104,522 | 75,398 | 104,797 |
Interest expense | 31,787 | 29,929 | 29,681 |
Other expense, net | 9,081 | 3,552 | 2,483 |
Income before income tax expense | 63,654 | 41,917 | 72,633 |
Income tax expense | 19,137 | 22,357 | 17,399 |
Net income | $ 44,517 | $ 19,560 | $ 55,234 |
Earnings per share – basic (in dollars per share) | $ 0.77 | $ 0.33 | $ 0.94 |
Earnings per share – diluted (in dollars per share) | $ 0.76 | $ 0.33 | $ 0.94 |
Common shares outstanding – basic (in shares) | 58,092 | 58,865 | 58,971 |
Common shares outstanding – diluted (in shares) | 58,335 | 58,865 | 58,971 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 44,517 | $ 19,560 | $ 55,234 |
Other comprehensive income (loss), after tax: | |||
Foreign currency translation adjustment | 19,185 | (38,334) | (40,110) |
Reclassification from accumulated other comprehensive loss – discontinued cash flow hedge | 749 | 1,973 | 3,468 |
Pension liability adjustment | (6,468) | 26,340 | 15,400 |
Other comprehensive income (loss) | 13,466 | (10,021) | (21,242) |
Comprehensive income | $ 57,983 | $ 9,539 | $ 33,992 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 |
Current assets | ||
Cash and cash equivalents | $ 110,498 | $ 97,564 |
Accounts receivable, net | 163,386 | 182,807 |
Inventories, net | 279,079 | 306,327 |
Prepaid expenses and other current assets | 30,895 | 30,339 |
Total current assets | 583,858 | 617,037 |
Property, plant and equipment, net | 291,140 | 297,976 |
Operating lease right-of-use assets | 87,519 | 81,644 |
Deferred tax asset | 21,721 | 17,767 |
Goodwill | 105,448 | 102,417 |
Intangible assets, net | 56,255 | 59,778 |
Other assets | 84,154 | 89,884 |
Total assets | 1,230,095 | 1,266,503 |
Current liabilities | ||
Accounts payable | 62,912 | 78,264 |
Accrued expenses | 130,890 | 120,138 |
Current portion of operating lease liabilities | 12,347 | 11,857 |
Current portion of long-term debt | 8,572 | 10,211 |
Total current liabilities | 214,721 | 220,470 |
Long-term debt | 408,641 | 510,003 |
Operating lease liabilities | 78,269 | 72,305 |
Deferred income taxes | 33,832 | 38,662 |
Other long-term liabilities | 68,685 | 63,526 |
Total liabilities | 804,148 | 904,966 |
Commitments and contingencies (Note 18) | ||
Shareholders’ equity | ||
Preferred stock, par value $1.00 per share; 5,000 shares authorized; none issued or outstanding at December 31, 2023 and January 1, 2023 | 0 | 0 |
Common stock, par value $0.10 per share; 120,000 shares authorized; 58,112 and 58,106 shares issued and outstanding at December 31, 2023 and January 1, 2023, respectively | 5,811 | 5,811 |
Additional paid-in capital | 252,909 | 244,159 |
Retained earnings | 320,833 | 278,639 |
Accumulated other comprehensive loss – foreign currency translation | (119,590) | (138,775) |
Accumulated other comprehensive loss – cash flow hedge | 0 | (749) |
Accumulated other comprehensive loss – pension liability | (34,016) | (27,548) |
Total shareholders’ equity | 425,947 | 361,537 |
Total liabilities and shareholders’ equity | $ 1,230,095 | $ 1,266,503 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
OPERATING ACTIVITIES: | |||
Net income | $ 44,517 | $ 19,560 | $ 55,234 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 40,774 | 40,337 | 46,345 |
Share-based compensation expense | 10,265 | 8,527 | 5,467 |
(Gain) loss on disposal of property, plant and equipment, net | (2,252) | 4,319 | 4,427 |
Loss on foreign subsidiary liquidation | 6,221 | 0 | 0 |
Bad debt expense | 53 | 26 | (263) |
Deferred income taxes and other | (8,809) | 13,414 | (16,379) |
Amortization of acquired intangible assets | 5,172 | 5,038 | 5,636 |
Goodwill and intangible asset impairment charge | 0 | 36,180 | 0 |
Working capital changes: | |||
Accounts receivable | 21,798 | (17,489) | (36,096) |
Inventories | 31,040 | (49,651) | (47,074) |
Prepaid expenses and other current assets | (302) | 7,020 | (4,800) |
Accounts payable and accrued expenses | (6,443) | (24,220) | 74,192 |
Cash provided by operating activities | 142,034 | 43,061 | 86,689 |
INVESTING ACTIVITIES: | |||
Capital expenditures | (26,107) | (18,437) | (28,071) |
Proceeds from sale of property, plant and equipment | 6,593 | 0 | 0 |
Cash used in investing activities | (19,514) | (18,437) | (28,071) |
FINANCING ACTIVITIES: | |||
Revolving loan borrowing | 90,000 | 206,031 | 76,000 |
Revolving loan repayments | (114,381) | (189,281) | (71,500) |
Term loan repayments | (80,927) | (13,191) | (60,485) |
Repurchase of common stock | 0 | (17,171) | 0 |
Dividends paid | (2,323) | (2,355) | (2,362) |
Tax withholding payments for share-based compensation | (1,514) | (402) | (193) |
Debt issuance costs | 0 | (1,032) | (36) |
Finance lease payments | (2,419) | (2,089) | (2,282) |
Cash used in financing activities | (111,564) | (19,490) | (60,858) |
Net cash provided by (used in) operating, investing and financing activities | 10,956 | 5,134 | (2,240) |
Effect of exchange rate changes on cash | 1,978 | (4,822) | (3,561) |
CASH AND CASH EQUIVALENTS: | |||
Net increase (decrease) | 12,934 | 312 | (5,801) |
Balance, beginning of year | 97,564 | 97,252 | 103,053 |
Balance, end of year | $ 110,498 | $ 97,564 | $ 97,252 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2023 | Jan. 01, 2023 |
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) | 58,112,000 | 58,106,000 |
Common stock, shares outstanding (in shares) | 58,112,000 | 58,106,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
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”), 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. The Company has determined that it has two operating and reportable segments – namely Americas (“AMS”) which includes the United States, Canada and Latin America geographic areas, and Europe, Africa, Asia and Australia (collectively “EAAA”). See Note 20 entitled “Segment Information” for additional information. Cybersecurity Event On November 20, 2022, we discovered a cybersecurity attack, perpetrated by unauthorized third parties, affecting our IT systems (the “Cyber Event”). In response to this Cyber Event, we notified law enforcement and took steps to supplement existing security monitoring, including scanning and protective measures. The investigation of the Cyber Event was completed during 2023. 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, inventory obsolescence and the length of product life cycles, accruals associated with restructuring activities, income tax exposures and valuation allowances, and the carrying value of goodwill, intangible assets and property, plant and equipment. Actual results could vary from these estimates. Risks and Uncertainties Global economic challenges, including the impacts of the Russia-Ukraine and Israel-Hamas wars, inflation, supply chain disruptions, and the slow post COVID-19 recovery in China could cause economic uncertainty and volatility. In connection with the Cyber Event discussed above, security breaches may expose us to fines and other liabilities to the extent sensitive data stored in our IT systems, including data related to customers, suppliers or employees, are misappropriated. Any potential fine or other liability is not probable nor estimable at this time. The Company considered these impacts and subsequent general uncertainties and volatility in the global economy on the assumptions and estimates used herein, including the goodwill and intangible asset assessments and impairments discussed in Note 12 entitled “Goodwill and Other Intangible Assets.” These uncertainties could result in a future material adverse effect to the Company’s financial statements if actual results differ from these estimates. 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. Revenue from the sale of modular carpet, resilient flooring, rubber flooring, and related products (TacTiles installation materials, etc.) was approximately 98% of the Company’s total revenue in 2023, approximately 97% of the Company’s total revenue in 2022, and approximately 98% of the Company’s total revenue in 2021. 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 of approximately 2% for 2023, approximately 3% for 2022, and approximately 2% for 2021 was generated from the installation of carpet and other flooring-related material. For installation 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 typically 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 it 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 2023, 2022 and 2021. 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. Advertising and Promotion The Company’s advertising and promotional activities primarily consist of product samples, printed materials, digital marketing, trade shows, and customer events. Advertising and promotional costs are expensed when the advertising / promotional activity first takes place. Advertising and promotional expenses were $34.6 million, $31.3 million and $28.4 million for the years 2023, 2022 and 2021, respectively, and were recorded in selling, general and administrative (“SG&A”) expenses in the consolidated statements of operations. Research and Development Research and development costs are expensed as incurred and are included in SG&A expenses and cost of sales in the consolidated statements of operations. Research and development expense includes costs associated with the development of new products as well as the improvement and enhancement of existing products. Research and development expense was $17.0 million, $19.1 million, and $19.3 million for the years 2023, 2022 and 2021, respectively. Cash, Cash Equivalents and Short-Term Investments Highly liquid investments 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 December 31, 2023 and January 1, 2023. Supplemental Cash Flow Information Cash payments for interest amounted to approximately $28.8 million, $25.1 million, and $22.9 million for the years 2023, 2022 and 2021, respectively. Income tax payments amounted to approximately $25.8 million, $31.4 million and $23.1 million for the years 2023, 2022 and 2021, respectively. During the years 2023, 2022 and 2021, the Company received income tax refunds of $2.5 million, $12.4 million and $5.4 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 may continue to change, and the Company could experience additional inventory write-downs in the future. 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 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, Plant and Equipment and Long-Lived Assets Property, plant 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 three 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 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 2023, 2022 and 2021, the Company performed the annual goodwill impairment test. The Company tests goodwill at the reporting unit level, which is an operating segment or one level below an operating segment. In performing the impairment testing, the Company prepared valuations of reporting units on both a market comparable methodology and an income methodology, and those valuations were compared with the respective carrying values of the reporting units to determine whether any goodwill impairment existed. In preparing the valuations, past, present and future expectations of performance were considered. See Note 12 entitled “Goodwill and Other Intangible Assets” for additional information. Trademark and trade name 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. For the annual tests performed in 2023, 2022, and 2021, 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 Other Intangible Assets” for additional information. The Company’s other intangible assets primarily 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 $4.3 million and $2.1 million as of December 31, 2023 and January 1, 2023, 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 has elected to account for tax effects of the global intangible low-taxed income (“GILTI”) in the period when incurred, and therefore has not provided any deferred tax impacts for these provisions in its consolidated financial statements. 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 most 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 each month at average monthly exchange rates throughout the year. The resulting translation adjustments are recorded in the foreign currency translation adjustment account. In the event of a divestiture or substantial liquidation of a foreign subsidiary, the related foreign currency translation results are reclassified from equity to income. Foreign exchange translation gains (losses) were $19.2 million, $(38.3) million, and $(40.1) million for the years 2023, 2022 and 2021, 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 potential increase in average common shares outstanding that would result from share-based awards or the assumed exercise of outstanding stock options, calculated using the treasury stock method. See Note 15 entitled “Earnings Per Share” for additional information. Share-Based Compensation The Company has share-based employee compensation plans, which are described more fully in Note 14 entitled “Shareholders' Equity.” The Company recognizes expense related to its restricted stock, restricted share unit 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. 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 Prior period amounts for goodwill and intangible assets, net, in the consolidated balance sheets have been reclassified to conform with the current period presentation. Additionally, prior period amounts for the major classes of assets representing property, plant and equipment, as disclosed in Note 7 entitled “Property, Plant and Equipment,” have been reclassified to conform with the current presentation. These reclassifications had no effect on total assets as previously reported. Fiscal Year The Company’s fiscal year is the 52 or 53 week period ending on the Sunday nearest December 31. All references herein to “2023,” “2022,” and “2021,” mean the fiscal years ended December 31, 2023, January 1, 2023, and January 2, 2022, respectively. Fiscal years 2023, 2022 and 2021 were each comprised of 52 weeks. |
Risks and Uncertainties | Risks and Uncertainties |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS Recently Issued Accounting Pronouncements – Adopted In July 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-03, “ Presentation of Financial Statements (Topic 205), Income Statement — Reporting Comprehensive Income (Topic 220), Distinguishing Liabilities from Equity (Topic 480), Equity (Topic 505), Compensation — Stock Compensation (Topic 718) .” This ASU amends various paragraphs in the accounting codification pursuant to the issuance of Commission Staff Accounting Bulletin (“SAB”) number 120. The ASU provides clarifying guidance related to employee and non-employee share-based payment accounting, including guidance related to spring-loaded awards. ASU 2023-03 was effective upon issuance. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. In June 2022, the FASB issued ASU 2022-03, “ Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions .” This ASU clarifies that a contractual restriction on the sale of an equity security is not considered in measuring fair value. The ASU also requires certain disclosures for equity securities subject to contractual sale restrictions. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023. Early adoption was permitted. The Company adopted this standard on April 2, 2023. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements – Not Yet Adopted In December 2023, the FASB issued ASU 2023-09, “ Income Taxes (Topic 740 ): Improvements to Income Tax Disclosures. ” This ASU requires public entities on an annual basis to disclose a rate reconciliation with explicit categories, as outlined in the ASU, and requires additional disclosures for reconciling items that meet certain quantitative thresholds. Other disclosures include disaggregation of income taxes paid, pre-tax income, and income tax expense. The new guidance is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of this ASU to its income tax disclosures. In November 2023, the FASB issued ASU 2023-07, “ Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. |
Reclassifications | Reclassifications Prior period amounts for goodwill and intangible assets, net, in the consolidated balance sheets have been reclassified to conform with the current period presentation. Additionally, prior period amounts for the major classes of assets representing property, plant and equipment, as disclosed in Note 7 entitled “Property, Plant and Equipment,” have been reclassified to conform with the current presentation. These reclassifications had no effect on total assets as previously reported. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS Recently Issued Accounting Pronouncements – Adopted In July 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-03, “ Presentation of Financial Statements (Topic 205), Income Statement — Reporting Comprehensive Income (Topic 220), Distinguishing Liabilities from Equity (Topic 480), Equity (Topic 505), Compensation — Stock Compensation (Topic 718) .” This ASU amends various paragraphs in the accounting codification pursuant to the issuance of Commission Staff Accounting Bulletin (“SAB”) number 120. The ASU provides clarifying guidance related to employee and non-employee share-based payment accounting, including guidance related to spring-loaded awards. ASU 2023-03 was effective upon issuance. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. In June 2022, the FASB issued ASU 2022-03, “ Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions .” This ASU clarifies that a contractual restriction on the sale of an equity security is not considered in measuring fair value. The ASU also requires certain disclosures for equity securities subject to contractual sale restrictions. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023. Early adoption was permitted. The Company adopted this standard on April 2, 2023. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements – Not Yet Adopted In December 2023, the FASB issued ASU 2023-09, “ Income Taxes (Topic 740 ): Improvements to Income Tax Disclosures. ” This ASU requires public entities on an annual basis to disclose a rate reconciliation with explicit categories, as outlined in the ASU, and requires additional disclosures for reconciling items that meet certain quantitative thresholds. Other disclosures include disaggregation of income taxes paid, pre-tax income, and income tax expense. The new guidance is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of this ASU to its income tax disclosures. In November 2023, the FASB issued ASU 2023-07, “ Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2023 | |
Revenues [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION The Company generates revenue from sales of modular carpet, resilient flooring, rubber flooring, and other flooring-related material, and from the installation of carpet and other flooring-related material. A summary of these revenue streams, as a percentage of net sales, for fiscal years 2023, 2022 and 2021 is a follows: Fiscal Year 2023 2022 2021 Revenue from the sale of flooring material 98 % 97 % 98 % Revenue from installation of flooring material 2 % 3 % 2 % Disaggregation of Revenue For fiscal years 2023, 2022 and 2021, revenue from the Company’s customers is broken down by geography as follows: Fiscal Year Geography 2023 2022 2021 Americas 58.4 % 58.0 % 54.3 % Europe 30.1 % 29.2 % 31.7 % Asia-Pacific 11.5 % 12.8 % 14.0 % 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 |
Dec. 31, 2023 | |
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 a change in their ability to make payments, additional allowances may be required. As of December 31, 2023, and January 1, 2023, the allowance for expected credit losses amounted to $3.0 million and $4.0 million, respectively, for all accounts receivable of the Company. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
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: December 31, 2023 January 1, 2023 Carrying Value Fair Value (Level 1) Fair Value (Level 2) Carrying Value Fair Value (Level 1) Fair Value (Level 2) (in thousands) Assets: Company-owned life insurance $ 22,788 $ — $ 22,788 $ 22,616 $ — $ 22,616 Deferred compensation investments 28,417 9,200 19,217 27,610 11,003 16,607 Liabilities (1) : Borrowings under Syndicated Credit Facility (2) $ 121,658 $ — $ 121,658 $ 226,332 $ — $ 226,332 5.50% Senior Notes due 2028 (3) 300,000 — 281,991 300,000 — 248,652 (1) Carrying values are presented gross, excluding the impact of unamortized debt issuance costs and including amounts presented as current liabilities on the consolidated balance sheets. (2) Unamortized debt issuance costs associated with term loan borrowings under the Syndicated Credit Facility, recorded as a reduction of long-term debt in the consolidated balance sheets, were $1.0 million and $1.9 million as of December 31, 2023 and January 1, 2023, respectively. (3) Unamortized debt issuance costs associated with the Senior Notes, recorded as a reduction of long-term debt in the consolidated balance sheets, were $3.4 million and $4.2 million as of December 31, 2023 and January 1, 2023, respectively. 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. Changes in the fair value of Company-owned life insurance are recognized in SG&A expenses in the consolidated statements of operations. Deferred Compensation Investments Assets associated with the Company’s nonqualified 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 nonqualified savings plans. These investments are recorded at fair value within other assets in the consolidated balance sheets. Changes in the fair value of the investments associated with the nonqualified savings plans are recognized in SG&A expenses in the consolidated statements of operations. See Note 19 entitled “Employee Benefit Plans” for additional information on the Company’s nonqualified 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 |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Inventories are summarized as follows: End of Fiscal Year 2023 2022 (in thousands) Finished goods $ 201,821 $ 209,478 Work-in-process 20,892 15,463 Raw materials 56,366 81,386 Inventories, net $ 279,079 $ 306,327 Reserves for inventory obsolescence amounted to $34.0 million and $28.5 million as of December 31, 2023 and January 1, 2023, respectively, and have been netted against amounts presented above. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
