Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Apr. 03, 2016 | May. 05, 2016 | |
Entity Registrant Name | INTERFACE INC | |
Entity Central Index Key | 715,787 | |
Trading Symbol | tile | |
Current Fiscal Year End Date | --01-01 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Common Stock, Shares Outstanding (in shares) | 65,472,473 | |
Document Type | 10-Q | |
Document Period End Date | Apr. 3, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets (Current Period Unaudited) - USD ($) | Apr. 03, 2016 | Jan. 03, 2016 |
CURRENT ASSETS: | ||
Cash and Cash Equivalents | $ 83,212,000 | $ 75,696,000 |
Accounts Receivable, net | 118,698,000 | 130,322,000 |
Inventories | 173,601,000 | 161,174,000 |
Prepaid Expenses and Other Current Assets | 22,461,000 | 22,490,000 |
Deferred Income Taxes | 8,627,000 | 8,726,000 |
TOTAL CURRENT ASSETS | 406,599,000 | 398,408,000 |
PROPERTY AND EQUIPMENT, less accumulated depreciation | 212,893,000 | 211,489,000 |
DEFERRED TAX ASSET | 16,906,000 | 20,110,000 |
GOODWILL | 65,971,000 | 63,890,000 |
OTHER ASSETS | 64,103,000 | 62,652,000 |
TOTAL ASSETS | 766,472,000 | 756,549,000 |
CURRENT LIABILITIES: | ||
Accounts Payable | 45,839,000 | 52,834,000 |
Current Portion of Long-Term Debt | 12,500,000 | 11,250,000 |
Accrued Expenses | 70,837,000 | 88,933,000 |
TOTAL CURRENT LIABILITIES | 129,176,000 | 153,017,000 |
LONG-TERM DEBT | 220,112,000 | 202,281,000 |
DEFERRED INCOME TAXES | 10,060,000 | 10,505,000 |
OTHER | 47,775,000 | 48,380,000 |
TOTAL LIABILITIES | $ 407,123,000 | $ 414,183,000 |
Commitments and Contingencies | ||
SHAREHOLDERS’ EQUITY: | ||
Preferred Stock | $ 0 | $ 0 |
Common Stock | 6,546,000 | 6,570,000 |
Additional Paid-In Capital | 367,726,000 | 370,327,000 |
Retained Earnings | 109,891,000 | 100,270,000 |
Accumulated Other Comprehensive Income (Loss) – Foreign Currency Translation Adjustment | (82,132,000) | (91,511,000) |
Accumulated Other Comprehensive Income (Loss) – Pension Liability | (42,682,000) | (43,290,000) |
TOTAL SHAREHOLDERS’ EQUITY | 359,349,000 | 342,366,000 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 766,472,000 | $ 756,549,000 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Operations (Unaudited) - USD ($) shares in Thousands | 3 Months Ended | |
Apr. 03, 2016 | Apr. 05, 2015 | |
NET SALES | $ 222,554,000 | $ 236,904,000 |
Cost of Sales | 135,922,000 | 151,472,000 |
GROSS PROFIT ON SALES | 86,632,000 | 85,432,000 |
Selling, General and Administrative Expenses | 65,605,000 | 64,032,000 |
OPERATING INCOME | 21,027,000 | 21,400,000 |
Interest Expense | 1,519,000 | 1,888,000 |
Other Expense | 449,000 | 1,272,000 |
INCOME BEFORE INCOME TAX EXPENSE | 19,059,000 | 18,240,000 |
Income Tax Expense | 6,165,000 | 5,918,000 |
Net Income | $ 12,894,000 | $ 12,322,000 |
Earnings Per Share – Basic (in dollars per share) | $ 0.20 | $ 0.19 |
Earnings Per Share – Diluted (in dollars per share) | $ 0.20 | $ 0.19 |
Common Shares Outstanding – Basic (in shares) | 65,685 | 66,420 |
Common Shares Outstanding – Diluted (in shares) | 65,723 | 66,471 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | |
Apr. 03, 2016 | Apr. 05, 2015 | |
Net income | $ 12,894,000 | $ 12,322,000 |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment | 9,379,000 | (25,299,000) |
Other Comprehensive Income, Pension Liability Adjustment | 608,000 | 3,202,000 |
Comprehensive Income (Loss) | $ 22,881,000 | $ (9,775,000) |
Consolidated Condensed Stateme5
Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Apr. 03, 2016 | Apr. 05, 2015 | |
OPERATING ACTIVITIES: | ||
Net income | $ 12,894,000 | $ 12,322,000 |
Adjustments to reconcile income to cash provided by (used in) operating activities: | ||
Depreciation and amortization | 7,517,000 | 7,789,000 |
Stock compensation amortization expense | 1,258,000 | 4,472,000 |
Deferred income taxes and other | 1,946,000 | 4,399,000 |
Working capital changes: | ||
Accounts receivable | 13,242,000 | 29,901,000 |
Inventories | (9,387,000) | (22,391,000) |
Prepaid expenses and current assets | (63,000) | (5,029,000) |
Accounts payable and accrued expenses | (31,703,000) | (9,374,000) |
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | (4,296,000) | 22,089,000 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (4,461,000) | (4,574,000) |
Other | (270,000) | 38,000 |
CASH USED IN INVESTING ACTIVITIES | (4,731,000) | (4,536,000) |
FINANCING ACTIVITIES: | ||
Repayments of long-term debt | 0 | (3,000,000) |
Borrowing of long-term debt | 17,667,000 | 0 |
Proceeds from issuance of common stock | 0 | 157,000 |
Dividends paid | (3,273,000) | (2,656,000) |
Repurchase of common stock | (75,000) | (4,857,000) |
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES: | 14,319,000 | (10,356,000) |
Net cash provided by operating, investing and financing activities | 5,292,000 | 7,197,000 |
Effect of exchange rate changes on cash | 2,224,000 | (3,091,000) |
