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Shareholders' Equity
 9 Months Ended
Sep. 29, 2024
Stockholders' Equity Note [Abstract]  
Shareholders' Equity SHAREHOLDERS’ EQUITY
The following tables depict the activity in the accounts which make up shareholders’ equity for the nine months ended September 29, 2024 and October 1, 2023:
SHARESCOMMON STOCKADDITIONAL PAID-IN CAPITALRETAINED
EARNINGS		FOREIGN CURRENCY TRANSLATION ADJUSTMENTPENSION LIABILITYTOTAL
(in thousands, except per share data)
Balance, at December 31, 202358,112 $5,811 $252,909 $320,833 $(119,590)$(34,016)$425,947 
Net income— — — 14,179 — — 14,179 
Issuances of stock related to restricted share units and performance shares472 47 (47)— — — — 
Cash dividends declared, $0.01 per common share
— — — (589)— — (589)
Compensation expense related to share-based plans, net of forfeitures and shares received for tax withholdings(311)(31)(324)— — — (355)
Foreign currency translation adjustment— — — — (11,092)— (11,092)
Pension liability adjustment— — — — — 458 458 
Balance, at March 31, 202458,273 $5,827 $252,538 $334,423 $(130,682)$(33,558)$428,548 
Net income— — — 22,558 — — 22,558 
Issuances of stock related to restricted share units and performance shares4 — — — — — — 
Restricted stock issuances58 6 941 — — — 947 
Unrecognized compensation expense related to restricted stock awards— — (946)— — — (946)
Cash dividends declared, $0.01 per common share
— — — (584)— — (584)
Compensation expense related to share-based plans, net of forfeitures and shares received for tax withholdings(32)(3)2,133 — — — 2,130 
Foreign currency translation adjustment— — — — (2,022)— (2,022)
Pension liability adjustment— — — — — 534 534 
Balance, at June 30, 202458,303 $5,830 $254,666 $356,397 $(132,704)$(33,024)$451,165 
Net income— — — 28,443 — — 28,443 
Issuances of stock related to restricted share units
3 — — — — — — 
Cash dividends declared, $0.01 per common share
— — — (582)— — (582)
Compensation expense related to share-based plans, net of forfeitures and shares received for tax withholdings(2)— 2,616 — — — 2,616 
Foreign currency translation adjustment— — — — 21,131 — 21,131 
Pension liability adjustment— — — — — (1,210)(1,210)
Balance, at September 29, 202458,304 $5,830 $257,282 $384,258 $(111,573)$(34,234)$501,563 
SHARESCOMMON STOCKADDITIONAL PAID-IN CAPITALRETAINED
EARNINGS		FOREIGN CURRENCY TRANSLATION ADJUSTMENTPENSION LIABILITYCASH FLOW
HEDGE		TOTAL
(in thousands, except per share data)
Balance, at January 1, 202358,106 $5,811 $244,159 $278,639 $(138,775)$(27,548)$(749)$361,537 
Net loss— — — (714)— — — (714)
Issuances of stock related to performance shares79 8 (8)— — — — — 
Cash dividends declared, $0.01 per common share
— — — (580)— — — (580)
Compensation expense related to share-based plans, net of forfeitures and shares received for tax withholdings(132)(14)1,850 — — — — 1,836 
Foreign currency translation adjustment— — — — 4,930 — — 4,930 
Pension liability adjustment— — — — — (279)— (279)
Reclassification out of accumulated other comprehensive loss – discontinued cash flow hedge— — — — — — 299 299 
Balance, at April 2, 202358,053 $5,805 $246,001 $277,345 $(133,845)$(27,827)$(450)$367,029 
Net income— — — 15,797 — — — 15,797 
Issuances of stock related to restricted share units and performance shares5 1 (1)— — — — — 
Restricted stock issuances102 10 697 — — — — 707 
Unrecognized compensation expense related to restricted stock awards— — (708)— — — — (708)
Cash dividends declared, $0.01 per common share
— — — (581)— — — (581)
Compensation expense related to share-based plans, net of forfeitures and shares received for tax withholdings(48)(5)1,808 — — — — 1,803 
Foreign currency translation adjustment— — — — 1,361 — — 1,361 
Pension liability adjustment— — — — — (800)— (800)
Reclassification out of accumulated other comprehensive loss – discontinued cash flow hedge— — — — — — 300 300 
Balance, at July 2, 202358,112 $5,811 $247,797 $292,561 $(132,484)$(28,627)$(150)$384,908 
Net income— — — 9,879 — — — 9,879 
Cash dividends declared, $0.01 per common share
— — — (581)— — — (581)
Compensation expense related to share-based plans, net of forfeitures and shares received for tax withholdings(5)— 2,182 — — — — 2,182 
Foreign currency translation adjustment— — — — (9,176)— — (9,176)
Pension liability adjustment— — — — — 202 — 202 
Reclassification out of accumulated other comprehensive loss – discontinued cash flow hedge— — — — — — 150 150 
Balance, at October 1, 202358,107 $5,811 $249,979 $301,859 $(141,660)$(28,425)$— $387,564 
Stock Incentive Plan
The Company has share-based employee compensation plans, which are described more fully in Note 14 to the consolidated financial statements included in Item 8 of the Annual Report on Form 10-K for the fiscal year ended December 31, 2023.