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 2023 2022 (in thousands) Land $ 15,810 $ 16,307 Buildings and improvements 162,359 169,370 Equipment, furniture and fixtures (1) 533,418 511,916 Computer software 66,792 66,826 Construction-in-progress (2) 21,577 24,066 799,956 788,485 Accumulated depreciation and amortization (3) (508,816) (490,509) Property, plant and equipment, net $ 291,140 $ 297,976 (1) Includes $11.9 million and $9.9 million of leased equipment for 2023 and 2022, respectively. (2) Construction-in-progress costs are presented as a separate asset category. Amounts for 2022, that were previously allocated to each asset class, have been reclassified to conform to the current presentation. (3) Includes $4.7 million and $4.1 million of accumulated amortization on leased equipment for 2023 and 2022, respectively. Assets Disposed On September 8, 2021, the Company announced a restructuring plan that involved the closure of its manufacturing facility in Thailand and committed to a plan to sell the Thailand facility in connection with this restructuring plan. See Note 16 entitled “Restructuring and Other” for additional information. During the second quarter of 2023, the Company completed the sale of the Thailand facility for a selling price of $6.6 million and recognized a gain of $2.7 million, which is recorded in restructuring, asset impairment, other (gains) and charges in the consolidated statements of operations and is attributable to the EAAA reportable segment. The Company determined that the Thailand facility sale did not meet the criteria for classification as discontinued operations. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | ACCRUED EXPENSES Accrued expenses are summarized as follows: End of Fiscal Year 2023 2022 (in thousands) Compensation $ 87,265 $ 80,215 Interest 1,338 2,033 Restructuring — 456 Taxes 18,300 17,092 Accrued purchases 5,141 4,609 Warranty and sales allowances 4,302 2,091 Other 14,544 13,642 Accrued expenses $ 130,890 $ 120,138 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | LONG-TERM DEBT Long-term debt consisted of the following: December 31, 2023 January 1, 2023 Outstanding Principal Interest Rate (1) Outstanding Principal Interest Rate (1) (in thousands) (in thousands) Syndicated Credit Facility: Revolving loan borrowings $ — — % $ 24,250 5.29 % Term loan borrowings 121,658 6.61 % 202,082 5.84 % Total borrowings under Syndicated Credit Facility 121,658 6.61 % 226,332 5.78 % 5.50% Senior Notes due 2028 300,000 5.50 % 300,000 5.50 % Total debt 421,658 526,332 Less: Unamortized debt issuance costs (4,445) (6,118) Total debt, net 417,213 520,214 Less: Current portion of long-term debt (8,572) (10,211) Total long-term debt, net $ 408,641 $ 510,003 (1) Represents the weighted average rate of interest for borrowings under the Syndicated Credit Facility and the stated rate of interest for the 5.50% Senior Notes due 2028, without the effect of debt issuance costs. Syndicated Credit Facility The Company’s 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 December 31, 2023, 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 December 31, 2023, the Company had available borrowing capacity of $298.4 million under the revolving loan facility. Significant Facility Amendments 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. On October 14, 2022, the Company entered into a fifth amendment to its Facility. The fifth amendment provided for, among other changes, the following amendments to the Facility: • the amendment of the maturity date of the Facility to October 2027; and • amendments to replace the LIBOR benchmark interest rates applicable to all loans denominated in U.S. dollars with the SOFR benchmark interest rates. In connection with the fifth amendment, the Company recognized a loss on extinguishment of debt of $0.1 million within interest expense in the consolidated statement of operations and recorded approximately $1.0 million of debt issuance costs. Of this amount, approximately $0.4 million of debt issuance costs associated with term loan borrowings was recorded as a reduction of long-term debt, and approximately $0.7 million of debt issuance costs associated with revolving loan borrowings was recorded in other assets in the consolidated balance sheets. 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 SOFR-based and alternative currency loans are charged at varying rates computed by applying a margin ranging from 1.25% to 3.00% over the applicable SOFR rate or alternative currency 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. Fees for commercial letters of credit are computed as 1.00% per annum of the amount available to be drawn under such letters of credit. Fees for standby letters of credit are charged at varying rates computed by applying a margin ranging from 1.25% to 3.00% per annum of the amount available to be drawn under such standby letters of credit, depending on the Company’s consolidated net leverage ratio as of the most recently completed fiscal quarter. 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 receivable, or exercising proxies to take control of the pledged stock of domestic and first-tier material foreign subsidiaries. As of both December 31, 2023 and January 1, 2023, 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 in compliance with all covenants under the Facility and anticipates that it will remain in compliance with the covenants for the foreseeable future. Senior Notes due 2028 As of December 31, 2023, the Company had $300.0 million of Senior Notes outstanding. 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 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 had the option to 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 also had the option to 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. The Company did not elect to redeem the Senior Notes, in whole or in part, before December 1, 2023. 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. The Company is in compliance with all covenants under the indenture governing the Senior Notes and anticipates that it will remain in compliance with the covenants for the foreseeable future. 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. Debt Issuance 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 December 31, 2023 and January 1, 2023, the unamortized debt issuance costs recorded as a reduction of long-term debt were $4.4 million and $6.1 million, respectively. Expenses related to such costs for the years 2023, 2022 and 2021 amounted to $1.7 million, $1.2 million, and $1.6 million, respectively. Debt issuance costs related to the issuance of revolving debt, which include underwriting, legal and other direct costs, net of accumulated amortization, were $1.4 million and $1.8 million, as of December 31, 2023 and January 1, 2023, respectively. These amounts are included in other 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 amounted to $0.4 million for each of the years 2023, 2022 and 2021. Future Maturities The aggregate maturities of borrowings for each of the five fiscal years subsequent to 2023 are as follows: Fiscal Year Amount (in thousands) 2024 $ 8,572 2025 8,572 2026 8,572 2027 95,942 2028 300,000 Total debt $ 421,658 Total long-term debt in the consolidated balance sheets includes a reduction for unamortized debt issuance costs of $4.4 million which are excluded from the maturities table above. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2023 | |
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 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 21 entitled “Items Reclassified From Accumulated Other Comprehensive Loss” for additional information. As of December 31, 2023, all amounts related to the terminated interest rate swaps have been recognized in the consolidated statements of operations, and there was no remaining balance in accumulated other comprehensive loss associated with the terminated interest rate swaps. As of January 1, 2023, the remaining accumulated other comprehensive loss associated with the terminated interest rate swaps to be amortized to earnings over the remaining term of the interest rate swaps prior to termination, before tax, was $1.0 million. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
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 December 31, 2023, there were no significant leases that had not commenced. The table below represents a summary of the balances recorded in the consolidated balance sheets related to the Company’s leases as of December 31, 2023 and January 1, 2023: December 31, 2023 January 1, 2023 Balance Sheet Location Operating Leases Finance Leases Operating Leases Finance Leases (in thousands) Operating lease right-of-use assets $ 87,519 $ 81,644 Current portion of operating lease liabilities $ 12,347 $ 11,857 Operating lease liabilities 78,269 72,305 Total operating lease liabilities $ 90,616 $ 84,162 Property, plant and equipment, net $ 7,236 $ 5,845 Accrued expenses $ 2,587 $ 2,101 Other long-term liabilities 5,035 4,138 Total finance lease liabilities $ 7,622 $ 6,239 Lease Costs Fiscal Year 2023 2022 2021 (in thousands) Finance lease cost: Amortization of right-of-use assets $ 2,808 $ 2,238 $ 2,653 Interest on lease liabilities 319 164 140 Operating lease cost 18,850 18,916 21,581 Short-term lease cost 1,143 849 977 Variable lease cost 2,509 2,692 2,831 Total lease cost $ 25,629 $ 24,859 $ 28,182 Other Supplemental Information Fiscal Year 2023 2022 2021 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 237 $ 128 $ 108 Operating cash flows from operating leases 15,552 18,080 22,210 Financing cash flows from finance leases 2,419 2,089 2,282 Right-of-use assets obtained in exchange for new finance lease liabilities 3,612 3,436 3,259 Right-of-use assets obtained in exchange for new operating lease liabilities 15,561 9,307 13,330 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 December 31, 2023 and January 1, 2023: End of Fiscal Year 2023 2022 Weighted-average remaining lease term – finance leases (in years) 3.70 3.82 Weighted-average remaining lease term – operating leases (in years) 8.29 9.29 Weighted-average discount rate – finance leases 5.51 % 3.79 % Weighted-average discount rate – operating leases 6.25 % 5.89 % Maturity Analysis A maturity analysis of lease payments under non-cancellable leases is presented as follows: Fiscal Year Operating Leases Finance Leases (in thousands) 2024 $ 16,955 $ 2,921 2025 16,287 2,111 2026 16,196 1,545 2027 13,417 1,105 2028 10,930 570 Thereafter 43,725 244 Total future minimum lease payments (undiscounted) 117,510 8,496 Less: Present value discount (26,894) (874) Total lease liabilities $ 90,616 $ 7,622 |
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 December 31, 2023, there were no significant leases that had not commenced. The table below represents a summary of the balances recorded in the consolidated balance sheets related to the Company’s leases as of December 31, 2023 and January 1, 2023: December 31, 2023 January 1, 2023 Balance Sheet Location Operating Leases Finance Leases Operating Leases Finance Leases (in thousands) Operating lease right-of-use assets $ 87,519 $ 81,644 Current portion of operating lease liabilities $ 12,347 $ 11,857 Operating lease liabilities 78,269 72,305 Total operating lease liabilities $ 90,616 $ 84,162 Property, plant and equipment, net $ 7,236 $ 5,845 Accrued expenses $ 2,587 $ 2,101 Other long-term liabilities 5,035 4,138 Total finance lease liabilities $ 7,622 $ 6,239 Lease Costs Fiscal Year 2023 2022 2021 (in thousands) Finance lease cost: Amortization of right-of-use assets $ 2,808 $ 2,238 $ 2,653 Interest on lease liabilities 319 164 140 Operating lease cost 18,850 18,916 21,581 Short-term lease cost 1,143 849 977 Variable lease cost 2,509 2,692 2,831 Total lease cost $ 25,629 $ 24,859 $ 28,182 Other Supplemental Information Fiscal Year 2023 2022 2021 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 237 $ 128 $ 108 Operating cash flows from operating leases 15,552 18,080 22,210 Financing cash flows from finance leases 2,419 2,089 2,282 Right-of-use assets obtained in exchange for new finance lease liabilities 3,612 3,436 3,259 Right-of-use assets obtained in exchange for new operating lease liabilities 15,561 9,307 13,330 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 December 31, 2023 and January 1, 2023: End of Fiscal Year 2023 2022 Weighted-average remaining lease term – finance leases (in years) 3.70 3.82 Weighted-average remaining lease term – operating leases (in years) 8.29 9.29 Weighted-average discount rate – finance leases 5.51 % 3.79 % Weighted-average discount rate – operating leases 6.25 % 5.89 % Maturity Analysis A maturity analysis of lease payments under non-cancellable leases is presented as follows: Fiscal Year Operating Leases Finance Leases (in thousands) 2024 $ 16,955 $ 2,921 2025 16,287 2,111 2026 16,196 1,545 2027 13,417 1,105 2028 10,930 570 Thereafter 43,725 244 Total future minimum lease payments (undiscounted) 117,510 8,496 Less: Present value discount (26,894) (874) Total lease liabilities $ 90,616 $ 7,622 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill The Company 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 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 fourth quarter of 2023, we performed our annual quantitative goodwill impairment testing. We focused our testing on the Americas reporting unit since it is the only reporting unit with an allocated goodwill balance. The allocated goodwill balances for our EMEA and Asia-Pacific reporting units were written off in prior years as a result of goodwill impairment charges. The Company performed limited procedures for our EMEA and Asia-Pacific reporting units during the 2023 goodwill testing to facilitate a reconciliation of market capitalization. The annual quantitative goodwill impairment testing performed in 2023 for our Americas reporting unit was consistent with our prior year methodology. T he Company prepared valuations for the Americas reporting unit on both a market comparable methodology and an income methodology, utilizing a combination of the present value of expected future cash flows and the guideline public company method to determine the estimated fair value of the reporting unit. In preparing the valuation, past, present and future expectations of performance were considered, including our expectations for the short-term and long-term impacts of macroeconomic conditions, including inflation, and our expected financial performance, including planned revenue and operating income for the Americas reporting unit. The present value model requires management to estimate future cash flows, the timing of these cash flows, and a discount rate based on a weighted average cost of capital. The discount rate used for the Americas reporting unit was 11.5% in 2023 compared to 13.5% in 2022, which fluctuated based on a risk premium assigned to estimates of expected future performance. There is inherent uncertainty associated with key assumptions and estimates used in our impairment testing, including the impact of macroeconomic conditions. As a result of our 2023 annual goodwill impairment testing, we determined that the fair value of our Americas reporting unit exceeded its carrying value by 71% at the 2023 m easurement date, and therefore no impairment was indicated. The goodwill balance of $105.4 million at December 31, 2023 is allocated to our Americas reporting unit. During the fourth quarter of 2022, the Company performed the annual goodwill impairment test, consistent with prior years. The Company performed this test at the reporting unit level, which is an operating segment or one level below the operating segment level. In performing the impairment testing for each reporting unit, 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 2022. As a result of our 2022 testing, we determined that the carrying value of our EMEA reporting unit exceeded its fair value and that the associated goodwill was impaired at the measurement date. We recorded a goodwill impairment charge of $29.4 million in 2022 to write off all the goodwill allocated to our EMEA reporting unit, as the excess of carrying value over fair value exceeded the recorded amount of goodwill for the EMEA reporting unit. Macroeconomic factors, including inflation, foreign currency exchange rates, and the expected impact to planned revenue and operating income contributed to the lower estimated fair value of our EMEA reporting unit. Higher discount rates also contributed to the lower fair value of our reporting units. We determined that the fair value of our Americas reporting unit exceeded its carrying value by 71% at the 2022 m easurement date, and therefore no impairment was indicated. The remaining goodwill balance of $102.4 million at January 1, 2023, was allocated to our Americas reporting unit. The goodwill balance allocated to our Asia-Pacific reporting unit was previously written off in connection with the 2020 goodwill impairment. During the fourth quarter of 2021, we performed the annual goodwill impairment test consistent with prior years and the methodology described above, and all reporting units that had a goodwill balance were noted to have a fair value that exceeded their carrying value. The ending balances and the changes in the carrying amounts of goodwill allocated to each reportable segment for the years ended December 31, 2023 and January 1, 2023 are as follows (1) : AMS EAAA Total (in thousands) Goodwill balance, at January 2, 2022 $ 108,505 $ 38,520 $ 147,025 Impairment — (29,384) (29,384) Foreign currency translation (2) (6,088) (9,136) (15,224) Goodwill balance, at January 1, 2023 102,417 — 102,417 Foreign currency translation (2) 3,031 — 3,031 Goodwill balance, at December 31, 2023 $ 105,448 $ — $ 105,448 (1) Goodwill balances are presented net of cumulative impairment losses of $358.5 million as of both December 31, 2023 and January 1, 2023, and $329.1 million as of January 2, 2022. The cumulative impairment losses include impairment charges recognized prior to 2020 related to discontinued operations that were allocated to the current reportable segments on a proportionate basis. (2) A portion of the goodwill balance allocated to the AMS reportable segment is comprised of goodwill denominated in foreign currency attributable to the nora acquisition. Other Intangible Assets During the fourth quarter of 2023, the Company performed its annual impairment testing of the trademark and trade name intangible assets and determined that no impairment existed at the 2023 measurement date. In the fourth quarter of 2022, we determined that the trademark and trade name intangible assets related to the acquired nora business were impaired and recognized an impairment loss of $6.3 million. The impairment loss consisted of charges of $3.6 million and $2.7 million attributable to the AMS and EAAA reportable segments, respectively. The Company’s intangible assets other than goodwill consisted of the following as of December 31, 2023 and January 1, 2023: December 31, 2023 January 1, 2023 Gross Carrying Amount Accumulated Impairment Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Impairment Accumulated Amortization Net Carrying Amount (in thousands) Intangible assets subject to amortization (1) : Technology $ 37,198 $ — $ (28,845) $ 8,353 $ 36,069 $ — $ (22,854) $ 13,215 Other 734 (478) (20) 236 764 (478) (17) 269 Total intangible assets subject to amortization 37,932 (478) (28,865) 8,589 36,833 (478) (22,871) 13,484 Indefinite-lived intangible assets (1) : Trademarks and trade names 58,747 (11,081) — 47,666 57,375 (11,081) — 46,294 Total intangible assets $ 96,679 $ (11,559) $ (28,865) $ 56,255 $ 94,208 $ (11,559) $ (22,871) $ 59,778 (1) Certain intangible asset balances are subject to changes attributable to foreign currency translation. |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Preferred Stock | PREFERRED STOCK The Company is authorized to designate and issue up to 5,000,000 shares of $1.00 par value preferred stock in one or more series and to determine the rights and preferences of each series, to the extent permitted by the Articles of Incorporation, and to fix the terms of such preferred stock without any vote or action by the shareholders. The issuance of any series of preferred stock may have an adverse effect on the rights of holders of common stock and could decrease the amount of earnings and assets available for distribution to holders of common stock. In addition, any issuance of preferred stock could have the effect of delaying, deferring or preventing a change in control of the Company. As of December 31, 2023, and January 1, 2023, there were no shares of preferred stock issued. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