CASH AND CASH EQUIVALENTS: | ||
Net change during the period | 7,516,000 | 4,106,000 |
Balance at beginning of period | 75,696,000 | 54,896,000 |
Balance at end of period | $ 83,212,000 | $ 59,002,000 |
Note 1 - Condensed Footnotes
Note 1 - Condensed Footnotes | 3 Months Ended |
Apr. 03, 2016 | |
Notes to Financial Statements | |
Condensed Footnotes [Text Block] | NOTE 1 – CONDENSED FOOTNOTES As contemplated by the Securities and Exchange Commission (the “Commission”) instructions to Form 10-Q, the following footnotes have been condensed and, therefore, do not contain all disclosures required in connection with annual financial statements. Reference should be made to the Company’s year-end financial statements and notes thereto contained in its Annual Report on Form 10-K for the fiscal year ended January 3, 2016, as filed with the Commission. The financial information included in this report has been prepared by the Company, without audit. In the opinion of management, the financial information included in this report contains all adjustments (all of which are normal and recurring) necessary for a fair presentation of the results for the interim periods. Nevertheless, the results shown for interim periods are not necessarily indicative of results to be expected for the full year. The January 3, 2016 consolidated condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States. The first quarter of 2016 was comprised of 13 weeks, while the first quarter of 2015 was comprised of 14 weeks. Certain prior period amounts have been reclassified to conform to the current period presentation. |
Note 2 - Inventories
Note 2 - Inventories | 3 Months Ended |
Apr. 03, 2016 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | NOTE 2 – INVENTORIES Inventories are summarized as follows: April 3, 2016 January 3, 2016 (In thousands) Finished Goods $ 113,897 $ 101,697 Work in Process 9,454 9,865 Raw Materials 50,250 49,612 $ 173,601 $ 161,174 |
Note 3 - Earnings Per Share
Note 3 - Earnings Per Share | 3 Months Ended |
Apr. 03, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE 3 – EARNINGS PER SHARE The Company computes basic earnings per share (“EPS”) by dividing net income by the weighted average common shares outstanding, including participating securities outstanding, during the period as discussed below. Diluted EPS reflects the potential dilution beyond shares for basic EPS that could occur if securities or other contracts to issue common stock were exercised, converted into common stock or resulted in the issuance of common stock that would have shared in the Company’s earnings. The Company includes all unvested stock awards which contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid, in the number of shares outstanding in our basic and diluted EPS calculations when the inclusion of these shares would be dilutive. Unvested share-based awards of restricted stock are paid dividends equally with all other shares of common stock. As a result, the Company includes all outstanding restricted stock awards in the calculation of basic and diluted EPS when the Company is in an income position. Awards of performance shares are not included in basic or diluted EPS until the underlying performance condition has been satisfied. Distributed earnings include common stock dividends and dividends earned on unvested share-based payment awards. Undistributed earnings represent earnings that were available for distribution but were not distributed. The following tables show distributed and undistributed earnings: Three Months Ended April 3, 2016 April 5, 2015 Earnings Per Share : Basic Earnings Per Share: Distributed Earnings $ 0.05 $ 0.04 Undistributed Earnings 0.15 0.15 Total $ 0.20 $ 0.19 Diluted Earnings Per Share: Distributed Earnings $ 0.05 $ 0.04 Undistributed Earnings 0.15 0.15 Total $ 0.20 $ 0.19 Basic earnings per share $ 0.20 $ 0.19 Diluted earnings per share $ 0.20 $ 0.19 The following table presents net income that was attributable to participating securities. Three Months Ended April 3, 2016 April 5, 2015 (In millions) Net Income $ 0.1 $ 0.3 The weighted average shares for basic and diluted EPS were as follows: Three Months Ended April 3, 2016 April 5, 2015 (In thousands) Weighted Average Shares Outstanding 65,107 64,930 Participating Securities 578 1,490 Shares for Basic Earnings Per Share 65,685 66,420 Dilutive Effect of Stock Options 38 51 Shares for Diluted Earnings Per Share 65,723 66,471 For the three months ended April 3, 2016 and April 5, 2015, there were no stock options or participating securities excluded from the computation of diluted EPS. |
Note 4 - Long-term Debt
Note 4 - Long-term Debt | 3 Months Ended |