In May 2024, the shareholders of the Company approved the adoption of an amendment and restatement of the Interface, Inc. 2020 Omnibus Stock Incentive Plan (the “Amended and Restated Plan”). The aggregate number of shares of common stock that may be issued or transferred under the Amended and Restated Plan on or after the effective date of the plan is the sum of 3,200,000 shares not previously authorized for issuance under any plan, plus the number of shares remaining available for issuance under the original Interface, Inc. 2020 Omnibus Stock Incentive Plan (the “Original Plan”) but not subject to outstanding awards under the Original Plan immediately prior to the effective date of the Amended and Restated Plan, plus the number of shares remaining available for issuance pursuant to the outstanding awards under the Original Plan immediately prior to the effective date of the Amended and Restated Plan, including any shares that become available due to the forfeiture, termination or cancellation of such awards. No award may be granted after the tenth anniversary of the effective date of the Amended and Restated Plan.
Restricted Stock Awards
Compensation expense related to restricted stock grants was $1.9 million and $3.4 million for the nine months ended September 29, 2024 and October 1, 2023, respectively. The Company has reduced its expense for any restricted stock forfeited during the period.
The following table summarizes restricted stock outstanding as of September 29, 2024, as well as activity during the nine months then ended:
Restricted SharesWeighted Average
Grant Date
Fair Value
Outstanding at December 31, 2023691,600 $12.55 
Granted58,400 16.22 
Vested(504,800)12.31 
Forfeited or canceled(2,900)13.19 
Outstanding at September 29, 2024242,300 $13.92 
As of September 29, 2024, the unrecognized total compensation cost related to unvested restricted stock was $0.8 million. That cost is expected to be recognized by the second quarter of 2025.
Restricted Share Unit Awards
Compensation expense related to the restricted share units was $2.6 million and $1.5 million for the nine months ended September 29, 2024 and October 1, 2023, respectively. The Company has reduced its expense for any restricted share units forfeited during the period.
The following table summarizes restricted share units outstanding as of September 29, 2024, as well as activity during the nine months then ended:
Restricted Share UnitsWeighted Average
Grant Date
Fair Value
Outstanding at December 31, 2023583,400 $10.35 
Granted402,800 13.24 
Vested(157,200)10.77 
Forfeited or canceled(10,200)11.41 
Outstanding at September 29, 2024818,800 $11.68 
As of September 29, 2024, the unrecognized total compensation cost related to unvested restricted share units was $6.7 million. That cost is expected to be recognized by the first quarter of 2027.
Performance Share Awards
The following table summarizes the performance shares outstanding as of September 29, 2024, as well as the activity during the nine months then ended:
Performance SharesWeighted Average
Grant Date
Fair Value
Outstanding at December 31, 20231,115,000 $12.36 
Granted402,800 13.24 
Vested(322,300)13.90 
Forfeited or canceled(23,900)12.53 
Outstanding at September 29, 20241,171,600 $12.23 
Compensation expense related to the performance shares was $4.7 million and $2.4 million for the nine months ended September 29, 2024 and October 1, 2023, 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 $6.3 million as of September 29, 2024. 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 by the first quarter of 2027.
The tax benefit recognized with respect to restricted stock, restricted share units and performance shares was approximately $1.4 million for the nine months ended September 29, 2024.