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, including participating securities in each of years 2023, 2022 and 2021. 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 appropriate in light of the factors indicated above. In the second quarter of 2022, the Company adopted a new share repurchase program in which the Company is authorized to repurchase up to $100 million of its outstanding shares of common stock. The program has no specific expiration date. No shares of common stock were repurchased pursuant to this program during 2023. During 2022, the Company repurchased and retired an aggregate of 1,383,682 shares, at a weighted average price of $12.41 per share, pursuant to this 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 2023, 2022 and 2021: SHARES COMMON STOCK ADDITIONAL RETAINED PENSION FOREIGN CASH FLOW TOTAL (in thousands) Balance, at January 1, 2023 58,106 $ 5,811 $ 244,159 $ 278,639 $ (27,548) $ (138,775) $ (749) $ 361,537 Net income — — — 44,517 — — — 44,517 Issuances of stock related to restricted share units and performance shares 85 8 (8) — — — — — Restricted stock issuances 107 11 749 — — — — 760 Unrecognized compensation expense related to restricted stock awards — — (760) — — — — (760) Cash dividends declared — — — (2,323) — — — (2,323) Compensation expense related to share-based plans, net of forfeitures and shares received for tax withholdings (186) (19) 8,769 — — — — 8,750 Pension liability adjustment — — — — (6,468) — — (6,468) Foreign currency translation adjustment — — — — — 19,185 — 19,185 Reclassification out of accumulated other comprehensive loss – discontinued cash flow hedge — — — — — — 749 749 Balance, at December 31, 2023 58,112 $ 5,811 $ 252,909 $ 320,833 $ (34,016) $ (119,590) $ — $ 425,947 SHARES COMMON STOCK ADDITIONAL RETAINED PENSION FOREIGN CASH FLOW TOTAL (in thousands) Balance, at January 2, 2022 59,055 $ 5,905 $ 253,110 $ 261,434 $ (53,888) $ (100,441) $ (2,722) $ 363,398 Net income — — — 19,560 — — — 19,560 Restricted stock issuances 501 50 6,499 — — — — 6,549 Unrecognized compensation expense related to restricted stock awards — — (6,549) — — — — (6,549) Cash dividends declared — — — (2,355) — — — (2,355) Compensation expense related to share-based plans, net of forfeitures and shares received for tax withholdings (66) (6) 8,132 — — — — 8,126 Share repurchases (1,384) (138) (17,033) — — — — (17,171) Pension liability adjustment — — — — 26,340 — — 26,340 Foreign currency translation adjustment — — — — — (38,334) — (38,334) Reclassification out of accumulated other comprehensive loss – discontinued cash flow hedge — — — — — — 1,973 1,973 Balance, at January 1, 2023 58,106 $ 5,811 $ 244,159 $ 278,639 $ (27,548) $ (138,775) $ (749) $ 361,537 SHARES COMMON STOCK ADDITIONAL RETAINED PENSION FOREIGN CASH FLOW TOTAL (in thousands) Balance, at January 3, 2021 58,664 $ 5,865 $ 247,920 $ 208,562 $ (69,288) $ (60,331) $ (6,190) $ 326,538 Net income — — — 55,234 — — — 55,234 Restricted stock issuances 429 43 6,066 — — — — 6,109 Unrecognized compensation expense related to restricted stock awards — — (6,109) — — — — (6,109) Cash dividends declared — — — (2,362) — — — (2,362) Compensation expense related to share-based plans, net of forfeitures (38) (3) 5,233 — — — — 5,230 Pension liability adjustment — — — — 15,400 — — 15,400 Foreign currency translation adjustment — — — — — (40,110) — (40,110) Reclassification out of accumulated other comprehensive loss – discontinued cash flow hedge — — — — — — 3,468 3,468 Balance, at January 2, 2022 59,055 $ 5,905 $ 253,110 $ 261,434 $ (53,888) $ (100,441) $ (2,722) $ 363,398 Stock Incentive Plan 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, restricted share units and performance shares. In May 2020, the shareholders approved the adoption of the 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. 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. For certain restricted stock and restricted share unit awards with a graded vesting schedule, the Company has elected to recognize compensation expense on a straight-line basis over the requisite service period for the entire award. Restricted Stock Awards During fiscal years 2023, 2022 and 2021, the Company granted restricted stock awards totaling 107,100, 500,800, and 428,400 shares, respectively, of Common Stock. The weighted average grant date fair value of restricted stock awards granted during 2023, 2022 and 2021 was $7.10, $13.08, and $14.26, 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 $4.5 million, $5.3 million and $3.8 million for 2023, 2022 and 2021, 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 any restricted stock forfeited during the period. The expense related to awards of restricted stock is captured in SG&A expenses in the consolidated statements of operations. The following table summarizes restricted stock outstanding as of December 31, 2023, as well as activity during the year: Restricted Shares Weighted Average Grant Date Fair Value Outstanding at January 1, 2023 1,006,400 $ 13.91 Granted 107,100 7.10 Vested (405,100) 14.43 Forfeited or canceled (16,800) 13.60 Outstanding at December 31, 2023 691,600 $ 12.55 As of December 31, 2023, the unrecognized total compensation cost related to unvested restricted stock was $1.8 million. That cost is expected to be recognized over a weighted-average remaining vesting period of 0.7 years. Restricted Share Unit Awards During fiscal year 2023, the Company granted awards for 596,200 restricted share units to certain employees pursuant to the Company’s 2020 Omnibus Plan. There were no restricted share unit awards granted during 2022 or 2021. The weighted average grant date fair value of the restricted share units granted during 2023 was $10.36. Each restricted share unit represents one share of the Company’s common stock to be issued to the award recipient once the vesting criteria have been satisfied. Awards of restricted share units have a graded vesting schedule over a two three Compensation expense related to the restricted share units was $1.9 million for 2023. There was no compensation expense related to restricted share unit awards during 2022 or 2021. 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 any restricted share units forfeited during the period. The expense related to awards of restricted share units is captured in SG&A expenses in the consolidated statements of operations. The following table summarizes restricted share units outstanding as of December 31, 2023, as well as activity during the year: Restricted Share Units Weighted Average Grant Date Fair Value Outstanding at January 1, 2023 — $ — Granted 596,200 10.36 Vested (2,100) 10.80 Forfeited or canceled (10,700) 10.80 Outstanding at December 31, 2023 583,400 $ 10.35 As of December 31, 2023, the unrecognized total compensation cost related to unvested restricted share units was $4.1 million. That cost is expected to be recognized over a weighted-average remaining vesting period of 2.1 years. Performance Share Awards In each of the years 2023, 2022 and 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 December 31, 2023, as well as the activity during the year: Performance Shares Weighted Average Grant Date Fair Value Outstanding at January 1, 2023 923,600 $ 13.91 Granted 467,500 10.79 Vested (82,300) 15.11 Forfeited or canceled (193,800) 14.79 Outstanding at December 31, 2023 1,115,000 $ 12.36 Compensation expense related to the performance shares for 2023, 2022 and 2021 was $3.9 million, $3.2 million and $1.7 million, respectively. The Company has reduced its expense for any performance shares forfeited during the period. Unrecognized compensation expense related to these performance shares was approximately $5.9 million as of December 31, 2023. The amount and timing of future compensation expense will depend on the performance of the Company. The compensation expense related to these outstanding performance shares is expected to be recognized over a weighted-average remaining vesting period of 1.7 years. The tax benefit recognized with respect to restricted stock, restricted share units and performance shares was $0.9 million, $0.8 million, and $0.7 million in 2023, 2022 and 2021, respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2023 | |
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 that contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid, in the number of shares outstanding for basic EPS as these awards are considered participating securities. Any unvested stock awards considered non-participating securities are included in 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 2023 2022 2021 (in thousands, except per share data) Numerator: Net income $ 44,517 $ 19,560 $ 55,234 Less: distributed and undistributed earnings available to participating securities (569) (323) (602) Distributed and undistributed earnings available to common shareholders $ 43,948 $ 19,237 $ 54,632 Denominator: Weighted average shares outstanding 57,349 57,893 58,328 Participating securities 743 972 643 Shares for basic EPS 58,092 58,865 58,971 Dilutive effect of non-participating securities 243 — — Shares for diluted EPS 58,335 58,865 58,971 Basic EPS $ 0.77 $ 0.33 $ 0.94 Diluted EPS $ 0.76 $ 0.33 $ 0.94 For 2023, 657,391 non-participating securities that could potentially dilute basic EPS in the future, consisting of restricted share units and performance shares, were excluded from the computation of diluted EPS as these securities would have been antidilutive for the respective period. |
Restructuring and Other
Restructuring and Other | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other | RESTRUCTURING AND OTHER Restructuring, asset impairment, other (gains) and charges by reportable segment are presented as follows: Fiscal Year 2023 2022 2021 (in thousands) AMS $ — $ — $ (1) EAAA (2,502) 1,965 3,622 Total restructuring, asset impairment, other (gains) and charges $ (2,502) $ 1,965 $ 3,621 A summary of the restructuring reserve balance, recorded within accrued expenses in the consolidated balance sheets, for the restructuring plans is presented below: Workforce Reduction Retention Bonuses Asset Impairment and Other Related Charges 2021 Plan 2019 Plan 2021 Plan 2021 Plan Total (in thousands) 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 Charged to expenses 1 — 493 1,471 1,965 Deductions (1,981) (97) (314) — (2,392) Charged to other accounts — — — (1,471) (1,471) Balance, at January 1, 2023 277 — 179 — 456 Charged to expenses 23 — (19) 174 178 Deductions (300) — (160) — (460) Charged to other accounts — — — (174) (174) Balance, at December 31, 2023 $ — $ — $ — $ — $ — Below is a discussion of the restructuring plan activities under the restructuring plans. 2021 Restructuring Plan On September 8, 2021, the Company committed to a restructuring plan that continued to focus on efforts to improve efficiencies and decrease costs across its worldwide operations. The plan involved 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 Asset Impairment and Other Related Charges Total (in thousands) Estimated expected charges (1) $ 2,281 $ 474 $ 3,295 $ 6,050 Cumulative charges incurred to date (1) 2,281 474 3,295 6,050 (1) Charges are attributable to the EAAA reportable segment. The Company recognized a gain of $2.7 million on the sale of the Thailand facility during 2023. See Note 7 entitled “Property, Plant and Equipment” for additional information. During 2022, in conjunction with the closure of its Thailand facility, the Company recorded a write-down of inventory of $2.5 million within cost of sales in the consolidated statements of operations. The Company completed the 2021 restructuring plan in the second quarter of 2023, following the sale of the Thailand facility, as described in Note 7 entitled “Property, Plant and Equipment,” and expected the plan to yield annualized savings of approximately $1.7 million. A portion of the annualized savings was realized in the consolidated statements of operations in 2022, with the remaining portion of the annualized savings realized in 2023. 2019 Restructuring Plan On December 23, 2019, the Company committed to a restructuring plan that continued 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. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Income before income taxes consisted of the following: Fiscal Year 2023 2022 2021 (in thousands) U.S. operations $ 3,611 $ 11,758 $ 4,460 Foreign operations 60,043 30,159 68,173 Income before income taxes $ 63,654 $ 41,917 $ 72,633 Provisions for federal, foreign and state income taxes in the consolidated statements of operations consisted of the following components: Fiscal Year 2023 2022 2021 (in thousands) Current expense: Federal $ 5,523 $ 1,624 $ 1,987 Foreign 18,330 20,903 21,372 State 2,167 1,307 1,418 Current expense 26,020 23,834 24,777 Deferred (benefit) expense: Federal (4,810) 346 (2,841) Foreign (1,212) (2,053) (3,846) State (861) 230 (691) Deferred benefit (6,883) (1,477) (7,378) Total income tax expense $ 19,137 $ 22,357 $ 17,399 The Company’s effective tax rate was 30.1%, 53.3% and 24.0% for fiscal years 2023, 2022 and 2021, 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 2023 2022 2021 (in thousands) Income taxes at U.S. federal statutory rate $ 13,367 $ 8,803 $ 15,253 Increase (decrease) in taxes resulting from: State income taxes, net of federal tax effect (432) 817 (87) Non-deductible business expenses 747 237 330 Non-deductible employee compensation 1,681 1,678 1,213 Tax effects of Company-owned life insurance (587) 612 (762) Tax effects of undistributed earnings from foreign subsidiaries not deemed to be indefinitely reinvested 779 1,123 1,219 Foreign and U.S. tax effects attributable to foreign operations 1,537 3,528 1,748 Expiring tax attributes 3,780 — — Valuation allowance effect (879) 2,898 1,349 Research and development tax credits (820) (917) (793) Goodwill impairment — 6,171 — Unrecognized tax benefits (79) (2,463) (2,663) Other 43 (130) 592 Income tax expense $ 19,137 $ 22,357 $ 17,399 On August 16, 2022, the Inflation Reduction Act of 2022 (“Inflation Reduction Act”) was signed into law, with tax provisions primarily focused on implementing a 15% minimum tax on global adjusted financial statement income (“AFSI”) for corporations with average AFSI exceeding $1 billion over a three-year period, a 1% excise tax on share repurchases and various climate and clean energy tax incentives. The Inflation Reduction Act did not have a material impact on the Company’s financial statements for the year ended December 31, 2023. On December 20, 2021, the Organization for Economic Co-operation and Development (“OECD”) published Pillar Two Model Rules defining the global minimum tax, which calls for the taxation of large corporations at a minimum rate of 15%. The OECD has since issued administrative guidance providing transition and safe harbor rules around the implementation of the Pillar Two global minimum tax. Many non-U.S. tax jurisdictions have either recently enacted legislation to adopt certain components of the Pillar Two Model Rules beginning in 2024 (including the European Union Member States) with the adoption of additional components in later years or announced their plans to enact legislation in future years. We are still closely monitoring developments and evaluating the potential impact on future periods. Deferred income taxes for the years ended December 31, 2023 and January 1, 2023, 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 2023 2022 (in thousands) Deferred tax assets Lease liability $ 25,164 $ 23,649 Net operating loss and interest carryforwards 9,587 7,616 Federal tax credit carryforwards 7,876 10,904 Derivative instruments — 295 Deferred compensation 16,517 16,577 Inventory 3,041 3,521 Prepaids, accruals and reserves 8,147 6,947 Capitalized costs 9,442 7,467 Other — 58 Deferred tax asset, gross 79,774 77,034 Valuation allowance (17,357) (18,236) Deferred tax asset, net $ 62,417 $ 58,798 Deferred tax liabilities Property and equipment $ 24,662 $ 25,319 Intangible assets 24,411 25,533 Lease asset 23,868 22,811 Pensions 5 4,284 Foreign currency 686 600 Foreign withholding and U.S. state taxes on unremitted earnings 725 1,146 Other 171 — Deferred tax liabilities 74,528 79,693 Net deferred tax liabilities $ 12,111 $ 20,895 Management believes, based on the Company’s history of taxable income and expectations for the future, that it is more likely than not that future taxable income will be sufficient to fully utilize the federal deferred tax assets at December 31, 2023. As of December 31, 2023, the Company has approximately $7.9 million of foreign tax credit carryforwards with expiration dates through 2033. 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 December 31, 2023, the Company has approximately $192.1 million in state net operating loss carryforwards relating to continuing operations with expiration dates through 2043 and has provided a valuation allowance against $129.6 million of such losses, which the Company does not expect to utilize. In addition, as of December 31, 2023, the Company has approximately $15.6 million in state net operating loss carryforwards relating to discontinued operations against which a full valuation allowance has been provided. During fiscal year 2023, the Company had approximately $3.8 million in tax attributes with a full valuation allowance related to foreign tax credit carryforwards and foreign net operating loss carryforwards that expired. As a result, the expiration of these tax attributes did not have an impact on the Company’s effective tax rate for fiscal year 2023. As of December 31, 2023, and January 1, 2023, non-current deferred tax assets were reduced by approximately $2.8 million 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 December 31, 2023 and January 1, 2023. 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 of earnings 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 2020 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 2018 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 2012 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. The adjustments result from the interest rate applied in the intra-group financing arrangement between a Company subsidiary in the U.K. and another in 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. In June of 2022, the Competent Authorities reached an agreement on the interest rate to be applied for the years 2012 through 2017. The Company recognized the adjustments from the 2012-2017 MAP in 2022. In March of 2023, the Company filed requests with both the Competent Authority in the Netherlands and in the U.K. to initiate a MAP for tax years 2018 through 2020 related to the double taxation arising from the application of the HMRC interest rate adjustments that were the subject of the 2012-2017 MAP. In September 2023, the Competent Authorities reached an agreement on the interest rate to be applied for the years 2018 through 2020. The Company recognized the adjustments from the 2018-2020 MAP in 2023. The recognition of the adjustments in both 2022 and 2023 did not have a material impact on the Company’s effective tax rate or its financial position. As of December 31, 2023, and January 1, 2023, the Company had $4.9 million and $5.7 million, respectively, of unrecognized tax benefits. For the years ended December 31, 2023 and January 1, 2023, the Company recognized as income tax benefits $0.1 million and $2.5 million, respectively, of previously unrecognized tax benefits. While it is reasonably possible that some of the unrecognized tax benefits will be recognized within the next 12 months, the Company does not expect the recognition of such amounts will have a material impact on the Company’s financial results. If any of the $4.9 million of unrecognized tax benefits as of December 31, 2023 are recognized, there would be a favorable impact on the Company’s effective tax rate of approximately $4.9 million in future periods. If the unrecognized tax benefits are not favorably settled, $2.1 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. Accrued interest and penalties were $0.4 million as of December 31, 2023 and were 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 2023 2022 2021 (in thousands) Balance at beginning of year $ 5,743 $ 8,220 $ 10,799 Increases related to tax positions taken during the current year 320 342 265 Increases related to tax positions taken during the prior years 140 204 198 Decreases related to tax positions taken during the prior years (54) (447) — Decreases related to lapse of applicable statute of limitations (1,218) (2,574) (2,309) Changes due to settlements — — (836) Changes due to foreign currency translation 17 (2) 103 Balance at end of year $ 4,948 $ 5,743 $ 8,220 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
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 sought 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. On March 31, 2022, the Court entered an order granting the Company’s motion for summary judgment on all of Mr. Gould’s remaining claims, leaving only the Company’s counterclaim against Mr. Gould for breach of fiduciary duty pending in the District Court. An attempted interlocutory appeal by Mr. Gould of the summary judgment order was remanded by the 11th Circuit Court of Appeals back to the District Court as premature. Mr. Gould filed a motion for reconsideration of the Court’s grant of summary judgment in favor of the Company on Mr. Gould’s breach of contract claim. On July 31, 2023, the Court denied that motion for reconsideration. Also on July 31, 2023, the Company filed a motion to dismiss without prejudice its counterclaim against Mr. Gould for breach of fiduciary duty. On August 2, 2023, the Court granted that motion to dismiss, resulting in a final judgment in the trial court. The Court’s award of summary judgment in favor of the Company on Mr. Gould’s breach of contract claim has been appealed by Mr. Gould to the U.S. Court of Appeals for the 11th Circuit, and that appeal remains pending. The Company believes Mr. Gould’s lawsuit and the appeal therefrom is without merit and intends to defend vigorously against it. Putative Class Action Lawsuit On November 12, 2020, the Company and certain former and current officers 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 was a federal securities law putative class action that alleged that the defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. The specific allegations related to the subject matter of a previously disclosed and concluded SEC investigation. The complaint did not quantify the damages sought. In 2023, the parties settled the lawsuit for $7.5 million, and the Company’s insurers funded the settlement amount. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
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 provides 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 $3.4 million, $3.3 million, and $3.0 million for the years 2023, 2022 and 2021, respectively. No discretionary contributions were made in 2023, 2022 or 2021. 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 provide 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 $28.2 million and $27.5 million at December 31, 2023 and January 1, 2023, respectively. The Company invests the deferrals in insurance instruments with readily determinable cash surrender values and in exchange traded mutual funds. The value of the insurance instruments was $19.2 million and $16.6 million as of December 31, 2023 and January 1, 2023, respectively. The fair value of the mutual fund investments at December 31, 2023 and January 1, 2023 was $9.2 million and $11.0 million, respectively. Multiemployer Plan 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 2023, 2022 and 2021, the Company recorded multi-employer pension expense related to multiemployer contributions of $2.7 million, $2.4 million and $2.6 million, respectively. The Company’s contributions into the IWPF are less than 5% of total plan contributions. The IWPF is more than 85% funded at the end of 2022, 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 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 sheets. As discussed above, the Company still has an obligation to pay vested benefits in the frozen Dutch Plan. As of December 31, 2023, the under-funded status of the Dutch Plan of $5.7 million is recorded on the consolidated balance sheet in other long-term liabilities. Pension expense for our three European defined benefit plans was $1.3 million, $2.0 million, and $2.5 million for the years 2023, 2022 and 2021, respectively. Plan assets are primarily invested in insurance contracts and fixed income securities. As of December 31, 2023, for the European plans, the Company had a net liability recorded of $15.1 million, an amount equal to their under-funded status, and had recorded in accumulated other comprehensive loss an amount equal to $29.9 million (net of taxes of approximately $8.1 million) related to the future amounts to be recorded in net periodic benefit costs. In the next fiscal year, approximately $1.3 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 2023 2022 (in thousands) Change in benefit obligation: Benefit obligation, beginning of year $ 195,440 $ 324,408 Service cost 458 840 Interest cost 8,169 3,793 Benefits and expenses paid (10,832) (9,890) Actuarial loss (gain) 12,760 (96,556) Currency translation adjustment 8,433 (27,155) Benefit obligation, end of year $ 214,428 $ 195,440 Change in plan assets: Plan assets, beginning of year $ 187,485 $ 285,600 Actual return on assets 11,596 (66,759) Company contributions 2,497 4,001 Benefits paid (10,832) (9,890) Currency translation adjustment 8,602 (25,467) Plan assets, end of year $ 199,348 $ 187,485 Funded status $ (15,080) $ (7,955) Amounts recognized in consolidated balance sheets: Other assets $ 25,235 $ 26,586 Current liabilities (1,182) (1,032) Other long-term liabilities, net of current portion (39,133) (33,509) Under-funded status at end of fiscal year $ (15,080) $ (7,955) Amounts recognized in accumulated other comprehensive loss, after tax: Unrecognized actuarial loss $ 29,918 $ 23,737 Total amount recognized, end of year $ 29,918 $ 23,737 Accumulated benefit obligation $ 214,428 $ 195,440 The above disclosure represents the aggregation of information related to the Company’s three defined benefit plans which cover many of its European employees. The increase in the projected benefit obligation of $19.0 million for 2023 compared to prior year was primarily due to a decrease in the weighted average discount rate used to measure the obligation and the impact of foreign currency translation due to the strengthening of the Euro and British Pound sterling against the U.S. dollar in 2023. As of December 31, 2023, 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 December 31, 2023. The nora Plan is an unfunded defined benefit plan and the accumulated benefit obligation exceeded plan assets as of December 31, 2023. The following table summarizes this information as of December 31, 2023 and January 1, 2023. End of Fiscal Year 2023 2022 (in thousands) UK Plan Projected benefit obligation $ 108,424 $ 98,730 Accumulated benefit obligation 108,424 98,730 Plan assets 133,658 125,315 Dutch Plan Projected benefit obligation $ 71,422 $ 67,689 Accumulated benefit obligation 71,422 67,689 Plan assets 65,690 62,170 nora Plan Projected benefit obligation $ 34,582 $ 29,021 Accumulated benefit obligation 34,582 29,021 Plan assets — — Fiscal Year 2023 2022 2021 (in thousands) Components of net periodic benefit cost: Service cost $ 458 $ 840 $ 1,087 Interest cost 8,169 3,793 2,687 Expected return on plan assets (7,933) (3,957) (3,312) Amortization of prior service cost 137 117 114 Amortization of net actuarial losses 468 1,201 1,968 Net periodic benefit cost $ 1,299 $ 1,994 $ 2,544 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, net, in the consolidated statements of operations. During 2023, other comprehensive loss was impacted by a total net loss of approximately $6.3 million (net of $2.1 million of tax), comprised of actuarial loss of approximately $6.6 million (net of $2.3 million of tax) and amortization of loss of $0.3 million (net of $0.2 million of tax). Fiscal Year 2023 2022 2021 Weighted average assumptions used to determine net periodic benefit cost: Discount rate 4.1 % 1.4 % 0.9 % Expected return on plan assets 4.6 % 3.0 % 1.5 % Weighted average assumptions used to determine benefit obligations: Discount rate 4.1 % 4.4 % 1.6 % 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 December 31, 2023 or January 1, 2023. 