Apr. 03, 2016 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | NOTE 4 – LONG-TERM DEBT Syndicated Credit Facility The Company has a syndicated credit facility (the “Facility”) pursuant to which the lenders provide to the Company and certain of its subsidiaries a multicurrency revolving credit facility and provide to the Company a term loan. The facility matures in October of 2019. Interest on base rate loans is charged at varying rates computed by applying a margin depending on the Company’s consolidated net leverage ratio as of the most recently completed fiscal quarter. Interest on LIBOR-based loans and fees for letters of credit are charged at varying rates computed by applying a margin over the applicable LIBOR rate, depending on the Company’s consolidated net leverage ratio as of the most recently completed fiscal quarter. In addition, the Company pays a commitment fee per annum (depending on the Company’s consolidated net leverage ratio as of the most recently completed fiscal quarter) on the unused portion of the Facility. As of April 3, 2016, the Company had outstanding $195.0 million of term loan borrowing and $37.6 million of revolving loan borrowings outstanding under the Facility, and had $3.1 million in letters of credit outstanding under the Facility. As of April 3, 2016, the weighted average interest rate on borrowings outstanding under the Facility was 2.3%. Beginning in the fourth quarter of 2015, the Company became required to make quarterly amortization payments of the term loan borrowing. The amortization payments are due on the last day of the calendar quarter. The payment amount for each of the first three quarters of 2016 is $2.5 million per quarter. The quarterly amortization payment amount increases to $3.75 million on December 31, 2016. The Company is currently in compliance with all covenants under the Facility and anticipates that it will remain in compliance with the covenants for the foreseeable future. Other Lines of Credit Subsidiaries of the Company have an aggregate of the equivalent of $14.8 million of other lines of credit available at interest rates ranging from 3% to 6%. As of April 3, 2016, there were no borrowings outstanding under these lines of credit. |
Note 5 - Stock-based Compensati
Note 5 - Stock-based Compensation | 3 Months Ended |
Apr. 03, 2016 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 5 – STOCK-BASED COMPENSATION Stock Option Awards In accordance with accounting standards, the Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. That cost will be recognized over the period in which the employee is required to provide the services – the requisite service period (usually the vesting period) – in exchange for the award. All outstanding stock options vested prior to the end of 2013, and therefore there was no stock option compensation expense in the first quarter of 2015 or 2016. As of April 3, 2016, there were 87,500 stock options outstanding and exercisable, at an average exercise price of $8.75 per share. There were no stock options granted in 2016 or 2015. There were no exercises or forfeitures of stock options in the first quarter of 2016. The aggregate intrinsic value of the outstanding and exercisable stock options was $0.8 million as of April 3, 2016. Restricted Stock Awards During the three months ended April 3, 2016 and April 5, 2015, the Company granted restricted stock awards for 242,000 and 579,000 shares of common stock, respectively. Awards of restricted stock (or a portion thereof) vest with respect to each recipient over a two to three-year period from the date of grant, provided the individual remains in the employment or service of the Company as of the vesting date. Additionally, certain awards (or a portion thereof) could vest earlier upon the attainment of certain performance criteria, in the event of a change in control of the Company, or upon involuntary termination without cause. Compensation expense related to restricted stock grants was $1.0 million and $4.5 million for the three months ended April 3, 2016 and April 5, 2015, respectively. Accounting standards require that the Company estimate forfeitures for restricted stock and reduce compensation expense accordingly. The Company has reduced its expense by the assumed forfeiture rate and will evaluate experience against this forfeiture rate going forward. The following table summarizes restricted stock outstanding as of April 3, 2016, as well as activity during the three months then ended: Restricted Shares Weighted Average Grant Date Fair Value Outstanding at January 3, 2016 1,470,000 $ 17.92 Granted 242,000 17.16 Vested 974,000 18.53 Forfeited or canceled 160,000 16.71 Outstanding at April 3, 2016 578,000 $ 16.91 As of April 3, 2016, the unrecognized total compensation cost related to unvested restricted stock was $7.0 million. That cost is expected to be recognized by the end of 2019. Performance Share Awards In 2016, the Company issued awards of performance shares to certain employees. These awards will vest based on the achievement of certain performance-based goals over a performance period of one to three years, subject