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, 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 2023 and 2022. 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 2023 based on recent returns. The indexation benefit for 2023 and 2022 is not significant. The Company’s actual weighted average asset allocations for 2023 and 2022, and the targeted asset allocation for 2024, of the foreign defined benefit plans by asset category, are as follows: Fiscal Year 2024 2023 2022 Asset Category Target Allocation Percentage of Plan Assets at Year End Equity securities —% — —% —% —% Debt and debt securities 65% — 70% 59% 53% Short-term investments —% — 2% 8% 13% Other investments 30% — 35% 33% 34% 100% 100% 100% The following table sets forth by level within the fair value hierarchy the foreign defined benefit plans’ assets at fair value, as of December 31, 2023 and January 1, 2023. 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 December 31, 2023 Dutch Plan UK Plan Total (in thousands) Level 1 $ — $ 16,232 $ 16,232 Level 2 — 92,200 92,200 Level 3 65,690 25,226 90,916 Total $ 65,690 $ 133,658 $ 199,348 Pension Plan Assets by Category as of January 1, 2023 Dutch Plan UK Plan Total (in thousands) Level 1 $ — $ 44,335 $ 44,335 Level 2 — 53,286 53,286 Level 3 62,170 27,694 89,864 Total $ 62,170 $ 125,315 $ 187,485 The tables below detail the foreign defined benefit plans’ assets by asset allocation and fair value hierarchy: End of Fiscal Year 2023 Asset Category Level 1 Level 2 Level 3 (in thousands) Debt and debt securities $ — $ 92,200 $ 24,325 Short-term investments (1) 16,232 — — Other investments (2) — — 66,591 $ 16,232 $ 92,200 $ 90,916 End of Fiscal Year 2022 Asset Category Level 1 Level 2 Level 3 (in thousands) Debt and debt securities $ 19,614 $ 53,286 $ 26,778 Short-term investments (1) 24,721 — — Other investments (2) — — 63,086 $ 44,335 $ 53,286 $ 89,864 (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 2023 and 2022 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 3.30% to 4.50% for 2023, and 3.70% to 4.75% for 2022. The weighted average discount rates were 3.32% and 3.72% for 2023 and 2022, 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 2023 and 2022: Fiscal Year 2023 2022 (in thousands) Balance of level 3 assets, beginning of year $ 89,864 $ 121,126 Actual return on plan assets (1) 3,429 (21,968) Purchases, sales and settlements, net (5,734) 389 Assets transferred from level 3 — (710) Currency translation adjustment 3,357 (8,973) Balance of level 3 assets, end of year $ 90,916 $ 89,864 (1) Includes $2.7 million and $(22.2) million for 2023 and 2022, respectively, of unrealized gains / (losses) recognized during the period in other comprehensive income (loss) for assets held at year end. During 2024, the Company expects to contribute $2.7 million to the foreign defined benefit plans. It is anticipated that future benefit payments for the foreign defined benefit plans will be as follows: Fiscal Year Expected Payments (in thousands) 2024 $ 11,145 2025 11,214 2026 11,360 2027 11,484 2028 11,782 2029-2033 59,800 Domestic Defined Benefit Plan The Company maintains a domestic nonqualified 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 in the change in benefit obligation in 2023 and 2022 as there are no longer any participants accruing benefits in the plan. Fiscal Year 2023 2022 (in thousands) Change in benefit obligation: Benefit obligation, beginning of year $ 22,731 $ 30,053 Interest cost 1,134 771 Benefits paid (1,873) (1,873) Actuarial loss (gain) 667 (6,220) Benefit obligation, end of year $ 22,659 $ 22,731 The amounts recognized in the consolidated balance sheets are as follows: End of Fiscal Year 2023 2022 (in thousands) Current liabilities $ 1,873 $ 1,873 Non-current liabilities 20,786 20,858 Total benefit obligation $ 22,659 $ 22,731 The components of the amounts in accumulated other comprehensive loss, after tax, are as follows: Fiscal Year 2023 2022 (in thousands) Unrecognized actuarial loss $ 4,098 $ 3,811 The accumulated benefit obligation related to the SCP was $22.7 million as of both December 31, 2023 and January 1, 2023. 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 2023 2022 2021 (in thousands, except for assumptions) Assumptions used to determine net periodic benefit cost: Discount rate 5.20 % 2.65 % 2.15 % Assumptions used to determine benefit obligations: Discount rate 4.90 % 5.20 % 2.65 % Components of net periodic benefit cost: Interest cost $ 1,134 $ 771 $ 706 Amortizations 195 557 743 Net periodic benefit cost $ 1,329 $ 1,328 $ 1,449 In accordance with applicable accounting standards, all components of net periodic benefit cost associated with the SCP are presented within other expense, net, in the consolidated statements of operations. The change in other comprehensive loss during 2023 related to the SCP as a result of plan activity was a net loss of approximately $0.4 million (net of $0.1 million of tax), primarily comprised of a net loss during the period of $0.5 million (net of $0.2 million of tax) and amortization of loss of $0.1 million (net of $0.1 million of tax). During 2023, the Company contributed $1.9 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) 2024 $ 1,873 2025 1,873 2026 1,873 2027 1,873 2028 1,851 2029-2033 8,670 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
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; Cyber Event impact; goodwill and intangible asset impairment charges; and restructuring, asset impairment, severance, and other, net. Intersegment revenues for 2023, 2022 and 2021 were $82.8 million, $75.5 million and $78.1 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 2023, 2022 and 2021 is presented in the table below: Fiscal Year 2023 2022 2021 (in thousands) Net sales AMS $ 736,955 $ 753,740 $ 651,216 EAAA 524,543 544,179 549,182 Total net sales $ 1,261,498 $ 1,297,919 $ 1,200,398 Segment AOI AMS $ 87,789 $ 102,370 $ 85,014 EAAA 28,608 30,058 37,268 Depreciation and amortization AMS $ 17,989 $ 16,827 $ 17,963 EAAA 22,785 23,510 28,382 Total depreciation and amortization $ 40,774 $ 40,337 $ 46,345 A reconciliation of the Company’s total operating segment assets to the corresponding consolidated amounts follows: End of Fiscal Year 2023 2022 (in thousands) Assets AMS $ 627,782 $ 588,110 EAAA 630,939 652,921 Total segment assets 1,258,721 1,241,031 Corporate assets 108,673 110,495 Eliminations (137,299) (85,023) Total reported assets $ 1,230,095 $ 1,266,503 Total assets in the table above include operating lease right-of-use assets for fiscal years 2023 and 2022. 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 2023 2022 (in thousands) AMS $ 23,149 $ 14,140 EAAA 54,663 58,255 Total segment operating lease right-of-use assets 77,812 72,395 Corporate operating lease right-of-use assets 9,707 9,249 Total operating lease right-of-use assets $ 87,519 $ 81,644 Reconciliations of operating income (loss) to income before income tax expense and segment AOI are presented as follows: Fiscal Year 2023 2022 2021 (in thousands) AMS operating income $ 85,035 $ 92,234 $ 81,445 EAAA operating income (loss) 19,487 (16,836) 23,352 Consolidated operating income 104,522 75,398 104,797 Interest expense 31,787 29,929 29,681 Other expense, net 9,081 3,552 2,483 Income before income tax expense $ 63,654 $ 41,917 $ 72,633 Fiscal Year 2023 2022 2021 AMS EAAA AMS EAAA AMS EAAA (in thousands) Operating income (loss) $ 85,035 $ 19,487 $ 92,234 $ (16,836) $ 81,445 $ 23,352 Purchase accounting amortization — 5,172 — 5,038 — 5,636 Thailand plant closure inventory write-down — — — 2,530 — — Cyber Event impact 616 456 3,878 1,215 — — Goodwill and intangible asset impairment — — 3,838 32,342 — — Restructuring, asset impairment, severance, and other, net 2,138 3,493 2,420 5,769 3,569 8,280 AOI $ 87,789 $ 28,608 $ 102,370 $ 30,058 $ 85,014 $ 37,268 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 2023, 2022 and 2021 were approximately 46%, 47% and 50%, respectively, of total net sales. These sales were primarily to customers in Europe, Canada, Asia, Australia and Latin America. Net sales and long-lived assets for the United States and other significant countries (that individually represent 10% or greater of consolidated totals for each year presented) are as follows: Fiscal Year Net Sales to Unaffiliated Customers (1) 2023 2022 2021 (in thousands) United States $ 677,342 $ 694,299 $ 596,844 Other foreign countries 584,156 603,620 603,554 Total net sales $ 1,261,498 $ 1,297,919 $ 1,200,398 End of Fiscal Year Long-Lived Assets (2) 2023 2022 (in thousands) United States $ 146,106 $ 146,210 Germany 66,740 64,182 Netherlands 40,455 42,422 Other foreign countries (3) 37,839 45,162 Total long-lived assets $ 291,140 $ 297,976 (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. 2023 includes $2.2 million and $5.0 million of leased equipment, net of accumulated amortization, in the United States and foreign countries, respectively. 2022 includes $1.3 million and $4.5 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 |
Dec. 31, 2023 | |
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 2023, 2022 and 2021, are reflected in the table below: Fiscal Year Statement of Operations Location 2023 2022 2021 (in thousands) Loss on foreign subsidiary liquidation (1) Other expense, net $ (6,221) $ — $ — Interest rate swap contracts loss (2) Interest expense (982) (2,809) (4,861) Amortization of benefit plan net actuarial losses and prior service cost (3) Other expense, net (800) (1,875) (2,825) Total loss reclassified from AOCI $ (8,003) $ (4,684) $ (7,686) (1) The Company’s foreign subsidiaries in Russia and Brazil were substantially liquidated in 2023, and the cumulative foreign currency translation losses associated with these entities were recognized in the consolidated statements of operations. The tax impact of the cumulative foreign currency translation reclassification for 2023 is approximately $1.1 million. (2) The tax impact of the interest rate swap reclassifications were $0.2 million, $0.8 million and $1.4 million for 2023, 2022 and 2021, respectively, related to the discontinued cash flow hedges. See Note 10 entitled “Derivative Instruments” for additional information. (3) See Note 19 entitled “Employee Benefit Plans” for the tax impact of reclassifications related to the Company’s defined benefit plans. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Dec. 31, 2023 | |
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: December 31, 2023 $ 3,952 $ (527) $ — $ 472 $ 2,953 January 1, 2023 4,960 (357) — 651 3,952 January 2, 2022 6,643 (705) — 978 4,960 (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: December 31, 2023 $ 2,091 $ 3,624 $ — $ 1,413 $ 4,302 January 1, 2023 2,702 (41) — 570 2,091 January 2, 2022 3,248 366 — 912 2,702 (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.) |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Pay vs Performance Disclosure | |||
Net income | $ 44,517 | $ 19,560 | $ 55,234 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
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, inventory obsolescence and the length of product life cycles, accruals associated with restructuring activities, income tax exposures and valuation allowances, and the carrying value of goodwill, intangible assets 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. Revenue from the sale of modular carpet, resilient flooring, rubber flooring, and related products (TacTiles installation materials, etc.) was approximately 98% of the Company’s total revenue in 2023, approximately 97% of the Company’s total revenue in 2022, and approximately 98% of the Company’s total revenue in 2021. 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 of approximately 2% for 2023, approximately 3% for 2022, and approximately 2% for 2021 was generated from the installation of carpet and other flooring-related material. For installation 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 typically 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 it 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 2023, 2022 and 2021. 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. |
Advertising and Promotion | Advertising and Promotion |
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 may continue to change, and the Company could experience additional inventory write-downs in the future. |
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 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, Plant and Equipment and Long-Lived Assets | Property, Plant and Equipment and Long-Lived Assets Property, plant 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 three 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 Other 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 2023, 2022 and 2021, the Company performed the annual goodwill impairment test. The Company tests goodwill at the reporting unit level, which is an operating segment or one level below an operating segment. In performing the impairment testing, the Company prepared valuations of reporting units on both a market comparable methodology and an income methodology, and those valuations were compared with the respective carrying values of the reporting units to determine whether any goodwill impairment existed. In preparing the valuations, past, present and future expectations of performance were considered. See Note 12 entitled “Goodwill and Other Intangible Assets” for additional information. Trademark and trade name 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. For the annual tests performed in 2023, 2022, and 2021, 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 Other 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 $4.3 million and $2.1 million as of December 31, 2023 and January 1, 2023, 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 has elected to account for tax effects of the global intangible low-taxed income (“GILTI”) in the period when incurred, and therefore has not provided any deferred tax impacts for these provisions in its consolidated financial statements. 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 potential increase in average common shares outstanding that would result from share-based awards or the assumed exercise of outstanding stock options, calculated using the treasury stock method. See Note 15 entitled “Earnings Per Share” for additional information. |
Share-Based Compensation | Share-Based Compensation The Company has share-based employee compensation plans, which are described more fully in Note 14 entitled “Shareholders' Equity.” The Company recognizes expense related to its restricted stock, restricted share unit 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. |
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. |
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 “2023,” “2022,” and “2021,” mean the fiscal years ended December 31, 2023, January 1, 2023, and January 2, 2022, respectively. Fiscal years 2023, 2022 and 2021 were each comprised of 52 weeks. |
Recent Accounting Pronouncements | Recently Issued Accounting Pronouncements – Adopted In July 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-03, “ Presentation of Financial Statements (Topic 205), Income Statement — Reporting Comprehensive Income (Topic 220), Distinguishing Liabilities from Equity (Topic 480), Equity (Topic 505), Compensation — Stock Compensation (Topic 718) .” This ASU amends various paragraphs in the accounting codification pursuant to the issuance of Commission Staff Accounting Bulletin (“SAB”) number 120. The ASU provides clarifying guidance related to employee and non-employee share-based payment accounting, including guidance related to spring-loaded awards. ASU 2023-03 was effective upon issuance. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. In June 2022, the FASB issued ASU 2022-03, “ Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions .” This ASU clarifies that a contractual restriction on the sale of an equity security is not considered in measuring fair value. The ASU also requires certain disclosures for equity securities subject to contractual sale restrictions. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023. Early adoption was permitted. The Company adopted this standard on April 2, 2023. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements – Not Yet Adopted In December 2023, the FASB issued ASU 2023-09, “ Income Taxes (Topic 740 ): Improvements to Income Tax Disclosures. ” This ASU requires public entities on an annual basis to disclose a rate reconciliation with explicit categories, as outlined in the ASU, and requires additional disclosures for reconciling items that meet certain quantitative thresholds. Other disclosures include disaggregation of income taxes paid, pre-tax income, and income tax expense. The new guidance is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of this ASU to its income tax disclosures. In November 2023, the FASB issued ASU 2023-07, “ Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenues [Abstract] | |
Revenue by Products and Services | The Company generates revenue from sales of modular carpet, resilient flooring, rubber flooring, and other flooring-related material, and from the installation of carpet and other flooring-related material. A summary of these revenue streams, as a percentage of net sales, for fiscal years 2023, 2022 and 2021 is a follows: Fiscal Year 2023 2022 2021 Revenue from the sale of flooring material 98 % 97 % 98 % Revenue from installation of flooring material 2 % 3 % 2 % |
Disaggregation of Revenue | For fiscal years 2023, 2022 and 2021, revenue from the Company’s customers is broken down by geography as follows: Fiscal Year Geography 2023 2022 2021 Americas 58.4 % 58.0 % 54.3 % Europe 30.1 % 29.2 % 31.7 % Asia-Pacific 11.5 % 12.8 % 14.0 % 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 |
Dec. 31, 2023 | |
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: December 31, 2023 January 1, 2023 Carrying Value Fair Value (Level 1) Fair Value (Level 2) Carrying Value Fair Value (Level 1) Fair Value (Level 2) (in thousands) Assets: Company-owned life insurance $ 22,788 $ — $ 22,788 $ 22,616 $ — $ 22,616 Deferred compensation investments 28,417 9,200 19,217 27,610 11,003 16,607 Liabilities (1) : Borrowings under Syndicated Credit Facility (2) $ 121,658 $ — $ 121,658 $ 226,332 $ — $ 226,332 5.50% Senior Notes due 2028 (3) 300,000 — 281,991 300,000 — 248,652 (1) Carrying values are presented gross, excluding the impact of unamortized debt issuance costs and including amounts presented as current liabilities on the consolidated balance sheets. (2) Unamortized debt issuance costs associated with term loan borrowings under the Syndicated Credit Facility, recorded as a reduction of long-term debt in the consolidated balance sheets, were $1.0 million and $1.9 million as of December 31, 2023 and January 1, 2023, respectively. (3) Unamortized debt issuance costs associated with the Senior Notes, recorded as a reduction of long-term debt in the consolidated balance sheets, were $3.4 million and $4.2 million as of December 31, 2023 and January 1, 2023, respectively. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories are summarized as follows: End of Fiscal Year 2023 2022 (in thousands) Finished goods $ 201,821 $ 209,478 Work-in-process 20,892 15,463 Raw materials 56,366 81,386 Inventories, net $ 279,079 $ 306,327 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | Property, plant and equipment consisted of the following: End of Fiscal Year 2023 2022 (in thousands) Land $ 15,810 $ 16,307 Buildings and improvements 162,359 169,370 Equipment, furniture and fixtures (1) 533,418 511,916 Computer software 66,792 66,826 Construction-in-progress (2) 21,577 24,066 799,956 788,485 Accumulated depreciation and amortization (3) (508,816) (490,509) Property, plant and equipment, net $ 291,140 $ 297,976 (1) Includes $11.9 million and $9.9 million of leased equipment for 2023 and 2022, respectively. (2) Construction-in-progress costs are presented as a separate asset category. Amounts for 2022, that were previously allocated to each asset class, have been reclassified to conform to the current presentation. (3) Includes $4.7 million and $4.1 million of accumulated amortization on leased equipment for 2023 and 2022, respectively. |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses | Accrued expenses are summarized as follows: End of Fiscal Year 2023 2022 (in thousands) Compensation $ 87,265 $ 80,215 Interest 1,338 2,033 Restructuring — 456 Taxes 18,300 17,092 Accrued purchases 5,141 4,609 Warranty and sales allowances 4,302 2,091 Other 14,544 13,642 Accrued expenses $ 130,890 $ 120,138 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt Instruments | Long-term debt consisted of the following: December 31, 2023 January 1, 2023 Outstanding Principal Interest Rate (1) Outstanding Principal Interest Rate (1) (in thousands) (in thousands) Syndicated Credit Facility: Revolving loan borrowings $ — — % $ 24,250 5.29 % Term loan borrowings 121,658 6.61 % 202,082 5.84 % Total borrowings under Syndicated Credit Facility 121,658 6.61 % 226,332 5.78 % 5.50% Senior Notes due 2028 300,000 5.50 % 300,000 5.50 % Total debt 421,658 526,332 Less: Unamortized debt issuance costs (4,445) (6,118) Total debt, net 417,213 520,214 Less: Current portion of long-term debt (8,572) (10,211) Total long-term debt, net $ 408,641 $ 510,003 (1) Represents the weighted average rate of interest for borrowings under the Syndicated Credit Facility and the stated rate of interest for the 5.50% Senior Notes due 2028, without the effect of debt issuance costs. |
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 2023 are as follows: Fiscal Year Amount (in thousands) 2024 $ 8,572 2025 8,572 2026 8,572 2027 95,942 2028 300,000 Total debt $ 421,658 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Balance Sheet Information, Lessee | The table below represents a summary of the balances recorded in the consolidated balance sheets related to the Company’s leases as of December 31, 2023 and January 1, 2023: December 31, 2023 January 1, 2023 Balance Sheet Location Operating Leases Finance Leases Operating Leases Finance Leases (in thousands) Operating lease right-of-use assets $ 87,519 $ 81,644 Current portion of operating lease liabilities $ 12,347 $ 11,857 Operating lease liabilities 78,269 72,305 Total operating lease liabilities $ 90,616 $ 84,162 Property, plant and equipment, net $ 7,236 $ 5,845 Accrued expenses $ 2,587 $ 2,101 Other long-term liabilities 5,035 4,138 Total finance lease liabilities $ 7,622 $ 6,239 |
Schedule of Lease Costs | Lease Costs Fiscal Year 2023 2022 2021 (in thousands) Finance lease cost: Amortization of right-of-use assets $ 2,808 $ 2,238 $ 2,653 Interest on lease liabilities 319 164 140 Operating lease cost 18,850 18,916 21,581 Short-term lease cost 1,143 849 977 Variable lease cost 2,509 2,692 2,831 Total lease cost $ 25,629 $ 24,859 $ 28,182 |
Other Supplemental Information, Lessee | Other Supplemental Information Fiscal Year 2023 2022 2021 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 237 $ 128 $ 108 Operating cash flows from operating leases 15,552 18,080 22,210 Financing cash flows from finance leases 2,419 2,089 2,282 Right-of-use assets obtained in exchange for new finance lease liabilities 3,612 3,436 3,259 Right-of-use assets obtained in exchange for new operating lease liabilities 15,561 9,307 13,330 |
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 December 31, 2023 and January 1, 2023: End of Fiscal Year 2023 2022 Weighted-average remaining lease term – finance leases (in years) 3.70 3.82 Weighted-average remaining lease term – operating leases (in years) 8.29 9.29 Weighted-average discount rate – finance leases 5.51 % 3.79 % Weighted-average discount rate – operating leases 6.25 % 5.89 % |
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) 2024 $ 16,955 $ 2,921 2025 16,287 2,111 2026 16,196 1,545 2027 13,417 1,105 2028 10,930 570 Thereafter 43,725 244 Total future minimum lease payments (undiscounted) 117,510 8,496 Less: Present value discount (26,894) (874) Total lease liabilities $ 90,616 $ 7,622 |
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) 2024 $ 16,955 $ 2,921 2025 16,287 2,111 2026 16,196 1,545 2027 13,417 1,105 2028 10,930 570 Thereafter 43,725 244 Total future minimum lease payments (undiscounted) 117,510 8,496 Less: Present value discount (26,894) (874) Total lease liabilities $ 90,616 $ 7,622 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The ending balances and the changes in the carrying amounts of goodwill allocated to each reportable segment for the years ended December 31, 2023 and January 1, 2023 are as follows (1) : AMS EAAA Total (in thousands) Goodwill balance, at January 2, 2022 $ 108,505 $ 38,520 $ 147,025 Impairment — (29,384) (29,384) Foreign currency translation (2) (6,088) (9,136) (15,224) Goodwill balance, at January 1, 2023 102,417 — 102,417 Foreign currency translation (2) 3,031 — 3,031 Goodwill balance, at December 31, 2023 $ 105,448 $ — $ 105,448 (1) Goodwill balances are presented net of cumulative impairment losses of $358.5 million as of both December 31, 2023 and January 1, 2023, and $329.1 million as of January 2, 2022. The cumulative impairment losses include impairment charges recognized prior to 2020 related to discontinued operations that were allocated to the current reportable segments on a proportionate basis. (2) A portion of the goodwill balance allocated to the AMS reportable segment is comprised of goodwill denominated in foreign currency attributable to the nora acquisition. |
Schedule of Other Intangible Assets | The Company’s intangible assets other than goodwill consisted of the following as of December 31, 2023 and January 1, 2023: December 31, 2023 January 1, 2023 Gross Carrying Amount Accumulated Impairment Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Impairment Accumulated Amortization Net Carrying Amount (in thousands) Intangible assets subject to amortization (1) : Technology $ 37,198 $ — $ (28,845) $ 8,353 $ 36,069 $ — $ (22,854) $ 13,215 Other 734 (478) (20) 236 764 (478) (17) 269 Total intangible assets subject to amortization 37,932 (478) (28,865) 8,589 36,833 (478) (22,871) 13,484 Indefinite-lived intangible assets (1) : Trademarks and trade names 58,747 (11,081) — 47,666 57,375 (11,081) — 46,294 Total intangible assets $ 96,679 $ (11,559) $ (28,865) $ 56,255 $ 94,208 $ (11,559) $ (22,871) $ 59,778 (1) Certain intangible asset balances are subject to changes attributable to foreign currency translation. |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 2023, 2022 and 2021: SHARES COMMON STOCK ADDITIONAL RETAINED PENSION FOREIGN CASH FLOW TOTAL (in thousands) Balance, at January 1, 2023 58,106 $ 5,811 $ 244,159 $ 278,639 $ (27,548) $ (138,775) $ (749) $ 361,537 Net income — — — 44,517 — — — 44,517 Issuances of stock related to restricted share units and performance shares 85 8 (8) — — — — — Restricted stock issuances 107 11 749 — — — — 760 Unrecognized compensation expense related to restricted stock awards — — (760) — — — — (760) Cash dividends declared — — — (2,323) — — — (2,323) Compensation expense related to share-based plans, net of forfeitures and shares received for tax withholdings (186) (19) 8,769 — — — — 8,750 Pension liability adjustment — — — — (6,468) — — (6,468) Foreign currency translation adjustment — — — — — 19,185 — 19,185 Reclassification out of accumulated other comprehensive loss – discontinued cash flow hedge — — — — — — 749 749 Balance, at December 31, 2023 58,112 $ 5,811 $ 252,909 $ 320,833 $ (34,016) $ (119,590) $ — $ 425,947 SHARES COMMON STOCK ADDITIONAL RETAINED PENSION FOREIGN CASH FLOW TOTAL (in thousands) Balance, at January 2, 2022 59,055 $ 5,905 $ 253,110 $ 261,434 $ (53,888) $ (100,441) $ (2,722) $ 363,398 Net income — — — 19,560 — — — 19,560 Restricted stock issuances 501 50 6,499 — — — — 6,549 Unrecognized compensation expense related to restricted stock awards — — (6,549) — — — — (6,549) Cash dividends declared — — — (2,355) — — — (2,355) Compensation expense related to share-based plans, net of forfeitures and shares received for tax withholdings (66) (6) 8,132 — — — — 8,126 Share repurchases (1,384) (138) (17,033) — — — — (17,171) Pension liability adjustment — — — — 26,340 — — 26,340 Foreign currency translation adjustment — — — — — (38,334) — (38,334) Reclassification out of accumulated other comprehensive loss – discontinued cash flow hedge — — — — — — 1,973 1,973 Balance, at January 1, 2023 58,106 $ 5,811 $ 244,159 $ 278,639 $ (27,548) $ (138,775) $ (749) $ 361,537 SHARES COMMON STOCK ADDITIONAL RETAINED PENSION FOREIGN CASH FLOW TOTAL (in thousands) Balance, at January 3, 2021 58,664 $ 5,865 $ 247,920 $ 208,562 $ (69,288) $ (60,331) $ (6,190) $ 326,538 Net income — — — 55,234 — — — 55,234 Restricted stock issuances 429 43 6,066 — — — — 6,109 Unrecognized compensation expense related to restricted stock awards — — (6,109) — — — — (6,109) Cash dividends declared — — — (2,362) — — — (2,362) Compensation expense related to share-based plans, net of forfeitures (38) (3) 5,233 — — — — 5,230 Pension liability adjustment — — — — 15,400 — — 15,400 Foreign currency translation adjustment — — — — — (40,110) — (40,110) Reclassification out of accumulated other comprehensive loss – discontinued cash flow hedge — — — — — — 3,468 3,468 Balance, at January 2, 2022 59,055 $ 5,905 $ 253,110 $ 261,434 $ (53,888) $ (100,441) $ (2,722) $ 363,398 |
Schedule of Restricted Stock Outstanding and Activity | The following table summarizes restricted stock outstanding as of December 31, 2023, as well as activity during the year: Restricted Shares Weighted Average Grant Date Fair Value Outstanding at January 1, 2023 1,006,400 $ 13.91 Granted 107,100 7.10 Vested (405,100) 14.43 Forfeited or canceled (16,800) 13.60 Outstanding at December 31, 2023 691,600 $ 12.55 |
Schedule of Restricted Share Units Outstanding and Activity | The following table summarizes restricted share units outstanding as of December 31, 2023, as well as activity during the year: Restricted Share Units Weighted Average Grant Date Fair Value Outstanding at January 1, 2023 — $ — Granted 596,200 10.36 Vested (2,100) 10.80 Forfeited or canceled (10,700) 10.80 Outstanding at December 31, 2023 583,400 $ 10.35 |
Schedule of Performance Shares Outstanding and Activity | The following table summarizes the performance shares outstanding as of December 31, 2023, as well as the activity during the year: Performance Shares Weighted Average Grant Date Fair Value Outstanding at January 1, 2023 923,600 $ 13.91 Granted 467,500 10.79 Vested (82,300) 15.11 Forfeited or canceled (193,800) 14.79 Outstanding at December 31, 2023 1,115,000 $ 12.36 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 2023 2022 2021 (in thousands, except per share data) Numerator: Net income $ 44,517 $ 19,560 $ 55,234 Less: distributed and undistributed earnings available to participating securities (569) (323) (602) Distributed and undistributed earnings available to common shareholders $ 43,948 $ 19,237 $ 54,632 Denominator: Weighted average shares outstanding 57,349 57,893 58,328 Participating securities 743 972 643 Shares for basic EPS 58,092 58,865 58,971 Dilutive effect of non-participating securities 243 — — Shares for diluted EPS 58,335 58,865 58,971 Basic EPS $ 0.77 $ 0.33 $ 0.94 Diluted EPS $ 0.76 $ 0.33 $ 0.94 |
Restructuring and Other (Tables
Restructuring and Other (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring, Asset Impairment, Other Gains and Charges | Restructuring, asset impairment, other (gains) and charges by reportable segment are presented as follows: Fiscal Year 2023 2022 2021 (in thousands) AMS $ — $ — $ (1) EAAA (2,502) 1,965 3,622 Total restructuring, asset impairment, other (gains) and charges $ (2,502) $ 1,965 $ 3,621 |
Schedule of Restructuring Reserve by Plan and Type of Cost | A summary of the restructuring reserve balance, recorded within accrued expenses in the consolidated balance sheets, for the restructuring plans is presented below: Workforce Reduction Retention Bonuses Asset Impairment and Other Related Charges 2021 Plan 2019 Plan 2021 Plan 2021 Plan Total (in thousands) 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 Charged to expenses 1 — 493 1,471 1,965 Deductions (1,981) (97) (314) — (2,392) Charged to other accounts — — — (1,471) (1,471) Balance, at January 1, 2023 277 — 179 — 456 Charged to expenses 23 — (19) 174 178 Deductions (300) — (160) — (460) Charged to other accounts — — — (174) (174) Balance, at December 31, 2023 $ — $ — $ — $ — $ — |
Schedule of Expected and Cumulative Restructuring, Asset Impairment and Other Charges | Expected charges and cumulative charges incurred to date under the 2021 restructuring plan are as follows: Workforce Reduction Retention Bonuses Asset Impairment and Other Related Charges Total (in thousands) Estimated expected charges (1) $ 2,281 $ 474 $ 3,295 $ 6,050 Cumulative charges incurred to date (1) 2,281 474 3,295 6,050 (1) Charges are attributable to the EAAA reportable segment. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Before Income Taxes | Income before income taxes consisted of the following: Fiscal Year 2023 2022 2021 (in thousands) U.S. operations $ 3,611 $ 11,758 $ 4,460 Foreign operations 60,043 30,159 68,173 Income before income taxes $ 63,654 $ 41,917 $ 72,633 |
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 2023 2022 2021 (in thousands) Current expense: Federal $ 5,523 $ 1,624 $ 1,987 Foreign 18,330 20,903 21,372 State 2,167 1,307 1,418 Current expense 26,020 23,834 24,777 Deferred (benefit) expense: Federal (4,810) 346 (2,841) Foreign (1,212) (2,053) (3,846) State (861) 230 (691) Deferred benefit (6,883) (1,477) (7,378) Total income tax expense $ 19,137 $ 22,357 $ 17,399 |
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 2023 2022 2021 (in thousands) Income taxes at U.S. federal statutory rate $ 13,367 $ 8,803 $ 15,253 Increase (decrease) in taxes resulting from: State income taxes, net of federal tax effect (432) 817 (87) Non-deductible business expenses 747 237 330 Non-deductible employee compensation 1,681 1,678 1,213 Tax effects of Company-owned life insurance (587) 612 (762) Tax effects of undistributed earnings from foreign subsidiaries not deemed to be indefinitely reinvested 779 1,123 1,219 Foreign and U.S. tax effects attributable to foreign operations 1,537 3,528 1,748 Expiring tax attributes 3,780 — — Valuation allowance effect (879) 2,898 1,349 Research and development tax credits (820) (917) (793) Goodwill impairment — 6,171 — Unrecognized tax benefits (79) (2,463) (2,663) Other 43 (130) 592 Income tax expense $ 19,137 $ 22,357 $ 17,399 |
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 2023 2022 (in thousands) Deferred tax assets Lease liability $ 25,164 $ 23,649 Net operating loss and interest carryforwards 9,587 7,616 Federal tax credit carryforwards 7,876 10,904 Derivative instruments — 295 Deferred compensation 16,517 16,577 Inventory 3,041 3,521 Prepaids, accruals and reserves 8,147 6,947 Capitalized costs 9,442 7,467 Other — 58 Deferred tax asset, gross 79,774 77,034 Valuation allowance (17,357) (18,236) Deferred tax asset, net $ 62,417 $ 58,798 Deferred tax liabilities Property and equipment $ 24,662 $ 25,319 Intangible assets 24,411 25,533 Lease asset 23,868 22,811 Pensions 5 4,284 Foreign currency 686 600 Foreign withholding and U.S. state taxes on unremitted earnings 725 1,146 Other 171 — Deferred tax liabilities 74,528 79,693 Net deferred tax liabilities $ 12,111 $ 20,895 |
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 2023 2022 2021 (in thousands) Balance at beginning of year $ 5,743 $ 8,220 $ 10,799 Increases related to tax positions taken during the current year 320 342 265 Increases related to tax positions taken during the prior years 140 204 198 Decreases related to tax positions taken during the prior years (54) (447) — Decreases related to lapse of applicable statute of limitations (1,218) (2,574) (2,309) Changes due to settlements — — (836) Changes due to foreign currency translation 17 (2) 103 Balance at end of year $ 4,948 $ 5,743 $ 8,220 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 2023 2022 (in thousands) Change in benefit obligation: Benefit obligation, beginning of year $ 195,440 $ 324,408 Service cost 458 840 Interest cost 8,169 3,793 Benefits and expenses paid (10,832) (9,890) Actuarial loss (gain) 12,760 (96,556) Currency translation adjustment 8,433 (27,155) Benefit obligation, end of year $ 214,428 $ 195,440 Change in plan assets: Plan assets, beginning of year $ 187,485 $ 285,600 Actual return on assets 11,596 (66,759) Company contributions 2,497 4,001 Benefits paid (10,832) (9,890) Currency translation adjustment 8,602 (25,467) Plan assets, end of year $ 199,348 $ 187,485 Funded status $ (15,080) $ (7,955) Amounts recognized in consolidated balance sheets: Other assets $ 25,235 $ 26,586 Current liabilities (1,182) (1,032) Other long-term liabilities, net of current portion (39,133) (33,509) Under-funded status at end of fiscal year $ (15,080) $ (7,955) Amounts recognized in accumulated other comprehensive loss, after tax: Unrecognized actuarial loss $ 29,918 $ 23,737 Total amount recognized, end of year $ 29,918 $ 23,737 Accumulated benefit obligation $ 214,428 $ 195,440 End of Fiscal Year 2023 2022 (in thousands) UK Plan Projected benefit obligation $ 108,424 $ 98,730 Accumulated benefit obligation 108,424 98,730 Plan assets 133,658 125,315 Dutch Plan Projected benefit obligation $ 71,422 $ 67,689 Accumulated benefit obligation 71,422 67,689 Plan assets 65,690 62,170 nora Plan Projected benefit obligation $ 34,582 $ 29,021 Accumulated benefit obligation 34,582 29,021 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 in the change in benefit obligation in 2023 and 2022 as there are no longer any participants accruing benefits in the plan. Fiscal Year 2023 2022 (in thousands) Change in benefit obligation: Benefit obligation, beginning of year $ 22,731 $ 30,053 Interest cost 1,134 771 Benefits paid (1,873) (1,873) Actuarial loss (gain) 667 (6,220) Benefit obligation, end of year $ 22,659 $ 22,731 |
Schedule of Net Periodic Benefit Cost | Fiscal Year 2023 2022 2021 (in thousands) Components of net periodic benefit cost: Service cost $ 458 $ 840 $ 1,087 Interest cost 8,169 3,793 2,687 Expected return on plan assets (7,933) (3,957) (3,312) Amortization of prior service cost 137 117 114 Amortization of net actuarial losses 468 1,201 1,968 Net periodic benefit cost $ 1,299 $ 1,994 $ 2,544 |
Schedule of Assumptions Used to Determine Net Periodic Benefit Cost | Fiscal Year 2023 2022 2021 Weighted average assumptions used to determine net periodic benefit cost: Discount rate 4.1 % 1.4 % 0.9 % Expected return on plan assets 4.6 % 3.0 % 1.5 % Weighted average assumptions used to determine benefit obligations: Discount rate 4.1 % 4.4 % 1.6 % The accumulated benefit obligation related to the SCP was $22.7 million as of both December 31, 2023 and January 1, 2023. 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 2023 2022 2021 (in thousands, except for assumptions) Assumptions used to determine net periodic benefit cost: Discount rate 5.20 % 2.65 % 2.15 % Assumptions used to determine benefit obligations: Discount rate 4.90 % 5.20 % 2.65 % Components of net periodic benefit cost: Interest cost $ 1,134 $ 771 $ 706 Amortizations 195 557 743 Net periodic benefit cost $ 1,329 $ 1,328 $ 1,449 |
Schedule of Allocation of Plan Assets | The Company’s actual weighted average asset allocations for 2023 and 2022, and the targeted asset allocation for 2024, of the foreign defined benefit plans by asset category, are as follows: Fiscal Year 2024 2023 2022 Asset Category Target Allocation Percentage of Plan Assets at Year End Equity securities —% — —% —% —% Debt and debt securities 65% — 70% 59% 53% Short-term investments —% — 2% 8% 13% Other investments 30% — 35% 33% 34% 100% 100% 100% Pension Plan Assets by Category as of December 31, 2023 Dutch Plan UK Plan Total (in thousands) Level 1 $ — $ 16,232 $ 16,232 Level 2 — 92,200 92,200 Level 3 65,690 25,226 90,916 Total $ 65,690 $ 133,658 $ 199,348 Pension Plan Assets by Category as of January 1, 2023 Dutch Plan UK Plan Total (in thousands) Level 1 $ — $ 44,335 $ 44,335 Level 2 — 53,286 53,286 Level 3 62,170 27,694 89,864 Total $ 62,170 $ 125,315 $ 187,485 The tables below detail the foreign defined benefit plans’ assets by asset allocation and fair value hierarchy: End of Fiscal Year 2023 Asset Category Level 1 Level 2 Level 3 (in thousands) Debt and debt securities $ — $ 92,200 $ 24,325 Short-term investments (1) 16,232 — — Other investments (2) — — 66,591 $ 16,232 $ 92,200 $ 90,916 End of Fiscal Year 2022 Asset Category Level 1 Level 2 Level 3 (in thousands) Debt and debt securities $ 19,614 $ 53,286 $ 26,778 Short-term investments (1) 24,721 — — Other investments (2) — — 63,086 $ 44,335 $ 53,286 $ 89,864 (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 2023 and 2022: Fiscal Year 2023 2022 (in thousands) Balance of level 3 assets, beginning of year $ 89,864 $ 121,126 Actual return on plan assets (1) 3,429 (21,968) Purchases, sales and settlements, net (5,734) 389 Assets transferred from level 3 — (710) Currency translation adjustment 3,357 (8,973) Balance of level 3 assets, end of year $ 90,916 $ 89,864 (1) Includes $2.7 million and $(22.2) million for 2023 and 2022, respectively, of unrealized gains / (losses) recognized during the period in other comprehensive income (loss) for assets held at year end. |
Schedule of Expected Future Benefit Payments | During 2024, the Company expects to contribute $2.7 million to the foreign defined benefit plans. It is anticipated that future benefit payments for the foreign defined benefit plans will be as follows: Fiscal Year Expected Payments (in thousands) 2024 $ 11,145 2025 11,214 2026 11,360 2027 11,484 2028 11,782 2029-2033 59,800 During 2023, the Company contributed $1.9 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) 2024 $ 1,873 2025 1,873 2026 1,873 2027 1,873 2028 1,851 2029-2033 8,670 |
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 2023 2022 (in thousands) Current liabilities $ 1,873 $ 1,873 Non-current liabilities 20,786 20,858 Total benefit obligation $ 22,659 $ 22,731 The components of the amounts in accumulated other comprehensive loss, after tax, are as follows: Fiscal Year 2023 2022 (in thousands) Unrecognized actuarial loss $ 4,098 $ 3,811 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Operating Segment Information | Segment information for 2023, 2022 and 2021 is presented in the table below: Fiscal Year 2023 2022 2021 (in thousands) Net sales AMS $ 736,955 $ 753,740 $ 651,216 EAAA 524,543 544,179 549,182 Total net sales $ 1,261,498 $ 1,297,919 $ 1,200,398 Segment AOI AMS $ 87,789 $ 102,370 $ 85,014 EAAA 28,608 30,058 37,268 Depreciation and amortization AMS $ 17,989 $ 16,827 $ 17,963 EAAA 22,785 23,510 28,382 Total depreciation and amortization $ 40,774 $ 40,337 $ 46,345 |
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 2023 2022 (in thousands) Assets AMS $ 627,782 $ 588,110 EAAA 630,939 652,921 Total segment assets 1,258,721 1,241,031 Corporate assets 108,673 110,495 Eliminations (137,299) (85,023) Total reported assets $ 1,230,095 $ 1,266,503 |
Balance Sheet Information by Operating Segment, Lessee | Total assets in the table above include operating lease right-of-use assets for fiscal years 2023 and 2022. 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 2023 2022 (in thousands) AMS $ 23,149 $ 14,140 EAAA 54,663 58,255 Total segment operating lease right-of-use assets 77,812 72,395 Corporate operating lease right-of-use assets 9,707 9,249 Total operating lease right-of-use assets $ 87,519 $ 81,644 |
Reconciliation of Operating Income (Loss) to Income Before Income Tax Expense and Segment AOI | Reconciliations of operating income (loss) to income before income tax expense and segment AOI are presented as follows: Fiscal Year 2023 2022 2021 (in thousands) AMS operating income $ 85,035 $ 92,234 $ 81,445 EAAA operating income (loss) 19,487 (16,836) 23,352 Consolidated operating income 104,522 75,398 104,797 Interest expense 31,787 29,929 29,681 Other expense, net 9,081 3,552 2,483 Income before income tax expense $ 63,654 $ 41,917 $ 72,633 Fiscal Year 2023 2022 2021 AMS EAAA AMS EAAA AMS EAAA (in thousands) Operating income (loss) $ 85,035 $ 19,487 $ 92,234 $ (16,836) $ 81,445 $ 23,352 Purchase accounting amortization — 5,172 — 5,038 — 5,636 Thailand plant closure inventory write-down — — — 2,530 — — Cyber Event impact 616 456 3,878 1,215 — — Goodwill and intangible asset impairment — — 3,838 32,342 — — Restructuring, asset impairment, severance, and other, net 2,138 3,493 2,420 5,769 3,569 8,280 AOI $ 87,789 $ 28,608 $ 102,370 $ 30,058 $ 85,014 $ 37,268 |