to the employee’s continued employment through the last date of the performance period, and will be settled in shares of our common stock or in cash at the Company's election. The number of shares that may be issued in settlement of the performance shares to the award recipients may be greater (up to 200%) or lesser than the nominal award amount depending on actual performance achieved as compared to the performance targets set forth in the awards. The following table summarizes the performance shares outstanding as of April 3, 2016, as well as the activity during the three months then ended: Shares Outstanding at January 3, 2016 0 Granted 418,200 Exercised 0 Forfeited or canceled 0 Outstanding at April 3, 2016 418,200 The weighted average grant date fair value of the performance shares awarded in the first quarter of 2016 was $17.44 per share. Compensation expense related to the performance shares for the three months ended April 3, 2016 was $0.3 million. Unrecognized compensation expense related to these performance shares was approximately $6.6 million as of April 3, 2016. |
Note 6 - Employee Benefit Plans
Note 6 - Employee Benefit Plans | 3 Months Ended |
Apr. 03, 2016 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | NOTE 6 – EMPLOYEE BENEFIT PLANS The following tables provide the components of net periodic benefit cost for the three-month periods ended April 3, 2016 and April 5, 2015, respectively: Three Months Ended Defined Benefit Retirement Plan (Europe) April 3, 2016 April 5, 2015 (In thousands) Service cost $ 258 $ 269 Interest cost 1,720 2,093 Expected return on assets (1,997 ) (2,247 ) Amortization of prior service costs 27 8 Recognized net actuarial (gains)/losses 184 239 Net periodic benefit cost $ 192 $ 362 Three Months Ended Salary Continuation Plan (SCP) April 3, 2016 April 5, 2015 (In thousands) Service cost $ 111 $ 148 Interest cost 317 278 Amortization of prior service cost 0 0 Amortization of (gain)/loss 202 131 Net periodic benefit cost $ 630 $ 557 |
Note 7 - Segment Information
Note 7 - Segment Information | 3 Months Ended |
Apr. 03, 2016 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE 7 – SEGMENT INFORMATION Based on applicable accounting standards, the Company has determined that it has three operating segments – namely, the Americas, Europe and Asia-Pacific geographic regions. Pursuant to accounting standards, the Company has aggregated the three operating segments into one reporting segment because they have similar economic characteristics, and the operating segments are similar in all of the following areas: (a) the nature of the products and services; (b) the nature of the production processes; (c) the type or class of customer for their products and services; (d) the methods used to distribute their products or provide their services; and (e) the nature of the regulatory environment. While the Company operates as one reporting segment for the reasons discussed, included below is selected information on our operating segments. Summary information by operating segment follows: AMERICAS EUROPE ASIA-PACIFIC TOTAL (in thousands) Three Months Ended April 3, 2016: Net Sales $ 130,417 $ 57,958 $ 34,179 $ 222,554 Depreciation and amortization 3,657 1,274 2,216 7,147 Total assets 221,071 251,630 190,499 663,200 Three Months Ended April 5, 2015: Net Sales $ 139,347 $ 64,507 $ 33,050 $ 236,904 Depreciation and amortization 3,941 1,205 2,365 7,511 A reconciliation of the Company’s total operating segment depreciation and amortization, and assets to the corresponding consolidated amounts follows: Three Months Ended DEPRECIATION AND AMORTIZATION April 3, 2016 April 5, 2015 (In thousands) Total segment depreciation and amortization $ 7,147 $ 7,511 Corporate depreciation and amortization 370 278 Reported depreciation and amortization $ 7,517 $ 7,789 ASSETS April 3, 2016 (In thousands) Total segment assets $ 663,200 Corporate assets and eliminations 103,272 Reported total assets $ 766,472 |
Note 8 - Supplemental Cash Flow
Note 8 - Supplemental Cash Flow Information | 3 Months Ended |
Apr. 03, 2016 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | NOTE 8 – SUPPLEMENTAL CASH FLOW INFORMATION Cash payments for interest amounted to $1.1 million and $1.6 million for the three month periods ended April 3, 2016 and April 5, 2015, respectively. Income tax payments amounted to $4.8 million and $1.7 million for the three month periods ended April 3, 2016 and April 5, 2015, respectively. |
Note 9 - Recently Issued Accoun
Note 9 - Recently Issued Accounting Pronouncements | 3 Months Ended |