Schedule of Revenue and Long-Lived Assets | Net sales and long-lived assets for the United States and other significant countries (that individually represent 10% or greater of consolidated totals for each year presented) are as follows: Fiscal Year Net Sales to Unaffiliated Customers (1) 2023 2022 2021 (in thousands) United States $ 677,342 $ 694,299 $ 596,844 Other foreign countries 584,156 603,620 603,554 Total net sales $ 1,261,498 $ 1,297,919 $ 1,200,398 End of Fiscal Year Long-Lived Assets (2) 2023 2022 (in thousands) United States $ 146,106 $ 146,210 Germany 66,740 64,182 Netherlands 40,455 42,422 Other foreign countries (3) 37,839 45,162 Total long-lived assets $ 291,140 $ 297,976 (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. 2023 includes $2.2 million and $5.0 million of leased equipment, net of accumulated amortization, in the United States and foreign countries, respectively. 2022 includes $1.3 million and $4.5 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 |
Dec. 31, 2023 | |
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 2023, 2022 and 2021, are reflected in the table below: Fiscal Year Statement of Operations Location 2023 2022 2021 (in thousands) Loss on foreign subsidiary liquidation (1) Other expense, net $ (6,221) $ — $ — Interest rate swap contracts loss (2) Interest expense (982) (2,809) (4,861) Amortization of benefit plan net actuarial losses and prior service cost (3) Other expense, net (800) (1,875) (2,825) Total loss reclassified from AOCI $ (8,003) $ (4,684) $ (7,686) (1) The Company’s foreign subsidiaries in Russia and Brazil were substantially liquidated in 2023, and the cumulative foreign currency translation losses associated with these entities were recognized in the consolidated statements of operations. The tax impact of the cumulative foreign currency translation reclassification for 2023 is approximately $1.1 million. (2) The tax impact of the interest rate swap reclassifications were $0.2 million, $0.8 million and $1.4 million for 2023, 2022 and 2021, respectively, related to the discontinued cash flow hedges. See Note 10 entitled “Derivative Instruments” for additional information. (3) See Note 19 entitled “Employee Benefit Plans” for the tax impact of reclassifications related to the Company’s defined benefit plans. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) | Jan. 01, 2023 USD ($) | Jan. 02, 2022 USD ($) | |
Summary of Significant Accounting Policies [Line Items] | |||
Number of operating segments | 2 | ||
Number of reportable segments | 2 | ||
Payment terms for revenue from contract with customer (in days) | 60 days | ||
Warranty claims as a percent of revenue, maximum (percentage) | 0.50% | 0.50% | 0.50% |
Installation projects completed in less than five days as a percent of total (percentage) | 85% | ||
Advertising expense | $ 34,600,000 | $ 31,300,000 | $ 28,400,000 |
Research and development expense | 17,000,000 | 19,100,000 | 19,300,000 |
Cash equivalents | 0 | 0 | |
Short-term investments | 0 | 0 | |
Interest paid | 28,800,000 | 25,100,000 | 22,900,000 |
Income taxes paid | 25,800,000 | 31,400,000 | 23,100,000 |
Proceeds from income tax refunds | 2,500,000 | 12,400,000 | 5,400,000 |
Depreciation expense | $ 35,900,000 | 36,300,000 | 41,900,000 |
Workmanship warranty period (in years) | 1 year | ||
Warranty and sales allowance reserves | $ 4,300,000 | 2,100,000 | |
Foreign exchange translation gains (losses) | $ 19,185,000 | $ (38,334,000) | $ (40,110,000) |
Technology | |||
Summary of Significant Accounting Policies [Line Items] | |||
Estimated useful life (in years) | 7 years | ||
Buildings and Improvements | Minimum | |||
Summary of Significant Accounting Policies [Line Items] | |||
Estimated useful life (in years) | 10 years | ||
Buildings and Improvements | Maximum | |||
Summary of Significant Accounting Policies [Line Items] | |||
Estimated useful life (in years) | 40 years | ||
Equipment, Furniture and Fixtures | Minimum | |||
Summary of Significant Accounting Policies [Line Items] | |||
Estimated useful life (in years) | 3 years | ||
Equipment, Furniture and Fixtures | Maximum | |||
Summary of Significant Accounting Policies [Line Items] | |||
Estimated useful life (in years) | 12 years | ||
Computer Software | Minimum | |||
Summary of Significant Accounting Policies [Line Items] | |||
Estimated useful life (in years) | 3 years | ||
Computer Software | Maximum | |||
Summary of Significant Accounting Policies [Line Items] | |||
Estimated useful life (in years) | 6 years | ||
Weinheim Manufacturing Equipment | Maximum | |||
Summary of Significant Accounting Policies [Line Items] | |||
Estimated useful life (in years) | 25 years | ||
Leasehold Improvements | Minimum | |||
Summary of Significant Accounting Policies [Line Items] | |||
Estimated useful life (in years) | 3 years | ||
Leasehold Improvements | Maximum | |||
Summary of Significant Accounting Policies [Line Items] | |||
Estimated useful life (in years) | 12 years | ||
Revenue from the sale of flooring material | |||
Summary of Significant Accounting Policies [Line Items] | |||
Percent of revenue due to contracts with customers (percentage) | 98% | 97% | 98% |
Revenue from installation of flooring material | |||
Summary of Significant Accounting Policies [Line Items] | |||
Percent of revenue due to contracts with customers (percentage) | 2% | 3% | 2% |
Carpet Products | Minimum | |||
Summary of Significant Accounting Policies [Line Items] | |||
Product warranty period (in years) | 10 years | ||
Carpet Products | Maximum | |||
Summary of Significant Accounting Policies [Line Items] | |||
Product warranty period (in years) | 20 years | ||
Rubber and Luxury Vinyl Tile Products | Minimum | |||
Summary of Significant Accounting Policies [Line Items] | |||
Product warranty period (in years) | 5 years | ||
Rubber and Luxury Vinyl Tile Products | Maximum | |||
Summary of Significant Accounting Policies [Line Items] | |||
Product warranty period (in years) | 15 years |
Revenue Recognition - Revenue b
Revenue Recognition - Revenue by Products and Services (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Revenue from the sale of flooring material | |||
Revenue from External Customer [Line Items] | |||
Percent of revenue due to contracts with customers (percentage) | 98% | 97% | 98% |
Revenue from installation of flooring material | |||
Revenue from External Customer [Line Items] | |||
Percent of revenue due to contracts with customers (percentage) | 2% | 3% | 2% |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Americas | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of net sales | 58.40% | 58% | 54.30% |
Europe | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of net sales | 30.10% | 29.20% | 31.70% |
Asia-Pacific | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of net sales | 11.50% | 12.80% | 14% |
Receivables - Narrative (Detail
Receivables - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Jan. 01, 2023 |
Receivables [Abstract] | ||
Allowance for expected credit losses | $ 3 | $ 4 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Fair Value Schedule (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 |
Financial Instrument [Line Items] | ||
Company-owned life insurance, carrying value | $ 22,788 | $ 22,616 |
Long-term debt, gross | 421,658 | 526,332 |
Unamortized debt issuance costs, recorded as reduction of long-term debt, net | 4,445 | 6,118 |
Syndicated Facility Agreement | ||
Financial Instrument [Line Items] | ||
Long-term debt, gross | 121,658 | 226,332 |
Syndicated Facility Agreement | Term Loan | ||
Financial Instrument [Line Items] | ||
Long-term debt, gross | 121,658 | 202,082 |
Unamortized debt issuance costs, recorded as reduction of long-term debt, net | 1,000 | 1,900 |
Senior Notes | ||
Financial Instrument [Line Items] | ||
Long-term debt, gross | 300,000 | 300,000 |
Unamortized debt issuance costs, recorded as reduction of long-term debt, net | $ 3,400 | $ 4,200 |
Stated interest rate (percentage) | 5.50% | 5.50% |
Nonqualified Savings Plans | ||
Financial Instrument [Line Items] | ||
Deferred compensation investments, carrying value | $ 28,417 | $ 27,610 |
Nonqualified Savings Plans | Mutual Funds | ||
Financial Instrument [Line Items] | ||
Deferred compensation investments, carrying value | 9,200 | 11,000 |
Nonqualified Savings Plans | Insurance Contracts | ||
Financial Instrument [Line Items] | ||
Deferred compensation investments, carrying value | 19,200 | 16,600 |
Level 1 | Nonqualified Savings Plans | Mutual Funds | ||
Financial Instrument [Line Items] | ||
Deferred compensation investments, fair value | 9,200 | 11,003 |
Level 2 | ||
Financial Instrument [Line Items] | ||
Company-owned life insurance, fair value | 22,788 | 22,616 |
Level 2 | Syndicated Facility Agreement | ||
Financial Instrument [Line Items] | ||
Long-term debt, fair value | 121,658 | 226,332 |
Level 2 | Senior Notes | ||
Financial Instrument [Line Items] | ||
Long-term debt, fair value | 281,991 | 248,652 |
Level 2 | Nonqualified Savings Plans | Insurance Contracts | ||
Financial Instrument [Line Items] | ||
Deferred compensation investments, fair value | $ 19,217 | $ 16,607 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 201,821 | $ 209,478 |
Work-in-process | 20,892 | 15,463 |
Raw materials | 56,366 | 81,386 |
Inventories, net | $ 279,079 | $ 306,327 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Jan. 01, 2023 |
Inventory Disclosure [Abstract] | ||
Inventory obsolescence reserves | $ 34 | $ 28.5 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 799,956 | $ 788,485 |
Accumulated depreciation and amortization | (508,816) | (490,509) |
Property, plant and equipment, net | 291,140 | 297,976 |
Leased equipment | 11,900 | 9,900 |
Leased equipment accumulated amortization | 4,700 | 4,100 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 15,810 | 16,307 |
Buildings and Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 162,359 | 169,370 |
Equipment, Furniture and Fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 533,418 | 511,916 |
Computer Software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 66,792 | 66,826 |
Construction-in-Progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 21,577 | $ 24,066 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jul. 02, 2023 | Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Assets Disposed [Line Items] | ||||
Proceeds from sale of property, plant and equipment | $ 6,593 | $ 0 | $ 0 | |
Gain (loss) on disposal of property, plant and equipment | $ 2,252 | $ (4,319) | $ (4,427) | |
2021 Restructuring Plan | Operating Segments | EAAA | ||||
Assets Disposed [Line Items] | ||||
Proceeds from sale of property, plant and equipment | $ 6,600 | |||
Gain (loss) on disposal of property, plant and equipment | $ 2,700 |
Accrued Expenses - Summary of A
Accrued Expenses - Summary of Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 |
Payables and Accruals [Abstract] | ||
Compensation | $ 87,265 | $ 80,215 |
Interest | 1,338 | 2,033 |
Restructuring | 0 | 456 |
Taxes | 18,300 | 17,092 |
Accrued purchases | 5,141 | 4,609 |
Warranty and sales allowances | 4,302 | 2,091 |
Other | 14,544 | 13,642 |
Accrued expenses | $ 130,890 | $ 120,138 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 |
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 421,658 | $ 526,332 |
Less: Unamortized debt issuance costs | (4,445) | (6,118) |
Total debt, net | 417,213 | 520,214 |
Less: Current portion of long-term debt | (8,572) | (10,211) |
Long-term debt, net | 408,641 | 510,003 |
Syndicated Facility Agreement | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 121,658 | $ 226,332 |
Weighted average interest rate on borrowings outstanding (percentage) | 6.61% | 5.78% |
Syndicated Facility Agreement | Revolving Loan Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 0 | $ 24,250 |
Weighted average interest rate on borrowings outstanding (percentage) | 0% | 5.29% |
Syndicated Facility Agreement | Term Loan | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 121,658 | $ 202,082 |
Less: Unamortized debt issuance costs | $ (1,000) | $ (1,900) |
Weighted average interest rate on borrowings outstanding (percentage) | 6.61% | 5.84% |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 300,000 | $ 300,000 |
Less: Unamortized debt issuance costs | $ (3,400) | $ (4,200) |
Stated interest rate (percentage) | 5.50% | 5.50% |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Oct. 14, 2022 | Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Debt Instrument [Line Items] | ||||
Payments of debt issuance costs | $ 0 | $ 1,032 | $ 36 | |
Repayments of term loan borrowing | 80,927 | 13,191 | 60,485 | |
Unamortized debt issuance costs, recorded as reduction of long-term debt, net | 4,445 | 6,118 | ||
Long-term debt, gross | 421,658 | 526,332 | ||
Term Loan and Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Unamortized debt issuance costs, recorded as reduction of long-term debt, net | 4,400 | 6,100 | ||
Amortization of debt issuance costs | 1,700 | 1,200 | 1,600 | |
Syndicated Facility Agreement | ||||
Debt Instrument [Line Items] | ||||
Revolving loan facility, maximum borrowing capacity | 300,000 | |||
Revolving loan facility, remaining borrowing capacity | 298,400 | |||
Payments of debt issuance costs | $ 1,000 | |||
Loss on extinguishment of debt | 100 | |||
Threshold of other indebtedness triggering default | $ 20,000 | |||
Maximum percentage of first tier subsidiary stock pledged as collateral (percentage) | 65% | |||
Letters of credit outstanding | $ 1,600 | 1,600 | ||
Unamortized debt issuance costs, revolving loan facility, net | 1,400 | 1,800 | ||
Long-term debt, gross | $ 121,658 | 226,332 | ||
Syndicated Facility Agreement | Minimum | ||||
Debt Instrument [Line Items] | ||||
Revolving loan facility, interest rate (percentage) | 0.25% | |||
Revolving loan facility, commitment fee percentage of unused capacity (percentage) | 0.20% | |||
Syndicated Facility Agreement | Maximum | ||||
Debt Instrument [Line Items] | ||||
Revolving loan facility, interest rate (percentage) | 2% | |||
Revolving loan facility, commitment fee percentage of unused capacity (percentage) | 0.40% | |||
Syndicated Facility Agreement | Secured Overnight Financing Rate (SOFR) Rate or Alternate Currency Rate | Minimum | ||||
Debt Instrument [Line Items] | ||||
Revolving loan facility, basis spread on variable rate (percentage) | 1.25% | |||
Syndicated Facility Agreement | Secured Overnight Financing Rate (SOFR) Rate or Alternate Currency Rate | Maximum | ||||
Debt Instrument [Line Items] | ||||
Revolving loan facility, basis spread on variable rate (percentage) | 3% | |||
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 | 400 | |||
Unamortized debt issuance costs, recorded as reduction of long-term debt, net | $ 1,000 | 1,900 | ||
Long-term debt, gross | 121,658 | 202,082 | ||
Syndicated Facility Agreement | Revolving Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Payments of debt issuance costs | $ 700 | |||
Amortization of debt issuance costs | 400 | 400 | $ 400 | |
Long-term debt, gross | $ 0 | $ 24,250 | ||
Syndicated Facility Agreement | Commercial Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Letter of credit fee (percentage) | 1% | |||
Syndicated Facility Agreement | Standby Letter of Credit | Minimum | ||||
Debt Instrument [Line Items] | ||||
Letter of credit fee (percentage) | 1.25% | |||
Syndicated Facility Agreement | Standby Letter of Credit | Maximum | ||||
Debt Instrument [Line Items] | ||||
Letter of credit fee (percentage) | 3% | |||
Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (percentage) | 5.50% | 5.50% | ||
Amount of principal declared due upon event of default (percentage) | 25% | |||
Unamortized debt issuance costs, recorded as reduction of long-term debt, net | $ 3,400 | $ 4,200 | ||
Long-term debt, gross | $ 300,000 | $ 300,000 | ||
Senior Notes | Before December 1, 2023 Redemption Period | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, redemption price (percentage) | 100% | |||
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, amount of principal redeemed (percentage) | 35% | |||
Senior Notes | Changes of Control | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, redemption price (percentage) | 101% |
Long-Term Debt - Senior Notes R
Long-Term Debt - Senior Notes Redemption (Details) - Senior Notes | 12 Months Ended |
Dec. 31, 2023 | |
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% |
Long-Term Debt - Future Maturit
Long-Term Debt - Future Maturities of Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 |
Debt Disclosure [Abstract] | ||
2024 | $ 8,572 | |
2025 | 8,572 | |
2026 | 8,572 | |
2027 | 95,942 | |
2028 | 300,000 | |
Total debt | $ 421,658 | $ 526,332 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - Interest Rate Swap - USD ($) $ in Millions | Dec. 31, 2023 | Jan. 01, 2023 | Dec. 02, 2020 |
Derivative [Line Items] | |||
Derivative, notional amount | $ 250 | ||
Accumulated other comprehensive loss, loss of discontinued cash flow hedge, before tax | $ 0 | $ (1) |
Leases - Narrative (Details)
Leases - Narrative (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Lessee, Lease, Description [Line Items] | |
Lease renewal term (in years) | 5 years |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease contract term (in years) | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease contract term (in years) | 20 years |
Leases - Balance Sheet Informat
Leases - Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 87,519 | $ 81,644 |
Current portion of operating lease liabilities | 12,347 | 11,857 |
Operating lease liabilities | 78,269 | 72,305 |
Total operating lease liabilities | 90,616 | 84,162 |
Finance lease right-of-use assets, net | $ 7,236 | $ 5,845 |
Finance lease right-of-use asset, consolidated balance sheet location | Property, plant and equipment, net | Property, plant and equipment, net |
Current portion of finance lease liabilities | $ 2,587 | $ 2,101 |
Finance lease liability, current, consolidated balance sheet location | Accrued expenses | Accrued expenses |
Finance lease liabilities | $ 5,035 | $ 4,138 |
Finance lease liability, noncurrent, consolidated balance sheet location | Other long-term liabilities | Other long-term liabilities |
Total finance lease liabilities | $ 7,622 | $ 6,239 |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Leases [Abstract] | |||
Finance lease cost: Amortization of right-of-use assets | $ 2,808 | $ 2,238 | $ 2,653 |
Finance lease cost: Interest on lease liabilities | 319 | 164 | 140 |
Operating lease cost | 18,850 | 18,916 | 21,581 |
Short-term lease cost | 1,143 | 849 | 977 |
Variable lease cost | 2,509 | 2,692 | 2,831 |
Total lease cost | $ 25,629 | $ 24,859 | $ 28,182 |
Leases - Other Supplemental Inf
Leases - Other Supplemental Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Leases [Abstract] | |||
Operating cash flows from finance leases | $ 237 | $ 128 | $ 108 |
Operating cash flows from operating leases | 15,552 | 18,080 | 22,210 |
Financing cash flows from finance leases | 2,419 | 2,089 | 2,282 |
Right-of-use assets obtained in exchange for new finance lease liabilities | 3,612 | 3,436 | 3,259 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 15,561 | $ 9,307 | $ 13,330 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | Dec. 31, 2023 | Jan. 01, 2023 |
Leases [Abstract] | ||
Weighted-average remaining lease term – finance leases (in years) | 3 years 8 months 12 days | 3 years 9 months 25 days |
Weighted-average remaining lease term – operating leases (in years) | 8 years 3 months 14 days | 9 years 3 months 14 days |
Weighted-average discount rate – finance leases (percentage) | 5.51% | 3.79% |
Weighted-average discount rate – operating leases (percentage) | 6.25% | 5.89% |
Leases - Maturity of Lease Paym
Leases - Maturity of Lease Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2024 | $ 16,955 | |
2025 | 16,287 | |
2026 | 16,196 | |
2027 | 13,417 | |
2028 | 10,930 | |
Thereafter | 43,725 | |
Total future minimum lease payments (undiscounted) | 117,510 | |
Less: Present value discount | (26,894) | |
Total lease liabilities | 90,616 | $ 84,162 |
Lessee, Finance Lease, Liability, Payment, Due [Abstract] | ||
2024 | 2,921 | |
2025 | 2,111 | |
2026 | 1,545 | |
2027 | 1,105 | |
2028 | 570 | |
Thereafter | 244 | |
Total future minimum lease payments (undiscounted) | 8,496 | |
Less: Present value discount | (874) | |
Total lease liabilities | $ 7,622 | $ 6,239 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Jan. 01, 2023 USD ($) | Dec. 31, 2023 USD ($) | Jan. 01, 2023 USD ($) | Jan. 02, 2022 USD ($) | Oct. 02, 2023 | Oct. 03, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||
Number of operating segments | 2 | |||||
Number of reportable segments | 2 | |||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Goodwill, impairment loss | $ 29,384 | |||||
Goodwill | $ 102,417 | $ 105,448 | 102,417 | $ 147,025 | ||
Impairment of intangible assets, indefinite-lived | $ 6,300 | |||||
Impairment of intangible assets, indefinite-lived | 6.3 million | |||||
Amortization of acquired intangible assets | 5,172 | 5,038 | 5,636 | |||
Finite-lived intangible asset, expected amortization, 2024 | 5,000 | |||||
Finite-lived intangible asset, expected amortization, 2025 | 3,000 | |||||
Americas | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
WACC (percentage) | 11.50% | 13.50% | ||||
Reporting unit, percentage of fair value in excess of carrying amount | 71% | 71% | ||||
EMEA | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Goodwill, impairment loss | $ 29,400 | |||||
Operating Segments | AMS | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Goodwill, impairment loss | 0 | |||||
Goodwill | 102,417 | 105,448 | 102,417 | 108,505 | ||
Impairment of intangible assets, indefinite-lived | 3,600 | |||||
Amortization of acquired intangible assets | 0 | 0 | 0 | |||
Operating Segments | EAAA | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Goodwill, impairment loss | 29,384 | |||||
Goodwill | 0 | 0 | 0 | 38,520 | ||
Impairment of intangible assets, indefinite-lived | $ 2,700 | |||||
Amortization of acquired intangible assets | $ 5,172 | $ 5,038 | $ 5,636 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Changes in Carrying Amounts of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Goodwill [Roll Forward] | |||
Balance at beginning of year | $ 102,417 | $ 147,025 | |
Impairment | (29,384) | ||
Foreign currency translation | 3,031 | (15,224) | |
Balance at end of year | 105,448 | 102,417 | |
Accumulated impairment losses recognized | 358,500 | 358,500 | $ 329,100 |
Operating Segments | AMS | |||
Goodwill [Roll Forward] | |||
Balance at beginning of year | 102,417 | 108,505 | |
Impairment | 0 | ||
Foreign currency translation | 3,031 | (6,088) | |
Balance at end of year | 105,448 | 102,417 | |
Operating Segments | EAAA | |||
Goodwill [Roll Forward] | |||
Balance at beginning of year | 0 | 38,520 | |
Impairment | (29,384) | ||
Foreign currency translation | 0 | (9,136) | |
Balance at end of year | $ 0 | $ 0 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 |
Schedule of Other Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, gross | $ 37,932 | $ 36,833 |
Intangible assets subject to amortization, accumulated amortization | (28,865) | (22,871) |
Intangible assets subject to amortization, net | 8,589 | 13,484 |