Apr. 03, 2016 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | NOTE 9 – RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board (“FASB”) issued an accounting standard regarding recognition of revenue from contracts with customers. In summary, the core principle of this standard is that an entity recognizes revenue to depict the transfer of promised 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. The guidance for this standard was initially effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. However, in August of 2015, the FASB delayed the effective date of the standard for one full year. While the Company is currently reviewing this new standard, it does not believe that the adoption of this standard will have a material impact on its financial condition or results of operations. In January 2015, the FASB issued an accounting standard which eliminates the concept of extraordinary items from generally accepted accounting principles. The standard does not affect disclosure guidance for events or transactions that are unusual in nature or infrequent in their occurrence. The standard is effective for interim and annual periods in fiscal years beginning after December 15, 2015. The adoption of this standard did not have any impact on our financial condition or results of operations. In February 2015, the FASB issued an accounting standard which changes the way reporting enterprises evaluate whether (a) they should consolidate limited partnerships and similar entities, (b) fees paid to a decision maker or service provider are variable interests in a variable interest entity (“VIE”), and (c) variable interests in a VIE held by related parties of the reporting enterprise require the reporting enterprise to consolidate the VIE. The new accounting standard is effective for annual and interim periods in fiscal years beginning after December 15, 2015. The adoption of this standard did not have any impact on our financial condition or results of operations. In April 2015, the FASB issued an accounting standard to simplify the presentation of debt issuance costs. This accounting standard requires debt issuance costs to be presented on the balance sheet as a direct reduction from the carrying amount of the related debt liability. In August 2015, the FASB issued an accounting standard update that allows the presentation of debt issuance costs related to line-of-credit arrangements as an asset on the balance sheet under the simplified guidance, regardless of whether there are any outstanding borrowings on the related arrangements. The guidance in these accounting standards is to be applied retrospectively and is effective for interim and annual reporting periods beginning after December 15, 2015. The Company’s debt issuance costs relate to its Syndicated Credit Facility and, as a result, these costs have been, and will continue to be, included as an asset on the balance sheet. Thus, the adoption of this standard did not have any impact on our financial statements. In July 2015, the FASB issued an accounting standard to simplify the accounting for inventory. This standard requires all inventories to be measured at the lower of cost and net realizable value, except for inventory that is accounted for using the LIFO or the retail inventory method, which will be measured under existing accounting standards. The new guidance must be applied on a prospective basis and is effective for fiscal years beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this new standard and does not expect it to have a significant impact on its consolidated financial statements. In November 2015, the FASB issued an accounting standard which requires deferred tax assets and liabilities, as well as any related valuation allowance, to be classified as noncurrent on the balance sheet. As a result, each jurisdiction will only have one net noncurrent deferred tax asset or liability. This standard does not change the existing requirement that only permits offsetting within a jurisdiction. The amendments in the standard may be applied either prospectively or retrospectively to all prior periods presented. The new guidance is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods, with early adoption permitted. As this standard impacts only presentation, the Company does not expect it to have any significant effect on its ongoing financial reporting. In February 2016, the FASB issued a new accounting standard regarding leases. The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently evaluating the impact of adoption of the new standard on our consolidated financial statements. |
Note 10 - Income Taxes
Note 10 - Income Taxes | 3 Months Ended |
Apr. 03, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | NOTE 10 – INCOME Accounting standards require that all tax positions be analyzed using a two-step approach. The first step requires an entity to determine if a tax position is more-likely-than-not to be sustained upon examination. In the second step, the tax benefit is measured as the largest amount of benefit, determined on a cumulative probability basis, that is more-likely-than-not to be realized upon ultimate settlement. In the first three months of 2016, the Company increased its liability for unrecognized tax benefits by $0.3 million. As of April 3, 2016, the Company had accrued approximately $28.6 million for unrecognized tax benefits. In accordance with applicable accounting standards, the Company’s deferred tax asset as of April 3, 2016 reflects a reduction for $14.2 million of these unrecognized tax benefits. |
Note 11 - Items Reclassified fr
Note 11 - Items Reclassified from Other Comprehensive Income | 3 Months Ended |
Apr. 03, 2016 | |
Notes to Financial Statements | |
Reclassifications [Text Block] | NOTE 11 – ITEMS RECLASSIFIED FROM OTHER COMPREHENSIVE INCOME During the first quarter of 2016, the Company did not reclassify any significant amounts out of accumulated other comprehensive income. The reclassifications that occurred in that period were primarily comprised of $0.4 million related to the Company’s defined benefit retirement plan and salary continuation plan. These reclassifications were included in the selling, general and administrative expenses line item of the Company’s consolidated condensed statement of operations. |
Note 12 - Repurchase of Common
Note 12 - Repurchase of Common Stock | 3 Months Ended |
Apr. 03, 2016 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 12 – REPURCHASE OF COMMON STOCK In 2014, the Company announced a program to repurchase up to 500,000 shares of common stock per fiscal year, commencing with the 2014 fiscal year. During the first quarter of 2016, the Company repurchased 4,300 shares of its common stock at a weighted average price of $17.31 per share. On April 27, 2016, subsequent to the end of the first quarter, the Company announced that it amended the share repurchase program to authorize the repurchase of up to $50 million of common stock. The amended program has no specific expiration date. |
Note 2 - Inventories (Tables)
Note 2 - Inventories (Tables) | 3 Months Ended |
Apr. 03, 2016 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | April 3, 2016 January 3, 2016 (In thousands) Finished Goods $ 113,897 $ 101,697 Work in Process 9,454 9,865 Raw Materials 50,250 49,612 $ 173,601 $ 161,174 |
Note 3 - Earnings Per Share (Ta
Note 3 - Earnings Per Share (Tables) | 3 Months Ended |
Apr. 03, 2016 | |
Notes Tables | |
Distributed And Undistributed Earnings [Table Text Block] | Three Months Ended April 3, 2016 April 5, 2015 Earnings Per Share : Basic Earnings Per Share: Distributed Earnings $ 0.05 $ 0.04 Undistributed Earnings 0.15 0.15 Total $ 0.20 $ 0.19 Diluted Earnings Per Share: Distributed Earnings $ 0.05 $ 0.04 Undistributed Earnings 0.15 0.15 Total $ 0.20 $ 0.19 Basic earnings per share $ 0.20 $ 0.19 Diluted earnings per share $ 0.20 $ 0.19 |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended April 3, 2016 April 5, 2015 (In millions) Net Income $ 0.1 $ 0.3 Three Months Ended April 3, 2016 April 5, 2015 (In thousands) Weighted Average Shares Outstanding 65,107 64,930 Participating Securities 578 1,490 Shares for Basic Earnings Per Share 65,685 66,420 Dilutive Effect of Stock Options 38 51 Shares for Diluted Earnings Per Share 65,723 66,471 |
Note 5 - Stock-based Compensa20
Note 5 - Stock-based Compensation (Tables) | 3 Months Ended |
Apr. 03, 2016 | |
Notes Tables | |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | Restricted Shares Weighted Average Grant Date Fair Value Outstanding at January 3, 2016 1,470,000 $ 17.92 Granted 242,000 17.16 Vested 974,000 18.53 Forfeited or canceled 160,000 16.71 Outstanding at April 3, 2016 578,000 $ 16.91 |
Schedule of Nonvested Performance-based Units Activity [Table Text Block] | Shares Outstanding at January 3, 2016 0 Granted 418,200 Exercised 0 Forfeited or canceled 0 Outstanding at April 3, 2016 418,200 |
Note 6 - Employee Benefit Pla21
Note 6 - Employee Benefit Plans (Tables) | 3 Months Ended |
Apr. 03, 2016 | |
Notes Tables | |
Schedule of Net Benefit Costs [Table Text Block] | Three Months Ended Defined Benefit Retirement Plan (Europe) April 3, 2016 April 5, 2015 (In thousands) Service cost $ 258 $ 269 Interest cost 1,720 2,093 Expected return on assets (1,997 ) (2,247 ) Amortization of prior service costs 27 8 Recognized net actuarial (gains)/losses 184 239 Net periodic benefit cost $ 192 $ 362 Three Months Ended Salary Continuation Plan (SCP) April 3, 2016 April 5, 2015 (In thousands) Service cost $ 111 $ 148 Interest cost 317 278 Amortization of prior service cost 0 0 Amortization of (gain)/loss 202 131 Net periodic benefit cost $ 630 $ 557 |
Note 7 - Segment Information (T
Note 7 - Segment Information (Tables) | 3 Months Ended |
Apr. 03, 2016 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | AMERICAS EUROPE ASIA-PACIFIC TOTAL (in thousands) Three Months Ended April 3, 2016: Net Sales $ 130,417 $ 57,958 $ 34,179 $ 222,554 Depreciation and amortization 3,657 1,274 2,216 7,147 Total assets 221,071 251,630 190,499 663,200 Three Months Ended April 5, 2015: Net Sales $ 139,347 $ 64,507 $ 33,050 $ 236,904 Depreciation and amortization 3,941 1,205 2,365 7,511 |