Indefinite-lived intangible assets and intangible assets subject to amortization, accumulated impairment | (11,559) | (11,559) |
Total intangible assets, gross | 96,679 | 94,208 |
Total intangible assets, net | 56,255 | 59,778 |
Trademarks and Trade Names | ||
Schedule of Other Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, gross | 58,747 | 57,375 |
Indefinite-lived intangible assets and intangible assets subject to amortization, accumulated impairment | (11,081) | (11,081) |
Indefinite-lived intangible assets, net | 47,666 | 46,294 |
Technology | ||
Schedule of Other Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, gross | 37,198 | 36,069 |
Intangible assets subject to amortization, accumulated amortization | (28,845) | (22,854) |
Intangible assets subject to amortization, net | 8,353 | 13,215 |
Other Intangible Assets | ||
Schedule of Other Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, gross | 734 | 764 |
Intangible assets subject to amortization, accumulated amortization | (20) | (17) |
Intangible assets subject to amortization, net | 236 | 269 |
Indefinite-lived intangible assets and intangible assets subject to amortization, accumulated impairment | $ (478) | $ (478) |
Preferred Stock - Narrative (De
Preferred Stock - Narrative (Details) - $ / shares | Dec. 31, 2023 | Jan. 01, 2023 |
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) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | May 17, 2022 | May 22, 2020 | |
Shareholders' Equity [Line Items] | |||||
Common stock, shares authorized (in shares) | 120,000,000 | 120,000,000 | |||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 | |||
Common stock, cash dividends declared (in dollars per share) | 0.04 | 0.04 | $ 0.04 | ||
Common stock, cash dividends paid (in dollars per share) | $ 0.04 | $ 0.04 | $ 0.04 | ||
Share repurchase program, authorized amount | $ 100,000 | ||||
Share repurchases (in shares) | 0 | 1,383,682 | |||
Share repurchases, weighted average price (in dollars per share) | $ 12.41 | ||||
Number of shares authorized for issuance or transfer (in shares) | 3,700,000 | ||||
Share-based compensation expense | $ 10,265 | $ 8,527 | $ 5,467 | ||
Share-based compensation expense, tax benefit | $ 900 | $ 800 | $ 700 | ||
Restricted Stock | |||||
Shareholders' Equity [Line Items] | |||||
Share-based awards granted (in shares) | 107,100 | 500,800 | 428,400 | ||
Stock awards granted, weighted average grant date fair value (in dollars per share) | $ 7.10 | $ 13.08 | $ 14.26 | ||
Share-based compensation expense | $ 4,500 | $ 5,300 | $ 3,800 | ||
Unrecognized compensation expense related to unvested share-based awards | $ 1,800 | ||||
Weighted average period for recognizing unrecognized share-based compensation expense (in years) | 8 months 12 days | ||||
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 | ||||
Restricted Share Units | |||||
Shareholders' Equity [Line Items] | |||||
Share-based awards granted (in shares) | 596,200 | 0 | 0 | ||
Stock awards granted, weighted average grant date fair value (in dollars per share) | $ 10.36 | ||||
Share-based compensation expense | $ 1,900 | $ 0 | $ 0 | ||
Unrecognized compensation expense related to unvested share-based awards | $ 4,100 | ||||
Weighted average period for recognizing unrecognized share-based compensation expense (in years) | 2 years 1 month 6 days | ||||
Number of shares of common stock to be issued for each restricted share unit vested (in shares) | 1 | ||||
Restricted Share Units | Minimum | |||||
Shareholders' Equity [Line Items] | |||||
Vesting period (in years) | 2 years | ||||
Restricted Share Units | Maximum | |||||
Shareholders' Equity [Line Items] | |||||
Vesting period (in years) | 3 years | ||||
Performance Shares | |||||
Shareholders' Equity [Line Items] | |||||
Share-based awards granted (in shares) | 467,500 | ||||
Stock awards granted, weighted average grant date fair value (in dollars per share) | $ 10.79 | ||||
Share-based compensation expense | $ 3,900 | $ 3,200 | $ 1,700 | ||
Unrecognized compensation expense related to unvested share-based awards | $ 5,900 | ||||
Weighted average period for recognizing unrecognized share-based compensation expense (in years) | 1 year 8 months 12 days | ||||
Number of shares that may be issued in settlement of the performance shares to the award recipient, upper limit (percentage) | 200% | ||||
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 | ||||
Common Stock | |||||
Shareholders' Equity [Line Items] | |||||
Share repurchases (in shares) | 1,384,000 |
Shareholders' Equity - Activity
Shareholders' Equity - Activity in Shareholders' Equity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance at beginning of year | $ 361,537 | $ 363,398 | $ 326,538 |
Net income | 44,517 | 19,560 | 55,234 |
Issuances of stock related to restricted share units and performance shares | 0 | ||
Restricted stock issuances | 760 | 6,549 | 6,109 |
Unrecognized compensation expense related to restricted stock awards | (760) | (6,549) | (6,109) |
Cash dividends declared | (2,323) | (2,355) | (2,362) |
Compensation expense related to share-based plans, net of forfeitures and shares received for tax withholdings | $ 8,750 | $ 8,126 | 5,230 |
Share repurchases (in shares) | 0 | (1,383,682) | |
Share repurchases | $ (17,171) | ||
Pension liability adjustment | $ (6,468) | 26,340 | 15,400 |
Foreign currency translation adjustment | 19,185 | (38,334) | (40,110) |
Reclassification from accumulated other comprehensive loss – discontinued cash flow hedge | 749 | 1,973 | 3,468 |
Balance at end of year | $ 425,947 | $ 361,537 | $ 363,398 |
COMMON STOCK | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance at beginning of year (in shares) | 58,106,000 | 59,055,000 | 58,664,000 |
Balance at beginning of year | $ 5,811 | $ 5,905 | $ 5,865 |
Issuances of stock related to restricted share units and performance shares (in shares) | 85,000 | ||
Issuances of stock related to restricted share units and performance shares | $ 8 | ||
Restricted stock issuances (in shares) | 107,000 | 501,000 | 429,000 |
Restricted stock issuances | $ 11 | $ 50 | $ 43 |
Compensation expense related to share-based plans, net of forfeitures and shares received for tax withholdings (in shares) | (186,000) | (66,000) | (38,000) |
Compensation expense related to share-based plans, net of forfeitures and shares received for tax withholdings | $ (19) | $ (6) | $ (3) |
Share repurchases (in shares) | (1,384,000) | ||
Share repurchases | $ (138) | ||
Balance at end of year (in shares) | 58,112,000 | 58,106,000 | 59,055,000 |
Balance at end of year | $ 5,811 | $ 5,811 | $ 5,905 |
ADDITIONAL PAID-IN CAPITAL | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance at beginning of year | 244,159 | 253,110 | 247,920 |
Issuances of stock related to restricted share units and performance shares | (8) | ||
Restricted stock issuances | 749 | 6,499 | 6,066 |
Unrecognized compensation expense related to restricted stock awards | (760) | (6,549) | (6,109) |
Compensation expense related to share-based plans, net of forfeitures and shares received for tax withholdings | 8,769 | 8,132 | 5,233 |
Share repurchases | (17,033) | ||
Balance at end of year | 252,909 | 244,159 | 253,110 |
RETAINED EARNINGS | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance at beginning of year | 278,639 | 261,434 | 208,562 |
Net income | 44,517 | 19,560 | 55,234 |
Cash dividends declared | (2,323) | (2,355) | (2,362) |
Balance at end of year | 320,833 | 278,639 | 261,434 |
PENSION LIABILITY | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance at beginning of year | (27,548) | (53,888) | (69,288) |
Pension liability adjustment | (6,468) | 26,340 | 15,400 |
Balance at end of year | (34,016) | (27,548) | (53,888) |
FOREIGN CURRENCY TRANSLATION ADJUSTMENT | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance at beginning of year | (138,775) | (100,441) | (60,331) |
Foreign currency translation adjustment | 19,185 | (38,334) | (40,110) |
Balance at end of year | (119,590) | (138,775) | (100,441) |
CASH FLOW HEDGE | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance at beginning of year | (749) | (2,722) | (6,190) |
Reclassification from accumulated other comprehensive loss – discontinued cash flow hedge | 749 | 1,973 | 3,468 |
Balance at end of year | $ 0 | $ (749) | $ (2,722) |
Shareholders' Equity - Restrict
Shareholders' Equity - Restricted Stock Outstanding (Details) - Restricted Stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Shares | |||
Outstanding at beginning of year (in shares) | 1,006,400 | ||
Granted (in shares) | 107,100 | 500,800 | 428,400 |
Vested (in shares) | (405,100) | ||
Forfeited or canceled (in shares) | (16,800) | ||
Outstanding at end of year (in shares) | 691,600 | 1,006,400 | |
Weighted Average Grant Date Fair Value | |||
Outstanding at beginning of year, weighted average grant date fair value (in dollars per share) | $ 13.91 | ||
Granted, weighted average grant date fair value (in dollars per share) | 7.10 | $ 13.08 | $ 14.26 |
Vested, weighted average grant date fair value (in dollars per share) | 14.43 | ||
Forfeited or canceled, weighted average grant date fair value (in dollars per share) | 13.60 | ||
Outstanding at end of year, weighted average grant date fair value (in dollars per share) | $ 12.55 | $ 13.91 |
Shareholders' Equity - Restri_2
Shareholders' Equity - Restricted Share Units Outstanding (Details) - Restricted Share Units - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Shares | |||
Outstanding at beginning of year (in shares) | 0 | ||
Granted (in shares) | 596,200 | 0 | 0 |
Vested (in shares) | (2,100) | ||
Forfeited or canceled (in shares) | (10,700) | ||
Outstanding at end of year (in shares) | 583,400 | 0 | |
Weighted Average Grant Date Fair Value | |||
Outstanding at beginning of year, weighted average grant date fair value (in dollars per share) | $ 0 | ||
Granted, weighted average grant date fair value (in dollars per share) | 10.36 | ||
Vested, weighted average grant date fair value (in dollars per share) | 10.80 | ||
Forfeited or canceled, weighted average grant date fair value (in dollars per share) | 10.80 | ||
Outstanding at end of year, weighted average grant date fair value (in dollars per share) | $ 10.35 | $ 0 |
Shareholders' Equity - Performa
Shareholders' Equity - Performance Shares Outstanding (Details) - Performance Shares | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Shares | |
Outstanding at beginning of year (in shares) | shares | 923,600 |
Granted (in shares) | shares | 467,500 |
Vested (in shares) | shares | (82,300) |
Forfeited or canceled (in shares) | shares | (193,800) |
Outstanding at end of year (in shares) | shares | 1,115,000 |
Weighted Average Grant Date Fair Value | |
Outstanding at beginning of year, weighted average grant date fair value (in dollars per share) | $ / shares | $ 13.91 |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | 10.79 |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | 15.11 |
Forfeited or canceled, weighted average grant date fair value (in dollars per share) | $ / shares | 14.79 |
Outstanding at end of year, weighted average grant date fair value (in dollars per share) | $ / shares | $ 12.36 |
Earnings Per Share - Basic and
Earnings Per Share - Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Numerator: | |||
Net income | $ 44,517 | $ 19,560 | $ 55,234 |
Distributed and undistributed earnings available to participating securities, basic | (569) | (323) | (602) |
Distributed and undistributed earnings available to participating securities, diluted | (569) | (323) | (602) |
Distributed and undistributed earnings available to common shareholders, basic | 43,948 | 19,237 | 54,632 |
Distributed and undistributed earnings available to common shareholders, diluted | $ 43,948 | $ 19,237 | $ 54,632 |
Denominator: | |||
Weighted average shares outstanding (in shares) | 57,349 | 57,893 | 58,328 |
Participating securities (in shares) | 743 | 972 | 643 |
Shares for basic earnings per share (in shares) | 58,092 | 58,865 | 58,971 |
Dilutive effect of non-participating securities (in shares) | 243 | 0 | 0 |
Shares for diluted earnings per share (in shares) | 58,335 | 58,865 | 58,971 |
Earnings per share – basic (in dollars per share) | $ 0.77 | $ 0.33 | $ 0.94 |
Earnings per share – diluted (in dollars per share) | $ 0.76 | $ 0.33 | $ 0.94 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) | 12 Months Ended |
Dec. 31, 2023 shares | |
Earnings Per Share [Abstract] | |
Antidilutive securities excluded from computation of EPS (in shares) | 657,391 |
Restructuring and Other - Restr
Restructuring and Other - Restructuring, Asset Impairment, Other Gains and Charges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Restructuring Activities [Line Items] | |||
Restructuring, asset impairment, other (gains) and charges | $ (2,502) | $ 1,965 | $ 3,621 |
Operating Segments | AMS | |||
Restructuring Activities [Line Items] | |||
Restructuring, asset impairment, other (gains) and charges | 0 | 0 | (1) |
Operating Segments | EAAA | |||
Restructuring Activities [Line Items] | |||
Restructuring, asset impairment, other (gains) and charges | $ (2,502) | $ 1,965 | $ 3,622 |
Restructuring and Other - Summa
Restructuring and Other - Summary of Restructuring Reserve (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Restructuring Reserve [Roll Forward] | ||||
Balance at beginning of year | $ 456 | $ 2,354 | $ 1,064 | |
Restructuring charges | 178 | 1,965 | 3,621 | |
Deductions | (460) | (2,392) | (681) | |
Charged to other accounts | (174) | (1,471) | (1,650) | |
Balance at end of year | 0 | 456 | 2,354 | |
2021 Restructuring Plan | Workforce Reduction | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at beginning of year | 277 | 2,257 | 0 | |
Restructuring charges | 23 | 1 | 2,257 | |
Deductions | (300) | (1,981) | 0 | |
Balance at end of year | 0 | 277 | 2,257 | |
2021 Restructuring Plan | Retention Bonuses | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at beginning of year | 179 | 0 | 0 | |
Restructuring charges | (19) | 493 | 0 | |
Deductions | (160) | (314) | 0 | |
Balance at end of year | 0 | 179 | 0 | |
2021 Restructuring Plan | Asset Impairment and Other Related Charges | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | 174 | 1,471 | 1,650 | |
Charged to other accounts | (174) | (1,471) | (1,650) | |
2019 Restructuring Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | $ 9,000 | |||
2019 Restructuring Plan | Workforce Reduction | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at beginning of year | 0 | 97 | 1,064 | |
Restructuring charges | $ 8,800 | 0 | 0 | (286) |
Deductions | 0 | (97) | (681) | |
Balance at end of year | $ 0 | $ 0 | $ 97 |
Restructuring and Other - Narra
Restructuring and Other - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||
Sep. 08, 2021 | Dec. 23, 2019 USD ($) office | Jul. 02, 2023 USD ($) | Dec. 29, 2019 USD ($) | Dec. 31, 2023 USD ($) | Jan. 01, 2023 USD ($) | Jan. 02, 2022 USD ($) | Jan. 03, 2021 USD ($) | Apr. 03, 2022 USD ($) | |
Restructuring Activities [Line Items] | |||||||||
Gain (loss) on disposal of property, plant and equipment | $ 2,252 | $ (4,319) | $ (4,427) | ||||||
Restructuring, asset impairment, other (gains) and charges | (2,502) | 1,965 | 3,621 | ||||||
Restructuring charges | 178 | 1,965 | 3,621 | ||||||
Operating Segments | AMS | |||||||||
Restructuring Activities [Line Items] | |||||||||
Thailand plant closure inventory write-down | 0 | 0 | 0 | ||||||
Restructuring, asset impairment, other (gains) and charges | 0 | 0 | (1) | ||||||
Operating Segments | EAAA | |||||||||
Restructuring Activities [Line Items] | |||||||||
Thailand plant closure inventory write-down | 0 | 2,530 | 0 | ||||||
Restructuring, asset impairment, other (gains) and charges | (2,502) | 1,965 | 3,622 | ||||||
2021 Restructuring Plan | |||||||||
Restructuring Activities [Line Items] | |||||||||
Number of employees eliminated | 188 | ||||||||
Expected annualized savings from restructuring | 1,700 | ||||||||
2021 Restructuring Plan | Operating Segments | EAAA | |||||||||
Restructuring Activities [Line Items] | |||||||||
Gain (loss) on disposal of property, plant and equipment | $ 2,700 | ||||||||
Cumulative charges incurred to date | 6,050 | ||||||||
2021 Restructuring Plan | Operating Segments | EAAA | Cost of Sales | |||||||||
Restructuring Activities [Line Items] | |||||||||
Thailand plant closure inventory write-down | 2,500 | ||||||||
2021 Restructuring Plan | Employee Severance | |||||||||
Restructuring Activities [Line Items] | |||||||||
Restructuring charges | 23 | 1 | 2,257 | ||||||
2021 Restructuring Plan | Employee Severance | Operating Segments | EAAA | |||||||||
Restructuring Activities [Line Items] | |||||||||
Cumulative charges incurred to date | 2,281 | ||||||||
2019 Restructuring Plan | |||||||||
Restructuring Activities [Line Items] | |||||||||
Number of employees eliminated | 105 | ||||||||
Cash expenditures for restructuring | $ 9,000 | ||||||||
Expected annualized savings from restructuring | $ 6,000 | ||||||||
Number of offices | office | 2 | ||||||||
Restructuring charges | $ 9,000 | ||||||||
2019 Restructuring Plan | Operating Segments | AMS | |||||||||
Restructuring Activities [Line Items] | |||||||||
Restructuring charges | 1,100 | ||||||||
Cumulative charges incurred to date | $ 800 | ||||||||
2019 Restructuring Plan | Operating Segments | EAAA | |||||||||
Restructuring Activities [Line Items] | |||||||||
Restructuring charges | 7,900 | ||||||||
Cumulative charges incurred to date | $ 4,200 | ||||||||
2019 Restructuring Plan | Employee Severance | |||||||||
Restructuring Activities [Line Items] | |||||||||
Restructuring charges | 8,800 | $ 0 | $ 0 | (286) | |||||
Adjustment to previously recorded severance expense | $ (300) | $ (3,700) | |||||||
2019 Restructuring Plan | Lease Exit Costs | |||||||||
Restructuring Activities [Line Items] | |||||||||
Restructuring charges | $ 200 |
Restructuring and Other - Expec
Restructuring and Other - Expected and Cumulative Charges (Details) - 2021 Restructuring Plan - Operating Segments - EAAA $ in Thousands | Dec. 31, 2023 USD ($) |
Restructuring Activities [Line Items] | |
Estimated expected charges | $ 6,050 |
Cumulative charges incurred to date | 6,050 |
Workforce Reduction | |
Restructuring Activities [Line Items] | |
Estimated expected charges | 2,281 |
Cumulative charges incurred to date | 2,281 |
Retention Bonuses | |
Restructuring Activities [Line Items] | |
Estimated expected charges | 474 |
Cumulative charges incurred to date | 474 |
Asset Impairment and Other Related Charges | |
Restructuring Activities [Line Items] | |
Estimated expected charges | 3,295 |
Cumulative charges incurred to date | $ 3,295 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 | |
Income Tax Disclosure [Line Items] | ||||
Effective income tax rate (percentage) | 30.10% | 53.30% | 24% | |
Federal statutory income tax rate (percentage) | 21% | 21% | 21% | |
Inflation Reduction Act, minimum tax rate (percentage) | 15% | |||
Inflation Reduction Act, adjusted financial statement income (AFSI) threshold | $ 1,000,000 | |||
Inflation Reduction Act, excise tax rate on share repurchases (percentage) | 1% | |||
Pillar Two, minimum tax rate (percentage) | 15% | |||
Expiring tax attributes | $ 3,780 | $ 0 | $ 0 | |
Reduction of deferred tax asset for unrecognized tax benefits | 2,800 | 2,800 | ||
Unrecognized tax benefits | 4,948 | 5,743 | 8,220 | $ 10,799 |
Previously unrecognized tax benefits recognized as income tax benefits | (79) | $ (2,463) | $ (2,663) | |
Unrecognized tax benefits that would impact effective tax rate | 4,900 | |||
Unrecognized tax benefits, cash required if unfavorably settled | 2,100 | |||
Unrecognized tax benefit, accrued interest and penalties | 400 | |||
Foreign Tax Authority | ||||
Income Tax Disclosure [Line Items] | ||||
Tax credit carryforward | 7,900 | |||
Tax credit carryforward, valuation allowance | 7,900 | |||
State and Local Jurisdiction | Continuing Operations | ||||
Income Tax Disclosure [Line Items] | ||||
Net operating loss carryforwards | 192,100 | |||
Net operating loss carryforwards, valuation allowance | 129,600 | |||
State and Local Jurisdiction | Discontinued Operations | ||||
Income Tax Disclosure [Line Items] | ||||
Net operating loss carryforwards | 15,600 | |||
Net operating loss carryforwards, valuation allowance | $ 15,600 |
Income Taxes - Income Before In
Income Taxes - Income Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Income Tax Disclosure [Abstract] | |||
U.S. operations | $ 3,611 | $ 11,758 | $ 4,460 |
Foreign operations | 60,043 | 30,159 | 68,173 |
Income before income tax expense | $ 63,654 | $ 41,917 | $ 72,633 |
Income Taxes - Provisions for F
Income Taxes - Provisions for Federal, Foreign and State Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Current expense: | |||
Federal | $ 5,523 | $ 1,624 | $ 1,987 |
Foreign | 18,330 | 20,903 | 21,372 |
State | 2,167 | 1,307 | 1,418 |
Current expense | 26,020 | 23,834 | 24,777 |
Deferred (benefit) expense: | |||
Federal | (4,810) | 346 | (2,841) |
Foreign | (1,212) | (2,053) | (3,846) |
State | (861) | 230 | (691) |
Deferred benefit | (6,883) | (1,477) | (7,378) |
Total income tax expense | $ 19,137 | $ 22,357 | $ 17,399 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Income Tax Disclosure [Abstract] | |||
Income taxes at U.S. federal statutory rate | $ 13,367 | $ 8,803 | $ 15,253 |
State income taxes, net of federal tax effect | (432) | 817 | (87) |
Non-deductible business expenses | 747 | 237 | 330 |
Non-deductible employee compensation | 1,681 | 1,678 | 1,213 |
Tax effects of Company-owned life insurance | (587) | 612 | (762) |
Tax effects of undistributed earnings from foreign subsidiaries not deemed to be indefinitely reinvested | 779 | 1,123 | 1,219 |
Foreign and U.S. tax effects attributable to foreign operations | 1,537 | 3,528 | 1,748 |
Expiring tax attributes | 3,780 | 0 | 0 |
Valuation allowance effect | (879) | 2,898 | 1,349 |
Research and development tax credits | (820) | (917) | (793) |
Goodwill impairment | 0 | 6,171 | 0 |
Unrecognized tax benefits | (79) | (2,463) | (2,663) |
Other | 43 | (130) | 592 |
Total income tax expense | $ 19,137 | $ 22,357 | $ 17,399 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 |
Deferred tax assets | ||
Lease liability | $ 25,164 | $ 23,649 |
Net operating loss and interest carryforwards | 9,587 | 7,616 |
Federal tax credit carryforwards | 7,876 | 10,904 |
Derivative instruments | 0 | 295 |
Deferred compensation | 16,517 | 16,577 |
Inventory | 3,041 | 3,521 |
Prepaids, accruals and reserves | 8,147 | 6,947 |
Capitalized costs | 9,442 | 7,467 |
Other | 0 | 58 |
Deferred tax asset, gross | 79,774 | 77,034 |
Valuation allowance | (17,357) | (18,236) |
Deferred tax asset, net | 62,417 | 58,798 |
Deferred tax liabilities | ||
Property and equipment | 24,662 | 25,319 |
Intangible assets | 24,411 | 25,533 |
Lease asset | 23,868 | 22,811 |
Pensions | 5 | 4,284 |
Foreign currency | 686 | 600 |
Foreign withholding and U.S. state taxes on unremitted earnings | 725 | 1,146 |
Other | 171 | 0 |
Deferred tax liabilities | 74,528 | 79,693 |
Net deferred tax liabilities | $ 12,111 | $ 20,895 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Reconciliation of Unrecognized Tax Benefits | |||
Balance at beginning of year | $ 5,743 | $ 8,220 | $ 10,799 |