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated [Table Text Block] | Three Months Ended DEPRECIATION AND AMORTIZATION April 3, 2016 April 5, 2015 (In thousands) Total segment depreciation and amortization $ 7,147 $ 7,511 Corporate depreciation and amortization 370 278 Reported depreciation and amortization $ 7,517 $ 7,789 |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | ASSETS April 3, 2016 (In thousands) Total segment assets $ 663,200 Corporate assets and eliminations 103,272 Reported total assets $ 766,472 |
Note 2 - Inventories Summary (D
Note 2 - Inventories Summary (Details) - USD ($) $ in Thousands | Apr. 03, 2016 | Jan. 03, 2016 |
Finished Goods | $ 113,897 | $ 101,697 |
Work in Process | 9,454 | 9,865 |
Raw Materials | 50,250 | 49,612 |
Inventory, net | $ 173,601 | $ 161,174 |
Note 3 - Earnings Per Share (De
Note 3 - Earnings Per Share (Details Textual) - shares | 3 Months Ended | |
Apr. 03, 2016 | Apr. 05, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 |
Note 3 - Distributed and Undist
Note 3 - Distributed and Undistributed Earnings (Details) - $ / shares | 3 Months Ended | |
Apr. 03, 2016 | Apr. 05, 2015 | |
Basic Earnings Per Share: | ||
Distributed Earnings (in dollars per share) | $ 0.05 | $ 0.04 |
Undistributed Earnings (in dollars per share) | 0.15 | 0.15 |
Total (in dollars per share) | 0.20 | 0.19 |
Diluted Earnings Per Share: | ||
Distributed Earnings (in dollars per share) | 0.05 | 0.04 |
Undistributed Earnings (in dollars per share) | 0.15 | 0.15 |
Total (in dollars per share) | 0.20 | 0.19 |
Basic earnings per share (in dollars per share) | 0.20 | 0.19 |
Diluted earnings per share (in dollars per share) | $ 0.20 | $ 0.19 |
Note 3 - Calculation of Income
Note 3 - Calculation of Income (Loss) Per Share (Details) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Apr. 03, 2016 | Apr. 05, 2015 | |
Participating Securities [Member] | ||
Net Income | $ 0.1 | $ 0.3 |
Weighted Average Shares Outstanding (in shares) | 65,107 | 64,930 |
Participating Securities (in shares) | 578 | 1,490 |
Shares for Basic Earnings Per Share (in shares) | 65,685 | 66,420 |
Dilutive Effect of Stock Options (in shares) | 38 | 51 |
Shares for Diluted Earnings Per Share (in shares) | 65,723 | 66,471 |
Note 4 - Long-term Debt (Detail
Note 4 - Long-term Debt (Details Textual) | 3 Months Ended |
Apr. 03, 2016USD ($) | |
Syndication Facility Agreement [Member] | Term Loan A [Member] | |
Long-term Line of Credit | $ 195,000,000 |
Syndication Facility Agreement [Member] | |
Letters of Credit Outstanding, Amount | $ 3,100,000 |
Long-term Debt, Weighted Average Interest Rate | 2.30% |
Revolving Credit Facility [Member] | |
Long-term Line of Credit | $ 37.60 |
Other Line Of Credit [Member] | Minimum [Member] | |
Line of Credit Facility, Interest Rate During Period | 3.00% |
Other Line Of Credit [Member] | Maximum [Member] | |
Line of Credit Facility, Interest Rate During Period | 6.00% |
Other Line Of Credit [Member] | |
Long-term Line of Credit | $ 0 |
Line of Credit Facility, Maximum Borrowing Capacity | 14,800,000 |
Term Loan A [Member] | Due By the End of the First Quarter 2016 [Member] | |
Initial Amortization Payment | 2,500,000 |
Term Loan A [Member] | Due By the End of the Second Quarter 2016 [Member] | |
Initial Amortization Payment | 2,500,000 |
Term Loan A [Member] | Due By the Third Quarter 2016 [Member] | |
Initial Amortization Payment | 2,500,000 |
Term Loan A [Member] | |
Subsequent Amortization Payment | $ 3,750,000 |
Note 5 - Stock-based Compensa28
Note 5 - Stock-based Compensation (Details Textual) - USD ($) | 3 Months Ended | |
Apr. 03, 2016 | Apr. 05, 2015 | |
Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 87,500 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 8.75 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 87,500 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 800,000 | |
Allocated Share-based Compensation Expense | $ 0 | $ 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 |
Restricted Stock [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 2 years | |
Restricted Stock [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 242,000 | 579,000 |
Allocated Share-based Compensation Expense | $ 1,000,000 | $ 4,500,000 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 7,000,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 17.16 | |
Performance Shares [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | |
Performance Shares [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |
Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 418,200 | |
Allocated Share-based Compensation Expense | $ 300,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 6,600,000 | |
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Shares Issued During Exercise of Instrument, Upper Limit, Percentage | 200.00% | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 17.44 |