Increases related to tax positions taken during the current year | 320 | 342 | 265 |
Increases related to tax positions taken during the prior years | 140 | 204 | 198 |
Decreases related to tax positions taken during the prior years | (54) | (447) | 0 |
Decreases related to lapse of applicable statute of limitations | (1,218) | (2,574) | (2,309) |
Changes due to settlements | 0 | 0 | (836) |
Changes due to foreign currency translation | (2) | ||
Changes due to foreign currency translation | 17 | 103 | |
Balance at end of year | $ 4,948 | $ 5,743 | $ 8,220 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 14, 2020 | Dec. 31, 2023 | |
Loss Contingencies [Line Items] | ||
Putative class action lawsuit settlement | $ 7.5 | |
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 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) Year | Jan. 01, 2023 USD ($) | Jan. 02, 2022 USD ($) | |
Employee Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan eligibility period (in months) | 6 months | ||
Multiemployer contributions, percentage of total plan contributions, less than (percentage) | 5% | ||
Multiemployer plan, employer contribution | $ 2,700,000 | $ 2,400,000 | $ 2,600,000 |
Multiemployer plan funded status (percentage) | 85% | ||
Defined benefit plan, accumulated other comprehensive (income) loss | $ 34,016,000 | $ 27,548,000 | |
Weighted average discount rate for level 3 plan assets, foreign plans (percentage) | 3.32% | 3.72% | |
Minimum | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Unobservable input for level 3 plan assets, foreign plans (percentage) | 3.30% | 3.70% | |
Maximum | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Unobservable input for level 3 plan assets, foreign plans (percentage) | 4.50% | 4.75% | |
401(k) Plan | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Employer matching contribution | $ 3,400,000 | $ 3,300,000 | 3,000,000 |
Employer discretionary contribution | 0 | 0 | 0 |
Foreign Plan | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Liability, defined benefit pension plan | 5,700,000 | ||
Pension expense | 1,300,000 | 2,000,000 | $ 2,500,000 |
Defined benefit plan, funded status benefit assets (liability) | (15,080,000) | (7,955,000) | |
Defined benefit plan, accumulated other comprehensive (income) loss | 29,918,000 | 23,737,000 | |
Defined benefit plan, accumulated other comprehensive income (loss), tax | 8,100,000 | ||
Defined benefit plan, expected amortization, next fiscal year | $ 1,300,000 | ||
Number of defined benefit plans | 3 | ||
Defined benefit plan, benefit obligation, period increase (decrease) | $ 19,000,000 | ||
Defined benefit plan, other comprehensive (income) loss | 6,300,000 | ||
Defined benefit plan, other comprehensive (income) loss, tax | 2,100,000 | ||
Defined benefit plan, other comprehensive income (loss), actuarial gain (loss) | (6,600,000) | ||
Defined benefit plan, other comprehensive income (loss), actuarial gain (loss), tax | (2,300,000) | ||
Defined benefit plan, other comprehensive income (loss), amortization of loss | 300,000 | ||
Defined benefit plan, other comprehensive income (loss), amortization of loss, tax | 200,000 | ||
Defined benefit plan, expected future contributions | 2,700,000 | ||
Accumulated benefit obligation | 214,428,000 | 195,440,000 | |
Company contributions | 2,497,000 | 4,001,000 | |
United States | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, other comprehensive (income) loss | 400,000 | ||
Defined benefit plan, other comprehensive (income) loss, tax | 100,000 | ||
Defined benefit plan, other comprehensive income (loss), actuarial gain (loss) | (500,000) | ||
Defined benefit plan, other comprehensive income (loss), actuarial gain (loss), tax | (200,000) | ||
Defined benefit plan, other comprehensive income (loss), amortization of loss | 100,000 | ||
Defined benefit plan, other comprehensive income (loss), amortization of loss, tax | $ 100,000 | ||
Normal retirement age (in years) | Year | 65 | ||
Early retirement age (in years) | Year | 55 | ||
Minimum period of service for entitlement in plan (in years) | 15 years | ||
Minimum period under death benefit feature (in years) | 10 years | ||
Maximum period for death benefits payable to designated beneficiary (in years) | 10 years | ||
Accumulated benefit obligation | $ 22,700,000 | 22,700,000 | |
Company contributions | 1,900,000 | ||
Nonqualified Savings Plans | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Deferred compensation liability | 28,200,000 | 27,500,000 | |
Deferred compensation investments | 28,417,000 | 27,610,000 | |
Nonqualified Savings Plans | Mutual Funds | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Deferred compensation investments | 9,200,000 | 11,000,000 | |
Nonqualified Savings Plans | Insurance Contracts | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Deferred compensation investments | $ 19,200,000 | $ 16,600,000 |
Employee Benefit Plans - Funded
Employee Benefit Plans - Funded Status of Defined Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Amounts recognized in accumulated other comprehensive loss, after tax: | |||
Total amount recognized, end of year | $ 34,016 | $ 27,548 | |
Foreign Plan | |||
Change in benefit obligation: | |||
Benefit obligation, beginning of year | 195,440 | 324,408 | |
Service cost | 458 | 840 | $ 1,087 |
Interest cost | 8,169 | 3,793 | 2,687 |
Benefits and expenses paid | (10,832) | (9,890) | |
Actuarial loss (gain) | 12,760 | (96,556) | |
Currency translation adjustment | 8,433 | (27,155) | |
Benefit obligation, end of year | 214,428 | 195,440 | 324,408 |
Change in plan assets: | |||
Plan assets, beginning of year | 187,485 | 285,600 | |
Actual return on assets | 11,596 | (66,759) | |
Company contributions | 2,497 | 4,001 | |
Benefits paid | (10,832) | (9,890) | |
Currency translation adjustment | 8,602 | (25,467) | |
Plan assets, end of year | 199,348 | 187,485 | 285,600 |
Amounts recognized in consolidated balance sheets: | |||
Other assets | 25,235 | 26,586 | |
Current liabilities | (1,182) | (1,032) | |
Non-current liabilities | (39,133) | (33,509) | |
Funded status | (15,080) | (7,955) | |
Amounts recognized in accumulated other comprehensive loss, after tax: | |||
Unrecognized actuarial loss | 29,918 | 23,737 | |
Total amount recognized, end of year | 29,918 | 23,737 | |
Accumulated benefit obligation | 214,428 | 195,440 | |
Projected benefit obligation | 214,428 | 195,440 | 324,408 |
Plan assets | 25,235 | 26,586 | |
UK Plan | |||
Change in benefit obligation: | |||
Benefit obligation, beginning of year | 98,730 | ||
Benefit obligation, end of year | 108,424 | 98,730 | |
Amounts recognized in consolidated balance sheets: | |||
Other assets | 133,658 | 125,315 | |
Amounts recognized in accumulated other comprehensive loss, after tax: | |||
Accumulated benefit obligation | 108,424 | 98,730 | |
Projected benefit obligation | 108,424 | 98,730 | |
Plan assets | 133,658 | 125,315 | |
Dutch Plan | |||
Change in benefit obligation: | |||
Benefit obligation, beginning of year | 67,689 | ||
Benefit obligation, end of year | 71,422 | 67,689 | |
Amounts recognized in consolidated balance sheets: | |||
Other assets | 65,690 | 62,170 | |
Amounts recognized in accumulated other comprehensive loss, after tax: | |||
Accumulated benefit obligation | 71,422 | 67,689 | |
Projected benefit obligation | 71,422 | 67,689 | |
Plan assets | 65,690 | 62,170 | |
nora Plan | |||
Change in benefit obligation: | |||
Benefit obligation, beginning of year | 29,021 | ||
Benefit obligation, end of year | 34,582 | 29,021 | |
Amounts recognized in consolidated balance sheets: | |||
Other assets | 0 | 0 | |
Amounts recognized in accumulated other comprehensive loss, after tax: | |||
Accumulated benefit obligation | 34,582 | 29,021 | |
Projected benefit obligation | 34,582 | 29,021 | |
Plan assets | 0 | 0 | |
United States | |||
Change in benefit obligation: | |||
Benefit obligation, beginning of year | 22,731 | 30,053 | |
Interest cost | 1,134 | 771 | 706 |
Benefits and expenses paid | (1,873) | (1,873) | |
Actuarial loss (gain) | 667 | (6,220) | |
Benefit obligation, end of year | 22,659 | 22,731 | 30,053 |
Change in plan assets: | |||
Company contributions | 1,900 | ||
Amounts recognized in consolidated balance sheets: | |||
Current liabilities | (1,873) | (1,873) | |
Non-current liabilities | (20,786) | (20,858) | |
Amounts recognized in accumulated other comprehensive loss, after tax: | |||
Unrecognized actuarial loss | 4,098 | 3,811 | |
Accumulated benefit obligation | 22,700 | 22,700 | |
Projected benefit obligation | $ 22,659 | $ 22,731 | $ 30,053 |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Net Periodic Benefit Cost (Details) - Foreign Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Employee Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 458 | $ 840 | $ 1,087 |
Interest cost | 8,169 | 3,793 | 2,687 |
Expected return on plan assets | (7,933) | (3,957) | (3,312) |
Amortization of prior service cost | 137 | 117 | 114 |
Amortization of net actuarial losses | 468 | 1,201 | 1,968 |
Net periodic benefit cost | $ 1,299 | $ 1,994 | $ 2,544 |
Employee Benefit Plans - Assump
Employee Benefit Plans - Assumptions Used to Determine Net Periodic (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Foreign Plan | |||
Weighted average assumptions used to determine net periodic benefit cost: | |||
Discount rate (percentage) | 4.10% | 1.40% | 0.90% |
Expected return on plan assets (percentage) | 4.60% | 3% | 1.50% |
Weighted average assumptions used to determine benefit obligations: | |||
Discount rate (percentage) | 4.10% | 4.40% | 1.60% |
Components of net periodic benefit cost: | |||
Interest cost | $ 8,169 | $ 3,793 | $ 2,687 |
Amortizations | 468 | 1,201 | 1,968 |
Net periodic benefit cost | $ 1,299 | $ 1,994 | $ 2,544 |
United States | |||
Weighted average assumptions used to determine net periodic benefit cost: | |||
Discount rate (percentage) | 5.20% | 2.65% | 2.15% |
Weighted average assumptions used to determine benefit obligations: | |||
Discount rate (percentage) | 4.90% | 5.20% | 2.65% |
Components of net periodic benefit cost: | |||
Interest cost | $ 1,134 | $ 771 | $ 706 |
Amortizations | 195 | 557 | 743 |
Net periodic benefit cost | $ 1,329 | $ 1,328 | $ 1,449 |
Employee Benefit Plans - Assets
Employee Benefit Plans - Assets at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 |
Foreign Plan | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Target allocation (percentage) | 100% | ||
Plan assets at year end (percentage) | 100% | 100% | |
Plan assets, fair value | $ 199,348 | $ 187,485 | $ 285,600 |
Foreign Plan | Level 1 | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 16,232 | 44,335 | |
Foreign Plan | Level 2 | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 92,200 | 53,286 | |
Foreign Plan | Level 3 | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | $ 90,916 | $ 89,864 | $ 121,126 |
Foreign Plan | Equity Securities | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets at year end (percentage) | 0% | 0% | |
Foreign Plan | Equity Securities | Minimum | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Target allocation (percentage) | 0% | ||
Foreign Plan | Equity Securities | Maximum | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Target allocation (percentage) | 0% | ||
Foreign Plan | Debt and Debt Securities | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets at year end (percentage) | 59% | 53% | |
Foreign Plan | Debt and Debt Securities | Minimum | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Target allocation (percentage) | 65% | ||
Foreign Plan | Debt and Debt Securities | Maximum | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Target allocation (percentage) | 70% | ||
Foreign Plan | Debt and Debt Securities | Level 1 | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | $ 0 | $ 19,614 | |
Foreign Plan | Debt and Debt Securities | Level 2 | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 92,200 | 53,286 | |
Foreign Plan | Debt and Debt Securities | Level 3 | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | $ 24,325 | $ 26,778 | |
Foreign Plan | Short-Term Investments | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets at year end (percentage) | 8% | 13% | |
Foreign Plan | Short-Term Investments | Minimum | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Target allocation (percentage) | 0% | ||
Foreign Plan | Short-Term Investments | Maximum | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Target allocation (percentage) | 2% | ||
Foreign Plan | Short-Term Investments | Level 1 | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | $ 16,232 | $ 24,721 | |
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% | 34% | |
Foreign Plan | Other Investments | Minimum | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Target allocation (percentage) | 30% | ||
Foreign Plan | Other Investments | Maximum | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Target allocation (percentage) | 35% | ||
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 | 66,591 | 63,086 | |
Pension Plan | Foreign Plan | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 199,348 | 187,485 | |
Pension Plan | Foreign Plan | Level 1 | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 16,232 | 44,335 | |
Pension Plan | Foreign Plan | Level 2 | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 92,200 | 53,286 | |
Pension Plan | Foreign Plan | Level 3 | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 90,916 | 89,864 | |
Pension Plan | Netherlands | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 65,690 | 62,170 | |
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 | 65,690 | 62,170 | |
Pension Plan | United Kingdom | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 133,658 | 125,315 | |
Pension Plan | United Kingdom | Level 1 | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 16,232 | 44,335 | |
Pension Plan | United Kingdom | Level 2 | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 92,200 | 53,286 | |
Pension Plan | United Kingdom | Level 3 | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | $ 25,226 | $ 27,694 |
Employee Benefit Plans - Change
Employee Benefit Plans - Change in Values Related to Level 3 Assets (Details) - Foreign Plan - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Jan. 01, 2023 | |
Change in plan assets: | ||
Plan assets, beginning of year | $ 187,485 | $ 285,600 |
Actual return on plan assets | 11,596 | (66,759) |
Currency translation adjustment | 8,602 | (25,467) |
Plan assets, end of year | 199,348 | 187,485 |
Level 3 | ||
Change in plan assets: | ||
Plan assets, beginning of year | 89,864 | 121,126 |
Actual return on plan assets | 3,429 | (21,968) |
Purchases, sales and settlements, net | (5,734) | 389 |
Assets transferred from level 3 | 0 | (710) |
Currency translation adjustment | 3,357 | (8,973) |
Plan assets, end of year | 90,916 | 89,864 |
Unrealized gains (losses) recognized in other comprehensive income (loss) for level 3 plan assets held at year end | $ 2,700 | $ (22,200) |
Employee Benefit Plans - Future
Employee Benefit Plans - Future Benefit Payments (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Foreign Plan | |
Employee Benefit Plan Disclosure [Line Items] | |
2024 | $ 11,145 |
2025 | 11,214 |
2026 | 11,360 |
2027 | 11,484 |
2028 | 11,782 |
2029-2033 | 59,800 |
United States | |
Employee Benefit Plan Disclosure [Line Items] | |
2024 | 1,873 |
2025 | 1,873 |
2026 | 1,873 |
2027 | 1,873 |
2028 | 1,851 |
2029-2033 | $ 8,670 |
Employee Benefit Plans - Amount
Employee Benefit Plans - Amounts Recognized In Consolidated Balance Sheets and Accumulated Other Comprehensive Loss (Details) - United States - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 |
Employee Benefit Plan Disclosure [Line Items] | ||
Current liabilities | $ 1,873 | $ 1,873 |
Non-current liabilities | 20,786 | 20,858 |
Total benefit obligation | 22,659 | 22,731 |
Unrecognized actuarial loss | $ 4,098 | $ 3,811 |
Segment Information - Narrative
Segment Information - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) customers | Jan. 01, 2023 USD ($) customers | Jan. 02, 2022 USD ($) customers | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | 2 | ||
Number of reportable segments | 2 | ||
Intersegment revenues | $ | $ 82.8 | $ 75.5 | $ 78.1 |
Customer Concentration Risk | Net Sales | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, number of unaffiliated customers above threshold | customers | 0 | 0 | 0 |
Concentration risk, percentage threshold for disclosure | 10% | 10% | 10% |
Geographic Concentration Risk | Net Sales | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage threshold for disclosure | 10% | 10% | 10% |
Geographic Concentration Risk | Net Sales | Foreign Countries | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage of net sales | 46% | 47% | 50% |
Segment Information - Operating
Segment Information - Operating Segments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 1,261,498 | $ 1,297,919 | $ 1,200,398 |
Depreciation and amortization | 40,774 | 40,337 | 46,345 |
Operating Segments | AMS | |||
Segment Reporting Information [Line Items] | |||
Net sales | 736,955 | 753,740 | 651,216 |
AOI | 87,789 | 102,370 | 85,014 |
Depreciation and amortization | 17,989 | 16,827 | 17,963 |
Operating Segments | EAAA | |||
Segment Reporting Information [Line Items] | |||
Net sales | 524,543 | 544,179 | 549,182 |
AOI | 28,608 | 30,058 | 37,268 |
Depreciation and amortization | $ 22,785 | $ 23,510 | $ 28,382 |
Segment Information - Reconcili
Segment Information - Reconciliation of Segment Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 1,230,095 | $ 1,266,503 |
Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 1,258,721 | 1,241,031 |
Operating Segments | AMS | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 627,782 | 588,110 |
Operating Segments | EAAA | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 630,939 | 652,921 |
Corporate, Non-Segment | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 108,673 | 110,495 |
Eliminations | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ (137,299) | $ (85,023) |
Segment Information - Reconci_2
Segment Information - Reconciliation of Segment AOI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Segment Reporting, Reconciling Item for Operating Income (Loss) from Segment to Consolidated [Line Items] | |||
Operating income (loss) | $ 104,522 | $ 75,398 | $ 104,797 |
Interest expense | 31,787 | 29,929 | 29,681 |
Other expense, net | 9,081 | 3,552 | 2,483 |
Income before income tax expense | 63,654 | 41,917 | 72,633 |
Purchase accounting amortization | 5,172 | 5,038 | 5,636 |
Goodwill and intangible asset impairment charge | 0 | 36,180 | 0 |
Operating Segments | AMS | |||
Segment Reporting, Reconciling Item for Operating Income (Loss) from Segment to Consolidated [Line Items] | |||
Operating income (loss) | 85,035 | 92,234 | 81,445 |
Purchase accounting amortization | 0 | 0 | 0 |
Thailand plant closure inventory write-down | 0 | 0 | 0 |
Cyber Event impact | 616 | 3,878 | 0 |
Goodwill and intangible asset impairment charge | 0 | 3,838 | 0 |
Restructuring, asset impairment, severance, and other, net | 2,138 | 2,420 | 3,569 |
AOI | 87,789 | 102,370 | 85,014 |
Operating Segments | EAAA | |||
Segment Reporting, Reconciling Item for Operating Income (Loss) from Segment to Consolidated [Line Items] | |||
Operating income (loss) | 19,487 | (16,836) | 23,352 |
Purchase accounting amortization | 5,172 | 5,038 | 5,636 |
Thailand plant closure inventory write-down | 0 | 2,530 | 0 |
Cyber Event impact | 456 | 1,215 | 0 |
Goodwill and intangible asset impairment charge | 0 | 32,342 | 0 |
Restructuring, asset impairment, severance, and other, net | 3,493 | 5,769 | 8,280 |
AOI | $ 28,608 | $ 30,058 | $ 37,268 |
Segment Information - Operati_2
Segment Information - Operating Lease Right-of-Use Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 |
Segment Reporting Information [Line Items] | ||
Operating lease right-of-use assets | $ 87,519 | $ 81,644 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Operating lease right-of-use assets | 77,812 | 72,395 |
Operating Segments | AMS | ||
Segment Reporting Information [Line Items] | ||
Operating lease right-of-use assets | 23,149 | 14,140 |
Operating Segments | EAAA | ||
Segment Reporting Information [Line Items] | ||
Operating lease right-of-use assets | 54,663 | 58,255 |
Corporate, Non-Segment | ||
Segment Reporting Information [Line Items] | ||
Operating lease right-of-use assets | $ 9,707 | $ 9,249 |
Segment Information - Revenue a
Segment Information - Revenue and Long-Lived Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 1,261,498 | $ 1,297,919 | $ 1,200,398 |
Long-lived assets | 291,140 | 297,976 | |
Finance lease, right-of-use asset, net | $ 7,236 | $ 5,845 | |
Geographic Concentration Risk | Net Sales | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage threshold for disclosure | 10% | 10% | 10% |
Geographic Concentration Risk | Long-Lived Assets | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage threshold for disclosure | 10% | 10% | 10% |
United States | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ 677,342 | $ 694,299 | $ 596,844 |
Long-lived assets | 146,106 | 146,210 | |
Finance lease, right-of-use asset, net | 2,200 | 1,300 | |
Foreign Countries | |||
Segment Reporting Information [Line Items] | |||
Net sales | 584,156 | 603,620 | $ 603,554 |
Finance lease, right-of-use asset, net | 5,000 | 4,500 | |
Germany | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 66,740 | 64,182 | |
Netherlands | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 40,455 | 42,422 | |
Foreign Countries Other Than United States, Germany and Netherlands | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | $ 37,839 | 45,162 | |
Australia | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | $ 29,900 |
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 | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Equity [Abstract] | |||
Loss on foreign subsidiary liquidation | $ (6,221) | $ 0 | $ 0 |
Interest rate swap contracts loss | $ (982) | $ (2,809) | $ (4,861) |
Discontinued cash flow hedge, reclassification out of accumulated other comprehensive loss, consolidated statement of operations location | Interest expense | Interest expense | Interest expense |
Amortization of benefit plan net actuarial losses and prior service cost | $ (800) | $ (1,875) | $ (2,825) |
Total loss reclassified from accumulated other comprehensive loss | (8,003) | (4,684) | (7,686) |
Loss on foreign subsidiary liquidation, tax | (1,100) | ||
Interest rate swap contracts loss, tax | $ (200) | $ (800) | $ (1,400) |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts and Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Allowance for Expected Credit Losses | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | $ 3,952 | $ 4,960 | $ 6,643 |
Charged to costs and expenses | (527) | (357) | (705) |
Charged to other accounts | 0 | 0 | 0 |
Deductions | 472 | 651 | 978 |
Balance at end of year | 2,953 | 3,952 | 4,960 |
Warranty and Sales Allowances Reserves | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 2,091 | 2,702 | 3,248 |
Charged to costs and expenses | 3,624 | (41) | 366 |
Charged to other accounts | 0 | 0 | 0 |
Deductions | 1,413 | 570 | 912 |
Balance at end of year | $ 4,302 | $ 2,091 | $ 2,702 |