Note 5 - Restricted Stock Outst
Note 5 - Restricted Stock Outstanding (Details) - Restricted Stock [Member] - $ / shares | 3 Months Ended | |
Apr. 03, 2016 | Apr. 05, 2015 | |
Outstanding Shares (in shares) | 1,470,000 | |
Weighted Average Exercise Price (in dollars per share) | $ 17.92 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 242,000 | 579,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 17.16 | |
Vested (in shares) | 974,000 | |
Vested (in dollars per share) | $ 18.53 | |
Forfeited or canceled (in shares) | 160,000 | |
Forfeited or canceled (in dollars per share) | $ 16.71 | |
Outstanding at April 3, 2016 (in shares) | 578,000 | |
Outstanding at April 3, 2016 (in dollars per share) | $ 16.91 |
Note 5 - Performance-Based Rest
Note 5 - Performance-Based Restricted Units Oustanding (Details) - Performance Shares [Member] | 3 Months Ended |
Apr. 03, 2016shares | |
Outstanding Shares (in shares) | 0 |
Granted (in shares) | 418,200 |
Exercised (in shares) | 0 |
Forfeited or canceled (in shares) | 0 |
Outstanding at April 3, 2016 (in shares) | 418,200 |
Note 6 - Net Periodic Benefit C
Note 6 - Net Periodic Benefit Cost (Details) - USD ($) | 3 Months Ended | |
Apr. 03, 2016 | Apr. 05, 2015 | |
Defined Benefit Retirement Plan Europe [Member] | ||
Service cost | $ 258,000 | $ 269,000 |
Interest cost | 1,720,000 | 2,093,000 |
Expected return on assets | (1,997,000) | (2,247,000) |
Amortization of prior service cost | 27,000 | 8,000 |
Recognized net actuarial (gains)/losses | 184,000 | 239,000 |
Net periodic benefit cost | 192,000 | 362,000 |
Domestic SCP [Member] | ||
Service cost | 111,000 | 148,000 |
Interest cost | 317,000 | 278,000 |
Amortization of prior service cost | 0 | 0 |
Net periodic benefit cost | 630,000 | 557,000 |
Amortization of (gain)/loss | $ 202,000 | $ 131,000 |
Note 7 - Segment Information (D
Note 7 - Segment Information (Details Textual) | 3 Months Ended |
Apr. 03, 2016 | |
Number of Operating Segments | 3 |
Number of Reportable Segments | 1 |
Note 7 - Operating Segment Summ
Note 7 - Operating Segment Summary Information (Details) - USD ($) | 3 Months Ended | ||
Apr. 03, 2016 | Apr. 05, 2015 | Jan. 03, 2016 | |
Americas [Member] | |||
Net Sales | $ 130,417,000 | $ 139,347,000 | |
Depreciation and amortization | 3,657,000 | 3,941,000 | |
Assets | 221,071,000 | ||
Europe [Member] | |||
Net Sales | 57,958,000 | 64,507,000 | |
Depreciation and amortization | 1,274,000 | 1,205,000 | |
Assets | 251,630,000 | ||
Asia Pacific [Member] | |||
Net Sales | 34,179,000 | 33,050,000 | |
Depreciation and amortization | 2,216,000 | 2,365,000 | |
Assets | 190,499,000 | ||
Operating Segments [Member] | |||
Net Sales | 222,554,000 | 236,904,000 | |
Depreciation and amortization | 7,147,000 | 7,511,000 | |
Assets | 663,200,000 | ||
Net Sales | 222,554,000 | 236,904,000 | |
Depreciation and amortization | 7,517,000 | $ 7,789,000 | |
Assets | $ 766,472,000 | $ 756,549,000 |
Note 7 - Reconciliation of Segm
Note 7 - Reconciliation of Segment Depreciation and Amortization (Details) - USD ($) | 3 Months Ended | |
Apr. 03, 2016 | Apr. 05, 2015 | |
Operating Segments [Member] | ||
Depreciation and amortization | $ 7,147,000 | $ 7,511,000 |
Corporate, Non-Segment [Member] | ||
Depreciation and amortization | 370,000 | 278,000 |
Depreciation and amortization | $ 7,517,000 | $ 7,789,000 |
Note 7 - Reconciliation of Se35
Note 7 - Reconciliation of Segment Assets (Details) - USD ($) | Apr. 03, 2016 | Jan. 03, 2016 |
Operating Segments [Member] | ||
Assets | $ 663,200,000 | |
Corporate, Non-Segment [Member] | ||
Assets | 103,272,000 | |
Assets | $ 766,472,000 | $ 756,549,000 |
Note 8 - Supplemental Cash Fl36
Note 8 - Supplemental Cash Flow Information (Details Textual) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2016 | Apr. 05, 2015 | |
Interest Paid | $ 1.1 | $ 1.6 |
Income Taxes Paid | $ 4.8 | $ 1.7 |
Note 10 - Income Taxes (Details
Note 10 - Income Taxes (Details Textual) $ in Millions | 3 Months Ended |
Apr. 03, 2016USD ($) | |
Unrecognized Tax Benefits, Period Increase (Decrease) | $ 0.3 |
Unrecognized Tax Benefits | 28.6 |
Increase (Decrease) in Deferred Tax Assets | $ 14.2 |
Note 11 - Items Reclassified 38
Note 11 - Items Reclassified from Other Comprehensive Income (Details Textual) $ in Millions | 3 Months Ended |
Apr. 03, 2016USD ($) | |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Net of Tax | $ 0.4 |
Note 12 - Repurchase of Commo39
Note 12 - Repurchase of Common Stock (Details Textual) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Apr. 03, 2016 | Apr. 27, 2016 | Dec. 28, 2014 | |
Subsequent Event [Member] | |||
Stock Repurchase Program, Authorized Amount | $ 50 | ||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 500,000 | ||
Treasury Stock, Shares, Acquired | 4,300 | ||
Treasury Stock Acquired, Average Cost Per Share | $ 17.31 |